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Friday 17 March 2017
Vestal Man Pleads Guilty to Distributing and Receiving Child PornographyRead the Press Release
BINGHAMTON, NEW YORK - Nathan E. Boguhn, 50, of Vestal, New York, pled guilty yesterday to three (3) counts of distributing and receiving child pornography via the internet and using a file sharing program, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Vadim Thomas, Albany Division of the Federal Bureau of Investigation (FBI). During his guilty plea before Senior Judge Thomas J. McAvoy, Boguhn admitted that in 2016 he downloaded child pornography from the internet and allowed others access to this material through a file sharing program he maintained.
At sentencing on July 18, 2017 Boguhn faces minimum sentence of five (5) years and up to twenty (20) years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Boguhn remains in the custody of the U.S. Marshal’s Service pending sentencing.
This case is being investigated by the Mid-State Child Exploitation Task Force, which includes the FBI and the New York State Police, with assistance provided by the Town of Vestal (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Two Sentenced for Burglary of Macon Bass Pro ShopsRead the Press Release
Two of four defendants, all of whom have previously pled guilty to conspiracy to commit theft from a federal firearms licensee stemming from the September 29, 2013, burglary of the Macon Bass Pro Shops, were sentenced this week in Macon by the Honorable Marc T. Treadwell, District Court Judge, announced United States Attorney G. F. “Pete” Peterman, III.
On Tuesday, March 14, 2017, Dante Thomas, age 32, of Atlanta, Georgia, was sentenced to five years in prison, to run consecutively to an unrelated state sentence. On Friday, March 17, 2017, Tabari Walters, age 24, of East Point, Georgia, was sentenced to 33 months imprisonment. They were also ordered to pay $14,619.83 in restitution to Bass Pro Shops, being jointly and severally liable for this amount. There is no parole in the federal system.
Through their pleas the men admitted that, after discussing the idea of stealing firearms, they drove from the Atlanta area to the Bass Pro Shops in Macon, Georgia, and parked along the side of Interstate 75 northbound, next to the store. All four men then ran up the hill and approached the store on foot near where boats are displayed. Shortly before midnight Mr. Thomas broke and cleared the glass from the window of an emergency door using a yellow crowbar to gain access. All four men ran to the firearms section, where they stole 17 firearms. They then returned to the Atlanta area.
Agents later obtained a search warrant for Mr. Thomas’ residence, where they found a yellow crowbar that matched the one used to break into the Bass Pro Shops. Agents also obtained records from Mr. Thomas’ cell phone which revealed that the device had been used in the vicinity of cell phone towers in the area of the Bass Pro Shops around the time of the burglary.
Sentencing for remaining co-defendants, Kenneth Atwater, 35, of McDonough, Georgia, and Jabari Walters, 24, of East Point, Georgia, is currently set for April 12, 2017.
“With the increase in violent crime and gun related violence that our communities are experiencing, including the recent murders of five law enforcement officers by gunfire in this area in recent months, the United States Attorney’s Office, consistent with the mandate of Attorney General Sessions, will vigorously prosecute all defendants who illegally obtain or possess firearms. These defendants, and those to whom they would have sold or given these weapons, certainly fall into that category,” said United States Attorney Peterman.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Beth Howard is handling the prosecution for the Government.
Questions concerning this case should be directed to Brittney Kish Lightsey, United States Attorney’s Office, at (478) 752-3511.
Tampa Resident Sentenced to More Than Three Years in Prison for Punching A Federal OfficialRead the Press Release
Tampa, FL – U.S. District Judge Virginia Covington yesterday sentenced Quentin Cephus (30, Tampa) to three years and five months in federal prison for forcibly assaulting and inflicting bodily injury on a federal official, while that employee was carrying out his official duties. Cephus pleaded guilty on December 19, 2016.
According to court documents, on February 9, 2016, Cephus approached a U.S. Bureau of Prisons official who was conducting an audit at the Hillsborough County Residential Re-entry Center. Cephus, who was a resident at the center, punched the official in the face with a closed fist and inflicted bodily injury on him. Moments later, he spat in the official’s face.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Mandy Riedel.
Springfield Man Sentenced for Firearm ChargeRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for unlawfully possessing a firearm.
Mark Alexander, 26, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 18 months in prison and three years of supervised release. In December 2016, Alexander pleaded guilty to one count of possession of a firearm and ammunition by a felon.
On Sept. 2, 2015, Alexander possessed a .22 caliber pistol. As a result of a prior felony offense, Alexander was prohibited from possessing a firearm and ammunition. Alexander and his co-defendant, Hector Nieves, worked together to sell the pistol and ammunition to a cooperating witness.
In July 2016, Nieves was sentenced to five years in prison for the same charge.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. The case was investigated by the FBI’s Western Massachusetts Gang Task Force and the ATF. Assistant U.S. Attorney Alex J. Grant of Weinreb’s Springfield Branch Office prosecuted the case.
South Florida Resident Pleads Guilty to Committing Armed Robbery of Jewelry Store in Downtown MiamiRead the Press Release
A South Florida resident pled guilty in federal court yesterday for committing an armed robbery of a jewelry store in the Seybold Building in downtown Miami.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; George L. Piro, Special Agent in Charge (FBI), Miami Field Division; and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Jessie Wooden, 29, of Miami, pled guilty to conspiring to commit an armed robbery, armed robbery, and possession of a firearm in furtherance of a crime of violence. Wooden faces a maximum statutory sentence of life in prison. He is scheduled to be sentenced before U.S. District Court Donald L. Graham on May 25, 2017.
According to the court record, including the agreed upon factual proffer, on October 29, 2016, Wooden and his co-conspirator robbed a jewelry store located in the Seybold Building in downtown Miami. Once inside the jewelry store, Wooden brandished a firearm while the co-conspirator bound the victim’s hands and feet. The defendant and his co-conspirator stole approximately 35 watches and over $250,000 in U.S. currency.
On January 11, 2017, law enforcement officers attempted to conduct a traffic stop on the vehicle Wooden was driving. Wooden refused to stop and sideswiped an officer’s vehicle in an attempt to evade capture. Ultimately, Wooden crashed his vehicle and was taken into custody. A search of the vehicle revealed a loaded firearm. An additional search of Wooden’s residence revealed over 100 rounds of ammunition.
Mr. Greenberg commends the FBI and MPD for their collaborative work as part of the South Florida Violent Crime Task Force. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Boston Woman Indicted for Identity TheftRead the Press Release
BOSTON - A South Boston woman was arrested today for using false Social Security numbers on a job application and an apartment rental application after she completed a prison sentence in a previous fraud case.
Dana Whidbee, a/k/a Dana De Alasei, 53, was charged with two counts of falsely representing a Social Security number. She is scheduled to appear before U.S. District Court Magistrate Judge Donald L. Cabell at 3:00 p.m.
According to court documents, in 2006, Whidbee was sentenced to two years in prison after pleading guilty to wire fraud charges. Whidbee had posed as an agent for non-existent homebuyers and fraudulently obtained funds from various not-for-profit companies that were in the business of providing down-payment money to eligible buyers.
According to the indictment that was unsealed today, after her release from prison, Whidbee applied for a job on Sept. 16, 2013, using a false Social Security number. On May 17, 2014, she applied for an apartment using a false Social Security number.
The charge of falsely representing a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Rock Island Man Sentenced to 130 Months in Prison for Drug Distribution OffensesRead the Press Release
DAVENPORT, IA - On March 16, 2017, Dajuan Parnell, 22, of Rock Island, Illinois, was sentenced by Chief United States District Court Judge John A. Jarvey to 130 months in prison for possession of crack cocaine with intent to distribute and possession of cocaine with intent to distribute, announced United States Attorney Kevin E. VanderSchel. Parnell was ordered to serve four years of supervised release following his prison term and to pay $200 to the Crime Victims’ Fund.
On October 17, 2016, Parnell pleaded guilty to the drug distribution charges and admitted on June 12, 2016, he was in possession of both crack cocaine and cocaine with the intent to distribute each controlled substance. The charges were the result of an investigation that began when a marked Iowa State Patrol (ISP) vehicle pulled behind Parnell’s vehicle at a red light in downtown Davenport at approximately 3:20 a.m. Parnell immediately ran the red light and eluded the ISP vehicle. Following a pursuit, which lasted approximately eight miles and involved speeds of approximately 90 miles per hour, Parnell’s vehicle became disabled and Parnell and two passengers fled the vehicle on foot. Parnell dropped a quantity of crack cocaine on the ground as he ran. In the vehicle, law enforcement recovered additional an additional quantity of crack cocaine, a quantity of cocaine, and a loaded, .40 caliber handgun. In total, law enforcement recovered 67.44 grams of crack cocaine and 10.51 grams of cocaine.
This matter was investigated by the Iowa State Patrol, with assistance from the Davenport Police Department and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by either calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Quebec Woman Sentenced for Transporting Illegal AliensRead the Press Release
SYRACUSE, NEW YORK –Audrey Bush, 46, of Akwesasne, Quebec, was sentenced yesterday to serve ten (10) months imprisonment, to be followed by three (3) years of supervised release in connection with her plea of guilty to two counts of Transporting Illegal Aliens, announced United States Attorney Richard S. Hartunian and United States Border Patrol Agent in Charge (Ogdensburg) Timothy Morgan. The defendant’s sentence included forfeiture of $1000, the fee she received for driving the aliens to Syracuse, New York.
As part of her guilty plea on November 9, 2016, Bush admitted to knowingly transporting two (2) Chinese citizens within the United States. Bush admitted that she picked up the two aliens at the Akwesasne Reservation and began to drive them to Syracuse, New York. Law enforcement officers stopped her vehicle in Hammond, New York, at which time the aliens were identified and determined to be in the United States illegally after crossing the St. Lawrence River from Canada without inspection by U.S. Immigration officers.
The case was investigated by the United States Border Patrol (Ogdensburg, NY Station) and prosecuted by Assistant U.S. Attorney Tamara Thomson.
Portland Man Convicted of Drug ChargeRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Mustafa Hassan, 34, of Portland, Maine was convicted yesterday following a jury trial in U.S. District Court of conspiracy to distribute and possess with intent to distribute cocaine and 28 grams or more of cocaine base, commonly known as crack.
Court records and trial evidence revealed that between January 2016 and March 2016, Hassan, Nelson Calderon, and others trafficked in cocaine and crack in southern Maine. The two men were arrested on March 6, 2016, as law enforcement interrupted a pending drug transaction. A subsequent search warrant at Calderon’s residence revealed about 160 grams of crack and about 460 grams of cocaine.
Hassan faces between five and forty years in prison and a fine of up to $5,000,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. On November 21, 2016, Calderon entered a guilty plea to the drug conspiracy charge. He awaits sentencing.
The investigation was conducted by the Federal Bureau of Investigation (“FBI”) and the U.S Drug Enforcement Administration (“DEA”) in conjunction with the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the DEA; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.
North Hills Man Sentenced to 18 Years in Prison for Producing Sexual Images of MinorsRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 216 months imprisonment, followed by a lifetime of supervised release, on his conviction of production material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Travis Glies, 38, of Allison Park, Pennsylvania.
According to information presented to the court, the court was advised that from January of 2016 to February of 2016, Glies produced visual depictions of the sexual exploitation of a minor.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the Allegheny County Police Department for conducting the investigation leading to the successful prosecution of Glies.
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.justice.gov/psc.
Newton Man Sentenced to Prison for Extortion and GamblingRead the Press Release
BOSTON – A Newton man was sentenced today in U.S. District Court in Boston to seven years in prison for extortion and conducting an illegal gambling business.
Joseph Yerardi, 62, of Newton, was sentenced by U.S. District Court Judge Denise J. Casper to seven years in prison and three years of supervised release. Judge Casper also issued an order forfeiting over $68,000 in cash recovered in searches or from bank accounts in Yerardi’s name, as well as 30 fake luxury watches also recovered in searches, and a forfeiture money judgment order against Yerardi for $300,000.
In December 2016, Yerardi pleaded guilty to conducting an illegal gambling business, conspiring to make and making extortionate extensions of credit, and conspiring to collect and collecting extensions of credit by extortionate means.
Yerardi was the head of a large bookmaking business that made hundreds of thousands of dollars and used threats or other extortionate means to collect debts. Among other things, a debtor reported that Yerardi threatened to stab the debtor “twenty times” for not paying a gambling debt.
In 2009, Yerardi was convicted in federal court in Boston of racketeering, conducting an illegal gambling business, money laundering, and collection of credit by extortionate means, and sentenced to 100 months in prison. In 1995, Yerardi was convicted in federal court in Boston of racketeering, extortionate extensions of credit, collection of credit by extortionate means, money laundering, conducting an illegal gambling business and witness intimidation, and sentenced to 135 months in prison.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Internal Revenue Service’s Criminal Investigations in Boston, the Massachusetts Department of Correction, and the Boston, Cambridge, Medford, and Quincy Police Departments assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Navajo Man from Churchrock Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Patrick Begay, 43, an enrolled member of the Navajo Nation who resides in Churchrock, N.M., pled guilty today in federal court in Albuquerque, N.M., to an abusive sexual contact charge. The plea agreement recommends that Begay be sentenced within the range of 144 to 216 months in federal prison followed by a term of supervised release to be determined by the court. Begay will also be required to register as a sex offender.
Begay was arrested in Nov. 2016, on a four-count indictment charging him with sexually abusing a child under the age of 12 from Nov. 2013 through Dec. 2015, and engaging in sexual contact with a child under the age of 12 on Jan. 6, 2016. According to the indictment, Begay committed the offenses on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Begay pled guilty to Count 4 of the indictment charging him with abusive sexual contact with a child. In entering the guilty plea, Begay admitted that on Jan. 6, 2016, he engaged in sexual contact with the victim, who was then nine years old. Begay further admitted that he repeatedly sexually abused the victim from the time she was seven years old.
Begay remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
Nahant Man Arrested on Extortion ChargeRead the Press Release
BOSTON – A Nahant man was arrested today and charged with extortion in connection with arranging and paying for a local business owner to be assaulted.
Gary P. DeCicco, 58, was charged by complaint with attempted extortion. DeCicco was detained following an initial appearance in U.S. District Court in Boston this afternoon.
According to the criminal complaint, in approximately 2004 or 2005, DeCicco sold land to the victim for $750,000. Shortly after construction began on the land in 2013, DeCicco asked the victim to be a partner in the car dealership the victim was building. When the victim refused to give DeCicco an interest in his business, DeCicco paid other individuals to arrange to threaten and assault the victim. On Jan. 11, 2015, the victim was assaulted at his business – an incident that was captured on video surveillance – and suffered several injuries, including a broken jaw.
The charging statute provides a sentence of no greater than 20 years in prison, three years 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Weinreb’s Public Corruption Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mooresburg, Tennessee Resident Sentenced to Twenty Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Mar.16, 2017, Steven Dwight Hopkins, aka “Rabbit”, 46, of Mooresburg, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison for his role in a conspiracy to distribute methamphetamine (meth) in the Eastern District of Tennessee.
According to his plea agreement on file with U.S. District Court, Hopkins admitted that he was responsible for at least 1.5 kilograms but less than 4.5 kilograms of actual meth. He admitted to cooking meth since 2000. In August 2014, Hopkins was arrested following a traffic stop in Whitley County, Ga., on his way to obtain a quarter pound of meth. Hopkins was a member of the Chicken Head Mafia, along with a number of the other individuals charged in this conspiracy. He and other members of the Chicken Head Mafia looked out and protected each other during the meth trafficking conspiracy. Hopkins also belonged to the Copperhead Motorcycle Club. At times, Hopkins admitted that he obtained eight to 10 ounces of meth per week from co-defendant Rick Munsey, 48, of Del Rio, Tenn. Hopkins sold meth to a large customer base in and around Hamblen County, Tenn.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Hamblen County Sheriff’s Office, Morristown Police Department and Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was 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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Middleburgh Felon Sentenced to 27 Months for Possessing Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Aaron M. Bowman, age 33, of Middleburgh, New York, was sentenced today to 27 months in prison after pleading guilty to unlawfully possessing a firearm that he advertised for sale on Facebook.
The announcement was made by U.S. Attorney Richard S. Hartunian; Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and New York State Police Superintendent George P. Beach II.
As part of his plea on November 3, 2016, Bowman admitted that on March 11, 2016, he possessed a Smith & Wesson model 432PD .32 caliber revolver, and ammunition for 3 types of firearms. Six months earlier, Bowman had posted photos of the same revolver to his Facebook page and offered to sell it. As a felon Bowman was prohibited from possessing the revolver and ammunition; this is his sixth felony conviction.
U.S. District Judge Mae A. D’Agostino also ordered Bowman to serve 3 years of supervised release, to begin after his release from prison.
This case was investigated by the ATF and New York State Police, with the assistance of the Schoharie County District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Melrose Man Sentenced to 60 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Jeremy Lillie, age 32, of Melrose, New York, was sentenced today to 60 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Vadim Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
Senior U.S. District Judge Gary L. Sharpe imposed the sentence, which followed Lillie’s September 6, 2016 guilty plea to distributing, receiving, and possessing child pornography.
United States Attorney Richard S. Hartunian stated: “We will continue to work with the FBI and our other law enforcement partners to protect children from online exploitation and abuse.”
FBI Special Agent in Charge Vadim Thomas stated: “The FBI together with our law enforcement partners and prosecutors are dedicated to protecting the children of our community.”
Judge Sharpe also imposed a lifetime term of supervised release to start after Lillie is released from prison, and ordered the immediate payment of $15,000 in restitution. The restitution order of $15,000 is the total amount requested by the two child pornography victims who were identified and submitted requests for restitution. Lillie possessed images of many other children who either have not yet been identified or who did not seek restitution in this case. As a result of his conviction, Lillie will be required to register as a sex offender after leaving prison.
This case was investigated by the FBI and the Colonie Police Department, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Maryland Man Arrested for CyberstalkingRead the Press Release
A Maryland man was arrested today on a federal criminal complaint charging him with cyberstalking a Dallas, Texas resident, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney John Parker of the Northern District of Texas.
John Rayne Rivello, 29, of Salisbury, Maryland, was arrested in Maryland today on a criminal complaint filed in the Northern District of Texas. The complaint was unsealed today following his initial appearance in the District of Maryland.
According to the allegations in the affidavit filed with the complaint, on Dec. 15, 2016, the victim, who is known to suffer from epilepsy, received a message via Twitter from Rivello. The tweet contained an animated strobe image embedded with the statement, “You deserve a seizure for your post.” Upon viewing the flashing strobe image the victim immediately suffered a seizure.
Additionally, according to the affidavit, evidence received pursuant to a search warrant showed Rivello’s Twitter account contained direct messages from Rivello’s account to other Twitter users concerning the victim. Among those direct messages included statements by Rivello, including “I hope this sends him into a seizure,” “Spammed this at [victim] let’s see if he dies,” and “I know he has epilepsy.” Additional evidence received pursuant to a search warrant showed Rivello’s iCloud account contained a screenshot of a Wikipedia page for the victim, which had been altered to show a fake obituary with the date of death listed as Dec. 16, 2016. Rivello’s iCloud account also contained screen shots from epilepsy.com with a list of commonly reported epilepsy seizure triggers and from dallasobserver.com discussing the victim’s report to the Dallas Police Department and his attempt to identify the Twitter user.
The charges contained in a criminal complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The FBI and the Dallas Police Department investigated the case. The Maryland State Police and Ocean City Police Department assisted during the arrest. Assistant U.S. Attorney C.S. Heath of the Northern District of Texas and Aaron Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Rivello ComplaintMaryland Man Arrested for CyberstalkingRead the Press Release
WASHINGTON – A Maryland man was arrested today on a federal criminal complaint charging him with cyberstalking a Dallas, Texas resident, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney John Parker of the Northern District of Texas.
John Rayne Rivello, 29, of Salisbury, Maryland, was arrested in Maryland today on a criminal complaint filed in the Northern District of Texas. The complaint was unsealed today following his initial appearance in the District of Maryland.
According to the allegations in the affidavit filed with the complaint, on Dec. 15, 2016, the victim, who is known to suffer from epilepsy, received a message via Twitter from Rivello. The tweet contained an animated strobe image embedded with the statement, “You deserve a seizure for your post.” Upon viewing the flashing strobe image the victim immediately suffered a seizure.
Additionally, according to the affidavit, evidence received pursuant to a search warrant showed Rivello’s Twitter account contained direct messages from Rivello’s account to other Twitter users concerning the victim. Among those direct messages included statements by Rivello, including “I hope this sends him into a seizure,” “Spammed this at [victim] let’s see if he dies,” and “I know he has epilepsy.” Additional evidence received pursuant to a search warrant showed Rivello’s iCloud account contained a screenshot of a Wikipedia page for the victim, which had been altered to show a fake obituary with the date of death listed as Dec. 16, 2016. Rivello’s iCloud account also contained screen shots from epilepsy.com with a list of commonly reported epilepsy seizure triggers and from dallasobserver.com discussing the victim’s report to the Dallas Police Department and his attempt to identify the Twitter user.
The charges contained in a criminal complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The FBI and the Dallas Police Department investigated the case. The Maryland State Police and Ocean City Police Department assisted during the arrest. Assistant U.S. Attorney C.S. Heath of the Northern District of Texas and Aaron Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
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Man Sentenced for His Role in Credit Card SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today Richard Lipke, who was convicted of conspiracy to commit access device fraud, was sentenced to six months in prison and ordered to pay $60,608.10 in restitution by U.S. District Judge Elizabeth A. Wolford.
The defendant was arrested with four others in June of 2016 after they were discovered to have been engaged in a variety of frauds involving credit cards. According to Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, between January 15, 2015, and February 2, 2015, one of defendant’s co-conspirators conducted a series of over-the-phone credit card purchase with stolen credit card account information at various Home Depot locations in Western New York. Defendant Lipke also utilized the stolen credit card information to conduct a series of fraudulent purchases from Home Depot during this period. Those fraudulent purchases totaled $48,208.10.
Moreover, between February 2015 and May 2015, defendant picked-up from retailers in the greater-Rochester area various equipment, including a jet ski, a watercraft trailer, with a combined value in excess of $20,000, which had been fraudulently purchased over-the-phone by one of his co-conspirators using stolen credit card account information.
Today’s sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Long Island Portfolio Manager Pleads Guilty to Wire Fraud for Stealing More Than $440,000 from ClientsRead the Press Release
Earlier today, Patrick Morgan Schiro, a resident of Rockville Centre, New York, and the founder of Black Rock Morgan LLC (BRM), pleaded guilty to wire fraud for defrauding five investors of approximately $440,000. The guilty plea was entered before United States District Judge LeShann DeArcy Hall at the federal courthouse in Brooklyn, New York. As part of his plea agreement with the government, Schiro has agreed to make restitution to the victims of his fraud in an amount to be determined by the Court. When he is sentenced on August 2, 2017, Schiro faces up to twenty years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea 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.
According to court filings and facts presented at the plea hearing, Schiro incorporated BRM, a purported investment management business, in February 2014. From approximately July 2014 to October 2015, Schiro used false and misleading statements to induce five individuals to invest approximately $440,000 with BRM, and he concealed his prior federal conviction for securities fraud from at least four of them. For example, Schiro falsely told one investor that BRM had many clients, managed millions of dollars in assets, and had “a team of investment professionals with significant sector-specific expertise.” Once he had the funds, Schiro also deceived his investors by telling them that their investments were performing well. For example, Schiro told one investor that his investment of approximately $242,000 was valued at $711,000.
Contrary to these representations, Schiro only invested only a small amount of the funds and used a significant amount of the money on his personal expenses, including approximately $190,000 to pay one of his children’s university tuition. When investors asked for their money back, Schiro often ignored their requests or provided false or misleading excuses. For example, when one investor asked to redeem $250,000 from his account, Schiro caused an email to be sent to that investor stating that the request had been denied because: “Consistent with our AML [anti-money laundering] responsibilities and U.S. patriot act regulations wire transfer withdrawals and redemptions MUST and will ONLY be sent to the bank account associated with your BRM Account.” In fact, no such policies were in place to prevent the transfer requested by the investor.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney David K. Kessler is in charge of the prosecution.
The Defendant:
PATRICK MORGAN SCHIRO
Age: 45
Rockville Centre, New York
E.D.N.Y. Docket No. 17-CR-130 (LDH)
Liquid Methamphetamine Lands Brownsville Man in Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 20-year-old Brownsville man has been ordered to prison following his conviction of possessing with the intent to distribute more than 44 kilograms of liquid methamphetamine, announced Acting U.S. Attorney Abe Martinez. Steve Turrubiates pleaded guilty Dec. 29, 2016.
Today, Senior U.S. District Judge Janis Jack ordered Turrubiates to serve 70 months in federal prison to be immediately followed by five years of supervised release.
Turrubiates was arrested Oct. 25, 2016, at the United States Border Patrol checkpoint near Sarita. On that date, he entered the primary inspection lane where a canine alerted to the presence of narcotics. He and his vehicle were sent to secondary inspection, at which time agents noticed tool marks on the gas tank and the bolts which hold it to the underside of the vehicle. Agents used a fiber optic scope to examine the inside of the tank where they observed large plastic bags concealed within the fuel. The agents removed the fuel tank and recovered eight bags containing more than 44 kilograms of liquid methamphetamine.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Las Vegas Man Pleads Guilty to Conspiracy to Commit $5.3 Million in Advance Fee Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to conspiracy to commit a nearly $5.3 million advance fee fraud scheme targeting small business owners seeking grant funding, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Gregory Villegas, 37, pleaded guilty to conspiracy to commit wire fraud. He was indicted by a superseding indictment on Jan. 13, 2016. Sentencing is scheduled for June 30, 2017, before U.S. District Chief Judge Gloria M. Navarro.
As part of the guilty plea agreement, Villegas admitted that, together with co-conspirators Christine Gagnon, Mickey Gines, and others, he defrauded at least 390 victims for a total approximate loss of $5,261,218, between March 1, 2008 and about May 2, 2012. According to the plea agreement, Villegas and conspirators ran an advance fee scheme to defraud small business owners by pretending to operate companies that would obtain grants for the small business owners from public and private sources. In truth, Villegas and conspirators never intended to pursue any grant funding for the victims. The sole purpose of the scam was to enrich Villegas and conspirators. The plea agreement states that Villegas and conspirators repeatedly solicited victims for additional money for goods and services, and made numerous false statements, including false promises of grant funding and excuses for delays in funding. Villegas admitted that he directed staff to use aliases and operated under multiple business names to avoid lawsuits, actions by consumer protection agencies, and apprehension by law enforcement.
At the time of sentencing, Villegas will face the statutory maximum penalty of 20 years in prison and a $250,000 fine. Gagnon pleaded guilty on Nov. 17, 2014, and awaits sentencing scheduled for April 14, 2017; and Gines pleaded guilty on Feb. 2, 2015, and awaits sentencing scheduled for June 22, 2017.
The case is being investigated by the FBI and U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Dan Cowhig.
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Kansas Man Pleads Guilty to Making False Statements in Federal Hate Crime InvestigationRead the Press Release
WASHINGTON – Diego Martinez, 28, pleaded guilty yesterday to making false statements to the FBI during a federal hate crime investigation arising from a June 19, 2015, bias-motivated assault of three black Somali men in Dodge City, Kansas. Martinez pleaded guilty in the District of Kansas to one count of making materially false statements to the FBI during an October 2015 voluntary interview.
During the plea hearing, Martinez admitted that, during the interview, he had provided the FBI with a false alibi for the time of the assault—specifically, that although he had told the FBI that he had been with an unknown woman at the time that the Somali men were attacked, this alibi was false. He further admitted that he falsely told the FBI that his cell phone had stopped working shortly after the assault, when, in fact, Martinez had used his phone to contact, and to attempt to contact, one of the men who perpetrated the attack. Martinez admitted that he knew these statements were false at the time he made them to the FBI, and that they were material to the FBI’s investigation into the attack.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute hate crimes, and to pursue defendants who, like Mr. Martinez, obstruct the investigations into those crimes.”
Martinez will be sentenced on June 1, 2017, and faces a maximum sentence of 5 years in prison.
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police and the Ford County, Kansas, Sheriff’s Departments. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section, with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
Kansas Man Pleads Guilty to Making False Statements in Federal Hate Crime InvestigationRead the Press Release
Diego Martinez, 28, pleaded guilty yesterday to making false statements to the FBI during a federal hate crime investigation arising from a June 19, 2015, bias-motivated assault of three black Somali men in Dodge City, Kansas. Martinez pleaded guilty in the District of Kansas to one count of making materially false statements to the FBI during an October 2015 voluntary interview.
During the plea hearing, Martinez admitted that, during the interview, he had provided the FBI with a false alibi for the time of the assault—specifically, that although he had told the FBI that he had been with an unknown woman at the time that the Somali men were attacked, this alibi was false. He further admitted that he falsely told the FBI that his cell phone had stopped working shortly after the assault, when, in fact, Martinez had used his phone to contact, and to attempt to contact, one of the men who perpetrated the attack. Martinez admitted that he knew these statements were false at the time he made them to the FBI, and that they were material to the FBI’s investigation into the attack.
“Hate violence not only harms individuals but also threatens the diversity of our society and the well-being of our communities,” said Acting Assistant Attorney General Tom Wheeler for the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute hate crimes, and to pursue defendants who, like Mr. Martinez, obstruct the investigations into those crimes.”
Martinez will be sentenced on June 1, 2017, and faces a maximum sentence of 5 years in prison.
This case was investigated by the FBI’s Garden City Resident Agency with assistance from the Dodge City Police and the Ford County, Kansas, Sheriff’s Departments. The case is being prosecuted by Trial Attorney Risa Berkower and Special Litigation Counsel Jared Fishman of the Civil Rights Division’s Criminal Section, with assistance from Assistant U.S. Attorney Mona Furst of the District of Kansas.
Jury Convicts Two Men Who Masterminded String of Violent Home Invasions of All ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Matthew Nix, 37, of Rochester, NY, and Earl McCoy, 35, of Brooklyn, NY, of conspiracy to commit Hobbs Act robbery; attempted Hobbs Act robbery; Hobbs Act robbery; carrying and brandishing firearms during crime of violence; narcotics conspiracy; carrying firearms during drug trafficking crime; and possessing firearms as convicted felon. The charges carry a maximum penalty of life in prison and a $3,000,000 fine.
Assistant U.S. Attorneys Robert A. Marangola and Everardo A. Rodriguez, who handled the prosecution of the case, stated that the defendants were the leaders of a group of criminals who engaged in armed home invasions of individuals they believed were drug dealers, as well as a jewelry wholesaler in the Town of Greece. The group included Jecovious Barnes, Jessica Moscicki as well as McCoy’s younger brothers Clarence Lambert and Gary Lambert. All four have been convicted. Nix and McCoy identified and obtained information about victims and locations, brought accomplices to the locations, supplied firearms to accomplices, and distributed property stolen from home invasions. McCoy and other accomplices entered the locations brandishing firearms. They restrained the victims at gunpoint, and in some instances, bound them with plastic zip-ties and pistol-whipped them, demanding drugs and money. The defendants ransacked the residences, flipping over beds, yanking out drawers looking for large quantities of drugs and cash. They stole drugs, cash, cell phones, and even guns from locations. Nix, McCoy and their co-defendants also perpetrated the home invasion at the home of a jewelry wholesaler, stealing $200,000 in luxury watches, diamonds and cash. Specifically:
• On September 15, 2014, at a residence in Rochester, Clarence Lambert, Earl McCoy and Matthew Nix stole property from two victims against their will. Lambert and McCoy broke open a locked screen door to the residence, brandished firearms, and demanded money and drugs from the victims, who they mistakenly believed were drug dealers. The victims were zip-tied at gunpoint, and one was pistol-whipped while the defendants searched the residence. After finding no money or drugs, Lambert and McCoy stole a cell phone and fled the residence and the victims called the police.
• On September 18, 2014, Nix and McCoy brought Clarence Lambert and Jecovious Barnes to another residence in Rochester of what they believed to be a drug dealer. Nix and McCoy expected to find a stash of illegal pills and cash inside the residence. Lambert and Barnes stormed inside the location brandishing handguns and restrained the two victims at gunpoint, demanded money and drugs, and searched the residence. After finding no stash of money or drugs, Lambert and Barnes stole two cell phones and then left with Nix and McCoy, who were waiting outside.
• On the morning of September 23, 2014, Nix and McCoy drove Clarence Lambert, Jecovious Barnes and Jessica Moscicki another Rochester residence to break in and steal marijuana, heroin, cocaine, and cash. Lambert and Barnes, carrying a firearm, broke into the unoccupied residence and stole cash, marijuana, firearms and other items from inside.
• On October 7, 2014, Nix and McCoy and their accomplices went to the home of a jeweler in the Town of Greece. The jeweler’s business involved buying and selling and luxury watches, all of which were made outside the United States. While Nix and McCoy waited nearby, their accomplices stormed the residence, carrying and brandishing at least one firearm and other weapons. They threatened to kill the jeweler and his wife and demanded money and access to the safe. The victims were pistol-whipped and sustained serious injuries. The men stole luxury watches, diamonds, jewelry and cash worth over $200,000 in total, including numerous Mens and Ladies Rolex watches. After fleeing the residence, the accomplices met Nix and McCoy and gave them the stolen property. Nix and McCoy paid their accomplices in cash and stolen watches.
The verdict is the culmination of an investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict; Special Agent-in-Charge, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Police, under the direction of Major Richard Allen; and the Rochester Police Department under the direction of Chief Michael Ciminelli.
The defendants will be sentenced on July 12, 2017 before U.S. District Judge Elizabeth A. Wolford who presided over the trial.
Joint Efforts Yield 5 Million Global Child Exploitation LeadsRead the Press Release
INTERPOL Washington In February, the total number of reports made available to Interpol member countries through NCMEC’s CyberTipline and Interpol’s I-24/7 secure messaging system exceeded 5 million.WASHINGTON – Interpol Washington, the U.S. National Central Bureau (USNCB), recently reached a significant milestone in its 20-year partnership with the National Center for Missing and Exploited Children (NCMEC). In February, the total number of reports made available to Interpol member countries through NCMEC’s CyberTipline and Interpol’s I-24/7 secure messaging system exceeded 5 million.
Pursuant to its nonprofit private mission to help reduce child sexual exploitation, NCMEC works with Interpol Washington to provide law enforcement officials urgent and timely leads and information to prevent child sexual exploitation and abuse. Historically, these leads were not actionable due to the unavailability of law enforcement contacts as well as a lack of an established mechanism for making the reports available to law enforcement in certain jurisdictions. Interpol’s I-24/7 secure messaging system is the tool that is being used to quickly and effectively make available the information and leads to investigative law enforcement entities around the world. Foreign Universal Resource Locators (URL) Internet leads received by Interpol Washington are provided to NCMEC. Images and other forms of media containing actual evidence are provided to U.S. law enforcement agencies for potential action.
The source of the shared information is NCMEC’s CyberTipline® reports. In May 2014, Interpol’s I-24/7 secure messaging system tool went live and the service became available to approximately 140 Interpol member countries after a 30-day pilot program was completed. The pilot program was designed to test how Interpol member countries assimilated data made available from NCMEC. By November 2015, 1 million CyberTipline reports had been made available to international law enforcement agencies, with 38 countries requesting additional follow-up information. Today, more than 5 million CyberTipline reports have been made available through Interpol’s I-24/7, a secure, encrypted messaging system accessible by only the country where the leads are sent. This project allows for electronic distribution, 24 hours, 7 days a week, 365 days a year without personnel resources.
“On behalf of Interpol Washington, I would like to thank NCMEC and its leadership for its ongoing and extraordinary efforts in partnering with the USNCB to reach this historic milestone toward the global sharing of information among law enforcement in the fight against child exploitation,” stated Wayne H. Salzgaber, Acting Director of the USNCB.
NCMEC created the CyberTipline to further NCMEC’s mission of helping to prevent and diminish the sexual exploitation of children in March 1998 using hardware, software, and programming assistance donated by Sun MicroSystems, The CyberTipline provides the public and electronic service providers (ESPs) with the ability to report online (and via toll-free telephone) suspected child sexual abuse images, instances of online enticement of children for sexual acts, extra-familial child sexual molestation, child sexual abuse, child sex tourism, child sex trafficking, unsolicited obscene materials sent to a child, misleading domain names, and misleading words or digital images on the Internet. NCMEC continuously reviews CyberTipline reports to ensure that reports of children who may be in imminent danger get first priority. After NCMEC’s review is completed, all information in a CyberTipline report is made available to law enforcement.
“Interpol Washington is a crucial ally in NCMEC’s efforts to reduce the dissemination of child sexual abuse images around the world and prevent future child victimization,” said John Shehan, vice president of the Exploited Children Division at the National Center for Missing & Exploited Children. “We’re tremendously proud of our work with Interpol Washington and its commitment to help bring an end to child sexual exploitation worldwide.”
More than 18.4 million reports of suspected child sexual exploitation have been made to the CyberTipline between 1998 and March 11, 2017.
A component of the U.S. Department of Justice, Interpol Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization (Interpol) on behalf of the Attorney General, Interpol Washington serves as the national point of contact for all Interpol matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Isanti Felon Indicted for Conspiracy to Distribute Methamphetamine, Possession of Stolen FirearmsRead the Press Release
Acting United States Attorney Gregory G. Brooker announced an indictment charging JEFFREY MARCUS LUCAS, 62, with one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, one count of possession of a stolen firearm, and one count of being a felon in possession of a firearm. On March 17, 2017, LUCAS made his initial appearance in U.S. District Court in St. Paul, Minn.
According to the indictment and documents filed in state court, from 2009 through August 2016, LUCAS, operating from his residence in Isanti, Minn., sold and traded methamphetamine for stolen property and firearms.
According to the indictment and documents filed in state court, on August 8, 2016, law enforcement executed a search warrant for the property, which includes a house, two campers and several pole barns. As a result of the search, law enforcement officers recovered several stolen firearms, ammunition and more than $25,000 in stolen property.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the East Central Drug and Violent Offenders Task Force, with assistance from the Braham Police Department, Cambridge Police Department, Isanti Police Department, Isanti County Sheriff’s Office, and the Anoka Hennepin Drug Task Force.
This case is being prosecuted by Assistant United States Attorney David P. Steinkamp.
Defendant Information:
JEFFREY MARCUS LUCAS, 62
Isanti, Minn.
Charges:
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Conspiracy to Distribute Methamphetamine, 1 count
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Possession with Intent to Distribute Methamphetamine, 1 count
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Possession of Stolen Firearms, 1 count
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Felon in Possession of a Firearm, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Houston-Area Registered Nurse Pleads Guilty to Conspiring to Defraud Medicare of More than $5 MillionRead the Press Release
A Houston-Area registered nurse pleaded guilty today for his role in a Medicare fraud scheme that resulted in losses to Medicare of more than $5 million.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, Special Agent in Charge D. Richard Goss of Internal Revenue Service Criminal Investigation’s (IRS-CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Charles Esechie, 47, of Katy, Texas, pleaded guilty before U.S. District Judge Sim Lake of the Southern District of Texas to one count of conspiracy to commit health care fraud. Esechie is scheduled to be sentenced by Judge Lake on Aug. 17, 2017
According to the plea, from 2008 through 2015, Esechie worked as a nurse for both Harris County, Texas, Hospital District (Harris County) and Baptist Home Care Providers Inc. (Baptist), one of five Houston-area home healthcare agencies owned by Godwin Oriakhi. Esechie admitted that while he worked at Baptist, he knew that Oriakhi obtained Medicare patients by paying illegal kickback payments to patient recruiters for referring patients to Baptist for home healthcare services that Esechie knew were medically unnecessary and often not provided. Esechie also admitted that he knew that some of patients referred by the patient recruiters were homeless, and that many patients stayed at Baptist in order to receive kickbacks from Oriakhi rather than actual healthcare.
Additionally, Esechie admitted that he engaged in a scheme to defraud Medicare through the submission of fraudulent claims for home health care services. Esechie admitted that he completed Baptist’s Medicare documents while working full time as a Harris County nurse, often claiming that he was evaluating patients for Baptist at times when his Harris County employment records showed that he was across town working at a Harris County hospital. To accommodate his fulltime work schedule at Harris County and to avoid actually having to travel to the homes of Baptist’s patients for evaluations, Esechie admitted that he copied patient and medical information from templates created for him by Orikahi and Baptist’s office staff onto Baptist’s Medicare documents. Esechie also admitted that he saw patients in groups at the home of one of Oriakhi’s patient recruiters and conducted perfunctory examinations that lasted approximately five to 10 minutes, but overbilled Medicare for comprehensive examinations.
In total, Esechie admitted that he, Oriakhi and others submitted approximately $5,099,970 in fraudulent home healthcare claims to Medicare, and received approximately $4,792,199 on those claims.
To date, Jermaine Doleman, a patient recruiter, and Idia Oriakhi, Oriakhi’s daughter and the administrator of several of his home healthcare agencies, have pleaded guilty and are awaiting sentencing for their roles in the scheme. Godwin Oriakhi is charged with conspiracy, health care fraud, paying illegal kickbacks and money laundering offenses for his alleged role in the schemes and is scheduled for trial on April 11, 2017. All defendants are presumed innocent unless and until convicted beyond a reasonable doubt in a court of law.
The FBI, HHS-OIG, IRS-CI and MFCU investigated the case, which was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Senior Trial Attorney Jonathan T. Baum and Trial Attorneys Aleza S. Remis and William S.W. Chang of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Houston Woman Admits to Accessing Computer of Former EmployerRead the Press Release
HOUSTON – A 54-year-old Houston resident has entered a guilty plea to accessing a protected computer without authorization, announced Acting U.S. Attorney Abe Martinez. Velvet Smith admitted she had accessed the password-protected website of Next Day Four Color (ND4C), her former employer, at least 20 times to steal information that she used to benefit a competitor.
Smith worked for ND4C for four years. Part of her duties included serving as ND4C’s office manager, in which she helped new employees create accounts for ND4C’s website and had access to their login credentials.
In approximately January 2015, she resigned from ND4C and started working for one of its competitors. She then repeatedly accessed ND4C’s password-protected website without authorization and obtained confidential information on pricing and client orders. Smith also intruded into ND4C’s password-protected website by using an employee’s login credentials without their knowledge or permission. As part of her plea today, she admitted this occurred approximately 20 times in 2016.
On one of those occasions, May 31, 2016, Smith used that employee’s credentials to intrude into ND4C’s website and view their client list. Smith sorted the list by location to focus on clients in Houston, Dallas and Louisiana, then sorted it by purchase size and downloaded the list. She subsequently combined this data with information about her then-employer’s existing customers. According to Smith, the combined list was used by her then-employer to send out promotional materials to at least 1,300 of ND4C’s clients.
Smith continued accessing ND4C’s website without authorization until at least July 2016.
According to information presented in court today, Smith accessed ND4C’s computers for the purpose of obtaining a commercial advantage and that her actions caused an actual loss of approximately $275,810.
Sentencing has been set for June 15, 2017, at which time Smith faces up to five years in federal prison and a $250,000 maximum fine.
The FBI Houston Area Cyber Task Force conducted the investigation. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Hidalgo County Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – William Herman Legatzke, 47, of Animas, N.M., was sentenced today in federal court in Las Cruces, N.M., to 84 months in prison for his conviction on a methamphetamine trafficking charge. He will be on supervised release for five years after completing his prison sentence.
Legatzke was arrested on Jan. 5, 2016, on a federal criminal complaint charging him with possessing methamphetamine with intent to distribute. According to the criminal complaint, the charge arose out of the seizure of 12 ounces of methamphetamine from Legatzke by deputies of the Hidalgo County Sheriff’s Office during a routine traffic stop on Dec. 31, 2015, in Lordsburg, N.M.
On May 3, 2016, Legatzke pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Legatzke admitted that law enforcement officers found 340.2 grams of methamphetamine concealed in a box in the backseat of Legatzke’s vehicle during a traffic stop. Legatzke further admitted that he intended to distribute the methamphetamine to individuals in and around Lordsburg.
This case was investigated by the Las Cruces office of the DEA and the Hidalgo County Sheriff’s Office. Assistant U.S. Attorney Dustin Segovia of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Hartford Man Sentenced to 4 Years in Federal Prison for Distributing Heroin and FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEMANUEL RIOS, also known as “Jay,” 41, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 48 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on February 25, 2016, a male and female overdosed at a motel in Enfield. The overdoses were not fatal. In the motel room, investigators found five wax folds that contained fentanyl. RIOS was identified as the source of the drugs ingested by the victims.
On February 26, 2016, a search of an East Hartford motel room that RIOS was renting revealed approximately 200 bags of fentanyl stamped with the same image found on the bags in the Enfield motel room, and 13 bags of heroin stamped with a different image.
RIOS has been detained since his arrest on February 26, 2016. On November 21, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Enfield Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Gang Leader Pleads Guilty to Racketeering, Money Laundering & Drug Charges; Admits Role in 4 MurdersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY BENTON, also known as “Tall Man” and “Fresh,” 32, of New Haven, pleaded guilty today in New Haven federal court to federal racketeering, drug trafficking and money laundering offenses, and admitted that he participated in four gang-related murders and one attempted murder.
According to court documents and statements made in court, in January 2014, ATF and the New Haven Police Department began “Operation Red Side” through a series of controlled narcotics purchases and firearms seizures. The investigation revealed that members and associates of the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang based in New Haven, were engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. In addition to distributing crack cocaine and other narcotics in and around New Haven, the investigation indicated that members and associates of the RSGB, under the direction of BENTON and others, transported crack cocaine and heroin to Bangor, Maine, and sold the drugs in Bangor and its surrounding communities. The RSGB also traded narcotics for firearms, brought the firearms back to New Haven and distributed them to gang members.
BENTON was a leader of RSGB. In pleading guilty, he admitted his involvement in several acts of gang-related violence in New Haven, including the non-fatal shooting of an individual on February 23, 2011; the murder of Kevin Lee on April 20, 2011; the murder of Donell Allick on June 24, 2011; the murder of Darrick Cooper on September 19, 2011, and the murder of Donald Bolden on March 19, 2012.
BENTON also admitted his participation in the gang-related trafficking of crack cocaine in Connecticut and Maine, and the transferring drug proceeds from Maine to Connecticut by using Western Union.
“Jeffrey Benton was the leader of the Red Side Guerilla Brims, a savage and ruthless narcotics gang that terrorized New Haven in 2011 and 2012,” said U.S. Attorney Daly. “Benton and his RSGB gang members not only trafficked in crack cocaine and firearms from Connecticut to Maine, but far worse they were responsible for multiple homicides. Benton ordered three homicides and killed Donell Allick himself. We hope that his guilty plea today brings some small degree of solace to the victims’ families. This has been a difficult and demanding prosecution. I thank our law enforcement partners, particularly the ATF, New Haven Police Department and Hamden Police Department, for their excellent work in bringing justice to the many victims of this brutal gang, and for making New Haven a safer place to live.”
BENTON pleaded guilty to one count of engaging in a pattern of racketeering activity, which, because it involves the commission of murder, carries a maximum penalty of life in prison. He also pleaded guilty to one count of money laundering, which carries a maximum term of imprisonment of 20 years, and one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”), which carries a mandatory minimum term of imprisonment of 10 years and a maximum penalty of life imprisonment.
BENTON is scheduled to sentenced by Chief U.S. District Judge Janet C. Hall on June 27, 2017.
If the binding plea agreement filed today is accepted by Chief Judge Hall, BENTON faces a sentence of between 360 months and 480 months of imprisonment. The government will argue in support of sentence of 480 months – or 40 years – of imprisonment.
BENTON has been in federal custody since May 17, 2012.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Gainesville Man Sentenced to Federal Prison for Robbing the Habersham Federal Credit UnionRead the Press Release
GAINESVILLE, Ga. - Mitchell Logan Reeves has been sentenced to eight years and eight months in federal prison for robbing the Homer, Georgia, branch of the Habersham Federal Credit Union on July 30, 2015.
“Reeves pointed a fully loaded firearm at the face of a credit union teller and demanded all the money that was in her teller drawer,” said U. S. Attorney John Horn. “Outstanding deputies from the Banks County Sheriff’s Office and the Georgia Bureau of Investigation quickly apprehended Reeves and recovered the money that he stole. We hope this sentence restores the sense of safety to the bank employees and members of the community”
“The FBI commends the prompt actions of the responding deputies of the Banks County Sheriff’s Department that set in motion the quick and safe capture of this armed robber. The sentencing of Mr. Reeves to federal prison will afford him time to not only reflect on his extremely poor choices leading up to and including his actions involving the July, 2015 armed robbery of the Habersham Federal Credit Union, but also the significant emotional trauma that he inflicted on the victim teller that day,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office
“This conviction illustrates the great work of law enforcement in investigating and prosecuting armed robberies in Georgia. The Georgia Bureau of Investigation remains committed to working with our local and federal partners to pursue these vicious crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“This case is an excellent example of just how critical it is to have an unrestricted line of communication between agencies in order to produce an efficient and successful conviction. I am exceptionally pleased with the assistance received from all agencies and the amount of professionalism put into each and every step of this investigation and prosecution,” said Sheriff Carlton Speed, Banks County Sheriff’s Department.
According to U.S. Attorney Horn, the charges and other information presented in court: On July 30, 2015, Reeves entered the Homer branch of the Habersham Federal Credit Union wearing a black mask and tan hat. He walked up to the lone teller working in the branch at the time, pointed a firearm directly at her face, and demanded that she give him all the money in her teller drawer. The teller gave Reeves $1,729.00. After receiving the money, Reeves fled.
Witnesses observed Reeves run into a wooded area near the credit union office. Banks County Sheriff’s Office deputies set up a perimeter around the wooded area and Reeves was arrested within a short time. In the wooded area, law enforcement officers located the black mask, tan hat, and other clothing Reeves wore during the robbery, as well as a fully loaded Smith and Wesson .9 mm handgun and the $1,729.00 taken during the robbery.
Mitchell Logan Reeves, 24, of Gainesville, Georgia, was sentenced to eight years, eight months in prison to be followed by five years of supervised release. Reeves pleaded guilty on March 29, 2016, to charges that he robbed the credit union and that he used a firearm during the commission of a crime of violence.
This case was investigated by the Banks County Sheriff's Office, the Georgia Bureau of Investigation, and the Federal Bureau of Investigation.
Assistant U.S. Attorney William L. McKinnon, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fresno County Residents Indicted for Synthetic Drug Smuggling SchemeRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment on Thursday against Terry Ford, 37, and Dawn Peters, 35, both of Clovis, charging them with distributing synthetic drugs, conspiracy, and money laundering, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ford and Peters possessed with intent to distribute Dibutylone HCI, a controlled substance, and Alpha-PHP, an analogue of a controlled substance. The indictment further alleges that Ford and Peters conspired to launder money internationally by wiring money to China to promote the distribution of controlled substances or analogues.
This case is the product of an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
Four KC Residents Charged with Kidnapping Two Victims at GunpointRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that four Kansas City, Mo., residents were charged in federal court today with kidnapping a man and woman at gunpoint.
Jeremy M. Dobson, 30, his brother, Joshua A. Dobson, 25, Courtney J. Devero, 25, and Justin D. Watson, 21, all of Kansas City, were charged in a two-count complaint filed in the U.S. District Court in Kansas City, Mo. Joshua Dobson and Devero had their initial court appearance this afternoon and remain in federal custody. Watson, who is also in federal custody, will have an initial court appearance on Monday. Jeremy Dobson remains a fugitive from justice.
Today’s criminal complaint charges each of the four co-defendants in one count of kidnapping and one count of using a firearm during a violent crime.
According to an affidavit filed in support of the complaint, a man and a woman were tied to a pole in the basement of a Kansas City, Mo., residence and held at gunpoint. They were allegedly beaten by the kidnappers, who took the male victim with them as they drove across Kansas, eventually leaving him tied up in a remote field as they drove to Colorado. The female victim was released at a local hospital.
On Friday, March 10, 2017, the two victims were at a residence in the 3200 block of E. 27th Street with Jeremy and Joshua Dobson and Devero, Joshua Dobson’s girlfriend, who was house sitting at the residence, as well as an uncharged juvenile female identified as “H.J.” Jeremy allegedly became upset with the female victim, his ex-girlfriend, and punched her in the face. When the male victim intervened and pushed Jeremy Dobson away, the affidavit says, Jeremy Dobson produced a handgun and pointed it at the two victims. Jeremy Dobson fired the handgun at the female victim’s head, the affidavit says, but missed her. Jeremy Dobson allegedly forced the two victims to give him their cell phones and personal items. Jeremy and Joshua Dobson, Devero and H.J. allegedly forced the two victims into the basement and tied them to a support pole with zip ties, rope and electrical wire.
According to the affidavit, the two victims were held in the basement for several hours while Jeremy and Joshua Dobson, Devero and H.J. took turns watching them while in possession of the handgun. Duct tape was placed over the female victim’s mouth, the affidavit says, and the two victims were punched, slapped, kicked and threatened with death. At one point, the affidavit says, they were forced into the trunk of a car for several hours, then led back into the house.
When Watson arrived at the residence the next morning, the affidavit says, Jeremy Dobson, Watson and H.J. forced the male victim into the victim’s vehicle and they left the house. Joshua Dobson and Devero remained at the house with the female victim. After several hours, the female victim begged to go to the hospital, the affidavit says, and Joshua Dobson and Devero dropped her off at Truman Medical Center on March 11, 2017. Police officers who were called to the hospital documented the presence of ligature marks around the victim’s wrist and ankles, as well as redness about her face.
After leaving the residence, Watson drove west on I-70 headed to Colorado. Near Topeka, Kan., Watson stopped at a gas station/convenience store. Watson and H.J. allegedly used the male victim’s debit card to withdraw $1,200 from an ATM. They continued driving west on I-70, the affidavit says, making an additional stop at a sporting goods store, where Jeremy Dobson and H.J. purchased a pair of Nike Air Jordan shoes. As they continued driving, Jeremy Dobson discussed whether to kill the victim, who was in the front passenger’s seat. Watson exited off the interstate in the area of Russell, Kan. The male victim was forced out of the car, bound and gagged, and left in a field. After the kidnappers left, he was able to remove his bindings and made his way to the Russell Police Department.
The kidnappers stopped at a motel and paid for a room. Jeremy Dobson asked Watson to go to Walmart. Instead, the affidavit says, Watson drove back to Kansas City, leaving Jeremy Dobson and H.J. at the motel.
On March 14, 2017, Kansas City police officers located the victim’s vehicle on E. 9th Street in Kansas City and conducted a car stop. Justin Watson, the driver, was arrested.
On March 16, 2017, law enforcement officers executed a search warrant at the residence where the two victims had been held and arrested Joshua Dobson and Devero.
Larson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Founder of Heroes Academy Sentenced for $1.9 Million FraudRead the Press Release
RICHMOND, Va. – Larry Jay Horsey, 41, of Chesterfield, was sentenced today to 90 months in prison for an investment fraud scheme that caused a loss of $1.9 million to nine investors. Horsey was also sentenced to three years of supervised release, ordered to pay $1,767,065.76 in restitution to his victims, and agreed to forfeit $1,922,427.47 as proceeds of his offense.
Horsey pleaded guilty on Dec. 14, 2016. According to court documents, Horsey, a licensed insurance agent, was the founder and operator of “Heroes Academy,” a business that marketed itself as both a non-profit financial education school and a financial management company. Horsey represented himself to the public as a financial advisor, conducting financial planning seminars in Virginia and North Carolina. Between October 2012 and May 2016, Horsey targeted nine separate individuals, convincing those individuals to open what they believed would be investment or savings vehicles, such as an annuity or a Roth IRA, through Horsey’s Heroes Academy business. Instead of using those individuals’ savings as promised, however, Horsey instead spent the funds on various personal or business expenses. In total, Horsey defrauded those nine investors of a combined $1.9 million, and plead guilty to charges of mail fraud and engaging in monetary transactions derived from specified unlawful activities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Thomas A. Garnett prosecuted the case.
The case was investigated by the Fraud Task Force, including the FBI’s Richmond Field Office, IRS-CI, and USPIS, with assistance from the Virginia State Corporation Commission.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-153.
Former Yuba City Police Officer Sentenced to 18 Months in Prison for Federal Programs BriberyRead the Press Release
SACRAMENTO, Calif. — Harminder Phagura, 37, of Yuba City, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 18 months in prison for one count of federal programs bribery in connection with a drug trafficking scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Harminder Phagura worked as a police officer for the Yuba City Police Department, which receives grant funds from a Federal program. During the course of his crime, Phagura exchanged sensitive information gained from his official position for money. Co‑defendant Gursharan Phagura transmitted this police-only information to a government source, who was posing as a cocaine trafficker.
On July 29, 2014, federal agents observed Gursharan Phagura meet with Harminder Phagura in a Yuba City Police vehicle. At the same time, Gursharan Phagura and the government source were exchanging text messages regarding the state of police presence in the area. Agents then caused an alert to be transmitted on the Yuba City Police Department’s dispatch system. Within a few minutes, the government source received text messages indicating, in coded language, that law enforcement was in the area.
Over the course of several undercover operations, the government source paid a total of $6,000 for the information.
At sentencing, Judge Burrell characterized Phagura’s conduct as reprehensible and as a breach of the public trust.
U.S. Attorney Talbert said: “When a police officer violates the public trust, the community suffers. My office takes seriously any allegation of official misconduct. We hope that this prosecution makes clear that no one is above the law – especially those who have taken an oath to protect the community.”
Co-defendant Gursharan Phagura is charged with possessing with intent to distribute cocaine. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. His next court date is March 31, 2017.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Federal Bureau of Investigation and the Yuba City Police Department. Assistant United States Attorney Paul Hemesath is prosecuting the case.
Former Postal Worker Convicted of Tax FraudRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina ----- United States Attorney Beth Drake announced today that Lawrence Singleton, age 60, of Columbia, pleaded guilty to one count of interfering with the administration of tax laws in violation of Title 26, United States Code Section 7212(a). Facts presented in court indicate that Singleton is a former United States Postal Employee with ties to the “sovereign citizen” movement. “Sovereign citizens” are U.S. citizens who claim not to recognize the authority of federal, state or local governments. Typically, they argue that they do not have an obligation to adhere to the laws, policies or regulations created by the government.
According to facts presented during the hearing, Singleton fraudulently filed an identity theft affidavit with the Internal Revenue Service claiming that his identity had been stolen and that it changed his tax liability. Singleton then attempted to pay a $72,000 tax bill using a fraudulent check. Facts presented in court also showed that Singleton attempted to deposit a fraudulent check purportedly worth hundreds of thousands of dollars’ into a bank account and that he used a similar bogus check in an attempt to purchase an automobile. Sentencing in the case has not yet been scheduled but Singleton faces a possible sentence of 3 years’ imprisonment and a fine of $5,000.
The investigation was conducted by the Federal Bureau of Investigations and the Internal Revenue Service. “The refutation of frivolous arguments through enforcement helps maintain the integrity of the tax laws of this nation by making sure all citizens are treated equally and pay their fair share,” said acting IRS Special Agent in Charge Michael Daniels. This investigation and conviction were pursued in furtherance of the FBI’s national strategy aimed at disrupting the criminal activity of individuals claiming to be sovereign citizens and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Former Jackson County Loan Officer Sentenced to 18 Months in Prison for Bank FraudRead the Press Release
PANAMA CITY, FLORIDA – Kevin R. Griffin, 44, of Alford, Florida, was sentenced to 18 months in federal prison yesterday and ordered to pay $480,785.06 in restitution to First Federal Bank of Florida for committing bank fraud. The sentence was announced today by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Griffin was employed by the Bank of Bonifay, which later became the First Federal Bank of Florida. Between 2010 and 2012, Griffin used his position as a loan officer to give customers undocumented loans that were actually funded by embezzling money from other customers’ bank accounts without authorization. Griffin obtained loans for customers using other customers’ bank assets as collateral, without permission, and forging loan documents. Griffin also embezzled money from bank customers for his own personal benefit. After the fraud was discovered, Griffin’s employment with the bank was terminated.
“This defendant had a duty to make truthful transactions on behalf of his company to help ensure a sound banking industry, and he violated that duty,” said U.S. Attorney Canova. “My office is committed to prosecuting unethical financial representatives who abuse their authority for their own gain.”
Federal Reserve Board representatives stated: “Griffin’s false and fraudulent representations in loan applications and loan documents directly impacted the accuracy of the Bank of Bonifay’s Consolidated Reports of Condition and Income (Call Report), which provides quarterly financial data regarding a bank’s financial condition and the results of its operations. The Federal Reserve Board relies on the accurate submission of call report data to effectively regulate and oversee the safety and soundness of the bank’s holding company.”
This case resulted from an investigation by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. Assistant United States Attorney Alicia Kim prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Former Chairman and Ceo of Credit Union and Operator of Unlawful Bitcoin Exchange Found Guilty in Manhattan Federal Court of Bribery and Fraud SchemeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that TREVON GROSS, the former Chairman and CEO of Helping Other People Excel Federal Credit Union (“HOPE FCU”), located in Lakewood, New Jersey, and YURI LEBEDEV, a former member of HOPE FCU’s Board of Directors and a former employee of Coin.mx, an internet-based Bitcoin exchange, were found guilty today in Manhattan federal court, in connection with a bribery scheme to take over control of HOPE FCU and a fraud scheme in furtherance of the operations of Coin.mx. The jury convicted GROSS and LEBEDEV on all counts with which they were charged in the controlling indictment following a four-week trial before U.S. District Judge Alison J. Nathan.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury found today, Yuri Lebedev and others at Coin.mx, an unlawful Bitcoin exchange, tricked banks into processing millions of dollars in transactions by hiding the true nature of their business. When the banks caught on to their scheme, Lebedev and others bribed Trevon Gross so they could have a captive credit union to process those transactions, undermining the credit union’s safety and solvency. Despite elaborate efforts to hide their schemes, the defendants’ conduct was exposed at trial and found for what they were, federal crimes.”
According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial:
The Unlawful Bitcoin Exchange
Between 2013 and July 2015, LEBEDEV helped operate Coin.mx, an unlawful internet-based Bitcoin exchange, along with Anthony Murgio, the founder of Coin.mx. LEBEDEV and his co-conspirators engaged in substantial efforts to evade detection of their unlawful Bitcoin exchange by operating through a phony front company called “Collectables Club.” Coin.mx used the “Collectables Club” to open financial accounts in order to trick financial institutions into believing the unlawful Bitcoin exchange was simply a members-only association of individuals who discussed, bought, and sold collectible items and memorabilia. LEBEDEV and his co-conspirators deceived financial institutions by deliberately misidentifying and miscoding Coin.mx customers’ credit and debit card transactions, in violation of bank and credit card company rules and regulations. Through the illegal Coin.mx scheme, LEBEDEV and his co-conspirators caused more than $10 million in Bitcoin-related transactions to be processed illegally through financial institutions.
The Federal Credit Union Scheme
In 2014, in an effort further to evade scrutiny from financial institutions about the nature of the business engaged in by Coin.mx, LEBEDEV, Murgio, and their co-conspirators gained control of HOPE FCU, a federal credit union in New Jersey with primarily low-income members. After making more than $150,000 in illegal bribes at GROSS’s direction to bank accounts in the name of a church where GROSS served as the pastor, Murgio, LEBEDEV, and their co-conspirators took control of HOPE FCU. With GROSS’s assistance, Murgio installed LEBEDEV and various co-conspirators on HOPE FCU’s Board of Directors and transferred Coin.mx’s banking operations to HOPE FCU. GROSS also ceded operational control of the credit union to the board members installed by Murgio, including LEBEDEV. Thereafter, GROSS, LEBEDEV, and others worked to run tens of millions of dollars of ACH (Automated Clearing House) transactions through the credit union without adequate controls, thus putting its financial condition at risk.
GROSS, LEBEDEV, Murgio, and their co-conspirators also obstructed an examination of HOPE FCU by the National Credit Union Administration (“NCUA”) and made false statements to the NCUA in order to perpetuate LEBEDEV and Murgio’s control of the credit union. These included deliberately failing to disclose the bribe payments; misrepresenting the location of Coin.mx-affiliated businesses, including the “Collectables Club,” so as to claim that they were eligible to be members of the credit union and to serve as Board members; and manipulating the accounting at HOPE FCU so as to hide its true financial condition and the fact that it was processing tens of millions of dollars of transactions without adequate controls. HOPE FCU was operated as a captive bank by MURGIO and his co-conspirators until the end of 2014.
In October 2015, the NCUA placed HOPE FCU into conservatorship, and subsequently liquidation.
* * *
LEBEDEV, 39, of St. John’s, Florida, and GROSS, 52, of Jackson, New Jersey, were found guilty of one count of making corrupt payments to an officer of a financial institution and one count of receipt of corrupt payments by an officer of a financial institution, respectively, each of which carries a maximum sentence of 30 years in prison. LEBEDEV and GROSS also were each found guilty of participation in a conspiracy to make and receive corrupt payments, as well as to obstruct the examination of the NCUA and make false statements to the NCUA, which carries a maximum sentence of five years in prison. LEBEDEV was also found guilty of one count of wire fraud, one count of bank fraud, and one count of conspiracy to commit wire and bank fraud, each of which carries a maximum sentence of 30 years in prison. Their sentencings are set for July 20, 2017, before the Honorable Alison J. Nathan.
All four of LEBEDEV and GROSS’s co-defendants, including Anthony Murgio, have pled guilty and are awaiting sentence.
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 outstanding investigative work of the FBI and the Secret Service. He also thanked the NCUA for its assistance with the investigation and prosecution.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Daniel S. Noble, and Won S. Shin are in charge of the prosecution.
First Nurse Practitioner Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Bridgette Parker has been sentenced to 20 months in federal prison for her role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
After years of experience as an operating room nurse, Bridgette Parker went back to school and earned a Master’s degree in nursing. Upon completion, Parker was hired as a nurse practitioner by Physicians Pain Specialists of Alabama ¬— the pain clinic co-owned and operated by Dr. Ruan and Dr. Couch. Parker initially worked under Dr. Ruan until she was fired in December 2012. That same day, Dr. Couch rehired her as a nurse practitioner under him. While working for both doctors, Parker knowingly and intentionally conspired to prescribe various Controlled Substances outside the usual course of professional practice and not for a legitimate medical purpose. This included the prescribing of Subsys and Abstral — both of which are brand name forms of instant release fentanyl, a Schedule II Controlled Substance.
During the recent trial of Dr. Ruan and Dr. Couch, Parker testified that she regularly saw patients on her own without oversight from either doctor. Parker further admitted that she often went to fellow nurse practitioner and co-defendant Justin Palmer and requested that he forge Dr. Couch’s signatures on prescriptions for Controlled Substances. In addition, Parker admitted, and other evidence corroborated, that she was abusing drugs in the office and was frequently impaired while seeing patients.Based on her substantial assistance, including her testimony in the trial against Dr. Ruan and Dr. Couch, Parker received a 50% sentence reduction recommendation from the United States. The Court accepted this recommendation, and then sentenced Parker to serve 20 months in federal prison for her criminal actions.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “The United States appreciates Ms. Parker’s substantial assistance in the prosecution of Dr. Ruan and Dr. Couch. Had she not assisted as she did, Ms. Parker would undoubtedly be spending more than 20 months in federal prison. Dr. Ruan and Dr. Couch could not have operated their criminal enterprise to the degree they did without the active assistance of Ms. Parker.”
The Drug Enforcement Agency echoed this sentiment: “It is disheartening when trusted professionals like nurse practitioners are engaged in the diversion of controlled substances,” said DEA Assistant Special Agent in Charge Bret Hamilton. “All DEA Registrants have an obligation to ensure that medications are getting into the hands of legitimate patients. Any registrant who violates or blatantly ignores their obligations will be held accountable. The conviction and sentence of Bridgette Parker is a result of DEA’s continued commitment to hold accountable those who participate in illegally dispensing controlled substances in our communities.”
In addition, Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, noted that, “Today’s sentence is a reflection of the FBI’s commitment to ensure that our nation’s healthcare system provides safe and effective care to the community that it serves.”
This matter was jointly investigated by the DEA-Mobile and FBI-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
Federal Jury Convicts Two Businessmen on Fraud Charges for Falsifying Loan Documents on Ten-Acre Parcel of Land in AuroraRead the Press Release
CHICAGO — Two businessmen have been convicted on bank fraud charges for falsifying loan documents to prevent foreclosure on a nearly $2 million parcel of land in Aurora. The fraud left one couple out of $450,000, and an elderly couple out of $300,000.
KEVIN LEBEAU, 55, of Aurora, was found guilty of three counts of bank fraud and four counts of making false statements to a federally insured bank. BRIAN BODIE, 66, of Chicago, was convicted on three counts of bank fraud and three counts of making false statements to a federally insured bank. Each count carries a maximum sentence of 30 years in prison.
The jury returned the verdicts on Thursday after an eight-day trial in federal court in Chicago. U.S. District Judge Robert W. Gettleman has not yet scheduled sentencing hearings.
The convictions were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
Evidence at trial revealed that LeBeau and Bodie orchestrated a fraud scheme involving a $1.9 million loan from Amcore Bank. The bank in 2004 mortgaged a 10.4-acre property in Aurora to LeBeau and Bodie after the pair executed a full personal guarantee for the loan. By the fall of 2005 LeBeau and Bodie had failed to make the required loan payments, and foreclosure became imminent. In an effort to delay foreclosure, LeBeau and Bodie submitted fraudulent and fabricated information about the progress of efforts to develop the property.
Eventually the foreclosure occurred, and the property was sold in 2010 at a significant loss to the bank and several individual investors who had pledged their own money into the project. LeBeau and Bodie told the individual investors that their money would be used to develop a mixed-use development on the property. The individual victims included a couple that lost $450,000, and an elderly couple who lost $300,000. LeBeau and Bodie used some of the elderly couple’s money for business expenses and to make payments to the bank.
The government is represented by Assistant U.S. Attorneys Kartik K. Raman and Amarjeet S. Bhachu.
Federal Jury Convicts Three Florida Residents in Staged Automobile Accident Fraud Conspiracy in MichiganRead the Press Release
The Fraud Ring Operated Three Therapy Clinics in Michigan from 2012 to 2015
GRAND RAPIDS, MICHIGAN —Belkis Soca-Fernandez, 47, and David Sosa-Baladron, 41, of Tampa, Florida, and Antonio Ramon Martinez-Lopez, 35, of Port Richey, Florida, were convicted in federal court after a seven-day jury trial of conspiracy to commit mail fraud related to a staged automobile accident ring that operated in West Michigan from 2012 to 2015. The defendants face up to 20 years’ imprisonment and will be ordered to pay restitution to the automobile insurance companies that were defrauded. These defendants are the latest of eight individuals convicted related to the conspiracy. Previously convicted were: Gustavo Acuna-Rosa, 29, and, Eduardo Pardo-Oiz, 34, formerly from Lansing; Dolis Rojas-Lopez, 31, of Wyoming; Yosvany Gonzalez-Duran, 41, of Lansing and Yoisler Herrera-Enriquez, age 31, a massage therapist from Wyoming, Michigan.
"This staged automobile accident ring operated a sophisticated fraud over several years in our community," stated Acting U.S. Attorney Andrew Birge. "The evidence at trial established that Soca-Fernandez and Sosa-Baladron led the conspiracy from Florida using Martinez-Lopez and others as their managers here in Michigan. Martinez-Lopez used others to recruit individuals to stage accidents and falsely claim that they were receiving therapy treatment. Soca-Fernandez and Sosa-Baladron made frequent trips to Michigan form Florida to make sure that fraudulent insurance claims were prepared and sent to the automobile insurance companies, to deposit insurance checks, and to withdraw in cash the proceeds from the fraud. Fortunately, West Michigan is not a safe haven for scam artists. My office vigorously pursues and prosecutes those who cheat our financial and insurance programs."
The staged automobile accident ring operated three therapy clinics, Revive Therapy Center and HH Rehab Center, in Wyoming, Michigan, and Renue Therapy Center in Lansing, Michigan, from April 2012 to May 2015. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to a physician affiliated with the ring so that she would sign a prescription for physical therapy. The accident participants would then seek unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants would sign blank therapy treatment forms that would be signed by massage therapists to make it appear as if the accident participants were obtaining treatment when they truly were not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided.
"Criminal groups often believe they are employing ingenious techniques to cheat the system," explained Steve Francis, Acting Special Agent in Charge of Homeland Security Investigations, Detroit Field Office. "Sadly, we all suffer the consequences when higher rates get passed on to the consumers due to the increased costs of business. HSI will continue to aggressively target these schemes."
"Health care fraud results in economic consequences that impact every American", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "These convictions reinforce the resolve of the FBI, the U.S. Department of Homeland Security-HIS Investigations, and the U.S. Attorney’s Office, Western District of Michigan to bring criminals, like those convicted in this case, to justice for their crimes."
Belkis Soca-Fernandez, David Sosa-Baladron, and Antonio Ramon Martinez-Lopez, will be sentenced by U.S. District Court Judge Paul L. Maloney at a sentencing hearing yet to be scheduled. The investigation of the case was handled by the Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan. Assistant U.S. Attorneys Ronald M. Stella and Timothy VerHey handled the trial of this case.
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Drug Counselor Under Contract with U.S. Probation and Pretrial Services and Supervisee Indicted for Conspiring to Obstruct JusticeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted licensed drug counselor Jennifer Hamersky, a/k/a Jennifer Maroney and Jennifer Hurt, age 33, of Severn, Maryland, and Anthony Evans Owings Seen, a/k/a Tony, age 31, of Glen Burnie, Maryland, for conspiring to conceal alleged violations of pretrial release by one of Hamersky’s clients. The indictment was returned on March 16, 2017.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; William F. Henry, Chief, U.S. Probation and Pretrial Services Office, District of Maryland; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to the seven-count indictment, Hamersky is a licensed Clinical Professional Addictions Counselor in Maryland. Hamersky’s employer is contracted to provide mental health and substance abuse assessments and counseling, and urinalysis testing, for pretrial offenders and supervised release defendants under the supervision of the United States Probation and Pretrial Services Office (USPO) in Maryland. Seen, who is on supervised release under the supervision of USPO, met Hamersky in August 2015, when she conducted Seen’s initial substance abuse diagnostic assessment for USPO.
Hamersky served as Person A’s pretrial release substance abuse and mental health counselor from September 2015 through February 2016, and again from August 2016 through February 2017, with a break due to Person A’s incarceration. Hamersky was responsible for communicating Person A’s compliance with pretrial release conditions of counseling and urinalysis testing to USPO.
The indictment alleges that Hamersky and Seen conspired to, and obstructed justice in an effort to conceal from USPO officers and U.S. Magistrate and District Court Judges, Person A’s violations of his conditions of release. The violations alleged in the indictment include: use of narcotic drugs or other controlled substances; failure to appear for urinalysis testing; and failure to appear for counseling sessions.
Specifically, the indictment alleges that Hamersky included false information and material omissions in Person A’s monthly treatment reports which were submitted to USPO, and that she provided false information to Person A’s attorney and USPO regarding Person A’s compliance with conditions of release. Hamersky allegedly forged or caused to be forged the initials of the company urinalysis collector on reports in order to make it appear that Person A had participated in urinalysis testing, when in fact, he had not. In addition, the indictment alleges that Hamersky falsely represented to the company urinalysis collector that Person A’s USPO officer had authorized Person A’s removal from the urinalysis testing list, and had authorized Hamersky to collect urinalysis samples from Person A. According to the indictment, Seen also obtained Person A’s signature on reports to make it appear that Person A had attended urinalysis testing and counseling sessions, when in fact, Person A had not attended the testing or sessions.
According to the indictment, from October 2015 through at least February 2016, while Person A was under Hamersky’s supervision, Hamersky and Person A engaged in repeated sexual encounters, and used narcotic drugs or other controlled substances together. While Person A was incarcerated, Hamersky allegedly purchased, and delivered to the detention facility electronics, clothing, and other items for Person A’s benefit. The indictment alleges that Hamersky also paid for and caused money orders to be sent for the purchase of narcotic drugs or other controlled substances used by Person A while he was incarcerated. After Person A’s release from detention in May 2016, Hamersky and Person A allegedly ceased their sexual encounters, although Hamersky continued to counsel Person A as part of his conditions of pretrial release. The indictment also alleges that from September 2016 through February 2017, Hamersky and Seen had a sexual relationship.
Hamersky and Seen each face a maximum sentence of five years in prison for the conspiracy; a maximum of 20 years in prison for each count of obstruction of justice; and a maximum of five years in prison for each count of making a false document. Hamersky also faces a maximum of five years in prison for making a false statement. The defendants each had an initial appearance this afternoon in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, USPO, and DEA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Rachel Miller Yasser, who are prosecuting the case.
Doctor Sentenced to Seven Years in Prison for Health Care FraudRead the Press Release
SAN JUAN, P.R. – Doctor Juan José Tull-Abreu was sentenced to serve 63 months of imprisonment for health care fraud, and a consecutive term of 24 months for aggravated identity theft, for a total term of imprisonment of 87 months, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
Doctor Tull-Abreu was arrested on July 17, 2014, on charges of defrauding Medicare by submitting claims to Medicare Advantage health insurance plans for medical services never rendered. The evidence presented at trial showed that Tull-Abreu submitted thousands of false and fraudulent claims for services allegedly performed by the defendant at his Arecibo and Utuado, Puerto Rico, offices, which were, in fact, never performed. As explained by the witnesses from Medicare and the insurance carriers, Tull-Abreu submitted invoices for face-to-face office visits and face-to-face home visits on days when his office remained closed to the public or the defendant was travelling out of the country. The defendant was convicted on April 15, 2016, after a fourteen-day jury trial.
The evidence presented at trial demonstrated that Tull-Abreu caused a loss of over $1,200,000.00 to Medicare. Consequently, at sentencing, U.S. District Judge Jay García-Gregory ordered the defendant to pay a total of $509,775.20 in restitution to the six Medicare Advantage insurance carriers affected by the fraudulent scheme.
“We are pleased with the sentence imposed by the Court in this case,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “This prosecution and sentence should serve as clear message to those few dishonest members of the medical community in Puerto Rico of the stern consequences they will face for defrauding the Medicare program. We will not sit idly and allow doctors to illegally enrich themselves by engaging in fraudulent schemes that deplete the Medicare program of funds destined to assist and protect the elderly.”
The Department of Health and Human Services, Office of Inspector General was in charge of the investigation with the collaboration of the DEA. The case was prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones.
District Man Sentenced to Thirteen Years in Prison for Leading Narcotics ConspiracyRead the Press Release
WASHINGTON – Demetrius Muschetta, 33, of Washington, D.C., was sentenced today to a prison term of thirteen years stemming from his leadership role in a narcotics conspiracy that operated in the District of Columbia and Maryland. He is among 16 people to plead guilty following an investigation that led to the seizure of kilograms of narcotics, firearms, and cash.
The sentence was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Rod J. Rosenstein, U.S. Attorney for the District of Maryland; Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD), Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department; Robert D. MacLean, Chief of the United States Park Police, and Robert Turner, Acting U.S. Marshal for the U.S. District Court for the District of Columbia.
Muschetta pled guilty in November 2016, in the U.S. District Court for the District of Columbia, to a charge of conspiracy to distribute and possess with the intent to distribute a kilogram of heroin, 500 grams of cocaine, and 280 grams of cocaine base, and a charge of possession with the intent to distribute a kilogram of heroin. The plea, which was contingent upon the Court’s approval, called for a prison sentence of 11 to 13 years on each charge, with the sentences to run concurrently. The Honorable Chief Judge Beryl A. Howell accepted the plea today and sentenced the defendant accordingly. Following his prison term, Muschetta will be placed on five years of supervised release. He also must pay a forfeiture judgment of $237,336.
The Government’s evidence established that in January 2015, the FBI/MPD Safe Streets Task Force began a long-term investigation of a narcotics enterprise involving Muschetta and Myron Williams that primarily focused in the Barnaby Terrace area of Southeast Washington, and extended into Maryland. The investigation revealed that Muschetta and Williams were partners in a drug business and purchased kilogram amounts of cocaine and heroin from multiple sources, including Ricco Johnson and William Winter, and then in turn supplied it to other co-defendants for eventual distribution. According to the government’s evidence, Muschetta exercised decision-making authority by determining the price of the narcotics and controlled the supply of the drugs to other co-conspirators.
In addition to numerous recorded telephone calls and text messages that revealed the role of the narcotics enterprise, law enforcement seized large amounts of narcotics, firearms, and U.S. currency, especially from Muschetta. On May 6, 2015, law enforcement stopped Muschetta in District Heights, Md., and recovered from his vehicle three kilograms of heroin. Later that evening, law enforcement executed a search warrant at Muschetta’s residence in Washington, D.C. and recovered additional kilograms of narcotics, including crack cocaine drying on the windowsill, and three separate firearms in an area where small children resided. During subsequent search warrants of the co-defendants’ residences, law enforcement recovered additional quantities of narcotics, firearms, narcotics paraphernalia, and large amounts of cash.
Over the past 18 months, Chief Judge Howell has also accepted felony pleas from 15 others charged in the case. They include Myron Williams, 40, of Oxon Hill, Md.; Ricco Johnson, 40, of Brandywine, Md., and William Winter, 39, of Suitland, Md. Williams earlier was sentenced to a nine-year prison term for his role in the conspiracy. Johnson and Winter earlier were sentenced to five-year prison terms.
The others who have pled guilty include: Chaka Al-Fatah, 37, of Washington, D.C.; Andre Arrington, 34, of Washington, D.C.; Tijuan Arrington, 40, of Washington, D.C.; Donovan Bostick, 32, of Washington, D.C.; Tamara Davies-Henry, 28, of Oxon Hill, Md.; Donnell Ennels, 41, of Washington, D.C.; Earica Hamilton, 34, of Washington, D.C.; Rodney Jones, 22, of Washington, D.C.; Kyree Mitchell, 20, of Washington, D.C.; Kevin Morris, 43, of Washington, D.C.; Jonathan Taylor, 33, of Washington, D.C., and Don Whitaker, 22, of Washington, D.C.
The 16 defendants were arrested after months of investigation by the FBI/MPD Safe Streets Task Force, which is comprised of agents from the FBI, the Metropolitan Police Department, the Prince George’s County Police Department, the United States Park Police, and the United States Marshals Service. The Department of Justice’s Organized Crime Drug Enforcement Task Force sponsored and supported this complex investigation
In announcing the conclusion of the government’s prosecution, U.S. Attorney Phillips, U.S. Attorney Rosenstein, Assistant Director in Charge Vale, Acting Chief Newsham, Chief Stawinski, Chief MacLean, and Acting Marshal Turner commended the work of the D.C. Safe Streets Task Force. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Anthony Scarpelli and Christopher Macchiaroli of the Violent Crimes and Narcotics Trafficking Section; Assistant U.S. Attorney Zia Faruqui and Special Assistant U.S. Attorney Kyle Bateman of the Asset Forfeiture and Money Laundering Section; former Assistant U.S. Attorneys John Han and Todd Gee; Paralegal Specialists Candace Battle, Mary Downing, Teesha Tobias, Catherine O’Neal, and Toni Anne Donato, and Legal Assistants Brendan Coyne, Diane Brashears, and Latoya Wade. They also commended those who worked on the case from the U.S. Attorney’s Office for the District of Maryland including Assistant U.S. Attorney Matthew Sullivan, who prosecuted the Maryland portion of Muschetta’s narcotics seizure prior to the charges being transferred to Washington, D.C. for resolution before Chief Judge Howell.
District Man Sentenced to 14 Years in Prison for Sexually Assaulting His Two Daughters and Threatening Special Police OfficersRead the Press Release
WASHINGTON – A 34-year-old man, of Washington, D.C., was sentenced today to 14 years in prison after earlier pleading guilty to first-degree child sexual abuse of his 14-year-old daughter and attempted first-degree child sexual abuse of his 12-year-old daughter, as well as attempted possession of a prohibited weapon and threats charges against two Special Police Officers, U.S. Attorney Channing D. Phillips announced.
The man, who is not identified here to protect the privacy of the victims in the sexual assault case, pled guilty in January 2017 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a sentence of 14 years in prison. The Honorable José M. Lopez accepted the plea today and sentenced the defendant accordingly. Following his prison term, the man will be placed on 10 years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s investigation in the sexual assault case, the defendant had sexually abused his older daughter several times in the past year, while he had been sexually abusing his younger daughter since she was approximately eight years old. On one occasion that took place on or around Sept. 1, 2016, the defendant penetrated his older daughter’s vagina with his penis while they were at her mother’s home. On another occasion, which took place on or about Oct. 2, 2016, the defendant was at their mother’s home when he had his younger daughter perform oral sex on him. The defendant asked his younger daughter if she “liked” performing oral sex, to which she responded, “No.” The defendant then met with both daughters and apologized to them for his actions. It was then that the girls learned they were both victims of the defendant’s sexual abuse. The girls then decided to disclose the incidents to their aunt, ultimately leading to the defendant’s arrest.
In the defendant’s other case, the government’s investigation revealed that the defendant had been barred from a homeless shelter in Northeast Washington on April. 29, 2016. The defendant entered the shelter on Aug. 29, 2016, and was immediately told by two Special Police Officers to leave the facility. The defendant left but returned moments later, at which point he pulled out a knife and threatened to fight and stab the Special Police Officers. After the Special Police Officers ordered the defendant several times to put down the knife, the defendant walked up the street, at which point an officer from the Metropolitan Police Department (MPD) stopped the defendant and placed him under arrest.
In announcing the sentence, U.S. Attorney Phillips praised the work of detectives from the Metropolitan Police Department’s Youth Investigations Division, which investigated the sexual-assault case, and members of the MPD’s Fifth District who were involved in the threats case. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Angelina Slagle and Victim/Witness Advocate Lezlie Richardson. Finally, he commended Assistant U.S. Attorneys Danny Nguyen and Maryam Adeyola, who investigated and prosecuted this case.
Director of Hercules Medical Office Pleads Guilty to Tax EvasionRead the Press Release
SAN FRANCISCO – Christine Hill pleaded guilty today to tax evasion announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The plea agreement was accepted by the Hon. Richard Seeborg, U.S. District Judge, following the filing of an information in which Hill was charged with tax evasion.
Hill, 54, of Vallejo, pleaded guilty to knowingly and willingly filing a fraudulent 2010 U.S. Individual Income Tax Return, Form 1040. According to the plea agreement, Hill is the Director of Operations at John Compagno, MD, Inc., with offices in Hercules, Calif. She is responsible for the payroll including collecting time sheets and processing paychecks. Hill acknowledged she knew that bonus payments are subject to federal income tax withholding and that she processed numerous bonus checks for herself and other employees in which federal taxes were withheld and bonus payments were reported on IRS Forms W-2. Nevertheless, Hill also admitted she received additional year-end bonus payments from at least 2003 through 2011. These bonus payment checks were paid to Hill directly and not processed through the payroll account. Because the extra bonus payments were not processed through the payroll account, they were not reported on IRS Forms W-2 and therefore not reported to the IRS.
In addition, Hill’s spouse received payments from John Compagno, MD, Inc. for repairs, maintenance, and construction work he did for the company for the period of 2004 through 2011. John Compagno, MD, Inc. did not issue Forms 1099 for those services. For the period of 2003 through 2011, Hill omitted income from additional bonuses and payments to her spouse in the amount of $122,391. This resulted in additional tax due of $35,566.
On March 1, 2017, Hill was charged with tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, Hill pleaded guilty to the charge in the one-count information. Judge Seeborg scheduled a hearing for sentencing on June 20, 2017. The maximum sentence for a violation of 26 U.S.C. § 7201 is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Dayton Man Sentenced for Cocaine PossessionRead the Press Release
DAYTON – Keon Rutledge, 35, of Dayton, was sentenced in U.S. District Court to 90 months in prison for possession with the intent to distribute more than 500 grams of cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Montgomery County Sheriff Phil Plummer and other members of the Sheriff’s RANGE Task Force, Clinton County Sheriff Ralph D. Fizer, Jr. and members of the Miami Valley Bulk Cash Smuggling Task Force announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to the Statement of Facts in this case, on May 4, 2016, Rutledge received nearly 2,000 grams of cocaine at a business located on Salem Avenue in Dayton, and that was within 1,000 feet of a private middle school. A second search warrant was executed at Rutledge’s home on Riverview Terrace, where a bulletproof vest, an additional amount of cocaine and firearms were recovered. These items were forfeited, along with $2,300 in cash.
Rutledge pleaded guilty on December 7, 2016 to one count of possession with intent to distribute 500 grams or more of cocaine.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Assistant United States Attorney Andrew J. Hunt who is representing the United States in this case.
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Davenport Man Sentenced to 188 Months in Prison for Crack Cocaine DistributionRead the Press Release
DAVENPORT, IA - On March 17, 2017, Corey Anthony Jones, heather Jean Reekr28, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 188 months in prison for possession with the intent to distribute 28 grams or more of a mixture or substance containing cocaine base, announced United States Attorney Kevin E. VanderSchel. Jones was ordered to serve a four-year term of supervised release following his imprisonment and to pay $100 towards the Crime Victims’ Fund.
Between May 2, 2016, and May 9, 2016, Jones distributed crack cocaine on three separate occasions. On May 9, 2016, law enforcement officers found and seized approximately 66 grams of crack cocaine from a vehicle driven by Jones. That same day, officers obtained a search warrant for Jones’ Davenport residence and seized approximately 38 grams of powder cocaine and items consistent with the manufacture of crack cocaine. On October 19, 2016, Jones pleaded guilty and admitted he knowingly possessed the crack cocaine found on May 9, 2016, in the vehicle and intended to distribute some or all of the crack cocaine to others.
This matter was investigated by the Davenport Police Department’s Tactical Operations Bureau, the Davenport Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by either calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]