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7 July 2017
Former Johns Hopkins Physician Pleads Guilty to Fraud Scheme Involving Travel Expense ReimbursementsRead the Press Release
July 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – On July 7, 2017, Dr. Jean-Francois Geschwind, age 53, of Westport, Connecticut, pled guilty to four counts of mail fraud arising from a multi-year scheme to unlawfully obtain travel expense reimbursements from his former employer, the Johns Hopkins University School of Medicine. Geschwind was employed as a physician in the Division of Vascular and Interventional Radiology between 1998 and 2015.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation - Baltimore Field Office; and Marilyn J. Mosby, the State’s Attorney for Baltimore City.
According to his plea agreement, between 2007 and July 2015, Geschwind made material misrepresentations and omissions in travel expense statements that he submitted or caused to be submitted to the JHU-SOM, for the purpose of obtaining travel expense reimbursements to which he was not entitled. During this time period, Geschwind submitted multiple travel expense statements for purported business expenses, when he knew that the claimed expenses were personal, such as family vacations and meals. For example, during the summer of 2013, Geschwind obtained reimbursement from the JHU-SOM for a 13-day vacation to the United Kingdom and France by falsely representing that the he traveled to those locations to give lectures in connection with his work for the JHU-SOM. As a result of Geschwind’s material misrepresentations, the JHU-SOM issued three separate checks that included reimbursements for his family vacation.
Geschwind also obtained reimbursement from the JHU-SOM for expenses that he knew had already been paid, or would later be paid, by a second (and in some cases a third) entity. In seeking reimbursement for such expenses, Geschwind did not disclose to the JHU-SOM that he was seeking two (and in some cases three) reimbursements for the same expense.
For example, between July 1 and July 5, 2015, Geschwind traveled to Japan to attend the Asia Pacific Primary Liver Cancer Expert (APPLE) meeting. By the time he attended the APPLE meeting, Geschwind had joined the Yale School of Medicine faculty as Chair of the Department of Diagnostic Radiology. Prior to his departure for the APPLE meeting, Geschwind arranged for reimbursement of his round-trip airfare to Japan by Company No. 1, a life-sciences company based in France. Notwithstanding this arrangement, on May 8, 2015, Geschwind sought reimbursement for the same expense from the JHU-SOM but did not disclose that he had already sought reimbursement for his round-trip airfare from Company No. 1. As a result of this material omission, the JHU-SOM issued a check to Geschwind that included reimbursement for his round-trip airfare to and from Japan.
On or about June 22, 2015, Geschwind sought reimbursement from the Yale School of Medicine for the above-referenced round-trip airfare to Japan. Geschwind did not disclose to Yale that he had already arranged for payment of the same expense by Company No. 1, or that he had in fact been reimbursed for that expense by the JHU-SOM. On or about July 21, 2015, as a result of Geschwind’s material omissions, Yale University issued a check to Geschwind for the cost of the round-trip airline ticket.
In July of 2015, Company No. 1 initiated a wire transfer to Geschwind’s Bank of America checking account that included reimbursement for his round-trip airline ticket to Japan. Accordingly, as a result of the material omissions, Geschwind obtained three separate payments, from three separate entities, for the round-trip airfare to Japan in July of 2015.
Through the various methods identified above, Geschwind obtained money with an aggregate value of hundreds of thousands of dollars, in the form of travel expense reimbursements by the JHU-SOM.
Johns Hopkins investigators in the Office of Hopkins Internal Audit (OHIA) conducted an extensive audit of Geschwind’s reimbursement requests and upon discovering he had requested and received significant sums of inappropriate payments, they referred the case to law enforcement. Hopkins investigators worked closely with authorities to assist with their investigation.
Geschwind faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 7, 2017 at 12:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Peter J. Martinez and Special Assistant United States Attorney Alexander Huggins, who are prosecuting the case.
Former Comptroller of Poughkeepsie Companies Charged in White Plains Federal Court with Multimillion-Dollar FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and George P. Beach II, the Superintendent of the New York State Police (“NYSP”), announced today the unsealing of a Complaint charging MARK CINA with mail fraud. The charge arises from an alleged fraudulent scheme whereby CINA embezzled millions of dollars from two companies where he was comptroller, over the course of at least approximately seven years. Cina was presented this morning before Honorable Lisa Margaret Smith, United States Magistrate Judge.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Mark Cina, who was entrusted with the finances of two local manufacturers in Poughkeepsie, abused that trust to spend the companies’ money on himself. For years, Cina allegedly used company money to gamble, pay his rent, dine out, and fund a host of other personal expenses. I want to thank our partners at the State Police and the Postal Inspection Service for their work to uncover and stop this fraud.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “As a Comptroller, Mr. Cina was placed in a position of trust. As alleged, he violated his employer’s trust when he decided to use company money to fund his lifestyle. He was promptly arrested by Postal Inspectors and will be brought to justice for his alleged thievery.”
NYSP Superintendent George P. Beach II said: “This arrest should serve as a reminder that those who choose to abuse their positions will be brought to justice. For years this suspect allegedly stole funds from a legitimate business, using the money for his own enjoyment and personal gain. I thank the U.S. Attorney’s Office for the Southern District of New York and the New York Office of the U.S. Postal Inspection Service for their continued partnerships. The State Police will continue to work with our law enforcement partners to end these types of crimes and hold accountable those who mistakenly think they can get away with these schemes.”
As alleged in the Complaint unsealed today in White Plains federal court[1]:
During all times relevant to the Complaint, two manufacturing companies were in operation, with plants located in the Town of Poughkeepsie (“Company-1” and “Company-2,” collectively the “Companies”). Company-1 designed and manufactured solar energy products such as solar-powered roof shingles. Company-1’s work included, for example, a solar-powered ring of lights encircling the top of MetLife Stadium, in New Jersey. Company-2 fabricated molded plastic.
The Companies were founded by an entrepreneur (“Victim-1”). During all times relevant to the Complaint, Victim-1 was the primary investor in and owner of the Companies.
In or about 2008, Victim-1 hired MARK CINA, the defendant, as a part-time bookkeeper for Company-1. In or about 2010, CINA became employed full-time for the Companies as comptroller. As comptroller, CINA was responsible for the day-to-day financial operations of the Companies. During some of the time period relevant to this Complaint, CINA had authority to sign checks for the Companies and to carry and use the Companies’ credit cards and ATM cards. CINA remained so employed until in or about August 2015, when he was terminated.
In or about September 2015, Victim-1 appeared at a New York State Police barracks in Dutchess County. Victim-1 reported, in part and substance, that a former employee of the Companies had stolen company funds. Thereafter, the New York State Police commenced an investigation, which federal law enforcement officers later joined. As summarized in the Complaint, the investigation yielded myriad evidence showing that CINA had defrauded Victim-1, via the Companies, of millions of dollars over the course of at least approximately seven years. CINA did so by, among other things, using the Companies’ funds for himself to gamble, pay his rent, drive rental cars, dine out, get his car washed, bail out an arrestee, and, in one instance, pay a phone charge for an inmate’s call.
According to, among other things, business and financial records obtained during the criminal investigation, and a forensic report prepared by an accounting firm, CINA made the following disbursements of the Companies’ funds, from in or about 2009 through in or about 2015, which were not authorized, and which had no apparent or recorded business purpose:
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Payments to a mini-mart (approximately $457,000)
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Payments to a gas station (approximately $180,000)
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Payment of CINA’s rent (approximately $25,000)
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Payment of CINA’s personal credit card bills (approximately $125,000)
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Checks payable to CINA (non-payroll) (approximately $599,000)
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Checks payable to cash (approximately $282,000)
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Cash withdrawals (approximately $825,000)
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Additional unauthorized charges (including charges to pharmacies, medical and dental facilities, a rental car company, a car wash facility, an inmate phone service, and for purported loans from family members of CINA)
* * *
CINA, 56, of Pleasant Valley, New York, is charged with one count of mail fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative efforts of the United States Postal Inspection Service, the New York State Police, the Internal Revenue Service, Criminal Investigation, and the Office’s criminal investigators. He also thanked the Dutchess County District Attorney’s Office for their assistance.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Martin and Benjamin Allee are in charge of the prosecution.
[1]As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
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Florida Man Sentenced to Prison Term for His Role in Inauguration Day RiotRead the Press Release
WASHINGTON - Dane Powell, 31, of Tampa, Fla., was sentenced today to four months of incarceration for his role in the violence and destruction that took place in downtown Washington on Inauguration Day, announced U.S. Attorney Channing D. Phillips.
Powell pled guilty on April 28, 2017, in the Superior Court of the District of Columbia, to charges of felony rioting and felony assault on a police officer. Powell was among 234 people arrested in the aftermath of various incidents on January 20, 2017. He was arrested the following day. Powell was the first defendant to plead guilty to felony charges; 15 others have pled guilty to misdemeanor rioting offenses, and charges against 20 other defendants have been dismissed.
The Honorable Lynn Leibovitz sentenced Powell to a total of 36 months in prison, but suspended all but four months of that time on the condition that he successfully complete two years of supervised probation. In sentencing the defendant, Judge Leibovitz said that she credited his early acceptance of responsibility, but at the same time was compelled to take into account the seriousness of his individual acts and choices during the disturbances. Powell was taken into custody immediately after the hearing today to begin serving his prison sentence.
According to a factual proffer signed by the defendant, on January 20, 2017, Powell joined together with more than 200 other people in and around Logan Circle in Washington, D.C. The group formed a “black bloc” in which individual defendants wore black or dark colored clothing, gloves, scarves, sunglasses, ski masks, gas masks, goggles, helmets, hoodies, and other face-concealing and face-protecting items to conceal their identities in an effort to prevent law enforcement from being able to identify the individual perpetrators of violence or property damage. Some of the members of the black bloc were armed with hammers, crowbars, wooden sticks, and other weapons. Powell was among those dressed in black, and had in his possession a gas mask. Powell also attempted to conceal his face with a mask. In addition, Powell was in possession of a hammer, and a heavy wooden stick with a flag attached to it. As part of the proffer, he admitted being part of a group of rioters who moved approximately 16 blocks over a period of more than 30 minutes. He also admitted that he participated in breaking windows at two businesses and throwing a brick, large rock, or piece of concrete at uniformed law enforcement officers during the riot.
The rioting cases are being investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. They are being prosecuted by Assistant U.S. Attorneys Jennifer A. Kerkhoff and John W. Borchert.
Florida Man Sentenced to Six Years for Receiving Child PornographyRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew has sentenced Zachary Hunter (41, St. Petersburg) to six years in federal prison for receiving and possessing child pornography. The Court also ordered him to forfeit three computers, an external hard drive, and a thumb drive.
Hunter pleaded guilty on April 4, 2017.
According to court documents and testimony at the sentencing hearing, Hunter was responsible for possessing 1,366 images and 503 videos depicting child pornography, including some that involved prepubescent children and sadistic conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Five Members of Methamphetamine Conspiracy Plead Guilty in Federal CourtRead the Press Release
Roanoke, VIRGINIA –Five members of a Roanoke-based drug conspiracy that distributed methamphetamine in the city and to places as far west as Lynchburg and Amherst, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Yesterday in District Court, Lewis Cheresnowsky Jr., 35, of Roanoke, Brian Edward Roden, 37, of Roanoke, Joy Lynne Mason, 35, of Evington, Va., and Adam Royal McElvy, 34, of Roanoke, each pled guilty to one count of conspiring to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Brandi Ann Doss, 35, of Roanoke, pled guilty yesterday to one count of conspiring to possess with the intent to distribute and to distribute a detectable amount of methamphetamine and one count of distributing methamphetamine.
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Ashley B. Neese, the conspiracy operated in and around the City of Roanoke from spring 2015 until late 2016. While a majority of the activity involved in the conspiracy was focused in the Roanoke-area, members of the conspiracy did distribute methamphetamine within the Lynchburg and Amherst regions of Virginia during part of the conspiracy.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police, the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke HIDTA. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Falls Church Man Sentenced to 5 1/2-Year Prison Term for Sexually Assaulting College Student Who Was Walking on Northwest Washington StreetRead the Press Release
WASHINGTON – Sergio Velasquez Cardozo, 35, formerly of Falls Church, Va., was sentenced today to a 5 ½ year-prison term on charges stemming from an incident in which he snuck up on a college student and grabbed and groped her, announced U.S. Attorney Channing D. Phillips.
A jury found Velasquez Cardozo guilty in April 2017 of kidnapping, third-degree sexual abuse, fourth-degree sexual abuse and misdemeanor sexual abuse. The verdict followed a trial in the Superior Court of the District of Columbia. Velasquez Cardozo was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, he will be placed on three years of supervised release. He also will be required to register as a sex offender for a 10-year period following his release from prison.
According to the government’s evidence, at approximately 1 a.m. on Sept. 17, 2016, the victim was walking home to her apartment on the Georgetown University campus. While walking in the 3400 block of Prospect Street NW, Velasquez Cardozo snuck up behind her, grabbed her in a bear hug, and fondled her breast and buttocks.
Officers with the Metropolitan Police Department (MPD) happened to be driving slowly right behind, and next to, Velasquez Cardozo when he attacked the woman. They immediately stopped and arrested him. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips praised the work of officers from MPD’s Second District and from MPD’s Sexual Assault Unit. He also expressed appreciation for the work of the Georgetown University Police Department, which arrived on the scene shortly after Velasquez Cardozo was apprehended, and assisted both the victim and the MPD officers. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Brenda C. Williams, former Paralegal Specialist Joyce Arthur, Victim/Witness Advocate Veronica Vaughan, and Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia. Finally, he commended the work of Assistant U.S. Attorneys Kathleen “Katie” Kern and Peter V. Taylor, who investigated and prosecuted this case.
Evansville woman sentenced in federal court for bankruptcy and wire fraud schemeRead the Press Release
Wife filed forged documents in Bankruptcy Court and stole from husband’s retirement account
PRESS RELEASE
Evansville – United States Attorney Josh Minkler announced today the sentencing of an Evansville woman for her role in an elaborate bankruptcy fraud scheme in which she stole thousands of dollars from her husband’s retirement account. Patricia Bippus-Allen, 58, was sentenced to 60 months (five years) imprisonment by U.S. District Judge Richard L. Young after pleading guilty to conspiracy to commit bankruptcy fraud, subornation of perjury, wire fraud, and aggravated identity theft.
“Using the bankruptcy system and government resources to further one’s own selfish and fraudulent scheme will not be tolerated,” said Minkler. “If you intentionally waste the government’s limited judicial resources, you can expect to spend time in federal prison.”
In September 2010, Bippus-Allen filed a joint Chapter 13 bankruptcy petition in both her and her husband’s name in the United States Bankruptcy Court for the Southern District of Indiana. This was done without her husband’s consent, knowledge or authorization. During the course of the bankruptcy proceedings, Bippus-Allen created several documents bearing the forged signature of her husband of over 25 years.
Bippus-Allen also provided her bankruptcy attorney with a letter from a doctor stating her husband was under his care and would be hospitalized for at least 30 days during which he could not see visitors or take phone calls. The doctor who purportedly signed the letter stated it was a forgery and that he had never provided services for her husband.
In March 2011, Bippus-Allen attended a meeting of creditors which her husband was required to attend as well. David Bippus, her brother, attended the meeting with Bippus-Allen and posed as Bippus-Allen’s husband. Bippus-Allen and David Bippus both stated under oath that he was the husband and that all schedules and documents filed in the bankruptcy proceedings were true and correct.
Based on the representations made by Bippus-Allen and David Bippus, a bankruptcy plan was confirmed requiring monthly payments to Bippus-Allen’s trustee for 60 months. Pursuant to this plan, approximately $74,000 was deducted from the direct deposit paychecks of Bippus-Allen’s husband without his consent or knowledge.
Bippus-Allen was convicted of wire fraud stemming from her transferring money from her husband’s 401(k) account into her own personal bank accounts without his consent, knowledge, or authorization. Bippus-Allen made multiple calls to the 401(k) service center purporting to be her husband while also faxing supporting documentation to the service center for a 401(k) hardship withdrawal. In sum, Bippus-Allen made multiple unauthorized withdrawals from her husband’s 401(k) account for a total of over $24,000. Bippus-Allen also took out over $16,000 in loans on her husband’s 401(k) account without his consent, knowledge, or authorization.
This investigation was conducted by the Federal Bureau of Investigation with assistance from the Southern District of Indiana Bankruptcy Fraud Working Group, which includes the U.S. Trustee Program.
"For honest individuals who find themselves overwhelmed by debt, filing for bankruptcy can be a lifesaver. But then there are others who try to get out of paying their debts and line their pockets through illegal actions," said W. Jay Abbott, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI takes our responsibility to pursue those who commit bankruptcy fraud and corrupt the process through deceit very seriously."
“Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). “I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating bankruptcy related crimes, as demonstrated by today’s sentencing.”The U.S. Trustee Program is the component of the U.S. Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
According to Assistant United States Attorneys Kyle M. Sawa and Todd Shellenbarger, who prosecuted this case for the government, Bippus-Allen must pay $112,354 in restitution and serve three years of supervised release following her sentence. Her co-defendant brother, David Bippus, was sentenced in May 2017 to two years of probation and $10,000 in restitution for conspiracy to commit bankruptcy fraud and making false statements in bankruptcy court.
East St. Louis Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Howard S. Mister, 42, of East St. Louis, Illinois was sentenced to 33 months of imprisonment on July 7, 2017 for Conspiracy to Distribute Cocaine.
At his change of plea hearing on April 4, 2017, Mister admitted that he had cooperated with several other individuals to distribute multiple kilogram quantities of cocaine in the East St. Louis area during late 2015 and early 2016. Police arrested Mister on March 11, 2016 as he was attempting to sell two kilograms of cocaine for $32,000.00.
The investigation which resulted in Mister’s arrest and sentence was conducted by the Federal Bureau of Investigations.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to More Than Six Years in Prison for Beating, Maltreating and Abusing 4-Year-Old BoyRead the Press Release
WASHINGTON –Timothy Allen, 20, of Washington, D.C., was sentenced today to six years and eight months in prison for beating and maltreating a four-year-old boy who was in his care last summer, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Allen’s mother, Suzette Nicole Allen, 45, is to be sentenced on Sept. 15, 2017 in the case. Both defendants pled guilty in April 2017, in the Superior Court of the District of Columbia, to a charge of first-degree cruelty to children. The pleas, which are contingent upon the Court’s approval, call for prison sentences of 18 months to seven years. The Honorable Lynn Leibovitz accepted Timothy Allen’s guilty plea today and sentenced him accordingly. Following completion of his prison term, Timothy Allen will be placed on three years of supervised release; during that time, he is to have no contact with children under the age of 18.
According to the government’s evidence, the child’s mother put the boy and his older brother in the care of the Allen family, who she knew, during the summer of 2016. Over the summer, the Allens beat the child with their hands and with drumsticks. The child’s health deteriorated as a result of these beatings, and by early August, he was having trouble walking. Over the next couple of weeks, the boy grew lethargic and his balance faltered. In text messages, the defendants discussed what was happening. Yet they never sought medical attention.
The boy’s mother received the children back from the Allen family on Aug. 16, 2016, immediately recognized that something was wrong, and rushed him to Children’s National Medical Center. He was found to be suffering from multiple brain contusions, two lacerations to his liver, a hemorrhage in his abdominal cavity, two rib fractures, a fractured finger, a missing tooth, patterned scars to his spine, abdomen, chest and inner thighs, and healing injuries to his forehead, eye, nose, jaw, and chest. The boy was kept at the hospital for 17 days and then spent another 55 days in rehabilitation at another facility.
The Metropolitan Police Department (MPD) was alerted by medical professionals and began an investigation that led to the defendants’ arrests last fall. Timothy Allen has been in custody since his arrest. Suzette Nicole Allen is free on personal recognizance pending sentencing, with a condition that she have no contact with children under age 18.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Child Forensic Interview Specialist Tracy Owusu, Victim/Witness Advocate Veronica Vaughn, and Paralegal Specialist T.J. McPhail. Finally, they commended the work of Assistant U.S. Attorneys Louis Manzo and Melissa Price, who investigated and prosecuted the case.
District Man Pleads Guilty to Accosting Teenage Girl at MuseumRead the Press Release
WASHINGTON – Devone Foote, 35, of Washington, D.C., pled guilty today to a felony charge stemming from an incident last spring in which he sexually accosted a 14-year-old girl who was on a school trip at a museum, U.S. Attorney Channing D. Phillips announced.
Foote pled guilty in the Superior Court of the District of Columbia to a charge of attempted second-degree child sexual abuse. The charge carries a statutory maximum of five years in prison. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 18 months in prison. Following his prison term, Foote would be required to register as a sex offender for a period of 10 years. The Honorable Judith Bartnoff scheduled sentencing for Sept. 15, 2017.
Foote was arrested on April 4, 2017 after he allegedly touched seven girls, ages 13 and 14, on the buttocks, while they were visiting the Smithsonian National Museum of Natural History. He has been in custody ever since. The guilty plea involved one of those offenses.
According to a proffer of facts submitted at the plea hearing, on April 4, 2017, at approximately 5 p.m., a volunteer at the insect exhibit noticed Foote leering at a group of teenage girls from a few feet away. Foote approached the group and took several pictures. He then touched a 14-year-old girl on the buttocks with his hand and held her hair. He then walked away. He was identified shortly afterward outside the museum and arrested. In his guilty plea, Foote admitted that he acted voluntarily and on purpose, and not by mistake or accident.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Smithsonian Institution Office of Protection Services and from the U.S. Park Police. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins, Paralegal Specialist D’Yvonne Key, and Criminal Investigator John Marsh. Finally, he commended the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Cleveland man sentenced to nearly five years in prison for violating Clean Air Act, illegally dumping garbageRead the Press Release
A Cleveland man was sentenced to nearly five years in prison and ordered to pay $7.8 million in restitution for violating the Clean Air Act by failing to remove asbestos prior to demolishing a former factory in Cleveland, Acting U.S. Attorney David A. Sierleja said.
Christopher Gattarello, 53, and Robert A. Shaw, Sr., 77, of Ypsilanti, Michigan also defrauded a Louisiana company out of $1.1 million. Shaw was sentenced to a year in prison.
U.S. District Judge Donald C. Nugent sentenced Gattarello to 57 months in prison. He ordered restitution of $5.9 million to the city of Cleveland to clean the site, nearly $800,000 to the U.S. EPA for work already done on the site, and $1.1 million to the defrauded Louisiana company.
“Mr. Gattarello created a garbage dump in a residential neighborhood near a school, which remains an environmental hazard,” Sierleja said. “He has caused irreparable harm and deserves this punishment.”
“The defendants in this case put unsuspecting workers at great risk and threatened the health and safety of the community when they failed to follow proper procedures for removing asbestos,” said Scot Adair, Acting Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “This case demonstrates that EPA and its law enforcement partners will prosecute those who willingly break environmental laws in an attempt to cut costs.”
“Our goal is to protect Ohio’s families, and we work hard to ensure that people who commit crimes are held accountable for their actions,” Ohio Attorney General Mike DeWine said. “Collaboration among agencies, which occurred in this case, is so important.”
“Let these sentencings stand as a warning to those who victimize the public that whether you are the main perpetrator of a fraud, or merely assist in its facilitation, the law will hold all guilty parties accountable,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The successful prosecution of these individuals is a direct result of the excellent partnership that federal, state and kocal law enforcement has in combating violations of federal law."
According to court documents and testimony:
Gattarello owned and controlled several garbage-hauling businesses in Cleveland, including Reach Out Disposal, All Points Rubbish Disposal and Axelrod Rubbish Recycling. Shaw worked for Gattarello at those companies, while William Jackson operated a Cleveland building demolition company.
Gattarello leased the former National Acme facility on East 131st Street in Cleveland in 2011. The 570,000 square-foot facility was built in 1917 and was used for manufacturing for nearly a century. It is located near many homes and a school. Gattarello represented that paper and cardboard waste would be recycled at the facility. Removing asbestos from the facility would cost an estimated $1.5 million.
Gattarello directed paper and cardboard waste, as well as municipal garbage, be delivered to the facility for recycling. Over the next several months, more garbage, paper and cardboard were delivered than could be handled, and Gattarello had the waste moved inside. By 2012, most of the facility was filled with garbage.
Gattarello entered into a contract to purchase the facility in May 2012. He intended to demolish the facility and sell any metal removed as scrap.
In July 2012, Jackson submitted a notice of demolition with Cleveland stating there was no asbestos in the National Acme facility. About 10 days later, the city rejected Jackson’s notice and stated demolition could not begin until proper notice was submitted and approved. About 10 days after that, on July 21, 2012, Jackson began demolition at Gattarello’s direction.
Asbestos fibers were released into the environment during demolition. Debris accumulated outside the facility and asbestos in the piles were exposed to the wind and elements.
Jackson had pleaded guilty to related charges and is awaiting sentencing
Gattarello and Shaw also admitted to defrauding AIM Business Capital LLC. The Lousiana company specializes in “factoring” – a practice in which AIM purchases accounts receivable, such as invoices billed to customers for goods and services. Businesses that factored their receivables with AIM received immediate cash. AIM purchased the receivables at a percentage discount of the invoice. AIM made a profit by collecting the full amount of the invoice from the business’s customers.
Shaw entered into contracts with AIM for the purchase of receivables from Reach Out and Axelrod in 2011 and 2012. Gattarello directed the creation of false and fraudulent invoices for the companies and directed that they be submitted to AIM. In some cases, Gattarello and Shaw directed other employees to create false letters attesting to the validity of the invoices, which Shaw forwarded to AIM. The loss to AIM was $1.1 million.
The case is being prosecuted by Assistant U.S. Attorneys Brad Beeson and Chelsea Rice following an investigation by the U.S. and Ohio Environmental Protection Agencies, the Ohio Bureau of Criminal Investigation and the Internal Revenue Service.
Chelsea Man Pleads Guilty to Theft of VA BenefitsRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Victor Lawrence, 63, of Chelsea, Maine pled guilty yesterday in U.S. District Court to theft of travel reimbursement benefits from the U.S. Department of Veterans Affairs (VA).
According to court records, Lawrence submitted 77 claims from 2015 through 2016 to the VA for travel reimbursement, falsely claiming that he had driven nearly 100 miles to obtain treatment from the Togus VA Medical Center while he was in fact residing less than six miles away.
Lawrence faces up to 10 years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Criminal Investigation Division of the V.A. Office of the Inspector General.
Calvert County Man Sentenced to 72 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
JULY 7, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4855
Greenbelt, Maryland – On July 6, 2017, U.S. District Judge George J. Hazel sentenced Andre Barbins, age 46, formerly of Solomons, Maryland, to 72 months in prison, followed by 15 years of supervised release, for receipt of child pornography. Barbins pled guilty to the charge on January 26, 2017.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Sheriff David Clague of the Knox County (Illinois) Sheriff’s Department.
According to his plea agreement, Barbins used experienceproject.com, a social media application accessible through the internet, to chat with and exchange pictures with a 12-year-old victim located in Illinois. The victim told Barbins directly that she was only 12 years old, nevertheless, Barbins continued chatting and exchanging pictures with the victim over the course of five days. Barbins persuaded the victim to send him pictures containing child pornography. Barbins also sent pornographic pictures of himself to the child. When a search warrant was executed at Barbins’ residence in Solomons, Maryland, officers located several items of furniture that were visible in the photographs that Barbins sent to the victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended HSI, the Maryland State Police, and the Knox County Sheriff’s Office for their work in the investigation. Mr. Schenning thanked Assistant United States Attorney Joseph R. Baldwin, who prosecuted the case.
California Man Pleads Guilty to Possessing Firearms after a Domestic Violence ConvictionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that QUINTON COOKS, 37, of California, pled guilty yesterday to two counts of possession of a firearm after having been convicted previously of a domestic violence offense.
According to court documents, on April 26, 2015, New Orleans Police Department (“NOPD”) detectives responded to the 3700 block of Earhart Boulevard because of reported gunshots. They observed an empty vehicle that had sustained several gunshots still running and in drive, with a door ajar. There were spent casings trailing down the sidewalk. The detectives encountered COOKS at the scene. After waiving his Miranda rights, COOKS admitted to exchanging fire with another vehicle and then hiding a firearm in a nearby residence. The detectives recovered the firearm hidden in a shoe in the closet of the residence.
A week later, on May 3, 2015, Louisiana State Police troopers observed a hand-to-hand transaction between a pedestrian and a vehicle that was stopped on Loyola Avenue near Julia Street in New Orleans. COOKS and two others occupied the vehicle. As the troopers approached the vehicle, they detected a strong odor of marijuana emanating from within the vehicle, and observed the passengers making suspicious movements. The troopers searched the vehicle and recovered two firearms with extended magazines and a plastic bag containing marijuana. COOKS testified in state court that one of the firearms belonged to him.
COOKS faces a maximum sentence of 10 years of imprisonment, up to a $250,000.00 fine, up to 3 years supervised release, and $100 Mandatory Special Assessment Fee for each count. U.S. District Court Judge Eldon E. Fallon set sentencing for October 5, 2017.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosive, the Louisiana State Police, and the New Orleans Police Department for investigating this matter. Assistant United States Attorneys Maria Carboni and Matthew Payne are in charge of the prosecution.
California Man Indicted on Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned and indictment charging Loren Glen Warner, 27, of Fresno, CA, with production, receipt, and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment and a previously complaint, in early January, 2017, the defendant met the 14 year-old victim at her family’s church in Cattaraugus County, NY, and the two began communicating via Facebook and Snapchat. During those communications, Warner, who knew the victim was 14 years-old, began making sexual references and statements, and sent sexually explicit images of himself to the victim. The defendant also asked for and received nude photographs of the victim.
On March 27, 2017, the defendant pleaded guilty to Rape in the Second Degree and Endangering the Welfare of a Minor in Cattaraugus County Court and is scheduled to be sentenced on those charges on July 12, 2017.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Michael J. Roemer and is being held.
The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; the New York State Police, under the direction of Major Steven Nigrelli; and the Cattaraugus County District Attorney’s Office, under the direction of Lori Rieman.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Businessman Sentenced to 87 Months in Federal Prison for $4.6 Million Fraud SchemeRead the Press Release
DALLAS —Wesley Michael Woodyard, 66, most recently from Dallas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to 87 months in federal prison for his role in a scheme to defraud Ace European Insurance Company (ACE) located in London, England of more than $4.6 million from approximately 2002 through 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Woodyard pleaded guilty in December 2016 to one count of wire fraud. Woodyard has been in custody since the time of his arrest in Minnesota in June 2016. Judge Fitzwater also order Woodyard to pay $3,943,179 in restitution and serve a three year term of supervised release following his release from federal prison.
According to documents filed in the case, Woodyard owned and operated Ringler Associates of North Texas, Incorporated (RANT). From approximately 1993 through 2015, RANT contracted with Ringler Insurance Agency to act as its agent to sell annuities provided by insurance underwriters whose products were offered for sale through Ringler Insurance Agency.
Ringler Associates, Incorporated (RAI) acted as a parent company for Ringler Insurance Agency and other subsidiaries conducting insurance business on behalf of RAI.
RANT settled insurance claims primarily by selling structured settlements (through annuities) offered for sale through Ringler Insurance Agency. The beneficiaries of these annuities were frequently victims of long term disability related injuries and/or death related to employment. While a policy beneficiary could choose to take a lump sum payment from the insurance company, usually the beneficiary agreed to be compensated through a structured settlement. The annuity would pay the beneficiary a set amount either monthly, quarterly or annually, for an extended period of time, often for the life of the beneficiary. Annuities usually offered the most cost-effective means for an insurance company to pay out a structured settlement. RANT sold annuities available on the open market through Ringler Insurance Agency.
According plea documents, during 2002 through 2013, Woodyard devised a scheme to defraud and to obtain money and property by false and fraudulent pretenses, representations, and promises. Woodyard engaged in a pattern of deceitful conduct and made false representations designed to fraudulently induce representatives of Ace European Insurance Company (ACE) to send 11 wire transfers totaling approximately $4,674,258 to one or more bank accounts controlled by Woodyard. ACE initially sent these funds to companies acting as a third party administrator who then transferred the ACE funds to Woodyard. As charged in the indictment, Woodyard stole $4.6 million which was intended to be used to purchase annuities for beneficiaries of ACE European insurance policies. The beneficiaries directly impacted by Woodyard’s extensive and lengthy scheme were United Nations employees who were either injured or killed in connection with their employment.
Woodyard falsely represented to ACE, as well as third party administrators Roger Rich and Company, and Vanbreda International, that Woodyard intended to lawfully use all funds received from ACE to purchase several life insurance annuity contracts from Metropolitan Life, Incorporated or some other legitimate insurance company. Woodyard also caused ACE funds to be sent from Roger Rich and Vanbreda directly to RANT rather than to the annuity provider and thus denied Ringler Insurance Agency its commission earned for the transaction. Woodyard fraudulently concealed from ACE and others that Woodyard unlawfully used the majority of ACE funds for Woodyard’s own personal financial benefit. As a result of this scheme, from 2002 through 2013, Woodyard fraudulently obtained a total of about $4,674,258 from ACE European Insurance Company.
As charged in the indictment, Woodyard made a total of about $857,626 in so-called “lulling payments” during the period from October 2004 through June 2014. These lulling payments were made by Woodyard in an effort to give beneficiaries the false impression that Woodyard had actually purchased legitimate insurance annuity contracts for these beneficiaries. Woodyard made these lulling payments in order to make detection of his extensive 11 year scheme more difficult. For restitution purposes, Woodyard was given credit for these lulling payments. Including all relevant conduct losses and credits, Woodyard was ordered to pay total restitution of $3,943,179.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney David Jarvis prosecuted.
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Buffalo Woman Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elisa Rivera Ortiz, 36, of Buffalo, NY, was arrested and charged by criminal complaint with attempted possession, with intent to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on April 8, 2017, United States Postal Inspectors intercepted a package during a routine inspection of incoming parcels that contained cocaine. The package was addressed to the defendant. On June 30, 2017, inspectors found narcotics inside a second package intended for Ortiz.
On July 6, 2017, a controlled delivery of a package containing sham cocaine and a monitoring device was conducted at the defendant’s Warren Avenue residence. Once the monitor altered investigators that the package had been opened, they entered the residence and executed a search warrant. Ortiz attempted to run out the side door but was taken into custody.
During the search, investigators located the package of sham cocaine, drug packaging materials, a digital scale with suspected cocaine residue, and a small bag of marijuana. Ortiz’s son and three other minor children were in the residence at the time.
The defendant made an initial appearance today before U.S. Magistrate Judge Michael J. Roemer and was released.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division and the U.S. Postal Inspection Service, under the direction of Boston Division Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Blawnox Man Gets 30-Year Prison Term for Producing, Possessing Child Exploitation VideosRead the Press Release
PITTSBURGH – A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 30 years imprisonment for six counts of Production of Material Depicting the Sexual Exploitation of a Minor and one count of Possession of Material Depicting the Sexual Exploitation of a Minor, followed by a lifetime supervised release, and a $700.00 special assessment, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on George Orbin, 62, formerly of Blawnox, Pennsylvania.
According to information presented to the Court at trial, on or about December 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. In addition, on or about September 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar and Heidi Grogan prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Allegheny County District Attorney’s Office for conducting the investigation leading to the successful prosecution of Orbin.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Attorney Sentenced for Fraud Conspiracy That Stole $1.2 Million from St. Luke'sRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lake Lotawana, Mo., attorney was sentenced in federal court today for his role in a fraud conspiracy in which he and his former law partner stole more than $1.2 million from St. Luke’s Health System, a client of their former law firm.
Mark J. Schultz, 57, of Lake Lotawana, was sentenced by U.S. District Judge Beth Phillips to one year and one day in federal prison without parole. The court also ordered Schultz to pay $400,500 in restitution to St. Luke’s.
On Feb. 10, 2017, Schultz pleaded guilty to participating in a wire fraud and mail fraud conspiracy. His former law partner, Alan B. Gallas, 65, of Kansas City, Mo., also pleaded guilty in a separate but related case and was sentenced to one year and one day in federal prison without parole. The court also ordered Gallas to pay $1,224,264 in restitution to St. Luke’s.
Schultz and Gallas were attorneys and partners in the law firm of Gallas & Shultz in Kansas City, Mo., which specialized in collection work for corporations. Schultz and Gallas have each surrendered his license to practice law.
Gallas admitted that he engaged in a scheme from 2009 through July 2015 to defraud a client, St. Luke’s Health System, of monies collected by his law firm totaling $1,224,264. Schultz admitted that he participated in the conspiracy from January 2014 through July 2015.
Gallas was the attorney responsible for the St. Luke’s account at the law firm. After attempting to collect on patient accounts for a period of time, St. Luke’s would transfer its larger outstanding patient accounts to Gallas & Shultz for collection. As payments on patient accounts were received, the payments were logged into the case management system for the appropriate patient account. The monies were then deposited into the law firm’s trust account. On a periodic basis, often monthly, the firm would remit the patient payments collected to St. Luke’s.
Gallas admitted that he caused personnel at the law firm to withhold money from payments made to St. Luke’s by placing thousands of payments on “hold” status, then directing those funds be transferred from the trust account to the firm’s operating account. The pattern of not remitting some payments to St. Luke’s escalated significantly from 2012 to 2015. According to court documents, the firm withheld 601 payments totaling $211,391 in 2012. The firm withheld 699 payments totaling $266,696 in 2013. The firm withheld 625 payments totaling $227,892 in 2014. Through the month of July 2015, the firm withheld 625 payments totaling $216,845.
Schultz admitted that he agreed with Gallas and others to transfer funds from the trust account into the law firm’s operating account. According to court documents, Schultz was informed by his office manager in January 2014 that she was going to quit because she could no longer agree to move money out of the trust account. Schultz nevertheless continued to profit from the diversion of funds from the trust account until the discovery of the scheme in July 2015.
These cases were prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI.
6 July 2017
“BMB” Gang Member Charged with 2010 Murder of 15-Year-Old Boy Who Was Mistaken for Rival Gang MemberRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), announced that DOMINICK SHERLAND, a/k/a “D-Nick,” was charged today in a Superseding Indictment with the murder of Jeffrey Delmore, who was stabbed to death on May 15, 2010, at the age of 15. SHERLAND, along with 62 others, was originally charged on April 27, 2016, with racketeering conspiracy, narcotics conspiracy, and firearms offenses in connection with his membership in the “Big Money Bosses” (“BMB”), a violent street gang that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Dominick Sherland mistook 15-year-old Jeffrey Delmore for a gang rival, and stabbed him to death in defense of gang turf. This brutal and senseless murder ended a young life. Thanks to the outstanding work of our law enforcement partners, we are one step closer to providing Jeffrey Delmore’s family with the justice they deserve.”
HSI SAC Angel Melendez said: “Dominick Sherland is already facing trial for a slew of charges including narcotics distribution and racketeering, and now he faces charges of murder for allegedly stabbing a 15-year-old boy to death as he pled for his life. The alleged heinous act of this individual certifies that our unrelenting efforts to crack down on gang activity and the ensuing violence are necessary, and HSI and its partners will not waiver in that resolve.”
ATF SAC Ashan M. Benedict said: “The members of BMB, including the defendant, terrorized the streets of the Northern Bronx, committing numerous wanton acts of violence. The alleged homicide of an innocent victim mistaken as a member of a rival gang highlights the depth of the defendant’s alleged depravity and the senselessness of the violence the defendant and his criminal associates allegedly brought to the streets. Today’s charges demonstrate that our investigation has not stopped, and that we will continue to hold these gang members accountable to ensure they face justice for all the crimes they are alleged to have committed.”
DEA SAC James J. Hunt said: “Drug trafficking and violent crime are synonymous with gang activity. It is not surprising that additional crimes were unearthed as a result of last year’s massive gang takedown targeting the 2Fly YGZ and the BMB. What are shocking and appalling are casualties of this gang war; including the murder of a teenage boy whose identity was mistaken.”
According to the Superseding Indictment[1] and other documents filed in the case, as well as public proceedings in this case:
BMB was a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine and marijuana.
SHERLAND was a member of BMB. On May 15, 2010, SHERLAND and a group of other BMB members encountered a group of people in the vicinity of Gun Hill Road in the Bronx who the BMB members believed were members of the rival 2Fly YGz (“2Fly”) gang, which was based at the Eastchester Gardens public housing development. The BMB members mistook Delmore for a member of 2Fly. SHERLAND stabbed Delmore to death as Delmore pled for his life.
* * *
SHERLAND, 25, of the Bronx, New York, was arrested on April 27, 2016, and has been detained pending trial. In the Superseding Indictment, he is charged with murder in aid of racketeering, which carries a maximum sentence of life in prison; racketeering conspiracy, which carries a maximum sentence of life in prison; narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; possessing a firearm during the narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum of five years in prison, which must run consecutively to any other sentence imposed; and discharging a firearm during the racketeering conspiracy, which carries a maximum of sentence of life in prison and a mandatory minimum of 25 years in prison, which must run consecutively to any other sentence imposed. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge. SHERLAND is scheduled for trial on November 6, 2017, before United States District Judge Alison J. Nathan.
SHERLAND was arrested in this case as a result of a multi-year investigation by the Bronx Gang Squad of the NYPD, the HSI Violent Gang Unit, the DEA, and the Joint Firearms Task Force of ATF into gang violence in the Northern Bronx. On April 27, 2016, Indictment S2 15 Cr. 95 (AJN) was unsealed, charging 63 members and associates of BMB, including SHERLAND, with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. To date, 49 of these defendants have pled guilty. Also on April 27, 2016, Indictment S1 16 Cr. 212 (LAK) was unsealed, charging 57 members of 2Fly with the same offenses. To date, 54 of these defendants have pled guilty.
Mr. Kim praised the outstanding work of the NYPD’s 49th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, ATF, and the Department of Investigation, NYCHA Inspector General’s Office. He also thanked the Bronx County District Attorney’s Office for their ongoing support in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Would-Be Hartford Soccer Stadium Developer Guilty of Fraud and Money Laundering OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in Bridgeport today found JAMES C. DUCKETT JR., 45, guilty of conspiracy, fraud and money laundering offenses stemming from a scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city. The trial before U.S. District Judge Stefan R. Underhill began on June 26.
According to the evidence at trial, in September 2014, the City of Hartford entered into a professional services agreement with Mitchell Anderson and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, Anderson joined with DUCKETT who agreed to be the majority owner of the professional soccer team. DUCKETT and Anderson represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team. DUCKETT represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.
Beginning in approximately March 2015, Anderson submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, DUCKETT and Anderson directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project. DUCKETT and Anderson also secured invoices from subcontractors who had not performed work for the project, which DUCKETT and Anderson caused to be submitted to the city as if the work had been performed. DUCKETT and Anderson then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.
The investigation revealed that DUCKETT used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.
The jury found DUCKETT guilty of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and eight counts of conducting illegal monetary transactions. The jury found DUCKETT not guilty of one count of conducting illegal monetary transactions.
Each of the conspiracy and wire fraud counts carries a maximum term of imprisonment of 20 years, and each count of conducting illegal monetary transactions carries a maximum term of imprisonment of 10 years.
A sentencing date is not scheduled.
DUCKETT was arrested on June 23, 2016. He is currently released on bond, on home detention with electronic monitoring.
On February 6, 2017, Anderson pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of conducting illegal monetary transactions. He awaits sentencing. Anderson has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
This matter has been investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department has also assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Williamsburg Man Arrested on False Statement ChargesRead the Press Release
NORFOLK, Va. – A man alleged to have made false statements during his application to join the U.S. Army and Air Force was arrested today on charges he hid information from recruiters about his foreign travel and prior arrest in the Kingdom of Jordan.
Shivam Patel, 27, of Williamsburg, was charged on June 30 with making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. According to the criminal complaint unsealed today, Patel traveled to China in July 2016 and then flew to Jordan, where he was arrested, detained, and deported to the United States. In early September 2016, Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad.
After returning to the United States, Patel applied to join the U.S. Army and Air Force through the Officer Candidate Selection process beginning in December 2016. According to the complaint, when asked about his foreign travel as part of his applications, Patel did not disclose his travel to China or Jordan. Instead, Patel allegedly claimed that he had not traveled anywhere outside the United States in the past seven years, except for a family trip to India in 2011–2012.
Patel faces a maximum penalty of five years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Andrew Bosse is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-mj-354.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Watervliet Man Indicted on False Claim and Identity Theft ChargesRead the Press Release
ALBANY, NEW YORK – Bryant C. Hardnett, age 44, of Watervliet, New York, was arraigned yesterday on false claim and aggravated identity theft charges relating to his filing of fraudulent individual income tax returns.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
According to the indictment, from 2013 to 2016, Hardnett filed tax returns that falsely claimed dependents and self-employment income, causing the Treasury Department to issue tax refunds to which the taxpayers were not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Hardnett was arraigned yesterday before United States Magistrate Judge Daniel J. Stewart, who set conditions for Hardnett’s release pending a trial before Senior United States District Judge Lawrence E. Kahn.
On each false claims charge, Hardnett faces up to 5 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. On each aggravated identity theft charge, Hardnett faces a mandatory 2-year term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
ROANOKE-A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
U.S. Attorney Announces $1.95 Million Settlement to Resolve Claims for Unpaid PostageRead the Press Release
DENVER -- Bob Troyer, Acting U.S. Attorney for the District of Colorado, today announced that AtLast Holdings, Inc. has paid $1,950,000 to settle allegations that the corporation and its parent company Newgistics, Inc. failed to pay proper postage to the United States Postal Service (USPS).
The settlement announced today resolves a long-running investigation into AtLast, a provider of mailing and logistics services. The investigation by the United States Postal Inspection Service determined that AtLast had underreported the size and weight of packages it shipped through the USPS. The United States contends that as a result of these misrepresentations, AtLast paid less in postage than was actually due to the Postal Service.
“The U.S. Postal Inspection Service did a fantastic job investigating this case,” said Acting U.S. Attorney Bob Troyer. “Never a great idea to try to trick those guys.”
“The U.S. Postal Inspection Service is committed to protecting the U.S. Postal Service, and will vigorously pursue those who attempt to circumvent paying the USPS the full price due for its products and services,” said Craig Goldberg, Inspector in Charge, U.S. Postal Inspection Service, Denver, Colorado. “The Postal Inspection Service appreciates the strong stance the United States Attorney’s Office has taken against those who seek to take advantage of the U.S. Postal Service.”
The claims settled by this agreement are allegations. In entering into this civil settlement, AtLast and Newgistics did not admit liability.
The United States Attorney’s Office thanks the United States Postal Inspection Service for the work that made this recovery possible. The United States was represented in this matter by Assistant United States Attorney Jasand Mock of the District of Colorado.
Two New York Men Get over 12 Years in Prison for Armed Robbery, Carjacking, and Violent KidnappingRead the Press Release
NEWARK, N.J. – Two Rockland County, New York, men were sentenced to prison today for their roles in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Guillermo Carrillo-Iraheta, 20, and Juan Chiliseo-Vega, 20, both of Suffern, New York, were sentenced to 150 and 168 months in prison, respectively. Both defendants previously pleaded guilty to separate informations charging them with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. U.S. District Judge Jose L. Linares imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 25, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega, and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta, Chiliseo-Vega and others forced the driver into the back of the vehicle and took over driving. They also caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
In addition to the prison terms, Judge Linares sentenced both defendants to five years of supervised release.
Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, and Jostin Reyes, 21, of Waldwick, New Jersey, have also pleaded guilty to their roles in the bar robbery, carjacking and kidnapping. Balmore Carrillo-Iraheta, 20, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, pleaded guilty to their roles in the bar robbery. All four defendants await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, investigators from the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments with the investigation.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel:
Guillermo Carrillo-Iraheta: Michele Ann Adubato Esq., Bayonne, New Jersey.
Chiliseo-Vega: Frank Arleo Esq., West Orange, New Jersey
Two Indicted on Attempted Bank Robbery, Murder, and Making False Statements to a Federal Agent Charges Related to Loomis Armored Car RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DELTOINE SCOTT, age 24, and JEROME KIEFFER, age 24, both of New Orleans, were indicted today by a federal grand jury for charges of attempted bank robbery resulting in death, using a firearm during and in relation to a crime of violence that resulted in death, and making false statements to a federal agent.
According to the Superseding Indictment, SCOTT and KIEFFER attempted to take money belonging to Campus Federal Credit Union on May 31, 2017, using force, violence, and intimidation. The Superseding Indictment alleges that SCOTT and KIEFFER used firearms in committing the robbery and charges them with death of James McBride. If convicted of the attempt bank robbery, SCOTT and KIEFFER face a mandatory life sentence or death. The Superseding Indictment also charges SCOTT and KIEFFER with using a firearm during and in relation to the robbery, which carries a penalty of up to life in prison or death. Finally, the Superseding Indictment alleges that SCOTT, about a week after the robbery, lied to federal agents about having lost his phone and about his whereabouts on the day of the robbery. If convicted, SCOTT faces up to five years in prison on each of the false statement counts.
“Our fellow citizens deserve to be safe and to feel safe,” stated Acting U.S. Attorney Duane A. Evans. “We can achieve that goal only if law enforcement and the community continue to work together. The men and women of the U.S. Attorney’s Office for the Eastern District of Louisiana will make every effort to prosecute violent offenders to the fullest extent of the law. Special thanks to the men and women of the Federal Bureau of Investigation New Orleans Field Office and the New Orleans Police Department for their hard work and dedication in investigating this matter.”
“Today’s federal grand jury Superseding Indictment clearly demonstrates that the people of New Orleans, the U.S. Attorney’s Office and law enforcement will not tolerate violence in our city,” stated Jeffrey S. Sallet, Special Agent in Charge, New Orleans Field Division of the Federal Bureau of Investigation. “Through the dedicated efforts of the FBI New Orleans Violent Crime Task Force and the NOPD Homicide Section, the perpetrators of this heinous crime will be brought to justice.”
"We are proud of the collaborative effort our department's homicide unit and the FBI made to solve this case, to work with the U.S. Attorney's office to secure a Superseding Indictment, and to see justice done," stated New Orleans Police Superintendent Michael Harrison.
Acting U.S. Attorney Evans reiterated that the Superseding Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Assistant United States Attorneys David Haller and Michael McMahon who are in charge of the prosecution.
Three Defendants Charged with 2008 Murder During Attempted Armed RobberyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging LUIGI JAQUEZ, KARILIE HERRERA, a/k/a “Choco,” a/k/a “Choco Black,” and SACHA SANTIAGO with the June 24, 2008, murder of Maximiliano Campusano, 33.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Jaquez, Herrera, and Santiago planned the gunpoint robbery of Maximiliano Campusano, which ended in Campusano’s murder. Thanks to the outstanding work of the FBI, the defendants have been arrested and charged with this terrible crime. We will continue to work with our partners in law enforcement, no matter how much time passes, to hold murderers responsible for their crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “More than nine years has passed since Mr. Campusano was murdered, but time doesn’t change the fact that those responsible deserve to be brought to justice. We want the community we serve to know we are committed to tracking down and following all the evidence to solve crimes, no matter how much time it takes.”
According to the Indictment[1]:
On June 24, 2008, JAQUEZ, HERRERA, and SANTIAGO planned to rob, and attempted to rob, Campusano, using a gun, in the vicinity of 20 Bogardus Place, New York, New York. During the attempt to carry out the armed robbery, one of the charged defendants’ co-conspirators shot and killed Campusano.
* * *
JAQUEZ, 28, and SANTIAGO, 25, both of Manhattan, New York, were arrested this morning by the FBI. HERRERA, 26, also of Manhattan, New York, was taken into federal custody yesterday evening. The defendants will be presented later today before Chief United States Magistrate Judge Debra Freeman. The case has been assigned to United States District Judge Paul A. Crotty.
The sole count of the Indictment charges the defendants with use of a firearm in furtherance of a crime of violence resulting in the murder of Campusano, and aiding and abetting the same. JAQUEZ faces a maximum sentence of life in prison or death. HERRERA and SANTIAGO face a maximum sentence of life in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim thanked the New York City Police Department’s 34th Precinct Detective Squad for its determined efforts in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff, Hagan Scotten, and Douglas Zolkind are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Third Circuit Vacates Child Abuse Sentences Appealed by GovernmentRead the Press Release
Defendants Will Be Resentenced at a Later Date
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today ruled that a former U.S. Army major and his wife, convicted for having endangered the welfare of their adopted children through a series of physically abusive acts, must be resentenced, Acting U.S. Attorney William E. Fitzpatrick announced.
Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson, 39, had received only 24 months in prison while her husband, John E. Jackson, 42, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, had received only probation and 400 hours of community service. The government had appealed their sentences to the U.S. Court of Appeals for the Third Circuit.
Today, the Court of Appeals ruled that the District Court had committed several errors in the process of imposing those sentences. As a result, the Jacksons will be resentenced at a later date, which has yet to be decided.
The government was represented by Assistant U.S. Attorney John Romano of the U.S. Attorney’s Office Appeals Division in Newark.
Jackson Verdict Release
Jackson Sentencing Release
Texas Business Owner Sentenced to Prison for Not Paying Approximately $18 Million in Employment TaxesRead the Press Release
A Houston, Texas business owner was sentenced today to 36 months in prison for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas.
According to documents filed with the court, Richard Floyd Tatum Jr., 57, owned Associated Marine & Industrial Staffing Inc. (AMI), an industrial staffing company that provided temporary labor to businesses in Texas and other states. Tatum employed approximately 1,000 people to include internal employees, who worked for AMI, and external employees, who AMI assigned to work on-site at client locations. Tatum was responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) the payroll taxes withheld from AMI’s employees’ wages. Tatum exercised significant control over AMI’s finances, entered into contracts on behalf of AMI, signed checks, to include payroll, and decided which creditors to pay. Tatum also signed and filed AMI’s employment tax returns.
From March 2008 through December 2009, Tatum filed false and delinquent employment tax returns for AMI, which did not report AMI’s external employees. In May 2013, Tatum filed delinquent returns for the quarters ending in March 2010 through December 2012, reporting AMI’s external employees but making no payments of the taxes owed. Tatum withheld from his employees approximately $12 million in payroll taxes from March 2008 through December 2012, but did not pay over any of this money to the IRS. Tatum also failed to pay $6 million of AMI’s required share of social security and Medicare taxes during the same quarters. Instead, he used the money for his personal benefit, including making payments on his ranch and traveling to Las Vegas, Hawaii and France. Tatum admitted that he caused a tax loss of more than $18 million.
In addition to the term of imprisonment imposed, Tatum was order to serve three years of supervised release and to pay restitution to the IRS in the amount of $18,298,604. Tatum pleaded guilty to one count of failing to pay over employment taxes in March.
“For years, Richard Tatum Jr. violated his legal duty, failing to pay more than $18 million in employment taxes,” said Acting Deputy Assistant Attorney General Goldberg. “He cheated his employees, the U.S, Treasury and his honest competitors who paid their taxes and sought to compete on a level playing field. Employment tax enforcement remains a top priority for the Tax Division, and Tatum’s prison sentence today sends a strong message that those who divert such payments for their personal benefit will be held accountable.”
“When Mr. Tatum decided not to pay employment taxes, he not only affected the revenue to the U.S. government, but also the system that ensures employees’ Medicare and Social Security benefits,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing of Mr. Tatum again emphasizes that IRS-CI and the Department of Justice will be relentless and aggressive in our pursuit of those who attempt to defraud America’s tax system.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Grace Albinson and Mara Strier of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Six Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Westchester CountyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), and Charles Gardner, the Commissioner of the City of Yonkers Police Department (“YPD”), announced today the unsealing of an indictment and a complaint charging six defendants with allegedly engaging in the distribution of heroin throughout the Southern District of New York. Five defendants were taken into federal custody today, and will be presented in White Plains federal court this afternoon before United States Magistrate Lisa M. Smith. JAMES ODELL WHITTED remains at large.
Acting U.S. Attorney Joon H. Kim said: “As alleged, these defendants contributed to the rising tide of heroin that is plaguing suburb and city alike. Thanks to the excellent work of the DEA and the Yonkers Police Department, we hope to stem that tide and protect our communities from this epidemic.”
DEA Special Agent in Charge James J. Hunt said: “Gangs are actively capitalizing on opioid addiction by pushing potent heroin onto our streets. In this case, heroin was allegedly being trafficked throughout Yonkers, Westchester and Newburgh communities, increasing the risks of potential overdoses caused by opioids. I applaud the men and women of the Westchester Task Force and the US Attorney’s Office, Southern District of New York for their diligence in this investigation and commitment to safeguarding public health.”
Yonkers Police Commissioner Charles Gardner said: “These arrests will reduce the availability of heroin in our community and help fight the opioid epidemic we are experiencing. I would like to specifically thank the US Attorney’s Office for the Southern District of New York and the US DEA Westchester Task Force for their support and tenacious efforts in this investigation.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From at least in or about February 2017 up to and including in or about June 2017, in the Southern District of New York and elsewhere, CHRISTOPHER COLEMAN, a/k/a “Fox,” JONATHAN ACQUINO, a/k/a “Jonathan Aquino,” a/k/a “Jonathan Harvey-Acquino,” a/k/a “Gotti,” JAMES ODELL WHITTED, a/k/a “Odell,” a/k/a “O,” LEIBYS MERCEDES, a/k/a “Celly,” a/k/a “Sonny,” BRANDEN JONES, a/k/a “Branden Mima,” a/k/a “Marlo,” conspired to distribute 100 grams and more of heroin.
As alleged in the Complaint unsealed today in White Plains federal court[2]:
LISA HENDERSON and COLEMAN conspired to distribute heroin. Specifically, HENDERSON assisted COLEMAN in packaging the heroin for resale and allowed COLEMAN to store narcotics trafficking paraphernalia in HENDERSON’s apartment.
* * *
The defendants COLEMAN, ACQUINO, WHITTED, MERCEDES, and JONES each face a maximum term of 40 years in prison, and a mandatory minimum term of five years in prison.
The defendant LISA HENDERSON faces a maximum term of 20 years in prison.
A chart containing the names of the defendants who were arrested and charged today, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Kim praised the outstanding investigative work of the DEA’s Westchester Resident Office and the Narcotics Unit of the City of Yonkers Police Department. The DEA’s Westchester Resident Office comprises agents and officers of the DEA, Westchester Police Department, New Rochelle Police Department, Yonkers Police Department, Mount Vernon Police Department, White Plains Police Department, and Port Chester Police Department. Mr. Kim also thanked the United States Marshals Service and the United States Probation Office for their assistance in taking the defendants into custody.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Celia V. Cohen and Samuel L. Raymond are in charge of the prosecutions.
The charges contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 100 grams and more of heroin.)
CHRISTOPHER COLEMAN, a/k/a “Fox”
JONATHAN ACQUINO, a/k/a “Jonathan Aquino,” a/k/a “Jonathan Harvey-Acquino,” a/k/a “Gotti”
JAMES ODELL WHITTED, a/k/a “Odell,” a/k/a “O”
LEIBYS MERCEDES, a/k/a “Celly,” a/k/a “Sonny”
BRANDEN JONES, a/k/a “Branden Mima,” a/k/a “Marlo”
40 years in prison
Mandatory minimum: 5 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute heroin.)
LISA HENDERSON
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Sissonville man pleads guilty to federal methamphetamine chargeRead the Press Release
CHARLESTON, W.Va. – A Sissonville man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Richard Lee Gandy, Jr., 40, entered his guilty plea to possession with intent to distribute methamphetamine.
Gandy admitted that on September 12, 2015, officers responded to his residence and upon arrival, they found Gandy in his garage with approximately 50 grams of methamphetamine in plain view. Officers received consent to search the garage and found marijuana as well as items commonly used to distribute illegal drugs. Members of the Kanawha County Sheriff’s Department returned the following day and received consent to search the garage more thoroughly. Officers additionally obtained a search warrant for the surrounding outbuildings and property. During the execution of the search warrant and the consensual searches, law enforcement found a total of approximately 200 grams of methamphetamine, 11 marijuana plants, nearly 12 pounds of marijuana, digital scales, a room containing materials commonly used to grow marijuana indoors, precursor materials used to manufacture methamphetamine, and over $18,000 cash. Officers also recovered ATV’s, equipment, and tools that had previously been reported stolen from several different states. Gandy admitted that he intended to distribute the methamphetamine in and around Kanawha County.
Gandy faces up to 20 years in federal prison when he is sentenced on October 12, 2017.
The case against Gandy was investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Santa Fe Woman Sentenced for Conviction on Attempted Armed Robbery ChargeRead the Press Release
ALBUQUERQUE – Sonya Padilla, 42, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year and a day in prison followed by three years of supervised release for her conviction for attempting to rob a business engaged in interstate commerce.
Padilla and co-defendant Michael Crespin, 44, also of Santa Fe, were arrested in May 2014, on a criminal complaint charging them with robbing the First National Bank of Santa Fe located at 4995 Governor Miles Road in Santa Fe on May 5, 2014. According to the complaint, Crespin robbed the bank by brandishing a gun at bank tellers and demanding money. He left the bank with the money and was driven away by Padilla.
Crespin and Padilla were indicted on May 21, 2014, and charged with armed bank robbery. A superseding indictment was filed on May 28, 2015, and charged Crespin and Padilla with violating the Hobbs Act on April 28, 2014, in Santa Fe County by attempting to rob the Plaza de Centro America market, and with the armed robbery of the First National Bank of Santa Fe on May 5, 2014, in Santa Fe County.
Padilla pled guilty on March 7, 2016, to attempted interference with interstate commerce by robbery and violence and admitted that on April 28, 2014, she and Crespin attempted to rob the Plaza de Centro America market in Santa Fe.
On Sept. 4, 2015, Crespin pled guilty to armed bank robbery, and admitted that on May 5, 2014, he robbed the First National Bank of Santa Fe while armed with an airsoft pistol, which he waved around and pointed towards bank tellers while he demanded money. Crespin was sentenced on April 26, 2016, to 13 years in prison followed by three years of supervised release.
This case was investigated by the Santa Fe office of the FBI and the Santa Fe Police Department. Assistant U.S. Attorneys David M. Walsh and Norman Cairns prosecuted the case.
San Antonio Couple Sentenced to Federal Prison for Conspiring to Commit Wire Fraud and Identity TheftRead the Press Release
In San Antonio this afternoon, a federal judge sentenced both 38-year-old Jessica Rivas Alva and her husband, 40-year-old Eric Jon Alva, to six months in federal prison for defrauding undocumented immigrants and their family members out of money by falsely claiming to work on behalf of two San Antonio attorneys, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison terms, United States District Judge Xavier Rodriguez ordered that the defendants pay $3,000 restitution to their victims and be placed on supervised release for a period of three years after completing their 6-month prison terms.
On March 2, 2016, both defendants pleaded guilty to one count of conspiracy to commit wire fraud and aggravated identity theft. The charge to which the defendants pleaded guilty alleged that between March 2015 and May 2015, the couple conspired to collect legal fees from incarcerated undocumented immigrants and/or their families under false pretenses.
According to the charge, in April 2015, the Alvas faxed forged letters fraudulently using the name and state bar number of two San Antonio-based attorneys to enable Jessica Alva to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Jessica Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into bank accounts that the Alvas controlled. Jessica Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Jessica Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.
The conspiracy charge to which the Alvas pleaded guilty also alleged that during telephonic immigration hearings before an immigration court, Eric Alva impersonated one of the San Antonio attorneys and claimed to represent the detained immigrant whose case was before the court.
Agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement investigated this case. We appreciate the cooperation of the Consumer Protection Division of the Texas Attorney General's Office during this investigation. Assistant United States Attorney Alan Buie prosecuted this case on behalf of the Government.
Ross County Man Sentenced to 120 Months in Prison for Dealing Heroin, Illegally Possessing Machine Guns and Other FirearmsRead the Press Release
COLUMBUS, Ohio – Ronald Allen Meadows, 46, of Chillicothe, Ohio was sentenced to 120 months in prison for illegally possessing firearms, including machine guns, and dealing heroin from his house.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ross County Sheriff George W. Lavender and the U.S. 23 Pipeline Major Crimes Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.
Undercover task force officers bought drugs at Meadows’ Wilson Run Road house in 2015 after receiving complaints about drug trafficking taking place there. Agents executed two search warrants at Meadows’ home in 2016, seized 40 firearms including two machine guns, and almost 90 grams of heroin. ATF agents and task force officers arrested Meadows in August 2016 following a grand jury indictment.
Meadows pleaded guilty on March 16, 2017 to three counts of possession of a firearm by a convicted felon, two counts of possession of a machine gun and one count of possession with intent to distribute heroin.
“There’s one less heroin dealer on the streets in Ross County today because people came forward and worked with law enforcement,” U.S. Attorney Glassman said. “The machine guns the agents seized also show that drugs and violence continue to be a deadly duo.” Glassman also commended the investigation by the U.S. 23 Pipeline Major Crimes Task Force and the ATF. Glassman also commended Assistant U.S. Attorney Timothy D. Prichard who represented the United States in this case.
Pittsburgh Man Admits Robbing 2 Western Pennsylvania PharmaciesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit robbery of a pharmacy, robbery of a pharmacy, brandishment of a firearm in relation to a crime of violence, and possession with the intent to distribute Schedule II controlled substances, Acting United States Attorney Soo C. Song announced today.
Stephan Edward Corrick, 66, pleaded guilty to six counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on March 11, 2016, Palmer's Pharmacy located in Russellton, (Allegheny County) Pennsylvania, was robbed by two individuals armed with firearms and wearing masks. The suspects stole approximately 10,000 dosage units of prescription drugs, including Oxycodone and Fentanyl, with an estimated street value of approximately $235,000. As a result of their comprehensive and extensive investigation, the Drug Enforcement Administration (DEA) and West Deer Police Department developed a general description of at least one suspect.
On April 28, 2016, Keystone Pharmacy located in New Alexandria Boro, (Westmoreland County) Pennsylvania, was robbed by two individuals wearing masks. One suspect had a gun and the other had pepper spray. The assailants placed employees on the ground and handcuffed them. Investigators determined that between 15,000 - 20,000 dosage units were stolen. Noting the similarities between both robberies, DEA then coordinated its investigation with that of the Pennsylvania State Police to identify and arrest the individuals in question. Agents determined that Corrick purchased the Kylo Ren Stars Wars mask, used in the Palmer’s Pharmacy robbery from a local Target Store. After locating and interviewing Corrick, agents secured a full confession. Immediately thereafter, the other suspect, Dana Shipley, was identified and arrested carrying a backpack containing a large amount of pills, money from the New Alexandria robbery and both masks used in the New Alexandria robbery. Shipley also had a .32 caliber firearm used in the commission of the crime concealed in his pocket. Corrick has an extensive criminal history and had recently been released from prison after serving time for armed robbery.
Judge Ambrose scheduled sentencing for, October 26, 2017. The law provides for a maximum total sentence of twenty years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Ambrose ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Police and the West Deer Township Police Department conducted the investigation leading to the prosecution of Corrick.
Ohio Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef, of Columbus, Ohio, pleaded guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, U.S. Code, Section 2339B.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF) made the announcement. The plea was entered before Chief U.S. District Judge Edmund A. Sargus Jr.
“Daniels admitted that he attempted to travel abroad to provide material support to ISIS,” said Acting Assistant Attorney General Boente. “Identifying, thwarting and holding accountable individuals who attempt to provide material support to foreign terrorist organizations is a top priority of the Department of Justice.”
“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
JTTF agents arrested Daniels on Nov. 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on Nov. 10, 2016. Daniels has been in custody since his arrest.
Daniels faces a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, the Ohio Investigative Unit, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
This case is being prosecuted by Assistant U.S. Attorneys Jessica W. Knight and Jessica Kim, and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Ohio Insurance Salesman Sentenced to Prison for Failure to File Income Tax Returns and Failure to Pay TaxesRead the Press Release
An insurance salesman and former resident of Parma, Ohio was sentenced to 37 months in prison today following his conviction in December 2016 for failing to file income tax returns and failing to pay taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio.
According to documents and information provided to the court, John Christopher Raschella, 57, of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the Internal Revenue Service (IRS) for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns with the IRS. For several years, Raschella filed delinquent returns, reporting that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount he owed, but Raschella still did not pay.
Raschella used a series of nominee entities to prevent the IRS from collecting his unpaid taxes. For example, formed two companies, Resource One, Corporation and Legacy Foundation International and deposited his insurance commissions into bank accounts that he opened in their names. He assigned his insurance commissions to Resource One and as a result, the company reported to the IRS that the income had been paid to the company instead of to individually. The insurance company revoked the assignment after learning that had concealed from a county government agency the fact that Resource One was his company. Raschella also caused a phony levy release to be sent to the insurance company that purported to be issued by the IRS. In response, the insurance company substantially reduced the amount of ’s insurance commissions that it paid over to the IRS in response to the levy.
In addition to the term of imprisonment, Raschella was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $573,157.13.
“For more than two decades, John Raschella tried to thwart the IRS’s ability to assess and collect the taxes he owed,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone has a legal obligation to pay their fair share and today’s sentence makes clear that those who willfully violate this duty face significant consequences including prosecution and jail.”
“Failing to file or pay taxes due are abuses of the federal tax system that affect us all,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing reaffirms that if you participate in these types of abusive tax schemes, you may go to jail. The American tax system is designed to provide vital government services to our people. It is not a pick-and-choose yearly decision as to whether you will obey the law and pay your owed taxes. IRS-CI and the Department of Justice will remain vigilant in ferreting out such schemes that cheat both the federal government and honest taxpayers.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Sierleja thanked special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio, who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nurse Imposter Pleads Guilty to Health Care FraudRead the Press Release
VICTORIA, Texas – A 42-year-old former resident of Goliad has admitted to posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty to five counts of making false statements relating to health care today in federal court.
Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.
At today’s hearing, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.
Senior U.S. District Judge John D. Rainey accepted the plea and set sentencing for Oct. 3, 2017. At that time, Gallarzo faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.
The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
North Olmsted man charged with selling misbranded drugsRead the Press Release
A North Olmsted man was charged in federal court with selling misbranded drugs, Acting U.S. Attorney David A. Sierleja said.
Khaled Farouk Elgayar, 50, received drugs that purported to treat erectile dysfunction and enhance sexual performance in men, including “African Superman,” “Hard Ten Days,” “Herb Viagra,” “libigrow,” “S.W.A.G” and “Triple PowerZEN,” according to the criminal information.
These products contained an undeclared drug ingredient, sildenafil, which is the active ingredient in FDA-approved prescription drugs used to treat erectile dysfunction. The labels of the products Elgayar sold failed to include the name and quantity of the drug ingredient, according to the information.
Undeclared drugs such as sildenafil may have serious potential side effects or may be harmful to consumers with certain pathological conditions. Additionally, undeclared drugs may interact dangerously with other prescription or non-prescription drugs the unwitting consumer might be taking. The labels for the products the defendant provided failed to adequately warn consumers of these contingencies, according to the information.
Elgayar received misbranded drugs and delivered or proffered delivery of those misbranded drugs between January and October 2016, according to the information.
“Disguising prescription drugs as harmless over-the-counter products can lead to serious consequences for unsuspecting buyers with dangerous underlying health conditions. It could also lead to dangerous interactions when combined with other drugs they may be taking,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who would endanger the public’s health in order to make a quick profit.”
If convicted, the court will determine defendant’s sentence after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Michael L. Collyer following an investigation by the Food and Drug Administration.
An information 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.
Newtown Man Charged with Receipt and Posession of Child PornographyRead the Press Release
John Hammond, of Norristown, PA, was charged today by Indictment with receipt and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that from on or about April 11, 2016 through on or about April 18, 2016, Hammond received child pornography over the Internet. The Indictment further alleges that on April 19, 2016, Hammond possessed a computer, disc, and external drives that contained child pornography.
If convicted. Hammond faces a possible sentence of 40 years’ incarceration with a mandatory 5-year term of imprisonment, up to a lifetime of supervised release, a $500,000 dollar fine, restitution, forfeiture, and a $10,000 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security and Montgomery County Detectives. It is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
New Year’s Gunshot that Killed Child Fired by Man Illegally in U.S.Read the Press Release
HUNTSVILLE – The man whose celebratory New Year’s 2017 gunfire killed a five-year-old child in Athens, Ala., pleaded guilty today in federal court to illegally possessing the gun because he was in the United States illegally. Acting U.S. Attorney Robert O. Posey, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido and ICE Homeland Security Investigations Acting Assistant Special Agent in Charge James Hernandez announced the plea.
FIDEL RODRIGUEZ-CANCHOLA, 34, of Mexico, pled guilty before U.S. District Court Judge Abdul K. Kallon to one count of possessing a firearm by an illegal alien. His sentencing is scheduled Oct. 12.
According to Rodriguez-Canchola’s plea, he celebrated New Year’s in the early morning hours of Jan. 1 by firing a Harrington & Richardson 900 .22-caliber revolver into the air outside his Athens residence. One of the rounds he fired struck a fire-year-old who died shortly after.
When Limestone County Sheriff’s deputies found Rodriguez-Canchola a few hours later, he admitted to firing the weapon but “insisted that he had not seen the child until she fell,” according to his plea agreement.
Rodriguez-Canchola was a native and citizen of Mexico, unlawfully present in the United States at the time of the shooting, according to his plea.
The maximum penalty for possessing a firearm by a prohibited person is 10 years in prison and a $250,000 fine.
ATF, Immigration and Customs Enforcement HSI and the Limestone County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Melissa K. Atwood is prosecuting.
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New Hampshire Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Gobin, 56, of Lempster, New Hampshire, was sentenced on July 6, 2017, in United States District Court in Rutland, Vermont, to serve 40 months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Gobin to serve a 10-year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in April 2014, the Federal Bureau of Investigation executed a warrant to search Gobin’s residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination of his seized media, the FBI found thousands of images and videos of child pornography. The FBI also found evidence that Gobin belonged to a website that catered to people who wished to trade in child pornography, and that Gobin directly traded child pornography with other offenders over the Internet.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Gobin. The prosecution of Gobin was handled by Assistant U.S. Attorney Barbara A. Masterson. Gobin was represented by Jason Sawyer.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Derry Woman Admits Guilt in Fraud Scheme Targeting Victoria’s SecretRead the Press Release
PITTSBURGH – A resident of New Derry, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Charlene D. Moff waived indictment and pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from September 2013 to March 2016, Moff fraudulently ordered merchandise from Victoria’s Secret using her or her husband’s online account. After the items were delivered, she would call customer service and falsely represent one of the following: that she did not receive the shipment of merchandise, the shipment was missing certain items, or some of the merchandise was incorrect or damaged. She would then receive a credit to her account or a re-shipment of merchandise. The amount of loss to Victoria’s Secret exceeded $30,000.
Judge Bissoon scheduled sentencing for October 26, 2017 at 10 a.m. The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Moff.
Navajo Man from Arizona Pleads Guilty to Assaulting Federally Commissioned Tribal Officer in New MexicoRead the Press Release
ALBUQUERQUE – Michael Nakai, 33, an enrolled member of the Navajo Nation who resides in Red Rock, Ariz., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Nakai was charged by criminal complaint in Oct. 2016, with assaulting a tribal police officer of the Navajo Nation Division of Public Safety who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Nakai assaulted the officer by kicking the officer in the face following a traffic stop. Nakai subsequently was indicted on Nov. 15, 2016, and was charged with assaulting a federal officer on Oct. 9, 2016, in San Juan County, N.M.
During today’s proceedings, Nakai pled guilty to the indictment. In entering the guilty plea, Nakai admitted that on Oct. 9, 2016, he assaulted a federal officer by kicking and striking the officer in the head while the officer was arresting him for driving under the influence of alcohol.
At sentencing, Nakai faces a maximum penalty of 20 years in federal prison. Nakai remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Mission Female Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, female convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Yolanda Prue, age 32, was sentenced to a 12 month split sentence, with 3 months in custody and 6 months of home confinement and treatment, 3 years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Prue was indicted by a federal grand jury on December 14, 2016. She pled guilty on April 11, 2017.
The conviction stemmed from an incident on May 3, 2016, when a Rosebud Sioux Tribe officer initiated a traffic stop of the vehicle, but the vehicle did not come to a stop. It pulled over two different times but began driving again.
Once the vehicle finally stopped, a search of the vehicle was performed and a digital scale and several syringes were found. Prue admitted the scale was hers, and admitted to using the scale for meth. She also admitted she had meth in several baggies on her person. Prue admitted she packaged the baggies as ¼ gram each and was selling them.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Prue was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS AGATON-VASQUEZ, age 25, a native of Mexico, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Eldon E. Fallon sentenced AGATON-VAZQUEZ to time served (7 months), followed by one year of supervised release, and a $100 special assessment fee. AGATON-VASQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on January 3, 2017, AGATON-VASQUEZ was found in the United States after having been previously deported from the United States on April 4, 2013.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U.S. Attorney Jon Maestri was in charge of the prosecution.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Juan Martinez-Garcia, age 27, of Mexico, was sentenced to time served (38 days in jail). Jorge Reyes-Merino, age 27, of Mexico, was also sentenced to time served (38 days in jail).
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on July 26, 2010. As part of his guilty plea, Reyes-Merino admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on November 9, 2011.
On May 30, 2017, ICE Officers arrested Martinez-Garcia and Reyes-Merino in Saratoga Springs.
Following their respective sentencings, Martinez-Garcia and Reyes-Merino were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Logan man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Keith Lee Caudill, 25, of Mallory, faces up to five years in federal prison and a $250,000 fine when he is sentenced on October 5, 2017. Caudill has also has agreed to pay restitution as part of his plea agreement.
Caudill was a Highway Contract Route Driver with the United States Postal Service who distributed and collected mail along a rural postal route between Logan and Holden. Caudill admitted that on November 7, 2016, he was found in possession of 31 pieces of stolen mail that he had illegally opened and otherwise removed from the mail. The opened mail was recovered from a cooler in the front of his vehicle. Caudill admitted to agents of the United States Postal Inspection Service that he had stolen approximately 100 pieces of mail from along his route. He typically stole greeting cards, believing the cards were more likely to contain cash or gift cards. Caudill would keep the cash, attempt to redeem the gift cards, and destroy the greeting cards.
The United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presided over the case.
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