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Friday 19 May 2017
Two Essex County, New Jersey, Men Charged for Their Roles in $500,000 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were arrested this morning and charged in connection with a scheme that allegedly caused losses of approximately $500,000 by deceiving victim banks into crediting certain customer accounts that could be fraudulently accessed by members of the conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Yaseen Salih, 19, of East Orange, New Jersey, and Chad Brown, 21, of Orange, New Jersey, are charged by complaint with one count of conspiracy to commit bank fraud. They appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court. Salih was released on $200,000 bond. Brown was detained.
According to the complaint:
From September 2015 through the present, Salih, Brown, and others conspired to fraudulently obtain money from two victim banks.
First, Salih, Brown and others obtained information pertaining to actual bank accounts belonging to customers of the two victim banks, including the customers’ bank account numbers and their personal identification numbers. In some instances, the conspirators obtained debit cards associated with the accounts or Salih and Brown personally requested access from the account owners.
Afterwards, a member of the conspiracy called a teller at the victim bank. After deceiving the teller into believing that the caller was an employee of the victim bank, the caller convinced the teller to credit funds into the above customer accounts.
Once the funds were credited into the customer accounts, members of the conspiracy used debit cards associated with the accounts to obtain the fraudulently credited funds, either by withdrawing the funds directly from ATM machines at branch locations of the victim banks, or by purchasing postal money orders.
To date, the losses associated with the conspiracy exceed approximately $500,000.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Salih: Hassen Ibn Abdellah Esq.
Brown: Perry Primavera Esq.
Toledo men charged after DEA seizes six kilograms of heroinRead the Press Release
Two Toledo men were criminally charged after DEA agents arrested them for distributing six kilograms of heroin.
Ricardo Rivera, 40, was arrested after DEA agents observed him take a black duffel bag from 1443 Western Avenue in Toledo and place it in the trunk of a vehicle. That car was stopped in North Baltimore, Ohio, and found to have six kilograms of heroin.
Rivera was charged with felonious assault in March 2017 following a shooting. The day of the drug transaction, Rivera was traveling with a security detail. One of the bodyguards wore a vest with the insignia and name “Omens,” a motorcycle gang from Detroit, according to an affidavit filed in the case.
Rivera was charged in federal court with distribution of heroin.
Andres Mendez, 25, was charged in state court for his role in the sale and transportation of the heroin.
“We will continue to aggressively prosecute those who traffic the heroin and opioids that have killed so many of our neighbors and relatives,” said Acting U.S. Attorney David A. Sierleja. “Only through enforcement, combined with education and prevention efforts, can we hope to turn the tide on this epidemic.”
“This investigation demonstrates that the disruption of heroin trafficking and putting the brakes on the current opioid epidemic is DEA’s top priority,” said DEA Special Agent in Charge Timothy J. Plancon. “The seizure of six kilograms of heroin in Toledo is significant, and not only puts a dent into heroin trafficking in the community, but also illustrates that DEA and our partners in law enforcement are working hard to slow the supply of this deadly drug into the region.”
This case is being prosecuted by Assistant U.S. Attorney Michael Freeman following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge 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.
Three charged federally in Amazon fraud schemeRead the Press Release
Alleged to have stolen and sold over $1.2 million in consumer electronics
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that three individuals were charged this week in connection with an alleged scheme to defraud online retailer Amazon of hundreds of consumer electronics items and sell them on the black market. Erin Finan, 37, and Leah Finan, 37, husband and wife from the Muncie-Anderson area, agreed to plead guilty to federal mail fraud and money laundering charges. Danijel Glumac, 28, of Indianapolis, was charged in a grand jury indictment with interstate transportation of stolen property and money laundering.
“Consumer fraud is absorbed by all of us through higher retail prices,” said Minkler. “Buying and selling black market items across state lines is against federal law and those who choose to ignore that will be held accountable.”
According to court documents, the Finans defrauded Amazon by falsely claiming that the electronics they ordered were damaged or not working, and then requesting and receiving replacements from Amazon at no charge. Amazon’s customer service policy allows, under certain circumstances, customers to receive a replacement before they return a broken item. Amazon closely monitors customers’ accounts and orders for possible fraudulent activity. The Finans allegedly went to great lengths to conceal their fraud, creating hundreds of false online identities to perpetrate the scheme. Eventually, however, Amazon and federal law enforcement caught up with them. In total, the Finans allegedly stole over $1.2 million in consumer electronics from Amazon, including GoPro digital cameras, Microsoft Xboxes, Samsung smartwatches, and Microsoft Surface tablets.
The charges further alleged that Glumac fenced the Finans’ stolen goods to an entity in New York. The Finans allegedly sold the stolen electronics out of their van to Glumac at a price substantially below their retail value. Glumac then marked them up and sold and shipped them to the New York entity, which in turn sold them to the public. Glumac also allegedly advised the Finans on how to evade detection by Amazon.
Finally, the charges alleged that Glumac laundered the proceeds from his sales of the stolen electronics through bank accounts associated with his clothing business before paying the Finans their cut. In total, Glumac allegedly received over $1.2 million from the New York entity, of which he paid approximately $725,000 to the Finans.
This case was investigated by the Internal Revenue Service, the United States Postal Inspection Service, and the Indiana State Police.
Assistant United States Attorney Nick Linder, who is prosecuting the case for the government, said that the charges carry maximum sentences of between 10 and 20 years in prison and fines of between $250,000 and $500,000.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
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Three Albuquerque Residents Charged with Operating Sex Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department announced the indictment of three residents of Albuquerque, N.M., on commercial sex trafficking offenses.
The indictment charges Cornelius Galloway, 34, Danielle Galloway, 43, and Matthew Woods, 28, with conspiracy, commercial sex trafficking and commercial sex trafficking of a minor. Cornelius Galloway and Danielle Galloway were arrested on May 17, 2017. Danielle Galloway made her initial appearance yesterday and was arraigned on the indictment this morning, entering a not guilty plea. Danielle Galloway was ordered detained pending trial during this morning’s proceedings. Cornelius Galloway made his initial appearance this morning in federal court and remains detained pending arraignment and detention hearings scheduled for May 22, 2017. Woods is in state custody on unrelated state charges; he will be transferred to federal custody for an arraignment hearing scheduled on May 30, 2017.
The four-count indictment charges the Galloways and Woods with participating in a conspiracy to engage in commercial sex trafficking by using force, threats, fraud and coercion. It also charges the three defendants with commercial sex trafficking and commercial sex trafficking of a minor. Woods also is charged with attempting to recruit a victim to engage in a commercial sex act. The Galloways and Woods allegedly committed the crimes charged in Bernalillo County, N.M., between Oct. 2016 and May 2017.
According to the indictment, the three defendants were members of a criminal sex trafficking organization allegedly led by Cornelius Galloway. The indictment alleges that Cornelius Galloway and Danielle Galloway promoted the organization’s commercial sex services by advertising on various websites between Oct. 2016 and May 2017. The indictment further alleges that the defendants forced a victim to engage in commercial sex acts from Oct. 2016 to Nov. 2016, and employed a minor victim to work as a prostitute for a two-week period in March and April 2017, for the financial benefit of the organization.
The indictment also alleges that members of the conspiracy murdered two individuals to further the objectives of the criminal sex trafficking organization. According to the indictment, two members of the conspiracy, identified as John Doe 1 and John Doe 2, murdered a victim, identified as D.Y., on Jan. 15, 2017. John Doe 1 also allegedly murdered a second victim, identified as T.S. on that same day. The victims allegedly were murdered at the direction of Cornelius Galloway because their activities were contrary to the objectives of the criminal sex trafficking organization.
If convicted of the crimes charged in the indictment, Cornelius Galloway, Danielle Galloway and Woods each face a statutory mandatory minimum penalty of 15 years and a maximum penalty of life in prison. Charges in indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Texas Man Sentenced to 353 Months in Prison for Federal Drug and Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Silvano Zaragoza-Ambriz, 31, of McAllen, Texas, was sentenced today to 353 months in prison after pleading guilty in August 2016 to armed drug trafficking and conspiracy to distribute heroin, methamphetamine, and cocaine. Co-defendant Kyle James Corbi, 32, of Milton, Florida, pled guilty to conspiracy and was sentenced in October 2016 to 180 months in prison. The sentences were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In 2014, law enforcement officers discovered 19 firearms, a grenade, and 8 kilograms of methamphetamine on the Texas/Mexico border. One of these firearms was connected with Corbi in Milton, Florida. In May 2016, agents arrested Zaragoza-Ambriz in Texas, and a search of his residence revealed approximately 45 kilograms of cocaine. Officers determined that Zaragoza-Ambriz had been providing Corbi with large quantities of heroin, methamphetamine, and cocaine, and that Corbi had paid for the illegal drugs with firearms.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Edwin F. Knight prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tampa Man Pleads Guilty in Scheme to Sell Nearly $300,000 in Stolen Federal Tax Refund ChecksRead the Press Release
Tampa, Florida– Acting United States Attorney W. Stephen Muldrow announces that Xavier Williams (48, Tampa) today pleaded guilty to receipt of stolen government property and aggravated identity theft. He faces a maximum penalty of 12 years in federal prison.
According to the plea agreement, Williams obtained a number of federal tax refund checks belonging to taxpayers who were victims of identity theft. He then sold or attempted to sell the checks to others. The checks, issued by the U.S. Department of Treasury, ranged in amounts from $4,000 to over $128,000, with an aggregate value of over $297,000.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Stockton Woman Sentenced to 5 Years in Prison for Aiding and Abetting Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jolene Davis, 41, of Stockton, was sentenced today to five years in prison for her role in the sexual exploitation of a child of whom she had custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on August 13, 2011, Davis met with co-defendant Jason S. Wymer, 45, of Citrus Heights, and permitted him to sexually exploit a child for whom she was caring. Wymer photographed that act.
Wymer pleaded guilty to this conduct and also admitted to a separate instance of sexual exploitation of a four-year-old child with co‑defendant Stormy M. Avers, 37, of Placerville. On July 29, 2016, Wymer was sentenced to 30 years in prison for sexual exploitation of minors. On June 24, 2016, Avers was sentenced to 20 years in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
State Prisoner Sentenced to 129 Months in Federal Prison for Tax Fraud ConspiracyRead the Press Release
LEXINGTON, Ky. – A prisoner in eastern Kentucky has been sentenced to 129 months after pleading
guilty to conspiring to submit false tax returns using the names of other prisoners.U.S. District Judge Danny C. Reeves sentenced William Helton, 37, of Mt. Sterling, Ky., for
conspiracy to commit mail and wire fraud, and aggravated identity theft. Judge Reeves also ordered
Helton to pay $96,522 in restitution, plus interest. Under federal law, Helton must serve at least
85 percent of his prison sentence, and upon his release, he will serve three years of supervised
release.In his plea agreement, Helton admitted that while he was a state prisoner, he and a co- conspirator
outside of prison, Jason Tyre, met and corresponded through a prison pen-pal program and developed
a conspiracy in which they and other co-conspirators submitted numerous false tax returns, using
other people’s personal information to fraudulently obtain money from tax refunds.Helton also admitted that the overall conspiracy amounted to $390,000 of false tax refund claims
over four years.Helton acknowledged that he obtained other prisoners’ personal information, without their
knowledge, such as social security numbers and provided that information in a letter to Tyre.Then at Helton’s direction, Tyre filled out tax forms using the names and personal information of
other prisoners. Tyre made false claims on the tax forms regarding items such as, filing status,
income, employment, and number of dependents, in order to maximize the refund amount.Helton further admitted that he directed Tyre to open bank accounts in Tyre’s name to hold the
money from the fraudulent tax refunds and to wire the money to other co-conspirators once he
received the tax refunds.Helton was in state prison for convictions related to burglary, theft and drugs.
Tyre is scheduled for sentencing on May 26.
Carlton Shier, IV, Acting U.S. Attorney; Tommy Coke, Inspector in Charge, Pittsburgh Division, U.S.
Postal Inspection Service, and Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service
Criminal Investigation, jointly made the announcement.The investigation was conducted by the United States Postal Inspection Service and the IRS.
Assistant U.S. Attorney Neeraj Gupta prosecuted this case on behalf of the federal government.Sex Offender Who Failed to Register Sentenced to over 6 Years in PrisonRead the Press Release
BATON ROUGE, LA –Acting United States Attorney Corey Amundson announced today that Bryant Emerson Freeman, age 40, of Grants Pass, Oregon, was sentenced by U.S. District Judge Shelly D. Dick to a total of 73 months in federal prison as a result of failing to update his registration as a sex offender and violating the terms of his supervised release.
In April 2016, FREEMAN absconded from a federal halfway house in Baton Rouge. Three months later, he was caught in Seattle, Washington. FREEMAN, a convicted rapist, was required to report to authorities every three months and update his sex offender registration. FREEMAN failed to adhere to these requirements after fleeing the halfway house, resulting in the instant prosecution and sentence. While granting the government’s request for a severe sentence, the Court noted that FREEMAN had a pattern of failing to comply with sex registration laws and risked being a recidivist.
Acting U.S. Attorney Amundson stated: “Requiring sex offenders to register is critical to protecting our community, especially our children, from those who may pose a heightened threat. Sex offenders who fail to abide by such registration requirements face severe consequences, as illustrated by today’s sentence. I greatly appreciate the commitment of the U.S. Marshal’s Service and the prosecutors in my office in pursuing these offenders.”
Acting United States Marshal Randy Breckwoldt stated: “The investigation and apprehension of sex offenders is a top priority in this District. The Marshal’s Service will continue to work tirelessly to bring to justice any sex offender who fails to register.”
This matter was prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by the United States Marshal’s Service.
Seven Venezuelan Men Arrested for Conspiracy to Possess Controlled Substances on Board a VesselRead the Press Release
St. Croix, USVI – Felix Gomez, 37; Roman Jose Aguilera Gig, 37; Jesus Garcia, 34; Rosauro Morao, 47; Manuel Rodriguez, 51; Juan Rodriguez, 25,; and Jhoan Gomez, 28, all of Venezuela, made their initial appearances today before U.S. Magistrate Judge George W. Cannon, Jr., after being charged in a complaint with conspiracy to possess controlled substance on board a vessel, and possession of controlled substances on board a vessel, Acting United States Attorney Joycelyn Hewlett announced. A detention hearing is scheduled for May 23, 2017.
According to court records, during the afternoon of May 8, 2017, a suspicious go-fast vessel was detected by a maritime patrol aircraft in international waters off Martinique. The Coast Guard out of San Juan interdicted the go-fast, detained the seven men onboard and seized multiple bales, which tested positive for marijuana. The Coast Guard transported the seven men and approximately 573 pounds of marijuana to St. Croix on Thursday, May 11, 2017.
If convicted of conspiracy to possess controlled substances and possession of controlled substances on board a vessel, each defendant faces a maximum sentence of 15 years in prison and a $250,000 fine.
The interdiction was the result of ongoing, multi-agency and international law enforcement efforts in support of Operation Unified Resolve and Operation Caribbean Guard. The case is being investigated by the U.S. Drug Enforcement Administration and the United States Coast Guard. It is being prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Acting United States Attorney Hewlett reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Seven Individuals Associated with Armed Robbery Conspiracy Sentenced to Prison Final Defendant Receives 138 Year Prison TermRead the Press Release
The last of seven individuals associated with a string of violent armed robberies in Miami-Dade County has been sentenced to over 138 years in prison.
Benjamin C. Greenberg, Acting United States Attorney for the Southern District of Florida, Pete J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), Daniel Junior, Interim Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Seven defendants were charged and convicted for their roles in a violent armed robbery conspiracy that began operating in Miami-Dade County, as early as 2006. Andrew Nelson, 24, of Miami, was the final defendant to be sentenced, after having been convicted at trial, in January of 2017, of one count of participating in a Hobbs Act robbery conspiracy, six counts of Hobbs Act robbery, and six counts of brandishing a firearm during a crime of violence (Case No. 16-CR-20119). On May 16, 2017, United States District Court Judge Donald M. Middlebrooks sentenced Nelson to 1,662 months in prison.
According to evidence presented at trial, starting in 2006, members of the conspiracy began committing armed robberies of civilians, businesses, a bank, and illegal enterprises, including narcotics traffickers in Miami-Dade County. As part of the robbery conspiracy, Nelson and his co-conspirators would shoot at victims and sell the narcotics they stole from other drug dealers. After their arrest, members of the conspiracy used jailhouse telephone calls to communicate with their conspirators about planning crimes, collecting debts, and attempting to obstruct justice by planning to attack state prosecution witnesses.
Six co-conspirators were sentenced to varying prison terms following their guilty pleas to associated criminal offenses, including unlawful firearms possession. Steven Stafford, 18, of Miami, was sentenced to 20 years; Anthony Stuckey, 19, of Miami, was sentenced to 32 years; Jarvis Robinson, 25, of Miami, was sentenced to 32 years; Leon Pearson, 27, of Miami, was sentenced to 36 months, and Terril Kinchen, 25, of Miami, was sentenced to 35 years, in prison (Case No. 16-CR-20119). Torrence Lawton, 19, of Miami, was charged in a separate indictment (Case No. 15-CR-20783) and plead guilty to using a firearm in furtherance of two armed robberies, which he committed with members of the conspiracy. Lawton was sentenced to 35 years in prison.
Mr. Greenberg commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office, MDPD’s Robbery Bureau, MDCR’s Security Threat Group Unit, and the MPD Robbery Unit. These cases were prosecuted by Assistant United States Attorneys Ignacio J. Vazquez, Jr., Brian Dobbins and Cary Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sentencings for May 12, 2017Read the Press Release
Esteban Cova-Rodriguez, 45, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Cova-Rodriguez was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Moises Daniel Machuca-Salmoran, 26, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Machuca-Salmoran was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Luis Rosales-Nicolas, 47, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Rosales-Nicolas was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edgardo Gaona-Labra, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 12, 2017, for illegal re-entry of a previously deported alien into the United States. Gaona-Labra was arrested in Lander, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sacramento Man Sentenced to 10 Years in Prison for Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to 10 years in prison for sex trafficking a minor, United States Attorney Phillip A. Talbert announced.
According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.
This case was the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant U.S. Attorney Michele Beckwith is prosecuted case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rapid City Man Sentenced for Illegally Possessing Body ArmorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Possession of Body Armor by a Violent Felon was sentenced on May 18, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Eric William Ladeaux, age 30, was sentenced to 20 months of imprisonment, followed by 1 year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ladeaux was charged on October 20, 2015, and pleaded guilty on January 6, 2017.
The conviction stems from Ladeaux leading law enforcement on a high-speed chase and, after his arrest, was found to be wearing a ballistic vest. As a previously convicted felon, it is illegal for Ladeaux to possess body armor.
This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Ladeaux was immediately turned over to the custody of the U.S. Marshals Service.
Ramapo Town Supervisor, Christopher St. Lawrence, Found Guilty After Trial of Conspiracy, Securities Fraud, and Wirefraud in Municipal Bond Securities Fraud CaseRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found former Ramapo Town Supervisor Christopher St. Lawrence guilty of 20 counts of conspiracy, securities fraud, and wire fraud in connection with municipal bonds issued by the Town of Ramapo (the “Town”) and the Ramapo Local Development Corporation (“RLDC”). St. Lawrence was acquitted of one count of securities fraud and one count of wire fraud. Today's verdict, which came after a four-week trial in federal court in White Plains, marks the first conviction for securities fraud in connection with municipal bonds.
Acting U.S. Attorney Kim said: “As the jury found today after trial, Christopher St. Lawrence lied repeatedly to the investing public about the state of Ramapo’s finances. The integrity of the $3.7 trillion municipal bond market is of critical importance to both investors and municipalities that rely on this market. The verdict today in a case of public corruption meets securities fraud, stands as a victory for both honest government and fair financial markets.”
According to the allegations contained in the Indictment and the evidence presented in court during the trial:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town's financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town's guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and St. Lawrence’s public statements that no public money would be used to pay for the stadium.
The Indictment charged that St. Lawrence lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money. St. Lawrence lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the fund’s balance. The fund balance is a cushion that can be spent during difficult financial times. The size of the fund balance relative to the amount of the fund’s revenue and trends in a town’s General Fund balance over time are the primary indicators of the town’s financial health.
According to the Indictment and the evidence, St. Lawrence lied to the RLDC’s bond rating service in January 2013 when he told them in a telephone call that the 2012 fund balance would remain unchanged from the 2011 balance. Immediately after that call ended, St. Lawrence told Town employees “to do [an upcoming] refinancing of the short term debt as fast as possible because . . . we’re going to have to all be magicians to get to some of those numbers.”
When the RLDC issued $25 million in bonds to build the stadium building itself in 2011, St. Lawrence inflated the size of the Town’s General Fund by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have negative in that year.
In addition, St. Lawrence inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. It first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land turned out to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books - and reduce the size of the General Fund balance by $3.08 million, thereby pushing it into negative territory - St. Lawrence claimed the receivable had to do with the RLDC’s purchase of another property from the Town, which had already taken place. To keep it on the books, St. Lawrence then caused the Town Attorney to tell the Town’s auditors over a period of years that the receivable would be paid back within a year, which was required if the receivable was going to stay in the General Fund. Without this fake receivable alone, the Town’s General Fund balance would have been negative for years.
In May 2013, the FBI searched Town Hall in connection with this investigation. Less than 10 days later, St. Lawrence inflated another receivable in the General Fund - this one for money from the Federal Emergency Management Agency (“FEMA”) to reimburse the Town for expenses from Hurricanes Irene and Sandy. St. Lawrence claimed that the Town was going to receive $3.145 million from FEMA when the Town hadn’t even submitted those claims to FEMA yet. Without St. Lawrence’s inflation of this receivable alone, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
Finally, the Indictment alleged and the evidence showed that St. Lawrence told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments from money it borrowed from the bank or money it got from the Town.
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ST. LAWRENCE, 65, of Wesley Hills, New York, was found guilty of 11 counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; eight counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FBI and the Rockland County District Attorney's Office. Mr. Kim also thanked the Securities & Exchange Commission for its substantial assistance in the investigation and trial.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon, Stephen Ritchin and Daniel Loss are in charge of the prosecution.
Oglala Tribal Member Pleads Guilty to Involuntary ManslaughterRead the Press Release
POCATELLO – Ruben Wounded Head, III, 19, of Chubbuck, Idaho, pleaded guilty today to two counts of involuntary manslaughter resulting from a drunk driving crash, Acting U.S. Attorney Rafael Gonzalez, announced. Wounded Head was indicted in March 2016 by a federal grand jury in Pocatello.
According to the plea agreement, on November 13, 2015, Wounded Head drove with friends to buy alcohol, and his friends left the store with two bottles of Bacardi rum and went to an area on the Fort Hall reservation known as Ferry Butte. There, Wounded Head drank one bottle of rum. Wounded Head then drove his friends back to a residence on the reservation and then proceeded to drive home. At approximately 2:50 a.m., at the intersection of Hawthorne Road and Cemetery Road, Wounded Head’s 2005 Chevrolet Avalanche crossed the centerline and crashed head-on into a Chevrolet Tahoe, killing both occupants of the Tahoe. Wounded Head’s Avalanche was traveling between 59 – 61 miles per hour at the time of crash. The posted speed limit in the area is 45 miles per hour.
The charge of involuntary manslaughter is punishable by up to eight years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 2, 2017, before Chief U.S. District B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Tribal Police.
North Carolina Sex Offender Pleads Guilty to Failing to Register in New YorkRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Curtis D. Solomon, 33, recently of Rochester, NY, pleaded guilty to failing to register as a sex offender, before Chief U.S. District Judge Frank P. Geraci. The charge carries maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Solomon was convicted in 2005 in North Carolina of soliciting a sex offense in the first degree. As a result, the defendant was required by the Sex Offender Registration and Notification Act to register and to update his registration if he moved to another state. Following his release from prison in North Carolina, Solomon moved to Rochester sometime in 2016 but failed to register in New York State. The defendant also failed to notify the authorities in North Carolina of his move. Solomon lived in the Rochester community until March 6, 2017, when he was arrested.
The plea is the result of an investigation by the United States Marshals Service, under the direction of United States Marshal Charles Salina.
Sentencing is scheduled for August 15, 2017, at 9:30 a.m., before Judge Geraci.
New Haven Man Charged with Distributing Heroin and Fentanyl Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DEVELL CONLEY, 31, of New Haven, was arrested yesterday and charged in a criminal complaint with distributing heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
CONLEY appeared yesterday before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on May 5, 2017, the East Haven Police Department responded to a report of an untimely death of a 27-year-old female at a residence in East Haven. At the scene, officers seized drug and non-drug evidence, including three small bags that contained a substance that field-tested positive for the presence of fentanyl. Investigators also seized the victim’s cellphone. The investigation revealed that CONLEY had provided drugs to the victim shortly before her death.
The complaint charges CONLEY with possession with intent to distribute, and distribution of heroin and fentanyl, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the East Haven, New Haven and West Haven Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.
Nationwide Identity Theft and IRS Tax Fraud Scheme Results in Federal Prison SentencesRead the Press Release
MEDFORD, Ore. – On Thursday, May 18, 2017, United States District Court Judge Ann Aiken sentenced Oluwatobi Reuben Dehinbo, 32, and Oluwaseunara Temitope Osanyinbi, 36, both from Nigeria and the Atlanta area, to federal prison for conspiracy to commit wire and mail fraud, aggravated identity theft, wire fraud and mail fraud. Dehinbo was sentenced to 108 months and Osanyinbi was sentenced to 72 months. Both defendants are subject to a two-year mandatory minimum for possessing or using a victim’s identity to commit a fraud. Dehinbo and Osanyinbi were ordered to pay $2.7 million and $876,161 in restitution respectively. Having been convicted of aggravated felonies, both defendants will be subject to deportation upon completion of their prison sentences.
The Nature of the Conspiracy
According to court documents, in May 2013, a Medford victim notified the Internal Revenue Service (IRS) that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth. The federal refund was deposited into an account via a prepaid debit card in a suburb of Chicago while the state refund was directed to a bank account in Texas.
An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendants and other co-conspirators to further their fraudulent scheme. At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. Agents learned that the Chicago co-conspirator was connected to an identity-theft scheme being run out of Lagos, Nigeria since at least 2011. In Maryland and Georgia, the IRS seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous Greendot prepaid debt cards containing over $12,000 in fraudulent tax refunds. Agents arrested Dehinbo and Osanyinbi while conducting searches in Georgia.
The IRS investigation revealed that the co-conspirators possessed stolen PII from more than 250,000 victims. This included identities from an Oregon company’s database stolen and sold to the co-conspirators by sources in Vietnam. For tax years 2012, 2013, and 2014, the co-conspirators used the information to file nearly 5,500 false federal tax returns seeking over $48 million in fraudulent federal refunds. Actual losses exceeded $12 million.
In carrying out their scheme, the co-conspirators used the stolen PII to acquire electronic filing PINs from the IRS in the taxpayers’ names and use them to bypass IRS authentication procedures. They also obtained and used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits. Those refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million were sent to Nigeria.
In 2014, the co-conspirators gained access to the IRS "Get Transcript" system where they obtained sensitive taxpayer information and used it to file additional fraudulent returns. In 2015, as a result of these and other security breaches, the IRS discontinued the "Get Transcript" program nationwide.
Osanyinbi’s Role in the Conspiracy
Osanyinbi came to the United States in 2013 on a student visa. Within months, he filed fraudulent tax returns and committed marriage fraud by paying a woman $4,500 to marry him so that he could obtain lawful permanent resident status. He possessed over 35,000 stolen identities in his email and instant messenger accounts, including over 18,500 victims from the database stolen in Oregon. 5,500 of these identities were Oregon residents. Osanyinbi also had more than 190 IRS E-File PINs and 89 routing and account numbers from accounts listed on the fraudulent returns. He was linked to the filing of 251 fraudulent federal tax returns and the wiring of $430,000 to Nigeria. IRS agents seized over $11,000 in money orders from Osanyinbi’s home in Georgia. Before coming to the United States, Osanyinbi was involved in soliciting stolen PII, obtaining and passing stolen credit card information that included victims’ names, addresses and card numbers from the United States and engaging in online scams.
Dehinbo’s Role in the Conspiracy
Dehinbo came to the United States in 2012 on a visa. Beginning in 2013, he began filing fraudulent tax returns and continued until his arrest in May 2015. In addition, he instructed others how to obtain unique E-File PINs; access taxpayer information via the Internet; obtain debit cards in victims’ names and use them to collect fraudulent tax refunds; check the status of an IRS refund; transfer fraudulent refunds off of debit cards and dispose of the funds through wire services. Dehinbo was linked to 419 separate wire transfers totaling $398,297. He possessed over 46,000 stolen identities in his email and instant messenger accounts. These identities included 13,725 from the database stolen in Oregon, 6,270 of whom were Oregon residents. He also possessed more than 3,350 unique IRS E-File PINs and over 600 debit cards. Dehinbo was ultimately linked to the filing of 1,344 fraudulent federal tax returns. Before coming to the United States, he was also involved in locating hackers to obtain stolen credit card information, used and provided credit card information and victim PII to others and engaged in online romance scams posing as a Swedish woman working for UNICEF in Nigeria.
This case results from a joint investigation by IRS-Criminal Investigation (IRS CI), the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration (TIGTA); the U.S. Postal Inspection Service (USPIS); the U.S. Department of State; the U.S. Department of Homeland Security, Homeland Security Investigations (DHS HSI); U.S. Citizenship and Immigration Services (USCIS) and the Atlanta Police Department. The case is being prosecuted by Byron Chatfield and Gavin Bruce, Assistant United States Attorneys for the District of Oregon.
Mount Vernon Man Sentenced to 15 Years in Prison for Possession and Distribution of Images of Child RapeRead the Press Release
A 32-year-old Mount Vernon, Washington man was sentenced today in U.S. District Court in Seattle to 15 years in prison for possession and distribution of child pornography, announced U.S. Attorney Annette L. Hayes. ERIC BONGIORNI was arrested in March 2016, when a court authorized search warrant revealed he had numerous images and videos of child sexual abuse on his electronic devices. BONGIORNI pleaded guilty in February 2017. At sentencing, U.S. District Judge Robert S. Lasnik also imposed a lifetime period of supervised release.
According to records filed in the case, an agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was working online in an undercover capacity when he downloaded images of child pornography being shared over a peer-to-peer file sharing network. The investigation linked the images to an internet protocol address (IP address) belonging to BONGIORNI. The law enforcement investigation revealed BONGIORNI is a registered sex offender, with a 2009 conviction in Skagit County Superior Court for three counts of child molestation.
In his plea agreement, BONGIORNI admits he collected child pornography since 2003. One device seized at his home contained 436 images and 267 videos of child pornography.
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.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorney Matthew Hampton.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
WASHINGTON – A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015 as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Mother Sentenced to 26 Months in Prison for Taking Child from Illinois to Canada in International Parental Kidnapping CaseRead the Press Release
A Canadian woman was sentenced to serve 26 months in prison following her December conviction for international parental kidnapping, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Patrick D. Hansen of the Central District of Illinois.
Sarah M. Nixon, 48, of Montreal, Canada, was sentenced before U.S. District Judge Colin S. Bruce of the Central District of Illinois. On Dec. 21, 2016, a federal jury found Nixon guilty of one count of international parental kidnapping for taking her minor child from the United States to Canada in July 2015, with the intent to obstruct the lawful exercise of the father’s rights.
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night. When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert. Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada. Authorities then returned the child to the father. Nixon was arrested in New York on Sept. 20, 2015, as she attempted to return to the United States.
Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Criminal Division’s Office of International Affairs.
Mission Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 16, 2017, by U.S. District Judge Roberto A. Lange.
Justin H. Black Moon, age 27, was sentenced to 18 months in prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Moon was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 21, 2017.
The conviction stems from an incident that occurred on October 15, 2016, wherein Black Moon was confronted by a man at a public event in Rosebud, South Dakota. Black Moon assaulted and repeatedly struck the man, causing nasal and orbital bone fractures, which required hospitalization.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Black Moon was immediately turned over to the custody of the U.S. Marshals Service.
Medical Resident Pleads Guilty to Fraudulently Obtaining Prescription Opioid Pain MedicationsRead the Press Release
St. Louis, MO – Kyle Betts pled guilty today to fraudulently obtaining pain relief drugs, including Percocet® and Norco®, by writing over seventy false prescriptions.
According to the plea agreement, during November 2014 through February 2016, Betts was a medical resident associated with a medical school that was located in the City of St. Louis, Missouri. Betts wrote the opioid prescriptions using the names of six separate persons, although he did not have a physician- patient relationship with any of them. Betts used the names of his family members for some of the prescriptions, and the names of persons with whom he had romantic relationships for other prescriptions. For some of these prescriptions, Betts went to the pharmacy and personally presented prescriptions for drugs using other peoples’ names. The Medicare and Illinois Medicaid programs funded some of the drugs obtained under these false prescriptions.
Betts pled guilty to one felony count of obtaining prescription drugs that contained controlled substances through misrepresentation, fraud, forgery, deception, and subterfuge before United States District Judge Catherine Perry. Sentencing has been set for August 17, 2017.
This charge carries a maximum penalty of four years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration, with assistance from the Office of Inspector General for the U.S. Department of Health and Human Services.
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Mason City Man Pleads Guilty to Possession of Child PornographyRead the Press Release
A man who possessed child pornography pled guilty today in federal court in Cedar Rapids.
Jeffery Landheer, age 46, from Mason City, Iowa, was convicted of one count of possession of child pornography. At the plea hearing, Landheer admitted that, between 2009 and 2016, he knowingly possessed child pornography on a computer hard drive.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Landheer was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Landheer faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Mason City Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 17-3011.
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Married Couple Plead Guilty to Participating in Fraud that Targeted Elderly Victims Throughout the United StatesRead the Press Release
Two more people, a married couple, who participated in a scheme to defraud victims across the United States have pled guilty in federal court in Cedar Rapids.
Michael Marcov, age 26, and Stephanie Marcov, age 27, from Hazel Green, Wisconsin, pled guilty today and were each convicted of one count of wire fraud.
At their plea hearings and in written plea agreements, the Marcovs admitted they participated in a scheme to defraud people throughout the United States and that the fraud was primarily targeted towards the elderly. They admitted that while they never made calls to victims, other individuals involved in the scheme called victims on the phone and told these victims that a relative was in jail. The caller would then ask the victims to wire money via Western Union or Money Gram to get the relative released. They further admitted that the money was being wired to various participants in the fraud who would pick up the wire transfers. Both Marcovs admitted that they were participants in and around Dubuque who received wire transfers from the victims and also sent the proceeds of the fraud via wire transfer to other participants of the scheme often located in the Dominican Republic.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Michael Marcov remains in custody of the United States Marshal pending sentencing. Stephanie Marcov remains remains free on bond previously set. Each faces a possible maximum sentence of 20 years’ imprisonment, a fine, and 3 years of supervised release following any imprisonment.
Two other people have previously pled guilty to their role in the scheme. On March 2, 2017, Shawn Vaassen pled guilty and admitted that he too was picking up wire transfers sent to the Dubuque area by victims of the scheme. At the same plea hearing, Vaassen also pled guilty to unlawfully possessing a sawed off shotgun. On May 9, 2017, Carlos Rodriguez pled guilty and admitted that he was also picking up wire transfers sent to the Dubuque area by victims.
The cases are being prosecuted by Assistant United States Attorneys Timothy Vavricek and Anthony Morfitt and were investigated by Homeland Security Investigations and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-CR-1001 and 17-CR-1004.
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Law Enforcement's Diversity and Dedication Protect Us AllRead the Press Release
Police officers in the Southern District of Ohio are diverse in every way but one: they put their lives on the line for us every day on the job. I am grateful for our officers’ diversity—and even more grateful for their one commonality.
The officers I’ve met and worked with in the Southern District of Ohio are diverse in almost every respect. They are men and women, many races, and many religions. Different officers hold different political viewpoints. They have different body types. Officers come from all kinds of different places. Some are young, and others are older. They have different kinds of education and experience. Almost any stereotype about police is bound to be wrong, or at least incomplete, in the face of this diversity.
Just as the police officers in the Southern District of Ohio are themselves diverse, so too are their agencies. There are federal, state, and local law enforcement agencies here. The geographic spaces for which different agencies are responsible vary widely in size, not to mention population, terrain, and demography. Some of the heads of these agencies are appointed; others are elected. Departments in our biggest cities may have a thousand or two thousand officers and civilian employees. The police departments in other of our municipalities might consist of a chief and one or two officers, perhaps part-time. So the police of the Southern District of Ohio work for diverse law enforcement agencies too.
Increasingly, moreover, yet a third vector of diversity for our police officers is in the kinds of duties we expect them to perform. The days when police officers could concern themselves only with patrolling the streets and ferreting out crime, if they ever existed, are long gone. Police work today requires officers to engage proactively in preventative social work. Law enforcement officers are on the front lines of engaging with populations suffering from mental health conditions. And officers must face and respond to the daily health and safety problems posed by addiction, including especially the dangers that addicted people pose to themselves.
But there is one thing that all police have in common: they put their own lives on the line to serve and protect our communities. That is the one thing that unites all police officers, regardless of their diversity from one another in so many respects. It is inherent in being a police officer.
Just last week, Kirkersville Police Chief Steven DiSario made the ultimate sacrifice in the performance of his duty. Responding to a call of an armed man outside a nursing home on Main Street, Chief DiSario engaged the gunman, who shot and killed him. The gunman then killed two other people before turning the weapon on himself.
Also last week, to our immediate north, East Liverpool Police Officer Chris Green accidentally touched fentanyl and overdosed. Responding to a traffic stop, he searched the car of two men arrested for drug trafficking, and in the course of the search, some white powder got on his shirt. When he later brushed it off, he passed out; four doses of naloxone were needed to revive him. The white powder turned out to be fentanyl, the synthetic opioid that is one 50–100 times stronger than heroin and that is ravaging our state.
Cincinnati Police Officer Kenneth Grubbs and Columbus Police Officer Patrick Shrodes were shot in the line of duty earlier this year. Fortunately, they are recovering from their injuries.
These four officers were and are as different from each as could be in so many respects. But they have one crucial thing in common: each put his life on the line—and, in the case Kirkersville Police Chief DiSario, tragically gave it—in the performance of his duty.
I thank all police officers for their dedication and honorable service.
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Justice Department Announces the National Blue Alert NetworkRead the Press Release
The Justice Department, along with the Federal Communications Commission (FCC) and Department of Homeland Security (DHS), today announced the nationwide rollout of the National Blue Alert Network, including newly developed deliverables and federal interagency cooperation to enhance the safety and support of America’s law enforcement officers. Under implementation by the Office of Community Oriented Policing Services (COPS Office), the National Blue Alert Network promotes rapid dissemination of information to law enforcement, the media and the public about violent offenders who have killed, seriously injured or pose an imminent threat to law enforcement, or when an officer is missing in connection with official duties.
Named in honor of two fallen New York City Police Department (NYPD) officers who were ambushed in December 2014, the Rafael Ramos and Wenjian Liu National Blue Alert Act was signed into law in May 2015. The COPS Office was selected to implement the Act in September 2016 and has partnered with other federal agencies, including the FCC and the Federal Emergency Management Agency (FEMA), to establish enhanced communications systems, guidelines and resources.
“This network provides the means of quickly identifying, pursuing and capturing violent offenders who have hurt, killed or pose an imminent danger to law enforcement,” said Attorney General Jeff Sessions. “This National Police Week, we are proud to show our support for our nation’s brave police officers, and to work with our federal partners to keep them safe.”
“The men and women of law enforcement put their lives on the line to protect and serve the public,” said Acting Associate Attorney General Jesse Panuccio. “The Department of Justice is committed to supporting law enforcement, and the National Blue Alert Network will provide this country with the necessary framework for rapid response to help save lives and apprehend criminals who would attack those who bravely protect public safety.”
Blue Alerts are operationally similar to AMBER Alerts and can be broadcast on television, radio, and sent to cellphones and other wireless devices. Like AMBER Alerts, which are designed to quickly provide information about missing children to the public, Blue Alerts provide details about possible assailants, including physical descriptions, vehicle information and other identifying characteristics.
At present, there are 27 states with Blue Alert plans; however, this coordinated framework will help facilitate and streamline the adoption of new Blue Alert plans throughout the nation and help integrate existing plans. To learn more about the National Blue Alert Network, visit https://cops.usdoj.gov/bluealert.
The COPS Office is a federal agency responsible for advancing community policing nationwide and has a long history of supporting officer safety and wellness. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Judge Sentences Ohio Man to Prison for Running Cocaine from Texas to PennsylvaniaRead the Press Release
ERIE, Pa. - A former resident of Akron, Ohio, has been sentenced in federal court to 48 months in jail on his conviction of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Oscar Mata Garcia, 28.
According to information presented to the court, from June 2013 through February 2015, Mata Garcia engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The Court was advised that Mata Garcia’s specific role in the conspiracy was to assist in driving vehicles to the Houston, Texas area to pick up loads of cocaine and then to transport the cocaine to Erie, Pennsylvania and elsewhere, with the cocaine concealed in hidden compartments. According to information provided to the Court, on November 1, 2014, Mata Garcia was in one of the load vehicles with another co-conspirator when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. The Court was advised that Mata Garcia and his co-conspirator had just traveled to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie, Pennsylvania and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than 5 kilograms of cocaine.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police for the investigation leading to the successful prosecution of Garcia.
Itasca County Christmas Tree Thief SentencedRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of JOSEPH LEON EDMINSTER, 70, for stealing thousands of black spruce tree tops from the Chippewa National Forest. EDMINSTER, who pleaded guilty on January 13, 2017, to one count of theft of government property, was sentenced today before U.S. District Judge Wilhelmina M. Wright in St. Paul, Minn.
“People need to understand that taking plants or animals from federal lands is a serious crime punishable by substantial fines and even time in federal prison,” Assistant U.S. Attorney Laura Provinzino notes. “Mr. Edminster took responsibility for his actions. Had he not, his punishment could have been even more severe. But make no mistake, those who steal from our public lands for personal profit will be held accountable as today’s sentence shows.”
“The successful outcome of this case is the result of federal agencies working together to protect the resources of our national forests,” said Mary King, special agent in charge for the U.S. Forest Service Eastern Region. “The penalties reflect the seriousness of the crimes committed against our nation’s natural resources, and we hope they will act as a deterrent in the future. Our goal is to dissuade illegal activities from taking place in our forests and serve notice to everyone that Forest Service law enforcement officers are ever vigilant in the service of conservation and public safety.”
According to the defendant’s guilty plea and documents filed in court, between October 2008 and October 2014, EDMINSTER illegally cut and stole more than 12,000 black spruce tree tops from the Chippewa National Forest. After stealing the tree tops, EDMINSTER sold them to wholesalers and retailers for use as Christmas decorations for approximately $1.50 each. Retailers would then sell the tops to various retail outlets in Minnesota, Iowa and Illinois for up to $6 each. Since 2008, EDMINSTER stole more than $24,000 worth of spruce tops from federal land.
Black spruce is a North American pine species. It is widespread across Canada and the northern United States, including the Great Lakes region. Black Spruce is found in northern and northeastern parts of Minnesota, extending as far south as northern Anoka County.
The popularity of black spruce tops and other forest products that are used in the seasonal holiday decorative market has surged over the last 20 years. The spruce tops are sold at landscape retailers and some grocery and home improvement stores nationwide.
The cutting or otherwise damaging of any timber, tree or other forest product, to include black spruce is prohibited on National Forest land except as authorized by a special use authorization, timber sale, contract or other federal law or regulation.
This case is the result of an investigation conducted by the U.S. Forest Service’s Law Enforcement and Investigations division.
This case was prosecuted by Assistant United States Attorney Laura Provinzino.
Defendant Information:
JOSEPH LEON EDMINSTER, 70
Grand Rapids, Minn.
Convicted:
- Theft of government property, 1 count
Sentenced:
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Three years’ probation
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$ 24,199.50 in restitution paid to the U.S. Forest Service
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200 hours community service
Isleta Pueblo Man Pleads Guilty to Assaulting Indian Woman and a Federal OfficerRead the Press Release
ALBUQUERQUE – Jonathan Abeita, 23, an enrolled member of the Isleta Pueblo who resides in Albuquerque, N.M., pled guilty today in federal court to assault charges, including an assault on a federal officer charge. The plea agreement recommends that Abeita be sentenced to 17 months of imprisonment followed by a term of supervised release to be determined by the court.
Abeita was arrested on March 8, 2017, on an indictment charging him with assault resulting in serious bodily injury and assault on a federal officer. According to the indictment, Abeita committed the crimes on Aug. 13, 2016, on Isleta Pueblo in Valencia County, N.M.
During today’s proceedings, Abeita pled guilty to the indictment. In his plea agreement, Abeita admitted that on Aug. 13, 2016, he assaulted one victim, an Indian woman, by threatening her and punching her, causing her bottom teeth to become loose. Abeita also admitted that when tribal police officers responded to a call from the victim, he assaulted a tribal police officer who was commissioned as a Special Federal Officer by the BIA with a hatchet. Abeita remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney Lucy B. Solimon as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on May 15, 2017 and entering pleas of Not Guilty were:
- KRISTA LEAH ANDERSON, a 27-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charge contained in the indictment, ANDERSON faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-48
- CATHERINE MABEL BROCK, a 41-year-old transient, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, BROCK faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 17-52
- STEVEN NEIL HOPPER, a 29-year-old resident of Laurel, appeared on charges of felon in possession of firearms and ammunition. If convicted of the charge contained in the indictment, HOPPER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-44
- CURTIS WAYNE OLSON, a 46-year-old resident of Billings, appeared on charges of possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charge contained in the indictment, OLSON faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-48
Appearing before U.S. Magistrate Johnston in Great Falls on May 15, 2017 and entering pleas of Not Guilty were:
- GREGORY CANTRELL AZURE, a 35-year-old resident of Wolf Point, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, AZURE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-28
- NICHOLAS DANIEL BURSHIA, a 18-year-old resident of Fort Kipp, appeared on charges of aggravated sexual abuse, and abusive sexual contact. If convicted of the most serious charge contained in the indictment, BURSHIA faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-29
- VINCENT PAUL FUREY, a 41-year-old resident of Idaho Falls, Idaho, appeared on charges of interstate communication of a threat to injure, interstate communication with intent to extort, and interstate stalking. If convicted of the most serious charges contained in the indictment, FUREY faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-07
Appearing before U.S. Magistrate Johnston in Great Falls on May 11, 2017 and entering pleas of Not Guilty were:
- PAUL BRIAN HARWOOD, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury, and domestic abuse by a habitual offender. If convicted of the most serious charge contained in the indictment, HARWOOD faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-30
- ROBERT DAVID LINN, JR., a 52-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, LINN faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by Homeland Security Investigations, Great Falls Police Department, and Russell Country Drug Task Force. PACER Case Reference. 17-31
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Husband and Wife Indicted for Ponzi Scheme Relating to Hedge Fund Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – The owners and operators of a purported hedge fund were indicted by a federal grand jury yesterday for allegedly defrauding approximately 20 investors by making extraordinary guarantees about investment returns and then using the money for extravagant purchases or to pay off other victims, Acting U.S. Attorney William E. Fitzpatrick announced.
Alcibiades Cifuentes, 34, and his wife, Jennifer Wee Cifuentes, 36, both of West New York, New Jersey, are charged with four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of stealing funds intended for investment in commodities. The arraignment is pending.
According to the indictment:
Alicbiades and Jennifer Wee Cifuentes allegedly engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. They allegedly defrauded approximately 20 victims of approximately $500,000.
Each count of wire fraud and wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The count of commodities theft carries a maximum potential penalty of 10 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited inspectors of the U.S. Postal Inspection Services under the direction of Inspector in Charge James V. Buthorn, and criminal investigators with the U.S. Attorney’s Office, for the investigation. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Christopher Porrino and Bureau Chief Christopher W. Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director James M. McDonald, for their respective roles in the investigation.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Economic Crimes Unit.
Defense counsel:
Alcibiades Cifuentes: Joseph Rotella Esq.
Jennifer Wee Cifuentes: Aidan O'Connor Esq.Hotevilla Man Sentenced to 90 Months for Assault with a Dangerous WeaponRead the Press Release
PHOENIX– This week, Melvin C. Yazzie, 40, of Hotevilla, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 90 month of imprisonment, to be followed by three years of supervised release. Yazzie had previously pleaded guilty to assault with a dangerous weapon.
On Sept. 8, 2015, Yazzie engaged in a physical fight with the victim near Ft. Defiance, Ariz. During the fight, Yazzie stabbed the victim with a knife eighteen times. The victim survived and was hospitalized for numerous days. The victim and Yazzie are both enrolled members of the Navajo Nation.
The investigation in this case was conducted by Navajo Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Kiyoko Patterson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08022-PCT-DLR
RELEASE NUMBER: 2017-045_YAZZIE
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Honduran National Charged with Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS ALBERTO PINEDA-CANTOR, age 40, a citizen of Honduras, was charged today in a one-count Bill of Information with illegal reentry of a removed alien, in violation of Title 8 U.S.C. Section 1326(a).
According to the Bill of information, PINEDA-CANTOR reentered the United States on or about December 31, 2016 after having been previously removed therefrom on or about December 26, 2007.
If convicted, PINEDA-CANTOR faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year of supervised release after imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Irene González is in charge of the prosecution.
Grants Pass Gun Dealer Sentenced to Two Years in Federal Prison for Illegal Gun SalesRead the Press Release
MEDFORD, Ore. – On May 18, 2017, United States District Court Judge Ann Aiken sentenced Wilson Lee Clow, Jr., 68, of Grants Pass, Oregon, to two years in federal prison for illegal gun sales. Upon his release from prison, Clow will be on supervised release for three years. A federal jury previously found Clow guilty on three counts of selling a firearm to a felon and two counts of making false statements during firearms sales during a three-day trial ending June 29, 2016.
According to court documents, Clow was a Federal Firearms Licensee (FFL) who owned and operated a Grants Pass gun shop called 2nd Amendment Guns. In 2012, he sold high-caliber handguns to a known felon and falsified the paperwork related to the transactions. During these sales, Clow advised the felon that if law enforcement caught him with one of the firearms, the felon should tell the officers he purchased it at a garage sale. Clow also sold firearms from his private collection to avoid federally required paperwork and maintained a list of firearms for other felons who might be interested in purchasing them.
"Federally licensed firearms dealers are expected to be a first line of defense in preventing guns from reaching the hands of criminals," said Billy J. Williams, United States Attorney for the District of Oregon. "This sentence sends a message that gun dealers who violate the law and fail to uphold their duties to the community will be arrested, prosecuted and held accountable for their actions."
"The illicit trafficking of firearms remains ATF's highest national priority," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "Mr. Clow's willingness to operate outside the law, despite being a duly-licensed Federal Firearms Licensee, directly put his fellow Americans at risk."
The ATF Seattle Field Division’s area of responsibility includes the District of Oregon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Nathan J. Lichvarcik and Amy Potter, Assistant United States Attorneys for the District of Oregon.
Four-Time Felon and Drug Dealer in Tok Sentenced for Possessing Arsenal of 32 FirearmsRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a four-time convicted felon was sentenced to 64 months in federal prison for illegally possessing 32 firearms, some of which were stolen, and possessed in connection to drug distribution in Tok, Alaska.
Floyd Julius Stuck, 49, of Tok, Alaska, was sentenced today by Senior U.S. District Judge Ralph R. Beistline, to 64 months, three years of supervised release, and 80 hours of community service. On March 3, 2017, Stuck pled guilty in federal court for being a felon in possession of firearms, and agreed to forfeit all rights to firearms and ammunition named in the forfeiture allegation.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, the Alaska State Troopers (AST) obtained a search warrant on Feb. 2, 2016, for Stuck’s property in Tok after numerous reports of drug trafficking and other criminal activity. AST found and seized approximately 32 firearms (three of which proved to be stolen), ammunition, as well as numerous additional items of stolen property at Stuck’s Tok residence.
Reported to be the “biggest drug pusher” or dealer in Tok, evidence that Stuck was trafficking methamphetamine, heroin, prescription opiates, and marijuana was also seized from his home, along with evidence that Stuck was selling the drug paraphernalia needed to use those drugs. The investigation further revealed that Stuck accepted stolen firearms and other stolen property as payment for the drugs he was selling. In addition to Stuck’s federal firearms charge, he is also facing pending state drug charges arising from the same search warrant.
At sentencing, Judge Beistline noted that Stuck had “come to Tok to avoid the law” and “set up [a] criminal lifestyle” in that small Interior community. Judge Beistline underscored that it is important “to get the word out” that criminal conduct like Stuck’s will not be tolerated.
Acting U.S. Attorney Schroder commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) who conducted the investigation, as well as AST for their substantial assistance, leading to the successful prosecution of this case.
Four D.C. Men Indicted for String of Armed RobberiesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury has returned an indictment charging four Washington, D.C. residents for their alleged roles in 19 separate armed robberies in the Washington, D.C., metro area.
According to allegations in the indictment, from Nov. 1, 2016 to April 12, Desmar Rashad Gayles, Andrew Bernard Duncan, Anton Durrell Harris, and Lamont Kortez Gaines committed a total of 19 armed robberies of commercial establishments and three carjackings, allegedly using two of the vehicles that they carjacked to commit some of the armed robberies. In ten of the armed robberies, the defendants used an Intratec 9 mm semi-automatic pistol with an extended magazine. That firearm was recovered in Harris’ residence on April 13 with the extended magazine fully loaded and a round in the chamber.
Name, Age
Hometown
Charges (#)
Max Penalty
Desmar Rashad Gayles, 25
Washington, D.C.
Conspiracy (1)
Armed robbery (6)
Carjacking (1)
Brandishing firearm during crime of violence (7)
Life
Andrew Bernard Duncan, 26
Washington, D.C.
Conspiracy (1)
Armed robbery (10)
Brandishing firearm during crime of violence (10) Felon in possession of a firearm (3)
Life
Anton Durrell Harris, 27
Washington, D.C.
Conspiracy (1)
Armed robbery (6)
Brandishing firearm during crime of violence (6) Felon in possession of a firearm (4)
Life
Lamont Kortez Gaines, 27
Washington, D.C.
Conspiracy (1)
Armed robbery (5)
Carjacking (1)
Brandishing firearm during crime of violence (6) Felon in possession of a firearm (5)
Life
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; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; M. Jay Farr, Arlington County Chief of Police; Michael L. Brown, Alexandria Chief of Police; Charles L. Owens, Bladensburg Chief of Police; and Henry P. Stawinski III, Prince George’s County Chief of Police, made the announcement after the indictment was returned yesterday evening. Assistant U.S. Attorneys Rebeca H. Bellows and Alexander Blanchard are prosecuting the case.
The D.C. Metropolitan Police Department provided significant assistance during the investigation.
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. 1:17-cr-106.
Former U.S. Postal Service Employee Guilty of Workers’ Compensation FraudRead the Press Release
SAN JUAN, P.R. – Today, former U.S. Postal Service (USPS) employee Ricardo Rivera-Ortiz was found guilty on all counts of fraud associated with Department of Labor (DOL) Office of Workers’ Compensation Program (OWCP), announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez. United States District Court Judge Gustavo A. Gelpí presided over the trial.
On August 30, 2013, Rivera-Ortiz was charged with three counts of false statements for lying to the U.S. Department of Labor, Office of Workers Compensation, one count of theft of government property for lying to the Social Security Administration Disability Benefits Program and a fifth count of concealing a material fact to the Social Security Administration for failing to disclose an improvement in his physical condition and capacity to work.
The defendant was found guilty on all counts. During trial, the government presented checks, invoices, vouchers, photos, videos and other documentary evidence and witness testimonies that proved that the defendant had been requesting and receiving unwarranted disability benefits from the OWCP and SSA while failing to report that he was working as a Union representative of the American Postal Workers Union.
“This conviction marks yet another victory in our fight against fraud in Puerto Rico. I thank our team of prosecutors and our federal law enforcement partners for the teamwork they showed in leading us to a successful outcome today,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The charges were prosecuted by Special Assistant United States Attorney Amanda C. Soto Ortega from the United States Postal Service-Office of the Inspector a General and Assistant United States Attorney Dennise N. Longo Quiñones. The defendant faces a sentence of imprisonment of at least 10 years for the theft of government property, at least 5 years of imprisonment for the false statement and concealment counts.
The case was investigated by the USPS-OIG with the collaboration of Social Security Administration - Office of Inspector General, the FBI, and the Puerto Rico Police Department.
The sentencing hearing was scheduled for October 10, 2017.
Former Regions Bank Branch Manager Sentenced to 15-Months in Federal PrisonRead the Press Release
Memphis, TN – The former manager of the Regions BankWhitehaven North Branch was sentenced to 15-months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Renwick Chavez Edwards, 46, pled guilty in February of this year to a charge that he embezzled $45,002.71 from Regions Bank in March 2014. According to information presented in court by the United States, at the time of Edwards’ guilty plea between October 2013 and March 2015, Edwards embezzled approximately $223,000 from accounts of Regions’ customers.
In addition to the 15-month sentence in federal prison, Edwards was ordered to pay restitution to Regions Bank in the amount of $226,332.02 and to serve a period of three years on supervision after his release from prison.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Program Director of Supplemental Educational Services Provider to Detroit Public Schools Sentenced to 37 MonthsRead the Press Release
The former program director of Priority: My Education, a supplemental educational service provider, was sentenced to 37 months in federal prison after previously pleading guilty to federal program fraud, Acting United States Attorney Daniel Lemisch announced today.
Joining Lemisch in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Bernadette Kakooza, Inspector General of the Detroit Public Schools.
TheodoreThomas Pride, III, 38 of Detroit was sentenced by United States District Judge Bernard A. Friedman.
According to court records, Pride obtained at least $684,644 from Detroit Public Schools by submitting fraudulent invoices for tutorial services that DPS students never received. Pride’s scheme ran from 2011-2012, while he served as the resident agent and program director of Priority: My Education, a company approved by the State of Michigan to provide supplemental educational services to eligible students.
This case was investigated by agents of the FBI and the Office of Inspector General for the Detroit Public Schools. This case was prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Former Law Firm Office Manager Charged Defrauding Law Firm of over $400,000Read the Press Release
Memphis, TN – A federal grand jury returned a 39-count indictment against a former law firm office manager. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The indictment alleges 38 counts of wire fraud, and one count of interstate transportation of monies stolen or taken by fraud. Misty West, 40, of Olive Branch, Mississippi, was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King, Jr., Avenue in Memphis. Between August 2011 and July 2016, West engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000.
In some instances, West presented blank checks drawn against the firm’s Suntrust Bank account and asked Fowler to sign the checks telling him she needed to pay the firm’s bills. Fowler signed the checks in blank and West completed the payee information and the amounts. The indictment alleges that West routinely made some of the checks payable to herself and deposited them to her Suntrust account and used the funds to pay her personal bills and expenses. West fraudulently obtained approximately $308,000 in this manner.
The indictment alleges that West also fraudulently obtained a debit card associated with a Suntrust account styled “Charles Wesley Fowler, d/b/a, the Candy Factory.” The Candy Factory was the name of a group of office suites owned by Fowler and which were leased to other individuals and businesses. After obtaining the debit card, the indictment alleges that West used the card to make ATM withdrawals without Fowler’s knowledge. West fraudulently obtained approximately $90,000 in this manner.
According to the indictment, West used the internet to transfer funds from the law firm’s account to pay her personal cell phone bill without Fowler’s knowledge or authorization. West fraudulently obtained approximately $17,000 in this manner.
West faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release on the 38 counts of wire fraud, and 10 years’ imprisonment, $250,000 fine and 3 years supervised release on the count charging interstate transportation of monies stolen or taken by fraud.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Correctional Officer in West Virginia Pleads Guilty to Using Force to Punish A DetaineeRead the Press Release
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia jointly announced that a former Elkins, West Virginia Correctional Officer, Adam Joseph Neal Graham, 26, pleaded guilty today in federal court to a civil rights violation for an incident in which he assaulted a handcuffed pretrial detainee.
According to information provided in connection with his guilty plea, Graham was serving as a Correctional Officer at the Tygart Valley Regional Jail on March 9, 2015, when he assisted with the intake screening for the victim, an 18 year-old pretrial detainee. This was the victim’s first arrest. The detainee was handcuffed, sitting on a chair, and acting distraught. Graham told the detainee to “be quiet” several times. Even though the detainee posed no threat to Graham or any other person, Graham applied pressure points to the victim’s shoulder and neck area. Then, suddenly and without warning, Graham grabbed the detainee by the neck and forcefully slammed him to the ground. During the plea hearing, Graham acknowledged that his use of force was not justified by any legitimate law enforcement or correctional objective.
“The U.S. Constitution protects every person in this country, including those who are detained in our jails,” said Acting Assistant Attorney General Wheeler. “The federal government will actively prosecute those correctional officers, who like the defendant, abuse their authority and violate their oath by unlawfully utilizing physical force as a form of punishment.”
The FBI’s Pittsburgh Division investigated the case. Special Litigation Counsel Gerard V. Hogan and Trial Attorney Olimpia E. Michel of the Civil Rights Division’s Criminal Section, and Assistant U.S. Attorney Sarah W. Montoro of the Northern District of West Virginia prosecuted the case.
Former Chief Financial Officer of Public Computer-Services Company Pleads Guilty to Federal Fraud ChargeRead the Press Release
CHICAGO — The former chief financial officer of a public computer-services company admitted in federal court today that he participated in a scheme to defraud a global telecommunications provider out of at least $3 million.
ANTHONY ROTH, 52, of Upton, Mass., pleaded guilty to one count of wire fraud. The conviction carries a maximum sentence of 20 years in prison. U.S. District Judge Amy J. St. Eve did not immediately set a sentencing date.
The guilty plea was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission provided valuable assistance.
Roth served as the chief financial officer of ContinuityX Solutions Inc., a computer-services company based in Metamora, Ill. Roth stated in a plea agreement that he and ContinuityX’s former chief executive officer, DAVID GODWIN, approached certain companies to buy services from an international telecommunications firm that the companies did not need or intend to use. Godwin and Roth promised these companies that they would not have to pay for the services because he had arranged separate side deals with other companies to fund and use the services, according to Roth’s plea agreement. Roth and Godwin then created false financial information to fraudulently inflate the financial condition of the companies, the plea agreement states. They did all of this so that the telecommunications firm would approve the sales to these companies and pay ContinuityX hundreds of thousands of dollars in commissions for purportedly having brought new customers to the telecommunications company, the plea agreement states.
In 2011 and 2012 Roth and Godwin fraudulently caused ContinuityX to receive approximately $3 million in commission payments from the telecommunications company, according to Roth’s plea agreement. The commissions were paid upfront, and Godwin provided some of the money to the companies that signed up for the services, the plea agreement states.
Godwin, 55, of Germantown Hills, Ill., and a third defendant, former ContinuityX sales representative JOHN COLETTI, 56, of Canyon Country, Calif., are also charged in the case. Godwin has pleaded not guilty to 14 counts of wire fraud, while Coletti has pleaded not guilty to five counts of wire fraud and one count of making false statements to the FBI. Godwin and Coletti are scheduled for a jury trial on Sept. 25, 2017.
The public is reminded that charges are not evidence of guilt. Godwin and Coletti are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorneys Steven Dollear, Brian Wallach and John Mitchell.
Florida Man Pleads Guilty to Marijuana ChargeRead 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 Travis Beckley, 63, of Miami, FL, pleaded guilty to attempt to possess with intent to distribute 50 kilograms or more of marijuana, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on August 10, 2016, the defendant attempted to receive a shipment of approximately 145 pounds of high-grade marijuana. The marijuana was in individual bags, each weighing approximately one pound, all of which were packed into four barrels in three wooden crates. These crateswere shipped from the State of Nevada to a storage locker located in Erie County, NY. Beckley traveled from Miami to Western New York, signed for the marijuana load, and was immediately arrested by law enforcement officers.
The plea 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 Hamburg Police Department, under the direction of Chief Gregory Wickett.
Sentencing is scheduled for August 28, 2017, at 1:00 p.m. before Judge Arcara.
Five Plead Guilty for Roles in Credit Card Fraud SchemeRead the Press Release
Roanoke, VIRGINIA – Five men, who target rural communities in the southeast to commit credit card fraud and aggravated identity fraud pled guilty during a series of hearings this week in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
The conspirators, Keyshawn Berchel Hunter, 27, of Florence, S.C., Daquan Damese James, 24, of Darlington, S.C., Roland Marcell Bruce, 23, of Darlington, S.C. and Markese Davon Robinson, 21, of Darlington, S.C., each pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft. A fifth defendant, Markese Tyshawn James, 22, of Darlington, S.C., pled guilty to one count of conspiracy to commit access device fraud. The investigation remains ongoing and additional defendants may be charged.
According to evidence presented during this week’s hearings by Assistant United States Attorney Ashley B. Neese, authorities in Pearisburg, Virginia responded to the Pearisburg Wal-Mart for a report of several males attempting to use multiple debit cards that make purchases that were declined. A loss prevention employee noted that he observed the same males in the store a week earlier, attempting the same scheme and gave authorities a description of the subjects vehicle.
Authorities located a vehicle matching the description given by the Wal-Mart employee parked nearby and approached it, noticing the strong smell of marijuana as they did. Based on the smell of marijuana, police searched the vehicle and recovered a bag of green leafy material near the driver’s seat, 16 Visa debit cards. Additional search of the occupants of the vehicle recovered 40 Visa gift cards in the van’s center console and 52 Visa gift cards, one credit card skimmer and one HP laptop computer elsewhere in the van. Forensic examination by the United States Secret Service performed later revealed that 89 of those cards were re-encoded with stolen credit card numbers.
Additionally, one of the conspirators admitted the group targeted Wal-Mart stores in the southeast because the store wanted to keep the lines moving, which worked to their advantage.
The investigation of the case was conducted by the United States Secret Service, the Pearisburg Police Department, and the Giles County Sheriff’s Office. The Office of the Commonwealth Attorney for Giles County also assisted with the overall prosecution. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Fifth Man Arrested for Robbery of McDonald’s RestaurantRead the Press Release
St. Thomas, USVI – Troy Titley, 36, of St. Thomas made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged by indictment with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, possession of a firearm during a crime of violence and conspiracy to possess a firearm during a crime of violence, Acting United States Attorney Joycelyn Hewlett announced. Titley, who was detained pending a detention hearing on May 22, 2017, also has been charged under Virgin Islands law with possession of a firearm during a crime of violence and possession of a firearm in a public housing zone.
Four other men charged in the robbery of the McDonald’s restaurant on March 25, 2017 at the Lockhart Shopping Center on St. Thomas made their initial appearances before Judge Miller on April 26, 2017. The four men are Hanselo Recio, Betel Paulino, Junior Feliz and Helwood Paris.
If convicted, Titley faces up to 20 years in prison on the Hobbs Act robbery and local robbery charges; a mandatory 10 year consecutive sentence for the federal possession of a firearm during a crime of violence and 15 and 30 year sentences on the territorial firearm charges.
The case is being investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms and VIPD. It is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Felon Wounded in Drug Deal Gunfight Sentenced to 10 Years in Prison for Illegal Firearm PossessionRead the Press Release
A 25-year-old Seattle man was sentenced today in U.S. District Court in Seattle to ten years in prison and five years of supervised release for three felony counts related to illegal gun possession, announced U.S. Attorney Annette L. Hayes. FRANKIE MANUEL MIRANDA survived an August 2015, gun battle inside a car at a downtown Seattle Shell gas station. In the shooting, another young man was shot in the head and killed. The shooting occurred during a drug deal involving MIRANDA and three others. At sentencing U.S. District Judge Robert S. Lasnik said, “The Defendant armed himself not once, but three times with a firearm. His decisions resulted in tragic consequences and death.”
“This case demonstrates yet again that guns and drugs don’t mix,” said U.S. Attorney Annette L. Hayes. “The devastating results are clear – one dead and a number of others who came far too close to the unthinkable. My office is steadfastly committed to working with our state and local partners to bring federal charges against convicted felons who flout the law and illegally possess firearms.”
According to records filed in the case, MIRANDA and another man drove into the Shell station on Denny Way in Seattle intending to do a drug deal. Different witnesses have said the deal was for marijuana, or for prescription cough syrup, or Xanax. What is known is that after two other men got into the back seat of the car, gunfire erupted and 22-year-old Wafi Kilaouy was shot in the head and killed. MIRANDA and a third man, Dion Hooks – also charged federally – were both shot but survived. The car’s driver managed to get out of the car uninjured and fled the scene.
The shooting on Lower Queen Anne Hill followed two other incidents in which MIRANDA, a convicted felon, illegally possessed firearms. As part of the resolution of the case, MIRANDA has pled guilty to two other felonies: possession of a stolen .40 caliber Smith and Wesson handgun in December, 2013; and possession of a stolen Glock .357 semi-automatic handgun in January 2014.
King County prosecutors, working with their federal partners, determined that MIRANDA could argue self-defense in connection with any charges brought for the death of Wafi Kilaouy. The resolution in federal court holds MIRANDA responsible for multiple instances of illegal firearms possession. MIRANDA has a prior adult conviction for the unlawful possession of a firearm.
The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Federal Jury Convicts Alien for Illegal Reentry After DeportationRead the Press Release
NEW BERN – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that on May 17, 2017, in federal court, ISMAEL AZUA-RINCONADA, 27, of Mexico, was convicted following a three-day trial before United States District Judge Louise Wood Flanagan. The jury found the defendant guilty of Illegal Reentry of a Deported Alien.
At trial, the evidence showed that AZUA-RINCONADA, a citizen of Mexico, was found in Robeson County, North Carolina, after having previously been deported from the United States on June 21, 2011, at Hidalgo, Texas, and again on September 17, 2011, at Calexico, California. The evidence further showed that AZUA-RINCONADA had been previously convicted of illegal entry and reentered without having obtained the express permission of the Attorney General or the Secretary of Homeland Security.
The investigation of this case was conducted by agents of Homeland Security Investigation and the Hoke County Sheriff’s Office.
Farmington Hills Doctor Sentenced to 19 Years in Prison for Distributing Prescription Drugs and Health Care FraudRead the Press Release
A Farmington Hills, Michigan, doctor was sentenced yesterday to 19 years in prison for participating in a conspiracy to distribute prescription pills and conspiracy to commit health care fraud, Acting U.S. Attorney Daniel Lemisch announced.
Adelfo Pamatmat, 71, was sentenced by U.S. District Judge Robert H. Cleland.
Dr. Pamatmat was found guilty, along with two co-defendants, after a seven-week jury trial. Dr. Pamatmat was convicted on two felony counts, conspiracy to illegally distribute prescription drugs and conspiracy to commit health care fraud. The convictions arose from the operation of a fraudulent medical practice known as Compassionate Doctors. The medical practice purported to be a visiting physician’s practice, but was actually a scheme that involved patient marketers bringing paid “patients” to residences to obtain fraudulent prescriptions for controlled substances. Medicare would be billed for medical examinations and tests that were not conducted properly or were not conducted at all. The marketers would fill the controlled substance prescriptions at cooperating pharmacies and sell the drugs on the street market.
According to evidence submitted at trial and at sentencing, Dr. Pamatmat was employed at Compassionate from 2007 until 2009. He then continued his illegal behavior in cooperation with other conspirators until he was arrested in 2013. While on bond, he was ordered not to prescribe controlled substances. Evidence submitted in connection with sentencing showed that he continued to prescribe controlled substances, in violation of conditions of bond, in 2014 and 2015.
Dr. Pamatmat was personally responsible for illegally prescribing over 200,000 dosage units of oxycodone (including Oxycontin) and opana, powerful Schedule II opiates. He illegally prescribed over 1 million dosage units of another opiate, hydrocodone (Vicodin, lortab), and over 3 million dosage units of controlled substances of all kinds. He was responsible for over $4 million in health care fraud.
Oxycodone, and hydrocodone are controlled substances that may be prescribed by a doctor only for a legitimate medical purpose. A doctor must act in good faith in prescribing these medications. These powerful and addictive drugs in the opioid class are easily abused, and can lead to addiction and eventual heroin use.
“More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” Lemisch said. “In addition, prescription drug addiction has led to resurgence in heroin use. Licensed professionals who participate in the diversion of prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.”
Dr. Pamatmat was one of 44 defendants named in a multi-count second superseding indictment unsealed in March of 2013. Five other doctors and five pharmacists were convicted, either by guilty plea or at trial.
Dr. Pamatmat has already surrendered his federal DEA license to prescribe controlled substances, and will face state action against his medical license as a result of his convictions.
The investigation in this case was handled by the Drug Enforcement Administration, the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Department of Treasury Internal Revenue Service.