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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.
Rapid City Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid 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.
Eric Dill, age 42, was sentenced to 6½ years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dill was charged on November 3, 2015, and pleaded guilty on March 17, 2017. The conviction stems from Dill receiving and possessing child pornography from March 21 to April 8, 2015.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Dill was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Trevor Red Bird, age 28, was sentenced to 14 months in prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury on March 15, 2017. He pled guilty on April 17, 2017.
Red Bird was convicted of Abusive Sexual Contact With a Minor in U.S. District Court in May 2008. As a result of this conviction, Red Bird is required to register as a sex offender. Between September 15, 2016, and November 8, 2016, Red Bird failed to reside at his registered address and did not properly update his sex offender registration, as required by law.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
Pleasants County residents indicted on methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA - Three St. Marys, West Virginia men were indicted by a federal grand jury on June 28, 2017 on methamphetamine distribution charges, Acting United States Attorney Betsy Steinfeld Jividen announced.
Glenn Edgor Pryor, age 60, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and four counts of “Distribution of Methamphetamine.”
Dale Wesley Jenkins, Jr., also known as Buddy, age 56, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine,” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
Roger Dale Doehring, age 54, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and two counts of “Distribution of Methamphetamine - Aiding and Abetting.”
The crimes are alleged to have taken place from July 2016 to December 2016 in Pleasants County, West Virginia.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The West Virginia State Police and the Pleasants County Sheriff’s Office are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Paterson Man Charged with Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he recently robbed a TD Bank in Paterson, New Jersey, and an Investors Bank in Clifton, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, was arrested yesterday and charged by complaint with two counts of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to the complaint:
On June 30, 2017, Chestnut allegedly entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut allegedly entered an Investors Bank in Clifton and approached a teller, this time while brandishing a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
Chestnut has two prior federal bank robbery convictions from 1996 and 2004.
The armed bank robbery count carries a maximum potential penalty of 25 years in prison. The unarmed bank robbery count carries a maximum potential penalty of 20 years in prison. Both counts carry a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, New Jersey, with the investigation. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Owners of Bay Area Sushi Boat Restaurants Appear in Federal Court to Face Tax Fraud ChargesRead the Press Release
OAKLAND – Man Young Kim and Kyong Ja Kim, husband and wife, appeared in federal court today to face charges that they conspired to defraud the United States and committed related tax crimes, announced United States Attorney Brian J. Stretch and Michael T. Batdorf, Special Agent in Charge, Internal Revenue Service. The couple appeared before U.S. Magistrate Judge Kandis A. Westmore and were arraigned on charges related to three Bay Area sushi restaurants owned by the Kims, Sushi Boat Oakridge, Sushi Boat Valley Fair, and Sushi Boat Westgate.
A federal grand jury indicted the Kims on June 29, 2017. According to the indictment, Man Kim, 63, and Kyong Kim, 57, both of Dublin, Calif., each own 50 percent of the three sushi boat restaurants at issue and are alleged to have conspired to defraud the United States by failing to report income from the restaurants. The indictment describes an alleged scheme by which both defendants denied the existence of records related to daily income; then, after investigators sought computer records, Kyong Ja Kim allegedly hired a computer consultant to delete relevant data from the restaurants’ computer system. Both defendants are charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371. In addition, Kyong Ja Kim is charged with preparing and filing false employment tax returns, in violation of 26 U.S.C. § 7206(2), and preparing and filing a false federal income tax return, in violation of 26 U.S.C. § 7206(1). In addition to the conspiracy charge, Man Young Kim is charged with three counts of filing false tax returns, in violation of 26 U.S.C. § 7206(l), and nine counts of willfully failing to collect, account for, and pay over to the IRS the federal income taxes, in violation of 26 U.S.C. § 7202.
Following today’s appearance, the defendants were released on bond. Defendants’ next court appearance is scheduled for August 31, 2017, at 2:00 p.m., before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the conspiracy charge, the defendants face a maximum sentence of five years in prison, a fine of $250,000, and restitution, if appropriate. In addition, Man Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(1) (filing false returns) and a maximum of 5 years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (willful failure to collect and pay over taxes). Kyong Kim faces a maximum of three years of prison time, and a fine of $250,000, plus restitution for each violation of 26 U.S.C. § 7206(2) (aiding and assisting in preparing false returns). However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Owner and CFO of Debt Collection Company Sentenced to 7 ½ Years in Prison for Orchestrating $31 Million Debt Collection SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that MAURICE SESSUM, the co-owner and chief financial officer of Four Star Resolution (“Four Star”), a Buffalo, New York-based debt collection company, was sentenced in Manhattan federal court to 90 months in prison for orchestrating a scheme to coerce thousands of victims across the country, through misrepresentations and false threats, into paying a total of more than $31 million to Four Star to resolve debts these victims purportedly owed. All 14 individuals charged in connection with the Four Star scheme have been convicted. SESSUM pled guilty on November 18, 2016, to conspiracy to commit wire fraud and wire fraud before U.S. District Court Judge Katherine Polk Failla, who also imposed today’s sentence.
Acting U.S. Attorney Kim said: “Maurice Sessum was a driving force behind the largest criminal debt collection scheme ever prosecuted. Using outrageous threats and blatant lies to take advantage of vulnerable Americans, Sessum and his co-conspirators defrauded victims out of $31 million. For victimizing others to enrich himself, Sessum will now serve a significant term in federal prison.”
According to the Indictment and other filings in Manhattan federal court, and statements made in connection with SESSUM’s sentencing and other court proceedings:
Between 2010 and February 2015, SESSUM was the co-owner, chief financial officer, and chief operating officer of the Four Star. In that capacity, SESSUM, together with his co-defendant and co-owner, Travell Thomas, oversaw four debt collection offices operated by Four Star in Buffalo as well as a team of managers and debt collectors. As part of the scheme, SESSUM and Travell Thomas falsely inflated the balances of debts owed by consumers in Four Star’s debt collection software so that debt collectors could collect more money from the victims than the victims actually owed.
As co-owner of Four Star, SESSUM approved debt collection scripts that contained a variety of misrepresentations and instructed his collectors to make those misrepresentations to consumers over the telephone. At the direction of SESSUM and Thomas, Four Star’s debt collectors, using a variety of aliases, attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats, including that: (1) Four Star was affiliated with local government and law enforcement agencies, including the “county” and the district attorney’s office; (2) the consumers had committed criminal acts, such as “wire fraud” or “check fraud,” and if they did not pay the debt immediately, warrants or other process would be issued, at which point they would be arrested or hauled into court; (3) the victims would have their driver’s licenses suspended if they did not pay their debts immediately; (4) Four Star was a law firm or mediation firm and that Four Star’s employees were working with lawyers, a law firm, mediators, or arbitrators; and (5) a civil lawsuit would be filed, or was pending, against the victims for failing to pay their debts. SESSUM and Thomas also approved an abusive and coercive “mailing campaign,” in which Four Star sent mailers to victims across the country that purported to be from courts and government agencies.
In total, from about January 2010 through November 2014, Four Star collected more than $31 million from thousands of victims across the United States. Of the money that Four Star took in from victims, millions of dollars were paid in cash to SESSUM and Thomas, and hundreds of thousands of dollars were used to pay for SESSUM’s personal expenses, including for gambling and season tickets for professional sports games.
* * *
In addition to his prison term, SESSUM, 40, of Buffalo, New York, was sentenced to three years of supervised release, and ordered to forfeit $31 million.
In total, 14 individuals associated with Four Star have been charged and pled guilty to defrauding consumers as part of this debt collection scheme. In addition to SESSUM, co-owner and chief executive officer Travell Thomas, managers Jimmy Stokes, Tacoby Thomas, Heather Gasta, Mark Lavin, and John Salatino, and debt collectors Anthony Caba, Jessica Mann, Charles Starks, William Clark, Columbus Simmons, Michael Calandra, and Jennifer Sherk each pled guilty to conspiracy to commit wire fraud and wire fraud for their roles in the scheme.
Travell Thomas, Tacoby Thomas, Starks, Caba, Clark, Simmonds, Calandra, and Mann were sentenced by Judge Failla to prison terms of 100 months, 70 months, 37 months, 36 months, 30 months, 28 months, 15 months, and one year and one day, respectively. The sentencing of the other defendants who have pled guilty is pending.
Mr. Kim praised the efforts of the Office’s Criminal Investigators, who led the investigation of this matter. Mr. Kim also thanked the Federal Trade Commission for referring the case and for its assistance.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Edward A. Imperatore, Jennifer L. Beidel, and Jordan L. Estes are in charge of the prosecution.
Omaha, Nebraska Man Arrested for Threats to Public OfficialRead the Press Release
COUNCIL BLUFFS, IA - On July 7, 2017, Robert William Simet, 64, of Omaha, Nebraska, was arrested for making threats against United States Senator Joni Ernst. A charge is merely an accusation and Simet is presumed innocent unless and until proven guilty beyond a reasonable doubt. The Federal Bureau of Investigation is investigating this matter.
No other information or comments will be released until documents have been filed with the court as part of the public record.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Oklahoma City Mother and Son Sentenced to Prison for $770,000 Fraud Against MedicaidRead the Press Release
Oklahoma City, Oklahoma – DEBORAH A. GRAY, 51, and KEITH B. GRAY, II, 27, both of Oklahoma City, were sentenced to prison this week by United States District Judge David L. Russell for submitting false claims to Medicaid for behavioral health counseling, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Mike Hunter, Attorney General for the State of Oklahoma. Deborah Gray, who was sentenced on Thursday, will serve 37 months in federal prison. Keith Gray, who was sentenced today, will serve 12 months and one day in federal prison. Both will serve three years of supervised release after imprisonment. The Court also ordered the Grays to pay $769,578.38 in restitution to Medicaid.
On July 6, 2016, the Grays were indicted on 151 counts of health care fraud. The indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated DAG Counseling Services, PLLC, which held itself out as providing behavioral health counseling services to Medicaid-eligible children. Keith Gray was a DAG Counseling employee. According to the indictment, the Grays devised and executed three schemes to defraud Medicaid through DAG Counseling. First, they caused to be submitted to Medicaid claims for "targeted case management services" for periods when children were actually being transported between home or school and the DAG Counseling offices, in violation of Medicaid regulations. Second, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that exceeded the billing maximum of 90 minutes per child per day, also in violation of Medicaid regulations. Finally, they submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that (a) were not actually provided, (b) were actually provided in groups of two or more children, or (c) were provided for less time than was billed to Medicaid.
Both defendants pled guilty on January 4, 2017, to one count of executing each of the three schemes.
"I commend and appreciate the work of our Medicaid Fraud unit, the FBI, and the United States Attorney," stated Oklahoma Attorney General Mike Hunter. "The sentences in this case should send a message that fraud against our children and our taxpayers will not be tolerated."
Reference is made to the indictment and other public filings for further information.
Medicaid is funded jointly by the federal government and the State of Oklahoma and administered by the Oklahoma Health Care Authority. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation and the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Ocean Springs Man Sentenced for Producing, Transporting, Distributing and Possessing Child PornographyRead the Press Release
Gulfport, Miss. – Philip Joseph Spear, 60, of Ocean Springs, Mississippi, was sentenced on July 6, 2017, by Chief U.S. District Judge Louis Guirola, Jr., to 160 years (1920 months) in federal prison followed by a lifetime of supervised release for producing, transporting, distributing, and possessing child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood. Spear was also ordered to pay $47,500 in restitution to victims, and a special assessment of $30,000 for a related crime under the Justice for Victims of Trafficking Act.
In September, 2016, a federal search warrant was executed at Spear’s residence in Ocean Springs. Electronic devices including computers, hard drives, a digital camera, a media card and an iPad were seized. A forensic examination revealed illegal images and videos of minors engaging in sexually explicit conduct.
Spear pled guilty on March 9, 2017, to a six count Bill of Information charging him with producing, transporting into the United States, distributing and possessing child pornography. His victims ranged in age from infant to 16 years old.
"A principle part of the FBI’s mission is to protect the American people, and we are especially dedicated to the most vulnerable among us – children," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "Phillip Spear despicably violated the human rights of children and stole their innocence. We hope his sentencing of 1,920 months in federal prison sends a strong warning and clear message to others who take part in unspeakable crimes against children."
"This man is exactly where he deserves to be—behind bars for the rest of his life," said General Hood. "His disgusting actions have no place in Mississippi, or anywhere else, and our child exploitation task force and agency partners take their responsibility seriously to get sick predators far away from our innocent children. I am very pleased with the work of all those involved in this case."
The case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office, deputies from the Prentiss County Sheriff’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant United States Attorneys Andrea Jones and Glenda Haynes prosecuted the case for the government.
Northampton Man Sentenced to 48 Months’ Imprisonment for Theft at Delaware Water GapRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 6, 2017, United States District Judge Robert D. Mariani sentenced Lewis Davenport, age 40, to 48 months’ imprisonment and a two-year term of supervised release, for conspiring to commit theft on federal land, and for committing aggravated identity theft.
According to United States Attorney Bruce D. Brandler, Davenport and other individuals broke into unoccupied automobiles located in the Delaware Water Gap National Recreation Area. Davenport admitted that he and his conspirators stole electronics, cellular phones, credit cards and other items from the automobiles, and used the stolen credit cards at various retail businesses in Bartonsville and in Easton, Pennsylvania.
In pronouncing the sentence, Judge Mariani emphasized Davenport’s extensive criminal history, which included 19 convictions involving theft- and credit card fraud-related activities. Judge Mariani also imposed a $1,174.89 order of restitution as part of Davenport’s sentence.
The investigation was conducted by the National Park Service Rangers. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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New York Man Sentenced to 5 Years in Federal Prison for Role in Southeastern Connecticut Drug RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that QUADON CHAMBERS, also known as “DVD,” 30, of Queens N.Y., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
The investigation further revealed that John King, also known as “Soy,” of Queens, used an apartment on East Main Street in Norwich to store, process and package narcotics for street sale. CHAMBERS was arrested on April 28, 2015, after law enforcement officers made entry into the apartment and found him weighing and packaging narcotics for distribution. Officers seized approximately 150 grams of crack cocaine and approximately 80 grams of heroin from the apartment, and approximately $4,000 in cash from CHAMBERS’ person. Officers also searched a vehicle that was parked outside of the stash house and seized a kilogram of cocaine. The car was registered to John King.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging CHAMBERS, Jackson, King and 10 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
CHAMBERS has been detained since his arrest. On November 4, 2016, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
King has pleaded guilty and awaits sentencing.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on July 6, 2017, by U.S. District Judge Roberto A. Lange.
Tracy Peters, age 51, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Peters was indicted by a federal grand jury on November 9, 2016. He pled guilty on April 17, 2017.
The conviction stems from an incident on November 3, 2016. Tracy Peters went with his girlfriend to the Legion Club and the Golden Rule Bar in Eagle Butte to drink and socialize. Both of them became extremely intoxicated. After leaving the bar, they returned to the Cheyenne River Motel where Peters was living. The two of them began arguing before they got back to the motel. While she was still in the car, Peters struck the victim in the face. The victim sustained substantial cuts to her face that required stitches.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Peters was immediately turned over to the custody of the U.S. Marshals Service.
Mobridge Man Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mobridge, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 5, 2017, by U.S. District Judge Charles B. Kornmann.
Richard Cadotte, age 55, was sentenced to 34 months in custody, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution is being left open for 90 days.
Cadotte was indicted by a federal grand jury on October 14, 2015. He filed a Petition to Plead Guilty on October 26, 2016.
The conviction stems from an incident on September 19, 2015, when the victim was driving a tan vehicle down the water tower road near Wakpala, South Dakota, and struck a cow. As the victim was exiting his vehicle, Cadotte approached the scene, driving an older model blue car. The victim began to approach the vehicle and Cadotte stepped out, but then got right back into his vehicle. The victim then approached Cadotte’s car, jumped on the hood, and began to strike the windshield. Cadotte drove away, trying to shake the victim off the vehicle.
The victim fell from the vehicle, got back on his feet and began to return to his own vehicle. Cadotte turned around in his vehicle and accelerated towards the victim, striking him with the front of the vehicle. The victim flipped through the air, landing on the road way. Cadotte then proceeded to a near-by residence, dropped someone off, and left the area. A witness drug the victim off the road, fearing Cadotte intended to run him over again.
A sergeant and a patrol officer inspected the outside of the blue car, which had been stopped previously. A red substance was observed on the front grill, drivers head lights, windshield, and roof of the car.
As a result of this incident, the victim suffered two broken legs.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Cadotte has been allowed to self-report to the custody of the U.S. Marshals Service by July 25, 2017.
Mission Man Sentenced for Drug PossessionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession of a Controlled Substance was sentenced on June 27, 2017, by U.S. District Judge Roberto A. Lange.
Jeremy Joseph Douville, age 21, was sentenced to 6 months in custody with credit for time served, 1 year of supervised release, forfeiture of $2,281.91, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $25.
Douville was indicted by a federal grand jury on December 20, 2016. He pled guilty on May 3, 2017.
On December 6, 2016, Douville, knowingly and intentionally possessed marijuana, a Schedule I controlled Substance, in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Douville was released following sentencing.
Miami Resident Sentenced to 30 Years in Prison for Sex TraffickingRead the Press Release
A Miami resident was sentenced to thirty years in prison for sex trafficking six Cuban victims.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Rodolfo Llanes, Chief, City of Miami Police Department (MPD), and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
Silvio Clark Morales, 31, originally of Cuba, pleaded guilty before U.S. District Judge Jose E. Martinez, in April 2017, to six counts of sex trafficking by force, threats of force, fraud, and coercion, in violation of Title 18, United States Code, Section 1591(a)(1), and one count of conspiracy to encourage and induce illegal aliens to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I). Judge Martinez sentenced Morales today to three hundred and sixty months in prison. Morales has also been ordered to pay restitution to his sex trafficking victims.
According to court records, Morales tricked at least six victims to travel from Cuba to the United States, via Mexico, and work as “dancers.” According to the victims, there was never any indication that they would be dancing naked or performing any commercial sex acts until they arrived in Miami and Morales told them to work at various strip clubs throughout Miami and as prostitutes. When the victims protested, Morales threatened them, physically assaulted them, kept them in debt bondage, and threatened their families. He also routinely kept a close watch on the victims and constantly brandished a firearm to keep them in compliance with his wishes. On one occasion, Morales drove one of the victims to an isolated bridge near the Everglades, beat her, and told her that he was going to throw her into the swamp and let the alligators eat her, before throwing her in the trunk of his car.
Together with Homeland Security Investigations, the United States Attorney’s Office for the Southern District of Florida leads the South Florida Human Trafficking Task Force, which works to increase public awareness, rescue victims, and prosecute traffickers. The task force is composed of not only federal agencies but also state and local law enforcement entities, and partners with non-law enforcement entities, such as service providers, victim advocates, faith-based organizations, academic representatives, and community members.
Mr. Greenberg commended the investigative efforts of ICE-HSI, MPD and MDPD. The case was prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Heads to Federal Prison for Smuggling Meth and HeroinRead the Press Release
LAREDO, Texas – A 48-year-old man from Monterrey, Nuevo Leon, Mexico, has been sentenced for conspiracy to import crystal methamphetamine and brown heroin, announced Acting U.S. Attorney Abe Martinez. Genaro Garcia-Gutierrez pleaded guilty Nov. 1, 2016.
Today, U.S. District Judge George P. Kazen ordered him to prison for 150 months. Not a U.S. citizen, he is expected to face deportation proceedings following his release.
On July 20, 2016, Garcia-Gutierrez took part in a conspiracy to smuggle 5.22 kilograms of crystal methamphetamine and 1.7 kilograms of brown heroin through the Lincoln-Juarez International Bridge in Laredo. He was driving a 2008 Dodge Nitro with Mexican license plates. Authorities soon discovered 10 packages containing the crystal methamphetamine and four packages with the brown heroin in the rear passenger quarter panel of the vehicle.
Garcia-Gutierrez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Member of Trenton Drug Trafficking Organization Sentenced to Six Years in PrisonRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 72 months in prison for his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of his guilty plea, Hunter also admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic streets in Trenton. Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Hunter and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to the prison term, Judge Wolfson sentenced Hunter to four years of supervised release.
Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Lawrence J. Panetta; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; officers of the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Robert J. Haney Esq., Princeton, New Jersey
Lubbock Woman Sentenced for Her Role in Fentanyl Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Jessica Christine Holl, 29, of Lubbock, Texas, was sentenced this morning before Senior U.S. District Judge Sam R. Cummings to 210 months in federal prison for her role in a conspiracy to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Holl pleaded guilty in March 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl and furanyl fentanyl.
Co-defendants Sidney Caleb Lanier, 36, and Jamie Marie Robertson, 32, both of Lubbock, Texas, were both sentenced on June 9, 2017. Lanier was sentenced to 135 months in federal prison following his guilty plea in February 2017 to one count of conspiracy to distribute and possess with intent to distribute fentanyl. Robertson was sentenced to 48 months in federal prison following her guilty plea also in February 2017 to one count of unlawful use of a communications facility.
The defendants have been in custody since their arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl.
“Fentanyl is responsible for a sharp increase in overdoses and deaths across the country and poses a very high risk of death to not only users, but law enforcement and first responders as well,” said U.S. Attorney Parker. “Our local, state and federal partners will continue to push back hard on those who peddle this poison in our communities.”
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
According to documents filed in this case, from approximately January 2013 to October 27, 2016, Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other to intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier supplied Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case was investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
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Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on July 7, 2017, Nicole Lynn Mount, 34, of Lincoln, was sentenced to 10 years (120 months) in prison for conspiracy to distribute and possess with the intent to distribute a mixture or substance containing methamphetamine. Following the prison term, Mount will serve five years on supervised release.
Information provided to law enforcement indicated that between June of 2014 and July of 2016, Mount was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine in the Lincoln area. In March of 2016, Mount and an associate were contacted by the Lincoln Police Department, and they were found in possession of a total of approximately 3 ⅔ ounces of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Brooklyn Sex Trafficking Ring Sentenced to 15 Years in PrisonRead the Press Release
Earlier today in federal court in Brooklyn, Brian Adams, leader of a Brooklyn-based sex trafficking ring, was sentenced to 15 years’ imprisonment and 10 years’ supervised release by United States District Judge Jack B. Weinstein, based on his guilty plea last February to sex trafficking young women in Brooklyn. He was also ordered to pay restitution in the amount of $10,500 to the victim identified in the indictment as Jane Doe #4.
The sentence 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 (FBI).
Beginning in 2004, the defendant trafficked and attempted to traffic numerous young women and girls, some as young as 12-years-old, for sex with adult men in Brooklyn. The defendant arranged sex dates for these young women and girls, and had them attend sex parties. The defendant ran the prostitution business from his home in the Brooklyn neighborhood of Bedford-Stuyvesant, where many of these young women lived while they worked for him. He also subjected one of the young women, Jane Doe #1, to violence, forcing her to prostitute herself, and directed one of his workers to use Facebook to solicit underage women for the defendant’s sex parties, where adult men would pay the underage women for sex.
"The defendant’s conduct severely harmed numerous young women and girls, some of whom were still in middle school when preyed upon by the defendant and his co-conspirators. “This prosecution and sentence demonstrate that those who seek to profit from the sexual exploitation of others will be held accountable,” stated Acting United States Attorney Rohde.
“It defies explanation why men knowingly seek out girls as young as 12-years-old for sex, but the subject in this case knew he could make money offering up a service that attracts a vile clientele,” Assistant Director-in-Charge Sweeney stated. “He forced his young victims into a world most adults wouldn’t be able to cope with physically, or mentally. We won’t stop going after each and every criminal who exploits children and uses them for their own selfish profits.”
At sentencing, Jane Doe #1 recounted in a written statement that the defendant forced her to have sex beginning when she was 14-years-old, physically abused her, and threatened to have her and her family deported. Because of this abuse, Jane Doe # 1 stated, “I have tried to kill myself, and if it were not for my children I would continue to try. I am in therapy and can’t foresee the day I will be able to do without therapy.” She concluded, “Yet, I don’t want Mr. Adams to think he broke me. I try every day to become stronger. He will not win by having me destroyed for my entire life. I try each day to be stronger and to become the great mother that I know I can be. He tried to kill me in so many ways every day but I refuse to let that happen to me.”
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Michael P. Robotti and Hiral D. Mehta are in charge of the prosecution.
The Defendant:
BRIAN ADAMS
Age: 35
Brooklyn, New York
E.D.N.Y. Docket No. 14-CR-650
Lake Andes Man Charged in Two Indictments with Sexual Abuse of Two Children Appears in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lake Andes, South Dakota, man has been charged in two separate indictments by a federal grand jury for Aggravated Sexual Abuse of a Child, Abusive Sexual Contact of a Child, and Felony Child Abuse and Neglect.
Wendell Clark Archambeau, Jr., age 36, was indicted on July 6, 2017. He appeared before U.S. Magistrate Judge Veronica L. Duffy and pled not guilty to the Indictments.
For each of the sexual abuse charges, the maximum penalty upon conviction is up to life imprisonment, and/or a $250,000 fine, 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. Because the felony child abuse and neglect charges involve victims who were different ages, the maximum penalty is 10 years in one case and 15 years in the other.
According to the first Indictment, between the winter and spring months of 2016, Archambeau engaged in a sexual act with a child under twelve years old. He also engaged in abusing the same child.
According to the second indictment, Archambeau engaged in two instances of sexual contact with a child under twelve years old. This conduct took place in 2013. He also engaged in abusing the same child.
The charges are merely accusations and Archambeau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Yankton Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Archambeau was ordered detained pending trial. A trial date relating to the first indictment has been set for August 1, 2017. A trial date regarding the second indictment has been set for September 12, 2017.
Hyattsville Man Pleads Guilty to Federal Charges Related to A FirebombingRead the Press Release
July 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On July 6, 2017, Richard Butler III, age 35, of Hyattsville, Maryland, pled guilty in federal court to being a felon in possession of explosives and malicious use of explosive materials.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to the plea agreement, on or about March 4, 2016, at approximately 3:25 a.m., the Prince George’s County Fire Department (PGFD) responded to the Overland Garden Apartments in Landover, Maryland for an automated general fire alarm. PGFD personnel arrived on scene and subsequently located the remnants of a fire in the master bedroom.
Fire investigators arrived on scene and conducted an investigation inside and around the apartment. Investigators located a concrete brick inside the master bedroom on the floor between the bed and window. Investigators located, in close proximity to the brick, an improvised incendiary device,—specifically, a clear plastic water bottle, which contained an unknown liquid, and a brown paper towel material protruding from the mouth of the bottle. Investigators also located a similar plastic bottle melted to the top of the burned bed. On the exterior of the apartment, in close proximity to the broken master bedroom window, investigators located a blue plastic one-quart motor oil container. The three bottles were submitted to the ATF Forensic Science Laboratory for examination and were found to contain the presence of gasoline.
At the time of the incident, two adults and three minors were inside the apartment.
Surveillance video recordings revealed that at approximately 2:27 a.m. on March 4, 2016, an individual matching the description of Butler walking into a local gas station where he purchased the gasoline and filled three plastic containers.
According to his plea agreement, Butler had previously sustained a conviction for an offense punishable by more than one year of imprisonment, which made him ineligible to possess destructive devices.
Acting United States Attorney Stephen M. Schenning commended the ATF and Prince George’s County Fire/EMS Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas Sullivan who prosecuted the case.
Hutchins Man Sentenced to 80 Years in Federal Prison for Production of Child PornographyRead the Press Release
FORT WORTH, Texas — Robert Dion Ables, 40, of Hutchins, Texas, was sentenced this morning by U.S. District Judge John McBryde to 960 months in federal prison, following his guilty plea in March 2017 to one count of receipt of child pornography and two counts of production of child pornography. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Ables has been in custody since his arrest in December 2016 on a related federal criminal complaint.
“The sexual victimization and exploitation of these young girls is profoundly sad,” said U.S. Attorney Parker. “It is also, obviously, a serious crime for which the penalties are justifiably significant.”
According to documents filed in the case, in December 2016, U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents conducting a child pornography investigation served a search warrant at Ables’ residence in Hutchins, Texas. Ables acknowledged that, beginning in 2014, while he was living in the Fort Worth and Arlington area, he used social media applications such as Kik messenger on his phone to initiate contact with minor females. During his conversations, Ables convinced these females to send nude photographs of themselves.
At times Ables would coerce these females to send additional sexually explicit images by threatening to expose the female’s pictures on social media such as Facebook.
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 U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and The Royal Canadian Mounted Police, Saskatchewan Internet Child Exploitation Unit (ICE) were in charge of the international investigation. Assistant U.S. Attorney A. Saleem prosecuted.
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Houston Woman Charged with Defrauding Sugar Land MissionRead the Press Release
HOUSTON – A 38-year-old resident of Houston has been arrested in connection with the submission of falsified funds requests to an investment adviser for the Basilian Father’s Missions of the Catholic Church (BFM), announced Acting United States Attorney Abe Martinez.
A grand jury returned a sealed indictment against Rosina K. Blanco aka Rosina Aviles on June 29, 2017, charging her with eight counts of wire fraud. The indictment was unsealed upon her arrest by federal authorities today. She is expected to make her initial appearance before U.S. Magistrate Frances Stacy at 2:00 p.m.
The BFM is headquartered in Sugar Land and raises money in North America to support schools in Mexico and Colombia. It reports to the Congregation of St. Basil, an order of Catholic priests headquartered in Toronto, Canada. The BFM receives funding from several sources to include the Congregation of St. Basil in Canada, individual mail solicitations and mission offerings.
The indictment alleges that on Aug. 31, 2015, Blanco was hired to be the bookkeeper for the BFM. She allegedly then caused more than $1 million in unauthorized transfers from BFM accounts to accounts in her name. Blanco accomplished the theft by using a computer to transmit fraudulent and falsified funds transfer requests from the Southern District of Texas to the BFM investment manager in St. Louis who then unwittingly transferred more than $1 million in BFM funds, according to the charges.
From September 2015 to October 2016, Blanco facilitated the transfer of approximately $1,107,425 from BFM accounts to her personal accounts without authorization, according to the indictment. Blanco allegedly used the majority of these funds for personal expenses such as jewelry, furniture, luxury cars, real estate, Louis Vuitton handbags, goods and services for her dog and other luxury items.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Harrison Pleads Guilty to Carjacking, Kidnapping; Crimes Resulted in the Death of another PersonRead the Press Release
SALT LAKE CITY – Dereck James Harrison, age 23, currently incarcerated at the Utah State Prison, pleaded guilty to one count of carjacking and one count of kidnapping in U.S. District Court in Salt Lake City Thursday afternoon. The two crimes resulted in the March 12, 2016, death of an individual identified in charging documents as K.P.R. U.S. District Judge Robert J. Shelby sentenced Harrison to life in federal prison following the convictions.
Harrison, who was charged by Felony Information in June, was arraigned on the charges contained in the Information earlier Thursday afternoon by U.S. Magistrate Judge Brooke C. Wells.
As a part of the plea hearing, Harrison stipulated to facts describing his conduct during the carjacking and kidnapping. He admitted that on May 12, 2016, he and his father, Flint Harrison, took a truck from K.R.R., an employee of the Utah Transit Authority, after violently assaulting the victim. He further admitted that when he and his father took the truck, his father intended to cause serious bodily harm or death to K.P.R. Harrison admitted he aided and abetted his father in the assault.
Harrison admitted that after carjacking the truck, he and his father abducted K.P.R. and transported him across state lines from Salt Lake City to Wyoming, where Harrison admitted that K.P.R. was killed by his father. Harrison again admitted that he aided and abetted his father in killing K.P.R.
Federal prosecutors had concurrent jurisdiction in the case with Salt Lake County, Utah, and Lincoln County, Wyoming. As a part of the plea agreement federal prosecutors reached with Harrison, they agreed to recommend Harrison’s federal sentence run concurrently with the sentence he received in Wyoming and one he is currently serving as a result of a conviction in Utah’s Second Judicial Court in Farmington. Harrison will finish the sentence he is currently serving at the Utah State Prison before being transferred to Wyoming or federal prison.
“The crimes of carjacking and kidnapping committed in this case are very serious federal crimes. The victim, killed during the commission of these crimes, was a resident of Utah. The crimes occurred in Salt Lake County. Although Harrison was prosecuted in Wyoming, it was important to my office and the Salt Lake District Attorney’s Office that Utah’s interests in this case be vindicated. This guilty plea and the mandatory life sentence imposed resolve Utah’s interest. We have done our part to hold Mr. Harrison accountable for his actions in Utah,” U.S. Attorney John W. Huber said today.
“We also had a strong federal interest in the case because it involved the extensive use of federal investigative resources, including resources of the FBI and the U.S. Marshals Service,” Huber said.
Harrison County man sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ruben L. Aguilar, 29, of Clarksburg, West Virginia, was sentenced today to 30 months incarceration for cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Aguilar pled guilty to one count of “Conspiracy to Distribute Cocaine Base” in February 2017. Aguilar distributed cocaine in Harrison County in March 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Harker Heights Man Sent to Prison for Attempting to Entice a Minor via CraigslistRead the Press Release
LAREDO, Texas – A 49-year-old resident of Harker Heights has been ordered to federal prison for attempting to entice a minor to engage in unlawful sexual activity, announced Acting U.S. Attorney Abe Martinez. Alton Zerie Brister pleaded guilty March 31, 2017.
Today, U.S. District Judge George P. Kazen handed Brister a 120-month sentence. Brister will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and must pay a $5,000 special assessment.
Brister had placed a Craigslist ad that sought “school time fun.” He soon began engaging in sexually-explicit conversations with someone be believed to be a 14-year-old girl. He also sent sexually-explicit photos to that individual, who was actually a member of law enforcement. Eventually, Brister agreed to meet the individual in Laredo for the purpose of engaging in sex with the girl and her mother. He was arrested upon his arrival.
Following his arrest, Brister admitted posting the Craigslist advertisement and engaging in sexually explicit communications with someone whom he believed to be a minor.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
HCC Trustee Convicted of BriberyRead the Press Release
HOUSTON – A trustee with Houston Community College (HCC) was recently convicted of bribery of a public official concerning programs receiving federal funds, announced U.S. Attorney Abe Martinez.
U.S. District Judge Vanessa Gilmore unsealed the case against Chris Oliver, 53, of Houston, today. He was originally charged March 9, 2017, and pleaded guilty May 15, 2017.
At the time of his guilty plea, Oliver admitted he accepted bribes in exchange for the promise of official actions related to his duties as a member of the HCC board of trustees. It was revealed in open court at the plea hearing that Oliver met with another individual on several occasions at various restaurants and coffee shops in Houston where he accepted cash payments in exchange for promising to use his position to help that person secure contracts with HCC.
He was permitted to remain on bond pending sentencing, which has been set for Aug. 28, 2017. At that time, Oliver faces up to 10 years in federal prison and a possible $250,000 fine.
The FBI conducted the investigation with assistance from the Department of Education - Office of Inspector General. Assistant U.S. Attorneys Andrew Leuchtmann and Julie Searle are prosecuting the case.
If you have information regarding public corruption in the Houston area, please contact the FBI helpline at 713-693-5000.
Grand Jury Indicts Washington County Man for Distributing Heroin and FentanylRead the Press Release
PITTSBURGH - A resident of the City of Washington, Washington County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distributing and possessing with intent to distribute quantities of heroin and fentanyl, Acting United States Attorney Soo C. Song announced today.
The six-count indictment, returned on June 28 and unsealed today, named Jerome “Bubba” Barnes, 32, of Washington, Pennsylvania, as the sole defendant.
“The U.S. Attorney’s Office and the Washington County District Attorney’s Office have worked intensively to disrupt large-scale fentanyl and heroin traffickers, like Bubba Barnes,” stated U.S. Attorney Song. “By deputizing a Washington County prosecutor to bring federal charges, we have added another dimension to our cooperative efforts to reduce overdose deaths.”
“This indictment and arrest demonstrates what law enforcement can do to eliminate the deadly poisons being sold in our communities,” said Washington County District Attorney Gene Vittone. “Law enforcement at all levels – municipal, county, state and federal - were involved in the investigation and apprehension of this defendant. Working together, we are better able to eliminate this deadly threat to families and neighbors.”
According to the indictment presented to the court, Barnes distributed and possessed with intent to distribute quantities of heroin and fentanyl between April and June of 2017.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Yesterday, United States Magistrate Judge Robert C. Mitchell ordered the defendant to remain in federal custody, upon consideration, in part, of the June 6, 2017 Order of District Judge Nora B. Fischer detaining Barnes for allegedly violating his federal supervised release on his prior federal drug convictions.
Special Assistant United States Attorney Jerome A. Moschetta of the Washington County District Attorney’s Office is prosecuting this case on behalf of the government.
Task Force Officers with the Federal Bureau of Investigation, Pennsylvania State Police and Washington County District Attorney’s Office Drug Task Force conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fresno County Man Arrested for Running $20 Million Ponzi SchemeRead the Press Release
FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, was arrested yesterday in Las Vegas and is charged in a criminal complaint with mail fraud, wire fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Depiano operated a Ponzi scheme that lured real estate investors into giving to him and the businesses he controlled — including The Rental Group, U.S. Funding and Home Services LLC, and Draymond Homes — more than $20 million. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold.
According to court documents, in many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. He oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist. Depiano paid investors purported rental income that, in fact, was money other investors had given him for investment purposes.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Attorney’s Office for the District of Nevada. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
If convicted, Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, 10 years in prison for money laundering, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Tucson Police Officer Sentenced to 78 Months for the Illegal Sales of FirearmsRead the Press Release
TUCSON, Ariz. – Yesterday, Joe Santiago Valles, 34, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 78 months in prison. Valles had previously pleaded guilty to conspiracy to defraud the United States, aiding and abetting false statements in firearms transactions, tampering, tampering with a witness, and identity theft.
Beginning in October 2015 through April 20, 2016, Joe Valles was a business partner with a Federal Firearms Licensee (FFL) in Tucson, Ariz. The FFL and Valles used the identities of individuals, who were not purchasing firearms, to submit ATF Forms 4473 claiming they were the purchasers. ATF Form 4473 is required to legally purchase or acquire firearms from FFLs. The FFL and Valles used the fraudulent forms to conceal the identities of the true buyers. The conspiracy involved a total of 35 firearm transactions, including 24 semi-automatic pistols and rifles. Valles was working as a Tucson Police officer when he stole the identities of two individuals he had contact with through his official duties. Twenty-nine firearm transactions listed these two individuals as buyers when, in fact, they were not the purchasers. To date, one of the firearms was intercepted at the Nogales Port of Entry and a second firearm, a .50 caliber semi-automatic rifle, was seized by Mexican authorities.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance by Customs and Border Protection. The prosecution was handled by Serra M. Tsethlikai and Karen E. Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-16-01059-TUC-JAS
RELEASE NUMBER: 2017-058_Valles
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Mount Airy Casino Resort Employee Charged with Money Laundering ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ashley Brosius, age 30, of Stroudsburg, Pennsylvania, a former player coordinator for the Mount Airy Casino Resort, was charged on July 5, 2017, in a criminal information with conspiracy to commit money laundering.
According to United States Attorney Bruce D. Brandler, the information alleges that Brosius and an unindicted co-conspirator defrauded the Mount Airy Casino Resort by engaging in a money laundering scheme involving the use of stolen names and PINs (personal identification numbers) that were tied to players’ club cards. It is alleged that with the assistance of an unindicted co-conspirator, Brosius used the stolen information to create duplicate player club cards, which she then loaded with “free slot play” credits. The fraudulently created cards were then given to the unindicted co-conspirator to gamble with, primarily at slot machines. The criminal information also alleges that the scheme began in November 2014 and continued to November 2015, and that the fraudulent free play amounted to approximately $140,000.
The case was investigated by the Internal Revenue Service, Criminal Investigations and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the federal law for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $500,000 fine. The crime also carries a term of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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