Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 3 April 2017
Former Owners of Russell Springs Lab Convicted of Seventeen Counts of Health Care FraudRead the Press Release
FRANKFORT, Ky. – On Friday, a federal jury convicted five former owners of PremierTox, a clinical laboratory in Russell Springs, Kentucky, of seventeen counts of health care fraud, each. The defendants were acquitted on various other counts that alleged related conduct. The seventeen counts of conviction related to medically unnecessary urine drug tests, which were submitted by the defendants’ laboratory to Anthem Blue Cross/Blue Shield with the intent to defraud the health insurer.
The evidence at trial established that Dr. Bryan Wood and Dr. Robin Peavler owned a chain of addiction treatment clinics called SelfRefind, headquartered in Danville, Kentucky. Patients at SelfRefind underwent urine drug testing as part of their treatment protocol. The urine drug testing consisted of screening tests, which indicated whether a drug was in the patient’s system, as well as more sophisticated and precise confirmation tests that were ordered when the treating physician felt it was necessary. At trial, all of the physician witnesses testified that they needed the confirmation test results by the time the patient came in for their next visit.
Until late 2010, SelfRefind used independent labs that returned test results within a week. In late 2010, Drs. Wood and Peavler joined Brian Walters, James Wesley Bottom, and Dr. Robert Bertram, Jr., to form PremierTox, a urine drug testing laboratory. Beginning in October 2010, Dr. Wood and Dr. Peavler directed SelfRefind to freeze its patients’ urine samples and then send them to PremierTox, where they were maintained in a storage facility that PremierTox actually referred to as the “Pee Palace.” As many as 10,000 frozen urine samples were stored in this facility. However, the five owners of the lab – Dr. Wood, Dr. Peavler, Dr. Bertram, Walters, and Bottom – did not have the testing equipment installed until January 2011, and did not begin conducting confirmation tests until April 2011. The evidence established that the significant delay in testing rendered many of the confirmation urine tests useless in the treatment of the SelfRefind patients, and medically unnecessary.
The evidence further established that once PremierTox began testing, the owners prioritized the testing of samples based on eligibility for reimbursement from particular insurance companies. Medicaid and Medicare patients’ samples got tested first, because PremierTox was enrolled with those insurers. PremierTox was not enrolled as a health care provider with Anthem insurance company until August 2011. Immediately after it became eligible to bill Anthem, it removed Anthem patients’ urine samples from the freezers, tested them, and billed the insurer. Some of the Anthem patient samples were actually tested nine to eleven months after they had been collected, and long after they had any value in treating the patient. The jury concluded that Dr. Wood, Dr. Peavler, Dr. Bertram, Walters, and Bottom each acted with specific intent to defraud Anthem, by billing for these long-delayed, medically unnecessary tests.
“Health care fraud victimizes us all, by improperly depleting the critical resources necessary to pay health care costs and, as in this case, by seeing medical professionals brazenly place their financial interests above medical necessity in the treatment of patients,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “We will continue to make protecting the health care system from fraud a priority, as it promotes better care, places care over greed, and benefits every one of us.”
Sentencing of the defendants is scheduled for August 9, 2017. Any sentence imposed by the district court will be based on relevant facts of the defendants’ conduct and will take into account the U.S. Sentencing Guidelines.
Acting U.S. Attorney Shier and Derrick L. Jackson, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General’s Atlanta Regional Office, jointly announced the verdict. Assistant U.S. Attorneys Kate K. Smith and Paul C. McCaffrey prosecuted the case on behalf of the government.
Former Fresno CEO Sentenced to a Year in Prison for Embezzling over $500,000 from Pension PlanRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Mary Williams, 70, of Fresno, today to one year in prison for embezzling from a pension plan, U.S. Attorney Phillip A. Talbert announced. Judge Drozd ordered Williams to pay $509,405 in restitution to the Pension Benefit Guaranty Corporation (PBGC).
According to court documents, Williams was the Chief Executive Officer of Aeroplate Corporation, an engineering and contracting firm in Fresno. From June 2011 to November 2016, Williams embezzled approximately $509,000 from a pension plan that Aeroplate established for its employees. One of the fund’s assets was a set of real estate parcels in Fresno that at one point was appraised at over $900,000 in value. Williams pleaded guilty to the embezzlement on January 17, 2017.
Under federal law, assets that belong to pension plans can only be used to fund the plan, which must pay future benefits to employees, and not the business that started the plan.
According to the plea agreement, Williams and the company used the properties to raise money for the company. Eventually, the company was unable to repay its loans, and the properties were foreclosed on. The fund became insolvent because it did not have enough money to pay expected benefit claims. However, the plan’s benefits are federally insured by the Pension Benefit Guaranty Corporation, which protects employees from losing their benefits when their plans are insolvent.
This case was the product of an investigation by the U.S. Department of Labor’s Employee Benefit Security Administration. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.
Former Fresno Bank of America Manager Pleads Guilty to Embezzling at Least $100,000 from BankRead the Press Release
FRESNO, Calif. —Sylvia Ochoa, 34, of Fresno, pleaded guilty today to embezzlement by a bank employee, United States Attorney Phillip A. Talbert announced.
According to court documents, Ochoa was the manager of a Bank of America branch on Tulare Street in downtown Fresno. On multiple occasions in 2013, Ochoa entered the bank vault after other employees had left for the day and removed cash without authorization. Ochoa used the money to purchase items for herself and her boyfriend, including designer handbags and a truck that she purchased for $24,000 in cash. Ochoa also caused Bank of America to electronically credit accounts that she set up. For example, Ochoa transferred at least $69,000 of Bank of America’s money into her boyfriend’s bank account. Ochoa admitted that she embezzled at least $100,000 from Bank of America during this time.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
Ochoa is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 11, 2017. Ochoa faces a maximum statutory penalty of 30 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.
Former Charlotte-Area Mail Carrier Pleads Guilty to Mail Theft in Connection with Jamaican-based Lottery Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Antonio Terrell Brown, 31, of Charlotte, a former Charlotte-area mail carrier, appeared before U.S. Magistrate Judge David Keesler today and pleaded guilty to mail theft for his involvement in a Jamaican-based lottery fraud scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
According to today’s guilty plea and court documents filed in the case, from 2005 to June 2016, Brown was employed as a mail carrier with the U.S. Postal Service, and was assigned to deliver mail on a rural route in Charlotte. Court records show that in or about January 2015, Brown was approached by an individual about the possibility of diverting packages from his mail route. Brown agreed to divert the packages in exchange for cash, and provided the individual with a list of addresses to be used for the intercepted packages. According to court records, the intercepted packages contained drugs and cash, which was the proceeds of a Jamaican-based sweepstakes lottery scam.
According to the factual basis filed with his plea agreement, Brown received text messages from the individual, alerting Brown when drug- or cash-laden packages were placed in the mail for delivery to Brown’s route. These texts contained the postal service tracking numbers and delivery addresses for the packages, and instructions on how to deliver the packages to other individuals. Brown intercepted the packages and delivered them to various individuals who approached him on his route. Court records indicate that Brown received approximately $200-$250 for each package he intercepted on his mail route.
According to court records, in or about January 2016, a victim referred to in court documents as “M.A.,” mailed approximately $41,000 in cash to Peter Brown, at an address on Pinewood Drive in Charlotte. The address was one of the addresses that Brown had provided to the individual to be used for the intercepted packages. Brown intercepted the package and delivered it to someone else. Brown then falsely marked the package as “delivered.” The $41,000 contained in the intercepted package was the proceeds of a Jamaican-based lottery sweepstakes scam.
Brown agreed in court documents that the amount of loss that was known or personally foreseeable to him was between $150,000 to $250,000. The offense involved 10 or more victims, court documents indicate.
Brown is currently released on bond. The mail theft charge carries a maximum prison term of five years and a $250,000 fine. Brown has also agreed to pay restitution, the amount of which will be determine by the Court. A date for Brown’s sentencing hearing has not been set yet.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, under the direction of Inspector in Charge David M. McGinnis, and the U.S. Postal Service, Office of Inspector General, under the direction of Area Special Agent in Charge Paul L. Bowman, for leading the investigation into Brown.
Assistant U.S. Attorney Kelli Ferry, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Fifteen Firearms Cases Filed in St George Area in First Three Months of 2017Read the Press Release
ST. GEORGE – Federal prosecutors working in the U.S. Attorney’s Office in St. George have filed 15 firearms cases since the beginning of 2017. Partnering with local police officers, task forces, and federal agents, their efforts are targeting individuals prohibited under federal laws from possessing firearms or ammunition.
“Federal firearms laws are a valuable tool to we use to reduce violent crime and protect Utah communities. The majority of defendants in these cases have previous felony convictions and many are charged with possession of drugs or violations of other federal laws in addition to the firearms count,” U.S. Attorney John W. Huber said today. “We recognize and appreciate the diligent work of local law enforcement officers and task forces, federal agents, and other partners in preparing these cases for prosecution.”
Examples of the cases filed in St. George this year include:
US v William Henry Woods
Woods, age 38, of Tennessee, was charged with felon in possession of a firearm and possession of counterfeit currency in an indictment returned Feb. 1, 2017. According to a complaint filed in the case, a deputy from the Washington County Sheriff’s Office stopped a car in Washington City, Utah, for traffic violations. There were three individuals in the car – the male driver and two females. The driver provided the deputy with a driver’s license. The picture on the license did not resemble the driver.
While a deputy was checking the license, the driver drove away. He went a short distance before driving off the road. He then fled on foot. One of the passengers told the deputy the driver likely had a firearm in the vehicle or on his person. During a subsequent search of the vehicle, officers found a loaded Sig Sauer P938 9mm pistol. Records show the pistol was reported stolen in Memphis, TN. Officers also located about 42 $50 bills in the vehicle’s center console. Each of the bills shared one of four serial numbers. The driver, identified as Woods, was arrested by the officers. He was on federal supervised release in Tennessee after recently completing a 10-year prison sentence for another firearms violation. Woods pleaded guilty to the firearms count in the indictment on March 27. Sentencing is set for Aug. 7, 2017, at 1:30 p.m. in St. George before U.S. District Judge Ted Stewart. He faces up to 10 years in federal for the firearms conviction.
Deputies in the Washington County Sheriff’s Office and special agents of the FBI are investigating the case. Assistant U.S. Attorneys in St. George are prosecuting the case.
US v Verne Francis Holmes, III
Holmes, age 47, of St. George, was indicted in March on one count of felon in possession of a firearm and ammunition. He came to law enforcement’s attention in January after setting off a shoplifting alarm in a department store. After he was confronted by store employees, Holmes left the store. He got into a vehicle driven by a woman. Employees called the police. Eventually, the car Holmes was a passenger in entered the parking lot of a St. George restaurant. Holmes began shuffling property in the car and removed the license plate. An off-duty detective from Salt Lake City was observing his activities. The detective became suspicious watching Holmes’ actions.
Holmes was located hiding behind the restaurant. Officers found .22 caliber ammunition in a backpack in his possession. During a search of the car, officers located more ammunition and a Hi-Standard .22 caliber revolver. A writ has been issued for Holmes to appear in federal court in St. George on the charges. He faces up to 10 years in federal prison if convicted.
St. George police officers and special agents of the ATF are investigating the case. Assistant U.S. Attorneys in the U.S. Attorney’s Office in St. George are prosecuting the case.
US v Clinton Michael Johnson
Johnson, age 39, of Cedar City, was stopped by a Cedar City Police Officer for a traffic violation on Nov. 14, 2016. According to a complaint filed in the case, the officer detected the odor of marijuana. Johnson could not provide proof of insurance for the vehicle said he could call the owner of the vehicle who would bring the proof of insurance for the vehicle to the officer. While waiting for the owner to arrive, an Iron County deputy sheriff arrived with his K-9. The dog alerted to the presence of narcotics inside the vehicle. A search of the vehicle found a small amount of methamphetamine, two digital scales, and numerous small plastic baggies. A loaded .45 caliber handgun was located under the floor mat of the seat where Johnson had been sitting. Winchester .45 caliber ammunition was also found in the car.
On the same day as his arrest, Johnson was supposed to report to a U.S. Bureau of Prisons facility to begin serving a 40-month sentence imposed by U.S. District Judge Stewart in September 2016. The federal complaint for the new conduct was filed Jan 6, 2017, and he was charged in a Felony Information with felon in possession of ammunition and possession of methamphetamine on Jan. 17, 2017. Although ATF has yet to determine whether the firearm Johnson possessed traveled in interstate commerce, the ammunition was not manufactured in the State of Utah.
Johnson pleaded guilty to possession of the ammunition on Feb. 27, 2017. He faces up to 10 years in federal prison when he is sentenced by U.S. District Judge Ted Stewart in May.
Officers of the Cedar City Police Department, deputies from the Iron County Sheriff’s Office, and special agents of the DEA are investigating the case. Assistant U.S. Attorneys in the U.S. Attorney’s Office in St. George are prosecuting the case.
Fairlawn, New Jersey, Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
NEWARK, N.J. – A Fairlawn, New Jersey, tax preparer today admitted preparing fraudulent income tax returns on behalf of her clients, causing losses of over $130,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Arias, a/k/a “Shirley Zambrano,” 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging her with one count of aiding and assisting others in the preparation of false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
Arias was an owner and operator of Santos & Associates in Union City, New Jersey. For the tax years 2012 through 2014, Arias assisted in the filing of income tax returns based on false information. She used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for her clients in amounts greater than those to which they were entitled. The bogus returns resulted in a tax loss to the government of approximately $130,279.
The charge to which Arias pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for July 25, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea. He also thanked special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office in Newark.
Defense counsel: Katey Theurer Esq., Jersey City, New Jersey
Fairbanks Woman Sentenced to 70 Months in Federal Prison for Heroin and Methamphetamine Trafficking in the InteriorRead the Press Release
Fairbanks, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a Fairbanks woman was sentenced in federal court in Fairbanks for one count of trafficking heroin and methamphetamine.
Maria Laren Henry, 31, of Fairbanks, Alaska, was sentenced on Friday by Senior U.S. District Judge Ralph R. Beistline, to 70 months in prison, to be followed by five years of supervised release.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, Henry’s drug trafficking came to authorities’ attention on July 12, 2016, after the defendant caused a single vehicle accident in Fairbanks, Alaska, at around 10 o’clock that Tuesday morning. The defendant, driving at a high rate of speed on Chena Pump Road, crossed the centerline and veered into oncoming traffic, nearly hitting three vehicles, and then crossed the adjoining bike path and struck several mailboxes. The defendant was transported by ambulance to Fairbanks Memorial Hospital for medical attention, where the defendant was found in possession of 27.5 grams of heroin and 21.5 grams of pure methamphetamine. Specifically, the heroin was inside a plastic container that the defendant was clutching in her hand and the methamphetamine was discovered inside her when medical professionals prepared her for surgery. Thereafter, the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit (AST SDEU) obtained a search warrant for the defendant’s impounded vehicle and found inside, among other things, a loaded .9mm handgun in the defendant’s jacket pocket, 100 clear plastic baggies resembling the baggie containing methamphetamine that was removed from the defendant’s body on July 12, a cell phone containing numerous incriminating text messages and other information, prescription pills belonging to a third party, as well as ample indicia of heroin and other drug use.
During the sentencing hearing, Judge Beistline noted the defendant’s extensive criminal history, including a prior drug offense involving the defendant trying to hit a cop with her car and several 2016 burglary charges that arose in the Fairbanks and North Pole area.
Acting U.S. Attorney Schroder also wishes to commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Alaska State Troopers Fairbanks Statewide Drug Enforcement Unit for their investigation of this case.
Edwardsville Man Sentenced to 87 Months’ Imprisonment for Heroin Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on March 28, 2017, United States District Court Judge Robert Mariani sentenced Louis Angel Soto, age 27, of Edwardsville, Pennsylvania, to 87 months’ imprisonment for possessing with intent to distribute heroin, and for possessing a firearm in furtherance of his drug trafficking activities.
According to United States Attorney Bruce D. Brander, Soto was arrested with heroin, marijuana, and a loaded .40 caliber Smith & Wesson semi-automatic pistol after a search warrant was executed at his home by the Drug Enforcement Administration.
Soto was indicted by a grand jury on November 10, 2015, and pleaded guilty pursuant to a plea agreement on March 18, 2016. He has been in custody since his arrest.
The case was investigated by the Drug Enforcement Administration, working in conjunction with the Wilkes-Barre Police Department. Assistant United States Attorney Evan Gotlob 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Doctor, Pharmacist and Recruiter Sentenced in Opioid Diversion ConspiracyRead the Press Release
HOUSTON – Three Houston residents have been ordered to federal prison for their roles in an oxycodone dispensation and distribution conspiracy, announced Acting United States Attorney Abe Martinez.
Dr. Richard Williams, 77, was a physician practicing general preventive medicine in the Houston area, while Agnes Osire, 51, was a pharmacist in the Houston area since 2008. Richard Flanagan, 63, was a recruiter who would find persons to act as patients to acquire prescriptions for oxycodone. All previously pleaded guilty their roles in the conspiracy.
Today, U.S. District Judge Lynn Hughes ordered Williams to serve 60 months in federal prison. Osire received a sentence of 45 months, while Flanagan was sentenced to a 38-month-term of imprisonment.
Williams was responsible for the illicit issuance of prescriptions for oxycodone, resulting in the dispensation of more than 32,000 pills of 30-milligram-strength oxycodone in March and April 2014. He was aware that these prescriptions were not issued for a legitimate medical purpose and, on many occasions, pre-signed prescriptions knowing they would be used by others to acquire and sell for profit oxycodone pills.
According to her plea, Osire agreed to fill three prescriptions on April 8, 2014, and was paid in cash for filling these prescriptions. Each prescription was for 120 pills of 30-milligram strength oxycodone.
Flanagan, who admitted to being a recruiter, would take the so-called patients to pharmacies to get the prescriptions filled. He also sold the oxycodone pills for profit on the street. Evidence specifically demonstrated that Flanagan illegally acquired over 1,000 pills in March and April of 2014.
Williams and Osier was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Flanagan has been and will remain in custody.
The Tactical Diversion Squad of the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Bryan K. Best is prosecuting the case.
Detroit heroin dealer pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man pleaded guilty today to a federal heroin crime, announced United States Attorney Carol Casto. Kenyoda Holmes, 26, entered his guilty plea to distribution of heroin.
Holmes admitted that on April 20, 2016, he sold heroin to a confidential informant working with law enforcement. The drug deal took place in South Charleston.
Holmes faces up to 20 years in federal prison when he is sentenced on July 6, 2017.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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.
- Follow us on Twitter: SDWVNews
Dayton Man Pleads Guilty to RobberyRead the Press Release
DAYTON – Michael Stathas, 33, of Dayton, pleaded guilty in U.S. District Court to two counts of robbery.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, Stathas robbed two banks in Montgomery County in late December. On December 23, he jumped the teller counter at a Fifth Third Bank in Kettering, Ohio before pepper spraying the teller and stealing the teller’s station money. Again on December 29, Stathas vaulted a bank counter, this time at Key Bank in Centerville, Ohio. Once on the other side of the counter, he stole cash from the teller’s station.
Stathas fled the second robbery in his vehicle. Soon thereafter, police in marked vehicles attempted to stop him, but rather than complying with their demands, he fled at a high rate of speed, ultimately crashing his car near Moraine, Ohio.
As part of the plea agreement, all parties involved in this case have recommended a sentence of 105 months in prison. U.S. District Judge Rice will consider that recommendation at a future sentencing hearing, which has yet to be scheduled.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
# # #
Cushing Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MYSTIQUE PATRICIA MOUCKA, age 36, of Cushing, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, and up to a $1,000,000.00 fine or both.
The Information alleged that on or about December 6, 2014, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, 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.
Assistant United States Attorney Timothy Hammer represented the United States.
Court Authorizes Service of John Doe Summons Seeking Information About Dutch Residents Using American Express Cards Linked to Non-Dutch Bank AccountsRead the Press Release
A federal court in Texas authorized the Internal Revenue Service (IRS) to serve a John Doe Summons on American Express Travel Related Services Company, the Justice Department announced. The IRS John Doe summons seeks information about persons residing in the Netherlands that have American Express debit or credit cards linked to bank accounts located outside of the Netherlands. The summons is referred to as “John Doe” summonses because the IRS does not know the identity of the person being investigated.
The United States petitioned the U.S. District Court in the Western District of Texas to authorize the summons at the request of the government of the Netherlands under a treaty between the Netherlands and the United States. The treaty allows the two countries to cooperate in exchanging information that is helpful in enforcing each country’s tax laws. The IRS summons seeks the identities of Dutch residents who have debit or credit cards linked to bank accounts located outside of the Netherlands so the Dutch government can determine if those persons have complied with Dutch tax laws. request is based on the Netherlands Tax and Customs Administration’s (NTCA) Payment Card Project, in which information on the use of payment cards (debit or credit) issued by financial institutions outside of the Netherlands can be used to identify non-compliant Dutch taxpayers. NTCA’s project has made similar requests, and already obtained similar information, from other financial institutions outside the United States resulting in several million euros in additional tax, interest and penalties from the non-compliant Dutch taxpayers, according to evidence submitted with the petition. American Express informed the NTCA that the transaction information sought is exclusively available in the United States, according to the evidence submitted with the petition. filing does not allege that American Express violated any U.S. or Dutch laws with respect to these accounts.
“The Department of Justice and the IRS are committed to working with the United States’ international treaty partners to identify individuals using secret offshore accounts to evade tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “This sustained collaboration limits the opportunities to hide assets and belies the assumption that information about them is beyond a taxing authority’s reach.”
“In fighting international tax evasion, the IRS recognizes hidden offshore accounts are a problem other nations face as well,” said IRS Commissioner John Koskinen. “By using our existing network of bilateral agreements and tools such as the John Doe summons, we can help address a common problem of evading taxation by hiding assets abroad.”
The court order in this case authorizing this enforcement action is a part of ongoing international efforts to stop persons from using foreign financial accounts as a way to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U. S tax obligations, and have approved John Doe summonses to be used to identify individuals using U.S. financial institutions or accounts to evade tax obligations of a foreign county, pursuant to international tax treaties.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Citizen of Guatemala Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID ORTIZ JUAREZ, 35, a citizen of Guatemala who recently resided in Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to approximately seven and one-half months of imprisonment, time already served, and two years of supervised release, for illegally reentering the United States after being deported.
According to court documents and statements made in court, ORTIZ JUAREZ, who has never held legal status in the U.S., entered the U.S. through New Mexico when he was a juvenile. He was removed to Guatemala in April 1998.
ORTIZ JUAREZ illegally reentered the U.S. in approximately 2003 and lived in Hartford. He was subsequently convicted after trial in Hartford superior court of two counts of risk of injury to a minor. The conviction was related to severe injuries suffered by his then four-month-old daughter who was in his care. Following service of a five-year sentence, he was removed to Guatemala in April 2009.
ORTIZ JUAREZ again illegally reentered the U.S. On August 7, 2016, he was arrested by Hartford Police for driving under the influence of alcohol and/or drugs.
ORTIZ JUAREZ has been detained since his arrest by ICE agents on August 19, 2016. On January 5, 2017, he pleaded guilty to reentry of a removed alien.
At the conclusion of today’s court proceeding, ORTIZ JUAREZ was taken into ICE custody and will be removed to Guatemala.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chiropractor Convicted of Tax FraudRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that STEVEN F. ANGLE, age 61, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to three counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and to one count of endeavoring to interfere with the due administration of the Internal Revenue laws, in violation of Title 26, United States Code, Section 7212(a). As a result of his convictions, ANGLE faces a potential prison term as well as restitution order.
ANGLE owned and operated Chiropractic Nutrition Clinic located in Baton Rouge, Louisiana, for approximately 20 years. ANGLE provided chiropractor services to clients and was paid primarily by health insurance companies and law firms. ANGLE filed false federal income tax returns from 2005-2009 and from 2011-2013. For instance, ANGLE reported $26.00 in total income for the 2011 tax year and $0 in total income for the 2012 tax year. For the 2013 tax year, he reported $0 in total income when he had actually earned at least $108,000. In all of the 2005-2009 and 2011-2013 tax returns, he represented that he owed no taxes when, in fact, he had earned substantial income from his chiropractic services. Filed with these false tax returns were Forms 1099-MISC, which had been altered by ANGLE to reflect that he had earned $0 from the insurance companies and law firms when, in fact, he had earned significant income from them.
Acting U.S. Attorney Amundson stated, “Those who defraud the tax system not only defraud the federal government, but also leave millions of honest taxpayers holding the bag. Such fraudsters sometimes claim to be ‘sticking it’ to the federal government. In fact, they are really ‘sticking it’ to their honest neighbors and friends who pay their taxes. I appreciate the excellent work of the agents and prosecutors working on this important matter.”
IRS, Criminal Investigation Special Agent-in-Charge Jerome R. McDuffie stated, “Today’s guilty plea represents a victory for the taxpaying citizens of this country. Stephen Angle challenged the constitutionality of our nation’s tax laws, and was not successful in his attempts to impede the government, specifically the IRS. It is particularly relevant during this current filing season, that the taxpayers of this country are aware the Special Agents of IRS – CI are currently, and always, working very diligently to protect the tax dollars they pay into the tax system, as well as to collect from those individuals who evade the payment of their fair share. ”
This investigation was handled by the Criminal Investigations Division of the Internal Revenue Service and the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys J. Brady Casey and Rene Salomon.
Central Reentry Job Fair & ExpoRead the Press Release
Contact Person: Joe Brewer (864) 282-2121
Columbia, 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 Central Reentry Job Fair & Expo is being held Wednesday, May 3, 2017, from 10:00 am to 1:00 pm at the Dutch Square Mall, located at 421 Bush River Road, Columbia, SC 29210.
This fair, which targets the Midlands, is part of a series of fairs, including Florence, the Upstate, and the Lowcountry, 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].
#####
Buffalo Man Charged with Ramming FBI Property with His CarRead 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 Robert Lowe, 35, of Buffalo, NY, was arrested and charged by criminal complaint with depredation of government property. The charge carries a maximum of 10 years in prison and a $1,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the complaint, on March 30, 2017, at approximately 10:40 p.m., the defendant rammed his SUV into the gate of the Buffalo Office of the FBI on Mohawk Street. Lowe then backed up from the gate and drove around the perimeter of the FBI office at a high rate of speed. The defendant then drove to the perimeter gate on Staats Street and rammed into that gate twice. The gate gave way and Lowe entered the parking lot, drove in circles and then rammed into the outbound lane perimeter gate. The defendant drove out of the parking lot through Staats Street and was stopped and taken into custody by Buffalo Police at Chippewa Street and Elmwood Avenue.
The estimated value of the damaged security gates at the FBI is in excess of $50,000.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.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.
Berkeley County man sentenced for federal firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jonathan Leigh Wienke, 46, of Martinsburg, West Virginia, was sentenced today to 18 months incarceration for unlawfully making firearms, Acting United States Attorney Betsy Steinfeld Jividen announced.
Wienke pled guilty to one count of “Making a Firearm in Violation of the National Firearms Act” in December 2016.
On June 9, 2016, the Department of Homeland Security obtained a warrant to search Wienke’s home in Martinsburg, West Virginia. During that search, officers found a pistol with an attachment that appeared to be a silencer. The pistol and silencer were seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Testing confirmed that the attachment was a silencer capable of diminishing the sound report of a portable firearm, and that the silencer met the definition of a “firearm” under federal law. The silencer did not have any manufacturer’s mark of identification or serial number, as required by the National Firearms Act. The investigating agent learned that Wienke had manufactured the silencer, but did not have the requisite license or approval to manufacture a silencer, as required by the National Firearms Act.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Bay Area Companies Agree to Pay $717,250 to Settle Department of Justice Claims That They Failed to Maintain Adequate Records Regarding Controlled SubstancesRead the Press Release
SAN FRANCISO – Golden Gate Pharmacy Holdings and its wholly owned subsidiaries, Golden Gate Pharmacy Services (GGPS) and Ross Valley Compounding Pharmacy (Ross Valley), have agreed to pay $717,250 to settle allegations by the U.S. Department of Justice that the companies failed to keep and maintain adequate records pertaining to controlled substances at their San Rafael, California facility, announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin.
The settlement agreement, signed earlier today by Justice Department officials, was reached to resolve allegations by the government that a September 2014 DEA inspection uncovered multiple violations by GGPS and Ross Valley of the Controlled Substances Act, 21 U.S.C. § 801. According to the agreement, San Rafael-based companies GGPS and Ross Valley each was, at the relevant time, registered with the DEA as a Retail Pharmacy providing them with authorizations to handle Schedules II, III, IIIN, and IV controlled substances. GGPS and Ross Valley both acknowledged they had an obligation to “keep and maintain” records related to its receipt, manufacturing and distribution of controlled substances in connection with operations at their San Rafael, California facility. According to the agreement, following the DEA’s inspection, the government concluded that between September 4, 2012, and September 4, 2014, GGPS and Ross Valley failed to record or maintain adequate inventory records or “records of the receipt, storage or shipment of controlled substances in at least 5,161 instances.” In addition, according to the agreement, an employee at the San Rafael facility pilfered approximately 8,000 oxycodone tablets. According to the terms of the agreement, Golden Gate Pharmacy Holdings, GGPS, and Ross Valley Pharmacy will pay the government $717,250 to resolve all civil claims related to the recordkeeping violations identified in the investigation.
Assistant U.S. Attorney Jonathan U. Lee handled this matter with the assistance of Garland He and Jessica Hurtado.
Bakersfield Car Dealership Owners Plead Guilty to Felonies Involving the Failure to File Required IRS FormsRead the Press Release
FRESNO, Calif. — Ramiro Catano, 51, and his brother Tereso Catano Casas, 49, both of Bakersfield, pleaded guilty today to felonies involving the failure to file IRS forms required for cash transactions over $10,000, United States Attorney Phillip A. Talbert announced.
According to court documents, the defendants co-owned Catano’s Auto Sales and Repair in Bakersfield. Their auto dealership was required by federal law to file a form, called a Form 8300, on any cash transaction from a single customer that exceeded $10,000 in a one-year period. On April 2, 2013, an undercover federal agent purchased a vehicle for $12,000 cash from the dealership and requested that the dealership not file a Form 8300 on the transaction. The undercover agent also stated to Ramiro Catano that the cash used to purchase the vehicle was from the sale of cocaine. Following the sale, the defendants did not file a Form 8300 on the transaction. Then, on July 26, 2013, an undercover federal agent purchased a vehicle for $16,000 cash from the dealership. As with the earlier transaction, the undercover agent requested that the dealership not file a Form 8300 on the transaction, and the defendants did not do so.
Ramiro Catano pleaded guilty to conspiring to not file a Form 8300, and Tereso Catano Casas pleaded guilty to misprision of (or failing to report) a felony because he knew that not filing a Form 8300 was a felony, but he failed to report the crime to the proper authorities.
This case is the product of an investigation by the IRS Criminal Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bakersfield Police Department. Assistant United States Attorneys Grant Rabenn and Jeffrey A. Spivak are prosecuting the case.
As part of the plea agreement, the defendants have agreed to pay a $28,000 forfeiture money judgment.
The defendants are scheduled to be sentenced on July 10, 2017, at 10:00 a.m. before U.S. District Judge Dale A. Drozd. Ramiro Catano faces a maximum statutory penalty of five years in prison and a $250,000 fine. Tereso Catano Casas faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentences, 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.
Attorney General Sessions' Memorandum Supporting Federal, State, Local and Tribal Law EnforcementRead the Press Release
Memorandum from the Attorney General on supporting federal, state, local and tribal law enforcement.
Saturday 1 April 2017
“Protecting Our Tribal Communities: Responding to Gun Violence and Its Victims” Conference to be held in Pine Ridge on April 6Read the Press Release
United States Attorney Randolph J. Seiler announced that a half-day conference addressing gun violence in Indian country will be held in Pine Ridge, South Dakota, on Thursday April 6, 2017. The event is in conjunction with National Crime Victims’ Rights Week and is hosted by the U.S. Attorney’s Office, the Oglala Sioux Tribe, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The keynote speaker is Michael Poindexter, the Sheriff of Modoc County in California, where a mass shooting took place in February of 2014 during a tribal council meeting. Four tribal members, including the Tribal Chairman, died as a result of the tragic event. Sheriff Poindexter was one of the responding officers who worked closely with the victims, and he will share his story of survival and the effect of the shooting on the community.
Also on the agenda is Cheryl “Renee” Bourque with the Bureau of Indian Affairs. Ms. Bourque will share her experience and address the impact of losing two of her close friends and co-workers to gun violence. Both victims were Native American and worked for the Seminole, OK sheriff’s office. In addition, Frank Kelsey with the Bureau of Alcohol, Tobacco, Firearms & Explosives, will give a presentation on gun violence, the nature of the problem and how to avert the consequences.
Representatives from several local victim service providers will have a display/information booth. Following the conference, a ceremony will take place honoring four individuals who have provided outstanding services to victims of crime in Indian country.
The event will be held at the SuAnn Big Crow Center in Pine Ridge, located at 1 Positive Place. The conference will run from 10:00 am – 1:00 pm, followed by the National Crime Victims’ Rights Week presentations. The public is welcome and a free lunch will be served.
AGENDA.pdfSt. Francis Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Blue Bird, age 30, was indicted on September 13, 2016. He appeared before U.S. Magistrate Mark A. Moreno on March 29, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 16, 2016, and September 13, 2016, Blue Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction, knowingly failed to register and update his registration as required by law.
The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 23, 2017.
Oglala Man Convicted of Assaulting Three FemalesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Oglala, South Dakota, man convicted of Assault with a Dangerous Weapon and Assault by Striking, Beating or Wounding was sentenced on March 27, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Clint A. Marshall, age 44, was sentenced on Count 1 to 51 months in custody, 3 years’ supervised release, a $100.00 special assessment to the Federal Crime Victims Fund, and $69,805.49 restitution; and was sentenced on Count 2 to 12 months in custody, 1 year supervised release, and a $25.00 special assessment to the Federal Crime Victims Fund. The custody time was ordered to run consecutively.
On October 10, 2015, Marshall was consuming alcohol at a trailer he was renting with his girlfriend in Oglala. Marshall and his girlfriend got into a verbal argument that turned into a physical altercation. Marshall intentionally pushed her and assaulted her using his hands. She left the trailer and the area for a short period of time.
When she returned, there was a white vehicle and two women outside the trailer. Marshall was also outside and approached his girlfriend. Marshall still appeared angry from the earlier fight with her. The two women got back into their vehicle and indicated to Marshall’s girlfriend that she could get in. Before getting into the car, she threw her car keys at Marshall. She got into the back seat of the vehicle. Marshall then picked up the car keys, got in his girlfriend’s car, and began following the white vehicle with the three women in it.
Marshall followed the white vehicle, increasing his speed and driving erratically. Using the vehicle he was driving, Marshall rammed the rear portion of the white vehicle. That strike caused the white vehicle to slide off the highway and roll over, ultimately coming to rest back on its wheels in a field.
All three women sustained injuries from the crash. One had to be removed from the vehicle with specialized equipment. She is paralyzed in all of her limbs as a result of the crash, and requires full-time medical care in a specialized facility.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Marshall was immediately returned to the custody of the U.S. Marshals Service.
Mission Woman Charged with Bank Fraud and ForgeryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Bank Fraud and Forgery.
Kaitlyn Erickson, age 21, was indicted on March 15, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Bank Fraud is up to 30 years in custody and/or a $1,000,000 fine, and 5 years of supervised release; the maximum penalty for Forgery is a maximum of 5 years of custody and/or a $250,000 fine, and 3 years of supervised release. Both charges could result in $100 to the Federal Crime Victims Fund and restitution.
The Indictment alleges that on or about January 17, 2017, Erickson altered and passed a check from an account that did not belong to her. Erickson deposited the forged check into an account at Wells Fargo Bank, insured by the Federal Deposit Insurance Corporation and attempted to withdraw funds from the account.
The charge is merely an accusation and Erickson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Erickson was released pending trial. A trial date has been set for May 23, 2017.
Mission Man Charged with Prohibited Person in Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Sean Stinson, age 21, was indicted on November 9, 2016. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 28, 2016, Stinson, having been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of and addicted to a controlled substance, knowingly possessed and received a Ruger SR 1911 pistol, which had been shipped and transported in interstate commerce.
The charge is merely an accusation and Stinson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Stinson was released pending trial. A trial date has not been set.
Kyle Man Indicted for Aggravated Sexual Abuse by ForceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for two charges of Aggravated Sexual Abuse by Force.
Tolin Gregg, age 19, was indicted on March 21, 2017. Gregg appeared before U.S. Magistrate Judge Daneta Wollmann on March 27, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Gregg using force to engage in a sexual act with a female on December 23, 2016, near Kyle.
The charges are merely accusations and Gregg is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Gregg was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 30, 2017.
Fort Thompson Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Megan Howe, age 21, was indicted on March 15, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 11, 2016, Howe forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties and employed as a federal law enforcement officer.
The charge is merely an accusation and Howe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Howe was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Charged with Several Sexual Abuse Counts and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Abusive Sexual Contact of a Child, Sexual Abuse of a Child, Abusive Sexual Contact of a Minor, and Child Abuse.
Charles Edwards, age 36, was indicted on March 21, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, life of supervised release, and up to $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges between December 2008 and December 2016, Edwards sexually molested a child on multiple occasions. The Indictment also alleged that Edwards abused, exposed, tortured, tormented, and cruelly punished that same child.
The charges are merely accusations and Edwards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Edwards was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 23, 2017.
Dupree Woman Indicted on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person.
Alyce Marie Morrison, age 33, was indicted on March 15, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and up to $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2016, and January 14, 2017, Morrison knowingly and intentionally conspired and agreed to distribute methamphetamine, a Schedule II controlled substance, actually distributed methamphetamine on three occasions, and on one occasion possessed methamphetamine with the intent to distribute it. The Indictment further alleges that on January 14, 2017, Morrison unlawfully possessed a firearm and was prohibited from doing so because of her use of methamphetamine.
The charges are merely accusations and Morrison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Morrison was remanded to the custody of the U.S. Marshals Service pending trial. Trial is set for May 22, 2017.
Clearfield Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Clearfield, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Cory Scott Fischer, age 45, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 30, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between November 10, 2017, and November 11, 2017, Fischer knowingly and intentionally possessed with intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota.
The charge is merely an accusation and Fischer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Fischer was released on bond pending trial. A trial date has not been set.
Agency Village Woman Charged with Involuntary Manslaughter of Baby BoyRead the Press Release
United States Attorney Randolph J. Seiler announced that an Agency Village, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Samantha Flute, age 26, appeared before U.S. Magistrate Judge William D. Gerdes on March 21, 2017, and pled not guilty to the Indictment.
The maximum penalties upon conviction is up to 8 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about August 20, 2016, Flute gave birth to a fully developed male infant. At the time of admission, Flute tested positive for a number of prescription and over-the-counter medications. The cause of death was attributed to a combined drug toxicity of the prescription and over-the-counter medications. It is alleged in the indictment that Flute acted in a grossly negligent manner, with actual knowledge that her conduct was a threat to the life of another, and with actual knowledge that would reasonably enable her to foresee the peril to which her act subjected another.
The charges are merely accusations and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the State of South Dakota’s Division of Criminal Investigation, and the Sisseton-Wahpeton Oyate Sioux Tribe’s Police Department. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Flute was released to a third-party pending trial. A trial date has been set for May 23, 2017.
Friday 31 March 2017
Women Sentenced for Providing Material Support to TerroristsRead the Press Release
ALEXANDRIA, Va. – Two women were sentenced today for terrorism crimes related to their material support of al-Shabaab, a designated foreign terrorist organization.
Muna Osman Jama, 36, of Reston, and Hinda Osman Dhirane, 46, of Kent, Washington, were sentenced to 12 and 11 years, respectively, for conspiracy to provide material support to a foreign terrorist organization, and providing material support to a foreign terrorist organization. The women were found guilty of the crimes after a bench trial in front of U.S. District Judge Anthony J. Trenga on Oct. 25, 2016.
According to court documents, Jama and Dhirane, who are both originally from Somalia and are naturalized United States citizens, sent money to financiers of al-Shabaab in Somalia and Kenya, which they referred to respectively as the “Hargeisa side” and the “Nairobi side.” The defendants also organized what was called a “Group of Fifteen,” which included women from Somalia, Kenya, Egypt, the Netherlands, Sweden, the United Kingdom, and Canada, as well as Minneapolis, Minnesota. The “Group of Fifteen” met regularly in a private chatroom that Jama established to organize and track monthly payment of money to the “Hargeisa side,” which was used to finance al-Shabaab military operations in the Golis Mountains in northern Somalia, and the “Nairobi side,” which was used to fund two al-Shabaab safehouses. One of the safehouses was used by al-Shabaab to store weapons and to prepare for attacks. The other was used to treat al-Shabaab fighters who had been wounded in battle.
A substantial part of the government’s case consisted of recorded telephone calls and other communications among the “Group of Fifteen.” These recordings demonstrated that the women had close connections with al-Shabaab leadership and were privy to non-public, inside information concerning al-Shabaab activities. Jama and Dhirane were recorded as they laughed as the carnage at the Westgate Mall in Nairobi was still taking place. Dhirane and co-conspirator were also recorded as they laughed at the Boston Marathon Bombing before it became known who committed the attack.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mary B. McCord, Acting Assistant Attorney General for the Justice Department’s National Security Division; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Jay S. Tabb, Jr., Special Agent in Charge of the FBI’s Seattle Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh prosecuted the case with assistance from C. Alexandria Bogle, Trial Attorney, Counterterrorism Section.
This case was investigated by the FBI’s Washington, D.C. Field Office, with the assistance of the FBI’s Minneapolis and Seattle Field Offices. The U.S. Attorney’s Office in Minneapolis also provided valuable assistance to the prosecution. The Justice Department’s Office of International Affairs played an essential role in coordinating arrests and searches with foreign authorities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-230.
Wind River Indian Reservation Resident Sentenced to 108 YearsRead the Press Release
LANDER – Acting United States Attorney John R. Green, Federal Bureau of Investigation Special Agent in Charge Calvin Shivers, and Bureau of Indian Affairs Special Agent in Charge Doug Noseep announced that on March 28, 2017 Winder River Indian Reservation Resident Marvin "Muff" Magnan, age 63, of Lander, Wyoming was sentenced to 108 years in a federal penitentiary. A jury found Magnan unanimously guilty on 12 counts of sexual assault on September 22, 2016. The guilty verdicts were the result of a 4 day trial before U.S. District Court Judge Scott W. Skavdahl. The jury deliberated for less than one day before reaching their verdict. Magnan, who was indicted by a federal grand jury in Casper, Wyoming on May 18, 2016, was detained after his arrest and through trial. He was sentenced by Judge Skavdahl on March 28, 2017.
According to the indictment and evidence presented at trial, Magnan sexually assaulted six child victims, all but one victim related to Magnan. Each victim testified at trial and each described multiple, repeated incidents where Magnan unlawfully touched them in a sexual manner. Many of these incidents happened while the minor children were entrusted to Magnan’s care and while Magnan was allegedly teaching horsemanship to his victims. Other incidents occurred at his house or other properties on the Wind River Indian Reservation. One incident against a victim occurred in Salt Lake City, Utah. This case was successfully prosecuted and justice given to the victims because of their perseverance under tough circumstances and the lengthy, complex investigation conducted FBI Agent Paul Swenson.
"Magnan’s sentence illustrates the FBI’s commitment to protect our most vulnerable citizens, our children," said FBI Denver Special Agent in Charge Calvin Shivers. "The FBI will continue to work diligently with our law enforcement partners and the United States Attorney’s Office to rigorously investigate and prosecute cases involving the sexual victimization of children."
This case was investigated by the FBI and Bureau of Indian Affairs.
The case was prosecuted by Assistant United States Attorneys Stephanie Sprecher.
Waterbury Grocery Store Worker Pleads Guilty to Illegal Use of Food Stamp BenefitsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that TALLAT MAHMOOD, 64, of Waterbury, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents, MAHMOOD worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MAHMOOD and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
MAHMOOD was arrested on August 18, 2016, and is released on a $50,000 bond. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 12, 2017, at which time he faces a maximum term of imprisonment of 10 years, a fine of up to twice the gross loss from the offense, and restitution.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Warren man convicted for having firearms and more than a kilogram of heroinRead the Press Release
A Warren man is facing a mandatory minimum sentence of 10 years in prison after he was convicted of having more than a kilogram of heroin and firearms, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio and Warren Police Chief Eric Merkel.
Ricardo B. McKinney, 31, is scheduled to sentenced on July 19.
“This is a criminal who does not belong on the streets of Warren or anywhere else,” Sierleja said. “The amount of deadly drugs he had, and the fact that he’s a felon with firearms, demonstrates that prison is the proper place for this defendant.”
Merkel said: “I would like to thank the Warren Street Crimes Unit for all of the hard work that was put into this case and their dedication to removing from our streets a drug that has killed so many in our city. I would also like to thank the U.S. Attorney's Office for prosecuting this case. This partnership is an essential element in our mission to eliminate drug traffickers from our community.”
A jury convicted McKinney on two counts of distribution of heroin, one count of possession with the intent to distribute one kilogram or more of heroin and one count of being a felon in possession of firearms following a weeklong trial.
McKinney sold heroin on two occasions in early 2015. Warren police arrested McKinney on Feb. 25, 2015, with approximately 1657.2 grams of heroin and two handguns. McKinney was prohibited from having a firearm because of prior felony convictions, according to court documents and trial testimony.
Prosecutors are forfeited nearly $30,000 and the two firearms seized as part of the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Daniel J. Riedl. The investigation was conducted by the Drug Enforcement Administration and the Warren Police Department.
Virginia man pleads guilty to his role in a meth distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Robert Lewis Jones, of Waynesboro, Virginia, was convicted today for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Jones, age 54, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Jones admitted to conspiring with others to distribute more than 500 grams of methamphetamine in the Northern District of West Virginia and elsewhere. The crime occurred from May 2013 until October 2016.
Jones faces up to thirty years and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. Attorney's Office and Crime Victim Advocates join to commemorate National Crime Victims' Rights WeekRead the Press Release
CHARLESTON, W.Va. – The United States Attorney's Office for the Southern District of West Virginia, along with federal, state and local advocates of crime victims’ rights, will host an opening ceremony in recognition of National Crime Victims' Rights Week on Monday, April 3, 2017, at 11:00 A.M. in the Robert C. Byrd United States Courthouse in Charleston.
The ceremony will feature officials working in the criminal justice system, agencies and organizations providing services to crime victims, and crime victims themselves who can speak firsthand to their experience. As part of the event, there will be a presentation of the 2016 Excellence in Victim Advocacy and Justice Awards to Corporal Anthony Craigo of the Putnam County Sheriff’s Office and Certified Victim Advocate Sarah Kingston of the Kanawha County Sheriff’s Office. Crime Victim Survivor Joyce Richmond will also receive the 2017 Special Courage Award.
This ceremony marks the 17th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. This event is being held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which begins on April 2 and runs through April 8, 2017. The theme of National Crime Victims' Rights Week this year is "Strength. Resilience. Justice."
WHO:
- United States Attorney Carol Casto
- Joyce Richmond, Crime Victim Survivor, Recipient of the 2017 Special Courage Award
- Corporal Anthony Craigo, Putnam County Sheriff’s Office, Recipient of the 2017 Excellence in Victim Advocacy and Justice Award
- Certified Victim Advocate Sarah Kingston, Kanawha County Sheriff’s Office, Recipient of the 2017 Excellence in Victim Advocacy and Justice Award
- Operation Reach Out committee members
- Other federal, state and local officials
- Staff representing the United States Attorney's Office for the Southern District of West Virginia
WHAT:
- Operation Reach Out Opening Ceremony for National Crime Victims’ Rights Week
WHERE:
- Robert C. Byrd United States Courthouse – Fifth Floor
- 300 Virginia Street, East
Charleston, WV 25301
WHEN:
- Monday, April 3, 2017, at 11:00 A.M. The ceremony will be immediately followed by a brief reception.
Follow us on Twitter: SDWVNews
Two Women Sentenced for Providing Material Support to TerroristsRead the Press Release
Muna Osman Jama, 36, of Reston, Virginia, and Hinda Osman Dhirane, 46, of Kent, Washington, were sentenced today to 12 years and 11 years respectively. Jama and Dhirane were found guilty of conspiracy to provide material support to al-Shabaab, a foreign terrorist organization, and providing material support to a foreign terrorist organization after a bench trial in front of U.S. District Judge Anthony J. Trenga on Oct. 25, 2016.
Acting Assistant Attorney General Mary B. McCord for National Security, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office and Special Agent in Charge Jay S. Tabb, Jr. of the FBI’s Seattle Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
According to court documents, Jama and Dhirane, who are both originally from Somalia and are naturalized U.S. citizens, sent money to financiers of al-Shabaab in Somalia and Kenya, which they referred to respectively as the “Hargeisa side” and the “Nairobi side.” The defendants also organized what was called a “Group of Fifteen,” which included women from Somalia, Kenya, Egypt, the Netherlands, Sweden, the United Kingdom, and Canada, as well as Minneapolis, Minnesota. The “Group of Fifteen” met regularly in a private chatroom that Jama established to organize and track monthly payment of money to the “Hargeisa side,” which was used to finance al-Shabaab military operations in the Golis Mountains in northern Somalia, and the “Nairobi side,” which was used to fund two al-Shabaab safehouses. One of the safehouses was used by al-Shabaab to store weapons and to prepare for attacks. The other was used to treat al-Shabaab fighters who had been wounded in battle.
A substantial part of the government’s case consisted of recorded telephone calls and other communications among the “Group of Fifteen.” These recordings demonstrated that the women had close connections with al-Shabaab leadership and were privy to non-public, inside information concerning al-Shabaab activities. Jama and Dhirane were recorded as they laughed as the carnage at the Westgate Mall in Nairobi was still taking place. Dhirane and co-conspirator were also recorded as they laughed at the Boston Marathon Bombing before it became known who committed the attack.
This case was investigated by the FBI’s Washington, D.C. Field Office, with the assistance of the FBI’s Minneapolis and Seattle Field Offices. The U.S. Attorney’s Office in Minneapolis also provided valuable assistance to the prosecution. The Justice Department’s Office of International Affairs played an essential role in coordinating arrests and searches with foreign authorities. Assistant U.S. Attorneys James P. Gillis and Danya E. Atiyeh prosecuted the case with assistance from C. Alexandria Bogle, Trial Attorney, Counterterrorism Section.
Two More Columbia Men Charged Related to Prostitution OperationRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two more Columbia, Mo., men have been charged in federal court, in separate but related cases, in relation to a prostitution operation.
Barry Paul Manthe, 63, and Ronald James Clark, 63, both of Columbia, were charged in separate criminal complaints that were filed under seal in the U.S. District Court in Jefferson City, Mo., on Thursday, March 30, 2017. Those complaints were unsealed following the arrests of Manthe and Clark, who remain in federal custody pending a detention hearing.
Both Manthe and Clark are charged with using the Internet to promote a racketeering enterprise, a prostitution business that operated out of a Columbia residence.
The investigation that resulted in these charges also resulted in a federal indictment that was returned on March 22, 2017. In a separate but related case, Kenneth Ronald Jones, 25, of Columbia, was charged in an eight-count indictment returned by a federal grand jury in Jefferson City.
Jones is charged with three counts of transportation for illegal sexual activity by coercion and enticement. The indictment alleges that Jones induced three victims to travel across state lines to engage in prostitution and illicit sexual activity between May 1 and June 1, 2016. Because one of those victims, identified in court documents as “L.V.,” was under the age of 18, the indictment also charges Jones with one count of transporting a minor across state lines for illegal sexual activity and with the sex trafficking of a minor. The indictment also charges Jones with three counts of sex trafficking by force, fraud or coercion.
According to affidavits filed in support of the criminal complaints, FBI agents learned on June 29, 2016, that a 17-year-old runaway from Wisconsin – identified in court documents as “L.V.” – was being held against her will and forced into prostitution by Jones. She was located at a residence in Columbia on that day and removed by law enforcement agents.
L.V. allegedly told investigators that Manthe paid for escort advertisements on the website Backpage for the prostitutes utilizing the brothel. According to L.V., she was advertised under a pseudonym but the ads did not include her photograph. Jones allegedly found photographs of other female on the Internet and gave them to Manthe to post with the ad.
According to the affidavits, Clark collected the door fee from the prostitutes, which ranged from $10 to $30. Clark applied the door fee income to the monthly bills, then split the remaining profit between himself and Manthe.
L.V. told investigators that she met Jones in May 2016 at a party in Milwaukee, Wis., and agreed to travel with him to Columbia to engage in prostitution. Within a few minutes of arriving at a Columbia residence that was used as a brothel, the affidavits say, a man arrived soliciting prostitution. This man selected L.V. from the approximately five prostitutes present, and paid to have sex with her. L.V. subsequently engaged in prostitution almost every day, averaging two or three clients per day.
Although Jones knew that L.V. was 17 years old, the affidavit says, he told everyone else at the brothel that L.V was 18 years old so she would be allowed to work there.
Another victim, identified in court documents as “C.M.,” told police that three days after arriving at the house, Jones told her that she needed to make money, and threatened to kick her to the streets if she did not do what he wanted. C.M. agreed and did a prostitution “date.” When C.M. told Jones she didn’t want to do that anymore and that she was willing to work as a dancer to make money, Jones allegedly pulled out a handgun and pointed it at her. Jones said he was not playing games, and that C.M. was going to make money.
C.M. and a third victim, identified in court documents as “K.S.,” ran away from Jones in late May or early June 2016.
Jones became increasingly verbally abusive and cruel, the affidavit says, and pressured L.V. to see more clients. L.V. said she wanted to stop prostituting herself after two weeks and told Jones on multiple occasions she did not want to prostitute anymore because it was sad and degrading. Jones did not care, the affidavit says, and instructed L.V. to keep making money. She feared repercussions from Jones if she attempted to leave him.
L.V. told investigators that Jones had left for Milwaukee the day before law enforcement took her from the Columbia residence. Before he left, the affidavit says, Jones instructed L.V. to send the money she earned prostituting herself to him while he was in Milwaukee. L.V. told investigators that she had planned to flee from the residence the following day. Jones was arrested when he returned from Milwaukee for a Boone County court appearance on an unrelated matter on Feb. 27, 2017.
Larson cautioned that these charges are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Ashley S. Turner. They were investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Two Haitian Nationals Sentenced for Hostage TakingRead the Press Release
ALEXANDRIA, Va. – Monclaire Saint Louis, 29, and Ulriste Tulin, 40, both from of Carrefour, Haiti, were each sentenced to 20 years in prison today for conspiracy to commit hostage taking, hostage taking and using a firearm during a crime of violence. Both men were ordered to pay $49,000 in restitution to their victims, and will be removed from the United States upon release from prison.
Saint Louis and Tulin were found guilty after a jury trial on Dec. 16, 2016. According to the evidence presented at trial, Saint Louis and Tulin specifically targeted victims they believed had money and would pay a ransom. Saint Louis and Tulin abducted two United States citizens separately, the first on June 2, 2012, and the second on July 9, 2012. Both victims were women, including one who was 68 years old, and each were held for ransom. The first victim was able to escape after eight days and Haitian law enforcement authorities rescued the second victim after four days.
According to evidence presented at trial, multiple firearms were used to abduct each woman from their respective family. A third co-conspirator, Samson Jolibois, pleaded guilty on to his role in the abductions on Feb. 27, 2015, and testified at trial. Multiple Haitian law enforcement officers traveled to the United States to testify at the trial.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Ronald L. Walutes, Jr. prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-173.
Town of Hempstead Councilman Edward Ambrosino Indicted for Wire Fraud and Tax EvasionRead the Press Release
An eight-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Edward Ambrosino with wire fraud, tax evasion, making and subscribing to false corporate tax returns, and failing to file a return or pay tax. The indictment was returned under seal by a federal grand jury sitting in Central Islip, New York on March 28, 2017. Ambrosino was arrested this morning and will be arraigned this afternoon before United States District Judge Joanna Seybert at the federal courthouse in Central Islip, New York.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Acting Special Agent-in-Charge Kathy A. Enstrom, Internal Revenue Service-Criminal Investigation (IRS-CI).
“As alleged in the indictment, the defendant, an elected public official, defrauded his former employer and committed a variety of tax offenses,” stated Acting United States Attorney Rohde. “Today’s indictment is a reminder of the obvious, that public officials are not exempt from paying their fair share of taxes and otherwise complying with the laws of the United States, just like any other citizen.”
“In this case as charged, Ambrosino’s crimes claimed as a victim, the law firm for whom he worked,” stated Assistant Director in Charge Sweeney. “As alleged, he also committed tax fraud, all the while serving as an elected public official. The FBI is committed to working with our law enforcement partners to ensure this type of behavior ceases to exist, no matter who is at fault.”
“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others. The indictment alleges, Mr. Ambrosino intentionally sought to undermine the tax laws of the United States, violate the public trust while ignoring the fiduciary responsibility he has with his employer,” stated Acting Special Agent-in-Charge Enstrom.
As detailed in the indictment, Ambrosino was an attorney licensed to practice in New York State, specializing in economic and industrial development and financings. Between approximately November 2001 and December 2015, he was “Of Counsel” at a law firm based in Uniondale, New York (the “Law Firm”). In addition, since March 2003, Ambrosino has served as a Councilman for the Town of Hempstead, New York. Since 2010, he has also acted as Special Counsel to the Nassau County Executive.
In 2011, Ambrosino incorporated Vanderbilt Consulting Group, Inc. (“Vanderbilt”). Ambrosino was the sole shareholder for Vanderbilt. In September 2012, Ambrosino opened a bank account in the name of Vanderbilt (the “Vanderbilt Bank Account”), and he was the sole authorized signer on that account.
As alleged in the indictment, from 2013 through 2015, in contravention of his compensation agreement with the Law Firm, Ambrosino diverted legal fees that he was required to provide to the Law Firm and deposited them into the Vanderbilt Bank Account. Among Ambrosino’s clients from whom he received legal fees were components of Nassau County, New York, including the Nassau County Industrial Development Agency (the “NCIDA”) and the Nassau County Local Economic Assistance Corporation (the “NCLEAC”). Between 2013 and 2015, Ambrosino received more than $1.3 million in payments from the NCIDA and NCLEAC. Of this amount, Ambrosino deposited more than $800,000 into a bank account, for which he was the sole signatory, rather than submitting the payments to the Law Firm as required under his compensation agreement.
As further alleged in the indictment, Ambrosino evaded substantial income tax due and owing by him and filed false and fraudulent corporate tax returns on behalf of Vanderbilt. For the 2011, 2012 and 2013 tax years, Ambrosino evaded the assessment of income tax by, among other things, deducting rent expenses on the Vanderbilt corporate tax returns that he knew were not business expenses. Specifically, Ambrosino claimed rent for a Manhattan apartment paid for by him on behalf of a third-party as a business expense. Ambrosino’s personal tax returns included the losses flowing from Vanderbilt for the 2011 and 2012 tax years. In addition, for the 2013 tax year, Ambrosino failed to claim approximately $315,000 in funds he diverted from the Law Firm on either his personal income tax return or the Vanderbilt corporate tax return. With respect to the 2014 tax year, Ambrosino did not timely file his personal tax return or the corporate tax return for Vanderbilt. As a result of Ambrosino’s conduct, the IRS suffered a tax loss of approximately $254,628.
If convicted, Ambrosino faces a maximum term of imprisonment of 20 years for the wire fraud charge, five years for each charge of tax evasion, three years for each charge of making and subscribing to false corporate tax returns, and one year for failing to file a tax return. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
EDWARD AMBROSINOAge: 52
North Valley Stream, NY
E.D.N.Y. Docket No. 17-CR-162 (JS)
Three Sentenced to Prison in Identity Theft and Illegal Employment ConspiracyRead the Press Release
HOUSTON – Two El Salvadorian nationals who were residing in Houston have been ordered to federal prison following their convictions on all counts related to a conspiracy to employ 10 or more unauthorized aliens within a 12-month period, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Rudy Alexander Martinez, 36, and Israel Arquimides Martinez, 44, on April 8, 2016, following a two-week trial and approximately six hours of deliberation. Both were convicted of the conspiracy as well as employing unauthorized aliens, encouraging and inducing undocumented aliens to come to reside in the United States and conspiracy to do same as well as aggravated identity theft. Also sentenced today was Ceasar Santiago Arroyo, 51, of Houston, who pleaded guilty to the conspiracy.
Today, U.S. District Judge Melinda Harmon ordered Rudy Martinez and Israel Martinez to serve 94 and 87 months, respectively. Rudy Martinez received 70 months for the conspiracy and immigration offenses as well as an additional 24 months for the identity theft which must be served consecutively. Israel Arquimides Martinez will serve 63 months plus the consecutive 24 months. Arroyo was ordered to serve a 27-month-term of imprisonment. At the hearing, the court found that both Rudy Martinez and Israel Martinez played an aggravating role in the commission of the offense as supervisors or managers. In handing down the sentence, Judge Harmon noted that the offense involved more than 100 aliens. Judge Harmon also found that Rudy Martinez obstructed justice by testifying falsely under oath and threatening a witness. Not U.S. citizens, both are expected to face deportation proceedings following his release from prison.
At trial, the jury heard that both defendants were employees of Waste Management and worked at one of the company’s locations in Houston. RudyMartinez was a commercial route manager, while Israel Martinez was the residential operations lead driver. From on or around July 30, 2008, and continuing until on or around April 24, 2012, the defendants conspired to hire and continued to employ aliens they knew were unauthorized to work in the U.S. at the company.
Federal law requires employers to hire only U.S. citizens and aliens who are authorized to work here. However, the defendants and others hired manual laborers with little or no regard to their legal work status. Internal audits were conducted, after which the defendants and co-conspirators failed to take corrective measures to ensure the employing company hired workers authorized to work in the country. They also continued to employ undocumented aliens after receiving information, in some cases from the aliens themselves, which would indicate the person was not authorized to work in the U.S.
The jury also heard that the defendants encouraged undocumented aliens to obtain false documentation and assigned false identities to undocumented aliens. In some cases, they also provided the undocumented aliens with employment documents related to the false identity the aliens assumed so they could remain employed as helpers at the waste disposal company’s Houston location.
The individuals whose identities were assumed did not authorize or even know their identities were assumed by these undocumented aliens at the direction and encouragement of the conspirators. These individuals were often former employees of the companies, or individuals who had applied for employment but were never hired. Their information was stolen from documentation and records they executed in connection with their application for employment. The defendants and their co-conspirators would enter these individuals’ information into the payroll system and the undocumented alien would receive a paycheck for their work under the other individual’s name.
On or around Jan. 31, 2012, the defendants and their co-conspirators “fired” at least 10 helpers they knew to be unauthorized aliens purportedly because the aliens failed to supply documentation establishing they were legally present and authorized to work in the U.S. During the “termination” process, the defendants informed and encouraged unauthorized aliens to assume the identity of actual U.S. citizens or individuals who had legal status to reside and work here. They also informed undocumented aliens they could come back to work if they got “good papers” belonging to other individuals. Following their termination, the defendants and their co-conspirators assigned false identities to the terminated aliens and assisted them with obtaining related identifiers to use for employment and payroll purposes. The defendants then “rehired” at least 10 aliens under their assumed identities.
Rudy and Israel Martinez have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Agents assigned to Homeland Security Investigations - Worksite Enforcement Unit conducted the investigation. Assistant U.S. Attorneys Casey N. MacDonald and Douglas Davis prosecuted the case.
Three Indicted for Scheme to Facilitate Evasion of Workers’ Compensation Laws and Employment of Undocumented Aliens in Construction IndustryRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the unsealing of an
indictment charging Orlando residents Anyi (“Angie”) Artica-Romero (31), Joaquin Mejia-Murillo (62), and Milton Noel Romero (34) with wire fraud and conspiracy to commit wire fraud. Artica-Romero is charged in 56 counts, Mejia-Murillo is charged in 1 count, and Romero is charged in 6 counts. Each count carries a maximum penalty of 20 years in federal prison. The indictment also notifies the defendants that the United States intends to seek forfeiture of approximately $812,000, which is the amount of proceeds obtained as a result of the offenses.According to the indictment, Mejia-Murillo registered a corporation called JM Construction Services, Inc. with the State of Florida. He then applied for a workers’ compensation insurance policy for September 2015 through September 2016 to cover six employees and an estimated annual payroll of $140,800.
The insurance company issued the policy for an annual premium of $17,152 based on the payroll information set forth in the application. Subsequent amendments to the policy resulted in its covering 19 employees and an estimated payroll of $410,800, at a revised premium of $38,860.
Under Florida law, any business that engages in construction work must secure and maintain workers’ compensation insurance, and the failure to do so is a felony. Construction contractors must require subcontractors to provide proof that they have workers’ compensation insurance.
Artica-Romero and Mejia-Murillo “rented” the JM Construction insurance policy to numerous contractors and subcontractors who employed hundreds of workers, many of whom are suspected of being undocumented aliens. To do so, they directed the insurance agent to send a certificate of insurance to the contractors and subcontractor as purported proof of sufficient workers’ compensation insurance.
The contractors and subcontractors wrote payroll checks to JM Construction for work performed by their employees. Mejia-Murillo then cashed the checks and gave the money to Artica-Romero to pay the workers. Artica-Romero kept four percent of each check as a fee for their services.
Between September 2015 and August 2016, Artica-Romero and Mejia-Murillo cashed payroll checks totaling $9,419,965, with their four percent fee totaling $376,798. No state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $9,419,965 would have been approximately $1,088,078.
On August 4, 2016, the State of Florida Department of Financial Services, Division of Workers’ Compensation, served a Stop-Work Order on JM Construction alleging that it had failed to secure the payment of workers’ compensation by materially understating or concealing payroll. Subsequently, Mejia-Murillo left the country for Honduras.
To continue the scheme, Artica-Romero began working with Milton Romero, who had registered a company called Milton Statewide General Services, Inc., with the State of Florida. Romero, on behalf of Milton Statewide, obtained workers’ compensation insurance to cover six employees and an estimated payroll of $100,000 for an annual premium of $20,002. A certificate of insurance was issued and then “rented” to numerous contractors and subcontractors, in the same way that JM Construction’s certificate had been rented.
Between August 2016 and March 11, 2017, Artica-Romero and Romero cashed payroll checks totaling $10,883,772, with their four percent fee totaling $435,351. Again, no state or federal payroll taxes were deducted from the workers’ pay. The annual premium for a workers’ compensation insurance policy covering a payroll of $10,883,772 would have been approximately $1,750,453.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Financial Services, Division of Investigative and Forensic Services. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Stockton Man Sentenced to 9 Years and 8 Months in Prison for Drug, Fraud, ID Theft and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Dennis Joseph Machado, 44, of Stockton, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to nine years and eight months in prison for schemes to distribute methamphetamine and defraud banks in Sutter, Sacramento, and San Joaquin Counties using identities obtained from stolen mail, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Machado and co-defendant Breneth L. Chase, 46, also of Stockton, obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter and Sacramento Counties. They used stolen mail to manufacture checks and government identifications to cash the phony checks, apply for lines of credit, and make purchases at local department stores at the expense of local banks and credit unions. When he was arrested, Machado had in his possession various manufactured identifications and stolen personal and financial information for numerous residents of Sutter, San Joaquin, and Sacramento Counties. Machado also possessed a scanner magnetic strip writer to re-encode bank cards to tap into victims’ lines of credit. In addition, Machado had in his possession methamphetamine for purposes of distribution. At the time of his arrest on October 20, 2015, Machado — who had previous felony convictions — unlawfully possessed ammunition.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for the post office burglaries, mail thefts and fraud schemes committed against the public by the defendants in this case.”
This case was the product of an investigation of the United States Postal Inspection Service, the California Highway Patrol, the Sutter County Sheriff's Office, the Stockton Police Department, and the Sutter Creek Police Department, with assistance from the Sacramento County Sheriff's Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.
On December 2, 2015, in a related case, Chase was sentenced to four years and nine months in prison. (2:15-cr-173 GEB)
Stockton Man Sentenced to 2.5 Years in Prison for Trafficking Counterfeit GoodsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Hampton, 40, of Stockton, today to two and a half years in prison for trafficking in counterfeit goods, U.S. Attorney Phillip A. Talbert announced. Judge Burrell also ordered Hampton to pay $282,670 in restitution to Brand Security Corporation on behalf of the trademark holders.
On January 6, 2017, Hampton pleaded guilty to one count of trafficking in counterfeit goods. According to court documents, Michael Hampton imported counterfeit handbags, jackets, accessories, shoes, and jerseys from Asia and supplied them to resellers. Hampton rented storage units in Stockton and sold the counterfeit goods at the storage facility. The counterfeit goods included, Adidas, Chi, Coach, Gucci, Juicy Couture, Louis Vuitton bags, Majestic, Mitchell & Ness shirts and jerseys, New Era sporting goods, Nike shoes, Northface, and 47. In addition, Michael Hampton sold counterfeit Nike shoes on eBay.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Roger Yang prosecuted the case.
Springdale Man Sentenced to 70 Months in Prison for Transporting Minor for ProstitutionRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Antonio “TBoi” Nash, age 23, of Springdale was sentenced today to 70 months in federal prison followed by five years of supervised release on one count of Transporting Individual to Engage in Prostitution. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in January of 2015, officers with the Springdale Police Department encountered a 17-year-old female naked inside a hotel room with an adult male. During an interview with the officers, the minor explained that she had been recruited just before Christmas of 2014 through Facebook by a pimp named “Tboi,” who was later identified as Antonio Nash, to work as a prostitute. She stated that Tboi had picked her up from her residence in Missouri, driven her to Springdale, and introduced her to two other females who explained to her how to be an escort. She said he helped her to create an online advertisement on Backpage.com, and she started working for him. She explained that he would give her marijuana for payment and let her keep some of the money she made from the sexual encounters, but later he took all of the money she made. Homeland Security Investigations (HSI), obtained a search warrant for Nash’s Facebook account, and the Facebook records corroborated the statements of the minor. On or about May 26, 2016, a search warrant was issued on Nash’s residence. At the time, Nash, after being advised of his rights, admitted to being in the business of facilitating sexual encounters for money and, specifically, to recruiting and transporting the 17-year-old female.
Nash was indicted by a federal grand jury in June, 2016 and pleaded guilty in October, 2016.
This case was investigated by Homeland Security Investigations and Springdale Police Department. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
South Carolina Man Arrested for Attempting to Join ISISRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, SC –Zakaryia Abdin, 18, of Ladson, South Carolina, appeared in federal court this morning in Charleston, South Carolina, following his arrest by the FBI last night. Abdin was arrested for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The charge is based on Abdin’s alleged attempt to travel overseas to join the terrorist organization. Special Agents of the FBI’s Joint Terrorism Task Force (JTTF) took Abdin into custody at the Charleston International Airport before he boarded an outbound flight.
United States Attorney Beth Drake for the District of South Carolina and Acting Assistant Attorney General for National Security Mary B. McCord made the announcement.
Charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being handled by the FBI-JTTF. Assistant U.S. Attorney Sean Kittrell of the District of South Carolina and Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section are prosecuting the case.
#####
South Carolina Man Arrested for Attempting to Join ISISRead the Press Release
Zakaryia Abdin, 18, of Ladson, South Carolina, appeared in federal court this morning in Charleston, South Carolina, following his arrest by the FBI last night. Abdin was arrested for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The charge is based on Abdin’s alleged attempt to travel overseas to join the terrorist organization. Special Agents of the FBI’s Joint Terrorism Task Force (JTTF) took Abdin into custody at the Charleston International Airport before he boarded an outbound flight.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Beth Drake for the District of South Carolina made the announcement.
Charges are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being handled by the FBI-JTTF. Assistant U.S. Attorney Sean Kittrell of the District of South Carolina and Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section are prosecuting the case.
Somerset County, New Jersey, Man Sentenced to 18 Years in Prison for Producing Sexually Explicit Images of ChildrenRead the Press Release
TRENTON, N.J. – A Branchburg, New Jersey, man was sentenced today to 216 months in prison for his role in a scheme to produce sexually explicit images of children through a website he operated from his home computer, Acting U.S. Attorney William E. Fitzpatrick announced.
Jonathan Soto, 27, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Count One of an indictment charging him with conspiracy to produce child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Soto admitted that, from July 2014 through April 2015, he administered and operated a website designed to produce child pornography by tricking minor victims into engaging in sexually explicit activity on web cameras. As part of the conspiracy, Soto designed the website with certain online tools and a chatroom function that enabled users to target minor victims online, share victims’ social media profiles and discuss ways to get minors to produce child pornography over the internet.
Users of the website created false profiles on popular social media websites purporting to be young children, aged from about 10 to 16. Using these false profiles, the users chatted with actual children and lured the minor victims to other websites to engage in private chats. Once in a private chat room, users then persuaded child victims to engage in sexually explicit activity. Unbeknownst to the victims, when they engaged in sexually explicit activity, they were secretly recorded, and those videos were shared with other users on Soto’s website.
In addition to the prison term, Judge Wolfson sentenced Soto to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Branchburg Township Police Department, under the direction of Chief David Young, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark