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3 May 2017
Auburn Man Sentenced to Eight Years for Distributing HeroinRead the Press Release
Contact: Jamie R. Guerrette
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Darnell Robinson, a/k/a “Butta,” age 30, of Auburn, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to eight years in prison and three years of supervised release for distributing heroin. He pled guilty on January 12, 2017.
Court records reveal that on April 27, 2016, a witness working with federal agents purchased $1,000 worth of heroin from Robinson in Auburn. Shortly thereafter, law enforcement agents seized heroin from a customer who acquired it from Robinson.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine State Police, the Lewiston and Auburn Police Departments and the Maine Drug Enforcement Agency.
Armed Career Criminal Sentenced to Twenty Years in Federal PrisonRead the Press Release
CHATTANOOGA, Tenn. – On May 3, 2017, Angelo Goldston, 37, of Cleveland, Tennessee, was sentenced to serve 240 months in prison by the Honorable Harry S. Mattice, Jr., U.S. District Judge. Upon his release from prison, Goldston will be under the supervision of the U.S. Probation Office for five years.
After a January 2017 jury trial, Goldston was convicted of unlawfully possessing a firearm. His sentence was enhanced based on his seven prior convictions for serious drug offenses and because the firearm he possessed was a sawed-off shotgun. He was sentenced under the Armed Career Criminal Act (ACCA).
According to eyewitnesses who testified at his trial, Goldston displayed the sawed-off shotgun during a heated exchange with an unarmed man as children stood by and watched. The altercation took place in the middle of the day in a residential neighborhood in Cleveland.
U.S. Attorney Nancy Stallard Harr said, “Goldston’s sentence reflects the danger and risk of harm his conduct posed to society. The Sixth Circuit Court of Appeals previously recognized that sawed-off shotguns, by their very nature, are extremely dangerous and serve virtually no purpose other than furtherance of illegal activity. That danger is heightened when career criminals, such as Goldston, possess these types of weapons.”
"The sentencing illustrates the positive effect of the resources provided by ATF and our law enforcement partners to combat the violent crime. ATF’s priority is to provide the safe environment for the public," stated Steven Gerido, Special Agent in Charge, Alcohol, Tobacco, Firearms and Explosives.
The indictment and subsequent conviction of Goldston was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, 10th Judicial District Drug & Violent Crime Task Force, and Cleveland Police Department. Assistant U.S. Attorneys Michael D. Porter and Kyle J. Wilson represented the United States at trial.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Allen County, Kentucky, Resident Pleads Guilty to Malicious Destruction of Property by Fire and Mail FraudRead the Press Release
The set fire resulted in the death of a firefighter
BOWLING GREEN, Ky. – An Adair County, Kentucky resident pleaded guilty yesterday in United States District Court, before District Judge Greg N. Stivers, to charges of setting a fire to her rental home, in order to obtain money, through false pretenses, from a renter’s insurance policy purchased prior to setting the fire, announced United States Attorney John E. Kuhn, Jr.
Brandi Pritchard a/k/a Brandi Waggener, 41, of Columbia, Kentucky, was charged with co-defendant Steve Allen Pritchard a/k/a “Boo” Pritchard, in a grand jury superseding indictment on November 9, 2016.
Pritchard admitted in court that on June 30, 2011, she maliciously damaged and destroyed, by means of fire, the building at 3043 Liberty Road, in Columbia, Kentucky. The fire resulted in the death of a public safety official performing duties as direct and proximate result of the fire.
Specifically, Brandi Pritchard and Steve Allen Pritchard resided in a rental home at 3043 Liberty Road, Columbia, Kentucky. On June 24, 2011, Brandi Pritchard purchased a $50,000 renter’s insurance policy from Grange Insurance Company. When Steve Allen Pritchard found out about the renter’s insurance policy, he allegedly suggested that the couple could intentionally set fire to their residence to collect on the insurance policy. Steve Allen Pritchard allegedly told Brandi Pritchard that he had previously started fires to collect insurance proceeds.
On June 29, 2011, Steve Pritchard sent Brandi Pritchard’s two children and the family dog to stay with friends for the night. In the early morning hours of June 30, 2011, Steve Pritchard allegedly set fire to the residence, and then drove Brandi Pritchard to her job in Somerset. Brandi Pritchard knew that Steve Pritchard had set the fire before they left the house to drive to Somerset.
The fire destroyed the Pritchard’s residence, and during the course of the fighting the fire, Columbia Fire Department Assistant Fire Chief Charles Sparks suffered a heart attack. Assistant Chief Sparks never recovered and died on July 8, 2011 as a result of injuries incurred performing his duties on June 30, 2011. Steve and Brandi Pritchard subsequently claimed that they were not at home when the fire started, and speculated that the fire could have started due to electrical problems.
After the fire, Brandi Pritchard submitted an insurance claim to Grange Insurance Company. That claim falsely listed numerous items that the Pritchard’s did not own, and overstated the value of other items. Steve Pritchard allegedly assisted Brandi Pritchard in preparing that false insurance claim, and shared the proceeds of the fraud when Grange Insurance Company paid Brandi Pritchard the full value of the policy. Grange Insurance Company mailed checks to Brandi Pritchard on July 16, 2011, and September 3, 2011, in furtherance of the scheme.
If convicted at trial, Pritchard could be sentenced to no less than seven years and up to life in prison for count 1, and no more than 20 years in prison for count two. Payment of restitution in the amount of $50,000 is a requirement of the plea agreement.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Nute Bonner and is being investigated by the Federal Bureau of Investigation.
Albany Man Sentenced to 60 Months on Firearm and Drug Trafficking ChargesRead the Press Release
ALBANY, NEW YORK – Calvin Strong, age 25, of Albany, New York, was sentenced today to 60 months of imprisonment for possessing a handgun and possessing with the intent to distribute cocaine, crack cocaine, and heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his December 7, 2016 guilty plea, Strong admitted that on October 18, 2015, while inside of an apartment in Troy, New York, he unlawfully possessed a handgun and quantities of cocaine, crack cocaine, and heroin, all with the intent to distribute the drugs.
Senior United States District Judge Thomas J. McAvoy also imposed a 6-year term of supervised release, which will start after Strong is released from prison.
This case was investigated by the ATF and the Albany Police Department, and was prosecuted by Assistant U.S. Attorney Richard Belliss.
Akron man with domestic violence and firearms convictions indicted for illegally having rifle and ammunitionRead the Press Release
An Akron man was indicted for being a felon in possession of a firearm, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Rocky L. Wodicka, II, 35, had a Predator Arms 5.56 NATO PCS15 rifle and ammunition on March 3. Wodicka is prohibited for having firearms because of previous convictions in the Summit County Court of Common Pleas for domestic violence and having a weapon under disability, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
42-Count Federal Indictment UnsealedRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that a 42-count federal indictment was unsealed against nine defendants, all from the Columbia area. The nine individuals indicted include: Christopher Donnell Brown, age 38 , Delvaron Mufeed Jonel Thomas, age 34, Brian Lamark Gunter, age 26, Frederick Raheem Gunter, age 24, Meldrick Leon Owens, age 27, Ernest Gerod Sims, age 43, Reginald Yvon Jones, age 52, Stacey Andre George, age 32, and Warren Spruill, Jr., age 32. All the defendants are in custody except Brian Gunter and Frederick Raheem Gunter, who are fugitives and are being sought by law enforcement.
The indictment charged all the defendants with being in a conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and 280 grams or more of cocaine base, a violation of 21 U.S.C. § 846. The maximum penalty for this charge is life imprisonment and a maximum fine of $20,000,000.00. All the defendants are also charged with multiple counts of use of a telephone to facilitate a drug trafficking crime, a violation of 21 U.S.C. § 843(b). The maximum penalty for this offense is 8 years imprisonment and a maximum fine of $250,000.00.
Brown is also charged with eleven counts of distribution of crack cocaine on different days, a violation of 21 U.S.C. § 841(a)(1). The maximum penalty for these charges is life imprisonment and a maximum fine of $20,000,000.00.
Sims is also charged in additional counts for distribution of crack cocaine, a violation of 21 U.S.C. § 841(a)(1); being a felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1); and, possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). The maximum penalty for these charges is life imprisonment and a maximum fine of $1,000,000.00.
The United States Attorney stated all charges in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
The case was investigated by agents of the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, South Carolina Law Enforcement Division, Richland County Sheriff's Office and City of Columbia Police Department and is assigned to Assistant United States Attorney William K. Witherspoon of the Columbia office for prosecution.
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2 May 2017
Women Sentenced to Imprisonment for Conspiring with Tax Preparer to File More Than $1.5 Million in Fraudulent RefundsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever III sentenced alicia johnson jenkins, 35, of Kinston, to 60 months imprisonment followed by 3 years of supervised released and was ordered to pay $1,759,830 to the IRS. KIAWANNA MONIKA LANGLEY, 33, of Greenville, was sentenced to 24 months imprisonment, followed by 3 years supervised release, and ordered to pay $20,322 in restitution to the IRS. On November 7, 2016, JENKINS and LANGLEY pled guilty to Conspiracy to Defraud the United States With Respect to Claims.
The Indictment alleged that JENKINS and LANGLEY conspired with Isaac Augustus Blount, III, and others, to file false income tax returns (Forms 1040 and 1040A) with the Internal Revenue Service for tax years 2009, 2010, 2011, and 2012. During the course of the scheme, LANGLEY would refer clients to JENKINS, who would prepare false W-2 forms which reflected false income and withholdings amounts. JENKINS would then refer the clients to Blount, who prepared and filed the false income tax returns electronically through his tax business, Enriched Tax Services in Greenville, North Carolina. Based on the false information in the returns, the clients were issued tax refunds to which they were not entitled. JENKINS, LANGLEY, Blount, and others usually split $1,500.00 in cash from each refund check.
Blount pled guilty to False Claims Against the United States and False Statements Related to Health Care Matters on June 20, 2016. On November 9, 2016, Chief Judge Dever sentenced Blount to a total of 27 months imprisonment, 3 years supervised release, and ordered to pay restitution in the amount of $1,645,788.00 to the Internal Revenue Service and $131,915.68 to the North Carolina Fund for Medical Assistance.
“Individuals like Langley and Jenkins who commit refund fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Special Agent in Charge Thomas J. Holloman III of the IRS-Criminal Investigation. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system. IRS-Criminal Investigation remains committed to the pursuit of refund fraud and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation and the North Carolina State Bureau of Investigation, Medicaid Criminal Investigations Unit. Assistant United States Attorney Susan Menzer handled the case on behalf of the Government.
Woman Arrested for Use of Arson or ExplosivesRead the Press Release
SAN JUAN, Puerto Rico– Today, United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint against Nina Droz Franco, charging her for damaging or attempting to damage by means of fire a building engaged in activity affecting interstate commerce, in violation of Title 18, United States Code, Section 844(i), announced United States Attorney Rosa Emilia Rodríguez-Vélez. ATF is in charge of the investigation.
According to the information contained in the complaint, yesterday there were numerous protests in the San Juan Metro area, including on Ponce de Leon Street in Hato Rey-- San Juan, Puerto Rico. During the course of the protest on Ponce de Leon Street, numerous individuals vandalized the Popular Center building. This building houses various commercial establishments engaged in interstate commerce, including a bank and food establishments. After several individuals broke windows of the building, two individuals approached one of the broken windows and attempted to light a fire. Specifically, a female and a male approached one of the broken windows and lit a flame. All of these events were captured on video.
A while after this incident, agents of the Puerto Rico Police Department (“PRPD”) arrested the female depicted in the video for lying on a public road, refusing to comply with agents’ instructions, and then assaulting one of the agents. PRPD agents ultimately identified this female as Nina Alejandra Droz-Franco. At the time she was arrested, Droz-Franco was wearing clothing matching the description of the clothing she wore while lighting the flame at the Popular Center building.
“Yesterday, what was planned as a lawful and peaceful demonstration and protest took an unfortunate turn. In collaboration with our state and federal partners we will continue to investigate and prosecute these violent crimes. We cannot, and will not, tolerate these actions to go on in a civilized society,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“The deplorable, reprehensible, and shameful acts of vandalism committed yesterday shall be thoroughly investigated and prosecuted to the full extent of the law. We warned that this administration would guarantee the rights of freedom of expression of all citizens, however those who violate the law shall not go unpunished,” said Wanda Vázquez-Garced, Secretary of the Puerto Rico Department of Justice.
“We want to call on people who can identify the demonstrators who used violence against law enforcement and damage to public and private buildings. Here we have a photo of one of the alleged people who thanks to the media could see his face. You can help us by calling 7873432020 confidentially or at policia.pr.gov,” said Henry Escalera, Deputy Superintendent of the Puerto Rico Police Department.
Assistant United States Attorney Alexander Alum is in charge of the prosecution of the case. If convicted, the penalties Droz-Franco is facing are a minimum term of imprisonment of five years, and a maximum term of 20 years, a supervised release term of not more than 3 years, and a fine not to exceed $250,000.
West Michigan Man Sentenced to Prison in Scheme to Defraud Herman Miller Inc. of $1.77 MillionRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Spring Lake resident Jerry Lee Akers, 54, was sentenced to serve 41 months in prison for his role in defrauding furniture manufacturer Herman Miller Inc. in a vendor invoicing scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence. In addition to the prison term, Akers was ordered to serve two years of supervised release; to pay $507,309.14 in restitution, and forfeited an additional $507,309.14 to the government.
Akers pled guilty to conspiracy to commit mail fraud and wire fraud. He admitted conspiring with Coopersville resident Kevin Grimm to devise and execute a scheme to defraud Herman Miller between June 2010 and July 2015 using Grimm’s company, KJ Gas Transportation, LLC. With Akers’s assistance on the inside of the company, Grimm submitted false and fraudulent invoices for payment for natural gas services he never provided. The fraud scheme generated $1,772,726 in payments to Grimm’s company.
Co-conspirator Kevin Grimm was indicted by a grand jury in February 2017 for his role in the offense. On March 21, 2017, Grimm pled guilty to conspiring with Akers to defraud Herman Miller Inc. in the scheme. Grimm will be sentenced by Judge Maloney on July 10, 2017.
Prior to Akers’s sentencing, Akers and Grimm collectively returned $1,265,417 of the illegal proceeds they obtained during the fraud. Akers’s sentence reflects, in part, the government’s recommendation that he receive a reduced sentence for his substantial assistance to law enforcement in the investigation and prosecution of Grimm.
"The FBI is committed to rooting out all fraud that endangers local businesses which make up the backbone of our American economy. We will continue to work with our partners at the U.S. Attorney’s Office to investigate fraudulent schemes and stop those who line their own pockets at the expense of others,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
This matter was investigated by the Grand Rapids office of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher O’Connor.
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Waimanalo Event Promoter Sentenced to Eight Years in Federal Prison for Fraud OffenseRead the Press Release
HONOLULU – Turk K. Cazimero, 57, a resident of Waimanalo, Oahu, was sentenced today to serve eight years in federal prison, and ordered to pay restitution of $857,760 for committing fraud offenses over a period of twelve years.
Elliot Enoki, Acting United States Attorney for the District of Hawaii, said that according to court documents, Cazimero operated Hawaiian Hurricane Productions, a company that promoted concerts and special events, including surfing competitions. Cazimero was charged in an indictment with wire fraud offenses involving the solicitation of money from "investors" between September 2013 and September 2015, by falsely promising that the money would be used to pay artists and costs associated with various concerts. Cazimero promised investors either high rates of return, ownership in the concerts, or the chance to be corporate sponsors. Cazimero also showed the investors posters that he had prepared, which made it appear that particular artists would perform concerts at certain venues, and that large corporations were sponsoring the concerts, when in fact the concerts had not actually been arranged.
In December 2016, Cazimero pled guilty, admitting that he had promoted fake concerts, and intended to use, and did use, money from investors to pay his own living expenses, or to pay back earlier investors who were owed money. Cazimero agreed that he obtained $901,000 from his victims, and agreed to the entry of an order directing him to pay restitution to eleven victims.
Cazimero was previously convicted in 2003 of Hawaii state securities fraud violations. Cazimero received probation on that charge, and began his federal violations shortly thereafter. At today’s sentencing before United States District Judge Derrick K. Watson, the government presented information that some of Cazimero’s victims took out home equity loans to generate money for him, lost their life savings and retirement accounts, and suffered emotional distress leading to depression and divorce. In imposing a 96 month sentence, Judge Watson noted that Cazimero has been committing ongoing fraud offenses for nearly two decades, and used the proceeds to support himself. Judge Watson ordered Cazimero into federal custody immediately to begin service of his sentence.
The case was investigated by the Federal Bureau of Investigation and the State of Hawaii, Department of Consumer and Commerce Affairs, Securities Enforcement Branch. The case was prosecuted by Assistant U.S. Attorney Larry Tong.
United States Intervenes in False Claims Act lawsuit Against UnitedHealth Group Inc. for Mischarging the Medicare Advantage and Prescription Drug ProgramsRead the Press Release
The United States has intervened and filed a complaint in a lawsuit against UnitedHealth Group Inc. (UHG) that alleges UHG obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in UHG’s largest Medicare Advantage Plan, UHC of California, the Justice Department announced today. Yesterday’s action follows the government’s intervention in February of this year in United State ex rel. Poehling v. UnitedHealth Group. Inc., a related lawsuit in the Central District of California that also alleges that UHG defrauded the Medicare Program. government is scheduled to file a complaint in that matter no later than May 16.
UHG is the nation’s largest Medicare Advantage Organization (MAO), with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. receives a monthly payment from Medicare for each beneficiary that is based, in significant part, on the health status of the beneficiary.
The complaint filed yesterday by the United States alleges that UHG knowingly disregarded information about beneficiaries’ medical conditions, which increased the payments UHG received from Medicare. In particular, the lawsuit contends that UHG funded chart reviews conducted by HealthCare Partners (HCP), one of the largest providers of services to UHG beneficiaries in California, to increase the risk adjustment payments received from the Medicare Program for beneficiaries under HCP’s care. However, UHG allegedly ignored information from these chart reviews about invalid diagnoses and thus avoided repaying Medicare monies to which it was not entitled.
“The intervention of the United States in this matter illustrates our commitment to ensure the integrity of the Medicare Part C program,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
“Medicare Advantage plans not only receive taxpayer-funded payments, but are intended for the health and welfare of the beneficiaries,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “This action sends a warning that our office will continue to scrutinize and hold accountable Medicare Advantage insurers to safeguard the integrity of the Medicare program.”
The lawsuit was filed by James Swoben, a former employee of Senior Care Action Network (SCAN) Health Plan and a consultant to the risk adjustment industry. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds, and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Western District of New York and the Central District of California, and the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted against UHG are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Swoben v. Secure Horizons, et al., 09-5013. The Poehling complaint is captioned United States of America ex rel. Benjamin Poehling v. UnitedHealth Group, Inc., No. 16-08697. Both are pending in the U.S. District Court for the Central District of California.
UPDATED - Former North Charleston, South Carolina, Police Officer Michael Slager Pleads Guilty to Federal Civil Rights OffenseRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
WASHINGTON – Former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager, 35, pleaded guilty to a federal civil rights offense for his fatal shooting of Walter Scott, Jr. on April 4, 2015.
Attorney General Jeff Sessions, Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division, U.S. Attorney Beth Drake of the District of South Carolina, Special Agent in Charge Alphonse “Jody” Norris of the FBI’s Columbia Division, Solicitor Scarlett A. Wilson of the Ninth Judicial Circuit and Chief Mark Keel of the South Carolina Law Enforcement Division (SLED) announced today’s guilty plea, which took place in the U.S. District Court for the District of South Carolina. The plea will resolve both the federal and the state cases pending against Michael Slager. Prior to entry of the guilty plea, jury selection in the federal trial had been scheduled to begin on May 9, and a state trial had been set for August.
According to documents filed in connection with the guilty plea, Michael Slager, while acting as an NCPD Officer, willfully used deadly force on Walter Scott even though it was objectively unreasonable under the circumstances. Slager had stopped Scott’s vehicle after observing that a brake light was not working. During the stop, Scott fled on foot and Slager pursued him. During the foot chase, Slager deployed his Taser and Scott fell to the ground. Scott managed to get off of the ground and again run away. Scott was unarmed and running away when Scott fired eight shots at him from his department-issued firearm. Five shots hit Scott, with all of the bullets entering from behind. Scott died as a result of the injuries from Slager’s gunshots.
“The Department of Justice will hold accountable any law enforcement officer who violates the civil rights of our citizens by using excessive force,” said Attorney General Sessions. “Such failures of duty not only harm the individual victims of these crimes; they harm our country, by eroding trust in law enforcement and undermining the good work of the vast majority of honorable and honest police officers. As our Department works to support the courageous and professional law enforcement personnel who risk their lives every day to protect us, we will also ensure that police officers who abuse their sacred trust are made to answer for their misconduct.”
“Our hearts are with the Scott family today. They have persevered in their quest for justice for their loved one, and I hope that today brings them a measure of closure,” said U.S. Attorney Drake. “I also want to thank both Solicitor Wilson of the Ninth Judicial Circuit and South Carolina Law Enforcement Division Chief Mark Keel for their efforts to secure justice in this matter.”
“The resolution of this investigation protects the integrity of law enforcement, maintains the confidence of the community, and ensures justice is served in a fair and impartial manner,” said Special Agent in Charge Norris. “The cooperation between the South Carolina Law Enforcement Division, the U.S. Attorney's Office, the Charleston County Solicitor's Office, the Civil Rights Division, and the FBI Columbia Division was paramount in bringing this case to a successful conclusion.”
“This conviction is prime example of the strong results we can get when federal and state authorities work together,” said Solicitor Wilson. “We are grateful for the Department of Justice for their role in obtaining justice for the Scotts with this conviction and in moving our community forward through their hard work.”
“SLED’s role in any criminal investigation is to discover the facts of the case and report them,” said Chief Keel. “For the men and women of SLED, working closely with our partners in the Ninth Circuit Solicitor’s Office, the U.S. Department of Justice, the FBI and the U.S. Attorney’s Office, today’s plea is the culmination of our collaboration.”
“This disposition is the product of the excellent work of state and local law enforcement. I am proud of the leadership of U.S. Attorney Beth Drake and the critical work of the FBI. The teamwork in this case represents the best in law enforcement,” added Attorney General Sessions.
Slager faces a maximum sentence of life in prison for the federal civil rights violation, as well as a potential $250,000 fine. Both federal prosecutors and Solicitor Wilson will have the opportunity to address the Court at sentencing.
The case was investigated by the FBI’s Columbia Division and the South Carolina Law Enforcement Division. The federal case is being prosecuted by Assistant U.S. Attorneys Eric Klumb and Alyssa Richardson of the District of South Carolina and Special Litigation Counsel Jared Fishman and Trial Attorney Rose Gibson of the Civil Rights Division of the Department of Justice. The state case is being prosecuted by Scarlett A. Wilson and the Office of the Solicitor of the Ninth Judicial Circuit.
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U.S. Intervenes in ‘Whistleblower’ Case Alleging UnitedHealth Group Mischarged Medicare Advantage and Prescription Drug ProgramsRead the Press Release
LOS ANGELES – The United States has intervened and filed a complaint in a lawsuit against UnitedHealth Group Inc. that alleges UnitedHealth obtained inflated risk adjustment payments based on untruthful and inaccurate information about the health status of beneficiaries enrolled in its largest Medicare Advantage Plan, UHC of California.
The civil complaint filed yesterday afternoon follows the government’s intervention in February in United State ex rel. Poehling v. UnitedHealth Group. Inc., a related case in Los Angeles that also alleges that UnitedHealth defrauded the Medicare Program. The government is scheduled to file a complaint in the Poehling matter no later than May 16.
UnitedHealth is the nation’s largest Medicare Advantage Organization, with more than 50 Medicare Advantage and Drug Prescription plans providing healthcare services and prescription drug benefits to millions of Medicare beneficiaries throughout the United States. UnitedHealth receives a monthly payment from Medicare for each beneficiary that is based, in significant part, on the health status of the beneficiary.
The complaint filed yesterday by the United States alleges that UnitedHealth knowingly disregarded information about beneficiaries’ medical conditions, which increased the payments UnitedHealth received from Medicare. In particular, the lawsuit contends that UnitedHealth funded chart reviews conducted by HealthCare Partners, one of the largest providers of services to UnitedHealth beneficiaries in California, to increase the risk adjustment payments received from the Medicare Program for beneficiaries under the care of HealthCare Partners. However, UnitedHealth allegedly ignored information from these chart reviews about invalid diagnoses and thus avoided repaying Medicare monies to which it was not entitled.
“Medicare Advantage plans not only receive taxpayer-funded payments, but are intended for the health and welfare of the beneficiaries,” said Acting U.S. Attorney Sandra R. Brown for the Central District of California. “This action sends a warning that our office will continue to scrutinize and hold accountable Medicare Advantage insurers to safeguard the integrity of the Medicare program.”
The “whistleblower” lawsuit was filed by James Swoben, a former employee of Senior Care Action Network (SCAN) Health Plan and a consultant to the risk adjustment industry. The case is United States ex rel. Swoben v. Secure Horizons, et al., CV09-5013. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. The False Claims Act permits the government to intervene in such a lawsuit, as it has done, in part, in this case.
“The intervention of the United States in this matter illustrates our commitment to ensure the integrity of the Medicare Part C program,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.
This matter was investigated by the United States Attorney’s Office in Los Angeles, the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Western District of New York, and the U.S. Department of Health and Human Services’ Office of Inspector General.
The claims asserted against UnitedHealth are allegations only, and there has been no determination of liability.
The government’s intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Two Sent to Prison for Possessing Carter’s Country Stolen GunsRead the Press Release
HOUSTON – Two Houston men found in possession of firearms stolen from Carter’s Country gun store in March 2016 have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Anthony D. Cannon, 21, and Tony L. Watkins, 24, pleaded guilty Sept. 2, 2016, to being felons in possession of a firearm.
Today, U.S. District Judge David Hittner ordered Cannon serve 46 months in federal prison, while Watkins received a 57-month sentence. Both men will also be required to serve three years of supervised release immediately following their release from prison. In handing down the sentence, Judge Hittner noted that both Cannon and Watkins had relatively high criminal histories despite their relative ages.
At approximately 4:30 a.m. on March 1, 2016, law enforcement responded to an alarm at the Carter’s Country gun store in Houston. Upon arrival, authorities noted the front doors had been busted open and the business had been ransacked. Numerous firearms had been stolen, including handguns, rifles and shot guns.
A truck appeared to have backed up to the front doors of the business. Store surveillance video showed an unknown individual who wrapped a chain around the doors and pulled the doors off the building. Approximately 11 suspects ran inside, broke the glass cabinets and stole 84 firearms.
Law enforcement soon discovered that some of the stolen firearms were being sold. They set up surveillance and eventually arrested both Cannon and Watkins who were found in possession of several of the stolen firearms. As convicted felons, both men are prohibited from possessing a firearm per federal law.
They have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
No one has yet been charged in the Carter’s Country robbery. The investigation is ongoing.
A joint federal task force conducted the investigation that includes the Bureau of Alcohol Tobacco, Firearms and Explosives and the FBI. Assistant U.S. Attorney Julie N. Searle is prosecuting the case.
Two Alabama Men Arrested and Indicted on Sex Trafficking ChargesRead the Press Release
Two Alabama men have been arrested and charged in an indictment unsealed today with crimes related to sex trafficking of a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney A. Clark Morris of the Middle District of Alabama.
Michael Lowe, 24, and Joshua Rose, 28, both of Prattville, Alabama, were charged in an indictment returned on April 26, 2017, by a federal grand jury sitting in Montgomery, Alabama, with one count each of sex trafficking of a minor and conspiracy to commit sex trafficking of a minor. Lowe was arrested yesterday, and Rose has been in custody since Aug. 5, 2016. According to the indictment, beginning on an unknown date through June 2016, Rose and Lowe conspired to recruit, entice and transport a minor victim, knowing that the victim was a minor and would be caused to engage in a commercial sex act.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Prattville, Alabama, and the Montgomery, Alabama, Police Departments are investigating the case. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Hollie Reed of the Middle District of Alabama are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Top Two Executives of Credit Card Processing Company Charged in $30 Million Overbilling SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Philip R. Bartlett, the Inspector in Charge of the U.S. Postal Inspection Service, and David E. Beach, Special Agent in Charge of the New York Field Office of the U.S. Secret Service, announced the indictment and arrest today of MICHAEL MENDLOWITZ, a/k/a “Moshe Mendlowitz,” and RICHARD D. HART, a/k/a “Rick Hart,” on charges of fraudulently operating a payment card processing company that operated under various names including Commerce Payment Systems (“CPS”). MENDLOWITZ, the chief executive officer and part owner of CPS, and HART, a CPS vice president and director of sales and the president of a number of CPS affiliated companies, are charged with masterminding a years-long scam that took more than $30 million from more than 10,000 small businesses, who relied upon CPS to help them process debit card and credit card sales. MENDLOWITZ and HART were arrested this morning and will be presented and arraigned later today before U.S. District Judge Vernon S. Broderick.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Michael Mendlowitz and Richard Hart, executives of a credit card processing company, allegedly preyed on small business owners, defrauding over ten thousand businesses of over $30 million. Small businesses – like all businesses – are entitled to be treated fairly and to have their bills honestly reflect the services they received. That is not what the businesses that Mendlowitz and Hart dealt with got. Instead, they allegedly got a series of lies and misrepresentations to support tens of millions of dollars in overbilling.”
U.S. Postal Inspector in Charge Philip R. Bartlett said: “In an economy where small businesses are already struggling, it’s disappointing these individuals allegedly devised a scheme to prey upon these business owners by lying and manipulating the fees they are required to pay for debit and credit transactions. Postal Inspectors reminds fraudsters that defrauding members of the business community will never be tolerated. We will find you and bring you to justice for misuse of the US Mail.”
Secret Service Special Agent in Charge David E. Beach said: “Technological advancements have led to the sophistication of fraudulent schemes. While these schemes have a profound impact on our financial crimes investigations, this case demonstrates the combined power of law enforcement and our federal partners to share information and resources, and ultimately bring the alleged perpetrators to justice.”
According to the Indictment unsealed today in Manhattan federal court[1]:
MENDLOWITZ and HART operated a fraud scheme founded on false claims of very low fees, along with false promises that there were “no hidden fees,” and that rates were “guaranteed for life.” In truth, however, CPS customers were charged all manner of hidden fees, and MENDLOWITZ subsequently altered customer accounts to add even higher fees. Among other deceptive tactics, MENDLOWITZ and HART used a “cost comparison calculator” that ostensibly showed potential customers a direct comparison between what they were currently paying versus what they would pay if they became customers of CPS. However, these cost comparison calculators were intentionally designed to conceal many of the fees that the customers would be charged.
In furtherance of their fraud, MENDLOWITZ and HART also concealed from customers pages of contract terms that directly contradicted representations made to customers during the sales process. When internet ratings of CPS became particularly negative, MENDLOWITZ and HART surreptitiously created a series of other corporate names, each with its own email domain, internet web page, and phone number, to operate their scheme free of the negative reviews. These brand-new affiliates were marketed under false brochures and websites that falsely claimed that the affiliate had been in business for many years, had “300,000 satisfied customers,” and that those customers included major national hotel chains, restaurant chains, and a university.
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MENDLOWITZ, 42, of Woodmere, Long Island, and HART, 36, of East Meadow, Long Island, are each charged in three counts, with wire fraud, mail fraud, and conspiracy to commit wire and mail fraud. Each charge carries a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Kim praised the work of the U.S. Postal Inspection Service and the United States Secret Service, as well as the Office of the Special Investigator General for the Troubled Asset Relief Program (“SIGTARP”).
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Men Plead Guilty to Human Smuggling Extortion CaseRead the Press Release
ALEXANDRIA, Va. – Three men have pleaded guilty to offenses involving the transportation of an illegal alien for financial gain after driving a 17-year old girl from El Salvador within the United States and demanding additional money from her family for her release.
According to the statement of facts filed with the plea agreements tied to the case, Daniel Lopez-Martinez, 32, of Mexico, Juan Tomas Nicolas, 23, of Guatemala, and Ernesto Solis, Jr., 29, of Mission, Texas, worked together to transport a 17-year old girl from El Salvador within the United States for money. Once she arrived in Houston, multiple calls were made by the defendants to the girl’s father located in Loudoun County. In the calls, the defendants demanded an additional $4,700. The defendants agreed to turn the girl over to the father only upon receipt and counting the money. The girl was rescued after FBI Agents and Task Force Officers in Houston interceded in the scheduled transfer of funds.
The defendants face a maximum penalty of 10 years in prison. Lopez-Martinez is scheduled to be sentenced on July 28, while Nicolas is scheduled to be sentenced on August 11, and Solis Jr. on August 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Gregory C. Brown, Leesburg Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Maureen Cain is prosecuting the case.
This case was investigated by the FBI’s Washington Field Office with assistance from the FBI’s Houston Field Office, the FBI’s McAllen Resident Agency, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
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
Three Cape Cod Men Plead Guilty to Heroin and Suboxone TraffickingRead the Press Release
BOSTON – Three Cape Cod men pleaded guilty yesterday in federal court in Boston in connection with trafficking heroin and suboxone.
Oliver Hamilton, 26, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Sept. 13, 2017.
Browning Mejia, 26, pleaded guilty to use of a communications facility in furtherance of a felony drug offense and is scheduled to be sentenced on Sept. 14, 2017.
Jason Mello, 29, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and possession of heroin with the intent to distribute. Mello’s sentencing is scheduled for Sept. 15, 2017.
All three individuals had been charged as part of the federal investigation into the “Nauti-Block” gang that led to the indictment of 19 individuals. In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular. Law enforcement focused on the “Nauti-Block” gang led by Denzel Chisholm, Christian Chapman and Christopher Wilkins. Chapman previously pleaded guilty to heroin trafficking, while Chisholm and Wilkins are scheduled to stand trial on June 5, 2017.
According to court documents, Chisholm, Chapman and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. These gang leaders obtained heroin from New Bedford, amongst other suppliers, and distributed the heroin to numerous drug dealers on Cape Cod, including Mello and Hamilton. Hamilton agreed to accept responsibility for between 100 and 400 grams of heroin. In addition, it was stated at Mejia’s plea hearing that Chisholm obtained suboxone from his heroin customers and then supplied that suboxone to Mejia, who distributed it at MCI-Norfolk prison, where he was an inmate.
The charge of conspiracy to distribute and possession with the intent to distribute heroin and possession of heroin with the intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charge of use of a communications facility in furtherance of a felony drug offense provides for a sentence of no greater than four years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald made the announcement today. Assistant U.S. Attorneys Eric S. Rosen and Miranda Hooker of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the case.
Stock Promoter Convicted in $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, following a two-week trial, a federal jury in Brooklyn, New York, returned a guilty verdict on all counts against Louis Petrossi, a former registered broker, for his role in a $131 million fraudulent promotion and market manipulation scheme involving ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The defendant used a company called the Wealth Research Institute to induce investors to purchase ForceField stock, for which he received a secret ten percent commission. Petrossi and others also engaged in illegal trading to fraudulently increase the value of the stock. The defendant was convicted of conspiracy to commit securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and securities fraud. Petrossi is the ninth defendant convicted in this case.
When sentenced by United States District Judge Brian M. Cogan, Petrossi faces a maximum sentence of 20 years’ imprisonment.
The verdict was 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).
Ms. Rohde thanked the FBI for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert of the Office’s Business and Securities Fraud Section.
The Defendant:
Louis Petrossi
Age: 76
Reno, Nevada
E.D.N.Y. Docket No. 16-CR-234 (BMC)
Stamford Man Who Captured and Killed Federally Protected Hawks is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM BOGUSKI, 44, of Stamford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to one year of probation for killing red-tailed hawks and Cooper’s hawks. Judge Chatigny also ordered BOGUSKI to pay a $250 fine and perform 60 hours of community service at a local animal shelter.
Red-tailed hawks and Cooper’s hawks are birds of prey, also known as raptors, and consume pigeons as part of their natural diet. These hawks are protected under the federal Migratory Bird Treaty Act.
According to court documents and statements made in court, Thomas Kapusta and BOGUSKI were racing pigeon enthusiasts who constructed and maintained a pigeon coop at 330 Weed Avenue in Stamford. Kapusta and BOGUSKI kept a large number of racing pigeons at this coop, and regularly let them fly outside the coop for exercise. Because Kapusta and BOGUSKI viewed these hawks as a threat to their pigeons, they systematically captured the hawks in a trap specifically designed to capture birds of prey, shot and killed them in the trap, and disposed of their carcasses.
Knowing that he was violating the law by capturing and killing the hawks, Kapusta instructed BOGUSKI to refer to the hawk trap as a “breeding cage” if law enforcement ever inquired.
On August 8, 2016, BOGUSKI pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and two counts of taking, capturing and killing Cooper’s hawks. In pleading guilty he admitted that he killed Cooper’s hawks on September 27, 2015 and October 17, 2015.
On February 17, 2016, Kapusta pleaded guilty to one count of conspiracy to take, capture and kill red-tailed hawks and Cooper’s hawks, and four counts of taking, capturing and killing red-tailed hawks or Cooper’s hawks. In pleading guilty he admitted that he killed red-tailed hawks on September 8 and October 14, 2015, and Cooper’s hawks on September 2 and October 21, 2015.
On October 19, 2016, Judge Chatigny sentenced Kapusta to one year of probation and order him to pay a $5,500 fine and perform 90 hours of community service at a local animal shelter.
Judge Chatigny ordered several special conditions of Kapusta’s and BOGUSKI’s terms of probation that restrict their ability to engage in the racing pigeon hobby, including allowing the pigeon coop in Stamford to be randomly inspected by federal and state environmental authorities.
This matter was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Division of Refuge Law Enforcement, and the Environmental Conservation Police of the Connecticut Department of Energy and Environmental Protection, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
South Bay Methamphetamine Trafficker Sentenced to Ten Years in PrisonRead the Press Release
SAN JOSE – Victor Francisco Ramirez, Jr., was sentenced today to 120 months in prison for his role in a conspiracy to possess with the intent to distribute methamphetamine announced United States Attorney Brian J. Stretch and Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence was handed down by the Honorable Beth Labson Freeman, U.S. District Judge, following Ramirez’s guilty plea on November 15, 2016.
According to his plea agreement, Ramirez, 20, of San Jose, admitted that in April and May of 2016, he knowingly participated in two methamphetamine sales in the San Jose area. Ramirez admitted that on April 28, 2016, he delivered approximately 487.3 grams of a mixture and substance containing methamphetamine to another individual at a parking lot on West Capitol Expressway in San Jose in exchange for a payment of $3,000. Ramirez further admitted that on May 19, 2016, he delivered approximately 1056.5 grams of a mixture and substance of containing methamphetamine to an individual in a parking lot on East Capitol Expressway in exchange for a payment of $6,800.
On July 7, 2016, a federal grand jury indicted Ramirez and three co-conspirators for their respective roles in the conspiracy to distribute methamphetamine. For his part, Ramirez was charged with one count of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. § 846, and two counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Pursuant to his guilty plea, Ramirez pleaded guilty to the conspiracy charge, and the possession with intent to distribute charges were dismissed.
In addition to the prison term, Judge Freeman ordered Ramirez to serve a five-year period of supervised release. Ramirez is currently out of custody on a $100,000 secured bond. Judge Freeman ordered the defendant to surrender on or before July 6, 2017, to begin serving his sentence.
Assistant U.S. Attorney Jeff Nedrow is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of an investigation by the DEA.
Seventeen Indicted on Federal Methamphetamine Conspiracy and Firearms ChargesRead the Press Release
KNOXVILLE, Tenn. – On April 4, 2017, a federal grand jury in Knoxville returned a seven-count indictment against the following individuals for their roles in the distribution of methamphetamine:
Keith L. Bird, a.k.a. “Dirty Bird,” 37, of Friendsville, Tennessee;
Daniel Hixon, 32, of Chattanooga, Tennessee;
James Haynes, a.k.a.“Haun,” 28, of Norcross, Georgia;
Christopher Mitchell, a.k.a. “Banjo,” 30, of Maryville, Tennessee;
Michael Smith, 32, of Norcross, Georgia;
Steve Bartholomew, a.k.a. “Trigger,” 50, of Louisville, Tennessee;
Samuel Higgins, a.k.a. “Sambo,” 25, of Maryville, Tennessee;
Jeremiah Higgins, 24, of Maryville, Tennessee;
Dennis Clark, a.k.a. “Big Brother,” 30, of Philadelphia, Tennessee;
Ashley Morris-Casebolt, 31, of Lenoir City, Tennessee;
Chadwick Condry, 44, of Maryville, Tennessee;
Thomas Freeman, 43, of Greenback, Tennessee;
William Norman, 42, of Rocky Top, Tennessee;
George Nicholas Bailey, 38, of Maryville, Tennessee;
John Shane Bailey, 44, of Knoxville, Tennessee;
Burt Cable, 46, of Maryville, Tennessee; and
Shannon Kirby, 49, of Friendsville, Tennessee
Trial has been set for August 1, 2017, before the Honorable Pamela Reeves, U.S. District Court Judge.
The indictment, on file with the U.S. District Court, alleges that each of these individuals was involved in a conspiracy to distribute 50 grams or more of methamphetamine in the Eastern District of Tennessee and elsewhere. Bird, Hixon, Haynes, and Smith were also each charged with one count of possession of a firearm in furtherance of a drug trafficking crime. Additionally, Bird was charged with two counts of distributing five grams or more of methamphetamine.
If convicted of the methamphetamine conspiracy charge, each faces a minimum mandatory term of imprisonment of at least 10 years and up to life, at least five years of supervised release, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment. The punishment for the firearm charges returned against Bird, Hixon, Haynes, and Smith is a minimum mandatory term of at least five years and up to life in prison, which must be served consecutively to any other prison term imposed, up to five years supervised release, a fine of up to $250,000, and a $100 special assessment. If convicted of the two methamphetamine distribution counts, Bird also faces a minimum mandatory sentence of at least five and up to 40 years in prison, at least four years of supervised release, a fine of up to $5,000,000, any applicable forfeiture, and a $100 special assessment.
This indictment is the result of an investigation by the Tennessee Bureau of Investigation, Fifth Judicial Drug Task Force, Blount County Sheriff’s Office, Ninth Judicial Drug Task Force, Loudon County Sheriff’s Office, Knox County Sheriff’s Office, and Federal Bureau of Investigation. Assistant U.S. Attorney Kelly A. Norris will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Saga Restaurant Owner Harbored Illegal AliensRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty yesterday in federal court to a charge of harboring illegal aliens, Acting United States Attorney Soo C. Song announced today.
Xing Zheng Lin, aka Steve Lin, age 44, of McKees Rocks, PA pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around 2009, until on or about January 10, 2014, Lin harbored illegal aliens who were employed at Saga Restaurant in Monroeville, Robinson, and Bethel Park, all of which were owned by Lin.
Judge Conti scheduled sentencing for July 31, 2017, at 3:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Lin.
Pursuant to Executive Order on Public Safety, Department of Justice Releases Data on Incarcerated AliensRead the Press Release
President Trump’s Executive Order on Public Safety in the Interior of the United States requires the Department of Justice to collect relevant data and provide quarterly reports on data collection efforts. The data in this release shows a significant prison population of incarcerated aliens.
“Illegal aliens who commit additional crimes in the United States are a threat to public safety and a burden on our criminal justice system,” said Attorney General Jeff Sessions. “This is why we must secure our borders through a wall and effective law enforcement, and we must strengthen cooperation between federal, state and local governments as we strive to fulfill our sacred duty of protecting and serving the American people.”
Below is a summary of data collected under Section 16 of the Order, which directs “the Secretary [of Homeland Security] and the Attorney General . . . to collect relevant data and provide quarterly reports” regarding the following subjects: (a) the immigration status of all aliens incarcerated under the supervision of the Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States.
Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons
The Department’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a daily basis, BOP supplies this data to Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that data to determine the immigration status of each inmate and provides that information back to BOP.
By way of satisfying the department’s first quarterly report of this data, below is information regarding aliens currently incarcerated under the supervision of BOP. This data is current as of March 25, 2017:
There are 45,493 foreign-born inmates currently in BOP custody, of which 3,939 are U.S. citizens (either naturalized or derivative). Of the remaining 41,554 foreign-born inmates (aliens):
o Approximately 22,541 (54.2 percent) are aliens for which final immigration orders have been issued for their removal;
o Approximately 13,886 (33.4 percent) are aliens who are under ICE investigation for possible removal;
o Approximately 5,101 (12.3 percent) are aliens still pending adjudication (in other words, ICE has charged these aliens as removal cases, but a final disposition has not yet been reached); and
o Approximately 26 (0.1 percent) are aliens who have been granted relief on the basis of asylum claims.
Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees
The United States Marshals Service (USMS) is the Justice Department’s component charged with housing and care of federal pretrial detainees. USMS recently instituted a program to capture data regarding the immigration status of these detainees. During the prisoner intake process, USMS captures arrestee data such as place of birth, citizenship country and alien number (if available), in a system called the Justice Detainee Information System (JDIS).
At the department’s direction, USMS has begun providing ICE with complete data on all foreign-born detainees on a daily basis. The first of these data transfers to ICE took place on April 5, 2017, with a transfer of data associated with approximately 19,000 foreign-born detainees. ICE anticipates that its analysis of this data will soon be complete, and the department will then provide an updated status report.
Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States
The Department of Justice and the Department of Homeland Security (DHS) do not currently have a program that collects data regarding the immigration status of convicted aliens incarcerated in state prisons and local detention centers throughout the United States. Neither the Department of Justice nor DHS can independently collect this data without the assistance of the other. To address this need, the Department of Justice is in the process of establishing such a program through its Office of Justice Programs (OJP), which houses the Bureau of Justice Statistics (BJS). BJS already collects some relevant aggregate data from state and local facilities and the department intends to permanently expand BJS’s data collection efforts in this area.
Prior Felon from Albuquerque Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Pilar Angel Lucero, 33, of Albuquerque, N.M., pled guilty today to violating federal firearms laws. The plea agreement included the recommendation that Lucero be sentenced to 48 months in prison followed by a term of supervised release to be determined by the court.
Lucero was charged by criminal complaint on July 7, 2016, with being a felon in possession of a firearm and ammunition on June 16, 2016, in Bernalillo County, N.M., following a routine traffic stop by the Albuquerque Police Department (APD). subsequently was indicted on the same charge on July 28, 2016. According to the indictment, was prohibited from possessing firearms or ammunition because of his previous felony convictions for shooting at a dwelling, shooting at or from a motor vehicle, drug trafficking, child abandonment/abuse, conspiracy to traffic in controlled substances, being a felon in possession of a firearm, and conspiracy to commit burglary of a house.
During today’s proceedings, Lucero pled guilty to the indictment and admitted that on June 16, 2016, APD officers found a handgun with 11 rounds of ammunition in Lucero’s vehicle during a traffic stop. Lucero further admitted purchasing the handgun by using a fake New Mexico driver’s license, and while knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon. Lucero remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the APD. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
Phoenix Man Sentenced to Life for Robbery Spree That Culminated in the Killing of a Retired Police OfficerRead the Press Release
PHOENIX – On May 1, 2017, John Albert Campos, Sr., 49, of Phoenix, Ariz., was sentenced by U.S. District Judge Susan R. Bolton to six consecutive natural life sentences with no possibility of parole. Campos had previously pleaded guilty to carjacking resulting in death, use of firearm during a crime of violence resulting in death, and various other counts of carjacking, use of a firearm during a crime of violence, and Hobbs Act robbery.
“The defendant was appropriately sentenced to life in prison for his senseless crimes, which resulted in the death of an innocent victim who had the terrible misfortune to be in the wrong place at the wrong time,” stated Acting U.S. Attorney Elizabeth A. Strange.
"Campos’ actions have had a devastating, life-long impact on the victim’s family. The FBI will continue to work with our partner agencies to pursue justice for all victims. This sentence was the result of outstanding efforts by the U.S. Attorney’s Office, the FBI, the Phoenix Police Department, the Tempe Police Department, the U.S. Marshal’s Service, and the Gila River Police Department." said FBI Special Agent in Charge Michael Deleon.
On Dec. 24, 2015, Campos carjacked three victims in the parking lot of the Wild Horse Pass Casino on the Gila River Indian Community. Campos shot and killed one of the victims, a retired California police officer. When a fourth man arrived at the scene and attempted to assist the other victims, Campos proceeded to carjack him while brandishing a firearm. The investigation revealed that Campos also committed six armed robberies of convenience stores, grocery stores, and restaurants in Phoenix and Tempe in the two days before the carjackings.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Gila River Police Department, the Phoenix Police Department, and the Tempe Police Department. The prosecution was handled by Dimitra H. Sampson and Keith E. Vercauteren, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-00011-PHX-SRB
RELEASE NUMBER: 2017-039_Campos
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ohio woman found guilty of wire and mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal jury convicted Debra Skipper, 60, of Euclid, Ohio, of mail and wire fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Evidence presented at trial indicated that Skipper conspired with her son, Tyree Skipper, to file false tax returns in multiple states using collected names, birth dates and social security numbers of numerous individuals, including federal inmates. The crimes occurred in Gilmer County and elsewhere between December 2012 and May 2013. Tyree Skipper previously pled guilty to two counts of “Wire Fraud” in February 2017.
Following a two-day trial, a jury found Debra Skipper guilty of one count of “Conspiracy to Commit Mail and Wire Fraud” and two counts of “Wire Fraud.” She faces up to 20 years in prison and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The case was investigated by Internal Revenue Service.
U.S. District Judge Irene M. Keeley presided.
Nixa Man Pleads Guilty to Illegal Bitcoin ExchangeRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to conducting an illegal money transmitting business by exchanging bitcoin for cash without a license.
Jason R. Klein, 37, of Nixa, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with conducting an unlicensed and unregistered money transmitting business.
Klein was the founder of two technology-based companies: Logic Forte and Datality Networks. Logic Forte purportedly provided consulting and computer programming assistance for the restaurant industry. Datality Networks purportedly provided Internet housing and network consulting.
Klein is the president of the Association of Information Technology Professionals (“AITP”) – Southwest Missouri. AITP is a professional association focused on technology education for business professionals. AITP’s southwest Missouri chapter has approximately 230 members and is the largest chapter in the United States.
By pleading guilty today, Klein admitted that he represented himself on the Internet to be a bitcoin exchanger. However, Klein was not a licensed money transmitter with the state of Missouri or with the Financial Crimes Enforcement Network, as required by federal and state law.
An undercover federal agent responded to an online advertisement posted by Klein. Klein told the undercover agent that his rate included a 10 percent commission “for an in-person $1,000 cash exchange.”
Between Feb. 6, 2015, and July 27, 2016, Klein, acting with another, met with two undercover federal agents on numerous occasions to exchange bitcoin for cash. Today’s plea agreement cites five separate transactions in which money (ranging from $1,000 to $15,000) was exchanged in person for an electronic transfer of bitcoin. Each of the transactions included a fee that Klein or another person charged the undercover agents, for a total of $2,122 in fees.
Under federal statutes, Klein is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Bitcoin Background
Bitcoin are not illegal in and of themselves and have legitimate uses. Bitcoin are a decentralized form of electronic currency, existing entirely on the Internet and not in any physical form. The currency is not issued by any government, bank, or company, but rather is generated and controlled automatically through computer software operating on a “peer-to-peer” network. Bitcoin transactions are processed collectively by the software-enabled computers composing the network.
To acquire bitcoin in the first instance, a user typically must purchase them from a bitcoin “exchanger.” In return for a commission, bitcoin exchangers accept payments of currency in some conventional form, including cash, and exchange the money for a corresponding number of bitcoin, based on a fluctuating exchange rate. Exchangers also accept payments of bitcoin and exchange the bitcoin back for conventional currency, again, charging a commission for the service.
Once a user acquires bitcoin from an exchanger, the bitcoin are kept in a “wallet” associated with a bitcoin “address,” designated by a complex string of letters and numbers. The “address” is analogous to the account number for a bank account, while the “wallet” is analogous to a bank safe where the money in the account is physically stored. Once a bitcoin user funds his wallet, the user can then use bitcoin in the wallet to conduct financial transactions over the Internet by transferring bitcoin from his bitcoin address to the bitcoin address of another user.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by IRS-Criminal Investigation.
Newark Man Sentenced to 79 Months in Prison for Posing as Law Enforcement Officer During Home Invasion of Paterson, New Jersey, ResidenceRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 79 months in prison for trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, Acting U.S. Attorney William E. Fitzpatrick announced.
Clemente R. Carlos, 30, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit Hobbs Act robbery. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 34, of Paterson, to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. At around 7:00 a.m. that day, Carlos and Thompson, both dressed in Passaic County Sherriff’s uniforms, accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men, posing as law enforcement officers, led the victim back into her apartment inside the residence.
Once inside, Thompson removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.
In addition to the prison term, Judge Cecchi sentenced Carlos to three years of supervised release.
Thompson was indicted March 22, 2017, on one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. The allegations against him are merely accusations, and he is innocent unless and until proven guilty.
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 guilty plea. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Gary Cutler Esq., Newark
New Jersey Women Facing Federal Drug Trafficking Charges Arising from DEA Seizure of Fourteen Pounds of HeroinRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Ashely Yarell Cruz-Castro, 21, and Stephanie Esther Caminero, 21, both of Patterson, N.J., with heroin trafficking offenses. Cruz-Castro and Caminero were released pending trial under pretrial supervision and other conditions of release.
DEA Special Agents arrested Cruz-Castro and Caminero on April 29, 2017, after they allegedly seized a total of 6.6 kilograms (14.52 pounds) of heroin from the two women during an interdiction investigation at the Greyhound Bus Station in Albuquerque. According to the criminal complaint in which the two women are charged, Cruz-Castro and Caminero each allegedly possessed approximately 3.3 kilograms of heroin in their respective duffle bags.
If convicted, Cruz-Castro and Caminero each face a statutory mandatory minimum of ten years and a maximum of life in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case against Cruz-Castro and Caminero was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney George Kraehe as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
New Jersey Business Owner Sentenced to 50 Months in Prison for Operating Corporate Ponzi SchemeRead the Press Release
NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, New Jersey, was sentenced today to 50 months in prison for wire fraud and money laundering, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Sooy, 66, of Fort Smith, Arkansas, previously pleaded before U.S. District Judge William Walls to an information charging her with one count of wire fraud and one count of transacting in criminal proceeds. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2010 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in a criminal complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.
Sooy operated TransVantage as a Ponzi scheme, which resulted in substantial losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – and then misused those funds in various ways. They paid unauthorized operating expenses and personal expenses.
In addition to the prison term, Judge Walls sentenced Sooy to two years of supervised release and ordered her to pay restitution of $1,185,404.
Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Michael J. Rogers Esq., Somerville, New Jersey
New Haven Man Sentenced for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a New Haven, Mo., man was sentenced in federal court today for attempting to entice or coerce a 14-year-old victim (actually an undercover law enforcement officer) to engage in illicit sex.
Jason M. Strubberg, 27, of New Haven, was sentenced by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
Strubberg was convicted at trial on Sept. 21, 2016, of one count of attempting to entice or coerce a minor to engage in illicit sexual activity.
A detective with the Boone County, Mo., Sheriff’s Department posted an undercover online advertisement on Jan. 6, 2016, as part of an investigation to seek out potential sexual predators. Strubberg responded with several e-mails the same day. The decoy provided Strubberg with a phone number and told him she was looking for someone to help with her 14-year-old daughter’s respect issues.
Strubberg told the decoy he was a dominant person and agreed to help the decoy with her 14-year-old daughter as long as the decoy would sign a contract giving him permission to do so. Strubberg was sent two images of the decoy’s daughter, who he believed to be 14 years of age. Over the course of the next two days, Strubberg described his plans for sexual conduct, including deviate sexual intercourse with the decoy’s daughter.
Strubberg sent a contract to the decoy by text message and asked her to print and sign the contract granting him permission to engage in sexual conduct with the decoy’s daughter.
After further e-mail correspondence, Strubberg asked the decoy and her daughter to meet in person so that he could spend the day with them engaging in sexual conduct. On Jan. 8, 2016, Strubberg arrived at the meeting place and was arrested.
This case was prosecuted by Assistant U.S. Attorney Lawrence Miller. It was investigated by the Boone County, Mo., Sheriff’s Department and its cyber crimes task force, the FBI and the University of Missouri Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Naples Man Sentenced in Connection with “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Wisler Cyrius (36, Naples) to three years in federal prison for conspiracy to commit mail fraud and money laundering. The Court also ordered him to pay $270,329.92 in restitution to the victim automobile insurance companies, and to forfeit property in the amount of the proceeds traceable to the offense. Cyrius pleaded guilty on May 18, 2016.
According to the plea agreement, Cyrius conspired with others to operate unlicensed chiropractic clinics and to bill automobile insurance companies for Personal Injury Protection (PIP) benefits. The conspirators also paid patients to induce them to seek treatment at particular chiropractic clinics so they could bill automobile insurance companies for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and submitted claims to automobile insurance companies for PIP benefits based on those fake accidents.
Four others previously pleaded guilty and have been sentenced for their roles in this conspiracy. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years and 1 month in federal prison. Anouce Toussaint (33, Naples) was sentenced to 18 months’ imprisonment for conspiracy to commit mail fraud and conspiracy to launder money. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and received 5 years’ probation with 180 days of home detention.
A fifth individual, Nesly Loute, was convicted of conspiracy to commit mail fraud following a six-day jury trial. On February 27, 2017, he was sentenced to 14 years in federal prison.
This case was investigated by the Federal Bureau of Investigation; the State of Florida’s Department of Financial Services Division of Insurance Fraud; the Internal Revenue Service - Criminal Investigation; and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the National Insurance Crime Bureau; the Florida Highway Patrol; the Florida Department of Health; Florida’s Agency for Health Care Administration; the State Attorney’s Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. The cases were prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.
Multiple defendants plead guilty to federal methamphetamine crimesRead the Press Release
CHARLESTON, W.Va. – A man and a woman from Paramount, California, and a woman from South Charleston pleaded guilty today to federal drug crimes for their roles in a large-scale drug trafficking organization, announced United States Attorney Carol Casto. Gregory Crum, 42, and Diana Salazar Gamboa, 43, both entered guilty pleas conspiracy to distribute methamphetamine. Beth Hammonds, 52, entered her guilty plea to using the mail to facilitate a drug crime.
As part of a comprehensive investigation, agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations intercepted several packages that contained crystal methamphetamine, commonly referred to as “ice.” Since January 2014, several pounds of crystal methamphetamine were transported from California and Nevada into the Southern District of West Virginia via the United States mail or through individuals driving packages of drugs into the area. Crum and Gamboa admitted that they arranged for methamphetamine to be sent into the Southern District and accepted payment for the drugs. Hammonds admitted that she received methamphetamine and further distributed it to individuals around South Charleston. Hammonds also admitted that she mailed proceeds from the drug distributions to Joseph Cooper, another individual involved in the conspiracy.
Crum faces a minimum of 10 years and up to life in federal prison. Gamboa faces at least five and up to 40 years in federal prison. Hammonds faces up to five years in federal prison for her role in the conspiracy. All three are scheduled to be sentenced on August 3, 2017.
As a result of this comprehensive drug investigation, several defendants have been sentenced to federal prison. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb was sentenced to seven years in prison for conspiracy to distribute methamphetamine. Shayne Shamblen was also sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine.
Several other individuals involved in the drug trafficking organization have entered guilty pleas and are awaiting sentencing. Morgan Light and Harold Lee Parsons previously pleaded guilty to conspiracy to distribute methamphetamine and each faces up to 20 years in federal prison. Light is scheduled to be sentenced on June 8, 2017, and Parsons is scheduled to be sentenced on June 7, 2017. David Huffman pleaded guilty to conspiracy to distribute methamphetamine and faces at least five and up to 40 years in prison when he is sentenced on June 21, 2017. Jon Bowman previously pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in prison when he is sentenced on June 1, 2017.
Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These prosecutions are 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 illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mississippi sheriff’s office employee sentenced for using stolen identities to file fraudulent tax returnsRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Mississippi woman was sentenced Monday to 94 months in prison for being part of a scheme to file fraudulent income tax returns using stolen identities and causing the refunds to be mailed to post office boxes in Louisiana.
Shannon A. Brumfield, 50, of Byram, Miss., was sentenced to more than 7.5 years in prison by U.S. District Judge S. Maurice Hicks Jr. on two counts of mail fraud and two counts of aggravated identity theft. She was also sentenced to three years of supervised release and ordered to pay $386,141 restitution. According to the January 11, 2017 guilty plea, Brumfield used her position as a lieutenant at Hinds County Detention Center to access the Hinds County Jail Management System and steal names and Social Security numbers of inmates and other individuals. Brumfield and other members of the conspiracy not named in the indictment used the stolen identities to file fictitious IRS tax returns from May 2011 until December 2012. Based on the fraudulent returns, the IRS issued tax refunds and mailed them to U.S. Post Office boxes in Tallulah, La.
“Ms. Brumfield shamelessly abused her position as a law enforcement officer by stealing the identities of individuals listed in a sheriff’s office computer system,” Van Hook stated. “Despite her vow to serve and protect, she used her position to line her own pockets. The 94-month sentence imposed and the recovery of the ill-gotten gains should send a strong message that this sort of crime does not pay.”
“This sentencing is a stern reminder that participation in refund fraud schemes does not pay and those who do so will be held accountable,” Special Agent in Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie stated. “Ms. Brumfield participated in a scheme in which stolen identities were used to file over 300 false tax returns. Refunds totaling over $1 million were requested by the scheme participants for personal gain. Identity theft is an ongoing problem and IRS-CI will continue to vigorously investigate and prosecute those engaged in these illegal activities. Our agency will continue to work with the United States Attorney’s Office and other federal agencies to aggressively protect innocent taxpayers and preserve the integrity of our tax system. ”
The IRS – Criminal Investigation Division conducted the investigation. Supervisory Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Michigan man indicted on heroin and cocaine trafficking chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Detroit, Michigan man was indicted by a grand jury today on drug trafficking charges, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Wali “Black” Murphy, age 24, was indicted on four counts of “Distribution of Heroin,” one count of “Possession with the Intent to Distribute Cocaine Base,” and one count of “Possession with Intent to Distribute Heroin.”
The crimes are alleged to have occurred between September and December 2016 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican Subject to Deportation Following Conviction of Illegal Reentry After RemovalRead the Press Release
PITTSBURGH A citizen of Mexico who was found by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) pled guilty and has been sentenced in federal court to time served subject to deportation on his conviction of Illegal Reentry After Deportation, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jose Antonio Medina Melendez, 29, a citizen of Mexico.
According to information presented to the court, Melendez, an alien, who was removed from the United States by ERO on May 20, 2014, was taken into custody on March 12, 2017, by ERO.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
Acting United States Attorney Song commended ERO for the investigation leading to the successful prosecution of Melendez.
Mexican Man Sentenced to Three Years in Prison for Identity TheftRead the Press Release
A man from Mexico illegally residing in the United States who stole the identity of a United States citizen was sentenced May 1, 2017, to three years in federal prison.
Francisco Hernandez-Espinoza, age 24, residing in Hampton, Iowa, received the prison term after a December 29, 2016, guilty plea to one count of misuse of a social security number and one count of aggravated identity theft.
During the plea hearing, Hernandez-Espinoza admitted that, on June 4, 2012, he illegally used the name and Social Security account number of a United States citizen to obtain employment in Clarion, Iowa. On November 3, 2016, Hernandez-Espinoza was arrested by immigration agents in Hampton, Iowa. At that time, Hernandez-Espinoza turned over to agents identification documents, including a birth certificate, all in the name of the U.S. citizen whose identity he knowingly used. During the sentencing hearing, Hernandez-Espinoza admitted that, between 2011 and 2015, he was convicted eight times in Iowa and Minnesota of using the name of the U.S. citizen, including after being arrested for criminal sexual conduct and domestic abuse assault.
Hernandez-Espinoza was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Hernandez-Espinoza was sentenced to 36 months’ imprisonment and fined $5,000. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Espinoza is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 16-CR-2044-LRR.
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Mass. Women Pleads Guilty to Trafficking Heroin to RIRead the Press Release
PROVIDENCE – Olga Lidia Sandoval, 39, of Attleboro, MA., pleaded guilty in federal court in Providence on Monday to conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute one kilogram or more of heroin, announced Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to information presented to the court, in May 2016, Sandoval arranged for the transportation of nearly 6 ½ kilograms of heroin to be brought from Guatemala through Mexico to Rhode Island. Rhode Island State Police seized the heroin as the result of a traffic stop. The heroin was discovered hidden in the front differential and axle of a truck allegedly being towed by Ivan K. Alvarado, 38, of Spring Valley, NY.
According to information presented to the court, in November 2015, Rhode Island State Police and the High Intensity Drug Trafficking Area Task Force began investigating the drug trafficking activities of a co-conspirator in this matter, Jose Luis Amparo Nova, 33, of North Providence, RI. In January 2016, HSI began investigating Olga Sandoval’s drug trafficking activities, which included arranging the importation and distribution of heroin in Rhode Island and Massachusetts. The investigations, independent of one another, included electronic surveillance which captured conversations between Sandoval and Nova. Frequent conversations captured by HSI between Sandoval and others included discussion of efforts to send substantial sums of narcotics-derived proceeds to her Guatemalan sources of supply.
Beginning on May 13, 2016, law enforcement monitored discussions of a shipment of narcotics coming from Mexico to Rhode Island and Massachusetts. Conversations over the next several days included identifying a location to deliver the drugs that would avoid law enforcement detection, as well as payment for the drugs. On May 19, law enforcement monitored conversations that indicated that the truck transporting the drugs to New England had been damaged in a rollover accident.
On May 22, 2016, Rhode Island State Police stopped the driver of a U-Haul truck towing a truck that had suffered significant body damage. The trooper affected a traffic stop after witnessing the vehicle weaving in and out of marked lanes. The vehicles were towed to Rhode Island State Police headquarters where a court authorized search of the vehicles result in the discovery of 6.487 kilograms of heroin stashed in the truck being towed. As the traffic stop was occurring, law enforcement intercepted a call placed by Olga Sandoval indicating that she received a call informing her that Alvarado had been stopped by law enforcement.
Ivan Alvarado was arrested on May 22, 2016, and Olga Sandoval and Jose Nova were arrested on May 24, 2016, on federal criminal complaints charging them with conspiracy to possess with the intent to distribute one kilogram or more of heroin. U.S. District Court Magistrate Judge Patricia A. Sullivan ordered the defendants detained in federal custody.
Sandoval and Nova were indicted by a federal grand jury on June 16, 2016, on charges of conspiracy to possess with the intent to distribute one kilogram or more of heroin and possession with the intent to distribute one kilogram or more of heroin. Both pleaded guilty as charged in the indictment. Nova pleaded guilty on January 26, 2017, before U.S. District Court Chief Judge William E. Smith. He is scheduled to be sentenced on July 14, 2017. A sentencing date for Sandoval has not yet been scheduled by the court.
The cases are being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Acting United States Attorney Stephen G. Dambruch acknowledges and thanks the Rhode Island Department of the Attorney General and the DEA for their assistance in this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Maryland Man Charged with Impersonating FBI AgentRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that a federal grand jury in Wilmington charged Eric Kappesser, age 27, of Stevensville, Maryland, with two counts of impersonating a federal agent and one count of the unauthorized possession of a badge or insignia of a federal agency. The defendant faces up to 3 years in prison on each of the impersonation charges and up to 6 months in prison on the unauthorized possession charge.
The Indictment alleges that, between April and October 2016, the defendant represented himself to others as an agent with the Federal Bureau of Investigation. In addition, defendant Kappesser specifically requested and obtained a law enforcement discount when purchasing certain firearms accessories in September 2016. In or around October 2016, defendant also wore a replica of an FBI badge around his neck.
Acting U.S. Attorney Weiss noted, “Individuals who impersonate law enforcement officers violate the public trust and pose a risk to public safety. Such conduct disrespects the law enforcement officers who place themselves at risk every day to keep our communities safe. ”
This case is the result of an investigation conducted by the Federal Bureau of Investigation and Bureau of Alcohol Tobacco and Firearms. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Marion Pair Pleads Guilty to Methamphetamine ChargesRead the Press Release
Roanoke, VIRGINIA – A pair of Marion residents pled guilty this week in the United States District Court for the Western District of Virginia in Roanoke to federal conspiracy charges, Acting United States Attorney Rick A. Mountcastle announced.
Charles J. Wojciechowicz, 33, of Marion, pled guilty yesterday to one count of conspiracy to distribute a measurable quantity of a mixture containing methamphetamine. In a separate hearing today in U.S. District Court in Roanoke, Danny Douglas Meadows, 41, of Marion, also pled guilty to one count of conspiracy to distribute a measurable quantity of a mixture of methamphetamine. At sentencing, the defendants face up to 20 years in federal prison.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Smyth County Sheriff’s Office and the Claytor Lake Drug Task Force. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Charged with Passport FraudRead the Press Release
Defendant Leuk Kwan Chau, 21, of East Hampton, NY, was charged yesterday by Indictment with mail fraud, passport fraud, and aiding and abetting announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, beginning in or about November 2016, the defendant engaged in a scheme to defraud the Educational Testing Service (ETS) by having an imposter take a standardized entrance exam, the Test of English as a Foreign Language (TOEFL), on his behalf. As part of the scheme, a counterfeit Chinese passport made and sent to the United States was intended to be used by the imposter to defraud ETS administrators into believing that the defendant had actually taken the standardized test. The defendant then received the benefit of the imposter’s test score for use at American colleges and universities.
If convicted, the defendant faces a maximum possible sentence of 30 years’ imprisonment, three years’ supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the U.S. Department of State, and the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari. ETS cooperated fully in the investigation.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Limestone Couple Sentenced for Federal Tax EvasionRead the Press Release
GREENEVILLE, Tenn. –On May 1, 2017, David Lee Byrd, 58, and his wife, Paula Ruth Hall Byrd, 58, both of Limestone, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge. David Byrd was ordered to serve 10 months in federal prison followed by three years of supervised release. Paula Byrd was ordered to serve four years on probation. Both were ordered to pay restitution of $134,359 to the Internal Revenue Service (IRS), fines of $5,000 each, and $100 special assessments.
Both David and Paula Byrd pleaded guilty in December 2016 to an information charging them with income tax evasion for the year 2008. Information on file with the U.S. District Court shows that David and Paula Byrd were self-employed computer software consultants who worked in the airline industry, creating and updating computer programs. During 2006 through 2008, they lived in Frankfurt, Germany, and contracted with Practical Business Services LTD, a British entity, to provide services to Lufthansa Airlines. Paula Byrd directed Practical Business Services to send her compensation, totaling $428,185, to bank accounts in Switzerland titled in the name of David Byrd. David Byrd directed Practical Business Services to send his compensation, totaling $508,313, to an American bank account titled in the name of David Byrd. They completely omitted Paula Byrd’s income and failed to disclose David Byrd’s ownership of foreign bank accounts on their 2006, 2007, and 2008 federal income tax returns. The Byrds’ evasion was revealed as a result of treaties negotiated by the United States with Switzerland, which had previously declined to provide information to American law enforcement authorities.
U.S. Attorney Nancy Stallard Harr and IRS Special Agent in Charge Tracey D. Montano noted the importance of the treaties with Switzerland and other countries regarding the use of foreign bank accounts to thwart federal income tax collection and pledged to use all lawful means to identify and prosecute those who evade taxes by concealing income in offshore bank accounts.
This investigation was conducted by IRS – Criminal Investigation. Assistant U.S. Attorney Helen Smith represented the United States.
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Lee's Summit Woman Sentenced for $1.5 Million Embezzlement Schemes, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman was sentenced in federal court today for a series of embezzlement schemes totaling more than $1.5 million.
Patricia Webb, 44, of Lee’s Summit, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court also ordered Webb to pay $1,564,745 in restitution to her victims.
On Nov. 22, 2016, Webb pleaded guilty to three counts of wire fraud and one count of aggravated identity theft. Webb has been in federal custody since her bond was revoked by the court for unrelated fraudulent conduct. While on pretrial release in this case, the government received information that Webb had submitted fraudulent documents to potential employers. She informed an employment agency that she was not the person in the news related to this case, and that someone had stolen her identity. Webb also submitted an altered version of the criminal complaint filed in this case to the employment agency. Based upon this information, the court revoked her bond and she was remanded to custody.
Webb admitted that she embezzled at least $1,526,594 in total from Garmin International, Black and Veatch and TriStar Benefit Administrators over the course of four years, 2012 through 2016. Webb registered a business in the name of “Beauty Within Me” and opened a bank account in the name of the business. She then utilized this bank account to divert money stolen from her victims.
Garmin Embezzlement Scheme
Webb admitted that she embezzled $1,255,175 million from Garmin while employed as a senior payroll specialist.
Webb caused Garmin to send 16 unauthorized Automated Clearing House payments (fund transfers, such as direct deposits and business-to-business payments) to her Beauty Within Me bank account from Feb. 24, 2012, to May 30, 2014. The payments were sent on behalf of then-current employees who were utilizing Garmin’s relocation program. Webb caused Garmin funds to be recorded to the in-transit employee’s W-2, under the code “P,” which was inflated to mask Webb’s embezzlement. After the clearing of the ACH payments, Webb would alter Garmin’s general ledger to reflect the fraudulent payments as “Relocation Expenses.”
Black and Veatch Embezzlement Scheme
Webb admitted that she embezzled $302,183 from Black and Veatch while employed as a global payroll manager. Webb was employed by Black and Veatch from January 2015 until March 4, 2016 and earned $90,000 per year. Webb facilitated unauthorized wire transfers and ACH transactions from the company’s payroll account to her Beauty Within Me business bank account.
An analysis of Webb’s bank account shows a large amount of spending at casinos and cash withdrawals at casinos.
TriStar Embezzlement Scheme
Webb admitted that she stole the identity of another employee while she was working at Garmin in order to embezzle $7,385 from TriStar Benefit Administrators, the company which managed Garmin’s healthcare savings accounts.
Webb used the personal identifiable information of another Garmin employee to create a flexible spending account without his knowledge or consent. Webb submitted a request for reimbursement to TriStar in the name of this employee on July 18, 2011. The request was for hospital treatment in the amount of $7,385 and the payment from TriStar was sent to Webb’s bank account.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Laredoans Get Massive Sentences for Conspiracy to Kidnap Illegal AliensRead the Press Release
LAREDO, Texas – Three men have been ordered to prison following their convictions of conspiracy to kidnap illegal aliens, announced Acting U.S. Attorney Abe Martinez. Angel Alexis Diaz, 20, Jose Israel Diaz, 42, and Julio Osorio, 42, all of Laredo, pleaded guilty Sept. 8, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Jose Diaz to serve a total of 360 months in federal prison, while Alexis Diaz and Osorio received respective sentences of 262 months and 292 months. The sentences will be immediately followed by five years of supervised release.
Eight Mexican Nationals had arranged to be smuggled into the U.S. They claimed that after entering the country, they were transported to a residence in Laredo where they stayed for approximately two weeks. They were then transported to a second location where the three defendants then held them against their will, assaulted and extorted them for additional smuggling fees. They were also forced to undress and were beaten, held hostage and forced to contact family members to pay a ransom.
All three defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher dos Santos is prosecuting the case.
Kincheloe Man Sentenced for Second Habitual Domestic Violence OffenseRead the Press Release
MARQUETTE, MICHIGAN — Nicholas James Sayles, 34, of Kincheloe, Michigan was sentenced to 30 months in federal prison for domestic violence by an habitual offender, Acting U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Paul L. Maloney ordered Sayles to serve two years of supervised release following his prison term, and to pay a $100 special assessment.
On November 30, 2016, Sayles pleaded guilty to a federal indictment charging him with domestic violence by an habitual offender. Sayles lived with the victim at a residence located on Sault Ste. Marie Tribal land. On March 7, 2016, Sayles assaulted the victim, striking her face with his head, breaking one of her teeth. Sayles was previously convicted of domestic violence by an habitual offender in federal court in 2011, and has two prior state convictions for domestic violence offenses.
The Sault Ste. Marie Tribal Police, Kinross Police, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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KC Man Indicted for Meth, Firearm Following Collisions with Three VehiclesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm and methamphetamine, which were found after he caused a series of collisions with other vehicles.
Michael Allrutz, 40, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint that was filed against Allrutz on April 13, 2017, and includes an additional charge.
The federal indictment charges Allrutz with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm.
According to an affidavit filed in support of the original criminal complaint, Allrutz was involved in a series of traffic accidents on April 12, 2017. Allrutz, the driver and sole occupant of a black Jaguar, was northbound on Benton Boulevard when he crossed into the on-coming lane of traffic and struck the back driver’s side of a white 2016 Ford pick-up truck. Allrutz continued northbound on Benton Boulevard, according to witnesses, and became involved in a second vehicular accident with a white 2015 Ford Transit van at the entrance to I-70 westbound. Allrutz allegedly left the scene of the second vehicular accident as well and turned westbound on the on-ramp to I-70 westbound. Allrutz left the road, crossed over all three westbound lanes of traffic on I-70, and became involved in a third vehicular accident with a white 2015 Dodge Ram pick-up. After coming to a stop, witnesses told police officers, Allrutz climbed from the Jaguar carrying a gallon-sized plastic bag in his hand but was unable to leave the scene due to his injuries.
Allrutz was transported to an area hospital for treatment. The vehicle sustained heavy front-end damage.
The plastic bag Allrutz had been carrying contained approximately 709 grams of methamphetamine, according to the affidavit. Police officers also found a loaded Beretta 9mm semi-automatic pistol beneath the gas pedal of the vehicle. Officers found $4,739 in a black sweatshirt on the passenger side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Allrutz has a prior felony conviction for possession of a controlled substance.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the Kansas City, Mo., Police Department.
Jasper County Man Sentenced for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 34-year-old Kirbyville, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Stefone Dwayne Palomo pleaded guilty on Oct. 17, 2016, to conspiracy to distribute and possess methamphetamine and was sentenced to 180 months in federal prison today by U.S. District Judge Marcia A. Crone. The leader of the conspiracy, McGee Lamar Falcon, previously pleaded guilty and was sentenced to 204 months in federal prison by Judge Crone on March 31, 2017. Palomo is the last remaining defendant in the case to be sentenced.
According to information presented in court, beginning in 2009, Falcon and his co-conspirators operated a drug trafficking organization which acquired large multi-kilogram quantities of methamphetamine and crack cocaine from suppliers in Mexico for distribution to customers in the United States, including the Eastern District of Texas and Western District of Louisiana. Palomo and nine others were indicted by a federal grand jury on Sep. 2, 2015.
Law enforcement agencies became aware of the organization’s activities in September 2013. From that time forward, the investigation led to controlled purchases from members of the organization and the seizure of money, drugs, and firearms. Falcon and his distributors typically arranged customer meetings in rural locations around Kirbyville and Bon Weir, Texas.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, Beaumont Police Department, Jefferson County Sheriff’s Office, Jasper County Sheriff’s Office, Jasper Police Department, and Newton County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys John B. Ross, Michelle Englade and John Craft.
Independence Man Pleads Guilty to Conspiracy to Lure Robbery Victims with Online Ads for EscortsRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today for his role in a conspiracy to use online escort ads to lure robbery victims.
Sage E. Harrison, 35, of Independence, pleaded guilty before U.S. Chief District Judge Greg Kays to the robbery conspiracy and to two counts of aiding and abetting robbery.
By pleading guilty today, Harrison admitted that he participated in the conspiracy to commit robbery from April 1, 2015, to June 7, 2016. Conspirators used several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims and arrange meetings at local hotels, residences and apartments. When customers arrived for the meetings, conspirators would be lying in wait, armed with firearms and weapons that appeared to be firearms, and rob the customers.
Harrison also admitted that he aided and abetted in the commission of two specific robberies in Independence, Mo., on Oct. 24, 2015.
Conspirators contacted a victim through an ad on craigslist and arranged to meet at a location in Independence. Harrison and another co-conspirator were waiting and, when the victim arrived, pointed what appeared to be firearms and robbed him of his wallet and cell phone. Harrison forced the victim to his vehicle and searched it for further items and stole cash.
Conspirators contacted a second victim through another craigslist ad and arranged to meet at an apartment in Independence the same day. Harrison and another co-conspirator were waiting and robbed the victim when he arrived, taking his wallet and cash.
Harrison, who had an outstanding warrant, was arrested by Independence police officers the next day and found to be in possession of the second victim’s wallet and cell phone. Agents recovered a laptop computer from the location of the robbery and discovered that Harrison’s Facebook account had been accessed from the laptop, along with the craigslist website, on the date of the robberies. Investigators found a photo of Harrison posing with what appears to be a firearm, wearing a black ball cap described by one of the robbery victims.
Records obtained from Facebook revealed multiple communications between conspirators about the robberies, including conversations about the two robberies to which Harrison pleaded guilty. An example message from Harrison’s account stated, “remember I told you about my escort friend and dropping they pockets.” The term “dropping pockets” was used by several conspirators and is known to be a reference to conducting a robbery.
On Oct. 25, 2015, just prior to his arrest, another co-conspirator messaged Harrison and said, “Hey where u at”. Harrison replied, “At my safe spot.”
Records obtained from Google revealed dozens of e-mail confirmation notices from Kansas City area hotels, along with numerous e-mail notifications from craigslist.org and backpage.com of men responding to ads.
Records obtained from Backpage, related to phone numbers and e-mail addresses used in the robberies, revealed eight related accounts. Each account was associated with a specific e-mail address that served as the account username. According to Backpage.com records, posts were placed in the sections “Body Rubs,” “Escorts,” and “Domination & Fetish” sections, using several different names. The records identified 31 different phone numbers which were posted in the associated ads, and that 126 separate posts were made.
Records obtained from Craigslist related to phone numbers and email addresses used in the robberies revealed 11 related accounts. Those 11 accounts had been used to post 89 ads between Sept. 28, 2015 and Jan. 7, 2016. According to Craigslist records, posts were predominantly placed in the “Casual Encounters” section using approximately 27 different names.
Under federal statutes, Harrison is subject to a sentence of up to 20 years in federal prison without parole on each count. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, and the Independence, Mo., Police Department, with assistance from the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department and the Blue Springs, Mo., Police Department.
Illinois Woman Sentenced to Prison for Filing Tax Returns Using Stolen IDsRead the Press Release
A former resident of Poplar Grove, Illinois was sentenced today to 87 months in prison for filing tax returns using stolen identities, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2012 through 2014, Shameka Carr, 30, used stolen IDs to file tax returns seeking fraudulent tax refunds with the Internal Revenue Service (IRS). Carr directed the IRS to send the refunds in the form of prepaid debit cards and refund checks mailed to addresses that she controlled in Rockford, Illinios and its surrounding areas. Carr admitted to an intended tax loss of $1,026,284.
In addition to the term of prison imposed, Carr was also ordered to serve three years of supervised release and to pay $365,764 in restitution to the IRS. Carr pleaded guilty on January 24 to mail fraud and aggravated identity theft.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation and the U.S. Postal Inspection Service, and the Boone County Sheriff’s Department, who conducted the investigation, and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.