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11 May 2017
Patient Marketer for All-Star Medical Supply Sentenced to Prison for Health Care FraudRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced that U.S. District Judge Shelly D. Dick sentenced DEMETRIAS TEMPLE, age 56, of New Orleans, Louisiana, to serve ten (10) months in federal prison following her conviction for health care fraud. TEMPLE was ordered to make restitution to the Medicare program totaling $100,000 and pay a $100 special assessment. TEMPLE was ordered to forfeit an additional $100,000 as the proceeds of her criminal activity. Finally, following her release from prison, TEMPLE will be required to serve a two-year term of supervised release.
This criminal case began in October 2013, when a federal grand jury returned an indictment charging TEMPLE and her co-defendant, AHAOMA BONIFACE OHIA, with perpetrating a scheme to defraud Medicare through OHIA’s company, All-Star Medical Supplies, which operated in Baton Rouge, Louisiana, and Houston, Texas. On June 6, 2014, TEMPLE pled guilty to health care fraud, in violation of Title 18, United States Code, Section 1347. Specifically, TEMPLE admitted that she worked as a recruiter for OHIA and, throughout 2008 and 2009, that she assisted OHIA’s fraudulent scheme by recruiting Medicare beneficiaries in the New Orleans area and providing their names and personal information to OHIA, knowing that OHIA would use the information to submit false Medicare claims. TEMPLE also admitted that OHIA paid her via illegal kickbacks; she and OHIA would meet in New Orleans, and OHIA would pay her in cash based on the number of beneficiaries whose personal information she provided to OHIA.
TEMPLE’s co-defendant, OHIA, proceeded to trial in June 2014. The evidence at trial established that OHIA had caused All-Star to submit hundreds of false and fraudulent claims to Medicare from January 2007 through February 2009. For instance, OHIA submitted hundreds of fraudulent claims for a highly-specialized, custom-fabricated device intended to be used by amputees. OHIA never actually provided the device to his clients, however, none of whom needed the device anyway. After a four-day jury trial, OHIA was convicted of all seven charged counts. In December 2014, this Court sentenced OHIA to serve one hundred fifty six (156) months in federal prison and pay restitution of more than $1.2 million. In October 2015, the United States Court of Appeals for the Fifth Circuit affirmed OHIA’s conviction and sentence.
Meanwhile, in September 2014, several months after TEMPLE was convicted in Baton Rouge for her role in All-Star Medical, TEMPLE was also convicted in the United States District Court for the Eastern District of Louisiana for her role in a separate health care fraud scheme in New Orleans. In that case, TEMPLE admitted that she conspired with certain individuals in the New Orleans area, from 2009 through March 2013, to submit false Medicare claims for home health services. TEMPLE was recently sentenced to serve 46 months in prison as a result of her role in that scheme.
Acting U.S. Attorney Amundson stated, “Today’s sentence is a clear reminder that we continue to work aggressively to fight health care fraud in this district. Since Baton Rouge was first selected as one of the host cities for a Medicare Fraud Strike Force in 2009, this office has placed a special emphasis on this type of crime. By working closely with our colleagues at the Department of Justice’s Criminal Fraud Section and our law enforcement partners at HHS-OIG, the FBI, and the Louisiana Medicaid Fraud Control Unit, and by surging resources to this area, the Strike Force has achieved tremendous success in Baton Rouge. The results in the All-Star Medical case—including OHIA’s thirteen-year federal prison sentence and TEMPLE’s conviction and sentence today—are just the latest example in a long line of successful prosecutions. From day one of the Strike Force, the consistent message to those who would commit health care fraud in this district is that we are working hard to bring to justice and convict those who would steal from the Medicare program.”
“Any time false claims are submitted for payment, the nation's health insurance programs suffer,” said Special Agent-in-Charge CJ Porter of the HHS Office of the Inspector General's (OIG) Dallas Regional Office. “The sentence imposed today affirms our commitment that HHS-OIG Special Agents will continue to work closely with our law enforcement partners to identify and bring to justice providers who deliberately manipulate the system to fraudulently obtain crucial Medicare and Medicaid dollars.”
FBI New Orleans Special Agent-in-Charge (SAC) Jeffrey Sallet stated, “The FBI will continue to investigate health care fraud in cooperation with our federal and state partners to safeguard the Medicare Trust Fund against theft by those who seek to undermine the availability of heath care to our vulnerable or elderly citizens.”
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services (DHH-OIG), the Federal Bureau of Investigation (FBI), and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case was prosecuted by Assistant U.S. Attorney Alan A. Stevens, who serves as Acting Criminal Chief of the Criminal Division, and Assistant U.S. Attorney Cam Le.
Owner of Utah-Based Pharmaceutical Wholesale Distributor Sentenced to 60 Months in Prison for Role in $100 Million Black Market Medication SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that RANDY CROWELL, a/k/a “Roger,” was sentenced today to 60 months in prison for fraudulently distributing, through his Utah-based wholesale distribution company, more than $100 million worth of prescription drugs obtained through a nationwide black market. The defendant distributed the drugs in question, which were predominantly used to treat HIV/AIDS, to pharmacies, where they were dispensed to unsuspecting patients. As part of his sentence, CROWELL also agreed to forfeit more than $13 million in personal profits from the scheme and was ordered to pay an additional $65 million in restitution to Medicaid. CROWELL pled guilty on January 6, 2017, to one count of conspiracy to commit healthcare fraud before United States District Judge Edgardo Ramos, who also imposed today’s sentence.
Acting Manhattan U.S. Attorney Joon H. Kim said: “For more than two years, Randy Crowell personally profited from perverting a system designed to ensure patients receive safe and effective medication. He victimized healthcare companies and government benefit programs, as well as countless people suffering from life-threatening illnesses. The recipients of Crowell’s black market medications had no way to know that the medicines they purchased at pharmacies might be dangerous.”
CROWELL’s sentence marks the culmination of a six-year investigation by the U.S. Attorney’s Office in conjunction with the Federal Bureau of Investigation into a massive, nationwide healthcare fraud scheme involving the resale of black market medications worth more than $500 million. Including CROWELL, 57 defendants have been charged and convicted for their roles in the scheme. Through these prosecutions, hundreds of millions in restitution and criminal forfeiture have been recovered for victims, including Medicaid.
According to the allegations contained in the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From early 2010 until at least July 2012, CROWELL, who was the owner and operator of a licensed wholesale distributor of prescription medications based in St. George, Utah (“Wholesaler-1”), participated in a sophisticated scheme to defraud health insurance companies and government programs such as Medicaid out of hundreds of millions of dollars by trafficking prescriptions through a nationwide black market. CROWELL, through Wholesaler-1, purchased more than $100 million worth of prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.
To maximize their profits, CROWELL and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The profitable scheme was potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. Many of the bottles purchased through the underground market and then distributed as safe, legitimate medications by CROWELL and Wholesaler-1 had in fact been previously dispensed to others, including individuals based in the Southern District of New York. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently unsanitary and insufficient to ensure the safety and efficacy of the medication.
Rather than purchasing medications from manufacturers or legitimate authorized distributors at full price, scheme participants, including CROWELL, created and exploited an underground market for these prescription drugs. Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed (the “Insurance Beneficiaries”).
Insurance Beneficiaries had prescriptions filled for medications each month at pharmacies across the country, including in Manhattan and the Bronx, and then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle. Health care benefit programs would not have paid for the medications issued by pharmacies to the Insurance Beneficiaries had these health care benefit programs known that the Insurance Beneficiaries were selling their drugs to others, rather than taking them as prescribed.
Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels, including corrupt wholesale companies like Wholesaler-1. The corrupt wholesale companies, including Wholesaler-1, then resold the bottles as new, at full price, to pharmacies, including potentially the very same pharmacies that initially dispensed these medications. In so doing, CROWELL and other corrupt wholesale companies intentionally misrepresented where these medications were coming from and, in particular, concealed the fact that these prescription drugs had been obtained from an illegal and illegitimate black market.
Between 2010, when Wholesaler-1 was created by CROWELL, and July 2012, Wholesaler-1 had no legitimate sources of supply. Instead, CROWELL caused Wholesaler-1 to purchase exclusively from illegitimate sources – including the so-called “Aggregators” – who sold to CROWELL at substantially reduced rates, sometimes as much as 50 percent less than the price of acquiring these medications from legitimate sources. Consistent with their illegitimate origins, inbound shipments of prescription drugs frequently arrived at Wholesaler-1 improperly packaged in unsealed, unsecure cardboard boxes. On some occasions, bottles of medication arrived at Wholesaler-1 with the initial patient labels still affixed to them. On other occasions, bottles arrived having already been opened, or containing what appeared to be the wrong medication. At the direction of CROWELL, employees of Wholesaler-1 then inventoried these bottles, attempted to remove any bottles that still had patient labels affixed to them or were otherwise visibly used or damaged, and then arranged for the medications to be shipped out to Wholesaler-1’s customers – pharmacies all over the country, including pharmacies in Manhattan and the Bronx.
To effectuate the scheme – and, in particular, to convince pharmacies to buy these medications, and health care benefit programs to pay for them, CROWELL and others made false and fraudulent representations about the origins of these medications. Specifically, CROWELL and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold by Wholesaler-1 from a manufacturer to the pharmacy.
In order to evade detection, CROWELL took additional steps to conceal the unlawful nature of his activities, including using the name “Roger,” frequently changing or “dropping” the phones he used to communicate with co-conspirators, and paying co-conspirators through front or “sham” companies.
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In addition to the term of imprisonment, CROWELL, 56, of Henderson, Nevada, was sentenced to three years of supervised release, ordered to forfeit $13,046,635.00, and ordered to pay restitution of $65 million to Medicaid.
Mr. Kim praised the investigative work of the FBI.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Edward B. Diskant and Matthew Podolsky are in charge of the prosecution.
Owner of Day Trading Firm Admits Role in Worldwide Simulator Trading Account Scheme, Two Co-Conspirators IndictedRead the Press Release
Scheme Targeted Hundreds of Investors in More Than 30 Countries, Including United States
NEWARK, N.J. – A Thai man today admitted to orchestrating a scheme to defraud hundreds of investors worldwide of approximately $1.4 million through his operation of Nonko Trading, a purported online day trading firm, Acting U.S. Attorney William E. Fitzpatrick announced. Also, a federal grand jury has indicted two conspirators in connection with the scheme.
Naris Chamroonrat, 33, of Bangkok, Thailand, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud. On May 10, 2017, a federal grand jury returned an indictment against Yaniv Avnon, 36, of Tel Aviv, Israel, and Ran Armon, 45, of Toronto, Canada, who are each charged with one count of conspiracy to commit securities fraud and one count of wire fraud.According to documents filed in the case and statements made in court:
Between December 2013 and June 2015, Chamroonrat, Avnon, Armon and their conspirators solicited individual investors to open day trading accounts with Nonko and to wire thousands of dollars to Nonko to fund those accounts. Instead, the conspirators allegedly stole the victims’ money. To cover up the theft, they provided the victims with online trading simulator, or “demo,” accounts, and told the investors that they were real accounts to be used for trading securities. They allegedly misappropriated at least $1.4 million from more than 260 investors from 30 countries, including at least 180 investors from the United States, several of whom are in New Jersey.
The conspirators selected as victims only those customers who they believed would not be profitable day-traders and would be less likely to seek to withdraw funds from their accounts. They limited the scheme to inexperienced, unsophisticated “losing” traders because those customers would simply believe they lost their money trading in the open markets. If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts.
The conspirators discussed the scheme in detail in email and online chat communications. In one online chat communication between Chamroonrat and Avnon on Feb. 2, 2014, Avnon referred to the profits that the scheme had generated the prior month, noting, “It was a huge month, huge month means that a lot of traders got burned .... New blood, all the time, that’s what we need[.]” Although Nonko paid back a small percentage of customers, the majority of misappropriated funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions, including transferring proceeds of the scheme to Avnon and Armon.
The conspiracy count in the information and indictment carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count in the indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for Chamroonrat is scheduled for Sept. 20, 2017.
In a separate civil action, the Securities and Exchange Commission today filed an amended complaint in Newark federal court charging Avnon and Armon with, among other things, violating and aiding and abetting violations of the antifraud provisions of the securities laws. The amended complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties. Before amending the complaint, the SEC had asserted similar claims against Chamroonrat.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea and yesterday’s indictment. He also thanked the SEC for its valuable assistance in the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Chamroonrat: Edward E. Alon Esq., Woodland Hills, California
Omaha Resident Sentenced for Illegal Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, IA - On May 10, 2017, Brandon David Kinnear, a 25 year-old resident of Omaha, Nebraska, was sentenced by bySenior United States District Court Judge James E. Gritzner to 120 months in prison followed by three years of supervised release for a felon in possession of a firearm charge, announced United States Attorney Kevin E. VanderSchel.
Kinnear pleaded guilty on January 19, 2017, to the charge. On August 30, 2016, Kinnear was walking in Carter Lake, Iowa, with the grip of a handgun visible just above his waistband. Carter Lake Police Officers stopped Kinnear and found him in possession of a .22 caliber semi-automatic handgun. Kinnear was prohibited from possession a firearm as the result of a 2013 felony drug conviction in South Dakota.
The Carter Lake Police Department, the Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Ohio Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.
Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.
Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest. A citizen of Jordan, Alebbini is a legal permanent resident of the U.S.
Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The JTTF includes officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, Greene County Sheriff’s Office, Oakwood Police Department, West Chester Police Department and Cincinnati State Police Department.
U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
Oakdale woman sentenced to 12 months in prison for bribery charge at federal prisonRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced that an Oakdale woman was sentenced last week to 12 months and one day in prison for receiving bribes for smuggling cell phones and tobacco into the Federal Correctional Institution at Oakdale.
Billie A. Holmes, 55, of Oakdale, La., was sentenced Friday by U.S. District Judge Donald E. Walter on one count of bribery of a public official. The defendant was also sentenced to two years of supervised release. According to the January 17, 2017 guilty plea, Holmes worked as an education contractor for FCI Oakdale. From September 2014 to May 2015, an inmate paid Holmes thousands of dollars to smuggle cell phones and tobacco into the prison. In January of 2015, another inmate informed law enforcement that he had been approached by an inmate who offered to sell him a cell phone for $1,600. Upon further investigation, it was learned that Holmes worked with that inmate to smuggle contraband into the prison. During the investigation, Holmes was recorded making plans to smuggle in a cell phone. Financial records also showed $4,200 in wire transfers to Holmes between November 2014 and December 2014.
The U.S. Department of Justice-Office of Inspector General investigated the case. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Nurse Practioner Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Brandon Coburn, 34, of West Seneca, NY, pled guilty to conspiracy to possess with intent to distribute and to distribute fentanyl, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between July 2013 and May 2015, Coburn, a licensed nurse practitioner who was legally authorized to prescribe controlled substances, provided fraudulent fentanyl, oxycodone, oxymorphone, and amphetamine prescriptions to ten co-defendants. Those prescriptions were not used for legitimate medical purposes and instead were filled by the co-defendants and sold on the street in the Buffalo area. Coburn issued a total of 253 prescriptions without any legitimate medical purpose.
To date, five defendants charged in this investigation have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Coburn is scheduled to be sentenced on August 23, 2017, at 12:30 p.m. before Judge Arcara.
NKC Man Sentenced to 10 Years for Discharging Firearm During Police PursuitRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a North Kansas City, Mo., man was sentenced in federal court today for firing a pistol into the air as he attempted to outrun police officers.
Jason P. Summers, 33, of North Kansas City, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Nov. 22, 2016, Summers pleaded guilty to discharging a firearm in relation to a drug-trafficking crime.
Summers admitted that he fired two shots in the air while he was being pursued by police officers on Aug. 19, 2015. A North Kansas City police officer attempted to conduct a pedestrian check when he saw Summers walking down the street, but Summers ignored the officer’s request to stop and instead fled on foot. Additional officers joined the foot chase. One officer witnessed Summers remove the gun from his waistband, look back at the officer, and fire two gunshots into the air.
Summers attempted to hide between two cars in a parking lot in the 2700 block of Burlington Street, but officers were able to apprehend him. Officers found the firearm, an SCCY Industries 9mm pistol, underneath a vehicle next to where Summers had been hiding. The gun was loaded with ammunition. Two fired cartridge cases were also recovered from the scene.
During a search of Summers, officers found various controlled substances, including psilocybin mushrooms, approximately 1.6 grams of marijuana, prescription drugs and a plastic baggie containing approximately 1.6 grams of methamphetamine. Summers told officers he had possessed and distributed approximately three pounds of methamphetamine over the past six months. Summers also admitted he had stolen the firearm from his father because he needed it for protection due to his involvement with methamphetamine. Summers explained he ran from police because, since he was a felon, he did not want to get caught with the gun. Summers said he fired two rounds into the air, hoping it would create some distance between himself and the officers during his escape.
Summers admitted that, at the time he discharged the firearm, he was involved in a conspiracy to distribute a controlled substance.
This case is being prosecuted by Assistant U.S. Attorney Justin Davids. It was investigated by the North Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Montgomery Woman Sentenced for Using Stolen Identities to Cash Bad ChecksRead the Press Release
Montgomery, Ala. – On Wednesday, May 10, 2017, Luciana Mekele Jackson (40) of Montgomery, Alabama, was sentenced to 81 months in federal prison for wire fraud and identity theft, announced A. Clark Morris, Acting U.S. Attorney for the Middle District of Alabama. Her prison sentence will be followed by 3 years of supervised release.
According to court documents, Jackson carried out her identity theft scheme by traveling to various Wal-Mart store locations across central and east-central Alabama to cash fraudulent checks, some made out for more than one thousand dollars. Wal-Mart required a valid social security number (SSN) to be provided when checks were cashed in their stores, so Jackson resorted to using the SSN of others when cashing the bad checks. She would use a SSN until it became red-flagged, and then she would begin using the next victim’s information. By the time she was caught, Jackson had used the personal identity of 93 victims.
Over the course of a nine month period, 367 fraudulent transactions were attempted by Jackson. Although the total amount of attempted transactions were well over $250,000.00, actual losses suffered by Wal-Mart were approximately $25,000.00.
Jackson had previously been charged with similar crimes at the state level, including possession of a forged instrument and intentionally cashing worthless checks. Within two weeks of bonding out of jail for those charges, Jackson continued this scheme and was eventually arrested on federal charges. She still has state charges pending in Elmore County and Douglas County in Georgia.
This case was investigated by the United States Secret Service, with assistance from the Certegy Check Services’ Fraud Department. Assistant United States Attorney Rand Neeley and Bradley Bodiford prosecuted the case.
Modesto-Area Dermatologist Indicted for Health Care FraudRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Basil Hantash, 44, of Hughson, charging him with health care fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, Hantash is a dermatologist and the medical director of Advanced Skin Institute (ASI) in Turlock. From 2011 through April 2016, Hantash submitted claims to private insurance companies requesting payment for performing acne surgeries. In fact, it is alleged that staff at ASI had performed only cosmetic procedures known as microdermabrasions, or chemical peels. Two insurers, Anthem Blue Cross and Blue Shield of California, paid ASI a total of approximately $220,000 during that time for claimed acne surgeries.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
If convicted, Hantash faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of health care fraud. 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.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – John Michael Carrillo, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to an assault charge. Under the terms of his plea agreement, Carrillo will be sentenced to 21 months in prison followed by a term of supervised release to be determined by the court.
Carrillo was arrested on Dec. 17, 2016, on a criminal complaint alleging that he assaulted a Mescalero Apache woman on Dec. 2, 2016, on the Mescalero Apache Indian Reservation in Otero County, N.M., and that the victim suffered serious bodily injury as a result of the assault. According to the complaint, Carrillo assaulted the victim by throwing the victim to the floor and stomping on the victim’s face causing her to suffer a broken jaw, which required surgery.
During today’s proceedings, Carrillo pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering the guilty plea, Carrillo admitted that on Dec. 2, 2016, he assaulted the victim by stomping on her face. Carrillo acknowledged that the victim suffered a fractured jaw as the result of the assault, which required surgical repair. A sentencing hearing has yet to be scheduled.
This case was investigated the Mescalero Agency of the BIA’s Office of Justice Services. The case was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Marrero Man Sentenced for Theft of Government Funds Related to Hurricane KatrinaRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PRENTISS MARTIN, age 51, of Marrero, was sentenced today after previously pleading guilty to theft of government funds.
U.S. District Judge Eldon E. Fallon sentenced MARTIN to 4 years probation, which includes12 months of home detention, and $80,000 in restitution.
According to court documents, the Federal Emergency Management Agency (FEMA), an agency of the United States under the Department of Homeland Security, provided federal funds to the Hazard Mitigation Grant Program (HMGP), which provided grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration.
MARTIN executed application documents with the HMGP to receive federal grant funds to reconstruct his house on Bay Street in New Orleans, which was damaged by Hurricane Katrina. In support of his HMGP Home Reconstruction Grant application, MARTIN submitted fraudulent documents. As a result of his fraudulent submissions, MARTIN accepted and received federal HMGP grant monies in the amount of $80,000 to reconstruct his house in New Orleans. When Special Agents from the U.S. Department of Homeland Security, Office of Inspector General traveled to MARTIN’s property on Bay Street, they observed a vacant lot.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, Office of the Inspector General, in investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
Marion County Man Indicted on Arson and Destructive Device ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces the return of a five-count
indictment charging Mark Charles Barnett (49, Ocala) with attempted arson, possession of a destructive device in furtherance of a crime of violence, possession of a destructive device by a convicted felon, and two counts of unlawful possession/manufacturing of a National Firearms Act weapon. If convicted on all counts, Barnett faces up to life in federal prison.According to court documents, Barnett offered a confidential source (CS) $10,000 to place improvised explosive bombs in Target retail stores along the east coast of the United States. Beginning in January 2017, Barnett created at least 10 of the destructive devices, disguised in food-item packaging, and delivered them to the CS on February 9, 2017. Barnett then asked the CS to place the explosive devices on the store shelves from New York to Florida. Barnett told the CS that he had purchased options on Target stock and expected to make a lot of money from the resulting plunge in the company’s stock price.
Rather than placing the destructive devices on store shelves, however, the CS surrendered them to authorities. Subsequent searches of Barnett’s home by federal agents revealed components consistent with those used to create the destructive devices and articles describing stock market investments. Barnett, a convicted felon, had been conditionally released from state prison in 2013 following multiple convictions for sexual assault, kidnapping, and grand theft.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the Florida Department of Law Enforcement; the Florida Department of Corrections - Probation and Parole; the Marion County Sheriff’s Office; and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Maine Man Sentenced on Child Exploitation ChargesRead the Press Release
BOSTON – A Maine man was sentenced today in federal court in Boston in connection with enticing minors to engage in illicit sexual conduct.
Dillan Letellier, 32, of Saco, Maine, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 14 years in prison, five years of supervised release, and ordered to pay restitution of $2,400 and forefeiture. In December 2016, Letellier pleaded guilty to two counts of coercion and enticement of a minor, one count of attempted coercion and enticement of a minor, three counts of travel with intent to engage in illicit sexual conduct and one count of possession of child pornography.
Between May and October 2013, Letellier pretended to be a 17-year-old when he separately met two 14-year-old victims over the internet, coercing and enticing each victim to meet with him. On separate occasions, Letellier traveled from Maine to each of the victims’ Massachusetts towns, met each victim, and brought the victims to locations in Massachusetts where they engaged in sexual intercourse. Following an investigation by law enforcement officers, Letellier was charged by criminal complaint and arrested on Oct. 3, 2013. A forensic exam of the electronic devices seized from Letellier’s residence revealed thousands of images and videos of child pornography.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Saco (Maine) Police Department and municipal police departments where the victims reside assisted with the investigation. Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Anne Paruti of Weinreb's Major Crimes Unit prosecuted 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/.
Lower Brule Woman Pled Guilty and Was Sentenced to Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, woman charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty and was sentenced on May 10, 2017, by U.S. Magistrate Judge Mark A. Moreno.
Majestic Byington, age 23, was sentenced to 12 months in custody, 12 months of supervised release, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 15, 2016, when a Special Agent with the Federal Bureau of Investigation responded to a call for assistance for an uncooperative female from the BIA.
Byington was located hiding under a bed. She was very belligerent, uncooperative and refused to stand up, calling law enforcement personnel names. Byington was carried outside because she refused to walk. Byington spat three times, through the cage area, at the FBI Special Agent. Her spit landing on his head, neck and shoulder.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Byington was remanded to the custody of the U.S. Marshals Service to serve her sentence concurrently with a state court sentence for assaulting an officer.
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Louisville Convicted Felon, Charged with Threatening to Kill A Louisville Metro Intel (LM Intel) Joint Task Force Member and Multiple Firearm ViolationsRead the Press Release
Co-defendant charged with being a felon in possession of firearms and ammunition
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr., today announced the grand jury indictment of two Louisville convicted felons – one charged with threatening to kill a Louisville Metro Police Officer while engaged in the performance of his official duties – and both defendants were charged with firearm violations. These charges result from an investigation by Louisville Metro Intel (LM Intel): an intelligence-led task force which identifies serious, violent offenders and leverages all available resources to investigate, apprehend and prosecute these offenders. The LM Intel Joint Task Force was announce in January of 2017, and includes the United States Attorney’s Office, federal investigative agencies, state prosecutors and Louisville Metro Police.
Chicoby Summers, and Roman L. Brown, Jr., were charged individually this week, in a single eight count indictment, with counts of being a felon in illegal possession of firearms and defendant Brown faces additional charges of threatening to assault and threatening to kill a member of LM Intel.
Specifically, on April 12, 2017, Brown allegedly threatened to assault and threaten to kill the LM Intel Joint Task Force member, with the intent to impede, interfere, intimidate and retaliate against the LM Intel member while he was engaged in the performance of his duty. Further, on the same day, Brown allegedly threatened to assault a member of the immediate family of the LM Intel Joint Task Force member, while he was engaged in the performance of his official duty.
Brown is additionally charged with being a convicted felon in possession of a Glock Model 36,.45 caliber pistol, and a Zastava, 7.62 caliber pistol, Model PAP M92PV. Brown was convicted in Jefferson County Circuit Court of Trafficking in a Controlled Substance First Degree, on September 18, 2013.
Defendant Summers is charged with being a felon in possession of firearms and ammunition – when at the time of his arrest, on April 12, 2017, he possessed two Taurus 9 millimeter handguns and a Zastava, 7.62 caliber pistol, Model PAP M92PV, and ammunition. Summers was initially charged in a federal complaint Summers was convicted in Jefferson county Circuit Court of Trafficking in a Controlled Substance First Degree and Tampering with Physical Evidence on October 9, 2014.
If convicted at trial, Summer could be sentenced to no more than ten years in prison for counts one, two, and three. Brown could be sentenced to no more than a combined sentence of 42 years in prison, and both could be required to pay a fine and serve a period of supervised release.
This case is being prosecuted by Assistant United States Attorneys Erin G. McKenzie and is being investigated by the FBI, ATF, DEA, and LMPD.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
summers_chicoby_complaint_april_2017.pdfLocal Man Pleads to Mail Fraud in Connection with Used Textbook ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy Jr. announced today that Jeffrey Tomasik, 33, of Hamburg, N.Y., pleaded guilty to mail fraud before U.S. District Judge Frank P. Geraci Jr. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant ran a used textbook scheme whereby he would rent textbooks from Amazon and other companies and then sell the textbooks on eBay. Using aliases and at least 20 online accounts with different email addresses to perpetrate the fraud, the defendant did not return the textbooks when the rental contracts had expired. Instead, he sold them online while ignoring the collection notices.
The defendant also entered into a sizeable contract to sell used textbooks to victims in California. After receiving an approximately $50,000 down payment on the contract via PayPal, the defendant allegedly sent a single textbook and removed his bank information from his PayPal account so that the victims could not recoup their money.
The plea is the result of an investigation by the United States Postal Inspection Service under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division.
Sentencing is scheduled for September 14, 2017, at 10:00 a.m. before Judge Geraci.
Leader of Drug Trafficking Organization Sentenced to 8 Years in Federal Prison for Conspiracy to Distribute DrugsRead the Press Release
Greenbelt, Maryland – On May 10, 2017, U.S. District Judge Theodore D. Chuang sentenced Mario Finesse Wright, a/k/a Super and Finesse, age 29, of Harrison, New Jersey, to 96 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute drugs. The following additional individuals, including three of Wright’s family members were part of the conspiracy:
Nikko Taylor Wright, age 26, of Germantown, Maryland;
Clayton Dion Hollywood Wright, a/k/a Hollywood, and Harrison Wright, age 23, of New Jersey;
Maximillan Kabir Bradford Wright, age 22, of New Jersey;
Shahryar Talebi-Nejad, a/k/a Skeet, age 28, of North Potomac, Maryland;
Matthew Joseph Hochman, a/k/a Greasy, age 28, of Gaithersburg, Maryland;
Daniel Rocco Famulare, age 29, of Gaithersburg, Maryland;
Brandon Alexander Ade, age 25, of Germantown, Maryland;
Arian Siasi, a/k/a The Prince of Persia, age 26, of Silver Spring, Maryland;
Ilya Bechutsky, age 30, of Boyds, Maryland; and
Terrence Devon Taylor, a/k/a Scoop, and T, age 28, of Clinton, Maryland.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Carl J. Kotowski of the Drug Enforcement Administration – New Jersey Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from at least March 2014 to May 2016, the defendants conspired to distribute heroin and cocaine in several states, including New Jersey and Maryland. Over a period of years, three New Jersey-based brothers, Mario, Clayton, and Max Wright, supplied their Maryland-based brother, Nikko Wright, with large quantities of heroin and cocaine, which Nikko Wright in turn distributed to a network of dealers in the Maryland and Washington, D.C., metropolitan area. Notably, two of the Maryland-based dealers involved in this conspiracy have admitted that heroin they distributed resulted in overdose deaths in Maryland.
All of the charged members of this conspiracy have pled guilty. In addition to Mario Wright, two others have been sentenced: Matthew Joseph Hochman was sentenced to 63 months in prison and Clayton Dion Hollywood Wright was sentenced to 66 months in prison. The remaining defendants are scheduled for sentencing in the coming weeks and months.
Acting United States Attorney Stephen M. Schenning commended the DEA and the Montgomery County Police Department for their work in the investigation, and in particular praised the DEA’s multi-jurisdictional efforts in this investigation, which included substantial efforts of agents based in both Maryland and New Jersey. Mr. Schenning also recognized the Bureau of Alcohol, Tobacco and Firearms, the United States Marshal Service, Calvert County Police Department, Howard County Police Department, and Prince George's County Police Department for their assistance. Mr. Schenning thanked Assistant U.S. Attorneys Michael T. Packard and Ray D. McKenzie, who are prosecuting this Organized Crime Drug Enforcement Task Force case, and also thanked their colleagues in the U.S. Attorney’s Office for the District of New Jersey, who provided valuable support to the prosecution team.
Lafayette business owner sentenced to 37 months for mail fraud in connection with double billing schemeRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lafayette business owner was sentenced last week to 37 months in prison for mail fraud charge in a scheme where he double-billed the Calcasieu Parish school system for leased copiers.
Leonard Espree, 53, of Layette, was sentenced Friday by U.S. District Judge Donald E. Walter on one count of mail fraud. He was also sentenced to three years of supervised release and was ordered to pay $197,387.78 restitution. According to the January 12, 2017 guilty plea, Espree, who worked as a contractor providing and servicing copiers for the Calcasieu Parish School Board, sent a letter in November of 2011 to the school system announcing the refinancing of leases on equipment from the leasing company. He intentionally misidentified some of the office equipment in the new lease agreement. This created an effect where the same pieces of equipment were being leased twice to the school board. The result of the double billing during the overall scheme cost the school board and other customers $197,387.78. Espree received a portion of this money for his services, to which he was not entitled.
The FBI investigated the case. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
KC Man Sentenced to 25 Years for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for producing child pornography of a 2-year-old victim.
Conner Michael Webb, 28, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 25 years in federal prison without parole.
On Nov. 14, 2016, Webb pleaded guilty to producing child pornography.
The investigation began when the subject of a federal investigation and prosecution for child pornography in the District of Kansas was arrested in November 2015. Federal agents searched his computer and cell phone and found numerous chat conversations with Webb, who used the profile name of Kinky PedoBoy. During one of those conversations, the Kansas subject (who is not identified in court documents) sent Webb several images and videos of child pornography. Webb sent a pornographic video of the 2-year-old victim, taken with his cell phone, to the Kansas subject.
On Oct. 15, 2015, Webb asked the Kansas subject to send him something to “get me in the mood” before he picked up the 2-year-old victim, identified in court documents as “Jane Doe.” The Kansas subject sent Webb several images and videos of child pornography on his cell phone. On the afternoon of the same day, Webb sent a pornographic video he had just taken of Jane Doe to the Kansas subject’s cell phone.
A federal search warrant was executed at Webb’s residence on Dec. 2, 2015. Officers seized Webb’s computers, phones and computer media. Webb, who was at home during the search, was arrested.
Webb admitted that he been communicating with the Kansas subject for approximately six years.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Independence Man Charged with Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been charged in federal court with producing child pornography.
Travis Howard White, 24, of Independence, was charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wednesday, May 10, 2017. The complaint was unsealed and made public upon White’s arrest and initial court appearance this afternoon. White remains in federal custody pending a detention hearing.
The federal criminal complaint alleges that White used a 13-year-old victim to produce child pornography between May 14 and June 2, 2016.
According to an affidavit filed in support of the criminal complaint, the investigation began when law enforcement agents learned the victim, identified in court documents as Minor Victim 1, was living with White. She told investigators that she met White online in January 2016, when she was 13 years old and living in Kansas. They began “sexting” and exchanging sexually explicit nude photographs, she said. When she and her mother moved to Kansas City, Mo., in September 2016, they stayed at a hotel for a few days before her mother returned to Kansas and left her with White. The victim was placed in emergency police protective custody on March 1, 2017.
Investigators found numerous Facebook messages between White and the victim. Their conversations were of a sexual nature, the affidavit says, including instructions from White to the victim about what sorts of pictures to take and what sort of activity to engage in. The victim allegedly sent White several sexually explicit images of herself, the affidavit says, and White in turn sent her a nude image of himself. White also sent the victim approximately three dozen images depicting horses and dogs engaged in the sexually explicit abuse of females of varying and indeterminate age, according to the affidavit.
White told investigators he engaged in sexual activity with the victim at numerous locations in the metropolitan area, the affidavit says. White said he engaged in similar sexual discussions with approximately “50 to 100” other females, a number of whom were underage, via Facebook and other means. To date, investigators have identified approximately a dozen underage females with whom White has engaged in sexually explicit chat and online communications.
Larson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Idaho Resident Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Blackfoot, Idaho small business owner was sentenced today to 12 months and one day in prison for filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rafael M. Gonzalez Jr. for the District of Idaho.
According to documents filed with the court, from approximately 2009 through 2012, Jonathan Peirsol, 42, of Pocatello, Idaho, prepared false individual income tax returns under the name JJ Accounting Inc. Peirsol falsified returns without his clients’ knowledge or consent by adding items such as medical and education expenses. For some of the returns, Peirsol also diverted -- without his clients’ knowledge -- portions of the refunds sent by the Internal Revenue Service (IRS), arranging for these to be deposited into a bank account controlled by him. Peirsol also failed to report on his personal tax returns the fees he earned from his tax preparation business.
In addition to the term of prison imposed, Peirsol was ordered to serve one year of supervised release and to pay $62,441 in restitution to the IRS. Peirsol pleaded guilty to aiding and assisting in the preparation of a false tax return in March. In addition to running JJ Accounting, Peirsol owns and operates J&J Chemical Inc., a janitorial chemical supply company in Blackfoot.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Gonzalez thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Kathleen M. Barry of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Husband and Wife Sentenced for Armed RobberyRead the Press Release
Tampa, Florida –U.S. District Judge Virginia M. Hernandez Covington today sentenced Jacorian Rashawn Brown (24, Brandon) and Jessica Duenas Nicholas (45, Brandon) to federal prison for conspiracy and armed robbery. Brown was sentenced to 12 years and 9 months in federal prison, and Nicholas was sentenced to 4 years and 9 months’ imprisonment. As part of their sentences, the Court also entered a money judgment in the amount of $11,948, the proceeds of the charged criminal conduct.
Brown and Nicolas pleaded guilty on February 16, 2017.
According to court documents, on July 9, 2016, Brown and Nicholas robbed the Murphy USA gas station in Wimauma of $11,948. Ten days later, the couple attempted to rob the Murphy USA gas station in Gibsonton, but were unsuccessful. On July 23, 2016, Brown and Nicholas returned to the Wimauma gas station to attempt another robbery. However, they were arrested before the robbery could take place. Investigators recovered two semi-automatic pistols and nearly 100 rounds of ammunition from inside their vehicle.
This case was investigated by the Hillsborough County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Honduran National Indicted for Illegal ReentryRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Honduran national was indicted by a federal grand jury today for illegally reentering the United States.
Luis Arnold Lopez-Lara, 25, a citizen of Honduras residing in Brookline, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Lopez-Lara entered the United States without permission after having been deported on Feb. 16, 2010. Lopez-Lara was found in Greene County, Mo., on April 17, 2017.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and ICE Enforcement and Removal Operations.
Hartford Man Charged with Distributing Synthetic OpioidsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 4, 2017, a federal grand jury in Hartford returned an indictment charging SETH WATSON, 32, of Hartford, with distributing synthetic opioids.
WATSON appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges. He has been detained since his arrest on a federal criminal complaint on March 28, 2017.
According to allegations made in court, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department received information that WATSON was selling heroin and cocaine from a grocery store on Mather Street in Hartford. In February and March 2017, investigators made four controlled purchases of purported heroin from WATSON. Laboratory testing of purported heroin purchased during the first two transactions determined that the substance was fentanyl, furanylfentanyl and U-47700.
The indictment charges WATSON with two counts of possession with intent to distribute and distribution of fentanyl, furanylfentanyl and U-47700. If convicted, he faces a maximum term of imprisonment of 20 years on each count.
WATSON is currently serving a term of federal supervised release, and he faces additional penalties if he is found to have violated his supervised release.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County Resident Sentenced to Prison for Wire FraudRead the Press Release
COUNCIL BLUFFS, IA - On May 10, 2017heather Jean Reekr, Rodney Lee Crosby, Jr., a 35 year-old resident of Pisgah, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 27 months in prison following his conviction on one count of wire fraud, announced United States Attorney Kevin E. VanderSchel. Crosby was ordered to serve three years of supervised release following his imprisonment and pay $45,084 in restitution to the victims of his fraud scheme.
On January 30, 2017, Crosby pleaded guilty to the charge. This case was the result of a law enforcement investigation of Crosby’s scheme to defraud classic vehicle buyers through his business, Hot Rod Classics, in Pisgah, Iowa. The scheme involved Crosby accepting monetary down payments from classic car purchasers and then failing to deliver the vehicles to the buyers. The estimated loss to the victims was approximately $45,084, based on Crosby’s fraudulent conduct.
The Harrison County Sheriff’s Office and the Federal Bureau of Investigation conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Hamden Man Charged with Distributing Fentanyl Disguised as OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that AGUSTIN CIRINO, 29, of Hamden, has been charged in a federal criminal complaint with distributing fentanyl disguised as oxycodone.
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.
CIRINO was arrested on May 9, 2017. He appeared before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was released on a $100,000 bond.
As alleged in court documents, on March 9, 2017, the Hamden Police Department and emergency medical personnel responded to a Hamden residence where a 30-year-old male was found deceased. At the scene, investigators seized drug and non-drug evidence, including three suspected oxycodone tablets and the victim’s cellphone. The investigation revealed that the victim arranged to purchase oxycodone tablets from CIRINO on March 7 and March 8.
The DEA Northeast Laboratory subsequently determined that the seized tablets contained fentanyl, acetaminophen and dipyrone, not oxycodone. The Office of the Chief Medical Examiner also determined that the victim died as a result of “acute fentanyl toxicity, clonazepam, duloxetine use.”
The complaint charges CIRINO with possession with intent to distribute, and distribution of fentanyl, and with conspiracy to distribute and possess with the intent to distribute oxycodone. Each offense carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hamden Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Grand Jury Returns Indictment in Sexual Exploitation of a Child CaseRead the Press Release
KANSAS CITY, KAN. - A federal grand jury today indicted a Sedgwick County man on charges of sexually exploiting a child, U.S. Attorney Tom Beall said.
Ian Nathanial Smith, 20, Viola, Kan., is charged with one count of sexual exploitation of a child, one count of possessing child pornography and a new count of traveling across state lines to engage in sex acts with a child. Smith initially was charged in a criminal complaint filed May 4.
An investigator’s affidavit alleges Smith used social media to communicate over the internet with a 14-year-old girl in another state. He asked the girl to send him live streaming video of herself engaged in sexual activities. Investigators found child pornography on his phone, including 204 images and four videos.
If convicted, he faces not less than 15 years and not more than 30 years in federal prison on the charge of exploiting a minor, not less than 10 years and a fine up to $250,000 on the interstate travel charge and up to 10 years and a fine up to $250,000 on the possession charge. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER INDICTMENTS
Xzavier Christian Guliford, 24, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 18, 2017, in Jackson County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of alcohol, Tobacco, Firearms and explosives investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Juan Gabriel Barron-Hernandez, 33, who has been living in Wichita, Kan., is charged with one count of unlawful possession of a firearm by an unauthorized alien, one count of illegal possession of a sawed off shotgun and one count of unlawful possession of a firearm with the serial number removed. The crimes are alleged to have occurred March 16, 2017, in Sedgwick County, Kan.
If convicted he faces up to 10 years in federal prison and a fine up to $250,000 on each of the first two counts and up to five years and an fine up to $250,000 on third count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Ruth Noemy Galvan, 25 Long Beach, Calif., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred March 24, 2017, in Clark County, Kan.
If convicted, she faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Fourth Defendant Charged with Selling Controlled Substances in Exchange for Virtual Currencies on the Dark WebRead the Press Release
Two defendants sentenced for their participation in the scheme
A fourth defendant has been charged with selling controlled substances in exchange for virtual currencies on the Dark Web.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division; and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Joshua J. Kelly, a/k/a “USTOUS,” 32, of Cape Girardeau, MO, was charged by criminal complaint with one count of conspiracy to distribute in narcotics, in violation of Title 21, United States Code, Section 846, and one count of conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h) (Case No. 17-MJ-02572-JG).
In separate but related cases, Robert Kenneth Decker, a/k/a “DIGITALPOSSI2014,” 50, of Detroit, MI, (Case No. 16-CR-20769-DMM), and Chrissano S. Leslie, a/k/a “OWLCITY,” 26, of Lauderhill, FL, (Case No. 16-CR-60206-DTKH) were sentenced to 140 months and 70 months in prison, respectively, to be followed by three years of supervised release. These defendants both previously pled guilty to one count of conspiracy to distribute controlled substances and one count of conspiracy to commit money laundering. Leslie also pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
In another separate but related case, Kevin C. Fusco, a/k/a “POLIRA,” 29, of New York, NY, was charged by indictment with one count of conspiracy to distribute a controlled substance and one count of conspiracy to commit money laundering (Case No. 17-CR-20275-UU).
These cases are part of a criminal investigation into drug dealers operating on online through "Dark Web" criminal marketplaces designed to promote the anonymous sale of illegal items, such as narcotics, in exchange for Bitcoin and other virtual currencies.
Specifically, since July of 2015, law enforcement identified a narcotics vendor known as OWLCITY (identified as defendant Leslie) appearing on several criminal Dark Web marketplaces. On several occasions, DEA agents made undercover online purchases of controlled substances from OWLCITY and received the purchased narcotics, to include fentanyl, heroin, and alpha-PVP, via U.S. Mail.
Since September of 2015, law enforcement identified a narcotics vendor known as POLIRA (identified as defendant Fusco) appearing on Dark Web marketplaces. POLIRA conducted at least 492 transactions on at least two of these marketplaces. On both marketplaces, POLIRA advertised MDMA. On several occasions, DEA agents made undercover online purchases of MDMA from POLIRA and received the MDMA via U.S. Mail.
Since October of 2015, law enforcement identified narcotics vendors known as USTOUS and DIGITALPOSSI2014 (identified as defendants Kelly and Decker, respectively) on numerous dark web marketplaces. USTOUS conducted thousands of transactions on numerous Dark Web marketplaces, and on all of these marketplaces, USTOUS advertised dangerous opioids, synthetic drugs and Schedule II controlled substances for sale, including: fentanyl, heroin, methamphetamine, alpha-PVP and oxycodone. On several occasions, DEA agents have made undercover online purchases of heroin, alpha-PVP ("Flakka") and MDMA from USTOUS and made undercover online purchases of hydrocodone from DIGITALPOSSI2014, and received the drugs via U.S. Mail.
These defendants conspired with the unknown administrators of criminal online marketplace websites to distribute controlled substances, and conspired with the unknown administrators of these websites to knowingly conduct financial transactions, in virtual currencies, involving the proceeds of unlawful narcotics trafficking activities, knowing that the transactions were designed to conceal and disguise the nature of the proceeds.
These matters are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the investigative efforts of the DEA, IRS-CI, FBI, USPIS and ICE-HSI. The cases are being prosecuted by Assistant United States Attorney Frank Maderal.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Sumter Visitor Indicted on Federal ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Noah Sigalas, age 21, of Sullivan’s Island, South Carolina, was indicted by a federal grand jury on charges of damaging and defacing an archaeological resource (Fort Sumter) in violation of the Archeological Resources Protection Act, a violation of Title 16, United States Code, Section 470ee(a) and committing a depredation against property of the United States by forcibly pulling on a support pole or support bar which was stabilizing part of a casemate wall along the north flank of Ft. Sumter, causing damage in excess of $1,000, a violation of Title 18, United States Code, Section 1361.
United States Attorney Beth Drake stated that protecting the archeological resources of our district is important. “One of the main purposes of the Archeological Resources Protection Act was to provide for the enforcement of penalties against those who loot or vandalize valuable archeological resources. Prosecuting cases under this Act helps to send a message to those who visit our national parks that these historical locations should be preserved rather than vandalized.”
Ben Byrnes, Chief Ranger of Visitor and Resource Protection for Fort Sumter National Monument, said that law enforcement for the Parks Service vigorously investigates potential violations of law and takes acts of vandalism very seriously. He noted that the Fort system is a valuable resource for history and culture, and for learning for students. “The personal significance of Fort Sumter may be different for many people – but it is one of this country’s most recognized National Monuments. Fort Sumter’s construction began in 1829, and the brick Fort was unfinished when it was fired upon April 12, 1861 – starting the American Civil War. The Fort, reduced in size after years of war, retains many of its original bricks, made in the Low Country by enslaved African Americans. In fact, 90% of the bricks visitors see at the Fort today are original bricks. Seeing those unique and original bricks when you visit Fort Sumter is a powerful and humbling experience. These are not cast concrete blocks that are easily replaced. There is no machine to make ‘new’ handmade bricks from prior to 1860. Destroying any part of Fort Sumter brick is like literally erasing a page from the history of the United States.”
Acting Park Superintendent Laura Segars praised the work of the National Park Service investigators in investigating the case. She said that the Park Service was increasing its law enforcement presence in the local parks to prevent pilfering, theft, and vandalism. She noted that sometimes people steal bricks from the Fort, which is a federal crime.
Regarding potential penalties Sigalas faces, for a violation of 18 U.S.C. § 1361 (depredation of property of the United States), the potential penalty is a term of imprisonment of 10 years, a fine of $250,000.00, a term of supervised release of 3 years and a special assessment of $100.00. For a violation of 16 U.S.C. § 37022(a) (the Archeological Resources Protection Act), the potential penalty is a term of imprisonment of 2 years, a fine of $20,000.00, a term of supervised release of 3 years and a special assessment of $100.
Assistant United States Attorney Sean Kittrell is prosecuting the case and Special Agent Chris Schrader, from the Investigative Services Branch of the National Park Service, is the lead investigator.
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.
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Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”
“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”
“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”
Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns.
Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.
Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida prosecuted the case.
Former U.S. Congresswoman Corrine Brown Guilty of Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Jacksonville, FL – Former U.S. Congresswoman Corrine Brown was convicted by a federal jury in Jacksonville, Florida, today for her role in a conspiracy and fraud scheme involving a fraudulent scholarship charity.
Acting U.S. Attorney W. Stephen Muldrow, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville, Florida, Division and Chief Richard Weber of the of Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Former Congresswoman Brown chose greed and personal gain over the sacred trust given to her by the community that she served for many years,” said Acting U.S. Attorney Muldrow. “These guilty verdicts underscore our Office's resolve in holding public officials at all levels of government accountable for their actions. In this case, former Congresswoman Brown stole money that was donated on the false promise of helping further the educational goals of underprivileged children.”
“Former Congresswoman Corrine Brown violated the public trust, the honor of her position, and the integrity of the American system of government when she abused one of the most powerful positions in the nation for her own personal gain. She shamefully deprived needy children of hundreds of thousands of dollars that could have helped with their education and improved their opportunities for advancement, and she lied to the IRS and the American public about secret cash deposits into her personal bank accounts,” said Acting Assistant Attorney General Blanco. “The Department of Justice is committed to fighting corruption and fraud wherever we find it, at all levels of government, regardless of their power and influence.”
“Former Congresswoman Brown took an oath year after year to serve others, but instead she exploited the needs of children and deceived her constituents to advance her own personal and political agendas,” said Special Agent in Charge Spencer. “Corrupt public officials undermine the integrity of our government and violate the public’s trust, and that is why investigating public corruption remains the FBI’s top criminal priority. I am proud of our special agents, analysts and support personnel who spent countless hours following the money trail in this case, and thank our law enforcement partners at the IRS-CI and U.S. Attorney’s Office for their efforts to hold Brown and her associates accountable for their inexcusable actions.”
“Former Congresswoman Corrine Brown failed to deliver and uphold her duty to file true and correct tax returns by lying about her income and charitable contributions to feed her greed. No one is above the law, including those in a position of public trust, and there isn’t a separate standard when it comes to paying taxes, said Chief Weber. “IRS CI, along with our law enforcement partners, will hold accountable those who violate the tax laws and cheat the taxpayers.”
Brown, 70, of Jacksonville, was convicted on 18 counts of an indictment charging her with participating in a conspiracy involving a fraudulent education charity, concealing material facts on required financial disclosure forms, obstructing the due administration of the internal revenue laws and filing false tax returns. The jury also found Brown guilty of violating the Ethics in Government Act by concealing certain income on the required annual financial disclosure forms she submitted to the U.S. House of Representatives.
Judge Timothy J. Corrigan of the Middle District of Florida noted that he would schedule Brown’s sentencing for a later date.
Brown’s co-conspirators, Elias “Ronnie” Simmons, Brown’s long-time Chief of Staff, and Carla Wiley, the president of the fraudulent charity, previously pleaded guilty to their roles in the education charity scheme on Feb. 8, 2017, and March 3, 2016, respectively.
Evidence at trial showed that between late 2012 and early 2016, Brown participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which Brown, Simmons, Wiley and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other charitable causes. Testimony by One Door donors showed that Brown and her coconspirators solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives. Many of the donors were led to believe that One Door was a properly registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to Brown’s representations, Brown, Simmons, Wiley and others used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts, according to trial evidence. In one instance, Simmons deposited $2,100 of One Door funds into Brown’s personal bank account the same day that Brown paid $2,057 to the IRS for taxes she owed. Likewise, trial evidence showed Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use.
Trial evidence also showed that more than $300,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area. According to trial evidence, despite raising over $800,000 in donations, One Door granted only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Additionally, trial evidence demonstrated that Brown failed to disclose, among other things, the reportable income she received from One Door and claimed deductions on her tax returns based on false statements that she made certain donations to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
The FBI and IRS-CI investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Owner of Chicago Rush Football Team Sentenced to More Than Three Years in Federal Prison for Concealing Debts in Bankruptcy PetitionRead the Press Release
CHICAGO — The former owner of the Chicago Rush football franchise was sentenced today to more than three years in federal prison for concealing debts in his personal bankruptcy case and overstating his net worth when acquiring the football team.
In his 2013 bankruptcy filing, DAVID STARAL did not disclose that he was on probation for theft and that he was subject to a restitution order of $250,000. He also failed to disclose several bank accounts. During his efforts to purchase the Chicago Rush in February 2013, Staral provided the Arena Football League with a personal balance sheet that falsely represented his net worth as more than $5 million. In reality, Staral at that time had a negative net worth and had recently filed the bankruptcy petition.
Based on the false representation about his net worth, he defrauded the AFL into selling the Chicago Rush to him. A few months later the league took over the team from him. The Rush disbanded after the conclusion of its 2013 season.
Staral, 38, of Chicago, pleaded guilty last year to one count of bankruptcy fraud and one count of wire fraud. U.S. District Judge Ronald A. Guzman imposed the 41-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago office of the U.S. Trustee Program provided valuable assistance.
“Given the defendant’s total lack of financial ability to operate the Rush, his ownership of the team was predictably brief and disastrous,” Assistant U.S. Attorney Matthew F. Madden argued in the government’s sentencing memorandum. “The defendant caused significant harm to the team’s and league’s brand and reputation.”
In addition to the bankruptcy fraud and his deception in acquiring the Rush, Staral also admitted in his plea agreement that he swindled two individuals out of a combined $89,000. In January 2010, Staral promised a woman that he would invest $39,000 of her money in a restaurant venture. Instead, Staral converted the money to his own benefit. In September 2012, Staral promised another woman that if she gave him $50,000, he would invest it and generate a monthly return of $2,000 to $3,000. Staral instead used her money to, among other things, pay his criminal restitution obligation.
Former Harlem Restaurant Owner Pleads Guilty to Engaging in Multimillion-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that HAMLET PERALTA pled guilty today to wire fraud in connection with his scheme to obtain money from investors by fraudulently representing that he was using their investments to further a profitable, multimillion-dollar wholesale liquor business. PERALTA pled guilty before United States District Judge Katherine B. Forrest. Sentencing has been scheduled for September 8, 2017, at 10:00 a.m.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Hamlet Peralta swindled millions of dollars from unsuspecting investors who trusted him because of his reputation in the community as a business owner and restaurateur. As Peralta has now admitted, instead of being an honest broker, he stole their money and used it to fund his own lavish lifestyle and to further a massive Ponzi scheme.”
According to the Complaint and Indictment filed in Manhattan federal court and today’s plea proceeding:
From 2013 through 2014, PERALTA solicited more than $12 million from multiple investors by falsely representing that the investors’ money would be used to engage in wholesale liquor distribution for a profit. He made these promises both orally and in written contracts. To bolster the supposed bona fides of his fictitious business, he provided investors with forged invoices and other documentation, purporting to establish the high volume of liquor he both bought from licensed wholesalers in New York and sold to wholesale and retail clients for a profit.
In truth and in fact, however, PERALTA misappropriated the millions of dollars in investments he received. He took out much of the money in cash and used some of it to both support his lifestyle and rehabilitate a failing restaurant he owned. Because he purchased very little liquor and had no profits with which to pay back investors, he then began borrowing large sums of money from new investors on the false promise that he was investing that money in the liquor business, and used that money to repay prior investors.
In or about 2013, for example, PERALTA told a prospective investor (“Investor-1”) who was a frequent customer at PERALTA’s restaurant and who had become friendly with PERALTA that he (PERALTA) owned a separate business called West 125th Street Liquors and that he had been approved as an exclusive wine distributor to a major national restaurant supply company (the “Restaurant Supply Company”) that was beginning a wholesale wine business. PERALTA told the investor that he would receive significant interest on his investments, based on profits from the wholesale liquor distribution business. In truth and in fact, however, PERALTA did not own West 125th Street Liquors, and he had not been approved to be a distributor for the Restaurant Supply Company. Indeed, neither PERALTA nor West 125th Street Liquors ever supplied anything to the Restaurant Supply Company. PERALTA also provided vestor-1 with fake documentation on the Restaurant Supply Company’s letterhead, falsely representing that the Restaurant Supply Company would be electronically transferring PERALTA $1,826,350 within seven days.
Investor-1 provided PERALTA with more than $3.5 million over the course of the next year, a substantial portion of which was used to pay back other investors. Ultimately, PERALTA owed Investor-1 approximately $2 million. In all, PERALTA, who obtained approximately $12 million from investors, failed to pay back millions of dollars of that money.
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PERALTA, 37, of the Bronx, New York, has pled guilty to one count of wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kan M. Nawaday, Russell Capone, Martin S. Bell, and Lauren Schorr are in charge of the prosecution.
Former Army Contractor Pleads Guilty to Bribery Scheme Involving Contracts at Aberdeen Proving GroundRead the Press Release
Baltimore, Maryland – On May 10, 2017, Matthew Barrow, age 43, of Toledo, Ohio, pleaded guilty to bribery charges related to contracting at the U.S. Army Communications-Electronics Command headquartered at Aberdeen Proving Ground (APG), in Harford County, Maryland.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in March 2006, the U.S. Army Contracting Command at APG awarded a 10-year, $19.2 billion contract to seven prime contractors to provide technology services to support the integrated engineering, business operations, and logistics needs for the Army. Former Army officials John and Danielle Kays each had leadership positions related to this contract. From September 2006 through April 2011, a series of task orders for services pursuant to the contract were placed.
John and Danielle Kays were civilian employees who represented the Army on these types of multi-year contracts. From January 2011 until his resignation from government service in July 2014, John Kays held the position of Deputy Project Manager for Mission Command, in effect the number two position for Mission Command. From June 2009 through June 2012, Danielle Kays was the Deputy Director of the Technical Management Division, and from 2012 until her resignation from government employment in October 2015, Danielle Kays was the Product Director of Common Hardware Systems. Barrow was the President and owner of MJ-6, LLC, a company which he and his wife formed in Ohio in 2008 to obtain military subcontracts. From June 2008 through August 2010, Barrow was also employed as a procurement manager by a glass company in Ohio.
From August 2008 to June 2014, John and Danielle Kays agreed to take official actions favorable to Barrow and MJ-6 in return for Barrow paying them a total of approximately $800,000. Specifically, the Kays used their official positions to add MJ–6 as a subcontractor acceptable to the Army, to steer potential employees for government contractors to work for MJ-6, to approve MJ-6 employees to work on various TOs, and to approve the pay rates, status reports, and travel reimbursements for MJ-6 employees. The Kays steered subcontracts worth approximately $21 million to MJ-6.
In order to conceal their corrupt relationship Barrow caused the glass company he worked for to purportedly enter into contracts and make payments to Transportation Logistics Services, LLC, a company incorporated by John Kays; and later made payments to the Kays in cash, which Barrow allegedly withdrew from his personal accounts and from MJ-6 accounts. Barrow withdrew the money in amounts less than $10,000 to avoid bank reporting requirements. To further conceal the scheme, John and Danielle Kays made false statements on the government ethics forms that they were required to file by failing to disclose the cash payments received from Barrow.
Barrow faces a maximum sentence of 15 years in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for January 12, 2018, at 11 a.m.
John and Danielle Kays have been indicted and are pending trial.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
Acting United States Attorney Stephen M. Schenning commended the DCIS, Army Criminal Investigation Command, and FBI for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Joyce K. McDonald and Harry M. Gruber, who are prosecuting the case
Florida Man Charged with Robbing Stratford BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 19, 2017, a federal grand jury in New Haven returned an indictment charging ROBERT ABEL, 54, of St. Augustine, Florida, with one count of bank robbery.
The indictment alleges that on February 17, 2017, ABEL used force, violence and intimidation to rob $1,517 from a branch of Webster Bank located at 450 Barnum Avenue Cutoff in Stratford.
ABEL appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charge. He has been detained since his arrest on related state charges on February 17, 2017.
If convicted of the charge, ABEL faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Stratford Police Department and Milford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Five Individuals Convicted for Federal Conspiracy to Commit KidnappingRead the Press Release
TYLER, Texas – A 22-year-old Zwolle, LA man has been sentenced to federal prison for his part in a kidnapping conspiracy scheme targeting individuals in the Eastern District of Texas and surrounding area, announced Acting U.S. Attorney Brit Featherston today
Gary Cutright pleaded guilty on Jan. 10, 2017, to conspiracy to commit kidnapping and was sentenced to 156 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, between July 2014 and January 2016, Cutright conspired with several individuals to commit kidnapping, robberies and assaults throughout the Eastern District of Texas and the Western District of Louisiana. Specifically, Cutright and his codefendants are responsible for a December 2015 incident in which an individual was kidnapped in Louisiana and brought to Carthage, Texas. Defendants were also responsible for a March 2016 incident in which an individual was kidnapped from Longview, Texas.
Other defendants convicted in the conspiracy include:
Cory Carnell Mitchell, 29, of Tenaha, Texas pleaded guilty on Jan. 9, 2017, to conspiracy to commit kidnapping and was sentenced to 262 months in federal prison by U.S. District Judge Ron Clark on April 5, 2017.
Montonious Robinson, 22, of Shreveport, LA, pleaded guilty on Ja. 10, 2017, to conspiracy to commit kidnapping and was sentenced to 168 months in federal prison on May 4, 2017 by U.S. District Judge Thad Heartfield.
Christopher Douglas, 33, of Logansport, LA, pleaded guilty on Apr. 6, 2017 in the Western District of Louisiana, to conspiracy to commit kidnapping and will be sentenced at a later date.
Quannell Newton, 37, of Many, LA, pleaded guilty on Nov. 16, 2016, to conspiracy to commit kidnapping and was sentenced to 135 months in federal prison by U.S. District Judge Ron Clark on Feb. 21, 2017.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, Explosives (ATF) and the Texas Department of Public Safety – Criminal Investigation Division – Tyler (DPS-CID). The United States Marshals Service (USMS), Federal Bureau of Investigation (FBI), Lufkin Police Department, Nacogdoches Police Department, Center Police Department, Carthage Police Department, DeSoto Parrish Sheriff’s Department, Sabine Parrish Sheriff’s Department and the Panola County Sheriff’s Department assisted in the execution of the arrest warrants. The cases are being prosecuted by Assistant U.S. Attorney Paul A. Hable in the Eastern District of Texas and by Assistant U.S. Attorney James Cowles in the Western District of Louisiana.
Federal Jury Convicts Albuquerque Woman on Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict yesterday afternoon finding Albuquerque resident, Sandra Cook, 53, guilty on methamphetamine trafficking charges after a three-day trial. Acting U.S. Attorney James D. Tierney, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Sheriff Manuel Gonzales, III, of the Bernalillo County Sheriff’s Office (BCSO), announced the verdict.
Cook was arrested on Feb. 24, 2016, on an indictment charging her with possessing methamphetamine with intent to distribute on June 30, 2015. The indictment was superseded on Feb. 28, 2017, and added a second methamphetamine trafficking charge alleging that Cook also possessed methamphetamine with intent to distribute on Feb. 24, 2016. According to the superseding indictment, Cook committed the crimes in Bernalillo County, N.M.
Cook’s trial began on May 8, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict against Cook on both counts of the superseding indictment.
The testimony at trial established that on June 30, 2015, BCSO officers executed a search warrant at Cook’s residence where they seized multiple bundles of methamphetamine weighing approximately 3.2 kilograms (7.2 pounds) and over $22,000 in cash. Following the filing of charges against her based on the methamphetamine seizure, Cook evaded capture by law enforcement and the BCSO and HSI conducted an investigation to find her
Other evidence introduced during the trial included the testimony of HSI agents establishing that in Feb. 2016, HSI used a court-authorized GPS tracker and data from Cook’s cell phone to locate Cook at a residence in Albuquerque. On Feb. 24, 2016, agents executed a search warrant at that residence where they located Cook standing near a kitchen table on which an open tool bag was sitting. The tool bag contained her driver’s license and a bag of 100% pure methamphetamine weighing approximately 441.6 grams.
The jury deliberated approximately one hour before returning its guilty verdict.
Cook was remanded into custody after the verdict was returned and will remain detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Cook faces a mandatory minimum penalty of ten years and a maximum of life in federal prison.
This case was investigated by HSI and BCSO and is being prosecuted by Assistant U.S. Attorneys Alexander M. Uballez and Peter J. Eicker.
Federal Indictment Charges Two U.S. Citizens and Four Chinese Nationals with Marriage Fraud SchemeRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced the filing of an indictment against two U.S. citizens and four Chinese nationals on charges arising out of an alleged scheme to obtain immigration status for foreign nationals through fraudulent marriages.
The indictment charges Yi Lee, 44, a naturalized U.S. citizen who had been residing in Santa Fe, N.M., Santiago Aveles, 31, of Las Cruces, N.M., and Chia-Jung Chang, 39, Dan Zheng, 32, Lian Xiang Deng, 42, and Xiao-Yin Le, 50, who are Chinese nationals illegally in the United States, with participating in a conspiracy to commit marriage fraud. It also charges Aveles and Zheng with committing marriage fraud for the purpose of evading the federal immigration laws.
Aveles, Chang, Zheng, and Deng, who were arrested last week, were arraigned in federal court in Las Cruces, N.M., this afternoon. Each entered a not guilty plea during this afternoon’s arraignment hearings. The three Chinese nationals were ordered detained pending trial and Aveles was released under pretrial supervision and other conditions of release. The fifth and sixth defendants, Yi Lee and Xiao-Yan Le, have yet to be arrested and are considered fugitives.
The indictment alleges that from June 2016 through March 2017, the six defendants conspired to obtain immigration status for foreign nationals by committing marriage fraud. The scheme allegedly involved having utilizing U.S. citizens enter into fraudulent marriages with foreign nationals in return for financial gain. Lee allegedly facilitated the conspiracy by arranging meetings between foreign nationals and U.S. citizens in order to obtain marriage licenses, working permits and green cards for the foreign nationals who paid Lee and the U.S. citizens. According to the indictment, Lee allegedly attempted to arrange fraudulent marriages between certain of his co-defendants and undercover law enforcement agents.
If convicted of the charges in the indictment, each of the defendants faces a maximum penalty of five years of imprisonment on the conspiracy charge, and Avelez and Zheng each face a maximum penalty of five years of imprisonment on the marriage fraud charge. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of HSI and is being prosecuted by Assistant U.S. Attorney Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office.
Father and Son Pair Charged with Gunpoint Robbery and Kidnapping in Bronx Home InvasionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Ashan M. Benedict, the Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), announced today the filing of a criminal complaint charging JORDANY FRIAS-ROSARIO, a/k/a “Julio,” and PEDRO CASTILLO, a/k/a “Juan Antonio Frias,” with robbery, kidnapping, and use of a firearm during the commission of a crime of violence. As alleged, FRIAS-ROSARIO and CASTILLO committed a home invasion robbery in the Bronx on March 30, 2017, and forcefully tied up two victims, including a 7-year-old boy with autism. FRIAS-ROSARIO was arrested in Utica, New York, this morning and will be presented this afternoon before the Honorable Thérèse Wiley Dancks. CASTILLO is still at large, and the general public is encouraged to contact Crime Stoppers at 800-577-TIPS (800-577-8477) with any information on CASTILLO’s whereabouts.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The defendants are charged with a callous crime of violence. They allegedly terrorized two people at gunpoint during a home invasion robbery, tying up a 7-year-old autistic child and pistol-whipping an adult. We commend our partners at the ATF and NYPD for the exemplary work that led to the charges today.”
ATF SAC Ashan M. Benedict said: “The defendants are alleged to have brazenly and viciously committed a gunpoint home invasion, during which one victim was tied up and violently assaulted in the presence of the second victim, an autistic child, who was also tied up. Such acts of violence and depravity will not be tolerated, and the defendants will now face justice for their actions. I would like to express my gratitude to the ATF Special Agents and NYPD Detectives assigned to the ATF SPARTA Task Force for their hard work throughout this investigation, and the many others in which they are successfully targeting armed robbers for arrest and prosecution. I would also like to thank the United States Attorney’s Office for their continued partnership and dedication in pursuing the prosecution of violent offenders.”
According to the Complaint[1] filed in Manhattan federal court:
On March 30, 2017, JORDANY FRIAS-ROSARIO, a/k/a “Julio,” and PEDRO CASTILLO, a/k/a “Juan Antonio Frias,” committed a home invasion robbery in the Bronx, New York (the “Robbery”). During the course of the Robbery, FRIAS-ROSARIO and CASTILLO brandished a firearm and forcefully tied up two victims (“Victim-1” and “Victim-2”). Victim-1, a 66-year-old man, was pistol whipped, leaving a deep gash over his left ear. Victim-2, a 7-year-old boy with autism, was also tied up during the course of the Robbery.
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FRIAS-ROSARIO, 24, of the Bronx, was arrested this morning. CASTILLO, 56, also of the Bronx, is still at large and the general public is encouraged to call Crime Stoppers with any information on CASTILLO’s whereabouts. FRIAS-ROSARIO and CASTILLO are each charged with robbery, kidnapping, and using a firearm during the commission of a crime of violence; the charge carries a maximum sentence of life in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the efforts of the NYPD and ATF in this investigation, specifically the Bronx Robbery Squad and the Joint Robbery Task Force.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacob Warren and Michael Longyear are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint forth herein constitute only allegations, and every fact described should be treated as an allegation.
Elkins man guilty of manufacturing and using counterfeit moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Francis Silvester, III, 38, of Elkins, West Virginia, was convicted today of making and possessing counterfeit money, Acting United States Attorney Betsy Steinfeld Jividen announced.
Silvester pled guilty to one count of “Uttering Counterfeit Obligations and Securities.” He admitted to passing a counterfeit bill in August 2016 at a business in in Elkins, West Virginia.
Silvester faces up to 20 years incarceration and a $250,000 fine.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Elkins Police Department are investigating the case.
U.S. Magistrate Judge Michael John Aloi presided.
Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance and Concealing a Person from Arrest.
Braxtyn Melecca Jo Garreau, age 21, was indicted on April 12, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 21, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance is up to 20 years in custody and/or a $1,000,000 fine, and a lifetime of supervised release. The maximum penalty upon conviction for Concealing a Person from Arrest is up to 5 years in custody and/or a $250,000 fine, and 3 years of supervised release. Both charges require a payment of $100 to the Federal Crime Victims Fund and restitution may also be ordered.
The Indictment alleges that between January of 2014 and April of 2017, Garreau knowingly and intentionally conspired with others to distribute methamphetamine, a Schedule II controlled Substance, within the district of South Dakota. The Indictment also alleges that Garreau possessed methamphetamine with the intent to distribute it on February 23, 2017, in Eagle Butte. The Indictment further alleges that between November 22, 2016 and February 6, 2017, Garreau harbored and concealed Emmett Traversie, so as to prevent his discovery and arrest on an alleged bond violation.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
This case is being investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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Eagle Butte Female Sentenced for Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, female convicted of two counts of Distribution of a Controlled Substance was sentenced on April 17, 2017, by U.S. District Judge Roberto A. Lange.
Ree Amber Eagle Staff, age 34, was sentenced to 16 months in custody and 4 years of supervised release on each count, to run concurrently, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Eagle Staff was indicted by a federal grand jury on August 16, 2016. She pled guilty on January 30, 2017.
On July 28 and 29, 2016, in Eagle Butte, Eagle Staff distributed methamphetamine, a Schedule II Controlled Substance, to other persons.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Eagle Staff was immediately turned over to the custody of the U.S. Marshals Service.
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Dupree Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, woman convicted of two counts of Distribution of a Controlled Substance was sentenced on April 24, 2017, by U.S. District Judge Roberto A. Lange.
Skyla Rae Alyce Dupris a/k/a Skyla Dupree, age 25, was sentenced to 6 months in custody and 3 years of supervised release on each count, to run concurrently, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $200.
Dupris was indicted by a federal grand jury on December 14, 2016. She pled guilty on February 7, 2017.
On June 23, 2016 and July 21, 2016, in Eagle Butte, Dupris knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to other persons.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Dupris was immediately turned over to the custody of the U.S. Marshals Service.
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District of Columbia Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Greenbelt, Maryland – On May 10, 2017, U.S. District Judge George J. Hazel sentenced Adarryl Hayes, a/k/a Prince, a/k/a Crummy, age 23, of Washington D.C., to 10 years in prison, followed by 10 years of supervised release, for sex trafficking of two minors.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, from February 1, 2016 through February 24, 2016, Hayes recruited a 14-year old minor (Victim 1) and a 17-year old minor (Victim 2) to engage in commercial sex acts. Hayes used a website to advertise prostitution services for both victims.
Hayes directed Victim 1 and Victim 2 to communicate with clients and potential clients that called. Hayes would rent and transport the victims to hotels throughout Maryland to meet with their clients. After each date, the victims gave the prostitution proceeds to Hayes. Hayes did not allow Victim 1 to retain any of the proceeds, but would purchase condoms, food, clothing, toiletries, and other necessities for Victim 1.
On February 24, 2016, an undercover officer with Prince George’s County Police Department contacted the telephone number on the advertisement for Victim 1. The undercover officer and Victim 1 agreed to a price. Victim 1 directed the undercover officer to a hotel in Capitol Heights, Maryland. After asking if Victim 1 was alone, Victim 1 let the undercover officer know that Victim 2 would also be in attendance; the undercover officer agreed for a price for both victims. After arriving at the hotel room and Victim 1 accepting the money, the undercover officer identified himself as a police officer.
Immediately following the undercover operation, Hayes was located in the hotel parking lot where he was placed under arrest.
Acting United States Attorney Stephen M. Schenning commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Nicolas A. Mitchell, who prosecuted the case.
District Man Sentenced to 10-Year Prison Term for Shooting at People and Vehicles in Northwest WashingtonRead the Press Release
WASHINGTON – Marc S. Jeffers, 23, of Washington, D.C., has been sentenced to 10 years in prison on charges stemming from an incident in which he randomly shot a gun at vehicles and passersby on a busy street in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Jeffers pled guilty in March 2017, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and possession of a firearm during a crime of violence. The plea, which was subject to the Court’s approval, called for a 10-year prison term. The Honorable Hiram E. Puig-Lugo accepted the plea on May 10, 2017, and sentenced Jeffers accordingly. Following his prison term, Jeffers will be placed on a period of supervised release.
According to the government’s evidence, on Sept. 7, 2016, shortly before 1:45 p.m., Jeffers was walking on Georgia Avenue NW, headed towards Randolph Street, while armed with a semi-automatic handgun. Jeffers came out of a restaurant at Georgia Avenue and Quincy Street NW and shot the handgun three times into the ground. He then pointed the gun at two people who exited the restaurant immediately before him and shot at them.
Jeffers then continued to walk on Georgia Avenue, pointing the gun at people on the street and then at a bus. He also shot his handgun at a four-door sport utility vehicle. As the motorist in the SUV was driving north in the 3700 block of Georgia Avenue, he heard several gunshots coming from his left side. The motorist felt his vehicle being hit and drove away. When he eventually flagged down officers to report what had happened, the motorist saw that a bullet struck the rear passenger door of his car, causing damage to the door.
Jeffers then walked into the middle of the street from the east side of the 3800 block of Georgia Avenue and fired several shots at another Metrobus that was traveling on the block. Several riders on the bus reported seeing Jeffers continue to walk northbound on Georgia Avenue as he fired the handgun. Several riders got on the floor of the bus to take cover.
An officer with the Metropolitan Police Department (MPD) was in a Safeway in the 3800 block of Georgia Avenue when multiple people came into the store to report that a man was walking northbound on Georgia Avenue and shooting a handgun at passersby. The officer left the Safeway on his mountain bike and saw Jeffers across the street. The officer approached Jeffers, got off his mountain bike, took cover behind a sports utility vehicle parked on the west side of the street, and ordered Jeffers to drop his firearm. Jeffers ignored the commands and continued along Georgia Avenue. Jeffers then pointed his handgun north on Georgia Avenue and began shooting at an unknown subject. Once Jeffers began shooting, the officer left his cover behind the sports utility vehicle and approached him. According to the government’s evidence, the officer discharged his service weapon in an attempt to disarm Jeffers, who briefly fell to his knees, but did not drop the handgun. The officer continued to order Jeffers to drop the handgun, but Jeffers got up off his knees, and continued to walk north on Georgia Avenue. Jeffers then lifted the gun up to his chest level, at which point the officer discharged his weapon again. Jeffers was hit twice by the officer’s gunfire and fell to the ground.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham expressed appreciation for the work of those who handled the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Debra McPherson and Lashaune Briggs. Finally, they commended the work of Assistant U.S. Attorney Sonali D. Patel, who investigated and prosecuted the case.
District Man Pleads Guilty to Three Armed Robberies of Commercial Establishments in Washington, D.C.Read the Press Release
WASHINGTON – Anthony Burns, 23, of Washington, D.C., pled guilty today to federal conspiracy, robbery, and weapons offenses for a series of armed robberies in late 2015 that targeted commercial businesses, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Burns pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to interfere with interstate commerce by robbery, three counts of interference with interstate commerce by robbery, and one count of using, carrying, brandishing and possessing a firearm during a crime of violence. He is to be sentenced on July 25, 2017, by the Honorable Amy Berman Jackson. He faces a statutory maximum of 20 years in prison on each of the conspiracy and robbery charges, and a possible life prison term for the weapons offense. Under federal sentencing guidelines, he faces a likely range of 130 to 141 months in prison and a potential fine of $15,000 to $150,000. He also is subject to orders of restitution and forfeiture.
Burns remains held without bond pending sentencing. Three other defendants have pled guilty to federal charges related to their roles in the armed robberies, which targeted stores in Washington, D.C. and Maryland. They include Gregory Hull, 23, of Suitland, Md; Breyon Lee, 23, and Lee’s brother, Bradley Lee, 21, both of Washington, D.C. All are awaiting sentencing.
According to the government’s evidence, on Nov. 27, 2015, at approximately 2 p.m., store surveillance video captured Burns, Hull, and an unidentified co-conspirator, who were masked and armed with handguns, as they robbed the City Beats shoe store, in the 3000 block of Martin Luther King, Jr. Avenue SE. The men ordered everyone in the store to get on the floor. Burns approached a store employee with his gun drawn and demanded that the employee open the cash register. Burns, Hull, and their accomplice fled with approximately $1,594 in stolen cash and several pairs of stolen shoes.
According to the government’s evidence, on Dec. 13, 2015, at approximately 4:40 a.m., Burns and an unidentified co-conspirator entered the 7-Eleven convenience store in the 4600 block of South Capitol Street SW. Surveillance video showed that both men tried to conceal their identities using masks and hooded garments, and Burns was armed with a handgun. Burns pointed a gun at a store employee’s head, grabbed him behind the collar, and forced him behind the store counter. Burns demanded money from the cash register and a safe underneath the counter. When the employee was unable to open the register and safe, Burns struck him on the back of his head with the gun, causing a laceration. A second employee came out of the bathroom, and Burns’s accomplice forced the employee to open the cash registers. Burns and his accomplice grabbed an undetermined amount of cash from the registers and several packs of cigarettes and cigars.
About 40 minutes after the 7-Eleven robbery, government evidence shows, Burns and the accomplice entered another 7-Eleven store in the 900 block of Eastern Avenue NE, again wearing masks and hooded garments. Burns jumped over the counter and pointed the gun at the cashier, demanding money from the cash register. The employee opened both registers. Burns and his accomplice grabbed an undetermined amount of cash and fled.
Burns was arrested pursuant to an arrest warrant on December 29, 2015.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Acting Chief Newsham commended the actions of those who worked on the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Margaret Barr, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the work of Assistant U.S. Attorney Jamila Hodge, who is prosecuting the case.
Denmark Man Sentenced for Possessing a FirearmRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Sidney Davis, age 46, of Denmark, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possessing a firearm after being convicted of a felony, a violation of 18 U.S.C. § 922(g)(1) and possession of a stolen firearm, a violation of 18 U.S.C. § 922(j). United States District Judge J. Michelle Childs of Columbia sentenced Davis to 45 months incarceration followed by 2 years of supervised release and a special assessment of $200.00.
Evidence presented at the change of plea hearing established that on September 13, 2014, a 2-year old child died as a result of a single gunshot wound to his chest. The child was shot at Davis’ home. According to Davis, several children had entered his home through the unlocked back door. Davis stated he often provided food for the children that live nearby so they were frequently in and out of his home. The victim turned on the water faucet where the washing machine would have been. The other children left the home but the victim stayed behind. Davis was cleaning up the water on the floor when he heard a shot. He ran to the back bedroom and found the victim lying on the floor with a gunshot wound to the chest. Davis had left a stolen .40 caliber Smith and Wesson pistol on his bed. Davis picked up the child and ran next door where the child lived. Davis believed the pistol was stolen and kept it for protection. Davis had prior convictions for burglary and arson, which prevented him from possessing a firearm.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, South Carolina Law Enforcement Division, Bamberg County Sheriff's Department and Denmark Police Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Defense Attorney and Client Charged with Conspiracy to Smuggle Drugs into Anchorage JailRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a criminal defense attorney and her client have been charged for allegedly smuggling drugs into the State of Alaska Department of Corrections (DOC) Anchorage Correctional Complex (ACC) for distribution to inmates.
Kit Lee Karjala, 54, a criminal defense attorney in Anchorage, and her client, Christopher Brandon Miller, aka “Mellow,” 33, who is currently an inmate at ACC, have both been named in a criminal complaint that charges each of them with three federal crimes: (1) drug conspiracy; (2) distribution of, and possession with intent to distribute, controlled substances; and (3) providing and possessing contraband in a prison.
According to the affidavit filed in support of the criminal complaint, beginning as early as June 2016 and no later than December 2016, and continuing until the present, Karjala allegedly passed drugs to co-conspirator inmates, including Miller, during in-person attorney-client visits. Karjala represented Miller, but was not counsel of record for the other inmates with whom she allegedly conspired. Because Karjala represented to DOC that these meetings were allegedly professional visits, DOC permitted her to meet with Miller and the other co-conspirator inmates in a room with no physical barriers separating them. More specifically, after Karjala handed a package of drugs to the co-conspirator inmate during the visit, the inmate would hide the drugs inside his body, while Karjala attempted to shield the inmate from the view of DOC security cameras and/or personnel. When the inmate and Karjala concluded their meeting, the inmate transported the drugs inside his body back to his jail cell. The inmate later distributed the drugs to other ACC inmates for profit.
For example, as further detailed in the complaint, on May 2, 2017, Karjala requested a professional visit with Miller. During the meeting, Karjala allegedly passed drugs to Miller, who in turn hid them in his body. Per DOC procedure, Miller was subjected to dry-cell protocol from May 2 until May 5, 2017, during which Miller excreted multiple foreign objects, including a mixture and substance containing a distributable quantity of heroin, as well as suspected Suboxone strips.
The complaint details financial deposits between inmates that support the allegations of drug distribution, as well as transfers of money to accounts associated with Karjala from a co-conspirator inmate whom Karjala did not represent.
Karjala was arrested yesterday, May 10; Miller is in state custody. Karjala is scheduled to appear in federal court today at 11:00 AM before U.S. Magistrate Judge Kevin F. McCoy to face these charges.
The law provides for a maximum sentence of 20 years in prison and a fine of $1,000,000 or both for the most serious charges alleged in the complaint. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) and the Alaska State Troopers (AST) conducted the investigation, with substantial assistance from DOC, leading to the charges in this case.
“It is the responsibility of law enforcement to protect the public from drug traffickers, regardless of their stated profession. Drugs in the prison system endanger the welfare of not only inmates, many of whom are already struggling with drug addiction, but also jail personnel,” said Acting U.S. Attorney Bryan Schroder. “We will continue to work with the FBI, the Alaska State Troopers, and the Department of Corrections to investigate and prosecute people who endanger the welfare of our community and have a corruptive effect on our criminal justice system.”
“These arrests are a culmination of the working relationship between the FBI, the Alaska State Troopers, and the Department of Corrections,” said FBI Special Agent in Charge Marlin Ritzman. “The Bureau, AST, and DOC are dedicated to eradicating any illegal activity that takes place within our jurisdiction.”
Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Dayton Man Indicted on Terrorism ChargeRead the Press Release
DAYTON – A federal grand jury returned an indictment today charging Laith Waleed Alebbini, 26, of Dayton, Ohio, with one count of attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Alebbini allegedly attempted to provide support in the form of personnel, namely himself, to ISIS.
Acting Assistant Attorney General for National Security Dana Boente, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division and other members of the FBI’s Joint Terrorism Task Force (JTTF) announced the indictment.
Alebbini was arrested on April 26 at the Cincinnati/Kentucky International Airport and charged with the same crime by criminal complaint. He has remained in custody since his arrest.
Attempting to provide material support to a foreign terrorist organization is punishable by up to 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
The JTTF includes officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, Greene County Sheriff’s Office, Oakwood Police Department, West Chester Police Department and Cincinnati State Police Department.
U.S. Attorney Glassman commended the investigation of this case by the JTTF, as well as First Assistant Vipal J. Patel, Assistant U.S. Attorney Dominick S. Gerace and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section, who are prosecuting the case.
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