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31 May 2017
Pimp Pleads Guilty to Federal Sex Trafficking Charge Related to Young Woman Forced to Work as Prostitute in Inland EmpireRead the Press Release
SANTA ANA, California – A local pimp who recruited a woman through a social media website and advertised her services as a prostitute in an online publication has pleaded guilty to a federal sex trafficking charge.
Lawrence T. Gunn Jr., 33, whose last known residence was in Woodland Hills, pleaded guilty yesterday to one count of sex trafficking by force, fraud or coercion.
Gunn pleaded guilty before United States District Judge David O. Carter, who scheduled a sentencing hearing on October 2. As a result of yesterday’s guilty plea, Gunn faces a mandatory minimum sentence of 15 years in prison, and he could be sentenced to as much as life in federal prison.
Gunn, who is also known as “Classified,” forced the victim to get a tattoo of his moniker on her face after he recruited her on Facebook, according to a plea agreement filed in United States District Court.
Gunn admitted that he used force, threats of force, fraud and/or coercion that led the victim to engage in commercial sex acts between May 2015 and late February 2016.
Gunn took all of the money the victim collected from customers, according to the plea agreement. Gunn physically struck the woman if she attempted to keep any of the money or if she tried to leave, breaking her nose on one occasion. Gunn also admitted in his plea agreement that he threatened to kill the victim if she tried to leave him.
Once he completes his prison term, Gunn will be required to register as a sex offender.
This case was investigated by the Riverside County Anti-Human Trafficking Task Force, which include representatives from the Riverside County Sheriff’s Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Moreno Valley Police Department, the San Bernardino County Sherriff’s Office, the Los Angeles County Sheriff’s Department and the Los Angeles Police Department assisted in the investigation.
This case is being prosecuted by Assistant United States Attorney Abigail Evans of the Riverside Branch Office.
Oneida County Woman Sentenced for Theft of Deceased Mother’s VA BenefitsRead the Press Release
SYRACUSE, NEW YORK – Michelle Gulla, 54, of Marcy, New York, was sentenced today to serve 5 years’ probation and ordered to repay $22,344.86 in restitution to the U.S. Veterans Administration, announced United States Attorney Richard S. Hartunian. The sentence followed her January 31, 2017 guilty plea to theft of public money.
As part of her guilty plea, Gulla admitted that between January of 2014 and April of 2016, she unlawfully withdrew $22,344.86 from the bank account of her deceased mother. All of the money withdrawn was the result of overpayment made by the U.S. Veteran’s Administration (“VA“), which continued to deposit surviving spouse benefits monthly into her mother’s account even after her death in January of 2014, because the VA had not received notification of her expiring. Michelle Gulla knew at the time that she had no right to the $22,344.86 in Veteran’s Administration benefits, which money she stole and converted to her own use through hundreds of ATM cash withdrawals, including thousands of dollars at casinos in New York and in Las Vegas, Nevada.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Donna L. Neves, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius.
Ohio Man Pleads Guilty to ConspiracyRead the Press Release
Columbia, South Carolina----United States Attorney Beth Drake announced today that Aaron Vennefron of Hamilton, Ohio, pled guilty to his role in a conspiracy involving theft of government funds. Vennefron admitted that he and another man conspired to defraud the government by creating fraudulent invoices for payment of what appeared to be goods needed for work at the Mixed Oxide Fuel Fabrication Facility at the Savanah River Site. He further admitted that no goods were ever received and that the loss in the case was over $4,000,000.00.
The sentencing date will be set after the court reviews a pre-sentence report.
The case was investigated by Special Agents with the U.S. Department of Energy, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney John Potterfield is prosecuting the case.
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New York Women Plead Guilty to Using Counterfeit Credit CardsRead the Press Release
CONCORD, N.H. - Latavia Hassan, 33, of Mastic, New York, and Chantel Lightner, 26, of Wyandanch, New York, have pleaded guilty to conspiracy to use counterfeit credit cards, announced Acting United States Attorney John J. Farley.
During separate hearings in federal court yesterday, Hassan and Lightner admitted that on 24 separate occasions they used counterfeit credit cards to fraudulently acquire gift cards and other merchandise totaling more than $18,000 from TJ Maxx, Marshalls, and Home Goods stores in Nashua, Bedford, Londonderry, Manchester, and Concord on April 16, 2017.
Members of the Concord Police Department recovered the counterfeit credit cards and stolen gift cards and merchandise after Hassan and Lightner attempted to buy gift cards from a store in Concord.
Hassan and Lightner will be sentenced on September 14, 2017.
The Concord Police Department and Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Robert M. Kinsella is prosecuting the case.
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New Hampshire Man Sentenced to over Seven Years in Prison for Conspiracy to Commit an Offense Against the United States and Interstate Travel in Aid of Extortion During 2014 Armed Standoff in Bunkerville, NevadaRead the Press Release
LAS VEGAS, Nev. – A New Hampshire man who conspired with Cliven Bundy and others during an April 2014 armed standoff over Bundy’s trespassing cattle on public lands was sentenced today to 87 months in prison.
Acting United States Attorney Steven W. Myhre for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI Las Vegas Division, and Acting Director Michael D. Nedd of the Bureau of Land Management made the announcement.
Gerald A. DeLemus, 62, of Rochester, N.H., pleaded guilty on Aug. 25, 2016, to one count of conspiracy to commit an offense against the United States and one count of interstate travel in aid of extortion. In addition to the prison term, United States District Chief Judge Gloria M. Navarro sentenced DeLemus to three years of supervised release.
According to the plea agreement, on or about April 8, 2014, during a telephone conversation with co-defendant Cliven Bundy, DeLemus agreed to assist Bundy by bringing firearms and other gunmen from New Hampshire to Nevada to support Bundy. DeLemus admitted that when he travelled to Nevada, he joined in a conspiracy with Bundy and others to display force and aggression in order to influence federal law enforcement, thereby impeding or interfering with law enforcement’s official duties. On April 12, 2014, in furtherance of the conspiracy, at least one member of the conspiracy assaulted federal law enforcement officers by brandishing a firearm while the officers were performing impoundment operations in order to intimidate the officers and to instill in them fear and apprehension of immediate bodily injury or death. The armed assault forced the federal law enforcement officers to relinquish their custody of the impounded cattle to Bundy and members of the conspiracy.
DeLemus further admitted that, from April 13, 2014, and for weeks thereafter, in furtherance of the conspiracy, he provided personal security to Bundy and other conspirators, organized and led other gunmen in conducting patrols and manning security checkpoints, called for others to travel to Bunkerville, as a show of force in support of Bundy, and displayed firearms and made public statements to show and threaten force in order to influence a public officer.
The case was investigated by the FBI and BLM. The case was prosecuted by Acting U.S. Attorney Steven W. Myhre, Assistant U.S. Attorneys Nicholas D. Dickinson and Nadia J. Ahmed, and Special Assistant U.S. Attorney Erin M. Creegan.
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Navajo Woman from Crownpoint Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Valerie Cayatineto, 40, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.
Cayatineto was arrested in Jan. 2017, on a criminal complaint charging her with involuntary manslaughter. According to the complaint, Cayatineto killed a Navajo man when she crashed her vehicle head-on into the victim’s vehicle on Dec. 9, 2016, on the Navajo Indian reservation in McKinley County, N.M. At the time of the crash, Cayatineto was driving under the influence of alcohol.
Cayatineto subsequently was indicted on Feb. 7, 2017, and charged with involuntary manslaughter.
During today’s proceedings, Cayatineto pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Cayatineto faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elisa Dimas is prosecuting the case.
Mt. Vernon, IL Man Sentenced on Gun and Drug Related ChargesRead the Press Release
Larry D. Mays, 63, of Mt. Vernon, IL, was recently sentenced to federal prison on gun and drug related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On May 25, 2017, Mays was sentenced to 84 months of imprisonment and three years’ supervised release following his imprisonment. Mays had previously pleaded guilty to three counts in a federal indictment.
Count 1 charged that on June 28, 2016, in Jefferson County, Mays was a convicted felon in possession of three separate firearms, in and affecting interstate and foreign commerce, in violation of Title 18, United States Code, Section 922(g)(1). Count 2 charged that on June 28, 2016, in Jefferson County, Mays knowingly and intentionally possessed with intent to distribute marihuana in violation of federal law. Count 3 charged that on June 28, 2016, in Jefferson County, Mays knowingly and intentionally possessed cocaine.
The investigation in this case was conducted by the Joint Narcotics Unit of the Mt. Vernon Police Department and the Jefferson County Sheriff’s Department.
Montgomery Man Sentenced to Prison for Filing Fraudulent Tax Returns Using Stolen IDsRead the Press Release
Montgomery, Alabama – A Montgomery resident was sentenced to 42 months in prison for his role in a stolen identity refund fraud scheme, announced Acting U.S. Attorney Clark Morris for the Middle District of Alabama and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Tavarious Jackson, aka Terrell Carson or Hog, participated in a conspiracy using stolen IDs to file fraudulent 2010 through 2012 tax returns with the Internal Revenue Service (IRS). The conspiracy sought at least $149,455 in fraudulent tax refunds.
In addition to the term of prison imposed, Jackson was also sentenced to serve three years of supervised release, with the condition that he is not permitted to accept employment where he may have access to personal identifiable information, and ordered to pay $97,566.82 in restitution to the IRS. Jackson pleaded guilty in November 2016 to aggravated identity theft and theft of government property.
Jackson’s co-conspirators Jacorey Giddens, Rodrickus Howard and Cruz Burnett previously pleaded guilty in connection with this scheme. Each was sentenced to prison.
Acting U.S. Attorney Morris and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Methamphetamine Traffickers SentencedRead the Press Release
WICHITA FALLS, Texas — Jackie Eugene Clayton, 38, Juan Carlos Lopez, 53, and Rudy Roman Ramirez, 45, were sentenced yesterday by U.S. District Judge Reed C. O’Connor following their guilty pleas in February 2017 to one count of conspiracy to distribute five grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge O’Connor sentenced Clayton to 235 months in federal prison, Lopez to 100 months in federal prison and Ramirez to 135 months in federal prison.
Co-defendant Juan Leonardo Tello will be sentenced on June 26, 2017.
According to documents filed in the case, from December 2014 through December 3, 2015, Clayton on multiple occasions distributed varied quantities of methamphetamine to Ramirez and Lopez. Clayton, who lived in Dallas, Texas, during the conspiracy, distributed quantities of methamphetamine to numerous customers from Wichita Falls, including Ramirez and Lopez. Clayton’s Wichita Falls customers usually travelled to Dallas to obtain methamphetamine. Those customers then returned to Wichita Falls to distribute the methamphetamine to their own customers. The quantities that Clayton distributed varied from one ounce to several ounces of methamphetamine worth several thousand dollars.
Ramirez also obtained larger quantities of methamphetamine from co-conspirator Tello, who lived in Dallas. Ramirez picked up methamphetamine from Tello directly and sent Lopez to pick up methamphetamine and transport it back to Wichita Falls for distribution. Ramirez paid Tello in cash and via wire transfers. More than $75,000 in drug proceeds have been identified.
The case was investigated by the Texas Department of Public Safety, the Wichita County District Attorney’s Office, and the Bureau of Alcohol, Tobacco and Firearms. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
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Men Sentenced to Combined 60 Years for Selling Spice in Hampton RoadsRead the Press Release
NEWPORT NEWS, Va. – Two men who led a $21 million spice manufacturing and distribution conspiracy were sentenced today to 32 years and 28 years in prison, respectively. Both men were also ordered to forfeit $6.5 million.
Charles Burton Ritchie, 46, and Benjamin Galecki, 42, both of Pensacola, Florida, were convicted by a federal jury on January 23. According to court records and evidence presented at trial, Ritchie and Galecki operated Zencense, a Pensacola-based company that manufactured smokable synthetic cannabinoids, commonly known as “spice,” throughout 2012. Ritchie and Galecki’s company gave their spice blends such names as Bizarro, Neutronium, Orgazmo, and Sonic Zero. Their products contained XLR-11 and UR-144, which at that time were analogues of JWH-018, a Schedule I controlled substance. In December 2012, Ritchie and Galecki purported to sell their company to a third party in California, though they continued to exercise control over the company into 2013. The new company’s name was ZenBio.
Between August 2012 and April 2013, Zencense and ZenBio shipped a total of approximately 1,000 kilograms of spice to the Hampton Roads area. Zencense and ZenBio spice was sold at Hampton Pipe and Tobacco, a headshop in Hampton, as well as at the Red Barn, a convenience store in Newport News, among other locations.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; Colonel Kirk B. Stabler, Commander of the Air Force Office of Special Investigations; Terry L. Sult, Chief of Hampton Police Division; Richard W. Myers, Chief of Newport News Police; and Colonel W. Steven Flaherty, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric Hurt and Kevin Hudson prosecuted 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. 4:15-cr-18.
Medicare Advantage Organization and Former Chief Operating Officer to Pay $32.5 Million to Settle False Claims Act AllegationsRead the Press Release
Tampa, FL – Freedom Health Inc., a Tampa-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.
“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”
“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”
The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to the Centers for Medicare & Medicaid Services (CMS), which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.
“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”
The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.
The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.
Today’s settlements were the result of a coordinated effort by Assistant U.S. Attorneys Katherine Ho and Randy Harwell of the Middle District of Florida, Trial Attorney Jennifer Koh of the Department of Justice’s Civil Division’s Commercial Litigation Branch, HHS-OIG and Assistant Attorney General Ian Garland of the Florida Office of the Attorney General.
The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).
Marrero Woman Pleads Guilty to $536,724 in Health Care FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MONICA SYLVEST, age 52, of Marrero, pled guilty today to a Bill of Information charging her with health care fraud.
According to court documents, from August 2014 through September 2016, SYLVEST worked as a Practice Administrator for a local pediatric clinic. During her employment, SYLVEST embezzled and diverted to her personal use approximately $536,724 in medical reimbursements from the Medicaid program in connection with the delivery of and payment for health care benefits, items, and services paid to the clinic. As the Practice Administrator, SYLVEST utilized a business credit card issued by American Express and made over $536,000 in unauthorized charges to purchase several luxury items including a Harley Davidson motorcycle, custom diamond jewelry, and collectible artwork. SYLVEST then accessed her employer’s bank account containing the Medicaid reimbursements to make transfers and payments to cover the illegal purchases. SYLVEST disguised the payments made to American Express as “biologicals” or “vaccinations” in order to make it appear that the expenses were related to the normal operations of the clinic.
SYLVEST faces a sentence of up to ten years imprisonment, followed by a term of supervised release of up to three years, and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for September 7, 2017.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the U.S. Department of Health and Human Services in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Man Sentenced to 18 Years in Prison and 10 Years of Supervised Release for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced that United States District Judge Pedro A. Delgado-Hernández sentenced 33-year-old Sergio Cintrón-Rivera, to serve a term of imprisonment of 18 years followed by 10 years of supervised release. On January 27, 2017, Cintrón-Rivera pled guilty to one count of production of child pornography involving a female minor, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Police Department.
According to the indictment, on or about August 2015, Cintrón-Rivera induced a 15-year-old female minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The charging document also alleges that on or about October 2015 Cintron-Rivera distributed five images of the minor engaging in sexually explicit conduct via the smartphone instant messaging application Whatsapp.
“This sentence sends a strong message to people who abuse children. They will pay a heavy price for their actions. My office, along with our federal, state and local partners, remains committed to protecting children by aggressively pursuing, prosecuting and punishing those who seek to exploit them,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez.
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Ginette Milanés.
Lockport Man Arrested on Child Pornography 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 Sterling Jones, 23, of Lockport, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 10 years in prison and $250,000 fine.
Assistant U.S. Attorney Jonathan Cantil, who is handling the case, stated that according to the complaint, in March 2017, the FBI’s CyberTipLine received a report about an account on DropBox, Inc. that belonged to the defendant. On April 7, 2017, a federal search warrant was executed at the defendant’s residence at 153 Grand Street, Apartment 2, in Lockport. During the search, officers seized Jones’ cellular telephone. Following a forensic analysis of the phone, investigators discovered a second DropBox account, which contained approximately 295 videos and 11 images of child pornography. Some of the images depicted prepubescent children.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being held in custody.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
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.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on May 30, 2017, Brendan Kelly Gregg, 32, of Lincoln, was sentenced to 14 years (168 months) in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Following the prison term, Gregg will serve five years on supervised release.
Information provided to law enforcement indicated that between February of 2015 and March of 2016, Gregg was responsible for the distribution of at least 1.5 kilograms (approximately three pounds) of methamphetamine in the Lincoln area. On September 30, 2015, Gregg was contacted by a Lincoln Police officer and was found to be in possession of two and one-half grams of methamphetamine and a pistol, which Gregg said belonged to his father.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lewiston Man Pleads Guilty to Credit Union RobberyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Brent Roaix, 33, of Lewiston, Maine, pleaded guilty today in U.S. District Court to robbing a federally insured credit union.
According to court records, on January 25, 2017, Roaix entered a Rainbow Federal Credit Union in Lewiston and gave a handwritten note to a teller demanding money and stating that he was armed. The teller gave him money and he absconded on foot. Shortly thereafter, Lewiston police officers found him hiding in a nearby apartment, arrested him, and recovered all of the stolen money.
The defendant faces up to 20 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This investigation was conducted by the Lewiston Police Department and the Federal Bureau of Investigation.
Lawrenceville, Illinois Man and Arizona Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Kelly W. Cessna, 47, of Bridgeport, IL, and Lorenzo M. Molina, 50, of Phoenix, Arizona, were recently sentenced to federal prison on methamphetamine related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On May 23, 2017, Cessna was sentenced to 200 months of imprisonment and five years of supervised release following his imprisonment. On May 25, 2017, Molina was sentenced to 135 months of imprisonment and two years of supervised release. Both Cessna and Molina had previously pleaded guilty to two counts in a federal indictment.
Count 1 charged that from November 2015, until June 18, 2016, in Crawford, Lawrence, and Richland Counties, within the Southern District of Illinois, and elsewhere, Cessna, Molina, and Kedly G. Newlin, 57, of Lawrenceville, IL, and others conspired to distribute methamphetamine in violation of federal law. The total amount of methamphetamine involved in the conspiracy was fifty grams or more of crystal methamphetamine (Ice).
Count 3 charged that in mid to late May 2016, in Richland County, within the Southern District of Illinois, Molina knowingly and intentionally distributed methamphetamine. Count 4 charged that on June 9, 2016, in Lawrence County, within the Southern District of Illinois, Cessna knowingly and intentionally possessed methamphetamine with the intent to distribute it.
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Co-defendant Newlin was previously sentenced to 235 months of imprisonment.
The investigation in this case was conducted by the Crawford County Sheriff’s Office, the Robinson, Illinois Police Department, the Bridgeport, Illinois Police Department, the Lawrenceville County Sheriff’s Office, the Richland County Sheriff’s Office, and the Department of Homeland Security.
Kansas Sex Offender Pleads Guilty to Transporting Virginia Teen for SexRead the Press Release
KANSAS CITY, KAN. – A registered sex offender from Kansas pleaded guilty Wednesday to picking up a 16-year-old girl in Virginia and taking her across state lines to have sex with him, U.S. Attorney Tom Beall said today.
Logan Viquesney, 21, Kansas City, Kan., pleaded guilty to one count of interstate transportation of a minor to engage in sexual activity. In his plea, he admitted he communicated with the victim over the internet while she was staying with her grandparents in Virginia. On May 30, 2016, the victim was reported missing from her grandparents’ home. Investigators learned that Viquesney had driven to Virginia, picked up the girl, and taken her with him on a trip that took them from Virginia to Maryland, Illinois, Missouri and Kansas. While on the trip, Viquesney had sex with the girl.
Viquesney was arrested after he arrived in Kansas City, Kan., with the girl.
Sentencing is set for July 31. Both parties have agreed to recommend a sentence of 15 years in federal prison.
Beall commended the Kansas City, Kan., Police Department, the Lenexa Police Department, the Kansas Bureau of Investigation, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Kansas Man Sentenced for Cashing Checks to Pay Undocumented WorkersRead the Press Release
WICHITA, KAN. – An Olathe man was sentenced Wednesday to time served (three years) for cashing millions of dollars’ worth of checks to pay undocumented workers for installing drywall, U.S. Attorney Tom Beall said.
Jose Torres-Garcia, 53, Olathe, Kan., pleaded guilty to one count of harboring or encouraging aliens to reside in the U.S. unlawfully and one count of operating an unlicensed money transmitting business. In his plea, he admitted he cashed checks for construction crew leaders so they could pay themselves and their crews. Operating from his business at Boost Mobile, 1319 Santa Fe, Olathe, Kan., Torres-Garcia received checks made payable to “Jose R. Torres Drywall,” even though he was not in the drywall business. He deposited the checks and distributed cash back to the crew leaders for distribution among the workers. Investigators determined that approximately $14 million passed through Torres-Garcia’s account in two years.
Beall commended Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney Brent Anderson for their work on the case.
KC Man, Woman Plead Guilty to $2 Million Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man and woman pleaded guilty in federal court today to their roles in a more than $2 million conspiracy to distribute methamphetamine.
Allyssa D. Samm, 28, and Eric D. Looker, 32, both of Kansas City, pleaded guilty in separate appearances before U.S. District Judge Gary A. Fenner to participating in a conspiracy to distribute methamphetamine in the Kansas City metropolitan area from Feb. 8, 2015, to Feb. 29, 2016.
Today’s plea agreements cite several instances in which Samm and Looker were involved in the sale of methamphetamine to a confidential law enforcement informant. According to her plea agreement, Samm and a co-conspirator had been purchasing approximately a half-pound of methamphetamine a day for past year at the time of her arrest (on Feb. 20, 2016), which they then distributed in the Kansas City metropolitan area.
Looker received methamphetamine from Samm and a co-conspirator. The government believes Looker received at least a half-ounce of methamphetamine per week during the conspiracy, for a total of at least 731.1 grams of methamphetamine, a portion of which he redistributed.
Under the terms of their plea agreements, Looker and Samm are jointly assessed a money judgment of $2,044,700, which represents the proceeds of the drug-trafficking conspiracy. According to today’s plea agreements, the average street price of an ounce of methamphetamine within this conspiracy was $700 per ounce (28.35 grams). The government believes that approximately 82.7 kilograms of methamphetamine (at approximately 98 percent purity) was distributed during the conspiracy. The government believes Samm, who received methamphetamine from a supplier in Kansas City, Kan., and distributed it to others involved in the conspiracy, was involved in the total distribution amount. The government believes that Looker’s responsibility with regard to the money judgment is $18,200.
Co-defendant Amanda N. Greenway, 30, of Kansas City, Mo., pleaded guilty on April 12, 2017, to her role in the drug-trafficking conspiracy. The government believes Greenway was personally involved in the distribution of at least 6.7 grams of methamphetamine, placing her joint and several responsibility within the money judgment at $175.
Under federal statutes, Samm is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. Looker is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department.
KC Man Sentenced to 15 Years for Illegal AmmunitionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing ammunition.
Joseph L. Hill, 39, of Kansas City, was sentenced by U.S. District judge Beth Phillips to 15 years in federal prison without parole. Hill was sentenced as an armed career criminal due to his prior felony convictions.
On Nov. 3, 2016, Hill pleaded guilty to being a felon in possession of ammunition. Hill admitted that he was in possession of 40 rounds of .45-caliber ammunition, five rounds of .40-caliber ammunition, 10 rounds of 7.62 x 39mm ammunition and 13 rounds of 9mm ammunition on July 15, 2015.
Kansas City police officers executed a search warrant at Hill’s residence on July 15, 2015, following a series of five narcotics transactions between Hill and a confidential informant. The ammunition was found inside a small safe in a bedroom at Hill’s residence, along with $1,000 and a glass jar with a green leafy residue. Two handguns – a Jimenez 9mm and a Savage Arms .32-caliber semi-automatic – were found in other rooms inside the residence. Hill denied any knowledge of the two handguns.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hill has four prior felony convictions for sale of a controlled substance and a prior felony conviction for unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and City of Jackson, Mississippi Resolve Lawsuit over Zoning of Group HomesRead the Press Release
The Justice Department today announced a settlement with the City of Jackson, Mississippi to resolve allegations that the city violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by preventing people in recovery from alcohol and substance abuse from living in group homes in most residential areas.
The settlement, which must still be approved by the U.S. District Court for the Southern District of Mississippi, resolves a lawsuit the department filed in September 2016.
The United States alleged that the City of Jackson engaged in a pattern or practice of discrimination on the basis of disability by imposing unlawful zoning restrictions on group homes for persons in recovery. The city enforced those restrictions against a group home operated by Urban Rehab, Inc., resulting in an order requiring the home to close and the residents to relocate. Several other homes for persons in recovery were at risk of being closed by the city’s enforcement of its ordinance.
As part of the settlement, the city agreed to revise its zoning code to permit persons in recovery to reside in all residential zones and to ease other restrictions on group homes for people with disabilities. The city has agreed to adopt a reasonable accommodation policy, train city employees on the requirements of the FHA and ADA, appoint a Fair Housing Compliance Officer, and report periodically to the Justice Department. The city will pay $100,000 to the owner of Urban Rehab, Inc., $35,000 to the department as a civil penalty, and $50,000 to a settlement fund that will compensate other victims.
“Federal law prohibits housing discrimination against people because of their disabilities,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement is an important commitment by the City of Jackson to bring its zoning code in line with both the Fair Housing Act and the Americans with Disabilities Act.”
The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Mississippi.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at [email protected].
Justice Department and City of Jackson, Mississippi Resolve Lawsuit over Zoning of Group HomesRead the Press Release
WASHINGTON – The Justice Department today announced a settlement with the City of Jackson, Mississippi to resolve allegations that the city violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by preventing people in recovery from alcohol and substance abuse from living in group homes in most residential areas.
The settlement, which must still be approved by the U.S. District Court for the Southern District of Mississippi, resolves a lawsuit the department filed in September 2016.
The United States alleged that the City of Jackson engaged in a pattern or practice of discrimination on the basis of disability by imposing unlawful zoning restrictions on group homes for persons in recovery. The city enforced those restrictions against a group home operated by Urban Rehab, Inc., resulting in an order requiring the home to close and the residents to relocate. Several other homes for persons in recovery were at risk of being closed by the city’s enforcement of its ordinance.
As part of the settlement, the city agreed to revise its zoning code to permit persons in recovery to reside in all residential zones and to ease other restrictions on group homes for people with disabilities. The city has agreed to adopt a reasonable accommodation policy, train city employees on the requirements of the FHA and ADA, appoint a Fair Housing Compliance Officer, and report periodically to the Justice Department. The city will pay $100,000 to the owner of Urban Rehab, Inc., $35,000 to the department as a civil penalty, and $50,000 to a settlement fund that will compensate other victims.
“Federal law prohibits housing discrimination against people because of their disabilities,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement is an important commitment by the City of Jackson to bring its zoning code in line with both the Fair Housing Act and the Americans with Disabilities Act.”
The case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Mississippi.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe that they have experienced unlawful housing discrimination may contact the Justice Department at 1-800-896-7743, or by e-mail at [email protected].
Honduran National Sentenced for Illegally ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DARWIN ANTONIO CASTILLO age 36, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien previously convicted of a felony.
U.S. District Judge Martin L.C. Feldman sentenced CASTILLO to 30 months imprisonment, followed by 3 years of supervised release, a $20,000 fine, and a $100.00 special assessment. Following completion of his sentenced, CASTILLO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on or about October 2, 2016, CASTILLO was found in the United States after having been officially deported and removed on October 27, 2016, following completion of his sentence in connection with his conviction for illegal reentry of an alien in the Southern District of Texas.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Hartford Man Charged with Distributing Heroin and Fentanyl to Rocky Hill Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDWIN ESCRIBANO, also known as “Bebo,” 25, of Hartford, was arrested yesterday on a federal criminal complaint charging him with distributing heroin and fentanyl. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
ESCRIBANO appeared yesterday before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained pending a detention hearing currently scheduled for June 2 at 12:30 p.m.
As alleged in court documents, on September 14, 2016, the Rocky Hill Police Department and emergency medical personnel responded to a restaurant on a report of a male who had overdosed and was not breathing. The male, who was 29 years old, was pronounced deceased at the scene. Officers seized drug and non-drug evidence, including a cellophane tourniquet and syringe in the restaurant bathroom that ultimately tested positive for the presence of heroin and fentanyl. The investigation, which included analysis of the victim’s cellphone, revealed that ESCRIBANO had provided the drugs to the victim shortly before the victim’s death.
The complaint charges ESCRIBANO with possession with intent to distribute, and distribution of fentanyl and heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint 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.
This matter is being investigated by the Drug Enforcement Administration and the Rocky Hill Police Department. This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Gun traffickers arrested for allegedly using the Dark Net to export guns across the worldRead the Press Release
ATLANTA – Gerren Johnson and William Jackson have been arraigned on federal charges of dealing in firearms without a license, smuggling goods from the United States to other countries, and illegal delivery of firearms to a common carrier. The defendants allegedly exported guns illegally to buyers all over the world.
“Johnson and Jackson are charged with using underground Internet websites to illegally sell firearms to individuals in over a dozen foreign countries,” said U.S. Attorney John Horn. “Relying on the anonymity of the Internet, these defendants hoped to circumvent federal firearms laws.”
“Organized criminal groups often rely on the availability of weapons to carry out their activities; thus, the market for illegal firearms around the world. ATF will aggressively and acutely target any individuals who seek to diminish the general welfare of our communities with illegal firearms trafficking,” said Wayne Dixie, Special Agent in Charge, ATF Atlanta Field Division.
According to U.S. Attorney John Horn, the charges and other information presented in court: In June 2013, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and other agencies began investigating an international firearms trafficking scheme in which individuals utilized a Dark Net website called Blackmarket Reloaded (BMR). The individuals used the usernames CherryFlavor and WorldWide Arms. The investigation revealed that firearms posted for sale on this website were sold to persons outside the United States, and were shipped to buyers from the United States hidden inside electronic items. Some of the countries to which packages were shipped include Canada, the United Kingdom and Australia.
Federal search warrants, coupled with trace interviews, allegedly connected all firearms recovered from original purchasers in the Atlanta area, to the defendants. The defendants had been acquiring firearms legally from the OutDoorTraders website, and later reselling the firearms on underground websites including BMR, Utopia, and Agora Market.
Also, shipping information for over 50 suspected parcels was disseminated to investigators in Austria, Australia, Belgium, Canada, the United Kingdom, Ireland, Denmark, France, Germany, the Netherlands, and Sweden. Intelligence analysis, as well as a massive audit of internationally-shipped parcels originating from several suspect U.S. Post Offices, resulted in the identification of the individuals in the CherryFlavor group. Three defendants; Sherman Jackson, Brendan Person, and Gerren Johnson, were located in Atlanta, Georgia. A fourth defendant, William Jackson, lived in East Point, Georgia.
Gerren Johnson, 28, of Austell, Georgia, was arraigned on May 24, 2017, before U.S. Magistrate Judge Linda T. Walker. William Jackson, 29, East Point, Georgia, was arraigned on May 30, 2017, before U.S. Magistrate Judge Justin Anand. Both were indicted by a federal grand jury on May 3, 2017. Sherman, Jackson and Brendan Person previously were arrested, and both have entered pleas of guilty.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Tracia King and Stephanie Smith are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Grove City Man Sentenced for Distributing HeroinRead the Press Release
COLUMBUS, Ohio – Roman Hernandez, 38, of Grove City, was sentenced U.S. District Court to 60 months in prison on one count of possession with the intent to distribute one kilogram or more of heroin and one count of money laundering.
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, Cincinnati Field Office, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of Central Ohio High Intensity Drug Trafficking Area (HIDTA) Task Force announced the sentence handed down Friday by Senior U.S. District Judge James L. Graham.
According to court documents, through a joint investigation conducted by the IRS, ATF, and the Central Ohio HIDTA in cooperation with the Ohio Organized Crime Investigations Commission, Hernandez was identified as a narcotics trafficker that was involved in the sale of heroin.
Investigators executed a search warrant at Hernandez’s home on Norwood Street in Columbus on April 9, 2013. During the course of the search warrant, they seized in excess of $55,000, financial records, and documents detailing the purchase of a home for $70,000 in cash.
Hernandez also withdrew $26,000 from his personal checking account and purchased a cashier’s check to be used towards the purchase of the home. The funds used by Hernandez to purchase this property were proceeds he derived from sale of narcotics.
U.S. Attorney Glassman commended the investigation of this case by the Central Ohio HIDTA Task Force, and Assistant U.S. Attorney Timothy Prichard, who prosecuted this case.
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Georgia Dealer and Title Clerk Sentenced in Odometer Fraud SchemeRead the Press Release
Two Georgia residents were sentenced in Atlanta, Georgia today for their roles in a conspiracy to alter odometers of used motor vehicles, the Justice Department announced.
Rojen Burnett, 35, of Conyers, Georgia, and Amber McLaughlin, 33, of Duluth, Georgia, each were sentenced to 12 months in prison and three years of supervised release by Chief U.S. District Court Judge Thomas W. Thrash, Jr.
Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles; McLaughlin was a former customer service specialist at the Motor Vehicle Department of the Georgia Department of Revenue. In 2012 and 2013, Burnett bought high-mileage used motor vehicles, altered the mileage on the titles, rolled-back the odometers, obtained new titles with false low mileages, and sold the vehicles to unsuspecting dealers. The dealers, in turn, sold them to consumers. McLaughlin helped Burnett commit odometer fraud by fraudulently issuing new Georgia titles with false low mileages in exchange for cash.
“Buying a car or truck is one of the biggest financial decisions that consumers make,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Odometer fraudsters victimize consumers by making them pay substantially more for a used car that is less safe and less reliable than the consumer wanted or needed. The Justice Department will hold these fraudsters accountable for their crimes.”
The defendants’ scheme included at least 310 vehicles whose odometers were rolled back and sold. Burnett and McLaughlin were also ordered to pay $399,363 and $176,725, respectively, in restitution to the victims of their fraud, who are the current owners of the cars with rolled-back odometers.
This case was investigated by National Highway Traffic Safety Administration Office of Odometer Fraud Investigation (NHTSA) and the Georgia Department of Revenue. NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals having information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Kerala Thie Cowart of the Civil Division’s Consumer Protection Branch with assistance from Assistant U.S. Attorneys Brian Pearce and Nathan Kitchens of the U.S. Attorney’s Office for the Northern District of Georgia.
More information on odometer fraud is available at: http://www.nhtsa.gov/Odometer-Fraud. Tips on detecting and avoiding odometer fraud are available at: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Northern District of Georgia, visit its website at https://www.justice.gov/usao-ndga.
Garbage Executive and Tow Company Owner Charged with Bribery and FraudRead the Press Release
The former CEO of garbage hauler Rizzo Environmental Services (RES), Charles B. “Chuck” Rizzo, 46, of Bloomfield Hills, was indicted today on five counts of bribery and three counts of conspiracy to commit bribery, in connection with garbage contracts in Clinton, Macomb, and Chesterfield townships, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
Also charged with bribery is towing company owner Gasper Fiore, 56, of Grosse Pointe Shores. The superseding indictment charges Fiore and former Clinton Township trustee Dean Reynolds, 50, of Clinton Township, with multiple counts of bribery and conspiring to commit bribery in order to secure a towing contract with Clinton Township sought by Fiore. In March 2016, Fiore paid a $4,000 cash bribe to Reynolds, and then another $3,000 in cash to Reynolds in May 2016. The bribes were paid by Fiore to Reynolds through Charles B. Rizzo.
The superseding indictment also charges Charles B. Rizzo and Fiore, as well as Rizzo’s father, Charles P. Rizzo, 70, of New Baltimore, and Derrick Hicks, 47, of Bloomfield Hills, with conspiracy to commit mail and wire fraud. In addition, Charles P. Rizzo is charged with seven counts of mail and wire fraud, and his son, Charles B. Rizzo, is charged with twelve counts of mail and wire fraud. The fraud charges are based on the defendants’ conspiracy involving at least ten different schemes to steal money from RES between 2013 and 2016, a time when the majority owner of RES was a New York based private equity firm. At the time, Charles B. Rizzo, Charles P. Rizzo, Fiore, Hicks, and others schemed to steal hundreds of thousands of dollars from RES using a fake legal settlement agreement, fraudulent consulting deals, cash kickbacks, shell companies, and the stealing of money to pay for part of the construction costs of Charles B. Rizzo’s Bloomfield Township mansion. Charles B. Rizzo and other conspirators then used some of the stolen money to pay bribes to public officials in order to maintain and secure additional municipal garbage contracts. In conducting the embezzlement scheme, Charles B. Rizzo referred to the money embezzled and stolen from RES as “OPM”—“other people’s money.” The indictment contains forfeiture provisions regarding more than $4 million that has thus far been seized by the government in the investigation, as well as seeking the forfeiture of the proceeds of the sale of the Rizzos’ minority interest in RES.
The superseding indictment also adds new bribery charges against Reynolds in connection with another municipality. indictment alleges that Reynolds conspired to commit bribery with former New Haven trustee Brett Harris, 57, of New Haven. According to the indictment, Reynolds introduced Harris to an individual who, unbeknownst to Reynolds and Harris, was an undercover federal agent. Reynolds introduced Harris as a politician willing to take bribes. undercover agent proceeded to pay Harris $9,000 in cash bribes in return for Harris’ promise to help secure a garbage contract with New Haven.
Furthermore, the superseding indictment charges Reynolds with accepting multiple bribes from engineering contractor, Paulin Modi. In this regard, Reynolds took an $8,000 bribe from Modi in 2009 and another $8,000 bribe from Modi in 2013 in connection with securing the engineering contract for Modi for Clinton Township.
Each bribery charge carries a maximum sentence of 10 years imprisonment and a fine of $250,000. of the mail and wire fraud counts carry a maximum sentence of 20 years imprisonment and a fine of $250,000. The bribery conspiracy counts carry a maximum sentence of 5 years imprisonment and a fine of $250,000.
Acting United States Attorney Lemisch said: “This indictment demonstrates our commitment to bring to justice all participants in bribery schemes, including both the corrupt public officials and the bribe payers seeking to profit from public contracts. Our citizens are entitled to decisions based on the best interests of the public, not the best interests of politicians who accept bribes and bribe-paying contractors.”
"The public understandably is skeptical when public officials and municipal contractors in southeast Michigan conspire with one another to line their own pockets and illegally scheme to obtain advantages over their competitors," said Special Agent in Charge David P. Gelios, Detroit Division of the FBI. "Today's indictments reflect the FBI's continued resolve to root out public corruption and to work with honest community leaders to restore the public's trust in their government officials and institutions. Unfortunately, though, corrupt activity such as this continues. Until that is no longer the case, I would urge anyone who has information about this case or other allegations of corruption to call the FBI Public Corruption Task Force at (313) 965-2323."
“Bribery regardless of how you disguise it, is illegal”, stated Special Agent in Charge Manny Muriel for IRS Criminal Investigation. “Parties who profit and those who pay the bribe will be charged and held accountable for breaking the law. All Americans have a duty to pay their fair share in taxes. IRS – Criminal investigation helps to ensure that all Americans including public officials and contractors, are held to the same standards.”
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
An indictment is only a charging document 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
Gang Member Sentenced to More Than 9 Years in Federal Prison for Racketeering and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROY ISIAH JACKSON, also known as “I,” 22, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 110 months of imprisonment, followed by five years of supervised release, for racketeering and firearm offenses stemming from his participation in a violent New Haven-based street gang.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, members and associates of the RSGB transported crack and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members. To date, approximately 22 members and associates of the Connecticut faction of the RSGB been charged and convicted of federal narcotics and firearms offenses in Connecticut and Maine.
On February 14, 2017, JACKSON, a member of the RSGB, pleaded guilty to one count of engaging in a pattern of racketeering activity, one count of attempted assault with a dangerous weapon in aid of racketeering, and one count of carrying a firearm during and in relation to a crime of violence.
In pleading guilty, JACKSON admitted that, on March 19, 2012, he was involved in an exchange of gunfire with a rival gang on South Genesee Street in New Haven. Although approximately 30 shots were fired during the incident, no one was injured. He also admitted that, on May 30, 2012, he and others, armed with firearms, committed a home invasion robbery of a residence located on Putnam Street in New Haven, during which they threatened the residents and removed a safe containing an amount of cash from the home.
JACKSON also participated in the trafficking of crack cocaine in Connecticut and Maine, and he sold crack in Maine in exchange for firearms that he and others transported to Connecticut.
This investigation has been conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Gabonese-French Dual Citizen Sentenced to 24 Months Imprisonment for Bribing African OfficialsRead the Press Release
A dual citizen of Gabon and France was sentenced to 24 months in prison for his role in a conspiracy to pay bribes to senior government officials across Africa, in violation of the Foreign Corrupt Practices Act (FCPA).
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget Rohde of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Acting Special Agent in Charge Ronald L. Whitsett of Internal Revenue Service-Criminal Investigation (IRS-CI)’s New York office made the announcement.
Samuel Mebiame, 43, who resided in Paris prior to his arrest, was sentenced by U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York. Mebiame pleaded guilty on Dec. 9, 2016, to one count of conspiracy to violate the FCPA.
According to admissions made at his plea hearing, Mebiame formed a conspiracy to provide improper benefits to government officials in multiple countries in Africa. Mebiame admitted that the improper benefits he provided were intended to influence the performance of official governmental duties, and that he took steps to further the conspiracy while physically in New York. Based on court documents, Mebiame worked as a “fixer” on behalf of a joint venture company owned by New-York-based hedge fund Och-Ziff Capital Management Group LLC (Och-Ziff) and its business partner, a Turks and Caicos Islands-registered corporate entity controlled by a co-conspirator. In that role, Mebiame traveled extensively across Africa, Europe and the U.S. and routinely made bribe payments to senior government officials in Africa. Mebaime’s plea documents indicated that at least five senior officials in three countries, Niger, Chad and Guinea, received corrupt payments and various illicit benefits from Mebiame. The officials, each of whom could influence the award of mining, oil and mineral concessions in their countries, received either cash payments, luxury vehicles or extravagant travel including the private rental of an Airbus jet. The bribes paid by Mebiame to the officials were often masked through additional intermediaries or attorneys.
According to court documents, in Niger, Mebiame paid more than $3 million in bribes to a high-ranking government official both directly and through intermediary agents who were selected by the Nigerien official. Mebiame also made payments for luxury cars for that foreign official and directed a $100,000 donation to a charity run by a government official. In return, Mebiame obtained licenses for uranium concessions for the joint venture from the government of Niger. Similarly, in Chad, Mebiame bribed a high-ranking government official with cash payments and luxury foreign travel for the official and the official’s wife. In return, Mebiame obtained uranium concessions for the joint venture, including rights to an asset which had been stripped by the Chadian government, at Mebiame’s urging, from a French-owned company. In Guinea, during a time when the conspirators were seeking to establish a state-owned mining company there, Mebiame made corrupt payments to gain special access to senior Guinean government officials. Mebiame provided the officials with cash and other benefits, including an S-Class Mercedes Benz vehicle and the use of private planes, in exchange for special access and confidential information.
Mebiame’s plea documents indicate that Mebiame repeatedly traveled to the United States between 2007 and 2015, the period of the criminal acts, and used facilities in both New York and Florida to further the conspiracy. Among other activities undertaken by Mebiame cited in court papers, he met with co-conspirators in New York, received funds from co-conspirators to U.S. bank accounts he controlled, and had telephone calls and email correspondence about the scheme.
Following Mebiame’s arrest in Brooklyn last August, as part of the government’s broader investigation, Och-Ziff was charged in September 2016 with violations of the FCPA’s anti-bribery, books and records, and accounting controls provisions for conduct in Libya and the Democratic Republic of Congo, and conduct in Chad and Niger connected to Mebiame and his co-conspirators’ conduct. Och-Ziff entered into a deferred prosecution agreement in connection with those charges. An Och-Ziff subsidiary company, OZ Africa Management GP LLC pleaded guilty to a one-count criminal information related to the payment of extensive bribes in the Democratic Republic of Congo.
The FBI’s New York Field Office and IRS-CI New York investigated the case. Trial Attorney James P. McDonald and Assistant Chief Leo R. Tsao of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys James P. Loonam, Jonathan P. Lax and David Pitluck of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The U.S. Securities and Exchange Commission’s Boston Regional Office provided significant cooperation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Gabonese-French Dual Citizen Sentenced to 24 Months Imprisonment for Bribing African OfficialsRead the Press Release
Earlier today, Samuel Mebiame, a dual citizen of Gabon and France, was sentenced to 24 months in prison for his role in a conspiracy to pay bribes to senior government officials across Africa, in violation of the Foreign Corrupt Practices Act (FCPA).
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; Kenneth Blanco, Acting Assistant Attorney General for the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office.
Mebiame, who resided in Paris prior to his arrest, was sentenced by United States District Judge Nicholas G. Garaufis. Mebiame pleaded guilty, on December 9, 2016, to one count of conspiracy to violate the FCPA.
According to admissions made at his plea hearing, Mebiame was part of a conspiracy to provide improper benefits to government officials in multiple countries in Africa. Mebiame admitted that the improper benefits he provided were intended to influence the performance of official governmental duties, and that he took steps to further the conspiracy while physically present in New York City. Based on court documents, Mebiame worked as a “fixer” on behalf of a joint venture company owned by New-York-based hedge fund Och-Ziff Capital Management Group LLC (Och-Ziff) and its business partner, a Turks and Caicos Islands-registered corporate entity controlled by a co-conspirator. In that role, Mebiame traveled extensively across Africa, Europe, and the United States and routinely made bribe payments to senior government officials in Africa. Mebaime’s plea documents indicated that at least five senior officials in three countries, Niger, Chad, and Guinea, received corrupt payments and various illicit benefits from Mebiame. The officials, each of whom could influence the award of mining, oil, and mineral concessions in their countries, received either cash payments, luxury vehicles, or extravagant travel, including the private rental of an Airbus jet. The bribes paid by Mebiame to the officials were often disguised through additional intermediaries or attorneys.
According to court documents, in Niger, Mebiame paid more than $3 million in bribes to a high-ranking government official both directly and through intermediary agents who were selected by one of the Nigerien officials. Mebiame also made payments for luxury cars for that foreign official and directed a $100,000 donation to a charity run by a government official. In return, Mebiame obtained licenses for uranium concessions for the joint venture from the government of Niger. Similarly, in Chad, Mebiame bribed a high-ranking government official with cash payments and luxury foreign travel for the official and the official’s wife. In return, Mebiame obtained uranium concessions for the joint venture, including rights to an asset that had been stripped by the Chadian government, at Mebiame’s urging, from a French-owned company. In Guinea, during a time when the conspirators were seeking to establish a state-owned mining company there, Mebiame made corrupt payments to gain special access to senior Guinean government officials. Mebiame provided the officials with cash and other benefits, including an S-Class Mercedes Benz vehicle and the use of private planes, in exchange for special access and confidential information.
Mebiame’s plea documents indicate that Mebiame repeatedly traveled to the United States between 2007 and 2015, the period of the criminal acts, and used facilities in both New York and Florida to further the conspiracy. Among other activities undertaken by Mebiame cited in court papers, he met with co-conspirators in New York, received funds from co-conspirators to U.S. bank accounts he controlled, and had telephone calls and email correspondence about the scheme.
Following Mebiame’s arrest in Brooklyn last August, as part of the government’s broader investigation, Och-Ziff was charged in September 2016 with violations of the FCPA’s anti-bribery, books and records, and accounting controls provisions for conduct in Libya and the Democratic Republic of Congo, and conduct in Chad and Niger connected to Mebiame and his co-conspirators’ conduct. Och-Ziff entered into a deferred prosecution agreement in connection with those charges. An Och-Ziff subsidiary company, OZ Africa Management GP LLC, pleaded guilty to a one-count criminal information related to the payment of extensive bribes in the Democratic Republic of Congo.
The government’s case is being handled by the U.S. Attorney’s Office Business and Securities Fraud Section, and the Foreign Corrupt Practices Act Unit of the Department of Justice, Fraud Section. Assistant United States Attorneys James P. Loonam, Jonathan P. Lax, and David Pitluck, and Department of Justice Fraud Section Assistant Chief Leo R. Tsao, and Trial Attorney James P. McDonald are in charge of the prosecution. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The U.S. Securities and Exchange Commission’s Boston Regional Office provided significant cooperation.
The Defendant:
SAMUEL MEBIAME
Age: 43
Libreville, Gabon
Fulton County Contract Supplier Sentenced to Probation, Fined and Ordered to Pay Restitution for Giving Kickbacks Tied to Construction of the Fulton County Detention CenterRead the Press Release
PADUCAH, Ky. – A Fulton County, Kentucky, business owner and contract supplier was sentenced today, in United States District Court, before Senior Judge Thomas B. Russell for his role in a conspiracy to defraud Fulton County citizens, through kickbacks and concealment of costs associated with work performed on the 2015 Fulton County Detention Center expansion, announced United States Attorney John E. Kuhn, Jr.
Michael Homra, 80, was sentenced to serve two years of probation, ordered to pay a $10,000 fine, and pay $32,500 in restitution.
Homra pled guilty on January 20, 2017, to three charges including Honest Services Wire Fraud and Wire Fraud for his role in a conspiracy that involved then Fulton County Jailer Ricky D. Parnell and others between April 2015 and August 2016.
Homra is the owner of The Leader Store located in Fulton, Kentucky. His company often sold building materials to Fulton County as part of the Detention Center expansion project. Homra allowed Parnell to use The Leader Store as a middleman company for building supplies ordered during the project and paid Parnell cash kickbacks while the project was ongoing.
The agreement between Homra and Parnell was for Parnell to inflate prices that The Leader Store charged Fulton County for purchases and then for Homra to pay Parnell 50% of the profits from these purchases. Homra would pay Parnell with cash and paid Parnell between $10,000 and $25,000.
Further, Homra knowingly and voluntarily agreed and conspired with Parnell to give Parnell cash kickbacks, both as a favor to Parnell and so that Parnell would continue to use The Leader Store as a supplier for the Fulton County Detention Center. As part of their kickback scheme, Fulton County paid The Leader Store by check in amounts of $54,364.00 and $66,530.58.
Homra was charged by grand jury indictment, with co-defendants Ricky D. Parnell, of Hickman, Kentucky; Ronald D. Armstrong, of Dresden, Tennessee; Jimmy Boyd, of South Fulton, Tennessee; and Daniel C. Larcom, of Union City, Tennessee, on November 15, 2016. Parnell, Armstrong, and Larcom have entered guilty pleas and await sentencing.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
Fort Yates Woman Sentenced for Child Neglect and AbuseRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on May 30, 2017, Shayla Left Hand, 22, Fort Yates, ND, was sentenced before Chief US District Judge Daniel L. Hovland to serve a total of 20 years in prison and five (5) years of supervised release. On February 8, 2017, Left Hand pled guilty to an Information charging her with four counts of Child Neglect in Indian Country and one count of Child Abuse in Indian Country. Judge Hovland further ordered Left Hand to pay a $500 special assessment to the Crime Victims’ Fund, as well as pay restitution in the amount of $72,305.14.
Law enforcement were dispatched to the residence of Shayla Left Hand and Calvin Crow Eagle; upon entering the residence, law enforcement located a four-year-old-male child that they could see had severe burns covering his body. The child was immediately transported to Indian Health Services (IHS) where doctors found that a significant portion of the boy’s body had second or third-degree burns and that the child could possibly die. It was further noted that the boy suffered from malnutrition, in addition to observing other signs of physical abuse. The child was transported by air ambulance to a burn unit located in Minnesota where he received treatment for his injuries. Left Hand subsequently admitted to pouring scalding water on the boy because the boy messed his pants. Left Hand did not seek any medical treatment for the boy’s injuries for approximately five days, which was when law enforcement located the boy at the residence. Further investigation revealed that Left Hand would leave the four-year-old boy, along with another three-year-old child, locked in the home with a padlock while away from the residence.
Sentencing for co-defendant Calvin Crow Eagle is scheduled for June 19, 2017, at 10:00a.m.
This case was investigated by the Bureau of Indian Affairs-Standing Rock and the Federal Bureau of Investigation-Bismarck.
Assistant US Attorney Brandi Sasse Russell prosecuted the case.
Fort Wayne Man Convicted by Jury TrialRead the Press Release
FORT WAYNE – Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Larry Norton, age 66, of Fort Wayne, Indiana was convicted of conspiracy to distribute and possess with intent to distribute heroin and cocaine, after a six-day jury trial, before United States District Court Chief Judge Theresa L. Springmann.
According to documents filed in this case, Norton and four other individuals conspired to distribute and possess with intent to distribute over 1 kilogram of heroin along with over 5 kilograms of cocaine in the Northern District of Indiana and elsewhere between October 2014 and January 2015. The other four defendants named in the indictment previously pled guilty and are awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, and the FBI Fort Wayne Safe Streets Task Force which includes the Allen County Sheriff’s Department, Fort Wayne Police Department, and the Indiana State Police. This case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Stacey Speith.
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Former Tufts Health Plan Employee Sentenced for Disclosing Personal Patient InformationRead the Press Release
BOSTON – A former employee of Tufts Health Plan was sentenced today in federal court in Boston for stealing personal identifying information belonging to hundreds of customers. The stolen data included names, dates of birth, and Social Security numbers, primarily of customers over the age of 65.
Emeline Lubin, 30, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three months in prison, three years of supervised release with the first nine months to be served in home confinement, and approximately $52,000 in restitution. In August 2014, Lubin pleaded guilty to the unlawful disclosure of Social Security numbers.
In 2010, Lubin began working at Tufts Health Plan in Watertown. During her employment, she gave lists of customers’ personal identification information to a Florida man, Sniders Jean-Jacques, who was involved with her brother, Marvin Lubin, in a scheme to steal Social Security benefits and to collect fraudulent income tax refunds by using stolen identities to file false income tax returns. Emeline Lubin stole and disclosed the personal data of over 8,700 customers.
In December 2014, Jean-Jacques was sentenced to two years in prison. In October 2014, Marvin Lubin was sentenced to one year and one day in prison.
Acting United States Attorney William D. Weinreb; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Robert Richardson of Weinreb’s Major Crimes Unit prosecuted the case.
Former School Teacher Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Steven Choi, 42, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to time served and 15 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that the FBI’s Child Exploitation Task Force identified the defendant accessing child pornography online. A forensic examination of that computer recovered sexually explicit photographs of prepubescent girls. Choi is no longer an English teacher with the Holley Central School District.
The sentencing is the culmination of an investigation by Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, and the Greece Police Department.
Former Puerto Rico Senator and Businessman Found Guilty of BriberyRead the Press Release
Former Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of one of the largest private security companies in Puerto Rico, were convicted of bribery following a four-week trial in San Juan, Puerto Rico, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Martinez Maldonado, 48, of Carolina, Puerto Rico, and Bravo Fernandez, 62, of San Juan, were each convicted on May 31, 2017, of federal program bribery.
According to evidence presented at trial, Martinez Maldonado was elected to the Puerto Rico Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Beginning in 2005, Martinez Maldonado served as Chairman of the Puerto Rico Public Safety Committee, exercising significant control over legislation related to security and community safety. Bravo Fernandez was the president and chief executive officer of Ranger American, one of the largest private security firms in Puerto Rico.
The jury convicted the defendants for their role in a bribery scheme in which Bravo Fernandez provided Martinez Maldonado and Jorge de Castro Font, another former Puerto Rico senator, with a trip to Las Vegas to watch a championship boxing match between Winky Wright and Felix “Tito” Trinidad, a legendary Puerto Rican boxer, in exchange for the senators’ help with legislation favorable to Bravo Fernandez’s business interests.
Documents and evidence presented at trial showed that the trip to Las Vegas included first-class airfare; hotel rooms at the Mandalay Bay Resort and Casino; $1,000 tickets to the Trinidad vs. Wright boxing match; and meals, drinks and hotel rooms in Miami for the return trip. On March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills favorable to Bravo Fernandez for consideration by the Puerto Rico Senate. The evidence at trial also showed that the hotel reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing for one of the bills, and that, the day after the three men returned from their trip to Las Vegas, Martinez Maldonado and de Castro Font both cast their vote in support of one of Bravo Fernandez’s bills in the Senate.
De Castro Font served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He was sentenced on May 17, 2011, to 60 months in prison.
The case is being prosecuted by Deputy Chief Peter Koski and Trial Attorneys Monique Abrishami and Gwendolyn Stamper of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI’s San Juan Office.
Former Owner of Nashville Motor Cars Pleads Guilty to Conspiracy to Commit Bank and Wire FraudRead the Press Release
Randl Arthur Roth, 48, of Murfreesboro, Tennessee, the former owner of Murfreesboro-based Nashville Motor Cars Premier car dealership, pleaded guilty today in U.S. District Court, to conspiracy to commit bank and wire fraud for his role in a conspiracy to defraud his dealership’s customers and business partners, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Roth was charged in a criminal information on April 3, 2017.
According to the charging document and plea agreement, beginning in May 2014, Roth and two co-conspirators, who were employed at Nashville Motor Cars, devised a scheme to defraud their customers, the banks that financed their customers’ car purchases, as well as individuals and companies that financed their inventory. In furtherance of their scheme, Roth and his co-conspirators told numerous customers and their banks that Nashville Motor Cars had clean titles to the cars they sold when, in fact, Roth knew that there were existing liens on those cars. These misrepresentations induced the customers to purchase the cars and the banks to finance the purchases.
On numerous occasions during the same period, Roth and his co-conspirators told private inventory financiers that they possessed certain cars in order to gain additional credit, when, in fact, they had already sold the cars in question. These fraudulent representations led the Roth’s business partners to believe that the credit they extended to Nashville Motor Cars was secured by cars on the lot, when, in fact, those cars had already been sold.
Roth also submitted fraudulent, duplicate car title applications to the Rutherford County Clerk’s Office and provided a copy of the applications or duplicate titles to the dealership’s inventory financiers. Finally, Roth admits in the plea agreement that the financial loss he caused was in excess of $550,000.
Roth faces up to 30 years in prison and a $1,000,000 fine. He will be sentenced by Chief United States District Judge Waverly D. Crenshaw, Jr. on September 18, 2017. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation with assistance from the Murfreesboro Police Department and the Tennessee Highway Patrol Criminal Investigation Division. Assistant U.S. Attorney Henry C. Leventis is prosecuting the case.
Former Miami-Dade County Resident Who Engaged in “Sextortion” Sentenced to 225 Months in PrisonRead the Press Release
After pleading guilty to producing child pornography, a former Miami-Dade County resident was sentenced yesterday by U.S. District Court Judge Marcia G. Cooke to 225 months (19 years) in prison, to be followed by twenty-five years of supervised release.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Justin Shawn Smith, 35, formerly of Miami Beach, pled guilty on February 8, 2017, to two counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a).
The investigation began when ICE-HSI received a tip from the Cyber Crime Center, via INTERPOL London, that an 11-year-old girl in London reported that a 13-year-old boy named “Cody Mathews” convinced her to commit sexually provocative acts on the video-chat internet program Skype. The victim stated that she met “Cody” on the website kidschat.net. HSI identified Smith as the user of the “Cody Mathews” moniker.
Smith acknowledged that he pretended to be 13 years old while chatting on the website kidschat.net using various usernames. Forensic examination of Smith’s computer revealed an extensive chat history within the Skype program, showing that Smith engaged in hundreds of chats with different minor females using various aliases. HSI identified approximately 31 potential victims Smith chatted with in the United States and interviewed approximately 19, who were between the ages of 7 and 14 at the time they chatted with Smith. Generally, Smith would convince the minor girls to undress and to engage in sexually explicit conduct with a sibling or pet. Smith would often threaten the minor girls, stating that he would publish their nude photos or tell their parents if they did not do what he wanted.
Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. ICE-HSI aggressively investigates allegations of sextortion and other online offenses against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of ICE-HSI, the Florida Department of Law Enforcement, and INTERPOL. The case was prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Ben Widlanski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Berkshire Power Manager Sentenced for Conspiring to Tamper with Air Pollution MonitorsRead the Press Release
BOSTON – The former operations and maintenance manager of Berkshire Power Plant in Agawam, Mass., was sentenced yesterday for tampering with environmental monitors in violation of the Clean Air Act.
Fred Baker, 53, of Southampton, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 30 months of probation and ordered to pay a fine of $5,000. In May 2016, Baker pleaded guilty to three counts of violating the Clean Air Act and conspiracy.
Acting United States Attorney William D. Weinreb stated, “This case demonstrates our continued commitment to protect our natural resources and to hold accountable those who subvert environmental protections for profit.”
“This defendant engaged in a scheme to defraud energy and environmental regulations for his own profit,” said Attorney General Maura Healey. “We will vigorously defend laws and regulations put in place to protect the air we breathe and public health and safety.”
“Baker schemed with others to undermine a system that depends on honest data reporting -- resulting in an unfair competitive advantage over responsible companies,” said Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division in Boston. “EPA will continue to pursue cases that maintain data integrity, so we can do our job to protect clean air.”
“MassDEP inspectors and enforcement personnel worked closely with our state and federal enforcement partners to detect the scheme to subvert important and mandatory air quality reporting requirements and follow up with strong action, ” said MassDEP Commissioner Martin Suuberg. “The requirements for accurate monitoring and reporting are essential to protecting public health, and those who circumvent these important regulations will be held accountable for their actions.”
From 2008 to March 2011, Baker, at the direction of the Berkshire Power Plant’s General Manager, instructed employees at the plant to tamper with the plant’s Continuous Emissions Monitoring System (CEMS). The CEMS is an environmental monitoring system, required by federal laws and permits, which continuously samples a power plant’s emissions and measures and records the concentration of regulated pollutants to monitor compliance with pollution emission limits. The purpose of the tampering was to delay repairs and avoid reporting to federal and state regulators that the plant was, at times, releasing certain pollutants, specifically nitrogen oxides, in excess of the plant’s Clean Air Act permit limits.
Initially, the tampering involved lowering monitors by a constant rate – approximately .5 parts per million (ppm) below the known value. These constant adjustments did not trigger any alarms or warnings and were thus usually maintained in the system through approximately mid-March 2011.
In the summer of 2009 and 2010 the plant underwent an independent annual audit. Prior to the audit, Baker instructed another employee to take out the adjustments in the CEMS monitors and to re-introduce them after the audit. Berkshire Power Plant reported the results of the audit to the Massachusetts Department of Environmental Protection and the United States Environmental Protection Agency.
By 2010, this .5 ppm adjustment was not sufficient enough to allow the plant to run at full power and comply with the facility’s Clean Air Act permit. Rather than making necessary repairs, the General Manager and Baker instructed employees to lower the CEMS readings even more to avoid reporting pollution emissions in excess of the hourly limits or hitting warning levels.
In 2015, the Berkshire Power Plant was charged jointly by the U.S. Attorney’s Office and the Massachusetts Attorney General’s Office for tampering with its air pollution monitoring equipment and falsely reporting data to environmental and energy regulators regarding its emissions levels and its availability to produce power.
In March 2017, Berkshire Power Company and Power Plant Management Services, the owners and operators of the plant, respectively, were ordered to pay $7.25 million in fines, penalties and other payments for their role in tampering with air pollution emissions equipment. The strument and Control Technician at the plant, Scott Paterson, pleaded guilty and is scheduled to be sentenced on June 8, 2017.
Acting U.S. Attorney Weinreb, Massachusetts Attorney General Healey, EPA SAC Amon, and Massachusetts DEP Commissioner Suuberg, made the announcement today. Assistance with the investigation was provided by the Massachusetts Environmental Crimes Strike Force (an interagency investigative team dedicated to developing the most significant environmental enforcement cases) and the Massachusetts Environmental Police. Assistant U.S. Attorney Sara Miron Bloom of Weinreb’s Criminal Division prosecuted the federal case with the assistance of Dianne Chabot, USEPA Criminal Enforcement Counsel, and the Massachusetts Department of Environmental Protection.
Former Bemidji Assistant Principal Arrested on Federal Child Sexual Exploitation ChargesRead the Press Release
Acting United States Attorney Gregory G. Brooker announced a federal criminal complaint charging BRANDON MARK BJERKNES, 34, with production and distribution of child pornography and attempted coercion and enticement of a minor. BJERKNES, who was taken into custody on May 30, 2017, made his initial appearance earlier today in U.S. District Court in St. Paul, Minn.
According to the criminal complaint and documents filed in court, since 2006, BJERKNES was employed by the Bemidji Area Schools and, for the past three years, served as the Assistant Principal of Bemidji Middle School until his resignation in April 2017. While holding the position of Assistant Principal, BJERKNES posed as a 13-15-year-old male named “Brett Larson,” and used various social media profiles on Facebook and Snapchat with “decoy photographs” to contact minor females and males in middle and high school. Using the alias profiles, BJERKNES directed the minor victims to send him sexually explicit photographs. BJERKNES also used the alias profiles to engage in sexually explicit conversations with the minor victims. Some of the minor victims BJERKNES contacted on social media were students at Bemidji Middle School.
According to the criminal complaint and documents filed in court, on March 20, 2017, law enforcement executed a search warrant at BJERKNES’ Bemidji residence. Officers seized a number of electronic devices including BJERKNES’ personal iPhone and work iPhone, multiple iPads, computers and external hard drives. The social media accounts and the electronic devices contained multiple sexually explicit photos and videos of multiple known minor victims. The forensic review is ongoing. To date, law enforcement has identified evidence that BJERKNES used the alias social media accounts to contact more than 50 minor victims.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Beltrami County Sheriff's Office.
Based on the evidence obtained in this case, authorities believe there may be additional victims of this alleged conduct. Anyone with information about this matter is encouraged to call the Beltrami County Sheriff’s Office at 218-333-9111. Callers may remain anonymous.
This case is being prosecuted by Assistant United States Attorney Angela Munoz-Kaphing.
Defendant Information:
BRANDON MARK BJERKNES, 34
Bemidji, Minn.
Charges:
- Production of child pornography, 2 counts
- Distribution of child pornography, 1 count
- Attempted coercion and enticement of a minor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Electronic Health Records Vendor to Pay $155 Million to Settle False Claims Act AllegationsRead the Press Release
One of the nation’s largest vendors of electronic health records software, eClinicalWorks (ECW), and certain of its employees will pay a total of $155 million to resolve a False Claims Act lawsuit alleging that ECW misrepresented the capabilities of its software, the Justice Department announced. The settlement also resolves allegations that ECW paid kickbacks to certain customers in exchange for promoting its product. ECW is headquartered in Westborough, Massachusetts.
“Every day, millions of Americans rely on the accuracy of their electronic health records to record and transmit their vital health information,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “This resolution is a testament to our deep commitment to public health and our determination to hold accountable those whose conduct results in improper payments by the federal government.”
The American Recovery and Reinvestment Act of 2009 established the Electronic Health Records (EHR) Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) offers incentive payments to healthcare providers that adopt certified EHR technology and meet certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR software must attest that their product satisfies applicable HHS-adopted criteria and pass testing by an accredited independent certifying entity approved by HHS.
In its complaint-in-intervention, the government contends that ECW falsely obtained that certification for its EHR software when it concealed from its certifying entity that its software did not comply with the requirements for certification. For example, in order to pass certification testing without meeting the certification criteria for standardized drug codes, the company modified its software by “hardcoding” only the drug codes required for testing. In other words, rather than programming the capability to retrieve any drug code from a complete database, ECW simply typed the 16 codes necessary for certification testing directly into its software. ECW’s software also did not accurately record user actions in an audit log and in certain situations did not reliably record diagnostic imaging orders or perform drug interaction checks. In addition, ECW’s software failed to satisfy data portability requirements intended to permit healthcare providers to transfer patient data from ECW’s software to the software of other vendors. As a result of these and other deficiencies in its software, ECW caused the submission of false claims for federal incentive payments based on the use of ECW’s software.
“This settlement is the largest False Claims Act recovery in the District of Vermont and we believe the largest financial recovery in the history of the State of Vermont,” said Acting U.S. Attorney Eugenia A.P. Cowles for the District of Vermont. “This significant recovery is a testament to the hard work and dedication of this office and our partners in the Commercial Litigation Branch of the Civil Division and at HHS. This resolution demonstrates that EHR companies will not succeed in flouting the certification requirements.”
Under the terms of the settlement agreements, ECW and three of its founders (Chief Executive Officer Girish Navani, Chief Medical Officer Rajesh Dharampuriya, M.D., and Chief Operating Officer Mahesh Navani) are jointly and severally liable for the payment of $154.92 million to the United States. Separately, Developer Jagan Vaithilingam will pay $50,000, and Project Managers Bryan Sequeira, and Robert Lynes will each pay $15,000.
As part of the settlement, ECW entered into a Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative five-year CIA requires, among other things, that ECW retain an Independent Software Quality Oversight Organization to assess ECW’s software quality control systems and provide written semi-annual reports to OIG and ECW documenting its reviews and recommendations. ECW must provide prompt notice to its customers of any safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires ECW to allow customers to obtain updated versions of their software free of charge and to give customers the option to have ECW transfer their data to another EHR software provider without penalties or service charges. ECW must also retain an Independent Review Organization to review ECW’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute.
“Electronic health records have the potential to improve the care provided to Medicare and Medicaid beneficiaries, but only if the information is accurate and accessible,” said Special Agent in Charge Phillip Coyne of HHS-OIG. “Those who engage in fraud that undermines the goals of EHR or puts patients at risk can expect a thorough investigation and strong remedial measures such as those in the novel and innovative Corporate Integrity Agreement in this case.”
The settlement with ECW resolves allegations in a lawsuit filed in the District of Vermont by Brendan Delaney, a software technician formerly employed by the New York City Division of Health Care Access and Improvement. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Mr. Delaney will receive approximately $30 million.
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Vermont, the HHS Office of Inspector General, and multiple HHS agencies and components.
The case is captioned United States ex rel. Delaney v. eClinialWorks LLC, 2:15-CV-00095-WKS (D. Vt.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Electronic Health Records Vendor to Pay the Largest Settlement in the District of VermontRead the Press Release
BURLINGTON, VT – One of the nation’s largest vendors of electronic health records (EHR) software, eClinicalWorks (ECW), and certain of its employees will pay a total of $155 million to resolve a False Claims Act lawsuit alleging that ECW misrepresented the capabilities of its software, the Justice Department announced. The settlement also resolves allegations that ECW paid kickbacks to certain customers in exchange for promoting its product. ECW is headquartered in Westborough, Massachusetts.
“This settlement is the largest False Claims Act recovery in the District of Vermont and we believe the largest financial recovery in the history of the State of Vermont,” said Acting United States Attorney for the District of Vermont Eugenia A.P. Cowles. “This significant recovery is a testament to the hard work and dedication of this office and our partners in the Commercial Litigation Branch of the Civil Division and at HHS. This resolution demonstrates that EHR companies will not succeed in flouting the certification requirements.”
The American Recovery and Reinvestment Act of 2009 established the Electronic Health Records (EHR) Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) offers incentive payments to healthcare providers who adopt certified EHR technology and meet certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR software must attest that their software satisfies applicable HHS-adopted criteria and pass testing by an accredited, independent, HHS-approved certifying entity.
In its complaint-in-intervention, the government contends that ECW falsely obtained that certification for its EHR software when it concealed from its certifying entity that its software did not comply with the requirements for certification. For example, in order to pass certification testing without meeting the certification criteria for standardized drug codes, the company modified its software by “hardcoding” only the drug codes required for testing. In other words, rather than programming the capability to retrieve any drug code from a complete database, ECW simply typed the 16 codes necessary for certification testing directly into its software. ECW’s software also did not accurately record user actions in an audit log, and in certain situations did not reliably record diagnostic imaging orders or perform drug interaction checks. In addition, ECW’s software failed to satisfy data portability requirements intended to permit healthcare providers to transfer patient data from ECW’s software to the software of other vendors. As a result of these and other deficiencies in its software, ECW caused the submission of false claims for federal incentive payments based on the use of ECW’s software.
“Every day, millions of Americans rely on the accuracy of their electronic health records to record and transmit their vital health information,” said Acting Assistant Attorney General for the Civil Division of the Department of Justice Chad A. Readler. “This resolution is a testament to our deep commitment to public health and our determination to hold accountable those whose conduct results in improper payments by the federal government.”
Under the terms of the settlement agreement, ECW and three of its founders (Chief Executive Officer Girish Navani, Chief Medical Officer Rajesh Dharampuriya, M.D., and Chief Operating Officer Mahesh Navani) are jointly and severally liable for the payment of $154,920,000 to the United States. Separately, Developer Jagan Vaithilingam will pay $50,000, and Project Managers Bryan Sequeira, and Robert Lynes will each pay $15,000.
As part of the settlement, ECW entered into a Corporate Integrity Agreement (CIA) with the HHS Office of Inspector General (HHS-OIG) covering the company’s EHR software. This innovative 5-year CIA requires, among other things, that ECW retain an Independent Software Quality Oversight Organization to assess ECW’s software quality control systems and provide written semi-annual reports to OIG and ECW documenting its reviews and recommendations. ECW must provide prompt notice to its customers of any safety related issues and maintain on its customer portal a comprehensive list of such issues and any steps users should take to mitigate potential patient safety risks. The CIA also requires ECW to allow customers to obtain updated versions of their software free of charge and to give customers the option to have ECW transfer their data to another EHR software provider without penalties or service charges. ECW must also retain an Independent Review Organization to review ECW’s arrangements with health care providers to ensure compliance with the Anti-Kickback Statute.
“Electronic health records have the potential to improve the care provided to Medicare and Medicaid beneficiaries, but only if the information is accurate and accessible,” said Special Agent in Charge Phillip Coyne of HHS-OIG. “Those who engage in fraud that undermines the goals of EHR or puts patients at risk can expect a thorough investigation and strong remedial measures such as those in the novel and innovative Corporate Integrity Agreement in this case.”
The settlement with ECW resolves allegations in a lawsuit filed in the District of Vermont by Brendan Delaney, a software technician formerly employed by the New York City Division of Health Care Access and Improvement. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Mr. Delaney will receive approximately $30 million.
This matter was jointly handled by Assistant United States Attorneys Owen C.J. Foster and Nikolas P. Kerest of the U.S. Attorney’s Office for the District of Vermont, Kelley Hauser and Edward Crooke of the Commercial Litigation Branch of the Civil Division, the HHS Office of Inspector General, and multiple HHS agencies and components.
The case is captioned United States ex rel. Delaney v. eClinialWorks LLC, 2:15-CV-00095-WKS (D. Vt.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
East Bay Resident Charged with Insider Trading in Ross Stores SecuritiesRead the Press Release
OAKLAND – Saleem Mohammad Khan was arrested today following an indictment by a federal grand jury in San Francisco charging him with conspiracy and seven counts of securities fraud, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment unsealed this morning, Khan, 53, of Dublin, Calif., is alleged to have participated in an insider trading scheme in which an unnamed co-conspirator provided Khan with confidential, non-public, material, inside information about the financial performance of Ross Stores, Inc., then headquartered in Pleasanton, Calif. Using the information, Khan allegedly bought and sold securities issued by Ross Stores traded on the NASDAQ stock exchange. Khan sometimes tried to conceal this scheme to defraud by using the brokerage accounts of one or more third persons. According to the indictment, between in or about August 2009 and late 2012, Khan and others generated illegal profits in excess of $8.2 million as a result of this insider trading scheme. Khan is charged with one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 1349, and seven counts of securities fraud, in violation of 18 U.S.C. § 1348.
Khan was arrested this morning in Dublin, and made his initial appearance in federal court in Oakland today before U.S. Magistrate Judge Kandis A. Westmore. Magistrate Judge Westmore released Khan on a $300,000 bond and scheduled further hearings, including arraignment, before U.S. Magistrate Judge Donna Ryu for June 7, 2017.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 25 years in prison, and a fine of $250,000 for each count of conviction, plus restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Kyle F. Waldinger and Adam A. Reeves are prosecuting the case with the assistance of Allen Williams and Bridget Kilkenny. The prosecution is the result of a five year investigation by the FBI and United States Securities and Exchange Commission.
Drug Trafficking Organization Faces Indictment for Involvment in Manufacturing Fake Prescriptions Drugs with FentanylRead the Press Release
SALT LAKE CITY – A federal grand jury returned a superseding indictment Wednesday morning charging six individuals in what the indictment alleges is an international drug trafficking organization involved in manufacturing fake prescription drugs made from Fentanyl. Hundreds of thousands of the fake pills were then distributed throughout Utah and the United States to customers who had ordered pills from their dark net online store.
Charged in the indictment are Aaron Michael Shamo, age 27, of Cottonwood Heights, Utah; Drew Wilson Crandall, age 30, of Brisbane, Australia; Alexandrya Marie Tonge, age 25, and Katherine Lauren Ann Bustin, age 26, both of South Jordan; and Mario Anthony Noble, age 28, and Sean Michael Gygi, age 27, both of Midvale.
Announcing today’s indictment are U.S. Attorney John W. Huber, DEA District Agent in Charge Brian S. Besser, Homeland Security Investigations Special Agent in Charge John Eisert, IRS Criminal Investigation Special Agent in Charge Tara Sullivan, FDA Office of Criminal Investigations Special Agent in Charge Spencer E. Morrison, and Jared Bingham, U.S. Postal Inspector and Team Leader for the Salt Lake City Postal Inspection Service.
According to documents filed in federal court, the organization began with Aaron Michael Shamo and Drew Wilson Crandall, but grew to include other co-conspirators. Shamo and Crandall, according to court records, purchased pill presses, dies and stamps to mark pills so the markings would match those of legitimate pharmaceutical drugs, and inert pill ingredients, such as binding agents and colors. Some items were purchased legally and others, such as Fentanyl and Alprazolam, were imported into the United States illegally, including from China. To avoid detection, Shamo and Crandall had many of their supplies shipped to nominees or straw purchasers.
The ingredients were then be pressed into pills that had the appearance of legitimate pharmaceuticals. The fake Oxycodone-type pills and the counterfeit Alprazolam tablets were sold on the dark net at a significant profit. Once sold, Shamo and Crandall used the co-conspirators to package the pills and ship them to customers. According to documents filed in court, the enterprise sold hundreds of thousands of pills in Utah and throughout the United States.
The indictment alleges that Shamo, working in concert with at least five other people, occupied a position of principal administrator, organizer, supervisor and leader of a continuing criminal enterprise, which involved possession with intent to distribute and distribution of more than 12,000 grams of a mixture and substance containing a detectable amount of Fentanyl, a controlled substance. The indictment further alleges that Shamo obtained substantial income and resources through the continuing series of violations. Count 1 of the indictment charges Shamo with knowingly and intentionally engaging in a continuing criminal enterprise.
Counts 2 through 9 and count 12 of the indictment charge various defendants in the case with alleged violations of federal law committed as predicate acts in support of the continuing criminal enterprise. The counts include conspiracy to distribute Fentanyl, conspiracy to distribute Alprazolam, aiding and abetting the importation of a controlled substance, possession of Fentanyl with intent to distribute, manufacture of Alprazolam, and use of the United States mail in furtherance of as drug trafficking offense.
Counts 10 and 11 of the indictment charge Shamo with knowing and intentional adulteration of drugs held for sale. The counts allege Shamo manufactured round blue tablets and offered those tables for sale on the internet as “Oxycodone 30 mg.” Count 10 alleges the tablets were debossed with “A 215” on the bisected side. Count 11 alleges the tablets were manufactured with an “” on one side and a “30” above the bisect on the other side. Such markings mimick the markings of legitimate Oxycodone tablets. Despite those representations, the indictment alleges the defendants did not use Oxycodone at all in the manufacturing process, but instead, substituted Fentanyl, a much more potent synthetic opioid. The indictment alleges the adulteration had a reasonable probability of causing serious adverse health consequences or death to humans.
The final three counts of the indictment allege conspiracy to commit money laundering, money laundering concealment and engaging in monetary transactions in property derived from specified unlawful activities. The indictment also includes a notice seeking criminal forfeiture of currency, automobiles, a pill press, and a variety of pill dies and punches used as a part of the alleged criminal enterprise.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Because of the volume of drugs involved in the case, Shamo faces mandatory life in prison if convicted of Count 1. The potential maximum penalty for Count 2 in the indictment, conspiracy to distribute Fentanyl, is life in prison with a mandatory minimum 10 years and a $10 million fine. The potential penalty for Count 3, conspiracy to distribute Alprazolam, is five years and a fine of $250,000. Count 4 and Count 6, aiding and abetting the importation of a controlled substance (Fentanyl) have potential penalties of 40 years with a mandatory minimum five years and a $5 million fine. The potential penalty for Count 5, aiding and abetting the importation of a controlled substance (Alprazolam) is five years and a fine of $250,000. Counts 7 and 8, possession of Fentanyl with intent to distribute, have potential penalties of life in prison with a mandatory minimum 10 years and a $10 million fine. Count 9, manufacture of Alprazolam, has a potential penalty of five years sand a fine of $250,000. The potential maximum penalty for Count 10 and 11, knowing and intentional adulteration of drugs while held for sale, is up to 20 years and a fine of $1 million. Count 12, use of the U.S. mail in furtherance of a drug trafficking offense, has a potential penalty of four years and a $250,000 fine. Money laundering Counts 13 and 14 have 20-year potential maximum penalties and fines of $250,000. The final count of the indictment, engaging in monetary transactions in property derived from specified unlawful activity, has a potential penalty of 10 years and a fine of $250,000.
Shamo was arrested on a federal complaint filed in November 2016 and remains in custody. Crandall was arrested in Hawaii on a federal complaint earlier this month. A summons will be issued to Tonge, Bustin, Noble and Gygi for initial appearances in federal court.
Assistant U.S. Attorney Vernon Stejskal and Special Assistant U.S. Attorney Michael Gadd are prosecuting the case. Special agents of Homeland Security Investigations, the DEA, IRS Criminal Investigation, FDA Office of Criminal Investigations, and U.S. Postal Inspectors are investigating the case.
Dauphin County Man Pleads Guilty to Armed Bank Robbery and Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Donell Williams, age 39, of Harrisburg, Pennsylvania, pled guilty on May 30, 2017, before Chief United States District Judge Christopher C. Conner to armed bank robbery and possession of a loaded firearm during and in relation to a crime of violence.
According to United States Attorney Bruce D. Brandler, on August 31, 2016, Williams entered the AmeriChoice Federal Credit Union, in Enola, Pennsylvania, with a loaded firearm and demanded money from the credit union’s employees. Williams fled with under $1,500 before becoming involved in a high speed chase with speeds up to 123 mph. At the end of the chase, Williams exited the vehicle and fled on foot. After a short foot chase, Williams was arrested and the loaded firearm used during the robbery and the money were recovered. Williams is a previously convicted felon and prohibited from possessing a firearm.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
The case was investigated by the Federal Bureau of Investigation and the East Pennsboro Township Police Department. The City of Harrisburg Bureau of Police assisted in Williams’ arrest. Assistant United States Attorney Daryl F. Bloom prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law, for Count one is 25 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The maximum penalty under federal law, for Count two is life imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Count two carries a mandatory consecutive term of imprisonment of seven years. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Convicted Felon Sentenced to 120Months in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Melvin Hutchieson, 29, was sentenced to 120 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on July 16, 2015, two men were repairing an air conditioner when the defendant robbed them at gunpoint. He took approximately $400 in cash and a Ruger .40 caliber pistol. The Ruger was reported stolen. During an unrelated drug investigation, Bartlett Police Department Detectives received information that Hutchieson was selling drugs and that he drove a gold Chevy Suburban.
On September 29, 2015, Bartlett detectives executed a search warrant for the Suburban and the residence where they believed the defendant was selling drugs. When the detectives arrived at the address to execute the warrants, they saw the defendant leaving in the Suburban. The detectives attempted to stop the Suburban, but the defendant continued to drive.
The defendant eventually stopped the car and was taken into custody. The detectives searched the Suburban and recovered a loaded Ruger.
Memphis Police Department detectives conducted a photographic lineup and the defendant was identified as the person who robbed the victims at gunpoint in July. The detectives also confirmed that the Ruger recovered in the Suburban was the weapon the defendant stole from the victims.
The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Bayonle Osundare prosecuted this case on the government’s behalf.
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Colombian Man Pleads Guilty to Escaping from Federal CustodyRead the Press Release
LUBBOCK, Texas — Juan Carlos Marin-Cardona, 47, a citizen and national of Columbia, appeared in federal court today and pleaded guilty, before U.S. Magistrate Judge E. Scott Frost, to escaping from federal custody in 1994, announced U.S Attorney John Parker of the Northern District of Texas.
Marin-Cardona, who has been in custody since his arrest in April 2017, faces a statutory penalty of not more than 5 years in federal prison and a $5,000 fine. His sentencing will be set at a later date.
According to plea documents filed in the case, on January 22, 1993, the United States District Court for the Southern District of Florida sentenced Juan Carlos Marin-Cardona to 70 months imprisonment for the felony offenses of importation of cocaine and possession with intent to distribute cocaine. Marin-Cardona was later transferred to federal custody at the Eden Detention Center in Eden, Texas.
On November 3, 1994, an Eden maintenance officer went to retrieve Marin-Cardona from the front of the institution but Marin-Cardona wasn’t there. The Eden Detention Center initiated a lockdown and emergency headcount. It was confirmed that Marin-Cardona was not in the Eden Detention Center and had left federal custody without permission. Marin-Cardona was placed on escape status.
Through a diligent investigation by the United States Marshals Service (USMS), deputies located Marin-Cardona living in a foreign county under the name Alexander Rey Marin Cardona. In March 2017, USMS deputies were ultimately able to apprehend Marin-Cardona in Houston, Texas, at the airport.
The United States Marshal Service and the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Charlotte Woman Pleads Guilty to Identity TheftRead the Press Release
CHARLOTTE, N.C. – Keniona Thomas, 24, of Charlotte, pleaded guilty to one count of identity theft for stealing the Personally Identifying Information (PII) of victims from the patient files of a Charlotte-area medical practice where she was employed, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
According to filed plea documents and today’s hearing, from in or about late 2014 through August 2016, Thomas provided the PII of more than 150 patients to her co-conspirator, Christopher Roach, who used the PII to make fraudulent purchases and to obtain fake driver’s licenses. According to court records, as an employee of the Charlotte medical practice, Thomas had access to patients’ PII, which included patient names, social security numbers, and dates of birth. Court records indicate that Roach paid Thomas ten dollars for each individual’s PII. As a result of the PII provided by Thomas, Roach and others obtained new credit card accounts and accessed existing accounts to defraud victims and banks of at least $97,000.
Thomas pleaded guilty to one count of identity theft before U.S. Magistrate Judge David C. Keesler. The maximum penalty for the charge is 15 years in prison and a $250,000 fine. A sentencing date for Thomas has not been set yet.
Christopher Roach was previously sentenced to 95 months in prison on conspiracy to commit bank fraud and aggravated identity theft charges.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, the United States Secret Service’s Charlotte Field Office, and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.