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21 July 2017
Member of Conspiracy to Import and Traffic Counterfeit Electronic Products Gets 37 Months in PrisonRead the Press Release
NEWARK, N.J. – An Italian national who smuggled counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States was sentenced today to 37 months in prison.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting Special Agent in Charge Debra Parker of Homeland Security Investigations (HSI) in Newark; and Bergen County Prosecutor Gurbir Grewal made the announcement.
Rosario La Marca, 54, a resident of Naples, Italy, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging him with trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
La Marca, Andreina Becerra, 32, a Venezuelan national, Roberto Volpe, 35, an Italian national, and Jianhua Li, 42, a Chinese national currently residing in California, were originally charged in an eight-count indictment in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
In addition to the prison term, Judge McNulty sentenced La Marca to one year of supervised release.Volpe and Becerra have both pleaded guilty to their roles in the scheme and await sentencing. Li has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office Financial Crimes Unit, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Senior Litigation Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey and Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Defense Counsel: Scott D. Finckenauer Esq., Fairview, New Jersey
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on July 21, 2017, Fausto Alejandro Maldonado, 29, of Lincoln, was sentenced to five years (60 months) in prison for conspiracy to distribute and possess with the intent to distribute a mixture or substance containing methamphetamine. Following the prison term, Maldonado will serve four years on supervised release.
Information provided to law enforcement indicated that between January of 2015 and April of 2016, Maldonado was responsible for the distribution of at least 200 grams (approximately seven ounces) of methamphetamine in the Lincoln area.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leaders and Associates of Fraudulent Debt Collection Company Are Facing Federal Charges for $3 Million Conspiracy Targeting Victims Throughout the United StatesRead the Press Release
CHARLOTTE, N.C. – A criminal bill of indictment was unsealed today in federal court charging five individuals for their involvement in a $3 million debt collection scheme operating in Mecklenburg County that targeted victims throughout the country, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A criminal bill of information was also filed today charging a sixth defendant for her role in the conspiracy.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina joins U.S. Attorney Rose in making today’s announcement.
The indictment charges John Wayne Perry, Jr. 36; Rhonda Renee Scott, 52; Timothy Scott, Jr., 51; Paris Jontue Taylor, 37; and Rayshawn Lamont Tyler, 42, all of Charlotte, with mail and wire fraud conspiracy and wire fraud offenses. Perry, Taylor and Tyler are also each charged with one count of money laundering conspiracy. The indictment was returned by the federal grand jury on July 19, 2017, and was unsealed following today’s arrests of four named defendants. A warrant remains outstanding for Tyler’s arrest.
In a related case, Miranda Bailey, 29, of Charlotte, is charged separately with one count of wire fraud and mail fraud conspiracy. A signed plea agreement was also filed today and Bailey’s plea hearing has been set for Wednesday, July 26, 2017.
“The individuals charged today used intimidation, threats, and lies, including posing as lawyers and law enforcement, to scare victims into paying often non-existent debts. Their shake-down tactics included harassing the victims’ friends and families until they received payment,” said U.S. Attorney Rose. “Debt collections schemes are on the rise. We caution the public to be vigilant when receiving calls in which the caller uses threatening language similar to that alleged in the Bill of Indictment. Do not get ripped off. If contacted by a purported debt collector who threatens you with criminal charges, hang up the phone and notify law enforcement,” Rose added.
“It is difficult enough for many Americans to make ends meet and pay their bills on time. For criminals to prey on these hard working people is inexcusable. The FBI is working to uncover these fraudulent companies and hold those accountable for their predatory and criminal actions,” said Special Agent in Charge Strong.
According to allegations contained in the indictment, from at least January 2013 to November 2014, the co-conspirators operated a fraudulent debt collection company in Mecklenburg County, known at various points as RJ Financial Services and/or Nationwide Asset & Recovery (RJ Financial, collectively). RJ Financial allegedly defrauded thousands of debtors throughout the United States of approximately $3 million. Court documents allege that the co-conspirators targeted individuals and generally executed their scheme to defraud by coercing purported debtors to pay money, some of which was not even owed, by providing false and misleading information and using harassing and abusive tactics.
According to the indictment, Perry and Rayshawn Tyler were leaders of the conspiracy, and owners and operators of RJ Financial. Paris Taylor was also a leader of the conspiracy and used aliases “Brittany Martin” or “London Taylor” when speaking with purported debtors. Co-defendant Timothy Scott served as the scheme’s Operations Manager. He also used different “shake” names, such as “Dean McCoy” and “George Raffino.” Co-defendant Rhonda Scott served as a team leader or supervisor and collector, and generally used aliases or the “shake” names “Ada Brown” and “Katlin Pierce,” when talking to purported debtors. Co-conspirator Bailey served as a collector and team leader in the conspiracy, and used the “shake” name “Savannah Grant.”
According to the indictment, prior to joining RJ Financial, Timothy Scott was affiliated with another fraudulent debt collection company, known at various points as Capital Solutions Agency, and/or Berkley Hughes and Associates and/or The Vortex Group, collectively “BHA.” Seven co-conspirators associated with that scheme have been charged federally and are awaiting sentencing.
Timothy Scott helped the leader of the BHA scheme, Cedric Clark, learn the business. Timothy Scott also ran the operation of BHA. In that role at BHA, Timothy Scott assisted in hiring, provided scripts for use by collectors, monitored collectors’ calls, and closed the calls, including by pretending to be an attorney to induce victims to pay their purported debts. Also, prior to joining RJ Financials, Bailey and Rhonda Scott were collectors at BHA.
RJ Financial and BHA worked together and operated in much the same manner, the indictment alleges. For example, in addition to overlap in employees and scripts, RJ Financial and BHA purchased purported debt amounts together, splitting the lists and the costs. RJ Financial also paid Clark for skip-tracing services, to help locate biographical information about the purported debtors, including phone numbers, addresses, and social security numbers. The co-conspirators used this information coerce the debtors to pay their debts.
The indictment further alleges that when contacting purported debtors, RJ Financial collectors were instructed to follow scripts that included false and misleading information and various scare tactics to induce victims into paying moneys. For example, among the false and fraudulent representations in the script were that:
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The collector was calling “to investigate and possibly file 2 charges against you (the Debtor) in (Debtor’s local county court)” and that those charges included “Breach of contract or fraud” and “Malicious intent to defraud a financial institution.”
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“Federal law does require that I inform you that you do have the right to offer a counter offer; most defendants offer close to what they originally borrowed, plus the $300 civil penalty…assessed by the state….”
The indictment also alleges that in order to disguise the fraudulent nature of the business and scare purported debtors, the collectors:
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Frequently changed the name of the purported company they were working for when making calls so that victims would not be able to locate truthful information about the company.
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In some Instances the collectors falsely represented that they were law firms, that they had attorneys on staff to consult, and/or that the collectors themselves were attorneys.
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At times, they falsely represented to be members of law enforcement or that they were working with or affiliated with law enforcement, sometimes going as far as to play a police scanner in the background.
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They used aliases, commonly known as “shake” names, when making the calls and fraudulently identified themselves as “investigators” purportedly calling on behalf of a “client.”
The indictment alleges RJ Financial also often engaged in other scare tactics to fraudulently induce purported debtors, including:
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Harassing family members and friends to get the purported debtor to call them and pay them.
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Threatening that imminent civil and/or criminal charges would be filed if the debtor did not make arrangements to pay during the call.
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Threatening that the victims would be served with arrest warrants, subpoenas, restraining orders, and garnishment of wages, if they did not make arrangements to pay during the call.
Each of the five defendants is charged with one count of engaging in a fraudulent debt collection conspiracy to commit mail and wire fraud and one count of wire fraud, which each carry a maximum prison term of 20 years in prison and a $250,000 fine. The money laundering conspiracy charge carries a maximum prison term of 20 years and carries a fine of $500,000 or twice the amount of the criminally derived proceeds.
All charges contained in the charging documents are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The Charlotte Division of the FBI is leading the investigation. Assistant United States Attorney Maria K. Vento, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
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Last Two Defendants Sentenced in Pill Mill OperationRead the Press Release
DALLAS — Jason Edgecombe, 40, and Cy Viator, 34, both of Houston, Texas, were sentenced this morning for their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Viator pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance and one count of unlawful use of a communication facility. U.S. District Judge Sidney A. Fitzwater sentenced Viator to 140 months in federal prison on Count 1 and 48 months in prison on Count 2.
Edgecombe was sentenced before Judge Fitzwater to 3 months in federal prison. Edgecombe pleaded guilty in March 2017 to two counts of possession of a controlled substance. Judge Fitzwater ordered Edgecombe to report to serve his sentence on September 5, 2017.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least January 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 29 individuals have now been convicted and all have been sentenced. The defendants received sentences ranging from time served to 140 months imprisonment.
According to plea documents in Viator’s case, on November 14, 2013, Viator and a co-conspirator conspired to obtain oxycodone and hydrocodone pills in Dallas, Texas, and distribute them in Louisiana. Viator and the co-conspirator obtained 2,000 oxycodone 30mg pills and also hydrocodone pills. After obtaining the pills, Viator drove the co-conspirator to a FedEx location in Dallas to ship the pills in two separate packages to Louisiana. While the co-conspirator was inside the FedEx shipping the packages, Viator sent him text messages with two recipient’s names and addresses. One intended recipient was Viator in Scott, Louisiana. On November 15, 2013, before delivery, both packages were seized by law enforcement in Lafayette, Louisiana. Each package contained three pill bottles in Viator’s name bearing an address in DeSoto, Texas and a total of 2,000 Oxycodone 30mg pills and 500 hydrocodone pills.
According to plea documents in Edgecombe’s case, on various occasions Edgecombe possessed a quantity of 30mg oxycodone tablets and a mixture and substance containing a detectable amount of 30mg oxycodone, a Schedule II controlled substance. Both were obtained without a valid prescription issued by a medical practitioner acting in the usual course of professional practice or as otherwise authorized by law but instead received them from co-conspirators.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters prosecuted.
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July Grand JuryRead the Press Release
Acting United States Attorney Robert C. Stuart announced the federal Grand Jury for the District of Nebraska has returned 24 indictments charging 26 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jose Efrain Marin Aranda, age 33, of Chicago, Illinois and Juan Jose Silva Castaneda, age 34, of Waukeegan, Illinois, are charged with possession with intent to distribute 500 grams of a mixture containing cocaine on or about July 6, 2017, The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Juan Barrera-Yerbabuena, age 31, of Grand Island, is charged with illegal reentry after deportation on or about June 21, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Miguel Barrera-Yerbabuena, of Grand Island, is charged with illegal reentry after deportation following an aggravated felony conviction on or about June 21, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alejandro Camacho-Perez, age 34, of Scottsbluff, is charged with illegal reentry after deportation on or about June 25, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Esteban Carreto-Lopez, age 38, of Hastings, is charged with illegal reentry after deportation on or about October 30, 2012. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jose Luis Castillo De La Rosa, age 31, is charged with illegal reentry after deportation on or about October 30, 2012. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Luis Ceja, age 35, is charged with possession with intent to distribute 5 grams or more of methamphetamine on or about January 15, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Daniel Escobar-Marroquin, a/k/a A.W.R, age 36, of Schuyler, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with fraudulent use of a social security number on or about January 5, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Escobar-Marroquin with false representation of U.S. Citizenship on or about January 5, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Francisco Espinoza-Lopez, age 31, is charged with illegal reentry after deportation on or about June 19, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Eduardo Galvez Rivera, age 46, of Omaha, is charged with illegal reentry after deportation following an aggravated felony conviction on or about July 14, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Kaylee A. Taylor, age 33, and Joseph S. Hamilton, age 35, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine beginning on or about November, 2016, and continuing to on or about April, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Taylor and Hamilton with possession with intent to distribute 50 grams or more of methamphetamine on or about April 18, 2017. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Angela Hernandez, age 40, of Plattsmouth, is charged with possession with intent to distribute 5 grams or more of methamphetamine on or about May 25, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Agustin Herrera Mora, age 42, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about July 3, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Nichollas Troy Johnson, age 24, of Harwood North Dakota, is charged with transportation of a minor for the purpose of sexual activity on or about July 10, 2017. The maximum possible penalty if convicted is 30 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Christian Jerrad LaPointe, age 26, of Winnebago, is charged with sexual abuse with an incapable victim on or about June, 25, 2017. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Julian Lara-Arellano , age 41, is charged with illegal reentry after deportation on or about June 26, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Ivan Leon-Vega, age 36, is charged with illegal reentry after deportation following an aggravated felony conviction on or about June 30, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Norberto Malagon-Vega, age 41, is charged with illegal reentry after deportation on or about June 26, 2017. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Justin Montello, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with interference with federally protected activity on or about August 8, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Montello with threatening interstate communication on or about August 8, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Guadalupe Palma-Ceballos, age 33, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about June 28, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Manuel Portillo-Choto, age 33, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about June 28, 2017. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Chaz Corleone Santangelo, age 40, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine beginning on or about December, 2015, and continuing to on or about December 2, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Santangelo with possession with intent to distribute 5 grams or more of methamphetamine on or about December 2, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Stanley Lee White, Jr., a/k/a “Ironboy”, age 50, of Niobrara, Nebraska, is charged with abusive sexual contact between on or about March 20, 2015, and on or about March 19, 2016. The maximum possible penalty if convicted is Life imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Eric Wooding, age 40, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture of methamphetamine beginning on or about September, 2011 and continuing to on or about February, 2017. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Wooding with possession with intent to distribute a mixture of methamphetamine on or about January 7, 2017. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Isleta Pueblo Man Sentenced for Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Ben E. Aragon, 26, an enrolled member of the Pueblo of Isleta who resides in Bosque Farms, N.M., was sentenced today in federal court in Albuquerque, N.M., to 12 months in prison for assaulting a federal officer. Aragon will be on supervised release for three years after he completes his prison sentence.
Aragon was charged by criminal complaint on July 28, 2016, with assaulting an officer of the Isleta Pueblo Tribal Police Department, who is commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Aragon assaulted the officer while he was attempting to arrest Aragon on tribal charges of aggravated assault and criminal trespass, and an outstanding tribal arrest warrant.
Aragon was indicted on Sept. 13, 2016, and charged with assaulting a federal officer who was engaged in the performance of her official duties on July 23, 2016, on the Isleta Pueblo in Bernalillo County, N.M. Aragon pled guilty to the indictment on July 5, 2017, without the benefit of a plea agreement.
This case was investigated by the Isleta Pueblo Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Indian Man Convicted for Using Fake Identity to Obtain CitizenshipRead the Press Release
HOUSTON - An Indian man who was ordered deported from the United States has been convicted for using a fake identity to obtain citizenship, announced Acting U.S. Attorney Abe Martinez.
Balbir Singh aka Ranjit Singh, 50, who resided in Houston, had previously attempted to obtain asylum under false pretenses. When that attempt failed, an immigration judge then ordered his deportation from the United States, thus making him ineligible to ever become a naturalized citizen.
However, instead of leaving the country, he changed his name, date of birth, the manner in which he entered the United States and his familial history so that he could obtain lawful immigration status, and later naturalization, based on a marriage to a United States citizen. In the process of obtaining this citizenship, he denied ever being ordered deported, seeking asylum or using a different identity.
In addition, Singh sent a letter to the Department of Homeland Security (DHS) in 2013. In it, he complained about the anxiety and frustration he experienced in having to wait for an extended period at the airport every time he returned from an international trip due to discrepancies in his biometric information. He requested DHS clear these discrepancies.
After obtaining citizenship, a fingerprint comparison established the man ordered previously ordered deported from the United States - Balbir Singh – and the man who later became a naturalized citizen - Ranjit Singh - were one in the same.
U.S. District Judge Ewing Werlein Jr. accepted the plea and has set sentencing for Oct. 13, 2017. At that time, Singh faces up to 10 years in federal prison, a maximum $250,000 possible fine, revocation of his citizenship and enforcement of his outstanding deportation order.
U.S. Citizenship and Immigration Services and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Houston Physician Convicted of Conspiracy in $1.5 Million Medicare Fraud SchemeRead the Press Release
A federal jury convicted a Houston physician today for his role in a scheme involving approximately $1.5 million in fraudulent Medicare claims for home health care services and various medical testing and services.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Region and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
After a four-day trial, Ronald F. Kahn, M.D., 62, of Harris County, Texas, was convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive illegal kickbacks. Sentencing has been scheduled for September 25, before U.S. District Judge Kenneth M. Hoyt, who presided over the trial.
According to evidence presented at trial, from approximately 2006 until 2013, Kahn and others engaged in a scheme to defraud Medicare out of approximately $1.5 million in fraudulent claims for home heath care services in connection with Allied Covenant Home Health, Inc., a Houston home healthcare agency (Allied). Kahn fraudulently admitted patients for home health care with Allied when they did not qualify for such services, the evidence showed. To make it appear that these patients did qualify, Kahn falsified medical records and signed false documents purporting to show that patients admitted to Allied’s home health program satisfied Medicare’s requirements for admission, the evidence showed.
The evidence also showed that Kahn paid illegal kickbacks for patients from Harris Health Care Group, a Houston medical clinic (Harris). Kahn paid illegal kickbacks to the owner of Harris in order to bill Medicare for facet injections that were medically unnecessary, not provided or both, the evidence showed.
The case was investigated by the FBI, HHS-OIG and Texas MFCU, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Ashlee McFarlane and Trial Attorney Scott Armstrong of the Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Hinds County Man Pleads Guilty to Possesion of a Firearm by a Convicted FelonRead the Press Release
Jackson, MS -- Richard Brian Williams, age 31, formerly of Byram, MS, pleaded guilty to Possession of a Firearm by a Convicted Felon before U.S. District Judge Henry T. Wingate, announced Acting U.S. Attorney Harold Brittain. Williams admitted that on January 20, 2017, he possessed two handguns: a Taurus .45 caliber pistol and a Colt .22 caliber Derringer, after previously being convicted in several Mississippi circuit courts of the following felonies: Auto Burglary in 2003, Burglary of a Dwelling in 2004 and again in 2005, Robbery in 2009, and Introduction of Contraband into a Correctional Facility in 2015.
Williams is currently detained in the Madison County Jail and will be sentenced on September 29, 2017 at 9:30 a.m.
The case was investigated by the Bureau of Alcohol Tobacco Firearms and Mississippi Department of Corrections. It is being prosecuted by Assistant United States Attorney Carla Clark.
Hawaii Soldier Indicted for Attempting to Provide Material Support to IsisRead the Press Release
HONOLULU – Ikaika Erik Kang, 34, an Army sergeant first class stationed at Schofield Barracks, Hawaii, was indicted by a federal grand jury on July 19, 2017 with attempting to provide material support to the Islamic State of Iraq and al-Sham ("ISIS"), a designated foreign terrorist organization. Kang was previously arrested on July 8, 2017, and ordered detained pending further proceedings.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, and Dana Boente, Acting Assistant Attorney General for National Security, announced that the indictment charges Kang with four counts of attempting to provide material support to ISIS, based on events that occurred in Hawaii between June 21 and July 8. The indictment and an earlier criminal complaint allege that Kang met with undercover agents of the FBI whom he believed to be affiliated with ISIS, and provided military information, some of which was classified by the United States at the SECRET level. Kang is also charged with providing property (a drone and military clothing and equipment) and training (instruction on combat techniques and weapons training which was videotaped for future use by ISIS) to undercover agents whom he believed to be affiliated with ISIS.
Kang will appear in court on July 24, 2017, for an arraignment and plea on the charges, at which time a trial date will be scheduled.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charges, Kang faces a maximum of 20 years in prison and up to a $250,000 fine for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation and the United States Army, Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorneys Ken Sorenson and Marc Wallenstein, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
Harrold Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Harrold, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Raynard Lee Howe, Jr., age 20, was indicted on July 11, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 28, 2017, Howe forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a correctional officer from the Bureau of Indian Affairs, while said correctional officer was engaged in the performance of his official duties. Said conduct involved physical contact with the correctional officer.
The charge is merely an accusation and Howe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Howe was released on bond pending trial. A trial date has not been set.
Hammond Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that a federal grand jury sitting in Hammond has returned a 2-count indictment against Charles Stroud, age 73, of Hammond, Indiana.
According to the indictment, between January 2015 and August 2016, Stroud received child pornography. On or about August 2016, Stroud was also found in possession of child pornography.
If you have any information about Stroud’s activities involving children, please contact Task Force Officer Jones at the Federal Bureau of Investigation at 219-942-4900.
The United States Attorney’s Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Indiana State Police. The case is being prosecuted by Assistant U.S. Attorney Jill R. Koster.
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Guatemalan National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Guatemalan national was sentenced yesterday in federal court in Boston for a federal immigration crime.
Mario Antonio Najera-Salguero, 30, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge Denise J. Casper, who sentenced Najera-Salguero to time served and one year of supervised release. Najera-Salguero will also be subject to deportation.
Najera-Salguero self-deported at some point after July 14, 2003. He was later encountered in the United States and deported on Nov. 13, 2009. On June 14, 2017, law enforcement again encountered Najera-Salguero in Boston, using a different name, and determined him to be illegally present in the United States.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
Government Contractor Sentenced to Life in Prison for Trafficking and Sexually Exploiting Minors AbroadRead the Press Release
Today, U.S. District Judge Robert N. Scola Jr., sentenced Christopher Rennie Glenn, a former government contractor with ties to West Palm Beach, Florida, to life in prison, after a federal jury convicted of him of sexually exploiting and trafficking in minors, while working overseas.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
“Christopher Glenn’s life sentence sends a clear message about our unwavering commitment to prosecute those who sexually exploit minors and prey on their vulnerability,” stated Acting U.S. Attorney Benjamin G. Greenberg. “International borders do not protect United States citizens who commit these crimes and victimize others. The tenacious work of our prosecutors and agents demonstrates that we will use the long-arm of our justice system to reach offenders abroad and hold them accountable in our courts.”
"The evil carried out by Christopher Glenn clearly justifies this sentence," said SAC George L. Piro. "So let the record show, those who prey on children and are within the grasp of US laws, we will look for you, investigate you and ultimately bring you to justice."
Glenn was previously convicted of eight out of ten charges submitted to the federal jury: one count of conspiracy to commit sex trafficking by fraud and of a minor in violation of Title 18, United States Code, Section 1594(c); one count of sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1591(a)(1); four counts of attempting to engage in sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1594(a); one count of traveling overseas with the intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b); one count of sexually assaulting a minor, in violation of Title 18, United States Code, Section 2243(a); and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(A) (Case No. 15-CR-20632). Glenn was acquitted on the two remaining charges of conspiracy and sex trafficking. All of the charged conduct occurred outside of the United States, in either Iraq or Honduras, and largely while Glenn, a United States citizen, was working as a network system administrator contracted by the United States Department of Defense. Title 18, United States Code, Sections 1596, 3261, and 3271, provide for extraterritorial jurisdiction in the sex trafficking and child exploitation offenses charged.
Glenn engaged in an elaborate scheme to sexually exploit young girls between the ages of 13 and 16 years of age in 2010 and from 2012 through 2014 in Honduras, where he had moved to work at the U.S. Army Southern Command’s Joint Task Force Bravo, in Soto Cano Air Base. Evidence at trial revealed that Glenn, with the aid of coconspirators, fraudulently recruited young girls living in very poor rural villages to work as housekeepers at his home. In exchange, Glenn promised to pay a significant amount of money to the families. Shortly after the girls’ arrival to Glenn’s home in Honduras, he sexually assaulted the girls, or sought to “marry” the minors to engage in sexual acts with them. Some victims testified that Glenn gave them pills that made them sleepy and dizzy before engaging in sexual acts with them. A government expert witness testified that some pills seized by law enforcement from Glenn’s Honduras residence in March of 2014 were determined to be drugs that can be used as sedatives and date rape drugs. At trial, the Government also introduced evidence that Glenn had engaged in sexual acts with a minor female from Mexico beginning in 2002, when the minor was only 13-years-old. The minor resided with the defendant in California until 2006. In 2005, Glenn possessed electronic images of this sexual abuse in Iraq while working as a government contract worker. These images of child pornography were also recovered from Glenn’s residence in Honduras in 2014 and were the subject of the possession of child pornography charge.
Glenn was initially arrested in February 2014, and charged in the Southern District of Florida with national-security and espionage related violations (Case No. 14-CR-80031-Marra). In 2015, Glenn pled guilty to charges in that case and was sentenced to a ten-year term of imprisonment.
The child exploitation charges are the culmination of a three-year long investigation led by the FBI Miami Field Office’s Violent Crimes Against Children Squad. This case was prosecuted by Special Prosecutions Assistant United States Attorneys Barbara A. Martinez and Vanessa Singh Johannes from the United States Attorney’s Office for the Southern District of Florida and Trial Attorney Christian Ford from the Department of Justice’s Counterintelligence and Export Control Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Wayne Man Sentenced to 100 Months ImprisonmentRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Tyquane Lamar Stewart, age 25, of Fort Wayne, Indiana, was sentenced on July 21, 2017, before United States District Court Judge Theresa Springmann for the federal crime of being a felon in possession of a firearm.
Stewart was sentenced to 100 months imprisonment and 1 year of supervised release.
According to documents filed in this case, on or about November 16, 2016, Stewart possessed a firearm after previously being convicted of attempted robbery, a class C felony, in December of 2010 before Allen Superior Court.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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Former Newport Police Officer, FOP President Sentenced to PrisonRead the Press Release
PROVIDENCE – Christopher Hayes, 49, of Middletown, R.I., a former Newport, R.I., Police Department Sergeant and President of the Fraternal Order of Police (FOP), Newport Lodge No. 8, was sentenced today to a total sentence of 12 months, 6 months imprisonment followed by 6 months of home confinement, for using FOP funds for personal use.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Hayes to serve 3 years supervised release upon completion of his term of incarceration; pay $71,523 restitution to the FOP; and perform a total of 300 hours of community service during his term of supervised release. The U.S. Sentencing Guidelines range in this matter is 12-18 month. The government recommended the court impose a sentence of 12 months in prison.
Hayes pleaded guilty on May 1, 2017, to wire fraud. At the time of his guilty plea, Hayes admitted to the court that between August 2009 and December 2014, he used an FOP debit card to pay for his own personal expenses; wrote checks payable to himself from the FOP bank account; withdrew cash from the FOP bank account for personal use; and made online payments to his personal credit card from the FOP bank account.
An investigation by the United States Attorney’s Office, U.S. Department of Labor – Office of Inspector General and Office of Labor Management Standards, and the Rhode Island State Police determined that Hayes fraudulently converted approximately $71,523 in FOP funds for his own personal use.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Former Executive Sentenced for $2.5 Million Embezzlement SchemeRead the Press Release
ALEXANDRIA, Va. – A Florida man who over seven years embezzled almost $2.5 million from a small business fencing company was sentenced today to 63 months in prison and ordered to pay nearly $2.5 million in restitution to victims.
Donald Gasser, 59, of Sorrento, Florida, pleaded guilty to wire fraud on April 5. According to court documents, Gasser served as the Chief Financial Officer and Treasurer of a small business operating out of Dulles that installed fences and decks. Between 2008 and 2015, Gasser used his position to embezzle over $2.3 million from the company. Without authorization, Gasser opened new financial accounts in the company’s name and directed accounts statements to his home. Gasser wrote company checks payable to himself, issued business checks to pay for personal expenses, and used funds embezzled directly from company to purchase luxury items such as a personal watercraft. As a result of the fraud, the fencing company was forced to lay off a portion of its workforce and its owners were assessed a tax lien of over $1 million.
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, made the announcement after sentencing by U.S. District Judge Anthony Trenga. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-64.
Florida Man Sentenced to Twelve Years for Receiving Child Pornography from the Dark NetRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Richard Lueck (62, Satellite Beach) to 12 years and 7 months in federal prison for receiving child pornography. The Court also ordered him to forfeit the electronic devices he had used to commit the offense, and to serve 10 years of supervision following his release from prison.
Lueck plead guilty on April 14, 2017.
According to court documents, the FBI identified Lueck through a nationwide investigation of “Playpen,” a child pornography website that operated as a hidden service on the Dark Net - an area of the Internet only accessible through an encrypted browsing platform. Lueck downloaded child pornography from the illicit site until March 4, 2015, when it was shut down by the FBI. Pursuant to a search warrant, agents seized Lueck’s electronic devices and located 143 images of child pornography. Lueck admitted that he had obtained child pornography from the Dark Net for six years, and that he had used an encrypted browser to conceal his illegal conduct from law enforcement.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Florida Man Sentenced to Seven Years for Receiving and Possessing Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Charlene E. Honeywell has sentenced George A. Frampton (63, Brandon) to seven years in federal prison for receiving and possessing child pornography. The Court also ordered him to pay $5,300 in special assessments and to serve 15 years on supervised release following his term of imprisonment.
Frampton pleaded guilty on April 13, 2017.
According to court documents and information presented at the sentencing hearing, Frampton’s offenses involved the receipt and possession of 383 videos of child pornography, some of which involved prepubescent children and sadistic conduct. The offenses were committed in May 2016.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Final Defendant in 2013 Mexican Mafia Case Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A 30-year old member of the Texas Mexican Mafia has been ordered to prison for his involvement in a major poly-drug conspiracy, announced Acting U.S. Attorney Abe Martinez. Mario Alberto Rodriguez, of Laredo, pleaded guilty in June 2014 and is the last to be sentenced as part of a conspiracy to possess with intent to distribute heroin, cocaine and methamphetamine.
Today, U.S. District Judge Diana Saldana ordered him to prison for 168 months for conspiracy to possess heroin with the intent to distribute. The sentence will be immediately followed by five years of supervised release.
Rodriguez was convicted along with other members and associates of the Texas Mexican Mafia prison gang. Rodriguez was one of several Mexican Mafia associates who would deliver loads of heroin for the main distributor - Juan Pablo Contreras - who would buy the heroin wholesale from Mexico and distribute it locally and to San Antonio and Austin.
Juan Pablo Contreras, 43, of Laredo, was sentenced last year to a 390-month-term of federal imprisonment. The remaining defendants convicted in the case received terms ranging from two years to 262 months for their respective roles in the conspiracy.
Rodriguez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Multiple agencies participated in the Organized Crime Drug Enforcement Task Force investigation which was dubbed “Operation X3” to include the FBI, Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation with assistance of the U.S. Marshals Service, Customs and Border Protection, Texas Department of Public Safety, LaSalle County Sheriff’s Office and police departments in Laredo, Austin and San Marcos. Assistant U.S. Attorney (AUSA) Andy Guardiola and former AUSA James Hepburn prosecuted the case.
Federal Jury Finds Milwaukee Man Guilty of Armed CarjackingRead the Press Release
United States Attorney Gregory J. Haanstad has announced that yesterday, a federal jury found Broderick A. Moore (age 24) of Milwaukee guilty of motor vehicle robbery (carjacking) and brandishing a firearm during a crime of violence.
The evidence presented at trial showed that on July 16, 2015, at about 10:20 a.m., Mr. Moore carjacked a 73 year-old woman, across the street from Wick Field, in Milwaukee. The evidence established that Mr. Moore pointed a loaded gun at the victim’s head, threatened to shoot her, and demanded the keys to her Toyota Avalon. Mr. Moore’s co-defendant, Robert Ellis, orchestrated the sale of the car immediately after the carjacking. Robert Ellis and co-defendant Sean Harvey then drove to the victim’s home and stole her Honda Accord.
At trial, Mr. Moore chose to testify in his own defense and claimed that although he was a drug dealer, he was not involved in the carjacking. The jury rejected Mr. Moore’s claim.
Sentencing for Mr. Moore has been scheduled for November 30, 2017, before United States District Judge Pamela Pepper. At sentencing, Mr. Moore faces a maximum of 15 years in prison for the motor vehicle robbery and an additional mandatory minimum sentence of seven years and up to life in prison for brandishing the firearm during the robbery. The sentence for brandishing the firearm must run consecutive to the sentence for the underlying robbery.
Mr. Moore’s co-defendants, Sean Harvey and Robert Ellis, have pled guilty to the motor vehicle robbery and brandishing a firearm during that robbery and are awaiting sentencing.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force and the Milwaukee Police Department. The case was prosecuted by Assistant United States Attorneys Margaret B. Honrath and Laura S. Kwaterski.
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Federal Jury Finds Knoxville Felon Guilty of Illegally Possessing a Loaded GunRead the Press Release
PITTSBURGH - After deliberating for two hours on Tuesday, July 20 and for less than one hour on Friday, July 21, a federal jury of seven men and five women found Andrew M. Jones guilty of one count of a federal firearms violation, Acting United States Attorney Soo C. Song announced today.
Jones, age 39, was tried before Chief United States District Judge Joy Flowers Conti in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Rachael L. Dizard and Katherine A. King, who prosecuted the case, the evidence presented at trial established that, on January 31, 2016, Jones, a convicted felon, knowingly possessed a loaded firearm.
Chief Judge Conti will issue a written order scheduling a dare for sentencing. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Andrew M. Jones.
Federal Jury Convicts Mission Man for Cocaine PossessionRead the Press Release
McALLEN, Texas – A McAllen federal jury has convicted a lawful permanent resident who was residing in Mission for possessing with the intent to distribute approximately 50 kilograms of cocaine, announced Acting U.S. Attorney Abe Martinez. The jury deliberated for less than an hour before convicting Leonel Luis Nordhausen-Cuevas, 58, following a two-day-trial.
During trial, the jury heard that a Border Patrol agent was conducting surveillance at the StarrCo farms south of La Grulla on March 11, 2016 and observed Nordhausen-Cuevas drive down to a ramp near the Rio Grande River, enter the brush and return to his truck carrying something heavy. He then drove to a building on the farm and carried something inside.
Soon after, another agent arrived and observed Nordhausen-Cuevas standing outside the truck. He claimed the truck was not his and that someone else had just exited the truck and ran south. The agent searched the truck and found a fertilizer bag containing approximately 25 kilograms of cocaine wrapped in small brown bundles with distinctive markings.
Nordhausen-Cuevas had the truck’s keys on him, but still claimed it was someone else who was driving it.
The first agent arrived at the scene and identified Nordhausen-Cuevas as the person he saw pickup something from the river area based on his clothing and stature. That agent then investigated the first building that Nordhausen-Cuevas entered and found another fertilizer bag full of cocaine bundles, just like the one in the truck.
Nordhausen-Cuevas later claimed that a “Martin” had been the driver, but gave no more information about “Martin,” upon questioning. The jury heard that there were no employees named “Martin” working on the farm at that time.
U.S. District Judge Ricardo Hinojosa, who presided over the trial, has set sentencing for Sept. 29, 2017, at which time Nordhausen-Cuevas faces a minimum of 10 years and up to life in federal prison. He will remain in custody pending that hearing.
Border Patrol and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Joseph T. Leonard and Roberto Lopez Jr. are prosecuing the case.
Ex-Correctional Officer at Federal Prison in Victorville Sentenced to 6 Months in Prison for Taking Bribe to Smuggle Contraband to PrisonerRead the Press Release
SANTA ANA, California – A former federal correctional officer who worked at the United States Penitentiary in Victorville was sentenced today to six months in federal prison and six months of home detention for taking a $1,000 bribe to smuggle contraband to a prisoner inside the facility.
Ignacio Adrian Sobers Jr., 31, of San Bernardino, was sentenced this morning by United States District Judge Josephine L. Staton.
During the sentencing hearing, Judge Staton said, “Corruption in the prison system is no small matter…. If the officer corrupts that system, the system breaks down, and the public pays for that breakdown.”
Sobers pleaded guilty in March to one count of acceptance of a bribe by a public official.
Sobers was arrested by federal authorities on January 21 after receiving a $1,000 payment and a gift-wrapped package filled with contraband in a parking lot of a fast food restaurant in San Bernardino.
The contraband that Sobers received for the purpose of smuggling to the inmate included one cellular phone, three MP3 players, four pornographic magazines, and one multi-DVD set of pornographic movies. Sobers knew that inmates were prohibited from possessing these objects.
The inmate’s contact outside the prison cooperated with law enforcement during the January 21 incident in which Sobers accepted $1,000 in cash to smuggle the package to the inmate.
The investigation in this case was conducted by the Justice Department’s Office of the Inspector General, Investigations Division, Los Angeles Field Office.
The case is being prosecuted by Assistant United States Attorney Julius J. Nam of the Riverside Branch Office.
Eagle Butte Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Robbery was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Kobe Houston, age 19, was sentenced to 12 months and a day in custody, followed by 2 years of supervised release, restitution in the amount of $1,743 to be paid on a joint and several basis with three other defendants, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Houston was indicted by a federal grand jury on February 15, 2017. He pled guilty on April 24, 2017.
The conviction stems from an incident on July 2, 2016, when Kobe Houston, Ryker Talbot, Dominic Houston, and a juvenile discussed committing a robbery. Ultimately, the decision was made to rob the Eagle Stop. Shortly before 1:00 a.m. on Saturday, July 2, 2016, they all traveled to the vicinity of the Eagle Stop. Dominic Houston and the juvenile remained outside of the store and served as lookouts. Kobe Houston was the driver. Talbot entered the Eagle Stop carrying a Maverick 12-gauge shotgun, pointed the shotgun at the clerk and demanded money. Talbot then racked the shotgun and repeated his demand to be given money. The clerk gave Talbot money from the cash registers in the store. Talbot then demanded the clerk to give him two cartons of cigarettes. The clerk complied. Talbot then exited the store with the cash and cartons of cigarettes. All three of them then returned to the car and they left the scene. They later split up the proceeds acquired in the robbery.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, and the Division of Criminal Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Kobe Houston was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 17, 2017, by U.S. District Judge Roberto A. Lange.
Kirk Johnson, age 48, was sentenced to 90 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Johnson was indicted by a federal grand jury on February 15, 2017. He pled guilty on April 25, 2017.
The conviction stems from an incident on January 9, 2017, when the victim was leaving his home in Dupree, South Dakota, to go to work. When he exited his house, he saw a gray car parked out front. Kirk Johnson and another individual were arguing. Johnson approached the victim and accused him of sleeping with his wife. The victim told Johnson that was not true. Johnson threatened to kill the victim, his fiancée, and his children. Johnson pointed the gun at the victim’s face, pointed it downward and shot at the ground 6 or 8 times around the victim’s feet, pistol-whipped the victim behind his left ear and then left on foot.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshals Service.
Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON - A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
Robert Alberto Pimentel, a/k/a Sandro Rodriguez, 39, a Dominican national residing in Roxbury, pleaded guilty to one count of illegal reentry of a deported alien before U.S. District Court Judge William G. Young, who immediately sentenced Pimentel to time served. Pimentel will be subject to deportation.
Pimentel was previously deported on Sept. 22, 2010. On June 20, 2017, law enforcement encountered Pimentel 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. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit prosecuted this case.
District Woman Pleads Guilty to Fatally Beating Man at Her Apartment in Northeast WashingtonRead the Press Release
WASHINGTON – Thomasine Bennett, 67, of Washington, D.C., pled guilty today to a charge of voluntary manslaughter for killing her 63-year-old boyfriend earlier this year at her apartment in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Bennett pled guilty in the Superior Court of the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 10 years in prison. The Honorable José M. Lopez set a hearing for Sept. 22, 2017 to determine whether to accept the plea and sentence.
According to a proffer of facts submitted at today’s hearing, on Feb. 17, 2017, at approximately 12:55 p.m., officers with the Metropolitan Police Department (MPD) received a call to investigate trouble at an apartment in the 700 block of 21st Street NE. Upon arrival, officers found the victim, Walter M. Clark, unconscious and unresponsive inside a hallway closet with multiple brises to the body. The District of Columbia Department of Fire and Emergency Medical Services transported Mr. Clark to a hospital, where he was pronounced dead. An autopsy later determined that Mr. Clark died from multiple blunt force trauma.
Bennett met police officers when they arrived on the scene. According to the proffer, she stated that her boyfriend was in the back and that he made her smoke “Love Boat” the previous night. She directed officers to the hallway closet. Investigators quoted Bennett as saying that she beat Mr. Clark with a baseball bat over the last day and a half. She was arrested and has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Marcey Rinker, and Assistant U.S. Attorney Katherine Earnest, who investigated and prosecuted the matter.
Davenport Man Sentenced to 180 months in Prison for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA- On July 20, 2017, Devonte Darnell Holston, 22, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 180 months in prison for a Felon in Possession of a Firearm charge, announced United States Attorney Kevin E. VanderSchel. Holston was ordered to serve a five-year term of supervised release following his imprisonment and to pay $100 to the Crime Victims’ Fund.
On June 26, 2016, Davenport Police Officers seized two firearms from a vehicle occupied by Holston. On March 7, 2017, Holston pleaded guilty and admitted he knowingly possessed the firearms seized from the vehicle.
This matter was investigated by the Davenport Police Department’s Tactical Operations Bureau, Davenport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Darlington Man Sentenced to 168 Months in Federal Prison on Drug Conspiracy and Weapons ChargeRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Justin Martin Jackson, 29, of Darlington, South Carolina, was sentenced this week in Florence to 168 months imprisonment followed by a five-year term of supervised release. On March 8, 2017, Jackson entered a guilty plea in federal court to conspiracy, use of a communication facility in furtherance of the conspiracy, and use and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Bruce H. Hendricks imposed the sentence.
This case was part of an extensive investigation conducted into the sale of illegal drugs in the Darlington County area. Jackson was identified as a possible cocaine and cocaine base distributor during the investigation. Evidence presented at the change of plea hearing and sentencing hearing established that in December 2009, law enforcement agents conducted a traffic stop of a vehicle driven by Jackson and found Jackson to be in possession of cocaine and cocaine base. In December 2015, Jackson was arrested pursuant to a federal indictment at a residence in Darlington. A search of the residence resulted in the seizure of over a kilogram of cocaine and 160 grams of cocaine base. Two handguns and drug paraphernalia were also recovered in the residence.
The case was investigated by the FBI (Florence Division), the South Carolina Law Enforcement Division (SLED), the South Carolina Highway Patrol (SCHP), the Darlington County Sheriff’s Office (DCSO) and the Darlington County Drug Enforcement Unit (DCDEU). Assistant US Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Dallas Man Sentenced to 20 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
DALLAS — This morning, U.S. District Judge Sidney A. Fitzwater sentenced Alejandro Farrera Cendejas, 33, of Dallas, to 240 months in federal prison, following his guilty plea in October 2016 to one count of possession with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Cendejas has been in custody since the time of his arrest in June 2016.
According to plea documents filed in the case, on May 18, 2017 Cendejas met an individual at a public parking lot in Dallas and sold a kilogram of methamphetamine for $6,700.
The Drug Enforcement Administration, Rockwall Police Department, Allen Police Department, and the Texas Department of Public Safety investigated the case.
Assistant U.S. Attorney Suzanna Etessam was in charge of the prosecution.
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CFO and VP Sentenced in Nationwide Worker's Compensation Fraud SchemeRead the Press Release
HOUSTON – Two officials with Team Work Ready (TWR) have been ordered to federal prison for conspiracy, health care fraud, wire fraud and money laundering, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Maximo Eamiguel of the U.S. Postal Service - Office of Inspector General (USPS-OIG), Special Agent in Charge Steven Grell of the U.S. Department of Labor (DOL) – OIG, Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI), Special Agent in Charge James Werner of the Department of Veterans Affairs (VA) – OIG, and Special Agent in Charge David J. Green of the Department of Homeland Security (DHS) – OIG.
A federal jury deliberated for 14 hours following a 16-day trial before convicting one of the TWR founders and chief financial officer (CFO) Pamela Annette Rose, 55, and the clinic’s vice president of operations Frankie Lee Sanders, 55, along with CEO Jeffrey Eugene Rose Sr., 54, on Oct. 17, 2016.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Sanders a 300-month sentence, while Pamela Rose will serve a 120-month-term. They will both also be required to serve a term of three years of supervised release following completion of the prison terms. The evidence presented at the hearing included reference to various audio recordings obtained during the investigation and large volumes of documents obtained during the investigation. Pamela Rose was ordered to pay a $14,537548.54 in restitution, while Sanders is to pay $13,365,525.38. In handing down the sentence, Judge Werlein noted the seriousness of health care fraud and the need to deter those involved in this crime. Jeffrey Rose will be sentenced at a later date.
“The sentence issued today should be an explicit deterrent to those healthcare providers engaging in illegal activity in order to receive undeserved monetary payments. Fraud committed against federal benefit programs is a serious offense that will not be tolerated,” said Eamiguel. “The USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to protect the Office of Workers’ Compensation Programs and United States Postal Service from further fraud and abuse.”
“Team Work Ready’s CFO, vice president of operations and others participated in a fraudulent scheme to submit approximately $9 million in false claims to the DOL - Office of Workers’ Compensation Programs (OWCP) for healthcare services not provided to federal workers,” said Grell. “Rose, Sanders and their co-conspirators stole money intended to pay for legitimate patient care for federal workers suffering from work related injuries. We will continue to work with our law enforcement partners to protect all Department of Labor programs.”
“Sanders and Ms. Rose will now lose their freedom for defrauding U.S. Taxpayers for personal monetary gain,” said Goss. “These types of schemes not only undermine federal programs but also take money and benefits from those patients who need it the most.”
“This case underscores VA-OIG’s commitment to protecting the taxpayer dollars intended for the medical treatment of injured VA employees by legitimate healthcare providers,” said Werner.
“Today’s sentencing is a testament that the U.S. government will not tolerate those who defraud its healthcare system, said Green. “The federal employee compensation program was designed to help those government employees rehabilitate and return to duty after suffering an injury. The fact that these two individuals exploited the system, designed to help those with medical needs, to line their own pockets is deplorable. Special Agents from many agencies worked together with prosecutors to ensure a successful outcome and should be commended for their efforts.”
TWR had clinics in five states including Federal Work Ready in Houston, Alamo Work Ready in San Antonio and Bayou Work Ready in New Orleans, Louisiana. During the criminal trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from the USPS-OIG and IRS-CI. According to testimony, TWR submitted approximately $9.6 million in false and fraudulent claims from four of its clinics for physical therapy services that were not provided. The claims were submitted under the Federal Employees Compensation Act (FECA) health care benefit program which is administered by the DOL - OWCP.
DOL-OWCP's chief fiscal officer explained to the jury at the start of the trial that FECA does not pay for professional services performed by unlicensed aides which is why DOL-OWCP requires the enrollment of all licensed professionals providing services to injured federal employees, including copies of professional licenses. He testified that the FECA program only considers chiropractors as physicians when they treat spinal subluxation. Otherwise, chiropractors are considered equivalent to physical therapists and may provide physical therapy under the direction of, and as prescribed by, a medical doctor. Specifically, in relation to this case, the DOL-OWCP would not have paid millions of dollars for the physical therapy services billed by TWR if they had known that the services were not provided as described in the claims submitted to DOL-OWCP.
The claims TWR submitted falsely and fraudulently described skilled one-on-one physical therapy services provided by a licensed chiropractor. Patients from four TWR clinics testified that they did not receive the one-on-one physical therapy services paid for by DOL-OWCP under FECA. Rather, they stated that they exercised independently on treadmills, bicycles and elliptical machines with the Nintendo Wii game and with other pieces of exercise equipment. The San Antonio clinic also had an electronic massage chair for patients. One patient from Houston testified that she felt that some of the exercises she was asked to do had nothing to do with her carpal tunnel wrist injury, specifically the treadmill. Another patient from the San Antonio clinic testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury.
The jury also heard testimony from 11 former TWR employees, including unlicensed therapy technicians from the Houston and New Orleans clinics, a case manager and two licensed chiropractors. The employees reported 30 – 60 patients a day at the Houston clinic and said there were times when they did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. The employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Various individuals described the treatment as “like a gym.”
The jury also heard from two federal agents who went undercover as “injured federal employees” at the Houston and New Orleans clinics. The jury watched portions of video recordings covertly made by the undercover agents that showed patients independently exercising and receiving care from unlicensed and obviously untrained staff.
One of the licensed chiropractors testified that she began covertly recording meetings with the defendants in December 2012. The jury heard several of the recordings, including one in which the defendants tried to coerce the chiropractor to order medically unnecessary treatment so TWR could make a profit.
TWR's former chief operating officer (COO) testified about a phone call he received from CFO Rose on July 11, 2013 - the day federal agents executed search warrants at TWR clinics in Houston and New Orleans. The COO said CFO Rose instructed him to meet her and CEO Rose at a local Chase bank where they moved money out of the TWR accounts to hide it from the federal government. An IRS-CI special agent traced the $700,000 transferred out of TWR bank accounts, into a transportation company account owned by Mr. and Mrs. Rose and then out of that account via a cashier’s check in the name of two “shell” businesses not associated with TWR but also owned by Mr. and Mrs. Rose.
Sanders and Jeffrey Rose have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Pamela Rose was permitted to remain on bond and voluntarily surrender at a later date.
This case was the result of a joint investigation with the USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security - OIG. Assistant United States Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.
Brookings Man Sentenced in Heroin and Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Brookings, South Dakota, man convicted of conspiracy to distribute 500 grams or more of methamphetamine and 100 grams or more of heroin was sentenced on July 17, 2017, by U.S. District Judge Karen E. Schreier.
Luis Rolando Cabrera, age 20, was sentenced to 188 months in prison to be followed by five years of supervised release. He was also ordered to pay $200 to the Federal Crime Victims Fund.
Cabrera was indicted for the offenses by a federal grand jury on September 7, 2016. He pled guilty on April 12, 2017.
The investigation of Cabrera began when a package containing over two pounds of heroin was intercepted by law enforcement. The package was subsequently linked to Cabrera. A day later, law enforcement intercepted another package connected to Cabrera that contained approximately five pounds of methamphetamine.
This case was investigated by the Watertown Police Department, the Brookings Police Department, the Brookings County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Cabrera was remanded to state custody to finish serving a prison sentence, and will immediately be turned over to the custody of the U.S. Marshals Service to begin serving his federal sentence once he has finished his state sentence.
Bridgeport Man Charged with Illegally Possessing Firearms and AmmunitionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned an indictment charging TYESHON KING, 30, of Bridgeport, with one count of possession of firearms and ammunition by a convicted felon.
The indictment was returned on July 12, 2017, and KING was arrested the next day.
The indictment alleges that on March 24, 2017, KING possessed a Taurus 9mm semi-automatic pistol, a Taurus .40 caliber semi-automatic pistol, and 28 rounds of assorted .40 caliber ammunition, all of which were manufactured out of state.
The indictment further alleges that, in May 2007, KING was convicted in state court of attempted assault in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The charge of possession of firearms and ammunition by a convicted felon carries a maximum term of imprisonment of 10 years.
KING has been detained since his arrest on July 13, 2017.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Alina Reynolds.
Bloomington accountant sentenced in federal fraud schemeRead the Press Release
Former CPA to spend nearly 3 years in prison for defrauding long-time client out of over $1,000,000
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that a Bloomington accountant and financial advisor was sentenced in federal court for his role in defrauding a long-time client and family friend of nearly $1.2 million. Michael E. Sallee, 59, was sentenced to 33 months in federal prison by U.S. District Judge Tanya Walton Pratt after pleading guilty to mail fraud charges.
“We expect integrity from accountants and financial professionals,” said Minkler. “We entrust them with our money. We talk with them about our families and our plans for our children and we expect that they are looking out for our best interests. So when they exploit that special trust for their own personal gain through lies and deceit, this office will hold them accountable.”
For over three decades, Sallee served as a trusted CPA and financial advisor for clients throughout southern Indiana. In 1997, he began managing the financial affairs for the victim in this case, a long-time client of his father’s, who was also an accountant. The victim, a widow, and her children and grandchildren, had entrusted Sallee to invest and manage the proceeds from the sale of the family business, which the victim’s late husband had built.
In 2003, however, Sallee began embezzling funds from the victim’s account to his own personal account. For the next ten years, Sallee wrote checks or transferred funds to himself from the victim’s account on almost 100 separate occasions – all the while repeatedly reassuring the victim and her family that their money was safe and growing.
In 2013, the victim and her children began to notice irregularities in the financial statements that Sallee would periodically prepare and mail to them. An FBI investigation revealed that the financial statements were false – they overstated the true value of the victim’s account, which had been drastically reduced by Sallee’s embezzlement.
In total, from 2003 to 2013, Sallee stole $1,193,781.90 from the victim and her family. He used the money for his own benefit, from buying meals at restaurants and making purchases retail stores, to taking family vacations to Disney World, Mackinac Island, and Yellowstone National Park.
“This is someone who was a trusted financial advisor and longtime family friend of the victim who abused his position of trust,” said W. Jay Abbott, Special Agent in Charge of the FBI’s Indianapolis Division. “This investigation shows that our special agents and local partners work diligently to uncover this type of fraudulent behavior and ensure an individual such as this, who preyed on an elderly person, was brought to justice.”
According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Sallee was ordered to pay full restitution to the victim for the entire amount he stole. To date, Sallee has paid back approximately $168,000.
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Baton Rouge Home Health Company Settles False Claims Act Case for $1.7 MillionRead the Press Release
BATON ROUGE, LA - Acting United States Attorney Corey R. Amundson announced that CHARTER HOME HEALTH, a Baton Rouge-based healthcare company, has agreed to settle a civil fraud complaint filed under the federal False Claims Act by paying the United States $1.7 million and entering into a Corporate Integrity Agreement.
The settlement arises from an investigation into allegations that Charter Home Health, through its officers, paid Veronica Green and others for patient referrals from 2006 through 2012, in violation of Medicare’s Anti-Kickback provisions. The settlement resolves the matter as to Charter Home Health and its officers, Wandell Rogers and Allison Williams.
As part of the settlement, Charter Home Health has agreed to enter into a Corporate Integrity Agreement (CIA). The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs, specifically dealing with, among other things, proper billing and submission of reimbursement claims by Charter Home Health.
The investigation leading to this settlement also resulted in Veronica Green’ s conviction for Social Security benefits fraud in the Middle District of Louisiana. Green had fraudulently concealed her receipt of the Charter referral payments from the Social Security Administration in order to continue receiving Social Security disability income. As a result, Green received $152,627 in social security benefits to which she otherwise would not have been eligible.
Acting U.S. Attorney Amundson stated, “We will continue to use all civil and criminal tools at our disposal to protect our tax dollars. I appreciate the hard work of the attorneys and investigators who handled this important matter on behalf of the United States. This settlement rightly results in the return of money to the federal government, along with a Corporate Integrity Agreement to help prevent any future improprieties.”
“Home health care providers who pay kickbacks in exchange for patient referrals will be held responsible at the settlement table. We will continue to crack down on such illegal, wasteful business kickback arrangements, which undermine medical judgement, corrode the public’s trust in the health care system, and divert scarce Medicare funding,” said Special Agent-in-Charge C.J. Porter, U.S. Department of Health and Human Services Office of Inspector General.
This matter was handled by the United States Attorney’s Office for the Middle District of Louisiana, through Assistant United States Attorney Catherine Maraist; the Dallas Regional Office of the United States Department of Health and Human Services, Office of Inspector General; and the Baton Rouge Office of the Social Security Administration.
Barrio Azteca Gang Lieutenant Sentenced to Life in Prison for Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang lieutenant was sentenced on July 20, to life in prison today for his participation in a racketeering and drug trafficking conspiracy.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas; Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office; and Special Agent in Charge Will Glaspy of the Drug Enforcement Administration’s (DEA) El Paso Division made the announcement.
Ricardo Valles De La Rosa (Valles), aka Chino, 52, of El Paso, pleaded guilty on January 13, before U.S. District Judge Kathleen Cardone of the Western District of Texas to racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; conspiracy to import heroin, cocaine and marijuana; and conspiracy to commit money laundering. As part of his plea, Valles agreed that he conspired to commit murder in a foreign country. Valles is one of 35 members and associates of the BA gang charged in a third superseding indictment unsealed in March 2011, with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice.
As alleged in the indictment, members and associates of the BA have engaged in a host of criminal activity, ranging from drug trafficking, extortion and money laundering to kidnapping and homicides, including the March 13, 2010, murders in Juarez of a U.S. consulate employee and her husband, as well as the husband of another U.S. consulate employee. These individuals were killed by the BA because they were mistakenly believed to be rivals associated with the Joaquin “El Chapo” Guzman Drug Trafficking Organization.
In connection with his plea, the defendant admitted that the BA gang is a paramilitary gang with members in West Texas and Juarez, Mexico, that operates both inside and outside the prison system, and engages in drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder. In addition to profiting from drug importation and distribution, the gang also profits through the collection of a “street tax” or “cuota” through extortion from individuals engaged in both legal and illegal activities in the gang’s territory.
According to further admissions made in connection with his plea agreement, beginning in or around 1995, Valles became an associate of the BA while imprisoned at a Bureau of Prisons (BOP) facility, where he rose to the rank of sergeant. Following his release from the BOP facility and deportation to Juarez, in July 2007, Valles was promoted to lieutenant and placed in charge of prostitution and illegal after-hours alcohol sales in downtown Juarez, and also collected “cuota.” Additionally, Valles maintained contact on behalf of the BA with a Mexican law enforcement entity, and would use that contact to obtain information regarding the arrests of BA members, the activities and locations of rival gang members and the results of hits carried out by the BA. Further, Valles maintained rosters of BA members in Juarez and was in charge of conducting daily roll-calls, as well as maintaining communications between the BA in Juarez and BA members who were in and out of prison in the U.S.
In addition, Valles admitted that on March 13, 2010, upon instructions from a high-ranking BA member, Valles obtained the location of a specific vehicle and sent BA members to that location. Valles admitted that he was aware that he was assisting the other BA members to locate and commit crimes against the occupants of the vehicle, including murder. BA members subsequently located the vehicle and killed the driver, who was the husband of a U.S. Consulate employee.
The defendant was sentenced to life in prison on each of counts one through three, and to 240 months in prison on count four, all to run concurrently. The defendant was also sentenced to five years of supervised release on counts one through three, and three years of supervised release on count four.
Of the 35 defendants charged in this case, 33 have been apprehended, 25 of whom have pleaded guilty, one committed suicide while imprisoned during his trial and one was found guilty at trial. Most recently, Valles, Luis Hernandez Celis, aka Pac, and Alberto Nunez Payan, aka Fresa, were extradited from Mexico in October 2015.
The FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided substantial assistance in the investigation.
Trial Attorneys Joseph A. Cooley and John C. Hanley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section, and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in this matter.
Alleged ISIS Supporter Indicted for Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
Amer Sinan Alhaggagi, 22, of Oakland, California, was indicted yesterday by a federal grand jury in San Francisco with attempting to provide material support to a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge John F. Bennett of the FBI’s San Francisco Field Office.
According to the indictment, Alhaggagi, 22, of Oakland, California, is alleged to have knowingly attempted to provide services and personnel to the Islamic State of Iraq and al-Sham (ISIS), between July and November of 2016, in violation of 18 U.S.C. § 2339B. ISIS is a designated foreign terrorist organization. The indictment alleges that the services Alhaggagi attempted to provide included opening social media accounts for the use, benefit and promotion of ISIS, and that the personnel he provided was himself.
The indictment also alleges three counts of identity theft offenses – two counts of identity theft, in violation of 18 U.S.C. § 1029, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. With respect to those charges, an affidavit previously filed by an agent of the FBI in connection with a criminal complaint in the same matter alleged that Alhaggagi had used a stolen credit card to make $4,932 in fraudulent online purchases from a clothing company.
The FBI arrested Alhaggagi, a U.S. citizen, on Nov. 29, 2016, based on a criminal complaint charging identity theft. Magistrate Judge Kandis Westmore ordered Alhaggagi detained following his arrest based on findings that he presented a flight risk and a danger to the community. The complaint and the previous proceedings against Alhaggagi were unsealed yesterday when the indictment was returned.
Alhaggagi’s arraignment has not yet been scheduled.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendant faces a maximum total sentence of 47 years on all four counts in the indictment, and a fine of $250,000 for each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The prosecution is the result of an investigation by the FBI, the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office for the Northern District of California, the National Security Division’s Counterterrorism Section of the U.S. Department of Justice, and members of the Joint Terrorism Task Force, including the Oakland Police Department and the Berkeley Police Department.
Alleged ISIS Supporter Indicted for Attempting to Provide Material Support to Foreign Terrorist OrganizationRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Amer Sinan Alhaggagi yesterday with attempting to provide material support to a designated foreign terrorist organization, announced United States Attorney Brian J. Stretch, Acting Assistant Attorney General for National Security Dana J. Boente, and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett.
According to the indictment, Alhaggagi, 22, of Oakland, California, is alleged to have knowingly attempted to provide services and personnel to the Islamic State of Iraq and Syria, or ISIS, between July and November of 2016, in violation of 18 U.S.C. § 2339B. ISIS was designated a foreign terrorist organization by the United States Secretary of State in 2014. The indictment alleges that the services Alhaggagi attempted to provide included opening social media accounts for the use, benefit, and promotion of ISIS, and that the personnel he provided was himself.
The indictment also alleges three counts of identity theft offenses – two counts of identity theft, in violation of 18 U.S.C. § 1029, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. With respect to those charges, an affidavit previously filed by an agent of the Federal Bureau of Investigation in connection with a criminal complaint in the same matter alleged that Alhaggagi had used a stolen credit card to make $4,932 in fraudulent online purchases from a clothing company.
The FBI arrested Alhaggagi on November 29, 2016, based on a criminal complaint charging identity theft. Magistrate Judge Kandis Westmore ordered Alhaggagi detained following his arrest based on findings that he presented a flight risk and a danger to the community. The complaint and the previous proceedings against Alhaggagi were unsealed when the indictment was returned.
Alhaggagi’s arraignment has not yet been scheduled.
An indictment merely alleges that crimes have been committed, and the defendants is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a total of 47 years imprisonment for the four counts charged in the indictment, and a fine of $250,000 for each count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Special Prosecutions and National Security Unit of the United States Attorney’s Office for the Northern District of California, the United States Department of Justice National Security Division, the Berkeley Police Department, and members of the Joint Terrorism Task Force including, the Oakland Police Department.
Algerian Man Extradited for Conspiring to Provide Material Support to Terrorists Makes Initial AppearanceRead the Press Release
Ali Charaf Damache, aka “Theblackflag,” 52, of Algeria, made his initial appearance today following extradition from Spain for his involvement in conspiring to provide material support and resources to terrorists.
Acting Assistant Attorney General for National Security Dana J. Boente and Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania made the announcement.
Damache was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism.
As part of the conspiracy, Damache, his co-defendants Mohammad Hassan Khalid, Colleen R. LaRose, Jamie Paulin Ramirez, and others conspired to provide material support and resources, including logistical support, recruitment services, financial support, identification documents and personnel, to a conspiracy to kill overseas. Damache, Khalid and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the U.S. divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
Furthermore, Damache, Khalid, LaRose and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Damache, Khalid, LaRose and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
This case was investigated by the Joint Terrorism Task Force in the FBI's New York Field Office, in conjunction with the FBI's Philadelphia, Baltimore and Washington DC Field Offices. Authorities in Ireland and Spain also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
Algerian Man Extradited for Conspiring to Provide Material Support to Terrorists Makes Initial AppearanceRead the Press Release
PHILADELPHIA – An Algerian man made his initial appearance today following extradition from Spain for his involvement in conspiring to provide material support and resources to terrorists, announced Acting U.S. Attorney Louis D. Lappen of the Eastern District of Pennsylvania and Acting Assistant Attorney General for National Security Dana J. Boente.
ALI CHARAF DAMACHE, 52, a/k/a “Theblackflag,” was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. Damache was arrested on unrelated charges by authorities in Ireland in March 2010.
As part of the conspiracy, Damache, his co-defendant Mohammad Hassan Khalid, Colleen R. LaRose, Jamie Paulin Ramirez, and others conspired to provide material support and resources, including logistical support, recruitment services, financial support, identification documents and personnel, to a conspiracy to kill overseas. Damache, Khalid and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
Furthermore, Damache, Khalid, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Damache, Khalid, LaRose, and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad.
This case was investigated by the FBI Field Division in New York, in conjunction with the FBI's Joint Terrorism Task Force in Philadelphia, and the FBI Field Divisions in Baltimore and Washington, D.C. Authorities in Ireland and Spain also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle, from the Counterterrorism Section of the Justice Department's National Security Division. The Office of International Affairs in the Justice Department's Criminal Division also provided assistance.
Acting U.S. Attorney Settles Civil Rights Suit Against Westchester Property Management Company and Cooperative Building for Discriminating on the Basis of DisabilityRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has settled a federal civil rights lawsuit against Defendants WEST-EX ASSOCIATES, INC. (“West-Ex”), and 505 CENTRAL AVENUE CORP. (“505 Central Ave.”), for discriminating on the basis of disability and refusing to provide reasonable accommodations, as required by the Fair Housing Act.
Acting U.S. Attorney Joon H. Kim said: “Every member of our society is entitled to equal access to housing and the independence and dignity that it provides. With this resolution, we again emphasize that condos, cooperatives, landlords, and property managers must provide reasonable accommodations to people with disabilities.”
The Fair Housing Act makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability. The law also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal opportunity to housing to persons with disabilities.
According to the allegations in the Complaint, filed in January 2017, 505 Central Ave. maintains a 155-unit housing cooperative located in White Plains called Thompkins Manor. West-Ex acts as 505 Central Ave.’s property management company, and handles applications for housing at Thompkins Manor. Between August 2013 and July 2014, West-Ex and 505 Central Ave. repeatedly denied the application of a 34-year-old individual (the “Complainant”) to purchase a one-bedroom unit at Thompkins Manor based on his disabilities. The Complainant has suffered numerous heart attacks and lives with congenital heart problems, developmental language disorder, learning disorders, and depression. The Complainant and his family requested that ownership of his unit be placed under a legal trust, which would assist the Complainant in managing the requirements of cooperative housing. West-Ex and 505 Central Ave. unlawfully rejected this reasonable accommodation request on numerous occasions, summarily and without adequate explanation. The Complaint further alleges that West-Ex, which acts as a management company for numerous other properties in Westchester County, engaged in a pattern and practice of discriminatory conduct by maintaining a stated policy of not considering requests for reasonable accommodations by applicants like the Complainant. Following Defendants’ unlawful denial of the Complainant’s application for housing, the Complainant was forced to continue living in a boarding house with abysmal conditions, grew increasingly depressed, and suffered another heart attack.
* * *
Under the terms of the Settlement Agreement, filed yesterday with an order resolving the case entered by U.S. District Judge Nelson S. Román, West-Ex and 505 Central Ave. must:
- Pay a total of $125,000, including compensatory damages and attorney’s fees to the Complainant and civil penalties to the United States;
- Adopt reasonable accommodation policies and application forms approved by the United States, which must be included with all future applications for housing handed out to prospective buyers; and
- Provide annual training regarding the Fair Housing Act and reasonable accommodation policies to all current and future employees and agents.
In addition, 505 Central Ave. must only employ property management companies with adequate reasonable accommodation policies in place, and West-Ex may not take any action as property manager for any other property that violates its newly adopted reasonable accommodation policy.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney Stephen Cha-Kim is in charge of the case.
Acting U.S. Attorney Announces Filing of Motion to Dismiss Pending Charges in United States V. Javier Martin-Artajo and Julien GroutRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the Office has filed a proposed order to dismiss the outstanding charges against JAVIER MARTIN-ARTAJO and JULIEN GROUT, two former derivatives traders at JPMorgan Chase & Company (“JPMorgan”). MARTIN-ARTAJO and GROUT were indicted on September 16, 2013, for their alleged participation in a conspiracy to hide losses in a credit derivatives trading portfolio at JPMorgan. MARTIN-ARTAJO, a Spanish citizen, and GROUT, a French citizen, have not appeared on these criminal charges. On April 23, 2015, a court in Spain rejected the Government’s request to extradite MARTIN-ARTAJO, and a prior determination had been made that attempts to extradite GROUT from France would have been futile. The motion to dismiss is subject to the approval of United States District Judge Lorna G. Schofield.
As set forth in the proposed order, the Government sought charges in this matter based in part on the Government’s anticipated ability to call as a trial witness Bruno Iksil, a former colleague of the two defendants at JPMorgan. Based on a review of recent statements and writings made by Iksil, however, the Government no longer believes that it can rely on the testimony of Iksil in prosecuting this case, even if the defendants appeared. Based on these developments, among other factors, the Government has decided not to keep these charges pending, but rather to seek their dismissal at this time.
Arizona Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Oscar David Zuniga-Chavez , A/K/A Oscar David Chavez-Zuniga age 37, of Tolleson, Arizona, was sentenced today to 121 months in federal prison followed by three years of supervised release and was ordered to pay a $2,400.00 fine on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November 2017, during the course of an investigation into the criminal activities related to the distribution of methamphetamine, the Drug Enforcement Administration, (DEA) identified Oscar David Zuniga-Chavez as a source of supply of methamphetamine. During the investigation, agents were able to seek and obtain a federal search warrant for Zuniga's residence in Peoria, Arizona as well as a federal arrest warrant for Zuniga. On December 8, 2016, agents with the DEA Fayetteville Resident Office traveled to Arizona, where they assisted DEA agents and task force officers from Phoenix, Arizona in the execution of the search warrant and arrest warrant. Agents made contact with the Zuniga at the residence, and advised him of his Miranda rights. During the interview with Zuniga, he waived his Miranda rights and admitted to sending multiple pounds of methamphetamine to the Western District of Arkansas for distribution.
Zuniga was indicted by a federal grand jury in January, 2017 and pleaded guilty in March, 2017.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kim Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
20 July 2017
“YGz” Gang Member Sentenced to 33 Years in Prison for Stomping Murder of 16-Year-Old and Other CrimesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM BRACY, a/k/a “Rel,” was sentenced yesterday to a prison term of 396 months for his crimes as a member of the “Young Gunnaz” or “YGz” gang, including the April 16, 2012, murder of Moises Lora, a/k/a “Noah,” 16, during which BRACY and several other YGz gang members stomped Lora to death in a courtyard in the Melrose housing projects in the Bronx. BRACY was sentenced in Manhattan federal court by United States District Judge Valerie E. Caproni, before whom he previously pled guilty. For purposes of the sentencing, Judge Caproni found, following an evidentiary hearing held yesterday, that BRACY was one of the YGz members who kicked Lora while he lay on the pavement during the attack that resulted in Lora’s death.
Acting Manhattan U.S. Attorney Joon H. Kim said: “William Bracy and his fellow gang members stomped 90-pound, 16-year-old Moises Lora to death a few yards from a playground in a South Bronx housing complex. While we cannot bring Moises Lora back, we hope that his family finds justice, and a measure of solace, in today’s sentence. Together with our law enforcement partners, we will continue to aggressively prosecute all those who inflict this deadly violence on our communities.”
According to the charging and other documents filed in the case, as well as the evidence presented at BRACY’s presentencing hearing and statements made during BRACY’s guilty plea, sentencing proceedings, and other court proceedings in this case:
BRACY was a member of the Bronx-based street gang known as the YGz. From at least 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committing acts of violence, including the murder of rival gang members, rival drug traffickers, and innocent bystanders. As part of his involvement in the YGz gang, BRACY participated in numerous acts of violence, as well as crack cocaine distribution, in the South Bronx.
For example, as part of his involvement in the YGz gang, BRACY and several other YGz gang members murdered Moises Lora, a member of a rival gang, on April 16, 2012, in the South Bronx. On the date of the murder, a group of YGz members, including BRACY, got drunk, and began arguing among themselves about who had done the most violence for the YGz. This group of YGz members went to the territory of a rival gang in the Melrose housing projects to settle their dispute. Upon arriving at the Melrose projects, BRACY and other members of the YGz saw Lora and attacked him. During the attack, Lora’s skull was fractured in several places. BRACY and the group left Lora to die. Following the stomping, BRACY and several of his confederates bragged to fellow YGz members about what they had done.
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BRACY, 23, of the Bronx, is the fourth defendant to be sentenced this year by Judge Caproni for participation in a YGz-related murder. Judge Caproni sentenced BRACY’s co-defendant Anthony Scott, a/k/a “Tyson,” to 23 years in prison primarily for Scott’s role in shooting and killing Darrel Ledgister on June 27, 2009, in the South Bronx during an attempted robbery. Judge Caproni sentenced BRACY’s co-defendant Paul Gilbert, a/k/a “2Fly Tay,” to more than 30 years in prison primarily for Gilbert’s role in the murder of Cody Dubose on September 27, 2014, near the Taft Houses in Manhattan during an attempted robbery. Finally, Judge Caproni sentenced BRACY’s co-defendant Terrance Williams, a/k/a “TA,” to more than 33 years in prison primarily for Williams’s role in the murder of Curtis Smith on July 3, 2011, near the Jackson housing projects in the South Bronx.
Mr. Kim praised the outstanding work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by this Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Gina M. Castellano, and Andrew C. Adams are in charge of the prosecution.
Williamsburg Attorney Sentenced for Timeshare FraudRead the Press Release
NEWPORT NEWS, Va. – A Williamsburg lawyer guilty of her role in a conspiracy to fraudulently transfer of hundreds of timeshare units was sentenced today to 50 months in prison.
Deborah Wagner, 45, pleaded guilty on September 9. According to court documents, Wagner conspired with others in a wide-ranging scheme to engage in the fraudulent transfer of timeshare units into the names of stolen identities and straw owners. Over the several years that the scheme operated, Wagner and her conspirators caused over $2 million in losses to resorts and owner associations while earning hundreds of thousands from individuals who sought a legitimate means to divest their timeshare ownership, but were persuaded to pay hundreds or thousands of dollars to transfer companies. These transfer companies, with Wagner’s involvement, then transferred these time share units into unqualified straw owners with no ability or intention to make the required maintenance fee payments.
Wagner worked with two Williamsburg based businesses - GoodBye Timeshare, LLC, and Exotic Equity Transfers, LLC, in conducting the transfers. The owners of these businesses, Brendan Hawkins and Keith Kosco, were prosecuted separately and received sentences of 46 months and 74 months in prison, respectively, in 2015. These other businesses paid Wagner’s law firm hundreds of thousands of dollars in fees for conducting the fraudulent transfers. Additionally, Wagner created a nominee company for the purpose of recruiting additional straw owners to use in the scheme.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brain J. Samuels and Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-28.
Wholesale Jewelry Distributor Charged in Multi-Million Dollar Fraud SchemeRead the Press Release
PROVIDENCE – Gerald Kent, 51, of Groton, CT, owner and operator of Kent Jewelry in Johnston, RI., made an initial appearance in U.S. District Court in Providence today and was ordered detained in federal custody, charged by way of a criminal complaint with wire fraud and aggravated identity theft.
It is alleged in court documents that Kent, through his company, which primarily sells jewelry on the internet using websites such as Groupon.com and Zulily.com, orchestrated a long running, multi-million dollar fraud scheme that defrauded a debtor finance company of more than $3.6 million dollars.
The charges are announced by Acting United States Attorney Stephen G. Dambruch; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Division.
According to an affidavit in support of the criminal complaint, it is alleged that Kent submitted fraudulent invoices to a factoring (debtor finance) company based in Chicago, Ill., mostly from Groupon and Zulily, which resulted in payments to Kent of nearly $5 million dollars.
According to the affidavit, it is alleged that to execute the fraud scheme, Kent created hundreds of fraudulent invoices which were submitted to the factoring company for which he received payment; created and used a fraudulent clone of Groupon, Inc.’s website; enlisted coconspirators to pose as Groupon employees; and opened bank accounts in the names of Groupon and Zulily, Inc., in order to deceive the debtor finance company into believing it was receiving payments from these companies.
Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. Factoring companies work with businesses to provide working capital in order to grow their businesses without having to wait for outstanding accounts receivables to be paid.
Kent, who was arrested on Wednesday evening at Foxwoods, appeared today before U.S. District Court Magistrate Judge Patricia A. Sullivan and was ordered detained pending a detention hearing on July 26, 2017.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams.
The matter was investigated by agents from the U.S. Secret Service and the FBI.
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Wheeling man sentenced for illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Jeffrey Moran, 45, of Wheeling, West Virginia, was sentenced today to 37 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Moran, who had previously been convicted of a felony offenses of drug possession in Ohio County and a misdemeanor conviction of domestic violence, is prohibited from possessing a firearm. He admitted to possessing a .22 caliber pistol, a 12-guage shotgun and a 20-guage shotgun in Ohio County, West Virginia in December 2016.
Moran pled guilty to one count of “Unlawful Possession of a Firearm” in May 2017.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia Department of Natural Resources investigated.
U.S. District Judge John Preston Bailey presided.
West Virginia Man Indicted on Fraud Charges Tied to Stolen Gardner Museum PaintingsRead the Press Release
BOSTON – A Beckley, W.Va. man was indicted today by a federal grand jury in Boston in connection with his scheme to sell paintings stolen from the Isabella Stewart Gardner Museum in 1990, on Craigslist.
On May 22, 2017, Todd Andrew Desper, a/k/a “Mordokwan,” 47, was arrested and charged in a criminal complaint. He was released on bond the day after his arrest and remains on pre-trial release. Today, a federal grand jury returned an indictment charging Desper with four counts of wire fraud and attempted wire fraud.
According to court documents, Desper, acting under the pseudonym “Mordokwan,” solicited foreign buyers for both the Storm on the Sea of Galilee and Vermeer’s The Concert on Craigslist in a number of foreign cities including Venice and London. Desper directed interested buyers to create an encrypted email account to communicate with him. Authorities were notified of the foreign Craigslist notices by individuals seeking to assist in the recovery of the artwork, as well as those seeking the multi-million dollar reward offered by the Museum. At the time of the crime, the Museum was offering a $5 million reward. The Museum has since increased that reward to $10 million.
At the direction of federal authorities, the security director for the Gardner Museum engaged in encrypted communications with Desper in an attempt to determine whether Desper had access to the stolen masterpieces. Desper allegedly instructed the security director to send a cashier’s check for $5 million to a location in West Virginia and that Storm on the Sea of Galilee would then be sent in return, concealed behind another painting. It is alleged that the investigation ultimately revealed that Desper had no access to, nor information about, the stolen paintings, but was instead engaged in a multi-million dollar fraud scheme targeting foreign art buyers.
On March 18, 1990, 13 pieces of artwork were stolen from The Isabella Stewart Gardner museum in the early morning hours. According to security guards, two white males dressed in Boston Police uniforms gained entrance to the Gardner Museum by explaining that they were responding to a report of a disturbance within the museum compound. Upon entry, the thieves subdued and secured the guards and went on to commit the largest art theft in history, taking 13 works of art including Rembrandt’s Storm on the Sea of Galilee and Vermeer’s The Concert. The combined value of the art stolen during the Gardner theft is estimated at $500 million, although several of the works are considered priceless within the art community.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was provided the Isabella Stewart Gardner Museum, the U.S. Attorney’s Office for the Southern District of West Virginia, the FBI Pittsburgh Field Division, and the Beckley Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. McNeil of the U.S. Attorney’s Office Criminal Division.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Virginia Woman Sentenced to Eight Years in Federal Prison for Sex Trafficking a 16 Year Old GirlRead the Press Release
July 20, 2017
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Heather Wagoner, age 31, of Buchanan, Virginia was sentenced to eight years in prison, followed by 10 years of supervised release by U.S. District Judge Ellen L. Hollander. Wagoner pleaded guilty to a sex trafficking conspiracy involving a 16 year old girl.
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 Edward G. Hargis of the Frederick City Police Department.
According to court documents, Wagoner and a co-conspirator conspired to engage in sex trafficking of a minor who was 16 years old at the time. From October 15, 2014 through December 19, 2014, Wagoner and her co-conspirator used the internet to solicit individuals for prostitution in Maryland. Wagoner instructed the victim to engage in sexual acts and provided condoms.
For two weeks in December 2014, the victim resided with Wagoner at various hotels in West Virginia and Maryland. Wagoner received calls from customers inquiring about the victim, and then relayed the information to her co-conspirator who facilitated the victim’s “date” with the customers. Wagoner and the victim would split the proceeds from the dates, and Wagoner would use some of her proceeds to pay her co-conspirator for driving the victim.
On December 19, 2014, detectives, acting in an undercover capacity, contacted the phone number provided on the website for the victim and spoke with Wagoner. The detectives arranged a meeting at a hotel in Frederick, Maryland, where investigators subsequently identified the victim as a minor and arrested the co-conspirator.
On the same day, investigators obtained a search warrant for the co-conspirator’s phone, which indicated numerous communications between the co-conspirator and Wagoner regarding sex trafficking of the victim. After police seized the co-conspirator’s phone, Wagoner continued to text the co-conspirator regarding the conspiracy to sex traffic the victim. Investigators arrested Wagoner on July 1, 2016.
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 Frederick City Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who worked on the case, and Assistant U.S. Attorney Zachary A. Myers who prosecuted the case.