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1 June 2017
Florida Salesman Pleads Guilty to Evading Taxes on More Than $1.5 Million in IncomeRead the Press Release
A Fort Lauderdale, Florida resident pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Thomas Daly, 53, admitted that he evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Daly further admitted that, except for the 2007 tax year, he has not filed an income tax return since 2002. Daly worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified Daly of its intent to levy his wages because of his failure to pay taxes. To obstruct the IRS’s collection efforts, Daly established his own business, South Florida Home Marketing Inc. (SFHM), and changed his employment status from an employee to an independent contractor. Daly listed himself as the director of SFHM and opened a business bank account in its name. Due to Daly’s change in employment status, his employer paid SFHM directly and the IRS’s attempts to levy Daly’s wages were thwarted.
From approximately August 2009 through April 2017, Daly used SFHM’s bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry and a boat. He also falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the SFHM bank account. Daly admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. Daly admitted that his actions caused a tax loss of more than $351,241.
Sentencing is scheduled for Aug. 18. Daly faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Plead Guilty in $6 million DOD FraudRead the Press Release
PITTSBURGH - Five defendants have pleaded guilty in federal court in Pittsburgh to major fraud against the U.S. Department of Defense, tax violations and illegal gratuities, Acting U.S. Attorney Soo C. Song announced today.
Thomas G. Buckner, 66, of Gibsonia, Pennsylvania, and his brother, John P. Buckner, 68, of Lyndora, Pennsylvania, pleaded guilty to one count of defrauding U.S. Army Tank-Automotive and Armaments Command (TACOM), and two counts of income tax evasion.
In connection with the guilty pleas, the court was informed that the Buckner brothers were 50/50 owners of Ibis Tek, LLC (hereinafter Ibis Tek). Ibis Tek’s main office was located at 912 Pittsburgh Street, Butler, Pennsylvania 16002, and it had an office at Ibis Tek Victory Road facility, 220 South Noah Drive, Saxonburg, PA 16056. Ibis Tek manufactured both military and commercial products but specialized in the development of transparent armor and accessory products for tactical and military combat vehicles. Ibis Tek itself was not charged with any violations.
TACOM, located in Warren, Michigan, was responsible for letting and overseeing contracts on behalf of the U.S. Department of Defense, including contracts concerning High Mobility Multipurpose Wheeled Vehicle (hereinafter Humvees). Ibis Tek had a subcontract to produce Vehicle Emergency Escape Window (VEE Window) Kits for Humvees. The Buckners inflated Ibis Tek’s costs to manufacture the VEE Window kits by creating Alloy America, LLC, (Alloy) a company that was co-located at Ibis Tek that the Buckner brothers controlled, by using Alloy to purchase the frames in China for $20 per frame, and by using false invoices from Alloy to make it appear that Ibis Tek paid $70 per frame. In addition, the Buckner brothers sold scrap aluminum collected in the manufacturing process but failed to credit that money to TACOM. The losses to TACOM were $6,085,709. Both Buckner brothers pleaded guilty to income tax evasion for 2009 and 2010 for not reporting the cash from sales of scrap aluminum, and for taking unallowable business deductions described below.
Harry H. Kramer, 52, of Wexford, Pennsylvania, pleaded guilty to one count of fraud for his role as CFO of Ibis Tek in the above described scheme against TACOM, and to filing false returns for Ibis Tek for 2009 and 2010.
David S. Buckner, of Warren, Michigan, (no relation to Thomas or John Buckner) pleaded guilty to a one-count Information charging him with impeding the IRS by acting as a financial intermediary who received and then paid out money to Anthony Shaw, for the purpose of concealing that the monies were income of Shaw, concealing the true source of the monies, David Buckner owned D & B Cycle Parts and Accessories.
Anthony A. Shaw, 55, of Rochester Hills, Michigan, pleaded guilty to a five-count Information. Shaw, formerly a civilian employee at TACOM, was a Deputy Project Manager responsible for directing development of and managing government contracts for combat vehicle systems such as Humvees. Shaw pleaded guilty to demanding and receiving a total of $1,055,500 of illegal gratuities paid by checks, cash and wire transfers by Thomas Buckner to and through D & B Cycle Parts and Accessories for Shaw. Shaw also pleaded guilty to income tax evasion for 2009 and 2010 for not reporting payments from Thomas and John Buckner totaling in excess of $1,000,000. Finally, Shaw pleaded guilty to making false statements when he denied that he had socialized with Thomas Buckner and John Buckner, and denied that he had traveled in a car, boat and an airplane owned by Thomas Buckner or John Buckner.
“These guilty pleas demonstrate the Defense Criminal Investigative Service’s (DCIS) ongoing commitment to ensuring the integrity of the U.S. Defense Department’s procurement process,” said Leigh-Alistair Barzey, Special Agent in Charge, DCIS Northeast Field Office. “Fraudulent schemes, such as those identified in this successful investigation, endanger U.S. military forces, waste valuable resources and erode public confidence. DCIS will continue to work with its law enforcement partners and federal prosecutors to protect the American taxpayer and Warfighter.”
Acting IRS-CI Special Agent in Charge Greg Floyd added, “The guilty pleas entered in this case should serve as a strong reminder to all of those who engage in deliberate acts to defraud the U.S. Government and the taxpaying citizens of our country, that they will be held accountable for their actions. We will partner with other agencies to ferret out and unravel the schemes that these individuals concoct, and they will face justice.”
United States District Judge Arthur J. Schwab scheduled the sentencings for Thomas and John Buckner for October 10, 2017; for Anthony Shaw on October 12, 2017; for David Buckner on October 17, 2017, and for Kramer on October 18, 2017. For Thomas and John Buckner, the law provides for a maximum total sentence of 20 years in prison, a fine of $1,500,000, or both. For Kramer, the law provides for a maximum total sentence of 16 years in prison, a fine of $1,500,000, or both. For David Buckner, the law provides for a maximum total sentence of 3 years in prison, a fine of $250,000, or both. For Shaw, the law provides for a maximum total sentence of 19 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
Special Agents of the Department of Defense, Defense Criminal Investigation Service, the Internal Revenue Service, Criminal Investigation, and the U.S. Army Criminal Investigation Division conducted the investigation that led to the prosecution of these defendants.
Ferndale Man Convicted of Conspiracy, Mail Fraud, Identity Theft and Money LaunderingRead the Press Release
A resident of Ferndale, Michigan, was convicted by a jury last month on numerous counts of conspiracy, mail fraud, aggravated identity theft, and engaging in illegal monetary transactions, Acting U.S. Attorney Daniel L. Lemisch announced today.
Joining Lemisch in the announcement was Manny Muriel, Special Agent in Charge of the Detroit Office of the Internal Revenue Service – Criminal Investigation.
Durand L. Micheau, aka Durand Micheau-El and Gamba Mwenye El, 47, was convicted following a one-week trial conducted before U.S. District Judge Judith Levy. Micheau is scheduled to be sentenced on October 11.
At an earlier trial, Micheau’s wife and two brothers-in-law, Sharon Gandy-Micheau, Anthony Gandy, and Christopher Gandy, were convicted by a jury on the same charges. Sharon is scheduled to be sentenced on August 28, and Anthony and Christopher, her brothers, are scheduled to be sentenced on August 21.
The evidence presented at the trials established that the defendants participated in a scheme to defraud the federal government that centered on the filing of over 20 fraudulent Forms 1041, U.S. Income Tax Returns for Estates and Trusts. The returns requested over $1.4 million in refunds based on tax withholdings that never occurred. The returns resulted in the IRS’s mailing 14 income tax refund checks to the defendants that were payable to the trusts and totaled $940,000. To facilitate the scheme, the defendants obtained employer identification numbers (EINs) for the trusts from the IRS, opened post office boxes, and opened bank accounts in the names of the trusts. The trusts did not exist. The U.S. Treasury refund checks were either deposited into the bank accounts, followed shortly thereafter by large cash withdrawals, or cashed at local check-cashing stores.
In addition, the scheme used the names and identification information of a number of individuals whose purses or wallets had been lost or stolen, and it depended on the assistance of some of the defendants’ friends.
“These defendants attempted to steal taxpayer money, and they did so by using the identities of innocent victims,” Lemisch said. “This case should signal the ability of IRS investigators to detect fraud and bring offenders to justice.”
IRS-Criminal Investigation Special Agent in Charge Manny Muriel said, “Investigating refund fraud and identity theft remains a priority for IRS Criminal Investigation. Today’s guilty verdicts should send a clear message to would-be criminals that IRS – Criminal Investigation will continue to pursue those who prey on innocent victims and steal from the American tax system.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant U.S. Attorneys Stephen Hiyama and Ross MacKenzie, with the assistance of paralegal Carol Oliver.
Federal Jury Finds St. Cloud Man Guilty of Attempting to Sell Fake HeroinRead the Press Release
Orlando, Florida– Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Danny Anthony Collado Nieves (25, St. Cloud) guilty of attempting to possess with the intent to distribute a controlled substance. His sentencing hearing is scheduled for September 15, 2017; he faces a maximum penalty of 20 years in federal prison.
According to evidence presented at trial, on November 2, 2016, Collado Nieves attempted to sell over 100 grams of a substance that he believed to be heroin to an undercover police officer for $11,000. Although lab results later confirmed that the “heroin” was not a controlled substance, testimony and evidence showed that he had intended to sell real heroin on that date.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Sean P. Shecter and Vincent Chiu.
Federal Judge Sentences Asheville Area Cattle Farm and Its Owner for Discharging Cow Feces into French Broad River in Violation of the Clean Water ActRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Crowell Farms, Inc. (Crowell Farms) located in Asheville, and its owner, Michael Alexander Crowell, 65, also of Asheville, on felony violations of the Clean Water Act, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
Michael Crowell was ordered to serve six months of house arrest during his three-year term of probation and to pay $10,000 in fines. Crowell Farms was ordered to pay an additional $40,000 in fines, offset by any fines paid to the State of North Carolina, and to serve a three-year term of probation during which it will have to abide by an environmental compliance program.
U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Andy Castro of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; and John Keane, Acting Special Agent in Charge of the State Bureau of Investigations’ Diversion and Environmental Crimes Unit (SBI/ DECU).
According to court filings and today’s sentencing hearings, Crowell Farms is in the beef cattle farming business, maintaining more than 150 cows and managing more over 200 acres of agricultural fields. In the annual course of its operations, Crowell Farms disposes of thousands of pounds of solid and liquid animal waste, which are considered pollutants under the Clean Water Act. Court records show that Michael Crowell is the Operator Responsible-in-Charge (ORC) for the permitted waste disposal system at Crowell Farms. As the ORC, Michael Crowell is responsible for ensuring that animal waste is properly disposed into the farm’s waste management system, namely in solids waste lagoons.
According to court records, from in or about November 2015 through at least December 2015, Michael Crowell had installed bypasses at the farm’s waste lagoons, which were discharging liquid animal waste into a tributary of the French Broad River. Crowell Farms did not have a permit to discharge liquid waste to waters, and was permitted only to discharge the waste to an on-site land application system. Filed court documents indicate that Michael Crowell had installed the bypasses himself, because he had trouble managing Crowell Farms’ waste management system. Filed documents also show that Michael Crowell previously told inspectors he was aware that he had done “the wrong thing.” State inspectors further discovered that Crowell Farms did not own the proper land application equipment.
In November 2016, Michael Crowell and Crowell Farms pleaded guilty to one count of criminal violation of the Clean Water Act.
The Clean Water Act is a federal law enacted to prevent, reduce and eliminate pollution, and to restore and maintain the chemical, physical, and biological quality of the Nation’s waters for the protection and propagation of fish and aquatic life and wildlife, for recreational purposes, and for the use of such waters for public drinking water, agricultural, and industrial purposes. The French Broad River supplies drinking water to more than one million people and is frequently used for recreational water activities, such as swimming and kayaking. It is also protected because it supports secondary recreation, including fishing, fish consumption, and agriculture.
The investigation was led by the EPA’s Criminal Investigation Division and SBI’s DECU, with significant and substantial assistance from the North Carolina Department of Environmental Quality, Division of Water Resources – Asheville Regional Office. Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fall River Man Found Guilty of Violating Conditions of Supervised ReleaseRead the Press Release
Boston - A Fall River man was found guilty and sentenced today in federal court in Boston for violating the terms and conditions of his supervised release.
Scott Baptista, 42, was found to have violated his conditions of supervised release by United States District Court Judge Denise J. Casper by allegedly raping a woman and taking an un-prescribed suboxone pill. Baptista admitted to having sex with the victim, claiming that it was consensual. The victim died nine days after the incident of a drug overdose, and because the victim could not testify, the Commonwealth had to dismiss the related state criminal charges against Baptista. Revocation proceedings require that the government only prove that the alleged violation occurred by a preponderance of the evidence.
Judge Casper revoked Baptista’s supervised release and sentenced Baptista to two years in prison, the maximum period permitted by statute for his supervised release violation, and 12 months of supervised release to follow. In July of 2012, Baptista pleaded guilty to selling a stolen firearm and was sentenced to 55 months in federal prison followed by 36 months of supervised release.
Acting United States Attorney William D. Weinreb made the announcement today. Assistant U.S. Attorney Thomas Kanwit of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Drug Dealer Charged with Heroin Overdose Deaths in the Bronx and New RochelleRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Patrick Carroll, the Commissioner of the New Rochelle Police Department (“NRPD”), announced the arrest of and unsealing of an indictment against FRANKIE BEQIRAJ charging him with conspiracy to distribute heroin, cocaine, oxycodone, and alprazolam. The indictment alleges that heroin distributed by BEQIRAJ and his co-conspirators resulted in the deaths of Robert Vivolo and Leonides Madrid.
BEQIRAJ was presented in federal court in Manhattan before U.S. Magistrate Judge Barbara C. Moses today and ordered detained. The case has been assigned to U.S. District Judge Richard M. Berman.
Acting U.S. Attorney Joon H. Kim stated: “As alleged in the Indictment, Frankie Beqiraj worked with others to sell a whole range of drugs, including heroin, cocaine, oxycodone, and alprazolam. As alleged, two young people are dead, victims of Beqiraj’s alleged heroin dealing and of the opioid epidemic that is sweeping the country. Thanks to the exceptional work of our partners at the New York City Police Department, the New Rochelle Police Department, and the Westchester County District Attorney’s Office, Beqiraj will be held accountable for the drugs he allegedly peddled and the tragic deaths that resulted.”
NYPD Commissioner James P. O’Neill stated: “The defendant in this case faces a mandatory minimum sentence of 20 years in prison – and a maximum of life behind bars – after investigators linked the heroin that he distributed to two overdose deaths, one in the Bronx and one in New Rochelle. It is the latest example of our commitment to holding drugs dealers criminally responsible. I want to thank the NYPD and the New Rochelle PD investigators, as well as the Southern District, for their work on this case.”
NRPD Commissioner Patrick Carroll stated: “The arrest and indictment of Frankie Beqiraj, holding him accountable for the death of New Rochelle resident Leonides Madrid, is an example of the New Rochelle Police Department’s commitment to fight against the opioids epidemic that our community faces today. Working collaboratively with our law enforcement partners, the NYPD, the Westchester County District Attorney’s Office, and the United States Attorney sends a strong message to drug dealers that we will do all we can to arrest and prosecute those selling drugs in our community.”
As alleged in the Indictment against BEQIRAJ [1]:
From July 2016 up to January 2017, in the Southern District of New York and elsewhere, FRANKIE BEQIRAJ and others conspired to sell one kilogram and more of heroin, as well as cocaine, oxycodone, and alprazolam. The use of heroin distributed by BEQIRAJ and his co-conspirators resulted in the deaths of Robert Vivolo, 25, of the Bronx, New York, on October 21, 2016, and of Leonides Madrid, 28, of New Rochelle, New York, on January 9, 2017.
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FRANKIE BEQIRAJ, 27, faces a maximum sentence of life in prison, and a mandatory sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Kim praised the outstanding investigative work of the NYPD, the NRPD, and the Westchester County Overdose Response Initiative. Mr. Kim thanked the Westchester County District Attorney’s Office for its assistance in the investigation.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys David W. Denton Jr. and Elizabeth Hanft are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Coushatta man sentenced to 83 months in prison for drug, firearm chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Coushatta man was sentenced Wednesday to 83 months in prison for illegally possessing methamphetamine and firearms.
Aaron Joseph Clark, 66, of Coushatta, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to three years of supervised release. According to the February 2, 2017 guilty plea, law enforcement agents identified Clark as a suspect in a drug case and conducted a search of his temporary residence on January 26, 2016 in Ringgold, La. They found a gram of methamphetamine, two grams of marijuana and nine Xanax pills. They also found digital scales, baggies, syringes and pipes. Additionally, agents located ammunition and a number of loaded weapons including: three revolvers, two derringers, four pistols, four rifles, three shotguns and a weapon made from a shotgun with no serial number. Two of the shotguns were sawed off, and at least six silencers were also found among his possessions. Two days later, agents found 20 grams of methamphetamine hidden in an ammo bag.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Bienville Parish Sheriff’s Office, Red River Parish Sheriff’s Office and Tri-Parish Drug Task Force conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
Convicted Felon Pleads Guilty to Federal Firearms ChargesRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Raymond Adams (29, St. Petersburg) has pleaded guilty to being a felon in possession of a firearm and carrying a firearm during a drug trafficking offense. He faces a minimum mandatory penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Adams and others planned to break into a St. Petersburg residence to steal marijuana and later distribute it. Adams was armed with a 9-mm handgun during the attempted burglary and, when detected by law enforcement officers, he fled with his associates in a vehicle that later crashed. Adams then fled on foot and discarded the gun. Officers later recovered that firearm from a trash can.
At the time of the incident, Adams was a felon whose prior criminal history included a 2010 manslaughter conviction. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney James C. Preston, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of the St. Petersburg Violent Crime Reduction Initiative.
Cleveland man sentenced to jail and ordered to repay $205,000 stolen from taxpayersRead the Press Release
A Cleveland man was sentenced to nine months in jail after illegally receiving more than $205,000 in Veterans Affairs benefits over a decade, said Acting U.S. Attorney David A. Sierleja and Gavin McClaren, Resident Agent in Charge of the Department of Veterans Affairs, Office of Inspector General’s Cleveland office.
Leon Pinckney, 62, was issued a Social Security Number (SSN) in 1969, which he used to obtain a driver’s license and enlist in the military. In 1984, he fraudulently obtained a second SSN, which he used to obtain another driver’s license.
In 2005, Pinckney used the first SSN to apply for pension benefits from the U.S. Department of Veterans Affairs. He was awarded benefits based on his false statement that he was unable to work and had no income. However, from 2005 through 2012, Pinckney continued to work, using the second SSN. In October 2012, he applied for and was approved for Social Security disability benefits under the second SSN, according to court documents.
Overall, Pinckney stole approximately $205,534 from the VA by concealing the other income he was receiving under the second SSN. U.S. District Judge Christopher Boyko ordered Pinckney to repay the full amount.
“This defendant deserves to be locked up after more than a decade of stealing from the public,” Sierleja said.
“Pension fraud takes money from vulnerable veterans, leaving taxpayers with the bill,” McClaren said.
The U.S. Department of Veterans Affairs Office of the Inspector General and the Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Special Assistant U.S. Attorney Lisa J. Sanniti.
Chesterfield Township Supervisor and Macomb Township Trustee Plead Guilty to Demanding and Taking BribesRead the Press Release
Two elected officials pleaded guilty today on charges of demanding and taking bribes in exchange for their official acts in connection with a municipal contract, Acting United States Attorney Daniel Lemisch announced.
Lemisch was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Pleading guilty were former Chesterfield Township Supervisor Michael Lovelock, 57, of New Baltimore, and former Macomb Township Trustee Clifford Freitas, 43, of Macomb Township.
According to court records Lovelock, from approximately 2010 through 2016, demanded and accepted money from a municipal vendor in exchange for using his official position as Chesterfield Supervisor to (1) secure an extension of a contract the vendor had with the township, (2) put past due accounts of the vendor on the Chesterfield tax rolls so as to assist the vendor in getting paid by township residents, (3) obtain payment from Macomb County for the vendor for its work on flood damage that occurred in August 2014; and (4) provide a favorable reference for the vendor for other municipalities and so that Lovelock would not speak negatively about the vendor. In total, Lovelock accepted over $30,000 in cash from the vendor’s representative. In addition, Lovelock accepted two other bribe payments totaling $4,000 in cash from an undercover agent of the FBI and an individual cooperating in the investigation.
Clifford Freitas pleaded guilty to demanding and accepting money in exchange for his official acts as a Macomb Township Trustee. According to court records, Freitas demanded and accepted money from a municipal vendor in exchange for using his official position as a Trustee to get the vendor a municipal contract and to secure favorable terms for the company. In July 2015, Macomb Township put out a request for proposal for a municipal contract. Soon thereafter, Freitas approached a representative of a prospective vendor, and Freitas demanded money in return for Freitas’ support as a Trustee. Freitas agreed to accept $7,500 from the vendor in return for his assistance in getting the contract. Through his position as a Trustee, Freitas obtained sensitive bid information on the municipal contract in order to help the vendor, telling the vendor what bid was needed to beat out competing contractors. After the vendor was awarded the contract by Macomb Township, Freitas demanded an additional $35,000 from the company representative for his additional assistance as a public official relating to the contract.
Each face a statutory maximum penalty of ten years in prison and a fine of up to $250,000. Sentencing has been set for October 5, 2017 at 1:30 pm in Port Huron
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Charleston man pleads guilty to possessing child pornographyRead the Press Release
CHARLESTON, W.Va. – A Charleston man faces up to 20 years in federal prison after pleading guilty today to a child pornography crime, announced United States Attorney Carol Casto. Jason Lee Smith, 39, entered his guilty plea to possession of child pornography.
Smith admitted that he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located in Charleston on his personal computer. The investigation revealed that Smith was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“We have no tolerance for those who put the safety of our children at risk,” stated United States Attorney Casto. “Crimes involving the exploitation and abuse of children result in serious charges that carry severe consequences. We will use every tool at our disposal to track down these sexual predators and prosecute them to the fullest extent of the law.”
The sentencing is scheduled for August 24, 2017.
The West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Chairman and CEO of Purported Oil and Gas Company Charged in Manhattan Federal Court with $300 Million International Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that RAHEEM J. BRENNERMAN, a/k/a “Jefferson R. Brennerman,” a/k/a “Ayodeji Soetan,” has been charged with conspiracy to commit bank and wire fraud, bank fraud, wire fraud, and visa fraud in connection with a wide-ranging international scheme to fraudulently obtain multimillion-dollar business loans for several companies controlled by BRENNERMAN, including The Blacksands Pacific Group, Inc. BRENNERMAN was arrested yesterday in New Jersey, presented today before United States District Judge Richard Sullivan, and ordered detained.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, for years Raheem J. Brennerman conned financial institutions and investors into extending loans to his phony businesses. Instead of using that money on actual business deals, Brennerman spent millions on himself, paying personal expenses including on international travel, luxury hotels and fine jewelry. Having perpetrated this multi-million dollar fraud, Brennerman allegedly took elaborate steps to cover it up. We thank our law enforcement partners for their excellent work in uncovering this fraud.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
BRENNERMAN, from at least in or about 2011, has orchestrated a scheme to defraud financial institutions through his operation of a purported oil and gas company called The Blacksands Pacific Group, Inc. (“Blacksands Pacific”), as well as several subsidiaries and associated corporate entities. BRENNERMAN sought financing for purported business deals by falsely representing that Blacksands Pacific had significant worldwide involvement in the exploration and development of oil and gas reserves, produced over 10,000 barrels of oil per day, had over $1 billion in long-term assets and over 100 million barrels of proved oil reserves, and employed approximately 100 employees, when, in fact, BRENNERMAN knew that Blacksands Pacific lacked any long-term assets, and had, at most, a few employees and minimal involvement in the oil and gas industry. As part of the fraudulent scheme, BRENNERMAN also lied about his name, place of birth, citizenship, and finances, and invented fake employees. Once BRENNERMAN received financing from victims based on his false statements, BRENNERMAN used significant amounts of the money to pay his own personal expenses, including the lease of a luxury condominium in Las Vegas, Nevada, and stays at expensive hotels (including thousands of dollars’ worth of in-room dining service), as well as the purchase of international flights to Europe, chartered car services, fine jewelry, high-end designer clothing, and spa treatments. In total, BRENNERMAN attempted to defraud financial institutions of more than $300 million.
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BRENNERMAN, 39, of Las Vegas, Nevada, is charged with one count of conspiracy to commit bank and wire fraud and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of visa fraud, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Criminal Investigators for the United States Attorney’s Office for the Southern District of New York. He also thanked the United States Department of State’s Diplomatic Security Service, United States Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, the United States Attorney’s Office for the Central District of California, and the United States Attorney’s Office for the District of Nevada for their assistance.
On March 3, 2017, BRENNERMAN and Blacksands Pacific were charged in a separate case in Manhattan federal court with criminal contempt of court. That case is pending before United States District Judge Lewis A. Kaplan and is scheduled for trial on September 7, 2017.
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If you have any information regarding BRENNERMAN, please report it by phone at 212-637-2267 or by email at [email protected].
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Nicolas Landsman-Roos and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Cedarcreek Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Cedarcreek, Mo., man was sentenced in federal court today for illegally possessing a firearm and ammunition.
Sean L. Myers, 49, of Cedarcreek, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Myers was sentenced as an armed career criminal due to his prior felony convictions. The court ordered today’s sentence to be served consecutively to his 1991 Camden County convictions for first degree assault and armed criminal action (a sentence of 50 years) and his 2010 Taney County conviction for distributing and manufacturing a controlled substance (a sentence of 15 years).
On Nov. 15, 2016, Myers pleaded guilty to being a felon in possession of a firearm and ammunition.
After law enforcement was contacted by a person who reported that Myers had attempted to shoot someone, a Missouri State Highway Patrol trooper conducted a traffic stop of a vehicle driven by Myers on Feb. 1, 2016. During the traffic stop, Myers acted as if he were hiding an item. Troopers observed a loaded Ruger .22-caliber rifle on the front passenger seat of the vehicle. Troopers also located an aluminum can wedged between the passenger seat and the center console. The can contained a dried substance that field tested positive for methamphetamine.
Investigators later determined that the rifle was registered to Myers’s mother. When law enforcement contacted Myers’s mother, she indicated that the rifle found in Myers’s possession belonged to her and he did not obtain her permission before taking the firearm.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Myers has seven prior felony convictions for stealing, as well as prior felony convictions for assault, armed criminal action, attempted manufacture of a controlled substance and burglary.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Camden Man Pleads to Felon in Possession of Firearm and Ammunition ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Richard Herman Roach, III, age 28, of Camden, plead guilty in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Senior United States District Judge Cameron McGowan Currie, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court during the guilty plea hearing established that at approximately 2:35 am on July 2, 2016, a deputy with the Kershaw County Sheriff’s Department tried to stop a speeding vehicle on Highway 34. The vehicle failed to stop and a chase ensued during which the vehicle reached speeds up to 100 mph. After the driver lost control trying to make a turn and the vehicle ended up in a ditch, the deputy approached and noticed Roach, the driver and sole occupant, reaching underneath the seat. After removing Roach from the vehicle, the deputy found a loaded Ruger .45 caliber pistol in the front area of the vehicle and a small bag of marijuana in Roach’s front pants pocket. Roach was placed under arrest for state charges. While in transport to the detention center, Roach escaped from deputies, but was apprehended shortly thereafter using a K-9 tracking team.
Roach is prohibited under federal law from possessing firearms and ammunition based upon his prior federal conviction for conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 5 grams or more of crack cocaine and his prior state conviction for forgery. At the time of the incident, Roach was on supervised release for the federal drug conspiracy conviction after previously serving time.
Roach faces a maximum of ten years imprisonment, a fine of $250,000, and three years of supervised release on the felon in possession of a firearm and ammunition charge. Roach also faces a revocation of his federal supervised release sentence.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Kershaw County Detention Center and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Buffalo Men Plead Guilty in Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Mark Gonzalez, 22, and Michael Perez, 21, both of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a $5,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between September 2014 and September 28, 2015, the defendants conspired with Hector Carattini and others to distribute heroin on the West Side of Buffalo. The investigation utilized court ordered wiretaps as well as undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
The 10 defendants charged in this case were street-level distributors or “runners” in a heroin trafficking ring operated by Daniel Molina-Rios who was arrested in June 2015 along with Orlando Rios, Luis Montanez and Jose Andujar. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
A total of 14 defendants have been indicted in this case. Gonzalez and Perez are the fourth and fifth to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Gonzalez is scheduled to be sentencing on September 8, 2017, at 1:30 p.m., Perez on September 11, 2017 at 12:30 p.m., both before Judge Arcara.
Buffalo Man Indicted on Fentanyl and Heroin ChargesRead 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 a federal grand jury has returned an indictment charging Shawn Woods, 25, of Buffalo, NY, with possession with intent to distribute fentanyl, butyryl fentanyl, furanyl fentanuyl, and heroin; maintaining a drug involved premises; and possession of a firearm in furtherance of drug trafficking activity. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the indictment, on February 1, 2017, the defendant possessed large quantities of fentanyl, butyryl fentanyl, furanyl fentanuyl, and heroin, which were intended for distribution in the Buffalo area.
Woods was arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The indictment is the result of an investigation by the Federal Bureau of investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; and Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Man Sentenced to 30 Years in Prison for Producing Child Pornography with 3-Year-Old ChildRead the Press Release
PHILADELPHIA – Norman Ridgeway, 27, of Croydon, Pennsylvania, was sentenced today to 30 years in prison as a result of his production of child pornography with a 3-year-old child, his distribution of that same child pornography over the internet, and his possession of a massive trove of videos and images containing child pornography.
Defendant Ridgeway pleaded guilty on February 9, 2017, to counts one through three of an indictment charging him with production of child pornography, transportation of child pornography, and possession of child pornography. Defendant Ridgeway’s crimes involved the production of child pornography with a 3-year-old child, and his subsequent distribution of that child pornography over the internet. Separately, defendant Ridgeway was caught possessing approximately 1,886 images containing child pornography, and 225 videos containing child pornography. When federal and local law enforcement attempted to arrest the defendant, he fled in a vehicle, during which time he destroyed additional evidence containing child pornography. Subsequently, while detained at the Federal Detention Center, Defendant Ridgeway attempted to obstruct justice by calling an associate and ordering that associate to locate and destroy additional evidence containing child pornography that the defendant had secretly stored in his wallet on a digital memory card.
Defendant Ridgeway was sentenced by U.S. District Judge Eduardo C. Robreno to a 30-year term of incarceration, 20 years of supervised release, a $2,000 fine, and a special assessment of $300. “The crimes that this defendant committed against the three-year old victim in this case, and numerous other children, are an abomination,” said Acting United States Attorney Louis D. Lappen. “We are pleased with today’s outcome, and we remain dedicated to working on behalf of the victims of child sexual abuse and exploitation to prosecute and incarcerate for lengthy periods of time those who exploit the most vulnerable members of our community.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI and the Washington, D.C. Metropolitan Police Department, with assistance provided by the Bensalem Township Police Department, the Warminster Township Police Department, the Middletown Township Police Department, and the Bristol Township Police Department. It was prosecuted by Assistant United States Attorney James Petkun.
Bronx Man Sentenced to 18 Years in Prison for Sex Trafficking of Minors and Related OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that DAVID HOPE, a/k/a “Capo,” was sentenced yesterday to 18 years in prison for running a criminal sex trafficking and prostitution enterprise involving minor girls, as well as possession of child pornography and possession of a firearm as a convicted felon. In addition, KEMAR WILLIAMS, a/k/a “K-bag,” a co-defendant in the case, was sentenced yesterday to 42 months in prison for conspiracy to commit sex trafficking of minors with Hope. HOPE and WILLIAMS pled guilty on December 1, 2016, and December 8, 2016, respectively, before United States District Judge Sidney H. Stein, who also imposed yesterday’s sentences.
Acting Manhattan U.S. Attorney Joon H. Kim said: “David Hope sexually exploited and trafficked vulnerable women and minor girls, and Kemar Williams assisted in the exploitation. Hope and Williams used physical violence, weapons, coercion, and intimidation to exert control over their trafficking victims. Both have now received the significant sentences that their crimes deserve.”
According to the Indictment, Complaint, and other documents filed in the case, as well as statements made during the plea and sentencing proceedings:
Since at least 2013, HOPE directed and conducted a criminal sex trafficking and prostitution enterprise (the “Enterprise”) that recruited and exploited minor girls and young women, and then prostituted them using an online classifieds website for his own profit. HOPE, who was wheelchair-bound, operated the Enterprise at his apartment in the Bronx, New York (the “Hope Apartment”), Connecticut, and elsewhere. WILLIAMS participated and engaged in the Enterprise and facilitated the prostitution of minor girls.
HOPE recruited minors who looked up to him to participate in the Enterprise and other criminal activity. HOPE, who was known to carry a firearm, employed myriad tactics – including manipulation, intimidation, coercion, threats, and violence – to recruit and maintain the girls and young women he sold for sex. For example, on at least two occasions, HOPE physically beat one of the adult women he prostituted, and on at least one occasion, threatened that victim with a firearm. At least four minor victims were exploited by HOPE’s Enterprise.
In or about November 2015 when he was arrested, HOPE also possessed on his cellphone a sexually explicit video of one of the minor girls whom he trafficked.
In or about January 2015, HOPE possessed a defaced firearm (the “Firearm”) after he had been previously convicted of a felony crime. Specifically, on January 16, 2015, when New York City Police Department (“NYPD”) officers were executing a search warrant at the Hope apartment, HOPE instructed a minor female to throw the loaded Firearm out the rear window of the HOPE Apartment. Before it was thrown out the window, the Firearm was in the bed where HOPE was sleeping.
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Mr. Kim praised the investigative work of the Federal Bureau of Investigation. He thanked the NYPD for its assistance throughout the investigation, and the United States Attorney’s Office for the District of Connecticut and the Connecticut Child Exploitation Task Force for their assistance with investigating HOPE’s operations in Connecticut. Mr. Kim also thanked the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the ATF/NYPD Joint Robbery Task Force (SPARTA) for its assistance in the early stages of the investigation.
Any individuals who believe they have information concerning the exploitation of children may contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Bedford man indicted for Maple Heights bank robberyRead the Press Release
A federal grand jury returned an indictment charging Kevin Simons, 28, of Bedford, with one count of bank robbery, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Simons, aided and abetted by Alyssa Jarrae Williams and another person, robbed a U.S. Bank in Maple Heights on July 25, 2016. The robbers stole approximately $2,893 from the bank, according to the indictment.
Assistant United States Attorney Megan R. Miller is prosecuting the case following an investigation by the Federal Bureau of Investigation and the Maple Heights Police Department.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Amherst Man Charged with Witness Intimidation and Extortion of A Local Physician and His FamilyRead 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 Gary Drago, 56, of Amherst, NY, was arrested and charged by criminal complaint with intimidation of a witness, and making a threatening communication to extort money. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joel L. Violanti, who is handling the case, stated that according to the complaint, on May 15, 2017, the FBI received a complaint from an individual (Victim 1) that the defendant was engaged in extortion with death threats against her and her husband (Victim 2). During an interview in the morning on May 19, 2017, the victims told special agents that Drago has been extorting Victim 2, a physician, and his medical practice for approximately four years. The complaint states that the defendant initially asked for smaller amounts of money in the form of loans, which he never repaid. Eventually, Victim 2 claims that Drago forcibly coerced him to enter into a business relationship and since that time, the defendant has consistently abused and threatened Victim 2 and his family. The alleged abuse included Drago forcing Victim 2 to withdrawal large sums of money.
On the afternoon of May 19, 2017, the defendant went to a medical office on Wehrle Drive in Williamsville, NY, where Victim 2 is employed. After talking with an employee in the parking lot, that employee went inside and ordered all patients in the building into the reception area, and all employees into the front office area. Drago then went inside and walked out with Victim 2 with his hand on Victim 2's neck. The complaint states that the defendant told patients that Victim 2 was done seeing patients for the day. As the two walked outside, Drago told Victim 2 to get in the car.
In the evening of May 19, 2017, Victim 1 called the FBI and stated that she received a call from her husband who said he would not be coming home that night, and was being threatened by Drago. A special agent contacted Victim 2 by phone who stated, "everything is fine" and that what he and his wife previously told the FBI was "all a bunch of lies." Victim 2 terminated the call abruptly.
At approximately 9:05 p.m. that evening, law enforcement officers stopped Victim 2 and Drago’s vehicles, who at the time were traveling in separate vehicles. Victim 2 stated, "I was in fear of my life and my family's life and I did exactly what he told me to do.” The defendant was arrested the following day on May 20, 2017.
Drago made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen; the Lancaster Police Department, under the direction of Chief Herald Gill; the Amherst Police Department, under the direction of Chief John Askey; the New York State Police, under the direction of Major Steven Nigrelli; the Erie County Sheriff’s Office, under the direction of Timothy Howard; and the Erie County District Attorney’s Office, under the direction of John Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Albuquerque Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Candace Tapia, 22, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office
Candace Tapia and her codefendants Gaspar Leal, 47, Bernadette Aurora Tapia, 49, and Brandon Candelaria, 22, were charged as the result of an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Candace Tapia and her co-defendants were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County.
During today’s proceedings, Candace Tapia pled guilty to an information charging her with distribution of methamphetamine and admitted that on June 8, 2016, she distributed methamphetamine to another person. At sentencing, Candace Tapia faces a maximum sentence of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
To date, 52 of the 104 defendants have entered guilty pleas and 18 have been sentenced, including Bernadette Aurora Tapia. The remaining defendants, including Leal and Candelaria, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque office of ATF. This case is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.
Albuquerque Man Arrested for Possessing an Unregistered Destructive DeviceRead the Press Release
ALBUQUERQUE – Ethan Guillen, 18, of Albuquerque, N.M., made his initial appearance today in federal court on a criminal complaint charging him with possessing a destructive device not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Guillen remains in custody pending a preliminary hearing and detention hearing, both of which are scheduled for tomorrow.
Guillen is charged in a criminal complaint with possessing a destructive device not registered to him in the NFRTR on May 31, 2017, in Bernalillo County, N.M. According to the complaint, Guillen allegedly created a destructive device out of a pressure cooker filled with black energizable material, nuts and bolts, fuse and a plastic bag containing clear rubber material. The complaint further alleges that Guillen then placed the homemade destructive device, which was plugged into an appliance timer, under the victim’s bed,
If convicted of the charge in the criminal complaint, Guillen faces a maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Howard Thomas is prosecuting the case.
Akron man indicted on charges involving heroin, carfentanil, furanyl fentanyl and firearmsRead the Press Release
An eight-count indictment was filed charging an Akron man with possession and distribution of heroin, carfentanil, furanyl fentanyl and other drugs, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Glen Sheffield, 32, was arrested on May 3 and found to possess more than a kilogram each of methamphetamine and cocaine, as well as nearly 400 grams of heroin, 107 grams of carfentanil, 2 grams of furanyl fentanyl and 107 grams of a substance containing both carfentanil and furanyl fentanyl, according to the indictment.
Sheffield also possessed a Sturm Ruger semi-automatic 9 mm handgun, a Springfield Armory D9 semi-automatic handgun, a Sig Sauer semiautomatic handgun, and ammunition, despite prior felony convictions for possession of heroin and cocaine in the Summit County Court of Common Pleas, according to the indictment.
These firearms were used in furtherance of a drug trafficking crime, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant United States Attorney Teresa Riley following an investigation by the Akron Police Department Narcotics Unit and Ohio Adult Parole Authority.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Aggravated Felon Indicted for Illegal ReentryRead the Press Release
Orlando, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of an indictment charging Luis Bernardo Gonzalez-Martinez (29, Mexico) with the illegal reentry after deportation. Since his deportation was subsequent to his conviction for an aggravated felony, he faces a maximum penalty of 20 years in federal prison.
According to court documents, Gonzalez-Martinez is a Mexican citizen who was convicted of burglary on May 26, 2009. He was removed from the United States in June 2012 and again in June 2013. On April 1, 2017, immigration officers encountered Gonzalez-Martinez, a member of the Sureños (Sur 13) street gang, back in the United States illegally.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and U.S. Customs and Border Protection’s Border Patrol. It will be prosecuted by Special Assistant United States Attorney Christina R. Downes, on assignment from the Office of Principal Legal Advisor, ICE.
Accountant Sentenced for Embezzling More Than $1 MillionRead the Press Release
DAYTON – Deborah Yosick, 61, currently of Davenport, Fla., was sentenced in U.S. District Court to 51 months in prison for embezzling more than $1 million. She pleaded guilty in November to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the sentence handed down yesterday evening by Senior U.S. District Judge Walter H. Rice.
According to court documents, Yosick embezzled money from her employer, Donald C. Wright Investments, LLC and its sister company Don Wright Realty, LLC. Don Wright’s businesses are family-owned and are based in Centerville, Ohio. Don Wright provided various commercial, industrial and residential services in the Dayton area.
Between approximately 1985 and October 2015, Yosick was Don Wright's accountant and was principally responsible for handling accounts payables and accounts receivables. Yosick was personally responsible for depositing rental receipts (whether they were cash or check) into the appropriate Don Wright bank account.
Yosick embezzled money from Don Wright by using rental payments to pay her personal American Express bill. She did so by initiating ACH transfers from a company bank account and used a portion of the cash she embezzled to purchase money orders from supermarkets, Wal-Mart and post offices. She then used the money orders to pay her personal American Express credit card bills. She also paid her personal credit card bill through approximately 70 electronic transfers from a company bank account to American Express.
In total, between 2010 and approximately October 2015, Yosick embezzled approximately $1.1 million from her employer.
Additionally, Yosick attempted to evade paying $255,571 in federal income taxes to the IRS for the 2010, 2011, 2012, 2013 and 2014 income tax years.
As part of her plea agreement, Yosick agreed to pay $1.1 million in restitution to Don Wright and the more than $255,000 to the IRS.
“In the midst of the recession, Deborah Yosick funded a lavish lifestyle of exotic travel by embezzling more than a million dollars from the family-owned real estate company that had trusted her with its accounting for thirty years,” U.S. Attorney Glassman said. “Today’s sentence appropriately punishes her egregious crime of greed.”
U.S. Attorney Glassman commended the law enforcement investigation by the IRS and FBI, as well as Assistant United States Attorney Amy M. Smith, who is prosecuting the case.
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"Incognito Bandit" Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A man dubbed the “Incognito Bandit” has been indicted by a federal grand jury in Boston for armed bank robbery.
Albert Taderera, 36, of Brighton, was indicted for the Oct. 7, 2016 robbery of a branch of the TD Bank in Wayland, Mass. In March 2017, Taderera was arrested at Dulles International Airport in Virginia as he attempted to board an international flight, and charged in U.S. District Court in Boston by criminal complaint.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; Wayland Police Chief Robert Irving; and Concord Police Chief Joseph F. O’Connor, made the announcement today. The Wayland Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
31 May 2017
Woodbury Woman Pleads Guilty in Labor Trafficking CaseRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the guilty plea of LILI HUANG, 36, for withholding the victim’s documents in furtherance of forced labor. HUANG, who was indicted on October 4, 2016, entered her guilty plea today before U.S. District Senior Judge David S. Doty in Minneapolis, Minn.
“It is critical for law enforcement to be able to recognize the indicators of human trafficking because these types of crimes can exist right in our own communities,” said Acting U.S. Attorney Gregory Brooker. “The collaborative work of the ACTeam and our local law enforcement partners brought forth this successful prosecution and provided the victim with a sense of safety and closure.”
“Forced labor is nothing short of modern-day slavery,” said Special Agent in Charge Alex Khu of HSI St. Paul. “On behalf of HSI I would like to gratefully acknowledge the Woodbury Police Department’s cooperation in this matter and their support in having their officers specifically trained to identify victims of human trafficking.”
According to the defendant’s guilty plea and documents filed in both state and federal court, on February 25, 2016, HUANG brought the victim (identified as F.L.) from Shanghai, China to her home in Woodbury, Minn. to work as a nanny and housekeeper. Although F.L. had previously worked for the defendant in China where she cooked, cleaned and cared for the defendant’s children, the scope of work and the defendant’s treatment of F.L. was significantly different once she arrived in Minnesota. HUANG forced F.L. to work up to 18 hours a day cooking, cleaning, and providing childcare. HUANG was very demanding about household tasks and became emotionally and physically abusive toward F.L. if she did not do exactly what was asked.
According to the defendant’s guilty plea and documents filed in both state and federal court, on April 23, 2016, due to the repeated physical abuse, F.L. asked HUANG to buy her an airplane ticket so she could return home to China. Instead of buying her a ticket, HUANG took F.L.’s passport and told F.L. that she was not leaving. HUANG continued to physically abuse F.L. by kicking, punching, grabbing F.L. by her hair, and subjecting her to other abuse. On July 13, 2016, F.L. fled the house after HUANG approached her with a large kitchen knife. Just after midnight on July 14, 2016, F.L. was found wandering the streets several miles from the defendant’s home walking in the direction of the airport. F.L., who was visibly shaken and crying, was taken to United Hospital for medical treatment. The victim sustained several bruises and injuries to her face, including two black eyes, significant weight loss, and fractures to her sternum and ribs.
HUANG has also been charged in Washington County with five felony counts and will be pleading guilty to third-degree assault.
The District of Minnesota is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam), through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
This case is the result of an investigation conducted by Homeland Security Investigations, Woodbury Police Department, U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Office of the Inspector General, and the Washington County Attorney’s Office.
This case is being prosecuted by Assistant United States Attorneys Laura M. Provinzino and Manda M. Sertich.
Defendant Information:
LILI HUANG, 36
Woodbury, Minn.
Convicted:
- Unlawful conduct with respect to documents in furtherance of forced labor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Woodbridge Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pleaded guilty today to collecting hundreds of images of child pornography.
According to court documents, Axel Ignacio Portillo, 35, admitted that between February and October 2014, he downloaded hundreds of images of child pornography from the Internet using peer-to-peer software. In October 2014, law enforcement officers executed a federal search warrant on Portillo’s residence and seized a desktop computer and external hard drive containing at least 100 videos and 600 other digital images of child pornography.
Portillo waived indictment and pleaded guilty to a criminal information charging him with receipt of child pornography. He faces a mandatory minimum of five years and a maximum penalty of 20 years in prison when sentenced on September 1. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the plea. Assistant U.S. Attorneys Alexander P. Berrang and Maya D. Song are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-97.
Vista Man Pleads Guilty to Coercing Young Children into Sending Him Naked PicturesRead the Press Release
Assistant U. S. Attorneys Alexandra Foster (619) 546-6735 and Sabrina Feve (619) 546-6786
NEWS RELEASE SUMMARY – May 25, 2017
SAN DIEGO – Joseph Daniel Saucedo of Vista pleaded guilty in federal court today to charges, admitting that he attempted to manipulate two children, ages 11 and 16, into sending sexually explicit photographs of themselves, and then threatened to expose them if they refused to continue.
According to the facts in the plea agreement, Saucedo posed as a teenage girl, “Amy Jennings,” and began communicating on-line with an 11-year-old Canadian boy. At first the two had normal conversations about everyday life. But then Saucedo, pretending to be “Amy,” sent naked pictures of young girls and asked the boy to communicate with her friend, Saucedo, in return. When the boy refused, “Amy” posted a photograph of his house, told the boy she knew where he lived, and threatened to shame him into communicating with Saucedo.
The boy ultimately relented and texted Saucedo, who then communicated with the boy using FaceTime and displayed his naked front torso. The boy hung up on Saucedo but the calls and the threats continued until, finally, on January 25, 2016, the boy received a message from “Amy,” which included a video of a young boy masturbating. “Amy” threatened to leak the video and claim it was the Canadian boy if the boy did not send naked pictures of himself to Saucedo.
Additional investigation revealed that Saucedo had been in communication with other young children, successfully soliciting sexually graphic images from them. For example, in August 2015, Saucedo struck up a conversation with a 16-year-old girl in Florida through Instagram. This time, Saucedo pretended to be a modeling agent looking for “bikini and nude models,” adding, “obviously the pay is great.” When the Florida girl told Saucedo that she was only 16 and would have to check with her parents, he volunteered that they could just “make a portfolio” at no cost to her, and “then we can talk to your parents.” She demurred again, telling Saucedo that she had “never been comfortable in my skin.” He promised to “help with that hun if you want we can FaceTime so nothing is saved.”
She continued to refuse his overtures until Saucedo, under the guise of “Amy Jennings,” threatened to blackmail the girl. The girl turned to Saucedo for help with “Amy.” Although he initially claimed no knowledge of Amy Jennings and insisted his modeling business was legitimate, he quickly agreed to help the girl, for a price: Nude pictures of herself. He even asked her to “[w]rite my name on a paper or hand so I know it’s a new one.” She acquiesced and sent him pictures of her breasts with “Joe” written across her chest.
Saucedo demanded that the girl continue sending him naked photographs, or “Amy” would post compromising pictures of the girl. The girl volunteered that she was “looking into Kik’s legal system” to handle the threatening “Amy” posts. Within seconds, Saucedo responded, “Na I’ll pay her I don’t want you to get in trouble.” Saucedo no doubt feared that alerting Kik to “Amy Jennings” could have compromised his illegal activities. Saucedo told the girl that he had paid “Amy Jennings” $2,000. As a thank you, the girl agreed to a sexually explicit FaceTime chat with Saucedo.
Saucedo continued to hound the girl for almost a year, from August 2015 to June 2016, requesting more naked photographs. He even sent her a photo of stacks of money to elicit more naked photographs. She sent him one more photograph in October 2015, but then stopped responding.
Sentencing is scheduled for August 25, 2017 at 9:00 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case Number: 17-CR-00095-JLS
Joseph Daniel Saucedo Age: 26 Vista, CA
SUMMARY OF CHARGES
Counts One and Two
Attempted Receipt and Receipt of Images of Minors Engaged in Sexually Explicit Conduct, in violation of Title 18, United States Code, Section 2252(a)(2)
Minimum Penalty: 15 years
Maximum Penalty: 40 years
AGENCY
Homeland Security Investigations
United States Secret Service
Vernon Man Sentenced to 144 Months in Federal Prison for Possession of MethamphetamineRead the Press Release
WICHITA FALLS, Texas — Chad Allen Lawson, 34, of Vernon, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 144 months in federal prison for possessing with the intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Lawson pleaded guilty to one count of possession with intent to distribute five grams or more of methamphetamine. Lawson has been in custody since his arrest in December 2016.
According to documents filed in the case, on August 21, 2016, Lawson fled from a Saint Jo Police Department officer who was trying to initiate a traffic stop on the vehicle Lawson was driving. After a lengthy chase, a Texas Department of Public Safety trooper located Lawson’s car in the Bellevue, Texas, area. The trooper then located Lawson hiding behind the Triangle Brick Factory in Henrietta, Texas. When apprehended, Lawson was holding a container that contained a small plastic bag. Upon searching the container, the trooper located 186.87 grams of methamphetamine.
The Texas Department of Public Safety and the Saint Jo Police Department investigated. Assistant U.S. Attorney Mary Walters prosecuted the case.
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Van Buren Man Sentenced to Life in Federal Prison for Interstate Transportation of Minors for Sexual ActivityRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Clarence C. Garretson, age 66, of Van Buren, Arkansas, was sentenced today to a term of LIFE in federal prison for his conviction on one count of transporting a minor in interstate commerce with intent to engage in criminal sexual activity. He was also sentenced to a term of 15 years imprisonment each on four other counts of transporting minors in interstate commerce with intent to engage in criminal sexual activity, with those terms to run concurrently and concurrent with the term of LIFE imprisonment on Count One. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, the Federal Bureau of Investigation (FBI) initiated an investigation after a minor female (Minor #1) disclosed in May, 2016 that she had been raped by Garretson when he took her on a multi-state trip two years earlier. Garretson was an over-the-road truck driver for C & T Trucking company in Van Buren and he had requested and received a “rider waiver” from the trucking company so that the minor could accompany him on the trip. The minor was ten-years-old in 2014 and Garretson was 63 years old. Garretson stipulated and agreed in the plea agreement that he transported the minor in interstate commerce with the intent to engage in sexual activity with her and the sexual activity he engaged in with her was Rape, a Class Y felony.
During the course of the investigation, it was learned that in 1998 Garretson and his wife were approved by Arkansas Department of Human Services (DHS) to operate a foster home and later to become an adoptive home. The FBI Special Agent learned that DHS had received a report in 2002 from a foster child then living in the home that she had been sexually assaulted by Garretson. Based on that information, the agent began locating individuals who had been in foster care at the Garretson residence. Minor #2 was interviewed in June, 2016 and was a foster child in the home from 2000 to 2004. She disclosed that Garretson had taken her on over-the-road truck trips when she was his foster child. Garretson stipulated and agreed that he transported the minor in interstate commerce with the intent to engage in sexual activity with her, and that the sexual activity he engaged in with her was Violation of a Minor in the First Degree, a Class C felony. At the time of the offense, she was over 13 years of age, and less than 18 and the conduct engaged in was sexual intercourse. Garretson stipulated and agreed that Minor #2 was a foster child in his care, custody, and control when he transported her in interstate commerce with the intent to engage in sexual activity with her.
In 1999, DHS placed Minor #3 and his two older sisters in the Garretson home, and Minor #3 was legally adopted by them in 2001. Minor #3 was interviewed by the FBI Special Agent in July, 2016 and disclosed that Garretson had taken him on long distance truck trips starting in the summer of 2001 when he was 11 years old and that he had sexually assaulted him on multiple trips during summer vacation from school in 2002 and 2003. Garretson stipulated and agreed that he transported the minor in interstate commerce with the intent to engage in sexual activity with him, that the sexual activity he engaged in with him was Rape, a Class Y felony. Garretson stipulated and agreed that Minor #3 was in his care, custody and control when he transported him in interstate commerce with intent to engage in sexual activity with him.
In 1999, DHS placed Minor #5 and her two siblings in the Garretson home and she remained there until 2004. She was interviewed by the FBI Special Agent in July, 2016 and disclosed that she was sexually assaulted by Garretson on an over-the-road trip to California during the summer of 2000 when she was 13 years old. Garretson stipulated and agreed that he transported Minor #5 in interstate commerce with the intent to engage in sexual activity with her, that the sexual activity he engaged in with her was Rape, a Class Y felony, and that Minor #5 was in his care, custody, and control when he transported her in interstate commerce with intent to engage in sexual activity with her.
Minor #8 was born in 1993 and was interviewed by the FBI Special Agent in September, 2016. She stated that Garretson transported her and her siblings between Arkansas and California as a favor to her family since their parents lived in different states. She disclosed that in 2002 when she was 9 years old, Garretson had her sleep nude or partially nude in the bed with him inside the truck and engage in sexual activity with her. Garretson stipulated and agreed that he transported Minor #8 in interstate commerce with the intent to engage in sexual activity with her, and that the sexual activity he engaged in with her was Rape, a Class Y felony. He stipulated and agreed that Minor #8 was in his care, custody and control when he transported her in interstate commerce with the intent to engage in sexual activity with her.
Garretson was charged in a superseding indictment by a federal grand jury on October 4, 2016 and pleaded guilty on August 9, 2016.
This case was investigated by the Federal Bureau of Investigations (FBI) and assisted by the Van Buren Police Department, Fort Smith Police Department, Crawford County Sheriff’s Office, Social Security Administration Office of Inspector General as well as Law Enforcement Officers in the states of California, Colorado and Oregon. Assistant United States Attorneys Kyra Jenner and Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
United States Attorney’s Office Announces Resolution of the Federal Forfeiture Action Against Rutland Boarding HouseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that the United States and the owner of 24 and 24.5 Cottage Street in Rutland have resolved the forfeiture action brought against this property. The property, commonly referred to as a boarding or rooming house, consists primarily of single room occupancy rental units.
As part of this resolution, Francesca Petruccelli, the out-of-state owner of the property, has sold this real estate to a Rutland area company, who has been notified of its obligation to take reasonable steps to monitor potential drug trafficking on the property. This company, 24 Cottage LLC, is located at Tenney Brook Court in Rutland. The primary members of the LLC are John Ruggiero and Sylvie LeBel. Meanwhile, the United States has filed a stipulation to dismiss its forfeiture complaint, without prejudice to re-filing the complaint in the future, if appropriate under the law.
In addition, as part of the resolution, 24 Cottage LLC signed an acknowledgment letter with the United States Attorney’s Office recognizing the legal duties federal drug forfeiture laws impose on property owners. These legal duties include taking “reasonable” steps to “terminate” the drug trafficking on a particular property. Such “reasonable steps” include: (1) giving timely notice to law enforcement of suspected drug trafficking or drug manufacturing violations; (2) making good faith attempts to evict those suspected of engaging in drug trafficking offenses; and (3) taking “reasonable actions in consultation with law enforcement to discourage or to prevent the illegal use of the property.”
The acknowledgment letter also contains the following guidelines: “Landlord assistance can include such actions as reporting suspicious activity to law enforcement, maintaining sufficient outdoor lighting around a property, restoring fencing, maintaining landscaping, towing abandoned vehicles, and installing video recording equipment in common areas and outdoor spaces. Even minor assistance, such as relaying tenant complaints of suspicious activity and high traffic, can be of assistance to law enforcement. Tenant screening and management is also important. All rental agreements should include an option of evicting any tenant who is dealing or manufacturing controlled substances in a rental unit.”
The United States brought the forfeiture action against the Cottage Street properties because of the repeated drug trafficking occurring there in 2013-14. The United States also prosecuted the son of the prior owners, Michael Petruccelli, who lived on the property and helped manage it, for drug distribution offenses. According to the government’s allegations, at times, Michael Petruccelli would accept crack cocaine as rent from drug dealing tenants. In November 2015, United States District Judge Geoffrey Crawford sentenced Michael Petruccelli to 48 months imprisonment for distribution of crack cocaine on the property. The forfeiture complaint alleged that multiple other drug dealers sold narcotics at the property in 2013 and 2014 and that the owners of the property did not take reasonable steps to stop the drug trafficking on the property, including by their son.
Acting U.S. Attorney Eugenia Cowles stated, “The Cottage Street forfeiture action, along with the previously settled Park Avenue federal forfeiture action, also in Rutland, demonstrate the important role landlords play in combatting drug dealing in Vermont.” Acting USA Cowles noted such cases should encourage all landlords to take reasonable, affirmative steps to deter drug trafficking on their rental properties and to notify law enforcement immediately if drug dealing occurs.
The underlying drug trafficking investigations related to this forfeiture matter were conducted by the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rutland Police Department. The United States Marshals Service provided significant assistance during the forfeiture action.
The United States is represented in this matter by Assistant U.S. Attorneys James Gelber and Joseph Perella. The former property owner, Francesca Petruccelli (RFTJ Enterprise, Ltd.), is represented by Paul Kulig, Esq. of Rutland.
Two Former Vernon County Ambulance District Employees Indicted for $260,000 EmbezzlementRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that the former director and the former bookkeeper of the Vernon County Ambulance District have been indicted by a federal grand jury for embezzling more than $260,000 from the district.
Tina L. Werner, 51, and James D. McKenzie, 51, both formerly of Nevada, Mo., were charged in a nine-count indictment returned by a federal grand jury in Springfield, Mo., on May 11, 2017.
McKenzie and Werner were employed with the ambulance district until October 2015, McKenzie as the director and Werner as a bookkeeper. McKenzie’s duties as director included managing the daily operations of the district, including the personnel and financial management of the district. McKenzie began his employment with the ambulance district in 1987. Werner’s duties as bookkeeper included managing payroll, conducting financial transactions and managing the accounts receivable. Werner began her employment in 2000.
The federal indictment alleges that Werner, utilizing her position as bookkeeper, began electronically transferring money from the ambulance district’s bank accounts into personal bank accounts held by herself and McKenzie in January 2013. Additionally, Werner allegedly initiated electronic bill payments from ambulance district bank accounts to pay the personal credit cards held by herself and McKenzie. Werner and McKenzie did not have authorization to conduct such payments and their actions caused the ambulance district to suffer financial loss.
Additionally, the indictment says, from January 2013 until October 2015, Werner and McKenzie issued payments from an ambulance district credit card account for the purpose of paying McKenzie’s personal utility bills and those of a McKenzie family member, resulting in the ambulance district suffering additional financial loss. Werner and McKenzie did not have authorization to conduct such payments.
Werner also allegedly falsified electronic payroll records and recorded additional overtime hours worked for herself and McKenzie. As a result, the ambulance district issued electronic payments to Werner and McKenzie for overtime hours that were not actually worked, resulting in the district falsely overpaying Werner and McKenzie, thereby suffering additional financial loss.
McKenzie and Werner allegedly embezzled a total of $260,265 from the ambulance district from January 2013 to October 2015.
According to the indictment, Werner attempted to conceal the embezzlement by entering a false deposit of $130,000 in the QuickBooks application, and by obtaining a $20,000 line of credit from OnDeck without the knowledge or authorization of the ambulance district’s board of directors. McKenzie and Werner allegedly destroyed financial and business documents belonging to the ambulance district while they were in the district’s office on Oct. 23, 2015, in an effort to conceal their embezzlement.
In addition to the conspiracy, McKenzie and Werner are charged together in three counts of wire fraud related to thefts from the district’s Christmas account (into which employees deposited money throughout the year, then withdrew during the Christmas shopping season) to pay McKenzie’s and Werner’s credit cards.
McKenzie and Werner are also charged together in two counts of wire fraud related to thefts from the district’s toy drive bank account, which was transferred to the bank account of McReed Construction, a business owned by McKenzie.
McKenzie and Werner are also charged together in one count of wire fraud related to theft from an ambulance district credit card to pay the personal utility bills of McKenzie and a family member.
McKenzie and Werner are also charged together in one count of wire fraud related to McKenzie receiving compensation to which he was not entitled due to being paid for overtime that he did not actually work. Werner is also charged with one count of wire fraud related to her receiving compensation to which she was not entitled due to being paid for overtime that she did not actually work.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Casey Clark. It was investigated by the FBI and the Missouri State Highway Patrol.
Two Chicago People Sentenced to Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO - Two defendants of thirteen charged were sentenced yesterday in the smash and grab theft of more than $100,000 in Chanel purses from the Saks Fifth Avenue department store at Plaza Frontenac on November 26, 2016. According to the plea agreements of various defendants, a large group of individuals entered the Saks Fifth Avenue store shortly after the store opened on Saturday November 26th, proceeded to the Chanel boutique within the store and ripped numerous Chanel handbags from the shelves. In less than five minutes, the group departed from the store and entered two waiting vehicles. After an extended chase, one of the vehicles and approximately half of the stolen purses were stopped near Litchfield, Illinois.
Darius Bowdry, 22. And Keyshyala Thomas, 22, both of Chicago, Illinois were sentenced for interstate transportation of stolen property today. Both defendants appeared before U.S. District Judge Audrey G. Fleissig. Bowdry received a sentence of 18 months in prison, followed by 3 years supervised release. Thomas received a sentence of 30 months in prison, followed by 3 years supervised release. Both defendants were ordered to pay Saks Fifth Avenue $159,185 in restitution.
The case was investigated by the FBI and the Frontenac Police Department with assistance from the Illinois State police, the Hamel, Illinois Police Department, the Montgomery County, Illinois Office of the Prosecuting Attorney and the St. Louis County Prosecuting Attorney’s Office.
Twelve people sentenced for roles in methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Twelve individuals were sentenced today to a combined 953 months incarceration for their participation in a methamphetamine distribution operation that spanned two states and three North West Virginia counties, Acting United States Attorney Betsy Steinfeld Jividen announced.
The indictment, unsealed in October 2016, alleged that 20 individuals from Virginia and West Virginia conspired with one another to operate a methamphetamine distribution ring in the region. The investigation led to the seizure of hundreds of firearms and significant quantities of methamphetamine. Twelve of those individuals were sentenced today.
- Sean Michael Moser, 27, of Elkins, West Virginia, was sentenced today to 210 months incarceration. Moser pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in February 2017.
- Richard Wayne Scott, 41, of Waynesboro, Virginia, was sentenced today to 60 months incarceration. Scott pled guilty to one count of “Interstate Travel in Furtherance of a Drug Crime” in February 2017.
- Joseph Richard Muster, 28, of Elkins, West Virginia, was sentenced to 100 months incarceration. He pled guilty to one count of “Distribution of Methamphetamine” in February 2017.
- Christina Crites, 46, of Elkins, West Virginia, was sentenced to 112 months incarceration. She pled guilty to one count of “Distribution of Methamphetamine in Proximity of a Protected Location” in February 2017.
- Gerald Allen Freeman, 42, of Moatsville, West Virginia, was sentenced to 59 months incarceration. Freeman pled guilty to one count of “Distribution of Methamphetamine” in February 2017.
- Jeffrey Everson, 28, of Philippi, West Virginia, was sentenced to 40 months incarceration. He pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine” in January 2017.
- Brian Scott Mayle, 38, of Coalton, West Virginia, was sentenced to six months incarceration. He pled guilty to one count of “Receipt and Transfer of Explosive Material without a License” in January 2017.
- Tre Michael Plaugher, 22, of Elkins, West Virginia, was sentenced to 60 months incarceration. Plaugher pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime” in February 2017.
- Derek Scott Norris, 36, of Philippi, West Virginia, was sentenced to 78 months incarceration. Norris pled guilty to one count of “Distribution of Methamphetamine” in January 2017.
- Calvin Norris Herron, Jr., 44, of Belington, West Virginia, was sentenced to 108 months incarceration. He pled guilty to one count of “Distribution of Methamphetamine” in January 2017.
- Ronald G. Swiger, 36, of Coalton, West Virginia, was sentenced to 24 months incarceration. He pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in January 2017.
- Jason Randall Howard, 38, of Elkins, West Virginia, was sentenced to 96 months incarceration. Howard pled guilty to one count of “Unlawful Possession of a Firearm” in March 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Three Men Charged with Stealing Twenty Firearms in Smash-and-Grab Burglary of Livingston County Gun StoreRead the Press Release
CHICAGO — Three men crashed a stolen Jeep Wrangler through the front of a Livingston County gun store last summer and stole 20 firearms, according to a federal indictment announced today.
ROMEO BLACKMAN, RASHAD ANCHANDO and KEITH GULLENS are charged with conspiring to steal firearms from South Post Guns in Streator. The trio stole a black Jeep Wrangler in Spring Valley on June 21, 2016, and used it the following day to smash through the front of the gun shop, according to the indictment. Once inside the store, the defendants smashed the glass casing where the firearms were displayed and took 18 handguns, one rifle and one shotgun, the indictment states.
The indictment was returned on May 25, 2017, in U.S. District Court in Chicago. In addition to the conspiracy count, the trio is also charged with possession of stolen firearms and burglary of a federally licensed firearms business. Blackman and Gullens each face an additional count of illegal possession of firearms by a convicted felon.
Anchando, 22, of Chicago, and Gullens, 27, of Streator, are currently in the custody of the Illinois Department of Corrections, while Blackman, 21, of Chicago, is in the custody of the LaSalle County Sherriff’s Office. Arraignments for Anchando and Gullens are scheduled for June 13, 2017, at 10:00 a.m., before U.S. Magistrate Judge M. David Weisman in Chicago. Arraignment for Blackman is set before Judge Weisman on June 15, 2017, at 10:00 a.m.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Livingston County Sheriff’s Office provided substantial assistance.
According to the indictment, the defendants and others agreed to meet at a house in Streator after the burglary. The defendants and others recorded videos of themselves holding the stolen firearms and posted them online, the indictment states. The defendants and others cut off the price tags from the stolen guns and took them to Chicago, where they conspired to either sell them, use them, or threaten to use them against others, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The conspiracy count is punishable by up to five years in prison, while the other counts carry a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Albert Berry and Ankur Srivastava.
Thirty-five people indicted on Federal Conspiracy Charges for Trafficking in Contraband Cigarettes, Distributing Synthetic Drugs and Money LaunderingRead the Press Release
St. Louis, MO – Thirty-five (35) people were indicted in St. Louis on charges of conspiring to traffic in contraband cigarettes, conspiracy to distribute synthetic drugs and money laundering.
Indicted were the following individuals:
Mohammed Almuttan, aka Abu Ali, 35, St. Louis, MO
Rami Almuttan, aka Abu Louay, 33, St. Louis, MO
Hisham Mutan, aka Abu Mohamed, 41, St. Louis, MO
Saddam Mutan, aka Abu Ali, 24, St. Louis, MO
Mazin Abdelsalam, aka Abu Mohammad, 38, St. Louis, MO
Najeh Muhana, aka Abu Yazan, 41, Fairview, NJ
Fares Muhana, aka Abu Yamama, 40, Cliffside Park, NJ
Ayoub Qaiymah, aka Abu Faysal, 23, Richmond, VA
Naser Abid, 23, Chicago, IL
Yadgar Barzanji, aka Abu Siver, 47, St. Louis, MO
Wafaa Alwan, 50, St. Louis, MO
Ahmed Abuali, aka Bazilla, 31, North Bergen, NJ
Mohammed Kayed, aka Mohammed Fayez, 21, Clifton, NJ
Momen Abuali, 20, Little Ferry, NJ
Firat Sevindik, 42, Cliffside Park, NJ
Mohammed Mustafa, 30, North Bergen, NJ
Mohammad Karashqah, Abu Yazid, 47, North Bergen, NJ
Fayez Sheikha, 46, Mishawaka, IN
Jihad Shihadeh, Abu Malik, 58, Chicago Ridge, IL
Ismael Abadi, 57, Carol Stream, IL
Abed Hamed, Abed Fawzan, 39, Greenville, NC
Maher Hamed, Abu Alazara, 33, Swansea, IL
Abdel Adi, 25, Oak Lawn, IL
Muhanad Khatib, Abu Alamin, 36, Chicago, IL
Eyad Awad, 38, Chicago, IL
Dale Garbin, 60, Kankakee, IL
Hayder Al Fatli, 40, St. Louis, MO
Kutlay Guvener, 35, Chicago, IL
Saad Al Mallak, 30, Dittmer, MO
Hassan Abdelatif, 29, Collinsville, IL
Mahajir Naz, 32, St. Louis, MO
Talal Abuajaj, 23, St. Louis, MO
Basem Hamdan, aka Abu Ramiz, 57, St. Louis, MO
Zainal Saleh, 29, St. Louis, MO and
Ibrahim Awad, 39, St. Louis, MO
Defendants were indicted by a federal grand jury on May 24, 2017. Defendants are charged with various counts of conspiring to traffic in contraband cigarettes, conspiring to distribute controlled substances/analogues and money laundering.
According to the indictment, defendants conspired for more than two years to buy contraband cigarettes in St. Louis, Missouri, a low tax market, and transport and distribute them in Chicago, Illinois and New Jersey, high tax markets. Defendants used several convenience stores which they owned or operated to create the appearance of legitimate cigarette purchases. Illegal profits from the contraband cigarette sales were laundered through accounts associated with the convenience stores.
In addition, synthetic drugs, commonly referred to as K-2, was sold on a daily basis from a handful of the convenience stores. Defendants not only purchased finished product from a national distributor but manufactured synthetic drugs themselves, importing precursor chemicals from China.
“The collaboration with our federal and local law enforcement partners is the key to breaking criminal enterprises in this area,” said Special Agent in Charge James M. Gibbons of HSI Chicago. “HSI will continue to work with our law enforcement partners to seek out and dismantle criminal organizations that deal in contraband products and sell synthetic drugs in our communities.”
James P. Shroba, Special Agent in Charge of the DEA St. Louis Division stated, "These indictments and arrests reflect the commitment of the DEA and our federal, state and local law enforcement partners to dismantle these types of unprincipled business operations that are profiting from human frailty. Synthetic drugs that are sold as purportedly legal substitutes for cannabis and stimulants, such as cocaine and methamphetamine, are neither legal nor safe. These substances were never intended for human consumption and only serve to satisfy the avarice of the seller.”
If convicted, defendants are facing maximum penalties of 5 years to 20 years in prison and/or fines up to $1,000,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Federal Bureau of Investigation, Illinois State Police, Illinois Department of Revenue and Alcohol and Tobacco Tax and Trade Bureau.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Springfield, Ash Grove Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man and an Ash Grove, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute large quantities of methamphetamine.
Anthony J. Van Pelt, 38, of Springfield, and Brandon A. House, 33, of Ash Grove, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Van Pelt was sentenced to 21 years in federal prison without parole. House was sentenced to 20 years in federal prison without parole.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated one of the largest methamphetamine distribution rings in southwest Missouri. The investigation resulted in the indictment of 28 co-defendants.
In 2013 through 2014, Daniel and Kenna Harmon, 38, of Republic, Mo., distributed in excess of 45 kilograms of methamphetamine in southwest Missouri. Van Pelt was one of the sources that provided methamphetamine to the Harmon drug-trafficking organization during this time. Kenna Harmon also obtained methamphetamine from other sources and provided distributive amounts to Van Pelt and to House, who was a mid-level distributor.
Van Pelt was arrested on Nov. 27, 2014, when he was found hiding under the bed in his residence during the execution of a search warrant. Van Pelt had been identified earlier in the day as the driver of a Ford Mustang parked in the driveway of Kenna Harmon’s residence. Police officers followed Van Pelt when he drove away from Kenna Harmon’s residence and conducted a traffic stop, but Van Pelt fled from the vehicle. Officers found $23,663 inside the vehicle.
When law enforcement officers executed the search warrant at Van Pelt’s residence later the same day, they found four rifles and numerous rounds of ammunition in the same bedroom where Van Pelt was hiding. Officers also found approximately 405 grams of methamphetamine, marijuana, and $3,990 in a hidden safe by the bedroom. An additional 36 grams of methamphetamine was seized out of the bedroom. Agents found a duffel bag in the garage of the residence that contained approximately 20 pounds of marijuana and 1,066 grams of methamphetamine (a total of approximately 1.5 kilograms of methamphetamine).
Springfield police officers executed a search warrant at a residence on Dec. 12, 2013. House was present with two other persons, all of whom denied ownership of a baggie of methamphetamine and $4,000 seized by officers. House was also a passenger in a vehicle stopped by Springfield police officers on Jan. 27, 2014. Officers found $13,850 inside the vehicle.
A source of information told DEA agents that he purchased methamphetamine from House. According to this source, House was buying at least two pounds of methamphetamine every other day from Kenna Harmon.
On July 8, 2014, members of the COMET Drug Task Force conducted a check of a suspicious person inside a vehicle parked in a residential driveway in Nixa, Mo. House, who was clearly under the influence of a controlled substance, was passed out inside the vehicle. A Christian County deputy found 33.66 grams of methamphetamine, .77 grams of cocaine, $840, pills, blotted paper that appeared to be LSD, and glass smoking pipes inside the vehicle.
Kenna Harmon was arrested in November 2014. Agents searched various residences and vehicles belonging to Kenna Harmon and her co-conspirators and seized approximately five kilograms of methamphetamine and approximately $128,674. Kenna Harmon has pleaded guilty to being a leader in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm.
Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
South Dartmouth Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man was sentenced today in federal court in Boston for receiving and possessing child pornography.
Jack L. Bean Jr., 29, was sentenced by U.S. District Court Judge Dennis Saylor IV to 63 months in prison and five years of supervised release. In February 2017, Bean pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
In September 2015, a law enforcement investigation identified an internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was identified as a user on the bulletin board. Bean admitted that he downloaded and saved child pornography from the internet, and that he had a sexual preference for girls approximately 14 years old. Agents later identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop, the majority of which involved children between the ages of one and eight years old.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Dartmouth Police Chief Robert W. Szala, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit prosecuted the case.
South Bend Man Sentenced to 41 Months ImprisonmentRead the Press Release
SOUTH BEND - Acting United States Attorney Clifford D. Johnson announced that, on May 30, 2017, Gregory Broadnax, 35, of South Bend, Indiana was sentenced before District Court Judge Jon E. DeGuilio for being a felon in possession of a firearm.
Broadnax was sentenced to 41 months imprisonment and 2 years of supervised release.
According to documents in this case, on August 27, 2016, the South Bend Police Department responded to a complaint of an individual sleeping in a vehicle. When approaching the vehicle, the officers saw a firearm next to the occupant of the vehicle. The occupant was identified as Gregory Broadnax who was on supervised release for a prior felony drug conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. The case was handled by Assistant U.S. Attorney Molly E. Donnelly.
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Skilled Nursing Facility to Pay $888,000 to Resolve Alleged False Claims Related to Materially Substandard CareRead the Press Release
NEWARK, N.J. – A skilled nursing facility in Sussex County, New Jersey, has agreed to pay to the United States and the State of New York $888,000 to resolve allegations that it provided materially substandard or worthless nursing services to some patients, Acting U.S. Attorney William E. Fitzpatrick announced today.
Andover Subacute and Rehab Center Services Two Inc. (Andover) is a skilled nursing facility located in Andover, New Jersey. The settlement announced today follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division, with assistance from the Office of the Attorney General of the State of New York.
The United States and The State of New York contend that from July 1, 2010, to Dec. 31, 2012, Andover billed New York Medicaid for materially substandard or worthless nursing services provided to certain patients that failed to meet federal standards of care and federal statutory and regulatory requirements.
To resolve the federal and state civil claims, Andover has agreed to pay $395,508 to the United States and $492,492 to the State of New York. Andover will enter into a Corporate Integrity Agreement with the Office of Inspector General of the DHHS to enhance quality assurance, accountability and other aspects of its compliance operations.
Acting U.S. Attorney Fitzpatrick credited special agents from the DHHS, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Brett Elliott of the Department of Justice’s Civil Division. The government was assisted by Special Assistant Attorney General Sally G. Blinken of the Office of the Attorney General of the State of New York. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the DHHS also participated in the investigation and settlement.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel: Craig Goodstadt Esq., Andover, New Jersey
Seven Sentenced to Prison in Identity Theft and Credit Fraud Scam at Sam’s Club and Walmart StoresRead the Press Release
Raleigh - United States Attorney John Stuart Bruce announced that today in federal court United States District Judge Terrence W. Boyle sentenced seven defendants to federal prison for their participation in an identity theft and credit card scheme carried out at various Walmart and Sam’s Club stores. The Court also directed that each of the defendants serve terms of supervised release, and the forfeiture of the proceeds of their crimes.
In November of 2015, a grand jury issued a true bill of indictment charging ten defendants with engaging in a complicated scheme involving the use of stolen credit information. The indictment alleged that the defendants acquired stolen credit information from overseas hackers, and then encoded the stolen credit information onto plastic gift cards. Members of the conspiracy then took the counterfeit gift cards to Walmart locations in various states and used them to buy genuine Walmart gift cards. After acquiring genuine gift cards, the conspirators took them to Sam’s Club stores (who accept Walmart gift cards as tender) where they used them to purchase more than $1 Million in cigarettes. The conspirators then sold off the cigarettes for cash to various black market vendors.
The following previously pleaded guilty to Conspiracy to Commit Money Laundering and Aggravated Identity Theft. Their information and sentence is listed below.
TENDAI MUNYARADZI MAKONI, 34, of Durham, NC, was sentenced to 144 months in prison.
MOMAR TALLA NDIR, 32, of Raleigh, NC, was sentenced to 42 months in prison.
DABED DEL JESUS SANCHEZ, 22, of Raleigh, NC, was sentenced to 42 months in prison.
MOMAR TALLA NDIR, 32, of Raleigh, NC, was sentenced to 42 months in prison.
JOSEPH DAREN HOLCOMB, 43, of Charlotte, NC, was sentenced to 34 months in prison.
AARON KENT DAVIS, 23, of Raleigh, NC, was sentenced to 84 months in prison.
MARK TONY EVANS, 28, of New York, was sentenced to 30 months in prison.
Additionally, PA AMBROSE MENDY, 31, of Raleigh, NC, was convicted at trial in September of 2016, and was sentenced to 30 months in prison on charges of Conspiracy to Commit Money Laundering, Aggravated Identity Theft, and Trafficking in Counterfeit Access Devices and Aiding and Abetting.
Investigation of this case was conducted by the United States Secret Service, with the assistance of the Wake County Sheriff’s Office, the Durham Police Department, and the Fuquay Varina Police Department. The Defense Criminal Investigative Service also assisted in the prosecution of the case. Assistant United States Attorney William M. Gilmore represented the United States. Assistant United States Attorney Melissa Kessler also represented the United States in the trial of Pa Mendy.
Scio Woman Sentenced in Meth ConspiracyRead 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 Elizabeth J. Schreiber, 37, of Scio, NY, who was convicted of conspiracy to manufacture, possess with intent to distribute, and distribute, a mixture and substance containing methamphetamine, was sentenced to 24 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handling the case, stated that between January of 2011 and late 2014, the defendant conspired to manufacture and distribute methamphetamine. Schreiber, in an effort to avoid restrictions on purchasing significant quantities of products containing pseudoephedrine—an integral ingredient in the methamphetamine manufacturing process, purchased only small quantities of such products at local pharmacies. The practice is referred to as “smurfing.”
A total of 12 people have been arrested as part of this conspiracy, Schreiber is the 10th defendant to be convicted.
The conviction is the culmination of an investigation on the part of: the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Division; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.Schenectady Man Pleads Guilty to Perjury in Arson-Homicide InvestigationRead the Press Release
ALBANY, NEW YORK – Bryan Fish, age 22, of Schenectady, New York, pled guilty today to two counts of making false declarations before a federal grand jury investigating an arson that killed four people in Schenectady.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
In pleading guilty, Fish admitted that he lied under oath to a federal grand jury investigating the fire on or about May 2, 2013 at 438 Hulett Street in Schenectady, New York, that caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside. Fish admitted that on May 24, 2013, he provided false testimony regarding his brother, whom Fish claimed: 1) drove Fish, Robert Butler, and Jennica Duell from Saratoga Springs to the vicinity of 438 Hulett Street in the early morning hours of May 2, 2013, 2) popped the trunk so that Butler could remove a gas can and 3) later drove part of the way back to Saratoga Springs.
Fish is the fourth person to be convicted for lying to the federal grand jury investigating the 438 Hulett Street fire. On March 17, 2016, Edward Leon, age 44, of St. Johnsville, New York, was sentenced to 10 years in prison following a jury trial. On September 12, 2016, Duell, age 29, of Schenectady, was sentenced to 11 years and 3 months in prison. Today, Richard Ramsey, age 48, of Saratoga Springs, New York, was sentenced to imprisonment for 87 months.
Fish faces up to 10 years in prison, as well as a maximum $500,000 fine and up to 3 years of post-imprisonment supervised release, when he is sentenced by Senior United States District Judge Gary L. Sharpe on September 11, 2017. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
United States Richard S. Hartunian said: “We will not let lies stand in the way of holding the perpetrators of this awful crime accountable and securing justice for victims and their families. We are committed to bringing this arson homicide investigation to an end by proving beyond a reasonable doubt who caused this horrific tragedy.”
ATF Special Agent in Charge Ashan M. Benedict said: “Providing false statements and testimony when lives have been lost and a small child has been severely injured served only to further victimize a family that had already suffered so much. We will not tolerate the actions of those who believe they can obstruct and hinder the discovery of the truth in this investigation, and our resolve to bring the perpetrators of this barbaric arson to justice will not wane.”
The charges resulted from an ongoing investigation being conducted by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com
Saratoga Springs Man Sentenced to 87 Months for Testifying Falsely in Arson-Homicide InvestigationRead the Press Release
ALBANY, NEW YORK – Richard Ramsey, age 48, of Saratoga Springs, New York, was sentenced today to 87 months in prison for providing false testimony to a federal grand jury investigating a fire that killed four people in Schenectady and seriously injured another.
The announcement was made by United States Attorney Richard S. Hartunian and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Ramsey’s release from prison.
As part of his guilty plea on February 17, 2017, Ramsey admitted that he made irreconcilably contradictory statements under oath before a grand jury conducting an investigation into the May 2, 2013 arson at 438 Hulett Street in Schenectady, New York, which caused the deaths of David Terry and three young children, seriously injured another child, and destroyed the building and the personal property inside.
Ramsey is the third person to be convicted and sentenced for lying to the federal grand jury investigating the fire. On March 17, 2016, Edward Leon, age 44, of St. Johnsville, New York, was sentenced to 10 years in prison. On September 12, 2016, Jennica Duell, age 29, of Schenectady, was sentenced to 11 years and 3 months in prison.
A fourth person, Bryan Fish, age 22, of Schenectady, pled guilty today to perjury charges and will be sentenced on September 11, 2017.
The investigation into the fatal fire is ongoing.
United States Richard S. Hartunian said: “We will not let lies stand in the way of holding the perpetrators of this awful crime accountable and securing justice for victims and their families. We are committed to bringing this arson homicide investigation to an end by proving beyond a reasonable doubt who caused this horrific tragedy.”
ATF Special Agent in Charge Ashan M. Benedict said: “Providing false statements and testimony when lives have been lost and a small child has been severely injured served only to further victimize a family that had already suffered so much. We will not tolerate the actions of those who believe they can obstruct and hinder the discovery of the truth in this investigation, and our resolve to bring the perpetrators of this barbaric arson to justice will not wane.”
Ramsey admitted that, on October 11, 2013 and January 10, 2014, he testified regarding specific events that occurred on May 1-2, 2013. On May 5, 2016, Ramsey gave irreconcilably contradictory testimony about those events. The events included declarations that Ramsey had allowed another man, Robert Butler, to use Ramsey’s car to drive from Saratoga Springs to Schenectady in the early morning hours of May 2, 2013. Specifically, Ramsey admitted that:
- On October 11, 2013, Ramsey’s testimony about the events of May 2, 2013 included the following:
On May 1, 2013, at approximately noon, Butler and Ramsey met in person in Saratoga Springs. At that time, Butler asked to borrow Ramsey’s car, and Ramsey agreed. Ramsey was awakened on May 2, 2013 at approximately 3 a.m. to the sound of his car starting, looked outside his window, and saw that it was gone from its parking space. Ramsey assumed Robert Butler had taken the car, as they had discussed on May 1, 2013, and went back to bed. At 7 a.m., Ramsey woke and the car was back in its parking spot. Ramsey inspected the car and discovered that the spare key, which he normally kept in the glove compartment, was still in the ignition. Ramsey had, on an earlier occasion, told Robert Butler he kept a spare key in the glove compartment of the car.
- On January 10, 2014, Ramsey’s testimony about the events of May 2, 2013 included the following:
On May 1, 2013, between 11:30 and 12 at night, Butler called Ramsey and asked to borrow Ramsey’s car. Ramsey agreed, told Butler that he would drive the car to Jefferson Terrace in Saratoga Springs, park it there, and leave the keys on the floorboard, and did so. A third party who lived at Jefferson Terrace drove Ramsey back to work. On May 2, 2013, Ramsey returned to pick up the car and saw that it was not parked in the same spot and had only a half tank of gas instead of a full tank of gas.
- On May 5, 2016, Ramsey’s testimony about the events of May 2, 2013 included the following:
Ramsey’s testimony on October 11, 2013, about the events of May 1-2, 2013, was untrue. Butler did not ask to borrow Ramsey’s car on May 1, 2013. Ramsey did not wake up at 3 a.m. on May 2, 2013 and hear his car being driven off. Ramsey did not find his spare key in the ignition of his car on the morning of May 2, 2013.
Ramsey’s testimony on January 10, 2014, about the events of May 1-2, 2013, was untrue. Ramsey did not drive his car and park it at Jefferson Terrace on May 1, 2013. Ramsey did not pick up his car at Jefferson Terrace on May 2, 2013 and did not discover that it had a half tank of gas instead of a full tank of gas.
The charges resulted from an ongoing investigation being conducted by the ATF, the Schenectady Police Department, and the Schenectady Fire Department. The case is being prosecuted by First Assistant U. S. Attorney Grant C. Jaquith and Assistant United States Attorney Wayne A. Myers.
The ATF notes that there is a reward of up to a total of $40,000 for information leading to the arrest and conviction of the person(s) responsible for the arson that occurred on May 2, 2013 at 438 Hulett Street in Schenectady, resulting in personal injury and death. All information will be treated confidentially and the callers will remain anonymous if requested. Anyone having information is encouraged to call ATF at 1-888-ATF-FIRE (1-888-283-3473), or email [email protected], or contact ATF through its web site at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF through the “report it” app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
Salina Man Sentenced for Child PornographyRead the Press Release
WICHITA, KAN. – A Salina man was sentenced Wednesday to five years in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
David Patrick Newcomer, 35, Salina, Kan., pleaded guilty to one count of distributing child pornography. In his plea, Newcomer admitted that a Wichita police detective was able to download a movie containing child pornography from Newcomer’s computer using a file-sharing program. A forensic examination of Newcomer’s computer identified more than 19,000 images and videos of child pornography.
The Internet Crimes Against Children Task Force, the Wichita Police Department and Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Jason Hart prosecuted.
Previously Convicted Felon from Essex County, New Jersey, Charged with Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man appeared in federal court today to face allegations that he possessed a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard D. Williams, 39, is charged by indictment with one count of being a felon in possession of a firearm. Williams was detained after his arraigned this afternoon before U.S. District Judge John Michael Vazquez in Newark federal court.
According to the documents filed in this case:
On Feb. 18, 2017, law enforcement officers spotted a white Infiniti car that fit the same description of a vehicle that had been reported stolen. The police attempted to conduct a motor vehicle stop of the Infiniti but it sped away at a very high rate of speed. The police pursued the Infiniti through Newark and into East Orange, New Jersey. Several other police cars and a Newark police department helicopter joined the pursuit.
The police chased the Infiniti until it was traveling east on South Orange Avenue near Bergen Street in East Orange. At that point, the Infiniti crossed into oncoming traffic and collided head-on into an unmarked Newark police SUV, causing both the Infiniti and the SUV to catch fire. The three Newark police officers inside the SUV were able to exit the vehicle safely.
Williams, the alleged driver of the Infiniti, got out of the car and attempted to flee but was caught by a Newark police officer. A N.J. State Trooper who assisted with the arrest searched Williams and allegedly recovered from his waistband a black Amadeo & Rossi special .38 revolver loaded with four rounds of .38 caliber SPL&P Winchester hollow-point ammunition. At the time, Williams had at least one prior felony conviction in federal court.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited ATF special agents, under the direction of Acting Special Agent in Charge Marcus S. Watson in Newark, with the investigation. He also thanked the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the N.J. State Police, under the direction of Col. Rick Fuentes, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense Counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Postal Clerk Charged with Stealing MailRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging ANA GUITY, 30, of West Haven, with three counts of theft of mail matter by a U.S. postal employee.
The indictment was returned on May 18, 2017. GUITY appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, entered a plea of not guilty to the charges and was released on a $25,000 bond.
As alleged in the indictment and statements made in court, GUITY was employed by the U.S. Postal Service as a window clerk at post offices in Westbrook and Chester. In late 2016 and early 2017, GUITY stole numerous letters from the mail, primarily greeting cards that she suspected would contain gift cards or cash.
If convicted, GUITY faces maximum term of imprisonment of five years and a fine of up to $250,000 on each count of the indictment.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
GUITY is a citizen of Honduras and a lawful permanent resident of the U.S.
This matter is being investigated by the U.S. Postal Service Office of Inspector General and is prosecuted by Assistant U.S. Attorney Ray Miller.
Pollock prisoners sentenced for assaultRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that three inmates at the U.S. Penitentiary in Pollock, La., were sentenced last week for the assault of another inmate that resulted in injuries requiring hospitalization and several surgeries.
Jason Dwight Mackenzie, 36, of Baltimore, Md., was sentenced Friday to 84 months in prison; Robert Shipp Jr., 32, of Tyler, Texas, was sentenced to 48 months in prison; and Calvin Skelton, 42, of Great Falls, Mont., was sentenced to 48 months in prison by U.S. District Judge Dee D. Drell on one count of assault resulting in serious bodily injury. They were also sentenced to three years of supervised release. According to evidence presented at the guilty pleas, the three inmates jumped a fourth inmate on October 21, 2015 while he was reading a newspaper in the common area of a cell block. The defendants punched and kicked him in the head, upper body and legs until they appeared winded and tired. Once a correctional officer approached, the defendants went back to their cells. The victim was taken to the prison infirmary then to a hospital where he underwent multiple surgeries to repair severe head injuries from the assault.
The FBI and the U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorney Mike O’Mara prosecuted the case.