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10 May 2017
Vallejo Man Sentenced to Ten Years in Prison for Lead Role in Mortgage Fraud SchemeRead the Press Release
OAKLAND– Karim Akil (also known as Scott Kinney) was sentenced today to 120 months in prison for conspiracy to commit mortgage fraud and money laundering, announced U.S. Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation (“IRS-CI”), Special Agent in Charge Michael T. Batdorf. The Honorable Phyllis J. Hamilton, Chief U.S. District Judge, handed down the sentence following a guilty plea entered July 10, 2012, in which Akil admitted his role as the organizer and leader of a mortgage fraud scheme.
According to Akil’s plea agreement, he knowingly conspired with others to commit wire fraud, involving the purchase of properties located in the Northern and Eastern Districts of California. Akil, 50, of Vallejo, acknowledged he directed co-defendants to create and submit loan applications that contained materially false information to financial institutions. Akil acknowledged that the conspiracy involved using the names of fictitious persons and straw buyers, the creation of purchase contracts that reflected inflated sale properties above the original sales price, and the submission of fraudulent loan applications for 100 percent financing based upon the properties’ inflated purchase prices. Akil agreed that more than 18 properties were involved in the conspiracy to defraud, and agreed that he was an organizer and leader of five or more participants in the conspiracy. Akil directed an escrow officer to distribute “profits” to co-conspirators and to businesses that he owned or controlled, including Hiddenbrooke Mortgage and Marsh Group.
“Mr. Akil enjoyed a lavish lifestyle, with outrageous expenditures,” said Michael T. Batdorf, Special Agent in Charge, IRS-CI. “Akil left a path of destruction, from properties that went into default and foreclosure, to straw buyers whose credit was ruined, to an escrow company that went out of business. Although this sentence cannot reverse the damage caused by Akil and his co-conspirators, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”
On October 29, 2009, a federal grand jury indicted Akil and six co-conspirators, for their alleged roles in this extensive scheme. For his part, Akil was charged with one count of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, 34 counts of wire fraud, in violation of 18 U.S.C. § 1343, and 16 counts of money laundering, in violation of 18. U.S.C. § 1957(a). On July 10, 2012, Akil pleaded guilty to the conspiracy charge and one count of money laundering.
While out on pretrial release, between late 2012 and early 2013, Akil became involved in a series of new acts, which involved violating the terms of his plea agreement. During the sentencing hearing, Judge Hamilton found that Akil breached his plea agreement in seven different ways. These acts constituting breaches of the plea agreement included convincing a San Francisco property owner to take out a loan against a valuable property she had inherited. The lender foreclosed on the property after Akil received $493,514 in net proceeds from the loan and loan payments were not made. In a second alleged scheme, Akil also defrauded a victim in Southern California by promising to provide a $1.1 million stand-by letter of credit. Akil received $197,600 in fraudulent proceeds from that victim. That victim never received a legitimate letter of credit and never got his money back from Akil or anyone else involved in the alleged scheme. In a third alleged scheme, Akil also forged numerous documents to gain control of a Southern California property and did a cash-out finance without the owner’s knowledge or permission. Akil channeled almost $270,000 in net proceeds from the alleged fraudulent activity in that scheme through his other financial accounts, and spent all the money.
Judge Hamilton emphasized at the sentencing hearing that “individuals’ lives [ ] are ruined or significantly impacted by people who are gaming the system in some way, who are gaming the individuals.” Judge Hamilton found Akil’s “behavior to be entirely disturbing and suggestive of not only a failure to accept responsibility for his criminal conduct but a level of incorrigibility.” The judge also stated, “I ponder whether or not any sentence will deter Mr. Akil.” Judge Hamilton voice her concern that Akil’s statements to the Court during the sentencing hearing did not reflect true remorse for having ruined people’s financial lives.
In additional to the prison term, Judge Hamilton ordered Akil to serve a three-year period of supervised release, and ordered him to submit his person, residence and any property under his control to a search by Probation Officers or law enforcement officers at any time, with or without cause. Akil will begin serving the sentence immediately. The restitution hearing, scheduled for July 12, 2017, will determine the amounts Akil will be ordered to pay to the victims of his crimes.
Co-defendants Amy Schloemann (Akil’s former wife), Darnell Thomas, and Louisa Wonda Kidd each pleaded guilty to related crimes and were sentenced for their respective roles in the scheme. On June 12, 2013, Schloeman was sentenced to 36 months for her role in the scheme and on November 7, 2012, Thomas was sentenced to 36 months of imprisonment for his role in the scheme. On November 20, 2013, Kidd received a sentence of 36 months of probation for her role. Co-defendants Michelle McGuire and Kashka Clay have entered guilty pleas and are scheduled to be sentenced on June 28, 2017.
Assistant U.S. Attorney Christina McCall prosecuted the case with the assistance of Allen Williams, Noble Hughes, Vanessa Vargas, and Kathleen Turner. The prosecution is the result of an investigation by IRS-CI with the assistance of the Alameda County District Attorney’s Office.
U.S. Attorney's Office Observes Arson Awareness WeekRead the Press Release
The U.S. Fire Administration (USFA), a branch of FEMA, is hosting its annual Arson Awareness Week from May 7 to 13. This year’s theme is “Preventing Arson at Houses of Worship.” Acting United States Attorney Steve Butler for the Southern District of Alabama is encouraging our local religious communities to get involved and take measures to reduce the risk of becoming a victim of arson. The Pew Research Center recently noted that, over the past several years and nationwide, 51% of reported fire incidents at faith-based locations were determined to be arson.
The USFA hopes to reduce the odds of faith-based facilities becoming targets of arson, through educating leaders on how to identify and eliminate potential fire hazards and minimize the risk of injuries. For example, there are various activities that municipalities can host to generate arson awareness, such as Congregation Fire Safety Days where local fire departments offer fire safety training for houses of worship. The USFA also suggests that houses of worship host Clean-Up Days to identify areas on their properties that need attention and remove any potentially combustible materials from the grounds. To find out more about USFA’s recommendations, please visit https://www.usfa.fema.gov/prevention/outreach/arson_awareness.html.
The Department of Homeland Security’s Protective Security Advisor Program (PSA) also offers assistance to houses of worship by conducting arson and security reviews, and addressing active shooter risks. For more information about these programs, please visit https://www.dhs.gov/protective-security-advisors and contact the DHS National Infrastructure Coordinating Center at (202) 282-9201 to learn about the closest PSA.
Locally, in the City of Prichard, Mayor Gardner and the City Council have proclaimed May 7 through 13 as Arson Awareness Week to stress the importance of arson prevention to their faith-based communities.
Preventing Arson at Houses of Worship (PDF)
Protecting Houses of Worship Against Arson (PDF)
Arson Awareness Week Activities (PDF)
Two Men Sentenced in Multi-State Scheme to Fraudulently Obtain New Cell PhonesRead the Press Release
BOSTON – Two men were sentenced yesterday in federal court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
Jimmy Phan, 30, of Boston, was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to 18 months in prison, three years of supervised release, and ordered to pay approximately $275,000 in restitution. Judge Wolf also sentenced Lee Tran, 30, of Waltham, to 12 months of probation and ordered him to pay approximately $3,200 in restitution. Phan and Tran both pleaded guilty to wire fraud conspiracy in February 2016.
Phan and Tran were part of a six-person, multi-state scheme to defraud T-Mobile. Co-defendant Kevin Johnson was sentenced in April 2017 to 70 months in prison. In May 2016, co-defendants David Hul and Curtis Peebles were sentenced to 21 and 18 months in prison, respectively. The wire fraud conspiracy charge against the sixth co-defendant, Khoa Doan, was dismissed when Judge Wolf sentenced Doan to prison on a related charge.
Phan, Hul, Peebles, Johnson, and co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Johnson, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners,” including Tran, to go into T-Mobile stores and impersonate the customers. Phan, Hul, Peebles and Johnson sometimes directed the runners to use false names that closely matched their real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of each phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones. Phan, Hul, and others re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, the scheme netted at least $330,000 worth of new cell phones.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit prosecuted the case.
Two Indicted for Allegedly Sex Trafficking a MinorRead the Press Release
PROVIDENCE – A federal grand jury on Tuesday returned a four-count indictment alleging that two Rhode Island men sex trafficked a 17-year-old Rhode Island female at hotels in Warwick, R.I. and Queens, N.Y., and at locations in Massachusetts.
Additionally, the indictment alleges that an 18-year-old woman was transported by the defendants to Queens, N.Y., for the purpose of offering her for commercial sexual activity.
The indictment, unsealed today in U.S. District Court in Providence, charges Reysean Williams, a/k/a “Sincere,” 27, of Pawtucket, and Leandro Gomes, a/k/a “Leo,” 18, of Providence, with conspiracy to sex traffic a child, sex trafficking of a child, interstate transportation of a minor to engage in criminal sexual activity and traveling in interstate with the intent to engage in criminal sexual activity. The defendants, arrested earlier today and arraigned, were ordered detained in federal custody by U.S. District Court Magistrate Lincoln D. Almond.
The indictment of Reysean Williams and Leandro Gomes’ is announced by Acting United States Attorney Stephen G. Dambruch; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Cranston Police Chief Colonel Michael J. Winquist.
According to the indictment, it is alleged that from March 21 to 23, 2017, Williams rented a hotel room in Warwick for the purpose of having a juvenile female engage in several commercial sex acts. During those dates, Williams and Gomes posted Backpage.com advertisements, which offered the sexual services of the juvenile. Gomes collected the payments made to the victim, and gave most if it to Williams.
Additionally, the indictment alleges that on March 25, 2017, Williams and Gomes transported the juvenile female and an 18-year-old female to a hotel in Queens, N.Y., for the purpose of engaging in commercial sexual activity. Advertisements were posted on Backpage.com. Gomes collected the payments made to the victims, and gave most if it to Williams.
The indictment also alleges that on March 25, 2017, Williams and Gomes traveled to New York for the purpose of engaging in illicit sexual conduct with a person under the age of 18.
According to state court documents filed in this matter, the victim was located on April 17, 2017, during an investigation by members of the Cranston Police Department Special Victims Unit, working with Homeland Security Investigations.
An investigation by Homeland Security Investigations and the Cranston Police Department into this matter and into the alleged conduct of the defendants is continuing.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
If convicted as charged in the indictment, the defendants face statutory penalties of 10 years to life imprisonment, to be followed by up to lifetime supervised release.
Acting United States Attorney Stephen G. Dambruch thanks the Rhode Island Department of the Attorney General for their assistance in this case.
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Turley Minister Pleads Guilty to Accessing with Intent to View Child PornographyRead the Press Release
Ronald Eugene Robinson, 62, of Tulsa, pled guilty to Accessing with Intent to View Child Pornography, announced Loretta F. Radford, Acting United States Attorney for the Northern District of Oklahoma. Chief United States District Court Judge Gregory K. Frizzell will sentence Robinson on August 10, 2017.
On November 10, 2015, Homeland Security Investigations (HSI) agents in Phoenix, Arizona conducted an undercover operation in an internet chatroom. While in the chatroom, HSI agents observed Robinson and other individuals watching child pornography that was being streamed. Some of the children in the videos were under the age of 12.
On March 30, 2017, HSI agents served a warrant and searched Robinson’s home. Robinson admitted he accessed the internet chatroom and viewed child pornography. Robinson faces a maximum sentence of twenty years of imprisonment, a $250,000 fine, and at least five years of supervised release up to life following a sentence of imprisonment.
This case was investigated by HSI, the Tulsa County Sheriff’s Office, and the Tulsa Police Department. The case was prosecuted by Assistant United States Attorney Neal C. Hong.
Three from Central America charged with illegally reentering the U.S.Read the Press Release
Three people from Central America were charged with illegally reentering the United States, Acting U.S. Attorney David A. Sierleja said.
Indicted in the unrelated cases are: Julio Nunez-lzaguine, aka Julio Nunez, aka July, aka Alex Moncada-lzaguirre, aka Michael Hernandez, 37, of Honduras; Sergio Rene Almendarez-Euceda, 31, of Honduras, and Jose Ayala-Escobar, 29, of El Salvador.
Nunez-Izaguirre was deported to Honduras in 2001 and was recently found in Cleveland, according to the indictment.
Almendarez-Euceda was last deported to Honduras in 2012 was recently found in Portage County, according to the indictment.
Ayala-Escobar, who was last deported in 2012, was recently found in North Royalton, according to the indictment.
These cases are being prosecuted by Assistant U.S. Attomey Karrie D. Howard following investigations by U.S. Border Patrol, Immigration and Customs Enforcement, Department of Homeland Security and the Ohio State Highway Patrol.
If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense, and the characteristics of the violation. In allcases, the sentence
will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the govemment's burden to prove guilt beyond a reasonable doubt.
Texas Men Indicted on Federal Hate Crime Charges for Targeting Victims based on their Sexual OrientationRead the Press Release
SHERMAN, Texas – A federal grand jury returned an 18-count superseding indictment charging four Frisco, Texas men with federal hate crime and conspiracy charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherson today.
Anthony Shelton, 19; Nigel Garrett, 21; Chancler Encalade, 20; and Cameron Ajiduah, 18, were named in a superseding indictment returned by a federal grand jury today charging them with conspiring to cause bodily injury to persons because of the sexual orientation of those persons.
According to the indictment, from Jan. 17 to Feb. 7, 2017, the defendants committed home invasions in Plano, Frisco, and Aubrey, Texas. For each of the four home invasions, the defendants used Grindr, a social media dating platform for gay men, to falsely identify as a gay man and arrange to meet the victim at the victim’s home. Upon entering the victim’s home, the defendants assaulted the victim, restrained the victim with tape, and made derogatory statements about the victim being gay. The defendants possessed a firearm during each home invasion, and they stole the victim’s property, including his motor vehicle.
For these crimes, the defendants have been charged with conspiracy, kidnapping, carjacking and possession of a firearm in furtherance of these crimes. The hate crime counts carry a maximum statutory penalty of life in prison.
An indictment merely establishes probable cause, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the ATF, the Plano Police Department and the Frisco Police Department. The case is being prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office of the Eastern District of Texas and Trial Attorney Saeed Mody of the Justice Department’s Civil Rights Division.
Texas Man Sentenced to Two Years in Federal Prison for Identity Theft Related to Credit Card FraudRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that Elvis Barban Chavez, 45, of Austin, Texas, was sentenced to two years in federal prison after pleading guilty to aggravated identity theft in connection with a credit card fraud scheme.
According to documents that were filed in the United States District Court, Chavez and others traveled from Austin, Texas to New Hampshire in late December 2015 and early January 2016. Once they arrived in New Hampshire, they began purchasing gift cards at various retail stores in the area, including the Sam’s Club store in Hudson, New Hampshire. The group obtained the credit card information for various individuals, including numerous New Hampshire residents, by downloading the information from a skimmer that was hidden in a gas pump at a store in Londonderry, New Hampshire. After downloading the information, the group used it at the self-checkout counters at the retail stores to purchase gift cards in the amount of $200. The total estimated loss is approximately $29,000.
On January 12, 2016, the Hudson Police Department were notified that the group was in the store purchasing gift cards. The police responded to the store and pursued the group into Tyngsborough, Massachusetts, where they were arrested by the Tyngsborough Police. Numerous cards and a skimming device were found in the vehicle.
The case was investigated by the Hudson Police Department, the Londonderry Police Department, the Manchester Police Department, the Tyngsborough Police Department and the New Hampshire State Police Forensic Laboratory. Numerous other departments and the staffs at various Sam’s Club stores assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Donald A. Feith.
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Stilwell Woman Sentenced to 77 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that REGINA ANN BALLARD, age 38, of Stilwell, Oklahoma, was sentenced to 77 months imprisonment and 3 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Information alleged that on or about December 13, 2015, within the Eastern District of Oklahoma, the defendant, REGINA ANN BALLARD, a/k/a Regina Hummingbird, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Springfield Man Sentenced to 15 Years for Firearm Used in ShootingRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm that was involved in a local shooting.
Michael A. Sheehan, 39, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Sheehan was sentenced as an armed career criminal due to his prior felony convictions.
On Dec. 13, 2016, Sheehan pleaded guilty to being a felon in possession of a firearm. Sheehan admitted he was in possession of a Smith and Wesson 9mm pistol when he was arrested on May 11, 2016. Springfield police officers located Sheehan during their investigation into an incident a few days earlier in which Sheehan shot and injured another person. An officer removed the firearm, which was the same firearm used in the shooting, from Sheehan’s waistband.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sheehan has two prior felony convictions for distributing a controlled substance and a prior felony conviction for possessing a controlled substance with the intent to distribute.
This case was prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
Six Individuals Found Guilty of Health Care FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that on May 9th, after over four weeks of trial, a federal jury returned guilty verdicts against six individuals charged with committing approximately $13,655,094 in Medicare fraud.
Specifically, HENRY EVANS, age 71, was found guilty of five counts of health care fraud; MICHAEL JONES, age 47; PAULA JONES, age 45; SHELTON BARNES, age 62; GREGORY MOLDEN, age 60, all of New Orleans; and JONATHON NORA, age 29, of River Ridge, were all found guilty of conspiracies to commit health care fraud and to defraud the United States and to receive and pay health care kickbacks, and health care fraud. BARNES, MICHAEL JONES, MOLDEN, and NORA were also found guilty of individual counts of health care fraud. Additionally, BARNES was found guilty of obstruction of a federal audit.
The Second Superseding Indictment is related to the Indictment returned in March 2015 charging Lisa Crinel and others with health care fraud. Nineteen individuals and/or companies pleaded guilty before trial to charges associated with the original Indictment.
According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare for medically unnecessary home health services for patients who were not homebound. DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiaries’ needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and MOLDEN received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, DR. MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES in order to pay MICHAEL JONES’ fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined that the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, MOLDEN, and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
The Superseding Indictment also charged SHELTON BARNES with obstruction of a federal audit in connection with him billing Medicare Part B for services related to the medically unnecessary home health services.
DR. SHELTON BARNES faces a possible maximum sentence of 170 years imprisonment, DR. HENRY EVANS faces a possible maximum sentence of 50 years, DR. GREGORY MOLDEN faces a possible maximum sentence of 115 years, and DR. MICHAEL JONES faces a possible maximum sentence of 95 years. Additionally, JONATHON NORA faces a possible maximum sentence of 25 years and PAULA JONES faces a possible maximum sentence of 15 years. Defendants are also subject to a maximum $250,000 fine for each count of conviction.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman prosecuted the case.
Schenectady Man Pleads Guilty to Drug ConspiracyRead the Press Release
ALBANY, NEW YORK – Elijah Jones, age 30, of Schenectady, New York, pled guilty yesterday to conspiring to distribute crack cocaine and heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
As part of his guilty plea, Jones admitted that, in 2015 and 2016, he conspired with others to distribute crack cocaine and heroin in Schenectady. Jones acknowledged that he obtained crack cocaine and heroin from suppliers and worked with a partner to distribute these drugs to customers out of a residence on Paige Street in Schenectady.
Jones, who is in custody, faces 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of at least 4 years and up to life. Sentencing is scheduled for September 11, 2017 in Albany before Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and the Schenectady County Sheriff’s Department, and is being prosecuted by Assistant United States Attorneys Wayne A. Myers and Joseph A. Giovannetti.
Salvadoran Man Sentenced for Illegal Re-Entry into United StatesRead the Press Release
ALBANY, NEW YORK – Ramiro Martinez-Chacon, age 43, and a citizen of El Salvador, was sentenced today to time served (92 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Chacon admitted that he was a citizen of El Salvador, and that he returned to the United States after he was previously removed to El Salvador. Martinez-Chacon was removed from the United States to El Salvador on December 19, 2000.
On February 7, 2017, Martinez-Chacon was arrested by ICE officers in Hudson, New York, where he had been residing.
Following his sentencing, Martinez-Chacon was remanded to the custody of the Department of Homeland Security, which will place Martinez-Chacon into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and prosecuted by Assistant United States Attorney Edward P. Grogan.
Sallisaw Man Sentenced to 168 Months for Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUSTY ALLEN DRYWATER, age 34, of Sallisaw, Oklahoma, was sentenced to 168 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B); and for FELON IN POSSESSION OF A FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) & 2.
The Superseding Indictment alleged that beginning in or about June 2015, until on or about January 27, 2016, the Defendant conspired with others to distribute and possess with the intent to distribute 500 grams or more of a methamphetamine mixture, a Schedule II controlled substance.
The Superseding Indictment further alleged that on or about November 25, 2015, while within the Eastern District of Oklahoma, the Defendant possessed one Glock Model 23 .40 caliber semi-automatic pistol, which was manufactured outside the state of Oklahoma. At the time the Defendant possessed the firearm, he had a previous felony conviction.
The charges arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Raleigh County man sentenced to five years in federal prison for witness tampering crimeRead the Press Release
BECKLEY, W.Va. – A Raleigh County man was sentenced today to five years in federal prison and ordered to pay a $25,000 fine for a witness tampering crime, announced United States Attorney Carol Casto. Mark Radcliffe, 60, of Shady Spring, was convicted in October 2016 of conspiracy to tamper with a witness following a three-day jury trial.
On December 23, 2015, Seth Radcliffe, the son of Mark Radcliffe, was facing kidnapping charges in an unrelated case. Witnesses for the United States testified at trial that Mark Radcliffe directed Jimmie Harper, a codefendant, to take actions to illegally influence Seth Radcliffe’s case. Harper testified that immediately following Seth Radcliffe’s arrest for kidnapping on December 23, 2015, he and Mark Radcliffe began discussing how they needed to get a witness to minimize Seth Radcliffe’s actions. Harper further testified that he and Mark Radcliffe formed a plan on December 24, 2015, to have a witness lie to law enforcement about the kidnapping.
Harper additionally testified that on January 24, 2016, he met with witnesses in Seth Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper testified that he spoke to Mark Radcliffe about the plan and obtained a letter written by Seth Radcliffe that was read aloud during the meeting. Harper also testified that during the same meeting, at Mark Radcliffe’s direction, he emphasized that the kidnapping charges against Seth Radcliffe needed to go away because of the severe penalties. Harper additionally testified that he suggested, also at Mark Radcliffe’s direction, limiting answers that could be damaging to Seth Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper testified that Seth Radcliffe’s letter was not factually correct, and that he and Mark Radcliffe intended to corruptly influence witness testimony.
Text messages and phone calls admitted into evidence during the trial showed significant communication between Mark Radcliffe and Jimmie Harper prior to Harper’s meeting with the witnesses. Additionally, calls between Seth Radcliffe and Mark Radcliffe that were also admitted into evidence showed extensive communication regarding an unlawful strategy to get Seth Radcliffe’s charges dismissed.
During the sentencing hearing, United States District Judge Irene C. Berger stated that the defendant’s “conduct evidences clear disrespect for the law and criminal justice system,” and that the defendant’s actions “revictimized the target of the kidnapping.”
Harper was sentenced in August 2016 to seven years in federal prison for an unrelated federal arson crime, followed by a consecutive sentence of two years in federal prison for the witness tampering crime.
The West Virginia State Police, the Raleigh County Sheriff’s Office, the FBI, and the North Carolina State Police conducted the investigation. Assistant United States Attorneys Monica D. Coleman and Haley Bunn are in charge of the prosecution and tried the case before a federal jury. United States District Judge Irene C. Berger presided over the case and imposed the sentence.
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Portland Man Sentenced to Six Months for Failure to Register as a Sex OffenderRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Pablo Martinez, 40, most recently of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to six months in prison and five years of supervised release for failure to register as a sex offender. He pled guilty on January 31, 2017.
According to court documents, Martinez was required to register for life as a result of a 1997 New York state conviction for the second degree rape of a 13-year-old girl. Martinez registered in New York until 2002. In May 2002, he moved and stopped registering, and a warrant issued for his arrest. Over the next 13 years, Martinez lived in various places including New Jersey, Pennsylvania, Rhode Island, and Missouri, but did not register. In August 2015, he moved to Portland, but again, did not register. In October 2015, he was arrested in Portland for assaulting his girlfriend.
In pronouncing sentence, Judge Levy stated that Martinez’ failure to register for 13 years was a serious violation that frustrated the registration law’s purpose to protect the public.
The investigation was conducted by the U.S. Marshals Service.
Porcupine Man Pleads Not Guilty to Depredation of Government PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Depredation of Government Property.
Curtis Temple, age 54, was indicted on April 18, 2017. Temple appeared before U.S. Magistrate Judge Daneta Wollmann on April 27, 2017, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Temple committing a depredation against real property maintained by the U.S. Department of the Interior, Bureau of Indian Affairs, by overstocking and overgrazing land and vegetation that resulted in damage over $1,000, between March 25, 2013, and April 18, 2017.
The charge is merely an accusation and Temple is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of the Interior, Bureau of Indian Affairs. U.S. Attorney Megan Poppen is prosecuting the case.
Temple was released on bond pending trial. A trial date has been set for June 27, 2017.
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Plainfield Man Charged with Distributing FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GEORGE KINNEY, 34, of Plainfield, was arrested yesterday and charged in a criminal complaint with distributing fentanyl.
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.
KINNEY appeared yesterday before U.S. Magistrate Judge Sarah A.L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on August 31, 2016, the Plainfield Police Department responded to a report of an untimely death of a 38-year-old female at a hotel in Plainfield. At the scene, officers seized drug and non-drug evidence, including bags that appear to have contained heroin and/or fentanyl that were located in a bathroom garbage can. The investigation revealed that KINNEY had provided the drugs to the victim and her boyfriend shortly before the victim’s death.
At the time of his arrest, it is alleged that KINNEY possessed 40 bags of heroin and/or fentanyl, most of which had identical labeling to the bags found at the hotel. Forensic analysis of the bags revealed the presence of fentanyl.
The complaint charges KINNEY with possession with intent to distribute, and distribution of fentanyl, an offense that 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 Plainfield 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 John T. Pierpont, Jr.
Phenix City “Pill Mill” Doctor Receives a Ten-Year Sentence for Participating in a Drug Distribution ConspiracyRead the Press Release
Montgomery, Ala. – On Tuesday, May 9, 2017, Dr. Robert M. Ritchea, 54, of LaGrange, Georgia, was sentenced to serve 10 years in prison for operating a “pill mill” through his medical practice and for money laundering, announced Acting United States Attorney A. Clark Morris. A “pill mill” is a medical clinic created to dispense controlled substances inappropriately, unlawfully, and for non-medical reasons.
According to court documents, Dr. Ritchea operated a family medical practice in Phenix City, Alabama. At that practice, Dr. Ritchea wrote prescriptions for Schedule II controlled substances, including oxycodone, hydrocodone, methadone, and hydromorphone, knowing that his patients did not actually need the drugs prescribed. Dr. Ritchea laundered the proceeds of his unlawful drug dealing by purchasing Schedule II pain medications—specifically, hydromorphone and hydrocodone—directly from a drug manufacturer. Dr. Ritchea then distributed the pills directly out of his medical practice. This was necessary to keep his “pill mill” operational since many pharmacists in and around Phenix City refused to fill the illegitimate and unlawful prescriptions Dr. Ritchea wrote.
At the sentencing hearing, the Government introduced evidence that, in at least one case, one of Dr. Ritchea’s patients died as a result of a methadone overdose just days after receiving a prescription for that drug from Dr. Ritchea.
The sentencing court also heard testimony from former patients of Dr. Ritchea’s who had maintained their addictions to prescription drugs by obtaining monthly prescriptions from him. These patients testified that they made cash payments to Dr. Ritchea of at least $150 each month in exchange for office visits and prescriptions. The patients described the horrible impact the addiction had on their lives and families.
Additionally, members of the medical community in the Phenix City-Columbus area testified. A pharmacist described the unusually large prescriptions Dr. Ritchea’s patients brought to his pharmacy. A physician who operated an addiction rehabilitation clinic told the court that he had given his patients an ultimatum—they could not remain in his rehabilitation program if they were simultaneously receiving prescription drugs from Dr. Ritchea.
When he imposed the sentence, Chief United States District Judge W. Keith Watkins told Dr. Ritchea that his conduct was not far removed from the conduct of a drug dealer operating on a street corner. The judge also stressed the need to deter other doctors from overprescribing prescription drugs. The 120-month sentence reflects one of the largest ever imposed by a federal judge in Alabama on a doctor for operating a pill mill.
“The abuse of opiates destroys careers, divides families, severs relationships, and, as we saw in this case, it takes lives,” said Acting United States Attorney Morris. “In exchange for monthly cash payments, Dr. Ritchea poured poison into his community. Society trusted Dr. Ritchea to care for the sick, not make people sick. Dr. Ritchea violated that trust and the harm he caused was immense. I believe the ten-year sentence was certainly justified.”
“IRS-CI, in conjunction with the United States Attorney’s Office in the Middle District of Alabama, our local and federal partners, is dedicated to eradicating pill mill operations,” stated Acting Special Agent in Charge, James E. Dorsey of IRS-Criminal Investigations. “The prescriptions obtained from pill mill clinics are most often sold or diverted on the streets feeding this epidemic and devastating communities. The laundering of these illegal profits enriches those who perpetuate the scheme. IRS-CI will remain committed to investigating those entrusted with patient well-being, who seek self-enrichment by promoting substance abuse through pill mills.”
“Opiate abuse is a major problem across the Nation, including throughout the Middle District of Alabama,” said DEA Assistant Special Agent in Charge Bret Hamilton. “The diversion of prescription pain medication contributes to the widespread abuse of opiates, is a gateway to heroin addiction, and is devastating our communities. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office to aggressively pursue anyone that illicitly distributes these drugs. And this sentencing is evidence to how egregious federal courts view these charges."
This case was investigated by the Drug Enforcement Administration (DEA) Tactical Diversion Squad and the Internal Revenue Service’s Criminal Investigations Division (IRS-CI), with assistance from the Opelika Police Department, the Chambers County Drug Task Force, the Auburn Police Department, the Federal Bureau of Investigation, the Alabama Law Enforcement Agency, the Russell County Sheriff’s Office, the Lawrence County Sheriff’s Office, and the Alabama Board of Medical Examiners.
Assistant United States Attorneys Jonathan S. Ross and R. Rand Neeley prosecuted the case.
Osage Beach Woman Pleads Guilty to Stolen Mail, Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that an Osage Beach, Mo., woman has pleaded guilty in federal court to a scheme to use stolen mail and stolen identities to cash fraudulent checks at area banks.
Chrystal Lynn Bernstein, 27, of Osage Beach, pleaded guilty before U.S. Magistrate Judge William A. Knox on Tuesday, May 9, 2017, to one count of bank fraud and one count of aggravated identity theft.
Bernstein admitted that she engaged in a scheme to obtain stolen mail (including checks), then use stolen identities to cash and deposit the checks at several banks in Boone and Camden Counties from December 2016 to Feb. 16, 2017.
Bernstein opened accounts at Central Bank of the Lake of the Ozarks and at Landmark Bank in the names of persons whose names and Social Security numbers she obtained without their permission or knowledge. Bernstein admitted she altered the payee on some of the stolen checks she obtained in order to cash them in the names of a mother and daughter in California whose identities she had stolen. She also admitted that she deposited a stolen check into a fraudulent bank account that was opened under another person’s name. Bernstein also passed a bad check for $826 at a Columbia, Mo., business using a stolen identity.
The victims of Bernstein scheme sustained a total loss to date of approximately $13,947.
Bernstein was arrested during a traffic stop on Feb. 1, 2017, in Lake Ozark. She was in possession of a driver’s license, Social Security card and credit card bearing another person’s name. Bernstein was able to bond out and was released.
On Feb. 16, 2017, Bernstein attempted to cash a check at Central Bank. Bernstein was arrested as she returned to her residence, driving a vehicle with a reported stolen license plate. Law enforcement officers searched the vehicle and found checks and money orders in the trunk that had been stolen from two additional victims.
Under federal statutes, Bernstein is subject to a sentence of up to 30 years in federal prison without parole for bank fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, the Lake Ozark, Mo., Police Department, the Osage Beach, Mo., Police Department, the Camdenton, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Ontario, NY, Woman Re-Arrested on New Bank Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Cortney Vogt, 37, of Ontario, NY, was arrested and charged by criminal complaint with bank fraud. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Vogt, who pleaded guilty to bank fraud on April 27, 2017, was re-arrested today on new charges of bank fraud for defrauding her most recent employer, ID SignSystems. According to the complaint, Vogt forged checks and caused inflated payroll deposits to be made to her account. The defendant attempted to conceal the fraud by altering accounting records to show that these payments were to a frequent vendor of ID SignSystems. Vogt’s current scheme was discovered by her employer shortly after her April 27, 2017, plea to defrauding a prior employer. The full extent of her fraud has not yet been determined.
The defendant made an initial appearance today before U.S. Magistrate Marian W. Payson. She also appeared before U.S. District Court Judge Charles J. Siragusa, who revoked her terms of release and ordered her detained pending further proceedings. Vogt’s next appearance is scheduled for June 19, 2017, at 9:00 a.m., before Magistrate Judge Payson.
The criminal complaint is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ohio Woman Sentenced for Providing Inmate with DrugsRead the Press Release
Abingdon, VIRGINIA – An Ohio woman, who conspired with an inmate at the United States Penitentiary in Lee County, Virginia (USP-Lee) to smuggle methamphetamine into USP-Lee, was sentenced yesterday, Acting United States Attorney Rick A. Mountcastle announced.
Nicole Diane Shroyer, 46, of Dayton, Ohio, previously pled guilty today to one count of conspiring to provide an inmate of a prison a prohibited object, in this case methamphetamine. Shroyer was sentenced yesterday to imprisonment for a term of 24 months.
According to evidence presented, Shroyer and others she conspired with, made several phone calls to arrange transport of the methamphetamine to the inmate, who was housed at USP Lee. On January 31, 2016, Shroyer secreted the methamphetamine inside her body to avoid detection, brought methamphetamine to USP-Lee, entered a restroom after entering USP-Lee, removed the methamphetamine from inside her body, and surreptitiously passed the methamphetamine to an inmate, Jermaine Jeffries. Jeffries was previously convicted for his role in the conspiracy and was sentenced to imprisonment for a term of 60 months.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Northern Iowa Man Pleads Guilty to Providing False Documents to Farm Credit Services of AmericaRead the Press Release
A man who made false statements to Farm Credit Services of America (FCSA) pled guilty on May 9, 2017, in federal court in Cedar Rapids.
Michael Royster, age 52, pled guilty to making False Statements to a Production Credit Association.
In a plea agreement, Royster admitted that, in an effort to obtain more than $3 million in credit 2015, he provided FCSA falsified contracts and documents purporting to show that local cooperatives or other purchasers were storing a greater quantity of corn and soybeans than what he and his son and their entities actually had in storage. He further admitted that he also provided fake documents to FCSA in 2012 and 2013 and to Heartland Bank in 2011. The amount of unpaid principal on the loans FCSA extended to defendant and his son exceeds $1 million.
Sentencing before United States District Court Judge Linda R. Reade will be set after a presentence report is prepared. Royster remains free on bond pending sentencing. He faces a possible maximum sentence of 30 years’ imprisonment, a fine equal to or greater than twice the gross gain or gross loss resulting from the offense or $1 million, $100 in special assessments, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jacob Schunk and was investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-3018.
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Non-Indian Man from Taos County Pleads Guilty to Assault Charge on Taos PuebloRead the Press Release
ALBUQUERQUE – Yvon Juteau, 32, a non-Indian man who resides in Rancho de Taos, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of the plea agreement, Juteau will be sentenced to 30 months of imprisonment followed by a term of supervised release to be determined by the court.
Juteau was arrested on Sept. 23, 2016, on an indictment charging him with assaulting an Indian man and woman resulting in serious bodily injury on July 10, 2013, on Taos Pueblo in Taos County, N.M.
During today’s proceedings, Juteau pled guilty to the indictment and admitted that on July 10, 2013, he drove a motor vehicle recklessly, causing a crash that seriously injured an Indian woman. A sentencing hearing has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Taos Pueblo Tribal Police Department and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
Newport News Man Indicted for Armed Robbery of Hampton BusinessRead the Press Release
NEWPORT NEWS, Va. – A federal grand jury returned an indictment today charging a Newport News man with the armed robbery of a local business in July 2016.
According to the indictment, Brian Gale, 54, robbed the Ricco’s Pizza located on West Mercury Boulevard on July 3, 2016. Gale entered through the rear of the business wearing a mask and armed with a firearm. After pushing one employee to the floor, he moved to the front of the store, where he demanded money from the store’s owner at gunpoint. Gale fired his weapon inside the store before taking money from the register and fleeing the scene.
Gale faces a maximum penalty of 20 years in prison if convicted of the robbery and a mandatory minimum consecutive penalty of 10 years in prison if convicted of discharging a firearm during the robbery. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after the indictment was returned. Assistant U.S. Attorney Kaitlin C. Gratton is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
New Mexico Man Charged in 13-Count Dog Fighting IndictmentRead the Press Release
A federal grand jury in Albuquerque, new Mexico returned an indictment yesterday charging Robert Arellano, 63, of Albuquerque, with 13 counts of violating the animal fighting prohibitions of the federal Animal Welfare Act, announced Acting U.S. Attorney James D. Tierney for the District of New Mexico, and Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division.
Arellano had previously been arrested and indicted on additional charges in the District of New Jersey pertaining to his alleged involvement in a multi-state dog fighting network. Those charges alleged criminal acts related to transporting, delivering, buying, selling, and receiving pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the U.S.
The charges returned today in the District of New Mexico pertain to fighting dogs allegedly kept by Arellano at his residence in Albuquerque. Those dogs were seized by federal authorities when Arellano was arrested last June.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.” To date, 85 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. Under federal law, an animal fighting venture means “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.”
This part of Operation Grand Champion was investigated by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge Dax Roberson; and under the direction of Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Letitia Simms and Paul Mysliwiec of the District of New Mexico, and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division. The Humane Society of the U.S. assisted with the care of the dogs seized by federal law enforcement.
An indictment is an allegation based upon a finding of probable cause by a grand jury. A defendant is presumed innocent unless and until convicted.
If convicted, the defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
New Hampshire Man Sentenced for Trafficking Stolen Retail Debit CardsRead the Press Release
BOSTON – A New Hampshire man was sentenced yesterday in federal court in Boston for trafficking in more than $350,000 in stolen retail gift cards.
Khoa Doan, 34, of Manchester, was sentenced yesterday by U.S. District Court Senior Judge Mark L. Wolf to 12 months and one day in prison, three years of supervised release, and ordered to pay approximately $180,000 in restitution. Doan pleaded guilty to access device fraud conspiracy in December 2016.
Between May 2013 and October 2014, Doan was part of an international scheme to defraud online retailers, including Walmart, Best Buy, Home Depot, and Apple, among others.
Doan’s Vietnam-based co-conspirators used stolen account credentials to gain unauthorized access to customers’ online accounts at the retailers’ websites. Once in the accounts, the co-conspirators either stole the customers’ online gift cards or used their stored payment card data to purchase gift cards and consumer goods. Doan recruited runners in the United States to take those e-gift cards and “clear” them by purchasing consumer goods that Doan would re-sell. The scheme made approximately $368,000 in fraudulent orders and netted approximately $180,000 in proceeds.
Acting United States Attorney William D. Weinreb; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit prosecuted the case.
Nearly 18 percent increase in pills collected in Ohio for National Prescription Drug Take Back DayRead the Press Release
The U.S. Drug Enforcement Administration and more than 4,200 of its law enforcement and community partners collected more unused prescription drugs than at any of the 12 previous National Prescription Drug Take Back Day events.
On Saturday, April 29, the event brought in 900,386 pounds (450 tons) at close to 5,500 sites across the nation. Marking the 13th National Prescription Take Back Day since September 2010, these events have altogether collected 8,103,363 pounds (4,052 tons) of prescription drugs.
In Ohio, 33,261pounds of prescription drugs were turned in. That’s an increase of nearly 18 percent from the previous Take Back Day.
The National Prescription Drug Take Back Day Initiative addresses a crucial public safety and public health issue. According to the 2015 National Survey on Drug Use and Health, 6.4 million Americans abused controlled prescription drugs. The study shows that a majority of abused prescription drugs were obtained from family and friends, often from the home medicine cabinet. The DEA’s Take Back Day events provide an opportunity for Americans to prevent drug addiction and overdose deaths.
"Too often, unused prescription drugs find their way into the wrong hands. That's dangerous and often tragic,” said Acting DEA Administrator Chuck Rosenberg. “That's why it was great to see thousands of folks from across the country clean out their medicine cabinets and turn in - safely and anonymously - a record amount of prescription drugs."
In the more two years since new regulations made the disposal of controlled prescription drugs easier for patients and their caregivers, law enforcement agencies, pharmacies, hospitals and clinics have begun continuous collection of these medications. DEA’s next National Prescription Take Back Day is Saturday, October 28. To visit a collection site between Take Back Days, go here or to www.rxdrugdropbox.org.
Mount Pleasant, Texas Man Pleads Guilty to Use of Firearm During Violent CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRIAN THOMAS GREEN, age 44, of Mount Pleasant, Texas, pled guilty to USE AND CARRY OF A FIREARM DURING AND IN RELATION TO A CRIME OF VIOLENCE, in violation of Title 18, United States Code, Sections 924(c)(1)(A), 924(j)(1) and 2; punishable by any term of years up to life imprisonment, and up to a $250,000.00 fine or both.
The Information alleged that on or about the 13th day of July, 2011, in the Eastern District of Oklahoma and elsewhere, the defendant, BRIAN THOMAS GREEN a/k/a COUNTRY, did knowingly carry and use a firearm, that is, a small caliber revolver of unknown manufacture and serial number, during and in relation to a crime of violence for which he may be prosecuted in a court of the United States, that is, Violent Crime in Aid of Racketeering – Murder.
The charges arose from a joint investigation by the Homeland Security Investigations Operation Community Shield Gang Task Force, Oklahoma State Bureau of Investigation, Longview Police Department, Texas Department of Public Safety, Carrollton Texas Police Department, McCurtain County Sheriff’s Office, Panola County Texas Sheriff’s Office, United States Bureau of Prisons, and the Texas Rangers.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Morgantown CPA found guilty of tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal jury found Certified Public Accountant Gregory N. Cason, 45, of Morgantown, West Virginia, guilty of tax fraud today, Acting United States Attorney Betsy Steinfeld Jividen announced.
Cason prepared tax returns for AKA Enterprises, Inc., a business entity operating several business in Morgantown, including a bar and restaurant facility. Cason knowingly underreported income, failed to report expenses paid in cash, and failed to report periodic cash payments to employees.
A federal jury found Cason guilty of two counts of "Aid and Assist in the Preparation and Filing of False Tax Form." He was acquitted of one count of "Conspiracy to Defraud the Internal Revenue Service and to Aid and Assist in the Preparation and Filing of False Tax Forms" He faces up to three years in prison and a fine of up to $250,000.00 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 defendant.
Assistant U.S. Attorneys Robert McWilliams and Sarah W. Montoro prosecuted the case on behalf of the government. The Internal Revenue Service – Criminal Investigation investigated the case.
U.S. District Judge Irene M. Keeley presided.
Miguel Camacho Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MIGUEL CAMACHO, age 42, from Tumon, was sentenced in District Court on May 9, 2017, to a 63-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service, for Conspiracy to Distribute Methamphetamine. The Court also ordered CAMACHO to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On September 28, 2015, CAMACHO waived Indictment and entered a guilty plea to an Information charging him with Conspiracy to Distribute Methamphetamine in violation of 21 U.S.C. §§ 846, 841(a) and (b)(1)(C). The investigation revealed that CAMACHO, and other individuals, used FedEx to distribute large quantities of methamphetamine to Guam from the Philippines. Law enforcement seized over 964 grams of methamphetamine, with a 97.1 percent purity level.
The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations, Alcohol, Tobacco, Firearms and Explosives, Guam Customs and Quarantine Agency, Drug Enforcement Administration and the Guam Police Department. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Miami-Based Violent Criminal Enterprise Members and Associates Indicted for Racketeering, Drug Distribution, Robbery, and Firearms Use in Furtherance of Violent Crimes and Drug TraffickingRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Special Agent in Charge Peter J. Forcelli for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Special Agent in Charge George L. Piro for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Chief Rodolfo Llanes of the City of Miami Police Department (MPD); and Director Juan J. Perez of the Miami-Dade Police Department (MDPD) announced the Indictment of fourteen members and associates of a violent criminal enterprise operating in Miami, Florida, as part of the Southern District of Florida Violence Reduction Partnership (VRP) initiative.
The Indictment resulted from the Operation Northern Light Organized Crime and Drug Enforcement Task Force that began in May of 2015. The Operation Northern Light Task Force is jointly-led by the Miami United States Attorney’s Office, FBI, ATF, and DEA, with participation from MPD, MDPD, and other state and local law enforcement agencies, and focuses on the investigation and reduction of violent crime in the north end of Miami-Dade County.
The Indictment charges the below-named defendants, variously, with racketeering conspiracy; conspiracy to possess with intent to distribute narcotics, including crack cocaine; commercial robberies; and the use of firearms in furtherance of robberies and narcotics trafficking.
Acting U.S. Attorney Benjamin Greenberg said, “Violent enterprises that choose to operate in our South Florida communities are being called to answer for their crimes with federal racketeering charges and a united partnership of law enforcement. Members and associates of criminal organizations that exploit our youth and threaten our citizens are facing stiff penalties. There is no doubt that the lure of gang culture and criminality does not pay.”
ATF Special Agent in Charge Peter J. Forcelli stated, “ATF Special Agents and Task Force Officers stand shoulder-to-shoulder with our federal, state and local partners in the fight against gun violence, which all too often plagues the communities of South Florida. This case is just one example of our collective efforts to take those neighborhoods back, block by block, and to make them safe places to live and raise a family.”
“As gangs have become more violent in our communities, the FBI and its partners will use every legal means available to include federal racketeering statutes to dismantle these criminal enterprises,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Today, the FBI and our partners are serving notice to gang members everywhere, these statutes hold serious consequences to include life in prison.”
“The dismantlement of this violent organization has allowed for a major criminal element to be removed from the community of Allapattah,” stated DEA Special Agent in Charge Adolphus Wright. “The efforts from those involved illustrates the devotion and success of the Violence Reduction Partnership which has allowed law enforcement partners at the federal and local levels to work together to rid communities of the criminal afflictions which has plagued them for far too long, and to continue efforts to keep these communities as safe as possible.”
MPD Chief Rodolfo Llanes stated, “The Miami Police Department would like to thank its partners in the US Attorney’s Office, FBI, ATF, DEA, and the Miami-Dade Police Department for their outstanding assistance in making this operation a success. By working together, we send a clear message to those individuals who blight our neighborhoods with violence that they will be brought to justice.”
“These indictments are a clear indication of the collaboration between federal and local law enforcement who are committed to stopping the senseless violence in our community,” said Juan J. Perez, MDPD Director. “If you are a criminal committing acts of violence, heed the warning because you will no longer terrorize our neighborhoods. The Miami-Dade Police is committed to this collaborative endeavor and will not stop working toward our goal of establishing a safe and secure environment, free from crime and the fear of crime.”
The following individuals are charged in the Indictment: Antonio Glass, a/k/a [email protected], a/k/a “Tone Bleedin Red (Tone Gone Bag’em),” a/k/a “Money Man Future @S16_Future,” a/k/a “smackvilletone,” a/k/a “Tone Glass,” a/k/a “@tone.glass,” Jermaine Bryant, a/k/a “RNS DSBF Capo,” a/k/a “@d5bf_mc,” a/k/a “Blood @_McMaine06,” a/k/a “Maine,” Curtis Bryant, a/k/a “Snow Luther King Jr.,” a/k/a “Snow Bryant,” a/k/a “Big Momma,” Quincy Bryant, a/k/a “Q,” Levi Bryant, a/k/a “Fish,” Michael Walker, a/k/a “Laid Back ManMan,” a/k/a “Baba,” Reginald Graham, a/k/a “The Real Rico,”a/k/a “To Cool Rico” a/k/a “G’Rico LongLive KingSqueezer,” a/k/a “Reggie,” Daniel Jones, a/k/a “Dodo,” Samuel Hayes, a/k/a “DSBF Jit,” a/k/a “Nba Flame,” a/k/a “Looney Hoe,” a/k/a “Sammy,” Torivis Reginal Ingram, a/k/a “DSBF Mullet,” Mario Rodriguez, a/k/a “Blood,” a/k/a “str8_crackk,” a/k/a “Tuti,” Latitia Houser, a/k/a “Angel G Berry,” a/k/a “BG,” a/k/a “layedback.bg,” a/k/a “Angel Bernadette Wilson,” Donzell Jones a/k/a “Zell,” and Vencess Toby, a/k/a “Vancess O’brien,” a/k/a “Red,” a/k/a “Ruby.”
Since in or around 2000, the Indictment alleges that the defendants based their operations primarily, out of the South Gwen Cherry Housing Complex, in the Allapattah area of Miami. The Indictment further alleges that defendants Glass, J. Bryant, C. Bryant, Q. Bryant, L. Bryant, Walker, Graham, Daniel Jones, Hayes, Ingram and Rodriguez conspired with each other and others to engage in a pattern of racketeering activity that involved murders, threats of murder, armed robberies, narcotics trafficking, and the use of firearms in furtherance of violent crimes and drug trafficking activity.
If convicted, the defendants may face mandatory statutory minimum terms from 10 years’ to life imprisonment, with statutory maximum terms of life imprisonment.
The investigation of this enterprise was jointly led by the ATF, FBI, DEA, MPD, and MDPD. Key participants in the investigation included the MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; the MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. The investigation was also supported by the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force.
The Indictment is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Through the collaborative Violence Reduction Partnership (VRP), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
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.
Mexican Citizen Charged with Possession of Counterfeit Alien Registration CardRead the Press Release
BINGHAMTON, NEW YORK – Jose Guzman-Lopez, 32, found in Ithaca, New York, was charged by complaint today with possession of a forged and counterfeit alien registration card. He made his initial appearance before a United States Magistrate Judge in Syracuse, New York and was ordered detained in U.S. Marshal’s Service custody pending further proceedings, announced United States Attorney Richard S. Hartunian and Acting Field Office Director, Thomas P. Brophy, for United States Immigration and Customs Enforcement/Enforcement and Removal Operations (ICE/ERO).
If convicted Guzman-Lopez faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The defendant may also face deportation or other immigration law consequences if he is found guilty. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Jose Guzman-Lopez was arrested on May 2, 2017 by ICE/ERO deportation officers in Ithaca, New York, and charged with administrative immigration violations. During the arrest, the officers discovered Guzman-Lopez possessed a fraudulent alien registration card in his wallet. Guzman-Lopez is a citizen of Mexico and appears to have no legal status in the United States.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Department of Homeland Security, ICE/ERO, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Maryland Man Sentenced to over 7 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Theodore Gerald Reiss, age 81, of Halethorpe, Maryland today to 90 months in prison, followed by a lifetime of supervised release, for distribution of child pornography.
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; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to his plea agreement, on August 17, 2015, Reiss used a personal computer to distribute, in a peer-to-peer network, a file containing a video of minors engaged in sexually explicit conduct. Additionally, during a search of Reiss’s home on September 9, 2015, investigators found Reiss in possession of various electronic devices and CDs that were later found to contain 291 videos and 29 still images of child pornography.
Acting United States Attorney Stephen M. Schenning commended the FBI, HSI, and the Baltimore County Police Department for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
Mary Holden Ayala Charged with Theft of over $800,000 from Oregon Foster Care Agency Give Us This DayRead the Press Release
PORTLAND, Ore. –A federal grand jury in Portland has charged Mary Holden Ayala, 56, a longtime resident of Portland, with theft of over $800,000, money laundering and filing false personal tax returns. Ayala served as the President and Executive Director of Give Us This Day (GUTD), an Oregon state-licensed private foster care agency and residential program for hard-to-place foster youth, until its closing in September of 2015.
The indictment alleges that between 2009 and 2015, Ayala embezzled at least $800,000 in GUTD funds intended to support foster care services, children and families. In addition to other crimes, the indictment also alleges that Ayala filed false personal income tax returns in tax years 2009 through 2014, and failed to file a personal tax return in 2015.
FBI agents arrested Ayala on May 9, 2017 in Holly Springs, Mississippi. She appeared before a Magistrate Judge in Oxford, Mississippi on May 10, 2017. A separate detention hearing will be held later this week. The government will seek to detain Ayala based on the risk she may fail to voluntarily appear in Oregon if released. Ayala will remain in federal custody pending the outcome of this hearing.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General and the Internal Revenue Service Criminal Investigations.
A copy of the indictment is included as an attachment to this release.
Martin Man Convicted of Drug ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that Arrow Lynn Curry, age 24, of Martin, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance as a result of a federal jury trial in Rapid City, South Dakota. Curry was found not guilty of Use of a Firearm during a Drug Trafficking Crime. The jury returned the verdict on April 20, 2017.
The charge carries a maximum penalty of up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Curry was indicted by a federal grand jury on September 15, 2015.
In December of 2014, Curry conspired and agreed with other persons to intentionally distribute methamphetamine in South Dakota.
This case was investigated by the U.S. Postal Inspection Service, Unified Narcotics Enforcement Team, Bureau of Alcohol, Tobacco, Firearms & Explosives, South Dakota Division of Criminal Investigation, and Pennington County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
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Manhattan Man Sentenced to 10 Years in Prison for $26 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that ALEKSANDR BURMAN, a/k/a “Alexander Burman,” was sentenced today by U.S. District Judge Paul G. Gardephe to 10 years in prison. BURMAN organized and managed a large health care fraud scheme through six medical clinics in Brooklyn, through which BURMAN and his co-conspirators defrauded the Medicare and New York State Medicaid (“Medicaid”) programs of more than $26 million. As part of the scheme, BURMAN and his co-conspirators paid cash kickbacks to elderly and financially disadvantaged patients insured by Medicare and/or Medicaid, to induce those patients to receive medically unnecessary medical services and equipment, and then to bill Medicare and Medicaid for those unnecessary services or for additional non-existent services and equipment. BURMAN pled guilty on March 18, 2016, before U.S. Magistrate Judge Henry B. Pitman to conspiring to commit wire fraud and health care fraud, health care fraud, and committing an offense while on pretrial release in an earlier criminal case.
Acting U.S. Attorney Joon H. Kim said: “Aleksandr Burman victimized both patients and taxpayers. He established and operated six fraudulent medical clinics, bilking Medicare and Medicaid out of more than $26 million. Medicare and Medicaid were established to assist the elderly and disadvantaged, not to enrich corrupt fraudsters.”
According to the Information to which BURMAN pled guilty, other filings in Manhattan federal court, and statements made in connection with BURMAN’s sentencing:
ALEKSANDR BURMAN established six clinics in Brooklyn (the “BURMAN Clinics”) that operated between 2007 and July 2013, which purported to offer medical services and diagnostic testing performed by or under the supervision of licensed medical doctors. Although BURMAN in fact owned and operated the Clinics, he caused them to employ three doctors (the “Clinic Doctors”) and arranged for these doctors to be listed as the respective nominal owners of the Clinics, since New York State law requires that such clinics be owned by health care professionals. Under BURMAN’s direction, employees of the Clinics paid cash kickbacks to elderly and disadvantaged people insured by Medicare and/or Medicaid to undergo unnecessary medical tests and procedures, and then fraudulently billed Medicare and Medicaid for such visits. The bills submitted to Medicare and Medicaid were fraudulent because, among other things, (a) they were for medically unnecessary treatment; (b) patients were paid kickbacks for receiving treatment; and (c) the bills fraudulently claimed that the Clinic Doctors had treated the patients. In other cases, BURMAN and his co-conspirators billed Medicare and Medicaid for medical services and supplies that were not provided at all.
The fraud also extended to other companies. For example, prescriptions from the doctors at the BURMAN clinics were used by a supply company that BURMAN partly owned to bill Medicaid for more than $3.5 million in durable medical equipment such as adult diapers, many of which were never provided to patients. Similarly, referrals from these same doctors were used by transportation companies to bill Medicaid for millions of dollars for medically unnecessary ambulette services.
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In addition to his prison term, BURMAN, 55, a resident of Manhattan, was ordered to pay $16,686,811 in forfeiture, of which $1.8 million, plus 22 pieces of real estate, have already been forfeited. BURMAN was also sentenced to three years of supervised release and a restitution order of $18,683,691. BURMAN was immediately remanded to the custody of the U.S. Bureau of Prisons.
Nine former employees of the BURMAN clinics, as well an additional associate, are facing charges in a separate case for related conduct. Those defendants are awaiting trial before United States District Judge Lorna G. Schofield in United States v. Vaid.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney David Raymond Lewis is in charge of the prosecution.
Manchester Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
Concord, N.H. - Acting United States Attorney John J. Farley announced that Christian Cherry, 33, previously of Manchester, New Hampshire, pleaded guilty today to being a felon in possession of firearm.
According to court documents and statements made in court, members of Manchester Police Department responded to a 911 call on August 13, 2016, regarding a reported domestic dispute. Upon arrival, they encountered Cherry in his vehicle in the parking lot of the residence, and his then-girlfriend inside the apartment. Once in the apartment, officers observed visible signs of a struggle, and witnesses reported the presence of a firearm. Officers ultimately obtained a search warrant for the residence and recovered two Smith & Wesson handguns in a bedroom belonging to the defendant. One of the firearms had been reported stolen to Manchester Police in June 2016. Cherry was prohibited from possessing any firearm as a result of at least one prior felony conviction.
Cherry was indicted by a federal grand jury on October 19, 2016. He has been in custody since his arrest on November 17, 2016.
Cherry is scheduled to be sentenced on August 23, 2017.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Man and Woman Charged with Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man and a Crookston, Minnesota, woman have been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
June Swalley, a/k/a June Einspahr, a/k/a June Dmytrask, age 31, and Jeremey White Horse, age 40, were indicted on February 15, 2017. White Horse appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2017, and Swalley appeared before U.S. Magistrate Judge Mark A. Moreno on May 9, 2017. They both pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 2 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 30, 2016, Swalley and White Horse knowingly and intentionally possessed with intent to distribute a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment also alleges that on July 21, 2016, White Horse again knowingly and intentionally possessed with intent to distribute a detectable amount of methamphetamine.
The charges are merely accusations and Swalley and White Horse are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Swalley was remanded to the custody of the U.S. Marshals Service pending trial, and White Horse was released on bond. A trial date has been set for June 27, 2017.
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Man Sentenced to 31 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
St. Thomas, USVI – Melvin Petersen, 55, of St. Thomas, was sentenced today to 31 months in prison for possession of cocaine with intent to distribute, Acting United States Attorney Joycelyn Hewlett announced. District Court Judge Curtis V. Gomez also sentenced Petersen to three years of supervised release, and ordered him to forfeit $6,726 to the United States.
On December 12, 2016, Petersen pleaded guilty to possession with intent to distribute cocaine. According to documents filed with the court, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant on Petersen’s residence on September 27, 2016, and found him in possession of approximately 280 grams of cocaine and $6,726 in cash. Petersen had no lawful employment.
This case was investigated by the ATF. It was prosecuted by Assistant United States Attorney Meredith J. Edwards.
MS-13 Gang Members and Associate Charged with Attempted Murder in Queens ShootingRead the Press Release
Earlier today, Jose Gonzalez, Kevin Paniagua and Francisco Ramos were arrested and charged with assault and attempted murder in aid of racketeering, along with a related firearms charge by members of the Federal Bureau of Investigation (FBI) and the New York City Police Department (NYPD). The defendants’ initial appearance is scheduled for this afternoon before United States Magistrate Judge Cheryl L. Pollak, at the federal courthouse in Brooklyn.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to court filings, Gonzalez, also known as “Flaco,” and Paniagua, also known as “Stomper,” are members of the La Mara Salvatrucha, or MS-13, and Ramos is an MS-13 associate. On October 23, 2016, Ramos drove Gonzalez, Paniagua and another gang member to Jamaica, Queens, in the vicinity of 179th St. and 90th Ave., allegedly to assault an individual targeted because they believed he was a member of one of MS-13’s chief rivals, the 18th Street gang. Gonzalez, Paniagua and another MS-13 member beat the victim viciously and then Paniagua pulled out a gun and shot the victim in the head. Paniagua attempted to shoot the victim a second time, but the gun apparently malfunctioned. The victim is now a paraplegic as a result of the shooting.
“As alleged in the complaint, the defendants were members and an associate of MS-13, an international gang known for its culture of murder,” said Acting United States Attorney Rohde. “They sought to spread fear throughout the community by attempting to kill an individual they suspected to be a rival gang member. We will work with our law enforcement partners to make our communities safer by holding accountable those who are responsible for such acts of violence.” Ms. Rohde thanked the Queens District Attorney’s Office for its assistance in the investigation.
“MS-13 feeds on violence and chaos, and forces people to live in fear. As we arrest and charge more gang members, they’re seeing they can’t operate in the shadows and escape getting caught,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Office is committed to disrupting violent gangs like MS-13 that operate in the New York metropolitan area. We and our law enforcement partners will not stop investigating and rounding up members who hope to rebuild their hierarchy after we make arrests.”
“Violence, of any kind, has no place in New York City,” said Police Commissioner O’Neill. “The defendants find themselves under arrest and facing serious charges for an attempted murder, as alleged in the complaint.”The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore and Rena Paul are in charge of the prosecution.
The Defendants:
Jose Gonzalez (“Flaco”)
Age: 18
Queens, New YorkKevin Paniagua (“Stomper”)
Age: 18
Queens, New YorkFrancisco Ramos
Age: 23
Queens, New YorkE.D.N.Y. Docket No. 17-MJ-423
Lower Brule Man Charged with Robbery, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Robbery, Assault With a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Kyle Flute, a/k/a Kyle Pretty Sounding Flute, age 28, was indicted on March 22, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 4, 2016, Flute took and attempted to take by force, violence, and intimidation, money and checks from the victim, who he assaulted in the process with a wood board, causing serious bodily injury.
The charges are merely accusations and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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Leader of A Multi-State Heroin Trafficking Organization Sentenced to 300 Months in PrisonRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the sentencing of OMAR SHARIF BEASLEY, 39, for leading a multi-state heroin trafficking conspiracy. BEASLEY, who was charged along with 40 other co-defendants on May 20, 2015, pleaded guilty to Count 1 of the indictment. The defendant was sentenced today before Chief Judge John R. Tunheim in United States District Court in Minneapolis, Minn.
“Omar Beasley led a drug trafficking organization that flooded the Red Lake and White Earth Indian Reservations with heroin and other deadly drugs,” said Acting U.S. Attorney Gregory Brooker. “I would like to thank the dedicated prosecutors and law enforcement partners who worked tirelessly to shut down this organization and bring this dangerous drug trafficker to justice.”
DEA Supervisory Special Agent Kent Bailey said: “This defendant is a career criminal who preyed on the citizens of Minnesota and the surrounding area with complete disregard for the community’s health and welfare. Our communities will be much safer with him behind bars for a long period of time.”
Red Lake Police Department’s Public Safety Director William Brunelle said: “The successful cooperation and outstanding partnership of both tribal and federal agencies has clearly demonstrated a precise and orchestrated strike against drug dealers in Indian Country. Today’s sentence sends a strong message that tribal lands are no place to sell your drugs.”
“Justice was served today,” stated ATF Special Agent in Charge James Modzelewski. “Although we were able to remove one trafficker from the drug ring, we all need to remain vigilant. Others will likely follow. I am confident that with the strong partnerships we have built throughout this investigation anyone willing to put themselves in a similar position as Omar Beasley will see the same fate. I want to thank all of our partners for the tremendous job on this investigation. ATF is proud to be a part of this collective investigative effort.”
Special Agent in Charge of the Federal Bureau of Investigation Minneapolis Division Richard Thornton said: “The sentence handed down today reflects the seriousness of the major drug trafficking crimes committed by the defendant. Our communities are much safer when drug traffickers such as this are held accountable for the havoc they have caused and lives they have ruined. This case sends a strong message that together with our law enforcement partners we will arrest those who sell drugs for a living and argue for substantial prison terms.”
Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans said: “Heroin and prescription opioids have a devastating effect on people in our communities and the loved ones of those afflicted with this addiction. Holding Mr. Beasley accountable for the harm he inflicted demonstrates that we will pursue anyone supplying these dangerous drugs in our state.”
According to the defendant’s guilty plea and documents filed in court, from April 2014 through April 2015, OMAR SHARIF BEASLEY led a drug trafficking conspiracy in which he recruited drug sources, managers, distributors, facilitators, couriers and drivers to bring heroin and other drugs to the Red Lake and White Earth Indian Reservations in Minnesota and Native American communities in North Dakota. BEASLEY would travel from Minneapolis, Minn. to Red Lake, Minn., White Earth, Minn., and to North Dakota to provide drugs to co-conspirators for distribution on the Indian Reservations. BEASLEY would then return to major cities in Minnesota, Wisconsin, Illinois, and Michigan to replenish the supply of drugs to bring into Indian Country. BEASLEY and his co-conspirators also maintained drug stash houses on the reservations and gave the proceeds of the drug sales to co-conspirators.
To date, 39 co-defendants have pleaded guilty for their respective roles in the conspiracy. One defendant remains at large:
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WILLIAM DAVID ALONZO, 25, was sentenced on March 2, 2017, to 120 months in prison and four years of supervised release on Counts 8 and 10 of the indictment.
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TRAVIS JAMES BAKER, 27, was sentenced on April 14, 2016, to time served and three years of supervised release on Count 2 of the indictment.
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ROSE LYNN BARRETT, 29, was sentenced on April 28, 2016, to 39 months in prison and three years of supervised release on Count 1 of the indictment.
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SONNIE MARIE BARRETT, 28, was sentenced on December 2, 2015, to 60 months in prison and four years of supervised release on Count 1 of a felony Information.
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CALVIN BEASLEY, 60, will be sentenced on June 29, 2017
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TIMOTHY JOSEPH BEAULIEU, JR., 35, was sentenced on January 18, 2017, to 60 months in prison and five years of supervised release on Count 8 of the indictment.
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WILLIE BELLAMY, JR., 69, will be sentenced on May 18, 2017.
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LAMARCUS ANTONIO BROCK, 39, was sentenced on January 18, 2017, to 60 months in prison and five years of supervised release on Count 1 of a felony Information.
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MICHAEL TRAVELL COLLINS, 40, will be sentenced on August 24, 2017.
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MICHAEL JOSEPH DOMINGUEZ, 31, was sentenced on April 14, 2016, to 72 months in prison and four years of supervised release on Count 1 of a felony Information.
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STACEY RAE DUCHAINE, 26, was sentenced on August 3, 2016, to time served and three years of supervised release on Count 1 of the indictment.
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ERNESTINE DUKES, 46, was sentenced on May 10, 2016, to 60 months in prison and four years of supervised release on Count 1 of the indictment.
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MICHAEL LENIOR DUKES, 49, was sentenced on February 24, 2017, to 120 months in prison and five years of supervised release on Count 1 of the indictment.
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BRENDA ANN FAGAN, 69, will be sentenced on May 18, 2017.
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WILLIAM JAMES FASTHORSE, 27, was sentenced on May 8, 2017, to time served and three years of supervised release on Count 1 of the indictment.
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APRIL MARIE GRAVES, 33, was sentenced on October 26, 2016, to 20 months in prison and four years of supervised release on Count 1 of the indictment.
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STEPHEN MARTIN HOLLIS, 39, was sentenced on April 19, 2016, to 60 months in prison and four years of supervised release on Count 12 of the indictment.
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YALONZO RAMON HULL, 52, will be sentenced on June 29, 2017.
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DURIAL JOHN JACKSON, 31, was sentenced on December 16, 2016, to 12 months and 1 day in prison and three years of supervised release on Count 1 of the indictment.
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JUSTIN LEE JOHNSON, 26, was sentenced on December 14, 2016, to 65 months in prison and three years of supervised release on Count 1 of the indictment.
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VELVET ILENE JOHNSON, 46, was sentenced on August 23, 2016, to 22 months in prison and three years of supervised release on Count 1 of the indictment.
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GENE MICHAEL KEEZER, 39, was sentenced on January 25, 2017, to 96 months in prison and three years of supervised release on Count 1 of a felony Information.
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NAKOYA HARRIS KEEZER, 39, was sentenced on February 16, 2017, to 30 months in prison and three years of supervised release on Count 1 of the indictment.
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RODNEY LEE KEEZER, 38, was sentenced on April 26, 2017, to 60 months in prison and five years of supervised release on Count 1 of the indictment.
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JARVIS ALLEN KING, 25, was sentenced on December 16, 2016, to 30 months in prison and three years of supervised release on Count 1 of the indictment.
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JODI LYNN KJOLBERG, 46, was sentenced on September 23, 2016, to 18 months in prison and three years of supervised release on Count 4 of the indictment.
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YVETTE KOUAYARA, 55, was sentenced on March 2, 2017, to time served and three years of supervised release on Count 1 of the indictment.
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JENNIFER LYNN OPPEGARD, 29, was sentenced on April 14, 2016, to 30 months in prison and three years of supervised release on Count 1 of the indictment.
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JESSICA RAE OPPEGARD, 38, was sentenced on February 24, 2017, to a three year term of probation on Count 1 of a felony Information.
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LEE ALLEN OPPEGARD, 41, was sentenced on January 18, 2017, to 40 months in prison and three years of supervised release on Count 1 of the indictment.
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BURNEY ABDULAH PEOPLES, 29, remains at large.
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CHRISTOPHER ERVING PEOPLES, 35, was sentenced on July 11, 2016, to 8 months in prison and three years of supervised release on Count 1 of the indictment.
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RAVONNA RAYE PEOPLES, 45, was sentenced on September 7, 2016, to time served and three years of supervised release on Count 1 of the indictment.
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LUCAS JOHN PETERSON, 28, was sentenced on April 28, 2017, to 120 months in prison and five years of supervised release on Count 1 of the indictment.
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DOERON EARL RAYFORD, 43, was sentenced on December 22, 2016, to 110 months in prison and five years of supervised release on Count 1 of the indictment.
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SHERRLENE ROSE ROBERTS, 69, was sentenced on January 19, 2017, to a two year term of probation on Count 1 of a felony Information.
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MAISIE ANN SARGENT, 27, was sentenced on August 26, 2016, to 30 months in prison and three years of supervised release on Count 1 of the indictment.
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DALE ANDREW SIGANA, 34, was sentenced on July 5, 2016, to 120 months in prison and five years of supervised release on Count 1 of the indictment.
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SARAH ELIZABETH THOMPSON, 32, was sentenced on December 22, 2016, to 110 months in prison and five years of supervised release on Count 1 of the indictment.
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ROBYN JOANNE WIPF, 35, was sentenced on April 27, 2017, to a three year term of probation on Count 1 of the indictment.
This case is the result of a cooperative investigation conducted by the Red Lake Police Department, the White Earth Police Department, the Paul Bunyan Drug Task Force, the FBI Safe Trails Task Force, the West Central Minnesota Drug and Violent Crimes Task Force, the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Minnesota Bureau of Criminal Apprehension, assisted by the following law enforcement agencies and task forces, Becker County Sheriff’s Office, Beltrami County Sheriff’s Office, Bemidji Police Department, Bloomington Police Department, Bureau of Indian Affairs, Clearwater County Sheriff’s Office, Customs and Border Protection, Detroit Lakes Police Department, Frazee Police Department, Hubbard County Sheriff’s Office, Mahnomen County Sheriff’s Office, Minnesota Department of Correction, Minnesota State Highway Patrol, Lakes to River Drug Task Force, North Dakota Bureau of Criminal Investigation, Pine to Prairie Drug Task Force, and Wisconsin Department of Criminal Investigation.
This case was prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Melinda A. Williams.
Defendant Information:
OMAR SHARIF BEASLEY, 39
Anoka County Jail
Convicted:
- Conspiracy to Distribute Heroin, Methamphetamine, Oxycodone, Hydromorphone, Hydrocodone, and Methadone, 1 count
Sentenced:
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300 months in prison
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10 years of supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Las Vegas Man Pleads Guilty to Committing Two Armed Robberies in the Same WeekRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who committed two armed robberies in the Las Vegas Valley in the same week pleaded guilty today, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Walid H. Abdulla, 65, pleaded guilty to one count each of bank robbery and interference with commerce by robbery. United States District Judge Howard D. McKibben accepted the guilty plea and scheduled sentencing for Sept. 19, 2017.
According to admissions made in his plea agreement, on Jan. 30, 2017, Abdulla approached a clerk at a CVS Pharmacy with his gaming ticket from the pharmacy’s slot machine area and demanded the money from the cash register. He showed the clerk what appeared to be a semi-automatic handgun in his waistband and told the clerk to put the money inside a bag, stating, “you won’t get hurt if you just hurry.” Abdulla fled with $1,210 in cash. Then, on February 6, Abdulla entered a Nevada State Bank and presented a robbery note demanding money from the vault. He showed the bank teller what appeared to be a semi-automatic handgun and fled with $5,000 in cash. Abdulla was identified as the robber by the victims of his crimes, he was observed by video surveillance at each robbery, and a forensic examination identified his fingerprint on the slot machine he used at the CVS.
The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kilby Macfadden.
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Kellyville Woman Sentenced to 46 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that BRENDA ALLEN AIRINGTON, age 55, of Kellyville, Oklahoma, was sentenced to 46 months imprisonment and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
The Superseding Indictment alleged that beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: conspired to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Justice Department Seeks to Shut Down South Florida Tax Return PreparersRead the Press Release
Three related return preparers in South Florida prepare false tax returns for their customers, according to a new civil lawsuit filed by the Justice Department. The suit filed in the Southern District of Florida asks the court to permanently bar Fred Pickett Jr. and his children, Jalisa Steele and Fred Pickett III, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others. According to the complaint, Pickett Jr., Steele, and Pickett III, all of Belle Glade, Florida, operate a tax return preparation business with several stores in South Florida under the names of Five Star Tax Services, Five Star Financial, and Millenium [sic] Tax Professionals. According to the complaint, the business has prepared over 8,000 returns since 2011 from the store locations in Belle Glade, Clewiston, Moore Haven, and La Belle, Florida.
The complaint alleges that by repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of their customers, the defendants have caused the United States to lose substantial tax revenue. According to the complaint, the defendants misreport income, deductions, and credits on their customers’ tax returns by:
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Fabricating businesses and business-related profits or losses;
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Manipulating, maximizing, or falsely claiming the Earned Income Tax Credit (EITC);
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Claiming false education credits;
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Claiming spurious fuel tax credits;
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Fabricating retirement account contributions and deductions; and
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Failing to provide customers with complete copies of their tax returns.
One of the alleged examples of such conduct involves a married couple whose tax returns were prepared by Pickett Jr. According to the complaint, unbeknownst to the couple, Pickett Jr. reported a fake equipment business on their joint 2013 and 2014 tax returns, with combined losses that exceeded $90,000. These bogus losses, along with other retirement account-related fabrications, caused the couple to receive significantly inflated refunds each year, according to the complaint.
The complaint further alleges that the Internal Revenue Service (IRS) audited 55 tax returns prepared by the defendants. The IRS determined that each of these 55 tax returns resulted in a deficiency with an average tax deficiency of $5,891 per return and a total revenue loss of $323,986, according to the complaint.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Joseph A. Jones Sentenced for Felon in Possession of FirearmRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOSEPH ANTHONY JONES, age 46, from Ordot, was sentenced in District Court to an eight-month term of imprisonment, to be followed by three years of supervised release, and 50 hours of community service for Felon in Possession of a Firearm. The Court also ordered JONES to pay a mandatory $100 assessment fee.
On March 30, 2016, JONES was charged by Indictment with Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1), and Drug User in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(3). On April 27, 2016, JONES entered a guilty plea to the Felon in Possession of a Firearm charge. During December 2015, GPD and ATF executed a search warrant at the defendant’s residence in Ordot. Law enforcement seized a Ruger Mini-14, .223 caliber rifle, from inside the residence. Jones had previously been convicted of two felony drug charges in the Superior Court of Guam.
Acting U.S. Attorney Anderson stated, “Armed felons and unlawful drug users pose a grave danger to our communities. Federal law prohibits the possession of firearms and ammunition by such individuals. The Department of Justice will continue to focus resources on these prosecutions in an effort to prevent violent crime.”
The investigation was conducted by the ATF and the Guam Police Department, Special Investigation Section. The case was prosecuted by Frederick A. Black, Assistant United States Attorney for the District of Guam.
Jerry Francisco Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JERRY FRANCISCO, age 42, from Tamuning, was sentenced in District Court to a six month term of imprisonment, to be followed by six months of home detention, two years of supervised release, and 50 hours of community service, for Conspiracy to Possess with Intent to Distribute Methamphetamine. The Court also ordered FRANCISCO to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On March 23, 2016, FRANCISCO was charged by Indictment with Conspiracy to Possess with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C). He entered a guilty plea to the charge on March 31, 2016. The investigation revealed that FRANCISCO, and other individuals, in July of 2012 agreed to use the mail system to distribute methamphetamine on Guam. Law enforcement seized over 6.76 grams of methamphetamine, with a 99 percent purity level.
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration. The case was prosecuted by Frederick A. Black, Assistant United States Attorney for the District of Guam.
Jacksonville Man Arrested and Charged with Distribution of Child PornographyRead the Press Release
Jacksonville, Florida – Acting United States Attorney W. Stephen Muldrow announces the filing of a criminal complaint charging Jason James Neiheisel (27, Jacksonville) with distributing child pornography over the Internet. He faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. He was arrested by FBI agents at his residence on May 4, 2017.
According to the
criminal complaint , during an online investigation of individuals using the Internet to trade child pornography, an FBI task force officerdownloaded several videos depicting children being sexually abused from a computer at Neiheisel’s residence. When agents made contact with him at his home, Neiheisel told them, among other things, that he had been downloading child pornography for “a while,” and that he enjoyed the “thrill of the hunt” to see what kind of child pornography files he could find.
This case was investigated by the Columbia County Sheriff’s Office and the FBI. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Hulbert Man Sentenced to 100 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that NATHAN ROWDEN GREEN, age 29, of Hulbert, Oklahoma, was sentenced to 100 months imprisonment and 4 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Information alleged that on or about December 14, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.