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Wednesday 12 April 2017
Austintown man indicted for two bank robberiesRead the Press Release
Jarrett N. Dragic, 22, of Austintown, was indicted on two counts of bank robbery, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, FBI Special Agent in Charge.
Drajic robbed a Farmers National Bank in East Liverpool on Feb. 10. He robbed a Farmers National Bank in Canfield on Feb. 17, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the East Liverpool Police Department, the Columbiana Police Department and the Canfield Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Appeals Court Upholds 70-Month Prison Sentence for Bath Salts DistributorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals today affirmed the 70-month prison sentence imposed by U.S. District Court Judge Malachy E. Mannion on Treiu Thuy Duong, age 38, who supplied approximately 10 kilograms of alpha-pvp—commonly known as “bath salts”—to customers in northeastern Pennsylvania and elsewhere during 2013-2014.
According to United States Attorney Bruce D. Brandler, Duong, who resided in Texas at the time of the offense and later moved to Florida, claimed on appeal that her 70-month prison sentence was unreasonable.
Duong previously pleaded guilty to conspiring with others from Luzerne County and elsewhere, to distribute alpha-pvp. Duong in her plea acknowledged distributing approximately 10 kilograms of bath salts. Some of Duong’s customers and sub-distributors resided in Luzerne County.
In upholding the sentence, the appeals court reasoned that Judge Mannion appropriately considered the defendant’s personal circumstances and engaged in a “thorough analysis” of all other relevant factors in imposing the sentence.
As part of her sentence, the defendant forfeited to the government her interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7,000 in cash, more than $17,000 in uncashed money orders, and two firearms.
More than 12 persons connected to the bath salts distribution operation have pleaded guilty and been sentenced to federal prison.
The case was investigated by the Homeland Security Investigations, the Drug Enforcement Administration, the United States Postal Inspection Service, the Pennsylvania State Police, and the West Pittston Police. Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal.
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Albuquerque Man Sentenced to 115 Months for Unlawfully Possessing a Firearm and Ammunition in McKinley CountyRead the Press Release
ALBUQUERQUE – Cowey Edsitty, 32, of Albuquerque, N.M., was sentenced today in federal court to 115 months in prison followed by three years of supervised release for being a felon in possession of a firearm.
Edsitty was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 3, 2016, in McKinley County, N.M. According to court documents, Edsitty was prohibited from possessing firearms or ammunition because of his prior felony convictions for residential burglary, assault with intent to commit a violent felony, aggravated battery, and aggravated fleeing from a law enforcement officer.
On Dec. 15, 2016, Edsitty pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Gallup office of the FBI and the McKinley County Sheriff’s Office. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Albany Woman Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Stacey E. Mendoza, age 40, of Albany, pled guilty today to being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Ashan M. Benedict, Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
As part of her guilty plea, Mendoza admitted that on the evening of June 21, 2016, she fired a 12-gauge shotgun out of the window of a third-story apartment on Clinton Avenue, during a dispute with a neighbor. As a convicted felon, Mendoza could not legally possess the Winchester Model 1300 pump-action shotgun.
Mendoza, who has been in custody since December 12, 2016, is scheduled to be sentenced on August 9, 2017 by United States District Judge Mae A. D’Agostino. She faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by ATF and the Albany Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
Acting U.S. Attorney Weinreb Closes Federal Investigation of Islamic Cemetery Proposal in Town of DudleyRead the Press Release
BOSTON – Acting United States Attorney William D. Weinreb announced today that, due to the recent approval of the settlement between the Town of Dudley and the Islamic Society of Greater Worcester, his office is closing the investigation into whether the Town of Dudley violated a federal civil rights law that protects against religious discrimination.
“We are pleased that the town of Dudley and the Islamic Society of Greater Worcester reached an agreement,” said Acting U.S. Attorney Weinreb. “Our role is to ensure that cities and towns do not discriminate on the basis of religion, and the agreement affirms the commitment by both parties to abide by federal law.”
In August 2016, the U.S. Attorney’s Office launched an investigation to determine whether the Town of Dudley had infringed on the Islamic Society of Greater Worcester’s right to religious exercise, by placing unreasonable barriers to, and previously denying, their request for a permit to establish an Islamic cemetery. Although the parties signed a settlement agreement in December 2016, the U.S. Attorney’s Office kept its investigation open, pending final approvals from the Town of Dudley.
The U.S. Attorney’s Office is authorized to investigate allegations of discriminatory treatment under the Religious Land Use and Institutionalized Persons Act, which, among other things, prohibits discrimination against any assembly or institution on the basis of religion.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Tuesday 11 April 2017
“Family Ties” ring leader found guilty in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that an Indianapolis man was convicted of drug distribution, money laundering and bankruptcy fraud charges in federal court. Geraldo Colon, 48, was found guilty after a six-day jury trial before U.S District Judge Jane Magnus-Stinson.
“The goal of this office is to make the Southern District of Indiana the worst place in America to sell drugs,” said Minkler. “That is accomplished by investigations like this which arrest drug dealers, detain them without bond, convict them at trial and request lengthy mandatory minimum sentences in federal prison.”
In May 2014, law enforcement officials learned that large quantities of narcotics were being shipped to the Indianapolis area from Phoenix, Arizona. The drugs were being shipped to a location on Bomar Lane in Greenwood, Indiana. From there, the drugs were being moved to the Muebleria Luz Furniture Store on the Northwest side of Indianapolis, where Colon then distributed them to various Indianapolis-based drug traffickers.
Law enforcement soon learned that Colon was the ringleader of this drug trafficking organization, which brought hundreds of pounds of heroin, cocaine and methamphetamine to the Indianapolis area. Various search warrants were served during the investigation netting: 24 firearms, over $4.5 million in cash proceeds, along with 9.5 kilograms of heroin, over 21 kilograms of cocaine and 22 kilograms of methamphetamine.
was one of 20 federal defendants charged as part of Operation Family Ties that targeted a well-armed and heavily funded drug trafficking organization. A large portion of the drugs were being distributed in the Northwest side of Indianapolis as well as the Butler-Tarkington Neighborhood. Two other primary distributors in the “Family Ties” investigation have been sentenced. Daniel Stewart was sentenced to life without parole in November 2016 and Wade Havvard was sentenced to 31 years in May 2016.
“The negative impact this organization had on the lives and families of Indianapolis is un-measureable, yet devastating,” said IMPD Chief Bryan Roach. “I am thankful for the good work and passion all the detectives working in collaboration with our federal partners who continue to pursue these types of crimes and criminals to change lives and make Indianapolis a safer place.”
“This conviction is the culmination of exemplary interagency cooperation and commitment to keep our communities safe,” said James M. Gibbons, special agent in charge of HSI Chicago. “Through our collaborative efforts we succeeded in striking a significant blow against a large-scale and dangerous drug-trafficking network.”
IRS Criminal Investigation Special Agent in Charge, James Robnett stated, “Working together with our law enforcement partners, IRS Criminal Investigation has done what it does best….we follow the money! We follow the money trail to financially disrupt and dismantle significant narcotics trafficking organizations victimizing our taxpayers. Our actions demonstrate our collective efforts to continue to enforce the law and ensure our communities and neighborhoods are safe.
“I am grateful to U.S. Attorney Minkler and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases”, stated Nancy J. Gargula, U.S. Trustee for Indiana, Central Illinois and Southern Illinois (Region 10). The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
case was investigated by the Indianapolis Metropolitan Police Department, Drug Enforcement Administration, Department of Homeland Security Investigations, Internal Revenue Service Criminal Investigation and the U.S. Trustee’s Office.
According to Assistant U.S. Michelle P. Brady who prosecuted this case for the government, Colon faces a maximum sentence of life in prison. No sentencing date has been set.
Woman Charged with Filing False Income Tax ReturnsRead the Press Release
PITTSBURGH - A resident of western Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of filing false income tax returns, Acting United States Attorney Soo C. Song announced today.
The two-count indictment named Tina Gordon as the sole defendant.
According to the indictment, for the calendar years 2010 and 2011, Gordon failed to report “other income” of more than $195,000.
At each of the two counts, defendant faces a maximum penalty of three years imprisonment, a $250,000 fine, and one year of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Winterville Man Sentenced to 25 Years for Heroin Distribution and Possession of Ammunition by a Convicted FelonRead the Press Release
GREENVILLE – The United States Attorney’s Office announced that today in Federal court, Senior United States District Judge Malcolm J. Howard sentenced MAURICE EUGENE MOORE, JR., 27, of Winterville, North Carolina to 300 months imprisonment, followed by 5 years of supervised release.
MOORE was named in a three-count Indictment filed on April 20, 2016, and pled guilty to Conspiracy to Distribute and Possess With the Intent to Distribute 100 Grams or More of Heroin and Possession of Ammunition by a Felon on December 5, 2016.
The Naval Criminal Investigative Service (NCIS) initiated an investigation in 2013 in Jacksonville, North Carolina, after they received information that identified MOORE as a local heroin distributor and a pimp. The information revealed that MOORE was promoting prostitution at the nearby U.S. Marine Corps bases.
The investigation revealed that MOORE purchased heroin from an individual in New York and used women as drug mules to bring the narcotics back to North Carolina. Multiple witness statements revealed that MOORE was frequently seen with firearms; and that he was in possession of both assault rifles and heroin in the hotel rooms and other locations he used to stash his drugs. The investigation further revealed that MOORE got the prostitutes he was pimping addicted to heroin to facilitate the distribution of the drug.
This case was investigated by the NCIS, the Craven County Sheriff’s Office, the Pitt County Sheriff’s Office, the Pamlico County Sheriff’s Office, the Havelock Police Department, and the Jacksonville Police Department. Assistant U.S. Attorney Scott Lemmon is prosecuting the case on behalf of the government.
Webster County Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on April 7, 2017, in federal court in Sioux City.
Andrew Smith, 32, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Smith admitted his involvement in a conspiracy that distributed at least 5 kilograms of methamphetamine mixture from 2012 through November 2016. On two occasions in 2015, Smith was found in possession of over 27 grams of actual (pure) methamphetamine. Smith admitted he planned to distribute some or all of the methamphetamine to another person or persons.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal pending sentencing. Smith faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a $100 special assessment, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and Special Assistant United States Attorney Ajay Alexander and was investigated by the Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, Iowa Division of Criminal Investigation, and the Fort Dodge Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-3048.
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Vice Lords Leader Sentenced for Gang-Related Shooting of Family of FourRead the Press Release
A leader of the Vice Lords street gang was sentenced today to 162 months in prison for his role in the May 7, 2015, shooting of four members of a family with an AK-47 in Detroit.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.
“Everett controlled the Vice Lords by ordering violent retribution against anyone who crossed him, his revenge had no limits,” said Acting Assistant Attorney General Blanco. “I am proud of the unified efforts of our prosecutors and law enforcement partners, including the Detroit One partners, who successfully brought Everett and other Vice Lord members to justice. The Justice Department will continue to work closely and jointly with all of our Federal, state and local law enforcement partners to investigate, prosecute and dismantle violent gangs, like the Vice Lords, wherever they may be present.”
“This conviction and sentence is particularly important since Mr. Everett was a leader of the gang and directed this violence to occur. This lengthy sentence underscores that one does not have to be physically present at a shooting to bear the full brunt of criminal responsibility and punishment,” said Acting U.S. Attorney Lemisch. “We hope Mr. Everett’s sentence sends a strong message of deterrence to those who may want to pursue the gang lifestyle.”
“This sentence is the culmination of countless hours of dedicated work by ATF agents and our law enforcement partners,” said Special Agent in Charge Shoemaker. “ATF will continue to aggressively target and dismantle criminal enterprises threatening the safety of Detroit’s citizens.”
“While gang violence continues to plague the safety and security of our neighborhoods, today’s sentence reflects the continuing impact the Detroit One Initiative is having on the ability of gang members to terrorize our communities,” said Special Agent in Charge Gelios. “Prior to today, defendants in this shooting incident had been sentenced to approximately 80 years collectively in prison. With today’s additional sentence, the message should be clear this collaboration of federal, state and local law enforcement partners is committed to restoring our streets to the law-abiding citizens of Detroit.”
Burney Everett, aka Tank, 27, of Detroit, pleaded guilty on Oct. 25, 2016, before U.S. District Judge David M. Lawson of the Eastern District of Michigan to two counts of assault with a dangerous weapon in aid of racketeering and one count of use and carry of a firearm during and in relation to a crime of violence.
According to admissions made in connection with Everett’s plea, the Vice Lords is a national gang engaged in a variety of crimes and the gang’s leaders are located in both Chicago and Detroit. The gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords (TVL). The Vice Lords have often targeted members who sought to leave the gang for physical beatings or murder.
Everett admitted that in May 2015, he directed other members of the TVL to search for two brothers who had left or attempted to leave the gang in order to harm them. Everett further admitted that on May 7, 2015, at his direction, members of the TVL traveled in multiple cars to the intended victims’ house. After a brief confrontation with the brothers’ family members, Vice Lords member Antonio Clark admitted in connection with his own plea that he fired an AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister. All of the victims survived the shooting.
All defendants charged for the shooting pleaded to charges related to the shooting. In addition to Everett, eight members and leaders of the TVL, all of Detroit, have pleaded guilty to charges related to the shooting, seven of whom have been sentenced: Antonio Clark, 27, was sentenced to 240 months in prison; Aramis Wilson, 26, was sentenced to 150 months in prison; Dion Robinson, 39, was sentenced to 121 months in prison; Jonathan Kinchen, 24, was sentenced to 120 months in prison; Tyrone Price, 27, sentenced to 140 months in prison; Kojuan Lee, 20, was sentenced to 97 months in prison; and Kirshean Nelson, 20, was sentenced to 36 months in prison. Kenneth Smith, 35, pleaded guilty on Jan. 28, 2016, and awaits sentencing, which has not yet been set. On Jan. 18, 2017, a co-defendant of Everett, Vice Lords associate Jamerio Clark, was sentenced to 48 months in prison for witness tampering by obtaining and disclosing the private health information of the May 7, 2015 shooting victims and victims’ family members to a member of the gang.
The convictions related to the May 7, 2015, shooting are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of dozens of Vice Lords leaders and members over the last few years. In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization.
The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.
The ATF, FBI and Detroit Police Department investigated the case. Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Upshur County man guilty of role in methamphetamine distribution ringRead the Press Release
ELKINS, WEST VIRGINIA – A Buckhannon, West Virginia man was convicted today of a methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Allen White, 38, pled guilty to one count of “Possession with the Intent to Distribute Methamphetamine.” White admitted to having the drug in Lewis County in August 2015.
White faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government.
The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Upshur County Man Sentenced for Federal ConspiracyRead the Press Release
TYLER, Texas - A 41-year-old Gilmer, Texas man has been sentenced to federal prison following a lengthy investigation into a synthetic drug operation in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jeremy Chad Tidwell pleaded guilty on Nov. 17, 2016, to conspiracy to commit offenses against the United States and was sentenced to 60 months in federal prison today by U.S. District Judge Ron Clark. Assets to be forfeited by the defendant included U.S. currency and bank accounts totaling over $1.2 million, real property, precious metals, two airplanes, 6 automobiles, other vehicles, and firearms.
On Dec. 3, 2014, a combined task force of federal, state and local law enforcement executed federal arrest warrants and search warrants in Longview, Texas as a result of an investigation by the Drug Enforcement Administration (DEA) Tyler Task Force. In April 2014, law enforcement agencies, initiated an Organized Crime Drug Enforcement Task Force (OCDETF) investigation into a synthetic drug trafficking organization based in the Gregg County, Texas area. This investigation involved extensive surveillance and controlled purchases of controlled substances, controlled substance analogues, and drug paraphernalia.
The operation resulted in the arrest of Tidwell, his wife, Shanna Peek Tidwell, 38, of Gilmer, and Tidwell's brother, Brian Tidwell, 45, of Arlington, Texas. Four retail stores, all located in Longview, were searched as part of the law enforcement operation. Over $1.2 million, including in excess of $450,000 in U.S. currency, multiple vehicles, and large quantities of synthetic drugs were seized.
The defendants were indicted in a superseding indictment by a federal grand jury on Feb. 19, 2015. Charges included conspiracy to distribute and possess with intent to distribute Schedule I controlled substances and controlled substance analogues, conspiracy to commit offenses against the United States, conspiracy to sell and offer for sale drug paraphernalia, conspiracy to commit money laundering, and maintaining a place for the distribution of a controlled substance or controlled substance analogue.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The DEA Task Force in Tyler includes officers from the Gregg County Sheriff’s Office, Henderson County Sheriff’s Office, Van Zandt County Sheriff's Office, Kilgore Police Department, Smith County Sheriff’s Office, and Upshur County Sheriff’s Office, as well as DEA Special Agents.
Other agencies assisting in the joint investigative effort included the U.S. Attorney’s Office - Eastern District of Texas, DEA Tyler Task Force, Gregg County Sheriff’s Office, Gregg County Organized Drug Enforcement Unit (CODE), Longview Police Department, Upshur County Sheriff’s Office, Kilgore Police Department, Lakeport Police Department, Gladewater Police Department, Arkansas Attorney General’s Office, and the U.S. Marshals Service.
This case was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby.
Unionville Man Sentenced to 18 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Unionville, Mo., man was sentenced in federal court today for possessing child pornography.
Joel R. Bremer, 51, of Unionville, was sentenced by U.S. District Judge Roseann Ketchmark to 18 years in federal prison without parole. The court also sentenced Bremer to supervised release for the rest of his life following incarceration.
On June 10, 2016, Bremer pleaded guilty to possessing child pornography. The investigation began in February 2013 when the Putnam County Sheriff’s Department received a report from a 19-year-old female (identified in court documents as “Jane Doe”) that she had been sexually abused by Bremer for a period of time when she was a child. She also stated that Bremer had taken nude photographs of her when she was a minor and that she had recently seen those pictures on his laptop computer, which he kept in his home.
According to court documents, Jane Doe alleges that Bremer engaged in sexual intercourse with her over 100 times and made her perform oral sex at least 20 times. A second victim, identified in court documents as “Jane Doe 2,” alleges that Bremer also committed sexual offenses against her, including engaging in sexual intercourse several years ago before she was 16 years of age. Bremer has been charged under state law for these alleged offenses against both victims.
Investigators with the Putnam County Sheriff’s Department and the Kirksville Regional Computer Crimes Unit executed a search warrant at Bremer’s residence on Feb. 11, 2013, and seized a laptop computer and several CD/DVDs. A forensic analysis was conducted at the Kirksville Regional Computer Crime Laboratory. No pornographic images of Jane Doe were located; however, the analysis located approximately 1,472 photos and 40 videos which contained child pornography that appeared to have been obtained via the Internet. The content of the numerous images and video files include depictions of adults engaging in sexual conduct with prepubescent children, including toddlers.
According to court documents, Bremer continued to download child pornography after he was indicted in this case and while he was under pretrial supervision. Bremer borrowed a laptop computer from a friend, according to court documents, who discovered evidence of child pornography on the computer when it was returned at the time of his guilty plea. Investigators located 211 images of apparent child pornography under the profile name “Joel Bremer.”
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Putnam County, Mo., Sheriff’s Department, the Kirksville, Mo., Police Department and the Kirksville Regional Computer Crimes Unit.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ukrainian National Sentenced for Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Ukrainian national was sentenced in federal court today for transporting thousands of cartons of cigarettes from Missouri to Chicago, Ill., in order to avoid paying nearly $165,000 in excise taxes.
Yevhen Sychikov, 32, a citizen of Ukraine residing in Chicago, was sentenced by U.S. District Judge Dean Whipple to one year in federal prison without parole. The court also ordered Sychikov to pay $164,890 in restitution.
On Oct. 20, 2016, Sychikov pleaded guilty to the interstate transportation of contraband cigarettes. Sychikov admitted that he purchased large quantities of cigarettes at convenience stores in northwest Missouri then transported them back to Chicago, which has a much higher excise tax on cigarettes. According to court documents, Sychikov was part of a larger smuggling operation trafficking in contraband cigarettes.
Sychikov, who made at least a dozen trips from Chicago to Missouri, purchased cigarettes from Trex Mart in Lathrop, Mo.; Discount Smoke and Liquor Store in Riverside, Mo.; and Tipsy Liquor in Smithville, Mo. On May 10, 2014, Sychikov purchased 20 cases (1,200 cartons) of cigarettes and transported them back to Chicago. On June 14 and 15, 2014, Sychikov purchased 1,395 cartons of cigarettes and transported them back to Chicago.
Missouri taxes cigarettes at a rate of 17 cents per pack. The combined state, county and city taxes from Illinois, Cook County and Chicago are $6.16 per pack. Therefore, the price differential on a carton of cigarettes (10 packs) is almost $60 per carton. Sychikov transported more than 26,000 packs of cigarettes, resulting in a tax loss of $164,890.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force.
Two Sentenced in Gang Child Sex Trafficking ConspiracyRead the Press Release
FORT WORTH, Texas — Diwone Nobles, a/k/a “Pooh,” 32 and Katelyn Michelle Ward, a/k/a “KD,” 24, have been sentenced for their roles in a child sex trafficking conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Noble appeared before U.S. District Judge Reed C. O’Connor yesterday and was sentenced to 360 months in federal prison. He pleaded guilty to one count of sex trafficking of children in November 2016.
Ward also appeared before U.S. District Judge Reed C. O’Connor yesterday and was sentenced to 72 months in federal prison. She pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise in November 2016.
A total of nine defendants were charged in the case, pleaded guilty to their role in the child sex trafficking conspiracy and have been sentenced to the following prison sentences.
Chad Johnson, a/k/a “Ocho Hood Fame,” 24, 300 months
Audry Lane, a/k/a “Spud,” 29, 280 months
Deon Bonner, a/k/a “Spanish Fly,” 26, 360 months
Stanley Johnson, a/k/a “Pee Wee,” 24, 168 months
Alvin Lane, a/k/a “Spank,” 32, 166 months
Jessica Arnold, 23, 5 years probation
Serrah Arnold, 28, 5 years probation
According to documents filed in the case, in November 2015, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) learned that a 16-year-old runaway, Jane Doe 1, was being trafficked by a group of people in Fort Worth, Texas; that group included the defendants. The investigation revealed that from approximately October 1, 2013, through April 16, 2016, the members of this group facilitated the commercial sex acts of several minor and adult females.
Nobles, Bonner, Chad Johnson, Stanley Johnson, Audry Lane, Ward and Alvin Lane acted as pimps for the girls and women they trafficked. They instructed them on how much to charge and they kept proceeds from transactions. They also provided the girls and women with condoms, cellular phones and hotel rooms. Some of the member of the group bought and sold the girls and women they were trafficking amongst themselves.
To locate commercial sex customers, Nobles, Bonner, Chad Johnson, Stanley Johnson, Ward, Audry Lane and Alvin Lane facilitated the placement of advertisements on various commercial websites, including Backpage.com. In many instances, rather than placing the Backpage.com advertisement themselves, sisters Serrah and Jessica Arnold, who acted as “bottom girls,” were told to post the advertisements using Backpage.com accounts belonging to the Arnolds.
On approximately June 1, 2013, 17-year-old Jane Doe 4 was introduced to Audry Lane, Serrah and Jessica Arnold, and Alvin Lane by a family friend of the Arnolds, defendant Ward. Ward asked the Lanes and Arnolds to teach Jane Doe 4 how to engage in commercial sex acts. Serrah and Jessica Arnold explained to Jane Doe 4 about Backpage.com and how to talk to commercial sex customers. Ward, along with Audry Lane, and later Alvin Lane, acted as Jane Doe 4’s pimp at various times between 2013 and 2015. All three pimps knew she was 17 when they began facilitating her commercial sex acts, and they kept the proceeds she earned. Various members of the group posted Jane Doe 4 on Backpage.com and facilitated her commercial sex acts.
On approximately October 10, 2015, friends Bonner and Stanley Johnson met 17-year-old Jane Doe 2 and her 16-year-old friend Jane Doe 1 in Fort Worth. They took the girls to a motel on Meacham Street in Fort Worth. Shortly thereafter, Stanley Johnson told Jane Doe 2 that he wanted her to engage in commercial sex acts, and he sought help from Audry Lane and Alvin Lane to post commercial sex ads for her on Backpage.com. Stanley Johnson told Jane Doe 2 how much to charge and he bought condoms for her; he also kept the money she made from engaging in commercial sex acts.
While Stanley Johnson was causing Jane Doe 2 to engage in commercial sex acts at a Fort Worth motel, Bonner was causing Jane Doe 1 to engage in commercial sex acts in another nearby room. After several days, Bonner left the hotel, and then Chad Johnson caused Jane Doe 1 to engage in commercial sex acts. Next, Nobles began causing Jane Doe 1 to engage in commercial sex acts. Stanley Johnson and Nobles eventually took both Jane Doe 1 and Jane Doe 2 to another hotel in Fort Worth where Stanley Johnson continued to cause Jane Doe 2 to engage in commercial sex acts.
According to documents filed in the case, one adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, Alvin Lane, and Serrah Arnold during 2014. Nobles frequently assaulted her when she made him angry or did not follow his instructions; he also raped her. Nobles kept the money she earned and the contact phone number used in the Backpage.com ad for her services was used by Nobles. In one trip to Austin, this adult female victim made enough money for Nobles to buy a Chevy sedan that he painted bright orange – “Poly Orange” in reference to their neighborhood Polytechnic Heights – that he still owns.
When an adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
When an adult female victim engaged in commercial sex acts at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received.
A minor female victim, 16 year-old Jane Doe 5, engaged in commercial sex acts at the direction of Audry Lane, Alvin Lane, Serrah Arnold and Jessica Arnold. Alvin Lane would have his girlfriend/bottom girl, Jessica Arnold post photos of her in ads that she placed on Backpage.com. The minor female victim would give all the money she earned to Jessica or Serrah Arnold, who would then give the money to Audry Lane or Alvin Lane.
Some of the pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contained photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends were females observed in Backpage.com ads for commercial sex. Likewise, Diwone Nobles posted numerous videos and photos on Facebook instructing others on how to pimp, and showing him counting money with various sex trafficking victims.
Nobles, Bonner, Chad Johnson, Stanley Johnson, and Audry Lane had several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Fort Worth Police Department investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Two Kankakee Felons Sentenced for Firearms PossessionRead the Press Release
URBANA, Ill. - Two Kankakee men with prior felony convictions have been sentenced in federal court for illegal possession of guns. William D. Roper, 35, was sentenced on April 10, to 7 ½ years in federal prison. On April 7, Andre Davis, 33, was ordered to serve seven years in prison. The men have been in the custody of the U.S. Marshals Service since their respective arrests in separate cases in May 2016.
On Oct. 11, 2016, Roper, of the 600 block of S. Poplar Ave., pled guilty to possession of a .32 caliber semi-automatic pistol. At the time Roper possessed the gun, in April 2016, he had prior felony convictions in Kankakee County.
On Oct. 5, 2016, Davis, of the 300 block of N. Harrison, pled guilty to possession of firearms on three occasions. Davis admitted that at the time he possessed the guns, a .38 caliber revolver on Mar. 17, 2015; a .22 caliber pistol on Mar. 24, 2015; and a .45 caliber pistol on May 21, 2015, he had prior felony convictions that barred him from possession of a firearm.
The cases are the result of ongoing investigations related to gun violence in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kankakee Police Department. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution of Roper; Assistant U.S. Attorney Katherine V. Boyle prosecuted the case against Davis.
Three Members of Large Lebanon County Drug Trafficking Operation Convicted After Six-Day TrialRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Julio Aviles, Sr., age 48, Michael Millan-Miranda, age 30, both from Lebanon, Pennsylvania, and Israel Nazario, age 61 of Philadelphia, Pennsylvania, all members of a Lebanon County Drug Trafficking Organization, were convicted today of various drug trafficking and firearms offenses. All three defendants were convicted of conspiracy to distribute and possess with intent to distribute one kilogram and more of heroin. Julio Aviles Sr. was also convicted of conspiracy to distribute and possess with intent to distribute cocaine base, also known as crack cocaine and cocaine powder, possession with intent to distribute 100 grams and more of heroin, 28 grams and more of crack cocaine and a quantity of cocaine hydrochloride, three counts of distribution of heroin, distribution of crack and cocaine powder, possession of a firearm in furtherance of drug trafficking, being a convicted felon in possession of firearms and maintaining a premise for the purpose of drug trafficking. Michael Millan-Miranda was also convicted of possession with the intent to distribute heroin and the distribution of heroin. Israel Nazario was also convicted of simple possession of heroin. The six-day trial was held in federal court in Harrisburg before United States District Judge John E. Jones, III. Prior to today, nine other individuals associated with this drug operation were charged and are awaiting sentencing for their roles in the drug trafficking operation.
According to United States Attorney Bruce D. Brandler, the two-year investigation by the Drug Enforcement Administration and the Lebanon County Drug Task Force culminated with the execution of search warrants at 513 Arnold Street and 443 North 6th Street, in Lebanon, Pennsylvania, on May 14, 2015. During the search at 513 Arnold Street, law enforcement agents discovered a “heroin mill” where kilogram amounts of heroin were being processed on a weekly basis. The evidence at trial revealed that Julio Aviles, Sr., a previously convicted drug dealer, owned and operated the heroin mill and employed a network of sellers, packagers, brokers and testers to conduct this illegal enterprise. Packagers were paid approximately $500 a week like factory workers to process and package the heroin for later distribution. The testers operated as quality assurance inspectors to ensure the heroin was of sufficient quality. At the time of the searches, law enforcement agents found over 400 grams of heroin, over 85 grams of cocaine powder, and over 71 grams of crack cocaine. A kilogram of heroin, which weighs approximately 2.2 pounds is equivalent to approximately 40,000 to 50,000 individual doses of heroin, any one of which can be fatal depending on its purity and the nature of its other ingredients. In this case the evidence established that the drug trafficking organization was mixing the heroin with Fentanyl, morphine, oxycodone and Lidocaine. Law enforcement agents estimated that this drug operation was distributing heroin, crack cocaine, and cocaine for a two-year period and during the last few months was distributing kilogram quantities of heroin, crack cocaine and cocaine powder. The value of the drugs distributed has a conservative street value of between $3 million and $5 million.
Located in the processing room were over 52,000 small Ziploc style bags, 37,000 small glassine bags and over 28,000 rubber bands that are used to package controlled substances. Each rubber band was used to package ten individual bags of heroin, called a bundle.
Law enforcement also located three handguns, ten rifles, six shotguns and paraphernalia consistent with a large-scale drug trafficking operation. During the search at 443 North 6th Street, law enforcement officers located additional quantities of heroin, cocaine powder, and crack cocaine along with drug packaging materials.
Thirteen individuals, all together were charged and are pending sentencing as part of this operation:
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Julio Aviles, Sr., age 48;
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Michael Millan-Miranda, age 30;
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Isrrael Nazario, age 61;
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Julio Aviles, Jr., age 23;
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Leandro Nazario, age 29;
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Carlos Nazario, age 70;
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Suheidy Soto-Concepcion, age 34;
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Eliezer Soto-Concepcion, age 35;
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Brenda Soto, age 34;
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Geidy Arroyo, age 36;
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Kengie Millan-Miranda, age 26;
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Brittany Rivera, age 23;
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Brent Moyer, age 21.
Julio Aviles, Jr., age 23, Brittany Rivera, age 23, Brent Moyer, age 21, Carlos Nazario, Brenda Soto and Geidy Arroyo all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin. On the day of trial, Leandro Nazario, Eliezer Soto-Concepcion and Suheidy Soto-Concepcion all pled guilty to conspiracy to distribute and possess with intent to distribute 1,000 grams and more of heroin, 280 grams and more of cocaine base, or crack cocaine and an unspecified quantity of cocaine hydrochloride or powder cocaine. One charged individual, Kengie Millan-Miranda, remains a fugitive. If you have any information on the whereabouts of Kengie Millan-Miranda, please contact Crime Stoppers at 717-270-9800.
District Attorney David Arnold stated, “I’d like to congratulate the United States Attorney’s Office, First Assistant District Attorney Nichole Eisenhart, DEA, Lebanon County Drug Task Force and all law enforcement for their outstanding work in prosecuting all of these defendants who distributed heroin in Lebanon County. Their efforts to stop the spread of this poison that continues to kill our citizens have been outstanding and I look forward to the continued interagency cooperation to combat drug dealers.”
“No one ever wants a massive, well-structured drug distribution organization in your City. Heroin is killing too many people in Pennsylvania and across this nation. However, I know having a dedicated team from so many law enforcement bodies working together with one common goal, is huge in the effort to combat this crisis. I want to congratulate all those involved in this investigation. This is a good day for law enforcement and a win in the battle against Heroin,” said Chief Todd H. Breiner, Lebanon City Police Department.
“The joint investigation, prosecution, and subsequent conviction of these individuals involved in high-level drug trafficking underscores the importance of cooperative efforts among the law enforcement agencies involved in the case,” said Chief Bruce D. Harris, Cornwall Borough Police Department.
“The dismantling of the Aviles poly-drug trafficking organization was the result of an enormously successful, jointly-conducted criminal investigation and prosecution that once again illuminated the great work being done together by local and federal officials on behalf of the citizens of Central Pennsylvania,” said Jeffrey A. Bielski, Resident Agent in Charge, Drug Enforcement Administration.
The investigation was conducted by the Drug Enforcement Administration, Lebanon County Drug Task Force, Lebanon County Detective Bureau, Lebanon City Police Department, Cornwall Borough Police Department, and assisted by the Lebanon County Probation Department. Special Assistant United States Attorney Nichole Eisenhart who also serves as the First Assistant District Attorney in Lebanon County, Pennsylvania and Assistant United States Attorney Daryl F. Bloom, Chief of the Organized Crime and Drug Enforcement Task Force 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.
Julio Aviles, Sr. is subject to an enhanced penalty due to his prior drug trafficking conviction and is subject to a mandatory sentence of life imprisonment. The maximum penalty under federal law for the remaining defendants is life imprisonment, a term of supervised release following imprisonment and a fine. The conspiracy count also requires a mandatory term of imprisonment of ten years and the possession with intent to distribute count carries a mandatory term of imprisonment of five 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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The United States Attorney’s Office Announces the Completion of the Settlement Agreement in the Civil Division’s Case Against Guam’s Department of CorrectionsRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the U.S. Department of Justice and the Territory of Guam today jointly filed a motion to dismiss in the U.S. District Court, to terminate a 1991 Settlement Agreement for the civil reform of conditions in Guam’s jail and prison facilities.
“The completion of this civil Settlement Agreement demonstrates the U.S. Department of Justice’s continuing commitment to ensure that all men and women who are detained or serving prison sentences receive the protections guaranteed by the Constitution,” said Acting United States Attorney Shawn N. Anderson. “Guam’s compliance with the terms of the Settlement Agreement means inmates and detainees are more likely to be housed in cleaner and safer conditions, and that they will have adequate access to vital health care services.”
The United States Attorney’s Office continues to pursue other cases and matters involving federal criminal violations connected with the Guam Department of Corrections.
The Settlement Agreement resolved the United States’ allegations of a pattern or practice of constitutional violations in Guam’s correctional facilities related to fire safety, sanitation, and access to health care. The case was brought under the Civil Rights of Institutionalized Persons Act (42 U.S.C. § 1997), which protects the federal rights of people in state and locally operated institutions, including nursing homes, hospitals, and correctional facilities. To comply with the Settlement Agreement and remedy the constitutional violations, the United States Attorney’s Office and the Office of the Attorney General of Guam participated in a series of hearings before the U.S. District Court of Guam. The Office of the Attorney General of Guam partnered with national experts and recruited specialists within the Government of Guam, resulting in improvements to the fire safety and sanitation systems throughout its facilities. The Attorney General of Guam completely overhauled the Department of Correction’s health care practices by transferring control of its clinic to staff at Guam Memorial Hospital.
The case was handled by attorneys from the U.S. Department of Justice’s Civil Rights Division, Special Litigation Section, in Washington, D.C. and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.
United States of America v. Territory of Guam, et al., Case No. 91-CV-00020 (D. Guam), Joint Motion for Dismissal and Memorandum in Support attached.
United States of America v. Territory of Guam, et al., Case No. 91-CV-00020 (D. Guam), 1991 Settlement Agreement attached as Exhibit A.The U.S. Attorney’s Office Announces Settlement Agreement to Resolve Americans with Disabilities Act ViolationsRead the Press Release
The Fill Building Associates, L.L.C., d/b/a Fill Building East, owner of a professional office building located at 27301 Dequindre Rd. in Madison Heights, Michigan, has agreed to make a number of structural changes to the building to resolve allegations that it was inaccessible to individuals with mobility disabilities in violations of the Americans with Disabilities Act (ADA), announced Daniel L. Lemisch, acting United States Attorney.
The settlement agreement resolves an investigation following a complaint filed by a person with a disability who was unable to access her physician’s office due to architectural barriers present at the building. Under the terms of the settlement agreement, the building owners agreed to make renovations to the facility so that parking, office space, restrooms, elevators and other public areas are accessible to people with disabilities.
“When a building is inaccessible, it is essentially a proclamation to people with disabilities that they are not welcomed or valued there,” said Daniel L. Lemisch, acting U.S. Attorney. “This is why it’s so important for owners of existing buildings to understand that they are obligated under the ADA to remove all architectural barriers where readily achievable to do so and why the US Attorney’s Office will continue its vigorous ADA enforcement efforts.”
Today’s agreement was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by businesses that serve the public. The United States Attorney’s Office for the Eastern District of Michigan will monitor compliance with the agreement until all required actions are completed.
More information about this settlement and the ADA is available at the Justice Department's toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. ADA complaints may be emailed to [email protected] or by contacting the U.S. Attorney's Office’s civil rights hotline at (313) 226-9151.
Suspended New Jersey Attorney Admits to Failing to Pay TaxesRead the Press Release
NEWARK, N.J. B A suspended Essex County, New Jersey, lawyer today admitted he failed to pay personal and employment payroll taxes, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard Roberts, 79, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge U.S. District Judge Esther Salas in Newark federal Court to an information charging him with one count of failing to pay payroll taxes and one count of failing to pay personal income taxes.
According to documents filed in the case and statements made in Court:
Roberts was the sole owner of legal practice he operated out of a law office in Newark. He maintained at least one employee, besides himself, and managed all aspects of the law office. Roberts was required to deduct and withhold federal income and insurance taxes from his employees’ wages. He was required to prepare and file quarterly forms that reported to the IRS the total amount of wages paid by an employer to all employees (Forms 941). Roberts was required to pay the employer’s portion of the payroll tax to the IRS. For the 12 quarters of the tax years 2009 through 2011, Roberts failed to make any payroll tax payment to the IRS. In each quarter, Roberts either failed to file a Form 941 or failed to pay the payroll tax reflected on the form.
Roberts has not paid personal income taxes since at least 2000. On June 24, 2012, Roberts filed a tax return for the tax years 2007 through 2010, listing the amount of tax due on each return. For example, on the 2010 tax return, Roberts listed a tax due of $20,361, but he has to date failed to pay the tax for tax years 2007 through 2010.
The count of failure to pay payroll taxes carries a maximum potential penalty of five years in prison and a fine of the greater of $250,000, twice the gross profits to Roberts or twice the gross loss to the victim. The count of failure to pay income taxes carries a maximum potential penalty of one year in prison and a fine of the greater of $100,000, twice the gross profits to Roberts or twice the gross loss to the victim. Sentencing is scheduled for Aug. 1, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Sterling Mail Carrier Tayson Hidalgo Sentenced for Delay and Destruction of MailRead the Press Release
DENVER – Tayson Adam Hidalgo, age 23, of Sterling, Colorado, was sentenced today by U.S. District Court Judge R. Brooke Jackson to serve 2 years’ probation during which he is to spend 200 hours doing community service for delay or destruction of the mail. Hidalgo was also ordered to pay restitution of $1,506.76 to the victims of his crime. The sentence was handed down today, Tuesday, April 11, 2017.
According to court records, between October 3, 2014 and April 21, 2016, the defendant, a U.S. Postal Service officer and employee did unlawfully secret, destroy, detain, delay and open letters, post cards, packages, bags and mail entrusted to him and which came into his possession with the intention that he or any carrier deliver the mail to intended recipients.
During the course of this case, the United States Attorney’s Office, working closely with the U.S. Postal Service and the U.S. Postal Inspector, returned over 26,000 pieces of undelivered mail that was located during this investigation. The recovered mail was addressed to residents within the city limits of Sterling, Colorado and several local postal routes in Fort Morgan, Colorado.
This case was investigated by the U.S. Postal Service Office of the Inspector General and the Sterling Police Department. The defendant was prosecuted by Assistant U.S. Attorney Jason St. Julien.
State Senator Indicted on Conspiracy and Theft ChargesRead the Press Release
Today a federal grand jury returned an indictment charging a state senator with conspiracy and theft crimes, announced Acting United States Attorney Daniel L. Lemisch.
Joining Lemisch in the announcement were 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 Internal Revenue Service-Criminal Investigation.
Charged was Bertram Johnson, Jr., 43, of Highland Park, Michigan
The two-count indictment charges that from approximately March 2014 through January 2015, Johnson, Jr., a Senator for the State of Michigan, conspired to commit theft, and did commit theft, of monies under the care, custody, and control of the State of Michigan.
According to the indictment, Johnson borrowed thousands of dollars in cash from an unnamed co-conspirator, and later placed that co-conspirator on the public payroll as a member of his staff, knowing that the co-conspirator was a “ghost employee” who contributed no work on behalf of Johnson’s staff. The indictment alleges that Johnson placed this “ghost employee” on the public payroll solely to pay off Johnson’s personal loan debt, and that the ghost employee was paid over $23,000 in taxpayer money.
“Theft of taxpayer’s money by elected public officials, as these charges allege, is disheartening and will not be tolerated" Lemisch said.
"Today’s indictment is an unfortunate reminder that public officials sometimes squander the public’s trust in exchange for personal gain", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “Rooting out public corruption at all levels of government is an investigative priority of the FBI.”
“Senator Johnson’s alleged actions abused the trust of his constituents and amounted to simple theft,” said IRS-Criminal Investigation Special Agent in Charge Manny Muriel of the Detroit Field Office. “It is in these cases that the IRS takes particular interest in individuals, allegedly abusing the power they have been entrusted with – for their own personal benefit. This investigation exemplifies interagency collaboration and the United States’ commitment to combat the abuse of power and to elevate transparency and accountability
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
If convicted on all charges, Johnson faces a statutory maximum penalty of ten years in prison.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Shelby County Resident Sentenced to Prison for Reciept and Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On April 11, 2017heather Jean Reekr, Matthew E. Gross, a 40 year-old resident of Westphalia, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison, and five years of supervised release to follow his imprisonment, for receipt and possession of child pornography, announced United States Attorney Kevin E. VanderSchel.
On November 3, 2016, the defendant pled guilty to a two-count indictment, charging him with possession and receipt of child pornography. The defendant received child pornography images from at least as early as February of 2014 and up to August of 2014. In addition, the defendant was found in possession of child pornography images on or about September 25, 2014, in his Westphalia residence.
This investigation was conducted by the Iowa Department of Public Safety, Division of Criminal Investigation, the Iowa Internet Crimes Against Children Task Force, and the Shelby County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Second Joplin Man Pleads Guilty to Attempted Armed Bank Robbery Foiled by CustomerRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to the attempted armed robbery of Pinnacle Bank in Joplin.
Jimmy Eisenhour, 36, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Jan. 18, 2017, superseding indictment.
By pleading guilty today, Eisenhour admitted that he aided and abetted in the robbery of Pinnacle Bank, 1316 E. 32nd Street, Joplin, on Nov. 14, 2016. Eisenhour also pleaded guilty to aiding and abetting the use of a firearm during a crime of violence.
Co-defendant Sean LaDue, 29, of Joplin, pleaded guilty to the same charges on March 22, 2017.
Eisenhour and LaDue entered the bank at approximately 3:50 p.m. and announced, “This is a robbery, get down!” Eisenhour went behind the bank counter while LaDue stayed near the front of the bank. The sole customer of the bank struggled with LaDue in the bank lobby. During the struggle, LaDue produced a firearm and fired three shots. Both robbers then fled from the bank without taking any money.
Police officers located and arrested both Eisenhour and LaDue two days later, on Nov. 16, 2016.
Under federal statutes, Eisenhour and LaDue are each 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 James J. Kelleher. It was investigated by the Joplin, Mo., Police Department and the FBI.
San Juan County Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Justin Krantz, 32, of Aztec, N.M., pled guilty today in federal court in Albuquerque, N.M., to being a felon in possession of a firearm and ammunition. Under the terms of his plea agreement, Krantz will be sentenced to 57 months in prison followed by a term of supervised release to be determined by the court.
Krantz arrested in Nov. 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 4, 2016, in San Juan County, N.M. According to the indictment, Krantz was prohibited from possessing firearms or ammunition because of his prior conviction on drug trafficking charges.
During today’s proceedings, Krantz pled guilty to the indictment and admitted that on May 4, 2016, he was in possession of a firearm and ammunition. Krantz further admitted that he was prohibited from being in possession of firearms or ammunition because of his prior felony convictions. Krantz remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Eva Fontanez is prosecuting the case.
Rocky Mount Man Sentenced on Enticement ChargesRead the Press Release
Roanoke, VIRGINIA – A Rocky Mount man, who contacted at least two local teenagers via social media and exchanged explicit sexual messages with them and attempted to coerce them into meeting with him to engage in sex acts, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
David Lee Fox, 63, of Rocky Mount, Va., previously pled guilty to two counts of coercion and enticement of a juvenile. Today in District Court, Fox was sentenced to 10 years in federal prison and 20 years of supervised release upon his release.
According to evidence presented at previous hearings by Assistant United States Attorney Ronald M. Huber, in August 2015 Fox initiated contact with a 14-year-old female, Victim A, via Facebook. Victim A initially ignored the defendant, who over numerous days continued to attempt to engage her in conversation.
On September 30, Victim A responded to Fox’s attempts at conversation and Fox told Victim A she was pretty. The conversation quickly turned sexual, with Fox asking if Victim A had a picture of herself in a bar or bikini and if she could take one and send it to him. Fox told Victim A to promise not to tell anybody about their conversation. Victim A told her parents about the exchanges with Fox. On that same day, Victim A’s parents contacted the ICAC/Franklin County Sheriff Office about the exchanges and gave law enforcement permission to assume control of Victim A’s Facebook account. All messages from Victim A’s Facebook account after that date were controlled by law enforcement.
Between October 2 and October 22, Fox initiated contact with Victim A’s Facebook account multiple times. On October 21, Fox asked Victim A is she knew Victim B.
On October 22 Fox expressed concern about Victim A’s family discovering their conversation, but Victim A reassured him. Fox then went on to discuss his penis size and asked Victim A about her breasts as well as her sexual experiences. Fox asked if Victim A would meet him and continued to describe sexual acts he would like to do to Victim A. Victim A agreed to meet Fox at the Franklin County Baptist Church around 4 p.m. on the afternoon of October 22.
On the afternoon of October 22, an investigator with the Franklin County Sheriff’s Office, the Virginia State Police and the Rocky Mount Police waited at the church for Fox to arrive. When law enforcement observed a man fitting Fox’s description arrive in the church’s parking lot to meet who he thought was Victim A, he was arrested and charged with solicitation of a minor to perform sex acts.
Prior to his arrest, Fox was also simultaneously being investigated for his online interactions with another minor female. On October 2, 2015, a Roanoke County Police detective contacted the Franklin County Sheriff’s Office regarding Victim B, another juvenile female, who had received a suspicious message from Fox’s Facebook account. The parents of Victim B gave law enforcement permission to assume control of their daughter’s Facebook account.
As with Victim A, Fox again engaged in sexual conversations with Victim B, asking her to send him pictures of herself in her bra and bikini and stressed to not let anyone know what the two of them were talking about. Unlike with Victim A, with Victim B, Fox initially lied about his age, at first saying he was a teenager himself before later admitting he was much older.
Throughout multiple conversations, Fox repeatedly described sex acts he wanted to perform on Victim B, sent her images of himself and images sexual in nature and, on multiple occasions attempted to make plans to meet her in person. The night Fox and Victim B planned to meet in person, Fox cancelled, telling Victim B he had to go out of town, however, he was in fact going to meet Victim A, where he was ultimately arrested.
The investigation of the case was conducted by Franklin County Sheriff’s Office, the Southern Virginia Internet Crimes Against Children Task Force, the Franklin County Commonwealth’s Attorney, United States Immigration and Customs Enforcement Homeland Security Investigations, the Virginia State Police and the Rocky Mount Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Ponzi Scheme Manager Sentenced to over 4 Years in Prison for Scheme That Stole over $1.5M from Victims in Visalia and ElsewhereRead the Press Release
FRESNO, Calif. — Bonnie Lynn Recinos, 56, of Mesa, Arizona, was sentenced Monday by United States District Judge Dale A. Drozd to four years and seven months in prison and was ordered to pay over $1.5 million in restitution for conspiracy to commit mail and wire fraud in connection with an investment fraud scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between April 2006 and August 2009, Recinos, who was doing business as Farr and Associates and Farr Financial Group, conspired with others to defraud investors of money. In most instances, Recinos offered individuals an opportunity to purportedly invest in a real estate project. Recinos told investors that the company was an investment group for business and real estate in Arizona, that their investment was secured by Farr assets, and that they would typically earn 3 –5 percent interest per month. As a result of Recinos’ false representations, investors gave money to invest in the purported real estate projects. However, instead of investing the money, Recinos used it for her own business and personal expenses.
As part of the conspiracy, Recinos would periodically have statements sent to the investors showing the purported progress of their investments and the interest earned to date. Recinos would also use investors’ money to pay interest amounts owed to other investors. Both the statements and the periodic payments lulled the investors into believing that their investments were legitimate, brought in new investors, and helped to avoid detection by law enforcement. Investors lost more than $1.5 million as a result of the fraud scheme.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Henry Z. Carbajal III and Megan A. S. Richards prosecuted the case.
Pocahontas County man guilty of illegal possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Archie Ray Arbogast, of Dunmore, West Virginia, was convicted for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Arbogast, 40, having previously been convicted of the felony offense “Possession of Material Use in the Manufacture of Methamphetamine” in federal court in the Northern District of West Virginia, admitted to possession of a .22 caliber rifle, in Pendleton County, West Virginia in May 2016.
Arbogast pled guilty to one count of “Unlawful Possession of Firearm.” He faces up to ten years in prison and a fine up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, and the West Virginia State Police is investigating.
U.S. District Judge John Preston Bailey presided.
Pittsburgh Man Admits Defrauding Pittsburgh-area BanksRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, PA, has pleaded guilty in federal court on a charge of fraud conspiracy, Acting United States Attorney Soo C. Song announced today.
Maleake Clark, 26 of Pittsburgh, PA, pleaded guilty to one count before United States District Judge David S. Cercone.
According to the indictment, Maleake and others agreed to defraud Pittsburgh-area banks by depositing counterfeit checks by remote mobile deposit, and then making a series of withdrawals against funds credited from the deposited checks.
Judge Cercone scheduled the sentence for sentencing for August 21, 2017 at 10 a.m. The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of the defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Physician Charged with Willfully Failing to File Income Tax ReturnsRead the Press Release
PITTSBURGH – A medical doctor has been charged by Information in federal court in Pittsburgh with three counts of Willfully Failing to File Income Tax Returns, Acting United States Attorney Soo C. Song announced today.
According to the Information filed yesterday, Rodney J. Williams of Washington County failed to file tax returns from 2009 to 2011. During those three years he had gross income of $790,385.
The law provides for a maximum total sentence of not more than three years in prison, a fine of $300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation leading to the filing of an Information in this case.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Felon Charged with Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
Anthony Tyson, a/k/a “Anthony Moore,” a/k/a “Anthony Johnson,” a/k/a “Basil Moore,” 40, of Philadelphia, was charged today by Indictment with by indictment with one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of drug trafficking, announced Acting United States Attorney Louis D. Lappen. According to the Indictment[1], the defendant was found on December 30, 2016 in Philadelphia illegally possessing a Colt revolver, as well as cocaine base (“crack”).
If convicted, the defendant faces up to 35 years of incarceration, of which 5 years is a mandatory sentence, a 3‑year period of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Couple Charged with Criminal Tax OffensesRead the Press Release
Edward W. Millstein, 54, and Susan P. Halpern, 58, of Philadelphia, Pennsylvania, were charged today by Indictment1 with criminal tax offenses announced Acting United States Attorney Louis D. Lappen. Millstein and Halpern, who were a married couple, allegedly owe $444,225.53 for the taxable years 2007 through 2011. Millstein was charged with one count of willful attempts to evade tax and two counts of failure to pay taxes, while Halpern was charged with two counts of failure to pay taxes. If convicted, Millstein faces up to seven years in jail, three years of supervised release, $450,000 in fines, and a $300 special assessment. Halpern faces up to two years in jail, one year of supervised release, $200,000 in fines, and $200 special assessment.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Jason P. Bologna.Palm Harbor Man Pleads Guilty to Defrauding More Than 1,000 Companies Promising Contracting Preferences with FEMARead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Michael Pirolo (48, Palm Harbor) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison.
According to the plea agreement, Pirolo served as the president of Government Contract Registry, Inc. (“GCR”), doing business as FEMA Contract Registration. He employed telemarketers who, during communications with victim-companies, falsely and fraudulently claimed that, for a fee, GCR would “register” the companies with the Federal Emergency Management Agency (FEMA) to enable them to receive preference in obtaining contracts from FEMA. The GCR telemarketers’ communications were based on instructions and scripts that they had received from Pirolo. In particular, the GCR telemarketers falsely and fraudulently stated that for a one-time fee of $500, the customer would be registered with FEMA, and that this registration would place the customer company on a list of preferred vendors. When the need for a vendor arose, the GCR telemarketer falsely stated that FEMA would bypass the contract acquisition process, contact the registered victim-company, and then offer a no-bid contract. At times, Pirolo also instructed GCR telemarketers to go back to victim-companies that had already paid the $500 one-time fee and seek renewal and payment of another fraudulent $500 fee.
To further the scheme, the GCR telemarketers provided victim-companies with an online GCR form that requested the same information as a form on FEMA’s website. FEMA does not charge a fee to companies to complete its form, which assists the agency with market research and does not “register” companies. Completing this form is not part of the United States government’s contract acquisition process. Once GCR telemarketers received the victim-companies’ information, GCR completed and submitted the online FEMA form that then enabled emails to then be sent from FEMA to the victim-companies, giving the appearance that the companies had been “registered.” The FEMA emails gave GCR the appearance of legitimacy.
Approximately 1,200 victim-companies were misled by this scheme, paying GCR at least $604,500.
This case was investigated by the Department of Homeland Security, Office of Inspector General and the General Services Administration, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Adam M. Saltzman.
Owner of Trash Company Pleads Guilty to FraudRead the Press Release
BOSTON – The owner of a trash company pleaded guilty today in federal court in Boston in connection with defrauding the operator of the Fall River Landfill out of approximately $473,000 in disposal fees.
Stephen P. Aguiar, Jr., 47, of Westport, pleaded guilty to three counts of mail fraud. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 17, 2017.
Aguiar was one of the owners and operators of Cleanway Disposal & Recycling, Inc., a trash removal and recycling company, and JS Aguiar Enterprises, Inc., a construction and equipment rental company, which were both located in Westport. Aguiar contracted with the company operating the Fall River Landfill to dispose of trash collected from his private clients in Fall River for one rate, and to dispose of trash collected from his private clients outside of Fall River for a higher rate. Aguiar also contracted with the City of Fall River to collect trash from the Fall River Housing Authority (FRHA) and dispose of the trash at the landfill. The company operating the landfill allowed the City of Fall River to dispose of trash collected from FRHA properties at no charge. Between 2009 and 2014, Aguiar misrepresented the origin of a significant portion of the trash he disposed at the landfill. Aguiar claimed he was disposing trash from the FRHA, when in fact he was disposing trash collected from his private clients, thereby defrauding Fall River Landfill of approximately $473,000 in revenue.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, restitution and forfeiture. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Massachusetts Inspector General Glenn A. Cunha; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit is prosecuting the case.
One Individual Indicted in April 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the April 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A Grand Jury indictment does not constitute evidence of guilt. A Grand Jury indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
DANIELLE ROSE ESCALANTE, age 31, of Garland, Texas
Possession Of A Counterfeit Obligation (4 Counts)The Indictment alleges that on or about December 13, 2016, in the Eastern District of Oklahoma, the Defendant, DANIELLE ROSE ESCALANTE, did with intent to defraud, possess four counterfeit obligations of the United States, in violation of Title 18, United States Code, Section 472, punishable by no more than 20 years imprisonment, a fine up to $250,000.00 or both for each count.
The charges arose from an investigation by the District 18 Drug and Violent Crimes Task Force, the Pittsburg County Sheriff’s Office, and the United States Secret Service.
Assistant United States Attorney Melody Nelson
Oklahoma Hospital, Former Hospital Administrator, and Physicians Agree to Pay $1,618,750 to Settle Allegations of Submitting False Claims for Medical Services Provided to Medicare PatientsRead the Press Release
Oklahoma City, Oklahoma –NORMAN REGIONAL HOSPITAL AUTHORITY d/b/a NORMAN REGIONAL HEALTH SYSTEM; GREG TERRELL; CHADWICK WEBBER, M.D.; MERL KARDOKUS, M.D.; RICK WEDEL, M.D.; GAUTHAM DEHADRAI, M.D.; BARBARA LANDAAL, M.D.; and SANJAY NAROTAM, M.D., have agreed to pay $1,618,750 to the United States to settle civil claims stemming from allegations that the hospital submitted false claims to Medicare, Mark A. Yancey, United States Attorney for the Western District of Oklahoma, announced today.
Norman Regional Hospital Authority d/b/a Norman Regional Health System ("Norman Regional") operates Norman Regional Hospital (the "Hospital"), which provides radiological and other services to patients in Norman, Oklahoma. Greg Terrell is a former Hospital administrator employed by Norman Regional, and the physicians are radiologists employed by Norman Regional (collectively the "Individuals").
Norman Regional previously employed radiological practitioner assistants ("RPAs") in its radiology department. RPAs are not physicians, and the services RPAs provide to Medicare beneficiaries cannot be billed to Medicare unless done under the appropriate level of supervision by a physician. There are certain radiological diagnostic services that require "personal" supervision. This means that a physician must be in the room supervising the RPA when the RPA performs the service. If a physician is not in the room, the service cannot be billed to Medicare.
The United States alleges that from January 1, 2008, through September 30, 2016, Norman Regional and the Individuals submitted, or caused to be submitted, false claims for payment to Medicare for radiological services performed by RPAs without the proper supervision by a physician. Specifically, the RPAs performed radiological services that required "personal" supervision, but a physician was not in the room supervising the RPA when the service was performed.
After being notified of the allegations, Norman Regional cooperated with the United States’ investigation.
In order to resolve the United States’ allegations, Norman Regional and the Individual Defendants have agreed to pay $1,618,750.
The settlement resolves allegations filed in Federal District Court in Oklahoma City by Dr. Lance Garber, a physician formerly employed by Norman Regional as a radiologist. This qui tam, or whistleblower, suit under the False Claims Act permits private individuals to sue on behalf of the government for false claims and to share in the recovery. The Act also allows the government to intervene in the lawsuit, which the government did in this case.
In reaching this settlement, Norman Regional did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the United States Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ronald R. Gallegos and Scott Maule.
Nineteen Defendants Charged in Federal Investigation That Disrupted Mexico-To-Chicago Narcotics Pipeline; 190 Kilograms of Heroin SeizedRead the Press Release
CHICAGO — Federal authorities have seized more than 190 kilograms of heroin as part of an investigation that disrupted a Mexico-to-Chicago narcotics pipeline and resulted in drug charges against 19 defendants.
The investigation, dubbed “Operation Over the Top,” spanned more than a year and included a seizure last month of 80 kilograms of heroin from a residence in Hanover Park. As part of the investigation, authorities shut down a heroin stash house in Bensenville and removed an additional 85 kilograms of heroin and cocaine from warehouses in St. Charles and Sugar Grove, and from a vacant lot on the West Side of Chicago. Law enforcement uncovered the alleged criminal activity through the use of wiretapped cellular phones, undercover narcotics purchases and extensive surveillance. The probe was led by the U.S. Drug Enforcement Administration and conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF).
The investigation resulted in drug charges against 19 defendants in federal court in Chicago. Several of the defendants were arrested within the past two weeks, including one this past weekend. Others were charged and arrested earlier in the investigation, including five defendants who recently pleaded guilty to federal drug charges.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the DEA; and James M. Gibbons, Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Substantial assistance was provided by the San Antonio, Texas, office of the Federal Bureau of Investigation.
“This investigation is an example of the extraordinary determination and cooperation among our law enforcement partners,” said Acting U.S. Attorney Levin. “Our office remains committed to halting the stream of heroin and other dangerous narcotics into our communities.”
“Too many lives are lost to heroin and too many families forever scarred,” said DEA Special Agent in Charge Wichern. “I'm proud of the work done by these agents, officers and prosecutors who have worked tirelessly to achieve these results, and I’m confident that with our continued partnership, we will have increasing success.”
“These charges and seizures are an example of how successful partnerships among law enforcement agencies can be in removing drug traffickers from our community,” said HSI Special Agent in Charge Gibbons. “Our agents will continue to be relentless in their pursuit to target criminal enterprises that threaten public safety.”
The charges describe various narcotics-distribution organizations operating in the Chicago area. Last month, JULIO CESAR FLORES SAENZ, 29, of Hanover Park, was arrested with approximately 80 kilograms of heroin hidden in his residence and a vehicle compartment. In October 2016, Flores Saenz distributed four kilograms of heroin to RAMON GARCIA, 30, of Riverside, Calif., and two kilograms of heroin to VICTOR MANUEL VAZQUEZ-MORALES, 33, of Philadelphia, Penn., according to criminal complaints and affidavits filed in U.S. District Court in Chicago. In December 2016, NOEL MIRANDA, 36, of Chicago, sold a kilogram of heroin to a buyer outside the Ford City Mall in Chicago, and a few weeks later attempted to obtain an additional seven-and-a-half kilograms of heroin, according to the charges. The deals were allegedly set up by Noel Miranda’s cousin, LUIS MIRANDA, 30, of Chicago, who was arrested last month with a kilogram of heroin in his possession, the complaints state. Flores Saenz, Noel Miranda and Luis Miranda are each charged with conspiracy to possess with intent to distribute and distribution of a controlled substance.
JUAN CONTRERAS, 35, of Aurora, and JESUS ALBERTO MARTINEZ-REYES, 39, of Schiller Park, allegedly led a separate faction of narcotics dealers who unloaded heroin at warehouses in Naperville, Sugar Grove and St. Charles. The heroin had been shipped to Chicago from Mexico in secret compartments of semi-tractor trailers. Juan Conteras’ brother, DAVID CONTRERAS, 39, of Aurora, and Juan Contreras’ nephew, EDGAR RODRIGUEZ CONTRERAS, 32, of Aurora, along with Martinez-Reyes and HEDILBERTO VEGA-ROCHA, 47, of Schiller Park, pleaded guilty earlier this year to their roles in the distribution conspiracy. In written plea agreements, David Contreras, Martinez-Reyes, Edgar Contreras and Vega-Rocha admitted that they conspired with Juan Contreras and each other to distribute heroin that had been shipped from Mexico. After the heroin was unloaded, the secret compartments were stuffed with cash proceeds from the drug sales, and the trucks would return to Mexico, according to the plea agreements. David Contreras, Martinez-Reyes, Edgar Contreras and Vega-Rocha are awaiting sentencing. Juan Contreras is charged with conspiracy to possess with intent to distribute and distribution of a controlled substance. His case is set for trial on Oct. 16, 2017, before U.S. District Judge Amy J. St. Eve.
The charges also identify a Bensenville man who ran a stash house where heroin and cash from drug sales were stored. JESUS SALGADO, 24, ran the Bensenville stash house and sold narcotics in the Chicago area, according to the complaints and an indictment returned in federal court in Chicago. Jesus Salgado’s drug-dealing operation was overseen by his father, LORENZO SALGADO, 54, who resides in Mexico but communicated with his son via phone, according to the charges. U.S. law enforcement last year obtained court authorization to surreptitiously record conversations between the father and son, during which the pair discussed selling narcotics, according to the complaints.
The charges describe instances in which Jesus Salgado and his girlfriend, RUBY JOY BUENAVENTURA, 26, of Chicago, delivered drugs to customers in the Chicago area after having the deal arranged remotely from Mexico by Jesus Salgado’s father. One of the deals occurred in the parking lot of a Bensenville strip mall in May 2016 when Jesus Salgado delivered two kilograms of heroin to SERGIO AREVALO-GOMEZ, 22, of Chicago. Arevalo-Gomez pleaded guilty earlier this year to distribution of a controlled substance. He is scheduled to be sentenced by U.S. District Judge John Z. Lee on May 2, 2017.
An indictment also identifies JOSE LUIS RIVERA JR., 39, of Lawton, Okla., as an alleged courier who traveled to New Jersey, Arizona & Mexico on behalf of the Salgado family. Jesus Salgado, Lorenzo Salgado and Rivera Jr. are each charged with conspiracy to possess with intent to distribute and distribution of a controlled substance. Lorenzo Salgado is considered a fugitive, while Jesus Salgado and Rivera Jr. are in federal custody and scheduled to appear for a status hearing on May 3, 2017, before U.S. District Judge Robert Blakey.
Also charged with various narcotics offenses are ALEXANDER LAGUNAS, 26, of Midlothian; SYLVIA JIMENEZ-CELEDON, 37, of Eagle Pass, Texas; WILLIE G. POWELL JR., 47, of Sandstone, Minn.; and MONIQUE FORTNEY, 37, of Dearborn Heights, Mich.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints and indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorneys Kelly Greening, Misty Wright and John Cooke.
Nigerian Citizen Indicted on Charges of Theft of Government FundsRead the Press Release
St. Louis, MO – Olusola Luke, 38, a citizen of Nigeria and resident of Guatemala, was ordered held and transferred to St. Louis for further proceedings on an Indictment charging him with conspiracy and theft of government funds in connection with a Stolen Identity Refund Fraud scheme he and others are alleged to have perpetrated between 2013 and 2015.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Karl Stiften, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. The arrest of Mr. Luke should serve as a strong warning to those who are considering similar conduct.”
According to the Indictment, Luke and others misused the identifiers of dozens of individuals to seek and obtain hundreds of thousands of dollars in government funds by filing false tax returns in the names of the identity theft victims. The Indictment alleges Luke and his co-conspirators sought more than $734,000 in refunds. Luke was arrested at Dulles International Airport late on the evening of April 6, 2017 and was taken into custody by the United States Marshals Service at that time. Today, he waived his right to a detention hearing in the Eastern District of Virginia and agreed to be transferred to St. Louis in custody to answer for the charges.
The case was investigated by Internal Revenue Service Criminal Investigation as part of its Stolen Identity Refund Fraud (SIRF) Initiative which seeks to disrupt the multi-billion-dollar enterprise whereby Americans’ identities are compromised and used to defraud the government through the income tax system.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
New Jersey Man Admits Wire FraudRead the Press Release
ALBANY, NEW YORK – Michael Pampalone, age 34, of Elizabeth, New Jersey, pled guilty today to defrauding a Rensselaer, New York, resident of $132,450.
The announcement was made by United States Attorney Richard S. Hartunian and Shelly A. Binkowski, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
As part of his guilty plea, Pampalone admitted that he stole money that he had promised to hold in escrow for a client seeking a mortgage. After the client sent him two wires totaling $132,450, Pampalone withdrew the money and used it for his own purposes.
Sentencing is scheduled for August 9, 2017 at 10:30 a.m. before United States District Judge Mae A. D’Agostino. Pampalone faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Postal Inspection Service and New York State Police, and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Navajo Man from Shiprock Pleads Guilty to Federal Involuntary Manslaughter and Assault ChargesRead the Press Release
ALBUQUERQUE – Travis Arthur Mustache, 34, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty this morning in Albuquerque, N.M., to federal involuntary manslaughter and assault charges.
Mustache was arrested in March 2017, on an indictment charging him with involuntary manslaughter and assault resulting in serious bodily injury. According to the complaint, Mustache killed one victim and seriously injured another while driving his vehicle under the influence of alcohol on the Navajo Indian Reservation in San Juan County, N.M., on June 15, 2016.
During today’s proceedings, Mustache pled guilty to the indictment and admitted killing one victim and assaulting the second victim, causing her to sustain serious bodily injury, by driving recklessly while under the influence of alcohol. Mustache acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle. According to plea agreement, the second victim suffered from rib fractures, a liver laceration, bruised lung tissue and scalp bruises.
At sentencing, Mustache faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI, the Shiprock office of the Navajo Nation Division of Public Safety and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Monmouth County, New Jersey, Man Admits Multimillion-Dollar Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Monmouth County, New Jersey, man admitted today that he conspired to defraud 76 victims of more than $4 million and evaded paying more than $273,000 in taxes, Acting U.S. Attorney William E. Fitzpatrick announced.
Peter Zuck, 66, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud and four counts of tax evasion.
According to documents filed in this case and statements made in court:
Zuck was a co-founder of Osiris Partners LLC and Osiris Partners Fund Limited. Starting in 2009, Zuck was employed in a management role with Osiris Partners LLC and Osiris Partners Fund Limited, including as a managing member and portfolio manager of the fund. Between June 2009 and November 2011, Osiris Fund Limited Partnership solicited 76 investors to invest $12 million in the Fund. Zuck, Michael Spak, who previously pleaded guilty to one count of conspiracy to commit wire fraud for his role in the scheme, and other conspirators defrauded investors by concealing investments losses in the fund, misappropriating assets from the fund for their own personal use, and obtaining management fees based on a fraudulently inflated net asset value.
Zuck admitted that members of the Osiris Fund Limited Partnership diverted $4 million in investors’ funds from the fund and fraudulently drew $3.9 million in management fees to which they were not entitled.
Zuck also admitted that he was issued $1.3 million in checks in connection with his employment at Osiris Partners LLC and Osiris Fund Limited Partnership, which he used to pay for personal expenditures but which he did not report as income to the IRS. Instead, Zuck concealed his income by causing the checks to be deposited in an account that he controlled but that was in his son’s name and falsely assigning the income to his son on IRS forms. He admitted that he attempted to evade $273,417 in income tax.
The charge of wire fraud conspiracy to which Zuck pleaded guilty carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. The information also includes a forfeiture provision for the fraudulent payments Zuck received from the scheme. Sentencing is scheduled for July 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou, David M. Eskew, and Shirley Emehelu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Tim Anderson Esq., Red Bank
Mishongnovi Man Sentenced to 46 Months for Assaulting Federal OfficerRead the Press Release
PHOENIX – This week, Jarvis Cook, 45, of Mishongnovi Village, Second Mesa, Ariz., was sentenced by Senior U.S. District Judge Susan R. Bolton to 46 months of imprisonment, to be followed by three years of supervised release. Cook, an enrolled member of the Hopi Tribe, had previously pleaded guilty to assault resulting in serious bodily injury.
On Feb. 10, 2016, an officer with the Bureau of Indian Affairs – Office of Justice Services (Hopi Agency) responded to a call at the Cook residence. When the officer attempted to arrest Cook, who had an active arrest warrant, Cook resisted arrest and assaulted the officer. The officer, an enrolled member of the Navajo Nation, successfully arrested Cook only after a lengthy struggle, suffering serious injuries during the assault.
The investigation in this case was conducted by the Federal Bureau of Investigation and Bureau of Indian Affairs – Office of Justice Services (Hopi Agency). The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8156-PCT-SRB
RELEASE NUMBER: 2017-029_Cook
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Midland Man Sentenced to Life in Federal Prison for Sex Trafficking a ChildRead the Press Release
In Midland today, a federal judge sentenced 43-year-old Irick Dron Oneal to life in federal prison for sex trafficking a 15-year-old girl announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Oneal pay a $5,000 special assessment under the Justice for Victims of Trafficking Act (JVTA).
On November 18, 2016, a federal jury convicted Oneal of one count of sex trafficking of a child. Evidence presented during trial revealed that on October 14, 2016, investigators took custody of the victim when she appeared at an Odessa hotel room. Previously, investigators responded to advertisements for sex with the minor posted on the Internet site Backpage.com. Authorities discovered Oneal in the hotel parking lot while waiting for the victim.
Oneal has remained in custody since his arrest in October 2016.
The investigation was developed as part of Operation Cross Country, a nation-wide operation conducted October 13-14, 2016 by the FBI to locate and rescue child victims of sex trafficking. The FBI was assisted by the Odessa Police Department, Texas Department of Public Safety Criminal Investigations Division and Homeland Security Investigations (HSI). Assistant U.S. Attorney Glenn Harwood prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Miami-Dade County Resident Convicted of Running a Drug Enterprise and Possessing FirearmsRead the Press Release
Following a five-day jury trial, a jury convicted a Miami-Dade resident of conspiracy to possess with intent to distribute marijuana, promethazine with codeine, and alprazolam, commonly known as Xanax, maintaining a premises for the purpose of distributing marijuana and promethazine with codeine, possession with the intent to distribute alprazolam, and two counts of possession of a firearm in furtherance of a drug trafficking crime.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Regional Operations Center, and Ian A. Moffett, Chief, Miami-Dade Schools Police Department, made the announcement.
Harrison Garcia, 27, faces consecutive statutory mandatory minimum sentences of 5 and 25 years as to the armed narcotics trafficking charges. Sentencing is scheduled for June 3, 2017 before U.S. District Judge Patricia A. Seitz.
According to the court record, including evidence presented during the trial, between February 2013 and October 18, 2016, Garcia - with the assistance of at least two associates - distributed a variety of controlled substances, including marijuana, promethazine with codeine, commonly referred to as “lean” or “drank,” alprazolam, lorazepam, and Percocet. To that end, Garcia maintained two Miami residences: at the first, he possessed narcotics, namely marijuana and promethazine with codeine, digital scales, hand-written ledgers, narcotics packaging material, and multiple semi-automatic pistols, including an FN 5.7, which shoots armor-piercing ammunition; at the second, he possessed more than 3,000 alprazolam pills, an UZI submachine gun and AK47 pistol - loaded and readily accessible, hundreds of rounds of ammunition, and over one hundred thousand dollars worth of jewelry and merchandise with original receipts, all purchased with drug proceeds.
At trial, the evidence showed that Garcia, who went by the alias “muhammad_a_lean” often posed on Instagram with large amounts of “lean” and other drugs, cash, and firearms, and boasted of owning fancy cars, including a Porsche Panamera and a Polaris Slingshot.
Mr. Greenberg commended the investigative efforts of ICE-HSI, FDLE and the Miami-Dade Schools Police Department. This case was prosecuted by Assistant U.S. Attorneys Jonathan K. Osborne and Rilwan Adeduntan.
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.
Mexican National Sentenced to Ten Years for Federal Methamphetamine Trafficking Conspiracy ConvictionRead the Press Release
ALBUQUERQUE –Javier Amador-Flores, 50, a permanent resident from Mexico who lived in Denver City, Tex., was sentenced today in federal court in Las Cruces, N.M., to 120 months in prison for his methamphetamine trafficking conviction. Amador-Flores will be deported after he completes his prison sentence
Amador-Flores was arrested on July 29, 2015, on an indictment charging him and four co-defendants, Joel Dominguez-Morales, 41, Maria Marcelina Cardoza-Burciaga, 41, Jose Manuel Trujillo, 42, all Mexican nationals, and Myrna Orozco, 32, a U.S. citizen, with participating in a conspiracy to distribute methamphetamine in Lea County, N.M., from May 1, 2015 through May 6, 2015.
Amador-Flores elected to proceed to trial and was found guilty July 20, 2016. The evidence at trial established that participated in a methamphetamine trafficking conspiracy by receiving and storing shipments of methamphetamine at the residence he shared with Orozco. Other members of the conspiracy distributed the methamphetamine in Lea County.
According to court documents, on May 1, 2015, an undercover agent arranged to purchase methamphetamine from Trujillo. On May 6, 2015, Trujillo informed the undercover agent that Dominguez-Morales would deliver the methamphetamine to the agent. Thereafter, Dominguez-Morales met with the undercover agent at a restaurant in Hobbs and directed the agent to meet him at an abandoned bar in a rural area outside of Hobbs, where a woman would deliver the methamphetamine. Later that day, law enforcement officers arrested Dominguez-Morales and Cardoza-Burciaga near the abandoned bar and seized almost four kilograms of methamphetamine.
Dominguez-Morales pled guilty on Sept. 4, 2015, and was sentenced on Sept. 21, 2016, to 145 months in prison. Cardoza-Burciaga pled guilty on Aug. 26, 2015, and was sentenced on Aug. 17, 2016. Orozco pled guilty on Nov. 6, 2015, and was sentenced on March 29, 2017.
Trujillo has yet to be arrested and is considered a fugitive. The charges against Trujillo are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, U.S. Customs and Border Protection and the Lea County Drug Task Force, with assistance from the Yoakum County (Texas) Sheriff’s Office. Assistant U.S. Attorneys Brock Taylor and Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Maryland Man Indicted on Cyberstalking Charges and for Sending Threatening Communications over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announced today the return of an indictment charging Seyed Ali Soroushjou (36, Cockeysville, Maryland) with two counts of cyberstalking and sending threatening communications over the Internet. If convicted, he faces up to five years in federal prison on each charge.
On April 7, 2017, FBI agents arrested Soroushjou at his residence in Maryland. He made his initial appearance in Baltimore and has been detained pending his transport to Jacksonville for further court proceedings.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
Luzerne County Man Pleads Guilty to Drug Distribution Resulting in Death of Pregnant Woman and Unborn FetusRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Antonio Zayas, age 47, of Hazleton, Luzerne County, Pennsylvania, pleaded guilty on April 10, 2017, before United States District Judge Malachy E. Mannion, to drug distribution resulting in death.
According to United States Attorney Bruce D. Brandler, Zayas pleaded guilty to knowingly and intentionally possessing with intent to distribute and distributing fentanyl, a Schedule I controlled substance, resulting in the death of another. Zayas was indicted by a grand jury in Scranton in August 2016.
Zayas admitted in court that he sold what he believed to be heroin to the victim on July 6, 2016. In reality, the drug was 100 percent fentanyl, a powerful synthetic opioid painkiller. The victim, who was 33 weeks pregnant at the time, overdosed and died. Toxicology results showed that both the mother and unborn fetus died from lethal levels of fentanyl in their systems. Zayas arranged the drug deal with the victim via text messages and proclaimed at one point that he had “damm good shit…….good enough to get way higher than intended lol.”
The case was investigated by the Drug Enforcement Administration in Scranton, and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 drug delivery charge carries a mandatory minimum sentence of 20 years and a maximum of life. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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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Lansdale Man Charge with Social Security Fraud and Identity TheftRead the Press Release
Jon Vincent, a/k/a “Nathan Laskoski,” 44, of Lansdale, Pennsylvania, was charged by criminal Information today with one count of Social Security fraud and one count of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen. According to the information,[1] after being convicted in the state of Texas, the defendant served a prison term, then escaped from a Texas halfway house in 1996. The information charges that shortly after his escape, the defendant stole the name of the deceased Nathan Laskoski to craft a new identity, obtaining a birth certificate for Laskoski, which he used to apply for a Social Security number in Laskoski’s name. According to the information, the defendant has been living using the deceased victim’s stolen identity since mid-1996. His alleged use of the stolen identity was discovered when a relative of the deceased victim discovered information on the ancestral website “Ancestry.com” indicating that someone was impersonating the decedent.
If convicted, the defendant faces a substantial period of incarceration, a three-year period of supervised release, a fine of up to $500,000 and a special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, the United States Postal Inspection Service and the United States Department of Labor Office of Inspector General, with assistance from the Lansdale Police Department. It is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
KC Man Sentenced for Bank Fraud 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 was sentenced in federal court today for his role in a bank fraud conspiracy in which he operated a flop house where he paid drug addicts for stolen identity information that was used to create counterfeit checks.
Tyler Sutton, 55, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to eight years and four months in federal prison without parole. The court also ordered Sutton to pay $39,927 in restitution to his victims.
On Sept. 19, 2016, Sutton pleaded guilty to participating in a conspiracy to commit bank fraud, possession of counterfeit checks, possession of stolen mail, and identity theft. Sutton also pleaded guilty to two counts of aggravated identity theft.
According to court documents, Sutton led a crime wave in his northeast Kansas City neighborhood. Sutton was a property manager residing in the 400 block of Gladstone Boulevard, although he only paid rent for one month and was evicted in October 2014. He used the house to conduct his illegal business by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers and bank account information. Sutton often allowed the addicts to stay at the residence.
Sutton also unlawfully obtained identity and account information belonging to other persons and businesses by stealing these items from businesses and from the mail. Sutton and co-conspirators used the stolen identity information to create counterfeit identifications and checks, which were cashed at retail stores and financial institutions.
Court documents state that, besides the banks and merchants who accepted the counterfeit and stolen checks, people who lived in Sutton’s neighborhood were victimized by his crimes. Because Sutton used his rental home as a flop house to attract addicts and paid them to commit crimes, the neighborhood was rife with drug, property, and sometimes more violent crime. Between July 16, 2013, to July 9, 2014, police were dispatched to Sutton’s residence an incredible 73 times for a wide variety of crimes, such as disturbances, residential burglaries, suspicious parties, stolen autos, forgeries and a dead body (a drug overdose).
Sutton did not usually create counterfeit identifications and checks himself, nor did he personally present counterfeit identifications and cash checks. Rather, he instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, Sutton attempted to insulate himself from liability.
Sutton admitted that the intended loss from the scheme totaled $83,980; the actual loss was $39,927.
Co-defendants Gary K. Keesler, 37, and Chad M. Mills, 28, both of Kansas City, Mo., and Christopher Hite, 34, of Windsor, Mo., have pleaded guilty to their roles in the conspiracy and have been sentenced.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Justice Department Seeks to Stop Louisiana Tax Return Preparer from Preparing Federal Tax ReturnsRead the Press Release
A Louisiana tax return preparer, Finecia Draper of Simmesport, Louisiana prepares fraudulent tax returns for her customers, according to a new civil suit filed by the Justice Department. The suit, filed in federal court in Alexandria, Louisiana asks the court to permanently bar Draper from preparing federal tax returns for others. The suit also asks the court to order Draper to turn over a list of all taxpayers for whom she has prepared returns since Jan. 1, 2013.
The complaint alleges that Draper, who prepares returns through her business Unlimited Fashion located at 245 Moreau St. in Simmesport, prepares returns that fraudulently understate her customers’ income tax liabilities and/or overstates the refunds they are entitled to receive. According to the complaint, Draper does so by fabricating or inflating business losses claimed on her customers’ returns. In many of the examples cited in the complaint, the taxpayer did not even own or operate a business. The bogus losses that Draper claims fraudulently understate the income her customers earned which results in underreporting their tax liabilities and overstating the refunds they are due, according to the complaint.
The complaint additionally alleges that Draper also fraudulently claims and/or inflates the Earned Income Tax Credit (EITC) on returns she prepares. The EITC is a benefit for working taxpayers with low to moderate income. The amount of EITC a taxpayer can claim is determined by the amount of income the taxpayer earned and the number of dependents a taxpayer claims. The complaint alleges that Draper uses false business losses to improperly reduce the earned income on her customers’ returns and claims improper dependents, to maximize the EITC. The complaint alleges that Draper does so without doing the due diligence required by Internal Revenue Service (IRS) regulations and despite being previously penalized over $97,000 by the IRS for failure to exercise the required due diligence.
From 2011 to 2015, Draper prepared over 2,000 returns, according to the complaint. The complaint alleges that audits of 163 returns prepared by Draper in 2011, 2012, and 2013 revealed that she overstated refunds and understated tax liability on 134 (82 percent) of these returns which resulted in a tax loss of over $275,000 in the aggregate.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.