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Tuesday 25 April 2017
Operation "Real Time": Anderson Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Timothy Garrett Holmes, age 22, of Anderson, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing this morning established that on January 10, 2017, at approximately 5:30pm, Anderson City Police officers were attempting to conduct a traffic stop when they observed Holmes, the front seat passenger of the vehicle, open the passenger door while the vehicle was moving and discard an item which was later determined to be a blue glass pipe with methamphetamine residue.Once the vehicle stopped, officers observed Holmes remove an item from his person and throw it towards the driver as they approached. Officers were then able to observe in plain view a handgun in the floorboard at the driver’s feet. Holmes and the driver were then removed from the vehicle while officers secured the firearm, a loaded Glock .40 caliber pistol with an extended magazine and a round in the chamber. Officers also located a backpack containing additional ammunition and two pipe bombs in the vehicle.
After his arrest, Holmes, who was on state probation at the time, was interviewed at the Anderson Police Department by law enforcement. Holmes told the officers that he bought the gun off the streets for protection and that he knew he was not able to possess a firearm because he was a felon, which is why he took the firearm off and tossed it into the floor board at the driver’s feet. Regarding the pipe bombs, Holmes told the officers that they were given to him for protection. ATF later removed and detonated the pipe bombs.
Holmes faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Anderson City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Holmes was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Anderson Police Department and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Greenville County Sheriff’s Office, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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New York Man Sentenced to Prison for Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of New York, New York has been sentenced in federal court to 33 months in jail and ordered to make restitution in the amount of $73,720 on his conviction of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Funmilayo Aliyu, 55, of New York, New York.
According to information presented to the court, Aliyu allowed his bank accounts to be used as repositories for fraudulently obtained federal tax refunds. Aliyu would then withdraw the refunds in cash, keep a portion for himself and provide the remainder of the funds to his co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Aliyu.
New Bedford Man Sentenced for Drug TraffickingRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston in connection with operating a drug trafficking ring in southeastern Massachusetts.
Israel Santiago, a/k/a “Reysito,” 39, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to two years in prison and three years of supervised release. In October 2016, Santiago pleaded guilty to conspiracy to distribute cocaine. In June 2016, Santiago was arrested and charged along with eight others in connection with distributing cocaine in the Bristol County area.
From 2014 to 2016, co-defendant Luis Lopez was the head of a drug trafficking organization that imported, at a minimum, 50 to100 kilograms of cocaine from Puerto Rico to Massachusetts, and then distributed it in New Bedford and Fall River with co-defendants Chindy Diaz, Israel Santiago, and others. In June 2016, Santiago attempted to receive a package containing one kilogram of cocaine at 24/7 Fitness in New Bedford. Once the package arrived, Santiago was to provide the cocaine to Lopez; however, unbeknownst to both men, the package had been seized and opened by investigators, who discovered the cocaine. Due to the ongoing investigation, Santiago and Lopez were arrested a few weeks later.
In January 2017, Lopez was sentenced to 15 years in prison. Of the ten defendants charged in connection with this case, nine have pleaded guilty.
United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Bristol County District Thomas M. Quinn; Fall River Police Chief Daniel S. Racine; New Bedford Police Chief Joseph C. Cordeiro; Fairhaven Police Chief Michael Myers; and Bristol County Sheriff Thomas M. Hodgson, made the announcement today. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the cases.
Mount Pleasant Woman Pleads Guilty to Tax FraudRead the Press Release
Contact Person: Matt Austin (843) 727-4381
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Cynthia Cave, age 46, of Mount Pleasant, pled guilty in federal court in Charleston, South Carolina, to three counts of Filing a False Tax Return, corresponding to tax years 2009-2011, in violation of 26 U.S.C. 7206(1). United States District Judge Richard M. Gergel, of Charleston, presided over the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented in the case, which was collected through a joint investigation by agents of the IRS and FBI, established that Cave worked as the officer manager for Coastal Facial Plastic Surgery in Mt. Pleasant. As the office manager, she received various forms of compensation that she did not report to the IRS. In 2009, she underreported her income by at least $55,000. In 2010, she underreported her income by at least $68,000. In 2011, she underreported her income by at least $100,000. As a result, she owes the U.S. Treasury $105,276 in back taxes.
As part of her guilty plea, she also agreed to pay her employer, Dr. Thomas Funcik, $130,457, to settle claims that she received excess compensation.
The case was investigated by agents from the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorneys Matt Austin of the Charleston office and Winston Holliday of the Columbia office prosecuted the case.
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Montville Man Pleads Guilty to Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMES BUTLER, 24, of Montville, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 31, 2016, members of the Montville Police Department responded to an apartment on Route 32 for an “untimely death” investigation. Upon arrival, officers found a deceased 34-year-old woman lying face down on the bathroom floor.
The Connecticut’s Office of the Chief Medical Examiner subsequently determined the cause of the woman’s death to be “Acute Ethanol and Fentanyl Intoxication.”
The investigation revealed that the victim was supplied with heroin/fentanyl by BUTLER.
Distribution of heroin carries a maximum term of imprisonment of 20 years. BUTLER is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on July 12, 2017.
BUTLER has been detained since his arrest on January 31, 2017.
This investigation is being conducted by the Drug Enforcement Administration, Connecticut State Police, Groton Police Department, Montville Police Department, New London Police Department, Statewide Narcotics Task Force – East, and the Regional Community Enhancement Task Force.
This matter is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Michigan Man Sentenced to More Than Two Years in Prison for Operating Multi-million Dollar Internet Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Troy Barnes, 53, of Riverview, Michigan, was sentenced today to 33 months in prison for operating a multi-million dollar Internet Ponzi scheme that defrauded more than 10,000 investor victims worldwide, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Barnes was also ordered to spend three years under court supervision after he is released from prison. Furthermore, Barnes was ordered to forfeit $4.7 million and to pay $302,297 in restitution to victims.
Barnes’ conspirator, Kristine Louise Johnson of Aurora, Colorado, was sentenced previously to 21 months in prison for her role in the scheme.
Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Barnes was the owner of “Work with Troy Barnes, Inc.” (WWTB), which did business over the Internet under the name of “The Active Community” (TAC). Barnes was the President and Marketing Director of WWTB responsible for promoting the online scheme. Johnson served as TAC’s Chief Financial Officer, and managed TAC’s day-to-day operations, including the company’s bank accounts.
Filed court documents indicate from about April 2014 to February 2015, Barnes induced victims to invest money in TAC, claiming “Achieve is the answer to all of our prayers…” and falsely promising investors would receive a bogus 700% return on their investment. According to the indictment to which he pleaded guilty, Barnes also told his victims they could make as much money as they wanted claiming the investment was “never-ending,” when, in fact, TAC operated solely as a pyramid scheme and initial investors were paid with later victims’ money. According to the criminal information to which she pleaded guilty, Johnson told victims that TAC was not a pyramid scheme when, in truth and in fact, TAC operated solely as a pyramid scheme.
According to court filings, as the scheme grew in size and scope, Barnes and Johnson concealed the true nature of the scheme through multiple misrepresentations. According to court records, when the conspirators became concerned that the use of the term “investment” would draw scrutiny from regulators, they instructed victim-investors, “We ARE NOT an INVESTMENT program, please don’t use that term when you speak or post about our re-purchase strategy.” Even when TAC was unable to operate because their payment processor concluded that TAC was indeed operating a Ponzi scheme and ceased doing business with the company, Barnes and Johnson lied to victims, falsely stating that, “The only reason that [TAC] is not paying out today is that our processor can’t handle the volume of money we are paying our members.”
According to court records, in order to sustain the scheme, Barnes and Johnson encouraged investors to “re-purchase” positions in the matrix, thereby reducing the amount of money needed to pay out to early investors and enabling the fraudsters to prolong the scheme. As indicated in court documents, the investment scheme began to crumble when payment processors stopped processing the Ponzi payments to victim-investors. By the time the scheme collapsed in February 2015, the conspirators had defrauded over 10,000 investors in the Charlotte area and worldwide. According to court records, over the course of the scheme, Barnes used over $140,000 of the victims’ money for his own enrichment and Johnson misappropriated over $200,000 for her own personal use.
Barnes will be ordered to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The U.S. Secret Service led the investigation. In making today’s announcement, U.S. Attorney Rose thanked the Denver Regional Office of the U.S. Securities and Exchange Commission for its assistance with the case.
Assistant U.S. Attorneys Corey F. Ellis, Daniel Ryan, and Taylor J. Phillips, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Members of Heroin and Cocaine Conspiracy IndictedRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an indictment charging Joaquin Alvarez-Rodriguez (29, Puerto Rico), Jose Polanco (29, Orlando), Quenten Desue (31, Orlando), Antonio Jackson (31, Orlando), and Daron Lorenza Jones (30, Orlando) with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. If convicted on all counts, Alvarez-Rodriguez and Polanco each face a mandatory minimum term of 10 years, up to life, in federal prison. Desue, Jackson, and Jones each face a maximum term of 20 years’ imprisonment.
Two other co-conspirators, Christian Amaro (34, Orlando) and Joel Gutierrez (34, Orlando), have pleaded guilty to an information charging them with conspiracy to distribute, and to possess with the intent to distribute, heroin and cocaine. They each face a mandatory minimum mandatory term of 5 years, up to 40 years, in federal prison. Gutierrez also pleaded guilty to possessing a firearm as a convicted felon, and he faces a maximum term of 10 years’ imprisonment. As part of their plea agreements, Amaro and Gutierrez agreed to forfeit six firearms, $11,793 in cash, and approximately $22,590 worth of jewelry, all of which are traceable to the charged offenses or to the proceeds of the crimes.
According to court documents, from at least 2015, Alvarez-Rodriguez and Polanco shipped multiple kilograms of cocaine from Puerto Rico to the Orlando area and conspired with Amaro and others to distribute it. Additionally, Amaro and Gutierrez conspired with Desue, Jackson, Jones, and others to distribute cocaine and heroin in central Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Embry J. Kidd.
Marshall County man sentenced for unlawful possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Christopher L. Wright, 37, of Glen Easton, West Virginia, was sentenced in federal court yesterday to 30 months incarceration for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wright, who had previously been convicted of a felony offense in Marshall County, is prohibited from possessing a firearm. He admitted to possessing a 9mm pistol in July 2016.
Wright pled guilty to one count of “Unlawful Possession of a Firearm” in January 2017.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Moundsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Man Facing Cocaine Charges Pleads Guilty to Buying GunsRead the Press Release
ALEXANDRIA, Va. – An Arlington man pleaded guilty today to willfully receiving a firearm while under indictment in Virginia state court.
According to the statement of facts filed with the plea agreement and other court records, Anthony Fernandez Medrano, 28, was indicted in Virginia state court in 2015 for possessing cocaine, a schedule II controlled substance. While still under indictment, and not lawfully able to purchase or possess firearms, Fernandez Medrano sought and purchased guns from a private party seller and signed bills of sale confirming the purchases.
Fernandez Medrano faces a maximum penalty of five years in prison when sentenced on August 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Nathaniel Smith III is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-70.
Leader of Cocaine and Ecstasy Smuggling Ring Pleads Guilty Following Extradition from CanadaRead the Press Release
The Canadian organizer of a 2005 attempt to smuggle 41 kilos of cocaine into Canada pleaded guilty today in U.S. District Court in Seattle to conspiracy to distribute cocaine and ecstasy, announced U.S. Attorney Annette L. Hayes. KEVIN DONALD KERFOOT, 53, of Surrey, British Columbia, Canada was indicted in July 2006, nine months after his co-conspirators were arrested in the Bellingham area as they tried to move 41 kilos of cocaine up I-5 and onto a boat for transit to Canada. The person who was going to ferry the cocaine to Canada, brought more than seven kilos of the drug MDMA or ‘ecstasy’ into the U.S. for distribution via KERFOOT’s drug network. KERFOOT fought extradition from Canada for years, and was ultimately extradited to the Western District of Washington and arraigned on the indictment in December 2016. When sentenced by U.S. District Judge Thomas S. Zilly on July 27, 2017, KERFOOT faces a mandatory minimum ten years in prison.
According to records filed in the case, a confidential source alerted agents that a large load of cocaine was traveling towards the border in October 2005. Acting on the information, a Washington State Trooper identified a suspicious vehicle driving erratically. After stopping the vehicle, a narcotics K-9 alerted to the presence of cocaine in the vehicle and officers discovered the 41 kilos of cocaine. Agents worked to arrest other members of the smuggling ring including the captain of a boat waiting at the Bellingham marina, and two other men who were waiting to pick up and distribute the ecstasy the boat had brought down from Canada. KERFOOT was identified as the person in charge of the smuggling operation.
The other members of the smuggling ring were sentenced to prison terms ranging from six-and-a-half years to just over three years. All have since been released after serving their sentences.
The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Washington State Patrol, U.S. Immigration and Customs Enforcement (ICE), U.S. Border Patrol, the U.S. Coast Guard and the Royal Canadian Mounted Police (RCMP).
The case is being prosecuted by Assistant United States Attorney Vince Lombardi, with assistance from the Department of Justice Office of International Affairs (OIA).
Laredo Judge Sends Michigan Man to Prison for Transporting Illegal AliensRead the Press Release
LAREDO, Texas – A 61-year-old Michigan man has been sentenced in Laredo federal court after he was caught attempting to smuggle 10 illegal aliens in the back of a Penske rental truck, announced Acting U.S. Attorney Abe Martinez. A jury convicted George Lester Stewart, of Wheeler, Michigan, June 22, 2016, following only an hour of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Stewart to prison for 71 months to be immediately followed by three years of supervised release. In handing down the sentence, Judge Marmolejo noted Stewart’s extensive criminal history and the dangerous manner in which he was transporting the illegal aliens.
At trial, the jury heard that on April 5, 2016, Stewart pulled up to the primary inspection lane at the checkpoint near Freer in a yellow Penske rental truck. A Border Patrol agent noticed Stewart seemed nervous when he claimed the truck was empty. He also stated that he had picked the truck up in Laredo and was driving it for Penske to drop off in Corpus Christi.
Authorities conducted an x-ray examination of the truck which revealed 10 individuals concealed in the cargo area of the padlocked truck. The aliens had been locked there for several hours with outside temperatures reaching nearly 90 degrees. Stewart did not have a key to unlock the padlock.
The jury heard that Stewart first admitted he had been paid to drive a moving truck from McAllen to Houston, that he provided a false address when renting the truck and that he was told to provide false information to Border Patrol. During trial, however, Stewart claimed he had accepted a job offer to transport furniture from McAllen to Houston. He denied knowledge of the aliens in the back of the truck as well as having any involvement in the transportation of undocumented aliens.
The jury was not convinced and found him guilty as charged – one count of conspiracy to transport aliens for financial gain and two counts of transporting illegal aliens.
Stewart will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorneys Chris Howard and Jorge Vela prosecuted the case.
Justice Department Asks Federal Court to Shut Down Southern Florida Tax Return Preparer and Require Her to Give Her Fees to the United StatesRead the Press Release
Lena Cotton of Wellington, Florida, and her business, Professional Accounting Ldc LLC, located at 3676 Collin Drive in West Palm Beach, Florida, prepare false federal income tax returns for their customers, according to a new civil suit filed by the Department of Justice. The complaint, filed in federal court in West Palm Beach asks a federal judge to bar Cotton and her business, from preparing tax returns for others and order the defendants to disgorge the gross receipts they obtained from the preparation of federal tax returns that made improper claims.
The complaint alleges that the defendants prepare tax returns for customers that understate liabilities and overstate refunds by falsifying information, fabricating deductions, and claiming bogus credits. The complaint alleges that one of their signature schemes is manufacturing education credits for expenses that customers never incurred. For instance, the complaint alleges that the Internal Revenue Service (IRS) has uncovered at least 31 instances of the defendants claiming, for purposes of education credits, that customers attended Palm Beach State College, previously known as Palm Beach Community College, even though the school has no record of their attendance during the relevant time periods.
The complaint further alleges that the defendants frequently selected incorrect filing statuses for their customers, claimed other false tax credits, and misrepresented the extent to which customers used their personal vehicles for work purposes. According to the complaint, a review of 1,034 returns prepared by the defendants for tax years 2012 through 2014 uncovered misstatements on 671 returns (64.9 percent) that cost the United States over $900,000 in tax revenue.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017, and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Judge Sentences Brooklyn Man for Role in Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Brooklyn, New York has been sentenced in federal court to 4 months in jail and ordered to make restitution in the amount of $38,656 on his conviction of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the sentence on Festus Owusu, 44, of Brooklyn, New York.
According to information presented to the court, Owusu allowed his bank accounts to be used as repositories for fraudulently obtained federal tax refunds. Owusu would then withdraw the refunds in cash, keep a portion for himself and provide the remainder of the funds to his co-conspirators.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Owusu.
Jackson Woman Sentenced for Tax FraudRead the Press Release
Jackson, Miss – Tiffany Brown, 35, of Jackson, was sentenced on April 21, 2017, to 48 months in federal prison followed by three years of supervised release for conspiracy to defraud the United States and theft of government funds, announced Acting U.S. Attorney Harold Brittain and IRS-Criminal Investigation Special Agent in Charge Jerome McDuffie. Brown previously pled guilty to the charge.
As part of the conspiracy, Brown and other co-conspirators would cause the presentation of false claims to the IRS by preparing and submitting false U.S. Individual Income Tax Returns, Forms 1040 for tax year 2009 through 2012, using stolen identities. Brown would then direct the refunds to be deposited into the bank accounts of other co-conspirators involved in the scheme. The 865 false claims totaled over $1,000,000 in fraud. She was ordered to pay $1,086,026.00 in restitution.
This case was investigated by IRS- Criminal Investigation and the U.S. Secret Service. It was prosecuted by Assistant U.S. Attorney Mary Helen Wall.
Individual Convicted Overseas of Being Terrorist Who Participated in the 1969 British Consulate, Supermarket Bombings in Jerusalem Pleads Guilty to Lying to Obtain U.S. CitizenshipRead the Press Release
A naturalized United States citizen, who was convicted overseas for having been a member of the Popular Front for the Liberation of Palestine (PFLP), which has been designated a Terrorist Organization by the United States government, and also was convicted for participation in two terrorist bombings, pleaded guilty today to having obtained her United States citizenship unlawfully, acting U.S. Attorney Daniel Lemisch announced.
Joining Lemisch in the announcement was Steve Francis, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Entering the guilty plea was Rasmieh Yousef Odeh,69, a Chicago-area resident.
Acting U.S. Attorney Lemisch stated, “In 1969, the Popular Front for the Liberation of Palestine conducted two bombings in Jerusalem, Israel. One was at a Supersol supermarket, in which two individuals were killed and many more wounded. The second bombing was at the British Consulate. Defendant Odeh was arrested and charged with participation in the bombings, and in 1970 was convicted. She was sentenced to life imprisonment, but was released in 1979 after ten years’ imprisonment, as part of a prisoner exchange.”
Odeh obtained a United States immigrant visa in 1994 and has lived in the United States for the last 22 years. In 2004, she obtained United States citizenship. A
According to the plea agreement signed by Odeh and accepted by the court, Odeh admitted that she lied about her criminal history, by falsely denying that she ever had been arrested, charged with a crime, convicted, or imprisoned. Odeh admitted today that she had omitted her Israeli arrest, charge, conviction and imprisonment from her United States naturalization application even though she knew she was required to disclose them. Odeh also admitted that ’At the time she made the false statements, Defendant knew the statements were false, and that she made the false statements intentionally and not as a result of any mistake, Post-Traumatic Stress Disorder or any other psychological issue or condition, as she had previously claimed in court proceedings, or for any innocent reason. Odeh also admitted that at the time she made the false statements, she knew that it was unlawful for her to provide false information to the United States government in connection with her application for Immigrant Visa and her application for naturalization. Had Odeh revealed the truth about her criminal history, as she was required to by law, she never would have been granted an immigrant visa, admitted to the United States, allowed to live here for the last 22 years, or granted United States citizenship.
As a result of her conviction for having obtained naturalization unlawfully, Odeh will be stripped of her United States citizenship when she is sentenced by U.S. District Judge Gershwin A. Drain. Sentencing was set for August 17, 2017 at 2pm. As part of the plea agreement, Odeh agreed to a judicial order of removal, under which she will be deported to her nation of citizenship, Jordan, and will not be allowed to reenter the United States.
“The United States will never be a safe haven for individuals seeking to distance themselves from their pasts,” said Steve Francis, Special Agent in Charge for HSI Detroit. “When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk.”
The maximum sentence for the offense is ten years, of which Odeh already has served about five weeks. Under the terms of the plea agreement, Odeh will not face additional imprisonment but will be removed from the United States following sentencing.
Acting U.S. Attorney Lemisch commended Immigration and Customs Enforcement, Homeland Security Investigations, and particularly Special Agent Stephen A. Webber, for the outstanding investigation which led to Odeh’s conviction. The prosecution was conducted by Assistant U.S. Attorneys Jonathan Tukel and Michael C. Martin.
Indictment: Wichita Woman Provided Gun to Man Charged with MurderRead the Press Release
WICHITA, KAN. – A Wichita woman was indicted Tuesday on federal charges of providing a gun to a man who is charged with shooting and killing three people near Moundridge, Kan., U.S. Attorney Tom Beall said.
Myrta M. Rangel, 31, Wichita, is charged with:
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One count of aiding and abetting possession of a firearm in furtherance of drug trafficking (count one).
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One count of possessing a firearm in furtherance of drug trafficking (count two).
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One count of conspiracy to carry a firearm in furtherance of drug trafficking (count three).
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One count of transferring a firearm to be used in drug trafficking (count four).
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One count of unlawful possession of a firearm following a felony conviction (count five).
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One count of giving a firearm to a convicted felon (count six).
It is alleged that on Oct. 29, 2016, Rangel gave a .40 caliber handgun to Jereme Nelson. Nelson is charged in Harvey County District Court with killing three people: Travis Street, Angela May Graevs and Richard Prouty.
If convicted, she faces the following penalties:
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Count one: Not less than 10 years and a fine up to $250,000.
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Count two: Not less than five years and a fine up to $250,000.
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Count three: Up to 20 years and a fine up to $250,000.
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Counts four, five and six: Up to 10 years and a fine up to $250,000.
The Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Jack E. Smith, 37, Scammon, Kan., is charged with unlawfully trying to dispose of dispose of hazardous waste by setting fire to it.
Smith is charged with one count of unlawfully transporting hazardous waste and one count of unlawfully disposing of hazardous waste in violation of the Resource Conservation Recovery Act.
The indictment alleges that Smith towed a panel truck containing polymers and paints used in the making of gymnasium floors to property owned by his uncle in Crawford County, Kan. Neither he nor his uncle had a permit to transport, store or dispose of hazardous waste. Smith is alleged to have attempted to dispose of the hazardous waste by setting fire to the truck.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jeffrey Shock, 37, Wichita, Kan., is charged with escaping from federal custody at Mirror, Inc., 3820 Toben, Wichita. Kan. The crime occurred on April 2, 2017.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Verlarina Ruth Collins, 50, Winfield, Kan., is charged with one count of failing to report to serve a 45-month federal prison sentence. The crime occurred April 7, 2017.
If convicted, she faces a penalty of up to five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Serafin Alegria-Zamora, 35, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported, two counts of misusing a Social Security number and one count of aggravated identity theft. He was found April 11, 2017, in Sedgwick County, Kan.
If convicted, he faces up to two years and a fine up to $250,000 on the re-entry charge, up to five years and a fine up to $250,000 on each Social Security count and a mandatory two years (consecutive) on the identity theft count. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Sergio Roberto Garcia-Buezo, 31, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 19, 2017, in Grant County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Flores-Rivera, 34, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found April 17, 2017, in Butler County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting
Darnell Wilks, 48, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 18, 2017, in Finney County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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IRS Employee Indicted for Stealing Taxpayers’ IDs and Filing Fraudulent ReturnsRead the Press Release
A federal grand jury sitting in the Northern District of Georgia indicted an Internal Revenue Service (IRS) employee today for wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to the indictment, since November 2010, Stephanie Parker of Atlanta, Georgia, worked at the IRS and had access to taxpayers’ personal identifying information, such as social security numbers and dates of birth. The indictment alleges that between September 2012 and April 2013, Parker exploited her IRS accesses to steal such personal information, which she then used to file tax returns seeking refunds in the names of other individuals. Parker allegedly directed the fraudulently obtained refunds into nominee bank accounts and used some of those funds to purchase money orders.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Parker faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a statutory minimum sentence of two years in prison for the aggravated identity theft counts. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Michael Boteler and Melanie Smith of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Harrison County woman sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stacy Michelle Hitt-Snyder, 36, of Bridgeport, West Virginia was sentenced to 15 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hitt-Snyder sold heroin near Glen Elk Park in Harrison County, West Virginia. She pled guilty in September 2015 to “Distribution of Heroin within 1,000 feet of a Protected Location.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Greater Harrison County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Hammond Woman Charged with Operating Fraudulent Tax Preparation BusinessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROJONAH HARRIS, age 35, of Hammond, was charged today in a one-count Bill of Information with aiding and abetting in the preparation of false tax returns.
According to the Bill of Information, beginning in about 2012, HARRIS owned and operated Harris Finance and Tax Service, a tax preparation business in Hammond. Between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 2,010 federal income tax returns for customers claiming not less than $11,100,000 in withholdings. An investigation revealed that HARRIS regularly claimed false deductions and claimed false federal tax withholdings for her clients to generate unnecessarily large refunds to which they were not entitled. In total, between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 267 false and fraudulent tax returns, resulting in inappropriate and unnecessary refunds of not less than approximately $1,115,578.
If convicted, HARRIS faces a maximum term of imprisonment of not more than three years followed by up to one year of supervised release, and a $100,000 fine.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Glenburn Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jonathan Gardiner, 31, of Glenburn, Maine pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm.
According to court records, on November 13, 2014, law enforcement officers recovered a 12-gauge shotgun in the attic of the defendant’s residence and a 9-mm pistol on the ground behind the residence. Forensic testing revealed that the defendant held both firearms. Gardiner was prohibited from possessing firearms because of Maine felony convictions for burglary, aggravated assault, theft by unlawful use of property, and drug trafficking.
If Gardiner is found to be an armed career criminal, he faces an enhanced sentence of between 15 years and life in prison, five years of supervised release, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Penobscot County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police Crime Laboratory.
Georgia Man Pleads Guilty to Bank FraudRead the Press Release
ERIE, Pa. - A resident of Alpharetta, Georgia, pleaded guilty in federal court to a charge of bank fraud, Acting United States Attorney Soo C. Song announced today.
Willie Hugh Joy, 47, of Alpharetta, Georgia, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around January 2009, to in and around January 2013, Joy and his co-defendants engaged in a fraudulent loan program in which a hierarchy of brokers, managers, processors and straw borrowers falsified bank loan documents and supporting documentation in order to obtain various auto and consumer loans and lines of credit from banks and credit unions.
Judge Cercone scheduled sentencing for August 14, 2017 at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Joy on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Joy.
Four More Sentenced for $19 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that four more defendants were sentenced in federal court today for their roles in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
David Tayce, 67, of Lucas, Texas; David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas); and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Tayce was sentenced to six years and six months in federal prison without parole and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison without parole and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
Albert Davis, 56, of Richardson, Texas, was sentenced yesterday to 12 years in federal prison without parole for leading the conspiracy. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme.
Each of the defendants pleaded guilty, in separate but related cases, to participating in a conspiracy to commit wire fraud from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor. According to court documents, Davis functioned as the leader and CEO. Tayce functioned as the CFO or number two defendant in the scheme. Hernon functioned as a COO or manager in the scheme. The Bryants were employees of Davis and had a smaller role in the scheme.
The decade-long criminal conduct, including relevant conduct from several other jurisdictions, involved perjured testimony, doctored trial exhibits, a manipulated multi-million dollar civil verdict, a fake bankruptcy filing, the use of fake people with fake email accounts, impersonated companies and a phalanx of over 70 entities to conceal it.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
In addition to impersonating Cerner Corporation, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
These cases were prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. They were investigated by the FBI.
Four Men Arrested in McDonald’s Robbery Detained Pending HearingsRead the Press Release
St. Thomas, USVI – Hanselo Recio, 18, Betel Paulino, 18, and Junior Feliz, 22, of the Dominican Republic, and Helwood Paris, 20, of Puerto Rico, made their initial appearances today before U.S. Magistrate Judge Ruth Miller. Each of the four men is charged with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, possession of a firearm during a crime of violence, conspiracy to possess a firearm during a crime of violence, and territorial charges of robbery, possession of a firearm during a crime of violence, and possession of a firearm in a public housing zone, Acting United States Attorney Joycelyn Hewlett announced. The men were detained pending detention hearings to be scheduled.
According to the Information, on March 25, 2017, members of the Virgin Islands Police Department (VIPD) responded to reports of a robbery at the McDonald’s restaurant in Lockhart Shopping Center on St. Thomas. After an exchange of gunfire, Recio, who was inside McDonald’s surrendered and was taken into custody. The follow-up investigation identified Paulino, Feliz and Paris as the remaining persons involved in the robbery.
The penalty for conviction of Hobbs Act robbery or the local robbery charge is up to 20 years, and for the federal charge of possession of a firearm during a crime of violence, it is a mandatory 10-year consecutive sentence. For the territorial possession of a firearm during a crime of violence, the penalty is up to 15 years and for possession of a firearm in a public housing zone, the penalty is up to 30 years.
The case is being investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms and the VIPD. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Acting United State Attorney Hewlett reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Four Defendants Arrested in Livingston County Methamphetamine RingRead 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 four defendants were arrested and charged by criminal complaint with operating a methamphetamine conspiracy in Livingston County, NY. Kurt Redance, 26, Kenneth Hoag, 55, both of Dansville, NY; Brandie Schumacher, 37, of Rose, NY; and Andrew Culliton, 37, of West Seneca, NY, were charged with possession with intent to distribute and distribution of methamphetamine and conspiracy to possess and distribute methamphetamine. The charges carry a minimum penalty of 10 years in prison, a maximum of life and $10,000,000 fine. In addition, defendants Redance and Hoag were charged with maintaining a drug involved premises. Redance also faces a charge of possession with intent to distribute and distribution of methamphetamine on a premises where a child was located.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the complaint, each of the defendants sold methamphetamine to a confidential source. The sales were made at The Bone Yard, a scrap yard and mechanic workshop on State Highway 36 , in Dansville, which is owned by defendant Hoag; at the Spring Road South residence of defendant Redance, also in Dansville; and at a parking lot in West Seneca. Redance’s three-year-old child was present during at least one of the controlled purchases at his residence.
The defendants made initial appearances before U.S. Magistrate Judge Marian W. Payson. Redance, Schumacher, and Culliton are being held; Hoag was released to home detention with electronic monitoring.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Richard Allen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Fort Worth Man Sentenced to 120 Months in Federal Prison for Enticement of a MinorRead the Press Release
Fort Worth, Texas — A 49-year-old Fort Worth, Texas, man, Scott Brandon Tosch, was sentenced this morning by Senior U.S. District Judge Terry R. Means to serve 120 months in federal prison, following his guilty plea in December 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Means ordered Tosch to report to the Bureau of Prisons on June 26, 2017.
According to documents filed in the case, on August 16, 2016, Tosch responsed to a Craigslist ad entitled, “hey bored and lookin for somethin to do while still summertime... school coming up soon... hmu.” At the time, Tosch did not know that an officer with the Fort Worth Police Department was working in an undercover capacity and had posted the ad. The undercover officer responded to the email stating that he was 13 years old. The conversation continued and were sexually graphic in nature. The conversation then led to Tosch coming to pick up what he believed to be a 13-year-old female for sexual intercourse.
On August 18, 2016, Tosch arrived at the agreed location, and the Fort Worth Police Department took Tosch into custody.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Megan Fahey was in charge of the prosecution.
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Former Texan Gets Hammered with 30-Year Prison SentenceRead the Press Release
BROWNSVILLE, Texas – A 33-year-old man who resided in Palmetto, Florida, and Pasadena, Texas, has been ordered to federal prison for trafficking narcotics from Mexico through Brownsville to Florida, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Sosa Oct. 7, 2016, of conspiring to possess and possessing with intent to distribute three kilograms of methamphetamine following a five-day trial and approximately three hours of deliberations.
Today, U.S. District Judge Andrew Hanen ordered Sosa to federal prison for 360 months to be immediately followed by five years of supervised release.
During the trial, three individuals involved in the conspiracy testified that Sosa hired them to bring packages of methamphetamine on the bus from Brownsville for delivery to him in Florida. They would carry packages of narcotics on their person while on the bus and successfully delivered the drugs to him in Florida from September 2013 to March 2014. They were eventually apprehended at the bus station in Harlingen. They pleaded guilty to their roles in the conspiracy and were later sentenced to prison terms ranging from six to 20 years in prison.
The jury also heard that Sosa had familial connections in Mexico who assisted him in crossing the narcotics from Mexico to Brownsville.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Karen Betancourt and Jody Young are prosecuting the case.
Former Jefferson City Business Owner Pleads Guilty to EBay Burglary SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Jefferson City, Mo., business owner pleaded guilty in federal court today to his role in a scheme to burglarize residences in Columbia, Mo., and sell the stolen items on eBay.
Yevhen Olejovich Drobovych, 27, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to one count of mail fraud contained in a July 20, 2016, federal indictment. Drobovych was the owner of Jefferson City Computer Services.
Drobovych was connected to a large number of burglaries in Columbia, primarily targeting college housing and electronic equipment. Several individuals were identified during the investigation who burglarized residences and forwarded the stolen items to Drobovych. By pleading guilty today, Drobovych admitted that he posted the stolen items for sale on eBay and mailed them to buyers by the U.S. Postal Service or other interstate carrier.
A specific example cited in today’s plea agreement involves a burglary that occurred on Nov. 22, 2014. Several thousand dollars’ worth of camera equipment and Apple MacBooks were stolen. The next day, Drobovych sold some of the stolen items on eBay – three cameras, lenses and other equipment – to a buyer in Kansas City, Mo., for $6,800. The buyer found the burglary victim’s information on the cameras and, making contact with the victim, learned the camera equipment had been stolen.
The buyer told investigators that he had made previous purchases from Drobovych on eBay, and that Drobovych had notified him by text about the camera equipment for sale. Drobovych told the Kansas City buyer that he purchased the equipment from a person who came into his store.
In a separate but related case, Henry Anthony Williams, also known as “Foolish,” 27, of Jefferson City, pleaded guilty on March 22, 2017, to his role in the scheme. Williams also pleaded guilty to possessing stolen firearms.
Williams admitted that he had sold stolen equipment to Drobovych, who sold the items on eBay. Williams admitted that he committed at least one of the three residential burglaries that occurred on Nov. 17, 2015, among residences on Commercial Drive in Columbia.
Williams also admitted that he possessed firearms that had been stolen during the burglary of a residence in Columbia. Moberly, Mo., police officers received a report from a local gun store on Sept. 17, 2014, that someone was trying to sell one of the stolen firearms – a customized Remington rifle – to the store’s owner. The person who tried to sell the stolen rifle told officers that he had purchased it from another man, identified as “LJ,” who in turn said he purchased it from Williams. LJ told officers that Williams had other firearms for sale. On Sept. 24, 2014, LJ arranged to meet Williams in the Hooters parking lot in Columbia to purchase another firearm. In a controlled undercover transaction, LJ was provided $350 and purchased a Marlin .22-caliber rifle and a Western Field 12-gauge shotgun from Williams. The Marlin rifle was among the firearms stolen in the Columbia burglary.
Under federal statutes, Drobovych is subject to a sentence of up to 20 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 Jefferson City, Mo., Police Department, the FBI, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Expedia IT Support Worker Sentenced for Insider TradingRead the Press Release
A computer support technician formerly employed at Expedia offices in San Francisco was sentenced today in U.S. District Court in Seattle to 15 months in prison for securities fraud, announced U.S. Attorney Annette L. Hayes. JONATHAN LY, 28, of San Francisco, pleaded guilty in December 2016, admitting he used his position in tech support at Expedia to access emails of Expedia executives so that he could trade in Expedia stock and illegally profit from non-public information. At sentencing U.S. District Judge John C. Coughenour imposed three years supervised release.
“This was not a one-time lapse in judgement – this defendant used his technology skills to repeatedly invade the email accounts of Expedia executives so that he could enrich himself at the expense of others,” said U.S. Attorney Annette L. Hayes. “Even after he moved on to a better paying position at a different technology firm he continued his crimes, all while trying to make it look like other employees were at fault. I commend Expedia for quickly contacting law enforcement and working with investigators to stop the computer intrusions and identify those responsible.”
According to records filed in the case, between 2013 and 2015, LY was employed by Bellevue based Expedia as a Senior IT Technician in the San Francisco office of subsidiary Hotwire.com. In order to provide IT support, LY had network privileges that allowed him to remotely access the electronic devices of Expedia executives. Using those privileges LY accessed documents and emails containing non- public information on the devices of both the Chief Financial Officer and the Head of Investor Relations. Using the non-public information, LY executed a series of well-timed trades in Expedia stock options.
Even after he left the company in 2015, LY kept an Expedia laptop, and without the knowledge of the company, continued to access the electronic devices and email accounts of Expedia executives. LY used his know-how to make it appear as though other Expedia employees were actually the ones accessing the devices. Shortly after discovering the computer intrusions, Expedia reported the misconduct to the FBI and undertook its own forensic investigation. Because of the quick reporting, the FBI was able to trace the computer intrusion to LY. As part of his plea agreement LY will repay Expedia the $81,592 it spent investigating the computer intrusion.
LY faces a separate Securities and Exchange Commission action requiring him to pay back the more than $331,000 in illegal profits he made in the scheme.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Katheryn Kim Frierson.
Former Corrections Officer Sentenced to Federal Prison for Smuggling Drugs into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a former Alaska Department of Corrections employee was sentenced to eight months in federal prison for his role in smuggling drugs into Goose Creek Correctional Center (GCCC) in Wasilla, Alaska.
Adam Jason Spindler, 33, of Wasilla, a former Corrections Officer at GCCC, was sentenced today by U.S. District Judge Sharon L. Gleason, to eight months in federal prison, three years of supervised release, forfeiture of his 2011 pickup truck, a $1,400 fine, and 120 hours of community service. On
Aug. 29, 2016, Spindler pled guilty to one count of drug conspiracy and one count of possession of controlled substances with the intent to distribute.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, between at least March 30, 2016, and May 23, 2016, Spindler agreed on multiple occasions to smuggle drugs into GCCC for several different GCCC inmates housed in the section of GCCC that Spindler was responsible for guarding as a Corrections Officer. More specifically, Spindler met with several inmates’ respective drug associates at locations outside of GCCC to obtain drugs, and then smuggled those drugs into GCCC and delivered them to the particular inmate for whom Spindler had obtained and smuggled the drugs. Spindler got the drugs into the prison by hiding them when he reported for work. As a Corrections Officer, Spindler had to pass through a metal detector but was not routinely subjected to pat-down or further searches when he entered GCCC. To coordinate these drug trafficking schemes, Spindler obtained contact information for each co-conspirator inmate’s drug courier(s) from the applicable inmate, and then communicated with the drug courier via telephone and text message to arrange meetings outside of GCCC to obtain the drugs.
One of the drug schemes that Spindler was involved in was his May 2016 conspiracy with inmate Edward Wayne George, aka “Bigs,” and George’s girlfriend, Taylor Hunter, to smuggle drugs into GCCC for distribution to other inmates. George was a GCCC inmate who was housed in the same section of GCCC where Spindler worked as a Corrections Officer. Spindler got Hunter’s contact information from George and from there, Spindler and Hunter coordinated the drug delivery directly. Between May 5 and May 25, 2016, Spindler had contact with Hunter approximately 35 times.
On May 23, 2016, as law enforcement officers looked on, Spindler, who was dressed in his Alaska Department of Corrections uniform, met Hunter at a McDonald’s restaurant in Wasilla to retrieve the drugs that Spindler planned to smuggle to George. Hunter then got into Spindler’s truck and she handed Spindler a plastic baggie containing heroin and marijuana. Spindler then drove from the McDonald’s directly to GCCC. Spindler entered GCCC to begin his shift and was detained and subsequently arrested by the Federal Bureau of Investigation (FBI).
Spindler admitted that he was paid approximately $1,400 altogether for smuggling drugs into GCCC, but made it clear that he was doing it for the “excitement” not the money.
At sentencing, Judge Gleason noted the seriousness of Spindler’s crimes and recognized “the enormous” and multi-faceted impact that introducing drugs into a prison environment has to GCCC inmates, GCCC personnel, and public trust. In addition, the Judge specifically noted the need for the sentence imposed to deter others by sending the “message that this conduct cannot be tolerated,” particularly by a Corrections Officer like Spindler who “betrayed public trust.” Judge Gleason also noted that Spindler’s crimes were not a “one time event or one time error in judgment,” but spanned two months, and were perpetrated in “a prison environment.” The Judge specifically noted being “troubled” by Spindler being corrupted by the lure of, in his words, “excitement.”
Edward Wayne George, 27, was previously sentenced on April 6, 2017, to 33 months in prison, followed by three years of supervised release, for his role in the conspiracy. At his sentencing, Judge Gleason noted that the offense endangered not just the other GCCC inmates but, importantly, GCCC employees, “who leave their families every day” to work within the state’s largest prison.
Taylor Hunter, 20, is scheduled to be sentenced on May 17, 2017, at 1:30 P.M.
“The vast majority of government employees work hard every day to serve the people of the nation and our state,” said Acting U.S. Attorney Schroder. “However, when one of them becomes corrupt, it is necessary to hold them accountable.”
“Over the past year, we’ve developed strong working relationships, especially with the Department of Corrections to identify possible cases of corruption within our prisons,” said FBI Special Agent in Charge, Marlin Ritzman. “This case is just the beginning of our collaboration with DOC. FBI Anchorage is committed to rooting out corruption at whatever level it exists.”
Acting U.S. Attorney Schroder commended the FBI who conducted the investigation, as well as the Alaska Department of Corrections for their substantial assistance, leading to the successful prosecution of this case.
Florida Man Sentenced to 53 Months in Prison for Defrauding Bergen County, New Jersey, Company Out $1.5 MillionRead the Press Release
TRENTON, N.J. – A Windermere, Florida, man was sentenced today to 53 months in prison for using phony invoices to fraudulently obtain more than $1.5 million from a factoring company in Bergen County, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jerry Guidice, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company in which the trucking company would assign some of its accounts receivable in return for short-term financing. Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.
In addition to the prison term, Judge Thompson sentenced Guidice to three years of supervised release and ordered him to pay restitution of $1.6 million.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Christopher Atcachunas Esq., Orlando, Florida
Florida Couple Arrested for Smuggling Lovebirds Protected Under the Endangered Species ActRead the Press Release
A complaint was unsealed earlier today in Brooklyn federal court charging Robert Burgos and Vanessa Burgos with illegally importing a dozen Fischer Lovebirds into the United States in violation of the Endangered Species Act. The defendants were arrested this morning in Avon Park, Florida, and their initial appearances are scheduled for tomorrow morning at 9:30 a.m. at the United States Courthouse in Fort Pierce, Florida.[1]
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Ed Grace, Deputy Chief of Law Enforcement, United States Fish and Wildlife Service (FWS).
Fischer Lovebirds, also known as Agapornis fischeri, are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that protects wildlife that may become endangered due to the demands of international markets. As a result, Fischer Lovebirds may be imported into the United States from a foreign country only if the importer possesses a valid CITES export or re-export permit from the foreign country of origin.
As alleged in the complaint, in late June 2015, a shipment of Fischer Lovebirds, arrived at John F. Kennedy International Airport in Queens, New York, from Madrid, Spain, falsely labelled as Rosy-Faced Lovebirds (or Agapornis roseicollis), which are not CITES-protected. The shipment was imported by Aviary La Familia, Inc., a Florida-based company run by the defendants, and was being held at the United States Department of Agriculture (USDA) quarantine center in New York.
Over the course of the investigation, the USDA sent photographs of the lovebirds from the June 11, 2015 shipment to FWS, and a forensic ornithologist at the FWS National Forensics Laboratory confirmed that the lovebirds were not Rosy-Faced Lovebirds, but were, in fact, Fischer Lovebirds.
As further alleged, the investigation additionally revealed that the defendants allegedly traveled to Indonesia to pick out the Fischer Lovebirds and used Facebook to coordinate the smuggling of the Fischer Lovebirds from Indonesia, including by conspiring with others to falsify import paperwork. The defendants also arranged for the Fischer Lovebirds to be shipped to Spain prior to entry into the United States in an attempt to evade U.S. restrictions on the import of birds from Indonesia that were in place at the time.
“For personal profit, the defendants knowingly conspired to evade an international treaty and federal laws enacted to protect a species of birds from the demands of the commercial market, and they will be held to account,” stated Acting United States Attorney Rohde.
“The smuggling of protected birds into the U.S. jeopardizes the health and survival of our native bird species,” Deputy Chief of Law Enforcement Grace stated. “In this case, smugglers allegedly used false documents and purposely traveled through Spain to hide the fact that most of these birds originated in Indonesia. The vigilance of our special agents and wildlife inspectors exposed this global wildlife trafficking scheme.”
Assistant United States Attorney Alicia N. Washington is in charge of the prosecution.
The Defendants:
ROBERT BURGOS
Age: 42
Avon Park, Florida
VANESSA BURGOS
Age: 32
Avon Park, Florida
E.D.N.Y. Docket No. 17-MJ-306
[1] The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Final Two Methamphetamine Conspirators SentencedRead the Press Release
Lynchburg, VIRGINIA – The final two defendants in an interstate drug trafficking conspiracy were sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Ivan Rodriguez Chavez, 36, of Forest, Va., who was previously convicted of one count of conspiring to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime, was sentenced today to a term of imprisonment of 180 months. In a separate hearing, the Court imposed a sentence of 104 months upon defendant Brent Michael Hutchins, 28, of Goode, Va., who had been convicted of conspiring with Chavez to distribute methamphetamine and of possessing a firearm while being an unlawful user of a controlled substance.
During previous hearings in U.S. District Court, Justin Ray Goodman and William Matthew Hylton had been sentenced to 100 months and 94 months, respectively, for their roles as distributors on behalf of the conspiracy. Christiana Hudgins received a sentence of 36 months.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bedford County Sheriff’s Office and the Roanoke City Police Department. Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Federal, State and Local Law Enforcement Officials Promote DEA Prescription Drug Take-Back DayRead the Press Release
Middletown, Conn. – National Prescription Drug Take-Back Day is Saturday, April 29, and Connecticut residents are encouraged to bring their potentially dangerous, unwanted medicines to more than 60 collection sites around the state between 10:00 a.m. to 2:00 p.m.
Individuals can find a nearby collection site by visiting www.dea.gov and clicking on the “Take-Back Site Locations” link.
U.S. Attorney Deirdre Daly, DEA Assistant Special Agent in Charge Brian Boyle, Middlesex County Assistant State’s Attorney Peter McShane, Connecticut State Police Colonel Alaric Fox and Middletown Police Chief William McKenna convened at the Middletown Police Department this afternoon to promote the event. The Middletown Police Department will serve as a collection location for this Saturday’s Drug Take-Back Day.
“The opioid epidemic continues to ravage our state as it has states all across the country,” said U.S. Attorney Daly. “Thousands of Connecticut families have lost loved ones to drug overdoses. Tragically, last year alone 917 people in Connecticut died from an overdose and the numbers of deaths are increasing. Far too often the abuse started with painkillers or other prescription narcotics. Again and again, we find victims who were injured and became addicted to legally-prescribed opioids, or family members and friends who experiment with leftover pills they find in medicine cabinets. You may be surprised by the quantity and types of drugs you have in your home. I strongly urge you to collect all of your excess drugs and dispose of them this Saturday at one of more than 60 locations across our state. By doing so, you may be saving someone close to you from addiction, or much worse.”
“Many Americans are not aware that medicines that 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.”
“It is clear that the Take Back Days and the medication collection boxes at police stations have increased awareness of the serious problem of addiction and the need to properly dispose of over-the-counter prescription medicine,” said State’s Attorney McShane. “I am glad that police and prosecutors are taking a proactive approach to aid in the fight in the epidemic that we are faced with.”
“The Connecticut State Police, along with the balance of our law enforcement partners, remain fully committed to addressing the scourge of opioid addiction, through enforcement, education and community service,” said Colonel Fox. “The Drug Take Back Day is but one of the many steps law enforcement is committed to in order to combat this issue.”
“We are happy to, once again, participate in the DEA’s National Drug Take Back Day,” said Chief McKenna. “On Saturday, officers will be made available to any member of the public who wishes to drop off any unused, or expired, prescription medications. The timing of the event unfortunately comes as law enforcement agencies across the country are teaming up with other agencies, hospitals, medical providers and many other organizations in an attempt to combat the opioid epidemic. The goal is to educate the public on the risks associated with the use of these deadly chemicals. Local and federal law enforcement agencies continue to investigate the illegal distribution of these drugs to stop the street level dealing that has resulted in an extraordinary number of overdose deaths. We have also teamed up with the U.S. DOJ, the DEA and our local States Attorney’s office to ensure proper overdose investigation protocols are met, that teamwork is achieved and that communication continues to combat this deadly issue that is affecting more and more families across our city, state and nation.”
Many local police departments in Connecticut, and Connecticut State Police barracks, maintain permanent drop-off receptacles so the public can dispose of unneeded prescription medications anytime throughout the year with no questions asked. Click here for a list of these permanent locations.
U.S. Attorney Daly noted that the U.S. Attorney’s Office and DEA continue to spearhead a comprehensive enforcement and public awareness initiative to prevent opioid addiction and reduce the number of overdose deaths caused by heroin, fentanyl and prescription opioids.
The U.S. Attorney’s Office and DEA, working in close partnership with State’s Attorneys, Connecticut State Police and police departments across the state, are targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As part of this initiative, local law enforcement officers are performing time-sensitive investigative techniques to preserve all evidence at the scene of an overdose death. Police contact the DEA at the early stages of an investigation and ensure that an autopsy of the decedent is performed. Investigators determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted by federal or state authorities.
Since the beginning of 2016, as part of this initiative, the DEA, working with state and local counterparts, has conducted approximately 120 investigations, and the U.S. Attorney’s Office has prosecuted approximately 60 individuals.
Last week, the U.S. Attorney’s Office, DEA, Waterbury State’s Attorney and the Connecticut Office of the Chief Medical Examiner conducted opioid overdose death investigation training to approximately 180 police officers from across the state.
The U.S. Attorney’s Office also has formed a Heroin Action Education Team (HEAT), which has conducted opioid awareness presentations at numerous high schools and middle schools in Connecticut. The presentation typically includes an Assistant U.S. Attorney, a DEA special agent and a parent who has lost a child to a drug overdose. To date, these presentations have reached more than 15,000 students.
For more information on HEAT, please click here.
The HEAT presentations also include a showing of the FBI/DEA film “Chasing the Dragon,” and an opioid awareness video produced by the U.S. Attorney’s Office.
Federal Grand Jury Indicts Irving Woman on Wire Fraud Charges Stemming from $1 Million Ponzi SchemeRead the Press Release
DALLAS —Nemelee Liwanag Jiao, 47, of Irving, Texas, was indicted last week by a federal grand jury in Dallas, Texas, on two counts of wire fraud for orchestrating a Ponzi scheme that cost at least 35 investors more than $1,000,000, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiao made her initial appearance last week before U.S. Magistrate Judge Ramirez, who ordered her to surrender her passport and released her on bond pending trial.
According to the indictment, beginning in February 2009 and continuing through September 2016, Jiao devised a scheme to cause individuals to invest in promissory notes purportedly issued by Shepherd’s Light Learning Center and Lord of Peace Learning Center, two non-profit schools located in the Philippines, but instead used the invested funds for her personal benefit. Jiao raised at least $1,000,000 from at least 35 investors.
Specifically, Jiao represented to investors that she was a representative of Shepherd’s Light and Lord of Peace and entered into investment contracts, also known as promissory notes, with investors falsely promising rates of return of 10% to 100% on investments. Jiao also promised repayment of principle and interest resulting from the investment within 30 days to one year following the investment. Many of the investment contracts were notarized to make the investments appear legitimate. Jiao then directed investors to write checks and wire funds to bank accounts controlled by her. Jiao used the investors’ funds for her own benefit, including a country club membership and personal expenses.
The indictment includes a forfeiture allegation that would require Jiao, upon conviction, to forfeit funds in the amount constituting the proceeds traceable to the offense.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for wire fraud is 20 years in federal prison and a $250,000 fine.
If you believe you were the victim of criminal fraud committed by Nemelee Liwanag Jiao, please contact the FBI at 972-559-5000.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Father and Son Business Owners Get Prison Sentences for Failing to File TaxesRead the Press Release
ERIE, Pa. - Two residents of Warren, Pennsylvania, have been sentenced in federal court on their convictions of violating federal tax and currency transaction laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone sentenced John Branch, 45, of Warren, Pennsylvania, to 12 months and 1 day in jail, a $25,000 fine, and ordered to make restitution in the amount of $377,643.74. Judge Cercone sentenced Randall Branch, 65, of Warren, Pennsylvania to 24 months in jail, a $25,000 fine and ordered to make restitution in the amount of $420,117.40.
According to information presented to the court, the father and son defendants owned a business through which they sold oil and natural gas through various brokers. Between 2006 and 2012, the defendants received combined gross income from their oil and natural gas business in excess of $6,900,000.00. Despite their business income, the defendants stopped filing tax returns with the IRS after 1997. John Branch was sentenced for failing to file income tax returns. Randall Branch was sentenced for failing to file a tax return and of conspiring to defraud the United States for the purpose of impairing, impeding and defeating the functions of the IRS in the computation, assessment and collection of income taxes. According to the facts supporting the conviction of Randall Branch, while failing to file tax returns, he also began to dispute his obligation to pay taxes, and he challenged the authority of the IRS to assess and collect taxes. As part of the conspiracy conviction for Randall Branch, the evidence presented to the court disclosed that he avoided the financial threshold reporting requirements on the FinCEN Form 104, Currency Transaction Report (CTR) and impeded the function of the IRS to assess and collect taxes by structuring financial transactions in amounts less than $10,000.00. He then cashed those checks, regularly doing so with multiple checks, at different bank branches, on the same day.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of the Branches.
Erie Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
Daniel Warren Talley, 32, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on October 21, 2016, Talley knowingly possessed a stolen firearm which he unlawfully possessed while being a convicted felon. The firearm was seized by investigators after a search warrant was executed at Talley’s residence in Erie, Pennsylvania. The firearm had been stolen from a residence in Millcreek Township, Pennsylvania in September 2016.
Judge Cercone scheduled sentencing for August 14, 2017 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Talley.
East Chicago Man Indicted for Using Counterfeit Securities to Defraud Gary Housing AuthorityRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced an indictment charging Ashley D. Dunlap, 54, of East Chicago, Indiana with two counts of uttering a counterfeit security.
The indictment alleges, in July 2013, the U.S. Department of Housing and Urban Development approved federal funding for building renovations at the Delaney and Dorie Miller public housing projects operated by Gary Housing Authority (GHA). Dunlap’s construction company was awarded the project, worth $347,500. The successful bidder was required to provide a surety. Dunlap purported to provide the surety – in the form a 20% cash escrow – to GHA on or about September 3, 2013 with two counterfeit instruments purporting to be Chase Bank cashier’s checks in the amounts of $20,000 and $49,600.
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This indictment resulted from an investigation conducted by the United States Department of Housing and Urban Development, Office of Inspector General. This case is being handled by Assistant United States Attorneys Maria Lerner and Abizer Zanzi.
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Dominican National Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston in connection with trafficking heroin and fentanyl in Taunton and surrounding communities.
Manuel Romero-Gonsalez, aka Pablo, 40, who previously resided in Providence, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 66 months in prison and three years of supervised release. Romero-Gonsalez will face removal proceedings following the completion of his federal sentence. In January 2017, Romero-Gonsalez pleaded guilty to a superseding indictment charging him with conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Romero-Gonsalez was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton, Mass., and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013. Romero-Gonsalez worked with his brother, Francis Gonsalez-Romero, his sister, Maria Elena Ocasio, Cory Nickerson and William Rodriguez to buy and sell heroin and occasionally fentanyl.
Seventeen of the 26 defendants charged in the superseding indictment have pleaded guilty (including Gonsalez-Romero, Ocasio, Nickerson and Rodriguez) and six, including Romero-Gonsalez, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit, Katherine Ferguson and Ann Taylor of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Delaware Man Indicted for "Sextorting" Three Minors in MarylandRead the Press Release
WILMINGTON, Del. – Acting U.S. Attorney David C. Weiss for the District of Delaware announced today that a federal grand jury sitting in Wilmington indicted Scott C. Foster on April 13, 2017, on charges related to the production, receipt, and possession of child pornography.
Defendant Foster, 37, of Dover, Delaware made his initial appearance before a federal magistrate judge on April 24, 2017, where his federal Indictment was unsealed. Foster allegedly used a fake Facebook account under the name of “Chase Reacher” to harass, threaten, and coerce minor females into making and sending sexually explicit photographs.
According to the Indictment, from August 2016 through September 2016, Foster knowingly persuaded two Maryland minors to engage in sexually explicit conduct for the purpose of producing images of the conduct and knowingly received child pornography from the two minors. During the same time period, the Indictment alleges that Foster knowingly attempted to persuade and induce a third Maryland minor to engage in sexually explicit conduct for the purpose of producing images of the conduct. Foster is also charged with possession of child pornography.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Delaware Child Predator Task Force, and the Caroline County, Maryland Sheriff’s Office investigated, and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware is prosecuting the case.
This investigation is an outgrowth of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’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.justice.gov/psc.
Any person having information about this matter is encouraged to contact Homeland Security Investigations at (302) 428-0104.
Cross Lanes felon sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man who sold drugs while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Darrell Spicer, 60, previously pleaded guilty to possession with intent to distribute heroin. In today’s hearing, he was sentenced to six years in federal prison for that offense. He was also sentenced to an additional year and a half in prison for violating his federal supervised release. The sentences will be served consecutively.
Spicer admitted that on June 15, 2016, he sold a substance that he believed was heroin to a confidential informant working with the Kanawha County Sheriff’s Department. That substance later field-tested positive for fentanyl. Based on that controlled drug buy, a detective from the Sheriff’s Tactical Operations Patrol (STOP) Team obtained a search warrant for Spicer’s residence in Cross Lanes. While searching Spicer’s residence, officers discovered heroin, fentanyl, and over $7,000 in cash, which included pre-recorded buy money used in the controlled purchase. Spicer was present during the search and admitted the recovered drugs belonged to him and that the money was from illegal drug activity.
The Kanawha County Sheriff’s Department’s STOP Team conducted the investigation. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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.
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Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernmentRead the Press Release
Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set asides for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation, two months of which were home confinement, and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorney Justin P. Murphy of the Antitrust Division.
Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernnmentRead the Press Release
WASHINGTON – Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set aside for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
Connecticut Man Pleads Guilty to Drug Distribution ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Hernandez, 35, of Waterbury, Connecticut, pled guilty in U.S. District Court to distribution of heroin and cocaine base, commonly known as “crack.”
According to court records, on November 30, 2016, Hernandez distributed heroin and crack to an individual working with the law enforcement agents at a residence in Hermon, Maine.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and at least three years of supervised release.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration; and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Columbia, Tennessee Man Ordered Detained by U.S. Magistrate in Sacramento, CaliforniaRead the Press Release
Tad Cummins, 50, of Columbia, Tenn., appeared before a U.S. Magistrate in Sacramento, California today and was ordered to be held in custody, pending his subsequent transfer to the Middle District of Tennessee, to await trial on the charge of transporting a minor across state lines for the purpose of engaging in unlawful sexual activity, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Cummins was charged in a criminal complaint on April 20, 2017, after being located in Cecilville, Calif. with the 15 year-old female victim. As alleged in the complaint, Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tenn. area on March 13, 2017.
Cummins was arrested by FBI agents on Friday, April 21, 2017, while in the custody of the Siskiyou County, Calif. Sheriff. He appeared before U.S. Magistrate Judge Kendall J. Newman this afternoon for a detention hearing. Magistrate Judge Newman ordered that he be transferred to the Middle District of Tennessee as soon as possible for further proceedings.
If convicted, Cummins faces a mandatory minimum sentence of 10 years in prison, up to life.
This case was investigated by the FBI and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Phil Wehby and Sara Beth Myers of the Middle District of Tennessee and Jason Hitt of the Eastern District of California.
The charges brought by this complaint are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Citizen of Mexico Sentenced to 15 Months in Prison for Illegally Reentering U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 46, a citizen of Mexico recently residing in Norwalk, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 15 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016. On January 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chicago Man Sentenced to Federal Prison for Heroin OffensesRead the Press Release
A Chicago resident was sentenced to serve 85 months in prison for distribution of heroin and conspiracy to distribute heroin in the St. Louis metropolitan area, announced United States Attorney Donald S. Boyce for the Southern District of Illinois.
According to documents filed with the Court, Lacy Edward Snead, 53, was charged in a superseding indictment on December 16, 2015, along with two co-defendants: Alfred Reeves, Jr., 43, of O’Fallon, Ill., and Ciera McNeal, 29 of East St. Louis, Ill. Snead was charged with distributing heroin on March 5, 2013, and with participating in an ongoing conspiracy to distribute heroin over a three-year period of time.
Snead and Reeves, sold heroin to a confidential informant on March 5, 2013, and continued to be involved in heroin distribution thereafter. On June 18, 2015, Snead traveled from Chicago with Reeves and McNeil, transporting approximately 150 grams of heroin that was intended to be distributed in the St. Louis metropolitan area. Snead pleaded guilty in September of 2016. He was sentenced on Friday, April 21, 2017.
Both of Snead’s co-defendants, McNeil and Reeves, were sentenced in October of 2016. McNeil was sentenced to serve 30 months in prison, and Reeves was sentenced to serve 67 months in prison.
The investigation was conducted by agents from the Drug Enforcement Administration and the Madison County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Charlotte Man Sentenced to Two Years in Connection with Jamaican-based Lottery Fraud SchemeRead the Press Release
CHARLOTTE, N.C. –Jahnoy Davis, 25, of Charlotte, was sentenced today to 24 months in prison for his involvement in a Jamaican-based lottery fraud scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Davis to two years of supervised release and ordered the defendant to pay $216,619 as restitution to 12 victims.
According to today’s sentencing hearing and documents filed in the case, from January 2015 to March 2016, Davis was part of a Jamaican-based lottery fraud scheme. Court records show that co-conspirators operating in call centers in Jamaica and elsewhere contacted victims and falsely told them they were the winners of sweepstakes and other prizes. These victims were usually elderly and located throughout the United States. According to court records, the co-conspirators told the victims that they needed to pay various fees in order to claim the prizes and directed the victims to mail cash to co-conspirators, including to Davis.
Court records indicate that the cash frequently was concealed in a magazine inside the postal package. Davis recruited a number of individuals to receive packages and conspired with a U.S. Postal employee to divert packages from that employee’s route. For example, in or about August and September 2015, a victim identified as “W.R.” was contacted by the co-conspirators and informed that he was the winner of a $7.5 million sweepstakes prize. The victim was told that in order to claim the prize, he needed to pay fees in advance. On at least seven occasions, the victim mailed cash via the U.S. mail to various addresses within Charlotte, as instructed by the co-conspirators. The victim was never awarded the $7.5 million “prize.”
Court records indicate that, generally, once Davis received the mailed cash from the sweepstakes victims, he would wire the money in small increments to co-conspirators in Jamaica. In order to conceal the nature of the proceeds, as well as the owner of the proceeds, Davis would also recruit other individuals to send the cash to Jamaica in their names. Davis lied to those individuals about the source of the cash and the purpose of the transfers. According to court records, Davis defrauded at least 12 victims between $250,000 and $500,000.
Davis pleaded guilty in January 2017 to one count of money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
On April 3, 2017, Antonio Terrell Brown, a former Charlotte-area mail carrier, pleaded guilty to mail theft charges for his involvement the conspiracy. He is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, under the direction of Inspector in Charge David M. McGinnis, and the U.S. Postal Service, Office of Inspector General, under the direction of Area Special Agent in Charge Paul L. Bowman, for leading the investigation into Davis.
Assistant U.S. Attorney Kelli Ferry, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Chandler Man Sentenced to Prison for Health Care Fraud and Identity TheftRead the Press Release
PHOENIX – On April 24, 2017, Elseddig Elmarioud Musa, 43, of Chandler, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 57 months in federal prison and three years of supervised release. Musa also was ordered to pay more than $1.2 million in restitution. Musa was convicted by a jury of 35 counts of health care fraud and four counts of aggravated identity theft.
Musa falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for thousands of medical transports that never occurred, generating more than a million dollars in fraudulent payments from AHCCCS. AHCCCS is Arizona’s Medicaid agency that offers health care programs to serve Arizona residents who meet certain income and other requirements. owned and operated Arizona One Medical Transportation LLC, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation. From January 2012 through June 2014, ’s company submitted more than 15,000 false claims to AHCCCS for medical transports that never occurred, generating approximately $1,203,680.08 in fraudulent payments from AHCCCS to Musa.
The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS-OIG. The prosecution was handled by Jillian Besancon and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01265-DLR-PHX
RELEASE NUMBER: 2017-037_Musa
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Career Offender Sentenced to over 21 Years for Assaulting A Federal Officer with A Dangerous and Deadly WeaponRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Abasi Akeem Smith (30, Orlando) to 21 years and 6 months in federal prison for assaulting a federal officer with a dangerous or deadly weapon. Smith’s criminal history includes multiple drug-trafficking convictions, so he was sentenced as a career offender pursuant to the U.S. Sentencing Commission Guidelines. Moreover, he was on federal supervised release at the time of the assault, and his sentence includes 18 months’ imprisonment for violating the conditions of his supervised release. Smith was convicted on February 7, 2017, following a jury trial.
According to testimony and evidence presented at trial, on March 30, 2016, task force officers with the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force were seeking to apprehend Smith pursuant to a felony arrest warrant and located him driving a vehicle. When the officers attempted to block Smith into a parking lot, he rammed one of the officer’s vehicles and then attempted to escape before hitting a fence and another, unoccupied vehicle. Smith subsequently jumped over the fence and fled on foot, before eventually being apprehended.
This case was investigated by the U.S. Marshals Service, the Orange County Sheriff’s Office, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Beckley area physician pleads guilty to federal oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A jury trial that began yesterday in federal court in Beckley on a 22-count indictment against a Beckley area physician ended today with the defendant’s guilty plea to a federal drug crime, announced United States Attorney Carol Casto. Dr. Michael Kostenko, D.O., 61, of Daniels, entered his guilty plea to distribution of oxycodone not for legitimate medical purposes and beyond the bounds of medical practice. The crime Kostenko pleaded guilty to was contained in Count Seven of the Superseding Indictment.
Kostenko admitted that he owned and operated the Coal Country Clinic, a medical practice located in his Raleigh County residence. Kostenko also admitted that on December 9, 2013, he distributed oxycodone, a powerful pain medication, not for legitimate medical purposes. Specifically, Kostenko admitted that on that day, approximately 271 patients arrived at Kostenko’s residence seeking oxycodone prescriptions. Kostenko additionally admitted that his staff collected over $20,000 cash from the patients that he later deposited in a local bank in amounts of less than $10,000. Kostenko further admitted that on that day he wrote over 370 oxycodone prescriptions totaling 22,255 pain pills. Moreover, Kostenko admitted that he wrote these prescriptions from his upstairs bedroom, without seeing any of the patients, and that his staff handed out the prescriptions. Finally, Kostenko admitted that by writing the oxycodone prescriptions, he acted beyond the bounds of professional medical practice.
“West Virginia is at the epicenter of a drug crisis that is ravaging our state and has left us with the highest overdose rate in the nation. Doctors are entrusted with prescribing authority in order to heal and protect patients, not betray that trust by contributing to prescription drug addiction,” stated United States Attorney Carol Casto. “My office will continue working with law enforcement to aggressively investigate and prosecute doctors who illegally prescribe the pain pills that have devastated our communities.”
Kostenko faces up to 20 years in federal prison and a fine of up to $1 million when he is sentenced on August 23, 2017.
The investigation of Kostenko and his Coal Country Clinic was led by the West Virginia State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Office of Inspector General, United States Department of Health and Human Services. The plea hearing was held before United States District Judge Irene C. Berger.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of 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.
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