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Tuesday 25 April 2017
Baltimore Woman Sentenced to over Five Years in Federal Prison for Bank Fraud and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – On Friday April 21, 2017, U.S. District Judge George L. Russell, III sentenced Yasmine Young, age 29, of Baltimore, Maryland to 66 months in prison, followed by five years of supervised release for bank fraud and narcotics conspiracy. Judge Russell also ordered Young to pay $326,487.11 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from July 2014 through October 2014, while employed at a financial institution, Young used her employee access to target customer accounts with high dollar balances. Without permission and a business purpose, she printed screen shots of the account holders’ personal information and copies of checks that had previously been written and processed. Young provided these screen shots to co-schemers.
Using the screen shots provided by Young, co-schemers called into the financial institution’s banking system and were able to bypass the verification protocols. The co-schemers ordered checks from these accounts and forged them in order to cash them or deposit them into various accounts. The financial institution identified 22 victims, all of whom had high dollar balances and all of whom had fraudulent checks drawn on their accounts. The scheme has resulted in a loss to the financial institution of over $300,000.
While awaiting trial on this charge, from November 2015 through January 2016, Young and co-defendant Kaemarr Antonio Cox with others conspired to distribute marijuana. On January 12, 2016, DEA in Maryland received information from DEA in San Diego, California regarding a suspicious United Parcel Service (UPS) parcel that was in route for an apartment in Windsor Mill, Maryland.
On January 14, 2016, a detective interdicted the parcel where a narcotics dog alerted to the parcel for illegal narcotics. DEA found 11 pounds of marijuana inside. The parcel was repackaged and delivered by an undercover detective to Windsor Mill where Young accepted the package. Later that day DEA knocked and announced their presence at the door to execute a state search and seizure warrant. Young came to the front window, but did not open the door. Forced entry was made and members of the entry team took Young and Cox, the only subjects in the residence into custody.
Cox advised that the marijuana that was delivered was his. At the time, Young was on release post-indictment and pending trial on the federal fraud charges. Young’s release conditions required that she live in the Windsor Mill apartment where the search warrant was conducted and that she not commit any new crimes. Young subsequently had her release conditions violated, was detained in federal prison and pled guilty to fraud and aggravated identity theft charges in April 2016.
Cox pled guilty to narcotics conspiracy and brandishing a weapon in furtherance of a drug trafficking crime and is scheduled to be sentenced by Judge Russell on July 14, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Drug Enforcement Administration, the Baltimore City Police Department, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.
Atlanta Concert Promoter Pleads Guilty to MDMA ConspiracyRead the Press Release
BIRMINGHAM – An Atlanta man and co-owner of a promotions company that presented musical “raves” and concerts across the Southeast pleaded guilty today in federal court to a conspiracy to distribute thousands of MDMA pills, a drug commonly known as “Ecstasy” or “Molly.”
Acting U.S. Attorney Robert O. Posey, Homeland Security Investigations Assistant Special Agent in Charge Sherry Douglas, U.S. Postal Inspection Service Inspector in Charge Adrian Gonzales, Alabama Law Enforcement Agency Secretary of Law Enforcement Hal Taylor, Alabama Attorney General Steve Marshall, and Helena Police Chief Pete Folmar announced the plea.
WOODIE LOUIS OCHLE, 40, entered his plea before U.S. District Court Judge L. Scott Coogler to one count of conspiracy to distribute 3,4 Methylenedioxymethamphetamine, or MDMA, in Jefferson and Shelby counties between February 2015 and April 2016, and to one count of possessing with intent to distribute the drug on April 13, 2016, in Jefferson County. Ochle’s sentencing date has not been set.
Ochle led an organization that distributed MDMA in Alabama and Georgia, according to his plea. Through his Atlanta business, Freakstep Promotions, Ochle set up concerts or dance events and then sold MDMA to people who attended the “raves.”
Four other people have pleaded guilty to the conspiracy and await sentencing. They are KEVIN REID PEDERSEN, 28, SHAWN EDWARD PERKINS, 22, and JENNIFER LEIGH PETITJEAN, 31, all of Birmingham, and KENTON LEE HOWARD, 38, of Chelsea.
U.S. Immigration and Customs Enforcement-HSI, U.S. Postal Inspection Service, ALEA, Alabama Attorney General’s Office and Helena Police investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Armed Marijuana Dealer Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that an armed marijuana dealer was sentenced to time served in federal court this morning. Court documents reflect that Johnny Devon Brannon, 24, of Mobile, was charged with theft of mail, conspiracy to distribute and distribution of marijuana, and using, carrying and possessing a firearm during and in relation to a drug trafficking felony. Court documents also reflect that Brannon, an employee at a mail handling station, assisted by his co-defendant Steven Bernard Tate, Jr., were intercepting packages, which they believed to contain marijuana illegally shipped via the mail. Security equipment at the facility captured images of Tate and Brannon opening packages, hiding packages of marijuana in their clothing, and leaving with it. When confronted by authorities, both admitted their illegal activities. The third co-defendant, Harold James Griffin, Jr., was also implicated as receiving the marijuana and assisting in its distribution. Brannon used his vehicle to transport the marijuana from the facility to other locations, and a search of the vehicle resulted in the discovery of drugs, drug paraphernalia and a handgun. Brannon admitted he had the gun for protection because he had been robbed several times selling marijuana. Brannon pled guilty to the charges in November of 2016.
United States District Court Judge William H. Steele imposed a sentence in Brannon’s case of time served. He ordered that Brannon serve a three-year term of supervised release. He also ordered that Brannon pay the mandatory $300 in special assessments but did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the United States Postal Inspectors. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/Albuquerque Man Pleads Guilty to Federal Armed Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Isaiah Gallegos, 22, of Albuquerque, N.M., pled guilty this morning in federal court to an armed bank robbery charge. Gallegos is the final of four defendants to enter a guilty plea in the case.
Isaiah Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Christian Herrera, 20, Christopher Gallegos, 33, and Martin Huertta, 44, all of Albuquerque, with bank robbery. According to the complaint, a source identified the defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. Three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Huertta, Miera, Herrera, Isaiah Gallegos and Christopher Gallegos were indicted on April 27, 2016, and charged with bank robbery.
During today’s proceedings, Isaiah Gallegos pled guilty to the indictment and admitted that on March 30, 2016, he participated in the robbery of the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque by acting as lookout while his co-defendants robbed the bank.
Isaiah Gallegos’ four co-defendants have entered guilty pleas and one has been sentenced. Huertta pled guilty on Sept. 9, 2016 and was sentenced on March 14, 2017 to 108 months in prison followed by five years of supervised release. Miera entered a guilty plea on Oct. 11, 2016, Christopher Gallegos entered a guilty plea on Feb. 13, 2017, and Herrera entered a guilty plea on Feb. 24, 2017. At sentencing, Isaiah Gallegos, Herrera, Christopher Gallegos and Miera each face a statutory maximum penalty of 25 years in federal prison. They remain in custody pending sentencing hearings.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
After Twenty-Six Years Drug Trafficking Fugitive Appears for Initial Hearing in MiamiRead the Press Release
A fugitive, who had been wanted on federal drug trafficking charges for 26 years, had his initial appearance in U.S. Magistrate Court today in Miami, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Gustavo Falcon, a/k/a “Taby,” 56, of Miami, had his initial appearance today in the Southern District of Florida before United States Magistrate Judge Jonathan Goodman, following his arrest on a federal warrant for a 1991 drug trafficking indictment. The parties stipulated to the defendant’s detention pending trial, with the right to revisit the ruling. The defendant’s next hearing is scheduled for May 11, 2007 in U.S. Magistrate Court.
“The passage of time does not lessen the government’s commitment to justice,” stated Acting U.S. Attorney Benjamin Greenberg. “Those who are charged federally cannot evade the law. Today, after 26 years in hiding, Gustavo Falcon was brought forward to be held accountable in U.S. District Court for his criminal acts. The U.S. Attorney’s Office is grateful for the dedicated search efforts of the U.S. Marshals Service that led to the defendant’s apprehension.”
Adolphus P. Wright, DEA Special Agent in Charge of the Miami Field Division, said, “Even after 26 years of evading capture and prosecution, the DEA, along with our law enforcement partners, remain committed to following thru until justice is fully served on Falcon and others who violate the drug laws of the United States.”
On April 10, 1991, a federal grand jury sitting in Ft. Lauderdale, Florida returned a multi-count indictment charging Gustavo Falcon, together with lead defendants Augusto Falcon, also known as “Willie Falcon”, and Salvador Magluta, with participation in a conspiracy to possess with the intent to distribute cocaine valued at over $2.3 billion. An arrest warrant was issued for defendant Gustavo Falcon’s arrest at the time of the return of the indictment in 1991. Falcon had remained a fugitive until April 12, 2017, when members of the U.S. Marshals Service arrested him in Kissimmee, Florida. Gustavo Falcon is the last of the ten defendants named in the indictment to be arrested and prosecuted in federal court in Miami. The indictment charges Gustavo Falcon with conspiracy to possess cocaine with the intent to distribute.
Mr. Greenberg commended the investigative assistance of the DEA. Greenberg thanked the U.S. Marhals Service and the Miami-Dade Police Department for their assistance with the apprehension of Gustavo Falcon. The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Michael Patrick Sullivan.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
"Operation Real Time": Simpsonville 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 Rico Mandreil Sweeney, age 39, of Simpsonville, 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 12, 2017, Simpsonville police officers responded to an address on West Georgia Road in Simpsonville, to conduct a child welfare check. While investigating, the officers spoke with Sweeney and discovered that he had outstanding warrants from Greenville County. Sweeney was searched incident to his arrest on the outstanding warrants and a loaded .380 caliber pistol located in a holster on his hip was discovered.Sweeney faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Simpsonville Police Department, Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jeanne Howard handled the case.
Sweeney 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 Simpsonville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville County Sheriff’s Office, the Greenville Police Department, the Anderson City Police Department, 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, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 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, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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"Operation Real Time": Marietta 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 Michael Wayne Capps, age 45, of Greenville, 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, agents with the South Carolina Department of Probation, Parole, and Pardon Services and the Greenville County Sheriff Office (GCSO) arrived at Capps’ residence in Marietta, South Carolina, to conduct a probation visit. Capps is currently on probation for possession with intent to distribute a controlled substance. Upon entering the residence, agents observed several people as well as what appeared to be a rifle and drug paraphernalia in plain view prompting GCSO to obtain a search warrant for the residence.A search of Capps’ bedroom revealed a loaded Sauer and Sohn .32 caliber pistol under the mattress. Agents also located over 70 rounds of additional .32 caliber ammunition in the bedroom. ATF agents responded and interviewed Capps. Capps admitted to selling narcotics out of the residence and acknowledged ownership of the Sauer and Sohn .32 caliber pistol.
Capps faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Capps 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 South Carolina Department of Probation, Parole, and Pardon Services, the GCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 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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"Operation Real Time": Greenville 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 Travius Isaiah Mayer, age 26, of Greenville, 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 June 20, 2016, members of the Greenville County Sheriff’s Office (GCSO) responded to the area of N. Watson Road and Wade Hampton Boulevard to a call about a man with a gun. Upon arrival, GCSO learned from witnesses that Mayer was involved in a single car accident, exited his vehicle with a gun, and fired the gun as a witness attempted to follow him. GCSO seized a Glock .40 caliber pistol and a spent .40 caliber shell casing from the scene.Mayer later told GCSO during an interview that he was the person driving the vehicle during the collision on N. Watson Rd. and further admitted he possessed the Glock pistol during the incident. Mayer stated he had just previously purchased the Glock pistol.
Mayer faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Mayer 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 Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, 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, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 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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"Operation Real Time": Greenville 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 Joshua Shane Verdin, age 32, of Greenville, 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) as well as possession of a firearm and ammunition after a previous conviction for a misdemeanor crime of domestic violence, a violation of Title 18, United States Code, Section 922g(9). 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 13, 2017, members of the Greenville County Sheriff’s Office (GCSO) and the Spartanburg County Sheriff’s Office (SCSO) were attempting to locate two wanted persons at a residence in Landrum, South Carolina, when they encountered Verdin. Deputies observed Verdin placing his hands near his waistband prompting them to ask if Verdin had a gun. Verdin told the deputies that he had a pistol in his waistband. One of the responding deputies, who knew Verdin to be a prohibited felon from prior interaction with Verdin, removed the loaded 9mm pistol and placed Verdin in handcuffs.Verdin faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Verdin 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 GCSO, the SCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, 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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Monday 24 April 2017
Workers Comp Manager Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Christopher Manfuso has been sentenced to six months of house arrest and ordered to immediately pay a $50,000.00 fine, for his role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
In October 2015, Christopher Manfuso of Fulton, Maryland pled guilty to a criminal Information and admitted to paying over $2.6 million in illegal kickbacks to Dr. Xiulu Ruan. The kickbacks were associated with a workers compensation dispensary within Physicians Pain Specialists of Alabama —the clinic owned by Dr. Ruan and Dr. Couch — which was managed by a company that employed Manfuso, and later by a company he owned.At trial, Manfuso testified that he worked for Industrial Pharmaceuticals Management (“IPM”) in 2011 when IPM contracted with Dr. Ruan and Dr. Couch to manage a workers compensation dispensary within PPSA. The contract was structured whereby IPM purchased the drugs for the dispensary upfront, deducted the cost from the amount collected in reimbursement, and then paid the doctors. Manfuso testified that with most other doctors across the country, IPM paid a percentage of the reimbursement collected minus cost. However, Dr. Ruan negotiated for guaranteed monthly minimum payments for himself and Dr. Couch. Thus, Dr. Ruan and Dr. Couch made at least the minimum guarantee each month, even if the collected reimbursement minus the cost would not warrant that amount.
Manfuso testified that the monthly guarantees began at $45,000.00 and $15,000.00 a month for Dr. Ruan and Dr. Couch, respectively. However, over the five-year period these illegal kickbacks were paid, Dr. Ruan’s guaranteed monthly minimum payment increased all the way to $80,000.00 per month. Evidence at trial also showed these guaranteed monthly payments to the doctors did not go into the general PPSA business accounts. Rather, the checks were mailed to the doctors’ homes and were deposited in their personal bank accounts.
When asked to describe the difference between a pharmacy and a workers compensation dispensary, Manfuso testified that a dispensary can provide the drugs to the patient right there in the doctor’s office. Furthermore, the reimbursement from workers compensation companies was typically significantly higher — sometimes 100% higher — than the reimbursement rate paid by health insurance companies for the exact same drugs filled at a pharmacy. So while Dr. Ruan and Dr. Couch owned their own pharmacy as well, there was a much greater financial incentive to direct all of their workers compensation patients to the dispensary instead.
In light of Manfuso’s substantial cooperation and testimony at trial, the United States requested a sentence 50% below the low end of his advisory sentencing guidelines range. Based on the range determined by the Court, the sentencing recommendation was 15 months. However, in light of Manfuso’s cooperation and other factors, Judge Granade declined to give Manfuso an in-custody sentence. Rather, he was sentenced to three years of probation, the first six months of which are home confinement, along with a $50,000.00 fine due immediately.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “As the seven-week trial of Dr. Ruan and Dr. Couch clearly showed, greed was the motivating factor behind the doctors’ criminal actions. Mr. Manfuso helped feed that greed by paying illegal kickbacks to the doctors in order to secure their dispensing business. Such conduct is criminal and will continue to be prosecuted in this district.”
Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, stated, “The FBI will continue to use every resource available to ensure that this behavior will not be tolerated. We will continue to work with our federal, state, and local partners to investigate these crimes of greed.”
Bret Hamilton, DEA Assistant Special Agent in Charge for the State of Alabama, stated, “Mr. Manfuso was more concerned with lining pockets at any means than insuring injured patients received proper medication. His conviction shows that no one in the medical community is immune from prosecutions and they will be held accountable for their misdeeds.”
This matter was jointly investigated by FBI-Mobile and DEA-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
United States Settles Health Care Fraud Action Involving Allegations that Hospital Billed for Medically Unnecessary Lab TestsRead the Press Release
Crittenton Hospital Medical Center and the Crittenton Cancer Center, together with their current owners Ascension Michigan and Ascension Health, have agreed to pay $791,047 to resolve allegations that they violated the False Claims Act by billing for medically unnecessary laboratory testing for patients who had been referred to Crittenton by Dr. Farid Fata and physicians in his office. In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks, and promotional money laundering, and was sentenced to a term of 45 years in prison.
False Claims Act allegations against Fata and Crittenton were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. From September 2011 until August 7, 2013, Fata’s medical practice, Michigan Hematology-Oncology P.C., employed relator as an office administrator. Among other allegations, relator questioned the medical necessity of services that Crittenton and other hospital subsidiaries of Ascension Health had provided to patients treated by Fata.
Crittenton and Ascension voluntarily disclosed to the government the lack of medical necessity regarding the laboratory testing. Relator will receive $158,209.40 out of the $791,047 settlement for his role in filing the qui tam action.
This case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking, the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office Observes National Reentry WeekRead the Press Release
In 2016, the U.S. Department of Justice established National Reentry Week to bring awareness to the challenges faced by formerly incarcerated persons when they reenter society. In observance of this year’s week, April 23-29, Acting United States Attorney Steve Butler for the Southern District of Alabama announces some of the current projects in which the U.S. Attorney’s Office is participating.
On April 27, the office will partner with Spring Hill College to host a “Reentry Simulation.” The simulation, open to the public, will be held from 11:00 a.m. to 1:00 p.m. in the college’s Mary Lou and John Barter Student Center. It will provide a glimpse into the first four weeks of life after prison, and will foster discussions about how the public and private sectors may work together to assist persons with the tools they need to successfully reenter their communities.
The office also continues its work with Project H.O.P.E. (Helping Offenders Pursue Excellence). In 2015, at the request of the Alabama Board of Pardon and Paroles, the Project HOPE Reentry Task Force was created to develop a plan to secure funding to support services aimed at reducing the recidivism rate in Alabama. Components such as employment, housing, and transportation continue to be studied in an effort to determine what types of reentry services are lacking. The plan’s objective is to reduce the Alabama recidivism rate by 50% as of 2021.
Acting U.S. Attorney Butler recognizes the positive role that reentry programs play, saying, “By providing people exiting the correctional system with access to necessities such as housing and employment, the hope is that they will become invested in their communities and will be less likely to return to a life of crime.”
To learn more about Project H.O.P.E. and stay up-to-date with reentry events in the Southern District of Alabama, please visit https://www.justice.gov/usao-sdal/programs/ex-offender-re-entry-initiative.
Two Men Plead Guilty to Possessing Child PornographyRead the Press Release
DAYTON – As the result of a national FBI investigation, James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in U.S. District Court in separate cases to possession of child pornography involving prepubescent minors.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division, announced the pleas entered into before U.S. District Judge Walter H. Rice.
According to the Statement of Facts read at Gaver’s plea hearing on April 21, 2017, investigators discovered more than 600 images of child pornography while executing a search warrant on July 27, 2015 at Gaver’s residence. Investigators also found videos of child rape on Gaver’s computer.
Gaver was convicted in Montgomery County Common Pleas Court in 1994 of “Gross Sexual Imposition” and in 2002 of “Pandering obscenity involving a minor.”
The parties involved in his case have recommended a sentence range of 120 months to 144 months in prison. Judge Rice will consider that recommendation at his sentencing hearing scheduled August 1.
At Phelps’ plea hearing on April 13, 2017, the Statement of Facts set forth that federal agents executed a search warrant at Phelps’s home in Jackson Center and discovered more than 600 images and 100 videos of child pornography. He faces a potential maximum of 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt, who is representing the United States in both cases, and First Assistant United States Attorney Vipal J. Patel who is representing the United States in U.S. v. Gaver.
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Two Dallas Women Sentenced in Opioid Prescription Drug Distribution ConspiracyRead the Press Release
DALLAS — Glenda Cane, 47, and Shalisa Robinson, 31, both of Houston, Texas, have been sentenced for their role in a pill mill operation that operated during parts of 2013-2015, announced United States Attorney John R. Parker.
Cane and Robinson were sentenced last week to 18 months each in federal prison by U.S. District Judge Sidney A. Fitzwater, following their guilty pleas in July 2016. Cane pleaded guilty to one count of unlawful use of a communication device. Robinson pleaded guilty to one count of conspiracy to distribute a controlled substance. Judge Fitzwater ordered Cane to surrender to the Bureau of Prisons on June 13, 2017. Robinson is ordered to surrender on June 6, 2017.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Cane and Robinson, on offenses related to their participation in a prescription drug distribution conspiracy. In 2016, an additional 7 individuals were charged in superseding indictments. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
According to documents filed in the Cane case, on February 14, 2014, Cane informed co-conspirator and supplier Cornelius Robinson that a customer wanted to purchase 30mg oxycodone pills and 10mg hydrocodone pills from her. Cane asks Robinson what price to charge for the hydrocodone, and Robinson tells Cane to sell the hydrocodone for $4.50 per pill.
According to documents filed in the Robinson case, on May 24, 2013, she and co-conspirator Cornelius Robinson came to Dallas, Texas, to pick up oxycodone and a rental car. Shalisa and Cornelius Robinson drove to Louisiana to distribute the oxycodone they had picked up in Dallas. On May 25, 2013, in St. Martin’s Parish, Louisiana, Shalisa Robinson possessed approximately 1,543 oxycodone pills consisting of 1,161 30mg oxycodone pills and 382 15mg oxycodone pills that she and Cornelius Robinson intended to distribute to customers in Louisiana.
The investigation was conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service, Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Texas Man 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 a Texas man was sentenced in federal court today for his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
Albert Davis, 56, of Richardson, Texas, was sentenced by U.S. Chief District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme.
On Oct. 3, 2016, Davis pleaded guilty to participating in a conspiracy to commit wire fraud. Davis admitted that he was the leader of a conspiracy to commit wire fraud in which more than 10 victims suffered millions in losses 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.
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.
Four additional co-conspirators (in separate but related cases) also have pleaded guilty. David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas), David Tayce, 67, of Lucas, Texas, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, are scheduled to be sentenced on Tuesday, April 25, 2017.
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.
For example, conspirators sent e-mails to doctors at Summit Medical Center in Oklahoma, which falsely represented Cerner Corporation in negotiations by containing a quote for the sale of a MRI to Summit Medical Center.
Conspirators also created fraudulent invoices for the sale of an MRI to Dallas Medical Center (DMC), which paid over $1 million to what they believed was Cerner Corporation, but which turned out to be nothing more than one of Davis’ shell companies.
When DMC was not acting quickly enough on the deal, Davis created fake e-mail accounts for prominent cardiologists in Dallas. Davis then used these fake email accounts to draft e-mails to himself, which stated that these cardiologists could not wait to get Davis’ MRI system at DMC. Davis then forwarded these e-mails to DMC, which created the impression of demand for his system at DMC. Smith also provided “references” for DMC to check on him. These “references” turned out to be more fake doctors and co-conspirators playing the role of satisfied business partners of Davis on the phone.
Davis also admitted that conspirators provided false and misleading information and testimony during the litigation of several lawsuits. The false and misleading testimony was regarding business deals where the conspirators had impersonated Cerner Corporation.
For example, when Dallas Medical Center learned of the fraud, Davis sued them (iHeart Care DMC Holdings, LLC. v. Dallas Medical Center, LLC., et al., Cause No. 13-09460, in Dallas County, Texas). Davis, Tayce, and others then provided false testimony in depositions in the resulting lawsuit.
According to court documents, the Dallas Medical Center scheme was just a sliver of the fraud Davis and his co-conspirators committed.
In another example, Davis brought a lawsuit against Korean company ISOL Technology. After testifying falsely about business dealings with Cerner Corporation and offering fake exhibits to support his claim of damages, Davis received a jury award of $24 million in the 2014 trial in LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428-LED, in the Eastern District of Texas. When the fraud was discovered, attorneys for ISOL Technology filed an emergency motion for sanctions against LBDS (Davis’ company).
In addition to impersonating Cerner Corporation, Davis admitted, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
For example, conspirators forged signatures and misled doctors into guaranteeing over $8 million in loans from Community Trust Bank in Texas. Davis admitted that he and his co-conspirators fraudulently obtained five individual loans from Community Trust Bank.
Conspirators also impersonated bondholders in order to file an involuntary bankruptcy petition against their own company, CMI Holding Company, Inc., in Case no. 10-38011-SGJ-7, in the Northern District of Texas. Conspirators continued to impersonate those bondholders throughout the litigation in phone calls and email communications, and by signing as the bondholders in a settlement agreement. Davis and his co-conspirators concealed their ownership of Eureka Group, LLC and used that entity to receive and disburse the monies received from the $1.8 million settlement of the involuntary bankruptcy. Conspirators impersonated yet another company to buy back their newly re-organized company through the bankruptcy, and collect additional funds and manipulate the price through other fake liabilities and creditors.
Additionally, Davis admitted, conspirators solicited investments using fabricated communications and documents from entities they created, including the entity created to impersonate Cerner Corporation. Those misrepresentations included false financial documents, altered MRI images and false claims that used MRI systems were newly developed technology. Davis collected large amounts of investments through this process.
This case is being 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. It was investigated by the FBI.
Six Additional Individuals Indicted for $2.5 Million High-Yield Investment FraudRead the Press Release
Six additional individuals were charged in an indictment unsealed today for their roles in a $2.5 million high-yield investment fraud scheme, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Ludmilda O. Stencil, 46, of Charlotte, North Carolina; Martin Delainie Lewis, 50, of Frisco, Texas; Nicholas Fleming, 63, of Northridge, California; Michael Allen Duke, 48, of Richardson, Texas; Paula Sacccomanno, 59, and Dennis Swerdlen, 61, both of Boca Raton, Florida, were charged with one count of conspiracy to commit wire fraud and mail fraud, 14 counts of mail fraud and 14 counts of wire fraud in a superseding indictment returned on April 19, 2017, in the Western District of North Carolina. Ludmilda Stencil, Lewis and Duke also were each charged with five counts of money laundering.
This superseding indictment also includes previously charged co-defendants Robert Leslie Stencil, Daniel Thomas Broyles Sr. and Kristian F. Sierp. Sierp was previously arrested in Fort Lauderdale, Florida, on separate charges and has been detained pending trial. A trial date has not been set. Defendants Ludmilda Stencil, Martin Delainie Lewis, Nicholas Fleming, Paula Saccomanno and Denis Swerdlen have all been arrested. Michael Allen Duke remains a fugitive.
The indictment alleges that since January 2012, Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno and Swerdlen worked to sell stock in Niyato Industries Inc., a Nevada corporation that Robert Stencil owned and operated from Charlotte. Through various publications and sales pitches, the defendants allegedly marketed Niyato as a manufacturer of compressed natural gas (CNG) automobiles and a distributor of CNG fuel that had patented technology, valuable contracts and high-profile executives. According to the indictment, the defendants also sold investors on a promise that Niyato was planning an imminent stock IPO that would reap pre-IPO investors a tenfold return on their investments.
Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno and Swerdlen are alleged to have known that, in reality, Niyato had no facilities, products, patents or plans for an imminent IPO, but rather was merely a vehicle for inducing investor funds. Broyles, Sierp, Lewis, Fleming, Duke, Saccomanno and Swerdlen allegedly directed investors to mail or wire funds to Leslie and Ludmilda Stencil, who then allegedly paid half the funds to the investment salespersons and kept the remainder for personal expenses. In addition, Broyles, Sierp, Lewis, Fleming, Duke, Saccomanno and Swerdlen are alleged to have used high-pressure sales tactics to encourage investments from their victims, many of whom were elderly. According to the superseding indictment, Sierp, Lewis, Fleming and Duke operated under fake names while marketing Niyato stock subscriptions.
According to the superseding indictment, Leslie Stencil, Broyles, Sierp, Ludmilda Stencil, Lewis, Fleming, Duke, Saccomanno, Swerdlen and their co-conspirators were responsible for causing at least $2.5 million in losses to more than 140 U.S. citizens and businesses.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and Internal Revenue Service-Criminal Investigation are investigating this case, which was supervised by the Criminal Division’s Fraud Section. Fraud Section Trial Attorneys William Bowne, Gustav Eyler and Christopher Fenton are prosecuting the case.
Sioux City Man Sentenced to Federal Prison for Unlawful Possession of A Firearm and AmmunitionRead the Press Release
A Sioux City man was sentenced on Monday, April 24, 2017, to 10 years in federal prison.
Donavan Cross, 25, from Sioux City, Iowa, received the prison term after a December 15, 2016, jury verdict finding him guilty of being a prohibited person in possession of a firearm and ammunition.
On June 4, 2016, officers from the Sioux City Police Department responded to a 911 call involving a disturbance between Cross and his live-in girlfriend. Officers spoke to Cross’s girlfriend, who stated that she wanted to gather her belongings and move back with her mother. The girlfriend then led officers to the bedroom that she shared with Cross. Officers discovered a 9mm pistol with a fully loaded clip, further investigation led to the discovery of ammunition, and a holster in the residence. When confronted, Cross immediately claimed the pistol belonged to his grandmother, who also lived with him. He also denied the bedroom in which the pistol was found belonged to him, in spite of his grandmother identifying the bedroom and studio as belonging to Cross.
Cross was sentenced in Sioux City by United States District Court Senior Judge Mark W. Bennett. Cross was sentenced to 120 months’ imprisonment, the maximum under the law. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cross is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Ajay Alexander and investigated by the Sioux City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4067.
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Second Nurse Practitioner Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Thomas “Justin” Palmer has been sentenced to 30 months in federal prison for his role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
Following a stint in the United States Navy, Justin Palmer began working as a registered nurse at hospitals in southern Alabama. He then went back to school and earned a Master’s degree in nursing. Upon completion, Palmer was hired by Physicians Pain Specialists of Alabama ¬— the pain clinic co-owned and operated by Dr. Ruan and Dr. Couch. Palmer originally worked under both doctors. However, after about six months, Palmer began to work for Dr. Couch exclusively. While working for Dr. Couch, Palmer knowingly and intentionally conspired to prescribe various Controlled Substances outside the usual course of professional practice and not for a legitimate medical purpose. This included the prescribing of Subsys and Abstral — both of which are brand name forms of instant release fentanyl, a Schedule II Controlled Substance.
During the recent trial of Dr. Ruan and Dr. Couch, Palmer testified that he regularly saw patients without any oversight from a doctor. He also admitted to forging Dr. Couch’s signature on prescriptions, and estimated he did this approximately 25,000 times over a four year period. Evidence at trial showed that both Dr. Couch and Dr. Ruan knew Palmer was forging Dr. Couch’s signature. However, disciplinary action was never taken, and he was never reported to the nursing board. Palmer also testified that he was a habitual intravenous drug abuser, and that he was under the influence of very powerful opioids virtually every day while he was seeing and treating patients.Based on his substantial assistance, including his testimony in the trial against Dr. Ruan and Dr. Couch, Palmer received a 50% sentence reduction recommendation from the United States. The Court accepted this recommendation, and then sentenced Palmer to serve 30 months in federal prison for his criminal actions.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “As Judge Granade observed at the sentencing hearing, Justin Palmer’s conduct was ‘beyond the pale.’ Forging a doctor’s name on a prescription is reprehensible, and even more so is the conduct of the doctors that let Palmer do this. That said, the United States recognizes that Palmer began cooperating even before the arrest of Dr. Couch and Dr. Ruan, and that his testimony was an important part of trial. Thus, the United States accepts the 30-month sentence handed down by the Court.”
Bret Hamilton, DEA Assistant Special Agent in Charge for the State of Alabama, stated, “Justin Palmer had an honorable and promising career. His patients expected him to provide them with professional medical care. Instead of the welfare of his patients being the basis for his decision making process, his greed for financial gain and his illicit use of drugs guided him.”
In addition, Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, stated, “This type of behavior in the field of medicine cannot be tolerated by a doctor or an employee of the clinic. The FBI will continue to vigorously investigate these cases with a sense of urgency.”
This matter was jointly investigated by DEA-Mobile and FBI-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
Roanoke Man Pleads Guilty to Drug, Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man pled guilty this morning to a pair of federal charges related to cocaine distribution and illegal firearms possession, Acting United States Attorney Rick A. Mountcastle announced.
Antonio Maurice Payne, 29, of Roanoke, Va., pled guilty this morning in the United States District Court for the Western District of Virginia in Roanoke to one count of illegal possession of a firearm by a previously convicted felon and one count of possession of cocaine with the intent to distribute.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roanoke City Police Department conducted the investigation of the case. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Richmond Business Owner Convicted of Fraud in Credit Repair SchemeRead the Press Release
Baltimore, Maryland – On April 21, 2017, a federal jury convicted Benjamin Bland, age 41, of Richmond, Virginia, of conspiracy to commit wire fraud, wire fraud, and social security fraud.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to evidence presented at his five day trial, Bland was the owner and registered agent of a company headquartered in Richmond, Virginia that hosted a website that purported to provide individuals with a legal means to start a new credit file through the issuance of a “secondary credit number.” Bland falsely told his customers that these “secondary credit numbers” were “100% legal” and issued “by lawyers.” However, Bland had invented the term “secondary credit number,” there were no lawyers involved with his business, and the “secondary credit numbers” were actually social security numbers that had been previously issued to other individuals, predominantly children.
According to the trial evidence, one of the primary purposes of the fraud scheme was to obtain bank loans, private loans, auto loans, and lines of credit using the stolen social security numbers, counterfeit social security cards, and personal identity information (“PII”) of actual persons to create a false (improved) credit score.
The trial evidence also established that Bland obtained and sold the misappropriated social security numbers to Michael Westbrook and at least 20 others located throughout the country, whom Bland called his “affiliates.” These “affiliates” in turn sold those numbers to buyers. For an additional fee, Bland would provide fraudulent social security cards bearing the stolen number and the name of the “buyer.” Bland also provided fraudulent driver’s licenses to the “customers.” These items were provided so that “customers” could defraud banks and other lenders by drawing upon lines of credit using the stolen social security numbers.
According to the trial evidence, Bland compromised the social security numbers of at least 1,500 people during the conspiracy. The majority of the stolen social security numbers belonged to children all over the United States.
A co-conspirator, Michael Westbrook, also pled guilty to conspiracy to commit wire fraud and aggravated identity theft. He is awaiting sentencing.
Bland faces a maximum sentence of 20 years in prison on each of the wire fraud counts and a maximum of 10 years in prison on each of the social security fraud counts. Senior U.S. District Judge J. Frederick Motz has scheduled sentencing for July 14, 2017 at 10:00 am.
United States Attorney Rod J. Rosenstein commended HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Aaron Zelinsky, who are prosecuting the case.
Project Dakota Flyer Nets 15 DefendantsRead the Press Release
United States Attorney Randolph J. Seiler announced that fifteen individuals have been indicted for the illegal trafficking of eagles and other migratory birds. The Indictments are a result of a two-year undercover operation, dubbed Project Dakota Flyer.
Indicted Individuals Include:
Troy Fairbanks, 54, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50036
Majestic Fairbanks, 22, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking: CR 17-50036
Troy Young Fairbanks, 24, Rapid City, SD, charged with Conspiracy to Commit Wildlife Trafficking: CR 17-50036
Alvin Brown Jr., 37, Ethete, WY, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act, Migratory Bird Treaty Act, and Lacey Act: CR 17-50035
Michael Primeaux, 32, Parmalee, SD/ Ethete WY, charged with Conspiracy to Commit Wildlife Trafficking, and violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR 17-50035
Juan Mesteth, 39, Pine Ridge, SD, charged with Conspiracy to Commit Wildlife Trafficking, violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act, and Felon in Possession of a Firearm: CR 17-50035
Aaron David West, 62, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30051
Aaron David West Jr., 33, Eagle Butte, SD, charged with violations of the Bald and Golden Eagle Protection Act and Migratory Bird Treaty Act: CR-17-30051
Jorge Pena, 44, Mt. Vernon, IA, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50056
Valencia Neck, 38, Parmelee, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30050
Benjamin Iron Hawk, 44, Kyle, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30050
Chet Christensen, 66, Tuthill, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30052
Ronald Fisher, 64, Kyle, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50057
Gary Fisher, 69, Gordon, NE, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-50057
David Jasper, 60, Box Elder, SD, charged with violations of the Lacey Act, Bald and Golden Eagle Protection Act, and Migratory Bird Treaty Act: CR-17-30048
Initial appearances have been set for Monday May 1, 2017 in Rapid City, SD and Thursday May 4, 2017 in Pierre, SD. This case is being investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Eric Kelderman and Meghan N. Dilges are prosecuting the cases.
Portfolio Manager Agrees to Plead Guilty to Securities FraudRead the Press Release
BOSTON – A Vice President and Options Portfolio Manager for a Boston-based asset management firm has agreed to plead guilty in connection with a scheme to defraud funds managed by his firm, which made him more than $1.9 million in profits.
Kevin Amell, 45, of Hingham, has agreed to plead guilty to one count of securities fraud.
It is alleged that from December 2014 to February 2017, Amell used the funds he managed to sell options to, and occasionally buy options from, his personal brokerage accounts. Specifically, given his position as Vice President and Options Portfolio Manager, Amell had visibility into the options markets and could see the buy and sell orders for a particular option at a particular time. As a result, Amell could see the “spread” - the price buyers were willing to pay for the option and the price at which sellers were willing to sell the option at any given time. Amell defrauded his firm and the funds managed by the firm, by buying options at prices below the price at which other market participants were willing to sell at that point in time. Amell then sold the options he had purchased from the funds at higher prices, thereby profiting at the expense of the funds he managed. On occasion, Amell also purchased options at a lower price and then immediately sold them to the funds at a higher price.
Amell allegedly carried out the scheme by placing orders in his personal brokerage accounts to buy specific options at a specific price and, within seconds, placed orders on behalf of the funds to sell the same options at the same price. By controlling the prices and the timing of the sales in this way, he guaranteed that he could buy the options himself and make a profit. Amell made more than $1.9 million on the scheme. It is further alleged that, to conceal the fraud from his employer, Amell failed to disclose to the firm the existence of his personal brokerage accounts as required.
The securities fraud statute provides for a sentence of no greater than 20 years in prison, five years of supervised releaseand a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. According to the plea agreement, which was also filed today, the U.S. Attorney’s Office has agreed to recommend a sentence of no greater than 27 months in prison. Amell has also agreed to forfeit $1,954,457.
The Securities and Exchange Commission today filed a parallel civil action.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission. Assistant U.S. Attorney Sarah E. Walters, Chief of Weinreb’s Economic Crimes Unit, is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Perry County Husband and Wife Charged with Production of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Perry County couple were indicted on April 19, 2017, by a federal grand jury in Harrisburg on production of child pornography charges.
The indictment was unsealed on April 21, 2017. Chief Magistrate Judge Susan E. Schwab arraigned Betty Jo Eckenberger on April 20, 2017, and James David Eckenberger on April 24, 2017. Both Defendants were detained.
According to United States Attorney Bruce D. Brandler, Betty Jo Eckenberger, age 32, and James David Eckenberger, age 43, both of Perry County, Pennsylvania, are alleged to have sexually assaulted a minor between 2008 and 2011, and taken photographs of that assault. The four-count indictment charges the Eckenbergers with conspiracy to use a minor to produce child pornography, production of child pornography, receipt and ditribution of child pornography, and possession of child pornography. The indictment also seeks forfeiture of all electronic equipment used to take those images.
This case was investigated by the Pennsylvania State Police with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the production of child pornography offenses is 50 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Those charges carry a mandatory minimum term of imprisonment of 25 years. The possession of child pornography charge is punishable by a maximum of 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 10 years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Orange County Pilot Who Operated Private Jets with Passengers Onboard without Proper License Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – An Irvine man who admitted that he illegally piloted private jet airplanes with passengers onboard without having a valid pilot’s license was sentenced today to 10 months in federal prison.
Arnold Gerald Leto III, 37, was sentenced by United States District Judge Dale S. Fischer, who also ordered the defendant to pay a $5,500 fine.
Leto pleaded guilty in October to two counts of operating an aircraft without a valid airman’s certificate.
According to court documents, Leto operated aircraft with passengers on a number of occasions without the proper authorization from the Federal Aviation Administration. In January 2015, Leto piloted a Cessna Citation turbojet-powered aircraft, with paying passengers, from Santa Monica to Phoenix prior to receiving any type of airman’s certificate for turbojet-powered aircraft.
The following month, Leto obtained an airman’s certificate that authorized him to be a second-in-command pilot on a Cessna Citation turbojet-powered aircraft, but he continued to operate the Cessna citation as a sole pilot with passengers. For example, in April 2015, he piloted a Cessna Citation from Burbank to Bermuda Dunes and from Santa Monica to Bentonville, Arkansas.
Furthermore, on April 8, 2016, Leto was the sole pilot of a Falcon 10 turbojet-powered aircraft, with passengers on board, that flew from Van Nuys to Las Vegas, Nevada. At this time, Leto was not certified to fly the Falcon 10, and the FAA had revoked all of his airman certificates.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
The case was prosecuted by Assistant United States Attorney Dennis Mitchell of the Environmental and Community Safety Crimes Section.
Norwalk Man Pleads Guilty to Embezzling Money and Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. ERRICO, 64, of Norwalk, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to federal embezzlement and tax evasion offenses.
According to court documents and statements made in court, for approximately 20 years, ERRICO worked for the owner of two companies located in Norwalk, handling the companies’ finances, including payroll, bank accounts, accounts payable and accounts receivable. Between approximately February 2011 and March 2014, ERRICO embezzled approximately $823,476.22 from the two companies. ERRICO transferred stolen funds from the companies’ accounts to pay his personal credit card debts, and also forged the signature of the companies’ owner on company checks and cashed them or made them payable to his own company and deposited them into his company’s business account.
For the 2011 through 2014 tax years, ERRICO attempted to evade paying federal taxes on $851,076.22 of unreported income, which resulted in a total tax loss of $265,326.
As an example, for tax year 2013, ERRICO filed a federal individual tax return for himself in which he stated his taxable income for 2013 was $31,200. The tax return failed to report approximately $536,434.50 in money he stole from the two Norwalk companies.
ERRICO pleaded guilty to one count of the interstate transportation of money obtained by fraud and one count of tax evasion. Judge Underhill scheduled sentencing for July 17, 2017, at which time ERRICO faces a maximum term of imprisonment of 15 years.
ERRICO also has agreed to pay $654,546.09 in restitution to the two companies from which he stole money, and he is obligated to pay $265,326 in back taxes, plus penalties and interest, which continue to accrue.
ERRICO was released on bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, U.S. Secret Service and Connecticut Financial Crimes Task Force.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Newport Man Pleads Guilty to Heroin Conspiracy 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 Todd Shorey, 52, of Newport, Maine, pled guilty in U.S. District Court to conspiring to distribute more than a kilogram of heroin.
According to court records, between May 2015 and January 2016, Shorey conspired with Jamie Akerson and others to distribute over a kilogram of heroin. Shorey, Akerson and others obtained large quantities of heroin on a weekly basis from an out-of-state source and had it distributed throughout Central Maine. Jamie Akerson pled guilty to the same charge on April 14, 2017.
The charge carries a sentence of between 10 years and life in prison, an $8,000,000 fine, and at least five years of supervised release.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine State Police; and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Myrtle Beach Man Pleads Guilty on Drug Conspiracy ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated that Roberto Yamil Velez-Garcia, age 30, of Myrtle Beach, South Carolina entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and to distribute a quantity of heroin and a quantity of fentanyl in violation of 21 U.S.C. § 841(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
This case was part of an investigation conducted by agents of the Drug Enforcement Administration (DEA) Florence, South Carolina, and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina into the sale of heroin and other illegal drugs in the Horry County, South Carolina area. Velez-Garcia was identified as a heroin distributor. Evidence presented at the change of plea hearing established that agents made a controlled purchase of a quantity of fentanyl from Velez-Garcia in December 2015. In May 2016, agents arranged a second controlled purchase of heroin from Velez-Garcia and a coconspirator. After the purchase was made, Velez-Garcia and the coconspirator were arrested. A search warrant was executed at an apartment Velez-Garcia shared with the coconspirator. Agents recovered approximately 95 grams of heroin and two firearms from the apartment.
Ms. Drake stated that the maximum penalty Velez-Garcia could receive is 20 years imprisonment and a fine of $1,000,000 dollars.
The case was investigated by agents of the Drug Enforcement Administration (DEA) Florence, South Carolina, and the Fifteenth Circuit Drug Enforcement Unit (DEU) Conway, South Carolina. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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More Than Fifteen Men Charged with Violations of Federal Gun LawsRead the Press Release
Law enforcement agencies across Iowa continue to make the area safer by addressing the problem of gun crime and violence. Acting United States Attorney Sean R. Berry announced charges and arrests in seventeen recent federal gun cases at a press conference held at the United States Attorney’s Office. Berry was joined by Donald Dockendorf, Bureau of Alcohol, Tobacco, Firearms and Explosives, Thomas Reinwart, Federal Bureau of Investigation, Captain Dave Mohlis, Waterloo Police Department, Deputy Chief Thomas Jonker, Cedar Rapids Police Department, and Corporal James Hancox, Marion Police Department.
“As Attorney General Jeff Sessions recently emphasized, the Department of Justice is committed to investigating, prosecuting, and deterring violent crime,” Berry said. “Historically, gun violence and crime rise sharply as temperatures rise. With summer approaching, my office will continue to work with the Cedar Rapids Safe Streets Task Force, Waterloo Federal Task Force, and all of our federal, state, and local partners to combat violent crime by prosecuting the most dangerous of criminal offenders, including those who unlawfully possess and use firearms.”
In recent weeks, the work of federal, state, and local law enforcement agencies has resulted in the following matters in federal court in Cedar Rapids:
Erwin Bell, age 36, of Clinton, Iowa, Gerraud Bruns, age 26, of Dubuque, Iowa, David Caldwell, age 27, from Chicago, Illinois, Daniel Henriksen, age 29, of Elgin, Iowa, Albert Gunnard Linne, age 42, of Lowden, Iowa, Troy Postel-Vargason, 34, from Independence, Iowa, Nicodimus Coles, age 21, Derek Hines, age 32, James Mitchell, age 36, Terrence Clark Shaffer, age 23, and Darryl Williams, age 29, all of Cedar Rapids, Iowa, and Willie Johnson, age 45, Wayne Jones, age 37, Dayton Myers, age 20, Anntwan Dayshawn Phillips, age 25, Jyshawn Robertson, age 19, and Eric Sallis, age 26, all of Waterloo, Iowa, have all been charged with various violations of federal law including possessing a firearm as a felon or drug user. The charges are contained in Complaints and Indictments filed recently in United States District Court in Cedar Rapids.
The complaint filed against Bell alleges that, on February 4, 2017, Bell possessed a loaded .22 caliber revolver after being convicted of seven separate felony offenses. An officer with the Mount Vernon Police Department Police conducted a traffic stop on a car in which Bell was seated in the front passenger seat. During the course of the traffic stop, Bell assaulted the officer by striking him. Bell then fled on foot, and the officer pursued him. After the officer caught him, Bell continued to assault the officer, punching and kicking him in the face. Bell removed the officer’s baton and struck the officer with the baton in an attempt to gain access to the officer’s taser. Bell was eventually placed under arrest. During a search of the car, police located drug paraphernalia, baggies, a scale, marijuana, and cocaine. The case file is 17-MJ-65.
The indictment filed against Bruns, alleges that, on May 6, 2016, Bruns possessed a .40 caliber pistol and .40 caliber ammunition while being an unlawful user of marijuana. Bruns had his first appearance in federal court in Minnesota on November 22, 2016. He was released on bond and scheduled for a second court appearance in Iowa on November 28, 2016. Bruns failed to appear for that hearing and was later arrested in Minnesota on April 6, 2017. He had his first court appearance in Iowa on April 20, 2017. The case file is 16-CR-1036 and 17-MJ-351 (District of Minnesota).
The complaint filed against Caldwell alleges that, on February 3, 2017, Caldwell possessed a .22 caliber revolver while being an unlawful user of marijuana. The complaint alleges that on February 3 officers with the Dubuque Police Department responded to a report of a disturbance, including a possible shooting. Officers found a man who had been shot in the leg. During a subsequent traffic stop, officers located Caldwell in possession of marijuana, and a .22 caliber revolver. The case filed is 17-MJ-131.
The complaint filed against Henriksen alleges that, on June 17, 2016, law enforcement officers and emergency medical personnel responded to Henriksen’s home in Elgin after receiving a 911 call reporting that a four-year old boy had shot himself in the head. Once at the residence, they located a child suffering from a gunshot wound to his head. The child was transported to Palmer Lutheran Hospital in West Union, Iowa, where he was later pronounced dead. The complaint also alleges that during the investigation of the child’s death, investigators determined that Henriksen was the owner of the firearm used in the shooting, which was a Glock 36, .45 caliber handgun. During a search of Henriksen’s residence, officers seized several items of drug paraphernalia, including marijuana smoking devices. The case file is 17-MJ-120 and 17-CR-2021
The complaint filed against Linne alleges that, on October 25, 2016, Linne possessed a loaded .45 caliber pistol and .45 caliber ammunition after being convicted of three separate felony offenses. The complaint alleges that on October 25, police executed a search warrant at Linne’s residence in Lowden and seized the firearm and two loaded magazines from the master bedroom, as well as additional ammunition from a kitchen drawer. The case file is 17-MJ-83 and 17-CR-22.
The indictment filed against Myers alleges that, on January 3, 2017, Meyers possessed a .22 caliber pistol while being an unlawful user of marijuana. Evidence presented during a court hearing detailed that at approximately 8:00 p.m. on January 3, Myers discharged the firearm towards a home. The case file is 17-CR-2018.
The complaint filed against Phillips alleges that on March 18, 2017, Phillips possessed a loaded AP 7.65 Browning firearm after being convicted of a felony offense. The complaint alleges that on March 18, Waterloo police officers responded to a report of shots fired near Ankeny Street. Officers located Phillips nearby and in possession of the firearm. The case file is 17-MJ-129.
The complaint filed against Postel-Vargason alleges that, on February 9, 2017, Postel-Vargason possessed a loaded 9mm handgun with an obliterated serial number after being convicted of two separate felony offenses. The complaint alleges that on February 9, officers with the Independence Iowa Police Department responded to a report of a suspicious person lying in a field and located Postel-Vargason in a hypothermic state. Postel-Vargason was also in possession of the firearm, cash, and more than 500 grams of methamphetamine. The case file is 17-MJ-127.
The complaint filed against Sallis alleges that, on November 27, 2016, Sallis possessed ammunition as a felon and on December 10, 2016, Sallis possessed a firearm and ammunition as a felon. The complaint alleges that on November 27, police responded to reports of a shooting on Kern Street in Waterloo. Witnesses reported that Sallis had shot at another male multiple times. During the investigation, police seized 9mm FC shell casings from the scene. On December 10, police located Sallis outside an apartment building. Police arrested Sallis and executed a search warrant at an apartment associated with Sallis. Officers seized a 9mm pistol, loaded with FC 9mm ammunition, and marijuana from the apartment. Sallis admitted to possessing both the firearm and marijuana. The case file is 17-MJ-0071 and 17-CR-2017.
The complaint filed against Shaffer alleges that, on February 1, 2017, Shaffer possessed a loaded 9mm handgun after being convicted of three separate felony offenses. On February 1, Marion Police responded to a residence after receiving a report of a domestic disturbance. Shaffer was present and placed under arrest. During a search of the residence, police located a loaded 9mm handgun, cocaine, a digital scale, $835, and cell phones. Photographs depicting Shaffer in possession of the firearm were later recovered. The case file is 17-MJ-130.
The complaint against Williams alleges that on January 31, 2017, Williams possessed a loaded 9mm pistol and additional 9mm ammunition after being convicted of three separate felony offenses and two prior misdemeanor crimes of domestic violence. On January 31, officers conducted a traffic stop on a car driven by Williams. During the stop, Williams fled on foot from officers. Officers eventually placed him under arrest and discover a loaded 9mm pistol in his pants and a loaded magazine in his pants pocket. Officers also found marijuana in a separate pocket. The case file is 17-MJ-132.
The indictment filed against Coles alleges that, on October 29, 2016, Coles possessed an AR-556 rifle after being convicted of a felony offense. The indictment also alleges that Coles knowingly made a false statement while purchasing the firearm, by falsely representing that he had never previously been convicted of a felony. The case file is 17-CR-21.
The indictment filed against Hines alleges that, on January 31, 2107, Hines possessed a 9mm pistol after being convicted of a felony offense and while being an unlawful user of methamphetamine. The case file is 17-CR-0200.
The indictment filed against Willie Johnson alleges that, on March 25, 2017, Johnson possessed a 9mm pistol after being convicted of two separate felony offenses. The indictment also alleges that the firearm possessed by Johnson was stolen, and Johnson knew and had reasonable cause to believe that the firearm was stolen. The case file is 17-CR-2019.
The complaint filed against Jones alleges that, on April 12, 2017, Jones possessed a loaded 9mm handgun and 9mm ammunition after being convicted of a felony offense and as an unlawful user of marijuana. The case file is 17-MJ-134.
The indictment filed against Mitchell alleges that, on October 8, 2016, Mitchell possessed .45 caliber ammunition after being convicted of a felony offense. The case file is 17-CR-19.
The indictment filed against Robertson alleges that, on June 21, 2016, Robertson possessed a 9mm rifle and ammunition while being an unlawful user of marijuana. The case file is 17-CR-2020.
If convicted on these charges, all defendants face a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Defendants Troy Postel-Vargason and Willie Johnson remain fugitives. Anyone with information regarding the whereabouts of Willie Johnson or Troy Postel-Vargason is asked to contact Crime Stoppers at 319-232-5583 or 855-300-8477.
Willie Johnson is a 45-year-old black male, approximately 5 feet, 10 inches tall. He is pictured below:
Troy Postel-Vargason is a 34-year-old white male, approximately 5 feet, 9 inches tall. He is pictured below:
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The cases were investigated by the Bureau of Alcohol Tobacco and Firearms, the Federal Bureau of Investigation, the Cedar Rapids Safe Streets Task Force (composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department); the Waterloo Federal Task Force (composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department); the Iowa Division of Criminal Investigations, the Cedar Rapids Police Department, the Dubuque Police Department, the Marion Police Department, the Mount Vernon Police Department, the Waterloo Police Department, the Cedar County Sheriff’s Office, and the Fayette County Sheriff’s and are being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
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Mock Interviews Held to Benefit Returning CitizensRead the Press Release
Recognizing its previous declaration of one week in April as “National Re-Entry Week” the United States Department of Justice identified the last week of April 2017 for United States Attorney’s Offices throughout the country to host or attend events related to the issue of individuals making the transition from prison back into the community.
The United States Attorney’s Office for the Middle District of Georgia (USAO-MDGA) likewise recognizes the importance of the success of this transition both to those returning to society and to local citizens in reducing recidivism and making our communities safer. The USAO-MDGA is pleased to announce its participation in re-entry events in the Macon-Bibb County community and its ongoing collaboration with the Macon Reentry Coalition (MRC), a local nonprofit organization that connects returning citizens with a variety of resources to assist in that vital transition. The Macon Reentry Coalition is a 501(c)(3) nonprofit organization, promoting a collaborative effort among federal, state, and local agencies, mentors and advocates, faith-based and philanthropic organizations, and community resource partners to empower returning citizens.
On Friday, April 28, the Macon Reentry Coalition will host its monthly meeting at 9:00 a.m. at the Salvation Army Chapel (2312 Houston Avenue). This meeting provides agencies and organizations the opportunity to information share and address issues affecting returning citizens.
On that same day, at 1:30 p.m., a mock job interview project for individuals re-entering society from both state and federal prisons will be held at Dismas Charities (722 2nd Street). Volunteers will serve as interviewers to give the participants valuable job interviewing experience to assist in their efforts to successfully enter the workforce.
“Macon-Bibb and the Middle Georgia region contain vast and critical resources to help ensure the successful reintegration of our returning citizens,” Macon Reentry Coalition CEO Todd Robinson noted. “Many of these men and women are talented, hard-working individuals that just need counsel and direction. Since 2008, the Macon Reentry Coalition has brought resources together to help reentrants become productive citizens who can support their families. Stronger families equates to a safer community.”
Questions regarding any of the events or the Macon Reentry Coalition can be directed to Brittney Kish Lightsey, Reentry and Community Outreach Coordinator for the United States Attorney’s Office, at 478-621-2735 or [email protected].
Michael V. Bamba Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MICHAEL V. BAMBA, age 33, from Tamuning, was sentenced in District Court to a 57-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service. The Court also ordered BAMBA to pay a mandatory $100 assessment fee. In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.
On April 29, 2015, BAMBA was charged by Indictment with Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride. On August 13, 2015, BAMBA entered a guilty plea to Conspiracy to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). The investigation revealed that BAMBA, and other individuals, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. Law enforcement seized over 137 grams of methamphetamine, with a 90 percent purity level.
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration, with assistance by the Guam Superior Court Probation Office, Guam Customs and Quarantine Agency, and the Guam Police Department. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Man from Mexico pleads guilty to posing as a Puerto Rican citizen on passport application in Morgan CityRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Mexico pleaded guilty last week to lying on a passport application he applied for at the Morgan City post office.
Roberto Calderon-Perez, 27, of Mexico, pleaded guilty Thursday before U.S. Magistrate Judge Patrick Hanna to one count of false statement in application for passport. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Calderon-Perez submitted a passport application on June 20, 2016 to the Morgan City post office in the name of a Puerto Rican resident. He also submitted other false information such as a birth date and social security number. Law enforcement agents also found that the picture on his identification did not match older records of the individual with the same name in Puerto Rico.
Calderon-Perez faces 10 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of August 2, 2017.
The State Department and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Man Charged with Sending Threats to South Burlington High School Students and Faculty Appears in CourtRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Josiah Leach, 18, of South Burlington, Vermont, appeared today before the Honorable Christina Reiss charged with one count of knowingly transmitting in interstate commerce threats to injure others. Chief Judge Reiss advised Leach of the charge against him and appointed the Office of the Federal Public Defender to represent him. He is deemed innocent until proven guilty of the charges.
Leach, who was arrested on Friday night, will remain in custody pending a detention hearing on Thursday, April 27, 2017 at 10:00 a.m.
Acting United States Attorney Eugenia A.P. Cowles again thanked the Federal Bureau of Investigation, the South Burlington Police Department, the Vermont State Police, and Champlain College’s Leahy Center for Digital Investigations for their tireless work in the investigation leading to Leach’s arrest.
Leach was represented by Assistant Federal Public Defender Elizabeth Quinn. AUSA Michael Drescher represented the United States.
MEDIA ADVISORY-- HOPE Initiative Partners to Encourage Community Participation in DEA’s April 29, 2017 National Prescription Drug Take-Back Event by Hosting Promotional Event on Tuesday in Civic PlazaRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office and UNM Health and Sciences Center are encouraging community participation in DEA’s 13th National Prescription Drug Take-Back Day on Saturday, April 29, 2017 from 10:00 a.m. to 2:00 pm as part of the prevention and education component of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. To raise public awareness about Saturday’s nationwide event, the HOPE Initiative Partners and DEA are collaborating with the City of Albuquerque, Bernalillo County and Healing Addiction in our Community (HAC) in hosting a promotional Drug Take-Back event on Tuesday, April 25, 2017, from 11:00 a.m. to 1:30 p.m., during “Truckin’ Tuesday” in Civic Plaza. The promotional event will provide City and County employees and others who work in downtown Albuquerque with a safe, convenient and responsible way of disposing of unused, unwanted or expired medications. Representatives from these collaborators will be available to speak with the media at 1:00 p.m. on Tuesday, April 25, 2017, in Civic Plaza during the promotional event.
WHO:
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
Executive Assistant U.S. Attorney Elizabeth Martinez
WHEN:
TUESDAY, APRIL 25, 2017
1:00 P.M.
WHERE:
Albuquerque Civic Plaza
1 Civic Plaza NW
Albuquerque, NM 87012
OPEN PRESS
Members of the public who wish to participate in Saturday’s nationwide event can find a nearby Prescription Drug Take-Back collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539. Only pills and other solids, like patches, will be accepted at DEA Drug Take Back collection sites – the public should not bring liquids, needles or other sharp items to take back sites. This service is free and anonymous, no questions asked.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic that has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Long Island Men Sentenced to Prison for Methylone ConspiracyRead the Press Release
ALBANY, NEW YORK – Two Long Island men were sentenced to prison and fined on Friday for their roles in a conspiracy to distribute the controlled substance methylone.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
In September 2014, Douglas Marshall, age 25, of Lindenhurst, New York, and Anthony Carlson, age 25, of Merrick, New York, pled guilty to conspiring to possess with intent to distribute methylone. Methylone is an analogue of MDMA and often marketed as ecstasy.
On August 23, 2013, Marshall and Carlson were arrested in Saratoga Springs, New York, after selling 1 kilogram of methylone in exchange for $14,000 in cash. A search of Carlson’s residence in Bellmore, New York, later that day uncovered an additional kilogram of methylone, cocaine, a scale, and 2 firearms.
Senior United States District Judge Thomas J. McAvoy sentenced Marshall to 21 months in prison and fined him $5,000. Carlson, who was found to have possessed the 2 firearms in connection with his drug trafficking activities, was sentenced to 29 months in prison and fined $5,000. Both men were also ordered to serve 3 years of post-imprisonment supervised release. They also forfeited $15,000 in drug proceeds.
This case was investigated by the DEA and the Saratoga Springs Police Department, and prosecuted by Assistant United States Attorney Wayne A. Myers.
Jury Convicts Leader of Marriage Fraud Ring and Two OthersRead the Press Release
HOUSTON - Three Houston residents have been found guilty after a five-day jury trial for conspiracy to commit marriage fraud, aiding/abetting marriage fraud, marriage fraud, theft of government funds and false statements, announced Acting U.S. Attorney Abe Martinez along with Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston, District Director Tony Bryson of U.S. Citizenship and Immigration Services (CIS) – District 33, and Special Agent in Charge Dax Roberson of U.S. Department of Agriculture, Office of Inspector General – Investigations.
The federal jury deliberated for approximately four hours before convicting Nigerian citizens Folarin H. Alabi, 35, and Justice Daniel, 41, and U.S. citizen Letrishia Andrews, 37, all of Houston, of conspiracy to commit marriage fraud. Alabi was the leader of the conspiracy and also convicted of aiding and abetting marriage fraud. Daniel was further convicted of one count of marriage fraud, while the jury also convicted Andrews of aiding and abetting marriage fraud, theft of government funds and false statements related to her Supplemental Nutrition Assistance Program (SNAP) applications.
The verdicts bring to a total 11 defendants now convicted in two separate, but related, cases of marriage fraud in a scheme involving Nigerian nationals.
Eight others had previously pleaded guilty for their roles in the scheme – Nigerian citizen Ifeoma Adamolekun, 40, and U.S. Citizen Charles R. Warren, 44, in the Alabi case as well as Anisha Gable, 35, Anthony Andrews, 29, Shakietha Joseph, 41 and Trevor Frenney, 41 all of Houston; and Nigerian citizens Michael Nathan, 38, and Hauwa Bello, 39, all of whom also resided in Houston.
A “sham” marriage is a marriage that is entered into for the primary purpose of circumventing the immigration laws. All 11 defendants conspired together in connection with a marriage fraud ring involving arranging “sham” marriages between recruited U.S. citizens and recruited Nigerian nationals. Evidence at trial revealed Alabi would search for and recruit Nigerian nationals at nightclubs.
The defendants would pay U.S. citizens for entering into fraudulent marriages to Nigerian nationals who had originally entered the country on tourist visas. The conspirators would then complete immigration documents and falsely submit them to CIS to obtain legal permanent resident status. As part of the conspiracy, the defendants would take staged photographs of themselves as a couple for documentation of an allegedly meaningful relationship. The conspirators also coached the recruits and/or the Nigerian nationals on what to say when questioned or interviewed by law enforcement or immigration officials about the legitimate nature of the marriages.
At trial, the government presented evidence that Alabi recruited Nigerian nationals, including Daniel, to enter into “sham” marriages with U.S. citizens to deceive immigration authorities and ultimately gain lawful permanent status in the Unites States. The evidence proved Daniel did knowingly marry Andrews, a U.S. citizen for the for the purpose of evading any provision of the immigration laws of the United States. At the time of this conspiracy, Alabi and Daniel were citizens of Nigeria and had entered the U.S. temporarily on non-immigrant visas.
The jury also heard that Andrews submitted false SNAP applications claiming to be single, while at the same time, filing sworn immigration documents claiming to be married to Daniel.
The defense attempted to convince the jury that Andrews and Daniel had marital issues but were in a legitimate marriage despite all the documents and testimony to the contrary. The jury did not believe their claims and found them guilty as charged.
Each defendant faces up to five years in federal prison and a possible $250,000 fine on the conspiracy and marriage fraud counts. Andrews also faces an additional five years for the false statements as well as a maximum of 10 years for theft of government funds. Sentencing is set for Aug. 3, 2017. All will remain in custody pending that hearing.
HSI, CIS - Fraud Detection and National Security Directorate conducted the joint investigation along with Department of Agriculture - Office of the Inspector General. The agencies work together on the Document and Benefit Fraud Task Force which was established to combat these types of crimes where fraudulent representations are made to multiple government agencies. Assistant U.S. Attorneys Rick Bennett and Julie Searle prosecuted the case.
Jamaican National Arrested in St. Thomas for Illegal ReentryRead the Press Release
St. Thomas, USVI- Ewart Henry, 71, of Jamaica, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in a criminal complaint with illegal reentry, Acting United States Attorney Joycelyn Hewlett announced. Henry was detained pending further proceedings. Preliminary and detention hearings are set for April 25, 2017.
According to the criminal complaint, on April 21, 2017, Henry presented himself at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands. Henry was a ticketed passenger on an outbound American Airlines flight to Connecticut. He provided a Connecticut state ID card and was unable to provide further documentation of citizenship. CBP secondary inspection discovered that Henry is a Jamaican national and was previously deported in 2008. Henry had not obtained permission to reenter the United States.
Under federal law, if convicted of illegal reentry, Henry faces a maximum sentence of 10 years and a $250,000 fine. The case is being investigated by CBP and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Acting United States Attorney Hewlett reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Inmate at USP Lee Pleads Guilty to Assaulting Corrections OfficerRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County faces additional federal prison time after pleading guilty this morning to resisting and assaulting a corrections officer, Acting United States Attorney Rick A. Mountcastle announced.
Darren Wall, 24, waived his right to be indicted and pled guilty this morning to a one count Information charging him with one count of forcibly assaulting and resisting an officer and employee of the United States while that officer was engaged in the performance of official duties and during the commission of such offense did inflict bodily injury.
United States District Judge James P. Jones scheduled a sentencing hearing for July 6, 2017, at 2:30 p.m., in Abingdon. At sentencing, Wall faces a sentence of imprisonment for a term of between five and eight years
According to evidence presented to the court today by Assistant United States Attorney Randy Ramseyer, on May 9, 2016, on May 9, 2016, Wall, while an inmate at USP Lee, resisted and assaulted a corrections officer while the officer performed his official duties. That assault caused bodily injury to the officer.
The investigation of the case was conducted by the Bristol, Virginia, office of the Federal Bureau of Investigation. Assistant United States Attorney AUSA Randy Ramseyer is prosecuting the case for the United States.
Imposter Attorney Sentenced to Prison in Marriage Fraud SchemeRead the Press Release
LOS ANGELES — A Santa Fe Springs man who posed as an attorney as part of an elaborate immigration fraud scheme in which at least 87 foreign nationals – mostly Chinese citizens – paid tens of thousands of dollars to be “married” to United States citizens was sentenced today to two years in federal prison.
Jason Shiao, also known as “Zheng Yi Xiao,” 67, who operated the Pasadena-based Jason (USA) International Law Corporation, was sentenced by United States District Judge Dale S. Fischer.
Shiao “assisted foreign nationals who were seeking to obtain lawful permanent resident status to remain in the United States by arranging fraudulent marriages for those foreign nationals to United States citizen spouses,” according to documents filed by prosecutors in relation to today’s sentencing.
Shiao was initially charged in this case in 2015, and in January he pleaded guilty to one count of conspiracy to commit visa fraud and marriage fraud.
As part of the scheme, Shiao falsely claimed to be an attorney, paid United States citizens thousands of dollars to participate in the scheme, introduced immigrants seeking benefits to American citizens to facilitate the sham marriages, instructed his clients to pose for wedding photographs, and told clients to lie to officials with U.S. Citizenship and Immigration Services (USCIS).
According to court documents, Chinese nationals paid up to $50,000 to enter into sham marriages in the hopes of obtaining lawful permanent resident cards – often referred to as “Green Cards” – that would allow them to legally reside in the United States.
Shiao’s daughter, Lynn Leung, 45, of Pasadena, also pleaded guilty to a conspiracy charge. Leung was sentenced last week by Judge Fischer to six months in prison.
A third defendant charged in the case – Shannon Mendoza, 50, of Pacoima – was transferred to the Eastern District of Pennsylvania, where he is also being prosecuted for drug trafficking charges based on conduct allegedly committed while on pre-trial release in the immigration fraud case.
While Shiao and Leung served as brokers by arranging the sham marriages and filing immigration applications, Mendoza allegedly acted as a recruiter by finding U.S. citizens who were willing to enter into sham marriages in exchange for payments of up to $15,000.
Court documents describe how the defendants went to considerable lengths to make the fake marriages appear real. According to Shiao’s plea agreement, he and his daughter prepared documentation that was filed with USCIS to bolster the validity of the fraudulent marriages, including staged photographs of “wedding ceremonies” and bogus tax returns, life insurance policies, joint bank account information and apartment lease applications.
The investigation in this case began in September 2012 based on information provided by an anonymous caller who contacted U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
This case was the result of an undercover investigation by the Los Angeles Document and Benefit Fraud Task Force, which includes HSI, the U.S. Department of State’s Diplomatic Security Service, and U.S. Citizenship and Immigration Services’ Fraud Detection and National Security unit.
The case was prosecuted by Assistant United States Attorney Sheila Nagaraj of the Public Corruption and Civil Rights Section. Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section also worked on the case.
Huntington woman pleads guilty to federal heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman involved with others in distributing heroin in 2016 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Tonya Lynn Thompson, 44, entered her guilty plea to conspiracy to distribute heroin.
From the summer of 2016 to September of 2016, Thompson admitted that she participated in the conspiracy to distribute heroin in the Huntington area. During this time period, Thompson and another individual received heroin on consignment. Thompson and others would then distribute the heroin and return the proceeds back to the heroin source.
On September 5, 2016, a deputy with the Cabell County Sheriff’s Department seized $6,407 in cash from Thompson and another individual during a traffic stop on U.S. Route 60 in Huntington after law enforcement received information they would be delivering money that day. Thompson admitted that this money was proceeds from drug trafficking and that they were delivering the cash back to the heroin source. Thompson further admitted that she and others were responsible for distributing up to 400 grams of heroin during her involvement in the conspiracy.
Thompson faces up to 20 years in federal prison when she is sentenced on August 7, 2017.
The Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
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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Houston Couple Heads to Prison for Stolen Identity Tax FraudRead the Press Release
HOUSTON – A 32-year-old legal permanent resident from Nigeria and his 31-year-old Houston girlfriend have been ordered to federal prison in a stolen identity tax fraud scheme, announced Acting U.S. Attorney Abe Martinez. Tom Emasealu and Krystal Prophet entered guilty pleas in December 2016 after four days of trial and hearing the testimony of 21 witnesses. Emasealu pleaded guilty to all charges contained in the indictment - conspiracy, possession of at least 15 unauthorized access devices, access device fraud, wire fraud and aggravated identity theft. Prophet admitted to the conspiracy, access device fraud, wire fraud and aggravated identity theft.
Today, U.S. District Judge Vanessa Gilmore handed Emasealu a total of 87 months in federal prison for the conspiracy, fraud and possession of access devices. He also received a mandatory 24 months for the identity theft which must be served consecutively for a total 111-month-sentence. Prophet received 30 months plus 24 months for a total 54-month-term of federal imprisonment. Prophet will be required to serve three years of supervised release following completion of the prison term, while Emasealu is expected to face deportation proceedings following his release from prison.
Both were jointly and severally liable for $37,100.29 in restitution to the victims. Prophet and Emsealu were also found responsible for $113,526 and $273,181.29, respectfully, to the IRS.
In handing down the sentence, Judge Gilmore addressed Emasealu and noted, “You totally messed up [the victims’] lives by stealing their identities.”
According to witness testimony and the evidence admitted during trial, the conspiracy began in January 2014 and continued through May 2015. Emasealu and Prophet conspired and worked together to obtain the identities of approximately 50,000 victims located nationwide which they used to apply for debit and credit cards with various banking institutions.
The evidence showed that Emasealu and Prophet applied for and obtained approximately 230 debit cards using identities of other individuals. These identities were then used to apply for fraudulent tax refunds. The monies were deposited onto the debit cards that were previously created using victim identities.
In total, the defendants attempted to obtain approximately $1.9 million in fraudulent tax refunds. The IRS was able to stop the majority of the transactions, but Emasealu and Prophet still managed to obtain approximately $250,000 in a four-month period.
Prophet was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Emasealu will remain in custody.
The U.S. Postal Inspection Service, Secret Service and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
Horry County Man Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake stated that Emmanuel Lamar Bellamy, age 29, entered a guilty plea in federal court in Florence, South Carolina, to conspiracy to possess with intent to distribute and distribution of a quantity of marijuana, cocaine, cocaine base and oxycodone, in violation of 21 U.S.C. § 841(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
The case was part of an investigation into a heroin distribution organization operating in the Horry County, South Carolina area. Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department (HCPD) were investigating illegal drug activity in the Loris, South Carolina area. Agents believed that Bellamy was a distributor of illegal drugs. Evidence at the change of plea hearing established that in 2015, agents made two controlled purchases of cocaine base from Bellamy. In September 2016, Bellamy was arrested during a traffic stop and found in possession of a quantity of cocaine. A firearm was also recovered during the traffic stop. As a result of the arrest, a hotel room connected with Bellamy was searched and a quantity of cocaine and fentanyl was located in the room.
Ms. Drake stated that the maximum penalty Bellamy could receive is 20 years imprisonment and a fine of $1,000,000 dollars.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Horry County Police Department (HCPD). Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Hartford Man Sentenced to 6 Years in Federal Prison for Distributing Heroin, Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL GAMERO, 24, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by three years of supervised release, for heroin distribution and firearm possession offenses.
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, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.
GAMERO and Tacuri were arrested on April 21, 2016. On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash. At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash.
On December 15, 2016, GAMERO pleaded guilty to one count of conspiracy to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
GAMERO, a citizen of Peru and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
On December 8, 2016, Tacuri pleaded guilty to one count of conspiracy to distribute heroin. He awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Matthew G. Donahue of the DEA, Caribbean Division, and Special Agent in Charge Kelly R. Jackson Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti, appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida, and elsewhere in the United States in the late 1990s and early 2000s. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017.
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system.”
“After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting U.S. Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Special Agent in Charge Wright. “With the increased strength of our law enforcement partners, both in the United States and abroad. DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
“This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” said Special Agent in Charge Donahue. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
“Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami,” said Special Agent in Charge Jackson. “IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations.”
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida and elsewhere in the United States in the late 1990s and early 2000s. Philippe faces a maximum statutory sentence of 20 years’ imprisonment. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017 at 9:30 a.m.
"After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting United States Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system."
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division, also adding “With the increased strength of our law enforcement partners, both in the United States and abroad, DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” stated Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), said, "Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami. IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations."
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guinean National Pleads Guilty to Possessing Fake Passport and Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Abdoulaye Barry, 25, of Jamaica, NY, pleaded guilty to possessing a fraudulent passport card and aggravated identity theft before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie O. Lamarque, who is handling the case, stated that on February 26, 2017, the defendant, a citizen of Guinea, was found at the Rainbow Bridge with a fraudulent United States Passport card, bearing the name and passport card number of a real person with the defendant’s photograph. Barry also had a fraudulent Ohio driver’s license bearing the name of a real person with the defendant’s photograph, and a Florida driver’s license bearing the name and photograph of another person. The defendant was also in possession of a debit and credit card matching the name on the fraudulent Ohio driver’s license.
The plea is the result of an investigation by the United States Department of State, under the direction of William Ferrari; Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations; and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Sentencing is scheduled for August 3, 2017, at 1:00 p.m. before Judge Arcara.
Former Tennessee Commerce Bank Executive Pleads Guilty to Deceiving Federal RegulatorsRead the Press Release
Lamar Cox, 73, of Nashville, Tenn., former Chief Operating Officer and Board of Directors member of now defunct Tennessee Commerce Bank (TCB), pleaded guilty on April 21, 2017, to causing the bank to make a false statement to the Federal Deposit Insurance Corporation (FDIC), announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. TCB was closed by federal regulators on January 27, 2012, due to its failing financial condition.
“Deceiving federal regulators can have dire consequences for banks and ultimately place its stakeholders in financial peril,” said Acting U.S. Attorney Jack Smith. “Those who engage in such behavior should expect that they will be held accountable through the efforts of our office and our financial regulatory partners.”
According to the Information, Cox devised a scheme to deceive the FDIC by delaying reporting of the full amount of a $710,000 loss by TCB on the bundled sale of $4,000,000 in foreclosed properties. Cox sought to delay reporting the full amount of the loss so that TCB’s books would look better to federal bank examiners, who were scheduled to soon examine TCB. In order to accomplish the deception, Cox created a pre-planned and fraudulent “posting error,” causing TCB to report only $270,000 of the $710,000 loss from its sale of the foreclosed properties in the third quarter of 2009. Cox’s actions caused TCB to understate its net loss by $440,000 reported in the Call Report filed with the FDIC for the third quarter of 2009, thus concealing the true financial condition of TCB from shareholders, examiners and the public.
"In 2009, at the height of the financial crisis and while Tennessee Commerce Bank was in TARP, Lamar Cox had an important decision to make: as required by law, he could tell the truth to bank examiners about loan losses or hatch a scheme to make the bank appear healthier than it actually was," said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (TARP). "Cox chose lies and deception to understate the bank's losses and inflate its income. And, as the chief operating officer and member of the bank's board of directors, he made that decision to deceive in a key position of authority with decades of experience in finance, compliance, and lending. Tennessee Commerce Bank received a $30 million bailout from TARP, all of which was lost when the bank failed. I commend Acting U.S Attorney Jack Smith and Assistant U.S. Attorney Thomas J. Jaworski for standing united with SIGTARP against crime by this TARP banker."
Cox is scheduled to be sentenced on August 14, 2017. He faces up to 30 years in prison, a criminal fine of up to $1,000,000, and restitution to be determined by the Court. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the FDIC Office of Inspector General-Office of Investigations; and the FBI. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Former Russell County Teacher, Guilty of Sexual Exploitation of ChildrenRead the Press Release
Criminal activity took place during a two-year period
LOUISVILLE, Ky. – A Russell County, Kentucky, resident and former teacher, pleaded guilty today in United States District Court, before District Judge Greg N. Stivers, to a single charge of sexual exploitation of children, announced United States Attorney John E. Kuhn, Jr.
According to the factual basis of the plea agreement, Jeffrey McGaha, 49, of Russell Springs, Kentucky, admitted to attempting to receive materials that contained child pornography between September 23, 2012, and September 5, 2014. McGaha used a cellular telephone and various social media applications to communicate with an individual in an attempt to obtain the materials. The materials depicted a minor engaged in sexually explicit conduct. McGaha engaged in this conduct while in Russell County, Kentucky and other places.
McGaha was taken in to federal custody. He is scheduled for sentencing in Bowling Green, on July 18, 2017, at 10:30 a.m. before Judge Stivers.
If the Court accepts the Plea Agreement, McGaha will be sentenced to five years in prison and be required to register as a sex offender. He will also face at least five years of Supervised Release and it could be up to life of Supervised Release.
Assistant United States Jo E. Lawless is prosecuting the case. The Russell Springs Police Department conducted the investigation.
mcgaha_plea_agreement_4-24-17.docx***
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources."
Former Executive Director of Canadian County CASA Sentenced to Ten Months in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – TRACI LORRE OWENS, 48, of Edmond, Oklahoma, was sentenced on Friday to ten months in federal prison and three years of supervised release for embezzling from a Canadian County charity for abused and neglected children, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
From November 2010 until July 2013, Owens was the Interim Executive Director and then the Executive Director of Canadian County Court Appointed Special Advocates ("CASA"), which received more than $10,000 in federal assistance annually from the United States Department of Justice. Based on this federal interest, a federal grand jury indicted Owens on July 22, 2015, for embezzling money from Canadian County CASA. According to the indictment, Owens created duplicate payroll checks for herself and also deposited checks payable to herself and to cash for reimbursement of unauthorized expenses. On August 5, 2016, Owens pled guilty to a superseding information that charged the same embezzlement offense.
On April 21, 2017, U.S. District Judge Vicki Miles-LaGrange sentenced Owens to ten months in the custody of the Federal Bureau of Prisons, to be followed by three years of supervised release. The court found that Ms. Owens embezzled $55,143.93 and ordered restitution to Canadian County CASA in that amount. She also found that Owens abused the trust of Canadian County CASA, which lost its CASA certification in December 2013 because of Owens’s embezzlement. In mid-2014, Canadian County CASA was reconstituted as a certified CASA under the leadership of a new board of directors.
This case is the result of an investigation by the Department of Justice Office of Inspector General, with assistance from the Canadian County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and Scott E. Williams.
Former Executive Director of Birmingham Volunteer Lawyer Program Charged with Misapplication of Federal Program FundsRead the Press Release
NASHVILLE, Tenn. – April 21, 2017 - Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyer Program, has been charged with misapplication of property worth at least $5,000 from a federal program, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 through August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of impartiality.
This offense is punishable by not more than 10 years in prison, a fine of not more than $250,000, a period of supervised release of not more than 3 years, and payment of restitution in an amount to be determined by the court.
A criminal information is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee is prosecuting the case.
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