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20 June 2017
Florida Man Pleads Guilty to Obstructing the IRS and Stealing Government FundsRead the Press Release
A Boynton Beach, Florida resident pleaded guilty today to corruptly endeavoring to obstruct the administration of the internal revenue laws and theft of government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2010 to 2015, David R. Andre, 41, filed fraudulent personal tax returns with the Internal Revenue Service (IRS) that sought more than $5.6 million in refunds to which he was not entitled. As a result of these returns, which falsely reported income earned and income tax withheld, the IRS paid Andre more than $485,000 in refunds. He used the funds to purchase his residence and multiple vehicles, including a Jaguar and Mercedes Benz. In late 2012, the IRS began trying to collect the taxes Andre owed and placed a lien on his residence. Days after the lien was recorded, Andre filed a form with the IRS that falsely claimed he was making a substantial payment, and the IRS released the lien. After Andre did not make the payment, the IRS revoked its release and re-filed the lien. In 2015, Andre also made false statements to IRS agents and told them that he purchased his residence with money he inherited, did not recall receiving any large refunds from the IRS and had not filed a tax return since 2008.
Sentencing is scheduled for Sept. 8. Andre faces a statutory maximum sentence of three years in prison for corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws and a statutory maximum sentence of 10 years in prison for theft of government funds. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar, Jr. of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Florida for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal inmate pleads guilty to possessing weapon in prisonRead the Press Release
CHARLESTON, W.Va. – An inmate at the Federal Correctional Institution at McDowell pleaded guilty today to possessing a weapon in prison, announced United States Attorney Carol Casto. Christopher Williams, 32, entered his guilty plea to possession of a weapon by an inmate of the institution.
Williams admitted that on August 25, 2016, he possessed a handcrafted weapon commonly known as a “shank.” The weapon was a piece of metal about six inches long, sharpened on one end, with a handle made of duct tape. The weapon was discovered during a search of Williams when a prison staff member observed it fall from his clothing.
Williams faces up to five years in federal prison when he is sentenced on September 26, 2017.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
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Federal Jury Finds Corcoran Man Guilty of Multi-Million Dollar Fraud in the Bakken Oil FieldsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of RONALD DAVID JOHNSON, 51, for stealing more than $2.1 million from victims who were hoping to invest successfully in the North Dakota oil boom. JOHNSON, who was charged in a superseding indictment with nine counts of wire fraud and one count of money laundering, was found guilty on all counts by a federal jury in St. Paul, Minn.
Assistant U.S. Attorney Joseph H. Thompson wrote: “Ron Johnson saw the North Dakota oil boom as an opportunity to steal from people looking to invest in the Bakken. Under the guise of a fake company, Johnson defrauded investors, including a former girlfriend and his own church pastor, out of more than $2 million. Fortunately, after just two hours of deliberation, the jury recognized Johnson for the selfish fraud he committed and convicted him on all counts.”
FBI Minneapolis Division Special Agent in Charge, Richard T. Thornton said, “Mr. Johnson is a classic con-man who lured investors with empty promises of financial gain and false assurances to provide housing to hard working oil workers. In reality, Mr. Johnson stole millions to support his expensive hobbies and line his pockets. The FBI is committed to identifying these types of fraudsters, bringing them to justice, and getting restitution for the victims.” Thornton added that, “The FBI is pleased with the jury’s decision and grateful for their service.”
“The guilty verdict of Ronald Johnson again emphasizes that we and our law enforcement partners will continue our aggressive pursuit of those who defraud and harm investors,” said Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge, St. Paul Field Office. “We are proud to work with the U.S. Attorney’s Office to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to investment schemes and other types of white collar crime.”
As proven at trial, JOHNSON came up with an investment idea to address the need to house oil workers in the Bakken in North Dakota and Montana. The idea, registered as Indoor RV Parks, LLC (“IRVPK”), would allow oil workers to eschew more common barracks-style housing in favor of comfortable indoor RV parks, specifically large climate-controlled warehouses where oil workers could park their RVs and have access to shared amenities like on-site storage, laundry and vending machines. Johnson promised his investors that as “members” of IRVPK, they would, based on the amount of the investment, receive a percentage of the rental income and other revenue generated by the indoor RV park. As part of his scheme, JOHNSON sent emails and letters to investors designed to lull them into a false sense of security and to postpone complaints regarding delays in the project.
As proven at trial, JOHNSON fraudulently solicited $2.1 million from four investors in IRVPK, telling the investors that their money would be used to build and manage indoor RV parks for oil workers. Instead of using the investor money to purchase land and start construction on the RV parks, JOHNSON used the funds to repay prior investors, fund his personal 51-acre cattle farm, take vacations, buy vintage Chevrolets, and purchase real estate, including a 17-acre island on Mink Lake in Maple Lake, Minn. As of today, IRVPK has not built any indoor RV Parks, has not acquired any property in North Dakota or Montana, and has a bank account that is empty.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and Joseph H. Thompson.
Defendant Information:
RONALD DAVID JOHNSON, 51
Corcoran, Minn.
Convicted:
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Wire fraud, 9 counts
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Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a federal grand jury in Columbia, South Carolina, returned Indictments against the following:
Georgia Man Indicted for Extortion and Pretending to be an Attorney. Phillip Asher, a/k/a “Phillip Reynolds,” of Douglasville, Georgia, was charged in a 7-count indictment that related to his attempting to defraud and extort money from the owner of a Columbia restaurant by pretending to be an attorney. The indictment charges that Asher demanded amounts of $250,000 and $300,000, threatening legal action, economic harm, and immigration consequences if the money was not paid.
Asher is charged with Hobbs Act extortion, a violation of Title 18, U. S. C. §1951, wire fraud, a violation of Title 18, U. S. C. §1343, and traveling in interstate commerce to execute a fraud, a violation of Title 18, U. S. C. §2314. The maximum penalty Asher could receive is 20 years imprisonment and a maximum fine of $250,000 for the extortion and wire fraud counts and 10 years imprisonment and $250,000 for the traveling in interstate commerce to commit fraud. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorneys Jim May and Alyssa Richardson of the Columbia office for prosecution.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Ex-Suffolk County Conservative Party Chairman Edward Walsh, Jr., Sentenced to 24 Months for Fraud SchemeRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, former Suffolk County Conservative Party Chairman Edward M. Walsh, Jr. was sentenced to 24 months in prison, 3 years of supervised release, $202,225 in restitution, and $245,811.21 in forfeiture. Walsh was convicted at trial in March 2016 on charges of theft of government funds and wire fraud in connection with his employment with the Suffolk County Sheriff’s Office (SCSO). The sentencing proceeding was before United States District Judge Arthur D. Spatt.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As proven at trial, from January 2011 to April 2014, Walsh, a SCSO Correction Officer III Investigator, falsely represented to the SCSO that he had worked certain regular and overtime hours when in fact, he did not work those hours. Contrary to his representations, Walsh was, among other things, playing golf, gambling at Foxwoods Casino, or performing work on behalf of the Suffolk County Conservative Party. In reliance on Walsh’s false representations, the SCSO paid Walsh wages for hours he did not work. Over the course of the indictment period, Walsh was paid more than $200,000 for regular and overtime hours he did not work.
“The defendant, Edward Walsh, Jr., engaged in sports gambling and politics on the taxpayer’s dime to the tune of $200,000,” stated Acting United States Attorney Rohde. “We will continue to ensure that public officials who abuse their positions will be brought to justice.” Ms. Rohde extended her grateful appreciation to the FBI New York Office for its excellent work in the investigation that lead to Walsh’s trial conviction and the SCSO for its important assistance with the investigation.
“What Walsh did was steal taxpayer money, plain and simple. He misrepresented the hours he worked with the intent of deceiving his employer, the Suffolk County Sheriff’s Office, which in turn netted him more than $200,000,” stated FBI Assistant Director-in-Charge Sweeney. “We certainly expect more from our public servants. Today’s sentence should remind the public that nobody gets a free pass.”
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney, Catherine M. Mirabile, and Madeline O’Connor are in charge of the prosecution.
The Defendant:Edward M. Walsh, Jr.
Age: 51East Islip, New York
E.D.N.Y. Docket No. 15-CR-091 (ADS)
Essex County, New Jersey, Man Gets 51 Months in Prison for Prison Tax ScamRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 51 months in prison for his role in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, Acting U.S. Attorney William E. Fitzpatrick announced.
Reginald Eaford, 47, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2013 through Aug. 5, 2014, Eaford, Winfred Moses, 49, also of East Orange, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.
Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.
Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.
In addition to the prison term, Judge Walls sentenced Eaford to three years of supervised release and ordered him to pay restitution of $200,045.
Moses also previously pleaded guilty to his role in the scheme and was sentenced April 12, 2017 to 26 months in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark, New Jersey
Des Moines Woman Sentenced to 16 Months in Prison for Nigerian Email SchemeRead the Press Release
DES MOINES, IA – On June 20, 2017, Victoria Lovan, age 67, of Des Moines, Iowa, appeared before Chief United States District Court Judge John A. Jarvey and was sentenced to 16 months in prison for charges related to a Nigerian email scam, announced United States Attorney Kevin E. VanderSchel. Lovan was sentenced to 16 months of imprisonment for three counts of wire fraud, and was ordered to pay restitution to the victims.
On January 25, 2017, Lovan pleaded guilty. Lovan admitted between November of 2012 and October of 2014, she communicated with individuals over the Internet who persuaded her to accept money wires from victims across the country, and send the money wires to Nigeria. These individuals contacted persons across the country and overseas, and told them false stories to induce them to send money. Lovan kept a portion of the funds she received before sending the remainder to her associates in Nigeria.
At least 89 victims sent Lovan money because of these fictional stories of hardship and promises of financial gain. Lovan continued to engage in fraudulent financial transactions despite being told by law enforcement to cease her activity. In 2016, Lovan deposited two fraudulent checks at two different credit unions, again at the direction of individuals located abroad.
The investigation was conducted by the Des Moines Police Department and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Deputy Attorney General Recognizes Alaska EmployeesRead the Press Release
WASHINGTON – On Friday, June 16, 2017, 179 members of the Department of Justice, including a team from Alaska, were recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony in Washington D.C. The Alaskans were recognized for “Superior Performance as a Litigative Team” in the prosecution of Mark Avery in 2016. The team included Steven Skrocki, Bryan Schroder, Chloe Martin, Monica Valenzuela, and Kathryn Richards of the U.S. Attorney’s Office; Kirk Oberlander and Holly Steeves of the Federal Bureau of Investigation; and Patrick Matthew of the Internal Revenue Service-Criminal Investigations.
The District of Alaska was one of 35 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
The litigation team of agents, prosecutors and support staff from the District of Alaska was recognized for their exceptional work in the prosecution of Mark Avery for a $52 million wire fraud and money laundering scheme, the largest fraud by dollar amount in Alaskan history. Avery defrauded a private trust set up to take care of an elderly woman who, at the time, was suffering advanced dementia. Avery was convicted at trial in February 2016, and was sentenced to serve over 13 years in prison and pay over $45 million dollars in restitution.
Acting U.S. Attorney Bryan Schroder recognized that: “The most effective way of protecting the people of Alaska is for law enforcement agencies to work together. Federal law enforcement agencies, along with our state and local partners, work together every day to help make our state a safer place. I am proud that the Department of Justice has recognized the outstanding team effort in U.S. v. Avery.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Defendants Arrested for Methamphetamine TraffickingRead the Press Release
Abingdon, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced today that Operation Rolling Thunder, a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, has resulted in twenty-four arrest warrants being issued for individuals charged with conspiring to distribute methamphetamine in Southwest Virginia, and North Carolina. In addition to the arrest warrants being issued, law enforcement agents executed one search warrant today in furtherance of the investigation. The following individuals were arrested today and charged:
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Rodriguez, Sanson P.
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Hoyt, Amy
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Nester, Grandy
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Bilyeu, Amber “Rose”
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Hawks, Karen
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Sexton, Walter “Butch”
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Sellers, Larry
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Cochran, Brittany
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Bowman, Timothy
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Freeman, Annette
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Hunley, Brad
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Phipps, Shawanna
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Graff, Brian
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Alley, Riley
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Maxwell, Calvin Jermaine
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Norman, David
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Long, Lelana
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Choate, Jonathan
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Humphries, Kevin
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Parsons, Jackie Christopher
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Jones, Jessalyn
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Grose, Vicky
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Sawyers, Stacey Jerome
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Anders, Travis Brian
The investigation of the case was conducted by the Grayson County Sheriff’s Office, Carroll County Sheriff’s Office, Surry County Sheriff’s Office, Virginia State Police, North Carolina State Bureau of Investigation, Galax Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, United States Secret Service and the Lexington, N.C. Police Department. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
An arrest warrant is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
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Daly City Resident Pleads Guilty in Tax Fraud SchemeRead the Press Release
OAKLAND – Everardo Laurian pleaded guilty to theft of government money announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Laurian, 26, of Daly City, pleaded guilty to theft of government money. The Honorable Jeffery S. White, United States District Judge, accepted the plea today.
According to his plea agreement, between March and April 2015, Laurian participated in a conspiracy to illegally obtain money from the United States. The conspiracy involved filing false federal income tax returns in order to obtain fraudulent federal income tax refunds and cashing stolen U.S. Treasury checks at Walmart stores throughout the United States. Laurian became a member of the conspiracy knowing that the objective was to steal money from the federal government.
In 2015, codefendants Gary Bostick, 39, and Ana Bostick, 37, both of Pittsburg, Calif., asked Laurian to participate in a scheme to cash stolen or fraudulently obtained U.S. Treasury Checks. In March and April 2015, Laurian aided the Bosticks, co-conspirator Hugh Robinson, 46, of San Pablo, Calif., and others to cash fraudulently obtained or stolen U.S. Treasury checks. Laurian’s role was to drive individuals to Walmart stores and cashed the stolen or fraudulently obtained U.S. Treasury checks. In addition, after the checks were cashed, Laurian delivered the proceeds to Gary Bostick and Ana Bostick. In sum, Laurian conspired with others to cash a total of $88,826.41 in stolen U.S. Treasury checks as part of this joint undertaking.
On November 5, 2015, a federal grand jury indicted Laurian and ten co-conspirators for various crimes in connection with the scheme. For his part in the scheme, Laurian was charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. § 641; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. He pleaded guilty to two counts of theft of public money.
On October 31, 2017, a jury found Hugh Robinson guilty of conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; seven counts of theft of public money, in violation of 18 U.S.C. § 641; and seven counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A, in connection with the scheme. Judge White sentenced Robinson to 144 months in prison for his role in a conspiracy. Ana Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. § 641; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. On June 15, 2017, she pleaded guilty to all charges. For his part in the scheme, Gary Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. On June 15, 2017, he pleaded guilty to the conspiracy charge and to the wire fraud charges.
Judge White scheduled Laurian’s sentencing for September 26, 2017. The maximum sentence for theft of public money is ten years in prison and a fine of $250,000. However, any sentence following conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gary Bostick’s sentencing is scheduled for September 19, 2017, and Ana Bostick’s sentencing is scheduled for November 14, 2017.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein and Paralegal Jonathan Deville of the Tax Division are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Coeur d’Alene Doctor to Serve Prison Sentence for Submitting False Tax ReturnsRead the Press Release
COUER D’ALENE – U.S. Chief District Judge B. Lynn Winmill sentenced Dr. Stanley Toelle to one month in federal prison to be followed by one year supervised release for submitting false income tax returns in 2012 and 2013, Acting U.S. Attorney Rafael Gonzalez announced. Pursuant to a plea agreement, Toelle admitted that his and his wife’s joint tax returns were false because they did not report that his wife, Loren Toelle, was conducting business activities. Toelle admitted that Loren Toelle generated income of $52,692.00 in 2012 and $111,396.00 in 2013, none of which was reported. As a result, Judge Winmill also ordered Toelle to pay $47,597.31 in restitution for back taxes on this revenue. Judge Winmill also ordered Toelle to pay a $5,000 fine.
Loren Toelle, now divorced from Toelle, pleaded guilty to conspiracy to distribute controlled substances and conspiracy to launder money. She was sentenced to 212 months in prison. Loren Toelle admitted to being the organizer and leader of her drug trafficking and money laundering organization, which involved her children and friends. This group sold oxycodone, heroin and methamphetamine in Idaho, Washington, Montana and North Dakota. The organization sold an average of about $1 million of illegal narcotics per year from 2012 through 2014.
Toelle maintains that he did not know about Loren Toelle’s drug organization and that it was the source of her income. In a separate civil action, he agreed to forfeit $150,000 to resolve forfeiture claims on two homes and other assets that constituted proceeds of Loren Toelle’s drug trafficking organization.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force (OCDETF), including the FBI North Idaho Violent Crime Task Force which consist of the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, Post Falls Police Department, Kootenai county Sheriff’s Department, Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Marshal Service and Department of Homeland Security. Other agencies involved include the Williston, North Dakota Police Department, the United States Attorney’s Offices in Las Vegas, Nevada and North Dakota, the FBI in North Dakota, Williams County Sheriff’s Office, U.S. Border Patrol, Williston Police Department, North Dakota Bureau of Criminal Investigation, Northwest Narcotics Task Force, the Washington State Patrol, the U.S. Marshal Service in Las Vegas, IRS-CI in Las Vegas, and the DEA in Las Vegas and the United States Attorney’s Office in Idaho.
The indictments are the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi agency, multi- jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Chief Digital Officer of Premium Cable Network Pleads Guilty in Manhattan Federal Court to Defrauding His Employer of More Than $7 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that EMIL RENSING pled guilty in connection with his scheme to defraud his employer, a premium cable network (the “Network”), of more than $7 million through false statements about purported services to be provided to the Network by companies RENSING owned and controlled that were, in large part, never performed. RENSING pled guilty earlier today before United States Magistrate Judge James L. Cott in Manhattan federal court.
Acting U.S. Attorney Joon H. Kim said: “Emil Rensing, an executive at a premium cable network, defrauded his employer out of more than $7 million by causing the network to pay companies Rensing controlled for services that were never rendered. To conceal his role in the payments, Rensing used false and stolen identities and dummy email accounts. I want to thank the FBI for their work to hold Rensing accountable for his crimes.”
According to the allegations in the Indictment to which RENSING pled guilty, a criminal Complaint filed against RENSING, and statements made during the plea and other court proceeding proceedings:
EMIL RENSING defrauded the Network of more than $7 million over the course of his five-year employment with the Network. Through his position as Chief Digital Officer of the Network, RENSING caused the Network to contract with vendor companies owned and controlled by RENSING to perform digital media services for the Network and to perform those services through vendor personnel identified in the contracts. In truth and in fact, however, the promised services were, in large part, never performed, and the vendor personnel designated in the contracts to perform the services – which included several of RENSING’s former professional associates and business partners – had never heard of the vendors or performed services for the Network. These individuals were further unaware that their names were being used by RENSING in this manner.
RENSING concealed his fraudulent scheme by, among other things, using false and stolen identities to hide his own involvement in the scheme. As to one of the vendors used to perpetrate the scheme (“Vendor-1”), RENSING provided the Network with a false name and email address as the “contact” to be used by the Network to communicate with Vendor-1. As to a second vendor, (“Vendor-2”), provided the Network with the name of a personal acquaintance as a “project manager” and “contact” for Vendor-2 when, in truth and in fact, this acquaintance had nothing to do with Vendor-2. Unbeknownst to this personal acquaintance, also established an email account in that acquaintance’s name that RENSING, posing as the acquaintance, used regularly to communicate with the Network about the vendor’s billing and other administrative matters.
After the Network learned of RENSING’s fraudulent scheme, RENSING was interviewed by attorneys for the Network. During this interview, which was recorded at the request of RENSING and his counsel, RENSING made multiple false statements to further conceal his fraudulent scheme.
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RENSING, 43, of Manhattan, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
California Man Admits Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
CAMDEN, N.J. – A Riverside, California, man today admitted his role in a conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores and use that information to make fraudulent withdrawals from the customers’ bank accounts, Acting U.S. Attorney William E. Fitzpatrick announced.
Angel Angulo, 27, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count One and Count Two of an indictment charging him with conspiracy to commit bank fraud and aggravated identity theft.
According to documents filed in this case and statements made in court:
The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
From April 2011 to May 2011, Angulo, Crystal Banuelos, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using ATMs from hundreds of bank accounts. On May 14, 2011, Angulo and Banuelos possessed 179 counterfeit cards in New Jersey.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, to be served consecutively to any other sentence. Angulo’s sentencing is scheduled for Sept. 25, 2017.
Banuelos previously pleaded guilty to her role in the scheme and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Lisa Lewis, Esq., Federal Public Defender
Brooklyn Man Sentenced to More Than 20 Years in Prison for Murder Committed in Broad Daylight in January 2016Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that RAYSHAWN DEMOSTHENE, a/k/a “Smooth,” was sentenced today in Manhattan federal court to a prison term of 244 months for the murder of Michael Morris in Brooklyn, New York, on January 11, 2016. DEMOSTHENE pled guilty before U.S. Magistrate Judge Barbara C. Moses on December 29, 2016, to murdering Morris. DEMOSTHENE was sentenced today by U.S. District Judge P. Kevin Castel.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “In broad daylight, on a residential street in Brooklyn, Rayshawn Demosthene executed Michael Morris. Demosthene’s cold-blooded murder and utter disregard for a fellow human life was driven by greed, a desire to steal drug money. Thanks to the hard work and dedication of the SPARTA Joint Robbery Task Force of the NYPD and the ATF, Demosthene has been brought to justice and will serve a lengthy sentence for his crime.”
ATF Special Agent-in-Charge Ashan M. Benedict stated: “The defendant and his co-conspirators committed a cold-blooded, ambush murder of the victim in order to steal money the victim intended to use to purchase narcotics. In the process, they turned the streets into a shooting gallery, endangering the lives of any number of innocent bystanders. This investigation highlights the ever-present danger of violence that goes along with the narcotics trade, and how invariably that violence plays out on the streets. I would like to extend my gratitude to the ATF Special Agents and NYPD Detectives assigned to the ATF SPARTA Joint Robbery Task Force, and the U.S. Attorney’s Office for their outstanding work in ensuring that this killer faced the justice he so overwhelmingly deserved.”
NYPD Commissioner James P. O’Neill stated: “The individual involved in this case not only participated in the illegal drug trade but compounded his actions by engaging in the wanton murder of another human being for nothing more than his own greed. Murder, no matter what the circumstances, can never be tolerated in a civilized society.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea and sentencing proceedings:
On the morning of January 11, 2016, RAYSHAWN DEMOSTHENE walked along a residential street in Brooklyn toward the car in which Michael Morris was sitting and opened fire. Morris, who was a resident of Virginia, had traveled to Brooklyn that day in the belief that he would purchase drugs in exchange for approximately $30,000 in cash. But the supposed drug transaction was a ruse. Unbeknownst to Morris, DEMOSTHENE and his co-conspirators had agreed beforehand to murder Morris and take his money. After Morris arrived in Brooklyn, DEMOSTHENE carried out the homicide by shooting Morris in the head and killing him.
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In addition to his prison term, DEMOSTHENE, 24, of Brooklyn, New York, was also sentenced to five years of supervised release.
Mr. Kim praised the investigative work of the NYPD and the ATF, and in particular the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Scott A. Hartman and David Zhou are in charge of the prosecution.
Billerica Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Billerica man was sentenced yesterday in federal court in Boston for possessing and distributing child pornography.
Brian Ashley, 38, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to six years in prison and six years of supervised release. He was also ordered to pay restitution in the amount of $15,000 to two of the victims identified in his child pornography collection. Ashley will also be required to register as a sex offender upon release from prison. In March 2017, Ashley pleaded guilty to one count of distribution and one count of possession of child pornography.
In February 2016, federal agents in Montana assumed the identity of an individual who was using an instant messaging app to send and receive child pornography to other users. As part of the investigation, agents identified Brian Ashley as one of the individuals using the app to trade child pornography. Ashley, using a screenname that hid his identity, distributed several images and videos of child pornography to the undercover agents, who subsequently traced his illicit online activity to his home and work addresses in Massachusetts. Agents executed a search warrant at Ashley’s Billerica home, where they seized his cell phone. A forensic review of the cell phone revealed hundreds of images and videos of child pornography and evidence that he had exchanged the material with other users of the instant messaging app.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Jordi de Llano and Anne Paruti of Weinreb’s Criminal Division prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Bergen County Doctor Sentenced to 41 Months in Prison for Taking Bribes in Test-Referral SchemeRead the Press Release
NEWARK, N.J. – A family doctor practicing in Bergen County, New Jersey, was sentenced today to 41 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Bernard Greenspan, 79, of River Edge, New Jersey, was convicted March 6, 2017, of one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Greenspan was convicted following a 11-day trial before U.S. District Judge William H. Walls, who imposed the sentence today in Newark federal court.
“The defendant in this case abused his position of trust by taking bribes in return for referring his patients to BLS,” Acting U.S. Attorney Fitzpatrick said. “People need to trust that their doctors are making medical decisions based on what is in their best interest and not based on who will pay them a bribe.”
“Patients have every right to insist that their physician is making medical referrals based on what is best for the patient—not what’s best for the doctor’s bank account,” said Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “Bernard Greenspan decided to accept bribes in exchange for referrals and deprived patients of their right to honest services. These types of kickback arrangements cripple the healthcare industry and severely impact patient care. The FBI remains committed to investing its resources to combat these types of schemes.”
According to the indictment and testimony at trial, between March 2006 and April 2013, Greenspan received bribes totaling approximately $200,000 from BLS employees and associates. Greenspan periodically solicited and received monthly bribe payments in the form of sham rental, service agreement, and consultant payments.
In addition, Greenspan solicited and received other bribes, including payment for holiday parties for Greenspan and his office staff and additional cash bribes for ordering specific blood tests. In addition, BLS hired – at Greenspan’s specific request –a patient of Greenspan’s with whom he was having a sexual relationship. Greenspan’s referrals generated approximately $3 million in lab business for BLS.
The investigation has thus far resulted in 44 convictions – 30 of them of doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
“Dr. Greenspan violated the Hippocratic Oath taken by medical professionals when he pledged to ‘come for the benefit of the sick, remaining free of all intentional injustice,” Inspector in Charge James V. Buthorn of U.S. Postal Inspection Service, Newark Division, said. “The culture of kickbacks and bribery have no place in our healthcare system, and the U.S. Postal Inspection Service was proud to do our part, working with our law enforcement partners to ensure justice was served today.”
The investigation has recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison term, Judge Walls sentenced Greenspan to one year of supervised release, fined him $125,000 and ordered forfeiture of $203,693.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government was represented at trial by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The U.S. Attorney’s Office, District of New Jersey, reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Damian Conforti Esq. and Eric Kanefsky Esq., Newark, NJ
Belleville Man Sentenced for Cocaine and Heroin DistributionRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Tyrone D. Heard, 41, of Belleville, Illinois was sentenced to 151 months of imprisonment on June 19, 2017 for possession with intent to distribute cocaine and heroin.
At his change of plea hearing on January 31, 2017, Heard admitted that he had possessed cocaine and heroin at an O’Fallon, Illinois motel on February 28, 2016, and that he intended to sell 16 grams of black tar heroin and 55 grams of cocaine.
The investigation which resulted in Heard’s arrest and sentence was conducted by the O’Fallon Illinois Police Department. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Bank Executive Pleads Guilty to FraudRead the Press Release
Assistant U. S. Attorney Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – June 20, 2017
SAN DIEGO – A former executive at Vibra Bank pleaded guilty to causing the filing of false bank reports today, admitting that he caused Vibra Bank to create false anti-money laundering reports as part of an effort to conceal his role in a scheme to structure $70,000 in cash deposits into numerous bank accounts at the bank.
According to a plea agreement, in June 2010, Dan Schon was a Senior Vice President at Vibra Bank. According to the plea agreement, on June 9 and June 10, 2010, Schon and another individual structured approximately $70,000 in cash deposits into various bank accounts at the bank. As part of the plea agreement, the defendant acknowledged that after he participated in the structuring scheme, he was approached by Vibra Bank personnel who had discovered the transactions and were investigating the transactions as part of an Anti-Money Laundering program. During his interview, Schon made at least five false statements to the Vibra Bank employees who then incorporated those false statements into an Anti-Money Laundering report.
Among the false statements made by Schon was a claim that all of the money he deposited was his, that the money he wired to another individual was intended as an investment related to oil and gas, and that he had no knowledge of any of the other structured deposits.
“Today’s guilty plea shows Homeland Security Investigation’s commitment to disrupt financial crimes at the highest levels,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI special agents are highly trained to detect violations of the anti-money-laundering rules at all levels in U.S. financial systems.”
Schon is scheduled to be sentenced on August 21, 2017 at 9 a.m. before U.S. District Judge Michael M. Anello.
DEFENDANT Case Number
Dan Schon Age: 35 Residence: Mexico City
SUMMARY OF CHARGES
Making a False Statement to a Bank, 18 U.S.C. 1005
Maximum Penalties: 30 years in prison and $1 million fine.
INVESTIGATING AGENCY
Department of Homeland Security
Bakersfield Man Indicted on Child Pornography ChargesRead the Press Release
FRESNO, Calif. — On Thursday, June 15, 2017, a grand jury returned a two-count indictment against Augustine Amon Reyes, 31, of Bakersfield, charging him with receipt and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between October and November 2016, Reyes, through the use of a cellphone and a micro SD memory card, received and possessed over 80 sexually explicit images of prepubescent minors being sexually abused.
This case is the product of an investigation by the Bakersfield Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Corrections and Rehabilitation with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.
If convicted, Reyes faces a penalty of 15 to 40 years in prison and a $250,000 fine for the receipt of child pornography charge, as well as 10 to 20 years in prison for possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Attorney General Sessions Announces Creation of National Public Safety Partnership to Combat Violent CrimeRead the Press Release
As the Department of Justice continues its efforts to fulfill President Trump’s commitment to reducing violent crime in America, Attorney General Jeff Sessions announced today that 12 cities are joining the Department’s newly organized National Public Safety Partnership (PSP). The announcement came during the opening session of a national summit organized by the Attorney General’s Task Force on Crime Reduction and Public Safety. The summit convened federal, state and local law enforcement to discuss how to support and replicate successful local violent crime reduction efforts.
A list of the cities is posted at www.nationalpublicsafetypartnership.org.
“Turning back the recent troubling increase in violent crime in our country is a top priority of the Department of Justice and the Trump Administration, as we work to fulfill the President’s promise to make America safe again,” said Attorney General Sessions. “The Department of Justice will work with American cities suffering from serious violent crime problems. There is no doubt that there are many strategies that are proven to reduce crime. Our new National Public Safety Partnership program will help these communities build up their own capacity to fight crime, by making use of data-driven, evidence-based strategies tailored to specific local concerns, and by drawing upon the expertise and resources of our Department.”
The Justice Department created PSP and the task force in response to President Trump’s February 9, 2017, Executive Order charging the agency with leading a national effort to combat violent crime. The partnership provides a framework for enhancing federal support of state, local and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking and gang violence.
Twelve sites have been selected to receive this significant assistance:
- Birmingham, Alabama
- Indianapolis, Indiana
- Memphis, Tennessee
- Toledo, Ohio
- Baton Rouge, Louisiana
- Buffalo, New York
- Cincinnati, Ohio
- Houston, Texas
- Jackson, Tennessee
- Kansas City, Missouri
- Lansing, Michigan
- Springfield, Illinois
We anticipate announcing additional sites this calendar year.
The Justice Department agencies involved in PSP are the United States Attorneys’ Offices, Office of Justice Programs; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Drug Enforcement Administration; the Office on Violence Against Women; and the Office of Community Oriented Policing.
For more information about the Department of Justice’s work to reduce violent crime and enhance public safety:
Attorney General Announces Crime Reduction and Public Safety Task Force
Attorney General Sessions Directs Federal Prosecutors to Target Most Significant Violent Offenders
Attorney General Jeff Sessions Announces New Initiatives to Advance Forensic Science and Help Counter the Rise in Violent Crime
Attorney General Jeff Sessions Announces New Actions to Support Law Enforcement and Maintain Public Safety in Indian Country
Department of Justice Releases Report Detailing the Prosecutions of Transnational Criminal Organizations and their Subsidiaries
Attorney General Sessions Issues Charging and Sentencing Guidelines to Federal Prosecutors
"Despicable" Actions Lead to 24 Months in Prison for Former High School PhotographerRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Raymond R. Parmer, Jr., special agent in charge of Homeland Security Investigations New Orleans, announced today that Christian Trey Ashcraft, 42, of Pine Bluff, the owner of Ashven photography and a former high school photographer in the Pine Bluff, Arkansas area, was sentenced to 24 months’ imprisonment for internet stalking.
On January 5, 2016, a federal Grand Jury returned an indictment charging Ashcraft with one count of lying to a federal agent and one count of internet stalking. On February 22, 2017, Ashcraft pleaded guilty to internet stalking. Ashcraft’s conduct spanned from January 2005 to December 2014.
Today, United States District Judge Kristine G. Baker sentenced Ashcraft to 24 months’ imprisonment, three years of supervised release, and a $1,000 fine. In sentencing Ashcraft, Judge Baker told Ashcraft that only one word could describe his almost decade-long actions—“despicable.” The sentence of 24 months was the top end of the advisory federal sentencing guideline range for this crime.
“Ashcraft’s sentence shows that people who commit cowardly acts behind a computer screen will be identified and prosecuted,” Harris said. “I agree with the Court that Ashcraft’s conduct was despicable, and he is now being held accountable for using the internet to torment a young, innocent victim.”
At his change of plea hearing on February 22, 2017, Ashcraft admitted to using the e-mail account [email protected] to send sexually explicit photographs of an adult female he was pretending to be—referred to in the Indictment as J.D.—to several individuals over a significant period of time. Agents then discovered the identity of J.D. and subsequently interviewed her.
During the interview, J.D., who is now in her mid-twenties, disclosed that she met an individual who identified himself as “Chad Reynolds” on a website known as hotornot.com when she was 15-years-old. Between the times J.D. was 15- and 22-years-old, “Chad Reynolds” and J.D. engaged in an online relationship without J.D. ever seeing “Chad Reynolds” in person. J.D. admitted to sending “Chad Reynolds” sexually explicit photographs of herself while she was a minor.
J.D. explained to investigators that after she turned 18, “Chad Reynolds” asked her to take part in a photo shoot at a local hotel. Upon arrival at the hotel, “Chad Reynolds” was not there, but Ashcraft, posing as a photographer friend of “Chad Reynolds,” told J.D. that “Chad” wanted her to start the photo shoot without him. During the photo shoot, the photographer had J.D. take multiple sexually explicit photographs. J.D. identified a photograph of Christian Trey Ashcraft as the photographer.
Soon after the photo shoot, J.D. ended her online relationship with “Chad Reynolds.” After J.D. ended her online relationship, the sexually explicit photographs taken from the hotel room were sent to multiple acquaintances of J.D. from an individual purporting to be J.D. via the [email protected] account.
Ashcraft later admitted to being the user of [email protected] and sending the sexually explicit images of J.D., while pretending to be her. A search of Ashcraft’s computer revealed approximately 800 images of J.D., many of which were sexually explicit.
During the investigation, agents learned that Ashcraft communicated via [email protected] with multiple individuals while he posed as young teenage girls.
This investigation was conducted by the Arkansas State Police and HSI. It is being prosecuted by Assistant United States Attorney Kristin Bryant.
19 June 2017
Woman Pleads Guilty to Medicaid, Social Security, and Food Stamp FraudRead the Press Release
RICHMOND, Va. – A Fredericksburg woman pleaded guilty today to executing several fraud schemes that resulted in a loss of approximately $245,000 to the United States.
According to the statement of facts filed with the plea agreement, Raven M. Zaal, 39, is the mother of a disabled child and the owner of an in-home daycare center in Fredericksburg. Due to her child’s disability, Zaal was able to obtain Medicaid-funded home health aides for her daughter’s personal and respite care from 2011 to 2016, totaling nearly $218,000. Approximately 13 of these aides, however, were really working in Zaal’s daycare center, Raven’s Childcare Connections, while while being paid with Medicaid money intended for the benefit of Zaal’s child. Zaal also defrauded the Social Security Administration by misrepresenting her income to receive $14,665 in SSI benefits on behalf of the disabled daughter. Finally, she similarly defrauded the Food Stamp Program (Supplemental Nutrition Assistance Program) of $14,784 by concealing her income eligibility.
Zaal pleaded guilty to health care fraud, and two counts of theft of government funds. She faces a maximum penalty of 10 years in prison when sentenced on September 22. 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; Mark R. Herring, Virginia Attorney General; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, made the announcement after U.S. District Judge John A. Gibney, Jr., accepted the plea. Assistant U.S. Attorney David T. Maguire and Special Assistant U.S. Attorneys David W. Tooker and Patrick A. McDade are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-48.
Wilkes-Barre Man Sentenced to 13 Months for Conspiring to Distribute HeroinRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Judge A. Richard Caputo sentenced Davon Beckford, age 23, of Wilkes-Barre, Pennsylvania on June 16, 2017, to a time-served sentence of 13 months of imprisonment, for conspiring to distribute heroin.
According to United States Attorney Bruce D. Brandler, Beckford pleaded guilty to conspiring to distribute heroin in February and March 2016. Beckford was charged with five other individuals in May 2016. Beckford was subject to a sentencing enhancement because his offense involved the possession of a firearm.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and by the Luzerne County Drug Task Force. The case was prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wheeling man indicted on failure to update his sex offender registryRead the Press Release
WHEELING, WEST VIRGINIA - A Wheeling man was arraigned today on a charge of failing to update his sex offender registration after being indicted by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Jeremy Crinkey, age 40, was indicted on one count of “Failure to Update Registration as a Sex Offender.” Crinkey, having previously being convicted of Possession of Child Pornography in U.S. District Court, Northern District of West Virginia, allegedly failed to update his registry to his North 8th Street, Wheeling, address. The crime is alleged to have occurred from March 17, 2017 to May 30, 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Marshal Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James E. Seibert presided.
West Des Moines Man Pleads Guilty to Providing False Documents during Civil False Claims Act Investigation and Agrees to Pay Almost $900,000 to Resolve the Civil InvestigationRead the Press Release
A durable medical equipment store owner who provided false documents to the United States Attorney’s Office during a civil False Claims Act investigation pled guilty today in federal court in Cedar Rapids.
James O’Connor, 64, from West Des Moines, Iowa, was convicted of one count of Making and Using False Documents, in violation of 18 U.S.C. § 1001(a)(3).
In a plea agreement, O’Connor, who operated O’Connor Medical Supply, Inc., in Clive, agreed that he provided a false document to the United States Attorney’s Office in response to a Civil Investigative Demand the office issued in conjunction with a civil False Claims Act investigation. Specifically, O’Connor admitted to providing a false Letter of Medical Necessity intended to conceal the fact that he previously submitted a claim to Medicare for a more complex and more expensive orthotic device than what he actually provided to a Medicare beneficiary. O’Connor further admitted that, for purposes of sentencing, he caused nearly $350,000 in loss.
O’Connor also entered into a settlement agreement to resolve the United States’ civil False Claims Act investigation. As part of that investigation, the United States alleged that O’Connor submitted claims to Medicare and Medicaid for four more expensive models of durable medical equipment than what he actually provided to beneficiaries: ankle foot orthoses, walking boots, knee braces, and wrist finger orthoses. O’Connor agreed to pay $898,523.08 to resolve these allegations.
In addition, because a private citizen, known as a relator, filed a tam, or whistleblower, lawsuit raising the civil allegations, O’Connor agreed to pay the relator’s law firm an additional $51,476.92 in fees. The relator is also entitled to receive $224,630.77 (25%) of the nearly $900,000 recovery pursuant to the tam provisions of the False Claims Act. Those provisions permit private individuals with knowledge of wrongdoing to bring suit on behalf of the government for false claims and share in any recovery.
“This result shows that our office will use every available tool to ensure Medicare and Medicaid beneficiaries receive the care to which they are entitled and government funds are well spent,” said Acting United States Attorney Sean R. Berry. “Our office encourages citizens to report fraudulent conduct by health care providers to help us ensure fair and efficient health systems throughout the district. Targets of those investigations are on notice that we will not tolerate any dishonesty or fraudulent activity during the course of an investigation.”
Steve Hanson, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Kansas City Region, stated, “In order to protect our Medicare and Medicaid programs from unscrupulous health care providers, our office will continue to work with our law enforcement partners to pursue those who overbill our programs for services they did not provide to our beneficiaries.”
This case is one of more than 20 monetary settlements reached with health care providers by the United States Attorney’s Office for the Northern District of Iowa since June 2013. It is also the second successful resolution of a qui tam lawsuit during this period. In both instances private parties shared in the government’s recovery.
For the criminal matter, sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. O’Connor remains free on bond previously set. O’Connor faces a possible maximum sentence of 5 years’ imprisonment; a fine equal to the greater of twice the gross gain to defendant resulting from the offense, twice the gross loss resulting from the offense, or $250,000; a $100 special assessment; and 3 years of supervised release following any imprisonment.
The criminal case is being prosecuted by Assistant United States Attorney Timothy Vavricek, and the civil matter was handled by Assistant United States Attorney Jacob Schunk. The case was investigated by the United States Department of Health and Human Services, the Federal Bureau of Investigation, and the State of Iowa’s Medicaid Fraud Control Unit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-39.
Follow us on Twitter @USAO_NDIA.
Union County Man Sentenced to Six Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – Sean C. Hammond, 29, of Monroe, N.C. was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 72 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Hammond was also ordered to serve a lifetime of supervised release and to register as a sex offender.
Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas joins U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on March 27, 2015, law enforcement became aware that an individual, later identified as Hammond, was sharing child pornography on the Internet using a peer-to-peer network. During subsequent searches, law enforcement seized Hammond’s electronic devices, including a computer and a cellphone. Forensic analyses of those devices revealed that Hammond possessed more than 700 images and 67 videos of child pornography, some of which depicted prepubescent minors engaging in sexual conduct.
Hammond pleaded guilty in November 2016 to one count of receipt and one count of possession of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked HSI for their investigation of this case. Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Topeka Man Pleads Guilty to Robbery at Casey’s General StoreRead the Press Release
WICHITA, KAN. - A Topeka man pleaded guilty Monday to robbing a Casey’s General Store, U.S. Attorney Tom Beall said.
Maroleno Devon Ryland, 34, Topeka, Kan., pleaded guilty to as charged to one count of commercial robbery. On Feb. 2, 2017, an employee of Casey’s General Store at 600 S.E. Rice Road in Topeka reported a man with a gun threatened to kill him unless he turned over store deposits he was taking to the bank. Soon after the robbery, a Topeka police officer saw Ryland and co-defendant Christopher Allen Bush, 26, Topeka, Kan., sitting in a vehicle together. Later, police stopped another car in which Ryland was a passenger. They arrested Ryland and seized cash from the robbery.
Co-defendant Bush is set for a change of plea hearing June 26.
Sentencing is set for Sept. 18. He faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Lake City Residents Plead Guilty to Narcotics and Firearms ChargesRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces that Lake City residents Latoshia Nicole Shade (41), James Terrence White (36), and Willie Lee Simmons, Jr. (31) have pleaded guilty to federal narcotics and firearms charges. Shade pleaded guilty to possessing ammunition as a convicted felon and to distributing cocaine. She faces a maximum penalty of 10 years in federal prison for the ammunition offense and up to 20 years’ imprisonment for the drug distribution charge. White pleaded guilty to possessing with the intent to distribute cocaine, possessing with the intent to distribute crack cocaine, and maintaining a place for the purpose of distributing drugs; he faces up to 20 years in federal prison on each count. And, Simmons pleaded guilty to possessing a firearm as convicted felon and faces a maximum penalty of 10 years in federal prison.
According to the plea agreements, in the fall of 2016, Shade was introduced to an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). On December 8, 2016, she sold a box of ammunition and approximately one ounce of cocaine to that agent. Shade had obtained the cocaine from White, who operated a barbecue stand in Lake City, Florida. Shade and White sold approximately one ounce of cocaine to the undercover agent on two additional occasions.
On February 2, 2017, law enforcement officers executed a search warrant at a shed adjacent to White’s barbecue stand and found that he was using the shed to store cocaine and crack cocaine, as well as narcotics manufacturing and packaging equipment. Officers recovered $2,975 in cash from the shed and $5,623 from White.
Shade also had introduced a person to Simmons who, unbeknownst to her, was a confidential informant (CI) working for ATF. In November 2016, Simmons sold Alpha-PVP, also known as “flakka” or “gravel,” to the CI on two occasions. On November 8, 2016, Simmons sold a .357 caliber revolver to the CI and, a few weeks later, he informed the CI that he had a second firearm to sell. The CI introduced Simmons to the undercover agent and, the next day, Simmons sold the agent a.40 caliber semiautomatic handgun.
At the time of the offenses, Shade and Simmons both had prior felony convictions and were therefore prohibited from possessing firearms or ammunition under federal law. Shade’s previous felony convictions include aggravated assault with a deadly weapon, retaliating against a witness, and sale of cocaine. Simmons had a prior felony conviction for assault with a deadly weapon.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in conjunction with the Columbia County Sheriff’s Office and the Lake City Police Department. The cases are being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
These cases are being prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Three Defendants Indicted in One of Nation’s Largest-Ever Fentanyl SeizuresRead the Press Release
Assistant U.S. Attorney Jarad E. Hodes (619) 546-7432
NEWS RELEASE SUMMARY – June 19, 2017
SAN DIEGO – A long-term investigation by the U.S. Drug Enforcement Administration has led to one of the nation’s largest seizures of the deadly synthetic opiate fentanyl and a federal indictment against three alleged traffickers.
According to the indictment unsealed today, Jonathan Ibarra, Hector Fernando Garcia and Anna Baker are charged with possession of 44.14 kilograms of fentanyl with the intent to distribute. Most of the fentanyl was seized from a house in Lemon Grove.
According to a search warrant affidavit, the defendants discussed the transportation of a then-unidentified controlled substance. On November 30, 2016, Ibarra received instructions to have a female courier, later identified as Baker, transport the narcotics in three separate trips on consecutive days.
Based on this information, agents requested a traffic stop of Baker’s rented vehicle and seized about 15 kilograms of a substance later determined to be fentanyl. Law enforcement officers then obtained a search warrant for Baker’s residence, where they found about 30 additional kilograms of the same substance.
Drug traffickers use the pure fentanyl powder to increase the potency of heroin or to manufacture counterfeit opioid painkillers that resemble oxycodone. Due to fentanyl’s extreme potency - up to 50 times stronger than heroin - deaths from fentanyl-laced heroin and counterfeit pills are epidemic in the United States. Considering that just 3 milligrams is enough to kill an adult male, the 44.14 kilogram seizure represents over 14 million lethal doses. The attached photo, prepared by the San Diego County Medical Examiner, shows the lethal dose of fentanyl on a penny.
The defendants were arraigned on the indictment today before U.S. Magistrate Judge Barbara L. Major.
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
*The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Jonathan Ibarra Age: 45 Lemon Grove, California
Hector Fernando Garcia Age: 46 San Diego, California
Anna Baker Age: 30 Lemon Grove, California
SUMMARY OF CHARGES
Possession of Fentanyl with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life in prison and $10,000,000 fine
AGENCY
United States Drug Enforcement Administration
Texas man indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Houston, Texas man was arraigned today on an illegal firearm charge after being indicted by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Corey Letroit Joseph Riggs, age 40, was indicted on one count of “Unlawful Possession of a Firearm.” Riggs, having previously being convicted of a felonies in the Circuit Court of Harris County, Texas, was allegedly in possession of .40 caliber Glock pistol. The crime is alleged to have occurred April 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James E. Seibert presided.
Tax Preparers and Recruiter Who Preyed on Immigrants Sentenced to PrisonRead the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619) 546-7951
NEWS RELEASE SUMMARY – June 19, 2017
SAN DIEGO – Two local tax preparers and their recruiter were sentenced today in federal court to 30 months in prison for their involvement in a tax preparation scam that resulted in the filing of hundreds of false returns, the theft of dozens of victims’ personal information and the receipt of more than $882,000 in bogus federal income tax refunds.
U.S. District Judge Roger T. Benitez sentenced Rahim Ali Cummings and Rashad Abdul-Rahim for conspiring to commit mail fraud, file false claims for tax refunds, fraudulent use of a Social Security number (SSN) and aggravated identity theft; Ebrahim Ashamu was sentenced for filing false claims for tax refunds and aggravated identity theft. Each of the defendants has been in custody since last year.
As detailed in their plea agreements, between September 2011 and September 2012, Cummings and Ashamu prepared and filed the false tax returns out of their businesses in El Cajon, California, and employed the services of Abdul-Rahim to recruit customers and obtain stolen identities. Abdul-Rahim solicited and obtained the personal identifying information from the victims using false pretenses, such as informing the victims they could obtain “free” government money from alleged grant and senior programs, and concealing the fact that their personal information would be used to file false tax returns.
Abdul-Rahim then provided Cummings and Ashamu with the personal information of the victims, which they used to prepare and file the false tax returns with the Internal Revenue Service (IRS). An investigation by IRS, Criminal Investigation and the United States Secret Service showed that Cummings, Ashamu, and Abdul-Rhaim defrauded customers from their ethnic community, many of whom were immigrants from countries such as Somalia and Nigeria who knew very little, if anything, about the United States tax laws.
Cummings, Ashamu, and Abdul-Rahim did not shy away from personally profiting from their fraudulent scheme. Each defendant directed the fraudulent tax refunds to be deposited into bank accounts under their control and ordered U.S. Treasury checks to be mailed to addresses under their control. In particular, Cummings received approximately $470,042 in fraudulent refunds deposited into bank accounts he controlled. Ashamu received approximately $367,631. Abdul-Rahim received approximately $44,937 in fraudulent refunds and additional cash payments from Cummings and Ashamu for providing the victims’ personal information. As a result of their crimes, Cummings, Ashamu and Abdul-Rahim caused approximately $882,610 in losses to the IRS. Each defendant has been ordered to make full restitution to the IRS for the total amount of false refunds they each received.
Following today’s sentencing hearing, Cummings, Ashamu, and Abdul-Rahim will be permanently enjoined from preparing or filing federal income tax returns for anyone other than themselves. A civil complaint will be filed against them, and a permanent injunction will be entered to prevent Cummings, Ashamu and Abdul-Rahim from acting as a tax preparer in the future.
“This type of fraud increases the burden on honest taxpayers and negatively impacts honest citizens’ confidence in our tax system,” said Acting U.S. Attorney Alana W. Robinson. “The combination of tax fraud and identity theft continues to be a challenging law enforcement problem. Unscrupulous tax preparers and their associates should take notice: if you defraud the IRS and unsuspecting members of the public, law enforcement will bring you to justice and seek to hold you accountable.”
“Today, justice is served, and these three individuals are being held accountable for their criminal actions,” stated R. Damon Rowe, Special Agent in Charge for IRS Criminal Investigation. “IRS special agents work diligently to identify and bring to prosecution those who use taxpayer’s personal identifying information to file fraudulent tax returns. It’s a matter of maintaining public confidence in the integrity of the U.S. tax system and protecting the identities of those we serve.”
“Identity theft and the unauthorized use of individuals’ personal identifying information continues to impose significant financial harm to American citizens and businesses,” said David J. Murray, Special Agent-in-Charge of the San Diego Field Office of the Secret Service. “The sentences imposed today should be a reminder that the United States Secret Service will continue to collaborate with its law enforcement partners and the United States Attorney’s Office to arrest and prosecute criminals who take advantage of innocent victims for their own economic gain.”
The public is reminded that tax-related identity theft occurs when someone uses your stolen SSN (or the SSN of a dependent) to file a tax return claiming a fraudulent refund. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
• Respond immediately to any IRS notice; call the number provided.
• Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN. Attach the competed form to your return and mail according to instructions.
• Continue to pay your taxes and file your tax return, even if you must do so by paper.
• If you previously contacted the IRS and did not have a resolution, you may contact them for specialized assistance at 1-800-908-4490.
Link: The link to IRS Form 14039 = https://www.irs.gov/pub/irs-pdf/f14039.pdf
DEFENDANTS Criminal Case No. 16CR0768-BEN
Rahim Ali Cummings Age: 47 Detroit, Michigan
Ebrahim Ashamu Age: 58 El Cajon, California
Rashad Abdul-Rahim Age: 46 El Cajon, California
CHARGES THAT DEFENDANTS CUMMINGS AND ABDUL-RAHIM SENTENCED ON:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to Commit Mail Fraud, File False Claims, Fraudulently Use a Social Security Number of Another, and Aggravated Identity Theft
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
CHARGES THAT DEFENDANT ASHAMU SENTENCED ON:
Count 33 – Title 18, United States Code, Section 287 B Filing False, Fictitious and Fraudulent Claims
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
Count 56 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: Mandatory 2-year sentence, to be served consecutive to any other prison term, $250,000 fine, 3 years of supervised release.
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Taft Resident Sentenced to over 7 Years in Prison for Running Marijuana Cultivation Operations in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Juan Penaloza-Ramirez (Penaloza), 46, a native and citizen of Michoacán, Mexico, residing in Taft, today to seven years and three months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana that was grown at three separate marijuana cultivation sites in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.
In sentencing Penaloza, Judge Drozd ordered the forfeiture of the seized cash, firearms and ammunition seized during the investigation, and he ordered Penaloza to pay $10,198 in restitution to the U.S. Forest Service for the damage to public land and natural resources caused by his cultivation activities.
Penaloza’s sentence follows his guilty plea earlier this year. According to court documents, Penaloza employed growers, deliverymen, and others to cultivate marijuana in Tulare and Kern Counties in the Sequoia National Forest. The grow sites were located at Fay Creek and Brush Creek, tributaries of the Kern River, and the Needles, a series of massive granite rock formations near the North Fork of the Kern River. Every winter, Penaloza traveled to Mexico to recruit people to grow marijuana on public lands in the United States.
At the Fay Creek grow site, law enforcement officers seized 3,151 marijuana plants. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream.
The Brush Creek grow site contained 2,719 marijuana plants. To make room for the marijuana plants, the growers had eradicated new vegetation and trees that sprouted after the 2002 McNally Fire. Law enforcement officers found large piles of trash stuffed between boulders and buried along a stream. The officers also found toxic pesticides and fertilizers spread throughout the 10-acre site.
The Needles grow site contained 2,608 marijuana plants. In addition to the presence of toxic chemicals and waste, officers found that the water source for the marijuana plants was a spring that drains into the Upper Kern River.
Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition during follow-up searches of the residences of Penaloza and co-defendant Russell Lee Riggs, 69, of Weldon, another supplier to the Fay Creek site. Riggs pleaded guilty last week and is scheduled for sentencing on September 11, 2017.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration (DEA), the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Swanzey Man Sentenced to 42 Months in Federal Prison for Possessng Child PornographyRead the Press Release
CONCORD, N.H. – Dale Edson, 30, of Swanzey, New Hampshire, was sentenced to serve 42 months in federal prison for possessing child pornography, announced Acting United States Attorney John J. Farley.
According to court documents and statements in court, law enforcement received information in July 2015 that potential child pornography images had been uploaded to a cloud storage service from a phone number associated with Edson. After establishing that the phone number was used by Edson, law enforcement obtained a search warrant for Edson’s residence. On September 9, 2015, the police executed the warrant and, based on a preliminary forensic review conducted at the residence, seized three computers and other devices. A forensic examination of two laptop computers established that images of child pornography were found on each computer. An examination of a tablet used by Edson established that images of child pornography were found on the tablet.
Edson pleaded guilty to possessing child pornography in March. After he is released from prison, Edson will be on supervised release for five years.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Hinsdale Police Department and the Department of Homeland Security, Homeland Security Investigations, with assistance from the Swanzey Police Department, the Bedford Police Department, the Nashua Police Department, the Portsmouth Police Department, the Rochester Police Department, and the Interstate Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Donald Feith.
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Springfield Church Music Director Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that the former music director of a Springfield, Mo., church has been indicted by a federal grand jury for receiving and distributing child pornography over the Internet.
Craig A. Wieneke, 31, of Springfield, was charged in an indictment returned under seal by a federal grand jury in Springfield on June 13, 2017. That indictment was unsealed and made public today upon Wieneke’s arrest and initial court appearance. Wieneke remains in federal custody pending a detention hearing.
The federal indictment alleges that Wieneke received and distributed child pornography over the Internet between Nov. 10, 2016, and April 4, 2017. Wieneke was the music director at Ridgecrest Baptist Church in Springfield at the time of the alleged offense.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Springfield, Mo., Police Department and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spencer woman sentenced to federal prison for defrauding the United WayRead the Press Release
CHARLESTON, W.Va. – A Spencer woman was sentenced today to six months in federal prison for defrauding the United Way, announced United States Attorney Carol Casto. Rhonda Kelley Conrad, 49, previously pleaded guilty to credit card fraud. She was also ordered to pay a $3,000 fine and $10,684.99 in restitution to the United Way of Central West Virginia.
Conrad admitted that while she worked for the United Way of Central West Virginia in Charleston, she took a number of company credit cards and fraudulently charged goods and services for herself. From June to December of 2014, she admitted that she charged more than $6,000 in goods and services that she was not entitled to receive. Conrad further admitted that she used the credit cards to pay bills and to charge goods at stores such as Kmart and Sam’s Club. Additionally, Conrad admitted that she set up false accounts within the United Way electronic payment system. Conrad used these false accounts to fraudulently transfer more than $4,000 to her personal bank account. Conrad admitted that she had no authorization to use the credit cards or to electronically transfer the money from the United Way.
The Federal Bureau of Investigation and the Charleston Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
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Simpson County, Kentucky Resident Guilty of Making and Possessing Illegal Firearms (Molotov Cocktails)Read the Press Release
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty plea of a Simpson County, Kentucky resident, to charges of making and possessing illegal firearms, commonly known as Molotov cocktails, before United States District Judge Greg N. Stivers, on Friday, June 16, 2017, in United States District Court.
Trey Alexander Gwathney-Law, 20, of Franklin, Kentucky, pleaded guilty to counts one and two of a superseding indictment and was remanded to the custody of the United States Marshal Service pending sentencing on October 11, 2017, in Bowling Green.
In court Friday, Gwathney-Law admitted to making and possessing five illegal firearms.
Specifically, according to the plea agreement, on September 27, 2015, Gwathney-Law knowingly made five illegal firearms. All were made using glass bottles. Four of the bottles (one Mountain Dew, one Sprite, and two Dr. Pepper) contained a dark gas/oil mixture liquid with a cloth wick stuffed in the bottle opening. Commonly referred to as a Molotov cocktail. A fifth, illegal firearm was made using a glass Root Beer bottle and contained a dark gas/oil mixture liquid with a piece of green pyrotechnic fuse attached to the opening with an epoxy sealant. The bottle contained a silver CO2 cartridge in the top of the bottle, under the pyrotechnic fuse. The CO2 cartridge contained explosive powder and small pieces of paper which appeared to have been soaked in the same flammable liquid found inside the bottle. Commonly referred to as a Molotov cocktail. Further, Gwathney-Law admitted to possessing the illegal firearms.
At sentencing, the United States will move to dismiss counts three and counts four of the superseding indictment and agree that a sentence of 20 years, followed by a three year period of supervised release is the appropriate disposition in this case.
This case is being prosecuted by Assistant United States Attorney Jo Lawless and is being investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP) and the Franklin, Kentucky Police Department.
gwathney-law_plea_agreement_1.pdfSilver Spring Sex Offender Sentenced to 25 years in Federal Prison for Production of Child PornographyRead the Press Release
June 19, 2017
FOR IMMEDIATE RELEASE Contact Elizabeth Morse www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On June 19, 2017, U.S. District Judge Paul W. Grimm sentenced Clarence Henry Andrews, age 28, of Silver Spring, Maryland, to 25 years in prison, followed by lifetime supervised release, for production of child pornography.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
Andrews is a registered sex offender as a result of a 2011 conviction in Prince George’s County Circuit Court for fourth degree sex offense and second degree assault, in connection with his abuse of a nine-year-old boy in the bathroom of a church located in Laurel, Maryland.
According to his plea agreement, in March 2015, Andrews communicated with an 11-year-old male residing in Georgia, via a video game system, Skype, FaceTime, text messages, and telephone. During the course of the communications, Andrews promised to provide the male minor with Advanced Warfare, a video game, in exchange for sexually explicit images and videos of the victim. At times, Andrews invoked religion in order to persuade the minor to produce and share sexually explicit images and videos. Andrews admitted that between approximately 2013 and April 2015, Andrews – using similar means and pattern of conduct – attempted to coerce at least eight additional victims aged 16 and younger to produce images and videos of sexually explicit conduct.
In addition, Andrews admitted that between April 2013 and October 2014, Andrews befriended, through church, a family with an eight-to-nine-year-old female and a seven-to-eight-year-old male, residing in Maryland. Andrews visited the family’s home on several occasions. On one occasion Andrews took the female victim to a downstairs bathroom in the home, told her he would give her cash if she pulled down her pants, and touched and photographed the child’s buttocks. On other occasions while visiting the family, Andrews took the male victim to the downstairs bathroom, engaged in sexual conduct and photographed the child’s buttocks. In January 2017, Andrews was sentenced to a total of ten years imprisonment in Montgomery County Circuit Court for this conduct.
Also as part of his plea agreement, Andrews will be required to continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning commended the FBI, Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation, and thanked the Georgia Bureau of Investigation and the Butts County, Georgia, District Attorney’s Office for their assistance. Mr. Schenning thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Menaka S. Kalaskar, who are prosecuting the federal case.
Rutherford County Man Sentenced to Twenty Years in Prison for Crack and Firearms OffensesRead the Press Release
CHATTANOOGA, Tenn. – On June 19, 2017, Allen Carney, 30, of Murfreesboro, Tennessee, was sentenced to serve 240 months in prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Following a March 2017 jury trial, Carney was convicted of possession with intent to distribute crack cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
Upon his release from prison, Carney will be supervised by the U.S. Probation Office for six years. His sentence was enhanced based on four prior drug trafficking convictions.
According to evidence at Carney’s trial, 5.65 grams of crack cocaine, digital scales, and a loaded Glock, Model 27, .40 caliber semi-automatic pistol were seized from the master bedroom of a residence where he was arrested at in March 2016. Carney admitted the crack cocaine and firearm were his. Two young children were present at the residence when he was arrested.
U.S. Attorney Nancy Stallard Harr said, “Carney’s sentence reflects the danger and risk of harm his conduct posed to society. Drug trafficking is an inherently dangerous activity and the combination of drugs and guns substantially increases the risk of physical harm to others.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the investigation, “Today we have removed a dangerous criminal from the streets. This crack dealer will no longer be able to deliver deadly doses of poison to the community. This investigation was a success because of the great working relationship that DEA has with its federal, state and local counterparts.”
The indictment and subsequent conviction of Carney was the result of an investigation conducted by the 17th Judicial Drug Task Force and Drug Enforcement Administration. Assistant U.S. Attorney Michael D. Porter represented the United States.
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Rochester Man Sentenced for Committing Seven Bank RobberiesRead 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 Khiry T. Aiken, 27, of Rochester, NY, who was convicted of bank robbery, was sentenced to 71 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the defendant admitted to robbing three federal credit unions and four banks in the Rochester and Buffalo, NY areas in 2016. Specifically, Aiken admitted to robbing the following financial institutions on the following dates:
• Advantage Federal Credit Union, 1625 Mt. Hope Avenue, Rochester, on April 16, 2016; • Key Bank, 1475 Mt. Hope Avenue, Rochester, on May 25, 2016; • First Niagara Bank, 1989 Clinton Street, Buffalo, on August 9, 2016; • Summit Federal Credit Union, 1660 Monroe Avenue, Brighton, on August 15, 2016; • Northwest Savings Bank, 3517 Union Road, Cheektowaga, on August 24, 2016; • Advantage Federal Credit Union, 1625 Mt. Hope Avenue, Rochester, on August 29, 2016; and
• First Niagara Bank, 3051 Sheridan Drive, Amherst, on September 13, 2016.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Brighton Police Department, under the direction of Chief Mark Henderson; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Amherst Police Department, under the direction of Chief John Askey; and the Cheektowaga Police Department, under the direction of Chief David Zack.Pittsburgh Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
PITTSBURGH – A Pittsburgh resident pleaded guilty in federal court to charges of bank robbery, Acting United States Attorney Soo C. Song announced today.
William Eger, 52, pleaded guilty to three counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Eger walked into the First National Bank in O'Hara Township on November 17, 2015, and handed the teller a note wherein he advised that he had a gun and demanded money. The loss to First National Bank was $2,648. Then on November 21, 2015, Eger walked into the Huntington National Bank in West Mifflin and handed the teller a note demanding money. The loss to Huntington National Bank was $3,216.00.
On November 24, 2015, Eger walked into the First Niagara Bank in the West End section of Pittsburgh holding his finger up and stating that he had a gun. Eger pulled up his shirt, exposing his waistband area, but when the teller did not see a gun, she advised Eger to leave. Eger then fled the bank without receiving any cash. Police responded to the scene; and, after a brief foot chase, Eger was apprehended and confessed to the robberies. As part of the investigation, agents recovered the notebook that Eger used to write the Huntington National Bank robbery note, as well as a hooded jacket and jeans which matched the description of the items Eger was seen wearing in the bank surveillance video.
Judge Bissoon scheduled sentencing for October 2, 2017. The law provides for a maximum total sentence of 25 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Bissoon ordered that Eger remain in custody.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Northern Regional Police Department conducted the investigation leading to the prosecution of Eger.
Organized Crime Drug Enforcement Task Force Successfully Prosecutes Convicted Felon for Illegally Possessing Stolen FirearmsRead the Press Release
United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Judge William H. Steele sentenced Anthony O’Brien Barlow on June 15, 2017 to serve a term of imprisonment of 65 months. Barlow was convicted of illegally possessing firearms as a felon on January 4, 2017 in violation of 18 USC § 922(g)(1). The investigation revealed that the defendant attempted to sell multiple stolen firearms. The firearms illegally possessed included a Glock GMBH, .40 caliber pistol, model 27, a Lucznik, Fabryka Broni, Makarov, 9 mm pistol, model P64, a H&K, .22 caliber rifle with silencer, model MP5, and a Ruger, .223 caliber rifle, model Mini 14. The defendant entered a guilty plea before the Court on March 16, 2017.
This prosecution is part of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and related crimes. It is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Robert F. Lasky, Special Agent in Charge of the Federal Bureau of Investigation’s Mobile Division stated, "This type of dangerous behavior can only be stopped with a joint effort. We are committed to supporting and assisting our state and local partners in making our community safe for everyone."
The case was investigated by the Federal Bureau of Investigation (FBI), the Foley Police Department, the Summerdale Police Department, the Baldwin County Drug Task Force, and the Safe Streets Task Force. The case was prosecuted for the United States Attorney’s Office for the Southern District of Alabama by OCDEFT Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard.
Operation "Real Time": Greenville Man Enters Guilty Plea in Federal Court on Charges of Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Courtney Eugene Harris, age 37, of Greenville, South Carolina, pled guilty in federal court in Greenville, for possessing a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. 924(c). United States District Court Judge Timothy Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office. Harris faces a statutory mandatory minimum of 5 years in federal prison and a maximum of life.
Evidence presented by the government during the plea established that on April 7, 2017, agents with United States Probation conducted a home visit at the Harris’ residence in Greenville. When the agents arrived, they were met in the yard by Harris. The agents observed Harris holding latex gloves and his shirt was covered in white powder. After Harris invited them into his home, agents observed white powder covering the kitchen counter along with several small baggies located beside the white powder. Agents then called the Greenville County Sheriff’s Office (GCSO) for assistance.
After GCSO arrived and advised Harris of his rights, Harris told GCSO that the substance observed in the kitchen earlier by US Probation agents was cocaine that he was mixing with caffeine. Pursuant to a search warrant obtained by GCSO, deputies seized the substance, which field-tested positive as cocaine, as well as more cocaine and a 9mm pistol from Harris’ bedroom
Harris was arrested federally as part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate.
In addition to the GCSO and ATF, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the FBI, the DEA, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office, the U.S. Probation Office, and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
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One Albuquerque Resident Pleads Guilty and One More Sentenced on Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – One Albuquerque resident pled guilty and one was sentenced today in federal court in Albuquerque, N.M., for violating federal drug trafficking laws. Chere Juarez, 28, of Albuquerque, N.M., pled guilty today to a methamphetamine trafficking charge. Leo Lopez, 28, was sentenced to 60 months in prison followed by four years of supervised release for his methamphetamine trafficking conviction.
Juarez and Lopez were charged as the result of an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Juarez and her codefendant David Rayford, 25, were charged in a three-count indictment on June 30, 2016. Rayford and Juarez were charged with distribution of methamphetamine on June 7, 2016, and June 14, 2016, and Rayford was charged individually with being a felon in possession of a firearm on May 27, 2016. According to the indictment, the offenses took place in Bernalillo County.
During today’s proceedings, Juarez pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Juarez admitted that on June 14, 2016, she sold approximately two ounces of methamphetamine to an undercover law enforcement agent. At sentencing, Juarez faces a maximum penalty of 20 years in federal prison. She remains in custody pending a sentencing hearing which has yet to be scheduled.
Lopez’s codefendant Felix Ulibarri, 39, was indicted on July 28, 2016, and was charged with distributing methamphetamine on July 11, 2016. The indictment subsequently was superseded on Aug. 9, 2016, to add Lopez, Joseph Sena, 40, and Jennifer Padilla, 39. The superseding indictment charged Ulibarri and Padilla with participating in a conspiracy to distribute methamphetamine in July 2016; Lopez, Sena and Padilla with participating in a different conspiracy to distribute methamphetamine in July 2016; Ulibarri with distributing methamphetamine on July 11, 2016; and Sena with distributing methamphetamine on July 26, 2016. According to the indictment, the defendants committed the crimes in Bernalillo County.
On March 20, 2017, Lopez pled guilty to conspiring to distribute methamphetamine, and admitted that on July 26, 2016, he helped arrange a methamphetamine transaction between Sena, Padilla and himself.
To date, 55 of the 104 defendants have entered guilty pleas, including Sena, and 20 have been sentenced. The remaining defendants, including Rayford, Ulibarri and Padilla have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF. The case against Juarez is being prosecuted by Assistant U.S. Attorneys David M. Walsh and Norman Cairns. The case against Lopez is being prosecuted by Assistant U.S. Attorney Edward Han.
Ohio woman indicted on firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA - A Dennison, Ohio woman was arraigned today on an illegal firearm charge after being indicted by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Erin Marie Rudolph, age 24, was indicted on one count of “Unlawful Possession of a Firearm.” Rudolph, having previously being convicted of a felony in the Circuit Court of Ohio County, was allegedly in possession of .22 caliber pistol with an obliterated serial number. The crime is alleged to have occurred May 10, 2017 in Ohio County.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James E. Seibert presided.
North Texas Man Guilty of Committing Perjury in East Texas TrialRead the Press Release
TYLER, Texas – A 56-year-old North Texas man has pleaded guilty to committing perjury in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Albert Davis, formerly of Richardson, Texas, pleaded guilty to making false declarations before the court today before U.S. Magistrate Judge John D. Love.
According to information presented in court, in 2011, Davis, through his company, LBDS Holding Company, LLC, filed a federal suit against South Korean-company ISOL Technology, Inc. (LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428) in the Eastern District of Texas, alleging breach of contract, trade secret misappropriation, and unfair competition. During the 2014 trial of the case, Davis and his co-defendant and former business partner, David Hernon, 56, of Fishers, Indiana, testified falsely about business dealings with Cerner Corporation and offered false exhibits to support LBDS’s claim for damages. At the conclusion of the trial, the jury awarded LBDS a verdict of $25 million. When the perjury was discovered, attorneys for ISOL filed an emergency motion for sanctions against LBDS. The district court vacated the verdict, dismissed LBDS’s case with prejudice, and awarded ISOL $738,706.47 in attorney’s fees.
In 2015, Davis and Hernon were charged in the Eastern District of Texas with making false declarations before court. Hernon pleaded guilty on December 29, 2015, and on July 13, 2017, he was sentenced to 15 months in federal prison by U.S. District Judge Thad Heartfield.
Davis, David Tayce, 67, of Lucas, Texas, Hernon, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were charged in a related case in the Western District of Missouri for conspiring to commit wire fraud. From August 25, 2008 to February 19, 2015, Davis and his co-conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
On April 24, 2017, Davis, was sentenced by U.S. Chief District Judge Greg Kays in the Western District of Missouri to 12 years in federal prison. The court also ordered Davis to pay $19,151,555 in restitution to the victims of the fraud scheme.
On April 25, 2017, Tayce, Hernon, Richard Bryant, and Christina Bryant were sentenced in separate appearances before Judge Kays. Tayce was sentenced to six years and six months in federal prison and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
In a related matter, in the summer of 2013, Davis and Tayce, approached Community Trust Bank regarding financing for iHeart Care cardiovascular surgical centers that Davis and Tayce planned to develop across North Texas. The plan, as outlined by Davis and Tayce, was to open multiple iHeart cardiovascular surgical centers and team up with physicians at each location who would invest in the surgical centers and refer patients to the cardiovascular practices. Over the course of the next year, Davis, Tayce, and Rachelle Dashner, 44, of Dallas, Texas, prepared loan documents related to various iHeart Care locations in Denton, Ennis, Mesquite, and Mansfield. Davis, Tayce, and Dashner identified numerous physicians as guarantors in the loan documents without the physicians’ knowledge and authorization. The loan documents were submitted to Community Trust Bank, and based upon various false and fraudulent representations, Community Trust Bank funded numerous loans to iHeart. In many instances, the iHeart facilities for which financing was obtained were never built or made operational. In total, Davis, Tayce, and Dashner submitted fraudulent loan documents to Community Trust Bank and secured five fraudulent loans totaling over $7,500,000.
Dashner was charged in the Eastern District of Texas with conspiracy to commit bank fraud. She pleaded guilty on May 18, 2017. At sentencing, Dashner faces up to five years in federal prison.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld, in cooperation with Assistant U.S. Attorney Matthew P. Wolesky of the Western District of Missouri and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas.
Newport Resident Pleads Guilty to Drug TraffickingRead the Press Release
PROVIDENCE – Pedro Jimenez-Rodriguez, 41, of Newport, pleaded guilty in federal court in Providence today to possession with the intent to distribute 500 grams or more cocaine. According to a plea agreement filed in this matter, the government will recommend a term of imprisonment of 72 months when Jimenez-Rodriguez is sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 31, 2017.
Pedro Jimenez-Rodriguez’s guilty plea is announced by Acting United States Attorney Stephen G. Dambruch; Newport Police Chief Gary T. Silva; Sean M. Boyce, Team Leader of the Providence U.S. Postal Inspection Service field office; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) New England field division.
According to information presented to the court, in late 2016, the Newport Police Department, U.S. Postal Inspection Service and the R.I. DEA Drug Task Force were investigating Jimenez-Rodriguez’s drug trafficking activity. On January 10, 2017, a U.S. Postal Inspector learned that a package was being shipped from Puerto Rico to Jimenez-Rodriguez’s Newport residence. On January 12, 2017, the package arrived at the Providence Postal Office, and a Cranston Police K-9 indicated the presence of narcotics inside the package. A federal search warrant was obtained, and an examination of the contents of the package resulted in the discovery of 1.13 kilograms of cocaine stuffed inside a pink children’s ottoman. The package was resealed and a controlled delivery of the package by a U.S. Postal Service Inspector was scheduled.
On January 13, 2017, a U.S. Postal Inspector delivered the package to Pedro Jimenez-Rodriguez. Shortly after he took custody of the package, Newport Police and members of the R.I. DEA Drug Task Force executed a court authorized search of Jimenez-Rodriguez’s residence. The ottoman containing the cocaine was seized, along with various items used in the packaging and distribution of cocaine, an electronic money counter and $3,055 in cash.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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New Hampshire man indicted on bank fraud chargesRead the Press Release
WHEELING, WEST VIRGINIA - A Dover, New Hampshire man was arrested over the weekend after being indicted on bank fraud charges by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Kelvin L. Potter, age 36, was indicted on ten counts of “Bank Fraud.” Potter allegedly devised a scheme through which he allegedly intended to obtain approximately $69,000 from an account at Chase Bank belonging to Velco, Inc., which holds the business account of Vocelli Pizza in Wheeling. The crimes are alleged to have occurred from May 2015 to November 2015.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Monroe Businessman Pleads Guilty to Tax ChargeRead the Press Release
David Wandell, of Monroe, owner and operator of Wandell’s Working Crew, pleaded guilty to an information charging him with one count of filing a false 2010 federal tax return, signed under penalties of perjury, Acting United States Attorney Daniel L. Lemisch announced today.
Mr. Lemisch was joined in the announcement by Manny Muriel, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division.
According to court records, Wandell filed a joint 2010 federal tax return with the IRS, signed under penalties of perjury, reporting only $175,000 in gross income and paying $4,400 in taxes, while materially underreporting his gross income from his Schedule “C” business, Wandell’s Working Crew. Wandell continued this pattern in 2011 and 2012, causing a total tax loss for all three years of over $186,303. As part of the plea agreement, Wandell has agreed to allow seized U.S. collectible coins and currency, valued at over $74,000, to be applied directly to the IRS in payment for his outstanding tax debt.
"The vast majority of Americans recognizes their legal responsibilities, properly report, and pay over their tax obligation,” stated Special Agent in Charge Muriel. “But for those who willfully cheat, you will get the full attention of IRS Criminal Investigation, which may lead to serious and costly consequence.”
Filing a false federal tax return, signed under penalties of perjury, carries a maximum penalty of 3 years imprisonment and a fine of $250,000.
Sentencing has been scheduled for October 24, 2017 at 1:30 p.m. in front of United States District Court Judge Robert H. Cleland.
Acting United States Attorney Lemisch thanked the IRS Criminal Investigation for the investigation of the case.
Mexican national sentenced to nearly 17 years in federal prison for role in international drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Mexican national was sentenced today to 16 years and eight months in federal prison for his role in an international drug conspiracy, announced United States Attorney Carol Casto. Moises Gamboa, 52, of Rocky Point, Mexico, previously pleaded guilty to aiding and abetting the possession with intent to distribute 100 kilograms or more of marijuana.
In today’s hearing, the Court found that Gamboa was the leader of a marijuana trafficking conspiracy operating out of Mexico and responsible for importing over 3,000 kilograms of drugs into the United States. The drugs were then distributed across the country, including in the areas of Zanesville, Ohio, and Huntington. Gamboa’s organization transported the drugs hidden in false walls inside tractor trailers and motorcycle trailers.
Gamboa admitted that in 2010, while in Mexico, he arranged for the transportation of 660 pounds of “very good marijuana” to Nitro. The drugs were to be concealed in the walls of a motorcycle trailer. Gamboa also admitted that he informed an individual cooperating with law enforcement that the driver would make contact to set up a meeting. The driver subsequently told the cooperating individual that he would be arriving in West Virginia on March 5, 2010. When the driver arrived in Nitro, law enforcement seized the marijuana hidden in the motorcycle trailer.
Gamboa was extradited from Mexico to the United States to face the charges associated with these crimes. A total of 14 other individuals were successfully prosecuted as a result of this investigation. Additionally, law enforcement seized over a million dollars in drug proceeds and an airplane belonging to this drug trafficking organization.
This prosecution was made possible through the cooperative efforts of several investigating agencies, including the Putnam County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, the Muskingum County Sheriff’s Department in Ohio, the Lawrence County Sheriff’s Department in Ohio, the United States Marshals Service, the Kentucky State Police, the Indiana State Police, the Huntington Police Department, and the Policia Federal Ministerial of Mexico. Several Drug Enforcement Administration agents investigated this case, including agents from Charleston, Columbus, Phoenix, Tucson, Chicago, Denver, and Hermosillo, Mexico.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mexican Woman Sentenced for Improperly Using Another’s PassportRead 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 Maricela De La Torre Valadez, 49, of Mexico, pleaded guilty to using improperly another individual’s passport and was sentenced to time served by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Scott S. Allen, Jr. and Jonathan P. Cantil, who handled the case, stated that on April 30, 2017, the defendant attempted to use a Mexican passport designed and issued for use by another person in order to gain entry into the United States. Specifically, De La Torre Valadez, a passenger in a taxicab, presented the passport to a Customs and Border Protection Officer at the Rainbow Bridge Port of Entry in Niagara Falls, NY. When an officer asked the defendant to write her name on a piece of paper, De La Torre Valadez wrote her real name, which did not match the name on the passport. Further investigation revealed that the passport belonged to the defendant’s mother. When officers searched De La Torre Valadez’s luggage, they discovered a Mexican passport associated with the defendant’s true identity.The plea and sentencing are the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.