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10 July 2017
Justice Department Settles Sexual Harassment Lawsuit Against Morgantown, West Virginia, LandlordsRead the Press Release
The Justice Department today announced a settlement with the owners and former managers of more than 70 residential rental properties in the Morgantown, West Virginia area to resolve allegations that Gary Walden, while serving as the manager of these properties, sexually harassed female tenants and prospective tenants, in violation of the Fair Housing Act. Under the settlement, which was approved today by the U.S. District Court for the Northern District of West Virginia, the defendants have agreed to pay a total of $600,000 in monetary damages and civil penalties, and Walden intends to transfer his ownership of these properties and to relinquish his role in managing them.
“It is unacceptable that a woman should have to endure sexual harassment by her landlord in her own home,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement sends a strong message that the Civil Rights Division will aggressively pursue those who engage in this egregious conduct.”
“This type of conduct can never be tolerated in the Northern District of West Virginia or elsewhere,” said Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia. “And while the monetary settlement will not erase the unthinkable violations outlined in this case, it will put all on notice that those who choose to violate anyone’s civil rights will face consequences.”
The settlement requires the defendants to pay $500,000 to persons harmed by the discriminatory conduct and $100,000 to the United States in civil penalties. Walden will be enjoined from engaging in any property management, rental management, or maintenance responsibilities at the rental properties, and from entering the premises or having any contact with current or former tenants of the rental properties, including any individuals determined to be aggrieved persons.
Individuals who believe they were subjected to sexual harassment by Walden should contact the Justice Department (“the department”) at 1-800-896-7743, mailbox 97, or by e-mail at [email protected].
The lawsuit arose when four female tenants filed complaints about Walden with the Department of Housing and Urban Development (“HUD”), which referred the complaints to the department. After conducting an investigation, the department filed this lawsuit in March 2016, alleging that Walden sexually harassed multiple female residents and prospective residents from at least July 2006 through July 2015. According to the department’s complaint, Walden engaged in unwanted and unwelcome sex acts with female tenants, including touching and groping their breasts and genitals; conditioned tangible housing benefits to female tenants in exchange for performance of sex acts; made unwanted and unwelcome sexual comments and verbal sexual advances; entered the homes of female tenants without permission or notice to sexually harass them; and took or threatened to take adverse action against female tenants when they refused or objected to his sexual advances.
The department’s lawsuit names Walden, the estate of his late wife, Tina Walden, and business entities associated with the Waldens’ property ownership and management business, including Walden Homes, LLC, d/b/a Walden Rentals, and 973 Chestnut Ridge Road, Inc. In April 2015, Gary Walden pled guilty to sexual abuse and other charges in the Circuit Court of Monongalia County, West Virginia, and was incarcerated for those offenses from July 2015 to March 2017 in a state prison. In 2006, the West Virginia Attorney General’s Office filed a housing discrimination lawsuit in state court against Walden alleging sexual harassment, which was settled in 2008.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Individuals who believe that they may have been victims of housing discrimination elsewhere should call the department at 1-800-896-7743, or send an e-mail to [email protected], or contact HUD at 1-800-669-9777.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught selling heroin in January of this year pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Judy Kay Smith, 58, entered her guilty plea to distribution of heroin.
On January 5, 2017, deputies with the Cabell County Sheriff’s Department utilized a confidential informant to make a controlled purchase of heroin from Smith. Smith agreed to meet the informant in a parking lot at 4341 U.S. Route 60 in Huntington to complete the transaction. After the informant and Smith arrived at that location, the informant entered Smith’s vehicle where she sold the informant approximately 10 grams of heroin in exchange for $1,200 cash. Smith also admitted that she distributed 20 grams of heroin to the informant on January 9, 2017.
On January 23, 2017, Smith agreed to distribute 20 grams of heroin to an undercover agent with the Huntington FBI Drug Task Force. Prior to the transaction, a trooper with the West Virginia State Police conducted a traffic stop of Smith’s vehicle. Smith was arrested and found with approximately 22 grams of heroin. Law enforcement also executed a search warrant at Smith’s residence and seized additional heroin and two firearms. As part of her plea agreement, Smith agreed to forfeit a vehicle that was used to facilitate the distribution of heroin.
Smith faces up to 20 years in federal prison when she is sentenced on August 10, 2017.
The Huntington FBI Drug Task Force, the Cabell County Sheriff’s Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Honduran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – Wilson Guerrero-Lagos, 34, a Honduran national residing in Worcester, pleaded guilty and was sentenced today by U.S. District Court Judge Timothy S. Hillman to time served and two years of supervised release. Guerrero-Lagos will be subject to deportation.
On Jan. 26, 2017, Guerrero-Lagos was encountered by law enforcement in Worcester and determined to be unlawfully present in the United States. Guerrero-Lagos was previously deported on Nov. 8, 2007.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit prosecuted the case.
Heroin Dealer Who Injured Police Officer Sentenced to PrisonRead the Press Release
A man who injured a police officer as that officer was arresting him for heroin possession was sentenced on July 7, 2017, to 20 months in federal prison.
Albert McReynolds, age 28, from Cedar Rapids, Iowa, received the prison term after an April 12, 2017, guilty plea to possession of heroin with intent to distribute.
At the guilty plea, McReynolds admitted he intended to sell the heroin that was in his possession. Information presented at the sentencing indicated that McReynolds also told officers that he would trade some of the heroin to women for sex. When police found McReynolds in possession of a large quantity of heroin, McReynolds resisted arrest and fought with officers. One police officer received a concussion during the attempt to arrest McReynolds.
McReynolds was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. McReynolds was sentenced to 20 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
McReynolds is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-00009.
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Hancock County man convicted of drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – A Weirton, West Virginia, man was convicted today of distribution of a controlled substance, Acting United States Attorney Betsy Steinfeld Jividen announced.
John Anthony Lamantia, age 60, pled guilty to one count of “Distribution of Controlled Substances Outside the Course of Professional Practice.” Lamantia admitted to distributing alprazolam in Brooke County in April 2016.
Lamantia faces up to five years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Hancock-Brooke-Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Georgia Man Transported Stolen Vehicle from Pennsylvania to West VirginiaRead the Press Release
PITTSBURGH - A resident of Stone Mountain, GA, pleaded guilty in federal court to a charge of interstate transportation of stolen vehicles, Acting United States Attorney Soo C. Song announced today.
Keon D. Butler, 34, of Stone Mountain, GA, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about July 1, 2015, Butler transported a stolen Range Rover supercharged, valued at $93,000, from the Commonwealth of Pennsylvania across state lines into the State of West Virginia.
Judge Cercone scheduled sentencing for November 6, 2017. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police and the Monroeville Police Department conducted the investigation that led to the prosecution of Butler.
Fritch Man Admits Transporting Approximately 2,300 Images of Child PornographyRead the Press Release
AMARILLO, Texas — Kelly Neil Black, 24, of Fritch, Texas, appeared today in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to one count of transportation of child pornography, announced John Parker, U.S. Attorney for the Northern District of Texas.
Black, who has been in custody since the time of indictment in March 2017, faces a maximum of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is scheduled for October 23, 2017.
According to documents filed in the case, on September 22, 2016, a search warrant was executed at Black’s residence in Fritch, Texas. Law enforcement located several items that contained child pornography. A forensic examination later revealed that the items seized by law enforcement contained approximately 2,300 images that had been previously identified as known images containing child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation, Texas Rangers, Hutchinson County Sheriff’s Office and the Potter County Attorney’s Office investigated the case. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
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Fresno Man Sentenced for Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — U.S. District Judge Anthony W. Ishii sentenced Randy Flowers, 51, of Fresno, to two years and nine months in prison for being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.
Flowers is one of seven defendants, including former Fresno deputy police chief Keith Foster, charged in a multi-count indictment returned on April 9, 2015. Flowers entered a guilty plea on April 4, 2017, to Count 10 of the indictment, charging him with being a felon in possession of a firearm. Five of Flowers’ co-defendants entered guilty pleas and have either been sentenced or are awaiting sentencing, Keith Foster proceeded to trial, and on May 23, 2017, a jury found him guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana. He is scheduled to be sentenced on October 10, 2017.
According to court documents, Flowers was arrested on March 26, 2015, after a brief meeting at his home with Keith Foster. Flowers was found to be in possession of a .357-caliber Smith & Wesson revolver, a .45-caliber pistol, and a Remington .30-06 caliber rifle. Having previously been convicted of two felonies, Flowers was prohibited from possessing firearms.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant U.S. Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.
Five co-defendants have pleaded guilty to various offenses related to the drug trafficking conspiracy. Denny Foster is scheduled to be sentenced on August 14, 2017. Ricky Reynolds is scheduled to be sentenced on September 11, 2017. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.
Former Stockton Resident Pleads Guilty in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Darrell Lemont Morris, 46, formerly of Stockton, and currently a resident of Houston, Texas, pleaded guilty today to conspiracy to submit false claims, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2010 and March 2011, Morris conspired with co-defendant Vivian Marie Williams, of Stockton, to defraud the United States by filing false and fraudulent tax returns. Williams prepared tax returns out of her home in Stockton for legitimate clients, but most of the tax returns she prepared were in the names of victims of identity theft. These individuals did not know Williams, did not authorize her to file a tax return on their behalf, and did not receive the refund. Morris allowed Williams to use his bank accounts to deposit the tax refunds and then shared in the proceeds with her. During the scheme, Morris admitted he submitted false claims to the IRS for at least $25,945.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.
Co-defendant Williams was sentenced on October 17, 2016, to four months and 25 days in custody and ordered to pay restitution to the Internal Revenue Service.
Morris is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 8, 2018. Morris faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Running Store Employee Sentenced for $275,000 TheftRead the Press Release
KANSAS CITY, KAN. - An Olathe man was sentenced Monday to a year and a day in federal prison for stealing more than $275,000 in merchandise while he was working for a store that catered to runners, U.S. Attorney Tom Beall said. In addition, he was ordered to pay back the full amount.
Craig W. Sullivan, 41, Olathe, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred while he worked for Garry Gribble’s Running Sports, which has five locations in the Kansas City area. Sullivan oversaw merchandise arriving at the main store in Overland Park. He was responsible for distributing merchandise to the other locations.
In his plea, Sullivan admitted he stole merchandise – primarily Garmin GPS devices – and sold them to a buyer in California via Craigslist. The buyer used PayPal to send Sullivan 51 payments totaling $275,780.
The crime was discovered when Garmin wrote a letter saying Gary Gribble’s Running Stores was being terminated as a retailer. Garmin said devices sent to the store had been sold on eBay for less than the manufacturer’s suggested retail price.
Beall commended the U.S. Postal Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Ohio man pleads guilty to providing money to Anwar al-Awlaki and soliciting the murder of a federal judgeRead the Press Release
Yahya Farooq Mohammad, 39, pleaded guilty today to one count of conspiracy to provide and conceal material support or resources to terrorists and one count of solicitation to commit a crime of violence.
Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division, and U.S. Marshal Peter J. Elliott of the Northern District of Ohio made the announcement. The U.S. Attorney’s Office of the Eastern District of Michigan supervised the prosecution of the solicitation to commit a crime of violence charge.
“The defendant conspired to provide and did provide material support to Anwar Al-Awlaki in response to his calls to support violent jihad,” said Acting Assistant Attorney General Boente. “The National Security Division’s highest priority is counterterrorism and we will continue to pursue justice against those who seek to provide material support to terrorists.”
“This defendant conspired to attack our service members abroad as well as a judge in Toledo,” Acting U.S. Attorney Sierleja said. “He threatened the hallmarks of our democracy. He is a dangerous criminal who deserves a long prison sentence.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted – now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
Mohammad is an Indian citizen who was an engineering student at Ohio State University between 2002 and 2004. He married a U.S. citizen in 2008. He and three other defendants – his brother, Ibrahim Mohammad, Asif Ahmed Salim, and Sultane Room Salim – were indicted by a federal grand jury in September 2015. The case against the remaining three defendants is pending. They have pleaded not guilty.
Mohammad admitted to conspiring with his co-defendants to travel to Yemen to provide thousands of dollars, equipment, and other assistance to Anwar Al-Awlaki, in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. Al-Awlaki was later designated as a global terrorist in 2010 and identified as a “key leader” of al-Qa’ida in the Arabian Peninsula, according to court documents.
On July 22, 2009, Mohammad travelled with two associates to Yemen to meet Awlaki and deliver the $22,000 that they had raised. Although they were unable to meet Awlaki in person, Mohammad and his associates did ensure that Awlaki received the money through a courier.
In addition to pleading guilty to conspiring to provide and conceal material support to terrorists, Mohammad also admitted to soliciting an undercover FBI employee (UCE), posing as a “hitman,” to kidnap and murder U.S. District Judge Jack Zouhary. In or about April 2016 – while the terrorism case was pending and assigned to Judge Zouhary – Mohammad told another inmate in the Lucas County Corrections Center in Toledo, Ohio that he wanted Zouhary kidnapped and murdered and that he was willing to pay $15,000 to have this carried out. The inmate provided Mohammad with the contact information for the UCE and stated that the UCE would need a $1,000 down payment before the murder could occur. The inmate also provided Mohammad with an agreed upon code to use when discussing the planned murder over the jail telephone.
On or about April 26, 2016, Mohammad called the UCE from the Lucas County Corrections Center. Using the agreed-upon code, Mohammad told the UCE he wanted to have Judge Zouhary killed. Mohammad agreed to provide the $1,000 down payment. When asked when he wanted the murder committed, Mohammad stated, “The sooner would be good, you know.” Over the ensuing days, Mohammad arranged to have a family member provide the $1,000 in cash to the UCE. On May 5, 2016, that family member met with the UCE and provided the UCE with $1,000 in cash. Mohammad later informed the inmate that the rest of the money for the murder was coming, according to court documents.
Under the terms of his plea agreement, Mohammad is expected to be sentenced to 27 ½ years in federal prison. Mohammad will be deported from the U.S. upon completion of his sentence, under the terms of his plea agreement.
The case is being prosecuted by Assistant U.S. Attorneys Michael Freeman, Matthew Shepherd and Christos N. Georgalis of the Northern District of Ohio, and Trial Attorneys Gregory Gonzalez and David Smith of the National Security Division’s Counterterrorism Section, following an investigation by the FBI.
Former Office Assistant for Autobody Business Sentenced for Embezzling $500,000 from EmployerRead the Press Release
SPRINGFIELD, Ill. – A former office assistant for Kim’s Autobody, Inc., of Springfield, was sentenced on July 7, for defrauding the business and its owners of approximately $500,000 over a five-year period. U.S. District Judge Sue E. Myerscough ordered that Elaine Eddington, 54, of the 1100 block of N. Hill St., Springfield, serve 27 months (2 years, 3 months) in federal prison and pay restitution in the amount of $505,834. Following completion of the prison term, Eddington was ordered to remain on supervised release for three years. Eddington was remanded to the custody of the U.S. Marshals Service following the hearing.
On Mar. 3, 2017, Eddington pled guilty to three counts of mail fraud related to her embezzlement of funds while she was employed as an office assistant. As the office assistant, from 2009 to 2014, Eddington used her position to embezzle funds which she used to pay personal debts and expenses.
Assistant U.S. Attorney Bryan D. Freres prosecuted the case. The investigation was conducted by the Sangamon County Sheriff’s Office; FBI, IRS-Criminal Investigation; and the U.S. Postal Inspection Service.
Former Jefferson County Resident Pleads Guilty to Identity Theft and Student Loan Fraud ChargesRead the Press Release
St. Louis, MO – Malachi Duncan a/k/a “Demarcus Brewster” pled guilty to charges of student loan fraud and aggravated identity theft. Duncan appeared today before United States District Judge John A. Ross.
According to court documents, Duncan fraudulently used the pedigree information of co-conspirator “Demarcus Brewster” to enroll and gain admission as a full-time student during the 2013-2014 school year at Jefferson College in Hillsboro, MO. As part of the scheme, Duncan fraudulently used Brewster’s identity to obtain federal financial aid, student housing, and on-campus employment. Duncan ultimately was arrested in Memphis, Tennessee where he used an alias to fraudulently enroll as a student at the University of Memphis.
Duncan, 32, a former resident of Hillsboro, Missouri, pled guilty to one count of conspiracy to commit student loan fraud and one count of aggravated identity theft. Sentencing has been set for October 24, 2017.
Duncan faces a statutory mandatory two-year term of imprisonment for aggravated identity theft. also faces a maximum possible penalty of 5 years and/or a fine of up to $250,000.00 for conspiracy to commit student loan fraud. The penalty imposed for aggravated identity theft must run consecutive to the penalty imposed for conspiracy to commit student loan fraud. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, the United States Department of Education, the Office of the Inspector General/Social Security Administration, the United States Marshals Service, the Hillsboro Police Department, the Jefferson County Sheriff’s Department, and the Jefferson College Campus Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Former Hospital Executive Pleads Guilty to Stealing over $390,000 from Medical AssociationRead the Press Release
WASHINGTON - Deborah A. Morrison, a former executive at Providence Hospital, pled guilty today to a federal charge stemming from her theft of $391,600 from an association of medical professionals, announced U.S. Attorney Channing D. Phillips and Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
Morrison, of Bethesda, Md., pled guilty in the U.S. District Court for the District of Columbia to transportation of money taken by fraud. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, she faces a likely range of 24 to 30 months in prison and a fine of up to $95,000. As part of her plea, Morrison has agreed to pay $391,600 in restitution and an identical amount in a forfeiture money judgment. She is to be sentenced on Oct. 2, 2017, by the Honorable James E. Boasberg.
According to a statement of offense submitted as part of the guilty plea, Morrison worked for Providence Hospital from 1978 until 2016, with much of her career in executive positions. Apart from her official work duties, since at least 2001, Morrison oversaw the bank accounts of the Providence Hospital Medical Staff, an association comprised of medical professionals at the facility. In that role, she had access to the checkbooks and reviewed the account statements.
From December 2009 until December 2015, according to the statement of offense, Morrison wrote approximately 140 checks, totaling $391,600, from one of the association’s bank accounts containing dues payments. She endorsed the front of the checks with a signature stamp of a former President of the Medical Staff who no longer worked at Providence Hospital. She deposited all of the checks into her personal bank account.
In announcing the plea, U.S. Attorney Phillips and Assistant Director in Charge Vale commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Kristy Penny and Joshua Fein. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Anthony Saler, who is prosecuting the case.
Former Businessman's Probation Revoked, Sentenced to Prison in $1M Food Stamp Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – The former owner of a Providence convenience store who admitted to masterminding a $1.1 million dollar scheme to defraud the Supplemental Nutrition Assistance Program (SNAP) has been sentenced to 31 months in federal prison, after a court imposed sentence of five-year probation with intermittent confinement was revoked at the government’s request.
In October 2016, Sami Almuhtaseb, 46, of Providence, a former owner of Oasis Market in Providence, was sentenced to five years probation with 730 days intermittent confinement at the Wyatt Detention Center. The intermittent sentence was imposed to permit Almuhtaseb to continue to operate his business. It was later determined by investigators that prior to sentencing, Almuhtaseb had divested himself of his businesses, a fact that he failed to disclose to the court, U.S. Probation or the United States Attorney’s Office at sentencing.
At the government’s request, the court revoked Almuhtaseb’s probation for committing fraud on the court, and sentenced him to federal prison. At the June 30, 2017 sentencing, U.S. District Court Chief Judge William E. Smith also ordered Almuhtaseb to serve 3 years supervised release upon completion of his prison term and to pay restitution to SNAP in the amount of $1,188,729. Almuhtaseb pleaded guilty on April 15, 2016, to conspiracy to commit Supplemental Nutrition Assistance Program fraud and money laundering.
The U.S. Sentencing Guideline range revised to reflect the defendant’s obstruction of justice in this matter is 37- 46 months imprisonment. The government recommended a sentence of 37 months imprisonment.
Almuhtaseb’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General; and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents, between November 2009 and December 2015, the defendant’s store redeemed $2,755,125 in SNAP benefits. Over $1,259,320, or 45% of the food stamp transactions, were for transactions of $100 or more. Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.
An investigation by the United States Attorney’s Office, the Department of Agriculture Office of Inspector General and the FBI determined that at least $1.1 million dollars of SNAP funds received by Almuhtaseb were the result of fraudulent transactions. These fraudulently obtained funds were deposited into bank accounts controlled by Almuhtaseb, from which the defendant withdrew over $770,000 in cash or checks payable to himself.
An analysis of bank records performed by the FBI revealed that Almuhtaseb used a significant portion of fraudulently obtained funds to gamble, acquire real estate and pay for personal entertainment expenses. The FBI analysis showed that among the expenditures, Almuhtaseb used nearly $200,000 of fraudulently gained funds at casinos, paid over $160,000 in mortgages, and used at least $35,000 for entertainment, credit card bills and shopping.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Daniel LeBeau, age 31, was sentenced to 14 months in custody, followed by 3 years of supervised release, $3,745.00 in restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
LeBeau was indicted by a federal grand jury on November 9, 2016. He pled guilty on April 17, 2017.
The conviction stems from an incident that happened between June 2, 2016, and June 13, 2016. LeBeau, who had been drinking alcohol with a friend, entered the victim’s home after parting company with his friend. The structure was in the process of being remodeled and was unoccupied. Once inside, he saw boxes of flooring and a toolbox. LeBeau removed several items from the structure. The total value of the listed property stolen was $2,360.00. There was also $50.00 in damage to the home. Some of the stolen property was recovered by law enforcement.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LeBeau was immediately turned over to the custody of the U.S. Marshals Service.
Detroit man sentenced to five years in federal prison for heroin offenseRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 was sentenced today to five years in federal prison, announced United States Attorney Carol Casto. Corey Lebron Blevins, 24, previously pleaded guilty to possession with intent to distribute heroin.
Between July and October of 2015, Blevins and others distributed heroin that was transported from Michigan to the Huntington area. On July 9, 2015, the Huntington FBI Drug Task Force executed a search warrant at 126 Olive Street in Huntington. Agents located Blevins and another individual in the residence. Agents also seized over $6,000 in cash and an AR-style pistol that Blevins admitted he possessed. On October 5, 2015, the Huntington FBI Drug Task Force conducted another search at 1826 Old 16th Street Road in Huntington. Agents again located Blevins inside the residence, as well as two other individuals. During the search, agents seized over 300 grams of heroin and over $51,000 in cash. Blevins admitted that he and the other individuals intended to sell the heroin.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty for role in federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man involved with others in distributing heroin in the Huntington area in 2014 and 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Bradley William McCutchen, 36, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
On March 28, 2015, agents with the Drug Enforcement Administration Task Force executed a search warrant at The Sandwich Joint, a restaurant located at 417 12th Street in Huntington. Agents had previously purchased heroin at the restaurant on several occasions. During the search, agents located and seized over 275 grams of heroin from a safe located on the second floor of the restaurant. Agents also seized various items of drug paraphernalia during the search, including packaging material, a digital scale, and multiple bottles of inositol powder, which is commonly used as a cutting agent in the preparation of heroin for distribution. McCutchen admitted that he used the restaurant to store heroin that he supplied to other individuals and distributed himself. McCutchen further admitted that between August 2014 and March 2015, he supplied the owner of the restaurant with heroin that he transported to Huntington from Detroit.
McCutchen faces at least 5 and up to 40 years in federal prison when he is sentenced on October 10, 2017.
The Drug Enforcement Administration Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Day Care Owner Pleads Guilty to Stealing Government FundsRead 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 Halima Mohamed, 35, of Buffalo, NY, pleaded guilty to theft of government funds before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that in February 2015, the defendant and her husband, Tariq Butt, opened Twinkle Stars Day Care Center in Buffalo. Between January 2016 and September 2016, Mohamed submitted hundreds of fraudulent claims to Erie County seeking reimbursement for daycare services purportedly provided by Twinkle Stars to children eligible for Child Care and Development Block Grant funds from the U.S. Department of Health and Human Services. The defendant knew that the children listed on the claims did not actually attend Twinkle Stars on the dates and times claimed, making the daycare ineligible for reimbursement. In total, between January 2016 and September 2016, Erie County paid Twinkle Stars approximately $130,188 for daycare services, which were never rendered.
The plea is the result of an investigation by the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent-in-Charge Scott Lampert, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for November 1, 2017, at 10:00 a.m. before Judge Vilardo.
Danville Sex Offender to Serve 17 1/2 Years in Federal Prison for Receiving, Possessing Child PornographyRead the Press Release
URBANA, Ill. – A Danville, Ill., man, who was registered as a sexual predator in Vermilion County, was sentenced on July 7, 2017. U.S. District Judge Colin S. Bruce ordered John F. Gherna, 52, of the 2400 block of Cedar St., to serve 17 ½ years (210 months) in federal prison for receiving and possessing child pornography. Upon completion of his prison sentence, Gherna was ordered to remain on supervised release for 15 years.
On Mar. 6, 2017, Gherna entered pleas of guilty to receiving child pornography from 2014 to 2016, and to possession of child pornography on June 13, 2016. Gherna has remained in the custody of the U.S. Marshals Service since he was arrested and charged by criminal complaint on June 15, 2016.
According to court documents, when Gherna was arrested on federal charges, he was registered as a sex offender as a result of a prior conviction for aggravated criminal sexual abuse of a minor.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The Champaign Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Conroe Man Sentenced for Trafficking Cocaine and Conspiring to Launder Drug MoneyRead the Press Release
HOUSTON – A 45-year-old local man has been ordered to federal prison following his convictions of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine and conspiracy to launder money, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Benitez, of Conroe, Nov. 3, 2016, following one day of deliberations and three days of trial.
Today, U.S. District Judge Vanessa Gilmore handed Benitez a 188-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Gilmore noted that while Benitez was convicted for his involvement in two specific loads of cocaine totaling 101 kilograms, he was also involved in a wide-ranging conspiracy that trafficked large amounts of drugs and used a business he owned to launder large amounts of money from drug sales.
During trial, the jury heard that the investigation began in early 2011. At that time, agents with the Drug Enforcement Administration (DEA) in Philadelphia, Pennsylvania, seized approximately four kilograms of cocaine from a vehicle that had been driven there from the Houston area. The investigation revealed the vehicle had recently been sold by Bensol Auto Sales in Arcola, Texas - a used car dealership that Benitez owned.
Houston agents then realized one of their confidential sources had already been speaking to Benitez about trying to buy large amounts of cocaine from him and his drug supplier. Benitez subsequently had told the individual that he moved large amounts of cocaine (25-100 kilograms at a time) and that he had a very well-connected drug supplier who could make such large deals happen.
The jury also heard that on June 16, 2011, a North Carolina Highway Patrol trooper pulled over a Ford F-150 pickup truck in Monroe, North Carolina, for a traffic violation. Reuben Orozco-Garcia was driving with Juan Gonzalez-Bejar as a passenger. The truck contained 81 kilograms of cocaine. Testimony at trial revealed Orozco-Garcia had made a deposit of $9,000 into a bank account belonging to Bensol Auto Sales and Benitez the day of the cocaine seizure. The jury also heard that Benitez was using this Bensol Auto Sales account to launder the drug trafficking proceeds and that he supplied vehicles from Bensol to his drug supplier to transport drugs to other parts of the United States.
Orozco-Garcia and Gonzalez-Bejar pleaded guilty in North Carolina and were previously sentenced to federal prison.
The evidence at trial also showed that in the fall of 2013, Guadalupe Herrera-Monarrez delivered approximately 20 kilograms of cocaine to Benitez on a ranch he owns in Conroe. This delivery happened in the early morning hours and was directed by Benitez’ drug supplier, who was then located in Mexico. Herrera-Monarrez was convicted for his role in this offense in a separate federal case.
The jury ultimately convicted Benitez on all accounts as charged.
Previously released on bond, Benitez was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Also charged is Rodolfo Penaloza, 41, of Mexico, but not as yet in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 713-693-3000.
The DEA, Internal Revenue Service – Criminal Investigation and the North Carolina Department of Public Safety conducted this Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Arthur R. Jones and Richard J. Magness are prosecuting the case.
Clairton Man Pleads Guilty to Robbing Two Southwestern Pennsylvania BanksRead the Press Release
PITTSBURGH -A former resident of Clairton, Pennsylvania, pleaded guilty in federal court, on July 7, 2017, to charges of bank robbery, Acting United States Attorney Soo C. Song announced today.
Raymond Zwibel pleaded guilty to two counts before United States District Judge S. David Cercone.
In connection with the guilty plea, the court was advised that on August 19, 2013, the First Commonwealth Bank in New Alexandria, Pa. was robbed by a white male with a note and no observable firearm. On August 23, 2013, the Citizens Bank in Latrobe, Pa. was robbed by a white male with a note and no observable firearm. On January 30, 2014, the First Commonwealth Bank in West Mifflin, Pa. was robbed by a white male with a note and no observable firearm. Zwibel was identified by police from bank surveillance footage as the robber on January 30, 2014. After waiving Miranda, Zwibel confessed to committing the robberies on August 19, 2013 and January 30, 2014 and to using his girlfriend’s vehicles. Zwibel previously pleaded guilty to the January 30, 2014 bank robbery in the Allegheny County Court of Common Pleas.
Judge Cercone scheduled sentencing for November 6, 2017, at 11 a.m. The law provides for a total sentence of 40 years in prison, a fine of up to $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the court returned Zwibel to the custody of the United States Marshal Service.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of Zwibel, with valuable assistance from many state and local police departments including the Pennsylvania State Police, the Latrobe Police Department and the West Mifflin Police Department.
Christiansburg Pair Sentenced on Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Christiansburg residents were sentenced today in the United States District Court for the Western District of Virginia in Roanoke on Federal drug conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Timothy Wayne Radford, 49 and Melissa Dawn Lytton, 45, each previously pled guilty to conspiracy charges. Radford pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Lytton pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute methamphetamine. Today in District Court, Radford was sentenced to 135 months in federal prison. In a separate hearing today, Lytton was sentenced to 127 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Ashley B. Neese, Radford and Lytton admitted to being involved in a conspiracy to distribute methamphetamine since at least late 2015 and continuing through March 2016, which was accountable for distributing between 1.5 and 5 kilograms of methamphetamine.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Floyd County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Charleston man pleads guilty to Social Security fraudRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to Social Security fraud, announced United States Attorney Carol Casto. Thomas Bennett, 58, entered his guilty plea to theft of public money.
Bennett admitted that he participated in a scheme in which his family members, in 1986, fraudulently applied for Social Security benefits. The fraudulent application was in the name of a family member who died in 1967 and members of Bennett’s family were not entitled to receive any benefits. Bennett subsequently learned about the fraud and in 2000, he joined his family in participating in the scheme. When the other family members died in 2012 and 2013, Bennett took over the Social Security scheme and continued to cash Social Security benefits checks that he knew he was not entitled to receive. Bennett assisted his other family members in cashing Social Security benefits checks dating back to the year 2000 totaling $36,927. As part of his plea agreement, Bennett has agreed to pay $36,927 in restitution.
Bennett faces up to 10 years in federal prison and a $250,000 fine when he is sentenced on October 11, 2017.
The investigation was conducted by the Social Security Administration’s Office of the Inspector General and the Social Security Administration. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presiding over the case.
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Burlington County, New Jersey, Man Sentenced to 54 Months in Prison for Wire Fraud, Money LaunderingRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man has been sentenced to 54 months in prison for his role in a mortgage fraud scheme that caused $2.7 million in losses, Acting U.S. Attorney William E. Fitzpatrick announced today.
Pierre Chainey, 42, of Tabernacle, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of conspiracy to commit wire fraud and one count of money laundering. Judge Hillman imposed the sentence on July 7, 2017, in Camden federal court.
According to documents filed in this case and statements made in court:
In November 2005, Chainey established Universal Lending Solutions LLC, a mortgage brokerage company in Northfield, New Jersey, and served as chief executive office of the company until 2008. He was also a loan officer for the company.
From November 2005 through at least January 2008, he conspired with others to profit from the sale and purchase of properties in New Jersey by obtaining mortgage loans for unqualified borrowers using fraudulent loan applications, HUD-1 Settlement Statements and other documents.
In addition to the prison term, Judge Hillman sentenced Chainey to three years of supervised release; restitution will be determined at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Newark.
Brooklyn Pharmacy Owner/Operator Charged with Defrauding Medicare and Medicaid Programs of Approximately $9 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the New York Office of the Federal Bureau of Investigation (“FBI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office for the Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), and Dennis Rosen, Inspector General of the New York State Office of the Medicaid Inspector General (“OMIG”), announced today the unsealing of a criminal Complaint charging defendant SUNITA KUMAR with operating a health care fraud scheme utilizing two pharmacies in Brooklyn, New York, through which KUMAR submitted approximately $9 million in fraudulent claims to Medicaid and Medicare. KUMAR was arrested this morning and was presented in Manhattan federal court today before U.S. Magistrate Judge Andrew J. Peck.
Manhattan Acting U.S. Attorney Joon H. Kim said: “As alleged, Sunita Kumar defrauded Medicare and Medicaid, public programs to assist the indigent and the elderly, by submitting $9 million in fraudulent claims. She allegedly did so by inducing people to surrender their own prescriptions and forego their medications in exchange for kickbacks. Medicare and Medicaid provide critical health care for some of our most vulnerable citizens. Together with our law enforcement partners, we will aggressively pursue those who allegedly use public programs as a vehicle for illegal personal profit.”
FBI Assistant Director William F. Sweeney Jr. said: “Exploiting our federal and state health care programs places the economy at a significant disadvantage and threatens the stability of the health care industry overall. Because there’s no single, clearly identifiable victim, the public often finds these schemes incomparable to other, more explicit frauds. But everyone deserves to know that health care fraud alone costs this country tens of billions of dollars a year, not to mention the obvious health safety risks it presents. We will continue to confront this type of crime, and root it out, until it no longer exists.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert said: “Prescription drug scams, such as the one alleged in this case, work to undermine our nation’s health care system. Today’s arrest coordinated with our law enforcement partners serve as a stern warning to pharmacy owners tempted to plunder government health programs meant to care for our most vulnerable citizens.”
Medicaid Inspector General Dennis Rosen said: “Exploiting the Medicaid program for personal gain by preying upon New York’s most-vulnerable populations is reprehensible. We will continue to work closely with our federal, state and local partners to hold wrongdoers fully accountable and protect the integrity of the Medicaid program.”
According to the allegations contained in the Complaint[1]:
KUMAR – while owning one pharmacy herself and operating a second pharmacy, both located in Brooklyn, New York – conducted a multimillion-dollar scheme to defraud Medicare and Medicaid programs by fraudulently seeking reimbursements for prescription drugs. Specifically, KUMAR engaged in a scheme to obtain prescriptions for medications, for which her pharmacies billed and received reimbursement from Medicare and Medicaid, but which she did not actually dispense to customers. From in or about January 2015 through in or about December 2016, KUMAR obtained approximately $9 million in reimbursements from Medicare and Medicaid for prescription drugs that her pharmacies never actually dispensed. KUMAR defrauded Medicare and Medicaid into providing her pharmacies with these reimbursements by obtaining prescriptions from other individuals, who were willing to forego delivery of the medications in exchange for a share of the reimbursed proceeds, in the form of kickbacks paid by KUMAR.
* * *
KUMAR, 54, of Old Westbury, New York, is charged with one count of health care fraud, which carries a maximum sentence of 10 years in prison, and one count of paying illegal remuneration in the form of kickbacks, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI, HHS-OIG, and OMIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Sarah E. Paul 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 phase 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.
Border Patrol Officer and His Wife Convicted in Federal Court for Conspiracy to Illegally Smuggle Ritalin into the United States from MexicoRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Judge William H. Steele sentenced border patrol officer Frank Peter Salamone and his wife Heather Turner Salamone on July 6, 2017. They were both to serve a term of imprisonment of time served followed by 3 years of supervised release for the conspiracy to illegally import Methylphenidate (Ritalin) into the United States in violation of 21 U.S.C. § 963.
In October 2015, Homeland Security Investigations and the United States Postal Inspection Service began an investigation into an organization that was smuggling Methylphenidate (Ritalin) pills into the United States from Mexico. During the investigation, it was revealed that both defendants, made several wire transactions totaling approximately $12,000.00 to a third co-defendant, Marangely Conde for the purposes of purchasing the Methylphenidate Hydrochloride (Ritalin) from Mexico. After receiving the payments, Conde crossed the border into Mexico to procure the Ritalin and illegally smuggle the narcotics back into the United States and then ship the narcotics via U.S. mail to the defendants who resided in Mississippi. Consequently, federal authorities were able to intercept and track the illegal shipments of Ritalin and discovered that the address in Mississippi belonged to Frank Peter Salamone, was an employee of a United States Border Patrol. The defendants previously entered their guilty pleas before the Court on March 27, 2017. The third co-defendant, Marangely Conde, entered a guilty plea on March 24, 2017, and is scheduled to be sentenced on July 27, 2017.
The case was investigated by the United States Department of Homeland Security, Homeland Security Investigations, and the United States Postal Inspection Service. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Baltimore CFO Charged with Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Jay Edward Wilkins, age 47, of Stoney Beach, Maryland, was charged with wire fraud in a scheme to defraud his employer of more than $200,000. The criminal complaint was issued on July 6, 2017, and unsealed today upon the arrest of the Wilkins.
The charges were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the criminal complaint, Wilkins, had been improperly diverting corporate funds for his own personal use for multiple years. In or about 2012, Wilkins filed for Chapter 13 bankruptcy, citing primarily consumer debts. According to the bankruptcy petition, Wilkins had several pending loans relating to real estate and a boat, as well as more than $30,000 in credit card debt.
Wilkins allegedly diverted more than $200,000 in corporate funds using the identities of three former employees. In one instance, one of the employee whose identity was used had not been an employee for over five years.
Wilkins faces a maximum sentence of 20 years in prison for the wire fraud. His initial appearance is today at 3:15 p.m.
A criminal charge is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney’s Harry Gruber and Paul Riley, who are prosecuting the case.
Arkansas Man Sentenced for Wire Fraud and Aggravated Identity TheftRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kevin L. Reese, age 28, a resident of Little Rock, Arkansas, was sentenced on July 7, 2017, by Senior United States District Court Judge James M. Munley to serve 70 months’ imprisonment for mail fraud and aggravated identity theft.
According to United States Attorney Bruce D. Brandler, a federal jury convicted Reese in February 2017, on six counts of mail fraud and six counts of aggravated identity theft. Between November 2014 and August 2015, Reese defrauded Sheehan Pipe Line and Construction Company of approximately $300,000 while employed by Sheehan as a manager of a field office located in Dunmore, Pennsylvania. Reese engaged in a scheme to create and generate fraudulent payroll checks for Sheehan employees for time periods that began either before the employee started employment with Sheehan, or after the employee left employment with Sheehan. Reese fraudulently created the payroll checks by unlawfully using the names of Sheehan employees and then forged their names to the checks.
In addition to the prison term, Senior Judge Munley also ordered that a probation officer supervise Reese for three years following his release from prison, and that Reese pay restitution in the amount of $225,714.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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Amarillo Heroin Trafficker Sentenced to 121 Months in Federal Prison for Possessing More Than 17,000 Grams of HeroinRead the Press Release
AMARILLO, Texas — Jose Emmanuel Morales Rittingger, 29, was sentenced this morning before U.S. District Judge Sidney A. Fitzwater to 121 months in federal prison for possessing with the intent to distribute more than 17,000 grams of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Rittingger pleaded guilty in March 2017 to one count of possession with intent to distribute one kilogram or more of heroin and has been in custody since the time of his arrest in August 2016. Rittingger is a Mexican citizen and was in the United States illegally at the time of the offense. He will be deported after serving his sentence.
Co-defendant Joel Lara Merida, 31, was sentenced earlier this year by U.S. District Judge Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016.
“It is imperative that we reduce the supply of heroin,” said U.S. Attorney Parker. “Drug overdose deaths involving heroin continue to climb sharply, more than tripling in the last four years.”
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
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Albany Man Sentenced for Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Nicholas M. Signore, age 27, of Albany, New York, was sentenced today to 1 year and 1 day of imprisonment, to be followed by 3 years of supervised release, for conspiring to distribute oxycodone in Albany County.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
United States District Judge Mae A. D’Agostino also ordered that Signore forfeit $19,872 in drug proceeds.
As part of his December 23, 2016 guilty plea, Signore admitted that he obtained oxycodone tablets from a co-conspirator for resale in Albany County.
This case was investigated by the DEA and prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Accomplice Sentenced in Deaths of Two Immigrants Smuggled in Trunk at San Diego-Tijuana BorderRead the Press Release
Special Assistant U.S. Attorney Beena M. McDonald (619) 546-9774
Assistant U.S. Attorneys Patrick J. Bumatay (619) 546-8450 and Michael Wheat (619) 546-8437
NEWS RELEASE SUMMARY – July 10, 2017
SAN DIEGO – Pedro Velasco-Manzano was sentenced in federal court today to 12 months in custody for actions that ultimately resulted in the deaths of two unauthorized immigrants who perished in the trunk of a car at the San Ysidro Port of Entry in August 2014.
As part of the plea agreement, Velasco-Manzano, a citizen of Mexico, admitted he helped arrange the smuggling of Mexican citizens Tarcisio Casas-Blanco and Jose Aurelio Quiroz-Casas into the United States in August 2014 for a fee of $11,500 – an amount that included his $200 take. After speaking directly with the victims, Velasco-Manzano arranged for them to be housed in Tijuana until plans for a smuggling event could be made by his superiors. Velasco-Manzano then transported the victims from their stash house and delivered them directly to the smugglers, Nicholas George Zakov and Eduard Ervemac Saavedra.
Saavedra enticed Zakov to smuggle the victims into the United States with the prospect of $3,500 cash. On the morning of August 12, 2014, Saavedra arranged for the two victims to be hidden in the trunk of Zakov’s Dodge Challenger in Tijuana, Mexico. Saavedra then directed Zakov to enter the United States through the San Ysidro Port of Entry with Casas-Blanco and Quiroz-Casas remaining in the trunk, exposing them to rising temperatures and little ventilation. U.S. Customs and Border Protection officers later discovered Casas-Blanco and Quiroz-Casas unresponsive inside the Challenger’s trunk. Medical attention was immediately sought for the two, but they died a short while later of hyperthermia and mechanical asphyxiation.
Zakov, a U.S. citizen, pleaded guilty in 2015 to alien smuggling charges for his role in the deaths of the victims and was sentenced to 84 months in prison. Saavedra, a Peruvian citizen, pleaded guilty in 2016 to alien smuggling charges for his role in the deaths of the victims and was sentenced to 63 months in prison. U.S. District Judge Anthony J. Battaglia sentenced Zakov, Saavedra, and now Velasco-Manzano.
The investigation and arrest of Velasco-Manzano was the result of the collaboration of Homeland Security Investigations, U.S. Customs and Border Protection, San Diego Police Department, and the Baja California State Preventive Police Department.
DEFENDANT Criminal Case No. 17CR0561-AJB
Pedro Velasco-Manzano Age: 44 Oaxaca, Mexico
SUMMARY OF CHARGES
Counts 1 and 2: Encouraging and Inducing Illegal Aliens, Aiding and Abetting, 8 U.S.C. §1324(a)(1)(A)(iv), and (v)(II)
INVESTIGATING AGENCIES
U.S. Customs and Border Protection
Homeland Security Investigations
San Diego Police Department
Baja California State Preventive Police Department
7 July 2017
Williamsport Man Sentenced to 12 Years’ Imprisonment for Distribution of Heroin and CocaineRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Antoine Paris Davis, age 39, a resident of Williamsport, Pennsylvania, was sentenced to 12 years’ imprisonment by United States District Court Judge Matthew W. Brann for the distribution of 100 grams or more of heroin.
Davis was convicted by a federal jury on September 30, 2016, of conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine. The jury also found Davis was responsible for the distribution of 100 grams or more of heroin. One hundred grams of heroin is the equivalent of approximately 4,000 individual doses of potentially fatal heroin.
According to United States Attorney Bruce D. Brandler, from June 2014 through January 2015, Davis conspired with co-defendant, Rasheem Jarbar Ruley, age 24, a resident of Williamsport, to distribute heroin and cocaine to drug users and sellers in Williamsport and distributed and possessed those substances with the intent to distribute on four separate occasions. Ruley and Davis stored heroin and cocaine at their residence on Tinsman Avenue in Williamsport, including a large bag containing over 100 grams of heroin (136 small bags of heroin packaged for sale), 16 bags of cocaine, and digital scales. Pennsylvania State Police investigators also found approximately $1,300 in cash drug proceeds, digital scales used to weigh drugs, plastic bags, wax packets, and rubber bands used to package heroin and cocaine for distribution.
Ruley was sentenced to 60 months’ imprisonment by Judge Brann for conspiracy to distribute heroin and cocaine and possession with intent to distribute heroin and cocaine.
The case was investigated by the Pennsylvania State Police, the Williamsport Bureau of Police, the Lycoming County District Attorney’s Office, the Lycoming County Narcotics Enforcement Unit, and the Federal Bureau of Investigation Safe Streets Task Force. Assistant U.S. Attorney George Rocktashel prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Warren man indicted for stealing government fundsRead the Press Release
A federal grand jury indicted Dean Nikolaides, 63, of Warren, for theft of government funds, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Nikolaides fraudulently received approximately $82,000 in benefits over 14 years from the Pension Benefit Guaranty Corporation to which he knew he was not entitled. The PBGC is a federal agency that protects the retirement incomes of American workers in private-sector defined benefit pension plans, according to the indictment.
The PBGC Office of the Inspector General conducted the investigation. The Social Security Administration Office of the Inspector General and the United States Postal Inspection Service aided in the investigation. Special Assistant U.S. Attorney Lisa J. Sanniti is prosecuting the case.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. 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.
Waldo Man Pleads Guilty to Firearm ChargeRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jesse Newton, 29, of Waldo, Maine, pleaded guilty today in U.S. District Court to being a felon in possession of a firearm. Newton also admitted in Court to violating terms of his supervised release.
Court records reveal that on July 13, 2016, Jesse Newton was serving a term of federal supervised release for a 2013 felony firearms conviction. U.S. Probation Officers and investigators employed by the Office of the Maine State Fire Marshal conducted searches of Newton’s residence. They discovered a loaded 9mm semiautomatic pistol, 9mm casings, rifle stocks, 46 marijuana plants and a cell phone. An examination of the contents of the cell phone along with DNA evidence and witness testimony established that Newton had possessed the firearm and had used it for target shooting.
Newton faces up to ten years in prison and a $250,000 fine for his unlawful firearm possession as well as an additional two years of imprisonment for violating the terms of his supervised release. He will be sentenced after the completion of presentence investigation and revocation reports by the United States Probation Office.
The investigation was conducted by the U.S. Probation Office, the Office of the Maine State Fire Marshal, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Waldo County Sheriff’s Office.
Wal-Mart Pays $1.65M to Settle False Claims Act Allegations of Improper Medi Cal BillingsRead the Press Release
SACRAMENTO, Calif. — Wal-Mart Stores Inc. has paid $1.65 million to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney Phillip A. Talbert announced today.
“These Medi-Cal regulations are essential to protect both patients and limited heath care funding,” said U.S. Attorney Talbert. “My office will continue to hold pharmacies accountable when they fail to comply with regulations like these.”
Walmart, headquartered in Bentonville, Arkansas, operates over 290 retail stores in California; approximately 283 of these locations have pharmacies. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.
Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Walmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Walmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.
The allegations resolved by this settlement were first raised in a lawsuit filed against Walmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who has worked at Walmart locations in the greater Sacramento area. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $264,000 of the recovery proceeds.
This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Wakarusa Man Sentenced to 57 Months ImprisonmentRead the Press Release
SOUTH BEND - Acting United States Attorney Clifford D. Johnson announced that Willard Quinn, 42, of Wakarusa, Indiana was sentenced before District Court Judge Jon E. DeGuilio for being a felon in possession of a firearm.
Quinn was sentenced to 57 months of imprisonment and 2 years of supervised release.
According to documents in this case, on July 28, 2016, Quinn was pulled over in a vehicle stop. There was a loaded firearm under the front passenger seat and drug paraphernalia inside the vehicle. Quinn has multiple felony convictions.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police and handled by Assistant U.S. Attorney Molly E. Donnelly.
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Vincent John Quitugua Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant VINCENT JOHN QUITUGUA, age 47, from Piti, was sentenced on July 6, 2017, in District Court to a 57-month concurrent term of imprisonment for possession of a controlled substance (methamphetamine) with intent to distribute, and maintaining a drug-involved premises. The Court also ordered QUITUGUA to pay a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On July 6, 2106, QUITUGUA entered a guilty plea to both crimes. The investigation revealed that QUITUGUA, a public school teacher, was selling methamphetamine and conducting an extensive marijuana grow operation from his Piti, Guam residences. QUITUGUA was discovered with over ten grams of methamphetamine with a purity level of 99%, approximately 121 living marijuana plants, 429 grams of processed marijuana, four firearms, $72,922.50 in U.S. currency as well as four scales, glass pipes and paraphernalia.
The District Court noted that QUITUGUA is a public school teacher with over 20 years of experience in Guam’s middle school. Court expressed concern that QUITUGUA had four firearms in close proximity to the drugs, and noted that the sales of methamphetamine and the marijuana grow occurred in close proximity to a middle school. Court ordered that the currency, firearms and ammunition be forfeited to the U.S. government.
The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.
Two More Defendants Plead Guilty in Multimillion Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Arizona man and an Illinois woman each pleaded guilty to conspiracy charges today for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.
Bhavesh Patel, 47, most recently residing in Gilbert, Arizona, pleaded guilty to money laundering conspiracy, in violation of Title 18, U.S. Code, Section 1956(h). Asmitaben Patel, 34, most recently residing in Willowbrook, Illinois, pleaded guilty to a conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371. The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing dates are pending.
According to admissions made in connection with their respective pleas, Bhavesh Patel, Asmitaben Patel, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to Bhavesh Patel’s guilty plea, beginning in or around January 2014, Bhavesh Patel managed the activities of a crew of runners, directing them to liquidate victim scam funds in areas in and around south and central Arizona per the instructions of conspirators from India-based call centers. Patel communicated via telephone about the liquidation of scam funds with both domestic and India-based co-defendants, and he and his crew used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for percentage-based commissions from his India-based co-defendants. Patel also admitted to receiving and using fake identification documents, including phony driver’s licenses, to retrieve victim scam payments in the form of wire transfers, and providing those fake documents to persons he managed for the same purpose.
Based on admissions in Asmitaben Patel’s guilty plea, beginning in or around July 2013, Asmitaben Patel served as a runner liquidating victim scam funds as part of a group of conspirators operating in and around the Chicago area. At the direction of a co-defendant, Patel used stored value cards that had been loaded with victim funds to buy money orders and deposit them into various bank accounts, including the account of a lead generating business in order to pay the company for leads it provided to co-conspirators that were ultimately used to facilitate the scam.
To date, Bhavesh Patel, Asmitaben Patel, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including today’s pleas, a total of eleven defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, and Fahad Ali previously pleaded guilty on various dates between April and June 2017.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Two Eagle Butte Men Charged with Firearm ViolationsRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Unlawful Possession of Firearms and Ammunition.
Colten Walker Dolphus, age 30, and Elliot Tiger, age 27, were indicted on June 14, 2017. Dolphus appeared before U.S. Magistrate Judge Mark A. Moreno on June 15, 2017, and Tiger appeared on June 22, 2017. Both men pled not guilty to the Indictment.
The maximum penalty upon conviction for each individual is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, forfeiture of the firearms and ammunition, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 9, 2016, Dolphus and Tiger unlawfully received and possessed firearms, which had been shipped and transported in interstate and foreign commerce, because Dolphus had previously been convicted of a misdemeanor crime of domestic violence and, both Dolphus and Tiger were users of, and addicted to, a controlled substance.
The charges are merely accusations and Dolphus and Tiger are presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Dolphus and Tiger were released on bond pending trial. Trial is scheduled for August 22, 2017.
Three Individuals Sentenced for Heroin Distribution, Assault on Red Lake Indian ReservationRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of GREGORY VERNELL BENTLEY, 32, CRAIG VERNARD BENTLEY, 29, and VANESSA LYNNE BROWN, 24, for their roles in a violent heroin distribution ring. All three defendants entered guilty pleas and were sentenced before Senior Judge Michael J. Davis in U.S. District Court.
According to their guilty pleas and documents filed in court, between August 26, 2015 and August 14, 2016, BROWN and CRAIG BENTLEY conspired with others to possess and distribute heroin on the Red Lake Indian Reservation. On August 14, 2016, CRAIG BENTLEY met with BROWN at the Red Lake Casino and dropped off 350 grams of heroin, which BROWN intended to sell. As part of the heroin distribution conspiracy, CRAIG BENTLEY and BROWN made regular trips between the Twin Cities and the Red Lake Indian Reservation to pick up and drop off heroin and cash.
According to his guilty plea and documents filed in court, on August 14, 2016, during an attempt to collect a drug debt in relation to the heroin distribution conspiracy, GREGORY BENTLEY shot an adult male with a 9 mm Smith & Wesson pistol, causing serious bodily harm.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
This case resulted from an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
The case was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
Defendant Information:
GREGORY VERNELL BENTLEY, 32
St. Paul, Minn.
Convicted:
- Assault with a dangerous weapon, 1 count
Sentenced:
- 77 months in prison
- Three years of supervised release
CRAIG VERNARD BENTLEY, 29
St. Paul, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute heroin, 1 count
Sentenced:
- 120 months in prison
- Five years of supervised release
VANESSA LYNNE BROWN, 24
Red Lake, Minn.
Convicted:
- Conspiracy to distribute and possess with intent to distribute heroin, 1 count
Sentenced:
- 40 months in prison
- Four years of supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Third Circuit Affirms Conviction of Rabbis in Kidnapping CaseRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today affirmed the convictions of three Orthodox rabbis who were convicted at trial of conspiring to kidnap Orthodox Jewish husbands who refused to grant their wives permission to divorce, Acting U.S. Attorney William E. Fitzpatrick announced.
In a precedential opinion in the consolidated appeals of Orthodox rabbis Binyamin Stimler, Jay Goldstein, and Mendel Epstein, the appeals court affirmed the convictions in all respects.
The goal of the conspiracy was to coerce the recalcitrant husbands to grant a “get” – permission to obtain a religious divorce – to their wives. On appeal, the defendants raised numerous claims, including a constitutional challenge to a federal statute and a claim that the prosecution violated the Religious Freedom Restoration Act.
The government was represented by Assistant U.S. Attorneys Norman Gross and Glenn J. Moramarco of the U.S. Attorney’s Office Appeals Division in Camden.
Stimler, Goldstein & Epstein Verdict Release
Stimler & Epstein Sentencing Release
Goldstein Sentencing Release
Tazewell Woman Pleads Guilty to Federal Firearms ChargesRead the Press Release
Abingdon, VIRGINIA – A Tazewell woman, who illegally purchased firearms for her son and lied about the purchases, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to a pair of federal charges, Acting United States Rick A. Mountcastle announced.
Glenna Elswick, 50, pled guilty yesterday to one count of making a false statement in connection with the acquisition of a firearm from a licensed dealer and one count of providing a firearm to a prohibited person.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between October 2016 and February 2017, Elswick purchased at least seven firearms for her son, Matthew Elswick, who is prohibited from owning firearms due to his status as a previously convicted felon. In the process of purchasing the firearms, Elswick made false statements on ATF forms stating she was buying the firearms for her own use.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Sutter County Women Sentenced to 2 Years in Prison for Making False Statements to the Grand JuryRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Harjit Kaur Johal, 50, and Jasvir Kaur, 47, each to two years in prison for making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial in March 2017, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
This case is part of a series of cases involving the Khan family’s fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant U.S. Attorneys Jared C. Dolan and Jeremy J. Kelley prosecuted the case.
St. Joseph Mother, Daughter Plead Guilty in $1.5 Million Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., mother and daughter pleaded guilty in federal court today to their roles in a $1.5 million tax fraud scheme as well as individual tax fraud.
Dawn Langlais (formerly Ankrom-Brown), 59, and her daughter, Jennifer Sturgis, 38, both of St. Joseph, pleaded guilty in separate appearances before U.S. District Judge Beth Phillips to the charges contained in a July 20, 2016, federal indictment.
Langlais pleaded guilty to failing to pay over employee payroll taxes to the IRS. Sturgis pleaded guilty to making false statements on a tax return.
From 2001 through early 2010, Langlais assisted in the operation of Homeward Bound Health Services, Inc., a home health provider located in St. Joseph. In 2010, Homeward Bound’s name was changed to Silver Linings, Inc., and nominee owners were put in place who signed the checks but made no business decisions. Langlais continued to assist in the operation of Silver Linings, which closed in 2013.
Langlais employed her daughter, Sturgis, and other relatives at Homeward Bound and Silver Linings.
Homeward Bound and Silver Linings withheld and collected federal income taxes, Social Security taxes, and Medicare taxes from employees and then kept those withheld taxes instead of paying them over to the IRS. The total criminal tax loss attributed to Homeward Bound and Silver Linings for failure to pay employment taxes due and owing from 2001 to 2012 is $1,459,727.
Homeward Bound and Silver Linings also withheld from employee paychecks and kept child support payments, employee IRA contributions, and medical and dental insurance payments. The theft of these payments had negative collateral consequences for their employees.
By pleading guilty today, Langlais and Sturgis admitted they received income from Homeward Bound and Silver Linings, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes.
Langlais willfully failed to make an income tax return or pay personal income taxes from 2010 to 2012, for a total personal tax loss of $56,860. Sturgis was married and filed joint individual income tax returns from 2007 to 2012. Her unreported income from 2010 to 2012 was at least $150,193, resulting in a federal individual income tax loss of at least $26,523. Her unreported income from 2007 to 2009 was at least $420,418, resulting in a federal individual income tax loss of at least $102,437, and a state individual income tax loss of $19,387, for a total personal tax loss of $148,347, including relevant conduct.
Additionally, from 2009 to 2012, Sturgis claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
Springfield Man Sentenced to 20 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Danny Lee Dumas, 43, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Dumas to spend the rest of his life on supervised release following incarceration.
Dumas pleaded guilty on Nov. 9, 2016. Dumas admitted that he received and distributed child pornography between Jan. 1 and April 9, 2015.
An investigation began in Suffolk County, New York, when another person told law enforcement officers that he e-mailed images of child pornography to Dumas. Law enforcement officers also received two CyberTips from the National Center for Missing and Exploited Children involving online chats with another person, to whom Dumas sent images of child pornography.
Local law enforcement officers executed a search warrant at Dumas’s residence on April 9, 2015, and seized his computer and other digital storage devices.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Southwest Missouri Cybercrimes Task Force and the Suffolk County, N.Y., Police Department.
Project Safe Childhood
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."
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute large quantities of methamphetamine that was shipped from California to Springfield, Mo.
Michael E. Ford, 38, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years in federal prison without parole.
On Feb. 9, 2017, Ford pleaded guilty to participating in the drug-trafficking conspiracy from June 1 through Sept. 11, 2015, and to possessing a firearm in furtherance of a drug-trafficking crime.
Co-defendant Lisa Renae Thompson, 39, of Springfield, also pleaded guilty and has been sentenced to 11 years and three months in federal prison without parole. Co-defendants John R. Waits, 46, of Springfield, and Romulo Frank Delatorre, 36, of Downey, Calif., have also pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
Delatorre shipped methamphetamine from California to Springfield in two- to two-and-a-half-pound increments to Thompson. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to Delatorre.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others with the assistance of Waits. Waits sold methamphetamine to an undercover agent on several occasions in June and July 2015. He participated in the conspiracy for six weeks and is responsible for the distribution of 12 pounds of methamphetamine.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments from Delatorre. On Sept. 30, 2015, the Springfield Police Department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Runnels Man Sentenced to Life Imprisonment, Plus Ten Years, for Child Sex ChargesRead the Press Release
DES MOINES, IA - On July 7, 2017, Michael Lee Williamsheather Jean Reekr, age 51, of Runnels, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to life imprisonment for conspiring to transport a minor with intent to engage in criminal sexual activity, and a consecutive, ten-year term of imprisonment for commission of a felony offense involving a minor by a registered sex offender, announced United States Attorney Kevin E. VanderSchel.
On February 28, 2017, Williams pleaded guilty to the charges and admitted that, between April 2016 and July 8, 2016, he conspired to transport a minor from Minnesota to Polk County, Iowa, with the intent to engage in unlawful sexual activity, and that, at the time he committed the offense, he was a registered sex offender. The charges were the result of an investigation by law enforcement in Polk County, Iowa, and Carver County, Minnesota.
The Polk County Sheriff’s Office, Carver County Sheriff’s Office, and the United States Marshals Service conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Registered Broker Sentenced to 18 Months in Prison for Securities Fraud in A $131 Million Market Manipulation SchemeRead the Press Release
BROOKLYN, NY – Gerald Cocuzzo, a registered broker, was sentenced earlier today to 18 months in prison after having pleaded guilty to securities fraud for his role in the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly traded company previously listed on the NASDAQ under the ticker symbol “FNRG.”
The sentencing was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the plea hearing, between 2009 and 2015, Cocuzzo and others engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock; and (3) concealing secret payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between January 2015 and April 2015, Cocuzzo received secret cash kickbacks from a ForceField executive in exchange for purchasing ForceField stock in his clients’ brokerage accounts. Cocuzzo did not disclose these payments to his clients. Cocuzzo and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash during in-person meetings.
Today’s proceeding, which took place before United States District Court Judge Brian M. Cogan, is the third sentencing to take place in connection with the fraud in ForceField securities. Five other defendants in this matter who pleaded guilty, and one defendant convicted after trial, are awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert are in charge of the prosecution.
The Defendant:
GERALD COCUZZO
Age: 39
Residence: Delray Beach, Florida
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Rapid City Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid CityRapid City, South Dakota, man convicted of Possession of Child Pornography was sentenced on July 5, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Michael Vinton, age 41, was sentenced to 135 months of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Vinton was charged on October 18, 2016, and pleaded guilty on March 17, 2017. The charge relates to Vinton receiving and possessing child pornography from July 21 to July 23, 2016.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Vinton was immediately turned over to the custody of the U.S. Marshals Service.