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Monday 27 March 2017
Former Brooklyn Assistant District Attorney Charged with Illegally Wiretapping Cellular TelephonesRead the Press Release
A two-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), with illegally intercepting oral and electronic communications occurring over two cellular telephones. The defendant is scheduled to be arraigned before United States Magistrate Judge Vera M. Scanlon at the Brooklyn federal courthouse this afternoon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the indictment, for nearly 16 months between approximately June 2015 and November 2016, Lenich created fraudulent judicial orders as part of her illegal wiretapping scheme. Specifically, she forged the signatures of multiple New York State judges onto the illicitly created judicial orders -- orders that purportedly authorized the KCDA to intercept communications occurring over two cellular telephones. Lenich then misappropriated KCDA equipment to intercept, monitor, and record the communications to and from the two cellular telephones. In furtherance of her scheme, Lenich also created fraudulent search warrants, which she then used to unlawfully obtain text messages relating to the two cellular telephones.
“Tara Lenich violated her duty to the public when she engaged in a long-running scheme to forge judicial documents in order to illegally wiretap telephones,” stated Acting United States Attorney Rohde. “Lenich’s prosecution reflects the Office’s commitment to protecting the public from the misuse of law enforcement tools, particularly by those entrusted to use those tools in accordance with the laws they have sworn to uphold.” In announcing the indictment, Ms. Rohde thanked the Kings County District Attorney’s Office for their cooperation.
“In this case, as alleged, Lenich's illegal wiretapping scheme demonstrates an abuse of power that won't be tolerated within our criminal justice system. Unfortunately, sometimes those close to the law stray far from the truth. As demonstrated today, however, everyone is expected to play by the rules; for this we'll make no exceptions,” stated Assistant Director-in-Charge Sweeney.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to five years’ imprisonment on each count.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 41
New York, NYE.D.N.Y. Docket No. 17-CR-154
Former Bosnian Army Prison Guard Sentenced to 18 Months in Prison for Fraudulently Procuring U.S. CitizenshipRead the Press Release
A Jacksonville, Florida man was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.
Slobo Maric, 56, was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked. On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.
Former Bosnian Army Prison Guard Sentenced to 18 Months in Prison for Fraudulently Procuring U.S. CitizenshipRead the Press Release
Jacksonville, FL – Slobo Maric (56, Jacksonville) was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting U.S. Attorney W. Stephen Muldrow and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Maric was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked. On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.
Former Bakersfield Union Officer Pleads Guilty to EmbezzlementRead the Press Release
BAKERSFIELD, Calif. — Edward Padilla, 56, of Bakersfield, pleaded guilty today to embezzlement of union funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2012 and December 31, 2014, while Padilla was the secretary-treasurer and business manager of the Bakersfield office of a construction workers’ union, he embezzled approximately $168,780 from the union. He did this by writing unearned salary checks, unauthorized sick leave payments, and paying for personal expenditures on his union credit cards. Padilla used a signature stamp for the union president’s signature on the unauthorized checks and concealed the checks from the president. As part of the plea agreement, Padilla has agreed to pay $168,780 in restitution to the union.
This case is the product of an investigation by the United States Department of Labor. Assistant United States Attorney Angela Scott is prosecuting the case.
Padilla is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 10, 2017, at 10:00 a.m. Padilla faces a maximum statutory penalty of five years in prison and a $10,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Florida Man Ordered to Pay over $1.1 Million in Restitution to Victims of Sex Trafficking and Interstate Prostitution SchemeRead the Press Release
U.S. District Judge Carlos E. Mendoza of the Middle District of Florida today ordered defendant Abdullah Hamidullah, 43, to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced the defendant to serve 482 months’ imprisonment and a lifetime of supervised release. On June 17, 2016, the defendant pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.
At the Feb. 24, 2017 sentencing hearing, the court made detailed findings, noting that the defendant engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which the defendant perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”
“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida. “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Florida Man Ordered to Pay over $1.1 Million in Restitution to Victims of Sex Trafficking and Interstate Prostitution SchemeRead the Press Release
Defendant Previously Sentenced to Over 40 Years’ Imprisonment Ordered to Pay Restitution to Six Victims of Interstate Sex Trafficking and Prostitution Enterprise
Orlando, FL - U.S. District Judge Carlos E. Mendoza today ordered Abdullah Hamidullah (43) to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced Hamidullah to serve 482 months’ imprisonment and a lifetime of supervised release. On June 17, 2016, he pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.
At the Feb. 23, 2017, sentencing hearing, the court made detailed findings, noting that Hamidullah engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which Hamidullah perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”
“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow. “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Final Defendant Sentenced in Murder, Racketeering CaseRead the Press Release
COLUMBUS, Ohio – The last of 20 defendants in a gang-related racketeering and murder case received his sentence today in U.S. District Court.
Lance Green, 37, formerly of Columbus, was sentenced to 17 years in prison. He pleaded guilty in June before his slated trial in July to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentences handed down by U.S. District Judge Algenon Marbley.
The 20 individuals, associated with the Short North Posse’s “Cut Throat Committee,” were indicted in October 2014 in a racketeering case, with charges that include 14 previously unsolved murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery. Of the 20 total defendants, six were convicted at trial, 13 pleaded guilty and one has died.
Their sentences range from seven years in prison to multiple life terms with no chance of parole. One of the group’s “bosses,” Robert Ledbetter, was sentenced to several consecutive life sentences last week.
“Let this serve as a clear message that if you terrorize our streets with violence you will spend significant time in federal prison, and for the six men in this case who were convicted at trial, they’ll be spending the rest of their lives there,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Dallas Baldwin's Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who represented the United States in these cases.
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Ecuadoran Brothers Indicted for Heroin Distribution and Money Laundering ConspiracyRead the Press Release
Two Ecuadoran brothers are indicted in the Western District of Washington for ten felony counts related to distribution of heroin and laundering the proceeds of their drug sales, announced U.S. Attorney Annette L. Hayes. FREDY RAMON GUTAMA-GUTAMA, 25, and FABIAN MARTIN GUTAMA-GUTAMA, 20, both of Lynnwood, Washington, were observed by law enforcement between May 2016 and January 2017 making drug sales near various parks in north Seattle and hiding their drug supply in various public locations. The men will make their initial appearance on the indictment in Seattle today.
“Heroin is wreaking havoc across every kind of community in western Washington– rural, suburban and urban,” said U.S. Attorney Annette L. Hayes. “In this case, the defendants were peddling this devastating drug in and around public parks in North Seattle and elsewhere. The investigation uncovered the fact that the defendants–in an apparent effort to shield themselves from arrest–stored significant quantities of their heroin supply in public places near parks where they operated.”
According to records filed in the case, the defendants repeatedly sold heroin to a person working with law enforcement and sent the cash proceeds both across the country and to Ecuador. While under law enforcement surveillance, the conspirators stashed some of their drugs in a rockery in the Roosevelt neighborhood of north Seattle that was very near the park and children’s playground at the Ravenna-Eckstein Community Center. Law enforcement seized the drugs. The conspirators were also observed making drug sales at Green Lake Park and in Northacres Park. The men hid their drugs in a public place to reduce their risk of being caught by law enforcement with significant quantities of heroin in their possession.
FREDY RAMON GUTAMA-GUTAMA is charged in all ten counts: conspiracy to distribute heroin; conspiracy to commit money laundering; five counts of distribution of heroin; and three counts of distribution of heroin with intent to distribute. FABIAN MARTIN GUTAMA-GUTAMA is charged in both conspiracy counts and in three counts of distribution of heroin and two counts of possession of heroin with intent to distribute.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Sarah Vogel and Kate Vaughan.
Durant Woman Pleads Guilty to Theft of Public MoniesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JADE BELINDA ADAMS, age 33, of Durant, Oklahoma, pled guilty to THEFT OF PUBLIC MONIES, in violation of Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about September 2012 to on or about November 30, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly steal and purloin monies in excess of $1,000.00 belonging to the United States.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, 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. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Edward Snow represented the United States.
Dunbar Man Sentenced to Ten Years for His Second Child Pornography OffenseRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Scott Wellensiek, 43, of Dunbar, Nebraska, was sentenced in federal court in Omaha for possessing child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Wellensiek to 10 years of imprisonment. There is no parole in the federal system. After his release from prison, Wellensiek will begin a 15-year term of supervised release.
Wellensiek was previously convicted of possessing child pornography in federal court in Wyoming. He was sentenced to 7 days of imprisonment to be followed by a 10-year term of supervised release. While on supervised release, he moved to Dunbar, Nebraska.
In September 2016, investigators with the Nebraska Attorney General’s Office downloaded images of child pornography from a computer at Wellensiek’s residence. A search warrant was executed on October 3, 2016. Wellensiek admitted to downloading child pornography while on supervised release for a child pornography offense. He deleted the child pornography after downloading and viewing. The images downloaded by law enforcement from Wellensiek’s computer involved prepubescent children engaged in sexual activity with adults.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Corey Lebron Blevins, 24, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
Between July and October of 2015, Blevins and others distributed heroin that was transported from Michigan to the Huntington area. On July 9, 2015, the Huntington FBI Drug Task Force executed a search warrant at 126 Olive Street in Huntington. Agents located Blevins and another individual in the residence. Agents also seized over $6,000 in cash and an AR-style pistol that Blevins admitted he possessed. On October 5, 2015, the Huntington FBI Drug Task Force conducted another search at 1826 Old 16th Street Road in Huntington. Agents again located Blevins inside the residence, as well as two other individuals. During the search, agents seized over 300 grams of heroin and over $51,000 in cash. Blevins admitted that he and the other individuals intended to sell the heroin.
Blevins faces at least five and up to 40 years in federal prison when he is sentenced on June 26, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defendant Linked to Murder of Seaside Police Sergeant Sentenced to 12 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Monday, March 27, 2017, Jamie Lee Jones, 45, a former resident of Nevada, was sentenced to twelve years in federal prison by U.S. District Court Judge Michael H. Simon. Jones had previously pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Jones was living in Seaside, Oregon in early February 2016 during the time of the alleged offenses.
Jones’s federal charges stemmed from a multi-agency investigation tracing the firearm used in the February 5, 2016 homicide of Seaside Police Sergeant Jason Goodding. On the evening of February 5, Seaside resident Phil Ferry shot and killed Sergeant Goodding using a .380 caliber Davis P380 pistol. During the shootout, another Seaside officer shot and killed Ferry. ATF agents worked with local law enforcement officers to investigate how Ferry had obtained the .380 caliber pistol. Their investigation ultimately led to Jones.
"The tragic and senseless death of Sergeant Gooding underscores the very real danger law enforcement officers face every day while faithfully serving their communities," said Billy J. Williams, United States Attorney for the District of Oregon. "We owe a tremendous debt of gratitude to Sergeant Goodding for his service and his loved ones for their incredible sacrifice. It is maddening to know that criminals involved in drug trafficking and the illegal possession of firearms continue to present a danger to our communities. I want to thank ATF and the local law enforcement agencies who pursued this investigation," continued U.S. Attorney Williams. "We will continue to work with our local, state, tribal and federal law enforcement partners to identify the most effective legal venue (federal or state) to ensure an appropriate penalty for these types of offenders. It is our sincere hope that this sentence will offer some measure of justice – albeit small – to Sergeant Goodding’s family and the Seaside community."
"The murder of Sgt. Goodding was a tragedy. ATF is proud to have been able to work alongside our partner agencies to identify and bring Jamie Lee Jones to justice," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "The men and women of ATF work tirelessly to rid our communities of the scourge of violence and those criminals like Jamie Lee Jones, whose lawless actions contributed to the death of a law enforcement officer."
Interviews with informants and tips from the Seaside community indicated that Ferry stole one of two firearms Jones possessed while he was asleep at a local drug house. Jones was furious when he woke to discover that someone had stolen one of his firearms and his methamphetamine. Jones then punched a nearby drug customer, fired his second firearm in the direction of several other residents and warned them not to talk to police. Neighbors called police to report the shots fired, but all the guests and residents had fled prior to their arrival.
Investigators obtained search warrants for Jones’s Seaside apartment and vehicle and seized distribution quantities of methamphetamine, a digital scale, packaging material and two cell phones. Jones admitted he knew Ferry, and that he and Ferry had a disagreement about Ferry’s owing Jones a drug debt. Later, investigators obtained a search warrant to examine Jones’s phones where they found messages related to drug trafficking and sales.
In a message dated February 3, 2016, a customer advised Jones, "I’ll be by at five thirty with the pistol. Erase this text." Investigators identified this customer and interviewed him regarding the transfer of a firearm to Jones. The customer admitted to being a heroin addict and to purchasing small quantities of heroin from Jones. The customer explained that on February 3, 2016, while desperately ill from heroin withdrawal, he agreed to trade a .357 caliber revolver with Jones for less than a gram of heroin.
In light of Jones’s violent conviction history dating back to the early 1990s and his use of violence to traffic drugs, including discharging a firearm at and toward witnesses, the government urged the court to impose a 12-year sentence. According to the prosecutor, "Drug trafficking is a very dangerous business to those who choose to engage in it and, as this case illustrates, can have devastating consequences to many others, even those who devote their lives to protecting our communities."
Multiple agencies participated in the investigation of this case, including the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Clatsop County Sheriff’s Office, Major Crimes Team, and District Attorney’s Office; the Cannon Beach, Seaside, and Astoria Police Departments; the Oregon State Police, and the United States Attorney’s Office for the District of Oregon.
The case was prosecuted by Leah K. Bolstad, Assistant United States Attorney for the District of Oregon.
Citrus Heights Woman Sentenced to 3 Years in Prison for Role in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Dianna Woods, 60, of Citrus Heights, was sentenced today by Senior U.S. District Judge William B. Shubb to three years in prison for four counts of making false statements on loan applications, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at her four-day trial in December 2016, Woods was a licensed real estate salesperson who worked at a company called VLD Realty, doing business as Trade House USA, in the Sacramento area. VLD built and sold houses in residential developments in Sacramento, Carmichael, and Copperopolis. As the housing market began to weaken from 2006 through 2008, VLD sought to sell the houses by offering money to buyers in the form of paying the down payment or giving the buyers money after the transaction, neither of which was disclosed to the lenders.
For her part, Woods purchased two houses based on the undisclosed kickbacks. Further, for the purpose of obtaining mortgage loans to purchase the properties, Woods also signed and submitted loan applications and other documents that contained false statements as to Woods’s income, employment, assets, the purpose of the property, the sales price, and whether the down payment was borrowed. Woods also assisted another buyer in making false statements to the lenders to get loans for the purchase of two properties in the housing developments and falsely verified his employment. The banks suffered nearly $2 million in losses with respect to fraudulent transactions in which Woods was involved.
This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Shelley Weger and Todd Pickles prosecuted the case.
Bridgeport Man Sentenced to 6 Years in Prison for Possessing Stolen Gun and SilencerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERTO VASQUEZ, 53, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 72 months of imprisonment, followed by three years of supervised release, for possessing a stolen gun and silencer.
According to court documents and statements made in court, in November 2013, VASQUEZ offered an 18-year-old woman who had just left an abusive relationship to move in with him. After a few weeks, VASQUEZ became physically and sexually abusive toward the woman. The victim subsequently left VASQUEZ without taking her belongings. VASQUEZ then lured her back into his apartment. Once inside, VASQUEZ barricaded the door and closed the windows. He then choked and punched the victim, placed a sock in her mouth and raped her while holding a gun and silencer to her head.
On March 5, 2014, the victim reported the abuse to a Connecticut probation officer and stated that VASQUEZ kept a gun in a hutch in the dining room of the apartment, and a silencer in a closet. Later that day, a Bridgeport Police officer retrieved a loaded .22 caliber semiautomatic pistol from the hutch in VASQUEZ’s apartment. On March 17, 2014, a search of the apartment revealed a .22 caliber silencer. VASQUEZ was arrested at that time.
Both the pistol and silencer had been reported stolen.
Forensic analysis of VASQUEZ’s cellphone revealed a recording of the rape and other recordings that confirmed VASQUEZ’s abuse of the victim.
VASQUEZ has been detained since his arrest. On May 3, 2016, he pleaded guilty to one count of possession of a stolen firearm and one count of possession of a stolen silencer.
VASQUEZ pleaded guilty in state court to unlawful restraint.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department and Connecticut Office of Adult Probation. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bellevue Man who Defrauded Bank, Shipping Companies, Apple and IRS Sentenced to PrisonRead the Press Release
A Bellevue man who defrauded a small bank, Apple Inc., and various shippers of more than $3 million was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. MAZIAR REZAKHANI, 27, lived a lavish lifestyle in a Bellevue penthouse with luxury collector cars in the garage–all financed by his fraud. At the sentencing hearing, U.S. District Judge James L. Robart said REZAKHANI “embarked on a life of crime because of greed and arrogance.”
“This is the familiar story of unrelenting greed and lies winning out over hard work,” said U.S. Attorney Annette L. Hayes. “This defendant could have had all the cars and fancy apartments he wanted by running an honest and successful business. Instead, he deceived everyone in his path resulting in more than $3 million dollars of loss and a lot of innocent bank employees losing their jobs.”
According to records filed in the case, between 2014 and 2015, MAZIAR REZAKHANI changed his business of reselling iPhones overseas to a fraud scheme where he ordered thousands of iPhones and then claimed the actual phones had been stolen from the shipment. In September 2014, REZAKHANI placed an order for 128 cartons of iPhones–1280 phones in all. REZAKHANI paid for the order by charging some of the cost to four different credit cards. REZAKHANI had the phones shipped to a business he co-owned in Portland, Oregon. After picking up the phones, REZAKHANI called Apple in a panic claiming he had discovered that in each carton instead of a phone, there were tiles cut to the size of an iPhone. When Apple refused to give REZAKHANI a refund, he got three of the four credit card companies to reverse the charges making Apple responsible for $342,710. Evidence in the case revealed that REZAKHANI had purchased the tiles himself at local warehouse home improvement stores. REZAKHANI used the stolen iPhones in his reselling business.
In addition to the iPhone fraud, REZAKHANI submitted falsified tax and bank records to Bellevue’s Foundation Bank to get a multi-million dollar line of credit. In all REZAKHANI withdrew some $6.5 million in loan funds from the bank and used some of the money for his personal expenses such as $25,000 for a monthly rent payment for a penthouse; various luxury cars: a BMW, Ferrari Speciale, Ferrari Spider and a Mercedes-Benz; and to pay off more than $400,000 in credit card debt. Some of the money was paid back to Foundation Bank, but REZAKHANI defaulted on $2.8 million. The small bank was sold, and many employees lost their jobs.
Even as that fraud was uncovered by the bank, REZAKHANI tried to start another fraud –this time attempting to defraud a shipper and insurance company. REZAKHANI shipped 116 boxes via Federal Express to a Delaware address. REZAKHANI claimed the boxes contained more than $5 million worth of iPhones. When the boxes were opened they contained a type of pumice brick. REZAKHANI claimed the iPhones had been stolen from Federal Express. But again, REZAKHANI had purchased the pumice brick at a local store. He filed claims with Federal Express, with the insurance company, and with a shipping subcontractor and made complaints to the FBI, FTC, and State of California Department of Insurance. No claims were ever paid.
In July 2016, REZAKHANI pleaded guilty to two counts of mail fraud, one count of bank fraud, and one count of filing a false income tax return. He agreed to a restitution amount of $3,567,756 and is forfeiting the luxury cars and more than $100,000 in cash. Because REZAKHANI substantially underreported his income for 2009-2012, he may owe back taxes and penalties.
The case was investigated by the FBI, Internal Revenue Service Criminal Investigation (IRS-CI) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Brian Werner and Matthew Hampton.
Amarillo Heroin Trafficker Pleads Guilty to Possessing More Than 17,000 Grams of HeroinRead the Press Release
AMARILLO, Texas — Jose Emmanuel Morales Rittingger, 29, appeared today before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Rittingger faces a maximum statutory penalty of life in federal prison and a fine not to exceed $1 million. Sentencing is scheduled for July 10, 2017. Rittingger is a Mexican citizen and was in the United States illegally at the time of the offense. He will be deported after serving his sentence.
Co-defendant Joel Lara Merida, 31, was sentenced on Monday, February 27, 2017 by U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016.
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor are in charge of the prosecution.
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Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Paul A. Light, age 46, of Albany, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Light maintained a collection of least 5,027 image files and 597 video files containing child pornography stored on at least 9 different computers and external hard drives. Using an online file-sharing website, Light distributed and received child pornography on at least 7 occasions from approximately March 28, 2015 through October 26, 2015.
Sentencing is scheduled for July 24, 2017 before Senior United States Judge Gary L. Sharpe. Light faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. He will also have to register as a sex offender when he is released from prison. 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 HSI and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Acting Manhattan U.S. Attorney and NYPD Commissioner Announce Arrest of Narcotics Dealer Responsible for Heroin Overdose Death in A Hospital Rehabilitation ClinicRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging ANTHONY DODAJ with narcotics dealing that resulted in the heroin overdose death of a 41-year-old woman while the victim was a patient in a hospital rehabilitation clinic.
The complaint alleges that DODAJ participated in a conspiracy to distribute heroin, and that heroin distributed by DODAJ on January 1, 2016, resulted in the death of Ivy Katz in New York, New York. DODAJ was arrested this morning and presented today in Manhattan federal court before United States Magistrate Judge James C. Francis IV. DODAJ faces a mandatory minimum term of 20 years in prison.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Anthony Dodaj hand-delivered a fatal dose of heroin to a recovering addict inside a rehabilitation facility. Together with our partners at the NYPD, we will continue to prosecute those who prey on others’ addictions, as alleged here.”
NYPD Commissioner James P. O’Neill stated: “As alleged, the defendant preyed on the vulnerable – peddling poison to those seeking help. Today, the defendant finds himself under arrest with the possibility of spending the rest of his life in prison for the crimes alleged in the complaint.”
According to the complaint[1]:
From December 2016 up to January 2017, in the Southern District of New York and elsewhere, ANTHONY DODAJ and others conspired to sell heroin. As part of that conspiracy, on January 1, 2016, DODAJ delivered heroin to Ivy Katz, a 41-year-old recovering heroin addict. In mid-December 2016, Katz had voluntarily checked herself into an inpatient rehabilitation program for opioid dependence at a hospital located in New York, New York (the “Hospital”). On January 1, 2017, DODAJ entered the Hospital and met with Katz in the Hospital’s inpatient rehabilitation ward. Approximately 30 minutes after DODAJ left the Hospital, Katz was found comatose in her room with a needle containing heroin in her arm. Katz never regained consciousness, and ultimately died on January 16, 2017.
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DODAJ, 46, of the Bronx, New York, faces a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney David W. Denton Jr. is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Friday 24 March 2017
“Incognito Bandit” Arrested this Evening at Dulles International AirportRead the Press Release
BOSTON – A man dubbed the “Incognito Bandit” was arrested this evening at Dulles International Airport in Virginia as he attempted to board an outbound flight to South Africa and charged with armed bank robbery.
Albert Taderera, 36, of Brighton, was charged by criminal complaint with the Oct. 7, 2016, robbery of a branch of the TD Bank in Wayland, Mass. Taderera is scheduled to appear in the U.S. District Court for the District of Eastern Virginia on Monday, March 27, 2017, for his initial appearance.
According to court documents, between February 2015 and March 2017, 16 banks were robbed in the Metro-West and Greater Boston areas. In most of the robberies, the robber was disguised in a dark hooded sweatshirt, dark face mask/sunglasses covering his face, dark gloves and dark clothing. In each of the banks, the robber entered the bank and made verbal demands for the banks’ money. In most of the robberies, the robber displayed what tellers described as a black semi-automatic handgun.
All of the robberies occurred in suburban settings where banks were freestanding and featured adjacent wooded areas or foliage. In many of these robberies, witnesses observed the robber leaving the bank following the robbery, and entering the wooded areas. Witnesses also observed the robber run toward, enter into, and then leave the area in a black BMW sedan. Based on these similarities, the FBI believed that the individual driving the black BMW was responsible for the robberies.
On March 16, 2017, the Concord Police observed a black BMW sedan sitting outside a local bank. They also noted that Taderera fit the general description of the individual responsible for the 16 robberies. Police determined that the registration of the BMW was revoked and per Department policy, the vehicle was towed and inventoried.
On Wednesday, March 22, 2017, an individual identifying himself as Taderera, called the tow company and inquired about the status of his BMW. The tow company informed Taderera that the vehicle was in police custody.
On Thursday March 23, 2017, at approximately 10:15 pm, the FBI learned that Taderera had booked a flight, scheduled to leave on Friday, March 24, 2017, at 11:00 a.m., from Dulles International Airport to Addis Ababe, Ethiopia. During the morning of Friday, March 24, 2017, Taderera was en route to Dulles having taken a flight out of Boston. It was later learned that Taderera had rebooked his flight and was now planning to leave on March 24, 2017, at 5:45 p.m. from Dulles to Johannesburg, South Africa. Taderera was arrested prior to boarding the flight.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; Concord Police Chief Joseph F. O’Connor, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
U.S. Attorney’s Office to Host Forum on Protecting Arab, Muslim, Sikh, and South Asian Communities and Responding to Hate and Bias CrimesRead the Press Release
United States Attorney Randolph J. Seiler has announced that his office, in conjunction with the Federal Bureau of Investigation, Minnehaha County States Attorney’s Office, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, and the U.S. Commission on Civil Rights will present a forum on protecting Arab, Muslim, Sikh, and South Asian Communities. The discussion will revolve around responding to hate and bias crimes targeted against these groups. A representative from the Department of Justice’s Community Relations Service (CRS) will help facilitate the discussion.
The Forum will be held on Thursday, March 30, 2017, from 6:00 pm – 9:00 pm, at the Sioux Falls Library located in downtown Sioux Falls at 200 N. Dakota Avenue. The free conference is open to the public and will feature conversations with leaders of diverse community, faith-based, and non-profit organizations in Sioux Falls and the surrounding areas.
Pursuant to the Hate Crimes Protection Act, CRS is authorized to work with communities to help them develop the capacity to prevent and respond more effectively to violent hate crimes committed on the basis of actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. CRS is a remarkably unique federal component dedicated to assisting state and local units of government, private and public organizations, and community groups develop local capacity to prevent racial and ethnic tensions.
To learn more about the Department of Justice’s Community Relations Service, visit: https://www.justice.gov/crs.
U.S. Attorney’s Office for the Southern District of New York Recovers $3.7 Billion in Forfeitures and Civil Actions in Fiscal Year 2016Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the Office obtained recoveries of more than $1.4 billion in forfeiture actions, more than $2.2 billion in civil actions, and more than $31 million from restitution, criminal fines, and special assessments, between October 1, 2015, and September 30, 2016.
Manhattan Acting U.S. Attorney Joon H. Kim said: “The $3.7 billion in forfeitures, penalties, and fines for fiscal year 2016 recovered by this Office demonstrate that those who break the law or commit civil offenses will not be allowed to profit from their misconduct. We are committed to taking the profit out of crime and compensating victims whenever possible through our prosecutions and civil actions.”
Forfeitures
Forfeited funds are generally deposited into the Department of Justice Assets Forfeiture Fund (the “Assets Forfeiture Fund”) and the Department of Treasury Forfeiture Fund. The forfeited funds are used to restore money to crime victims and for a variety of law enforcement purposes.
General Motors
$900 million forfeited
In September 2015, the General Motors Company (“GM”) entered into a deferred prosecution agreement with this Office based on charges that GM concealed a potentially deadly safety defect from its U.S. regulator, the National Highway Traffic Safety Administration, and, in the process, misled consumers concerning the safety of certain of GM’s cars. Pursuant to the deferred prosecution agreement, GM, among other things, agreed to the forfeiture of $900 million to the United States, which was completed in 2015.
Bank Julius Baer
$219,250,000 forfeited
In February 2016, Bank Julius Baer & Co. Ltd. (“Julius Baer”), a Swiss bank headquartered in Zurich, entered into a deferred prosecution agreement with this Office based on charges that Julius Baer conspired with many of its U.S. taxpayer-clients and others to help U.S. taxpayers hide billions of dollars in offshore accounts from the IRS and to evade U.S. taxes on the income earned in those accounts. Pursuant to the deferred prosecution agreement, Julius Baer, among other things, agreed to the forfeiture of $219,250,000 to the United States.
PokerStars and Related Cases
$81,003,765 forfeited
In July 2012, the United States reached an agreement with the two largest online poker companies in the United States, Full Tilt Poker and PokerStars. The United States had brought a civil forfeiture and money laundering action against these companies and their assets. Under the terms of the settlement, Full Tilt Poker forfeited essentially all of its assets to the United States. PokerStars agreed to forfeit $547 million, to be paid in several installments, and to reimburse the approximately $184 million owed by Full Tilt Poker to foreign players. The settlement further provided that PokerStars would acquire the forfeited Full Tilt Poker assets from the United States. Fiscal Year 2016, $48 million was forfeited to the United States by PokerStars and more than $33 million was forfeited by other parties in related actions. To date, in excess of $1.3 billion has been forfeited in the PokerStars civil forfeiture action and related cases.
U.S. v. Tucker et al., and Related Cases
$48 million forfeited
In February 2016, this Office charged Scott Tucker and Jason Muir with violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a $2 billion nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 700% on loans. In connection with that investigation, on February 9, 2016, the United States entered into a non-prosecution agreement with two tribal corporations controlled by the Miami Tribe of Oklahoma, a Native American tribe. As part of that agreement, the tribal corporations agreed to the forfeiture of $48 million in criminal proceeds from Tucker’s payday lending enterprise that were held in tribal bank accounts.
VimpelCom
$40 million forfeited
In February 2016, VimpelCom Limited, an Amsterdam-based telecommunications company, entered into a deferred prosecution agreement with this Office and the Fraud Section of the Criminal Division of the Department of Justice based on charges that VimpelCom conspired to make bribe payments to a government official in Uzbekistan between 2006 and 2012. Pursuant to the deferred prosecution agreement, VimpelCom, among other things, agreed to forfeit $40 million to the United States.
Civil Actions and Restitution, Criminal Fines, and Special Assessments
U.S. v. Wells Fargo Bank, N.A. et al.
$1.2 billion collected
In April 2016, Wells Fargo Bank, N.A., settled a False Claims Act lawsuit brought by this Office alleging that Wells Fargo had engaged in reckless underwriting of Federal Housing Administration mortgage loans for nearly a decade. As part of the settlement, Wells Fargo paid $1.2 billion and admitted to certain conduct alleged in the complaint, and a Wells Fargo executive also made admissions.
U.S. v. CenterLight Healthcare, Inc. et al.
$46.7 million collected
In January 2016, this Office simultaneously filed a lawsuit against and entered into a settlement with CenterLight Healthcare, Inc., and CenterLight Health System, Inc. (collectively, “CenterLight”), resolving False Claims Act claims arising from the enrollment of ineligible members in CenterLight’s managed long-term care plan. Under the terms of the settlement, CenterLight paid a total of $46,751,086.74 to the Medicaid Program, $18,700,434.70 of which went to the United States. In addition, CenterLight was required to reform its business practices and admit to conduct alleged in the complaint.
U.S. ex rel. Krigstein v. Motives, Inc.
$13.375 million collected
In July 2016, this Office simultaneously filed a False Claims Act lawsuit and entered into a $13.375 million settlement with Motives, Incorporated, an importer of clothing, and Motives Far East and Motives China Limited, foreign manufacturers of clothing (collectively, “Motives”), for conspiring to underpay customs duties. (United States v. Motives, Inc., No. 13 Civ. 9030 (GBD)). As part of the settlement, Motives paid a total of $13.375 million and admitted to allegations in the complaint.
United States ex rel. Peikin et al. v. Salix Pharmaceuticals, Inc. and United States ex rel. Dhaliwal v. Salix Pharmaceuticals, Inc.
$54 million collected
In June 2016, this Office simultaneously sued and settled with Salix Pharmaceuticals, Inc. (“Salix”), a specialty pharmaceutical company. The settlement, in the amount of $54 million, resolved claims that Salix violated the Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices that were reimbursed by federal health care programs. In connection with the settlement, Salix admitted to paying doctors to serve as “speakers” at events that were primarily social in nature, that were held at high-end restaurants, and where the “speakers” spent little or no time discussing the relevant Salix product.
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The Criminal Division’s Money Laundering and Asset Forfeiture Unit is led by Chief Sarah Eddy and Deputy Chief Alexander Wilson and handles all criminal and civil forfeiture actions for the Office. Civil recoveries are handled by the Office’s Civil Division, which is led by Jeffrey Oestericher. Criminal and civil collections are handled by the Civil Division’s Financial Litigation Unit, which is led by Kathleen Zebrowski.
For further information, the United States Attorneys’ Annual Statistical Reports can be found online at http://www.justice.gov/usao/reading_room/foiamanuals.html.
Two Oklahoma Residents Plead Guilty to Susanville Prison Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Edwin Forrest Ludwig III, 61, and Donald Loyde Harned, 72, both of Oklahoma, pleaded guilty today for their roles in a conspiracy to defraud the United States with false claims for federal tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Ludwig III, Harned, and five others operated a tax fraud scheme out of the California Correctional Center in Susanville. Four of the co-conspirators who were incarcerated at the correctional center obtained personal identification information of other inmates. Harned and other co‑defendants who were not incarcerated took this information and prepared and filed false income tax returns with the IRS, claiming refunds that they knew to be false and to which the inmates were not entitled. Ludwig III, not an inmate, assisted the scheme by depositing the fraudulently obtained refunds in bank accounts he opened and transferring the criminal proceeds to the prison accounts of the incarcerated co-defendants. Both Ludwig III and Harned received money in return for their participation in the scheme.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Ludwig III and Harned are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 30, 2017. Both face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
To date, four co-conspirators have pleaded guilty and been sentenced for their participation in this scheme, including Ludwig III’s son, Ludwig IV, who was sentenced to seven years in prison for his role in the scheme. The charges against one remaining co-defendant are pending. Those charges are only allegations, and that co-defendants is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Jamestown Men Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an 11-count indictment charging Juan Pacheco, Jr., 34, and Andrew Garner, a/k/a Bam, 36, both of Jamestown, NY, with conspiracy to distribute over five kilograms or more of cocaine, over 500 grams or more of methamphetamine, and marijuana, and maintaining a drug involved premises. Pacheco was also charged with possession with intent to distribute cocaine, methamphetamine, and marijuana. Garner was additionally charged with distribution of cocaine and possession with intent to distribute cocaine, methamphetamine and marijuana. The charges carry a mandatory minimum penalty of 20 year in prison for Pacheco and 10 years in prison for Garner. Both face a maximum penalty of life in prison and a $10,000,000 fine.Assistant U.S. Attorney Michael P. Fellicetta, who is handling the case, stated that according to the indictment, between April 2016 and September 2016, the defendants received large quantities of drugs from California that were smuggled into the United States from Mexico. Members of the Drug Enforcement Administration working collaboratively with law enforcement officers from the Jamestown Metro Drug Task Force (JMDTF) identified Pacheco and Garner as significant dealers in the Jamestown area.
On May 19, 2016, JMDTF officers executed a search warrant at Garner’s apartment, located at 840 East 2nd Street in Jamestown. Inside, officers recovered bags containing cocaine, crack cocaine, and marijuana, along with baggies, scales, and a video surveillance system that covered the perimeter of the residence. Garner was arrested on June 14, 2016.
Pacheco was arrested on August 18, 2016, after officers executed a search warrant at a residence, believed to be Pacheco’s stash house, located at 477 Main Street in Jamestown. Officers seized approximately nine kilograms of cocaine, more than three kilograms of methamphetamine, and over six pounds of marijuana. The DEA also seized nearly $133,000 in cash that was found at the residence and approximately $7,000 from Pacheco’s pocket upon his arrest. Two vehicles belonging to Pacheco were also seized in the raid, including a Mercedes C300 and a Ford F150.
The defendants are being detained.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Jamestown Metro Drug Task Force, which includes officers from the Jamestown Police Department, under the direction of Chief Harry Snellings; the Ellicott Police Department, under the direction of William L. Ohnmeiss Jr.; and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Two Essex County, New Jersey, Men Charged with Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were indicted by a federal grand jury today for their alleged roles in a September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, were both charged by indictment with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. They will be arraigned at a date to be determined.
According to the indictment and other documents filed in this case:
In the early morning hours of Sept. 6, 2015, Cooper, Lawrence, and others allegedly agreed to rob a club in Passaic at gunpoint. Cooper sent text messages to a conspirator’s phone coordinating the timing of the robbery and discussing how to smuggle the gun into the club. Minutes later, Lawrence and a conspirator entered the office of the club where an employee was alone. They brandished a firearm, threatened to kill the employee, and emptied the contents of an open safe into two purses. Lawrence and the other robber ordered the employee to the ground and told him to count to 100 as they lowered the lights and fled the club in a getaway car.
Following the robbery, the robbers led the police on a high-speed car chase through Passaic, Newark, and East Orange, New Jersey, abandoning the car in East Orange and fleeing on foot. Lawrence was arrested a short while later and charged by the Passaic County Prosecutor’s Office with robbery and firearms offenses. Cooper was arrested on Nov. 3, 2016, after both men were charged by complaint in Newark federal court on Nov. 2, 2016.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s charges. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s General Crimes Unit in Newark.
Defense counsel:
Cooper: Kevin Carlucci Esq, Newark
Lawrence: Paulette Pitt Esq., Woodbridge
Two Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Ivery Myers, 64, and Cornelius Delshun Robinson, a/k/a “Tadow,” 37, both of Houston, Texas were sentenced by U.S. District Judge Sidney A. Fitzwater stemming from their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater sentenced Myers to 37 months in federal prison following his guilty plea to one count of conspiracy to distribute a controlled substance in October 2015. Robinson was sentenced to 120 months in federal prison following his guilty plea to the same offense in November 2015. Both defendants have been in custody since their arrest.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Myers and Robinson, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
According to plea documents filed for Myers, on February 24, 2014, acting at the direction of Robinson, co-conspirator Shane Barron drove him to Brady, Texas, and then San Angelo, Texas, to obtain oxycodone with the intent to distribute it later. Myers presented a prescription issued to another individual at a Walmart located in Brady, Texas, and obtained 120 30mg oxycodone pills. After obtaining the oxycodone in Brady, Texas, he and Barron transferred the oxycodone from the prescription bottle labelled for the other individual into a prescription bottle labelled for Shane Barron and disposed of the original bottle. Barron then drove Myers to San Angelo, Texas, to fill another prescription for oxycodone.
According to documents filed for Robinson, on multiple occasions Robinson obtained oxycodone from sources in Dallas and Houston and distributed oxycodone to customers in Texas and Louisiana. Robinson recruited and paid individuals to pose as patients at medical clinics to obtain prescriptions for oxycodone. He paid the recruits to go to pharmacies to fill the prescriptions. He also paid for clinic visits and for the prescriptions. He sent co-conspirators, including Ivery Myers and Shane Barron, to fill prescriptions as far away as San Angelo and Abilene to minimize the possibility of detection by law enforcement. Robinson then obtained the oxycodone and distributed it for profit. On May 25, 2013, in St. Martin's Parish, Louisiana, Robinson possessed approximately 1,543 oxycodone pills, consisting of 1,161 30mg oxycodone pills and 382 15mg oxycodone pills.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Three Convicted for Sex Trafficking Throughout the SoutheastRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Damon Jackson, age 24, of Columbia; Bakari McMillan, age 24 of Columbia; and Cory Miller, age 44, of Orangeburg; were convicted in federal court in Charleston, South Carolina, for Sex Trafficking of Minors in violation of 18 U.S.C. 1591. United States District Judge David C. Norton of Charleston presided over the trial and will impose sentence at a later date.
Evidence presented at trial proved that Jackson, McMillan, and Miller participated in a conspiracy to commit sex trafficking in South Carolina, Georgia, and North Carolina. The defendants persuaded dozens of young women to work as prostitutes with fraudulent promises, and some of these victims were minors. The evidence showed that the defendants routinely raped and beat the victims to cause them to engage in commercial sex acts. The evidence further showed that many of the victims were drug addicts, and the defendants used heroin and crack cocaine to coerce the victims to engage in commercial sex acts. The defendants used the website Backpage.com to advertise sexual services throughout the Southeast. Seven of the defendants in the conspiracy pled guilty prior to the trial of Jackson, McMillan, and Miller.
U.S. Attorney Beth Drake gave credit for the convictions to both the victims and witnesses who showed the courage and strength to testify, and to the terrific investigation by the local police who worked hand-in-hand with the federal agents at ICE-HSI. "The facts of this case are repugnant, and the victims - and the police officers who rescued them from the hell they were living - are nothing less than heroes."
The case was investigated by agents from the North Charleston Police Department and the ICE- Homeland Security Investigations. Assistant United States Attorneys Matt Austin and Rhett DeHart of the Charleston office prosecuted the case.
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Thirty-Seven Year-Old Man Found Guilty of Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial and four hours of deliberation, Joed Torres-Monge was found guilty of one count of possession of child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Juan Pérez-Giménez presided over the trial.
According to the Indictment, from on or about March 16, 2015 through May 6, 2015, the defendant knowingly possessed materials, which contained images of child pornography, where the production of such visual images involved the use of a minor engaging in sexually explicit conduct.
During trial, the government presented evidence that Torres-Monge downloaded numerous pictures and videos from the Internet depicting minors, in some cases infants, engaging in sexually explicit conduct.
“The conviction of Torres-Monge shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorney Ginette Milanes. The now convicted defendant faces a maximum penalty of twenty (20) years in prison. The sentencing is scheduled for July 21, 2017.
Syracuse Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Gilbert Gonyea, 60, of Syracuse, New York, was sentenced today to serve 72 months in prison for receipt of child pornography, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Gonyea admitted that he was in receipt of over fifteen hundred (1,500) images and approximately nine (9) videos depicting child pornography. On November 5, 2014, investigators searched Gonyea’s residence and recovered numerous DVDs and CDs on which Gonyea stored child pornography and had labeled “Downloads” with corresponding dates or years for when such images had been received from the internet.
Chief United States District Judge Glenn T. Suddaby also imposed a life term of supervised release, which will begin after Gonyea is released from prison, and ordered payment of a $100 special assessment. As a result of his conviction, Gonyea will be required to register as a sex offender upon his release from prison.
This case was prosecuted by Assistant United States Attorney Lisa M. Fletcher and Assistant United States Attorney Sahar L. Amandolare.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sutter County Women Found Guilty of Making False Statements to a Grand JuryRead the Press Release
SACRAMENTO, Calif. — Today, after a six-day trial, a federal jury found Harjit Kaur Johal, 50, and Jasvir Kaur, 47, guilty of making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
U.S. Attorney Talbert stated: “Before the defendants testified before the grand jury, they swore to tell the truth. Unfortunately, motivated by a desire to conceal their participation in the schemes, they lied. Anyone who fails to tell the truth under oath should be ready to face the consequences of their actions.”
“Today’s guilty verdicts send a powerful message that individuals who perjure themselves in federal proceedings will be held accountable. Jasvir Kaur and Harjit Johal lied under oath to a federal grand jury about their purchase of bogus wages they intended to use to file for Unemployment Insurance benefits. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Abel Salinas, Special Agent in-Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General.
“The Employment Development Department works closely with our law enforcement partners to prosecute attempts to defraud the employer-funded Unemployment Insurance Program, including those who perjure themselves in federal court,” said Patrick W. Henning Jr., Director of the California EDD. “We're happy to see coordination with law enforcement helping to avert losses to a benefit program that is a lifeline for unemployed Californians.”
The defendants’ trial was the latest in a series of cases involving the Khan family fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
These cases are the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant United States Attorneys Jared C. Dolan and Jeremy J. Kelley are prosecuting the cases.
Johal and Kaur are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Each defendant face a maximum statutory penalty of five years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Social Security Disability Lawyer Pleads Guilty for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A Social Security disability lawyer pleaded guilty in federal court today for his role in a scheme to fraudulently obtain $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to one count of theft of government money and one count of payment of gratuities. Sentencing is set for July 14, 2017.
According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.
According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.
As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.
Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Sioux Falls Woman Sentenced in Gun CrimeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota woman convicted of Felon in Possession of Firearm was sentenced on March 20, 2017, by U.S. District Judge Karen E. Schreier.
Lesa Lynn Zafft, age 54, was sentenced to 37 months in custody to run concurrently to her State sentences, and three years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund, and to forfeit a .22 caliber handgun.
A federal grand jury indicted Zafft on October 4, 2016, for being a Felon in Possession of Firearm. She pled guilty on December 27, 2016.
On June 16, 2016, Zafft was in possession of a .22 caliber revolver handgun, and sold the firearm, 45 rounds of .22 caliber ammunition, and some methamphetamine to an undercover officer in exchange for $400. Zafft had been convicted in 2015 of felony drug possession, which prohibited her from possessing any firearms.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Zafft was immediately returned to the custody of the State to finish serving her State sentence.
Sioux Falls Man Sentenced on Weapon ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Possesion of a Firearm by a Prohibited Person was sentenced on March 21, 2017, by U.S. District Judge Karen E. Schreier.
Michael Layne Spath, age 36, was sentenced to 51 months in custody, followed by three years supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund and forfeit three firearms in his possession.
Spath was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury on July 12, 2016. He pled guilty on December 21, 2016.
On December 3, 2015, officers with the Minnehaha County Warrant Task Force went to the home of Spath in search of a parole absconder. While at the residence, officers located a 12-gauge shotgun, and shotgun shells. Officers obtained a state search warrant to search the house more thoroughly and found a HiPoint .45 caliber semi-automatic pistol behind the refrigerator, along with .45 caliber ammunition on the basement steps. When Spath was apprehended on December 10, 2015, he had a loaded .40 caliber handgun with him in his vehicle. He was immediately arrested and placed in custody.
This case was investigated by Sioux Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Spath was immediately turned over to the custody of the U.S. Marshals Service.
Sioux City Man Sentenced for Sex CrimeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux City, Iowa, man convicted of Attempted Illicit Sexual Conduct with a Minor was sentenced on March 20, 2017 by U.S. District Judge Karen E. Schreier.
Nathanuel Walter Downs, age 29, was sentenced to 63 months in custody, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Downs was indicted for Attempted Commercial Sex Trafficking by a federal grand jury on June 2, 2015; a Superseding Information was filed November 5, 2015, charging Attempted Illicit Sexual Conduct with a Minor. He pled guilty to the Superseding Information on October 17, 2016.
On April 10, 2015, Downs responded to an ad placed on Backpage.com by an undercover officer posing as a fifteen-year-old girl. Downs responded to the advertisement and agreed to travel to Sioux Falls, South Dakota, from Sioux City and pay to have sex with the minor. Police arrested Downs after he arrived at the agreed upon location in Sioux Falls and handed cash to an undercover officer.
This case was investigated by South Dakota Internet Crimes Against Children Task Force, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Division of Criminal Investigation, Department of Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Downs was immediately turned over to the custody of the U.S. Marshals Service.
Samuel Velasco Gurrola Sentenced to Life in Federal Prison for Murder-For-Hire Plot Involving His Wife, Her Father and Her SisterRead the Press Release
In El Paso this morning, 41-year-old Samuel Velasco Gurrola was sentenced to life in federal prison for his role in a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
On October 17, 2016, a federal jury convicted Velasco of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire. Following his conviction in the murder-for-hire plot, on November 18, 2016, Velasco pleaded guilty to conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute, namely acts of drug trafficking and money laundering.
Today, Senior United States District Judge David Briones imposed a life-imprisonment sentence on each of the seven murder-related charges—four involving foreign travel to run consecutive, the other three to run concurrent. Judge Briones also imposed a 35-year concurrent prison term for conspiracy to violate the RICO statute. In addition to the prison term, Judge Briones ordered that Velasco pay over $1 million in restitution to the families of his victims; and, a money judgment for $12,480,000, to be paid joint and several with his brother. Judge Briones also ordered that Velasco forfeit to the Government two real estate properties he owned in El Paso as well as $85,000 in U.S. Currency and two vehicles seized by authorities.
“The Velascos perpetrated some of the most diabolical and cruel crimes imaginable. To avoid responsibility for sexually assaulting a child, Samuel enlisted his brother Emanuel and his criminal organization to kill his wife to prevent her from testifying against him. By the time he was he was done, his wife, her father, her sister, and a friend had been slaughtered. The life sentence imposed shows much more mercy than he ever did,” stated United States Attorney Richard L. Durbin, Jr.
According to evidence presented during his trial, in 2008, Samuel Velasco was married to Ruth Sagredo Escobedo. At the time, he was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Samuel’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo and her friend Roberto Martinez were ambushed and murdered.
Yesterday, Judge Briones sentenced Emmanuel to life in federal prison and ordered him to pay over $1 million in restitution to the families of his victims; and, a money judgment for $12,480,000. Judge Briones also ordered that Emmanuel forfeit to the Government various real estate properties he owned in El Paso and Midland counties as well as a condominium located on the Las Vegas Strip.
According to court records, Emmanuel was the leader of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana. His organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while he and other criminal associates located in El Paso extorted ransom payment from the victims’ families.
“These life sentences sends a clear message to transnational criminal organizations. HSI and its law enforcement partners are committed to ensuring the safety and security of our border community,” said Waldemar Rodriguez, special agent in charge of HSI El Paso.“The Velascos fall into the category of the ‘worst of the worst’ criminals. Their actions have devastated a family on both sides of the U.S. / Mexico border. The DEA is proud to have played a role with our law enforcement partners in bringing them to justice and ensuring that never again will they be able to commit an act of violence in the Borderland,” said Will R. Glaspy, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division.
“The sentence handed down today is the result of outstanding efforts by the FBI and our partner agencies, DEA and HSI. Two murderers are behind bars. Justice has been served for the victims, their families, and the greater border community,” stated Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Emmanuel and Samuel’s sister, 44-year-old Dalia Valencia, pleaded guilty to the RICO conspiracy charge prior to jury selection in the above-mentioned trial. Valencia is scheduled for sentencing at 9:30am on April 19, 2017, before Judge Briones. and Samuel’s other sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.
This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
Rosebud Man Charged with Influencing a Federal Officer by Threat and Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Influencing a Federal Officer By Threat and Assaulting, Resisting, and Impeding a Federal Officer.
Ronald Red Tomahawk, age 31, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Influencing a Federal Officer is up to 10 years in custody and/or a $250,000 fine, and the maximum penalty for Assaulting, Resisting, and Impeding a Federal Officer is 8 years in custody and/or a $250,000 fine. Both charges could result in 3 years of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
The Indictment alleges that on or about September 25, 2016, Red Tomahawk threatened to murder and forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a law enforcement officer employed by the Rosebud Sioux Tribe, while the officer was engaged in the performance of his official duties.
The charges are merely accusations and Red Tomahawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Red Tomahawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rosebud Man Charged with Assaulting a Federal Officer and LarcenyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and Larceny.
Justin Fast Horse, age 20, was indicted on March 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for Assaulting, Resisting, and Impeding a Federal Officer charge is up to 20 years in custody and/or a $250,000 fine, and the maximum penalty for Larceny is 5 years in custody and/or $250,000 fine. Both charges could result in 3 years of supervised release, and $100 to the Federal Crime Victims Fund and restitution.
The Indictment alleges that on or about March 3, 2017, Fast Horse forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a law enforcement officer employed by the Rosebud Sioux Tribe, while the officer was engaged in the performance of his official duties. The Indictment also charges that on March 3, 2017, Fast Horse unlawfully took and carried away, with intent to steal and purloin, a pickup truck, owned by someone else.
The charges are merely accusations and Fast Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Fast Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Redlands Man who Allegedly Sold Firearms Made from Unfinished and Unmarked Lower Receivers Arrested on Federal ChargesRead the Press Release
RIVERSIDE, California – A Redlands man has been arrested after being charged in federal court with selling AR-style rifles without a license.
Scott Everett Coyl, 28, of Redlands, was arrested without incident at his residence yesterday morning. Coyl was arrested pursuant to a criminal complaint filed on Wednesday that charges him with dealing firearms without a license.
Following his initial appearance yesterday afternoon in United States District Court, Coyl was freed on a $20,000 bond.
In conjunction with Coyl’s arrest, special agents from the Los Angeles Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with officers from the Redlands Police Department, seized from Coyl’s residence approximately 40 firearms, including three machine guns and eight silencers. They also seized more than 100 high-capacity magazines and ammunition.
According to the affidavit in support of the criminal complaint, over the past three weeks, Coyl unlawfully sold five .223-caliber AR-type rifles – with no make or model markings, and no visible serial number – to a person he believed was a convicted felon. The purchaser of the rifles told Coyl he had a criminal record and he was buying rifles in order to send them to Mexico to be used in shootings. Despite learning this information, Coyl continued selling firearms to the individual.
The affidavit alleges Coyl built AR-type rifles from unfinished lower receivers, machining out the lower receiver, then adding parts to make a complete firearm. Coyl sold firearms out of the garage in his residence. Coyl told the person he thought was a convicted felon that he could manufacture and sell fully automatic rifles, according to the complaint.
At the court hearing yesterday, a United States Magistrate Judge scheduled a preliminary hearing for April 13 and an arraignment on April 19.
If convicted of the charge of dealing firearms without a license, Coyl would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Redlands Police Department.
The case is being prosecuted by Assistant United States Attorney Bilal A. Essayli of the Riverside Branch Office.
Plano Man Sentenced to Federal Prison in Synthetic Marijuana CaseRead the Press Release
In San Antonio today, 52-year-old Irfan Abdul Ghaffar was sentenced to seven years in federal prison followed by three years of supervised release for his role in a synthetic marijuana distribution scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division, and Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division.
On January 4, 2017, Ghaffar pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substance analogues. By pleading guilty, Ghaffar admitted that from March 2013 to June 2013, he managed the affairs of the Jaffer Drug Trafficking Organization (Jaffer DTO) in Dallas, including the illegal storage, distribution and sale of various kinds of synthetic cannabinoids. The San Antonio-based Jaffer DTO, led by Muhammad Jaffer Ali, was responsible for the production and distribution of synthetic marijuana and bath salts in San Antonio, Houston, Austin, and Dallas as well as Tulsa, Oklahoma City, and Kansas City. During the course of the enterprise, the Jaffer DTO manufactured, caused to be manufactured, attempted to manufacture, distributed and possessed with intent to distribute over 40,000 pounds (or 18,500 kilograms) of synthetic cannabinoids.
On December 12, 2016, Muhammad Jaffer Ali pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substance analogues. He is scheduled for sentencing in San Antonio on Tuesday at 4:00pm before Senior United States District Judge Royce C. Lamberth.
This prosecution resulted from the efforts of the Federal Bureau of Investigation and Drug Enforcement Administration together with the Internal Revenue Service-Criminal Investigation, Immigration and Customs Enforcement - Homeland Security Investigations, U.S. Border Patrol, Austin, San Antonio and New Braunfels Police Departments, the Texas Department of Public Safety, Texas Attorney General’s Office, Travis County District Attorney’s Office, Travis County Sheriff’s Office, Williamson County Sheriff’s Office, Williamson County Constables Office-Precinct 2, Bastrop County Sheriff’s Office, Live Oak Police Department and the Texas Alcoholic Beverage Commission. ICE Enforcement and Removal Operations also assisted with today’s arrests. Assistant United States Attorneys Mark Roomberg and Jay Hulings are prosecuting this case.
Physician and Medical Assistant Convicted of Conspiracy to Distribute Large Quantities of Oxycodone for Non-Medical NecessityRead the Press Release
LAS VEGAS, Nev. – Dr. Henri Wetselaar, MD, 93, and David A. Litwin, 58, were found guilty of conspiracy to distribute and distribution of oxycodone and other controlled substances, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
According to the indictment, Wetselaar was a Nevada physician practicing as a specialist in pain management. Litwin was alleged to be his medical assistant.
According to the indictment, Wetselaar and Litwin conspired with each other and local drug dealers to distribute the prescription drugs in and around Las Vegas. Wetselaar prescribed large amounts of highly addictive prescription drugs, including oxycodone, hydrocodone, Xanax and Soma, to persons for no legitimate medical purpose.
Following a 10-week jury trial, Wetselaar and Litwin were found guilty of conspiracy to distribute controlled substances and distribution of controlled substances. In addition, Wetselaar was found guilty of money laundering and structuring of money transactions.
Sentencing is scheduled for June 21, 2017, before U.S. District Judge Kent Dawson. At the time of sentencing, Wetselaar and Litwin each face a mandatory prison sentence of 20 years in prison and a $1,000,000 fine.
The case was investigated by the Drug Enforcement Administration, the FBI, and Internal Revenue Service-Criminal Investigation; and prosecuted by Assistant U.S. Attorneys Cristina Silva and Andrew Duncan.
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Philadelphia Man Charged with Bank FraudRead the Press Release
An Indictment[1] was unsealed today charging Mohamed Soukouna, 57, of Philadelphia, with two counts of bank fraud, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Soukouna deposited counterfeit checks into bank accounts at TD Bank and Wells Fargo Bank in the names of other persons, and posed as the account holder of a TD Bank account by using a false passport in order to make cash withdrawals from that account before TD Bank discovered that the checks deposited into the account were fraudulent. The indictment further alleges that Soukouna opened accounts in his own name at TD Bank and Wells Fargo Bank, and used his TD Bank account to receive deposits of counterfeit checks while using his Wells Fargo Bank account to receive deposits of cash as payment for his participation in the schemes to defraud.
Soukouna faces a maximum sentence of 60 years’ imprisonment, a five-year period of supervised release, a $2,000,000 fine, and an $200 special assessment and restitution of $52,892.95.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Panamanian Man Sentenced for Role in Cocaine Trafficking ConspiracyRead the Press Release
RICHMOND, Va. – A Panamanian businessman was sentenced today to 10 years in prison for his role in an international drug trafficking conspiracy involving the importation of 22 kilograms of cocaine onboard a commercial shipping vessel.
Humberto Beckford, 36, of Panama City, Panama, pleaded guilty on Dec. 22, 2016. According to the statement of facts filed with the plea agreement, in March 2016 a Panamanian drug trafficking organization (DTO) secreted a cocaine load onboard a commercial shipping vessel traveling from Panama to Charleston, South Carolina. On March 11, 2016, Beckford, was directed by a member of the DTO to travel from Miami to Charleston to supervise the distribution of the cocaine load upon its arrival at the Port of Charleston. Unbeknownst to Beckford, law enforcement had intercepted the cocaine load onboard the ship. The next day Beckford met with undercover federal law enforcement agents to coordinate the distribution of a bag containing 22 kilograms of cocaine to a drug courier working for the DTO.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Daniel Salter, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Atlanta Division; Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik Siebert and Peter S. Duffey prosecuted the case.
A copy of this press release is located be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-117.
Owner of Sioux Falls Tax Preparation Business IndictedRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for devising and executing a scheme to defraud the Internal Revenue Service (IRS). Jacques Eviglo, owner of Global Income Tax Services, was indicted on ten counts of false claims on March 21, 2017.
According to the Indictment, between February 2015 and March 2016, Jacques Eviglo devised a scheme in which he prepared and filed several false U.S. Individual Income Tax Returns (Form 1040) for clients of his tax preparation business. Specifically, Eviglo filed federal tax returns with false deductions on Schedule A’s, resulting in refunds in which Eviglo knew his clients were not entitled.
The maximum penalties upon conviction for filing false claims against the government is five years in prison.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney John Haak.
According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer visit https://www.irs.gov/uac/things-to-remember-when-choosing-a-tax-preparer.
Owner of Asbestos Abatement Company Sentenced for Defrauding Union Benefit FundsRead the Press Release
BOSTON – The owner of an asbestos abatement and demolition services company was sentenced today in U.S. District Court in Boston for paying employees in cash in order to avoid paying union benefits and employment taxes.
Ronald P. Mulcahey, 53, of Andover, was sentenced by U.S. District Court Judge Richard G. Stearns to one year and one day in prison, one year of supervised release and ordered to pay $266,983 in restitution. In October 2016, Mulcahey pleaded guilty to making false statements in documents submitted to benefit plans subject to the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) and tax evasion.
Mulcahey was the owner and sole corporate officer of Wing Inc. Specialty Trades, EWT-Fireproofing, Inc., and Wing Environmental, Inc. Wing Environmental provided asbestos abatement and demolition services. The company had a collective bargaining agreement with Laborer’s International Union of North America, Local 1421. As a union employer, Wing Environmental was required to accurately report to the union benefit funds the number of hours worked by its union employees and to make the corresponding contributions to the funds. Between January 2008 and June 2011, Mulcahey engaged in a scheme through Wing Environmental to defraud the union benefit funds by paying some of the union employees in cash. By keeping the cash payments off-the-books, Mulcahey and Wing Environmental falsely underreported the union workers’ hours in order to avoid making the required hourly payments to the benefit funds. Union benefit funds are used to provide healthcare, pensions and other services to union members.
Wing Specialty Trades and EWT-Fireproofing were non-union companies that provided asbestos abatement, demolition and fireproofing services. All of Mulcahey’s companies were required by federal tax law to accurately report their total payments to employees and to withhold and pay the IRS the applicable employment and income taxes. Between January 2008 and June 2011, Mulcahey defrauded the IRS by paying certain employees of all three of his companies in cash. By keeping the cash payments off-the-books, Mulcahey falsely underreported his workers’ wages to the IRS and avoided paying employment taxes on the unreported wages.
Acting United States Attorney William D. Weinreb; Michael C. Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Boston Field Office; and Susan A. Hensley, Regional Director of the Employee Benefits Security Administration, made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Ryan DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.
North Carolina Man Pleads Guilty to Charges in Armed Assault at Northwest Washington Pizza RestaurantRead the Press Release
WASHINGTON – Edgar Maddison Welch, 28, of Salisbury, N.C., pled guilty today to charges stemming from an incident in which he carried a loaded AR-15 assault rifle and a revolver into a Northwest Washington pizza restaurant, scattering employees and customers, and fired his assault rifle into a door.
The guilty plea was announced by U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Welch pled guilty in the U.S. District Court for the District of Columbia to a federal charge of interstate transportation of a firearm and ammunition, and a District of Columbia charge of assault with a dangerous weapon. The federal charge carries a statutory maximum of 10 years in prison and the District of Columbia charge carries a statutory maximum of 10 years. Under sentencing guidelines, the parties have agreed that Welch faces a likely range of 18 to 24 months in prison for the federal charge, and 18 to 60 months for the District of Columbia charge.
The Honorable Ketanji Brown Jackson scheduled sentencing for June 22, 2017. Welch has been in custody since his arrest on the day of the incident.
According to the government’s evidence, on Sunday, December 4, 2016, Welch transported three loaded firearms, together with ammunition, from North Carolina to Washington, D.C. The firearms included a 9mm AR-15 assault rifle loaded with approximately 29 rounds of ammunition, a fully-loaded, six-shot, .38-caliber revolver, and a loaded shotgun with additional shotgun shells. He drove directly to the Comet Ping Pong restaurant on Connecticut Avenue in Northwest Washington. According to the government’s evidence, Welch was motivated, at least in part, by unfounded rumors concerning a child sex-trafficking ring that supposedly was being perpetrated at the establishment.
Upon arriving at the restaurant, Welch parked his car and armed himself. At about 3 p.m., he marched inside the restaurant, which was occupied by employees and customers, including children. He was carrying the AR-15 assault rifle and the revolver. He was carrying the AR-15 openly, with one hand on the pistol grip, and the other hand on the hand guard around the barrel, such that anyone with an unobstructed view could see the gun.
The customers and employees fled the building. At one point, Welch encountered a locked room and attempted to force open the door, first using a butter knife and then discharging his assault rifle multiple times into the door.
A few minutes later, an unaware employee entered the restaurant, carrying pizza dough. Welch saw the employee and turned toward the worker with the assault rifle, causing the worker to immediately fear he would be shot. The worker fled. Welch was left alone in the restaurant. After spending more than 20 minutes inside, he left his firearms and exited the restaurant unarmed. He was then arrested. The assault rifle and revolver were recovered inside the restaurant. A shotgun also was recovered from the defendant’s car, along with a box of shotgun ammunition.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Acting Chief Newsham commended the work of those who responded to the scene and those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Yvonne Bryant, Paralegal Specialist Chela Okonji, and Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section, who assisted with forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Demian S. Ahn and Sonali D. Patel, who are prosecuting the case.
Multiple Individuals Charged in Sweeping Mortgage Fraud ConspiracyRead the Press Release
BOSTON – A Methuen attorney and a Methuen loan officer pleaded guilty yesterday in connection with a sweeping conspiracy to defraud banks and mortgage companies by engaging in sham “short” sales of residential properties in Merrimack Valley. Separately, a Methuen real estate broker was arrested on Wednesday, March 22, 2017, on related charges, and a Dunstable attorney was sentenced after pleading guilty to participating in the same conspiracy.
Jasmin Polanco, 37, a real estate closing attorney, and Vanessa Ricci, 40, a mortgage loan officer, each pleaded guilty yesterday to one count of conspiracy to commit bank fraud. U.S. District Court Senior Judge Douglas P. Woodlock scheduled Ricci’s sentencing for June 22, 2017. Polanco’s sentencing hearing has not yet been scheduled.
Separately, a real estate broker from Methuen, Greisy Jimenez, 49, was indicted this week on two counts of bank fraud and one count of conspiracy to commit bank fraud in connection with the same alleged scheme. In addition, on March 22, 2017, U.S. District Court Judge Rya W. Zobel sentenced Hyacinth Bellerose, 51, a real estate closing attorney from Dunstable, to time served and one year of supervised release to be served in home detention.
The charges arise out of an alleged scheme to defraud various banks via bogus short sales of homes in Haverhill, Lawrence and Methuen in which the purported sellers remained in their homes, with their debt substantially reduced. A short sale is a sale of real estate for less than the value of any mortgage debt on the property. Short sales are an alternative to foreclosure that typically occur only with the consent of the mortgage lender. Generally, the lender absorbs a loss on the loan and releases the borrower from the unpaid balance. By their very nature, short sales are intended to be arms-length transactions in which the buyers and sellers are unrelated, and in which the sellers cede their control of the subject properties in exchange for the short-selling bank’s agreement to release them from their unpaid debt.
The alleged conspiracy began in approximately August 2007 and continued through June 2010, a period that included the height of the financial crisis and its aftermath. Home values in Massachusetts and across the nation declined precipitously, and many homeowners found themselves suddenly “underwater” with homes worth less than the mortgage debt they owed. As part of the alleged scheme, Jimenez, Polanco, Ricci, Bellerose and others submitted materially false and misleading documents to numerous banks in an effort to induce them to permit the short-sales, thereby releasing the purported sellers from their unpaid mortgage debts, while simultaneously inducing the purported buyers’ banks to provide financing for the deals. In fact, the purported sellers simply stayed in their homes, with their debt substantially reduced.
The charging documents allege that as part of the conspiracy:
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The conspirators falsely led banks to believe that the sales were arms-length transactions between unrelated parties, when in fact, the transactions were not arms-length; the buyers and sellers were frequently related, and the sellers retained control of (and frequently continued to live in) the properties after the sale;
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The conspirators submitted phony earnings statements in support of loan applications that they submitted to banks in order to obtain financing for the purported sales; and
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The conspirators submitted phony “HUD-1 Settlement Statements” to banks that did not accurately reflect the disbursement of funds in the transactions. (HUD-1 Settlement Statements are standard forms that are used to document the flow of funds in real estate transactions. They are required for all transactions involving federally related mortgage loans, including all mortgages insured by the Federal Housing Administration.)
The charge of bank fraud and conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, New York Field Office; and Christy Goldsmith Romero, Special Inspector General of the Troubled Asset Relief Program, made the announcement. Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Weinreb’s Economic Crimes Unit is prosecuting the cases.
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Monongalia County man sentenced for oxycodone distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shawn Collins, 44, of Morgantown, West Virginia, was sentenced today in federal court to 37 months incarceration for the distribution of oxycodone, Acting United States Attorney Betsy Steinfeld Jividen announced.
Collins admitted that he sold oxycodone in Monongalia County in April 2015. He pled guilty to one count of “Distribution of Oxycodone” on October 4, 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
U.S. District Judge Irene M. Keeley presided.
Monmouth County, New Jersey, Man Admits Receiving Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted using his e-mail and instant messaging accounts to receive images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Matthew Kaminsky, 50, of Matawan, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of receiving child pornography.
According to documents filed in this case and statements made in court:
Kaminsky allegedly met various underage girls through online chat applications and sent them naked pictures of himself. In late January of 2015, over the course of several days, he began corresponding with a 13-year-old girl over an online chat application and induced her to take nude pictures of herself and to send them to him. In March 2015 law enforcement officers recovered computer equipment belonging to Kaminsky containing images and videos appearing to be of child sexual abuse. Law enforcement officers located and interviewed the 13-year-old girl Kaminsky had chatted with online in January of 2015, and she confirmed that she had chatted online with Kaminsky and had sent him nude pictures of herself at his request.
The count of receiving child pornography carries a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a $250,000 fine, and up to a lifetime of supervised release. Sentencing is scheduled for June 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Miami Beach Sex Trafficker Sentenced to 30 Years in PrisonRead the Press Release
Defendant Lured Foreign Students on False Promises
in Furtherance of Interstate Prostitution and Erotic Massage Enterprise
Chief United States District Court Judge K. Michael Moore of the Southern District of Florida sentenced Jeffrey Jason Cooper, 47, of Miami Beach, Florida, to 30 years in prison for sex trafficking and related violations arising from the defendant’s scheme to recruit foreign students on false promises of legitimate summer jobs, and then to advertise them to customers of his prostitution and erotic massage enterprise. Chief Judge Moore also ordered Cooper to pay $8,640.00 in restitution to the victims.
A jury convicted Cooper on Nov. 17, 2016, of five counts of sex trafficking and attempted sex trafficking by fraud, three counts of wire fraud, two counts of importing and attempting to import aliens for prostitution or immoral purposes, and one count of using a facility of interstate commerce to operate a prostitution enterprise. According to evidence presented during the four-day trial, Cooper recruited foreign university students from Kazakhstan through the Department of State’s Summer Work Travel Program, falsely promising them clerical jobs at his fictitious yoga studio. In addition to defrauding the students, Cooper fraudulently induced an educational exchange agency to sponsor the victims’ visas, and caused government officials to issue the victims temporary, non-immigrant “J-1” visas based on Cooper’s false and fraudulent offer of legitimate summer jobs.
After the victims arrived in Miami, Cooper revealed to them for the first time that the yoga studio did not exist and that he expected them to perform erotic massages for customers of his erotic massage and prostitution enterprise. Witnesses testified that the victims, shocked and upset, tried to find work elsewhere but eventually gave up and began working for the defendant.
As established at trial, police began investigating Cooper after neighbors complained he was prostituting women from his apartment complex, and conducted an undercover operation that led to the recovery of the victims, one day before Cooper had scheduled them to travel to Los Angeles, California, where Cooper also operated his prostitution and erotic massage enterprise. When questioned by law enforcement, Cooper claimed that the victims cleaned apartments for him, and characterized his relationship with them as that of an “older brother.”
Evidence at trial included records from Backpage.com advertising the victims’ services, and Facebook communications confirming that Cooper recruited the victims on false and fraudulent pretenses, revealing the true nature of his erotic massage and prostitution enterprise only after the victims arrived in the United States.
“Cooper brazenly manipulated and deceived vulnerable young students so he could profit by selling them for sex, with no regard for their fundamental human dignity,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Civil Rights Division and its partners on the Anti-Trafficking Coordination Team (ACTeam) Initiative will continue to vigorously pursue traffickers who operate internationally in order to bring them to justice and vindicate the rights of vulnerable victims.”
“The successful prosecution and decades-long sentence imposed on Jeffrey Cooper illustrate the international impact of law enforcement’s united efforts to combat human trafficking – whether by fraud, force or otherwise,” said Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to bring to justice those individuals who knowingly exploit others for their own personal profit.”
“We are committed to working with our law enforcement partners to prevent situations where vulnerable individuals are exploited in human trafficking schemes such as this,” said Christian Schurman, acting director of the State Department’s Diplomatic Security Service (DSS). “Because of our global presence, DSS is positioned to work with U.S. and foreign law enforcement to stop those that would manipulate instruments of international travel to profit from selling human beings in this way.”
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case was prosecuted by Assistant U.S. Attorney Seth M. Schlessinger, who was previously with the Southern District of Florida and is now with the Eastern District of Pennsylvania, and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security, and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking by force, fraud, or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Miami Beach Sex Trafficker Sentenced to 30 Years in Prison for International Trafficking Scheme Targeting Foreign University StudentsRead the Press Release
Defendant Lured Foreign Students on False Promises
in Furtherance of Interstate Prostitution and Erotic Massage Enterprise
Chief United States District Court Judge K. Michael Moore of the Southern District of Florida sentenced Jeffrey Jason Cooper, 47, of Miami Beach, Florida, to 30 years in prison for sex trafficking and related violations arising from the defendant’s scheme to recruit foreign students on false promises of legitimate summer jobs, and then to advertise them to customers of his prostitution and erotic massage enterprise. Chief Judge Moore also ordered Cooper to pay $8,640.00 in restitution to the victims.
A jury convicted Cooper on Nov. 17, 2016, of five counts of sex trafficking and attempted sex trafficking by fraud, three counts of wire fraud, two counts of importing and attempting to import aliens for prostitution or immoral purposes, and one count of using a facility of interstate commerce to operate a prostitution enterprise. According to evidence presented during the four-day trial, Cooper recruited foreign university students from Kazakhstan through the Department of State’s Summer Work Travel Program, falsely promising them clerical jobs at his fictitious yoga studio. In addition to defrauding the students, Cooper fraudulently induced an educational exchange agency to sponsor the victims’ visas, and caused government officials to issue the victims temporary, non-immigrant “J-1” visas based on Cooper’s false and fraudulent offer of legitimate summer jobs.
After the victims arrived in Miami, Cooper revealed to them for the first time that the yoga studio did not exist and that he expected them to perform erotic massages for customers of his erotic massage and prostitution enterprise. Witnesses testified that the victims, shocked and upset, tried to find work elsewhere but eventually gave up and began working for the defendant.
As established at trial, police began investigating Cooper after neighbors complained he was prostituting women from his apartment complex, and conducted an undercover operation that led to the recovery of the victims, one day before Cooper had scheduled them to travel to Los Angeles, California, where Cooper also operated his prostitution and erotic massage enterprise. When questioned by law enforcement, Cooper claimed that the victims cleaned apartments for him, and characterized his relationship with them as that of an “older brother.” Evidence at trial included records from Backpage.com advertising the victims’ services, and Facebook communications confirming that Cooper recruited the victims on false and fraudulent pretenses, revealing the true nature of his erotic massage and prostitution enterprise only after the victims arrived in the United States.
“The successful prosecution and decades-long sentence imposed on Jeffrey Cooper illustrate the international impact of law enforcement’s united efforts to combat human trafficking – whether by fraud, force or otherwise,” said Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to bring to justice those individuals who knowingly exploit others for their own personal profit.”
“Cooper brazenly manipulated and deceived vulnerable young students so he could profit by selling them for sex, with no regard for their fundamental human dignity,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Civil Rights Division and its partners on the Anti-Trafficking Coordination Team (ACTeam) Initiative will continue to vigorously pursue traffickers who operate internationally in order to bring them to justice and vindicate the rights of vulnerable victims.”
“We are committed to working with our law enforcement partners to prevent situations where vulnerable individuals are exploited in human trafficking schemes such as this,” said Christian Schurman, acting director of the State Department’s Diplomatic Security Service (DSS). “Because of our global presence, DSS is positioned to work with U.S. and foreign law enforcement to stop those that would manipulate instruments of international travel to profit from selling human beings in this way.”
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case was prosecuted by Assistant U.S. Attorney Seth M. Schlessinger, who was previously with the Southern District of Florida and is now with the Eastern District of Pennsylvania, and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security, and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking by force, fraud, or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
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.
McLean Man Sentenced for Child Pornography CrimesRead the Press Release
ALEXANDRIA, Va. – A McLean man was sentenced today to five years in prison for collecting tens of thousands of images and videos of child pornography since 2004.
“For the last 12 years Seth Thornton visited depraved corners of the Internet to hunt for images and videos of young girls being sexually exploited and abused,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “It is beyond dispute that child pornography trafficking crimes are grievous offenses that deserve serious penalties. The distribution and receipt of child pornography fuels a market for further production and abuse, while continuing the victimization of children depicted in the images. While these crimes can be very difficult to talk about, we must continue to bring awareness to these prosecutions with the goal of protecting our children from sexual predators by deterring others from committing similar crimes, online and elsewhere.”
Seth Aaron Thornton, 43, pleaded guilty on Nov. 2, 2016. According to court documents, Thornton, an information technology consultant who has worked for prominent consulting companies as well as the federal government, had been using peer-to-peer networks to amass a collection of tens of thousands of images and videos of minor girls, primarily aged approximately 8 to 14 years old, though many featured even younger children. Some child exploitation files in Thornton’s collection depicted sadistic, masochistic, or other violent imagery.
“Child pornography, in any form, haunts its victims for their entire lifetime,” said Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. “Our special agents are dedicated to identifying and investigating individuals who prey on children, and we will ensure they’re prosecuted to the fullest extent of the law.”
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Maya D. Song and Special Assistant U.S. Attorney James E. Burke IV prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-246.