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11 May 2017
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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Convicted Felon, Living in Logan County, Kentucky, Charged with Possession and Attempted Distribution of MethamphetamineRead the Press Release
Charges include being a felon in possession of seven firearms and ammunition
BOWLING GREEN, KY – A convicted felon living in Logan County, Kentucky, was charged by grand jury indictment this week with possession with intent to distribute methamphetamine and with being a felon in possession of firearms and ammunition, announced United States Attorney John E. Kuhn, Jr.
Sherman Matthew Watkins, 40, who was residing in Russellville at the time of his arrest, was charged in a three count indictment, with one count of possession with intent to distribute five grams or more of methamphetamine a Schedule II controlled substance and two counts of being a felon in possession of seven firearms and ammunition. The alleged criminal activity took place in Logan County, on December 6, 2016.
At the time of his arrest Watkins was allegedly in possession of $1,132 in U.S. currency and a Norinco, model SKS, 7.62x39 semiautomatic rifle; a Smith and Wesson, model 37 Airweight, .38 caliber revolver; a Smith and Wesson, model 10-8, .38 caliber revolver; a Glock, model 42, .380 caliber semiautomatic pistol; a Ruger, model 10/22, .22 caliber semiautomatic rifle; a Mossberg, model 590, 12 gauge semiautomatic shotgun; a Just Right Carbines, model JR Carbine, 9mm semiautomatic rifle; and assorted rounds of ammunition.
Watkins has two previous convictions in Jefferson County Circuit Court including Possession of a Controlled Substance 1st Degree on May 8, 2014, and Criminal Possession of a Forged Instrument 2nd Degree, on May 26, 2011.
If convicted at trial, Watkins could be sentenced to no less than 5 years for count one and no more than ten years for each of counts two and three.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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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
Christopher Marquis Etheridge and Raymon Rashaun Black Sentenced Following Guilty Pleas to a Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Christopher Marquis Ethridge was sentenced to 130 months imprisonment and Raymon Rashaun Black was sentenced to 23 months imprisonment. Both sentences followed entry of guilty pleas in January 2017 to a charge of conspiracy to possess with intent to distribute cocaine.
Ethridge and Black’s guilty pleas included admissions that they conspired with one another and others to possess with intent to distribute cocaine within the Southern District of Alabama. Recorded telephone calls demonstrated Black arranged a sale of one (1) ounce of cocaine on June 10, 2016, and a sale of four (4) ounces of cocaine on June 12, 2016, to a co-conspirator in the Baldwin County area.
On June 13, 2016, Ethridge obtained cocaine from a source to complete a drug deal arranged by Black with a co-conspirator in Baldwin County. On June 13, 2016, a vehicle driven by Black, in which Ethridge was a backseat passenger, was stopped by Deputies of the Baldwin County Sheriff’s Office. During the stop, Deputies noted the smell of marijuana coming from inside the vehicle and Black admitted that he had earlier smoked marijuana in the vehicle. When Ethridge got out of the backseat a Deputy noticed a set of digital scales where Ethridge had been sitting. During the search of the vehicle a plastic bag was recovered from under the driver’s seat. The plastic bag contained approximately 91 grams of powder cocaine.Based upon Ethridge’s criminal history, Career Offender status was found to be applicable under the United States Sentencing Guidelines. This status increased his applicable advisory sentencing guideline range. Conspiracy to possess with intent to distribute a controlled substance is a violation of Title 21, United States Code Section 846. Both sentences of imprisonment will be followed by three-year terms of supervised release.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Streets Task Force and the Baldwin County Sheriff’s Office Drug Task Force. This investigation has previously resulted in the indictment of five (5) other defendants on federal drug conspiracy charges. Acting U.S. Attorney Steve Butler stated, “The partnership of federal, state, and local law enforcement in the Southern District continues its longstanding concerted efforts to assure our communities are safe from drug related crime.” FBI Special Agent in Charge, Robert Lasky stated, ““These types of investigations are successful due to the dedication and commitment of our state and local partners who are determined to rid their jurisdictions of this type of crime.” The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Chicago Dermatologist Convicted on Federal Fraud Charges for Billing Health Insurance Programs for Medically Unnecessary TreatmentsRead the Press Release
CHICAGO — A federal jury has convicted a Chicago dermatologist on fraud charges for billing health-insurance programs for purported pre-cancerous treatments that were not medically necessary.
From 2007 to 2013, Dr. OMEED MEMAR, 48, of Chicago, submitted claims to multiple health-insurance programs, falsely claiming that his treatments were medically necessary to treat actinic keratosis, a pre-cancerous condition that he knew many of his patients did not actually have. Memar documented the false claims by including in his patients’ charts fictitious diagnoses of actinic keratosis that were not based on the patients’ actual signs and symptoms.
After a seven-day trial in federal court in Chicago, the jury on Wednesday convicted Memar on all 16 counts of the indictment. The conviction includes eight counts of health care fraud and eight counts of making false statements in a health care matter. U.S. District Judge Harry D. Leinenweber set sentencing for Sept. 28, 2017.
The verdict was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago.
Evidence at trial revealed that Memar owned and operated a clinic in Chicago called the Academic Dermatology & Skin Cancer Institute. Law enforcement agents in 2013 conducted a Court-authorized search of Memar’s offices and seized multiple boxes of materials, including patient files and billing records. The files showed multiple instances in which patients were said to have actinic keratosis lesions and had received intense-pulse light treatments that were billed as the destruction of actinic keratosis lesions.
Multiple patients, however, testified at trial that they were never told they had actinic keratosis lesions and that they believed the intense-pulse light treatments were for reasons different from how they were billed. Three of Memar’s former employees who performed the intense-pulse treatments testified at trial that they followed Memar’s instructions to create patient charts that made it appear the treatments had destroyed large numbers of actinic keratosis lesions on patients’ faces, even though the treatments had been identical to cosmetic treatments and Memar usually had not examined the patient during the visits.
In one example cited at trial, evidence showed that Memar billed one patient’s insurance provider for more than 15 such treatments from September 2010 through January 2013, even though Memar did not examine the patient at all during this period. Records presented at trial showed that another dermatologist had seen this patient multiple times during that period and never diagnosed any actinic keratosis lesions.
The conviction is punishable by a maximum sentence of 120 years in prison. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Stephen Chahn Lee and Kartik K. Raman.
Chesterton Man Sentenced to 292 Months ImprisonmentRead the Press Release
HAMMOND - Acting United States Attorney Clifford D. Johnson announced that Willard Abatie, 64, of Chesterton, Indiana was sentenced before District Court Judge Joseph S. Van Bokkelen for one count of coercion and enticement of a minor.
Abatie was sentenced to 292 months imprisonment and 5 years of supervised release.
According to documents in this case, on approximately ten occasions between March and December 2014, Abatie coerced a 12-year-old girl to perform sex acts with him. Abatie gained access to the girl by agreeing to help the girl’s mother facilitate a money laundering scheme. Abatie made money transfers for the mother in exchange for sexual contact with the minor.
This case was investigated by the United States Department Homeland Security Investigations (HSI) with the assistance of the Hammond and East Chicago Police Departments. This case was handled by Assistant U.S. Attorney Abizer Zanzi.
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Charlotte Man Sentenced to More Than 7.5 Years in Connection with Bank Fraud and Identity Theft SchemeRead the Press Release
CHARLOTTE, N.C. –Christopher Bryan Roach, 34, of Charlotte, was sentenced today to 95 months in prison for his involvement in a bank fraud and identity theft scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Robert J. Conrad, Jr. also sentenced Roach to two years of supervised release.
According to today’s sentencing hearing and documents filed in the case, from December 2010 to January 2017, Roach and others used the stolen social security numbers and dates of birth of identity theft victims to take over the victims’ already existing credit card accounts and to open new accounts at stores such as Best Buy and Sam’s Club. Roach and others then used the accounts to purchase items, which resulted in losses in excess of $263,000. According to the indictment, Roach obtained some of the identity theft victims’ information by buying that information from an employee of a medical practice.
Roach pleaded guilty in January 2017 to one count of aggravated identity theft and one count of conspiracy to commit bank fraud. According to statements made at today’s hearing, Roach continued to engage in fraudulent activity, including identity theft, after he entered his guilty plea by providing a co-conspirator with the stolen personal information of an identity theft victim in order to buy iPhones.
Roach will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In a related case, co-defendant Kendell Bowden pleaded guilty on March 28, 2017, to one count of conspiracy to commit bank fraud and two counts of aggravated identity theft and is awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, the United States Secret Service’s Charlotte Field Office, and the Charlotte Mecklenburg Police Department, and noted that the case is the result of the Charlotte Financial Crimes Task Force (CFCTF). The task force was formed in early 2016 by the U.S. Postal Inspection Service and currently comprises over 25 local, state and federal law enforcement agencies located in the Western District of North Carolina. The goal of the taskforce is to focus on the identification and development of financial fraud investigations in the Charlotte area. Based on crime trends in the area, the task force began to focus its efforts on violent offenders with lengthy criminal histories who are committing fraud.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Caught with 10,000 Marijuana Seeds, Man Indicted for Conspiring to Plant Marijuana in Giant Sequoia National MonumentRead the Press Release
FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Rosario Beltran-Leal (Beltran), 43, a Mexican citizen residing in Delano, charging him with conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the federally designated Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced.
According to court documents, Beltran was found delivering 10,000 marijuana seeds at a drop point in a marijuana cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and marijuana cultivation supplies.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.
Beltran is scheduled for arraignment on the indictment on May 17, 2017, in federal court in Fresno. If convicted, Beltran faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cabool Business Owner Indicted for Dumping Grease into Big Piney RiverRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Cabool, Mo., man and his grease recycling company were indicted by a federal grand jury today for violating the Clean Water Act by dumping grease into the Big Piney River.
Brian Dale Fleming, 50, of Cabool, and BF Byproducts, LLC, were charged in an indictment returned by a federal grand jury in Springfield, Mo.
BF Byproducts (formerly Fleming Recycling) is a grease-recycling business owned by Fleming. BF Byproducts uses trucks to collect used grease from hundreds of restaurants in Missouri, Arkansas and elsewhere. The grease is transported to the Cabool facility, where it is recycled for resale and a profit.
BF Products and Fleming allegedly discharged spent cooking oil, a pollutant, into the Big Piney River in March and April 2015.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Environmental Protection Agency – Criminal Investigation Division, the U.S. Coast Guard, the Missouri Department of Natural Resources, the Texas County, Mo., Sheriff’s Department and the Cabool, Mo., Police Department.
Buffalo Man Sentenced for Possessing FirearmRead 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 the sentencing today of Justin Vazquez, 30, of Buffalo, NY, who was convicted by a jury of being a felon-in-possession of a firearm, was sentenced to 72 months incarceration by Chief U.S. District Judge Frank P. Geraci, Jr. In reaching his sentence, Judge Geraci commented that the defendant had demonstrated a total disrespect for any authority.
Assistant U.S. Attorneys Michael J. Adler and Michael P. Felicetta, who handled the trial of the case, stated that on January 29, 2015, the defendant’s mother made a 911 call to Buffalo Police claiming that she was being held hostage by Vazquez in her residence on Madison Avenue in Buffalo. There were also two minors present in the home according to the mother.
When officers arrived, the defendant was in the shower. During a search of the residence, officers found a loaded semi-automatic assault rifle in Vazquez’s bedroom. On the bedroom door was a hand written sign that read “no trespassing or you will be shot.” Forensic testing determined that the defendant’s DNA was on the rifle.
By virtue of three prior felony criminal contempt convictions sustained by defendant in State court, he was prevented from legally possessing a firearm.
The sentencing is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Bucks County, Pennsylvania, Businessman Pleads Guilty to Bribing Philadelphia District Attorney and Tax ChargeRead the Press Release
PHILADELPHIA – An associate of Philadelphia District Attorney Rufus Seth Williams today admitted providing bribes to Williams and making and subscribing a false federal tax return, Acting U.S. Attorney William E. Fitzpatrick announced.
Mohammad N. Ali, 40, of Feasterville, Pennsylvania, pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of federal tax evasion.
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.
For example, Ali provided Williams with an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.
Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”
Ali also admitted making and subscribing a false personal federal income tax return, which failed to report taxable income of approximately $246,504.
The bribery count is punishable by a maximum potential penalty of five years in prison. The false tax return count is punishable by a maximum potential penalty of three years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 24, 2017.
Williams is charged in a related superseding indictment. The charges and allegations against him are merely accusations, and he is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Mark E. Cedrone Esq., Philadelphia
Blacksburg Man Sentenced on Pair of Federal ChargesRead the Press Release
Roanoke, VIRGINIA – A Blacksburg man was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on a pair of federal charges, Acting United States Attorney Rick A. Mountcastle announced.
Matthew Jeremy Holland, 24, of Blacksburg, Va., previously pled guilty to one count of distribution of cocaine and one count of possessing a firearm by a previously convicted felon. Today in District Court, Holland was sentenced to 27 months in federal prison.
According to evidence presented by Assistant United States Attorney Andrew Bassford, Holland was charged after attempting to sell cocaine and a firearm to an informant with the New River Regional Drug Task Force.
The investigation of the case was conducted by New River Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Allenwood Inmate Sentenced to 21 Months’ Imprisonment for Indecent ExposureRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Glenvert Green, age 25, of Washington D.C., was sentenced to 21 months’ imprisonment by U.S. District Court Judge Matthew W. Brann, for indecent exposure at the United States Penitentiary Allenwood where he was incarcerated in 2016.
According to United States Attorney Bruce D. Brandler, Green approached a female corrections officer, exposed himself to her, and began making obscene gestures while continuing to move towards her.
The investigation was conducted by the Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Michael P. FiggsGanter and Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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Alien Smuggler Sentenced for Blowing Through Checkpoint at High Speed, Seriously Injuring Border Patrol AgentRead the Press Release
Assistant U. S. Attorney Colin McDonald (619) 546-9144
SAN DIEGO – Jorge Garcia-Osornio was sentenced in federal court today to 30 months in prison for blasting through a Border Patrol checkpoint in Pine Valley, severely injuring a checkpoint inspection agent, and taking Border Patrol on a high-speed chase reaching speeds of at least 100 miles per hour.
Garcia, who was illegally present in the U.S. and had two illegal immigrants hiding on the floor of his vehicle, approached the checkpoint – about 45 miles east of downtown San Diego - at approximately 10:26 a.m. on November 14, 2017. As he neared the line of cars waiting for inspection, he made an illegal U-turn and started driving the wrong way on the freeway.
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A Border Patrol agent yelled, “Turn around! Turn around!” Another agent activated his emergency lights and siren and began following the defendant. Garcia then made another U-turn on the freeway and headed back toward the checkpoint. The agent tried to stop Garcia’s vehicle by positioning the agency vehicle in the center of both freeway lanes, but Garcia squeezed past by driving onto the shoulder of the freeway.
He then sped toward the checkpoint. A number of cars were in the checkpoint queue. Garcia evaded them by driving into a coned-off freeway lane. He then accelerated to – and through – the checkpoint. In the process, he barely missed crashing into a parked agency car; barely missed crashing into a parked civilian car; and barely missed running over Border Patrol Agent M. Medina, the primary inspection agent.
But Garcia did not miss a steel-framed stop sign sitting in the middle of the freeway lanes; he barreled through it, causing a collision best described as an “explosion.” Debris from the collision struck Agent Medina, who likened the blow to being “hit with a baseball bat.” His injuries were similarly severe: Vomiting, throbbing headache, blurry vision, a gash on his face, shaking uncontrollably, and loud ringing in his ears, among other things. Agent Medina was taken to the hospital in an ambulance and has not returned to work since.
After crashing through the checkpoint, Garcia led Border Patrol on a high-speed chase, reaching speeds of at least 100 mph. After about 3.5 miles, Garcia exited the freeway, ran a stop sign and crashed into a hillside. One of the illegal immigrants on the floor of Garcia’s car said he “feared for his life.”
Garcia then ran away and agents found him hiding in a nearby carport with the crashed car’s key fob in his pocket.
As part of his plea, Garcia admitted driving the wrong way on the freeway, reaching at least 100 mph when fleeing from the checkpoint, using a dangerous weapon in the commission of the offense, and seriously injuring Agent Medina, among other things.
Garcia expected to earn between $1,400 and $2,000 for transporting the two illegal immigrants.
“This defendant had no regard for the safety of his passengers, other drivers on the freeway or agents at the checkpoint,” said U.S. Attorney Adam Braverman. “It’s a miracle no one died in this incident. Smugglers operate in a world where immigrants are just dollar signs, not people.”
“In committing his criminal act, Garcia not only placed the lives of those he smuggled in grave danger, but seriously injured a Border Patrol agent in the process,” Chief Patrol Agent Rodney S. Scott. “I would like to express my sincere appreciation to the United States Attorney’s office for their efforts in prosecuting this case. Let this sentencing serve as a reminder that there will be severe consequences for those that wish to do our country harm.”
DEFENDANT Case Number 17cr4272-JM
Jorge Garcia-Osornio Age: 28 Michoacán, Mexico
SUMMARY OF CHARGES
Transporting Certain Aliens and Aiding and Abetting – Title 18, U.S.C., Sections 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(i)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
U.S. Border Patrol
Acting U.S. Attorney Announces $54 Million Settlement of Civil Fraud Lawsuit Against Benefits Management Company for Improper Authorization of Medical ProceduresRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the New York Regional Office for the Office of Inspector General for the Department of Health and Human Services (“HHS-OIG”), announced today that the United States simultaneously filed and settled a civil fraud lawsuit against benefits management company CaRECORE NATIONAL LLC (“CARECORE”), now part of eviCore healthcare, for authorizing medical diagnostic procedures paid for with Medicare and Medicaid funds over a period of at least eight years without properly assessing whether the procedures were necessary or reasonable. The settlement, approved in Manhattan federal court by U.S. District Judge Richard J. Sullivan, resolves CARECORE’s civil liabilities to the United States under the federal False Claims Act. Under the settlement, CARECORE must pay a total of $54 million, of which $45 million will be paid to the United States and $9 million will be paid to the states that are named as plaintiffs in the suit. CARECORE also admitted and accepted responsibility for, among other things, improperly approving prior authorizations requests for hundreds of thousands of diagnostic procedures paid for with Medicare Part C and Medicaid funds.
Acting U.S. Attorney Joon H. Kim said: “Benefit management companies are supposed to determine whether medical diagnostic procedures paid for with Medicare and Medicaid funds are necessary and reasonable. Instead, CareCore blindly approved hundreds of thousands of medical procedures over a period of many years, leaving Medicare and Medicaid to foot the bill. This lawsuit and settlement shows our commitment to ensuring that fraud and waste involving federal funds will be identified and stopped.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “CareCore’s irresponsible behavior compromised the integrity of the Medicare and Medicaid programs, and wasted millions of taxpayer dollars. HHS-OIG will continue to ensure that companies that do business with federally-funded health care programs do so in an honest fashion.”
The United States Complaint-In-Intervention (the “Complaint”) alleges that starting in as early as 2005, CARECORE, which performs prior authorization review for diagnostic procedures on behalf of many insurers, including those providing insurance through Medicare Part C and Medicaid Managed Care, was unable to review prior authorization requests in a timely fashion, and in order to avoid contractual penalties for failing to timely process the requests, CARECORE instituted a practice of improperly approving prior authorization requests. By 2007, CARECORE had formalized this practice into the “PAD program.” Between 2007 and 2013, through the PAD program, CARECORE improperly authorized over 200,000 diagnostic procedures.
As part of the settlement, CARECORE must pay $54,000,000 to resolve both federal and state false claims act claims, the latter of which will be the subject of a separate settlement agreement between CARECORE and the states. In the settlement, CARECORE admits, acknowledges and accepts responsibility for the following conduct:
- CARECORE provides services to health insurers, including managed care organizations that provide services to beneficiaries of the Medicare Part C and Medicaid programs (collectively, “MCOs”). CARECORE provides prior authorization services, which consist of screening prior authorization requests for certain procedures for medical reasonableness and necessity. During the times pertinent to this matter, CARECORE’s Clinical Reviewers, who generally were nurses, received information from the treating physicians and input that information into CARECARE’s proprietary software system. That software system, based on the information provided, either recommended approval of the prior authorization or recommended further review by a physician.
- Under the applicable regulations and contractual provisions, if a plan decides to implement prior medical necessity review in order to cover physician-ordered services, only a physician or other appropriate health care professional with sufficient expertise has the authority to deny a procedure. Thus, if a prior authorization could not be issued based on the information currently supplied by the treating physician, the prior authorization request, including all of the related information, was placed in an electronic queue, the Medical Review Queue. The prior authorization request could be accessed in the Medical Review Queue by a CAERCORE Medical Director, who is a physician retained by CARECORE, who would review the information and determine whether to conduct a peer call with the treating physician or appraise information gathered after the initial request in order to determine whether prior authorization of the procedure was appropriate, or should be denied.
- In order for the MCOs to meet timelines in the applicable regulations and/or pursuant to its contractual obligations and provisions, CARECORE was required to issue a determination on prior authorization requests within fixed time periods known as “Turn Around Times,” or “TATs”, often as little as 4 hours for urgent requests, and 48 hours for non-urgent requests. CARECORE was also subject to contractual monetary penalties if it failed to maintain performance standards, including meeting the processing deadlines set forth in the regulations and contracts.
- Starting in at least 2007, CARECORE developed the “Process As Directed,” or “PAD” Program. Under the PAD Program, CARECORE’s Clinical Reviewers would approve certain prior authorization requests awaiting physician review that had been on the queue for nearly the entire applicable TAT. The PAD Program consisted of Clinical Reviewers improperly approving certain prior authorization requests on the Medical Review Queue without having obtained any new objective medical information about the request, and without a Medical Director having independently reviewed the prior authorization request. These prior authorization requests (“padded requests”) were then transmitted to CARECORE’s client insurers, including MCOs, as preauthorized requests.
- In 2007, the PAD Program was formalized into corporate policy, which included detailed training materials and daily reporting of the number of padded requests to high-level executives then-employed at CARECORE. When daily regular review of the Medical Review Queue showed the volume of cases in the Medical Review Queue was too high to make a timely decision for a significant volume of requests for prior authorization, certain Clinical Reviewers were directed by then-management to approve requests for prior authorization without obtaining or considering any new medical information.
- From 2007 through June 13, 2013, CARECORE padded between 200,000 and 300,000 prior authorization requests.
- In CARECORE’s role managing the prior authorization process, it had medical information of the beneficiaries seeking prior authorization. When CARECORE approved padded requests, CARECORE made a representation that it had appropriately reviewed the requests when it knew it had not. Thus, those padded requests incorporated CARECORE’s false representation that it had approved a case after completing the required review process. The MCOs thereafter provided coverage based on CARECORE’s approval of the prior authorizations.
- MCOs would only pay for procedures that require a prior authorization if the prior authorization was granted in a manner consistent with the MCO’s policies and procedures. Thus, the PAD Program resulted in insurance claims related to the padded requests being presented to the MCOs for payment with federal and/or state government funds, and MCOs actually paid insurance claims made in connection with the padded requests.
The Complaint in this case was filed under the federal False Claims Act, which punishes violators who submit false claims or make false statements material to claims submitted to entities administering programs funded by the government. The allegations of fraud stated in the Complaint were first brought to the attention of the government by a whistleblower, who filed a lawsuit under the qui tam provisions of the False Claims Act. Those provisions allow private parties who have knowledge of fraud committed against the government to file suit on behalf of the government and share in any recovery. The United States may then intervene and file a complaint, as it did here.
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Mr. Kim praised the investigative work of the Offices of the State Attorneys General of the 29 states also named as plaintiffs in the qui tam complaint. He also thanked the U.S. Department of Health and Human Services, Office of Inspector General, for its assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Arastu K. Chaudhury is in charge of this matter.
Acting Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Law Firm PartnerRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that WALTER C. LITTLE, a/k/a “Chet,” a former partner at an international law firm (the “Firm”), and ANDREW BERKE, a business associate of LITTLE, were arrested this morning and charged with insider trading. LITTLE and BERKE collectively made approximately $1 million in profits in connection with options and stock trading based on material nonpublic information that LITTLE improperly accessed from the Firm’s databases and then provided to BERKE. LITTLE and BERKE were arrested today and presented before a Magistrate Judge in the Middle District of Florida.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Walter Little, a former partner at a major international law firm, allegedly used confidential information – entrusted to the firm by its clients – to illegally trade for personal gain. Although he billed no work for these clients, Little allegedly used his position at the firm to access and share their nonpublic business information. As alleged, Little and Andrew Berke then used that inside information to make approximately $1 million in illegal profits. We continue the fight against illegal insider trading, and are committed, along with our partners at the FBI and the SEC, in ensuring fairness and integrity in our financial markets.”
FBI Assistant Director William F. Sweeney Jr. said: “Little and Berke allegedly used Little’s position at the firm to access material, nonpublic information and engage in insider trading – a scheme that ultimately resulted in collective profits of approximately $1 million. Having access to this type of information is a privilege, one that is extended in furtherance of trusted business-related matters. When clients’ proprietary information is used in this way, they’re not the only ones at risk of losing; keeping our markets fair for all investors remains a top priority for the FBI. We will continue to work with our law enforcement partners to bring charges against those who use illegal and unfair advantages in our securities markets.”
According to the Complaint unsealed today in Manhattan federal court:[1]
Between February 2015 and May 2016, LITTLE was employed at the Firm as a partner. During that time, the Firm provided transactional and regulatory legal advice to a wide variety of corporations, among other services. Clients regularly entrusted the Firm with nonpublic information and the Firm consequently enacted policies requiring its employees to keep such information confidential. LITTLE, however, failed to abide by these policies. Even though he did not perform any billable work for the associated clients, LITTLE accessed documents relating to seven different companies containing material nonpublic information about (1) a client’s anticipated delisting from the NASDAQ stock exchange; (2) multiple clients’ involvement in mergers and acquisitions; (3) multiple clients’ anticipated earnings announcements; and (4) a securities offering being planned by a client. LITTLE then purchased and sold stock and options based on the information contained in these documents, making profits of over approximately $320,000.
In addition to trading on the information himself, LITTLE also provided the information to BERKE, his business associate and friend. BERKE also traded on the information, making profits of over approximately $660,000. For example, on or about July 23, 2015, LITTLE accessed a document on the Firm’s document management system entitled “Revised Merger Agreement,” which contained material nonpublic information about an upcoming merger of a Firm client. The following morning, between approximately 8:31 a.m. and 8:34 a.m., LITTLE and BERKE exchanged approximately six text messages. Approximately an hour later, at 9:41 a.m., BERKE purchased hundreds of shares of stock in the relevant company. The merger referenced in the document that LITTLE had accessed became public approximately three days later, resulting in significant profits for BERKE.
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LITTLE, 43, of Tampa, Florida, and BERKE, 49, of Apollo Beach, Florida, are each charged with one count of conspiring to commit securities fraud and six counts of securities fraud. LITTLE is also charged with an additional five counts of securities fraud. The charge of conspiring to commit securities fraud carries a maximum sentence of five years in prison, and each securities fraud count carries a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action. He added that the FBI’s investigation is ongoing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution. The allegations 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 set forth below constitute only allegations, and every fact described should be treated as an allegation.
22 Individuals Charged with Conspiracy to Commit Id TheftRead the Press Release
SAN JUAN, P.R – On May 9, 2017, a federal grand jury in the District of Puerto Rico returned a 49-count superseding indictment charging 22 individuals with conspiracy to commit identity theft, aggravated identity theft, and counterfeit access device, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The United States Secret Service (USSS) and the U.S. Postal Inspectors are conducting the investigation.
According to the indictment, the object of the conspiracy was to steal the names, bank account numbers and debit or credit card numbers and other means of identification of customers at retail businesses located in and around San Juan, Puerto Rico to enrich themselves and for financial gain and profit. The members of the conspiracy acted as “card skimmers,” using a card skimming device to obtain the names, numbers, and any other identifying information necessary to further the conspiracy.
The defendants would use the skimmer to create fake debit, credit, bank, money, or gift cards to use for transactions for cash, goods, or services. Then they would use the fake debit, credit, bank, money, or gift cards to make cash withdrawals from Automatic Teller Machines (ATMs), purchase money orders, and purchase goods, and services. The loss to financial institutions affected is over $280,000.
The defendants are: Roy Moreno-Negrón, José Calderón-Campos, Edwin R. López-Colón, Miguel González-Marichal, A.K.A. “Kevin,” A.K.A. “Mecha Corta,” Luis Torres Cirilo, A.K.A. “Luis Piña,” A.K.A. “Luigi,” A.K.A. “Rosario,” A.K.A. “Aurelio Chacorta,” Juan Carlos Santiago-Calderón, Yadiely Vázquez-Medina, Adriana Calero-Estades, Edward Santiago-González, Ameliangie M. Graciani-Ramos, Ángel Yadier Esquilin-Cruz, Christopher Rivera-Pérez, Dijeiry Flores, Johana María Rivera-Aguayo, Jorge Luis Vaello-Marquez, Ángel Luna-Guerrero, A.K.A. “Angelito Barber,” Abraham Cruz-Semprit, A.K.A. “Bam Bam,” [18] Michael Soto-Rodríguez, A.K.A. “Chal Soto,” Gustavo Mojica-Moreno, Jean Carlos Lebrón-Falcón, Elvin José Castellano, A.K.A. “Enanito Antonio,” A.K.A. “Menor Cupey,” and Javier Delbrey Negrón. The leader of the conspiracy, Moreno-Negrón is also facing one count for possession of a firearm by a convicted felon.
“Law enforcement will not stand by as criminals attempt to disrupt our lives, steal our savings, and ravage our credit, said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I urge everyone to take steps to protect their personally identifiable information from criminals who seek illicit profits through stolen identity fraud.”
USSS Resident Agent in Charge Carlos Colón stated: “This case highlights the Secret Service’s investigative skills and our commitment to collaborate with our law enforcement partners in detecting and dismantling sophisticated criminal organizations. These crimes can have a detrimental impact to our nation’s critical financial infrastructure. Financial fraud is one of the largest challenges facing American citizens and businesses today. The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who commit this type of fraud.”
“Roy Moreno and his codefendants victimized the citizens of San Juan for their own personal financial gain. These arrests are a fitting end to their scheme. U.S. Postal Inspectors, and our law enforcement partners are sending a strong message that we will tirelessly work to protect the American public from predators like Moreno. Congratulations to the agents, detectives, and Inspectors who brought this group to justice,” said Jim Buthorn, Inspector in Charge, Newark Division/San Field Office.
If convicted, the defendants face maximum penalty of 15 years in prison for the conspiracy to commit identity theft, two years mandatory for the aggravated identity theft, and a maximum of 10 years for the counterfeit access device charge.
The case is being prosecuted by Assistant United States Attorney Edward Veronda. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
10 May 2017
Worcester Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A former Worcester man who was residing in New York pleaded guilty today in federal court in Worcester for failing to register as a sex offender.
George Moriarty, 55, pleaded guilty before U.S. District Court Judge Timothy S. Hillman, who scheduled sentencing for August 3, 2017.
In October 1994, Moriarty was convicted of indecent assault and battery on a child under the age of 14. The Massachusetts Sex Offender Registry Board classified Moriarty as a level 2 offender. Sometime after April 2013, Moriarty moved to New York without notifying authorities of his residency change, as required by law. In November 2016, he was indicted and subsequently arrested in New York and returned to Massachusetts.
The charging statute provides for a sentence of no greater than 10 years in prison, a minimum of five years up to a lifetime of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Weinreb’s Major Crimes Unit is prosecuting the case.
The case is 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 U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to 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/.
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Williamsville Doctor Sentenced on Prescription Drug ChargeRead 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 Dr. Yusuf Siddiqui, 72, of Williamsville, NY, who was convicted of obtaining controlled substances by fraud, was sentenced to one year probation by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on October 13, 2016, the defendant, a physician licensed to practice medicine in the State of New York, wrote prescriptions for hydrocodone, a Schedule II controlled substance, and clonazepam, a Schedule IV controlled substance, to a patient that he had not examined. Siddiqui wrote the prescriptions with the expectation that he would receive a portion of the prescribed medication for his personal use. The defendant wrote the prescriptions at the request of the patient’s daughter whom Siddiqui knew was addicted to pain medication. The patient’s daughter was also a former employee of the defendant.
On October 13, 2016, Siddiqui picked the patient’s daughter up from her residence and gave her seven hydrocodone and seven clonazepam pills. Later that same day, the defendant drove the patient’s daughter to a pharmacy where she had the prescriptions filled. When the patient’s daughter returned to the car, Siddiqui asked her to return the hydrocodone pills that he had given her earlier in the day. The patient’s daughter asked the defendant if he wanted more pills and he responded, “Yes” and took 30 hydrocodone pills.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Virginia company and five individuals indicted on cigarette smuggling chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has returned an indictment charging five individuals and a Virginia-based company with unlawful cigarette smuggling, Assistant United States Attorney, Criminal Chief Randolph J. Bernard announced today.
Udayappan Subramanian, 40, of Haymarket, Virginia; Joao Jose-Serrara Catarino, 78, of Statesville, North Carolina; Pedro Pablo Reyes-Diaz, 40, of Pembroke Pines, Florida; Alvin Alfonso Contreras , 43, of New Britain, Connecticut; Reynold Matthew Vaz, 35, a fugitive in Canada; and Jaya Company, LLC of Haymarket, Virginia, are alleged to have conspired to profit from the unlawful sale of contraband cigarettes. The indictment charges that the defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in other states, including New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Tobacco retailer The Olde Stone Truck Stop, of Clear Brook, Virginia, which was owned by Jaya Company, LLC, owned and operated by defendant Subramanian, was responsible for the acquisition of the contraband. Jaya Company and Subramanian are alleged to have purchased millions of dollars worth of cigarettes from various wholesalers in the region, primarily with cash, before reselling them to out of state smugglers for a profit.
Each of the six defendants is charged with one count of “Conspiracy Involving the Trafficking of Contraband Cigarettes.” Subramanian is further charged with two counts of “Trafficking of Contraband Cigarettes.” Vaz is further charged with two counts of “Trafficking of Contraband Cigarettes.” Contreras, Reyes, and Catarino are further charged with one count each of “Trafficking of Contraband Cigarettes.” Each of the defendants faces up to five years in prison and a fine of up to $250,000 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys Michael Stein and Shawn Adkins are prosecuting the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Alcohol and Tobacco Tax and Trade Bureau, and the West Virginia State Police led the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.