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Thursday 25 May 2017
Ohio Man Who Enticed a Colorado Minor Victim in an Attempt to Produce Child Pornography Sentenced to Lengthy Prison TermRead the Press Release
DENVER – Rande Brian Isabella, age 60, of Hubbard, Ohio, was sentenced late yesterday by U.S. District Court Judge Christine M. Arguello to serve 216 months (18 years) in federal prison, followed by 20 years on supervised release for one count of coercion and enticement of a minor and one count of attempted production of child pornography, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Eisert announced. The defendant who appeared at the sentencing hearing in custody, was remanded at its conclusion.
Isabella was indicted by a federal grand jury on May 20, 2014. On October 7, 2016 the defendant was convicted of coercion and enticement of a minor and one count of attempted production of child pornography following a 11 day jury trial. The jury acquitted the defendant on two other charges. He was sentenced on May 24, 2017.
According to the facts presented at trial, between September and December 2013, Isabella communicated via phone and online with a 14 year-old girl in Colorado. Through these communications, he misrepresented his age to her and repeatedly asked for pictures of her as their conversations became increasingly sexual in nature. Ultimately, he was able to persuade her to send him a naked photograph of herself. Isabella told the minor girl that he was her boyfriend and asked her to stay with him if he traveled to Colorado. He sent her a photograph of his own genitalia, encouraging her to respond in kind. She did send him more pictures of herself, some sexual in nature, before she lost her phone. The minor girl’s mother found her phone and discovered these conversations with Isabella. She sought the help of law enforcement, and HSI began investigating the defendant’s online activities.
During the course of the investigation, federal agents determined Isabella’s identity and address. A search warrant was then obtained and executed at his home in Ohio. Agents seized his phone and two of his computers. On his phone, they found the communications with the minor girl and photographs of her that he had saved. On his computer, a forensic analyst found that Isabella had Googled the minor girl shortly after they began communicating and that he had visited her Facebook profile, looking at her friends and photos. He also visited three different website pages which showed that the minor girl had competed in 2012 in middle school track races. After viewing those pages, Isabella continued to communicate with the minor girl and saved to his phone the nude image she sent him. Evidence was also introduced at the trial and at the sentencing hearing that Isabella had communicated with three additional minor females and was in possession of nude images of those minors.
“These folks are the worst kind of predators,” said Acting U.S. Attorney Bob Troyer. “But thanks to HSI and our elite prosecutors, they learn as Mr. Isabella did that there are another class of predators above them in the food chain.”
“The prison sentences for those who produce child pornography are appropriately lengthy, such as this 18-year federal prison sentence for Rande Isabella,” said John Eisert, acting special agent in charge of HSI Denver. “HSI has a very active Operation Predator program to identify and investigate those who sexually exploit children, and to rescue the victims of these predators.”
This case was investigated by HSI. The defendant was prosecuted by Assistant U.S. Attorneys Alecia Riewerts and Celeste Rangel.
Nottingham, PA Man Charged with Illegal Reentry After DeportationRead the Press Release
Luis Enrique Rueda-Barcenas, a/k/a “Luis Rueda,” of Nottingham, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 3, 2017, Rueda-Barcenas, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 6, 2004 and March 24, 2005.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was jointly investigated by Homeland Security Investigations (“HSI”) and Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Murfreesboro Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Melissa Sue Baker, 39, of Murfreesboro Tenn., pleaded guilty today in U.S. District Court, to two counts of tax evasion, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Baker owned and operated Ascendant, a payroll processing and employee-leasing company in Murfreesboro, Tennessee. According to the plea agreement, Baker admitted that from January 2011 through December 2012, she collected but failed to pay over employment taxes on behalf of her clients and Ascendant’s employees. Baker also admitted that, while she provided her clients at times, with accurate employment tax returns, she deliberately chose not to file the accurate tax returns with the IRS. Instead, Baker filed false forms with the IRS that underreported wages, withholdings, and Social Security and Medicare taxes. Baker further admitted that she diverted employment taxes for her own personal use.
Baker faces a statutory maximum sentence of five years in prison for each tax evasion conviction, as well as a period of supervised release, restitution, and monetary penalties, when she is sentenced on August 30, 2017.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould is prosecuting the case on behalf of the United States.
Mountain View Resident Charged with Production of Child Pornography and CyberstalkingRead the Press Release
SAN JOSE - Grant Ridder was arraigned yesterday on federal charges of production of child pornography, distribution and possession of child pornography, cyberstalking, and coercion and enticement of a minor, announced United States Attorney Brian J. Stretch and United States Secret Service Assistant Special Agent in Charge Philip A. Pesavento. The arraignment follows an indictment handed down by a federal grand jury on May 18, 2017.
Ridder, 26, is a resident of Mountain View. According to a search warrant filed publicly in the case, law enforcement agents began investigating Ridder after a minor victim, 16, reported that her Facebook account had been accessed without her consent and sexually explicit photographs of her had been posted on her Facebook page. An investigation determined that Ridder owned the IP address that accessed the victim’s account when the photographs were being posted. The minor victim had recently ended a relationship with Ridder.
The search warrant also identifies a second minor victim. The second victim, 13, reported that Ridder requested that she send him sexually explicit photographs of herself. When she refused, Ridder told her that he would show her mother other photographs the victim had previously sent to him depicting the victim in a state of undress. According to the search warrant, the victim reported that she “became scared” and took several sexually explicit photographs and sent them to Ridder. According to the warrant, Ridder admitted in an interview with law enforcement that he distributed the sexually explicit photographs to others.
In the indictment, Ridder is charged with two counts of production of child pornography, in violation of 18 U.S.C. § 2251(a); three counts of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2); one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B); three counts of cyberstalking, in violation of 18 U.S.C. § 2261A; and one count of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b).
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of violating 18 U.S.C. § 2251(a), the defendant faces a mandatory minimum prison sentence of 15 years, a maximum sentence of 30 years, and a fine of $250,000 plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2252(a)(2), the defendant faces a mandatory minimum prison sentence of 5 years, a maximum sentence of 20 years, and a fine of $250,000 plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2252(a)(4)(B), the defendant faces a maximum prison sentence of 10 years and a fine of $250,000, plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2261A(2), the defendant faces a maximum prison sentence of 5 years and a fine of $250,000 plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2422(b), the defendant faces a mandatory minimum prison sentence of 10 years, a maximum sentence of life, and a fine of $250,000 plus restitution, if appropriate. Additional fines and a term of supervised release also may be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ridder was arrested and remanded to the custody of the U.S. Marshal on May 24, 2017. His next court appearance is scheduled for 1:30 p.m. on May 31, 2017, before United States Magistrate Judge Nathanael Cousins for a hearing to determine whether he should be released or remain in custody pending trial.
Assistant U.S. Attorney Maia Perez is prosecuting the case. The prosecution is the result of an investigation by the United States Secret Service, the Contra Costa District Attorney’s Office, the Stockton Police Department, and the Martinez Police Department.
Mother and Daughter Tax Return Preparers Indicted in Fraud ConspiracyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a mother and daughter who ran a tax-preparation business in Sumter County for a conspiracy to defraud the IRS, announced Acting U.S. Attorney Robert O. Posey and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey.
A 20-count indictment filed in U.S. District Court charges KATIE TOMEKO GREEN-HORN, 38, owner of Katie’s Tax Service in York, and her mother, SANDRA LENORA GREEN, 60, who worked at the tax business, with conspiring to defraud the United States between January 2011 and April 2014 by obstructing the IRS in its collection of income taxes.
The defendants repeatedly prepared fraudulent tax returns for clients by claiming false education and residential energy credits, false business losses and inflated business expenses, according to the indictment. The fraudulent deductions boosted refund amounts, thereby increasing KTS’s clients and preparation fees, the indictment says.
It also charges Green-Horn with three counts of making a false return on her own tax forms for the calendar years 2011 through 2013 by not disclosing income from her tax business, which she was legally required to do as its sole proprietor. The indictment charges that Green-Horn knowingly omitted nearly $700,000 in personal income from KTS over those three years.
The indictment further charges Green-Horn with seven counts of assisting in preparing and presenting false returns for clients by including fraudulent credits and deductions on their tax forms.
The indictment charges Green with nine counts of assisting in preparing and presenting false returns for including the fraudulent credits and deductions.
The maximum penalty for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for submitting false returns and for assisting in preparing and presenting false returns is three years in prison and a $100,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney Melissa Atwood is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Mexican National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MOISES ESQUIVEL-RIOS, age 34, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
U.S. District Judge Jane Triche Milazzo sentenced ESQUIVEL-RIOS to time served. ESQUIVEL-RIOS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, ESQUIVEL-RIOS reentered the United States on or about March 16, 2017, after having been previously removed on December 24, 2011.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Otoniel Perez-Gonzalez, age 29, and a citizen of Mexico, pled guilty yesterday to illegal re-entry into the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Perez-Gonzalez was removed from the United States to Mexico on three prior occasions, the most recent removal occurring on March 8, 2009. On April 27, 2017, he was a passenger in a minivan that was stopped by Border Patrol in Ellenburg, New York. A fingerprint check of Perez-Gonzalez resulted in the discovery of the prior removals.
Aa result of his conviction, Perez-Gonzalez faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior U.S. District Court Judge Thomas J. McAvoy on August 16, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Merrillville Man Sentenced to 27 Months ImprisonmentRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Terry Kilburn, 34, of Merrillville, Indiana was sentenced before District Court Judge Joseph S. Van Bokkelen for being a felon in possession of a firearm.
Kilburn was sentenced to 27 months imprisonment followed by 2 years of supervised release.
According to documents in this case, on the morning of February 22, 2015 Merrillville Police responded to a dispatch regarding a male shooting a shotgun in the yard of a residence in Merrillville, Indiana. Police responded to the residence of Kilburn and recovered a sawed off shotgun -- measuring approximately 14.5 inches. Twenty four (24) shotgun shells and a few spent shells were recovered. When interviewed by law enforcement, Kilburn stated that he had purchased the firearm a week before the incident in the sawed off condition. Kilburn has a prior felony conviction for theft through Lake County, Indiana in 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Merrillville Police Department. This case was handled by Assistant United States Attorney Dean R. Lanter.
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Meriden Man Sentenced to 37 Months in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JULIUS NELSON, 32, of Meriden, was sentenced yesterday by Senior U.S. District Judge Alfred V. Covello in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department that targeted a drug trafficking organization operating in Hartford’s North End that was distributing crack and powder cocaine. The investigation revealed that David Gil-Grande, of Manchester, received shipments of cocaine, secreted in sealed coffee cans, from Puerto Rico. He then supplied the cocaine to Anthony Shelton, also known as “Pretty,” and others, who converted much of the cocaine into crack and distributed both forms of the drug in the area of Barbour Street in Hartford. Shelton supplied crack to NELSON who then sold the drug to his own customers.
Twenty individuals were charged as a result of the investigation.
NELSON was arrested on February 2, 2016. On February 7, 2017, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack cocaine”).
NELSON’s criminal history includes convictions for felony assault, conspiracy to commit robbery, and multiple convictions for selling drugs.
Gil-Grande and Shelton have pleaded guilty to related charges. On January 31, 2017, Gil-Grande was sentenced to 70 months of imprisonment. Shelton awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and the Drug Enforcement Administration have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Manhattan U.S. Attorney Announces Charges Against Operator of Online Retailer for Running Fraudulent Eyewear WebsiteRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the arrest of VITALY BORKER, the operator of “OpticsFast.com,” an online retailer of purported designer eyewear. BORKER was arrested pursuant to a complaint charging him with mail and wire fraud in connection with a scheme to defraud unsuspecting customers by misrepresenting the authenticity and condition of eyeglasses sold through the website, and to harass customers who complained or attempted to return their purchases. BORKER was arrested this morning and will be presented later today before the Honorable Ronald L. Ellis.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Vitaly Borker ran his eyewear business, OpticsFast.com, as an online platform for fraud, selling defective and counterfeit merchandise. And as alleged, when his customers rightfully complained or tried to get their money back, Borker harassed and abused them. Borker’s shameless brand of alleged abuse cannot be tolerated, and we are committed to protecting consumers from becoming victims of such criminal behavior. We thank our partners at the U.S. Postal Inspection Service for their shared commitment to this mission.”
USPIS Inspector in Charge Philip R. Bartlett said: “As the adage goes, what goes around comes around - Mr. Borker took this to the extreme when he allegedly devised his fraud scheme to cheat consumers attempting to purchase eyewear. His cool shades couldn’t shield him from the bright light of law enforcement who illuminated his alleged illicit scheme. He should have realized he could never outwit Postal Inspectors.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
BORKER operates the eyewear website “OpticsFast.com” that purported to sell “brand new and 100% authentic” luxury eyewear, and that advertised itself as “the planet’s biggest online website for designer discount sunglasses and eyeglasses.” But customers of OpticsFast.com frequently received damaged and counterfeit items, were refused refunds, charged unauthorized restocking fees, or never sent eyewear for which they had been charged. When those customers tried to return merchandise, BORKER, using an alias, subjected them to a campaign of abusive emails and text messages. BORKER also insulted customers, called them names, and threatened to refer disputed sales to debt collectors.
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BORKER, 41, of Brooklyn, New York, is charged with mail fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Acting U.S. Attorney Kim praised the efforts of the USPIS in this case. He added that the investigation is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Nicolas Landsman-Roos and Danielle R. Sassoon are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Man Sentenced to 13 Years for Drugging and Prostituting a MinorRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 13 years in prison for drugging and prostituting a 14-year-old girl.
Joshua Manuel Treat, 20, pleaded guilty to sex trafficking of children on February 24. According to the statement of facts filed with the plea agreement, from September 26 to Oct. 12, 2016, Treat posted Jane Doe, a 14-year-old girl, on an Internet website and advertised her for prostitution. In order to make Jane Doe more amenable to prostitution, Treat would inject Jane Doe with heroin prior to her appointments with customers. When Treat was arrested, he was found with a handgun and a syringe containing heroin residue.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
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. 2:16-cr-172.
Man Sentenced for Recruiting Homeless to Cash Counterfeit ChecksRead the Press Release
NEWPORT NEWS, Va. – An Atlanta man who recruited individuals from local homeless shelters to cash counterfeit business checks was sentenced yesterday to 75 months in prison.
Yumahnn Quashawn Brown, 30, pleaded guilty to conspiracy to commit bank and mail fraud, and aggravated identity theft on February 23. According to the statement of facts, Brown traveled from Georgia to Virginia and other states several times between August 2015 and August 2016. The purpose of those trips was to steal mail, including business checks, from industrial parks and to cash counterfeit checks that were made using the stolen checks as templates. During these trips, Brown traveled to homeless shelters, where he solicited individuals to perform construction and other day jobs. Brown and the conspirators he was traveling with then provided the individuals with clothing, food, cigarettes, and alcohol while transporting them to the other areas, often more than an hour away from their respective shelters. During these trips, Brown sent information about the recruited individuals to conspirators traveling in other cars for use in the creation of counterfeit checks. Upon arrival in the targeted areas, Brown presented the homeless recruits with the counterfeit checks and directed them to cash those checks at nearby banks. In Virginia alone, Brown caused 30 homeless people to cash 70 counterfeit checks drawn on accounts belonging to 29 businesses. The total value of these counterfeit checks was nearly $160,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-75.
Local Man Pleads Guilty to Posing as a Purple Heart AwardeeRead the Press Release
Mark Chartrand, 46, of St. Louis pleaded guilty to one count of violation of the Stolen Valor Act for posing as a purple heart awardee. Chartrand pleaded guilty before Judge Henry E. Autrey who accepted his plea and set his sentencing for August 22, 2017. Chartrand will remain in custody until sentencing.
According to the plea agreement, Chartrand traveled from Missouri to California and, while there, convinced his AirBNB hosts to extend him credit and lend him money based in part of his distinguished military service and numerous awards and medals including a Purple Heart. Chartrand traveled under the false name “Mark Rhodes.”
Chartrand is a prior federal offender, having sustained a conviction for impersonating a federal officer in 2012 and convincing his then girlfriend to lend him money based on his status as an American intelligence officer. Chartrand faces up to one-year imprisonment, a fine of $100,000 or both. Restitution to the victims is also mandatory.
The case was investigated by the U.S. Secret Service and the U.S. Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service.
Leominster Man Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Leominster man pleaded guilty today in federal court in Worcester in connection with his role in a drug trafficking conspiracy.
Felix Melendez, 41, pleaded guilty before U.S. District Court Judge Timothy S. Hillman and is scheduled to be sentenced on Sept. 15, 2017. Melendez is the final of five co-defendants to plead guilty this month to conspiracy to distribute heroin and cocaine in Worcester County.
Osvaldo Vasquez, 49, of Worcester; Jose Federico Vasquez, 55, a Dominican national residing in Providence, R.I.; Elvis Genao, 27, of Fitchburg; and Hugo Santana-Dones, a/k/a Raphael Ventura, 43, a Dominican national residing in Leominster, all recently pleaded guilty to their involvement in the conspiracy and will be sentenced in August and September 2017.
In the late summer of 2014, federal agents began investigating narcotics trafficking activities by Osvaldo Vasquez and his associates, Federico Vasquez, Melendez, Genao, and Santana-Dones. Between November 2014 and July 2015, with the help of a cooperating witness, agents made numerous recorded purchases of heroin - sometimes laced with fentanyl - from members of the conspiracy, seizing over 400 grams of heroin as a result.
During a court-authorized wiretap, Vasquez and his co-defendants were heard discussing the purchase and sale of multiple kilograms of narcotics and demonstrated an awareness of the potential deadly consequences of the narcotics they were distributing. On May 7, 2016, Osvaldo Vasquez, Melendez, and Federico Vasquez were intercepted discussing how the high number of heroin overdose deaths occurring at the time were cutting into their sales.
In August 2015, federal agents executed a search warrant at the conspirators’ homes. At Osvaldo Vasquez’s home in Worcester, agents found 679 grams of heroin and 723 grams of cocaine, as well as a Taurus PT .380 semi-automatic handgun. The telephone that was the subject of the wiretap, cutting tools, and over $7,000 in cash was also recovered in the home. At the residence of Santana-Dones in Leominster, agents found 224 grams of heroin, 110 grams of cocaine, and 8.9 grams of cocaine base (crack cocaine), along with cutting tools, a hydraulic kilogram press, over $1,300 in cash, and two phones that had been intercepted on the wiretap. At the residence of Melendez, who was on parole for state firearm and narcotics charges at the time, 3.1 grams of cocaine, a digital scale, over $1,000 in cash, and a phone that had been intercepted on the wiretap was recovered. At the residence of Jose Federico Vasquez in Providence, agents found 3.4 grams of cocaine.
Felix Melendez, Jose Federico Vasquez, and Hugo Santana-Dones each face a mandatory minimum sentence of five years up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Santana-Dones and Federico Vasquez will be subject to deportation proceedings upon completion of their sentences. Osvaldo Vasquez faces a mandatory minimum of 10 years up to a lifetime in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $5 million. Elvis Genao faces a sentence of up to 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest F. Martineau; and Leominster Interim Police Chief Michael Goldman, made the announcement today. Assistant U.S. Attorney Mark J. Grady of Weinreb’s Worcester Branch Office is prosecuting the case.
Lawrence Man Pleads Guilty to Heroin TraffickingRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to heroin trafficking.
Jose Antonio Rosario, 40, pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Aug. 17, 2017.
From about April 2015 to March 2016, federal law enforcement investigated the drug distribution activities of Ramon Baez, a Dominican national based in Lawrence, and his associates. Rosario supplied Baez with kilograms of heroin, which Baez then repackaged for distribution. Baez pleaded guilty in March 2017 and is scheduled for sentencing on June 16, 2017. Baez is subject to deportation following the completion of his sentence.
The charge of conspiracy to possess with intent to distribute and to distribute heroin and fentanyl provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistant U.S. Attorney Katherine Ferguson of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
Lancaster County Man Sentenced for Conspiracy to Straw Purchase a FirearmRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Adam Tyler Shrader, age 22, of Lancaster, South Carolina, was sentenced today in federal court in Columbia to conspiracy to straw purchase a firearm, a violation of 18 U.S.C. § 371. United States District Judge Mary Geiger Lewis, of Columbia, sentenced Shrader to 21 months in federal prison followed by 2 years of supervised probation.
Evidence presented at the change of plea hearing established that on October 21, 2014, a Lancaster County deputy met with Lillie Mae Govea about her pistol being stolen. According to Govea, someone had stolen her pistol out of the trunk of her car. She indicated that the only person who had been in the trunk of the car was her boyfriend, Adam Tyler Shrader.
The officer then contacted Shrader who told the officer that a friend of his named "Nick" had asked Govea to purchase a pistol for him. Nick gave Govea and Shrader the money and told them to make the purchase at a named local gun store. Govea and Shrader agreed.
Govea indicated that during the entire drive to the gun store, Shrader was on the telephone asking for directions. When they got to the store, Shrader showed her a picture of a specific pistol that had been previously advertised by the store. However, the store did not have the pistol in stock so they purchased a different pistol and ammunition instead.
On the way back home, Shrader was talking to someone on the telephone and told him they would be returning shortly. When they returned, a male that Govea did not know approached them, gave her additional money for the pistol and took the pistol out of the car. Shrader told Govea to wait three (3) days to report the pistol stolen in case Nick did something "bad" with it. Govea waited less than one (1) day to report the pistol stolen. The pistol was later found in the possession of a convicted felon during a search by another police jurisdiction. Govea previously had pled guilty and was sentenced on the same charge.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lancaster County Sheriff’s Department. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Lakewood Tax Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
DENVER – Hieu Mattison, age 53, of Lakewood, Colorado was sentenced yesterday by U.S. District Court Chief Judge Marcia S. Krieger to serve 21 months in prison for preparing and filing false federal income tax returns, Acting United States Attorney Bob Troyer and IRS – Criminal Investigation Special Agent in Charge Steven Osborne announced. Following his prison sentence, Mattison was ordered to serve 1 year on supervised release. Judge Krieger also ordered Mattison to pay $133,544 in restitution to the Internal Revenue Service. As a special condition of supervised release, Chief Judge Krieger ordered that the defendant cannot be involved in the tax preparation business.
According to the indictment and plea agreement, Mattison was the owner and primary tax return preparer of AAAE Financial, Inc. (AAAE) in Lakewood, Colorado. Between 2008 and 2012, Mattison prepared federal income tax returns in which he added false income items, such as W-2 wages, household help (HSH) income, and/or false Schedule C business income to his mostly low-income clients’ tax returns. The false items increased various tax credits and resulted in false refunds. On occasion, Mattison added false education credits instead of false income. While he had four employees at AAAE, Mattison reviewed all tax returns before they were transmitted to the IRS.
Most of the generated refunds were direct deposited into a business bank account controlled by Mattison. After the refund was deposited into the account, the client would usually pick up the refund in cash, less Mattison’s preparation fee. When an undercover agent posed as a client at AAAE, Mattison added $6,002 in false HSH income, as well as educational expenses that Mattison and the undercover agent had not discussed. Mattison filed 34 false tax returns for 16 individuals for the tax years 2008 through 2012 for a total tax loss amount of $133,544.
“Prison is the fitting end for a tax preparer in a position of trust who preyed on the poor to steal money from the government,” said Acting U.S. Attorney Bob Troyer.
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Steven Osborne, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "It is our hope that today's sentence sends the strong message that tampering with the integrity of our nation's tax system will result in jail time."
This case was investigated by IRS – Criminal Investigation and prosecuted by Chief of the Economic Crimes Section of the U.S. Attorney’s Criminal Division, Assistant U.S. Attorney Martha Paluch.
Knoxville Woman Pleads Guilty in Food Program FraudRead the Press Release
Tammy Young, 47, of Knoxville, Tennessee, pleaded guilty today to conspiracy to commit wire fraud for her role with All About Giving, Inc., a sponsor organization in the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP), announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The Child and Adult Care Food Program is intended to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations are responsible for enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to providers.
According to the plea agreement and documents filed with the Court, Young’s cousin and co-conspirator, LaShane Hayes, started All About Giving, Inc. in 2014. Thereafter, between March 2015 and July 2016, Hayes made fraudulent reimbursement requests to the Tennessee Department of Human Services which caused the State of Tennessee to deposit more money into All About Giving’s bank accounts than it was entitled to receive. Hayes and her co-conspirators, including Young, defrauded CACFP of more than $1.5 million during this period.
Young and other co-conspirators participated in the fraud by falsifying documents to support the fraudulent reimbursement requests. These included provider records, which overstated the number of meals served to children and listed fictitious children’s names and provider lists, which included individuals who were not providing any child care. Furthermore, Young enrolled individuals in the Knoxville area as All About Giving childcare providers who she knew were not providing childcare or serving meals to children. Young also traveled from Knoxville to Nashville on numerous occasions to pick up checks from All About Giving and distribute them to alleged providers in and around Knoxville. During the course of the conspiracy, Young received over $54,000 from All About Giving.
Young faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on August 30, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
LaShane Hayes pleaded guilty in January 2017 to conspiracy and wire fraud and on April 12, 2017, she was sentenced to three months in prison and three years of supervised release by U.S. District Judge Aleta Trauger.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Jury Convicts Russian National of Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK – A jury voted today to convict Nikolay Souslov, a/k/a Nikolay Glukhov, a/k/a Nikolai Kuznetsov, a/k/a Nikolai Burov, age 70, and a citizen of Russia, of alien smuggling, following a four-day trial.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, Border Patrol, Swanton Sector.
Souslov faces up to 10 years in prison, as well as post-imprisonment supervised release of up to 3 years, when he is sentenced on October 4, 2017 by Chief United States District Judge Glenn T. Suddaby. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Souslov has been in custody since his arrest.
The evidence at trial showed that between 2013 and October 19, 2016, Souslov smuggled people into the United States by walking them through the woods from Canada at nighttime. Souslov, who is experienced in orienteering, used only a compass to guide the illegal entrants through the woods to a pickup spot, from which they were transported to New Jersey. On October 19, 2016, Border Patrol arrested Souslov as he was leading someone into the United States. While convicting Souslov of alien smuggling, the jury acquitted him of smuggling for financial gain.
This case was investigated by the United States Border Patrol and is being prosecuted by Assistant U.S. Attorney Douglas G. Collyer.
Jason Anthony Knight Sentenced to Serve Seven Years in Prison for Illegally Possessing a FirearmRead the Press Release
GREENEVILLE, Tenn. – On May 25, 2017, Jason Anthony Knight, 45, of Telford, Tennessee, was sentenced by the Honorable Leon Jordan, U.S. District Court Judge, to serve 84 months in federal prison. Knight pleaded guilty on June 21, 2016, to being a felon in possession of a firearm.
In his guilty plea on file with U.S. District Court, Knight admitted that in May 2016, he inspected two firearms and purchased one of them, while possessing and controlling both. Authorities later found and seized a Smith & Wesson .40 caliber semi-automatic firearm in the ceiling above Knight’s bed. Knight also admitted that he was a convicted felon and prohibited from possessing a firearm.
The Washington County Sheriff’s Office conducted the investigation leading to the charges, guilty plea and today’s sentence. Assistant U.S. Attorney Helen C.T. Smith represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
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Jamaican Citizen Admits to Participating in Lottery Scam Targeting Elderly VictimsRead the Press Release
ALBANY, NEW YORK – Daron Murray, age 22, and a citizen of Jamaica, pled guilty yesterday to mail fraud, and conspiracy to commit mail and wire fraud, for his role in a Jamaica-based lottery scam that targeted elderly victims.
The announcement was made by United States Attorney Richard S. Hartunian; Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service, Boston Division; and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his plea, Murray admitted that, between December 2012 and October 2014, he and others carried out an advance-fee scheme by falsely informing elderly victims in the United States that they had won the lottery and that, to claim their winnings, they first needed to pay taxes and fees. For instance, while in Jamaica, Murray repeatedly called a 92-year-old blind victim from Pittsfield, Massachusetts, and instructed the victim to make advance payments to process paperwork and claim millions of dollars in purported winnings from the New York Lottery. The victim sent $20,000 to one of Murray’s conspirators who lived in Albany, New York.
Murray faces up to 20 years in prison, 3 years of post-imprisonment supervised release, and a $250,000 fine when he is sentenced by United States District Judge Mae A. D’Agostino on October 3, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Sean O’Dowd.
Investigation into a Drug Trafficking Organization Results in Seven Arrests on Federal Drug Conspiracy ChargesRead the Press Release
LUBBOCK — An investigation into a large scale drug trafficking organization in Hockley and Cochran County, Texas has resulted in federal drug distribution conspiracy charges against seven defendants who are charged in two federal indictments that were returned last week by a grand jury in Lubbock, announced U.S. Attorney John Parker of the Northern District of Texas.
Six of the seven charged defendants were arrested early Tuesday morning in an operation led by the Texas Department of Public Safety, the Drug Enforcement Administration, the Levelland, Texas Police Department, the Cochran County Sheriff’s Office, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Customs and Border Protection, as well as the New Mexico State Police Tactical Team, Roosevelt County, New Mexico Sheriff’s Office, and the Region V Metro Drug Task Force, based in New Mexico. Most of the defendants were arrested in the Northern District of Texas and have made their initial appearances before U.S. Magistrate Judge D. Gordon Bryant, Jr. Each was detained pending hearings set in the following weeks. Leopoldo Herrera-Gandara was arrested in the District of New Mexico where he has made his initial appearance and awaits transfer to the Northern District of Texas. Johnathan Navarrette Garza remains in custody in Cochran County on unrelated State charges.
The defendants charged in the two indictments unsealed today include:
Leopoldo Herrera-Gandara, aka “Polo,” 33, of Arch, New Mexico
Raul Jose Hernandez, aka “RJ,” 35, of Morton, Texas
Johnathan Navarrette Garza, aka “Johnny,” 27, of Morton, Texas
Elias Avitia, aka “Mole,” 20, of Morton, Texas
Arcadio Ornelas, Jr., aka “Junior,” 36, of Morton, Texas
Each of these defendants is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Hernandez, Avitia, and Ornelas are also charged with one count each of possession with intent to distribute five grams or more of methamphetamine. Garza is charged in two additional counts, one count of distribution and possession with intent to distribute methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine. Gandara is also charged with three counts of possession with intent to distribute 50 grams or more of methamphetamine.Jorge Andres Nunez-Saenz, aka “Tucan,” 51, of Levelland, Texas
Nancy Cecilia Martinez, 37, of Levelland, Texas
Nunez-Saenz and Martinez are each charged in a four-count indictment with one count of conspiracy to possess with the intent to distribute methamphetamine and two counts each of distribution and possession with intent to distribute 50 grams or more of methamphetamine.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. The conspiracy charges contained in both indictments carry different penalties based on the amount of controlled substance attributable to each defendant, with the greater amounts carrying a maximum statutory penalty of life in federal prison and a $10 million fine, upon conviction.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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International Cyber Fraudsters Sentenced to 115, 95 and 25 Years in PrisonRead the Press Release
Gulfport, Miss – Three Nigerian nationals, who were extradited from South Africa to the Southern District of Mississippi in July 2015, were sentenced to prison this week for their roles in a large-scale international fraud network.
Acting U.S. Attorney Harold Brittain of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans made the announcement.
Oladimeji Seun Ayelotan, 30, was sentenced to 95 years in prison; Rasaq Aderoju Raheem, 31, was sentenced to 115 years in prison; and Femi Alexander Mewase, 45, was sentenced to 25 years in prison. After a three-week trial in early 2017, a federal jury found each defendant guilty of offenses involving mail fraud, wire fraud, identity theft, credit card fraud and theft of government property. Ayelotan and Raheem were also found guilty of conspiracies to commit bank fraud and money laundering.
A total of 21 defendants were charged in this case, 12 of whom have pleaded guilty to charges related to the conspiracy, and 11 of whom have been sentenced to date. One of the leaders of the conspiracy, Teslim Olarewaju Kiriji, 30, of Nigeria, was previously sentenced to 20 years in prison. Six other defendants were previously sentenced to 10 years in prison each for their roles in this conspiracy: Adekunle Adefila, 41, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; Gabriel Oludare Adeniran, 30, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; Taofeeq Olamilekan Oyelade, 32, of Nigeria; and Olusegun Seyi Shonekan, 34, of Nigeria.
Genoveva Farfan, 45, of California, was sentenced to 9 years in prison, and Rhulane Fionah Hlungwane, 26, of South Africa, was sentenced to five years in prison for their roles in the conspiracy. Olutoyin Ogunlade, 41, of New York, was sentenced to four years in prison. Dennis Brian Ladden, 75, of Wisconsin, was sentenced to time served and six months’ home confinement. Susan Anne Villeneuve, 61, of California, pleaded guilty earlier this month and is awaiting sentencing.
According to the plea agreements and evidence at trial, the defendants and their co-conspirators carried out numerous internet-based fraud schemes dating back at least to 2001. These schemes involved using unsuspecting victims to cash counterfeit checks and money orders, using stolen credit card numbers to purchase electronics and other merchandise and using stolen personal identification information to take over victims’ bank accounts. As a whole, the conspiracy involved tens of millions of dollars in intended losses.
To accomplish their fraud schemes, the conspirators recruited the assistance of U.S. citizens via "romance scams," in which the perpetrator would typically use a false identity on a dating website to establish a romantic relationship with an unsuspecting victim. According to trial evidence and plea documents, once the perpetrator gained the victim’s trust and affection, the perpetrator would convince the victim to either send money or to help carry out fraud schemes. For example, the defendants admitted that they used romance victims to launder money via Western Union and MoneyGram, to re-package and re-ship fraudulently obtained merchandise and to cash counterfeit checks.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service investigated the case. Significant assistance was also provided by the Criminal Division’s Office of International Affairs, the HSI Cyber Crimes Center, HSI Attachés in Pretoria, South Africa and Dakar, Senegal, the U.S. Marshals Service’s International Investigations Branch and the Southern District of Mississippi District Office, the South African Police Service (SAPS) Directorate of Priority Crimes Investigation (DPCI) Electronic Crimes Unit, the SAPS Interpol Extradition Unit, the South African National Prosecution Authority and the South African Department of Justice and Constitutional Development. Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi, Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, and Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section tried the case.
If you believe that you may have been a victim of criminal fraud committed by any of the defendants, please go to http://www.justice.gov/usao-sdms/scams and complete the questionnaire. Defendants allegedly used the following email addresses and names to perpetuate the scheme:
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
[email protected] [email protected]
Stacy Adams Marlon Chase Regina Darwin Folly Edwards
Kimberly Faye Lorene M. Garrett Mark Gentile John Gervino
Dickson Jones Anita Lauren Samuel Maxwell Mark Miller
Adeline Piper Sarah Powell Karen Robinson Glenn Sattelberg
Kevin Smith Mark Smith Richard Wasser Justin Worsham
Any information that you provide through the questionnaire may be helpful in the criminal investigation and prosecution of this case. A federal investigator may contact you with additional questions or to request documents you may have. Please note that submitting the questionnaire is not a substitute for consulting with your own attorney to determine what actions and remedies may be available to you through civil litigation. If you have any questions related to this matter that are not addressed at the above websites, you may contact federal law enforcement authorities at [email protected].
Idaho Man Serving Sentence in Terrorism Case Indicted on Attempted Murder Charges Stemming from Attack on Federal Prison WardenRead the Press Release
RIVERSIDE, California – A man who was convicted and sentenced to a quarter century in prison for providing material support to a foreign terrorist organization has been indicted on attempted murder charges for allegedly trying to kill the warden of the federal prison where he was serving his sentence.
Fazliddin Kurbanov, 34, was named in a three-count indictment returned yesterday by a federal grand jury. The indictment that charges Kurbanov with attempted murder of a federal officer, assault on a federal officer with a deadly or dangerous weapon, and possession by an inmate of a prohibited object intended to be used as a weapon.
The indictment alleges that Kurbanov used a prison-made knife to attack Warden Calvin Johnson at the Federal Correctional Institute at Victorville on May 31, 2016. Warden Johnson, who is now serving at another facility operated by the United States Bureau of Prisons, was seriously injured in the attack, but he has recovered.
Kurbanov currently is serving a 25-year sentence imposed last year by a federal judge in Idaho after being found guilty of conspiring and attempting to provide material support to a designated foreign terrorist organization and possessing an unregistered destructive device.
In relation to the new indictment filed yesterday in Riverside, Kurbanov will be brought into United States District Court for an arraignment in the coming weeks.
If he is convicted of all three charges in the indictment, Kurbanov would face a statutory maximum sentence of 45 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the attack on the warden is being conducted by the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Jay H. Robinson of the Terrorism and Export Crimes Section.
Huntsville Man Indicted for ID Theft, Counterfeiting and Illegal Gun PossessionRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Huntsville man on identity theft, access device fraud and illegal gun possession charges, announced Acting U.S. Attorney Robert O. Posey and U.S. Secret Service Special Agent in Charge Michael Williams.
A four-count indictment filed in U.S. District Court charges DAMARREYA BARROW, 39, with using counterfeit bank or credit cards to make purchases in Madison County and elsewhere, ranging from Prattville, Ala., to Fayetteville, Tenn., between February and May this year, and with possessing more than 15 of the counterfeit devices on June 2016 in Madison County. The indictment also charges Barrow with aggravated identity theft for using credit and debit card account numbers belonging to other people, and with being a convicted felon in possession of a firearm.
According to the indictment, Barrow was convicted of fraudulent use of a debit or credit card in Madison County Circuit Court in October 2015, and on June 22, 2016, possessed a Smith & Wesson Model 669 9mm semi-automatic pistol.
Barrow’s indictment is one of several involving illegal gun possession returned by the grand jury today. Others are as follows:
MAXIMILIANO CINTO, 33, a native of Guatemala living in Albertville, indicted as an illegal alien in possession of a firearm, a Jennings Model J-22 .22-caliber semi-automatic pistol, on Oct. 14, 2016, in Marshall County.
SIDONTE TOMAR HARRIS, 19, of Birmingham, indicted for stealing guns from Alabama Guns and Outdoors in Pelham on Jan. 13, and for possessing and receiving stolen guns in Jefferson County on Jan. 14.
Harris’ indictment charges that he stole 17 guns from the Pelham store and that he possessed three of the stolen guns on Jan. 14 – a Colt .38-caliber revolver, a Colt 32-20-caliber revolver and a Beretta .40-caliber pistol.
MARTIN SHELTON, 36, of Bessemer, indicted for being a convicted felon in possession of firearms, a FNH .45-caliber pistol and a Steyr .40-caliber pistol, on Oct. 24, 2016, in Jefferson County. The indictment lists Shelton with prior convictions of unlawful breaking and entering a vehicle, March 2001, Jefferson County District Court; robbery, third degree, September 2002, Jefferson County District Court; unlawful possession of marijuana, first degree, January 2003, Jefferson County Circuit Court; and unlawful possession of a controlled substance, April 2009, Jefferson County Circuit Court.
BRUCE DANIEL WARD JR., 23, of Anniston, indicted for being a convicted felon in possession of firearms – a Harrington & Richardson 20-gauge shotgun, a Mossberg .22-caliber rifle and a Noble Manufacturing Company 16-gauge shotgun – on Feb. 1 in Calhoun County. Ward’s indictment lists him with prior convictions in Calhoun County Circuit Court of burglary, third degree, in April 2003, and receiving stolen property, first degree, in August 2012.
Aggravated identity theft carries a mandatory minimum two-year prison sentence and a maximum $250,000 fine. The maximum penalty for all other crimes charged in these cases is 10 years in prison and a $250,000 fine.
Various agencies, including the Secret Service, Jefferson County Regional Fraud Task Force, Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Department of Homeland Security investigated the cases, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Houma Man Charged with Failure to Register as a Convicted Sex Offender and Distribution of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DAVID KLIMENKO, age 29, of Houma, was charged today in a Bill of Information with Failure to Register as a Convicted Sex Offender and Distribution of Child Pornography.
According to court records, KLIMENKO was previously convicted of Sex Offense in the Third Degree (engaging in vaginal intercourse with another if the victim is 14 or 15 years old, and the person performing the act is at least 21 years old), in violation of CR 3-307(a)(5) of the Annotated Code of Maryland, in the Circuit Court for Anne Arundel County, Maryland under Case No. 02-CR-15-547. KLIMENKO's Maryland conviction required him to register as a sex offender and complete Sex Offender Registration Forms (“Registration Form”). The terms of KLIMENKO’s sex offender registration and reporting requirements require that if he elected to move from Maryland, he was required to notify Maryland law enforcement, to register with law enforcement in his new state, and complete a Registration Form within 3 days. According to law enforcement officers, KLIMENKO moved from Maryland to Louisiana in 2016 and failed to notify law enforcement authorities of his move to Louisiana. Additionally, KLIMENKO used his Facebook account to distribute child pornography on the Internet.
Acting U. S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Due to his prior conviction, if convicted, KLIMENKO faces a mandatory minimum penalty of 15 years imprisonment up to 40 years, followed by up to a life term of supervised release, and a $250,000 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Acting U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Hoover Man Indicted for Three 2017 Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Hoover man for three bank robberies between January and April, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges DAVID ALAN LAWLEY, 34, with the Jan. 30 bank robbery at the Chelsea branch of APCO Employees Credit Union in Shelby County, the March 31 robbery at the Leeds branch of Covenant Bank in Jefferson County, and the April 13 robbery of the Northport branch of BB&T in Tuscaloosa County.
The maximum penalty for bank robbery is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that WILSON MAURICIO OSORTO-ESTRADA, age 35, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) & (b)(2).
U.S. District Judge Carl J. Barbier sentenced OSCORTO-ESTRADA to 6 months imprisonment. Following completion of his sentenced, OSCORTO-ESTRADA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, OSOTRO-ESTRADA reentered the United States after he was previously deported on January 17, 2013.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Haverhill Man Arrested for Bank RobberyRead the Press Release
BOSTON – A Haverhill man was arrested and charged today with robbing a branch of Santander Bank in Boston.
Gregory Carter, 58, was charged in a criminal complaint with one count of bank robbery and is scheduled to appear in federal court in Boston at 3:15 p.m.
According to court documents, on the morning of March 25, 2017, an individual entered a branch of the Santander Bank on Commonwealth Avenue in Boston and handed a teller a note indicating a robbery. The robber stated that he had a gun and repeatedly gestured to his pocket. During the robbery, the robber pulled down a facemask he was wearing and exposed his skin and a thin moustache. The teller handed the robber cash, which was later determined to be $6,129. The robber then exited the bank walking toward Beacon Street.
Following the robbery, the teller described the robber to law enforcement officers as a 5’10” light-skinned black male wearing a dark hat, black ski mask, sunglasses, a black puffy jacket and blue latex gloves. Law enforcement officers reviewed images from exterior surveillance cameras and determined that the robber drove through the area in a black Ford Fusion sedan and parked on Beacon Street. Following the robbery, surveillance images also recorded the robber returning to the sedan and driving away. The description of the robber and the vehicle were disseminated to law enforcement.
On March 28, 2017, a law enforcement officer who was aware of the recent bank robbery observed a black Ford Fusion on Dudley Street in Boston. The driver, who matched the description of the robber, exited the vehicle and began to approach a Bank of America branch. When a Boston Police cruiser stopped in front of the bank, the individual turned around and returned to the vehicle. The officer queried the vehicle’s registration number and learned that it belonged to Carter. A criminal record check revealed that Carter is currently on probation for a prior bank robbery conviction in federal court.
Officers began conducting an investigation and surveillance of Carter, who they later determined matched the description of the individual who robbed the Santander Bank on March 25th.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge bases upon the US Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Somerville Police Chief David Fallon; Haverhill Police Chief Alan DeNaro; and Boston Police Commissioner William Evans, made the announcement today. The investigation was conducted with the assistance of the FBI’s Violent Crimes Task Force. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
Hanson Man Sentenced for Child Sexual ExploitationRead the Press Release
BOSTON – A Hanson man was sentenced today in federal court in Boston for sending sexually explicit messages to two pre-teen girls.
Mark L. Leach, 49, was sentenced by U.S District Court Judge F. Dennis Saylor IV to 10 years in prison and five years of supervised release. Upon completion of his sentence, Leach is required to register with the Sex Offender Registry Board in any community where he resides. On March 1, 2017, Leach pleaded guilty to coercion and enticement of a minor.
In 2016, law enforcement officers learned that Leach, using the Skype screen name “funtimehockey,” had sent sexually explicit messages via text, live video and audio to two pre-teen girls. One of the girls occasionally babysat for Leach’s daughter. The victims told law enforcement officers that Leach asked them to send him naked and sexually explicit pictures of themselves. Leach also sent naked and sexually explicit pictures of himself to the victims.
During an interview with law enforcement following his arrest, Leach admitted that he set up the Skype account to communicate with these minor victims and others, and that he frequently requested that they expose themselves to him during the conversations. Leach also admitted that when the minor victim babysat for his daughter, he would expose himself and masturbate in front of her.
Acting U.S. Attorney William D. Weinreb; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Richard D. McKeon Superintendent of the Massachusetts State Police; Hanson Police Chief Michael Miksch; and Whitman Police Chief Scott D. Benton, made the announcement today. The Waltham Police Department also assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Greenville Man Pleads Guilty to Drug Distribution and Gun ChargesRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Jimmy Brown, Jr., age 39, of Greenville, South Carolina, entered a guilty plea before United States District Court Judge Bruce Howe Hendricks, this week, in Greenville, SC. Mr. Brown pled to counts for Felon in Possession of a Firearm and Ammunition, in a violation of 18 U.S.C. § U.S.C. 922(g)(1); Possession with Intent to Distribute a Quantity of Cocaine Base, in violation of 21 U.S.C § U.S.C. 841(b)(1)(C); and Possession of a Firearm During the Commission of a Drug Trafficking Crime, in violation of 18 U.S.C § U.S.C. 924(c)(1)(A). Judge Hendricks accepted the guilty plea and will impose a sentence after review of the presentence report, as will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Mr. Brown was approached by Greenville County Sheriff’s Office deputies around 12:39 a.m., September 3, 2015, at a commercial venue off White Horse Road. Mr. Brown resisted efforts by law enforcement to investigate the circumstances of his presence there, and a subsequent and significant physical altercation ensued. During that altercation, a 9mm semi-automatic pistol fell from Mr. Brown’s possession. In addition to the firearm, Mr. Brown was found in possession of 3.3 grams of crack cocaine and approximately $1,767.00 in cash. He had previously served 15 years for a state voluntary manslaughter conviction.
Ms. Drake stated the maximum penalty for Felon in Possession of a Firearm and Ammunition is imprisonment for 10 years and/or a fine of $250,000; the maximum penalty for Possession with Intent to Distribute Cocaine Base is imprisonment for up to 20 years and/or a fine of $1,000,000; and the maximum penalty for Possession of a Firearm During the Commission of a Drug Trafficking Crime is imprisonment for life and/or a fine of $250,000.
The case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Joe Brewer of the Greenville office is prosecuting the case.
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Georgia Man Sentenced for Auto Loan Fraud SchemeRead the Press Release
NORFOLK, Va. – A man who executed an elaborate auto loan fraud scheme was sentenced today to two years in prison for bank fraud.
Sheldon Franklin, 31, of Atlanta, pleaded guilty on February 28. According to the statement of facts filed with the plea agreement, Franklin organized and engineered an automobile loan fraud scheme resulting in a loss of $167,528 to Langley Federal Credit Union, Navy Federal Credit Union, and NSWC Federal Credit Union. Between October 2012 and August 2014, Franklin recruited several other individuals to provide their personal information, which he used to apply for car loans. Franklin filled out the loan documents and created associated fake documents, such as pay statements, to submit to the credit unions. Once the loans were approved, the recruits would pick up the checks and provide them to Franklin. He cashed the checks at a check cashing business or deposited them into business bank accounts that he had established. These business accounts were set up using fake IRS documents and under names that purported to be automobile dealerships.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Randy Stoker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-80.
Four Individuals Arrested in Niagara County Cocaine BustRead 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 Ramone Westbrook, 27, Rico Freeman, 33, Corey Bradberry, 34, all of Niagara Falls, NY, and Darius Dix, aka Darius Jenkins, 27, of Lockport, NY, were arrested and charged by criminal complaint with conspiracy to possess and possession with intent to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that between April 2016, and May 2017, the defendants are accused of operating a wide-scale cocaine distribution network in Niagara Falls and Lockport. According to the complaint, the investigation utilized court ordered wiretaps as well as a dozen undercover purchases.
Law enforcement officers executed seven search warrant on houses and vehicles utilized by the defendants. During the search warrants, officers recovered a quantity of cocaine, marijuana, $75,000 in cash and drug paraphernalia.
The defendants made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and being held pending detention hearings on June 2, 2017 at 11:00 a.m.
“By following the destructive trail of these violent traffickers, law enforcement uncovered and shut down a regional drug source of supply,” stated DEA Special Agent-in-Charge James J. Hunt. “I commend our law enforcement partners on their diligent efforts in this investigation.”
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett, New York Field Office; the Niagara County Drug Task Force and Sheriff’s Department, under the direction of Sheriff James Voutour; the Lockport Police Department, under the direction of Chief Michael Niethe; the Niagara Falls Police Department, under the direction of Bryan DalPorto; and the Niagara County District Attorney’s Office, under the direction of Caroline A. Wojtaszek.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Four Federal Inmates Charged with Possession of WeaponsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four inmates at the Allenwood Federal Correctional Complex (FCC Allenwood) were indicted separately by a federal grand jury for possessing contraband within a federal prison.
According to United States Attorney Bruce D. Brandler, the following defendants, all inmates at FCC Allenwood at the time of the alleged incidents, were charged:
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Craig Pipps, age 43, charged with possession of a weapon (a 7.5 inch improvised knife) allegedly found in his boot on December 12, 2016, at the United States Penitentiary Allenwood (U.S.P. Allenwood);
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Zarqurous Sanders, age 32, charged with possession of a weapon (an 8 inch improvised knife) allegedly found on his person on December 11, 2016, at U.S.P. Allenwood;
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Ruben Esparza, age 37, charged with possession of heroin on June 27, 2015, at U.S.P. Allenwood; and
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Jeremy Harwell, age 30, charged with possession of a weapon (a 7 inch improvised knife) found on his person on December 18, 2016, at the Federal Correctional Institution Allenwood.
The investigations were conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Special Assistant United States Attorney Michael Figgsganter and Assistant United States Attorney Geoffrey W. MacArthur are prosecuting the cases.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty for each offense is five years’ imprisonment, a term of supervised release following imprisonment, and a fine of $250,000. 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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Four Charged with Brutal Kidnapping of Georgia VictimRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Timothy Gallagher, the Special Agent-in-Charge of the Newark Field Office of the Federal Bureau of Investigation (“FBI”), announced charges against four defendants for their participation in a brutal kidnapping conspiracy, in which a victim was forcibly abducted at gunpoint in Georgia, stabbed, shot at, held hostage, and then driven north from Georgia toward the Bronx, New York. The victim was finally rescued by law enforcement authorities at the New York/New Jersey border.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants allegedly committed a brutal kidnapping – seizing their victim at gunpoint, shooting at him, stabbing him, and then driving him from Georgia, headed for the Bronx. Thankfully, the victim was rescued, and the defendants apprehended. I want to thank our partners at the FBI for their tremendous work in this investigation and commitment to confronting violent crime.”
FBI SAC Timothy Gallagher said: “Combating violent crime is, and will always remain, a priority of the FBI. These charges reinforce that commitment, and send a message to individuals who engage in violent acts, that the FBI and our law enforcement partners will pursue them with the full force of the law.”
The Indictment[1], which was filed yesterday, charges ISMAEL CASTREJON-GUIZAR, a/k/a “Guero,” EDGARDO NAVAREZ, a/k/a “Edgar,” DULCE SANTOS-VALENZUELA, and RICARDO OCASIO-REYES, a/k/a “Ricky,” in two counts, with participating in a conspiracy to kidnap the victim in or about December 2016, and with the use and possession of firearms, which were brandished and discharged, during and in relation to that kidnapping conspiracy. se charges carry maximum statutory penalties of life in prison.
The defendants were all previously arrested by state authorities, and have been detained. They will each be brought into federal custody on writs. The case is assigned to U.S. District Judge Lewis A. Kaplan.
Mr. Kim thanked the FBI’s Violent Crimes Task Force, and also thanked the Port Authority Police Department, the Bergen County Prosecutor’s Office, and the Chamblee Police Department for their excellent work in apprehending the defendants.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Justina L. Geraci is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former State Trooper Indicted for Alleged Cyberstalking, Deprivation of Rights under Color of LawRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged William P. Elschlager, 48, of Marietta, Ohio, with cyberstalking and deprivation of rights under color of law in an indictment returned here today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Washington County Sheriff Larry R. Mincks, Sr. announced the indictment.
According to the indictment, between November 2015 and January 2016, Elschlager allegedly placed a victim under surveillance with a GPS device on the victim’s vehicle and with the intent to harass and intimidate the victim.
It is also alleged that Elschlager, while acting under color of law, unlawfully conducted a traffic stop of the victim after tracking her location with the GPS devise, thus depriving the victim of her Constitutional right to be free from unreasonable searches and seizures.
Elschlager was arrested on May 17 by Washington County Sheriff’s Office deputies and released on his own recognizance. Elschlager will no longer appear for the preliminary hearing that was scheduled for June 8 but will instead appear for an arraignment on the indictment, which has yet to be scheduled.
Cyberstalking is a crime punishable by up to five years in prison. Deprivation of rights under color of law carries a potential maximum sentence of one year in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Washington County Sheriff’s Office, as well as Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Former Shreveport chiropractor, son sentenced for operating illegal bitcoin exchange businessRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a former Shreveport chiropractor and his son were sentenced Wednesday for funneling money through an unlawful bitcoin financial scheme.
Randall Bryan Lord, 59, and his son, Michael Aaron Lord, 30, both of Shreveport, were sentenced to 46 months and 106 months in prison respectively by U.S. District Judge S. Maurice Hicks Jr. They were also sentenced to one year and three years of supervised release respectively. The defendants pleaded guilty April 13, 2016 to one count of conspiracy to operate an unlicensed money servicing business. In addition, Michael Lord pleaded guilty to one count of drug conspiracy for agreeing to distribute controlled dangerous substances to include alprazolam, a Schedule IV controlled substance. According to the guilty pleas, from at least 2013 to 2015, the defendants were accepting currency, money orders and money paks and exchanging those funds for bitcoin, a decentralized form of electronic or digital currency, existing entirely on the Internet and not in any physical form. Contrary to law, the Lords were not registered with FinCEN. The Lords also failed to report the receipt of more than $31,000 in U.S. currency. Also, beginning in March 2015, Michael Lord was involved in a drug conspiracy to distribute alprazolam, 5F-AB-Pinaca (a synthetic cannabinoid) and other controlled substances.
“This investigation represents cutting edge criminal activity,” Jerome R. McDuffie, Special Agent in Charge for the New Orleans Field Office of IRS – Criminal Investigation. “The ‘dark web’ was used to facilitate monetary transactions in a drug distribution network. Cybercrime is an emerging area of criminal activity, and we want the criminals who hide behind logon names and internet aliases to know that IRS Special Agents will follow the money in whatever form, whether it be digital or paper currency. We will follow the trail right back to their doorstep and will work diligently to hold the responsible individuals accountable.”
“HSI is committed to dismantling and disrupting the flow of illegal drugs and money into our country,” said Special Agent in Charge of HSI New Orleans Raymond R. Parmer Jr. “HSI-Shreveport will continue working with our local, state and federal partners to ensure we are making every effort to keep drugs off our streets.”
The IRS-Criminal Investigation, U.S. Immigrations and Customs Enforcement-Homeland Security Investigations, FBI, U.S. Postal Inspection Service and Springhill Police Department conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Former Principals of Vehicle Financing Company Plead Guilty to Fraud ChargesRead the Press Release
BOSTON - The founders and principals of Inofin Inc., a shuttered motor vehicle finance company based in Rockland, Mass., pleaded guilty today to fraud in connection with soliciting investments that resulted in losses of over $11 million to investors.
Michael J. Cuomo, 54, of Plymouth, and Kevin J. Mann Sr, 66, of Marshfield, pleaded guilty to one count of conspiracy to commit mail and wire fraud, three counts of mail fraud, and one count of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 20, 2017.
From 1994 through February 2011, Cuomo and Mann owned and operated Inofin, which funded loans to used car buyers who could not qualify for traditional financing. In order to fund Inofin’s operations, Cuomo and Mann raised capital by securing investments from dozens of individuals. Cuomo and Mann falsely represented that the investors could rollover money held in retirement plans to Inofin, and that Inofin, as an authorized custodian of retirement money, would invest and then return the principle with interest. In fact, at no point was Inofin an authorized custodian, or trustee, of retirement funds. As a result of these misrepresentations by Cuomo and Mann, Inofin investors transferred more than $11 million in retirement funds to Inofin, practically all of which was lost. Inofin ultimately entered into involuntary bankruptcy proceedings.
The charging statutes each provide a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Securities and Exchange Commission also provided assistance with the investigation. Assistant U.S. Attorneys Vassili Thomadakis and Victor A. Wild of Weinreb’s Criminal Division are prosecuting the case.
Former Massachusetts Man Sentenced for Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A former Massachusetts man was sentenced yesterday in federal court in Boston in connection with running a $10 million Ponzi scheme.
Mark Anderson Jones, 64, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 70 months in prison, three years of supervised release, and ordered to pay restitution of $3,749,039 and forfeiture. In September 2016, Jones pleaded guilty to one count of wire fraud and one count of engaging in monetary transactions in proceeds of unlawful activity.
Between 2008 and 2015, Jones obtained more than $10 million in investments from over 20 individuals by leading them to believe that they would be providing financing to Jamaican businesses. Because Jamaican banks can take time to close business loans, Jones claimed that he was offering these businesses “bridge loans” as an interim measure, i.e., loans to bridge the gap between the date a business sought a loan from a Jamaican bank and the date the bank actually distributes the requested funds. However, Jones misled investors about the purported bridge loan investments and how their money would be used. Specifically, rather than investing in bridge loans and paying returns based on those investments, Jones used new capital to either repay investment principal or to pay purported returns to earlier investors. For example, in January 2015, a Massachusetts-based victim invested approximately $200,000 with Jones. Later that month, Jones used approximately $180,000 of that investor’s money to pay four other investors.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Valuable assistance was also provided by the U.S. Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. Special Assistant U.S. Attorney Eric A. Forni from the SEC prosecuted the case.
Florida Resident Pleads Guilty to Aggravated Identity Theft and Conspiring to File Fraudulent Tax ReturnsRead the Press Release
A Miami-Dade, Florida man pleaded guilty today to conspiring to use stolen IDs to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the IRS approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.
Sentencing is scheduled for Aug. 14. Destine faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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.
Florida Resident Pleads Guilty to Aggravated Identity Theft and Conspiring to File Fraudulent Tax ReturnsRead the Press Release
A Miami-Dade, Florida man pleaded guilty today to conspiring to use stolen IDs to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.
According to documents filed with the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the IRS approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.
Sentencing is scheduled for Aug. 14. Destine faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Felon from Carlsbad Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Paul J. Harry, 32, of Carlsbad, N.M., pled guilty today in federal court in Las Cruces, N.M., to being a felon in possession of a firearm.
Harry was arrested on Jan. 17, 2017, and charged by criminal complaint with being a felon in possession of a firearm and ammunition and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) on May 2, 2016, in Chaves County, N.M. According to the complaint, Harry was arrested on an outstanding warrant for failing to comply with probation following a routine traffic stop. Law enforcement officers subsequently executed a state search warrant on Harry’s vehicle and seized a sawed off rifle, which was not registered to Harry in the NFRTR, and ammunition.
Harry was indicted on April 19, 2017, and charged with being a felon in possession of a firearm. According to the indictment, Harry previously had been convicted of burglary.
During today’s proceedings, Harry pled guilty to the indictment and admitted that on May 2, 2016, he possessed a short-barreled rifle. Harry further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
At sentencing, Harry faces a maximum penalty of ten years in federal prison. A sentencing hearing 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 Roswell Police Department. Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Federal Prison Inmate Charged with MurderRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Hernandez-Vasquez, age 57, an inmate at the United States Penitentiary Lewisburg, was indicted by a federal grand jury for first-degree murder.
According to United States Attorney Bruce D. Brandler, the charges stem from an incident at the United States Penitentiary Lewisburg in October 2015, in which Hernandez-Vasquez allegedly strangled his cellmate with a bedsheet.
The case was investigated by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is the death penalty or life in prison and a fine of $250,000. 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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Federal Grand Jury Indicts Former Madison County DetectiveRead the Press Release
Charlottesville, VIRGINIA – A federal grand jury in Charlottesville returned an indictment yesterday against a former detective with the Madison County Sheriff’s Office, who was previously assigned to the Internet Crimes Against Children Task Force [ICAC], charging him with nine counts related to the sexual exploitation of minors, Acting United States Attorney Rick A. Mountcastle announced.
The indictment charges Bruce Arlie Harvey, 41, of Reva, Virginia, with three counts of transporting minors across state lines with the intent to engage in criminal sexual activity, three counts of interstate travel with minors with the intent to engage in illicit sexual conduct, two counts of production of child pornography, and one count of possession of child pornography.
The indictment alleges the criminal activity involved two minor female victims who had contact with Harvey while he worked as a karate instructor between 1998 and 2007. Harvey, a former instructor at the Virginia Tong Leong School of Karate in Madison, was arrested earlier this month via a federal criminal complaint.
The investigation is ongoing and being conducted by the Federal Bureau of Investigation and the Virginia State Police. Assistant United States Attorney Nancy S. Healey and Trial Attorney Lauren S. Kupersmith of the Child Exploitation and Obscenity Section of the United States Department of Justice are prosecuting the case.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
If you have any information about these crimes or information about a potential victim, please contact the FBI at 800-CALL-FBI. Investigators and victim specialists are available to assist you.
Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that on May 23, 2017, a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Man Indicted for Illegally Reentering the United States After Being Deported. Jose Alberto Nava-Reyes, age 34, of Horry County, South Carolina, was charged in a one-count indictment with illegally reentering the United States after previously being deported, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Nava-Reyes could receive is a fine of $250,000.00 and 10 years imprisonment. The case was investigated by the Immigration and Custom Enforcement – Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Three Myrtle Beach Men Indicted for Conducting an Illegal Gambling Business. Lawson Mangum, age 65, Anthony Todd, age 47, and Herbert Todd, age 49, all of Myrtle Beach, South Carolina, were charged in a one-count indictment with conducting an illegal gambling business, a violation of Title 18, United States Code, Section 1955. The maximum penalty Mangum, Todd and Todd could receive is a fine of $250,000.00 and 5 years imprisonment. The case was investigated by the State Law Enforcement Division and ICE-Homeland Security Investigations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
2 Florence Women Indicted for Conspiracy to Steal Mail and to Make Counterfeit Checks and Bank Fraud. Crystal Lynn Norris, age 26, and Emerald Jade Schamburek, age 18, both of Florence, South Carolina, were charged in a two-count indictment with stealing mail, and making forged and counterfeit checks, a violation of Title 18, United States Code, Section 371. Norris was also charged with bank fraud, a violation of Title 18, United States Code, Section 1344. The maximum penalty Norris and could receive is a fine of $1,000,000.00 and 30 years imprisonment. The maximum penalty Schamburek could receive is a fine of $250,000.00 and 5 years imprisonment. The case was investigated by the Florence County Sheriff’s Office and the United States Postal Inspection Service. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fairfield Man Charged with Attempted Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Donald Threatt, 67, of Fairfield, charging him with attempted online enticement of a minor, attempted sexual exploitation of a minor, and the commission of an offense involving a minor while required to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Threatt responded to a Craigslist advertisement and began conversing with an individual he believed to be 15 years old through the KIK messenger service. Threatt discussed sexual activity with the individual and arranged to meet the individual at her home after her mother had left for the weekend. Threatt also suggested to the individual that they take photos and a video of the planned sexual activity. Unbeknownst to Threatt, the individual with whom he conversed was actually a law enforcement agent. Threatt was arrested when he drove to the house where the meeting with the minor was to occur.
This case is the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeremy J. Kelley and Jill M. Thomas are prosecuting the case.
If convicted, Threatt faces a mandatory minimum of 25 years in prison and a maximum statutory penalty of life in prison as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Emmett Woman Pleads Guilty to Theft of Government MoneyRead the Press Release
BOISE – Wendy Ann Payne, 51, of Emmett, Idaho pleaded guilty on May 23, 2017, to theft of government money, Acting U.S. Attorney Rafael Gonzalez announced.
According to the plea agreement, Payne’s grandmother was the spouse of a deceased veteran and received monthly benefits from the Veterans Affairs Dependency and Indemnity Compensation program, paid to eligible survivors of military service members or veterans. Payne’s grandmother passed away in 2009, and Payne intentionally failed to inform the Department of Veterans Affairs of her grandmother’s death. Instead, Payne appropriated the benefits intended for her deceased grandmother, knowing that she was not entitled to them. Payne submitted a change of address form that caused that her deceased grandmother’s benefits to be mailed to Payne’s residence. Payne also placed a telephone call to the Department of Veterans Affairs and pretended to be her deceased grandmother. Since 2009, Payne embezzled and stole $91,373.12 from the Department of Veterans Affairs. As part of her plea, Payne also agreed to forfeit at least $91,373.12 and all interest and proceeds consisting of or traceable to the proceeds of the charged offense.
The charge of theft of government money is punishable by up to ten years in prison, a maximum fine of $250,000 fine and up to three years of supervised release
Sentencing will be August 10, 2017, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Department of Veterans Affairs, Office of Inspector General.
Eight people indicted in federal court for firearms crimesRead the Press Release
Eight people were indicted in federal court for firearms violations, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division.
Indicted are: Carzell J. Gibbons, 27, of Cleveland; Andre L. Madison, Jr., 26, of Boardman; Quintin Carpenter, 33, of New Philadelphia; Jessica Carpenter, aka Jessica Dendak, 30, of Carrollton; Ronald A. Goodman, Jr., 26, of Cleveland; Jesse L. Melton, 27, of Cleveland; Jerry J. Monroe, 33, of Cleveland, and Ramone Drummond, 50, of Akron.
“We will continue to aggressively prosecute firearms crimes and people who illegally carry guns after being convicted of serious crimes,” Sierleja said.
“There is no place in our society for those who use firearms for violent, criminal purposes,” Velinor said. “ATF will continue to work with our law enforcement partners at all levels across the Columbus Field Division to bring those individuals to justice.”
Gibbons is charged with being a felon in possession of a firearm and ammunition. On March 8, 2017, he possessed a Kimber, model Ultra Crimson Carry II, .45 caliber pistol, and ammunition, after having been convicted of aggravated robbery with a firearm specification, burglary, tampering with evidence and other crimes, in the Cuyahoga County Court of Common Pleas, according to the indictment.
The Gibbons case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Geauga County Sheriff’s Office and the Garfield Heights Police Department. It is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
Madison is charged with being a felon in possession of a firearm and ammunition. On March 28, 2017, Madison possessed a Smith & Wesson, model 28 Highway Patrolman, .357 caliber revolver, and ammunition, after having been convicted of burglary and aggravated assault in the Mahoning County Common Pleas Court, according to the indictment.
The Madison case was investigated by the ATF and the Youngstown Police Department. It is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
Quintin Carpenter is charged with being a felon in possession of firearms and Jessica Carpenter is charged with aiding and abetting a felon in possession of firearms.
From May 2013 through December 2016, Quintin Carpenter possessed a Ruger, model SR22, .22 pistol, a Henry Repeating Arms Co, .22 rifle, and a Remington, model 870, 12-gauge shotgun, after having been convicted of corrupting another with drugs in the Tuscarawas County Court of Common Pleas. Jessica Carpenter, aka Jessica Dendak, aided and abetted Quintin in obtaining the firearms, according to the indictment.
The Carpenter case was investigated by the ATF and is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
Goodman is charged with being a felon in possession of a firearm and ammunition. On April 23, 2017, Goodman possessed a Ruger, Model AR-556, 5.56mm X 45mm caliber rifle, and ammunition, after having been convicted of drug trafficking in the Cuyahoga County Court of Common Pleas, according to the indictment.
The Goodman case was investigated by the ATF and Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Elliot Morrison.
Melton is charged with being a felon in possession of a firearm and ammunition. On April 1, 2017, Melton possessed a 9mm Makarov pistol, after having been previously convicted of attempted robbery and drug trafficking in Cuyahoga County, as well as possession with intent to distribute narcotics in U.S. District Court for the Northern District of Ohio, according to the indictment.
The Melton case was investigated by the Euclid, Bratenahl and Cleveland police departments, as well as the ATF. It is being prosecuted by Assistant U.S. Attorney Brad J. Beeson.
Monroe is charged with being a felon in possession of a firearm and ammunition. On March 22, 2017, Monroe possessed a 9mm Smith & Wesson pistol, Model Sigma, after having been previously convicted of attempted robbery and involuntary manslaughter in Cuyahoga County Common Pleas Court, according to the indictment.
The Monroe case was investigated by the Cleveland Division of Police and the ATF. It is being prosecuted by Assistant U.S. Attorney Brad J. Beeson.
Drummond is charged with being a felon in possession of a firearm and ammunition, as well as possession with intent to distribute Oxycodone. On Aug. 10, 2016, Drummond possessed a Lorcin L25 pistol and ammunition, after having previously been convicted in U.S. District Court of possession with intent to distribute cocaine. He also possessed Oxycodone with the intent to distribute the drug, according to the indictment.
The Drummond case was investigated by the U.S Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
The cases are unrelated.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Dubuque Man Pleads Guilty to Perjuring Himself Before a Federal Grand JuryRead the Press Release
A Dubuque man pled guilty today in federal court in Cedar Rapids to perjuring himself before a federal grand jury in January 2017.
John Michael Gronen, 19, from Dubuque, Iowa, was convicted of the crime of making a false declaration before a grand jury. At the plea hearing, and in a plea agreement, Gronen admitted that he testified falsely, under oath, before a grand jury in the Northern District of Iowa on January 10, 2017. Specifically, Gronen falsely testified that he had never seen a particular sawed-off shotgun, when in truth he had seen another individual carrying the sawed-off shotgun in September 2016. Further, Gronen falsely testified that no one was using drugs at his house on September 22, 2016, when in truth he saw two people using cocaine and marijuana in his basement on that date.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Gronen was released on a personal recognizance bond, subject to a number of terms and conditions, pending sentencing. Gronen faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Dubuque Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-31-LRR.
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Dr. John Patrick Couch Sentenced to 240 MonthsRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama, announces that Dr. John Patrick Couch has been sentenced to 240 months in federal prison for running a massive pill mill in Mobile, Alabama.
During the sentencing hearing today, Senior Judge Callie V.S. Granade found that Dr. Couch was responsible for illegally prescribing opioids, which when converted to their marijuana equivalency, exceeded 90,000 kilograms of marijuana. In addition, she found that Dr. Couch perjured himself, and that he utilized special skills to carry out his crimes. Thereafter, several family members of deceased Dr. Couch patients spoke to the Court, as did several patients on behalf of the doctor. Ultimately, Judge Granade sentenced Dr. Couch to 240 months in federal prison, and ordered him to pay restitution in the following amounts: $6,282,023.00 to Medicare, $3,649,092.97 to Blue Cross/Blue Shield of Alabama, $2,285,170.70 to Tricare, and $1,695,929.00 to United Heath Group.
Prior to the execution of multiple search warrants by the FBI and DEA on May 20, 2015, Dr. Ruan and Dr. Couch jointly owned and operated two pain management clinics under the name Physicians Pain Specialists of Alabama (“PPSA”) as well as C&R Pharmacy. Following an extensive joint investigation by both FBI-Mobile and DEA-Mobile, both doctors were charged with a litany of federal felony offenses, including RICO conspiracy, conspiracy to violate the Controlled Substances Act, substantive drug distribution offenses, conspiracies to commit wire fraud, mail fraud, healthcare fraud, and to violate the Anti-Kickback Statute, as well as money laundering. All charges stemmed from the defendants’ operation of PPSA and C&R Pharmacy.
During the seven-week trial, which lasted from early January to late February, the United States presented evidence that Dr. Ruan and Dr. Couch utilized PPSA and C&R Pharmacy as a criminal enterprise to violate the Controlled Substances Act and to commit mail and wire fraud, in violation of the RICO Act. Specifically, the jury saw evidence that the defendants knowingly andwillfully prescribed Schedule II and III Controlled Substances, including fentanyl, outside the usual course of professional practice and not for a legitimate medical purpose. The United States argued the defendants’ motive for this illegal prescribing was their own financial self-interest. The United States also argued that the defendants’ billing practices were systematically designed to unlawfully enrich the doctors.
Of particular importance in the trial were two brand name instant-release fentanyl drugs — Subsys and Abstral. Both Subsys and Abstral are only FDA-indicated for breakthrough cancer pain in opioid-tolerant adult patients. However, evidence showed that Dr. Ruan and Dr. Couch almost exclusively prescribed these drugs off-label for neck, back, and joint pain. The jury found that Dr. Ruan and Dr. Couch received illegal kickbacks from Insys Therapeutics, the manufacturer of Subsys, in exchange for the defendants prescribing massive quantities of this drug. Dr. Ruan and Dr. Couch were both among the top prescribers of Subsys in the entire United States. Evidence showed that Dr. Ruan began donating his Insys kickback payments the day after he received a copy of a criminal complaint from the Eastern District of Michigan against Dr. Gavin Awerbuch, another prolific Subsys prescriber who had been charged with receiving kickbacks from Insys. The United States argued that Dr. Ruan’s decision to donate his Insys money was done in an attempt to distance himself from the company.
With regard to Abstral, evidence showed that Dr. Ruan and Dr. Couch purchased approximately $1.6 million worth of stock in Galena Biopharma, the manufacturer of Abstral, and sought to manipulate the stock price by driving up Abstral sales. From the third quarter of 2013 through the 2014, Dr. Ruan and Dr. Couch were the number one and two prescribers of Abstral in the entire United States. During this same time period, nearly one out of every three Abstral prescriptions written in the U.S. were written by either Dr. Ruan or Dr. Couch.
As part of their criminal enterprise, Dr. Ruan and Dr. Couch owned C&R Pharmacy, which was co-located with one of the PPSA clinic locations. C&R Pharmacy would only fill prescriptions written by the doctors at PPSA, and Dr. Ruan and Dr. Couch split 75% of the profits that came in from the prescription drug reimbursements. Approximately 91% of the Subsys and Abstral prescriptions written by the defendants — which cost patients’ insurance anywhere between $1,000.00 to $24,000.00 per month — were filled at C&R Pharmacy.
In addition to C&R Pharmacy, the defendants also had a worker’s compensation dispensary, from which they directly dispensed Controlled Substances. The jury heard evidence that Dr. Ruan and Dr. Couch received guaranteed monthly kickbacks from a dispensary management company — Industrial Pharmaceuticals Management (“IPM”) and later Comprehensive Rx (“CRX”)—in exchange for the defendants dispensing certain drugs with high reimbursement rates. These monthly guaranteed amounts reached $80,000.00 per month for Dr. Ruan and $20,000.00 per month for Dr. Couch. The millions paid in kickbacks to the defendants associated with the worker’s compensation dispensary went into private bank accounts set up by the defendants.
While there were some patients who received legitimate medical care at PPSA, the jury heard evidence that many patients rarely saw either of the doctors, and that the nurse practitioners who treated Dr. Couch’s patients were abusing drugs at the work place and then seeing patients. In addition, the jury heard evidence that Dr. Couch knowingly permitted one of his nurse practitioners, Justin Palmer, to forge Dr. Couch’s name on prescriptions for Controlled Substances. Palmer testified that he forged Dr. Couch’s name approximately 25,000 times while working at PPSA.
After seven-weeks of trial, 81 witnesses, and three days of deliberation, the jury reached the following verdicts: Both doctors were convicted of (1) RICO conspiracy; (2) Conspiracy to prescribe Schedule II and III Controlled Substances outside the usual course of professional practice; (3) Conspiracy to prescribe more than 40 grams of fentanyl outside the usual course of professional practice; (4) Conspiracy to commit healthcare fraud; (5) Conspiracy to commit mail and wire fraud; (6) Conspiracy to receive illegal kickbacks from IPM/CRX related to the workers compensation dispensary; and (7) Conspiracy to receive illegal kickbacks from Insys Therapeutics in exchange for prescribing Subsys. In addition, Dr. Ruan was convicted of both conspiracy and substantive money laundering counts. Each doctor was also convicted of several substantive illegal drug distribution counts related to prescriptions written to particular patients. Dr. Ruan was acquitted of one substantive charge related to prescriptions written for a patient.
Following their convictions, the defendants agreed to forfeit to the United States several houses, beach condos, and bank accounts, as well as 23 luxury cars, including multiple Bentleys, Lamborghinis, Mercedes, and Ferraris. In addition to the forfeited property, each doctors agreed to an additional $5,000,000.00 money judgment. The United States is currently in the process of preparing to sell at auction the forfeited vehicles and property.
Prior to trial, Justin Palmer and Bridgette Parker, both nurse practitioners for Dr. Couch, pled guilty to conspiring to prescribe Controlled Substances outside the usual course of professional practice and not for a legitimate medical purpose. They have already been sentenced to federal prison for 30 months and 20 months, respectively. Christopher Manfuso, who worked for IPM and later owned CRX, pled guilty to conspiring to pay illegal kickbacks to the doctors. He has been sentenced to 6 months home confinement and a $50,000.00 fine. Finally, Insys Therapeutics drug rep Natalie Perhacs pled guilty to conspiring to pay illegal kickbacks associated with the prescribing of Subsys. Perhacs currently awaits sentencing. All four testified against the doctors at trial.
Acting United States Attorney Steve Butler said, “Any medical professional who chooses to place profit over patient care should heed the 20-year prison sentence Dr. Couch received this afternoon. We commend the victims’ family members who spoke so eloquently today about how Dr. Couch’s criminal conduct impacted, and continues to impact, their lives on a daily basis. Furthermore, thank you to our law enforcement partners at the FBI and DEA for their persistence in seeing that justice was done in this important case of national interest.”
“The DEA is committed to investigating and bringing to justice those who divert and traffic prescription drugs,” said Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s New Orleans Field Office. “Opiate abuse is a major problem in Alabama and throughout the nation. The diversion of prescription pain killers contributes to the widespread abuse of opiates and is a gateway to heroin addiction, which is devastating our local communities. This investigation demonstrates the strength of collaborative law enforcement efforts in Alabama and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone who illicitly distributes these drugs. The lengthy sentence received by Dr. Couch appropriately reflects the devastation he caused. This sentence will protect the community from these convicted felons and hopefully deter other medical practitioners who are inclined to put profit over patient health and safety,” said Azzam.
FBI-Mobile Special Agent in Charge Robert Lasky stated, “The FBI is committed to the relationships with the law enforcement community that make these types of investigations possible. We will continue to target illegal activity in the medical profession as was apparent in this case.
This matter was jointly investigated by the DEA-Mobile and FBI-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
Co-defendant Dr. Xiulu Ruan will be sentenced on May 26, 2017.