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19 July 2017
Former Hershey Medical Center Research Technologist Pleads Guilty to Making False Statements About Cancer TestsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Floyd Benko, age 62, of Palmyra, Pennsylvania, pleaded guilty today before United States District Court Judge Yvette Kane to false statement charges in connection with his performance of flawed genetic diagnostic tests for 124 cancer patients.
According to United States Attorney Bruce D. Brandler, Benko, a former Research Technologist at the Hershey Medical Center in Hershey, Pennsylvania, performed gene mutation tests (known as Epidermal Growth Factor Receptor (EGFR), KRAS gene mutation (KRAS), and BRAF gene mutation (BRAF) assays) for 124 advanced stage cancer patients at the Hershey Medical Center in 2013 and 2014. These genetic tests help physicians diagnose a patient’s particular type of cancer so specifically tailored treatments can be administered to the patient.
Benko failed to perform the assays in the manner called for by Hershey’s standard operating procedures. Subsequent retesting of the patients revealed that 60 of the 124 patients had results discordant with results obtained by two outside laboratories.
Benko admitted to making a false statement to administrators at the Hershey Medical Center on April 11, 2014, about the manner by which he performed the genetic assays. Benko admitted he lied and concealed the fact that he did not follow standard Hershey operating procedures by failing to use a device known as a NanoDrop 2000 photo spectrometer in performing the assays and by failing to preserve the patients’ leftover tissue and DNA samples.
The Hershey Medical Center incurred out of pocket expenses totaling $69,906 for outside laboratory re-testing of all of the affected patients. Under the terms of his plea agreement, Benko agreed to make full restitution to the Medical Center in his amount. No date has yet been scheduled for Benko’s sentencing pending preparation of a pre-sentence report.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Kim Douglas Daniel and Joseph J. Terz.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for False Statements in Health Care Matters is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Fort Stockton Teacher Sentenced to Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
In Alpine today, a federal judge sentenced Javier Carlos Arteta Franco, a 59-year-old Venezuelan National and former elementary school teacher in Fort Stockton, to 160 months in federal prison followed by a lifetime of supervised release for receipt and possession of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
On July 28, 2016, Arteta Franco pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. By pleading guilty, Arteta Franco admitted that from December 2014 to August 2015, he used a file-sharing program to download to his personal computer videos and images of minors engaging in sexually explicit conduct.
On August 19, 2015, HSI agents executed a search warrant at the defendant’s residence and seized his laptop computer. A forensics analysis of the computer revealed the presence of child pornography that had been downloaded from the Internet. Arteta Franco has remained in federal custody since his arrest by HSI agents on August 19, 2015.
“HSI and our law enforcement partners continue to police cyber space searching for predators who exploit the most vulnerable segment of our society — our children,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “This case is especially disturbing because of the perpetrator’s position of public trust and access to children.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Alpine with assistance from the Fort Stockton Police Department and the Texas Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Sandy Stewart prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Former El Paso-Based Production Company Employee Sentenced to Federal Prison for Computer IntrusionRead the Press Release
In El Paso today, a federal judge sentenced 42-year-old Joe Vito Venzor to 18 months in federal prison for illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Venzor pay $57,397.76 restitution and be placed on supervised release for a period of three years after completing his prison term.
On March 30, 2017, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after termination from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.
Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.
“The FBI El Paso Division stands ready to work closely with our public and private sector partners to identify, pursue, and prosecute those who gain unauthorized access to proprietary data and threaten our cyber security,” stated FBI Special Agent in Charge Emmerson Buie, Jr., El Paso Division.
Assistant United States Attorneys Greg McDonald and Rifian Newaz prosecuted this case on behalf of the Government.
Former Credit Suisse Banker Pleads Guilty to Conspiring with U.S. Taxpayers and Other Swiss Bankers to Defraud the United StatesRead the Press Release
A citizen and resident of Switzerland pleaded guilty today to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to the statement of facts and the plea agreement, Susanne D. Rüegg Meier, admitted that from 2002 through 2011, while working as the team head of the Zurich Team of Credit Suisse’s North American desk in Switzerland, she participated in a wide-ranging conspiracy to aid and assist U.S. taxpayers in evading their income taxes by concealing assets and income in secret Swiss bank accounts. Rüegg Meier was responsible for supervising the servicing of accounts involving over 1,000 to 1,500 client relationships. She was also personally responsible for handling the accounts of approximately 140 to 150 clients, about 95 percent of whom were U.S. persons residing primarily in New York, Chicago and Florida, which held assets under management totaling approximately $400 million. Rüegg Meier admitted that the tax loss associated with her criminal conduct was between $3.5 and $9.5 million.
Rüegg Meier assisted many U.S. clients in utilizing their Credit Suisse accounts to evade their U.S. income taxes and to facilitate concealment of their undeclared financial accounts from the U.S. Department of the Treasury and the Internal Revenue Service (IRS). She took the following steps to assist clients in hiding their Swiss accounts: retaining in Switzerland all mail related to the account; structuring withdrawals in the forms of multiple checks each payable in amounts less than $10,000 that were sent by courier to clients in the United States and arranging for U.S. customers to withdraw cash from their Credit Suisse accounts at Credit Suisse locations outside Switzerland, such as the Bahamas. Moreover, Rüegg Meier admitted that approximately 20 to 30 of her U.S. clients concealed their ownership and control of foreign financial accounts by holding those accounts in the names of nominee tax haven entities or other structures that were frequently created in the form of foreign partnerships, trusts, corporations or foundations.
Between 2002 and 2008, Rüegg Meier traveled approximately twice per year to the United States to meet with clients. Among other places, Rüegg Meier met clients in the Credit Suisse New York representative office. To prepare for the trips, Rüegg Meier would obtain “travel” account statements that contained no Credit Suisse logos or customer information, as well as business cards that bore no Credit Suisse logos and had an alternative street address for her office, in order to assist her in concealing the nature and purpose of her business.
After Credit Suisse began closing U.S. customers’ accounts in 2008, Rüegg Meier assisted the clients in keeping their assets concealed. For example, when one U.S. customer was informed that the bank planned to close his account, Rüegg Meier assisted the customer in closing the account by withdrawing approximately $1 million in cash. Rüegg Meier advised the client to find another bank simply by walking along the street in Zurich and locating a bank that would be willing to open an account for the client. The customer placed the cash into a paper bag and exited the bank. Rüegg Meier also recommended that a few U.S. clients open new accounts at other specific banks, such as Bank Frey and Wegelin & Co., and transfer their assets from their Credit Suisse accounts to the new accounts.
Credit Suisse pleaded guilty in May 2014 for conspiring to aid and assist taxpayers in filing false returns, and was sentenced in November 2014 to pay more than $2 billion in fines and restitution.
Sentencing is scheduled for Sept. 8. Rüegg Meier faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente commended special agents of IRS Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Corporate General Counsel Sentenced to A Year in Prison for Conspiring to Obstruct Justice in Federal Criminal TrialRead the Press Release
CAMDEN, N.J. – The former general counsel of VO Financial Corp. was sentenced today to 12 months in prison for conspiring to obstruct justice in a federal criminal case tried in 2013, Acting U.S. Attorney William E. Fitzpatrick announced.
Joshua L. Gayl, 37, of Lafayette Hill, Pennsylvania, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of conspiracy to obstruct justice. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this and other cases and statements made in court:
Adam and Ashley Lacerda, Ian Resnick, and several others were charged in April 2012 with conspiracy to commit mail and wire fraud based on their actions at the Vacation Ownership Group, which offered phony consulting services to owners of timeshares. After they were charged, the VO Group became VO Financial, and Gayl was hired as general counsel. The Lacerdas continued to run VO Financial through their July 2013 criminal trial.
Gayl admitted misleading a witness, identified as “Victim 1,” after he learned that Victim 1 had told the FBI about being defrauded by the VO Group.
Gayl contacted Victim 1 intending to obtain statements favoring the defense in the criminal case, but he concealed his true intentions from Victim 1. Instead, he wrote Victim 1 offering assistance if Victim 1 would tell him what Victim 1 told the FBI. Gayl and an accomplice then called Victim 1 and misleadingly said that they were recording the call for quality assurance and training purposes, when in fact they were trying to get Victim 1 on tape making statements favorable to the defense. Victim 1 told Gayl that the VO Group had promised to sell Victim 1’s timeshare, a VO Group misrepresentation alleged in the indictment. Gayl omitted this allegation when he told Victim 1 what was alleged in the criminal case. Although he did not know what the VO Group representative actually told Victim 1, Gayl told Victim 1 that “we do not sell timeshares” and that Victim 1 had some “confusion” in recalling a promise to sell Victim 1’s timeshare.
Gayl ended the call and consulted with Adam Lacerda. Gayl then called Victim 1 back at Lacerda’s request to persuade Victim 1 that Victim 1’s recollection was mistaken – but Gayl did not tell Victim 1 that his purpose was to get recorded statements to help the criminal defense. Gayl told Victim 1 in the second call that it was “likely” and “logical” that Victim 1 had misunderstood that the VO Group sold timeshares.
Gayl also helped the defendants send potential trial witnesses payments intended to influence their testimony. Adam and Ashley Lacerda wanted these refunds paid to help the defense case at trial and make the recipients testify more favorably to the defense, but Gayl did not tell the potential witnesses that these were the purposes of the payments. Gayl wrote a letter urging “Victim 2” to take a refund, knowing that Resnick wanted Victim 2 to take the refund because Victim 2 was a potential trial witness against Resnick. A month before trial, Gayl wrote letters offering refunds to “Victim 3” and “Victim 4,” but failed to tell them that they were being offered refunds because they were potential trial witnesses.
Gayl also lied in responding to a trial subpoena asking VO Financial to produce records. After Adam Lacerda’s criminal lawyer told the U.S. Attorney’s Office and Gayl that he had advised Lacerda not to be involved in the subpoena response, Gayl told Adam Lacerda about one subpoenaed recording harmful to the defense and saw Lacerda access the recording. Lacerda deleted the damaging portion of the recording. When Gayl gave the U.S. Attorney VO Financial’s response to the subpoena, he included the altered recording and a false certification that he did not consult with Lacerda about the subpoena response. Gayl subsequently listened to the recording and realized that Lacerda had altered it.
In addition to the prison sentence, Judge Hillman sentenced Gayl to three years of supervised release and ordered him to pay a $5,000 fine.
Adam Lacerda, Ashley Lacerda, and Ian Resnick were convicted of conspiracy to commit mail and wire fraud and other offenses. Adam Lacerda was sentenced in June 2015 to 27 years in prison. Ian Resnick was sentenced to 18 years in prison in April 2016. Ashley Lacerda was sentenced to six years in prison in June 2016.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Defense counsel: Ellen C. Brotman, Esq., Philadelphia
Firearms Exporter and Straw Purchasers Head to PrisonRead the Press Release
McALLEN, Texas – A total of six local individuals have been ordered to federal prison for straw purchasing firearms, announced Acting U.S. Attorney Abe Martinez.
Jesus Alberto Murillo, 24, Rene Hernandez, 22, Miguel Cervantes, 22, Mariano Eberth Garcia, 22, and Felix Hernandez, 26, all of McAllen, and Marella Sandoval, 31, of Penitas, all previously pleaded guilty.
Today, U.S. District Judge Micaela Alvarez heard testimony from a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) special agent regarding the roles of the defendants in straw purchasing firearms that were unlawfully exported to Mexico for use by Cartel members. Judge Alvarez sentenced Murillo and Rene Hernandez to 115 months and 72 months in federal custody, respectively. The sentences were enhanced as the court found they were both a leader or supervisor in the offense. Felix Hernandez and Cervantes were sentenced to 60 and 24 months in federal custody, respectively.
At a hearing yesterday, Judge Alvarez sentenced Garcia to 50 months imprisonment.
U.S. District Judge Ricardo Hinojosa sentenced another individual involved in the offense, Carlos Alberto Zamudio, 34, McAllen, to a term of 48 months on April 24, 2017. Sandoval will be sentenced by Judge Alvarez on July 27, 2017.
The defendants sentenced today conducted or recruited others to conduct the straw purchase of firearms from various federal firearms licensees between September and October 2015. The investigation revealed that the defendants combined to purchase more than 100 firearms throughout the Rio Grande Valley. To date, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has learned that at least 14 of the purchased firearms were recovered in Mexico.
Murillo, Sandoval, Garcia, Felix and Rene Hernandez have been and will remain in federal custody. Cervantes was permitted to remain on bond and surrender to authorities at a later date.
The ATF conducted the investigation with the assistance of police departments in McAllen and Corpus Christi. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Financial Secretary Charged with Embezzlement and Theft of Labor Union AssetsRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of embezzlement and theft of labor union assets, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on July 18, named Charles Hill, 51, of Avonmore, Pa., as the sole defendant.
According to the indictment, Charles Hill was the Financial Secretary of Glass Molders, Pottery, Plastics, and Allied Workers (GMP), AFL-CIO Local Union 46. The indictment alleges that from November 3, 2014, to May 10, 2016, Hill embezzled approximately $7,000.00 of union funds for his own use.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $10,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will depend upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The U.S. Department of Labor, Office of Labor-Management Standards, conducted the investigation leading to the prosecution of Charles Hill.
Fifty-Two and Forty-Seven Year Prison Terms for Hialeah Residents Who Robbed Two Hialeah Jewelry Stores and Attempted to Rob a Third StoreRead the Press Release
A third defendant was sentenced to 4 years in prison
Three Hialeah residents were sentenced to prison terms after having been convicted by a federal jury of robbing two Hialeah jewelry stores and attempting to rob a third store.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Sergio Velasquez, Chief, Hialeah Police Department (HPD), made the announcement.
Anibal Mustelier, 67, Jose Pineda Castro, 28, and Yamile Diaz Bernal, 29, all of Hialeah, were convicted of conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro were also convicted of two counts of Hobbs Act Robbery, one count of attempted Hobbs Act Robbery, and two counts of brandishing a firearm in furtherance of a violent crime. Mustelier, a convicted felon and formerly one of FBI’s most wanted individuals, with prior pending federal indictments from 1996, was also convicted of felon in possession of a firearm and ammunition.
U.S. District Judge Frederico A. Moreno sentenced Mustelier to a total of 624 months’ imprisonment; Castro to a total of 572 month’s imprisonment; and Bernal to a total of 51 months’ imprisonment.
According to the court record, including evidence presented at trial, between May 30, 2015 and August 8, 2016, Mustelier, Pineda Castro and his wife Diaz Bernal conspired to and robbed two jewelry stores in Hialeah, Florida. A third robbery attempt failed when Pineda Castro accidently cut the electricity to the shopping center.
The defendants would monitor the jewelry stores for months, including surveilling the store security features, in order to plan the robberies. Once they were ready to carry out the robbery, they would break into the adjacent business the night before the planned robbery. They would then carve out a hole from the adjacent business wall and prepare to enter the jewelry store once the employees arrived the following morning. At that time, they would bust through the drywall wearing ski masks and wielding guns. They would handcuff the employees and place all of the jewelry in large duffle bags. Just before they left the store with the jewelry, they would take the video recordings and exit through the same adjacent business wall. A confidential informant broke the case by recording Pineda Castro and Diaz Bernal discussing their participation in the prior jewelry store robberies. In these conversations, they implicated Mustelier as Pineda Castro’s mentor in committing robberies.
Law enforcement was able to independently corroborate Pineda Castro and Diaz Bernal’s admissions. In addition, unbeknownst to Pineda Castro, he also led law enforcement to the doorsteps of his mentor, Mustelier. There, law enforcement found, among other things, ski masks, guns, handcuffs and the jewelry belonging to two jewelry stores that had been robbed as part of this ongoing conspiracy.
Mr. Greenberg commended the investigative efforts of ATF and HPD. This case was prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Miesha Shonta Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Search Warrants ExecutedRead the Press Release
On Wednesday, July 19, 2017, federal search warrants were executed at the following locations in Iowa, Colorado, Oregon, and Nevada:
• 2 locations on the 600 block of 15th Street, Davenport, Iowa
• 4800 block of West Locust Street, Davenport, Iowa
• 5300 block of Park Place, Asbury, Iowa
• 6500 block of Silverwind Circle, Colorado Springs, Colorado
• 7700 block of Barraport Drive, Colorado Springs, Colorado
• 5200 block of Tomah Drive, Colorado Springs, Colorado
• 400 block of Draper Valley Road, Selma, Oregon
• 12000 block of Southeast Market Street, Portland, Oregon
• 200 block of Union Avenue, Grants Pass, Oregon
• 2 locations on the 1700 block of Clear River Falls, Nevada
The searches at these locations were official law enforcement actions involving officers, agents, and investigators from the Drug Enforcement Administration (DEA); Quad City Metropolitan Enforcement Group (QCMEG); Davenport Police Department (DPD); Dubuque Drug Task Force (DDTF); Division of Narcotics Enforcement (DNE); Scott County Sheriff’s Department (SCSD); Asbury (Iowa) Police Department (APD); Iowa Division of Intelligence (DOI); El Paso County (Colorado) Sheriff’s Office (EPCSHO); Oregon State Patrol (OSP); Las Vegas Metropolitan Police Department (LVMPD); Henderson (Nevada) Police Department (HPD); and the Little Rock (Arkansas) Drug Task Force.
Presently, the following individuals have been charged with conspiracy to manufacture and distribute marijuana and money laundering:
• Jennifer Hoang, 25, of Davenport, Iowa
• Douglas Tran, 57, of Henderson, Nevada
• Randy Wardrip, 23, of Davenport, Iowa
No other information or comments will be released until documents have been filed with the court as part of the public record. The public is reminded that a charge is merely an accusation and individuals are presumed innocent unless and until proven guilty. The United States Attorney’s Office for the Southern District of Iowa is prosecuting this case.
Federal Grand Jury Indicts Dallas Attorney and His Assistant for Running Marriage Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas returned a one-count indictment last week charging Bilal Ahmed Khaleeq, a Dallas attorney and his assistant, Amna Cheema with conspiracy to commit marriage fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges Khaleeq, 47, and Cheema, 37, with one count each of conspiracy to commit marriage fraud. If convicted, the count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Khaleeq made his initial appearance in federal court yesterday afternoon, before U.S. Magistrate Judge Horan and was released on supervised release. Cheema is scheduled to appear today before U.S. District Judge Godbey for a detention hearing.
“Immigration attorneys risk severe consequences when they choose to illegally profit by breaking U.S. immigration laws rather than building a profession on following those laws,” said Katrina W. Berger, special agent in charge of HSI Dallas. “HSI leads a Dallas-area Document and Benefit Fraud Task Force, and partners daily with many local law enforcement agencies to enforce immigration laws. HSI and our law enforcement partners will not tolerate immigration fraud — especially by immigration attorneys.”
According to the indictment, in May 2015, Khaleeq intentionally solicited Person A, a naturalized U.S. citizen originally from India, to marry Cheema, a Pakistani national, for the purpose of obtaining lawful permanent residence for Cheema. In exchange for entering into a fraudulent marriage and proceeding through the permanent residence process, Person A received a payment of $745.00 with promises of additional monies upon approval of the Application to Register Permanent Residence or Adjust Status application (Form I-485). Cheema and Person A were married in Dallas County on June 15, 2015. Khaleeq arranged the marriage, advised Cheema regarding the filing of the Petition for Alien Relative (Form I-130) and represented the parties at the interview with the United States Citizenship and Immigration Services (USCIS).
After Cheema and Person A had been married, Khaleeq advised the parties on the preparation of the I-130 petition and supporting documents needed to make the marriage appear legitimate, including but not limited to, joint bank accounts, tax returns, bills concerning their joint residence and other fraudulent evidence including photos. On July 10, 2015, the parties filed Forms I-130 and I-485 with USCIS.
The indictment further alleges, from January 26, 2016, through March 7, 2017, Khaleeq, Cheema and Person A had several discussions regarding the immigration process and the documentary evidence needed to represent Cheema and Person A as a bona fide married couple for the purposes of the immigration benefit. In addition, Khaleeq coached Person A how to address the questions that would be posed during the USCIS interview process. Among other advisals, Khaleeq specifically instructed Person A to tell the USCIS Adjudications Officer that he cohabitated with Cheema even though that was a false statement. Khaleeq also advised Person A to leave some articles of clothing in Cheema’s residence to make it appear that he was residing there. Additionally, the parties discussed filing joint tax returns to provide additional evidence and discussed how long Person A and Cheema should remain married in order for her to obtain her lawful permanent residence.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) is investigating the case. Special Assistant U.S. Attorney Lynn Javier is in charge of the prosecution.
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East Bay Real Estate Agent Pleads Guilty to Wire Fraud and Money Laundering in Connection with Scheme to Defraud Homeowners and Mortgage HoldersRead the Press Release
SAN FRANCISCO – Robert Jacobsen pleaded guilty today to wire fraud and money laundering charges in connection with a scheme to use sham companies and collusive lawsuits to create the appearance that mortgage liens had been invalidated, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea was accepted by the Honorable Maxine M. Chesney, U.S. District Judge.
According to the plea agreement, Jacobsen, 69, formerly of Lafayette, Calif., admitted that from October 2012 through October 2013, he executed a scheme to sell homes to buyers who were duped into believing that the homes had clear title. Jacobsen admitted that he identified homes with mortgage deeds of trust that were recorded for the benefit of an entity called “American Brokers Conduit” (ABC). Jacobsen also admitted that he registered a separate entity in New York called “American Brokers Conduit Corporation” (ABC Corp.). Jacobsen then hired an attorney to file lawsuits against his phony ABC Corp., claiming that mortgages that had been originated by the real ABC were invalid. Controlling both sides of the lawsuits, Jacobsen caused the attorneys to enter into stipulated judgments, agreeing that the mortgage deeds of trust were invalid. The courts then entered judgment based on these fraudulent agreements, which Jacobsen recorded with county recorder’s offices. The result created the impression that the deeds of trust had been legitimately invalidated by federal or state courts.
Jacobsen admitted that two homes that were the subjects of such lawsuits were in Danville, Calif., and San Francisco, Calif. Jacobsen admitted that, after obtaining fraudulent judgments, he sold the Danville home for $540,000 and the San Francisco home for $1.2 million. Jacobsen admitted that in both cases, his representations regarding the fraudulent court judgments had a natural tendency to influence the buyers to purchase the homes.
As part of his plea agreement, Jacobsen further admitted that proceeds from the sale of the Danville and San Francisco homes were used to pay for a 54’ Hylas sailboat that the government seized at a marina in Beaufort, North Carolina on November 18, 2015. Jacobsen agreed that his interest in this sailboat was subject to forfeiture.
On December 5, 2015, a federal grand jury indicted Jacobsen charging him with 13 counts of wire fraud, in violation of 18 U.S.C. § 1343 and 9 counts of engaging in monetary transactions in property derived from specified unlawful activity (money laundering), in violation of 18 U.S.C. § 1957. Pursuant to today’s plea agreement, Jacobsen pleaded guilty to one count of each crime.
Jacobsen’s sentencing is scheduled for November 15, 2017. Jacobsen faces a maximum sentence of 20 years of imprisonment, and a fine of $250,000, plus restitution, for the wire fraud count and a maximum sentence of 10 years of imprisonment, and a fine of $250,000, for the money laundering count. However, any sentence following conviction will 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.
Assistant United States Attorneys Benjamin Kingsley, Meredith Osborn, and Gregg Lowder are prosecuting the case with the assistance of Beth Margen and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and IRS-CI.
Elkins Man Sentenced to 56 Months in Federal Prison for Child PornographyRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that George Hagadone, age 52, of Elkins, was sentenced yesterday to 56 months in federal prison followed by a 10 years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, beginning in June 2016, Homeland Security Investigations (H.S.I.) identified a computer uploading videos depicting child pornography. During the course of the investigation the LP address associated with that computer came back to the residence of George Hagadone, located in Elkins, which is located in the Fayetteville Division, Western District of Arkansas.
On January 12, 2017, H.S.I. executed a search warrant of Hagadone's residence where a computer containing child pornography was seized. Special Agents with H.S.I. interviewed Hagadone who admitted to downloading and possessing child pornography.
Hagadone was pled guilty to a one-count Information on March 31, 2017.
This case was investigated by the Department of Homeland Security Investigations. Assistant United States Attorney Denis Dean 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
Drug Traffickers Sentenced to 12 YearsRead the Press Release
RALEIGH - The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announced that in federal court on July 18, 2017, United States District Judge Terrence W. Boyle sentenced ALBERT ABDALLA, 45 years of age from Durham, N.C., and BRIAN KEITH GONZALES, 38 years of age from San Antonio, TX, to 144 months in prison for conspiracy to distribute 5 kilograms or more of cocaine ABDALLA and GONZALES pled guilty to this charge on December 30, 2016, and January 4, 2017, respectively.
An investigation by agents of DEA-Raleigh and DEA-San Antonio identified GONZALES as a Texas-based cocaine source of supply for ABADALLA, a drug trafficker in the Raleigh/Durham area. On September 14, 2016, GONZALES traveled to Raleigh, NC, in order to facilitate a 30-kilogram cocaine delivery to ABDALLA. On September 15, 2016, agents arrested GONZALES when he met with an undercover agent posing as a courier for a cocaine source of supply. Agents seized $210,030 from GONZALES he had received from ABDALLA to use as a down payment for the 30 kilograms of cocaine. Agents arrested ABDALLA shortly thereafter with $4,000. Agents searched ABDALLA’S apartments in Raleigh and Durham, and seized 1 kilogram of cocaine, 500 grams of heroin and $37,472. Further investigation led to the seizures of 8 kilograms of cocaine in Wake County and 1 kilogram of cocaine in Mecklenburg County.
The case was investigated by the Drug Enforcement Administration in Raleigh and San Antonio, TX, the North Carolina State Bureau of Investigation, North Carolina Alcohol Law Enforcement, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Document Thief Pleads Guilty to Mail FraudRead 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 Daniel Witek, 54, of Buffalo NY, pleaded guilty to mail fraud before U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael DiGiacomo and Jonathan P. Cantil, who are handling the case, stated that in the spring of 2013, the defendant was a volunteer at the Buffalo History Museum. While volunteering at the museum, Witek devised a scheme to access and steal certain historical writings addressed to Anson Conger Goodyear that belonged to the museum. The defendant then offered to sell the stolen documents to one autograph dealer in New York City and one in New Jersey.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 8, 2017, at 11:00 a.m. before Judge Skretny.
District of Columbia National Guard Head Visits INTERPOL WashingtonRead the Press Release
On July 18, 2017, the Acting Commanding General of the District of Columbia (D.C.) National, Guard Brig. Gen. William J. Walker, visited INTERPOL Washington. General Walker assumed his current duties on January 20, 2017, and is responsible for operational readiness and command and control of the D.C. Army and Air National Guard units with an authorized end strength of 2,700 soldiers and airmen. He previously served as the Commander, Land Component Command, of the D.C. National Guard. In 2014, General Walker retired from civilian federal service as a career special agent of the U.S. Drug Enforcement Administration where he was a member of the Senior Executive Service.
The D.C. National Guard’s mission bridges the gap between Department of Defense and non-Defense institutions in the fight against illicit drugs and transnational threats to the Homeland. The program assists community-based groups to educate their communities; to assist in criminal intelligence gathering and information sharing; and to disrupt the drug market by supporting arrest operations. The counter-drug program conducts aerial reconnaissance, providing support to various District and federal law enforcement agencies and criminal analyst and linguist support to law enforcement agencies. In support of this mission area, in 2013 the D.C. National Guard assigned one detailee, and recently added a second, to INTERPOL Washington’s Drug Division to support criminal analysis and information-sharing activities.
Acting Director of INTERPOL Washington Wayne Salzgaber welcomed the General and his staff members to the agency before turning the session over to a senior advisor to present the orientation briefing. The briefing covered the critical roles of INTERPOL and INTERPOL Washington tools and services in the fight against transnational crime. The briefing placed a special emphasis on the expansion of collaborative efforts between INTERPOL Washington and the Department of Defense in the sharing of biometric and other law enforcement data. Acting Director Salzgaber thanked General Walker for his continued support to the INTERPOL mission. This is particularly significant as the D.C. National Guard is the first and only National Guard unit represented at INTERPOL Washington.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
INTERPOL Washington Acting Director H. Wayne Salzgaber and Acting Commanding General of the D.C. National Guard William J. Walker.Disbarred Attorney William O’Brien Imprisoned for Misusing Client FundsRead the Press Release
The United States Attorney for the District of Vermont announced that William O’Brien, 60, a former attorney who lives in Winooski, was sentenced today in United States District Court in Brattleboro to 14 months of imprisonment following his guilty plea to a charge of mail fraud. U.S. District Judge J. Garvan Murtha also ordered that O’Brien serve a one-year term of supervised release following completion of his prison term and pay restitution totaling $19,699. The court ordered that O’Brien surrender to the Bureau of Prisons on September 5 to begin serving his sentence.
On October 13, 2016, the United States filed a criminal information charging O’Brien with one count of mail fraud, the charge to which O’Brien pled guilty. The information charged O’Brien with defrauding two former law clients. In one case, O’Brien became the trustee of a trust established by the clients. As trustee, O’Brien was to use trust funds to make charitable contributions in the memory of the clients. Between 2008 and 2013, O’Brien did make a number of contributions of trust funds in the total amount of $97,500, but also improperly diverted about $139,000 in trust funds to his law firm account. In another case, O’Brien received in his capacity as attorney more than $247,000 in client funds, which were also meant to be used for charitable purposes. Although O’Brien did make one contribution of $15,000, he again used the remaining funds for his own benefit.
In early 2016, O’Brien did repay about $472,000 to these two clients, but those payments were made only after O’Brien became aware he was under investigation by counsel for the Vermont bar. The Vermont Supreme Court suspended O’Brien’s law license in January 2016 and disbarred him last December.
In addition to defrauding the two clients referred to in the charging information, O’Brien also misappropriated smaller amounts of money from five other clients. The court’s restitution order requires O’Brien to repay those clients in full.
This case was investigated by the Burlington Police Department, the U.S. Postal Inspection Service and the Vermont Judiciary’s Office of Disciplinary Counsel.
O’Brien is represented by Scott McGee of Norwich. The prosecutor is Assistant U.S. Attorney Gregory Waples.
DeRuyter Man Sentenced for Attempting to Entice a 12 year old Girl for SexRead the Press Release
SYRACUSE, NEW YORK – Floyd Wood, 49, of DeRuyter, New York, was sentenced in federal court today following his earlier plea of guilty to Attempted Coercion and Enticement, announced Acting United States Attorney Grant C. Jaquith.
United States District Judge David N. Hurd sentenced Wood to a term of 120 months in federal prison, to be followed by 15 years of supervised release. In addition, Wood will be required to register as a sex offender.
As part of his guilty plea, Wood admitted that in April, 2016 through text messaging with someone he believed was a female acquaintance, he arranged to meet with the acquaintance and her 12 year old daughter at a Syracuse hotel to engage in a sexual encounter with both the mother and child. Instead, Wood was corresponding with law enforcement officers, and was arrested at the Syracuse hotel where he was to meet the child and her mother. Prior to his arrival at this location, Wood was surveilled by law enforcement officers at an adult products store where he purchased items he intended to use in the encounter.
This case was investigated by the Mid-state Child Exploitation Task Force, which includes the Federal Bureau of Investigation (FBI), Syracuse Resident Agency, together with the New York State Police, and was prosecuted by Assistant United States Attorney Lisa Fletcher as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, and 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Clinton Man Sentenced to 30 Months in Federal Court for Wire FraudRead the Press Release
July 19, 2017
FOR IMMEDIATE RELEASE Contact BAILEY DRUMM
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – John Calvin Baltimore, age 37, of Clinton, Maryland was sentenced to 30 months in prison followed by 3 years of supervised release and restitution of $239,609 by U.S. District Judge Marvin J. Garbis. Baltimore pleaded guilty to wire fraud in a scheme where he defrauded his employer by stealing cash from a large safe under his control.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Christopher Caruso of the United States Secret Service, Baltimore Field Office.
According to court documents, Baltimore was employed as the Controller for Delaware North Companies (DNC), who provide food, beverage and retail services at Oriole Park at Camden Yards. Baltimore was responsible for overseeing financial transactions in the accounting office, which included managing a large cash safe. Baltimore’s thefts were discovered in September 2014, after a DNC employee filed an internal complaint against Baltimore that led to Baltimore’s suspension. As part of DNC’s standard procedures, an audit was conducted of the cash safe, revealing approximately $14,700 in missing cash.
Further investigation revealed that during the three years that Baltimore was the Controller, Baltimore stole over $230,000 in cash from the safe. The thefts initially went undiscovered because Baltimore deposited checks intended for other accounts – such as accounts receivable –into the account that funded the cash safe. The mis-deposited checks were then covered up by improper journal entries that “wrote off” the receivables, all approved by Baltimore. During the course of the scheme, Baltimore mis-deposited 28 checks through 16 separate deposits. The 28 checks totaled $239,609.56 and Baltimore stole the same amount from cash safe.
Acting United States Attorney Stephen M. Schenning commended the United States Secret Service for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.
Citrus County Man Sentenced to Three Years in Federal Prison for Making Threats to Use an Explosive DeviceRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced David Wayne Willmott, Jr. (25, Inverness) to three years in federal prison for making threats to use an explosive device. He pleaded guilty on April 18, 2017. This federal sentence will be served consecutively to the six-year sentence imposed in 2016 by the State of Florida for two arsons and a hoax bomb threat in Hernando County.
According to court documents, on three separate dates (November 25, 2014, April 17, 2015, and April 23, 2015), Willmott sent e-mails containing bomb threats to various private and government facilities. The locations targeted in the e-mails included a nuclear power plant, an elementary school, a sheriff’s office, two courthouses, and two airports in central Florida. The investigation revealed that the threats had originated from specific computers at a public library in Citrus County, and that Willmott had been the person using the library computer at the time each of the threatening e-mails was sent.
This case was investigated by the Federal Bureau of Investigation, the Citrus County Sheriff’s Office, and the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Citizen of the Dominican Republic Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTIAN PAULINO RODRIGUEZ, 47, a citizen of the Dominican Republic last residing in Stamford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of possession with intent to distribute, and distribution of, 500 grams or more of cocaine.
According to court documents and statements made in court, in November 2016, RODRIGUEZ arranged for the sale and delivery of kilogram quantities of cocaine, for $32,000 per kilogram, to an individual working with law enforcement. DEA Task Force officers arrested RODRIGUEZ on November 15, 2016, after he coordinated the sale of approximately five kilograms of cocaine to the individual.
Judge Shea scheduled sentencing for October 12, 2017, at which time RODRIGUEZ faces a maximum term of imprisonment of 20 years.
RODRIGUEZ has been detained since his arrest.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stamford and Norwalk Police Departments. The case is being prosecuted Assistant U.S. Attorney Joseph Vizcarrondo.
Cedar Rapids Man Convicted of Distributing Heroin and Fentanyl that Caused Near-Death OverdoseRead the Press Release
A man who distributed heroin laced with fentanyl that caused a near-fatal overdose was convicted by a jury on July 19, 2017, after a three-day trial in federal court in Cedar Rapids.
Cordero Robert Seals, age 29, from Cedar Rapids, Iowa, was convicted of one count of distribution of heroin and fentanyl resulting in serious bodily injury and one count of possession with intent to distribute heroin and fentanyl. The verdict was returned this afternoon following about 3 hours of jury deliberations.
The evidence at trial showed that Seals sold heroin laced with fentanyl to a man in November 2016. Seals and the man then drove to a convenience store on First Avenue SE in Cedar Rapids, where the man entered the store’s bathroom and injected the heroin/fentanyl mix. Surveillance video from the store showed that about two minutes after the man left the bathroom, he lost consciousness and collapsed at the gas pump. The video showed Seals re-entering the convenience store after the man overdosed, and then looking out to the pumps where the man had collapsed. Seals then left the area without returning to the man’s vehicle. Trial evidence also showed that in April 2017, Seals was arrested for an outstanding warrant by Cedar Rapids Police. During a search, officers found six baggies of heroin laced with fentanyl, as well as nearly $3,800 in cash, in his pockets.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Seals remains in custody of the United States Marshal pending sentencing. Seals faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $200 in special assessments, and a lifetime term of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR17-00028-LRR.
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CEO of Virginia Health Care Technology Company Sentenced to Almost 10 Years in Prison for $49 Million Shareholder Fraud and $7.5 Million Employment Tax FraudRead the Press Release
A medical doctor and entrepreneur was sentenced to 119 months and 29 days in prison today for defrauding his former company’s shareholders and for failing to account for and failing to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Chief Don Fort of the Internal Revenue Service Criminal Investigation (IRS-CI) and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office.
According to documents filed with the court, in or about September 2000, Sreedhar Potarazu, 51, of Potomac, Maryland, an ophthalmic surgeon licensed in Maryland and Virginia, founded VitalSpring Technologies Inc. (VitalSpring), a Delaware corporation. VitalSpring operated in McLean, Virginia and provided data analysis and services relating to health care expenditures. In or around the end of 2015, VitalSpring started doing business as Enziime LLC, a Delaware corporation. From its inception, Potarazu was VitalSpring’s Chief Executive Officer and President, and served on its Board of Directors.
From at least 2008, Potarazu provided materially false and misleading information to VitalSpring’s shareholders to induce more than $49 million in capital investments in the company. Potarazu represented on numerous occasions that VitalSpring was a financially successful company and that the sale of VitalSpring was imminent, which would have resulted in profits for shareholders. Potarazu also admitted that he concealed from shareholders that VitalSpring failed to account for and pay over more than $7.5 million in employment taxes to the IRS. For example, in 2014, Potarazu provided shareholders with a written summary of operating results that reflected VitalSpring’s 2013 revenues to be approximately $12.9 million when, in fact, the 2013 revenue was less than $1 million.
“Like a director employing actors and props on a stage, Sreedhar Potarazu arranged for an imposter to pose as a buyer, provided a link to a bogus website and supplied fraudulent balance sheets, phony bank statements and false tax returns to convince VitalSpring investors and potential buyers that the company was financially healthy and up-to-date on its taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As a result of his actions, shareholders are out more than $49.5 million and over $7.5 million in employment taxes due to the U.S. Treasury were diverted and never paid. With Potarazu’s conviction and the sentencing hearings in this case, his fraud has been revealed, and today’s imposition of a 119 month sentence holds him fully accountable for his actions.”
“For years Potarazu enriched himself by abusing the trust of his company’s many investors and stealing millions of dollars from them through a complex scheme of fraud and deceit,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “This case is a prime example of this office’s ongoing commitment to bringing white-collar criminals to justice.”
“For almost a decade, Potarazu put greed ahead of his shareholders and employees by building a complex web of deceit and fraud while at the same time evading paying his employment tax liability,” said Chief Don Fort, IRS Criminal Investigation. “Today’s sentencing serves as a reminder that these types of criminal actions will be punished and IRS-CI is committed to bringing culpable individuals to justice.”
“Potarazu ran a multi-million dollar scheme that caused significant financial losses to VitalSpring shareholders for almost a decade,” said Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office. “The FBI is committed to bringing white-collar criminals to justice and we will continue to work closely with our law enforcement partners, to investigate, charge and prosecute those who engage in criminally deceitful business practices.”
Scheme to Defraud
From VitalSpring’s inception, but specifically from 2008 until his arrest in October 2016, Potarazu solicited investments through in-person meetings, emails, telephone conference calls, webinars, and phone calls. From in or about 2008 through in or about 2016, Potarazu raised approximately $49 million from more than 174 victim investors.
Potarazu induced investments from shareholders by making false representations, concealing material facts, and telling deceptive half-truths about VitalSpring’s financial condition, tax compliance, and alleged imminent sale. Potarazu also caused someone to pose as a representative of a prospective buyer on shareholder conference calls to add legitimacy to his claims regarding VitalSpring’s imminent sale.
VitalSpring never generated a profit. Nonetheless, Potarazu falsely represented to shareholders that VitalSpring’s financial position and profitability was improving from 2008 to 2016, and that VitalSpring had millions of dollars in cash reserves. To support his scheme, Potarazu presented fake bank statements to some shareholders that showed inflated balances.
Potarazu also concealed from shareholders that VitalSpring owed substantial employment tax to the IRS. Potarazu provided or caused to be provided false corporate income tax returns to some shareholders that overstated VitalSpring’s income and omitted the accruing employment tax liability.
In November 2014, Potarazu created a Special Review Committee (SRC) in response to a lawsuit filed in Delaware by shareholders that claimed Potarazu misled the victim investors about VitalSpring’s finances, the status of the impending sale, and Potarazu’s compensation. Potarazu provided the SRC with false financial records, fake tax returns, and fake bank statements to induce the SRC to believe that VitalSpring was financially healthy and to cause the SRC to make materially false representations to the Delaware court and victim investors. He also falsely represented that the alleged imminent sale would yield substantial returns to the shareholders, and used this to induce additional investments. Members of the SRC traveled interstate to the Eastern District of Virginia to attend meetings in which Potarazu presented false information for their review.
In truth, there was no imminent sale pending. Potarazu provided false financial records, including fake balance sheets, fabricated bank statements, and false tax returns, to several prospective buyers, financial advisors and investment banks. In December 2014, when he was questioned by Prospective Buyer 1 as to the accuracy and authenticity of bank records provided, Potarazu presented false or misleading emails purporting to be from a bank employee to bolster the legitimacy of the false bank records. Potarazu also presented Prospective Buyer 1 with a link to a fake website that was made to look like a website for a major national bank, and which referred Prospective Buyer 1 to VitalSpring’s false bank statements, and used a shadow, secondary email account assigned to a VitalSpring employee to provide false information to Prospective Buyer 1, thereby creating the appearance that Potarazu had not provided the information.
In October 2014, Prospective Buyer 2 informed Potarazu that it was no longer interested in VitalSpring. Nevertheless, Potarazu continued to represent to shareholders for months thereafter that there was a deal pending with Prospective Buyer 2. In March 2015 and February 2016, Potarazu organized, or caused to be organized, conference calls with shareholders to discuss the alleged sale. In advance of the calls, Potarazu obtained questions from the shareholders and used them to prepare the individual who posed as a representative of Prospective Buyer 2 for each call.
From 2011 to 2015, in addition to his salary paid by VitalSpring, Potarazu diverted at least $5 million from the victim investors and VitalSpring for his own personal use.
Employment Tax Fraud
Potarazu admitted that from 2007 to 2016, VitalSpring accrued employment tax liabilities of more than $7.5 million. Potarazu withheld taxes from VitalSpring employees’ wages, but failed to fully pay over the amounts withheld to the IRS. As CEO and President of VitalSpring, Potarazu was a “responsible person” obligated to collect, truthfully account for, and pay over VitalSpring’s employment taxes. Ultimate and final decision-making authority regarding VitalSpring’s business activities rested with Potarazu.
Potarazu was aware of the employment tax liability as early as 2007 and between 2007 and 2016, was frequently apprised of VitalSpring’s employment tax responsibilities by his employees. In addition, IRS special agents interviewed Potarazu in 2011 and informed him of the employment tax liability. In all but one quarter between the first quarter of 2007 and the last quarter of 2011, as well as the second and third quarters of 2015, Potarazu failed to file VitalSpring’s Employer’s Quarterly Federal Tax Return (Forms 941) with the IRS. Potarazu also failed to pay over any of the employment tax withheld from VitalSpring’s employees’ wages in all but one quarter between the second quarter of 2007 and the third quarter of 2011, as well as the third and fourth quarters of 2015.
Between 2008 and 2015, instead of paying over employment tax, Potarazu caused VitalSpring to make millions of dollars of expenditures, including thousands of dollars in transfers to himself and others, the publication of his book, “Get Off the Dime,” a sedan car service and travel.
In addition to the term of prison imposed, U.S. District Court Judge Gerald Bruce Lee ordered Potarazu to serve three years of supervised release, and to pay $49,511,169 in restitution to the shareholders and $7,691,071 to the IRS, and forfeiture of several homes, vehicles, and bank accounts. He was remanded into custody.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente commended special agents of IRS CI and the FBI, who conducted the investigation, and Assistant Chief Caryn Finley and Trial Attorney Jack Morgan of the Tax Division, and Assistant U.S. Attorney Jack Hanly, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Braddock Felon Charged with Illegally Possessing a FirearmRead the Press Release
PITTSBURGH – A resident of Braddock, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a violation of the federal firearms laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on July 18, named Laron Hollaman, 25, as the sole defendant.
According to the indictment, on May 6, 2017, Hollaman illegally possessed a firearm. Hollaman has previously been convicted of three felonies and is prohibited from possessing a firearm.
For possessing a firearm as a convicted felon, the law provides for a maximum sentence of up to 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history 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 Robinson Township Police Department conducted the investigation leading to the indictment in this case. Assistant United States Attorney Timothy Lanni is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bookkeeper Sentenced to Federal Prison for EmbezzlementRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Paul Wheeler (34, Tampa) to four years in federal prison for wire fraud. The Court also ordered him to forfeit $848,136.04, which is traceable to proceeds of the offense, and to pay restitution to his victims.
According to testimony and court documents, Wheeler, a bookkeeper, embezzled from six different employers over the course of 15 years. He diverted more than $840,000 from his various employers to bank accounts under his control. He subverted the internal controls of the companies to ultimately direct payments to himself. He also registered a number of fictitious names to conceal the diversions. Wheeler used most of the money for online gambling.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Belleville Man Charged with Theft of United States MailRead the Press Release
On July 18, 2017, a Belleville man was charged in a one-count indictment with Theft of Mail by a postal employee, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
David A. Ledbetter, age 37, of Belleville, Illinois was charged in a one-count indictment returned by a Federal Grand Jury in East St. Louis, Illinois with Theft of United States Mail by a postal employee. The indictment alleges that in May of 2017, Ledbetter stole items of mail entrusted to him for delivery.
The offense carries a maximum penalty of up to 5 years of imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is being conducted by the United States Postal Inspection Service, Office of the Inspector General. The Case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Attorney General Sessions Issues Policy and Guidelines on Federal Adoptions of Assets Seized by State or Local Law EnforcementRead the Press Release
Attorney General Jeff Sessions today announced a new Department of Justice policy (attached) regarding the federal adoption of assets seized by state or local law enforcement under state law.
The Department’s new policy strengthens the civil asset forfeiture program to better protect victims of crime and innocent property owners, while streamlining the process to more easily dismantle criminal and terrorist organizations.
The policy and guidelines were formulated after extensive consultation with the Task Force on Crime Reduction and Public Safety, as well as line Assistant United States Attorneys, career officials in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and career Main Justice attorneys.
In issuing this new policy, Attorney General Sessions made the following remarks to law enforcement officials:
“Good morning, and thank you all for being here. I especially want to thank our law enforcement partners like the Fraternal Order of Police, the National Sheriffs’ Association, the Major City Chiefs Association, the IACP, and so many others from all over the country who are here. Thank you for your service to this country and for keeping us all safe.
“As any of these law enforcement partners will tell you and as President Trump knows well, civil asset forfeiture is a key tool that helps law enforcement defund organized crime, take back ill-gotten gains, and prevent new crimes from being committed, and it weakens the criminals and the cartels. Even more importantly, it helps return property to the victims of crime. Civil asset forfeiture takes the material support of the criminals and instead makes it the material support of law enforcement, funding priorities like new vehicles, bulletproof vests, opioid overdose reversal kits, and better training. In departments across this country, funds that were once used to take lives are now being used to save lives.
“It also removes the instrumentalities of crimes, such as illegal firearms, ammunition, explosives and property associated with child pornography from criminals—preventing them from being able to use these tools in further criminal acts.
“President Trump has directed this Department of Justice to reduce crime in this country, and we will use every lawful tool that we have to do that. We will continue to encourage civil asset forfeiture whenever appropriate in order to hit organized crime in the wallet.
“At the same time, we must protect the rights of the people we serve. Law-abiding people whose property is used without their knowledge or without their consent should not be punished because of crimes that others have committed.
“Now, let me just say, in the vast majority of cases, this is not an issue. Our law enforcement officers do an incredible job. In fact, over the last decade, four out of five administrative civil asset forfeitures filed by federal law enforcement agencies were never challenged in court.
“Even so, we must take every precaution to protect the rights of claimants in that small minority of cases.
“And so today, the Department of Justice is issuing legal guidance that will clarify DOJ policy on the adoption of seized assets. It will return us to longstanding DOJ policy—and also provide additional, supplemental protections for law-abiding Americans. This will make us more effective at bankrupting organized criminals and at safeguarding the property of law-abiding Americans.
“Under today’s guidance, the federal government will not adopt seized property unless the state or local agency involved provides information demonstrating that the seizure was justified by probable cause. We will accomplish this through a new adoption form that state and local law enforcement must fill out before we will agree to adopt any property, which will include the necessary information to allow Department lawyers to carefully review and determine whether adoption is proper. Further, law enforcement agencies who wish to participate in the Department’s Equitable Sharing Program now must now provide their officers with enhanced training on asset forfeiture laws.
“The Department will adopt smaller seizures of cash—between $5,000 and $10,000—only if there exists some level of criminality or with the express concurrence of the U.S. Attorney’s office.
“When I was in the Senate, I worked with Senator Schumer to make modifications to the civil asset forfeiture program. We required probable cause for the seizure of property. And we raised the burden on the government, who has the initial burden in all of these cases, to the same preponderance of the evidence standard used in all civil cases. In addition, if the government lost the case, then the government pays attorneys’ fees. I believe those were good reforms that strengthened the program.
“Further, to better protect claimants, the Department will expedite the review of civil asset forfeiture cases. State and local law enforcement agencies requesting federal adoption must do so within 15 calendar days following the date of seizure. The adopting federal agency must then send notice to interested parties within 45 days of the date of seizure. This is twice as fast of a review as is required by statute. This streamlined process will ensure that people receive speedy resolutions of their cases, and that rightful owners will get their property back as soon as possible.
“In addition to these safeguards on federal adoptions, I am asking Department attorneys to proceed with an abundance of caution when handling all forfeitures involving vehicles and especially residences. I think that Department attorneys should think hard before they agree to forfeit these types of property, or waive any asset thresholds associated with them. Just like with cash seizures, if we operate this program in a careful and responsible way, something I believe the American people expect and deserve with a program such as this, the Department’s federal asset forfeiture program will be an effective tool, while at the same time protecting the rights of property owners.
“Finally, I am directing agencies and components adopting seized property to prioritize assets that will most effectively advance our overall goal of reducing violent crime. We need to send clear message that crime does not pay.
“This policy is effective immediately and applies to all new requests for adoption.
“With this new policy, the American people can be confident knowing that we are taking action to defund criminals and at the same time protecting the rights of law-abiding people.”
Artesia Man Pleads Guilty to Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Odis Levi Booher, 28, of Artesia, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to violating the federal firearms and drug trafficking laws. Under the terms of the plea agreement, Booher will be sentenced to ten years in prison followed by a term of supervised release to be determined by the court.
Booher was arrested on Nov. 15, 2016, on a criminal complaint charging him with committing firearms and methamphetamine trafficking offenses in Chaves County, N.M. According to the complaint, on Nov. 10, 2016, law enforcement agents found approximately 511.2 grams of methamphetamine, a handgun and $2,205 in cash while executing search warrants on Booher and his vehicle.
During yesterday’s proceedings, Booher pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute, possession of a handgun in relation to a drug trafficking crime, and being a felon in possession of a firearm. In entering the guilty plea, Booher admitted that on Nov. 10, 2016, he possessed the methamphetamine, firearm and ammunition found inside his truck by law enforcement officers. Booher acknowledged that on Nov. 10, 2016, he was prohibited from possessing firearms or ammunition because of his prior felony conviction for residential burglary. Booher remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chaves County Metro Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Alpine Man Sentenced to Federal Prison for Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine, a federal judge sentenced 59-year-old Karl Henry Peterson to 37 months in federal prison for setting the U.S. Post Office in Alpine ablaze last year announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
During yesterday’s sentencing hearing, United States District Judge David C. Guaderrama also ordered that Peterson pay $ 22,815.22 restitution and be placed on supervised release for a period of three years after completing his prison term.
On May 4, 2017, Peterson pleaded guilty to one count of arson involving a federal facility. By pleading guilty, Peterson admitted to setting fire to the U.S. Post Office during the early morning hours on October 12, 2016. As a result, the building suffered extensive damage.
The United States Postal Inspection Service, together with the Texas State Fire Marshal’s Office and the Alpine Police Department, investigated this case. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging SALVADOR MINA-GUZMAN, age 40, of Mexico with Illegal Reentry of a Deported Alien. He was apprehended in Wake County.
MINA-GUZMAN is alleged to have been previously deported four times from the United States and reentered without permission. If convicted, he would face a maximum imprisonment term of 2 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charge and allegation contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release
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Alabama Man Indicted in Alleged $19 Million Stolen Identity Refund Fraud SchemeRead the Press Release
A federal grand jury sitting in Montgomery, Alabama returned an indictment, which was unsealed today, charging a Phenix City, Alabama resident with conspiring to file fraudulent refund claims, mail fraud, wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney A. Clark Morris for the Middle District of Alabama.
According to the indictment, between November 2010 and December 2013, Anthony Gosha aka Boo Boo, and his co-conspirators used stolen IDs to file over 7,000 tax returns with the Internal Revenue Service (IRS) seeking more than $19 million in fraudulent refunds. The indictment alleges that Gosha obtained IDs of inmates from the Alabama Department of Corrections and that his co-conspirators obtained IDs from multiple sources, including an Alabama state agency. The indictment charges that they used these IDs to file the fraudulent tax returns. Gosha and his co-conspirators also allegedly obtained several Electronic Filing Identification Numbers in the names of sham tax preparation businesses in order to file the fraudulent returns and apply for tax refund-related bank products from financial institutions.
The indictment alleges that Gosha and his co-conspirators directed the IRS to issue the refunds to prepaid debit cards, U.S. Treasury checks and financial institutions. The indictment further alleges that Gosha and his co-conspirators recruited U.S. Postal Service employees to provide addresses on their mail routes to which the fraudulently obtained refund checks could be sent. According to the indictment, Gosha and his co-conspirators cashed the refund checks at several businesses in Alabama and Georgia.
If convicted, Gosha faces a statutory maximum sentence of 10 years in prison for the conspiracy count, a statutory maximum sentence of 20 years in prison for each count of wire and mail fraud and a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Morris commended special agents of IRS Criminal Investigation and the U.S. Postal Inspection Service, who conducted the investigation, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
27 Individuals Charged with Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico – On July 13, 2017, a federal grand jury in the District of Puerto Rico returned an indictment against 27 defendants charged with conspiracy to distribute controlled substances in the municipality of Utuado, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The DEA and the Puerto Rico Police Department (PRPD), Ponce Strike Force Unit, are in charge of the investigation, with the collaboration of the Special Investigations Bureau (Negociado de Investigaciones Especiales) and the Utuado District Attorney’s Office.
The indictment alleges that beginning in or about the year 2007, the organization distributed heroin, crack, cocaine, and marihuana, at the Fernando Luis García and the Jardines de Utuado Public Housing Projects in Utuado; and in other areas of southern Puerto Rico, including Ponce, all for significant financial gain and profit. The drug distribution points were located at the staircases of the public housing project buildings or at the central plaza of the public housing projects.
The 27 defendants acted in different roles in order to further the goals of their organization, to wit: leaders, drug point owners, enforcers, runners, sellers, and facilitators. Four defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. According to the indictment, defendants and their co-conspirators obtained state weapon licenses to facilitate the acquisition of firearms and ammunition that would ultimately be used by the members of the organization or sold illegally.
The defendants are: Hernán Cuevas-Olivero, a.k.a. “Gordo”; Jesús D. Benito-López, a.k.a “David/Benito”; Jonathan Tejada-Escobar, a.k.a. “Cuba/El Cubano”; Pierre M. Tejada-Escobar, a.k.a. “Pierre/El Cubano”; Alan J. Diaz-Feliciano; Myrelis Cuevas-Olivero, a.k.a. “Lela/La Gorda”; Jonathan González-Iguina, a.k.a. “Chupi”; Liboel Negrón-Diaz, a.k.a. “Libo”; Giovanny Acevedo-Maestre, a.k.a. “Mapen”; Reynaldo Vélez-Natal, a.k.a. “Rey Marcao”; Juan O. López-Collazo, a.k.a. “Orlandito”; Luis Méndez-Quiñones, a.k.a. “Méndez”; Christian H. Rivera-Rivera, a.k.a. “Albino”; Juan M. Rivera-Rivera, a.k.a. “Chilo”; Ángel D. González-Bauzá, a.k.a. “Guito”; Ángel M. Benítez-Perosa, a.k.a. “Negro”; Joshua Santiago-Maestre; Alejandro Guilbes-Nieves, a.k.a. “Jayu/Jayuya”; Ángel J. Alicea-Viruet, a.k.a. “APS”; Josué Candelario-Ramos, a.k.a. “Pocho”; José Franceschini-Lajara, a.k.a. “Pepe Franceschini”; José Reyes-Correa, a.k.a. “Bondo”; José A. Natal-Rodríguez, a.k.a. “Bimbi”; Frankie J. Afanador; Félix Ramos-Montes a.k.a. “Felo”; Reynaldo Cosme-Cordero, a.k.a. “Bebo Trinidad”; and Yolanda Olivero-Diaz.
The defendants and their co-conspirators provided shelter and protection to known fugitives in order to prevent their apprehension by law enforcement. They would often pay attorney’s fees and bail money for lower level members of the organization to prevent cooperation with law enforcement. Some defendants would conceal narcotics in packages that would be sent to the continental United States. They would also cash money orders received as payment for the controlled substances sold.
“One of our top priorities continues to be the disruption and dismantling of drug trafficking organizations, at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this joint operation, with the collaboration of our state counterparts, shows our commitment to keep drugs out of our neighborhoods.”
DEA Special Agent in Charge, Matthew Donahue, stated: “We will not let our guard down and we, as Federal law Enforcement officers, will continue to use all available resources and cooperation among the state and local police agencies to identify, investigate, and dismantle these criminal organizations. Violent drug trafficking organizations as this one threaten and affect our quality of life as residents of Puerto Rico. It's DEA’s mission to track these organizations both domestically and internationally, identify their members and Source of Supply and dismantle them. It’s never about the drugs alone; dirty money, firearms, violence, corruption and death are intricate to the presence of drug trafficking organizations in our society. DEA, along with ATF, FBI, HSI, PRPD and the Strike Forces, the USAO and any other pertinent agency, will continue to aggressively pursue these organizations and bring them to justice.”
“The Puerto Rico Department of Justice will continue its collaboration with federal law enforcement agencies and the U.S. Attorney’s Office in the investigation and prosecution of drug trafficking organizations. I commend the efforts of the agents in the Special Investigations Bureau (NIE) and the prosecutors in the Utuado District Attorney’s Office who participated in this investigation,” said Secretary of Justice Wanda Vázquez Garced.
“The Puerto Rico Police Department will continue to work with the federal authorities to achieve positive results like today. Our efforts will be redoubled to combat drug trafficking and those who want to continue polluting our youth; we will fight them with all the tools we have available,” said Police Superintendent Michelle Hernández de Fraley. “Congratulations to all state agents who collaborated in this operation, in conjunction with the DEA officers.”
Assistant U.S. Attorney María L. Montañez-Concepción is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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"Real Time": Greenville Man Sentenced as Armed Career Criminal to over 17 Years in Federal PrisonRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Michael Lee Westbrook, age 41, of Greenville, South Carolina, was sentenced Wednesday afternoon in federal court in Greenville, for felon in possession of a firearm, a violation of 18 U.S.C. 922(g). Due to his significant prior criminal history, Westbrook was classified as an Armed Career Criminal for sentencing purposes and was subject to a statutory mandatory minimum sentence of 15 years in federal prison. United States District Court Judge Timothy M. Cain sentenced Westbrook to 210 months in federal prison.
Evidence presented by the government during the guilty plea at a hearing earlier this year established that on September 3, 2016, members of the Greenville County Sheriff’s Office (GCSO) responded to a residence in Greenville in an attempt to locate and serve an arrest warrant on Westbrook. Upon their arrival, Westbrook was located in the back yard of the home and arrested. During a search incident to arrest, GCSO recovered a loaded .380 caliber pistol in Westbrook’s pants pocket.
Westbrook was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate. In addition to the GCSO and the ATF, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, FBI, DEA, the 13th Circuit Solicitor’s Office, and the US Attorney’s Office. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 118 defendants and seizure of approximately 162 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the ATF investigated the case. Assistant United States Attorney Max Cauthen prosecuted the case.
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18 July 2017
“King of Death” Dealer Pleads Guilty to Heroin and Fentanyl DistributionRead the Press Release
NORFOLK, Va. – A Norfolk man pleaded guilty today for his role in leading a drug trafficking conspiracy that resulted in more than a dozen overdoses and multiple deaths.
According to court documents, Erskine A. Dawson, 33, managed more than half a dozen individuals who sold between three and 10 kilograms of heroin from a motel off of Military Highway in Virginia Beach. Dawson’s source of supply, a New Jersey man named Kenneth Stuart, a/k/a “Bones,” used stuffed animals to conceal the narcotics as they were transported down the East Coast on commercial buses.
According to court documents, Dawson’s organization was known for its potent heroin and fentanyl, which was distributed in wax baggies stamped “King of Death,” “Last Call,” and “Steph Curry,” among many others. Dawson and his dealers knew that multiple individuals had overdosed and even died using the product, yet continued to sell it anyway.
According to the statement of facts filed with the plea agreement, after one heroin overdose death, Dawson called Stuart to inform him what had happened – and Stuart advised Dawson to continue selling the heroin, which he did. In December 2016, officers from Virginia Beach and Chesapeake Police Departments executed warrants on Dawson and his co-conspirators at two motels and recovered nearly 2,000 wax baggies containing heroin and fentanyl. In Dawson’s rooms, officers recovered multiple loaded firearms, a digital scale, several thousand dollars in cash, and a stuffed animal whose stitching had been pulled apart.
Dawson pleaded guilty to conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute heroin and fentanyl, distribution of fentanyl resulting in death, and possession of firearms during and in relation to a drug trafficking crime. Dawson faces a mandatory minimum sentence of 25 years and a maximum penalty of life in prison when he is sentenced on November 1.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; and Kelvin L. Wright, Chief of Chesapeake Police, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Daniel T. Young are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-61.
York Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Quan Leroy Gross, age 44, of York, Pennsylvania, pleaded guilty to possession of a firearm by a convicted felon before United States District Court Judge Sylvia H. Rambo.
According to United States Attorney Bruce D. Brandler, Gross admitted to possessing a loaded firearm while engaged in drug trafficking in York City. As a previously convicted felon, Gross is prohibited from possessing firearms.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Gross faces a mandatory minimum of fifteen years imprisonment. The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilmington Woman Arrested for Distribution of Heroin and Fentanyl That Resulted in DeathRead the Press Release
WILMINGTON – The United States Attorney for the Eastern District of North Carolina John Stuart Bruce announces that PORSCHE RENNE DILLARD was arrested yesterday, July 17, 2017.
DILLARD was named in an Indictment filed on April 27, 2017, charging her with distribution of a quantity of heroin and fentanyl resulting in serious bodily injury and death. If convicted, she would face a minimum term of imprisonment of 20 years and a maximum term of imprisonment of life, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case is being conducted by the Federal Bureau of Investigation’s (FBI’s) Coastal Carolina Criminal Enterprise Task Force, which is comprised of the FBI Charlotte Division’s Wilmington Resident Agency, the New Hanover County Sheriff’s Office, the Brunswick County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Wilmington Police Department. The New Hanover County District Attorney’s Office has also assisted in the investigation. Assistant United States Attorney Lawrence J. Cameron is representing the government.
Wilkes-Barre Man Sentenced to 262 Months’ Imprisonment for Drug Distribution Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alfred Yale, age 37, a resident of Wilkes-Barre, Pennsylvania was sentenced today by United States District Court Judge Robert D. Mariani to serve 262 months’ imprisonment for drug distribution resulting in death.
According to United States Attorney Bruce D. Brandler, Yale pleaded guilty in May 2016, to conspiracy to distribute and possession with intent to distribute heroin laced with fentanyl to a 20-year old man, who overdosed and died on June 3, 2015. A co-defendant, Michelle Beagle, pleaded guilty to the same charge in March 2016, and is awaiting sentencing.
The charges were the result of an investigation conducted by the South Abington Police Department and the Drug Enforcement Administration - Scranton office. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
In addition to the prison term, Judge Mariani also ordered that a probation officer supervise Yale for three years following his release from prison, and that Yale pay restitution in the amount of $8,174.13.
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Wichita Man Pleads Guilty to Federal Marijuana Trafficking ChargeRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty Tuesday to a federal marijuana trafficking charge, U.S. Attorney Tom Beall said.
Antoine Beasley, 37, Wichita Kan., pleaded guilty to one count of conspiracy to distribute marijuana and one count of unlawful possession of a firearm by a user of controlled substances.
In his plea, Beasley admitted that he and co-defendants were part of a drug trafficking organization that imported marijuana and distributed it to buyers in Wichita. Wichita police seized more than $250,000, checks and drug paraphernalia during a search of Beasley’s home. They also seized marijuana and a DPMS model A-15 rifle from a stash house Beasley controlled.
Beasley is set for sentencing Oct. 4. Both parties have agreed to recommend a sentence of 63 months in federal prison.
Co-defendants include:
Gerald Beasley, 62, Wichita, who is awaiting trial.
Charlotte Akogun, 55, Wichita, who is awaiting trial.
Carlos Beasley, 43, Wichita, who is awaiting trial.
Terry Beasley, 63, Wichita, who is awaiting trial.
Herbert Jones, 56, Wichita, who is awaiting trial.
Stephen Smallwood, 69, Wichita, who is awaiting trial.
Brandon Smith, 46, Wichita, who is awaiting trial.
Helen Beasley, 59, Wichita, who is set for sentencing Sept. 11.
Larry Reed, 58, Wichita, who was sentenced to 24 months.
Gerald Wilson, 46, Wichita, who is set for sentencing July 19.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal revenue Service, the Sedgwick County District Attorney’s Office, Assistant U.S. Attorney Debra Barnett and Assistant U.S. Attorney Michelle Jacobs for their work on the case.
West Bloomfield Pharmacist Pleads Guilty to Unlawful Distribution of Prescription Pills to Patient Who DiedRead the Press Release
A pharmacist, who formerly practiced in Mt. Clemens, pleaded guilty yesterday to unlawfully distributing prescription drug controlled substances to a patient who took the drugs and died, announced Acting United States Attorney Daniel Lemisch.
Lemisch was joined in the announcement by Special Agent in Charge Timothy Plancon, Drug Enforcement Administration, Detroit Field Division.
Richard Messerly, 72, of West Bloomfield, entered a guilty plea to one count of unlawful distribution of methadone and one count of unlawfully distributing Xanax (alprazolam), before United States District Judge George Caram Steeh.
During a hearing Messerly admitted that on November 9, 2015, he unlawfully provided a patient with both methadone and Xanax, without having a valid prescription for the drugs. The patient took the drugs and died later that same day. The government contends that the patient’s death was caused by the methadone unlawfully distributed by the defendant. Under the terms of the plea agreement, the defendant reserves the right to argue at sentencing that the patient’s death did not result from the methadone.
In addition, Messerly admitted responsibility in his plea agreement to unlawfully distributing over 60,000 dosage units of controlled drugs such as oxycodone, hydrocodone and morphine sulfate. All of these drugs are in the opiate class of drugs.
Based on his guilty plea Richard Messerly is facing a maximum of twenty-five years in prison and a fine of up to $1,250,000. The plea agreement projects that the advisory sentencing guidelines for his offenses will range from 108-135 months.
Sentencing of Masserly was set for November 20, 2017 at 2:30 pm.m..
The case was investigated by agents with the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Michael Heesters.
United States Attorney’s Office in Chicago Creates New Unit to Prosecute Criminal Health Care Fraud ViolationsRead the Press Release
CHICAGO — Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, today announced the creation of a new unit dedicated to the prosecution of criminal health care fraud violations.
The newly created Health Care Fraud Unit will operate within the office’s Criminal Division. The unit will be tasked with prosecuting defendants in all types of health care fraud, from providers who engage in fraudulent billing schemes to doctors who falsify patients’ diagnoses to justify expensive tests or procedures that aren’t medically necessary.
“Every year, health care fraud causes millions of dollars in losses to Medicare and private insurers,” said Acting U.S. Attorney Levin. “Health care fraud also often exploits patients through unnecessary or unsafe medical procedures. Health care providers who cheat the system must be held accountable. Our office has successfully prosecuted numerous health care fraud cases in recent years. The new Health Care Fraud Unit will build on that success and bring even greater focus, efficiency and impact to our efforts in this important area.”
The unit will include five prosecutors, led by Assistant U.S. Attorney Heather McShain. Assistant U.S. Attorney Stephen Chahn Lee will serve as the unit’s Senior Counsel.
The office has a long history of prosecuting significant health care fraud cases, and the new unit is expected to expand on those efforts. Last week the office participated in the largest health care fraud enforcement action in Department of Justice history. The national takedown involved more than 400 defendants, including 15 individuals charged in the Northern District of Illinois.
Other significant health care fraud prosecutions include a north suburban chiropractor and his brother and father, each of whom was sentenced to prison in connection with a phony billing scheme that bilked insurance carriers out of more than $10.8 million. DR. VLADIMIR GORDIN JR., VLADIMIR GORDIN SR. and ALEXSANDER GORDIN used their chiropractic clinic, Gordin Medical Center S.C., to falsely bill for medical services that were either not provided or weren’t medically necessary. The Gordins were sentenced to prison terms earlier this year. Vladimir Gordin Jr. was sentenced to seven years; Vladimir Gordin Sr. was sentenced to two and a half years; and Alexsander Gordin was sentenced to two years.
The office also recently secured ten criminal convictions as part of a multi-year investigation into Sacred Heart Hospital in Chicago. For more than a decade, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The fraud scheme earned Sacred Heart millions of dollars from Medicare and Medicaid. The convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, chief operating officers; DR. VENKATESWARA R. “V.R.” KUCHIPUDI, a physician; as well as four other physicians. Sacred Heart closed in 2013.
Fraud in the home health care and hospice industries have also been the subject of prosecutions, and the Health Care Fraud Unit will continue those efforts. The office’s investigation of home health care fraud has resulted in convictions of doctors, nurses, marketers, and executives at multiple companies, including DIKE AJIRI, the former owner of Chicago-based Mobile Doctors; BANIO KOROMA, a physician at Mobile Doctors; and DIANA JOCELYN GUMILA, the former clinical head of Schaumburg-based Doctor at Home. An investigation of PASSAGES HOSPICE in Lisle recently resulted in prison sentences for multiple defendants, including owner SETH GILLMAN, who was sentenced earlier this year to six and a half years in prison; and ANGELA ARMENTA, Passages’ former director of certified nursing assistants, who was sentenced last month to 20 months in prison.
The Health Care Fraud Unit will also focus on prosecutions related to the diversion of controlled substances, which is an area of emphasis for the office as it continues to battle the opioid crisis. The office has previously prosecuted significant diversion cases, including procuring the guilty plea of DR. SATHISH NARAYANAPPA BABU, who formerly owned Anik Life Sciences Medical Corp. in southwest suburban Darien. Dr. Babu prescribed controlled substances, including OxyContin and Hydrocodone, to certain patients without having examined them. Dr. Babu was sentenced in 2015 to 18 months in prison.
In announcing the new unit, Acting U.S. Attorney Levin acknowledged the cooperation and determination of the office’s investigative partners, including, among others, the Chicago offices of the Federal Bureau of Investigation, U.S. Department of Health and Human Services Office of Inspector General, U.S. Department of Labor’s Office of Inspector General, U.S. Food and Drug Administration, and U.S. Postal Inspection Service.
Two people convicted for their role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Two West Virginia residents were convicted today of their roles in a methamphetamine distribution operation, Acting United States Attorney Betsy Steinfeld Jividen announced.
June Catherine Blanchek, 37, of Petersburg, West Virginia pled guilty to one count of “Conspiracy to Distribute Methamphetamine.”
John Wayne Crites, 45, of Moorefield, West Virginia, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.”
Blanchek and Crites admitted to working with others to distribute more than 50 grams of crystal meth in Grant County between September 2014 and December 2016.
Blanchek and Crites each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The United States Postal Inspection Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Two Bronx Men Sentenced in Manhattan Federal Court to 37 and 35 Years in Prison for Shooting of Innocent BystanderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that KEVIN STERLING, a/k/a “Lion,” was sentenced to 37 years in prison and ALONZO VERNON, a/k/a “Zoe,” was sentenced to 35 years in prison today for the non-fatal shooting of a young woman who was an innocent bystander to a drug-related shooting, and for related crimes. They were each sentenced today in Manhattan federal court by U.S. District Court Judge Lewis A. Kaplan, who presided over a three-week jury trial in April 2017 at which STERLING and VERNON were convicted on all counts in the controlling indictment.
Acting U.S. Attorney Joon H. Kim said: “When a drug worker refused to pay a drug debt, Kevin Sterling and Alonzo Vernon hunted him down and Sterling shot at him, without any regard for his life or the lives of the innocent people nearby. One innocent bystander, a young woman in the wrong place at the wrong time, was shot and seriously injured, but thankfully lived. For their callous crimes, Sterling and Vernon will now serve lengthy prison sentences.”
According to the trial testimony and evidence as well as public court filings and statements made in connection with case:
STERLING and VERNON led a drug trafficking organization that brought crack cocaine and heroin from the Bronx to Ithaca, New York, to be sold at prices higher than the drugs would sell for in the Bronx. STERLING and VERNON recruited young men in the Bronx to sell drugs for them in Ithaca. Together with another member of the conspiracy, STERLING and VERNON provided drugs to their workers and collected their drug proceeds.
In about April or May 2015, VERNON informed one of their workers (“Victim-1”) that his money was “short” and that he owed more money. Victim-1 did not pay the claimed debt, and VERNON threatened to “f****[] him up” as a result.
On the night of May 31, 2016, STERLING saw Victim-1 on the street. VERNON and STERLING followed Victim-1 to the area of 219th Street and Willett Avenue in the Bronx in a car driven by VERNON. Victim-1 was on a porch with a group of friends. Next door, a young woman (“Victim-2”) was outside with her friends.
STERLING exited the car and pointed a gun at one of the group. Sterling shouted “where’s Melo?” – the street name used by Victim-1 – and shot once at Victim-1. He missed Victim-1 and hit Victim-2 in the elbow instead. The bullet shattered her elbow and entered her side. STERLING went back to the car, and VERNON drove him away. Victim-2 tried to run away and collapsed bleeding while her friend tied a tourniquet around her arm.
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STERLING, 38, and VERNON, 39, both of the Bronx, New York, were each convicted after trial of conspiring to distribute and possess with the intent to distribute 280 grams and more of crack cocaine and 100 grams and more of heroin; discharging a firearm in connection with that drug trafficking crime, and aiding and abetting the same; and being felons in possession of ammunition. In addition to their prison terms, STERLING and VERNON were each sentenced to 10 years of supervised release.
Mr. Kim praised the outstanding investigative work of the New York City Police Department and thanked the U.S. Marshals Service, the City of Ithaca Police Department, and the Cornell University Police Department for their assistance.
The prosecution of this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Drew Skinner and Justina Geraci are in charge of the case.
Taunton Man Sentenced to 18 Years for Child Enticement and Child Pornography ChargesRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for coercing and attempting to coerce seven minors into sending him sexually explicit images and for producing and distributing child pornography.
Joseph Debrum, 40, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 years in prison and seven years of supervised release after pleading guilty in April 2017 to seven counts of coercion and enticement of a minor, six counts of sexual exploitation of children, and two counts of distribution of child pornography.
Between May 2014 and March 2015, Debrum assumed fictitious online identities of a 21-year-old woman and a 16-year-old girl, which he used to coerce seven 13-16-year-old girls living in six states to send him sexually explicit photos of themselves over the internet. On some occasions, Debrum coerced victims to perform sexual acts live online while he watched and took photos of the screen on his cell phone. He also coerced them to take and email him photos of themselves performing sexual acts.
For 10 months, Debrum preyed on vulnerable teens by meeting them in specific online chatrooms, such as Kidzworld and Teenspot, as well as on Skype and Kik Messenger, where he feigned those identities by lying about his true age and gender to each of the victims during chats. He befriended them, learned personal details, and then threatened to expose what they told him in confidence if they did not acquiesce to his demands to pose nude or perform sexual acts on themselves for him to watch. Debrum referred to at least one girl as his “slave,” and as he accumulated more compromising material, he used it as leverage to coerce more sexual acts by issuing further threats, including telling one child he would kill her if she did not perform a sexual act for him.
Debrum also disseminated some of the sexually explicit photos of the minors over the internet. He sent photos of one victim to another victim, and sent pictures of a victim to that victim’s mother, telling her that he would expose her daughter unless the mother became his sex slave. The mother subsequently contacted law enforcement.
On April 2, 2015, Debrum was interviewed by law enforcement and admitted to assuming fictitious female identities while communicating online with the victims. He also admitted to asking them to take sexually explicit pictures and to perform specific sexual acts.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was provided by the Taunton Police Department and Loudon County, Va., Sheriff’s Office. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
South Bend Man Found Guilty After 2-Day Jury TrialRead the Press Release
SOUTH BEND – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Tyrone Miller, age 31, of South Bend, Indiana was convicted of being a felon in possession of a firearm, after a two-day jury trial before United States District Court Judge Robert L. Miller.
According to documents filed in this case, in February 2017, Tyrone Miller was in possession of a 9mm firearm with an extended magazine. Miller was previously convicted of a felony offense in St. Joseph County.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank E. Schaffer.
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Slater Man Sentenced to Prison for Child PornographyRead the Press Release
Columbia, South Carolina –------- United States Attorney, Beth Drake, announced that Timothy Greer, age 52, of Slater, South Carolina, was sentenced yesterday to serve 36 months in federal prison for Possession of Child Pornography in violation of Title 18, United States Code, Section 2252A(a)(5)(B). The sentence was imposed by United States District Judge J. Michelle Childs, who also ordered that Greer be placed on supervised release for life. Judge Childs ordered as a condition of supervised release that Greer have his computer usage monitored and that he be placed on the Sexual Offender Registry.
U.S. Attorney Drake advised that Greer’s personal computer was searched and over 35,000 pornographic images of children were found. Many of these were of prepubescent children and some were sadistic in nature. Drake went on to say that there was no evidence that Greer was involved in manufacturing any of these images, rather he had obtained them from the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Jamie Schoen and David C. Stephens of the Greenville Office.
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Shawano Man Sentenced to 10 Years in Prison for Child Sexual Abuse on the Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on July 18, 2017, William Wilber IV (age: 35) of Shawano, Wisconsin, was sentenced to two concurrent terms of 10 years of imprisonment, followed by a 10-year term of supervised release. The sentence was the result of guilty pleas by Wilber on April 6, 2017 to two counts of Sexual Abuse of a Minor Under the Age of 16.
The investigation revealed that in May 2015, Wilber, engaged in a sex act with a then-13-year old girl at a location outside Keshena near Legend Lake on the Menominee Indian Reservation. Further investigation revealed that on or about July 4, 2016, Wilber engaged in a sex act with a then-14-year old girl near the same location. Law enforcement officials interviewed Wilber, who admitted sexually assaulting the victims. Additional investigation and interviews revealed several other occasions where Wilber took sexually inappropriate actions toward underage girls.
In sentencing Wilber, Chief United States District Judge William C. Griesbach pointed out the history of similar conduct by the defendant “preying” on underage girls. Chief Judge Griesbach referred to the defendant’s use of alcohol as a tool to overcome the resistance of the juvenile victims, and as a method by which the defendant rationalized his behavior. Chief Judge Griesbach noted the impact the defendant’s actions had on the victims, as well as a juvenile relative of the defendant who was present during some of the assaults.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation, with significant assistance from the Willow Tree Cornerstone Child Advocacy Center in Green Bay. The case was prosecuted by Assistant United States Attorney Andrew J. Maier.
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San Ildefonso Pueblo Man Pleads Guilty to Assaulting a Federal OfficerRead the Press Release
ALBUQUERQUE – Jordan Roybal, 25, an enrolled member of the San Ildefonso Pueblo who resides in San Felipe Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Roybal was arrested on March 3, 2017, on a criminal complaint charging him with assaulting a federal officer. According to the criminal complaint, Roybal was arrested on tribal charges on Nov. 21, 2016, after he assaulted a law enforcement officer of the Bureau of Indian Affairs (BIA). Roybal committed the assault on San Ildefonso Pueblo in Santa Fe County, N.M., by resisting arrest and challenging the officer to fight. During the assault, Roybal bit the officer on the wrist. The officer also sustained skinned knees, a scrape on his left hand, swelling of his right knee and soreness to his left wrist as the result of the assault.
Roybal was subsequently charged in a two-count indictment on March 28, 2017, with assaulting a federal officer on Nov. 21, 2016 in Santa Fe County, and assaulting a federal officer on Jan. 26, 2017, in Rio Arriba County, N.M.
During today’s proceedings, Roybal pled guilty to Count 1 of the indictment charging him with assaulting a federal officer. In entering the guilty plea, Roybal admitted that on Nov. 21, 2016, he assaulted a BIA officer while the officer was attempting to arrest him on tribal offenses by lying about his identity, cursing at the officer, resisting arrest, throwing his elbow into the officer, biting the officer, and verbally threatening the officer.
At sentencing, Roybal faces a maximum penalty of 20 years in federal prison. Roybal remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the Northern Pueblos Agency of the BIA’s Office of Justice Services. Assistant U.S. Attorney Elisa Dimas is prosecuting the case.
Safeway Pharmacies Pay $3 Million to Resolve Allegations Chain Failed to Timely Report Drug DiversionRead the Press Release
The Department of Justice and Safeway (a division of Albertson’s Companies, Inc.) have reached a civil settlement of allegations the company failed to timely report controlled substances that were missing from pharmacies, announced U.S. Attorney Annette L. Hayes. Safeway will pay the United States $3 million and implement a compliance agreement reached with the Drug Enforcement Administration (DEA) to ensure such notification lapses do not happen again.
“As our community struggles with an epidemic of opioid abuse, we call on all participants in drug distribution to carefully monitor their practices to stem the flow of narcotics to those who should not have them,” said U.S. Attorney Annette L. Hayes. “Pharmacies have a key role to play in making sure only those with legitimate prescriptions receive these powerful and potentially addictive drugs, including by timely reporting losses of those drugs. Failure to do so hamstrings DEA’s investigative abilities and frustrates some of our best methods at curbing abuse.”
According to the settlement agreement, the investigation began in April 2014, when the DEA learned that Safeway pharmacies in North Bend, Washington and Wasilla, Alaska did not notify DEA of losses of tens of thousands of hydrocodone tablets until months after Safeway discovered the pills were pilfered by employees. DOJ’s investigation was later widened to review practices at all Safeway pharmacies nationwide between 2009 and 2014. The investigation revealed a widespread practice of Safeway pharmacies failing to timely report missing or stolen controlled substances. Today’s settlement resolves the allegations with Safeway acknowledging and accepting responsibility for failing to report the missing medications in a timely fashion.
DEA Special Agent in Charge Keith Weis was pleased with the settlement adding, “At this crucial juncture in our efforts to combat abuses of prescription drugs, it is imperative that pharmacies notify DEA immediately when drugs are stolen or missing. A quick response to such reports is one of the best tools DEA has in stopping prescription drug diversion.”
By law, pharmacies and other drug providers are required to notify the appropriate Field Division of the DEA of the theft or significant loss of any controlled substance within one business day of the discovery of the theft or loss.
This is the third DOJ settlement in the last year in the Western District of Washington involving lax pharmacy controls and inconsistent adherence to DEA requirements. In January 2017, DOJ reached an $11.75 million settlement with Costco and in July 2016 DOJ reached a settlement with Seattle Cancer Care Alliance over pharmacy control failures.
The case was investigated by the DEA’s Seattle Field Office, DEA’s Drug Diversion and Regulatory Litigation Section and the U.S. Attorney’s Office for the Western District of Washington. The settlement agreement was negotiated by Assistant United States Attorney Christina Fogg.
Roswell Woman Indicted on Federal Charges for Counterfeit Oxycodone Pills Containing Fentanyl and Synthetic OpioidsRead the Press Release
ATLANTA - Cathine Lavina Sellers of Roswell, Georgia, has been arraigned on federal charges of possession with the intent to distribute fentanyl, and two synthetic opioids, furanyl-fentanyl and U-47700. A search warrant affidavit in the case alleges that Sellers was selling counterfeit 30mg Roxicodone (oxycodone) pills out of her residence in Roswell.
In conjunction with this arrest, the U.S. Attorney’s Office and Atlanta DEA are issuing a public warning regarding these counterfeit pills through their public affairs offices as well as through the North Georgia Heroin Working Group, https://www.justice.gov/usao-ndga/heroinopioid-working-group. A similar warning was issued just last month when fake Percocet pills caused numerous overdoses in the Macon, Georgia area. Five overdose deaths have been linked to the fake Percocet pills.
“This defendant allegedly sold counterfeit pills that were deliberately designed to look like normal Roxicodone tablets when they were actually laced with fentanyl and two synthetic opioids,” said U. S. Attorney John Horn. “These pills are especially dangerous because they may be more than 50 times more potent than normal oxycodone. Anyone who consumes these pills faces a substantially higher risk of overdose.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Combating the explosion of synthetic drugs continue to be one of DEA’s top priorities. Substances like U-47700, also known as “Pink,” which is a synthetic opioid 7.5 times stronger than morphine, continues to wreak havoc on our society. DEA will continue to work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to bring dangerous ‘pill pushers’ to justice.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: On June 13, 2017, Sellers allegedly sold approximately 100 pills for $1,400 in cash from her Roswell townhouse to a confidential source working with the DEA. A field test of the pills was positive for the presence of furanyl-fentanyl, which is an analog of fentanyl, similar to morphine but more potent.
Later that night, DEA agents searched Sellers's home and retrieved the money from the earlier transaction. There, DEA agents found more pills, similar to those purchased, which also contained furanyl-fentanyl, concealed in a dietary supplement bottle. Agents also found a loaded Glock handgun and two magazines. DEA agents arrested Sellers that night.
An affidavit submitted by a Sandy Springs Police officer, who is sworn as a DEA task force officer, recounts a conversation between Sellers and the confidential source during which Sellers acknowledged that the counterfeit pills contained fentanyl. Sellers said that several customers had returned the counterfeit pills because they were too strong, but later came back to get the pills.
investigation revealed that Sellers and her boyfriend have been selling the counterfeit pills for some time before DEA arrested her. The counterfeit pills are described as similar in appearance to a legitimate 30mg Roxicodone tablet, except that they are a slightly lighter color of blue than the regular pills.
Cathine Lavina Sellers, 38, of Roswell, Georgia, is charged with possession with the intent to distribute a controlled substance, involving fentanyl, a Schedule II controlled substance, and furanyl-fentanyl and U-47700, both of which were designated by DEA as a Schedule I controlled substance on an emergency basis in 2016. Sellers was indicted by a federal grand jury on July 11, 2017.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration together with the Sandy Springs Police Department.
Assistant U.S. Attorney John DeGenova is prosecuting the case.
The U.S. Attorney’s Office in Atlanta has convened a regional working group to address the threats from opioid abuse and addiction, and more information about the working group can be found at https://www.justice.gov/usao-ndga/heroinopioid-working-group and https://www.facebook.com/NDGAHWG . The U.S. Attorney’s Office further recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Roswell Man Sentenced to Ten Years for Drug Trafficking Conviction and Violating Supervised Release ConditionsRead the Press Release
ALBUQUERQUE – Richard G. Thyberg, 28, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison followed by four years of supervised release for his conviction on heroin and methamphetamine trafficking charges and for violating the conditions of his supervised release on a prior conviction.
Thyberg was arrested on Nov. 4, 2016, on a criminal complaint charging him methamphetamine and heroin trafficking offenses in Chaves County, N.M. According to the complaint, Thyberg sold 15.4 grams of methamphetamine to an individual working with law enforcement on May 18, 2016. The complaint further alleges that on June 28, 2016, law enforcement agents found 319.4 grams of methamphetamine, 91.5 grams of heroin, Suboxone strips, marijuana, $4,033.95 in cash, and drug paraphernalia inside Thyberg’s vehicle while executing a search warrant. At the time of the offenses, Thyberg was on supervised release for a federal conviction in 2009.
On March 8, 2017, Thyberg pled guilty to a felony information charging him with possession of methamphetamine and heroin with intent to distribute and violating the terms of his supervised release for his prior conviction. In entering the guilty plea, Thyberg admitted that on June 28, 2016, he possessed the methamphetamine and heroin officers found in his vehicle, and that he intended to sell the drugs to others. Thyberg also admitted violating the conditions of his supervised release, which included prohibitions against committing another federal, state or local crime and unlawfully possessing a controlled substance by possessing methamphetamine and heroin with the intent to distribute on June 28, 2016.
This case was investigated by the HIDTA Chaves County Metro Narcotics Task Force which is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
This case was prosecuted by Assistant U.S. Attorney Selesia Winston of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Rochester Man Sentenced on Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zaylik Harrison, 21, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 135 months in prison and eight years supervised by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that between September 30, 2016, and October 6, 2016, Harrison recruited a teenaged girl to engage in commercial sex acts at the Gates Motel, on Buffalo Road in Gates, NY. The defendant then posted advertisements for the minor on Backpage.com. Harrison rented rooms in the motel where the victim was forced to engage in prostitution activities over several days with adult males. The defendant kept the proceeds of those activities.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; and the Erie County District Attorney’s Office, under the direction of John Flynn.