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21 July 2017
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.
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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.
Ukrainian “Casher” Sentenced for Role in Worldpay Hacking SchemeRead the Press Release
ATLANTA- Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R, has been sentenced to 46 months in federal prison for conspiracy to commit bank fraud for his role as a “casher” (one who withdraws cash using stolen bank account information) in the 2008 hack of RBS WorldPay.
“The 2008 hack of RBS WorldPay was one of the world’s most sophisticated hacking and cashing schemes,” said U. S. Attorney John Horn. “The team of hackers not only stole financial data from an American payment processor’s private servers, they were able to work in concert with a team of cashers stationed around the world. The cybercriminals stole over $9 million dollars in 12 hours from 2100 ATMs worldwide.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “Cyber crime and computer intrusions are no longer executed by lone individuals. Instead, they rely upon a complex online and real world ecosystem of criminal goods and services for hire, such as the cashing service operated by Mr. Levitskyy. His cashing service was a key component in an organized network of criminal services, which was leveraged to withdraw over $9 million dollars from RBS WorldPay. Outstanding levels of global cooperation among US and international law enforcement culminated in the arrest and sentencing of Mr. Levitskyy, which removed a key criminal service from the cyber criminal underground, thereby reducing the ability for cyber criminals to monetize cyber attacks.”
“This case demonstrates the Secret Service is committed to protecting our nation’s critical financial infrastructure and payment systems,” said Special Agent in Charge, Kenneth Cronin, United States Secret Service, Atlanta Field Office. “These types of cyber criminals use sophisticated hacking techniques to compromise computer systems and then utilize a global network of co-conspirators to withdraw millions of dollars from ATM machines from around the world. Our success in this case and other network intrusion investigations is a result of our close work with our domestic and international law enforcement partners.”
According to U.S. Attorney Horn, the charges and other information presented in court: During November 2008, a team of hackers, including Estonian national Sergei Tšurikov and others, obtained unauthorized access into the computer network of RBS WorldPay, what was then the U.S. payment processing division of the Royal Bank of Scotland Group PLC, located in Atlanta, Georgia. The group used sophisticated hacking techniques to compromise the data encryption that was used by RBS WorldPay to protect customer data on payroll debit cards. Payroll debit cards are used by various companies to pay their employees. By using a payroll debit card, employees are able to withdraw their regular salaries from an ATM.
Once the encryption on the card processing system was compromised, the hacking ring raised the account limits on compromised accounts to amounts exceeding $1,000,000. The hackers then provided a network of cashers with 44 counterfeit payroll debit cards, which were used to withdraw more than $9 million from over 2,100 ATMs in at least 280 cities worldwide, including cities in the United States, Russia, Ukraine, Estonia, Italy, Hong Kong, Japan, and Canada. The $9 million loss occurred within a span of less than 12 hours. In addition, the hacking crew stole files containing 45.5 million pre-paid payroll and gift card numbers.
The hackers then sought to destroy data stored on the card processing network in order to conceal their hacking activity. The cashers were allowed to keep 30 to 50 percent of the stolen funds, but transmitted the bulk of those funds back to Tšurikov and his co-defendants. Upon discovering the unauthorized activity, RBS WorldPay immediately reported the breach, and has substantially assisted in the investigation.
Throughout the duration of the cash out, Tšurikov and another hacker monitored the fraudulent ATM withdrawals in real-time from within the computer systems of RBS WorldPay.
Evgeny Tarasovich Levitskyy, a/k/a Vinchenco, a/k/a Vinch, a/k/a M.U.R.D.E.R.E.R., 31, of Nikolaev, Ukraine, is alleged to have been responsible for cashing out nearly $500,000 associated with a single hacked debit card number. He was sentenced by U.S. District Court Judge Steven C. Jones to 46 months in prison and ordered to pay restitution of $499,518.51.
To date, the U.S. Attorney’s Office for the Northern District of Georgia has charged 14 individuals involved in the hack and cash out, including Russian nationals Viktor Pleshchuk, Evgeniy Anikin, and Roman Seleznev; Estonian nationals Sergei Tsurikov, Igor Grudijev, Ronald Tsoi, Eveilyn Tsoi, and Mikhail Jevgenov; Moldovan national Oleg Covelin; Ukrainian nationals Vladimir Valeyrich Tailar and Evgeny Levitskyy; Nigerian national Ezenwa Chukukere; American national Sonya Martin; and Vladislav Horohorin, who is citizen of Russia, Israel, and Ukraine.
This case was investigated by the Federal Bureau of Investigation and United States Secret Service.
Assistant U.S. Attorney Kamal Ghali prosecuted the case. Assistance was provided by the Justice Department’s Office of International Affairs, the Republic of Slovenia’s Ministry of Interior Criminal Police Directorate (“MNZ”), the Czech Republic’s Policie Ceske Republiky (“PCR”), and the Criminal Division’s Computer Crime and Intellectual Property Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Two More Plead Guilty in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – A Texas man and an Indian national have each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas made the announcement along with Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security - Office of Inspector General (DHS-OIG).
Nilesh Pandya, 54, of Stafford, and Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, each pleaded guilty to one count of conspiracy to commit fraud and money laundering. The pleas were entered before U.S. District Judge David Hittner of the Southern District of Texas. Barot agreed to deportation following his sentence. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Barot, Pandya and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States. Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates. , and he and his conspirators used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions. Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.
Based on admissions in Pandya’s guilty plea, beginning in or around March 2014, he served as a runner liquidating victim scam funds within the Southern District of Texas. At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.
To date, Barot, Pandya, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including this week’s pleas, a total of 13 defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty on various dates between April and July 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case along with Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Two Linn County Men Charged with Theft of Forty-Eight FirearmsRead the Press Release
John Gillespie, age 18, from Cedar Rapids, Iowa, and Jeremy Reynolds, age 18, from Hiawatha, Iowa, have been charged with one count each of theft of firearms from a licensed firearms dealer in United States District Court in Cedar Rapids. Reynolds is charged in an Indictment filed on July 18, 2017. Gillespie is charged in an Information filed on July 14, 2017. Both Reynolds and Gillespie were previously charged in complaints and were previously detained by the court.
If convicted, both defendants face not more than 10 years’ imprisonment without the possibility of parole, a $250,000 fine, $100 in special assessments, and not more than 3 years of supervised release following any imprisonment.
Reynolds appeared on July 19, 2017, in federal court in Cedar Rapids for his arraignment. Reynolds’ next appearance for trial is set for September 18, 2017.
Gillespie is scheduled to appear in federal court in Cedar Rapids for an arraignment on August 3, 2017.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hiawatha Police Department, the Cedar Rapids Police Department, and the Loves Park Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
Gillespie’s case file number is 17-Cr-00050 and Reynolds’ case file number is 17-Cr-00051
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Two Indicted After Delivering 15 Pounds of Methamphetamine in Kern CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Oscar Ivan Salazar-Avalos (Salazar), 27, a native and citizen of Mexico, and Jose Manuel Sotelo-Mendoza, aka Jose Manuel Mendoza-Sotelo (Sotelo), 25, of Modesto, charging them with conspiring to distribute and possess with intent to distribute and possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Salazar and Sotelo delivered 15 pounds of methamphetamine to an undercover officer in Delano, California after Salazar negotiated for the delivery of the drug for $3,400 per pound.
This case is the product of an investigation by the High Intensity Drug Area Fresno Methamphetamine Task Force, consisting the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the California Department of Justice’s Bureau of Investigation, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted, the defendants face a minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Twenty People Convicted and Sentenced in Long Term Methamphetamine Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – The last of twenty defendants have been sentenced for their involvement in a large-scale, methamphetamine trafficking organization operating primarily within Taylor County. During the fall of 2014, an Organized Crime Drug Enforcement Task Force began investigating the distribution of methamphetamine—commonly referred to as “ice”—within Taylor County and the surrounding area. The defendants were charged in a series of indictments returned over the course of 2016. In total, twenty defendants were convicted and sentenced to conspiracy to distribute and possess with intent to distribute varying amounts of methamphetamine. The investigation also involved numerous undercover controlled purchases by law enforcement made during the trafficking conspiracy. The convictions and sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The defendants are:
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Joshua Oneal Faulk, 26, Zephyrhills, Florida, 240 months in prison;
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Robby Lynn Wilson, 36, Perry, Florida, 180 months in prison;
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Camelia Faulk, 49, Zephyrhills, Florida, 144 months in prison (84 months from the Northern District consecutive to 60 months from the Middle District of Florida);
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Fairley Trey Pitts, 31, Perry, Florida, 108 months in prison;
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Cody Aaron Jacobs, 26, Perry, Florida, 108 months in prison;
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Darrius Demond Beasley, 26, Perry, Florida, 101 months in prison;
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Kendall Lamar Smith, 29, Perry, Florida, 66 months in prison;
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Micah Todd Archer, 34, Perry, Florida, 60 months in prison;
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George Kevin Cook, 40, Perry, Florida, 60 months in prison;
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Craig Michael Hathcock, 47, Tallahassee, Florida, 60 months in prison;
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Bryan Joseph Bowden, 29, Perry, Florida, 48 months in prison;
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Dewey Randall Bright, Jr., 39, Perry, Florida, 48 months in prison;
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Nicholas Wayne Pharr, 35, Perry, Florida, 48 months in prison;
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Corey James Rucker, 22, Perry, Florida, 48 months in prison consecutive to 27 months in state prison;
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Christopher Ryan Sessions, 35, Perry, Florida, 48 months in prison;
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James Oglesby Stephens, 53, Perry, Florida, 39 months in prison;
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Lindsay Anne Overstreet, 33, Perry, Florida, 24 months in prison;
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Shanna Nicole Leigh Pittman, 23, Perry, Florida, 24 months in prison;
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Michael Jared Borklund, 30, Perry, Florida, 12 months and 1 day in prison; and
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Calista Bryce Hedricks, 36, Perry, Florida, 1 day in prison.
This case resulted from an investigation by the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, Florida Highway Patrol, Leon County Sheriff’s Office, Taylor County Sheriff’s Office, Lafayette County Sheriff’s Office, High Springs Police Department, and with the assistance of the State Attorney’s Offices in Taylor, Lafayette, and Alachua counties. Assistant United States Attorney Christopher J. Thielemann prosecuted the cases.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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Twelve Indicted on Federal Drug Trafficking Charges in West TennesseeRead the Press Release
Jackson, TN - Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today the unsealing of an indictment charging 12 suspects with federal drug trafficking violations.
The suspects were arrested earlier today during a round-up conducted by members of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Tennessee Bureau of Investigation (TBI), the Tennessee Highway Patrol (THP), the 24th Judicial District Drug Task Force, the Jackson-Madison County Metro Narcotics Unit, both the Jackson and Madison County SWAT teams, and the McNairy County Drug Task Force. The twelve defendants named in the indictment are crystal methamphetamine traffickers.
The indictment was returned by a federal grand jury in Jackson on July 17, 2017, but remained sealed until today’s arrests. The indictment contains counts alleging violations of the Controlled Substances Act, counts alleging illegal possession of firearms after being convicted of a felony, as well as counts for possession of firearms in furtherance of a drug trafficking crime.
The suspects arrested during the operation are:
• Kevin Smith, 44, Saltillo, TN;
• Phillip Steely, 51, Jackson, TN;
• Deena Orr, 38, Huntingdon, TN;
• Steven Jones, 41, Reagan, TN;
• Heather Walker, 36, Parsons, TN;
• Dina Evans, 54, Decaturville, TN;
• Doug Evans, 52, Bath Springs, TN;
• Rhonda Carter, 48, Iuka, MS;
• Ashley Sweat, 39, Adamsville, TN (already in custody on state charges);
• David Mathis, 50, Lexington, TN;
• Jennifer Holley-Melton, 42, Lutts, TN
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "Along with our federal, state and local partners, the U.S. Attorney’s Office will continue to use every lawful tool we have to take violent offenders and drug traffickers off our streets. We will bring criminals to justice. That’s our commitment to the citizens in the Western District."
Count 1 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 2 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with aiding and abetting each other to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 3 and 4 charges Kevin Smith with knowingly distributing actual methamphetamine and knowingly distributing over 50 grams of actual methamphetamine.
Count 5 charges Kevin Smith, Deena Orr and Phillip Steely with knowingly possessing with intent to distribute 5 or more grams of actual methamphetamine.
Count 6 charges Joshua Tucker with knowingly possessing with intent to distribute 50 grams or more of actual methamphetamine.
Counts 7 and 8 charge Joshua Tucker with being a felon in possession of an AR-15 style rifle and a 9 mm pistol.
Counts 9 and 10 charge Joshua Tucker with possessing two firearms in furtherance of a drug trafficking offense.
During the course of the over 9-month investigation, law enforcement officials have seized illicit narcotics, 5 firearms, 5 vehicles and $7,600 dollars in cash.
The charges in the indictment stem from the illegal activity of participating in a conspiracy to distribute and to possess with the intent to distribute ice (methamphetamine with more than 80% purity).
"This case is a great example of local, state and federal agencies working together on multi-jurisdictional investigations, targeting violent drug organizations preying on the citizens of West Tennessee. The subjects of this investigation were responsible for the distribution of large quantities of crystal methamphetamine. The dismantlement of this
organization should send a clear message that law enforcement and federal prosecutors are here to attack these threats with everything at our disposal," said Jim Catalano DEA Resident Agent in Charge.
The case was investigated by the Drug Enforcement Administration, along with the Tennessee Bureau of Investigation, the 24th Judicial District Drug Task Force, and Jackson-Madison County Metro Narcotics. Assistant United States Attorneys Taylor Eskridge and Beth Boswell are prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Three men indicted for illegally reentering the U.S.Read the Press Release
Three men were indicted for illegally reentering the United States, said Acting U.S. Attorney David A. Sierleja.
Jacinto Guzaro-Brito, 31, was last deported to Guatemala on December 4, 2013. He was recently found in Tuscarawas County, according to the indictment.
Fredy Said Maradiaga-Zambrano, 28, was last deported to Honduras on May 30, 2014. He was recently found in Ashland County, according to the indictment.
Juan Carlos Alvarez-Jocobo, aka Juan Carlos Alvarez, aka Juan C. Alvarez, 30, was last deported to Mexico on October 19, 2012. He was recently found in Mahoning County.
Assistant U.S. Attorney Karrie D. Howard is prosecuting the Brito and Zambrano cases following an investigation by Immigration and Customs Enforcement, Department of Homeland Security and the New Philadelphia Police Department (Brito) and the Ashland Police Department (Zambrano).
Assistant U.S. Attorney Brad J. Beeson is prosecuting the Jocobo case following an investigation by the Campbell Police Department and Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge 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.
Third Defendant, Mortgage Broker, Pleads Guilty in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy Jr. announced today that Gregory Gibbons, 51, of Pleasantville, N.Y., pleaded guilty to conspiracy to commit wire fraud affecting a financial institution, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Kathleen A. Lynch and Elizabeth Moellering, who are handling the case, stated that between June 2008 and February 2009, the defendant conspired with others, including Alagi Samba, a realtor, and Daniel Badu, to devise a scheme to obtain eight loans for unqualified borrowers for homes in the Bronx, NY. As part of the scheme, Gibbons acted as the mortgage broker and altered income and asset documents of the borrowers before they were sent to financial institutions.
For instance, Gibbons altered and created documents to make it appear that defendant Badu qualified for a mortgage on a property at 814 Faile Street in the Bronx. The defendant indicated that Badu was a research ophthalmologist and earned a specific income when in fact, Badu was not a research ophthalmologist nor did he receive the income stated on a loan application. Gibbons knew that these false loan documents were submitted to The Funding Source, a mortgage bank, in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved. The Funding Source then sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and his co-conspirators arranged for additional fraudulent loans to be approved, including another loan for Badu, and caused wire communications to be transmitted in interstate commerce for those loans. These fraudulent transactions caused losses of approximately $4,800,007 affecting M&T Bank and other financial institutions including SunTrust Bank, JPMorgan Chase Bank, and Citibank.
Defendants Badu and Samba have also been convicted and are awaiting sentencing. Charges are pending against co-defendants Julio Rodriguez, Laurence Savedoff, and Tina Brown. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, Boston Division, the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing for defendant Gibbons is scheduled for October 19, 2017, at 2:00 p.m. before Judge Geraci.
Texas Woman Charged in Virtual Kidnapping SchemeRead the Press Release
HOUSTON – A 34-year-old Houston woman has been taken into custody for her alleged involvement in a virtual kidnapping for ransom scheme that stretched to three states, announced Acting U.S. Attorney Abe Martinez of the Southern District of Texas.
A federal grand jury in Houston returned a 10-count indictment against Yanette Rodriguez Acosta aka Yanette Patino under seal on Tuesday, July 18, 2017. Authorities took her into custody today, at which time the indictment was unsealed. She is expected to make her initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
“These types of cases are tragic,” said Martinez. “It’s not the amount of money involved; it’s the fact that these people are tricked into believing their loved ones are in danger and the horror and helplessness they feel as they scramble to secure what they think is their release. It is important for people to know about these scams and to be cautious and mindful when getting these types of calls.”
According to the indictment, Acosta’s co-conspirators used Mexican telephone numbers and called numerous victims throughout the United States in Texas, California and Idaho in an attempt to extort money. They were allegedly told their child had been kidnapped and that they must pay money to secure their safe release. This scheme is commonly referred to as a “virtual kidnapping for ransom,” according to the indictment.
Victims were typically instructed to wire money to individuals in Mexico. However, two of those victims were directed to make money drops at specified locations in the Houston area on Sept. 17, and Sept. 30, 2015, respectively, according to the charges. Both victims were allegedly told their daughters had been kidnapped because they had witnessed a crime and that their fingers would be cut off if the parents did not comply with demands.
Acosta allegedly picked up the ransom payments following the victims’ money drops. The indictment alleges that after taking her portion of the ransom money, Acosta wired the remainder to her co-conspirators in Mexico. She also allegedly recruited others to send money to Mexico.
The two victims paid a total of approximately $28,000, according to the indictment.
Acosta is charged with one count of conspiracy to commit wire fraud, eight counts of wire fraud and one count of conspiracy to launder money. Each charge carries a possible maximum sentence of 20 years in federal prison.
The Los Angeles, California, Field Offices of the FBI and IRS - Criminal Investigations conducted the investigation along with the police departments in Los Angeles and Beverly Hills, California, and the Montgomery County, Texas, Sheriff’s Office with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles.
Assistant U.S. Attorney Kate Suh is prosecuting the case. The Money Laundering and Asset Recovery Section of the Department of Justice also provided valuable assistance during the course of the investigation.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Texas Man Wanted by Federal Authorities Charged with Credit Card FraudRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return on an indictment charging Jose Carlos Terra Izquierdo (23, Amarillo, TX) with credit card fraud. If convicted, he faces an enhanced penalty of up to 20 years in federal prison and forfeiture of his computer media.
According to the indictment and information presented in court, Izquierdo was in possession of multiple credit card account numbers from Wells Fargo, JP Morgan Chase, Capital One, Citibank, and City Credit Union. He was previously convicted of credit card fraud in 2016 in the District of Nebraska and sentenced to federal prison. As part of his sentence, he was required to turn himself into law enforcement on March 17, 2017, to begin serving his sentence. He was also limited in his ability to travel. In violation of these conditions, Izquierdo traveled to Florida and engaged in credit card fraud. Federal authorities in Nebraska subsequently issued a warrant for his arrest. He faces the enhanced penalty as a result of his prior fraud conviction.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Florida Highway Patrol and the U.S. Secret Service - Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Tampa Resident Indicted for Assaults on Delta Airlines Flight to ChinaRead the Press Release
A federal grand jury in Seattle returned a five count indictment yesterday charging 23-year-old JOSEPH DANIEL HUDEK, IV for the July 6, 2017, incident aboard a Delta Airlines flight to Beijing, China, announced U.S. Attorney Annette L. Hayes. HUDEK remains detained at the Federal Detention Center at SeaTac, and will be arraigned on Thursday, July 27, 2017, at 9:00 AM.
The indictment charges HUDEK with Interference with Flight Crew and Attendants and four counts of Assault within the Special Aircraft Jurisdiction of the United States. Some of the assault counts carry higher penalties because of the use of a dangerous weapon or the infliction of serious bodily harm. One passenger and one flight attendant had to be taken from the plane for medical attention immediately after the assaults.
According to records filed in the case, HUDEK was seated in first class on the Delta flight. The aircraft had just passed over Vancouver Island and was over the Pacific Ocean when HUDEK came out of the first class bathroom and in an agitated state attempted to open the exit door of the aircraft. Two flight attendants attempted to stop HUDEK and he threw one to the floor and punched the other. When a passenger attempted to assist the flight attendants, HUDEK hit him over the head with a wine bottle. Ultimately, multiple passengers were required to restrain HUDEK, and one had to re-lock the exit door as the aircraft returned to Seattle.
Interference with a flight crew is punishable by up to 20 years in prison. Three of the assault counts carry statutory maximum penalties of up to ten years in prison. One of the assault counts is a misdemeanor with a maximum penalty of one year in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Staten Island Man Indicted for Million-Dollar Real Estate Investment Scam Targeting Elderly VictimsRead the Press Release
A nine-count indictment was unsealed this morning in federal court in Brooklyn, New York, charging the defendant Yevgeniy Braziler with securities fraud, mail fraud, and wire fraud for orchestrating a scheme to target elderly investors by selling them partnerships in three fraudulent real estate companies. Braziler was arrested today and is scheduled to be arraigned this afternoon before United States Magistrate Judge Steven L. Tiscione.
The indictment was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the United States Postal Inspection Service.
“As alleged, the defendant targeted the elderly with lies and deceit. We will bring the full force of the law to bear on those, such as the defendant, who take advantage of our vulnerable neighbors,” stated Acting United States Attorney Rohde.
“Mr. Braziler allegedly fleeced elderly investors when he devised a scheme to separate them from their hard earned money and secure retirements. Postal Inspectors will never tolerate the financial abuse of anyone regardless of their age,” stated Inspector in Charge Philip R. Bartlett.
According to the indictment, Braziler and his associates promised potential investors, many of whom were elderly, that the companies would purchase, renovate, rent and re-sell residential real estate in the Buffalo and Niagara Falls, New York areas. In response to Braziler’s solicitations, investors sent over $1.8 million to Braziler. Instead of using the money for the purposes he promised, however, Braziler stole the great majority of the funds. For example, investors sent one of Braziler’s investment vehicles at least $978,000, but Braziler purchased only one property for at most $12,000, and took most of the remaining funds for himself and his associates. The investors lost nearly all of their money.
The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Matthew S. Amatruda is in charge of the prosecution.
The Defendant:
YEVGENIY BRAZILER
Age: 40
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 17-CR-385 (AMD)
South Florida Man Charged with Credit Card Fraud and Identity Theft Involving Personal Information from VeteransRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Dwayne Thomas (21, Miami) with one count of credit card fraud and nine counts of identity theft. If convicted, he faces up to 10 years in federal prison for the credit card fraud count and up to 5 years’ imprisonment on each of the identity theft counts.
According to the indictment and information presented in court, Thomas was in possession of multiple credit card account numbers from Bank of America, Wells Fargo, and USAA. He also possessed the Social Security numbers of multiple former members of the military who were receiving healthcare through the Department of Veterans Affairs.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Department of Veterans Affairs – Office of Inspector General Criminal Investigation Division, the United States Secret Service -Jacksonville Field Office, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Six Defendants Charged in Expanded Securities Fraud ConspiracyRead the Press Release
HOUSTON – Six individuals have been charged in a second superseding indictment for their role in a multi-million dollar securities fraud “pump-and-dump” conspiracy, announced Acting U.S. Attorney Abe Martinez.
The new indictment expands on the original charges which alleged a $6 million scheme involving one stock. The second superseding indictment alleges 12 stocks and more than $25 million.
A federal grand jury returned the original indictment Sept. 15, 2016, charging Andrew Ian Farmer, 38, and Thomas Galen Massey, 46, both of Houston, for their roles in a securities fraud scheme involving the stock of Chimera Energy Corp. A federal grand jury returned a superseding indictment April 26, 2017, charging five additional individuals for their roles in the Chimera fraud - Eddie Douglas Austin Jr., 66, Carolyn Price Austin, 62, and Charles Earl Grob Jr., 37, all of Houston; John David Brotherton, 57, of League City; and Scott Russell Sieck, 58, of Winter Park, Florida.
Today, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for their role in a broader securities fraud conspiracy involving the stock of at least 12 different companies from 2011 to 2017, including Chimera.
In a typical “pump-and-dump” fraud scheme, the perpetrators engage in fraudulent trading practices in a company’s stock and publish false and misleading information about the company, all in order to fraudulently inflate the price of the stock. The perpetrators then sell the stock to unwitting investors at the inflated prices.
According to the charges in this case, the conspiracy involved a scheme to defraud investors in numerous companies by engaging in fraudulent trading practices, evading Securities and Exchange Commission (SEC) reporting requirements and publishing false and misleading information through press releases and advertisements about the companies. As a result of the scheme, the defendants allegedly defrauded investors that purchased shares of these companies out of more than $25 million.
Conspiracy to commit wire fraud and wire fraud each carry a possible term of imprisonment of up to 20 years in federal prison and a possible $250,000 fine.
Massey pleaded guilty to his role on April 18, 2017, and is set for sentencing June 4, 2018. The remaining defendants are presumed innocent unless convicted through due process of law.
The FBI conducted the investigation with the assistance of the SEC and Financial Industry Regulatory Authority. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Shelton Man Sentenced to More Than 15 Years in Prison for Robbing 4 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT TAYLOR, 47, formerly of Shelton, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 188 months of imprisonment, followed by three years of supervised release, for robbing four branches of Chase Bank last year.
According to court documents and statements made in court, TAYLOR robbed the Chase Bank at 184 Main Street in Westport on June 2, 2016; the Chase Bank at 1561 Boston Post Road in Milford on June 24, 2016; the Chase Bank at 50 Washington Street in Norwalk on July 6, 2016, and the Chase Bank at 1855 Main Street in Stratford on July 13, 2016. During each of the robberies, TAYLOR handed a teller a note demanding cash and told the teller that he had a gun.
TAYLOR stole a total of approximately $23,300 during the first three robberies, and $1,000 during the July 13 robbery. When he was arrested at the Stratford train station shortly after the July 13 robbery, he possessed $998 in cash and 33 folds of heroin.
Judge Bryant ordered TAYLOR to make full restitution.
TAYLOR has been detained since his arrest. On January 30, 2017, he pleaded guilty to one count of bank robbery.
TAYLOR’s criminal history includes a 1999 federal conviction for bank robbery, stemming from his robbery of three Connecticut banks, for which he received a sentence of 37 months of imprisonment. In addition, in 2006, he was convicted in state court of robbing a bank in Milford in August 2005, and was sentenced to 20 years of imprisonment, with 12 years to serve. In February 2016, after his release from prison, he began serving a three-year term of probation.
This investigation was conducted by the Federal Bureau of Investigation and the Westport, Milford, Norwalk and Stratford Police Departments. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial Districts of Ansonia/Milford, Fairfield and Stamford/Norwalk.
Sexual Exploitation of 15-Month-Old Baby Nets Searcy Woman 20 Years in PrisonRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced today that Lacy Brooks, 31, of Searcy, was sentenced to 20 years’ imprisonment for producing live pornographic videos of a 15-month-old baby.
Brooks was charged in a superseding indictment on January 5, 2017, with one count of production of child pornography and one count of distribution of child pornography. On January 10, 2017, on the day trial was to begin, Brooks pleaded guilty to both counts of the superseding indictment. On Thursday, United States District Judge Billy Roy Wilson sentenced Brooks to 20 years’ imprisonment, and 10 years of supervised release.
The charges in the superseding indictment were based on an investigation that began in Tyler, Texas, when FBI agents arrested Brian Casper, who admitted that he requested child pornography from mothers he met on dating websites. A search of Casper’s phone revealed a series of screenshots dated August 25, 2015, which appeared to have been taken while Casper was using the Skype application and chatting with a female using the screen name “Lacy.” The screenshots depicted a baby, naked from the waist down, exposing her genitals. Some of the screenshots showed the baby lying naked on an open diaper underneath the buttocks of the baby. There were also multiple screenshots showing a sex toy being placed on the exposed genitals of the baby.
Further examination of the individual’s phone revealed multiple messages between Casper and Brooks on the KIK messaging application. During the course of the KIK messages, Brooks engaged in sexually explicit conversations with Casper, during which Casper told Brooks that “I love your videos,” and, “I hope that your coochie and her’s are mine. I love you so much.” Brooks responded, “Yes baby we are yours,” followed by a photograph of a baby lying on an open diaper displaying her genitals.
Casper subsequently pleaded guilty to the federal charge of conspiracy to produce child pornography and was sentenced in the Eastern District of Texas to 336 months’ imprisonment.
On September 22, 2015, Brooks was arrested and provided a Mirandized statement. Brooks admitted to meeting Casper online, communicating with him on the KIK application, and using Skype to send the individual live recordings of herself inappropriately touching the baby. Brooks admitted to placing the sex toy against the baby.
“The sexual exploitation of a baby for the gratification of someone Brooks met on the internet is disgusting and violates all sense of human decency,” Harris said. “Protecting children who cannot protect themselves remains a top priority of our office and we will relentlessly prosecute those who violate the trust that children inherently put in them.”
“The FBI is dedicated to investigating any instance where a young child is victimized for the sexual gratification of an adult,” SAC Upchurch said. “We’d like to thank the U.S. Attorney’s office for their continued work on these crimes. We’d also like to thank our FBI partners in the Dallas division, Tyler resident agency, as well as our state and local partners that assisted in the investigation.”
The investigation was conducted by the FBI field office in Little Rock and resident agency in Tyler, Texas, as well as the White County Sheriff’s Office, Arkansas State Police, and the White County Prosecuting Attorney’s office. The case was prosecuted by Assistant United States Attorneys Erin O’Leary and Kristin Bryant.
Seven men from Cuyahoga County indicted for firearms offensesRead the Press Release
Seven men from Cuyahoga County were indicted on federal firearms charges, said Acting U.S. Attorney David Sierleja and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Indicted are: Deonte Tate, 33; Michael Simpson, 38; Rondell Harris, 28; Isaac Hobbs, 34; Michael D. Gaines, 38; Russell G. Jackson, 32, and Andre Hatcher, 24. All the men live in Cleveland but Gaines, who lives in Maple Heights.
“This group of defendants included armed robbers, drug traffickers and a rapist, all of whom continued to carry guns and ammo the way other people carry a lunch box or briefcase,” Sierleja said. “We will keep working to take violent predators off the streets.”
“ATF is committed to combating gun violence throughout our country,” Velinor said. “We will continue to work with our law enforcement partners at the federal, state, and local level to make our communities safer.”
Tate had a .45-caliber pistol and ammunition on April 25, despite having prior felony convictions, including aggravated robbery with a firearm specification and felonious assault, drug trafficking and having weapons under disability, according to the indictment.
Simpson had a .38-caliber revolver on June 15, despite prior felony convictions for robbery, abduction, felonious assault and having weapons under disability, according to the indictment.
Harris had a 9 mm pistol on June 2 despite prior felony convictions for gross sexual imposition, having weapons under disability and possession of a deadly weapon while under detention, according to the indictment.
Hobbs had a .22-caliber long rifle on June 5 despite prior felony convictions including aggravated robbery with a firearms specification, attempted felonious assault and assault on a peace officer, according to the indictment.
Gaines had a 9 mm pistol and ammunition on June 14 despite prior felony convictions for rape, drug trafficking and assault on a peace officer, according to the indictment.
Jackson had a sawed-off shotgun, a .40-caliber pistol and ammunition on June 9 despite prior felony convictions for drug trafficking, according to the indictment.
Hatcher had a 9 mm pistol and ammunition on June 5 despite prior felony convictions for robbery with a firearms specification and felonious assault, according to the indictment.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the police departments of Cleveland, Solon and the Cuyahoga Metropolitan Housing Authority.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Seven Defendants Charged in Two Separate Armed Bank Robbery CasesRead the Press Release
CINCINNATI – A federal grand jury has charged seven defendants in armed bank robbery cases in two separate indictments returned in Cincinnati.
Malcolm Lorenzo Jones, 20, of Cincinnati, remains at large.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Cincinnati Police Chief Eliot K. Isaac, Colerain Police Chief Mark Denney, Green Township Police Chief James Vetter and Springfield Township Police Chief Robert Browder announced the indictments returned this week.
One indictment alleges that Keila D. Spurling, 26, Miguel Chiles, 27, and Sierra L. Leary, 23, all of Cincinnati, were involved in the armed robbery of Main Source Bank on Cheviot Road in Cincinnati on May 26 and Quincy Chiles, 21, also of Cincinnati, joined the trio in the armed robbery of the Wes Banco Bank on Winton Road in Springfield Township on June 6.
The second indictment, which is a superseding indictment, alleges that Nelson Jones, 25, and Hope Tolbert, 20, both of Cincinnati, were involved in the armed bank robbery of North Side Bank and Trust on Gregory Street in Cincinnati on May 13 and Nelson Jones and Malcolm Lorenzo Jones, 20, also of Cincinnati were involved in the armed bank robbery of Key Bank on Springdale Road in Colerain Township on May 22.
U.S. Attorney Glassman commended the investigation of these cases by the FBI and local police departments, as well as Assistant United States Attorney Anthony Springer who is prosecuting these cases.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
If you have information on the whereabouts of Malcolm Lorenzo Jones, please call FBI at 513-421-4310 and/or Crime Stoppers at 513-352-3040.
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