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Tuesday 4 April 2017
Cape Cod Woman Pleads Guilty to Heroin TraffickingRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin on behalf of Denzel Chisholm and the “Nauti-Block” gang.
Eelyese Mateo, 20, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and money laundering on behalf of Denzel Chisholm and the “Nauti-Block” gang. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 18, 2017.
In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular. According to court documents, Mateo and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. Mateo, who was in a personal relationship with Chisholm, stored heroin at her home and delivered it on Chisholm’s behalf to Chisholm and other co-conspirators. Chisholm would frequently call Mateo and tell her to either deliver heroin or pick up heroin at a known stash house. In total, Mateo agreed to accept responsibility for between 400 and 700 grams of heroin. Chisholm's arraignment is set for April 13, 2017.
The charge of conspiracy to distribute and possession with the intent to distribute heroin provides for a maximum sentence of 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cambridge Man Sentenced to Five Years for Extortion and GamblingRead the Press Release
BOSTON – A Cambridge man was sentenced yesterday in U.S. District Court in Boston to five years in prison for extortion and conducting an illegal gambling business.
Anthony Corso, 52, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison, to be followed by three years of supervised release. Judge Casper also issued an order forfeiting over $68,000 in cash recovered in searches or from bank accounts, as well as 30 fake luxury watches also recovered in searches, and a forfeiture money judgment order against Corso for $60,000.
On Dec. 20, 2016, Corso pleaded guilty to conducting an illegal gambling business, conspiring to make and making extortionate extensions of credit, and conspiring to collect and collecting extensions of credit by extortionate means. Judge Casper deferred acceptance of Corso’s plea agreement until yesterday.
Corso was the last of three men to be sentenced as part of an illegal bookmaking business. Co-defendant Joseph Yerardi was sentenced March 17, 2017, to seven years in prison for extortion and conducting an illegal gambling business. On March 21, 2017, co-defendant Michael Burke, 45, of Winthrop, Mass., was sentenced to two years in prison, to be followed by two years of supervised release.
In 1995, Corso was convicted in U.S. District Court in Boston of racketeering and was sentenced to 151 months in prison.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Cambridge, Medford, and Quincy Police Departments. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
California Man Sentenced for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Walter Drakeford (72, Santa Monica, CA) to two years in federal prison for attempting to interfere with the administration of the internal revenue laws. He pleaded guilty on May 17, 2016.
According to court documents, between September 2006 and March 2009, Drakeford and another individual falsely purported to own the rights to landfill methane credits. They marketed the purported credits to a network of tax return preparers for use on individual taxpayers’ tax returns, despite knowing that the credits were non-existent and/or not able to be claimed by the individual taxpayers. The tax return preparers advised their individual taxpayer-clients to claim the credits on their tax returns. If an individual taxpayer received the tax refund as a result of the landfill methane credit claimed, they were obligated to remit a substantial portion of that refund, frequently as much as 80%, to Drakeford and others.
After questioning by the IRS regarding the purported credits, Drakeford presented false and fraudulent documentation to the IRS regarding purported Devonian shale credits in an unsuccessful effort to prevent the IRS from attempting to collect the monies owed resulting from the disallowances of the purported landfill methane credits.
When that effort failed, Drakeford knowingly caused to be presented to the IRS fraudulent and false amended tax returns that claimed purported dry hole expenses, again in an unsuccessful attempt to prevent the IRS from attempting to collect the monies owed from the purported landfill methane credits. Drakeford and others provided the tax return preparers a formula by which to calculate the amounts of the dry hole expenses to be claimed by the individual taxpayers. The formula was designed to fraudulently eliminate the individual taxpayers’ debts to the IRS based on the disallowance of the false and fraudulent landfill methane credits.
The government estimates the total amount of false and fraudulent credits claimed in this case to be $4,211,757, a substantial amount of which has been recovered from the individual taxpayers.
This case was investigated by Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
California Man Pleads Giulty to $6.6 Million K2 Conspiracy in Callaway CountyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Sacramento, Calif., man pleaded guilty in federal court today to his role in drug-trafficking and money-laundering conspiracies related to the distribution of more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Michael James Butler, 40, of Sacramento, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in an April 20, 2016, federal indictment.
By pleading guilty today, Butler admitted that he participated in a mail fraud conspiracy from Dec. 18, 2012, to July 16, 2015, and participated in a money-laundering conspiracy during that time; both conspiracies were related to the distribution of synthetic cannabinoids.
According to court documents, the drug-trafficking conspiracy generated $6,656,843 in gross proceeds. Butler acknowledged today that his conduct directly contributed to the generation of approximately $753,688 of that total; under the terms of today’s plea agreement, he must forfeit a money judgment of that amount to the government.
Butler managed a co-conspirator’s company that was used to send FedEx packages containing synthetic cannabinoids to wholesale customers at various locations in the United States. Butler also established and controlled another company, Butler-Whayne Industries, LLC. Although Butler-Whayne Industries was ostensibly in the business of selling Xboxes, Playstations, games and accessories, Butler admitted that the company sent packages containing synthetic cannabinoids to locations in Callaway County, including Inscentives Resale in Auxvasse and Fulton and Esscentials/S&J Tobacco in Holts Summit.
Butler is among eight co-defendants who have pleaded guilty in this case. Shawn Michael Browning, 26, Timothy Christopher Sandfort, 31, Brandon Derek Rader, 32, and Joshua Adam Sheets, 31, all of Fulton, pleaded guilty to the same charges.
Dara Leanne Shirley, 30, of Fulton, pleaded guilty to participating in the money-laundering conspiracy. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, each pleaded guilty to distributing synthetic cannabinoids.
Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
These businesses purchased synthetic cannabinoids from Butler and other co-conspirators in California and Nevada. At least 251 shipments of synthetic cannabinoids were made via FedEx and UPS. Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit.
The packages of synthetic cannabinoids bore misbranded labels that misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.
By pleading guilty to his role in the money-laundering conspiracy, Butler admitted that the nature and source of the proceeds of the distribution of synthetic cannabinoids was concealed by the transfer of funds between business entities created to appear to conduct lawful commerce.
Under federal statutes, Butler is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony McCutcheon, 51, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine and possession of a firearm in furtherance of drug trafficking before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between June 2013 and February 25, 2014, the defendant conspired with others to distribute crack cocaine in the Buffalo area. McCutcheon supplied cocaine to co-defendants Troy Cooley, Andre Owens, Morrell Buster, and William Jefferson. During the execution of a search warrant at the defendant’s East Amherst Street residence, law enforcement officers recovered cocaine, crack cocaine, baggies and scales. Officers also recovered a loaded 9mm semi-automatic handgun.
McCutcheon was charged along with Cooley, Owens, Buster, Jefferson, Deandre Sparks, Markiel Hall, Alicia Maghett, and Carmella Rivera. All nine defendants have been convicted.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Lackawanna Police Department, under the direction of Chief James Michel.
Sentencing is scheduled for July 26, 2017, at 2:00 p.m. before Judge Skretny.
Broward County School District Employee Pleads Guilty to Obstructing Drug InvestigationRead the Press Release
A Broward County School District employee has pled guilty to obstructing a drug investigation.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Porsha Session, 31, of Boynton Beach, Florida, pled guilty today before U.S. Magistrate Judge David Lee Brannon in West Palm, Florida, to the one-count Indictment charging her with obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). Session faces a statutory maximum term of 20 years’ imprisonment and a fine up to $250,000.
According to the indictment, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise.
Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Greenberg commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Berkeley County man indicted for possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wesley Chalk, of Inwood, West Virginia, was indicted by a grand jury sitting in Wheeling today for possession and distribution of child pornography, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Chalk, age 41, was indicted on one count of “Distribution and Receipt of Child Pornography” and one count of “Possession of Child Pornography.” Chalk is accused of distributing and receiving child pornography and having in his possession child pornography depicting a prepubescent minor and a minor under the age of 12. The crimes are alleged to have occurred between March 2015 and August 2016 in Berkeley County.
Chalk faces up to twenty years and a fine of 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 L. Vogrin is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Phillip Larry Gonzales, 29, of Albuquerque, N.M., was sentenced today in federal court to 36 months in prison followed by three years of supervised release for his heroin trafficking conviction. In addition, Gonzales was sentenced to a year and a day of imprisonment for violating his supervised release on an earlier conviction, to be served consecutive to the three-year sentence for a total sentence of 48 months of imprisonment.
Gonzales was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Gonzales was arrested on Aug. 10, 2016, on an indictment charging him with distributing heroin on July 27, 2016, in Bernalillo County, N.M. On Dec. 5, 2016, Gonzales pled guilty to the indictment, and admitted that on July 27, 2016, he sold 26.7 grams of heroin to an undercover law enforcement agent.
To date, 32 of the 104 defendants have entered guilty pleas, and four defendants have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the ATF and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Alaska Oil Company Agrees to Pay $10 Million in Penalties to Settle Federal Claims for Violating the Jones ActRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Furie Operating Alaska LLC (“Furie”), a company whose focus is exploration and production of natural gas and oil in Cook Inlet, has agreed to pay $10 million to satisfy a civil penalty originally assessed against it by U.S. Customs and Border Protection (“CBP”) for violating the Jones Act. Furie was penalized when it transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security. This resolves a civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.
The Jones Act, passed in 1920, prohibits a foreign vessel from transporting merchandise between points in the United States. A violation of the Jones Act may result in the assessment of a civil penalty equal to the value of the merchandise. A waiver may be obtained, in limited circumstances, from the Secretary of the Department of Homeland Security when he or she believes it is in the interest of national defense, following a determination that there is no U.S. vessel available to engage in the transport. settlement in this case is the largest Jones Act penalty in the history of the Act.
Resolution of this case demonstrates that the Jones Act will be actively enforced and that an intentional violation will not be rewarded. The settlement also provides closure to Furie and is designed not to undermine its ability to bring natural gas to market in Southcentral Alaska.
Acting U.S. Attorney Schroder commends U.S. Customs and Border Protection, Office of General Counsel, for their active support and assistance leading to the settlement in this case.
Monday 3 April 2017
Williamsville Man Charged with Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Chase, 49, of Williamsville, NY, was arrested and charged by criminal complaint with enticement of a minor. The charge carries a maximum of 10 years in prison and a $250,000 fine.
Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that according to the complaint, on March 10, 2017, the defendant, using the name “The Dark Father,” initiated an online conversation with a female. Chase stated, “So, are you still looking for a boyfriend? And do you like older men?” The defendant noted that he was looking for an “[e]specially submissive” girlfriend and asked for a cell number to continue a conversation.
The following day, on March 11, 2017, Chase texted the female and asked, “Now the evil question are you really 18.” In the text, the female indicated that she was only 15 years-old. The defendant, however, continued to contact the female and request “naughty photos.” Following graphic conversation during which Chase described in detail sexual activities with the female, on March 29, 2017, the defendant arranged to meet the female at Walgreens in Depew, NY on April 2, 2017, in order to have sex with her. On April 2, 2017, shortly before the appointed meeting time, special agents with Homeland Security Investigations observed Chase’s car parked just down the street from the Walgreens where he had arranged to meet the female. After he pulled into the Walgreens parking lot, defendant was placed under arrest. He was found to possess condoms and sex lubricant.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Wetzel County man convicted of passing counterfeit money and illegally possessing a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Franklin K. Dotson, 32, of New Martinsville, West Virginia, was convicted today for passing counterfeit money and being a felon in possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Dotson admits to using counterfeit money at the 7 Eleven in New Martinsville in February 2017. Dotson, having previously been convicted of bank robbery in the US. District Court in 2011, did have in his possession a .32 auto caliber pistol. Dotson pled guilty to one count of “Uttering Counterfeit Obligations or Securities” and one count of “Prohibited Person in Possession of a Firearm.”
Dotson faces up to twenty years and a fine of up to $250,000 for count one, and he faces up to ten years and up to a $250,000 fine for count two. 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 Robert H. McWilliams prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and The United States Secret Service investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Virginia Man Sentenced to 111 Months’ Imprisonment for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a man from Virginia was sentenced on March 31, 2017, by United States District Judge Malachy E. Mannion, to serve 111 months’ imprisonment for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Kwa’shon Roane, age 24, of Gloucester, Virginia, previously pleaded guilty to the charges of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. Roane, was one of four individuals, including Rodney Whiting, age 23, of Scranton, Pennsylvania, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, of Newport News, Virginia, who were indicted by a grand jury in March 2016, for the armed robbery of the Econo Lodge.
Previously, Kelvin Robinson and Tracy Whiting were each sentenced to serve seven years’ imprisonment by Judge Mannion for charges related to the incident. Rodney Whiting has also entered a guilty plea and is awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office, the Taylor Borough and Moosic Borough Police Departments, and numerous local law enforcement agencies.
Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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United States Attorney’s Office Observes National Crime Victims’ Rights WeekRead the Press Release
SAVANNAH, GA – This week is National Crime Victims’ Rights Week, a time to raise awareness about crime victims’ rights, and our nation’s progress in advancing those rights. This year’s theme, Strength, Resilience, Justice, reminds us all that victims are strengthened by the response they receive; that organizations are resilient in response to challenges; and, that communities are able to seek collective justice and healing.
Since the 1980s, our nation has made dramatic progress in securing rights, protections, and services for victims of crime. Every state has enacted victims’ rights laws, and most states have constitutional victims’ rights amendments. All states have victim compensation funds, and more than 10,000 victim service agencies have been established throughout the country. The Office for Victims of Crime, U.S. Department of Justice, supports a range of programs for crime victims, and seeks to extend those services to those who are underserved.
The 2004 Crime Victims’ Rights Act (CVRA) grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Southern District of Georgia has a dedicated Victim-Witness Unit that serves federal crime victims across the District’s 43 counties. Members of this Unit notify victims of significant case events through the Department of Justice’s Victim Notification System. Such notice allows victims to participate in court proceedings and to make their voices heard. In 2016, U.S. Attorney’s Offices’ across the country provided over 13 million case notices and accompanied over 22,000 victims to court hearings and trials. In addition to notification and court accompaniment, the victim units provide other essential services to victims, such as making referrals for counseling, securing temporary housing and assisting with access to victim compensation funds.
In conjunction with National Crime Victims’ Rights Week, the United States Attorney’s Office for the Southern District of Georgia and Criminal Justice Department of Savanah State University are sponsoring training for victim advocates, first responders and law enforcement officers on strategies for interactions with the mentally ill. The training will be held April 13th in Savannah, Georgia. For more information, please contact Law Enforcement Coordinator Dan Drake at (912) 201-2669 or [email protected].
U.S. District Judge Denies Environmentalists’ Challenge to Four Oil and Gas Leases Sold by BLM at November 2011 Lease SaleRead the Press Release
SALT LAKE CITY - In a case before the court on a Motion for Review of Agency Action filed by the Southern Utah Wilderness Alliance, Natural Resources Defense Council, and The Wilderness Society, the plaintiffs challenged the BLM’s decision to issue four oil and gas lease parcels in the November 2011 oil and gas lease sale, and its subsequent decision to approve the Seven-Well Project.
The plaintiffs’ suit names the United States Department of the Interior, BLM, and the Price Field Office Manager for BLM, Ahmed Mohsen as defendants. XTO Energy, Inc., which purchased the leases and submitted the proposal for the Seven-Wells Project, intervened as a defendant.
As explained in the attached memorandum decision and order, U.S. District Court Judge Jill N. Parrish affirms the agency’s action regarding the 2011 Lease Sale and dismisses plaintiffs’ claims regarding the Seven-Well Project as moot.
Judge Parrish memorandum decision and order.pdfThree Plead Guilty to Marijuana Cultivation Operation at Prehistoric Native American SiteRead the Press Release
FRESNO, Calif. — Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30; and Javier Garcia-Castaneda (Garcia), 38, both of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation on public land in Tulare County in the Sequoia National Forest., United States Attorney Phillip A. Talbert announced. In pleading guilty, the men also agreed to make restitution to the U.S. Forest Service for the damage to public land and natural resources caused by their cultivation activities.
According to court documents, the men conspired with each other and co-defendant Carlos Piedra‑Murillo (Piedra), 30, of Mexico, to cultivate marijuana at a prehistoric Tübatulabal Native American archaeological site in the Domeland Wilderness area. The Domeland Wilderness is a federally designated wilderness area that is located about 55 miles northeast of Bakersfield. Law enforcement officers eradicated over 8,000 marijuana plants from this and another site and seized 17 pounds of processed marijuana, a .22-caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition. Piedra pleaded guilty to the conspiracy charge last month.
The marijuana cultivation operation caused extensive environmental damage to about 10 acres of public land. The area was located within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek. Fertilizer and pesticides, including illegal zinc phosphide from Mexico were found at the site. Large piles of trash were also found near the campsite. The northernmost area of the operation caused extensive damage to a large prehistoric Tübatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar is prosecuting the case.
Lopez, Torres, and Garcia are scheduled for sentencing on June 26, 2017, by U.S. District Judge Lawrence J. O’Neill. Piedra is scheduled for sentencing on June 5, 2017. Lopez faces a mandatory prison sentence of five years in prison and a maximum term of 40 years in prison and a $5 million fine. The other men face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Piedra, Torres, and Garcia are subject to deportation to Mexico following the completion of any prison sentence imposed.
Three More Commercial Fisherman Plead Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, Bryan H. daniels, 54, of Belhaven, North Carolina, STEPHEN DANIELS, 63, of Wanchese, North Carolina, and JAMES K. LEWIS, 46, of Gloucester, North Carolina pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. The electronic mail retrieved, which included captains sharing LORAN coordinates and Buoy Numbers where they successfully harvested Atlantic striped bass, combined with the vessel monitoring track lines, illustrated a concerted effort by various commercial fisherman to illegal target and harvest that species from the EEZ. The review also revealed multiple years of illegal harvests by commercial trawlers.
Based on its review, NOAA determined that between January 27, 2009, and February 2, 2010, BRYAN H. DANIELS, then Captain of the Joyce D, a commercial trawler, harvested approximately 8,625 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The estimated fair market retail value of the 8,625 pounds of illegally harvested fish exceeds $68,000. BRYAN H. DANIELS submitted false statements for two of three fishing trips charged in the Indictment, and under penalty of perjury to NOAA, claimed he caught the fish in state waters.
Based on this same review, NOAA determined that between January 27, 2010, and February 9, 2010, STEPHEN DANIELS, then Captain of the Bailey Boy, a commercial trawler, harvested approximately 11,843 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Wanchese, North Carolina. The estimated fair market retail value of the 11,843 pounds of illegally harvested fish exceeds $94,000. To further conceal his illegal activities, on at least two occasions, STEPHEN DANIELS, off-loaded 100 fish, then captained his vessel into inland waters, before returning a few hours later to off-load the remainder of the catch.
NOAA also determined that between January 19, 2009, and January 27, 2009, LEWIS, then the Captain of the fishing vessel Wonder Woman, harvested approximately 3,368 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Engelhard, North Carolina. The investigation further revealed that between on or about January 27, 2010, and February 9, 2010, LEWIS, then the Captain of the fishing vessel Gulf Stream III, harvested at least an additional 5,025 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Wanchese, North Carolina. Similar to STEPHEN DANIELS, to further conceal his illegal activities, on at least one occasion, LEWIS, off-loaded 100 fish, then captained his vessel into inland waters, before returning a few hours later to off-load the remainder of the catch. The estimated fair market retail value of the 8,393 pounds of illegally harvested fish exceeds $67,000.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,160 ocean trawl quota were taken illegally from the EEZ.
Eight other commercial fishermen previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO; United States v. John Roberts¸ No. 4:15-CR-3-BO; United States v. David Saunders, Jr., No. 2:15-CR-2-B0; and United States v. Michael Potter, No. 2:15-CR-6-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues in DOJ’s Environmental Crimes Section to prosecute these important cases.”
Manny Antonaras, Acting Assistant Director for NOAA’s Southeast Division’s Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
A sentencing hearing will be set at a later date. All three defendants face a maximum sentence of 5 years imprisonment and/or a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Shennie Patel and Shane Waller of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Tampa Man Sentenced to More Than Ten Years for Conspiring to Distribute Crack CocaineRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Curtis Williams, Jr. (34, Tampa) to 10 years and 10 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. He pleaded guilty on November 29, 2016.
According to court documents, between January and July 2016, Williams and his co-conspirator, Brian Allen, engaged in a mutually beneficial business arrangement in which Williams supplied Allen with crack cocaine to sell on the street. During the seven-month period, undercover law enforcement officers bought crack cocaine from Allen on 12 occasions, totaling more than 128 grams.
Allen pleaded guilty on January 17, 2017. His sentencing hearing is set for May 12, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Michael Leeman and Mike Gordon.
South Jersey Man Admits Role in Crack Distribution ConspiracyRead the Press Release
CAMDEN, N.J. - A Camden man today admitted his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Boyd, a/k/a “Breet,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court:
Joseph Boyd admitted that he sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden and supplied crack cocaine to other members of the conspiracy to sell in the area.
Joseph Boyd – along with Jason Boyd, Tony Wilson, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson – were originally charged by complaint on Sept. 9, 2016, following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities.
The drug distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 13, 2017.
Jason Boyd, Stallworth, and Wilson have all pleaded guilty to drug distribution conspiracy and firearms possession and await sentencing. The charges against Thomas, Whitaker, Griffin and Dickerson are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: David Rudenstein, Esq.
South Coast Reentry Job Fair & ExpoRead the Press Release
Contact Person: Joe Brewer, (864) 282-2121
Summerville, South Carolina– The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The First Annual South Coast Reentry Job Fair & Expo is being held Tuesday, May 9, 2017, from 12:00 pm to 3:00 pm at the Dorchester County Adult Ed Center, located at 1325 A Boonehill Road, Summerville, SC 29483.
This fair, which targets the Lowcountry, is part of a series of fairs, including Florence, the Upstate, and the Midlands, anticipated annually. The partner organizations hope that a tailored expo for people with a criminal background will provide some focused help for the particular obstacles individuals face after returning home.
“A critical component in the transition from prison to a law-abiding life is a job. We in the U.S. Attorney’s Office recognize that our state partners - S.C. Works, S.C. Vocational Rehabilitation, SC Department of Social Services, and S.C. Probation, Pardon and Parole – do terrific work in preparing our fellow South Carolinians for the work force and in aligning our workers with jobs to which they are suited. It is our privilege to learn from the many years’ experience of those in these State agencies as we develop events specifically for individuals with a criminal background,” said U.S. Attorney Beth Drake. “We are excited to connect citizens not simply to employment opportunities but to other critical resources like GED programs that facilitate the transition from prison to employment and a law-abiding life.”
The fair and expo will include area employers and other organizations who participate with, and provide resources for, returning citizens. Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected]. In their hiring initiatives and practice, John Hopkins Hospital has demonstrated that returning citizens are some of the most loyal and productive talent pools available to an employer.
“Ensuring that formerly incarcerated individuals have stable jobs and lives, and thereby making them less likely to reoffend, is as important to crime prevention and community safety as our efforts in prosecution,” said Ms. Drake.
Professional dress is required. Discounted SLED criminal background checks will be provided on site. And, the event will also feature workshops on how to seek expungements and pardons of prior criminal convictions. Some transportation arrangements may be available. Please inquire with Marcos Barahona of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected].
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Saratoga Entrepreneur Sentenced to 48 Months in Prison for Crimes Committed in Connection with Boulder Creek Hotel Construction ProjectRead the Press Release
SAN JOSE—Sanjiv Kakkar was sentenced today to 48 months in prison and ordered to pay $4,208,565.36 in restitution to the victim for wire fraud and making misstatements to a bank announced U.S. Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge, after a twelve-day jury trial ending with a guilty verdict on all counts.
The evidence at trial demonstrated Kakkar, 55, of Saratoga, presented false information to a bank in connection with refinancing a hotel property he owned in Boulder Creek, Calif. In November of 2008, Kakkar sought to secure a $6 million loan to refinance the Brookdale Inn and Spa. In connection with the loan, he submitted bogus documents to a bank, including falsified income information and tax returns, which overstated his business income. Kakkar also did not comply with his continuing obligation under the terms of the loan to provide the bank with updated financial records and further tax documents. Further, between January and June 2009, Kakkar submitted false and fraudulent documents to an escrow company. Kakkar induced the escrow company to advance hundreds of thousands of dollars in wire progress payments that were earmarked for reimbursement of construction costs.
A federal grand jury issued a superseding indictment against Kakkar on June 2, 2016, charging him with one count of making misstatements to a bank, in violation of 18 U.S.C. § 1014, and six counts of wire fraud, in violation of 18 U.S.C. § 1343. On November 8, 2016, a jury found Kakkar guilty of all the charges presented in the superseding indictment.
In addition to the prison term, and restitution, Judge Davila ordered Kakkar to pay a $20,000 fine and to serve three years of supervised release. Kakkar currently is released on bond and has been ordered to surrender on or before June 22, 2017, to begin serving his sentence.
Assistant U.S. Attorneys Amie Rooney and Maia Perez are prosecuting the case with assistance from Nina Burney and Elise Etter. The case is the result of an investigation by the ATF.
Sanofi Pasteur Agrees to Pay $19.8 Million to Resolve Drug Overcharges to the Department of Veterans AffairsRead the Press Release
Sanofi-Pasteur has agreed to pay $19,868,194 to resolve claims that it incorrectly calculated drug prices and thereby overcharged the U.S. Department of Veterans Affairs (VA) for drugs under two contracts between 2002 and 2011, the Department of Justice announced today. Sanofi Pasteur, a Delaware corporation headquartered in Swiftwater, Pennyslvania, is the vaccines division of Sanofi-Aventis.
“It is important that pharmaceutical companies provide complete, accurate, and current information to the VA about the pricing of their drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will ensure that pharmaceutical companies follow the rules for drug pricing when selling to the government.”
Under the Veterans Health Care Act, 38 U.S.C. 8126, drug manufactures may not charge the VA more than a maximum amount, known as the Federal Ceiling Price (FCP), for covered drugs. Sanofi Pasteur disclosed to the VA that it had incorrectly calculated the FCP for certain drugs from 2007 to 2011 and overcharged the VA. The Office of Inspector General for the VA investigated the matter, and it determined that the error resulted in overcharges going back to 2002.
“Overcharging VA depletes funds that are available to care for our veterans,” said Director of the Healthcare Resources Division Mark Myers of Veterans Affairs, Office of Inspector General. “We will continue to hold companies accountable for errors in drug pricing.”
Under the settlement, in addition to paying approximately $19.8 million, Sanofi Pasteur has agreed that it will not pursue claims for reimbursement for sales where it contends its error in calculating the FCP resulted in a lower price to the VA.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the Office of Inspector General of the Department of Veterans Affairs. No lawsuit was filed in this matter and there has been no determination of liability.
Rochester Woman Pleads Guilty to Illinois Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Patricia Nelson, 33, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that on March 16, 2015, the defendant robbed the BMO Harris Bank located at 2401 W. Schaumburg Road in Schaumburg, Illinois. Nelson was indicted by a federal grand jury in the Northern District of Illinois for this crime, but pleaded guilty in the Western District of New York after being arrested here in October of 2016 on an arrest warrant from Illinois.
On the date of the robbery, at approximately 9:15 a.m., the defendant entered the BMO Harris Bank wearing a dark hooded sweatshirt, a purple stocking cap, black glasses, and black pants. Nelson went to the customer counter and wrote a demand note on a deposit slip that read, “Put all cash I 2 envelopes No Alarms No DYE Packs Keep quiet & go quickly.” The defendant then approached a teller, placed the note on the counter, and gestured with her hands to hurry. The teller then provided a specific amount of cash to the defendant who took the money and left the bank. Nelson got into the passenger side of her vehicle, which her boyfriend was driving.
The two drove from Illinois to Colorado where they were apprehended and Nelson was ultimately charged with a previous bank robbery at the Canandaigua National Bank on March 10, 2015 in Rochester. Nelson pleaded guilty to Robbery in Monroe County Court and was sentenced to one year in prison. Following her release from prison on that charge, the defendant was arrested for the Illinois bank robbery.
As part of the plea agreement, the defendant agreed to pay $2,320 in restitution to the BMO Harris Bank
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 1, 2017, at 10:00 a.m., before Judge Siragusa.
Rochester Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy Jr. announced today that Luis Osorio, 27, of Rochester, NY, was sentenced by U.S. District Judge Elizabeth A. Wolford to 63 months in prison for bank robbery.
Osorio was charged in June, 2014 along with his younger brother Abraham Osorio, Laquan Ealey and Jeffrey Steadman-Loyd, all of Rochester.
Assistant U.S. Attorney Everardo A. Rodriguez, who handled the prosecution, stated that the defendant participated in the planning and execution of the June 7, 2014, robbery of the Chase Bank located at 2900 Dewey Avenue in Rochester. Co-defendants Abraham Osorio and Laquan Ealey entered the bank and walked up to a teller station. Ealey was wearing a baseball cap, gloves, and black hair extensions. Abraham Osorio had a red baseball cap and sunglasses. Ealey passed a note to the teller that stated, "Give me all the money or everyone dies in here." Ealey then told the teller, "Give me all your money or everyone here will die, I have a gun." The teller handed Ealey an amount of money and the defendants exited the bank, driving away in a 2002 blue Ford Explorer. The robbery was recorded on bank surveillance cameras. Ealey and Abraham Osorio later met up with Luis Osorio and the three men divided the proceeds of the robbery.
A week later, on June 14, 2014, Luis Osorio, Abraham Osorio, Laquan Ealey and Jeffrey Steadman-Loyd attempted to rob the Citizens Bank at 230 Waring Road in Rochester. Luis Osorio and Jeffery Steadman-Loyd were observed by police in the blue Ford Explorer with Abraham Osorio and Laquan Ealey. The four men initially drove by the bank then stopped several block away, at which time Luis Osorio was observed to exit the Explorer with a screwdriver in hand and replace the vehicle’s two license plates with fake plates. The four men then drove back and parked next to the bank. Fearing that the men were about to rob the bank, Rochester Police patrol cars approached the Explorer and engaged their emergency lights. The defendants sped away, leading police on a car chase over approximately five city blocks. During the effort to flee, the Explorer struck a police vehicle. When the Explorer finally came to a stop, Abraham Osorio was the driver, Luis Osorio was the front passenger, and Ealey and Steadman-Loyd were in the back seat.
Police searched the Explorer and found, among other items, black hair extensions, several hats and caps, several pairs of sunglasses, a screwdriver and the two license plates which Luis Osorio had earlier replaced with fake plates.
In addition to his 63 months in prison, Luis Osorio was ordered to pay restitution to Chase Bank in the amount of $3,278. The three other defendants were also convicted. Laquan Ealey was sentenced to 66 months in prison and Jeffrey Steadman-Loyd 24 months in prison. Abraham Osorio is awaiting sentencing.
Today’s sentencing is the culmination of a joint investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Police, under the direction of Major Richard Allen; the United States Marshals Service, under the direction of Charles Salina; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
RI DLT Employee Sentenced for Theft of Government Funds, Computer FraudRead the Press Release
PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), today was sentenced to 21 months in federal prison for conspiring to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sheku to serve 3 years supervised release upon completion of his prison term and to pay restitution in the amount of $486,366.
Sheku’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
At the time of his guilty plea, Sheku admitted that between June 2009 and February 2015, he used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. As part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
The scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
The matter was investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Printing and Packaging CEO Pleads Guilty to Trafficking in Counterfeit Labels and PackagingRead the Press Release
HOUSTON – A 48-year-old California resident has entered a guilty plea to trafficking in counterfeit labels and packaging, announced Acting U.S. Attorney Abe Martinez.
Paul S. Rodriguez Jr. was the CEO of Action Packing and Design Inc. in Santa Ana, California. Between July 2015 and December 2016, Rodriguez intentionally trafficked in counterfeit labels and packaging by manufacturing, and then shipping to Houston, counterfeit and trademarked Frontline, Frontline Plus and Merial veterinary product labels and packaging. The labels and packaging were originally marketed by Merial - an animal health company located in Duluth, Georgia
During this same period, Rodriguez also intentionally trafficked in counterfeit trademarked Rimadyl labels, a veterinary product that Zoetis marketed. Zoetis is a health company located in Florham Park, New Jersey.
Sentencing is currently set for Oct. 2, 2017, before U.S. District Judge Nancy F. Atlas, at which time Rodriguez faces up to 10 years in federal prison and a possible $2 million fine. He was permitted to remain on bond pending that hearing.
The Food and Drug Administration-Office of Criminal Investigations and the Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Daniel C. Rodriguez is prosecuting the case.
Porterville, California Woman Pleads Guilty to Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TINA MARIE ZAHR, age 48, of Porterville, California, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE COCAINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment and up to life imprisonment, a fine up to $10,000,000.00 or both.
The Indictment alleged that on or about February 23, 2017, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Timothy Hammer represented the United States.
Owner of Lackawanna County School Bus Company Charged in Payroll Tax SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Runco, age 56, of Olyphant, Pennsylvania, was charged in a criminal information with failing to pay the Internal Revenue Service (IRS) employment taxes withheld from his employees’ paychecks and filing a false personal income tax return omitting substantial personal income in 2010.
According to United States Attorney Bruce D. Brandler, Runco operated Runco Transportation, Inc., a business that provided school bus transportation services under contract with Mid Valley School District, Lackawanna County, Pennsylvania. During 2006 through 2010, Runco Transportation, Inc. employed as many as 12 individuals. While federal employee employment taxes were withheld from employee paychecks, Runco allegedly failed to account for and pay these tax monies over to the IRS on behalf of his employees. Runco also received compensation from his company but failed to report this income on his 2010 personal income tax return. The total tax loss to the IRS is alleged to be approximately $78,578.
The criminal information was filed pursuant to a plea agreement, which is subject to approval by the court. The plea agreement requires Runco to cooperate fully with the IRS, and to pay all taxes owed together with interest and penalties as determined by the court.
The case was investigated by the Scranton Office of the IRS. Assistant United States Attorney Todd K. Hinkley is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is eight years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Notice to Potential Victims Regarding Former Pain Management Physician Fathalla MashaliRead the Press Release
BOSTON – Fathalla Mashali, 62, of Dover, Mass., pleaded guilty on March 15, 2017, in U.S. District Court in Boston to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering. Sentencing is scheduled for June 21, 2017.
Insurance companies and patients who believe they may be potential victims of Mashali’s scheme to defraud Medicare and other health care insurers, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the charged conduct, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status. Victims of this crime may be entitled to restitution.
Mashali was a licensed physician in Massachusetts and Rhode Island and operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). He also employed Egyptian doctors in Cairo, Egypt, who entered false information into U.S. patients’ medical records. Many of the patients at NEPA were Medicare beneficiaries.
From approximately October 2010 through March 2013, Mashali falsely billed Medicare and commercial insurers for extensive medical services that he did not provide. Mashali also routinely billed Medicare and private insurers for urine drug test results that were false and fraudulent. When Medicare began to inquire about Mashali’s unlawful billing practices and initiated an audit of Mashali’s medical services, requesting 40 patient medical files, Mashali caused his staff both in the United States and in Egypt to falsely alter patient records. This included falsifying patient encounters which had taken place sometimes one or more years earlier, and faking and backdating the results of patients’ urine drug tests. Mashali knew that his patient records would not pass muster with Medicare’s auditors and thus ordered his staff to make these changes.
Mashali used the proceeds derived from his fraudulent billing to fund a lavish lifestyle, spending money on his extravagant Dover, Mass., residence and a condominium in Florida.
Notice to Potential Victims Regarding Former Employee of Massachusetts and Rhode Island Pain Clinic Charged in Fraudulent Billing SchemeRead the Press Release
BOSTON – Moustafa Moataz Aboshady, 35, an Egyptian national residing in Lake Forest, Calif., was indicted in September 2016, in U.S. District Court in Boston, on one count of conspiracy and two counts of making false statements in connection with health care benefit programs. A trial date is not scheduled at this time.
Insurance companies and patients who believe they may be potential victims of this fraudulent billing case, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the alleged conduct in the indictment, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status.
As alleged in the indictment, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA.
NEPA had locations in Massachusetts and Rhode Island. The indictment alleges that Aboshady was part of a conspiracy involving other members of NEPA, including its owner and members of a satellite office in Cairo, Egypt, in connection with a scheme to falsify patient medical records in order to obtain payments from the Medicare program and commercial health insurance companies. The alleged conduct included submitting claims for payment to Medicare and commercial health insurance companies for services not rendered.
As part of the alleged scheme, Aboshady falsified, and instructed others to falsify, patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans and durations of face-to-face interactions with patients to create the appearance of lengthy and involved patient appointments, when in fact these services did not take place.
Aboshady is allegedly responsible, in conjunction with the NEPA owner and the Cairo office, for fabricating the dates of urine drug test results so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support billing codes submitted to Medicare and private insurers. The indictment alleges that NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored the specimens in unrefrigerated large plastic bags and containers.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Carolina man sentenced to federal prison for role in Huntington drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A North Carolina man was sentenced today to two years and three months in federal prison for a drug crime, announced United States Attorney Carol Casto. Steven Bailey, 53, of Charlotte, previously pleaded guilty to conspiracy to distribute cocaine.
From October 2014 to late February 2016, Bailey, along with codefendants Jerrell Johnson and Roger Page, both of Huntington, and codefendants Trevor Bethel and Ashara Mayes, both of Atlanta, engaged in a conspiracy to distribute cocaine in the Huntington area. Bailey admitted that on at least two occasions, he brought cocaine from Charlotte to Johnson and Page in Huntington. Bailey further admitted to having a source of drug supply in the Atlanta area.
On February 20, 2016, Bailey admitted that he was in Huntington at Johnson’s residence, along with Bethel. Bailey was later stopped by agents with the Drug Enforcement Administration and was found with over $9,000 cash. Approximately $8,000 of that currency represented proceeds from cocaine provided to Johnson earlier that evening. A search of Johnson’s residence that evening resulted in a seizure by law enforcement of approximately nine ounces of cocaine, at least part of which had recently been provided by Bailey.
Johnson previously pleaded guilty to possession with intent to distribute 28 grams or more of crack and was sentenced to five years in federal prison. Page pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and was sentenced to three years and a month in federal prison. Mayes pleaded guilty to possession with intent to distribute cocaine and faces up to 20 years in federal prison when she is sentenced on May 22, 2017. Bethel is currently a fugitive and is presumed innocent unless and until proven guilty in a court of law.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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North Carolina Return Preparer Pleads Guilty to Filing False Income Tax ReturnsRead the Press Release
A Durham, North Carolina return preparer pleaded guilty today in U.S. District Court for the Middle District of North Carolina to filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, from 2012 through 2014, Laurean S. Robinson, 31, worked as the office manager and a return preparer at Tax Breaks, a tax preparation business in Durham. Robinson admitted that she prepared returns for her clients that fraudulently claimed the earned income tax credit and sought inflated refunds. To qualify her clients for the earned income tax credit, Robinson falsely reported that they earned income providing household services, such as babysitting and caretaking. Robinson trained other Tax Breaks employees to prepare false returns in a similar fashion. In addition to fees charged by Tax Breaks, Robinson also often required her clients to pay her an additional fee in cash. Robinson’s criminal conduct caused a tax loss to the Internal Revenue Service (IRS) of approximately $600,737.
Sentencing is scheduled for Aug. 15. Robinson faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney JoAnna McFadden and Trial Attorney Daniel McGraw of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Jersey Resident Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
Today, Santos Colon, Jr., 17, of Lindenwold, New Jersey, pleaded guilty as an adult to an information charging him with one count of attempting to provide material support to terrorists.
Acting Assistant Attorney General for National Security Mary B. McCord and Acting U.S. Attorney William E. Fitzpatrick made the announcement. The plea was entered before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court, Colon, a U.S. citizen, admitted that from June 30, 2015, to Aug. 14, 2015, he devised a plan to conduct an attack during the September 2015 papal visit in Philadelphia, Pennsylvania. The plot involved utilizing a sniper to shoot the Pope during his Papal mass and setting off explosive devices in the surrounding areas.
Colon engaged someone he believed would be the sniper, but in reality was an undercover FBI employee. Colon engaged in target reconnaissance with an FBI confidential source and instructed the source to purchase materials to make explosive devices. FBI agents arrested Colon in 2015.
Acting Assistant Attorney General McCord and Acting U.S. Attorney Fitzpatrick credited Special Agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent
in Charge Michael Harpster in Philadelphia, with the ongoing investigation leading to today’s guilty plea.
Colon faces a maximum of 15 years in prison and a fine of $250,000, or twice the gross amount of any financial gain or loss from the offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
No date has been set for sentencing.
This case is being prosecuted by Attorney in Charge R. Stephen Stigall of the Camden Branch Office of the U.S. Attorney’s Office for the District of New Jersey; Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office for the District of New Jersey; and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
New Jersey Resident Admits Attempting to Provide Material Support to TerroristsRead the Press Release
CAMDEN, N.J. – A New Jersey resident today admitted attempting to provide material support to terrorists, Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General for National Security Mary B. McCord announced.
Santos Colon Jr., 17, of Lindenwold, New Jersey, pleaded guilty as an adult before U.S District Court Judge Noel L. Hillman in Camden federal court to an information charging him with one count of attempting to provide material support to terrorists.
According to documents filed in this case and statements made in court:
Colon admitted that from June 30, 2015, to Aug. 14, 2015, he plotted to assassinate Pope Francis during the papal visit to Philadelphia in September 2015. The plot involved utilizing a sniper to shoot the Pope during his Papal mass and setting off explosive devices in the surrounding areas. Colon engaged someone he believed would be the sniper, but in reality was an undercover FBI employee. Colon engaged in target reconnaissance with an FBI confidential source and instructed the source to purchase materials to make explosive devices. FBI agents arrested Colon in 2015.
Acting U.S. Attorney Fitzpatrick and Acting Assistant Attorney General McCord credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the ongoing investigation leading to today’s guilty plea.
The count to which Colon pleaded guilty is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. No date has been set for sentencing.
The government is represented by R. Stephen Stigall, Attorney-in-Charge of the Camden Branch Office of the U.S. Attorney’s Office, Assistant U.S. Attorney Patrick C. Askin, and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
Defense counsel: Richard Coughlin Esq., Camden
New Haven Man Sentenced to 9 Years in Prison for Role in Fraudulent Oxycodone Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JULIAN CINTRON, also known as “Papi” and Jay,” 37, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 108 months of imprisonment, followed by three years of supervised release, for his leadership role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
Eleven individuals were charged as a result of the investigation.
CINTRON, David Thompson and Alejandrino DeJesus, all of New Haven, were key members of the organization who recruited and transported runners to fill fraudulent prescriptions.
CINTRON has been detained since his arrest on September 10, 2015. On that date, agents searched CINTRON’s residence and two of his vehicles and seized numerous items relating to this scheme, including fraudulent prescriptions bearing the names of different doctors and patients, ledgers containing doctors’ DEA numbers, blank prescriptions, full sheets of tamper proof paper, several computers, a printer, and more than 20 cell phones. Agents also seized small amounts of cocaine and suboxone.
On July 22, 2016, CINTRON pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
Thompson and DeJesus also pleaded guilty. On November 7, 2016, DeJesus was sentenced to 132 months of imprisonment. Thompson awaits sentencing.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Mineral County man sentenced for illegal possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Hawke Anthony Coffman, 26, of Ridgeley, West Virginia, was sentenced today to 12 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Coffman, who had previously been convicted of felony offenses in West Virginia and Maryland, is prohibited from possessing a firearm. He admitted to possessing a .7mm caliber rifle in Hampshire County, West Virginia in November 2015.
Coffman pled guilty to one count of “Felon in Possession of a Firearm” in January 2017.
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia Division of Natural Resources investigated.
Chief U.S. District Judge Gina M. Groh presided.
Mexican Citizen Sentenced to 35 Years for Drug TraffickingRead the Press Release
KANSAS CITY, KAN. - A Mexican citizen unlawfully in the United States was sentenced Monday to 420 months for drug trafficking, U.S. Attorney Tom Beall said.
In July 2016, a federal court jury found Juan Antonio Herrera-Zamora, 33, guilty on one count of attempted possession with intent to sell methamphetamine, one count of possession with intent to sell methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking.
During trial, prosecutors presented evidence that Herrera-Zamora gave instructions via telephone to two men who drove 26 pounds of methamphetamine to Kansas from Oklahoma hidden in a spare tire of their car.
Herrera-Zamora met the men at a Super 8 in Lenexa. His girlfriend accompanied him and there was a baby in the backseat of his car. He hid a gun in the baby’s diaper bag. He took the keys to the car and drove it to a tire shop in Kansas City, Kan., where the tire was removed and cut open. He was arrested at that location.
Herrera-Zamora filed a sentencing memorandum seeking a lesser sentence and citing his upbringing in Guasave, Sinaloa, Mexico. “Mr. Herrera-Zamora comes from a low-income background and realized a great accomplishment by coming to this country when he was about thirteen years old,” the memo said.
Prosecutors cited Herrera-Zamora’s criminal record, starting with a conviction at 17 on two counts of theft and a later drug conviction, followed by twice being deported.
Beall commended the Drug Enforcement and Assistant U.S. Attorney David Zabel for their work on the case.
Mexican Citizen Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Juan Gonzalez Hernandez, age 26, of Mexico, was sentenced today to time served (27 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Gonzalez Hernandez admitted that he returned to the United States after he was removed to Mexico on April 28, 2012 and again on May 7, 2012.
On March 7, 2017, Gonzalez Hernandez was arrested by ICE Officers at a residence in Hudson Falls, New York.
Following his sentencing, Gonzalez Hernandez was remanded to the custody of the Department of Homeland Security, which will place Gonzalez Hernandez into removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant United States Attorney Edward P. Grogan.
Martinsburg man sentenced for unlawful possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marwin Uriah Wilson, 28, of Martinsburg, West Virginia, was sentenced today to 36 months incarceration for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wilson, who was previously convicted of a felony offense of “Unlawful Wounding” in Berkeley County, admitted to possessing a .9mm pistol in March 2016. He pled guilty to one count of “Unlawful Possession of a Firearm” in December 2016.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Lottery Winner Sentenced to 21 Years in Federal Prison for His Role in Drug Trafficking RingRead the Press Release
BRUNSWICK GA- Ronnie Music, Jr., 46, of Waycross, Georgia, was sentenced today by Chief U.S. District Court Judge Lisa Godbey Wood to 21 years in federal prison for his role in a drug trafficking conspiracy and for possessing a cache of firearms as a convicted felon. On July 22, 2016, Music pled guilty in federal court to conspiring to traffick large amounts of Methamphetamine and to being a felon in possession of firearms.
According to evidence presented in open court and in court filings, Music was a member of a multi-state drug organization that trafficked in kilogram quantities of crystal meth, also known as “Ice.” In February 2015, Music won $3 million in a scratch-off lottery game, which he then used to invest in kilograms of crystal meth to sell. In September 2015, federal agents arrested a number of Music’s conspirators who attempted to sell over 10 pounds of meth to undercover agents in a Winn Dixie parking lot in Brunswick, Georgia. Music was the supplier of the meth, and he watched nearby as his deal went south. Less than a month later, law enforcement arrested Music in Tennessee after he sold pounds of meth to a confidential informant. Music’s girlfriend and their infant daughter were passengers in the vehicle Music used to conduct the deal. Following his arrest, federal agents searched Music’s home and place of employment and seized 11 firearms, including assault style weapons, a prohibited sawed off shotgun and a stolen revolver. As a convicted felon, Music was prohibited from possessing firearms.
Acting U.S. Attorney Jim Durham said, “This case has received a great deal of light-hearted coverage because of Mr. Music’s unsound investment decision to buy crystal meth with his lottery winnings. The truth of the matter is this: Mr. Music is a predator who has destroyed lives by pushing poison and fear. As law enforcement and prosecutors, our job is to protect our communities by sending predators like Music to federal prison for a very long time.”
Tim Graden, ATF’s Savannah Field Office Resident Agent In Charge, stated, “ATF works to reduce violent crime by targeting and dismantling those criminal groups that pose the greatest threat to public safety. By working with federal, state, and local law enforcement agencies, ATF helps remove criminal organizations from our streets.”
As part of the investigation, law enforcement seized millions of dollars of meth, $517,485 cash, multiple vehicles, 11 firearms, and thousands of rounds of ammunition. Music forfeited the cash, vehicles, firearms and ammunition as part of his sentence. Twenty-one other defendants have been indicted and arrested for participating in this large-scale drug conspiracy. So far, 20 defendants, including Music, have been convicted.
This case was investigated as an Organized Crime Drug Enforcement Task Force (OCDETF) case, and involved the following agencies: The ATF, the DEA, the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation’s Southeastern Regional Drug Enforcement Office, the Glynn County Georgia Police Department, the Glynn-Brunswick Narcotics Enforcement Team (GBNET), the Ware County Sheriff’s Office and other local law enforcement agencies.
Assistant United States Attorneys E. Gregory Gilluly, Jr. and Theodore S. Hertzberg prosecuted the case on behalf of the United States. For questions, please call the United States Attorney’s Office at (912) 201-2547.
Kansas City Man Sentenced for Robbing Bank in Prairie VillageRead the Press Release
KANSAS CITY, KAN. - A Kansas City man was sentenced Monday to 63 months in federal prison for robbing a bank in Prairie Village, Kan., U.S. Attorney Tom Beall said.
Darrell Hunter, 51, Kansas City, Mo., pleaded guilty to one count of bank robbery. He admitted that on Dec. 26, 2014, he robbed United Missouri Bank at 6900 Mission Road in Prairie Village
In his plea, Hunter admitted he entered the bank and asked for a deposit slip. He wrote on the slip, “This is a robbery I got a gun put the money in the bag.” He put the money in a duffle bag and left the bank.
Beall commended the FBI, the Prairie Village Police Department and Assistant U.S. Attorney Tris Hunt for their work on the case.
Justice Department Requires Divestiture of Danone’s Stonyfield Farms Business in Order for Danone to Proceed with WhiteWave AcquisitionRead the Press Release
The Department of Justice announced today that it will require Danone S.A. to divest Danone’s Stonyfield Farms business in order for Danone to proceed with its $12.5 billion acquisition of The WhiteWave Foods Company Inc. The department said that, without the divestiture, the proposed acquisition likely would reduce competition between the two leading participants and top brands in the markets for raw and fluid organic milk, potentially harming dairy farmers in the northeast and U.S. consumers of fluid organic milk.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The proposed acquisition would have blunted competition between the top two purchasers of raw organic milk in the northeast and the producers of the three leading brands of organic milk in the United States,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s proposed settlement will ensure competitive marketplaces for both farmers in the northeast that sell raw organic milk and consumers who purchase fluid organic milk in stores nationwide.”
According to the department’s complaint, as a result of Danone’s long-term strategic partnership and supply and licensing agreements with WhiteWave’s primary competitor, CROPP Cooperative (CROPP), the proposed acquisition would have provided incentives and opportunities for cooperative behavior between the two leading purchasers of raw organic milk in the northeast. This cooperation likely would have resulted in farmers receiving less favorable contract terms for the purchase of their raw organic milk. Similarly, the proposed acquisition would have aligned the interests of the producers of Stonyfield, Horizon and Organic Valley, the only three national fluid organic milk brands, and risked higher prices and fewer choices for U.S consumers.
Under the terms of the proposed settlement, Danone must divest its Stonyfield Farms business to an independent buyer approved by the United States. The department said that the divestiture will sever Danone’s and CROPP’s strategic partnership thereby eliminating the entanglements between CROPP and the merged firm. As a result, the divestiture will preserve competition for the purchase of raw organic milk from northeast dairy farmers and the sale of fluid organic milk to consumers.
Danone is a France-based global food company that produces and sells a wide range of food products. Danone’s annual sales for 2015 were approximately $24.3 billion. Stonyfield Farms Inc., a subsidiary of Danone, is a Delaware corporation headquartered in Londonderry, New Hampshire. Stonyfield Farms produces and sells a range of organic dairy products.
WhiteWave is a Delaware corporation headquartered in Denver, Colorado. WhiteWave produces and sells a range of organic dairy products, including organic fluid milk, yogurt and cheese. WhiteWave had $3.86 billion in sales in 2015.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Danone Complaint Danone Explanation of Consent Danone HSSO & PFJJustice Department Cautions Employers Seeking H-1B Visas Not to Discriminate Against U.S. WorkersRead the Press Release
The Justice Department cautioned employers petitioning for H-1B visas not to discriminate against U.S. workers. The warning came as the federal government began accepting employers’ H-1B visa petitions for the next fiscal year. The H-1B visa program allows companies in the United States to temporarily employ foreign workers in specialty occupations such as science and information technology.
The anti-discrimination provision of the Immigration and Nationality Act (INA) generally prohibits employers from discriminating against U.S. workers because of their citizenship or national origin in hiring, firing and recruiting. Employers violate the INA if they have a discriminatory hiring preference that favors H-1B visa holders over U.S. workers.
“The Justice Department will not tolerate employers misusing the H-1B visa process to discriminate against U.S. workers,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “U.S. workers should not be placed in a disfavored status, and the department is wholeheartedly committed to investigating and vigorously prosecuting these claims.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing or recruitment or referral, should contact IER’s worker hotline for assistance.
Inland Empire Dentist Pleads Guilty to Possessing Child Pornography and Admits Distributing Images on Computer NetworkRead the Press Release
RIVERSIDE, California – A dentist who formerly lived and worked in Temecula pleaded guilty this afternoon to possession of child pornography, including videos of children under the age of 10 engaged in sexually explicit conduct.
Milan Irvin, 34, who currently resides in Rancho Cucamonga, pleaded guilty this afternoon to one count of possession of child pornography and admitted in a plea agreement that he “downloaded, received, possessed and distributed images and videos of child pornography using the internet.”
Irvin specifically admitted possessing a sexual explicit video depicting a girl under 10 and distributing another video involving a girl between 10 and 12. Irvin possessed approximately 200 images and 50 videos of child pornography on a computer.
Irvin pleaded guilty today before United States District Judge Jesus G. Bernal, who scheduled a sentencing hearing for July 10.
The charge of possession of child pornography carries a statutory maximum sentence of 20 years in federal prison. The plea agreement calls for a prison sentence of three years to five years, to be followed by 10 years of supervised release. The actual sentence will be determined by Judge Bernal, but if the court decides to deviate from the agreed-upon sentence, both parties have the option to withdraw from the plea agreement and proceed to trial.
Once he completes his prison sentence in this case, Irvin will be required to register as a sex offender and will be prohibited from associating with people under the age of 18.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), which received substantial assistance from the Riverside County District Attorney’s Office, Sexual Assault Felony Enforcement (SAFE) Team. Irvin came to the attention of investigators during an undercover investigation involving the Ares peer-to-peer network.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham.
Indian Man Pleads Guilty to Use of a False PassportRead the Press Release
PLATTSBURGH, NEW YORK – Manish Patel, age 43, and a citizen of India, pled guilty today to use of a false passport, announced United States Attorney Richard S. Hartunian.
As part of his guilty plea, Patel admitted to presenting a forged Indian passport to Border Patrol agents in the early-morning hours of January 20, 2017. Patel used the forged passport –which was in another person’s name, but bore Patel’s photograph – to fly from India to Toronto, by way of London, prior to illegally entering the United States.
Sentencing is scheduled for August 16, 2017 at 11:30 a.m. before Senior United States District Judge Norman A. Mordue. Patel faces up to 10 years in prison and up to 3 years of post-imprisonment supervised release, and a $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.
This case was investigated by the United States Border Patrol and Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Harrisburg Man Charged with Three Armed RobberiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Maurice L. Ross, age 34, of Harrisburg, Pennsylvania, was indicted on March 29, 2017, by a federal grand jury with unlawful possession of a firearm and three armed robberies.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Ross robbed the Brookwood Mart, located in Harrisburg, by gunpoint on three separate occasions in December 2016. The indictment also alleges Ross was a convicted felon, making it illegal for him to possess a firearm. Ross was also charged with brandishing a firearm during a crime of violence.
The case was investigated by the Harrisburg Police Department. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the unlawful possession of firearm charges is 10 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the armed robbery charges is 20 years in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each charge of brandishing a firearm during a crime of violence is life in prison. 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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Guilty Plea in Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. —Juan Penaloza-Ramirez, aka Juan Penaloza-Herrera, aka Juan Penaloza (Penaloza), 46, of Michoacán, Mexico, residing in Taft, California, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown at three separate marijuana cultivation sites in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced. In pleading guilty, Penaloza agreed to pay $10,198 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities.
According to court documents, Penaloza employed growers, deliverymen, and others to cultivate marijuana at Fay Creek, Brush Creek, and The Needles in the Sequoia National Forest in Tulare and Kern Counties. Every winter, Penaloza traveled to Mexico to recruit people to grow marijuana on public lands in the United States.
At the Fay Creek cultivation site, springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout the site, including in a flowing stream. Law enforcement officers seized 3,151 marijuana plants from this location. In pleading guilty, Penaloza agreed to the forfeiture of firearms and ammunition seized during a search of his home.
The Brush Creek grow site contained 2,719 marijuana plants. To make room for the marijuana plants, the growers had eradicated new vegetation and trees that sprouted after the 2002 McNally Fire. Law enforcement officers found large piles of trash stuffed between boulders and buried along a stream that supports trout. The officers also found toxic pesticides from Mexico and fertilizers spread throughout the 10-acre site.
The Needles grow site contained 2,608 marijuana plants. In addition to the presence of toxic chemicals and waste, officers found that the water source for the marijuana plants had been derived from a spring that drains into the Upper Kern River.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Penaloza is scheduled for sentencing before U.S. District Judge Dale A. Drozd on June 19, 2017. Penaloza faces a mandatory minimum statutory penalty of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Russell Lee Riggs, 68, of Weldon, California is scheduled for a status conference on May 8, 2017. The charges against Riggs are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Georgia man indicted for selling heroin in the Youngstown areaRead the Press Release
A Georgia man was arrested on federal charges that he sold heroin in the Youngstown area, said Acting U.S. Attorney David A. Sierleja.
Richard E. North, Jr., 47, of Lithonia, Georgia, was charged in a five-count indictment with distribution of heroin and with travelling in interstate commerce to facilitate the distribution of heroin.
North sold heroin in the Youngstown area on multiple dates in October and November 2016. He also travelled from Ohio to Tennessee on Nov. 7 with the intent to distribute heroin, 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 and the Mahoning Valley Law Enforcement Task Force. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
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.
Gameday Entertainment Chairman of the Board Pleads Guilty to Defrauding San Antonio Victim of Millions of DollarsRead the Press Release
In San Antonio today, 49-year-old Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), admitted to defrauding a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
According to the superseding indictment in this case, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday.
Appearing before United Stated District Judge Fred Biery this morning, the 49-year-old investment counselor pleaded guilty to count two of the superseding indictment pending against him--wire fraud. By pleading guilty, Banks admittedly manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Furthermore, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions. On June 26, 2013, Banks also caused two pages relating to the $6M loan guarantee and subordination agreements, which contained his victim’s signature, to be faxed from San Antonio to Bank’s employees in California and Comerica bank employees in California.
Banks remains on bond pending sentencing scheduled for 9:00am on June 27, 2017. He faces up to 20 years in federal prison, a fine of up to $250,000 and restitution to his victim.
The FBI is conducting this investigation. Assistant United States Attorney Gregory J. Surovic and Tom Moore are prosecuting this case on behalf of the Government.
Former physician sentenced to federal prison for obtaining pain pills by fraudRead the Press Release
HUNTINGTON, W.Va. – A former physician who practiced in Barboursville was sentenced today to six months in federal prison for a drug charge, announced United States Attorney Carol Casto. Gregory Donald Chaney, 52, entered his guilty plea to obtaining a controlled substance by fraud.
Chaney was the owner of Tri-State Medical Center, which is now out of business. On December 1, 2015, Chaney wrote a prescription for one of his employees for 120 thirty milligram oxycodone pills. Chaney admitted that he wrote the prescription without any physical examination of the employee and without medical necessity. Chaney then instructed the employee to have the prescription filled at Ross Drug Pharmacy in Ceredo in Wayne County. Prior to having the prescription filled, it was agreed between Chaney and the employee that the pills would be turned over to him in exchange for approximately $830 in lieu of unpaid wages. The next day, the employee had the prescription filled and gave the pills to Chaney in exchange for the money as planned. Chaney admitted that he wrote the prescription with the intent to illegally obtain oxycodone and to conceal the true recipient of the pain pills.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former St. Croix Resident Pleads Guilty to Federal Program Fraud and Tax ChargesRead the Press Release
St. Thomas, USVI – Celeste P. Bermudez, 41, formerly of St. Croix, pleaded guilty today to theft of federal program funds and making and subscribing a false income tax return, Acting United States Attorney Joycelyn Hewlett announced. District Judge Curtis V. Gomez allowed Bermudez to remain on bail until August 1, 2017, when she must self-surrender to the United States Marshals Service. Sentencing is scheduled for August 8, 2017.
According to the plea agreement, Bermudez was the finance director of the Virgin Islands Community AIDS Resource & Education, Inc. (VICARE), a nonprofit organization dedicated to promoting HIV-AIDS education and support services to individuals living with HIV-AIDS. In 2011, the U.S. Department of Housing and Urban Development (HUD) approved approximately $1.3 million in grant funds to VICARE. During the period July 1, 2011, through June 30, 2014, the Department of Health and Human Services (HHS) Centers for Disease Control and Prevention (CDC) awarded VICARE approximately $627,365 in grant funds. Bermudez admitted to embezzling more than $5,000 during the period January 2012 through December 2013. Bermudez also admitted to making and subscribing a false 2011 income tax return, in that Bermudez failed to report $135,783.29 in 2011 income from VICARE.
Bermudez faces a maximum sentence of 10 years in prison and a $250,000 fine for the federal program fraud charge, and not more than three years in prison or a $5,000 fine, or both, for the tax charge.
The case was investigated by HUD Office of Inspector General, HHS Office of Inspector General, and the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant U.S. Attorneys Kim L. Chisholm and Meredith Edwards.