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Thursday 30 March 2017
Kenner Man Sentenced for Conspiracy to Commit Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOHN PAUL PIERRE, age 29, of Kenner, was sentenced today after previously pleading guilty to conspiracy to commit access device fraud.
U.S. District Judge Mary Ann Vial Lemmon sentenced PIERRE to 9 months imprisonment followed by 3 years of supervised release. PIERRE was also ordered to pay restitution in the amount ofU $7,460.06.
According to court documents, PIERRE’s co-conspirator, RYAN CLAVERIE, worked as a waiter in a restaurant in Metairie. During the course of his employment, CLAVERIE routinely handled the credit and debit cards of restaurant patrons. CLAVERIE had a credit card “skimmer” that extracted customer account information from the magnetic strip on the back of a credit card and a bank debit card and logged it for later download to a computer.
PIERRE and his co-conspirators then used the captured electronic account information contained on the magnetic strips of these valid cards in order to manufacture and produce counterfeit credit cards. The counterfeit credit cards where used to fraudulently obtain things of value for their own personal gain at several retail stores and establishments in the metropolitan New Orleans area.
CLAVERIE pled guilty to conspiracy to commit access device fraud. U.S. District Judge Jane Triche Milazzo set sentencing on May 4, 2017.
Acting U.S. Attorney Evans praised the work of the United States Secret Service, New Orleans Field Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office and the Kenner Police Department for investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen was in charge of the prosecution.
KC Man Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been indicted by a federal grand jury on charges related to tax evasion.
Steven Matthews, 48, of Kansas City, was charged in a five-count indictment returned under seal by a federal grand jury on Wednesday, March 29, 2017. That indictment was unsealed and made public upon Matthews’s arrest this morning and initial court appearance this afternoon.
The federal indictment charges Matthews with one count of tax evasion, one count of corruptly impeding the due administration of the internal revenue laws and three counts of failure to file tax returns.
From May 2011 to May 2015, the indictment says, Matthews attempted to evade payment of the Trust Fund Recovery Penalty assessed against him personally for withholding that wasn’t paid for the quarters ending December 2002 through June 2003 for the trust fund taxes of Winntech Digital Systems (where he served as the Chief Financial Officer). Matthews allegedly also attempted to evade payment of income tax owed by him for 2008.
According to the indictment, Matthews used corporate funds to pay his personal expenses, created a false deed of trust for a condominium he owned, placed money into an attorney trust account that was then used to pay his personal expenses, established a corporation (SLM Consultants, LLC) using his mother’s Social Security number and listing his mother as the sole member, and dealt in cash from 2011 through 2015, all in an effort to evade payment of taxes and to impede the due administration of the internal revenue laws.
The indictment also alleges that Matthews failed to file federal income tax returns on income earned during 2012, 2014 and 2015.
Larson cautioned that the charges contained in this indictment 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.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Justice Department Requires Divestiture of Morpho’s Explosive Trace Detection Business Before Smiths AcquisitionRead the Press Release
The Department of Justice announced today that it will require Smiths Group plc to divest Morpho Detection LLC and Morpho Detection International LLC’s global explosive trace detection (ETD) business in order for Smiths to proceed with its proposed $710 million acquisition of Morpho from Safran S.A.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The acquisition, as originally proposed, would have eliminated one of only three suppliers of desktop explosive trace detection devices in the United States, and these devices play a critical role in ensuring the safe transport of passengers and cargo at our nation’s airports,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that the Transportation Security Administration and other desktop explosive trace detection purchasers continue to enjoy the benefits of vigorous competition when they purchase these vital security screening products.”
The European Commission previously announced that in order to address its competitive concerns with the acquisition, it also will require Smiths to divest Morpho’s global ETD business. The department’s Antitrust Division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies.
According to the department’s complaint, Smiths and Morpho are two of the leading providers of desktop ETD devices for both air passenger travel and air cargo screening at U.S. airports. Desktop ETD devices detect trace amounts of explosive residue or narcotics on hands, belongings, and cargo from a tiny sample swabbed from the object and placed inside the detector. The complaint alleges that competition between Smiths and Morpho has resulted in lower prices, better service, and more innovative desktop ETD devices.
The proposed divestiture will remedy the loss of this competition. Under the terms of the proposed settlement, Smiths must divest Morpho’s global ETD business to a buyer approved by the United States. The department believes that the divestiture of Morpho’s global ETD business, which also includes handheld and portal ETD devices, was necessary to ensure that the buyer of Morpho’s global ETD business would be a viable competitor in the provision of desktop ETD devices.
Smiths is a London-based public limited company that provides products used in an array of industries. Smith’s wholly-owned U.S. subsidiary, Smiths Detection U.S. Inc. (Smiths Detection), sells a wide range of threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Smiths Detection, which is headquartered in Edgewood, Maryland, had approximately $730 million in annual revenues in 2015.
Safran is an aerospace and defense company based in Paris. Morpho, a division of Safran, is headquartered in Newark, California. Morpho sells threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Morpho had approximately $325 million in annual revenues in 2015, about $65 million of which were from ETD product sales.
As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Smiths CIS Smiths Complaint Smiths Explanation Smiths HSSO with PFJJury Convicts Pharr Man in Absentia for Hostage Taking ConspiracyRead the Press Release
McALLEN, Texas – A 20-year-old Pharr man has been convicted of both conspiracy to commit hostage taking and conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Abe Martinez. The federal jury sitting in McAllen convicted Luis Gerardo Betancourt in absentia following a five-day trial and less than three hours of deliberation.
Betancourt was present upon the jury’s selection, but failed to appear for trial and presentation of the evidence. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the United States Marshals Service in McAllen, Texas at (956) 618-8025.
The investigation began Dec. 4, 2015, when authorities learned of people in other states being forced to pay for the release of family members being held hostage at an undetermined location. Testimony at trial revealed that an individual had paid approximately $17,000 for such release. The jury heard that some family members received threats such as to cut off body parts and kill the hostages, one of whom was an eight-year-old victim, if monetary demands were not met. Further investigation revealed Betancourt’s involvement in the conspiracy. The jury heard that he was responsible for recruiting and transporting co-conspirators as well as the receipt of money sent by the victims’ family members.
The hostages held during the course of the conspiracy were eventually released Dec. 8, 2015.
U.S. District Judge Randy Crane presided over the trial and has set sentencing for June 8, 2017. At that time, Betancourt faces up to life in federal prison for conspiracy to commit hostage taking and up to 10 years for the alien transportation conspiracy.
The FBI Safe Streets Task Force conducted the investigation with assistance from Border Patrol, Customs and Border Protection, police departments in Pharr and Robstown Police Department and the Orange County, Florida, Sheriff’s Office. Assistant U.S. Attorneys David A. Lindenmuth and Roberto Lopez Jr. are prosecuting the case.
Jicarilla Apache Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Audriana Veneno, 23, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pled guilty today in federal court in Albuquerque, N.M., to a child abuse charge.
Veneno was arrested in March 2015, on an indictment charging her with assaulting the victim, a child under the age of 16 years. The indictment alleged that Veneno committed the crime on Nov. 6, 2014, on the Jicarilla Apache Indian Reservation in Rio Arriba County, N.M.
During today’s proceedings, Veneno pled guilty to an information charging her with child abuse. In entering the guilty plea, Veneno admitted that on Nov. 6, 2014, she intentionally and negligently permitted the victim, who was under the age of 18 years, to be placed in a situation that endangered the victim’s life or health.
At sentencing, Veneno faces a maximum penalty of three years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. Assistant U.S. Attorney Raquel Ruiz-Velez is prosecuting the case.
Jacksonville Man Sentenced to More Than 7 Years for Receiving Child Sex Abuse Videos via the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Richard Daniel Lord (58, Jacksonville) to seven years and three months in federal prison for receiving sexual abuse videos of child over the Internet. He was also ordered to serve a life term of supervision and to register as a sex offender upon his release from prison.
According to court documents, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s Jacksonville residence, while he was at home. During an interview with agents, Lord admitted to using his cellphones to search for, download, and view child pornography; that he was most interested in images and videos of children between the ages of 10-12 years old; and that he searched for child pornography “constantly” and could not control himself. A forensic examination of Lord’s cellphones revealed six videos that he had downloaded depicting prepubescent children being sexually abused.
This case was investigated by the Columbia County Sheriff’s Office, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Individual Sentenced to 12 Years in Prison for Drug Trafficking and Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico– Yesterday, defendant José Centeno-González was sentenced by Honorable Judge Francisco Besosa to 12 years of imprisonment and 3 years of Supervised Release, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
José Centeno-González was arrested by the Police of Puerto Rico on May 6, 2015 while driving a Toyota Tundra. A search warrant was obtained for the Toyota Tundra and during the execution of the search police officers discovered a firearm, a Glock .40, 84 rounds of ammunition, and 113 grams of crack-cocaine inside a hidden compartment. At the time of Centeno’s arrest, he was on supervised release for a priory felony firearms offense. Following a jury trial, on September 21, 2016, Centeno was convicted of possessing a firearm after having been convicted of a felony.
Yesterday, March 29, 2017, during the sentencing hearing the Court found by a preponderance of the evidence that Centeno possessed with intent to distribute 113 grams of crack-cocaine and that he possessed the firearm in furtherance of this offense. Consequently, Centeno was sentenced to the statutory maximum term of imprisonment of 120 months followed by a three-year term of supervised release. In addition, the Court revoked Centeno’s supervision for having engaged in new criminal conduct and sentenced him to serve a consecutive 24-month term of imprisonment for a total sentence of 12 years.
The case was prosecuted by Assistant United States Attorneys Alexander Alum and Marie Christine Amy from the U.S. Attorney’s Violent Crimes Unit.
Husband and Wife Defendants Convicted of Mortgage Fraud and Medicaid FraudRead the Press Release
Earlier this afternoon, defendants Joseph Atias and Sofia Atias were convicted of bank fraud, conspiracy to commit bank fraud and Medicaid fraud by a jury in federal court in Central Islip. The fraud was designed to, and did, defraud Bank of America of over half a million dollars. The defendants face penalties of up to 35 years’ imprisonment, the forfeiture of $560,000, and restitution of over $700,000. After the verdicts, Joseph Atias was remanded to custody pending sentencing by United States District Judge Denis R. Hurley.
The convictions were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Through a web of lies and false documentation, these defendants stole more than half a million dollars from Bank of America and from Medicaid, which they used to line their own pockets,” stated Acting United States Attorney Rohde. “The fine work of the FBI to bring these defendants to account for these crimes sends a clear message to anyone who contemplates engaging in mortgage fraud or Medicaid fraud: Do not even attempt it, because you will be caught and held responsible.” Ms. Rohde extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The defendants were convicted of bank fraud and conspiracy to commit bank fraud in connection with the sale of property adjacent to Sacred Heart Academy for $925,000, after the defendants had sold the property in a short sale for $480,000 to discharge their mortgage debt. In the short sale process, the defendants and a co-conspirator, an attorney who pleaded guilty and testified against the defendants at trial, concealed the offer from Sacred Heart Academy from the Bank of America. In the short sale process, the defendants submitted a fraudulent contract of sale and other documents with false statements to Bank of America, and obtained approval of a short sale, wherein the proceeds from the sale of the property were less than the total amount of the mortgages on the property. The defendants submitted these documents to Bank of America, falsely representing that there were no funds to pay the mortgages when, in fact, the defendants knew that Sacred Heart Academy, a high school in Hempstead, New York, had offered to buy the property for an amount sufficient to cover the mortgages on the property. To accomplish the fraudulent short sale scheme, the defendants used a relative as a straw buyer of the property to create the appearance of an arms-length sale. Shortly after that sale, the defendant’s straw buyer sold the property to Sacred Heart Academy for approximately half a million dollars in profit.
Regarding the Medicaid fraud count conviction, the jury found the defendants guilty of theft of government funds in connection with their receipt of hundreds of thousands of dollars in Medicaid funds from 2009-2015. The defendants concealed their self-employment from Medicaid, as well as their available cash resources, including trust fund monies, an inheritance and the $465,000 in proceeds from the above bank fraud, in order to continue on Medicaid, which paid the defendants approximately $2,500 per month.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr. of the Office’s Long Island Criminal Division.
The Defendants:
Name: SOFIA ATIAS
Age: 47 years oldResidence: Great Neck, NY
Name: JOSEPH ATIAS
Age: 52 years oldResidence: Great Neck, NY
Home Health Agency Owner Pleads Guilty to Conspiring in $17 Million Medicaid Fraud SchemeRead the Press Release
The owner and operator of five Houston-area home health agencies pleaded guilty to conspiring to defraud Medicare and the State of Texas’s Medicaid-funded Home and Community-Based Service and Primary Home Care programs of more than $17 million. He also pleaded guilty to conspiring to launder money. These health care programs provided qualified individuals with in-home attendant and community-based services that are known commonly as “provider attendant services” (PAS). This case marks the largest PAS fraud case charged in Texas history.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney of the Southern District of Texas Abe Martinez, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation’s (CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Godwin Oriakhi, 61, of Houston, pleaded guilty before U.S. District Judge Sim Lake of the Southern District of Texas to two counts of conspiracy to commit health care fraud and one count of money laundering. He is scheduled to be sentenced by Judge Lake on June 22, 2017.
According to his plea, Godwin Oriakhi admitted that he, his daughter and co-defendant Idia Oriakhi, and other members of his family owned and operated: Aabraham Blessings LLC, Baptist Home Care Providers Inc., Community Wide Home Health Inc., Four Seasons Home Healthcare Inc. and Kis Med Concepts Inc., all of which were home health agencies in the Houston area. Godwin Oriakhi admitted that he, along with his daughter and co-conspirators, obtained patients for his home health agencies by paying illegal kickback payments to patient recruiters and his office employees for hundreds of patient referrals. Oriakhi also admitted that he, along with his daughter and co-conspirators, paid Medicare and Medicaid patients by cash, check, Western Union and Moneygram for receiving services from his family’s home health agencies in exchange for the ability to use their Medicare and Medicaid numbers to bill the programs for home healthcare and PAS services. Oriakhi admitted that he, his daughter and their co-conspirators also directly paid some of these patients for recruiting and referring other Medicare and Medicaid patients to his agencies.
Additionally, Oriakhi admitted that he, his daughter and other co-conspirators paid physicians illegal kickbacks payments, which Oriakhi and his co-conspirators called “copayments,” for referring and certifying Medicare and Medicaid patients for home health and PAS services.
Oriakhi further admitted that each time he submitted a claim predicated on an illegal kickback payment he knew he was submitting a fraudulent claim to Medicare or Medicaid based on his false representations that the claim and the underlying transaction complied with the federal Anti-Kickback Statute and other state and federal laws. Oriakhi further admitted that he knew that Medicare and Medicaid would not otherwise pay for the fraudulent claims, according to his plea.
In addition to the home healthcare and PAS services fraud scheme, Oriakhi admitted that he and his co-conspirators used the money fraudulently obtained from Medicare and Medicaid to pay illegal kickback payments to patient recruiters, employees, physicians and patients to promote the Medicare home health and Medicaid PAS fraud conspiracies, and ensure their successful continuation.
In total, Oriakhi admitted that he and his family submitted approximately $17,212,051 in fraudulent home healthcare and PAS claims to Medicare and Medicaid and received approximately $16,198,600 on those claims.
Oriakhi is the last member of the charged conspirators to plead guilty. Oriakhi’s co-defendants: Idia Oriakhi, his daughter; Charles Esechie, a registered nurse; and Jermaine Doleman, a patient recruiter, pleaded guilty and are awaiting sentencing.
The FBI, HHS-OIG, IRS-CI and MFCU are investigating the case, and brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Aleza S. Remis and William S.W. Chang of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Groton Woman Pleads Guilty to Conspiracy to Commit Sex Trafficking of a Minor, Distributing Heroin that Led to Her OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADELE BOUTHILLIER, 43, of Groton, pleaded guilty today in New Haven federal court to conspiracy to commit sex trafficking of a minor and heroin distribution offenses.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that Ramon Gomez, also known as “B.I.,” brought the victim to the motel to engage in prostitution, and the victim stayed in a room there with BOUTHILLIER. Both Gomez and BOUTHILLIER, who was engaged in prostitution and worked with Gomez, knew that the victim was under the age of 18. On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from Gomez and gave it to the victim, who snorted it. At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive with vomit coming out of her mouth. BOUTHILLIER waited approximately four hours before calling 911.
BOUTHILLIER pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, an offense that carries a maximum term of imprisonment of life, and one count of possession with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years.
BOUTHILLIER is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on June 22, 2017. BOUTHILLIER, who was released on bond, was ordered detained at the conclusion of today’s court proceeding.
Gomez pleaded guilty on November 17, 2016, and awaits sentencing. He has been detained since his arrest on June 1, 2016.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The investigation is being conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Great Bend, Pennsylvania Woman Charged in Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joann Palmatier, age 54, of Great Bend, Pennsylvania, was charged by felony criminal information with mail fraud.
According to United States Attorney Bruce D. Brandler, the information alleges that Palmatier was employed as a bookkeeper for a custom machine shop in Great Bend, responsible for managing the company’s finances, including paying vendor bills, taxes and payroll. Palmatier is accused of stealing approximately $95,000 of her employer’s money and, among other things, paying her own bills by mailing company checks to her creditors.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Palmatier intends to plead guilty to the charges when she appears in federal court for her arraignment.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Gorham Woman Pleads Guilty to Federal Program Fraud ChargeRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Jamie Hussey, 35, of Gorham, Maine, pleaded guilty in U.S. District Court to committing federal program fraud.
Court records show that between February 2014 and September 2016, the defendant embezzled over $91,577 from the South Portland Housing Authority (SPHA), an agency that that administers public housing units and that receives federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”). The defendant was employed as the SPHA Resident Services Coordinator for the Family Self-Sufficiency Program (FSS), a program that promotes the development of local strategies to coordinate public and private resources that help public housing tenants obtain employment that will enable participating families to achieve economic independence. Under this program, a participant can earn monetary credits that are placed in an escrow account based upon the participant meeting certain goals. Upon successfully completing a FSS contract, a participant may claim funds in their escrow account if no family member is receiving welfare assistance. The defendant caused 48 checks to be issued in the names of FSS program participants and deposited into her personal bank account. None of the participants ever requested these checks, nor received any proceeds of the checks.
Hussey faces up to 10 years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by HUD-Office of the Inspector General and the South Portland Police Department.
Fugitive Wanted on Federal Child Exploitation Charges Captured in DenverRead the Press Release
BOSTON – A federal defendant, who fled in 2015 while on pre-trial release, was captured yesterday in Denver, Colo.
In May 2015, Scot Letourneau, 44, formerly of Quincy and Maine, was arrested and charged in U.S. District Court in Massachusetts with receipt and possession of child pornography. Although the government sought Letourneau’s pretrial detention on the grounds of his prior convictions, the Court released him on Aug. 5, 2015, on an electronic bracelet and home confinement in Maine. On Nov. 3, 2015, Letourneau fled and a warrant for his arrest was immediately issued. Letourneau was apprehended in Denver yesterday and was detained following an appearance in U.S. District Court in Denver this afternoon. He will appear in federal court in Massachusetts at a later date.
As alleged in the original charging documents, in early 2015, law enforcement officers learned that an individual was trading images of child pornography on Kik Messenger, an instant messaging app, with an individual in Connecticut. After further investigation, it was determined that an Internet IP address used in transmitting the images was associated with Letourneau. On May 21, 2015, a search warrant was executed at Letourneau’s home, and a preliminary review of his cellphone revealed that he exchanged images of child pornography with others. Investigators also learned that Letourneau had previously been convicted of distribution of child pornography in 2002 in Cheshire County Superior Court.
On June 18, 2015, a two-count federal indictment was returned against Letourneau charging him with distribution and possession of child pornography.
In light of Letourneau’s prior conviction, the charge of distribution of child pornography provides for a mandatory minimum sentence of 15 years and no greater than 40 years in prison, and the charge of possession of child pornography provides for a mandatory minimum term of 10 years and no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; U.S. Marshal John Gibbons for the District of Massachusetts; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Kenneth Deal, Acting U.S. Marshal for the District of Colorado, made the announcement today. Assistance was also provided by the Adams County (Colo.) Sheriff’s Department; Connecticut State Police; Quincy Police Department; and U.S. Coast Guard. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Franklin County Man Charged with Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Michael Cobb, age 47, of Waynesboro, Pennsylvania, was indicted on March 29, 2017, by a federal grand jury with unlawful possession of a firearm and three drug trafficking offenses.
According to United States Attorney Bruce D. Brandler, Cobb was allegedly in possession of firearms illegally, and possessed heroin, crack cocaine, and powder cocaine with intent to distribute. The indictment also alleges Cobb was previously convicted of a felony offense, making it illegal for him to possess a firearm.
The charges stem from an investigation conducted by the Waynesboro Police Department with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the unlawful possession of firearm charge is life in prison, a term of supervised release following imprisonment, and a fine. The maximum penalty for each of the drug trafficking charges is 30 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Four Arrested for Heroin TraffickingRead the Press Release
BOSTON – Four men were arrested this morning on charges of heroin distribution and possession with intent to distribute heroin.
Richard R. Fernandez, 26, believed to reside in Lawrence; Jose C. Torres, 27, believed to reside in Haverhill; Angel G. Rivera Serrano, 36, believed to reside in Haverhill; and Luis Humberto Arias Lara, 41, believed to reside in Lowell, were charged with heroin distribution and possession with intent to distribute heroin.
According to court documents, the men distributed heroin in and around Waltham over the course of several months. Each of the defendants allegedly sold drugs to an undercover investigator. Court-authorized searches were conducted this morning at two residences and two alleged stash houses where investigators seized approximately $200,000 in cash and approximately 1.5 kilograms of narcotics.
The charges of distribution and possession with intent to distribute heroin each provide for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million, or twice the value of the funds involved, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal of the District of Massachusetts; and members of the Suburban Middlesex County Drug Task Force, which is composed of the Waltham, Watertown, Newton, Arlington, Belmont, Weston and Lexington Police Departments, made the announcement today. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The information contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fort Dodge Man Receives Prison Term for Distributing Methamphetamine and Possessing a FirearmRead the Press Release
A man who distributed methamphetamine and illegally possessed a firearm was sentenced March 27, 2017, to 7 years in federal prison.
Jermiah Preston, age 34, from Fort Dodge, Iowa, received the prison term after a November 7, 2016, guilty plea to one count of felon in possession of a firearm, in Case No. CR15-3048-LTS and one count of distribution of a controlled substance, in Case No. CR16-3028-LTS.
At the guilty plea, Preston admitted that in September of 2015, he knowingly and intentionally aided and abetted in the distribution of methamphetamine in the Fort Dodge area. On November 18, 2015, while attempting to serve an arrest warrant on Preston at a hotel in Fort Dodge, law enforcement observed Preston throw a handgun out the window of the room he was occupying. Shortly thereafter, Preston attempted to climb out of the window and was confronted by law enforcement. Preston was a convicted felon, and was in the possession of the handgun illegally.
Preston was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Preston was sentenced to 84 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Preston is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn Wehde and Special Assistant United States Attorney Ajay Alexander and investigated by the Fort Dodge Police Department, the Iowa Division of Narcotics Enforcement (DNE), and the Bureau of Alcohol, Tobacco and Firearms (ATF).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 15-CR-03048 and 16-CR-03028. Follow us on Twitter @USAO_NDIA.
Former Orange County Resident Who Fled United States to Avoid Prosecution in Healthcare Fraud Case Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A medical doctor who fled the United States nearly 15 years ago and faked his own death to avoid prosecution in a healthcare fraud case was sentenced late this afternoon to 29 months in federal prison for fleeing justice.
Tigran Svadjian, 58, a naturalized U.S. citizen originally from Armenia who was residing in Newport Beach prior to fleeing the country in September 2002, was sentenced late this afternoon by United States District Judge Michael W. Fitzgerald.
Svadjian pleaded guilty in November to one count of unlawful flight to avoid prosecution.
In a case filed in 2002 in United States District Court in Sacramento, Svadjian, who operated medical clinics in Los Angeles and Fresno, had agreed to plead guilty in a $2.4 million scheme to defraud Medi-Cal by submitting bills for tests that had not been performed, in many cases because the “patients” were dead. After being ordered to appear in federal court in the Eastern District of California for an arraignment in that case, he fled to Russia, leaving behind his wife and son.
On October 24, 2002, the United States Embassy in Moscow received notification that Svadjian had died of pneumonia and that his body had been cremated. Relying on this false information, the Embassy then issued a report documenting the death, and Svadjian’s defense counsel submitted that report to federal prosecutors.
When he pleaded guilty, Svadjian admitted that he paid a Russian police officer in 2002 to submit an official report about his death to the United States Embassy. Soon after, Svadjian obtained a fraudulent Russian passport in a different name and relocated to Hurghada, Egypt, where he occasionally worked as a scuba instructor.
In January 2013, after lengthy and unsuccessful attempts to locate Svadjian or to obtain further confirmation of his death, prosecutors in the Eastern District of California dismissed the healthcare fraud case.
Svadjian was taken into custody by Egyptian authorities on August 1 – nearly 14 years after he fled the United States. Svadjian had been deported to Egypt by Ukrainian authorities after they determined he was travelling on a fraudulent Lithuanian passport. Egyptian authorities discovered in his residence an old United States passport with his true name.
Svadjian “did not simply flee from prosecution,” prosecutors wrote in a sentencing memorandum filed with the court. “Instead, defendant planned and implemented a sophisticated, fraudulent scheme that involved bribing foreign officials, using false statements to mislead U.S. State Department officials into creating a false death certificate, and submitting that false certificate to federal prosecutors. Defendant then hid from U.S. authorities through the use of false identities for approximately 15 years. He abandoned his wife, son, and parents, and started a whole new life without them because he did not want to spend time in prison.”
This case was investigated by the Federal Bureau of Investigation.
This case was being prosecuted by Assistant United States Attorney Bryant Y. Yang of the General Crimes Section.
Former NMMI Cadet from California Sentenced to Ten Years for Federal Child Pornography Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas announced that Joshua Adam Williams, 21, of Lakeside, Calif., was sentenced late yesterday afternoon in federal court in Las Cruces, N.M. Williams will serve 120 months in federal prison followed by 15 years of supervised release for his conviction on a possession of child pornography charge. Williams will be required to register as a sex offender after completing his prison sentence. He was also ordered to pay $210,010.00 in restitution to one of the victims of his criminal conduct.
Williams was arrested on Nov. 4, 2015, in Lakeside, Calif., on a criminal complaint alleging child pornography charges that was filed on Oct. 27, 2015, in federal court in Las Cruces. He was transferred from California to Las Cruces on Dec. 11, 2015, to face the charges against him.
The criminal complaint charged Williams with distribution, possession and attempted production of videos and images depicting minors engaged in sexually explicit conduct. It alleged that Williams committed these crimes in May 2015 in Roswell, N.M., when he was enrolled as a cadet at the New Mexico Military Institute (NMMI).
Court filings reveal that the investigation into Williams began in Aug. 2014, when a father and minor child disclosed to the FBI that the child had been self-producing child pornography and sharing it with others through an internet chat room. The father surrendered the child’s cellular phone to the FBI and the FBI found it to contain alleged child pornography that had been shared with a specific account identified by a particular username. After investigation revealed that Williams, who was then a NMMI cadet, was the subscriber to the account, search warrants were obtained for Williams’ computers, cellphone and other digital media. Forensic examinations of Williams’ computer and cellphone revealed that they contained videos and images consistent with child pornography.
On April 20, 2016, Williams pled guilty to a felony information charging him with possession of child pornography. In his plea agreement, Williams admitted that on May 5, 2015, he possessed a computer and cellular telephone that contained videos and images of child pornography. The plea agreement states that Williams’ computer contained a video of a toddler being sexually molested by an adult and his cellular phone contained approximately 100 videos of minors engaged in sexually explicit conduct.
This case was investigated by the Roswell office of the FBI, New Mexico State Police, New Mexico Internet Crimes Against Children (ICAC) Task Force and the New Mexico Regional Computer Forensic Laboratory with assistance from the FBI in San Diego, Calif., and the U.S. Attorney’s Office for the Southern District of California.
Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Federal Corrections Officer Arraigned on Bribery ChargesRead the Press Release
PLATTSBURGH, NEW YORK – Carlos Ochoa, age 31, of Puerto Rico, was arraigned today on charges that he accepted a bribe from an inmate while he was a corrections officer at Federal Correctional Institution (FCI) Ray Brook.
The announcement was made by United States Attorney Richard S. Hartunian; Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and Ronald G. Gardella, Special Agent in Charge of the New York Field Office of the Office of the Inspector General of the U.S. Department of Justice.
Ochoa is charged with conspiracy to commit bribery, bribery by a public official, and providing contraband to a federal inmate.
According to the indictment, Ochoa agreed to accept money in exchange for smuggling an iPhone to Richard Coleman, an inmate at FCI Ray Brook. Ochoa then successfully smuggled the iPhone into the facility and provided it to Coleman, who used the phone to communicate with people outside of the facility. The phone was discovered during a cell search on March 8, 2013.
In addition to Ochoa, the indictment charges Coleman with conspiracy to commit bribery, bribery of a public official, and possession of contraband by a federal inmate.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
If convicted of all charges, Ochoa faces up to 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Ochoa appeared today before United States Magistrate Judge Gary L. Favro, who ordered Ochoa detained pending trial before Senior United States Judge Frederick J. Scullin, Jr. Ochoa was already in custody on federal charges in Puerto Rico. He is accused there of accepting a bribe as a corrections officer at the Metropolitan Detention Center in Guaynabo, Puerto Rico, as well as supplying a firearm and ammunition to a prohibited person, and attempting to aid and abet possession with intent to distribute a controlled substance.
This case is being investigated by the FBI and the U.S. Department of Justice Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
Former El Paso-Based Company Employee Pleads Guilty to Computer IntrusionRead the Press Release
In El Paso, 41-year-old Joe Vito Venzor faces up to ten years in federal prison after admitting today to illegally accessing his former employer’s computer system and shutting it down announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing before Senior United States District Judge David Briones, Venzor pleaded guilty to one count of transmission of a program to cause damage to a computer. By pleading guilty, Venzor admitted that on September 1, 2016, after being terminated from his position at the company’s help desk, he logged onto the company’s network through an administrator account and shut down the company’s email server and application server while deleting systems files essential to restoring computer operations.
Because of the intrusion, 300 employees in the production and shipping factory were unable to work for nearly three hours before the decision was made to send them home for the rest of the shift. The distribution center was not able to ship any of their products and customers could not place orders online. The IT Managing Director also had to hire a third party IT staff to assist with setting up a new application server for the company. The company continued to suffer direct and indirect losses because of the intrusion into its computer server in the ensuing days and weeks, as they had to reconstruct files, and fulfill production and customer services issues.
Venzor remains on bond pending sentencing scheduled for 9:30am on June 6, 2017, before Judge Briones in El Paso. In addition to the prison term, Venzor is also subject to a fine of up to $250,000 and restitution to his former employer, which has yet to be determined.
The Federal Bureau of Investigation investigated this case. Assistant United States Attorneys Greg McDonald and Rifian Newaz are prosecuting this case on behalf of the Government.
Former Eagle Pass City Manager Admits Lying to FBI in Connection with Investigation into “Pay-To-Play” Bribery Scheme Involving Maverick County ContractsRead the Press Release
This afternoon, 68-year-old former Eagle Pass City Manager Hector Chavez, Sr., admitted to lying to FBI agents during their investigation into a “pay-to-play” scheme involving Maverick County contracts, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Chavez pleaded guilty to one count of making a false statement to a federal agent. By pleading guilty, Chavez admitted that on June 25, 2015, he knowingly gave false statements to agents regarding his response to a federal grand jury subpoena, his work on Maverick County contracts, and a personal consulting services contract with an engineering firm.
According to court records, on May 4, 2015, a federal grand jury subpoena was issued to Chace Management, a company owned by the defendant, for all records regarding any subcontracting work done for an engineering firm. Chavez, admittedly, lied to authorities about creating a fraudulent, hand-written personal services agreement he provided in response to the subpoena. Chavez also claimed to have received approximately $24,000 for services rendered to the engineering firm when in fact, the work listed in the agreement never took place.
Chavez, who remains on bond pending sentencing, faces up to five years in federal prison. Sentencing has yet to be scheduled.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigations Division together with the Customs and Border Protection Office of Internal Affairs. Assistant United States Attorneys Katherine Griffin, Daniel Lee and Todd Keagle are prosecuting this case on behalf of the Government.
Former Director of Oakland Charter Schools Charged in Grant Application Fraud, Money Laundering SchemeRead the Press Release
SAN FRANCISCO – Benford Chavis, the former director of three Oakland charter schools, collectively known as the American Indian Model Schools, was charged with mail fraud and money laundering in connection with the schools’ applications for federal grant funds, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. Chavis was apprehended this morning in North Carolina and has been ordered to appear in Oakland to face the charges in the Northern District of California.
According to the indictment, unsealed today, from early 2006 through May of 2012, Chavis, 59, from Lumberton, North Carolina, and others devised and implemented a scheme to defraud the California School Finance Authority by causing three charter schools to request federally funded grants in violation of federal conflict of interest regulations. At times between 2000 and 2012, Chavis served as the director and in various additional capacities for three Oakland charter schools – the American Indian Public Charter School, the American Indian Public High School II, and the American Indian Public High School – as well as the schools’ umbrella organization, the American Indian Model Schools (AIMS). The indictment alleges Chavis caused the schools to apply for more than $2.5 million in competitive federal grant funds for the purpose of paying the costs of leasing facilities that Chavis owned or controlled through his companies American Delivery Systems and Lumbee Properties, LLC. Chavis allegedly concealed his interest in the facilities in the grant applications. The indictment further alleges that the schools obtained more than $1.1 million in federal grants as a result of this fraud, and that Chavis used fraud proceeds to promote the fraud scheme as to each school. In sum, Chavis is charged with three counts of mail fraud, in violation of 18 U.S.C. § 1341, and three counts of promotional money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the maximum term of imprisonment for mail fraud is 20 years and the maximum term of imprisonment for money laundering is 10 years for each count. Additional periods of supervised release, fines, and special assessments also could be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Chavis was released on a personal recognizance bond and was ordered to make his initial appearance in the Oakland Courthouse of the Northern District of California before the Honorable Haywood S. Gilliam, U.S. District Judge, on or before April 14, 2017.
Assistant U.S. Attorney Hartley West is prosecuting the case with the assistance of Claudia Hyslop, Maryam Beros, and Patricia Mahoney. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigations.
Former Bank Manager Indicted for Bank FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Karen E. Ramm, age 50, of Camp Hill, Pennsylvania, was indicted on March 29, 2017, by a federal grand jury for bank fraud.
According to United States Attorney Bruce D. Brandler, Ramm was a branch manager and loan officer at Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank) between 2000 and 2010. The indictment alleges that between 2001 and 2007, Ramm defrauded Commerce Bank by using her position to fraudulently originate approximately seven loans totaling $379,900 for a customer she knew personally. It is alleged that each loan contained false information regarding the borrower and it is also alleged that Ramm converted a portion of the loan proceeds to her own benefit.
The case was investigated by the Federal Bureau of Investigation with the assistance of the financial institution’s security and investigations staff. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the bank fraud charge is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Baltimore Man Sentenced to Seven Years in Federal Prison for 2011 Post Office RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jeffrey Jackson, age 51, formerly of Baltimore, Maryland today to seven years in prison, followed by five years of supervised release, for the armed robbery of a post office.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division.
“Although these types of crimes are rare, our employees and customers can rest assured that Postal Inspectors will always continue to pursue justice for criminals who would jeopardize their safety,” said Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division. He continued, “We extend sincere gratitude to our law enforcement partners who assisted in bringing this investigation to a successful resolution.”
According to his plea agreement, on August 3, 2011, Jackson and another man robbed the Perry Point U.S. Post Office in Cecil County, Maryland at gunpoint. One robber vaulted the counter and ordered the Postmaster to open the cash drawer. After taking cash from the drawer, both robbers forced the Postmaster to open the safe, and the robbers removed additional cash and money orders. The Postmaster was forced into a utility closet and instructed to stay there for five minutes or the robbers would kill the Postmaster. Postal inspectors determined that in addition to cash, approximately 60 blank postal money orders were stolen.
Many of the postal money orders were negotiated at locations in and around Baltimore. Postal Inspectors interviewed several individuals who negotiated the stolen and altered postal money orders. One of those individuals admitted receiving the stolen postal money orders from “Jeff,” whom the individual identified in a photograph as Jeffrey Jackson. Jackson provided that individual with details about the robbery that could only have been known to someone that was at the robbery.
An eyewitness to the robbery subsequently identified Jackson in a photo lineup. That person had come in to the Post Office during the robbery. There was no one behind the counter. A minute later, Jackson came out of a back room and told the witness to come back later because the Postmaster was “too busy to help right now.” The eyewitness left and immediately went to the Perry Point Veterans Administration (VA) Police Department to report the suspicious activity. Postal Inspectors and Perry Point VA Police responded to the robbery.
After Jackson’s arrest on unrelated state burglary charges, Jackson contacted police to say he had information about the postal robbery at Perry Point. Jackson was interviewed by Postal Inspectors and provided non-public information about the post office robbery that could only have been known by the robbers. As a result of the robbery, the loss to the USPS was approximately $19,700 in cash and negotiated stolen postal money orders.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked the VA Office of Inspector General, Perry Point VA Police Department, Perryville Police Department, and Maryland State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Paul E. Budlow and Rachel Miller Yasser, who prosecuted the case.
Fishing Vessel Owner Convicted of Discharging Oily Waste into the Coastal Waters of the United States off Washington StateRead the Press Release
WASHINGTON – Bingham Fox, owner of the fishing vessel Native Sun, was convicted today in U.S. District Court in Seattle of discharging oily waste directly into coastal waters of the State of Washington, a felony violation of the Clean Water Act. The jury deliberated six hours following a five-day trial. U.S. District Judge Robert S. Lasnik scheduled sentencing for July 11, 2017.
According to court documents, Bingham Fox, and others associated with the Native Sun, repeatedly discharged oily wastes into the ocean using unapproved submersible pumps and hoses. According to evidence presented at trial, the Native Sun had multiple, long-term, mechanical problems that put substantial amounts of oil in its bilges. In addition, the vessel was leaky, so the bilges were constantly filling with a mixture of oil and seawater. Bingham Fox had at least one illegal pump installed on board and directed others to regularly dump oily waste from the bilges, even in port.
“This criminal conviction clearly shows that treating our oceans as a dump has serious consequences,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “Law-abiding vessel operators know the importance of compliance with our nation’s environmental laws, but those that flout those laws will face justice.”
“This case highlights the great collaborative efforts of Sector Puget Sound, Coast Guard Investigative Service and the Department of Justice, in holding those who pollute our waters accountable,” said Captain Linda A. Sturgis, Commander, Coast Guard Sector Puget Sound. “The results announced today are a prime example of the importance of the Coast Guard's marine environmental protection mission and the effectiveness of the Act to Prevent Pollution from Ships.”
Bingham Fox faces up to five years in prison and a criminal fine of up to $250,000 for this conviction. On March 17, 2017, his son Randall Fox pleaded guilty to conspiring with others to discharge oily wastes into the ocean when the Native Sun was offshore. Those acts violated the Act to Prevent Pollution from Ships (APPS), which specifically prohibits the discharge of machinery space bilge water, unless it has been properly treated, and meets rigorous oil pollution standards. APPS implements America’s obligations under an international treaty to control pollution by ocean-going vessels. On at least one occasion, a discharge under Randall Fox’s command left a large oily sheen in the wake of the Native Sun, which was video recorded by a crewmember, who reported the crime to authorities. Randall Fox faces a maximum of six years in prison for the APPS count and five years in prison for the conspiracy count. He also faces a criminal fine of up to $250,000 for each count. His sentencing is scheduled for June 16, 2017.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Fishing Vessel Owner Convicted of Discharging Oily Waste into the Coastal Waters of the United States Off Washington StateRead the Press Release
Bingham Fox, owner of the fishing vessel Native Sun, was convicted today in U.S. District Court in Seattle of discharging oily waste directly into coastal waters of the State of Washington, a felony violation of the Clean Water Act. The jury deliberated six hours following a five-day trial. U.S. District Judge Robert S. Lasnik scheduled sentencing for July 11, 2017.
According to court documents, Bingham Fox, and others associated with the Native Sun, repeatedly discharged oily wastes into the ocean using unapproved submersible pumps and hoses. According to evidence presented at trial, the Native Sun had multiple, long-term, mechanical problems that put substantial amounts of oil in its bilges. In addition, the vessel was leaky, so the bilges were constantly filling with a mixture of oil and seawater. Bingham Fox had at least one illegal pump installed on board and directed others to regularly dump oily waste from the bilges, even in port.
“This criminal conviction clearly shows that treating our oceans as a dump has serious consequences,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “Law-abiding vessel operators know the importance of compliance with our nation’s environmental laws, but those that flout those laws will face justice.”
“This case highlights the great collaborative efforts of Sector Puget Sound, Coast Guard Investigative Service and the Department of Justice, in holding those who pollute our waters accountable,” said Captain Linda A. Sturgis, Commander, Coast Guard Sector Puget Sound. “The results announced today are a prime example of the importance of the Coast Guard's marine environmental protection mission.”
Bingham Fox faces up to five years in prison and a criminal fine of up to $250,000 for this conviction. On March 17, 2017, his son Randall Fox pleaded guilty to conspiring with others to discharge oily wastes into the ocean when the Native Sun was offshore. Those acts violated the Act to Prevent Pollution from Ships (APPS), which specifically prohibits the discharge of machinery space bilge water, unless it has been properly treated, and meets rigorous oil pollution standards. APPS implements America’s obligations under an international treaty to control pollution by ocean-going vessels. On at least one occasion, a discharge under Randall Fox’s command left a large oily sheen in the wake of the Native Sun, which was video recorded by a crewmember, who reported the crime to authorities. Randall Fox faces a maximum of six years in prison for the APPS count and five years in prison for the conspiracy count. He also faces a criminal fine of up to $250,000 for each count. His sentencing is scheduled for June 16, 2017.
This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.
Federal Indictment Unsealed in Horry County Illegal Distribution of Oxycodone Conspiracy CaseRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Dennis Heilman, Jeffrey Heilman, Joyce Hendricks, and Becky Hendricks, all of Myrtle Beach, South Carolina, were arrested this week and appeared before a federal magistrate judge in Florence, South Carolina for an arraignment hearing.
All defendants are charged in an indictment with conspiring to possess with intent to distribute and to distribute oxycodone in violation of Title 21, United States Code, Section 846. Dennis Heilman faces several additional counts of possessing with intent to distribute and distributing oxycodone, which is a Schedule II controlled substance.
This case is being investigated by the Drug Enforcement Administration and the Fifteenth Circuit Drug Enforcement Unit, with the assistance of the Horry County Sheriff’s Office. Assistant United States Attorney Ben Garner of the Columbia office is assigned to the case.
U.S. Attorney Drake stated that all charges in this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Longs Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Lecephrus Pierce, age 24, of Longs, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute and distribution of crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Pierce faces a statutory, mandatory minimum penalty of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
North Carolina Man Indicted for Possessing a Gun After Being Convicted of a Felony. James Franklin Badgett, age 56, of Pilot Mountain, North Carolina, was charged in a one-count indictment with felon in possession of a firearm. Possession of a Firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Badgett could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Kingstree Man Indicted for Felon in Possession of a Firearm. Jamon Gerald Canty, age 33, of Kingstree, South Carolina, was charged in a one-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Canty could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ATF Horry County Task Force, and Myrtle Beach Police. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Timmonsville Man Indicted for Possessing a Gun After Being Convicted of a Felony. Jabari Durvall Sellers, age 36, of Timmonsville, South Carolina, was charged in a one-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). The maximum possible penalty Sellers could receive is a statutory, mandatory minimum of 15 years with a maximum sentence of life in prison. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Florence County Sheriff’s Office, and the Timmonsville Police Department. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
Myrtle Beach Man Indicted for Illegal Re-entry Into the United States. Eloy Altamirano-Diaz, age 36, of Myrtle Beach, South Carolina, was charged in a one-count indictment with Illegal Re-entry into the U.S. after being previously deported, a violation of Title 8, United States Code, Section 1326(a). The maximum possible penalty Altamirano-Diaz could receive is a maximum fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents of the Immigration and Custom Enforcement – Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Another Myrtle Beach Man Indicted for Illegal Re-entry Into the United States. Edgar Benjamin Lopez-Morales, age 29, of Myrtle Beach, South Carolina, was charged in a one-count indictment with Illegal Re-entry into the U.S. after being previously deported, a violation of Title 8, United States Code, Section 1326(a). The maximum possible penalty Lopez-Morales could receive is a maximum fine of $250,000.00 and/or imprisonment of 2 years. The case was investigated by agents of the Immigration and Custom Enforcement – Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Three Galivants Ferry Men Indicted for Immigration and Drug Charges. Epifanio Castillo-Pacheco, age 43, Isidro Camacho-Castillo, age 29, and Samuel Zepeda-Gonzalez, age 59, all of Galivants Ferry, South Carolina, were charged in a six-count indictment with possession with intent to distribute cocaine, a violation of Title 21, United States Code, Section 841(a)(1); Illegal Re-entry into the United States after being previously deported, a violation of Title 8, United States Code, Section 1326(a); possession of a firearm by an illegal alien, a violation of Title 18, United States Code, Section 922(g)(5)(A); and, possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c)(1)(A).
The maximum possible penalty Castillo-Pacheco and Zepeda-Gonzalez could receive is imprisonment of 20 years and a fine of $1,000,000. The maximum possible penalty Camacho-Castillo could receive is imprisonment of up to 20 years and a fine of $1,000,000.00 and/or imprisonment of 5 years to life. The case was investigated by agents of the ICE- Homeland Security Investigations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
#####Federal Court Permanently Bars California Man from Preparing Property AppraisalsRead the Press Release
A federal court in Helena, Montana permanently barred Ron Broyles of San Rafael, California from preparing - or assisting others in preparing - any property appraisal that will be used in connection with federal taxes, the Justice Department announced. Based upon evidence the government submitted to the Court in support of a request to bar Broyles, the Court found that Broyles assisted in the organization of a timeshare donation scheme, directly participated in and promoted that scheme, which resulted in timeshare owners claiming improper federal tax deductions for donating their timeshares.
The Court also found that Broyles prepared at least 5,000 appraisals for timeshares to be donated to an entity called Donate for a Cause. Previously, the Court entered permanent injunctions against the other individuals and companies involved in the timeshare donation scheme, including Donate for a Cause, Timeshare Closings, James Tarpey of Montana, Curt Thor of Washington, and Suzanne Tarpey of Montana.
According to the Court’s order, each of Broyles’ 5,000 timeshare appraisals contained false or fraudulent statements about the allowability of tax deductions under the internal revenue laws, and that Broyles knew or had reason to know that these statements were false or fraudulent. According to the evidence submitted by the government, Broyles served as the in-house and primary appraiser for Montana-based organizations Donate for a Cause and TimeShare Closings doing business as Resort Closings. According to the United States’ evidence, between 2011 and 2014, Broyles earned more than $617,000 from preparing appraisals for timeshares to be donated to Donate for a Cause, which constituted all - or virtually all - of his appraisal income during that time. Between 2010 and 2012, Broyles’ appraisals caused his customers to claim more than $11 million in improper charitable contribution deductions, according to the evidence submitted by the government.
The court also barred Broyles from encouraging or advising others to claim charitable contribution deductions on any federal tax return. The court’s order also requires Broyles to identify all timeshare owners for which he prepared a timeshare appraisal since 2010, provide such information to the United States, and email, or mail, a copy of the court’s judgment to every timeshare owner for which he prepared a timeshare appraisal since 2010.
Scams that claim inflated charitable contribution deductions is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.
Acting Assistant Attorney General David A. Hubbert, head of the Justice Department’s Tax Division, thanked the IRS Revenue Agent who conducted the investigation and Trial Attorneys Richard G. Rose, Harris J. Phillips and Gretchen E. Nygaard of the Tax Division, who litigated this case.
In the past decade, the Tax Division has obtained injunctions against hundreds of tax return preparers and tax fraud promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Father and Son Spice Traffickers Sentenced to PrisonRead the Press Release
NEWPORT NEWS, Va. – A father and son were sentenced today to a combined 27 years in prison for their roles in a synthetic cannabinoid trafficking operation. The duo was also ordered to forfeit over $1.9 million from their Spice sales.
Nader Abdallah, 56, of Rochester, New York, who was sentenced to 198 months in prison, was convicted on Oct. 20, 2016, by a federal jury of conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues, possession with intent to distribute schedule I controlled substances, distribution and possession with intent to distribute cocaine base, and two counts of false statements. Nader’s son, Sharif Abdallah, 33, also of Rochester, who was sentenced to 132 months in prison, pleaded guilty on Sept. 29, 2016, to conspiracy to use a communication facility and unlawful monetary transactions.
According to court documents and evidence presented at the trial of Nader Abdallah, the father/son team operated a gas station and convenience store located on Warwick Boulevard in Newport News called the Red Barn. Nader and Sharif would take turns coming down from New York to operate the store. In 2011, the Red Barn began selling smokable synthetic cannabinoid products, commonly known as “Spice.” According to court documents, Sharif told investigating agents that he would spend $15,000 to $20,000 on spice inventory in a slow month and $30,000 to $50,000 on spice inventory in a good month.
According to court documents and evidence presented at the trial of Nader Abdallah, on Sept. 18, 2014, law enforcement executed a search warrant at the Red Barn, where they found over 18 kilograms of spice, over $100,000 in cash and a safety deposit box key. Agents conducted a subsequent search warrant of the safety deposit box where they uncovered approximately $700,000 in cash. Eight days after that search warrant, Sharif contacted the Red Barn’s spice supplier and indicated that he and his father wanted to transition from the spice retail they had been doing at the Red Barn to spice wholesale. The Red Barn on Warwick Boulevard was subsequently sold and is no longer under the Abdallahs’ ownership. In December 2014, Nader and Sharif Abdallah acquired a new property in Newport News, which they began using to wholesale spice. During a search warrant executed at that new location on April 20, 2015, law enforcement found over a kilogram of spice and over $10,000 in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric M. Hurt and Kevin Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-18.
Easton Man Pleads Guilty to Federal Drug ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND J. MARTIN, 49, of Easton, pleaded guilty today in Bridgeport federal court to one count of unlawful possession of a controlled substance.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. Certain members of the conspiracy also distributed prescription pills, including oxycodone, as well as cocaine.
During the investigation, MARTIN was intercepted on a court-authorized wiretap ordering anabolic steroids.
MARTIN is scheduled to be sentenced by U.S. Magistrate Judge Holly B. Fitzsimmons on July 5, 2017, at which time he faces a maximum term of imprisonment of one year and a fine of up to $100,000
MARTIN has been released on a $100,000 bond since his arrest on July 14, 2015.
Santucci pleaded guilty and, on August 25, 2016, was sentenced to 16 months of imprisonment, six months of home confinement, 120 hours of community service and a $5,000 fine.
This matter has been investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Drug Trafficking Defendant Found GuiltyRead the Press Release
Jackson, Miss – On Wednesday, March 29, 2017, Mark Randall Jones, 52, of Los Angeles, California, was found guilty, after a three-day jury trial, of conspiring to possess with intent to distribute cocaine, announced Acting U.S. Attorney Harold Brittain and Inspector in Charge Adrian Gonzalez with the U.S. Postal Inspection Service, Houston Division.
Mark Randall Jones was charged in a two-count federal indictment with conspiracy to possess with intent to distribute more than 5 kilograms of cocaine hydrochloride and possession with intent to distribute 500 grams or more of cocaine hydrochloride.
"The results of the successful federal prosecution of Mark Randall Jones and other defendants by the United States Attorney’s Office supports our goal to maintain the safety and integrity of the U.S. Mail," said Postal Inspector in Charge Gonzalez.
Senior U.S. District Judge David C. Bramlette III, who presided over the case, will sentence Jones on June 7, 2017. He faces a maximum penalty of life in prison.
This case was investigated by the United States Postal Service, the Mississippi Bureau of Narcotics and the Los Angeles County Sheriff’s Department. It is being prosecuted by Assistant United States Attorneys Erin Chalk and Keesha Middleton.
Dinner Cruise Ship Captain Convicted of Using Stolen IdentityRead the Press Release
Galveston, Texas – A ship captain for Majestic Ventures, Majestic Dinner Cruises and Majestic Yacht Charters dinner cruise lines has entered a guilty plea to aggravated identity theft and making false statements in a passport application, announced Acting U.S. Attorney Abe Martinez.
Cynthia Lyerla, 53, of League City, admitted to obtaining the birth certificate of Christina White in 1992 and then using that identity to obtain a second Social Security number. She was also able to obtain driver’s licenses, passports, mariner licenses and Transportation Security Administration (TSA) documentation allowing her to enter secure port areas. Without a mariner license and TSA documentation, Lyerla would not be allowed to captain the ships for the dinner cruise companies.
The real Christina White died in 1965 on the same day she was born.
Cynthia Lynn Knox was born in 1964, later married Harold Lyerla and took his name. The marriage ended when Harold Lyerla was murdered in 1988 in Lompoc, California. Although another individual was convicted for that crime, Lyerla’s fingerprints were taken by the local police in the course of the investigation.
Since that time, Lyerla used the identity of Christina White, providing her date and place of birth, Social Security number and parents’ names in order to apply for and obtain various legal documentation.
Authorities discovered Lyerla’s true identity when her fingerprints were taken in connection with a mariner license application and compared to those taken in 1988 and 1989 during the investigation into the murder of her husband. Additionally, a retired California police detective, who investigated that murder, positively identified the defendant as Lyerla.
United States District Judge George C. Hanks accepted the plea and has set sentencing for June 7, 2017. At that time, Lyerla faces up to 10 years for making false statements in a passport application as well as a mandatory 24 months for the aggravated identity theft which must be served consecutively to any other prison term imposed.
She was permitted to remain on bond pending that hearing.
The Department of State - Diplomatic Security Service and U.S. Coast Guard Investigative Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Detroit Resident Pleads Guilty to Unregistered Possession of Destructive DevicesRead the Press Release
A 30-year-old Detroit man pleaded guilty today to charges of unregistered possession of destructive devices, Acting United States Attorney Daniel L. Lemisch announced today.
Lemisch was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division.
Sebastian Gregerson pleaded guilty before United States District Judge Arthur J. Tarnow in Detroit.
According to court records, on July 31, 2016, defendant Gregerson and an FBI employee acting in an undercover capacity met at a gas station in Monroe, Michigan, where Gregerson traded his Beretta M9 handgun for grenade parts containing explosives that were designed or intended for use in grenades and from which grenades could be readily assembled. These grenades are considered destructive devices that must be registered in the National Firearms Registration and Transfer Record. Gregerson did not register the destructive devices.
According to the court records, Gregerson made statements, both online and in person, showing support for the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization, and made statements relating to committing violent acts.
Gregerson was arrested on July 31, 2016, by FBI agents and remains in custody pending his sentencing which has been scheduled for June 30, 2017 at 2:30 pm.. Gregerson faces a term of up 10 years in federal prison.
Dedham Man Sentenced for Bank RobberyRead the Press Release
BOSTON – A Dedham man was sentenced yesterday in U.S. District Court in Boston for armed bank robbery.
Lawrence J. Costello, 54, was sentenced by U.S. District Court Judge Nathan M. Gorton to seven years in prison, five years of supervised release and ordered to pay $17,687 in restitution. In March 2016, Costello pleaded guilty to one count of armed bank robbery.
On May 12, 2014, Costello and another individual, armed with what appeared to be semi-automatic weapons, entered a branch of Bank of America in Attleboro. Once inside, Costello jumped over the teller’s counter, and took $17,687 in cash while holding the tellers at gunpoint. The men fled in a green Ford pickup truck, which was recovered a short time later and determined to have been stolen. During the investigation, law enforcement recovered a pair of red and black gloves which testing revealed contained Costello’s DNA. Costello was arrested a few weeks later in Bourne, Mass.
Acting U.S. Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Attleboro Police Chief Kyle Heagney; and Bourne Police Chief Dennis Woodside made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.
Cuban Man Sent to Prison for Selling Credit Card NumbersRead the Press Release
McALLEN, Texas – A Cuban citizen has been ordered to federal prison for conspiring to commit wire fraud, announced Acting U.S. Attorney Abe Martinez. Jorge Ernesto Blanco-Rodriguez, 43, a Cuban and Spanish citizen who resided in Havana, Cuba, pleaded guilty April 18, 2016.
Today, U.S. District Judge Randy Crane ordered he serve a total of 135 months in federal prison and to pay $602,864.13 in restitution. He is expected to face deportation proceedings following his release from prison.
Blanco-Rodriguez operated out of Cuba and was in the business of selling stolen credit and debit card numbers to various people over the Internet. The investigation began after authorities identified and arrested two Mexican nationals for credit card fraud. Information discovered following the execution of search warrants related to those arrests led to the identification of Blanco-Rodriguez as the individual selling the credit card information.
He was ultimately arrested as he traveled to Florida to visit family.
Authorities ultimately found more than 12,000 affected credit and debit card numbers in Blanco-Rodriguez’s possession for sale, many of which came from large data breaches. Approximately $788,000 in fraudulent transactions have been identified from the compromised accounts.
Blanco-Rodriguez will remain in custody pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service and McAllen Police Department conducted the investigation. Assistant U.S. Attorney Joseph Leonard prosecuted the case.
Connecticut Woman Pleads Guilty to Stealing over $250,000 from Her EmployerRead the Press Release
BOSTON – A Windsor, Conn. woman pleaded guilty today in U.S. District Court in Springfield, Mass. in connection with her theft of over $250,000 from her employer.
Angela M. Craig, 55, pleaded guilty to one count of wire fraud and is set to be sentenced on June 22, 2017 by U.S. District Court Judge Mark G. Mastroianni.
From July 2012 through May 2014, Craig stole more than $250,000 from her Massachusetts employer by writing company checks to herself, forging her employer’s signature and then cashing or depositing the checks. Craig concealed her theft by entering false invoices in her employer’s accounting system and by failing to pay company bills and taxes.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, a maximum of three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla of Weinreb’s Springfield Branch Office is prosecuting the case.
Columbus-area man charged with embezzling $183,000 in federal grants designed to help Native AmericansRead the Press Release
A Lewis Center man was charged with stealing more than $183,000 in federal grants designed to help Native Americans, said Acting U.S. Attorney David A. Sierleja and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General.
A three-count criminal information charges Craig McGuire, 47, with one count of conspiracy to commit theft concerning programs receiving federal funds and two counts of theft of government funds.
“This defendant blatantly lied on grant applications to get money designated to help one of our most vulnerable populations,” Sierleja said. “He used the money to enrich himself nearly as fast as he got it.”
“The intentional falsification of information in a federal grant application in order to receive funds is a serious crime,” Pugh said. “Federal grant funds are limited and must be used for the purpose for which they are intended. The OIG will continue to identify, investigate and seek the prosecution of those individuals who improperly enrich themselves with vital taxpayer dollars.”
McGuire operated McGuire & Associates LLC, a company that wrote grant applications and provided evaluation services. A person identified only as R.R. served as executive director of the American Indian Education Center, a Parma-based nonprofit established in 1995 to support Native American causes in Northeast Ohio, according to the information.
McGuire & Associates entered into an agreement with R.R. in April 2011 to draft grant proposals on behalf of the AIEC. Later that year, McGuire submitted an application on behalf of the AIEC to receive a Circle of Care grant, offered through the Substance Abuse and Mental Health Services Administration. The grant was designed to provide Native American communities with the tools and resources to design programs to support mental health and wellness for children and families, according to the information.
The AIEC’s application contained numerous false statements including: misrepresenting the date the AIEC was established; falsely claiming the AIEC had a wellness department and a “Positive Paths” afterschool program when no such department or program existed; fraudulently listing people the AIEC allegedly employed and mischaracterizing the description of the AIEC’s building and alleged physical amenities, according to the information.
SAMHSA awarded the AIEC a Circle of Care grant on Sept. 1, 2012 of approximately $302,340 for FY 2012. On June 26, 2012, SAMHSA awarded the second year of a Circle of Care grant in the amount of $308,040 for FY 2013, according to information.
The AIEC received approximately $482,766 from SAMHSA from 2011 through 2013. The AIEC did not receive full funding because SAMHSA placed it in “high risk” status, according to the indictment.
McGuire and R.R. embezzled at least $183,703 of those funds, according to the information.
The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Robert J. Patton and Suzana Koch following an investigation by the Department of Health and Human Services – Office of Inspector General.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Colombian Man Sentenced to More Than 24 Years for Smuggling Cocaine on Board A Fishing VesselRead the Press Release
Tampa, FL – U.S. District Judge Charlene Honeywell has sentenced Carlos Eyder Paz-Utima (41, Colombia, South America) to 24 years and 4 months in federal prison for conspiring with others to distribute five kilograms or more of cocaine on vessels subject to the jurisdiction of the United States, and for conspiring with others to distribute five kilograms or more of cocaine intending that it be unlawfully imported into the United States. He pleaded guilty on December 19, 2016.
According to court documents, Paz-Utima was responsible for several marine smuggling ventures in international waters of the Caribbean Sea. In September 2011, the United States Coast Guard interdicted a load of over 1,000 kilograms of cocaine that was being smuggled aboard the fishing vessel Diamada. Paz-Utima was the organizer and an investor in the drug trafficking organization, and was responsible for at least three other maritime smuggling ventures aboard vessels traveling from Colombia to Honduras.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Joseph Ruddy and Special Assistant United States Attorney Rebecca L. Castaneda.
Child Sexual Predator Sentenced to 25 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Thursday, March 30, 2017, United States District Court Judge Marco A. Hernández sentenced Kilunnun Adyden Chivoski, 41, to 25 years in federal prison followed by a lifetime of supervised release and sex offender registration. In September 2016, a federal jury in Portland convicted Chivoski of one count of transporting a minor across state lines with the intent to engage in criminal sexual activity.
Evidence presented during the ten-day trial showed Chivoski engaged in the repeated, systematic sexual abuse of two children that he had taken steps to isolate and indoctrinate over a yearlong period. Chivoski’s crimes were discovered years later when his victims began disclosing the abuse. Investigators meticulously pieced together Chivoski’s extensive cross-country travel, seeking to establish locations where he committed the abusive acts.
Though the intervening years and Chivoski’s itinerant lifestyle presented difficulties for the prosecution, the government successfully presented evidence that he had sexually abused the children during a cross-country road trip terminating in Oregon in August 2010. Evidence further established that one of Chivoski’s dominant, significant, and/or motivating purposes for that trip was to facilitate his continued sexual abuse of one of the minors.
At sentencing, prosecutors urged the court to impose a thirty-year prison term, followed by lifetime supervised release and sex offender registration. Chivoski’s conduct, they argued, was "shockingly heinous," as he sought to isolate and brainwash his pre-teen victims to avoid detection and continue his abuse. In response, Chivoski sought the mandatory minimum sentence of ten years in prison.
"This sentence will protect children in Oregon and elsewhere from a sexual predator whose egregious crimes will have a lifelong impact on his victims," said Billy J. Williams, United States Attorney for the District of Oregon. "I am grateful for the dedication and collaboration of our federal, state, and local partners who diligently followed the evidence in this case as part of their continuing effort to protect children in our district. I am also grateful for the amazing bravery that Chivoski’s victims showed," added U.S. Attorney Williams, "in coming forward to seek justice. Thanks to their courage, our community is safer and a dangerous criminal is behind bars."
In imposing the twenty-five-year prison sentence, Judge Hernandez remarked, "it is always troubling to the court when you think about parents abusing their own children and while
Mr. Chivoski’s own paranoia and mental challenges contributed to his actions, it doesn’t make his children any less of victims. He needs to be held responsible for this abuse."
This case was investigated by the Clackamas County Sheriff’s Office and the Department of Homeland Security’s Homeland Security Investigations (HSI) and prosecuted by Jane Shoemaker and Ravi Sinha, Assistant United States Attorneys for the District of Oregon.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Carroll County Man Sentenced on Federal Conspiracy ChargeRead the Press Release
Abingdon, VIRGINIA – The former store manager of the Carroll County Cooperative, who previously pled guilty to conspiring to defraud the Food and Drug Administration, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Marlin Webb, 58, of Woodlawn, Virginia, who is now the company manager of Southwest Farm Supply, Inc., previously pled guilty to one felony count of conspiracy to defraud the FDA. Today in District Court, Webb was sentenced to probation for a term of one year. At the time of his guilty plea, Webb paid $125,000 in forfeiture and other payments.
According to evidence presented at previous hearings by Assistant United States Attorney Randy Ramseyer, Webb was the store manager at the Carroll County Cooperative, through which he illegally obtained, stored, and sold veterinary prescription drugs. Federal regulation of prescription veterinary drugs are not primarily to protect animals from the potential harms of prescription drugs, but are to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Accordingly, veterinary prescription drugs must stay within the controlled chain of distribution to ensure the drugs’ safety and efficacy. Webb obtained and distributed prescription veterinary drugs outside of the controlled chain through his position at the store. The Carroll County Cooperative terminated Webb’s employment after a federal search warrant was executed at the store in April of 2015. Large quantities of prescription drugs were seized from Webb’s office during the search.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Canadian Man Convicted of Multi-Million Dollar Fraud Targeting U.S. LawyersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Henry Okpalefe, age 49, of Toronto, Ontario, Canada, was convicted of conspiracy to commit mail fraud, wire fraud and money laundering. The three-day bench trial was held before United States District Court Judge John E. Jones, III.
According to United States Attorney Bruce D. Brandler, between 2008 and 2010, Okpalefe and his co-conspirators stole over $23 million from hundreds of lawyers and law firms in the Middle District of Pennsylvania and nationwide. Under the guise of seeking legal representation, the conspirators contacted attorneys and law firms in the United States using fake email accounts. Once an attorney or law firm agreed to represent the purported client, the conspirators sent bank checks through the mail and instructed them to deposit the money into their IOLTA accounts. From there, the attorneys were provided with wire instructions and they wired their legitimate funds to Asian bank accounts. Before the counterfeit checks were returned as fraudulent, the money had already been withdrawn by co-conspirators in Asia and distributed to conspirators’ bank accounts in Nigeria and Canada. Okpalefe and his co-conspirators operated in Canada, Nigeria, Japan and South Korea.
The case was investigated by the United States Secret Service, the Federal Bureau of Investigation and the United States Postal Inspection Service. The Toronto Strategic Partnership and the Toronto Police Service provided integral assistance in the investigation and prosecution of the case. The case was prosecuted by Assistant United States Attorneys Chelsea Schinnour and Kim Douglas Daniel.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The United States Postal Inspection Service, Harrisburg Domicile, has reason to believe that this scheme is ongoing. The United States Postal Inspection Service encourages anyone receiving a check in the mail to be vigilant and to work closely with financial institutions to understand when a check has been verified as legitimate, even if funds are immediately made available upon deposit of the check. If you or someone you know has information about this please contact Inspector Rachel R. Heintz at 717-257-2342, 1425 Crooked Hill Road P.O. Box 60035, Harrisburg, Pennsylvania 17106-0035.
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California Resident Convicted of Supplying Fake IDs to Cash Stolen and Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
A federal jury sitting in Oakland, California convicted Janel McDonald today for her role in a conspiracy to cash stolen and fraudulently obtained U.S. Treasury checks, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
McDonald was charged, along with 10 codefendants in November 2015, with conspiracy to commit theft of public money, theft of public money and aggravated identity theft. According to the indictment and evidence presented at trial, from August 2013 through April 2015, McDonald’s co-conspirators stole deceased individuals’ personal identifying information from California death records and used it to file federal tax returns seeking refunds. They also obtained social security and refund checks that were stolen from the U.S. mail system. McDonald provided fake California IDs to her co-conspirators who used them to cash the stolen and fraudulently obtained U.S. Treasury checks.
Sentencing is scheduled for Aug. 1. McDonald faces a statutory maximum sentence of five years in prison for conspiracy to commit theft of public money, 10 years in prison for theft of public money and a mandatory minimum sentence of two years in prison for aggravated identity theft. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of the Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman and Assistant U.S. Attorney Jose Olivera and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Resident Convicted of Supplying Fake IDs to Cash Stolen and Fraudulently Obtained U.S. Treasury ChecksRead the Press Release
OAKLAND– A federal jury convicted Janel McDonald today for her role in a conspiracy to cash stolen and fraudulently obtained U.S. Treasury checks, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
McDonald, 38, of Los Angeles, was charged, along with 10 codefendants in November 2015, with conspiracy to commit theft of public money, theft of public money, and aggravated identity theft. According to the indictment and evidence presented at trial, from August 2013 through April 2015, McDonald’s co-conspirators stole deceased individuals’ personal identifying information from California death records and used it to file federal tax returns seeking refunds. They also obtained social security and refund checks that were stolen from the U.S. mail system. McDonald provided fake California IDs to her co-conspirators who used them to cash the stolen and fraudulently obtained U.S. Treasury checks. On November 5, 2015, McDonald was charged in a superseding indictment with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. §§ 641 & 2; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Pursuant to today’s verdict, McDonald was found guilty of all the charges.
Sentencing is scheduled for Aug. 1. McDonald faces a statutory maximum sentence of five years in prison for conspiracy to commit theft of public money, 10 years in prison for theft of public money and a mandatory minimum sentence of two years in prison for aggravated identity theft. She also faces a period of supervised release, restitution and monetary penalties. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg thanked special agents of the Internal Revenue Service–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman and Assistant U.S. Attorney Jose Olivera and Trial Attorney Gregory Bernstein of the Tax Division, who are prosecuting the case.
Brothers Sentenced to Federal Prison for Possessing Synthetic CannabinoidsRead the Press Release
CORPUS CHRISTI, Texas - Two brothers have been ordered to federal prison following their convictions of possession with intent to distribute a synthetic cannabinoid mixture or substance, announced Acting U.S. Attorney Abe Martinez. Roy Valent Jr., 31, and Arnold Ray Valent, 29, both of Corpus Christi, pleaded guilty Jan. 4, 2017.
Today, Senior U.S. District Judge Janis Graham Jack sentenced Roy Valent to serve 66 months in federal prison. His brother was determined to be a career offender and received a 110-month-term of imprisonment on March 15, 2017. At that hearing, a Drug Enforcement Administration (DEA) expert witness provided additional testimony including how the DEA handles newly emerging synthetic narcotics, the adverse effects of those substance and imminent hazards they present to public safety. In handing down the sentence, the court acknowledged the significant danger of synthetic narcotics, specifically their appeal to children. Both men will also serve three years of supervised release following completion of their sentences.
On Dec. 16, 2015, officers attempted to conduct a traffic stop of a vehicle leaving a residence, at which time Arnold Valent exited the vehicle and fled on foot. He was taken into custody after a short pursuit and officers discovered a backpack in the vehicle that contained 35 packages of synthetic cannabinoids, also known as “K2” or “Spice.”
When officers returned to the residence, they observed Roy Valent in a garage apartment with a firearm. Prohibited from possessing such, officers arrested him and also discovered 19 additional packages of synthetic cannabinoids. Laboratory analysis confirmed the presence of scheduled substances, AB-CHMINACA and XLR-11, and 5F-AMB, 5F-MDMB-PINACA, NM-2201, FUB-AMB, AB-CHMICA and PX-1 which are controlled under the Controlled Substance Analog Act.
The arrests and investigation were part of Operation City Shield that was a coordinated effort by federal, state and local law enforcement to identify violent offenders, stop gun violence and protect the community.
The Valent brothers will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Lance Watt prosecuted the case.
Bridgeport Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose Death InvestigationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAQUONE JOHNSON, 24, of Bridgeport, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin. This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 9, 2016, a 30-year-old female was found unresponsive at a residence in Monroe. Police and medical personnel responded to the scene and administered multiple doses of Narcan to the victim. The victim, who did not respond to the Narcan, was transported to the hospital where she was pronounced deceased. While administering aide to the victim, hospital staff located unopened heroin folds on the victim’s person. The substance within the folds later tested positive for heroin and fentanyl, and the Connecticut Office of the Medical Examiner has determined the victim’s cause of death to be acute heroin and fentanyl toxicity.
The investigation, which included witness interviews and analysis of calls and text messages to and from the victim’s phone, revealed that the victim ordered heroin from JOHNSON on the day of her death.
JOHNSON was arrested on June 13, 2016, after law enforcement conducted a controlled purchase of heroin from him.
JOHNSON is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on June 22, 2017, at which time he faces a maximum term of imprisonment of 20 years. He is released on a $125,000 bond pending sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, and the Monroe, Milford and Bridgeport Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Brandon Man Pleads Guilty to Paying Health Care KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Nikkos Hamlett (29, Brandon) has pleaded guilty to conspiracy to pay kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Hamlett was an active duty Airman with the U.S. Air Force stationed at MacDill Air Force Base in Tampa. Beginning in September 2014, he became a sales representative for Centurion Compounding Inc., a marketing firm located in Wesley Chapel. Centurion utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams.
Hamlett was initially recruited into the Centurion scheme by other active-duty military members to be a patient and to obtain compounded creams marketed by Centurion. Between September 2014 and January 2015, Hamlett caused TRICARE to pay $84,487.43 in claims for his prescriptions for pain cream and scar cream.
Hamlett agreed and conspired with other members of his Centurion sales marketing group, self-labeled “team cream,” to give and offer to give TRICARE beneficiaries incentives, such as cash, meals, entertainment, and travel expenses, to visit a doctor and obtain prescriptions for Centurion-marketed compounded creams for which Hamlett and other “team cream” members would receive commissions. Between September 2014 and February 2015, Hamlett caused TRICARE to be billed approximately $640,577 for these creams, from which Centurion and Hamlett received commissions. Hamlett received commissions from Centurion totaling approximately $30,000 and, at the time Centurion shut down in February 2015, he was owed an additional $66,000 in commissions.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, the Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Atwater Penitentiary Cook Indicted for Conspiracy, Attempted Drug Distribution and Accepting a BribeRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed Thursday following the arrest of David G. Bruce II, 32, of Merced. Bruce is charged with conspiring to provide inmates with prohibited objects; attempting to possess marijuana and heroin with the intent to distribute; and taking a bribe as a public official, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bruce was employed as a cook foreman at the Federal Bureau of Prisons’ United States Penitentiary Atwater (USP Atwater) in Merced County. Between May and December 2015, Bruce conspired with others to provide USP Atwater inmates with marijuana and heroin. In return, Bruce received $1,580 from associates of the inmates. On December 2015, Bruce attempted to possess marijuana and heroin.
This case is the product of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, Bruce faces a maximum statutory penalty of 20 years in prison and a $1 million fine for possessing a controlled substance with intent to distribute. The maximum statutory penalty for conspiring to commit an offense against the United States is five years in prison and a $250,000 fine. The maximum statutory penalty for a public official taking a bribe is 15 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Attorney General Sessions Announces Expansion and Modernization of Program to Deport Criminal Aliens Housed in Federal Correctional FacilitiesRead the Press Release
Attorney General Jeff Sessions today announced the expansion and modernization of the Department’s Institutional Hearing Program (IHP).
The IHP identifies removable criminal aliens who are inmates in federal correctional facilities, provides in-person and video teleconference (VTC) immigration removal proceedings, and removes the alien upon completion of sentence, rather than releasing the alien to an ICE detention facility or into the community for adjudication of status. Bringing an Immigration Judge to the inmate for a determination of removability, rather than vice versa, saves time and resources and speeds hearings.
The program is coordinated by the Department of Justice’s Executive Office for Immigration Review (EOIR), the Bureau of Prisons (BOP) and Immigration and Customs Enforcement (ICE).
“We owe it to the American people to ensure that illegal aliens who have been convicted of crimes and are serving time in our federal prisons are expeditiously removed from our country as the law requires,” said Attorney General Sessions. “This expansion and modernization of the Institutional Hearing Program gives us the tools to continue making Americans safe again in their communities.”
The expansion and modernization of the IHP program will occur in the following three ways:
1. ICE, BOP, and EOIR will expand the number of active facilities with the program to a total of 14 BOP and 6 BOP contract facilities;
2. EOIR and BOP will increase each facility’s VTC capabilities and update existing infrastructure to aid in the ability to conduct removal proceedings; and
3. EOIR and ICE will finalize a new and uniform intake policy. EOIR and ICE expect to have reached agreement on this new intake process by April 6, 2017.
These improvements will speed the process of deporting incarcerated criminal aliens and will reduce costs to taxpayers.
Armed Robber Sentenced to over 10 Years in Federal Prison for Violent Fast Food Restaurant RobberyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Rodney Levon Davis, age 47, of Upper Marlboro, Maryland, today to 121 months in prison, followed by three years of supervised release, for robbery, and for using, brandishing, and discharging a firearm during the robbery of a fast food restaurant in Prince George’s County.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on December 24, 2014, Davis approached a fast food restaurant on Landover Road in Hyattsville, Maryland wearing a hooded jacket and an “Iron Man” mask. At the entrance, Davis brandished a revolver at an employee. The victim stated that he did not have a key to the safe and that the manager was not present. Davis shoved the revolver into the victim’s back and threatened to shoot the victim if the victim didn’t comply with his demands. Davis then hid behind a brick wall and waited for the manager to return to the restaurant.
Once the manager arrived, Davis used the revolver to enter the restaurant and directed the victim, manager and several other employees into the manager’s office. Davis demanded that the manager open the safe, from which Davis stole money.
While the employees were in the manager’s office, Davis discharged the revolver. He also sprayed lighter fluid on the wall and floor, and ignited the lighter fluid. Davis and the employees rushed out of the office to the front of the restaurant. Davis removed additional money from the cash registers and fled. The manager chased after Davis and Davis fired at least two shots, which struck the side of the restaurant.
Davis got into his vehicle and drove away. Prince George’s County police attempted to stop Davis’ vehicle, but Davis led them on a high speed chase. Eventually, Davis stopped his vehicle in the middle of the intersection of Marlboro Pike and Nova Avenue in Prince George’s County. Officers arrested Davis and seized the “Iron Man” mask, a bag containing $2,095, a revolver which contained three spent cartridges and three live rounds, and bottles of lighter fluid. Approximately $73 stolen from the restaurant was not recovered.
Davis subsequently admitted that he robbed the restaurant because he was upset that his employment with that restaurant had been terminated.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Menaka S. Kalaskar, who prosecuted the case.