Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 27 April 2017
DEA Prepares for Prescription Drug Take Back DayRead the Press Release
Acting United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take Back Day on Saturday, April 29, 2017.
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers.
Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. The following sites in Guam and in the NMI are designated to receive unused prescription drugs:
- Naval Base Guam (Navy Exchange Food Court)
- Agana Shopping Center (Across Vitamin World)
- Andersen Air Force Base Exchange (Front Entrance)
- Saipan Commonwealth Health Center (in front of the pharmacy)
For more information on prescription drug abuse, go to: www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.DEA Prepares for Prescription Drug Takeback DayRead the Press Release
HARRISBURG – U.S. Attorney Bruce D. Brandler of the United States Attorney’s Office for the Middle District of Pennsylvania wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take-Back Day on Saturday, April 29, 2017.
A news conference announcing this event was held on Thursday, April 27, 2017 at the State Capitol Media Center.
Speakers at the news conference included:
- SAC Gary Tuggle, Drug Enforcement Administration;
- Acting Secretary Jennifer Smith, Pennsylvania Department of Drug and Alcohol Programs;
- U.S. Attorney Bruce D. Brandler, Middle District of Pennsylvania;
- Executive Deputy Attorney General Robert K. Reed, Pennsylvania Office of Attorney General; and
-
Captain Raymond S. Singley, Pennsylvania State Police.
United States Attorney Brandler stated, "The Department of Justice has a three part strategy dealing with the opioid crisis consisting of prevention, enforcement and treatment. The drug take back initiative is an important part of our efforts to prevent opioid addiction and we applaud our federal and state partners in joining us in this effort."
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. To locate a collection site near you, go the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
# # #
DEA and Local Agencies Taking Back Unwanted Prescription Drugs on April 29 at Numerous SitesRead the Press Release
DES MOINES, IA – On Saturday, April 29, 2017, from 10 a.m. to 2 p.m., the Des Moines Resident Office of the Drug Enforcement Administration (DEA) and other participating law enforcement agencies will give the public its 13th opportunity in 7 years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. The DEA cannot accept liquids, needles or sharps, only pills or patches. The service is free and anonymous, no questions asked.
Last October, Americans turned in 366 tons (over 730,000 pounds) of prescription drugs at almost 5,200 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. Overall, in its 12 previous Take Back events, DEA and its partners have taken in over 7.1 million pounds—more than 3,500 tons—of pills.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
For more information about the April 29 Take Back Day event and the disposal of prescription drugs, including the addresses for the numerous drop-off locations, go to the DEA Diversion website.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Cranston Man Sentenced to 5 Years for Trafficking Cocaine, Fentanyl Laced HeroinRead the Press Release
PROVIDENCE, R.I. – Michael Bermudez, a/k/a Michael J. Morales, 35, of Cranston, was sentenced on Wednesday to 60 months in federal prison for trafficking cocaine and fentanyl laced heroin, announced Acting United States Attorney Stephen G. Dambruch; Cranston Police Chief Colonel Michael J. Winquist, and Michael J. Ferguson, Special Agent in Charge of the DEA in New England.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Bermudez to serve 4 years supervised release upon completion of his term of incarceration. Bermudez pleaded guilty on January 27, 2017, to one count each of possessing with the intent to distribute 100 grams or more of heroin and possessing with the intent to distribute 100 grams or more of cocaine.
Bermudez was detained by Cranston Police detectives on October 6, 2016, after a court authorized search of his residence resulted in the seizure of 139 grams of fentanyl laced heroin and 153 grams of cocaine.
According to information provided to the court, on October 6, 2016, Cranston Police Department detectives, with the assistance of agents from the Rhode Island DEA Drug Task Force, executed a court authorized search at Bermudez’s residence. The search resulted in the seizure of approximately 6,600 packets containing a total of 139 grams of fentanyl laced heroin and several plastic bags containing a total of 153 grams of cocaine. The search warrant was authorized by the court during an investigation into Bermudez’s drug trafficking activities, which included multiple controlled purchases of heroin from Bermudez.
According to information presented to the court, after being detained by Cranston Police, Bermudez described to investigators receiving approximately $12,000 worth of heroin from a supplier on multiple occasions and distributing the heroin within a two-day period.
According to court records, Bermudez was on Rhode Island state probation at the time of his arrest in this matter, having been convicted in Rhode Island Superior Court in September 2015 on drug trafficking charges.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
###
Couple Charged with Making False Statements to a Federally Licensed Firearms DealerRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that BRANDON SMITH, age 29, and CHELSIE WILLIAMS, age 23, both of New Orleans, were charged today in a six-count Indictment. The Indictment charges SMITH and WILLIAMS with making false statements to a federally licensed firearms dealer, in violation of 18 U.S.C. § 922(a)(6), and being felons in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1).
According to the Indictment, SMITH and WILLIAMS made false statements concerning a rifle. If convicted, both SMITH and WILLIAMS face a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment for each count.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives for investigating this matter. Special Assistant U.S. Attorney J. Ryan McLaren is in charge of the prosecution.
Corpus Christi Man Pleads Guilty to Online Solicitation of a MinorRead the Press Release
CORPUS CHRISTI, Texas – A 35-year-old resident of Corpus Christi has admitted he attempted to meet an underage girl for the purpose of sex, announced Acting U.S. Attorney Abe Martinez.
David Lee Vann appeared before U.S. Magistrate Judge Jason B. Libby and entered a guilty plea to one count of online solicitation of a minor.
In June 2016, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Corpus Christi Police Department—Internet Crimes Against Children Task Force (CCPD-ICAC) conducted a joint investigation targeting individuals involved in online solicitation of minors. Vann was communicating with a person he believed was the mother of a 14-year-old female. In reality, he was talking to an undercover agent. Vann made arrangements to meet and engage in sexual activity with the mother’s minor female child.
Vann was apprehended as he arrived at the designated meeting place, at which time he was in possession of a box of condoms and lubricant. He also admitted to authorities that he had sent messages indicating his intention to engage in sexual acts with the child. Vann was also in possession of a cellular telephone. A forensic examination of the phone resulted in the discovery of 35 images and 20 videos of child pornography.
U.S. District Judge Nelva Gonzales Ramos will impose sentencing on Aug. 17, 2017. At that time, Vann faces a minimum of 10 years and up to life in federal prison. Upon completion of any prison term imposed, he also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Vann was arrested on the federal charges in November 2016. He will remain in custody pending his sentencing hearing.
The case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez and Elsa Salinas, 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."
Convicted Felon Sentenced to Serve 134 Months for Illegally Possessing AmmunitionRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Senior United States District Court Judge Callie V.S. Granade sentenced Roy Darwood Ray, to serve a term of imprisonment of 110 months followed by 3 years of supervised release. Ray pled guilty to illegally possessing ammunition in Mobile, Alabama on June 20, 2016 in violation of 18 USC § 922(g)(1). Additionally, the Court ordered the defendant to serve a consecutive term of imprisonment of 24 months for violating the conditions of his supervised release. During the sentencing hearing, the Court made a finding that the defendant’s possession of ammunition was related to two armed robberies. The defendant, who had a lengthy criminal history, entered a guilty plea before the Court on January 19, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosive (ATF), and the Mobile Police Department. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard.
Conroe Man Ordered to Prison for Bank Fraud and Stealing from EmployerRead the Press Release
HOUSTON – A 45-year-old man from Conroe has been ordered to prison for bank fraud and stealing more than $484,000 from Weatherford, announced Acting U.S. Attorney Abe Martinez. Kiran Andhavarapu pleaded guilty Feb. 9, 2017.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, sentenced Andhavarapu to 20 months in federal prison immediately followed by three years of supervised release. In issuing the sentence, Judge Ellison found Andhavarapu abused a position of trust as a financial controller which facilitated his commission of the offense.
The fraud involved a scheme to steal money from Andhavarapu’s employer, Weatherford, and its subsidiary, EProduction Solutions LLC. Andhavarapu opened bank accounts in the name of “EProduction Solutions” and listed himself as the owner and sole proprietor of the business. He then stole refund checks made out to and belonging to his employer and fraudulently deposited those checks in the accounts he had created.
As part of his plea, Andhavarapu admitted he stole a total of $484,873.95.
Andhavarapu will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined at a later date.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Columbia Woman Pleads Guilty to Embezzling $231,600 from EmployerRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., woman pleaded guilty in federal court today to embezzling $231,600 from her employer, Shelter Insurance Federal Credit Union.
Debra L. Wenger, 62, of Columbia, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to a federal information that charges her with misappropriation of funds by a credit union employee.
Wenger began working for Shelter Insurance Companies in 1972 and transferred to Shelter Insurance Federal Credit Union in 1988. She worked as an administrative assistant, assuming all accounting responsibilities, and served as a teller.
An external auditor discovered the misappropriation of funds in February 2016. Auditors noted a discrepancy when comparing the general ledger teller cash to the cash balancing sheet. Shortly after the discrepancy was discovered, Wenger met with the Columbia Police Department and confessed that she had misappropriated the funds in question. Wenger admitted that she took cash from her teller drawer and deposited it into her personal bank account.
An internal audit by the company determined the total amount of misappropriated funds to be $231,600.
Under federal statutes, Wenger is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the FBI and IRS-Criminal Investigation.
Columbia Resident Sentenced for Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Brian Zomelle Walker, a/k/a “Boss G,” age 27, of Columbia, South Carolina was sentenced in federal court in Columbia, South Carolina, for possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c)(1)(A). United States District Judge Cameron McGowan Currie of Columbia sentenced Walker to five years imprisonment followed by three years of supervised release.
Evidence presented at the change of plea hearing established that Walker was selling marijuana from his residence in Columbia, S.C.. A search warrant was executed at Walker's residence on May 2, 2016 resulting in marijuana and a loaded 9 mm handgun being seized.
The case was investigated by agents of the Midlands Gang Task Force (MGTF) and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
#####
Columbia Man Sentenced for Making Hoax Bomb ThreatRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Karry Max Taylor, III, age 21, of Columbia was sentenced in federal court for making a hoax bomb threat, in violation of Title 18, United States Code, Section 1038(a). Senior United States District Judge Cameron McGowan Currie, of Columbia, sentenced Taylor to 12 months and 1 day imprisonment with 3 years of supervised release to follow. Additionally, Taylor was ordered to make restitution to the Columbia Fire Department and the Columbia Police Department in the total amount of $1,487.77 to cover the cost of their response to the hoax bomb threat and pay a $100 special assessment fee to the court.
Evidence presented during the earlier guilty plea hearing established that on January 4, 2016, three individuals, two in South Carolina and one in New York, each received a text message from an unknown South Carolina telephone number advising them that someone had placed a bomb in the parking lot of the Veterans Affairs Medical Center on Garners Ferry Road. One of the texts stated, “Hey Montana, this is Sosa. Omar said he put a bomb in the parking lot or something…in the VA hospital on Garners Ferry Road. I am scared and I don’t know what to do.” The three individuals each notified law enforcement authorities, who were able to discern that the texts were referring to the Veterans Affairs Medical Center in Columbia. As a result, the Columbia Police Department, the Columbia Fire Department, and the Veterans Affairs Medical Center Police Department responded, placed the Veterans Affairs Medical Center in lock-down, and swept the parking area for explosives. Law enforcement were on the scene for three hours and ultimately determined that the texts were a hoax as no explosive was located. Thereafter, the Federal Bureau of Investigation, through investigative means, was able to link the texts back to a cellular telephone and email account belonging to Taylor. Agents approached Taylor, a volunteer with the Columbia Fire Department, and he admitted to sending the texts to random numbers in an effort to draw other fire engines to the Veterans Affairs Medical Center in hopes that his fire station would then be called to respond to any other calls that occurred during that time frame.
The case was investigated by the FBI Joint Terrorism Task Force in Columbia. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
#####
Chambersburg Man Sentenced to Prison for $2 Million Fraud SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Chambersburg, Pa., has been sentenced in federal court to one year plus one day in prison, three years’ supervised release, and was ordered to pay restitution in the amount of $1,538,345 to numerous victims, on his conviction of wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Douglas A. Stahl, age 54, of Chambersburg, Pa.
According to information the United States presented to the Court, it was established that between January 2008 and December 2013, Stahl devised and executed a scheme to fraudulently obtain more than $2 million dollars from various investors.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Stahl.
Canadian Man Sentenced to 70 Months in Prison for Drug Trafficking and Money Laundering ChargesRead the Press Release
BOSTON – A Canadian man was sentenced today in federal court in Boston in connection with a drug trafficking and money laundering organization that imported Canadian marijuana and MDMA, the club drug also known as “ecstasy” or “mollie,” into the United States.
Gursharan Singh, 33, of Toronto, Canada, was sentenced by U.S. District Court Judge Denise J. Casper to 70 months in prison, three years of supervised release and ordered to forfeit $240,000. In May 2014, Singh was arrested in Canada and, in July 2016, he was temporarily surrendered from Canada to the United States to plead guilty to the charges in the indictment and unrelated drug charges in U.S. District Court for the Western District of New York. In August 2016, he pleaded guilty to one count of conspiracy to distribute MDMA and marijuana and one count of money laundering conspiracy.
Beginning in the summer of 2011 to approximately March 2012, Singh agreed with co-conspirators to move MDMA and marijuana over the Canadian-U.S. border. Singh and a Canadian co-conspirator, David Nguyen, recruited couriers to drive MDMA and marijuana to Joshua Rabinovitch, a Salem, Mass., man, who sold the drugs and returned the proceeds to Canada. In March 2012, Singh and Nguyen recruited Shivinder Kanwal to drive 15 kilograms of MDMA to Rabinovitch in Boston. In April 2012, Singh and Nguyen separately recruited co-defendant, Adeel Bhutta, to pick up $240,000 in drug proceeds from Rabinovitch.
In July 2014, Bhutta was sentenced to 28 months in prison for his role in the money laundering conspiracy. In February 2015, Rabinovitch was sentenced to 24 months in prison for his role in the drug trafficking and money laundering conspiracies. In December 2016, Nguyen was sentenced to 120 months in prison for his role in the drug trafficking and money laundering conspiracies. Kanwal was sentenced to 24 months of probation for his role in the drug trafficking conspiracy.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney acknowledges the Department of Justice’s Office of International Affairs for its assistance in securing Singh’s temporary surrender to the United States. Assistant U.S. Attorneys Seth B. Kosto and Timothy E. Moran of Weinreb’s Criminal Division prosecuted the case.
Boone County woman sentenced to over four years in federal prison for heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County woman who was part of a heroin trafficking ring was sentenced today to four years and three months in federal prison, announced United States Attorney Carol Casto. Joyce Ann Zornes, 33, of Seth, previously pleaded guilty to aiding and abetting the distribution of heroin.
In 2013, Daymeon Damar Johnson, 31, of Detroit, came to Boone County where he met Zornes. Shortly after meeting, Johnson and Zornes began selling oxycodone pills from a residence on Harper Lane in Seth. In early 2015, Johnson and Zornes began selling heroin supplied by sources in Detroit. Zornes sold heroin to local users and also made trips to Detroit in order to bring the heroin back to Boone County. In July 2015, members of the U.S. Route 119 Drug and Violent Crime Task Force began making purchases of heroin from local dealers being supplied by Johnson or Zornes. On March 22, 2016, Zornes was stopped in Jackson County while transporting heroin from Michigan. Two days later, in an effort to obtain bond money for Zornes, Johnson recruited Gregory Runion to sell an SKS assault rifle. Runion sold the rifle to an informant working for the Task Force.
On August 1 and 2, 2016, Task Force officers used an informant to buy heroin directly from Johnson and Zornes at their residence. Officers executed search warrants at the residence and seized more than 40 grams of heroin, ecstasy tablets, cash, and distribution paraphernalia.
This long-term investigation of heroin trafficking in Boone County has led to several convictions and prison sentences. Johnson was sentenced to 14 years in federal prison. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, also of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm. Darrell Woodside, of Detroit, pleaded guilty to using a telephone to facilitate heroin trafficking and faces up to four years in federal prison when he is sentenced on June 22, 2017. Other individuals implicated in this investigation have also been prosecuted in state court.
The U.S. Route 119 Drug and Violent Crime Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence and is presiding over these cases.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Bonner Ferry Man Pleads Guilty to Possessing Child PornographyRead the Press Release
COEUR D’ALENE - Thurlo Eugene Clark, 72, of Bonner Ferry, Idaho, pleaded guilty on April 25, 2017, to possession of sexually explicit images of minors, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced. Clark was charged by an information that was filed on April 3, 2017.
According to the plea agreement, Clark admitted that on May 6, 2016, law enforcement officers contacted Clark because officers received information that Clark tried to send child pornography through the wires. Clark admitted to law enforcement that he knowingly possessed child pornography, receiving them from people via email. With Clark’s consent, law enforcement officers recovered computer equipment containing child pornography.
The charge of possession of sexually explicit images of minors is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to 5 years to life of supervised release.
Sentencing is set for July 26, 2017, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by Idaho Internet Crimes Against Children Taskforce and the Federal Bureau of Investigation.
Belvidere Physician Sentenced to Nine Years and Ordered to Pay More Than $2.7 Million for Health Care FraudRead the Press Release
ROCKFORD — A suspended physician was sentenced today by U.S. District Judge Frederick J. Kapala on charges of federal health care fraud.
CHARLES S. DEHAAN, 62, of Belvidere, was sentenced to nine years in federal prison, to be followed by three years of supervised release. He was also ordered to pay restitution of $2,787,054.
DeHaan pleaded guilty on May 20, 2016, to two counts of health care fraud in connection with a scheme to defraud Medicare that included overbilling and billing Medicare for treatment of patients that were already deceased.
According to a written plea agreement, DeHaan during the course of the scheme was a physician licensed in Illinois. Between January 2009 and January 2014, DeHaan primarily billed Medicare for in-home patient visits and certifications for patients he deemed homebound. DeHaan admitted in the plea agreement that he knew Medicare authorized payment for home visits and physician services only if those services were actually provided and were medically necessary because of disease, infirmity, or impairment. The plea agreement further states that DeHaan billed Medicare for medical services purportedly provided to patients, when he knew he did not provide any reimbursable medical service. This included DeHaan billing Medicare at the highest reimbursement levels for routine, non-complex visits with new and established patients, even though DeHaan knew the visit did not qualify for the highest levels of reimbursement, and further included billing Medicare for patients DeHaan never actually treated. According to the plea agreement, some of the patients DeHaan billed for had died prior to the date of the alleged visit.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General. The Illinois Department of Financial and Professional Regulation assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Scott R. Paccagnini and Talia Bucci.
Bay Area Residents Charged in Scheme to Export Components for Production of Night Vision Rifle ScopesRead the Press Release
SAN FRANCISCO – Naum Morgovsky and Irina Morgovsky were charged today for their respective roles in an alleged scheme to export components for the production of night vision rifle scopes in violation of the Arms Export Control Act, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The superseding indictment supplements bank fraud charges that were leveled in September of last year against Naum Morgovsky and Mark Migdal.
According to the superseding indictment, Naum and Irina Morgovsky owned night vision businesses in the United States and purchased numerous scope components including image intensifier tubes and lenses. The superseding indictment alleges the Morgovskys conspired to ship these items to a night vision manufacturing company in Moscow, Russia that was partly owned by Naum Morgovsky. The United States Munitions List prohibits export of the items unless the exporter obtains a license from the Department of State, Directorate of Defense Trade Controls. According to the superseding indictment, the Morgovskys did not have such a license.
In addition, the superseding indictment alleges the Morgovskys took steps to conceal their crimes so that they could continue to run their illegal export business undetected. According to the superseding indictment, Naum Morgovsky laundered the proceeds of the export conspiracy, used a bank account in the name of a deceased person to conceal the ownership and control of the scheme’s proceeds. The superseding indictment further alleges that Irina Morgovsky allegedly used a passport that she fraudulently obtained in the name of another individual to travel to Russia three times in 2007.
The superseding indictment includes the charges against Naum Morgovsky and Mark Migdal in the indictment filed in September of 2016. Specifically, the superseding indictment repeats that between June 2009 and April 2016, Morgovsky and Migdal conspired to defraud two federally-insured banks, now Bank of America and EverBank, by seeking those banks’ approval for a short sale of two condominiums owned by Migdal. The two condominium units were in the same building in Kihei, Maui. The superseding indictment alleges that Morgovsky and Midgal conspired to convince the banks to allow the properties to be sold in a short sale to an individual who was, in reality, deceased. A short sale is a sale in which a lender allows a property to be sold at a price that is less than the amount owed on the loan. According to the superseding indictment, the conspiracy also involved submission of false statements to the bank about Midgal’s employment status and income. After the banks approved the short sales in 2009 and 2010, Migdal continued to treat the property as his own, including collecting rent and paying taxes and homeowners’ association dues. The properties allegedly were transferred to Migdal’s wife in 2016.
In addition, the superseding indictment alleges that, during 2009 and 2010, Migdal submitted false statements to a federally insured bank. According to the superseding indictment, Migdal sought to obtain loan modifications for his residence in Portola Valley and his rental property in Mountain View by falsely stating he had rented part of his residence, by submitting a false employment offer letter, and by falsely stating his rental property in Mountain View was his principal residence.
In sum, the charges and maximum statutory sentences against Naum Morgovsky are as follows:
Count
Charge
Statue
Maximum Sentence
One
Conspiracy to Commit Bank Fraud
18 U.S.C. § 1349
30 years; $1,000,000 fine
Two
Bank Fraud
18 U.S.C. § 1344
30 years; $1,000,000 fine
Three
Bank Fraud
18 U.S.C. § 1344
30 years; $1,000,000 fine
Four
Aggravated Identity Theft
18 U.S.C. § 1028A
2 years consecutive to any other sentence; $250,000 fine
Nine
Armed Export Control Act Conspiracy
22 U.S.C. § 2778
20 years; $1,000,000 fine
Ten
Money Laundering
18 U.S.C. § 1956(a)(1)(B)(i)
20 years; $500,000 fine or twice the value of funds involved
Eleven
International Money Laundering
18 U.S.C. § 1956(a)(2)(A)
20 years; $500,000 fine or twice the value of funds involved
The charges against Irina Morgovsky are as follows:
Count
Charge
Statue
Maximum Sentence
Six
Misuse of Passport
18 U.S.C. § 1544
10 years; $250,000 fine
Nine
Armed Export Control Act Conspiracy
22 U.S.C. § 2778
20 years; $1,000,000 fine
The charges against Mark Migdal are as follows:
Count
Charge
Statue
Maximum Sentence
One
Conspiracy to Commit Bank Fraud
18 U.S.C. § 1349
30 years; $1,000,000 fine
Two
Bank Fraud
18 U.S.C. § 1344
30 years; $1,000,000 fine
Three
Bank Fraud
18 U.S.C. § 1344
30 years; $1,000,000 fine
Five
Aggravated Identity Theft
18 U.S.C. § 1028A
2 years consecutive to any other sentence; $250,000 fine
Seven
False Statement to Federally Insured Financial Institution
18 U.S.C. § 1014
30 years; $1,000,000 fine
Eight
False Statement to Federally Insured Financial Institution
18 U.S.C. § 1014
30 years; $1,000,000 fine
Any sentence following conviction would 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. The Superseding Indictment also seeks forfeiture of the false passport, a residence in Portola Valley, a condominium in Mountain View, and the two Hawaii condominiums.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The defendants are scheduled to be arraigned on the superseding indictment on Tuesday, May 2, 2017, at 9:30am, before the Honorable Jacqueline Scott Corley, United States Magistrate Judge.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s office in San Francisco and the Counterintelligence and the Export Control Section of the Department of Justice’s National Security Division. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigation, and the Department of Commerce.
Assistant Track Coach Charged with Child PornographyRead the Press Release
BOSTON – A Wellesley High School assistant track coach, who is also a former Harvard University track coach, was arrested and charged today with distribution and possession of child pornography.
Walter Johnson, 69, of Framingham, was arrested and charged by criminal complaint with one count of distribution of child pornography and one count of possession of child pornography. Johnson was detained following an initial appearance in federal court in Boston late this afternoon. U.S. District Court Magistrate Judge Marianne B. Bowler scheduled a detention and probable cause hearing for May 1, 2017.
According to the charging document, in January 2017, federal agents began an investigation into child pornography being traded by a Craigslist user. The investigation led to Johnson, a track coach at Wellesley High School and a former Harvard University track coach. Earlier this morning, federal agents executed a search warrant at Johnson’s home in Framingham. Johnson allegedly admitted to sending and receiving child pornography with various individuals he met on Craigslist. A preliminary on-scene forensic analysis confirmed child pornography on devices in his home.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, five years to life of supervised release and a fine $250,000. The charge of possession of child pornography provides for a sentence of 10 years in prison, three years of supervised release and a fine $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by HSI Boston’s Cyber Crimes and Child Exploitation Group, with the assistance of the Internet Crimes Against Children (ICAC) task forces from Massachusetts and Rhode Island, and the Framingham Police Department. The case is being prosecuted by Assistant United States Attorney Anne Paruti, Weinreb’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit.
The case is 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 the U.S. Attorneys’ Offices and the 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.
Armed Bank Robber Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
SAVANNAH, GA: Lamarlvin Arkeena Watts, 22, from Savannah, was sentenced earlier this week by Senior U. S. District Judge William T. Moore, Jr. to 148 months in federal prison for bank robbery and brandishing a firearm during the commission of that crime. Watts’ convictions followed a two-day jury trial in January 2017.
According to the evidence presented at trial, Watts invaded the Wells Fargo bank branch at 1900 E. Victory Drive in Savannah on July 14, 2015 and threatened to shoot two tellers if they refused to give him cash. Searches of Watts’ house and vehicle uncovered items Watts had worn during the robbery, several hundred dollars of cash and ammunition matching the gun he had used to threaten the tellers.
At sentencing, Watts asked the Court to recommend to that he be allowed to serve his sentence at a federal prison close to Savannah. Citing the violent nature of Watts’ crimes, prosecutors successfully opposed that request.
Acting U. S. Attorney James D. Durham stated, “The U. S. Attorney’s Office is committed to targeting and combatting violent crime in our community. Parole doesn’t exist in the federal system, and with nearly 125 federal prisons in more than 35 different states, violent criminals prosecuted by this Office should expect to serve long sentences, far away from home.”
The FBI and the Savannah-Chatham Metropolitan Police Department investigated the robbery. The ATF and the Georgia Bureau of Investigation Division of Forensic Sciences also provided valuable assistance.
Assistant United States Attorneys Theodore S. Hertzberg and Tania D. Groover prosecuted the case. For additional information, please contact the United States Attorney’s Office at (912) 201-2522.
Allentown Physican Pleads Guilty of Failure to File Tax ReturnsRead the Press Release
PHILADELPHIA – Harry W. “Buck” Buchanan, 63, of Allentown, PA, pleaded guilty yesterday to two counts of willfully failing to file tax returns, announced Acting United States Attorney Louis D. Lappen. According to the information, Buchanan, who operated Harry Buchanan IV MD PC, failed to file federal tax returns in 2009 and 2010, although his income substantially exceeded the minimum income establishing the requirement to file.
The charges, the defendant faces up to one year in federal prison on each of two counts, as well as restitution, fines, supervised release, and special assessments.
This case was investigated by the IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney Bea Witzleben.
Acting United States Attorney Farley Encourages Participation in DEA's National Prescription Drug Take-Back Day on April 29, 2017Read the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley encourages the public to participate in the Drug Enforcement Administration’s National Prescription Drug Take-Back Day on Saturday, April 29, 2017.
“As our state continues to battle with an epidemic of opioid overdoses, we must acknowledge that many individuals start on the path toward addiction through the misuse of prescription drugs. Often, this can start when unneeded prescription drugs are used for recreational purposes. That initial experimentation sadly can lead to opioid addiction and, in far too many cases, untimely deaths. I encourage every citizen to take the time to dispose of unneeded medicine on Saturday. Your efforts will help improve the safety of both your household and your community,” said Acting U.S. Attorney Farley.
"Many Americans are not aware that medicines which languish in home cabinets are highly vulnerable to diversion, misuse, and abuse," said DEA Special Agent in Charge Michael J. Ferguson. "Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse."
Prior Take-Back Days have been quite successful. On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because millions who have abused prescription painkillers say they obtained those drugs from friends and family, including from home medicine cabinets, according to the National Survey on Drug Use and Health released last month. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers. Almost 30,000 people—78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
Collection sites will be set up throughout communities nationwide. To locate a collection site near you, go the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code.
###
Wednesday 26 April 2017
Wichita Woman Sentenced in Identity Theft CaseRead the Press Release
WICHITA, KAN. - A Wichita woman who used stolen mail to create counterfeit checks and credit cards was sentenced Wednesday to 34 months in federal prison, U.S. Attorney Tom Beall said.
Lateasha Linthicum, 36, Wichita, Kan., pleaded guilty to one count of conspiracy to receive stolen mail and to commit theft. In her plea, she admitted she caused a loss of more than $300,000 to victims. When Wichita police served a search warrant at Linthicum’s room in the Inn at Tallgrass they found a large storage trunk containing documents credit cards, mail and checks in the names of other people.
Beall commended the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Wichita Man Sentenced for Brandishing Firearm in RobberyRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced Wednesday to seven years in federal prison for brandishing a firearm during a robbery at a convenience store, U.S. Attorney Tom Beall said.
Quincy D. Hadley, 36, Wichita, admitted that on Oct. 26, 2016, he pointed a .40-caliber pistol at a clerk during a robbery at the Presto gas station at 4414 W. Maple in Wichita. Hadley demanded and received cash and cigarettes before he fled the store.
He was arrested when an officer responding to a 911 call found him changing clothes in a parked car.
Beall commended the Wichita Police Department and Assistant U.S. Attorney Brent Anderson for their work on the case.
Wasilla Man Sentenced for Online ExtortionRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced that Michael Thomas McTigue, 33, resident of Wasilla, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason to two years in prison, to be followed by a one-year term of supervised release, for making threats online and extorting money in return.
According to documents filed in this case, the defendant trolled women he met online through the Meetme.com and Kik Messenger applications. In several instances, the defendant formed online romantic relationships with women, and received sexually explicit photographs from them. On at least one occasion, the defendant then took the photographs that he received and threatened to publish them unless the victim worked for him as a prostitute and sent to him some of the money that she earned. The defendant went so far as to post online prostitution advertisements for the victim. In response to this threat, the victim complied, sending the defendant more than $1,000.
During the investigation, the Federal Bureau of Investigation (FBI) located two other women who had sent money to the defendant. In addition, the FBI located three other women for whom the defendant has posted online prostitution advertisements.
The case was the product of an investigation by the FBI’s Safe Streets/Crimes Against Children/Human Trafficking Task Force. The task force marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
U.S. Attorney’s Office Obtains ADA Settlement with Dayton Township to Ensure Civic Access for People with DisabilitiesRead the Press Release
The U.S. Attorney's Office for the Eastern District of Michigan has reached a settlement with Dayton Township in Tuscola County to ensure full access to township services for individuals with disabilities.
The agreement, under the Americans with Disabilities Act (ADA), resolves a complaint filed with the U.S. Attorney’s Office alleging that many township services were inaccessible to individuals with disabilities. The complaint, filed by a local resident, alleged that Dayton Township’s government offices were located in the private homes of its elected officials, and that because of physical barriers present in those homes, the government services provided in them were inaccessible to individuals with disabilities.
The settlement agreement requires Dayton Township to adopt an ADA policy, and to establish a mechanism to provide township services in an alternative location or in an alternate manner to ensure that all Dayton Township residents have access to township services.
“Access to public facilities and services are essential to meaningful participation in civic life, and individuals with disabilities are entitled to the opportunity to participate in local government programs, services, and activities on an equal basis with their neighbors,” said Acting U.S. Attorney Daniel L. Lemisch.
For more information on the ADA or today’s agreement with Dayton Township, visit www.ada.gov or call the United States Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) or the U.S. Attorney’s Civil Rights hotline at (313) 226-9151.
U.S. Attorney for Oregon Encourages Community Members to Participate in Prescription Drug Take Back DayRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, invites all community members to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on Saturday, April 29, 2017.
“DEA’s Drug Take Back Day offers a completely anonymous way to dispose of unused prescription medications,” said U.S. Attorney Williams. “We encourage all community members to do their part to combat the opioid abuse epidemic. Unused prescription pain medications stored in your home pose a significant risk of drug addiction for family members and youth. These medications,” continued Williams “are every bit as dangerous as illegal narcotics purchased on the street. Join us in this effort to help stem the tide of abuse in our communities.”
“This is the 13th DEA National Drug Take Back event and is an opportunity to save lives by cleaning out medicine cabinets,” said DEA Assistant Special Agent in Charge Cam Strahm. “Last October, Oregonians turned in four tons of unused medications and this Saturday, April 29th, we hope to surpass that number and drive down the growing opioid crisis. You can find a site near you at www.dea.gov.”
On average, three Oregonians die every week from prescription opioid overdose. The prescription drug overdose rate in Oregon was 2.8 times higher in 2013 than in 2000. Between 2012 and 2013, an estimated 212,000 Oregonians self-reported using prescription painkillers for non-medical purposes. Opioid-related overdose death rates in Oregon vary by race/ethnicity with the highest rates occurring among American Indians and Alaska Natives.
On the October 2016 Take Back Day, the DEA collected over 731,000 pounds of unwanted prescription medications turned in by the public at more than 5,000 collection sites nationwide. Over the life of the take back program, citizens around the country have removed more than 7.1 million pounds of prescription drugs from their homes.
Unused medications stored in the home pose a significant threat of abuse. In 2015, nearly 4 million people who abused prescription painkillers say they obtained the drugs from family members or friends. It is well documented that abusing prescription painkillers can lead to abuse of illegal narcotics. Statistics show that four out of five new heroin users began their drug abuse by taking prescription painkillers. According to the Centers for Disease Control and Prevention, in 2014 alone, nearly 30,000 people died from overdosing on prescription painkillers or heroin.
To locate a drug collection site near you, please visit www.dea.gov and click on the “Got Drugs?” icon or call 1-800-882-9529.
Two Former Arkansas Juvenile Detention Officers Plead Guilty to Conspiracy to Assaulting Juvenile DetaineesRead the Press Release
The Justice Department announced that two former White River Juvenile Detention Center supervisors, Captain Peggy Kendrick, 43, and Lieutenant Dennis Fuller, 40, pleaded guilty today in federal court to conspiring to assault juvenile inmates. Kendrick also pleaded guilty to assaulting a sixteen-year-old girl using pepper spray, and for obstructing justice by falsifying an incident report about that assault.
According to the guilty pleas, Kendrick, Fuller, and other unnamed former officers assaulted and physically punished juvenile detainees who posed no threat, by means that included spraying them in the face with pepper spray. In some instances, they then shut the compliant juveniles in their cells after pepper spraying them to “let them cook,” rather than immediately decontaminating them. Kendrick also encouraged the juvenile detention officers who unjustifiably assaulted juveniles to falsify their incident reports to cover up the assaults.
“Corrections officers who use excessive force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“When correction officers violate laws and the Constitution, they will be prosecuted. There is no exception,” said Acting U.S. Attorney Patrick C. Harris for the Eastern District of Arkansas. “I understand the difficult job they have, but that is not an excuse for assaulting a juvenile and obstructing an investigation. In fact, there is no excuse for that. That is a crime and we will prosecute the criminals.”
“We at the FBI are appalled at what occurred to these minors,” said Special Agent in Charge Diane Upchurch with the FBI Field Office in Little Rock, Arkansas. “Along with our partners at the Justice Department, we are steadfast in our commitment to investigate and punish those responsible for these incomprehensible actions.”
Kendrick faces a statutory maximum sentence of 40 years in prison; Fuller faces a statutory maximum sentence of 10 years in prison.
This case is being investigated by the FBI’s Little Rock Division and the investigation is ongoing. It is being prosecuted by Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas and Trial Attorney Samantha Trepel of the Civil Rights Division.
Two Former Arkansas Juvenile Detention Officers Plead Guilty to Conspiracy to Assault on Juvenile DetaineesRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that two former White River Juvenile Detention Center supervisors, Captain Peggy Kendrick, 43, and Lieutenant Dennis Fuller, 40, pleaded guilty today in federal court before U.S. District Judge James M. Moody Jr. to conspiring to assault juvenile inmates. Kendrick also pleaded guilty to assaulting a sixteen-year-old girl using pepper spray and to obstructing justice by falsifying an incident report about that assault. The White River Juvenile Detention Center is located in Batesville, Arkansas.
According to the guilty pleas to the felony Information, Kendrick, Fuller, and other unnamed former officers assaulted and physically punished juvenile detainees, who posed no threat, by spraying them in the face with pepper spray. In some instances, they then shut the compliant juveniles in their cells after pepper spraying them to “let them cook,” rather than immediately decontaminating them. Kendrick also encouraged the juvenile detention officers, who unjustifiably assaulted juveniles, to falsify their incident reports to cover up the assaults.
Acting U.S. Attorney Patrick C. Harris stated, “When correction officers violate laws and the Constitution, they will be prosecuted. There is no exception. I understand the difficult job they have, but that is not an excuse for assaulting a juvenile and obstructing an investigation. In fact, there is no excuse for that. That is a crime and we will prosecute the criminals.”
“Corrections officers who use excessive force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“We at the FBI are appalled at what occurred to these minors,” said Special Agent in Charge Diane Upchurch with the Little Rock FBI Field Office. “Along with our partners at the Justice Department, we are steadfast in our commitment to investigate and punish those responsible for these incomprehensible actions.”
The maximum potential penalty for a violation of 18 U.S.C. § 241 (Conspiracy Against Rights) is up to ten years imprisonment, up to three years of supervised release, and up to a $250,000 fine. The maximum potential penalty for a violation of 18 U.S.C. § 242 (Deprivation of Rights Under Color of Law) is up to ten years imprisonment, up to three years of supervised release, and up to a $250,000 fine. The maximum potential penalty for a violation of 18 U.S.C. 1519 (Falsification of Records in Federal Investigations) is up to twenty years imprisonment, up to three years of supervised release, and up to a $250,000 fine. Accordingly, Kendrick faces a statutory maximum sentence of 40 years in prison and Fuller faces a statutory maximum sentence of ten years in prison.
The court will set a sentencing hearing date after Presentence Investigation Reports are completed.
This case is being investigated by the FBI’s Little Rock Field Division and the investigation is ongoing. It is being prosecuted by Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas and Trial Attorney Samantha Trepel of the Civil Rights Division.
Two Albuquerque Men Sentenced for Convictions on Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Two Albuquerque, N.M., men were sentenced yesterday for their convictions on federal firearms and drug trafficking charges. Marcus Sowell, 19, was sentenced in Albuquerque to a year and a day in prison followed by two years of supervised release for possession of an unregistered firearm. Shawn Anthony Burns, 31, was sentenced yesterday in Santa Fe, N.M., to 60 months in prison followed by four years of supervised release for crack cocaine trafficking.
Sowell and Burns were arrested during 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.
Sowell and his co-defendants Damon Giles, 23, Michael Borrego, 25, Adrian Banks, 28, and Marcus Lewis, 27, were charged in a 12-count indictment filed on June 30, 2016. The indictment charged the following:
-
Sowell with possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) and engaging in the business of dealing firearms without a license on May 19, 2016;
-
Giles with being a felon in possession of a firearm on May 19, 2016;
-
Giles and Borrego with engaging in the business of dealing firearms without a license on May 31, 2016;
-
Giles and Banks with engaging in the business of dealing firearms without a license on June 7, 2016;
-
Banks with being a felon in possession of firearms on June 7, 2016;
-
Borrego with engaging in the business of dealing firearms without a license on June 7, 2016 and June 10, 2016;
-
Giles and Lewis with distribution of cocaine on June 9, 2016;
-
Borrego with possession of a firearm not registered to him in the NFRTR on June 10, 2016;
-
Giles with engaging in the business of dealing firearms without a license and being a felon in possession of firearms on June 13, 2016.
According to the indictment, the offenses were committed in Bernalillo County, N.M.
On Nov. 4, 2016, Sowell pled guilty to possession of an unregistered firearm and admitted that on May 19, 2016, he possessed a firearm not registered to him in the NFRTR.
Burns was arrested in July 2016, on an indictment charging him with distributing crack cocaine on April 19, 2016, April 20, 2016, and April 29, 2016, in Bernalillo County. On Dec. 9, 2016, Burns pled guilty to distributing crack cocaine and admitted that on April 29, 2016, he distributed 28 grams and more of crack cocaine.
To date, 43 of the 104 defendants have entered guilty pleas, and 18 have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. The case against Sowell was prosecuted by Acting U.S. Attorney James D. Tierney and the case against Burns was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
-
Toledo ministers indicted for sex trafficking of minors and production of child pornographyRead the Press Release
Two Toledo men were indicted on federal charges including sex trafficking of minors and production of child pornography, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
Cordell Jenkins, 46, and Anthony Haynes, 37, are named in the seven-count indictment.
Haynes is charged with two counts of sex trafficking of a minor, one count of production of child pornography and one count of obstruction of a sex trafficking investigation. Jenkins is charged with two counts of sex trafficking of a minor, one count of production of child pornography, and one count of receipt of child pornography.
Haynes sexually assaulted a 14-year-old in his custody, beginning in 2014. This conduct continued through 2017, according to court documents.
Some of this conduct took place at Greater Life Christian Center in Toledo, where Haynes was pastor at the time. Haynes used his cellular telephone to record these sexual assaults, according to court documents.
Haynes routinely gave the victim money after the acts and told her not to say anything. He told her that if she said anything, it would ruin his family and his church, according to court documents.
Haynes also facilitated the victim being sexually exploited by several other men, including Jenkins, according to court documents.
Jenkins repeatedly sexually exploited the minor at his home on Barrington Drive, at his office at Abundant Life Ministries and at a motel in Toledo. He paid her and referred to the payment as “hush money.” He often recorded these interactions with his cellular telephone, according to court documents.
“Adults in a position of trust taking advantage of children for their own sexual gratification is beyond reprehensible,” Anthony said. “These defendants are a stark reminder that human trafficking can be hidden in plain view. Law enforcement, in partnership with our communities, must remain vigilant in protecting our children.”
The investigation is ongoing.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Michael Freeman following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Three-Time Convicted Sex Offender Sentenced to 17 Years in PrisonRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that James Wesley Peterson, 32, of Kiln, Mississippi, was sentenced to 204 months (17 years) in prison for traveling across state lines with the intent to engage in illicit sexual conduct, and committing a felony sex offense involving a minor while required to register as a sex offender. Peterson was also sentenced to lifetime supervision by the United States Probation Office following his release, mandatory registration as a sex offender, and payment of a $200 special assessment.
Peterson was previously convicted of four counts of exploitation of children in Harrison County, Mississippi in 2004, and one count of exploitation of a child in Forrest County, Mississippi in 2011. As a result of these convictions, Peterson was required to register as a sex offender. Court documents indicate that in September of 2016, the FBI was contacted by a detective with the Fairhope Police Department about a 13-year old who had been in electronic communication with Peterson. In those communications, Peterson told the 13-year old that he wanted to engage in sexual conduct with her. Law enforcement agents took over the communications with Peterson, and according to documents filed in connection with his plea, Peterson arranged to meet the 13-year old on November 1 in Daphne. When Peterson arrived from Mississippi to meet the victim, he was arrested and confessed to arranging to meet the girl to engage in illicit sexual conduct.
Robert Lasky, Special Agent in Charge of the Mobile Division of the FBI, said, "The FBI will always be a resource for our state and local partners when investigating these types of cases. I am very pleased with the court’s decision and thank the Fairhope Police Department for allowing us to assist them."
This case was investigated by the Fairhope Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Sean P. Costello prosecuted the case for the United States Attorney’s Office. This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/
Three RGV Residents Plead Guilty in Illegal Kickback SchemesRead the Press Release
McALLEN, Texas – Three Rio Grande Valley residents have been convicted for their roles in receiving illegal kickback payments in exchange for the referral of patients, announced Acting U.S. Attorney Abe Martinez.
Today, Brenda De La Cruz, 39, of Mission, entered a guilty plea to conspiracy to receive illegal kickbacks before U.S. District Judge Randy Crane. At plea hearings yesterday before U.S. District Judge Micaela Alvarez, Sonia Garcia, 51, of McAllen, and Luis Manuel Garza, 39, of Brownsville, also pleaded guilty to the same offense. All were previously charged in separate criminal informations on April 10 following an operation conducted by the RGV health care fraud task force targeting Medicare fraud and the payment of illegal kickbacks.
At their respective hearings, each admitted they engaged in conspiracies to refer Medicare beneficiaries to a home health agency in exchange for illegal kickback payments.
Sentencing for both Garcia and Garza has been set for July 20, 2017. De La Cruz will be sentenced July 11, 2017. At those times, all three face a maximum punishment of five years in federal prison.
The FBI, Department of Health and Human Services ‐ Office of Inspector General (OIG), Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission – OIG conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
Three Northern California Real Estate Investors Sentenced for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, three Northern California real estate investors were sentenced today for their role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz were charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. They were convicted of one count each of conspiring to rig bids on Dec. 15, 2016. Today, Rasheed was sentenced to serve fourteen months in prison and serve 1260 hours of community service in lieu of paying a criminal fine, Berry was sentenced to serve ten months in prison and ordered to serve 974 hours of community service in lieu of paying a criminal fine and Diaz was sentenced to serve eight months in prison and ordered to serve 579 hours of community service in lieu of paying a criminal fine.
Between May 2008 and December 2010, the defendants conspired with others not to bid against one another, instead designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. The members of the conspiracy then held second, private auctions to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. The primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence announced today is a result of the department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s Alameda, Contra Costa, San Francisco and San Mateo counties. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Three Men, Including Two Former Local Law Enforcement Officers, Plead Guilty to Trafficking in Contraband CigarettesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JUSTIN BROWN, age 30, and JOSHUA CARTHON, age 32, both of New Orleans, pled guilty today to interstate transportation in aid of racketeering enterprises. Additionally, co-defendant, ANWAR ABDELMAJID-AHMAD, a/k/a Tony, age 29, of Gretna, pled guilty to conspiracy to traffic in contraband cigarettes, conspiracy to possess with the intent to distribute 1 kilogram or more of heroin, and federal firearms violations.
According to previously filed court documents, BROWN and CARTHON, along with GARRETT PARTMAN, all local law enforcement officers at the time of the Indictment, were utilized to protect and transport the shipment of contraband cigarettes across state lines. Co-defendants, ABDELMAJID-AHMAD, JADALLAH SAED, and ATALLA ATALLA, would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a total tax loss to the federal and state governments of between $400,000 and $900,000. At the time of his arrest, ABDELMAJID-AHMAD was found to be in possession of 15.5 grams of heroin and two loaded firearms, one of which was obtained under false pretenses.
Defendants BROWN and CARTHON face a maximum penalty of 5 years imprisonment, $250,000 fine, and 3 years supervised release. As to the contraband cigarette trafficking and weapons charges, ABDELMAJID-AHMAD also faces a maximum penalty of 5 years imprisonment, $250,000 fine, and 3 years supervised release. However, as to the drug conspiracy charge, ABDELMAJID-AHMAD faces a minimum penalty of 10 years and a maximum penalty of life imprisonment, a $10 million dollar fine, and a minimum of 5 years supervised release.
U.S. District Judge Kurt D. Engelhardt set sentencing for August 2, 2017. GARRETT PARTMAN, JADALLAH SAED and ATALLA ATALLA are schedule for trial on August 14, 2017. .
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Division and Immigration and Customs Enforcement/Homeland Security Investigations. He also thanked the New Orleans Police Department Public Integrity Bureau for their assistance. Assistant U.S. Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.
Three Indicted for Female Genital MutilationRead the Press Release
Two Detroit doctors and one co-conspirator were charged in an indictment today for their alleged participation in a scheme to perform female genital mutilation (FGM) on minors, to transport these minors across state lines, and to obstruct justice.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Acting Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Jumana Nagarwala, M.D., 44, of Northville, Michigan, Fakhruddin Attar, M.D., 53, and his wife, Farida Attar, 50, both of Livonia, Michigan, are charged with performing FGM on minor girls out of Fakrhuddin Attar’s medical office in Livonia, Michigan. According to the indictment, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The indictment alleges that Nagarwala performed FGM on girls who were approximately six to eight years old. All three are also charged with a conspiracy to obstruct the federal investigation, and Nagarwala and Fakhruddin Attar are charged with giving false statements to a federal agent. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM.
“Female Genital Mutilation has serious implications for the health and well-being of girls and women,” stated Acting United States Attorney Daniel Lemisch. “This brutal practice is conducted on girls for one reason, to control them as women. FGM will not be tolerated in the United States. The federal government is continuing this investigation to ensure those responsible are brought to justice.”
"Today's indictments represent the continued commitment of the FBI and our law enforcement partners to protect the most vulnerable of victims, our children, from those that would do them harm. The practice of Female Genital Mutilation (FGM) cannot be defended in any context and we will identify and bring those responsible for conducting or participating in this disturbing crime to justice", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "I would urge anyone who has information about those involved in FGM or can assist with identifying victims to report it to the FBI or HSI. Information can be reported by calling 1-800-CALL-FBI or by sending an e-TIP to FBI.GOV/FGM".
"As the first federal indictment in the U.S., these charges will hopefully deal a critical blow to stamping out this inhumane practice in the United States and around the world," said Francis. "HSI and our partners are committed to the difficult but necessary work of supporting victims and bringing everyone involved in this practice to justice."
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Detroit Division and HSI investigated the case with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit, Eastern District of Michigan and Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case
Three Family Members in North Suburban Chiropractic Group Sentenced to Federal Prison in $10.8 Million Fraud SchemeRead the Press Release
CHICAGO — A north suburban chiropractor and his brother and father have been sentenced to federal prison terms in connection with a phony billing scheme that bilked insurance carriers out of more than $10.8 million.
DR. VLADIMIR GORDIN JR., VLADIMIR GORDIN SR., and ALEXSANDER GORDIN, operated Gordin Medical Center S.C., a chiropractic clinic in Wheeling. The trio used the company to falsely bill the carriers for medical services that were either not provided or not medically necessary, and they attempted to cover up the scam by fabricating patients’ medical records. In some cases, patients knew of the overbilling and were incentivized to participate by having their deductibles met at no cost to them, or by sharing in a portion of the overbilling proceeds via checks provided to them by Gordin Jr. and Gordin Sr.
From 2006 to approximately November 2012, Gordin Medical Center and an ultrasound service that was part of the scheme submitted false bills totaling $28,775,000, causing a loss to the five carriers of $10,847,000. The loss includes medical claims administered on behalf of several union health and welfare funds in the Chicago area.
The three Gordins pleaded guilty earlier this year to healthcare fraud. U.S. District Judge Edmond E. Chang imposed the prison sentences Monday in federal court in Chicago. Vladimir Gordin Jr., 46, of Northbrook, was sentenced to seven years; Vladimir Gordin Sr., 70, of Riverwoods, was sentenced to two and a half years; and Alexsander Gordin, 34, of Northbrook, was sentenced to two years.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and E.C. Woodson, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.
“As a result of the scheme, the Gordins created a medical center whose focus, for both the chiropractors and the employees, was not patient care,” Assistant U.S. Attorneys Heather K. McShain and Sarah E. Streicker argued in the government’s sentencing memorandum. “Rather, GMC was a front for false billing; patient care was an afterthought.”
Two other defendants convicted in the case were also sentenced this week. MICHELLE KOBRAN, who owned and operated Ultrasound Mobile Service Ltd., in Vernon Hills, pleaded guilty last year to healthcare fraud. Kobran, 69, of Vernon Hills, admitted falsely billing insurance companies for ultrasounds that were performed on patients referred to her by Gordin Jr. Kobran kicked back a portion of her insurance proceeds to the Gordins. Judge Chang on Tuesday sentenced Kobran to nine months in prison.
ALINA LEVIT, 46, of Vernon Hills, worked for Gordin Medical Center as the office manager. In pleading guilty last year to misdemeanor embezzlement, Levit admitted creating phony “sign in” sheets to falsely represent that patients were physically present and received certain health-care services on a given day, when, in fact, no such treatment was rendered. Judge Chang on Tuesday sentenced Levit to 18 months of probation, including 90 days of intermittent incarceration on weekends.
To report health care fraud, logon to: StopMedicareFraud.gov.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. – A Pollock Pines woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
“Teresa Marty recruited many individuals to participate in a scheme that she claimed to have ‘perfected’ from co-defendant Harris, who traveled to help her recruit clients, to her daughter-in-law, Bandera-Marty, who churned out fraudulent tax return forms. She used her qualifications as an IRS Enrolled Agent and California licensed tax preparer to market her scheme to clients,” U.S. Attorney Talbert stated. “When the IRS shut down her business, she retaliated by filing liens against those who were assigned to stop her fraud. At least 20 clients of Marty and Advanced Financial Services have been prosecuted throughout the country for fraudulent returns during this scheme. Today’s sentences reflect the gravity of the offenses and should deter others from violating the tax laws.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay $9,500,492 in restitution to the IRS.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
A Pollock Pines, California woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using Internal Revenue Service (IRS) Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multi-million dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $9,500,492.83.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Susan Blaue Pleads Not Guilty to Central Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Susan Blaue, 39, of Woodstock, pleaded not guilty today in United States District Court in Burlington to charges that she stole money from her former employer. Chief U.S. District Judge Christina Reiss released Blaue on conditions pending trial.
On March 29, 2017, a federal grand jury in Rutland returned a three-count indictment charging Blaue with forgery, mail fraud and credit card fraud. According to the indictment, between 2012 and early 2015, Blaue was employed by ABLE Waste Management and two related companies in Plymouth. Beginning in early 2013, Blaue served as a bookkeeper for the companies, handling accounts receivables and payables and the companies’ payroll. Although she did not have check signing authority on the companies’ accounts, she did have access to a signature stamp of the companies’ owner, who was a signer.
According to the indictment, beginning in approximately April 2013 and continuing through the end of her employment in January 2015, Blaue stole approximately $130,000 from ABLE Waste Management and the related companies. The indictment alleges she did this by issuing many checks to herself without authorization, forging the owner’s signature on the checks or using the signature stamp without permission, then depositing the checks into her own bank account. Blaue also assertedly used company funds to pay her personal bills, and used ABLE credit cards to make purchases for herself. In addition, it is alleged that Blaue used company funds to pay the rent on the company-owned house she lived in while employed by ABLE.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Blaue faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the United States Secret Service and the Windsor County Sheriff’s Office.
Blaue is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
South Carolina man sentenced to 40 years in prison for sexually exploiting juvenileRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a South Carolina man was sentenced Tuesday to 480 months in prison for producing child pornography and traveling to Louisiana to have sex with a juvenile.
Frankie Maldonado, 51, of Reevesville, S.C., was sentenced by U.S. District Judge Dee D. Drell on two counts of production of child pornography and one count of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. He was also sentenced to five years of supervised release and must register as a sex offender. A federal jury found the defendant guilty on January 4, 2017 after the conclusion of the two-day trial.
According to the evidence presented at trial, Maldonado began communicating with a 15-year-old girl living in Louisiana. The defendant had known the victim since she was about 4 years old, as a result of his friendship with the victim’s father. Maldonado sent sexually explicit pictures of himself to the juvenile using text messaging in June of 2014. Thereafter he requested that she send sexually explicit pictures of herself. After receiving the images, the defendant convinced the victim to engage in sexually explicit conduct while he watched on Skype. Thereafter, he traveled to Louisiana on June 22, 2014 where he picked up the juvenile, brought her to a motel, and engaged in sexual acts with her while producing images of that sexually explicit conduct.
Homeland Security Investigations, Louisiana State Police, Beauregard Parish Sheriff’s Office, Vernon Parish Sheriff’s Office and Natchitoches Parish Sheriff’s Office, high tech crimes unit investigated the case. Assistant U.S. Attorneys John Luke Walker and Jamilla A. Bynog prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Somali Pirate Sentenced to Life for 2010 Attack on USS AshlandRead the Press Release
Mohamed Farah, 31, of Somalia, was sentenced to life plus 10 years in prison for engaging in piracy and committing other offenses pertaining to the attack on the USS Ashland, a U.S. Navy ship, in April 2010.
Today’s announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office in Virginia, and Special Agent in Charge Maureen Evans of the Naval Criminal Investigative Service’s (NCIS) Norfolk Field Office. The sentence was issued by U.S. District Judge Raymond A. Jackson.
A federal jury convicted Farah on Feb. 27, 2013. According to court documents and evidence presented at trial, Farah and five co-conspirators attacked the USS Ashland on April 10, 2010. Four of Farah’s co-conspirators were previously sentenced for their roles in the attack: Jama Idle Ibrahim (15 years in prison), Mohamed Ali Said (33 years), Mohamed Abdi Jama (life plus 30 years) and Abdicasiis Cabaase (life plus 30 years). These defendants had also previously gone to sea in February 2010 with the purpose of capturing another vessel for ransom, but were instead, intercepted by the HMS Chatham of the United Kingdom’s Royal Navy. The remaining pirate from the attack on the USS Ashland, Abdi Abshir Osman, was sentenced to life plus 10 years.
This case was investigated by the FBI and the NCIS. Assistant U.S. Attorney Joseph E. DePadilla for the Eastern District of Virginia and Trial Attorney Jerome Teresinski of the National Security Division’s Counterterrorism Section prosecuted the case. Former Assistant U.S. Attorney Benjamin L. Hatch prosecuted the case previously.
Somali Pirate Sentenced to Life for 2010 Attack of USS AshlandRead the Press Release
NORFOLK, Va. – A Somali man was sentenced to life plus 10 years in prison today for engaging in piracy and committing other offenses pertaining to the attack on the USS Ashland, a U.S. Navy ship, in April 2010.
A federal jury convicted Mohamed Farah, 31, on Feb. 27, 2013. According to court documents and evidence presented at trial, Farah and five co-conspirators attacked the USS Ashland on April 10, 2010. Four of Farah’s co-conspirators were previously sentenced for their roles in the attack: Jama Idle Ibrahim (15 years in prison), Mohamed Ali Said (33 years), Mohamed Abdi Jama (life plus 30 years) and Abdicasiis Cabaase (life plus 30 years).
These defendants had also previously gone to sea in February 2010 with the purpose of capturing another vessel for ransom, but they were instead intercepted by the HMS Chatham of the United Kingdom’s Royal Navy.
The remaining pirate from the attack on the USS Ashland, Abdi Abshir Osman, was sentenced to life plus 10 years.
Today’s announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office in Virginia, and Special Agent in Charge Maureen Evans of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office. The sentence was issued by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI and the NCIS. Assistant U.S. Attorney Joseph E. DePadilla and Trial Attorney Jerome Teresinski of the National Security Division’s Counterterrorism Section prosecuted the case. Former Assistant U.S. Attorney Benjamin L. Hatch prosecuted the case previously.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10-cr-57.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, Texas, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted that he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Schuele Boys Gang Member Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kenned, Jr. announced today that Michael Robertson, 27, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Robertson conspired with other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant obtained cocaine from a source of supply and distributed it to others for further distribution to customers. During a search of Robertson’s Eggert Road residence, officers recovered $19,000 in cash and 300 grams of cocaine.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Robertson is one of 28 Schuele Boys Gang members, associates, and other individuals arrested in this case. To date, 23 of the 28 defendants have been convicted.
Today’s plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 7, 2017, at 1:00 p.m. before Judge Arcara.
San Angelo Man Sentenced to 36 Months in Federal Prison for Filing False Income Tax ReturnsRead the Press Release
LUBBOCK — Ai Shu Cheng, 52, of San Angelo, Texas, was sentenced by Senior U.S. District Judge Sam R. Cummings to 36 months in federal prison last week, following his guilty plea in December 2016 to two counts of filing a false income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, Judge Cummings ordered that Cheng pay $1,767,566.46 in restitution to the Internal Revenue Service. Judge Cummings ordered Cheng to surrender to the Bureau of Prisons on May 26, 2017.
According to documents filed in the case, in 2011 Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2010 and under-reported his total income. Cheng reported a total income of $208,652.00. Cheng’s actual income was approximately $696,148.68, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $165,108.00.
In 2013, Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2012 and again under-reported his total income. Cheng reported a total income of $186,486.00. Cheng’s actual income was approximately $600,976.82, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $145,072.00.
Each of these income tax returns contained a written declaration that the tax return was made under penalty of perjury.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Ann Cruce-Haag prosecuted.
# # #
Romanian Woman Pleads Guilty for Her Role in Fraud SchemeRead 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 Marinela Unguru-Ducila, of Romania, who was sentenced to time served by U.S. District Judge Richard J. Arcara. For her role in a bank fraud scheme operated by her husband Nicolae Sarbu.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between August and November of 2015, Unguru-Ducila had knowledge but failed to report that Sarbu was engaged in a scheme to defraud Bank of America by using skimming devices and cameras on multiple occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas as well as in Pennsylvania and New Jersey. Sarbu, who has pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft, faces a mandatory minimum term of imprisonment of 2 years and up to 20 years when he sentenced by Judge Arcara on May 17, 2017.
Unguru-Ducila was present with Nicolae Sarbu on several occasions when he installed or removed the skimmers and cameras. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from various ATM’s. A skimmer is a device used unlawfully to record bank account information from a customer’s debit card when the card is inserted into an ATM. Sarbu also encoded the bank account information obtained by the skimmers onto magnetic strips on blank plastic cards and gift cards. Unguru-Ducila was present with Sarbu when he installed skimmers at multiple banks in North Tonawanda, NY and West Seneca, NY and failed to notify authorities about this felony crime.
The total loss suffered by Bank of America as a result of this fraudulent activity was $183,120.54.
The sentencing is the result of an investigation by immigration and Customs Enforcement, Homeland security investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Rochester Man Sentenced to 25 Years in Prison for Drug Trafficking and Gun PossessionRead 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 Ian D. Goolsby, 40, of Rochester, NY, who was convicted after a jury trial of possession of heroin with intent to distribute; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm and ammunition as a previously convicted felon; possession of a firearm with removed, altered and obliterated serial number; and unlawful possession of a controlled substance, was sentenced to 25 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Charles E. Moynihan and Craig R. Gestring, who handled the prosecution of the case, stated that on March 11, 2015, an Elmira Police Department officer conducted a traffic stop of the vehicle Goolsby was driving. When speaking to the defendant, the officer smelled marijuana coming from the car and asked Goolsby about the odor. The defendant said that it was on his clothes and that he smoked it earlier. The officer asked Goolsby to exit the vehicle and, after some discussion, he complied. A passenger was also asked to exit the vehicle. Officers searched the car and found a small amount of plant material, which was later determined to be marijuana, between the passenger seat and passenger door, as well as on the driver’s side of the car. A brown Nike shoe box was also found on the passenger side floor, inside of which was a Ruger, Model P90, .45 caliber semi-automatic pistol. The serial number had been removed or obliterated. Officers also found a magazine loaded with six .45 caliber rounds of ammunition with the handgun.
A further search of the vehicle uncovered a black insulated bag containing white, uncooked rice. Inside of this, they found 41 small wax-coated envelopes containing a white powdery substance with a stamp saying "dead man walking." A forensic chemist from the New York State Police Southern Tier Satellite Crime Laboratory examined one of the envelopes and concluded the white substance inside was heroin.The sentencing is the result of an investigation by Elmira Police Department, under the direction of Chief Joseph Kane; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Rochester Man Sentenced for Lying on Application for TSA Secure Airport IDRead 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 Darnell Jerome, 20, of Rochester, NY, who was found guilty following a jury trial of making a false statement, was sentenced to three years probation by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Craig R. Gestring and Kyle P. Rossi, who handled the prosecution of the case, stated that the defendant applied for employment at a restaurant at the Greater Rochester International Airport. The restaurant was located in the sterile area of the airport, beyond the security screening zone. Because they have access to knives and other contraband items to which screened passengers do not, employees of the airport or contractors who work in the restaurants or stores inside the sterile area are required to obtain a special federal Security Identification Display Area (SIDA) badge and pass a federal background investigation, which includes a security threat assessment.
In March 2016, Jerome filled out a security clearance application and falsely reported that he had never been arrested. However, only a month before he falsified the SIDA clearance application form, Jerome was convicted of a felony, Robbery in the Second Degree, in Monroe County for which he was sentenced to five years probation. During that robbery, the defendant displayed what appeared to be a firearm.
Federal regulations put in place by the Department of Homeland Security since September 11, 2001, prohibit persons with certain disqualifying felony criminal convictions from obtaining a clearance to work at an airport. The defendant’s 2016 Robbery conviction, which is considered a crime of violence, was such a disqualifying offense. The security clearance application completed by the defendant clearly listed the specific disqualifying conditions on its face.
The sentencing is the culmination of an investigation by the Federal Air Marshal Service, under the direction of Supervisory Air Marshal-in-Charge William Hall.Rochester Couple Pleads Guilty in Fraud SchemeRead 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 that Kassandra Whylly, 21, and Thomas Porter, Jr., 20, both of Rochester, NY, pleaded guilty to financial institution fraud before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum sentence 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between April 2016 and November 2016, the defendants executed an ongoing scheme to defraud the ESL Federal Credit Union by making false deposits into ATM machines and fraudulently withdrawing cash based upon the false deposits. Over the course of several months, Whylly and Porter actively recruited ESL members to participate in more than 100 separate fraudulent transactions, through which the defendants stole a combined sum of more than $35,000.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Whylly is scheduled to be sentenced on August 2, 2017, before Judge Wolford. Porter will be sentenced on August 3, 2017.