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27 April 2017
Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. ComponentsRead the Press Release
Lim Yong Nam, aka Steven Lim, 43, a citizen of Singapore, was sentenced today to 40 months in prison for his role in a conspiracy that caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran, at least 14 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Secretary of Export Enforcement Richard Majauskas for the U.S. Department of Commerce, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division. The sentence was issued by the Honorable Emmet G. Sullivan.
Lim was extradited in 2016 from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty on Dec. 15, 2016, to a charge of conspiracy to defraud the U.S. by dishonest means. Lim will be deported upon completion of his sentence.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed in the case, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In a statement of offense submitted at the time of the guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution was handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Singapore Man Sentenced to 40 Months in Prison for Plot Involving Exports to Iran of U.S. ComponentsRead the Press Release
WASHINGTON – Lim Yong Nam, aka Steven Lim, 43, a citizen of Singapore, was sentenced today to 40 months in prison for his role in a conspiracy that caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran, at least 14 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Acting Assistant Secretary of Export Enforcement Richard Majauskas of the U.S. Department of Commerce, Acting Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE), and Assistant Director Bill Priestap of the FBI’s Counterintelligence Division. The sentence was issued by the Honorable Emmet G. Sullivan.
Lim was extradited in 2016 from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty on Dec. 15, 2016, to a charge of conspiracy to defraud the U.S. by dishonest means. Lim will be deported upon completion of his sentence.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed in the case, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In a statement of offense submitted at the time of the guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution was handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Seven Members of Bronx Drug Trafficking Organization Charged in Federal Court with Narcotics TraffickingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James G. Hunt, Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging seven members of the “MMOB” drug trafficking organization with participating in a narcotics trafficking conspiracy. The case has been assigned to United States District Judge Paul G. Gardephe. Six of the defendants are currently in custody, and were presented before United States Magistrate Judge Kevin Nathaniel Fox later this afternoon.
Acting Manhattan U.S. Attorney Joon H. Kim said: “With today’s indictment of seven alleged members of a drug trafficking organization, we seek to stem the flow of drugs and the havoc they wrought on the Norwood neighborhood of the Bronx. As the Indictment alleges, these defendants trafficked in all types of drugs, including crack cocaine, cocaine, oxycodone and marijuana, and peddled them on the streets, by delivery, and out of apartment buildings in the area. I thank our partners at the NYPD and DEA for their continued commitment to combatting drug trafficking and making our city safer.”
Special Agent in Charge James J. Hunt said: “Law enforcement’s collaboration since last summer has led to the indictments of members of the MMOB crew on narcotics conspiracy charges. The Norwood section of the Bronx has been plagued by these individuals for some time and today’s efforts are a step in reclaiming this neighborhood for the community. These gang members allegedly trafficked a myriad of drugs to include strong prescription narcotics, which is a focus of our current investigative efforts, as these drugs are causing serious issues for our citizens.”
Police Commissioner James P. O’Neill said: “This indictment is another example of the NYPD’s commitment to hold responsible those who distribute narcotics into our communities. I commend the work of the NYPD investigators involved and our federal partners who continue to work tirelessly to protect our communities.”
As alleged in the Indictment and in other court papers[1]:
The MMOB crew (“Mosholu Money Over Bitches”) is a group of individuals who are engaged in narcotics trafficking in the vicinity of Gates Place, Knox Place, and Mosholu Parkway, in the Norwood neighborhood of the Bronx (the “MMOB DTO”). From July 2016 up to April 2017, in the Southern District of New York and elsewhere, JOSHUA PEREZ a/k/a “Link,” JAVIER COLLAZO, HIRAM COLLAZO, a/k/a “Alex, NATALIE JUSINO, KEVIN MIESES, AMAURY MODESTO, and ANDREW PEREZ conspired to distribute significant amounts of narcotics, including crack cocaine, cocaine, oxycodone, and marijuana, in and around the Norwood neighborhood of the Bronx, on a daily basis. The MMOB DTO controlled narcotics sales between Gates Place and Knox Place, primarily between Mosholu Parkway and West Gun Hill Road, including by selling on the streets and in and around apartment buildings in that area.
Each defendant is charged with one count of conspiracy to distribute narcotics, which carries a maximum sentence of life in prison. 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. A chart with the defendants’ ages and residences is below.
All of the defendants except for JOSHUA PEREZ, who remains at large, are in custody.
Mr. Kim thanked the DEA and the NYPD for their work on the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Eli J. Mark and Jilan J. Kamal are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
RESIDENCE
JOSHUA PEREZ a/k/a “Link”
30
Bronx, New York
JAVIER COLLAZO
20
Bronx, New York
HIRAM COLLAZO, a/k/a “Alex”
19
Bronx, New York
NATALIE JUSINO, a/k/a “Papo”
34
Bronx, New York
KEVIN MIESES
25
Bronx, New York
AMAURY MODESTO
37
Bronx, New York
ANDREW PEREZ
24
Bronx, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described should be treated as an allegation.
Seven Baltimore Men Indicted in Federal Drug Conspiracy Related to 2014 Murder of Mckenzie ElliottRead the Press Release
Gang Member Allegedly Shot and Killed Three-Year-Old Girl in Turf Battle; Authorities Aim to “Catch the Killer and Dismantle his Gang”
Baltimore, Maryland – A federal grand jury has returned an indictment charging seven alleged members of the Old York Money Gang, an alleged drug trafficking organization (DTO) operating in the Waverly Way section of Baltimore, with conspiracy to distribute and possess with the intent to distribute controlled substances. One defendant is charged with using a gun to kill an innocent bystander. The indictment was returned on April 25, 2017, and unsealed today upon the arrest of the defendants.
The indictment charges the following defendants, all of Baltimore:
Terrell Plummer, a/k/a Rell, age 28; Davonte Rich, a/k/a Chopper, age 22;
Trevon Beasley, a/k/a Tre, age 23;
Tyrone Jamison, a/k/a Ty, age 23; Davin Lawson, a/k/a D, age 25; Calvin Watson, a/k/a Monster, age 26; and
Tyron Brown, a/k/a Boobie, age 26.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
“Exceptional police officers and prosecutors worked tirelessly and creatively to catch the killer and dismantle his gang because they care about saving lives,” said U.S. Attorney Rod J. Rosenstein. “The indictment alleges that an armed drug dealer killed McKenzie Elliott, which is no surprise because most murders in Baltimore are committed by armed drug dealers who belong in prison.”
“The loss of any life is heartbreaking to a family member, but to see this level of callous disregard for human life, especially when it leads to the loss of an innocent child, is wholly unacceptable,” said ATF Baltimore Special Agent in Charge Daniel L. Board. “ATF will remain steadfast in our partnerships with the Baltimore City Police Department and the USAO to combat these blatant and vicious attacks against our communities.”
"This case rocked not only the Waverly community, but the entire city of Baltimore," said Baltimore Police Commissioner Kevin Davis. "McKenzie should be in school, running around with her friends and doing everything a six-year-old does, but instead, her life was cut short by a coward with a gun. This case exemplifies the strength of our federal partnerships and our resolve to go after those who choose to harm citizens, especially our most vulnerable."
According to the 16-count indictment, the defendants were members and associates of the Old York Money Gang (OYMG), a violent drug trafficking organization operating in the Waverly Way neighborhood in the northeastern district of Baltimore since January 2014. Crimes committed by the gang include murder, robbery, extortion, burglary, and narcotics trafficking. A neighborhood gang, OYM generally limits its membership to persons that originate from or live in the Waverly Way neighborhood, and excludes outsiders. The gang represents their association through social and digital media in which members and associates identify themselves by hand signals forming the letters “OY” or written labels of “Old York Money Gang” or OYMG.
The indictment alleges that the defendants sold heroin, powder and crack cocaine, and marijuana in their territory in Waverly Way and elsewhere. The defendants and their associates controlled, maintained, and defended drug territories called “shops” and permitted only OYMG members to sell drugs in these shops. Any non-OYMG members who wished to distribute drugs in these shops would be violently attacked. The defendants agreed to defend their territory. In order to maintain and increase their power, they agreed to commit murder and assaults against anyone who posed a threat to their organization or who invaded their territory.
In the summer of 2014, Plummer allegedly carried a firearm defend OYMG territory and collect drug debts. On July 31, 2014, Plummer, Rich and other OYMG members allegedly violently attacked three victims who had entered OYMG territory to support a friend who was engaged in a dispute with the sister of an OYMG member. In this incident, an OYMG member stabbed one of these victims.
The three victims returned to the same OYMG drug shop on August 1. In order to protect OYMG territory, Plummer allegedly shot multiple rounds at the vehicle carrying the three victims. One of the rounds hit a victim in the head but did not kill him. Another bullet missed the three victims and killed a three year-old girl named McKenzie Elliott.
If convicted, the defendants each face a maximum sentence of 40 years in prison for the drug conspiracy. Plummer faces a maximum sentence of death or life in prison for possession of a firearm in furtherance of a drug trafficking conspiracy in which death results and a maximum of life imprisonment in prison for using, brandishing, and discharging a firearm during a drug trafficking crime. Beasley, Lawson, Jamison, Watson, Plummer, and Brown also face a maximum of 20 years in prison for each count of distribution of heroin, powder cocaine and/or crack cocaine. Rich also faces a maximum of 5 years in prison for distribution of marijuana. The defendants are expected to have an initial appearance later today 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 ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys David Metcalf and Robert R. Harding, who are prosecuting the case.
Sentencings for April 24 - April 26, 2017Read the Press Release
Juan Armando Garcia-Paez, 38, of La Mirada, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 26, 2017, for conspiracy to distribute 32 pounds of methamphetamine. Garcia-Paez was arrested in Sundance, Wyoming. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $2,400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation, the Wyoming Highway Patrol and the U.S. Drug Enforcement Administration.
Carl Vannatter, 30, of Bismarck, North Dakota, was sentenced by Federal District Court Judge Alan B. Johnson or April 26, 2017, for possession with intent to distribute 50 grams or more of methamphetamine. Vannatter received 60 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Wyoming Highway Patrol.
Jason Michael Nathey, 37, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 25, 2017, for being a felon in possession of a firearm. Nathey was arrested in Cheyenne, Wyoming. He received 18 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Anthony C. Carlson, 22, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 25, 2017, for possession of child pornography. Carlson was arrested in Cheyenne, Wyoming. He received 36 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution in this matter will be determined at a later date. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the U.S. Department of Homeland Security.
Michael Jimmy Hanway, 53, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 24, 2017, for mail fraud. Hanway was arrested in Riverton, Wyoming. He received five years of supervised probation and was ordered to pay a $100.00 special assessment and $62,500.00 in restitution. This case was investigated by the U.S. Department of Agriculture, Office of Inspector General-Investigations.
Garrett Blackburn, 24, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 24, 2017, for attempted robbery. Blackburn was arrested in Florence, Colorado. He received 60 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $653.04 in restitution. This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Uvaldo Lopez-Trejo, 28, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 24, 2017, for illegal re-entry of a previously deported alien into the United States. Lopez-Trejo was arrested in Douglas, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Schneider Sentenced for Federal Hate Crime Based on Victim’s Sexual OrientationRead the Press Release
BOISE – Kelly Schneider, 23, of Nampa, Idaho, was sentenced today in U.S. District Court to 336 months in prison, five years of supervised release and a $5,000 fine based on his guilty plea to violently assaulting Steven Nelson because he was a gay man, resulting in Mr. Nelson’s death, announced Acting Assistant Attorney General Tom Wheeler, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Rafael M. Gonzalez, Jr., for the District of Idaho.
Schneider was indicted by a federal grand jury on January 10, 2017, with one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act. He pleaded guilty to the charge on February 7, 2017. He was sentenced today by Chief U.S. District Court Judge B. Lynn Winmill.
“Kelly Schneider assaulted and killed a man because of the man’s sexual orientation,” said Acting Assistant Attorney General Wheeler. “This is a federal crime, and the Department of Justice will continue to work with our federal and state law enforcement partners to enforce our federal hate crimes laws.”
“Steven Nelson was assaulted and later died because he was gay,” said Gonzalez. “This is precisely the kind of bias motivated violence that the Shepard-Byrd Hate Crimes Prevention Act was passed to address. I commend the federal and local prosecutors and investigators who brought the defendant to justice.”
According to the plea agreement, on the evening of April 27, 2016, Schneider posted a solicitation for sex on backpage.com, an Internet website, which included a shirtless photo of himself. Mr. Nelson responded to that posting, and Schneider met with him the next evening. Schneider took Mr. Nelson’s money without engaging in any sexual act with Mr. Nelson. Before the encounter, Schneider told his friends that he was not gay and would not let anyone who was gay touch him.
In the early morning hours of April 29, Schneider resumed communication with Mr. Nelson. Schneider then conspired with other individuals to again rob Mr. Nelson. According to the plan, Schneider was to meet up with Mr. Nelson in a parking lot and ask Mr. Nelson to drive to Gott’s Point, an isolated wildlife area in the Deer Flat Wildlife Refuge near Lake Lowell, for a sexual encounter. At Gott’s Point, Schneider would rob Mr. Nelson, and two of Schneider’s cohorts would be lying in wait as “back up” to assist Schneider if Mr. Nelson resisted the robbery.
When Schneider and Mr. Nelson reached Gott’s Point, Schneider immediately began physically assaulting Mr. Nelson, kicking him 20-30 times with steel-toed boots and repeatedly using a homophobic slur. Mr. Nelson never resisted throughout the attack. He died of his injuries later that day. No one else participated in the assault.
Schneider was sentenced earlier this month in state court for first degree murder based on Mr. Nelson’s death. The state court sentenced him to a fixed 28-year term of imprisonment and life indeterminate. Schneider’s federal sentence will be served concurrently to the state sentence.
The Canyon County Sheriff’s Office, with assistance from the Treasure Valley Metro Violent Crime Task Force, conducted the murder investigation. The FBI conducted the federal hate crime investigation.
Saturday is Prescription Drug Take Back Day, with 270 locations in OhioRead the Press Release
Addictive prescription drugs that are thrown away or left untended on shelves and in drawers at home are often stolen and either abused or sold by family members and visitors. That’s why the DEA and thousands of its state, local, and tribal law enforcement and community partners are holding another Prescription Drug Take Back Day this Saturday, April 29, from 10 A.M. to 2 P.M., at over 5,000 sites around the country, including more than 270 sites in Ohio.
The service is free of charge, no questions asked.
America is experiencing an epidemic of addiction, overdose, and death due to abuse of prescription drugs, particularly opioid painkillers. More than 6.4 million Americans age 12 and over -- 2.4 percent of the population -- abuse prescription drugs, according to the 2015 National Survey on Drug Use and Health released last fall. That’s more than abuse cocaine, heroin, hallucinogens, and methamphetamine combined.
Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The majority of prescription drug abusers report that they obtain their drugs from friends and family, including from the home medicine cabinet.
Last October, Americans turned in 366 tons (over 730,000 pounds) of prescription drugs at almost 5,200 sites operated by the DEA and more than 4,000 of its state and local law enforcement partners. Overall, in its 12 previous Take Back events, DEA and its partners have taken in over 7.1 million pounds -- more than 3,500 tons -- of pills.
The public can find a nearby collection site at DEA.GOV and click on the “Take Back Day” box on the home page. You can also fine nearby collections sites by calling 800-882-9529. Only pills and other solids, like patches, can be brought to the collection sites—liquids, needles, or other sharps will not be accepted. This event will go on even if the Federal Government shuts down this weekend.
Sacramento Man Sentenced and Stockton Man Pleads Guilty in Separate Fraudulent Tax Refund CasesRead the Press Release
SACRAMENTO, Calif. — Today United States District Judge Troy L. Nunley sentenced a Sacramento man to two years in prison and a Stockton man pleaded guilty in two separate cases of conspiracy to submit false claims against the United States, U.S. Attorney Phillip A. Talbert announced.
“Identity theft schemes harm everyone, especially those which defraud the United States government and members of our community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Windon Jr., his co-conspirators and others like them, who create these elaborate schemes have no purpose other than to mislead others and defraud the IRS. IRS Criminal Investigation remains committed to combatting refund schemes such as this and will continue to devote resources to bring those responsible for such harm to justice.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, which worked with IRS CI in the Windom case, stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for fraud schemes committed against the public.”
United States v. Windom, et al., 2:15-cr-29
Lejohn Windon Jr., 24, of Sacramento, was sentenced to two years in prison. He is the fourth defendant to be sentenced in this case. According to court documents, Windon and his co‑conspirators Lejohn Windom Sr., Audrey Johnson, and Tracy Hartway submitted at least 682 tax returns to the IRS requesting a total of $1,989,803 in refunds. The IRS mailed at least $1,188,972 in refunds based on those fraudulent claims. In many cases, the defendants submitted the fraudulent tax returns without the knowledge or permission of the taxpayers whose names appeared on the returns. When the conspirators received the tax refund checks, they would forge the signatures of the taxpayers and cash the refund checks for themselves.
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On January 5, 2017, Lejohn Windom Sr. was sentenced by Judge Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS;
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On February 9, 2017, Audrey Johnson was sentenced by Judge Nunley to 16 months in prison and ordered to pay $213,725 in restitution;
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On February 26, 2017, Tracy Hartway was sentenced to 28 months in prison and ordered to pay $142,069 in restitution.
This case was the product of a joint investigation by the IRS Criminal Investigation and the United States Postal Inspection Service.
United States v. Grady et al., 2:15-cr-204
Christopher M. Grady, 35, of Stockton, pleaded guilty to conspiracy to submit false claims against the United States and aggravated identity theft. According to court documents, Grady and others submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds.
Charges are pending against Grady’s three co-defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the IRS Criminal Investigation.
Assistant United States Attorney Matthew G. Morris is prosecuting both cases.
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Rochester Man Pleads Guilty to Cocaine TraffickingRead 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 Yusef Blocker, 35, of Rochester, NY, pleaded guilty to possession with intent to distribute crack cocaine, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorneys Richard A. Resnick and Charles E. Moynihan, who are handling the case, said that on March 21, 2016, members of the United States Probation and Pre-Trial Services Office searched an apartment at 505 University Avenue in Rochester as part of their responsibilities while supervising Blocker. The defendant was convicted in 2005 of drug trafficking offenses in the Western District of New York. During the search, probation officers found drug paraphernalia, U.S. currency, and a quantity of crack cocaine.
The plea is the result of an investigation by the United States Probation and Pre-Trial Services Office, under the direction of Chief Probation Officer Anthony SanGiacomo; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt.
Sentencing is scheduled for August 8, 2017, at 10:15 a.m. before Judge Siragusa.
Rochester Man Pleads Guilty in Case Involving BitcoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Richard Petix, 32, of Rochester, NY, pleaded guilty to making material false statements and operating an unlicensed money transmitting business, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. The defendant is on a term of supervised release following a 2009 conviction for knowingly transporting child pornography in interstate commerce. As a condition of that supervision, Petix was required to notify his probation officer of any computers he used and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. As of October 20, 2015, the defendant told his probation officer that he did not use any computers or the Internet.
On December 3, 2015, Petix conducted a Bitcoin transaction with an undercover federal agent at a business in Buffalo, NY. Using his laptop computer and smartphone, the defendant transferred approximately $13,000 in the form of 37 bitcoins to an address specified by the agent. When confronted by federal probation officers at the scene, however, Petix claimed that the laptop and smartphone were not his and that he could not access them.
Between August, 2014, and December 3, 2015, Petix conducted over 100 Bitcoin transactions wherein he transferred over $200,000 in bitcoins to customers both locally and across the United States. At least some of these customers then used the bitcoins to purchase controlled substances from dark net vendors. At no time during this period did Petix comply with federal money transmitting business registration requirements.
Petix was scheduled to go to trial on May 1, 2017.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled August 14, 2017, at 9:15 a.m. before Judge Siragusa.
Rochester Man Pleads Guilty in Case Involving Bit CoinsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Richard Petix, 32, of Rochester, NY, pleaded guilty to making material false statements and operating an unlicensed money transmitting business, before U.S. District Judge Charles J. Siragusa. The charges carry a maximum penalty of five years in prison.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that Petix lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. The defendant is on a term of supervised release following a 2009 conviction for knowingly transporting child pornography in interstate commerce. As a condition of that supervision, Petix was required to notify his probation officer of any computers he used and, as triggered by impermissible or suspicious activity, consent to examinations of such computers. As of October 20, 2015, the defendant told his probation officer that he did not use any computers or the Internet.
On December 3, 2015, Petix conducted a Bitcoin transaction with an undercover federal agent at a business in Buffalo, NY. Using his laptop computer and smartphone, the defendant transferred approximately $13,000 in the form of 37 bitcoins to an address specified by the agent. When confronted by federal probation officers at the scene, however, Petix claimed that the laptop and smartphone were not his and that he could not access them.
Between August, 2014, and December 3, 2015, Petix conducted over 100 Bitcoin transactions wherein he transferred over $200,000 in bitcoins to customers both locally and across the United States. At least some of these customers then used the bitcoins to purchase controlled substances from dark net vendors. At no time during this period did Petix comply with federal money transmitting business registration requirements.
Petix was scheduled to go to trial on May 1, 2017.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled August 14, 2017, at 9:15 a.m. before Judge Siragusa.
Restaurant Owner Sentenced to 15 Years in Prison on Arson and Wire Fraud ChargesRead the Press Release
PROVIDENCE, R.I. –Daniel E. Saad, 51, of Spencer, Mass., today was sentenced to 15 years in federal prison for devising and executing a scheme to burn down his Glocester, R.I., restaurant, Snow’s Clam Box Restaurant and Pub, and then attempting to collect on an insurance policy worth nearly one million dollars.
Saad was also ordered to serve one year supervised release upon completion of his prison term and to pay restitution in the amount of $509,000 to Lloyds of London.
On January 27, 2017, a federal court jury convicted Saad on one count of arson, one count of use of fire to commit wire fraud, and two counts of wire fraud. The jury found that Saad set fire to his business shortly after 5:00 a.m. on November 30, 2014, and then initiated insurance claims via email later the same day and on the following day.
According to the government’s evidence presented during a three-week trial, Saad, who owed banks, private lenders and venders nearly $2.5 million dollars, entered the building through an unlocked rear door, spread gasoline in and around a bar area and ignited the gasoline before fleeing the building. A woman who resided in an apartment above the restaurant reported the fire after fleeing from the building.
Acting United States Attorney Stephen G. Dambruch; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police and Department of Public Safety; and Glocester Police Chief Joseph S. DelPrete announce Saad’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr.
According to the government’s evidence, Saad on two occasions told investigators he was at his home in Massachusetts when the fire occurred. During a subsequent interview, he told investigators that he was at his estranged wife’s home in Webster, Mass. On two occasions during interviews with state and federal investigators, Saad’s wife corroborated Saad’s account. However, after being summoned to appear before a federal grand jury and again when testifying during Daniel Saad’s trial, she admitted that Daniel Saad had asked her to provide an alibi for him for the night of the fire. She testified that he was not with her that night.
Cellular data collected and analyzed by law enforcement placed Saad’s cellphone in very close proximity to his restaurant at the time the fire began.
ATF, the Glocester Police Department, Rhode Island State Fire Marshal’s Office and Rhode Island State Police investigated the matter, with the assistance of the Rhode Island Department of the Attorney General and the FBI’s Cellular Analysis Survey Team.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Port Arthur Man Convicted for Federal Violations Related to Port Acres MurderRead the Press Release
BEAUMONT, Texas - A 35-year-old Port Arthur, Texas man has been found guilty by a jury for federal violations related to the murder of a Port Acres woman in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Sabino Orlando Martinez was found guilty by a jury of conspiracy to interfere with interstate commerce by robbery, conspiracy to use and carry firearms during a crime of violence, and conspiracy to possess firearms during a drug trafficking crime following a two-day trial before U.S. District Judge Marcia A. Crone today. After the opening statement by the prosecutor, the defendant pleaded guilty to conspiracy to possess with intent to distribute cocaine and methamphetamine. The trial proceeded on the remaining three charges of which the jury found him guilty after approximately one hour.
According to information presented in court, beginning in 2001, Martinez and others started robbing women in the parking lots of stores and businesses in Port Arthur, Texas. Evidence showed the defendants committed the robberies for the purpose of supporting their crack cocaine habits. The robberies increased to almost daily between 2009 and 2011. During the investigation of these crimes, it was discovered that Martinez and his co-defendants were responsible for the May 14, 2010 death of Allison Neil Clark, of Port Acres, Texas. Clark was shot while driving on West Port Arthur Road. Once law enforcement officers became aware of Martinez’s co-defendant’s vehicle in the area, they were quickly able to focus on Martinez’s involvement. Video surveillance from area businesses verified the vehicle’s presence in the area at the time of the shooting. Testimony at trial was that Martinez fired the shot that killed Clark. Martinez was indicted by a federal grand jury on May 4, 2016.
“This conviction of Sabine Orlando Martinez concludes the prosecution of two very dangerous men, who for more than ten years terrorized innocent Jefferson County victims by robbing, threatening, exploiting, and eventually killing one of their "lambs" they targeted for attack and theft,” said Acting U.S. Attorney Brit Featherston. “A tenacious team of dedicated investigators, Alton Baise, of the Jefferson County Sheriff’s Office; Paul Arvizo, of the Port Arthur Police Department; and Mike Hebert, of the Port Arthur Police Department, refused to let this cold case die. Joined by Assistant U.S. Attorney and prosecutor, Lesley Woods, this team worked night and day, turning over every stone to bring Allison's killer to justice. That happened today!”
Under federal statutes, Martinez faces up to 100 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Port Arthur Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lesley Woods.
Philadelphia Man Pleads Guilty to Conspiring to file 1.2 Million in False Tax ReturnsRead the Press Release
Voncel R. Harrigan, Sr., 51, of Philadelphia, Pennsylvania entered a plea of guilty to one count of conspiracy to file false income tax returns, announced Acting United States Attorney Louis D. Lappen.
According to court documents, the charges arose from Harrigan’s daughter, Vontia Jones’ tax fraud and identity theft scheme to obtain tax refunds from the IRS by filing over 700 false tax returns amounting to over three million dollars in the tax years 2008 through 2013. Defendant Jones operated a “business” she called “Jones Tax Service” which operated out of her home in Philadelphia. Jones designed multiple flyers for distribution advertising her services that stated “DON’T YOU DESERVE SOME INCOME TAX MONEY TOO? $750 [PER CHILD] WELFARE SOCIAL SECURITY UNEMPLOYMENT DISABILITY EVEN IF YOU NEVER HAD A JOB.” Defendant Jones conspired with her father, Voncel R. Harrigan, Sr., her sister, Michele Wood, and others who solicited personal identifying information from individuals under the guise that Jones’ business would get them “tax money” even if they never worked. Defendant Jones used the individuals’ information to file false tax returns and open bank accounts so that fraudulent tax refunds could be deposited and withdrawn from those accounts.
Among other things, defendant Harrigan opened up a business account so that the fraudulent tax refund checks could be deposited into that account. Defendant Harrigan made deposits of fraudulent tax refund checks, forged signatures on checks, and made withdrawals from that business account. This account had approximately $206,751, deposited in fraudulent tax refunds. Harrigan participated in the false claims conspiracy from February 9, 2011, when he opened the account, through January 24, 2012, when search warrants were executed at his home and defendant Jones’ home. During this time period, the conspiracy included 282 fraudulent tax returns (for the 2010 and 2011 tax years), which collectively claimed refunds of $1,233,974.
The defendant faces a maximum possible sentence of 10 years’ imprisonment, 3 years supervised release, $250,000 fine, $100 special assessment
The case was investigated by Internal Revenue Service, Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jessica Natali.
Peter Anthony C. Santos Sentenced to Prison in Ice Trafficking CaseRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER ANTHONY CONCEPCION SANTOS, age 44, was sentenced in District Court to a 63-month term of imprisonment, to be followed by three years of supervised release, and 100 hours of community service. The Court also ordered SANTOS to pay a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
November 18, 2015, SANTOS was charged by Superseding Indictment with Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride. On February 23, 2016, SANTOS entered a guilty plea to an Information charging him with Attempted Possession with Intent to Distribute Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(C) and 18 U.S.C. § 2. The United States also sought forfeiture of related assets under federal law. The investigation revealed that SANTOS, and others, agreed to use the mail system to distribute large quantities of methamphetamine on Guam. Law enforcement seized approximately 4.5 kilo grams of methamphetamine, with a 99 percent purity level. Officers also discovered $2,772 during a search incident to the arrest of SANTOS. SANTOS testified at trial against his co-defendant Justin Cruz. Cruz was sentenced on March 22, 2017, to 35 years imprisonment for Conspiracy to Distribute methamphetamine.
The investigation was pursued by the Organized Crime Drug Enforcement Task Force (OCDETF), a specialized multi-agency, multi-jurisdictional law enforcement team effort. OCDETF investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the U.S. Postal Inspection Service (USPIS), Drug Enforcement Administration (DEA), U.S. Department of Homeland Security Investigations (HSI), Guam Police Department (GPD), Guam Customs and Quarantine Agency (GCQA), Superior Court of Guam Probation Office, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. National Oceanic Atmosphere Administration (NOAA), and U.S. Coast Guard Criminal Investigative Service (CGIS). The case was prosecuted by Clyde Lemons, Jr., an Assistant United States Attorney for the District of Guam.
Partners Healthcare and Brigham and Women’s Hospital Agree to Pay $10 Million to Resolve Research Fraud AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that Partners HealthCare System and one of its hospitals, Brigham and Women’s Hospital (collectively, BWH), have agreed to pay $10 million to resolve allegations that a BWH stem cell research laboratory run by Dr. Piero Anversa fraudulently obtained grant funding from the National Institutes of Health (NIH). BWH disclosed these allegations to the government.
The settlement resolves allegations that Dr. Anversa, along with Dr. Annarosa Leri and Dr. Jan Kajstura, knew or should have known that their laboratory promulgated and relied upon manipulated and falsified information, including confocal microscope images and carbon-14 age data for cells, in applications submitted for NIH research grant awards concerning the purported ability of stem cells to repair damage to the heart. The government alleges that problems with the work of the laboratory included improper protocols, invalid and inaccurately characterized cardiac stem cells, reckless or deliberately misleading record-keeping, and discrepancies and/or fabrication of data and images included in applications and publications. The government contends that, at the direction of these BWH scientists, the Anversa laboratory included false scientific information in claims to NIH in order to obtain and use funds from NIH grants. Drs. Anversa, Leri, and Kajstura are no longer affiliated with BWH.
“Individuals and institutions that receive research funding from NIH have an obligation to conduct their research honestly and not to alter results to conform with unproven hypotheses,” said Acting U.S. Attorney William D. Weinreb. “Medical research fraud not only wastes scarce government resources but also undermines the scientific process and the search for better treatments for serious diseases. We commend Brigham and Women’s for self-disclosing the allegations of fraudulent research at the Anversa laboratory, and for taking steps to prevent future recurrences of such conduct.”
“Resolution of this self-disclosure underscores the Inspector General’s commitment to promoting data integrity and scientific principles in HHS-sponsored grants and in addressing fraud affecting any HHS program,” said Gregory E. Demske, HHS OIG Chief Counsel to the Inspector General. “We commend the institution’s efforts to self-examine and disclose in this case.”
“Today, Partners Healthcare and Brigham and Women’s Hospital resolved allegations of fraud perpetuated by several scientists who worked for them,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This settlement demonstrates the FBI’s commitment to ensuring that taxpayer dollars are not wasted, and that organizations that receive these funds are truthful in their dealings with federal agencies like the NIH and in the research findings they present to the scientific community, and the public, as a whole.”
After learning of the allegations of research misconduct in the Anversa laboratory, BWH investigated the allegations, disclosed its concerns to the U.S. Department of Health and Human Services, Office of the Inspector General (OIG) and Office of Research Integrity, and then worked cooperatively with OIG and the Department of Justice to explain the bases for the allegations.
Acting U.S. Attorney Weinreb, HHS OIG Chief Counsel Demske and FBI SAC Shaw, made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Vassili Thomadakis of Weinreb’s Office and OIG Attorney Kristen Schwendinger.
Owners of Floral Call Center Charged with Tax FraudRead the Press Release
Andrew Bassaner, age 44 and Vicki Bunchuk, age 44, of Southampton, Pennsylvania were arrested today, when a 27-count indictment was unsealed, which charged the couple with various criminal tax fraud violations including conspiracy to defraud the United States, filing false individual, corporate and employment tax returns and with aiding and assisting in the preparation of false tax returns announced Acting United States Attorney Louis D. Lappen.
According to the indictment, Bassaner and Bunchuk were the managers and owners of Florist Concierge Corporation located in Orlando, Florida. The corporation was initially formed in Pennsylvania, but subsequently incorporated in the State of Florida where it operated a telephone call center and internet service that accepted floral arrangement orders from customers throughout the United States. The indictment further alleges that Bassaner and Bunchuk entered into a contract with Floral Source International, located in Oregon, who managed a national registry of florists, who would fill the initial order for floral arrangement that Bassaner and Bunchuk’s company had contracted to provide.
The indictment alleged further that Bassaner and Bunchuk diverted funds from Florist Concierge which they used to pay personal living expenses and then failed to report the diverted funds as income on their personal income tax returns. The diverted funds were then misclassified as legitimate business expenses on the corporation’s tax returns which resulted in the corporation filing false returns as well. In addition, the indictment charges that Bassaner failed to collect and pay over employment taxes, Federal Insurance Contribution Act Taxes and Federal Unemployment Tax on behalf of employees who worked for Florist Concierge.
If convicted of the crimes charged in the indictment, the Bassaner and Bunchuk face a substantial period of incarceration in addition to a fine. This case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Jet Boat Companies Pleads GuiltyRead the Press Release
BOISE - Christopher Bohnenkamp, 42, formerly of Kuna, Idaho, pleaded guilty today, pursuant to a plea agreement, to one count of wire fraud and one count of bank fraud, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced.
According to the plea agreement, from 2009 through 2015, Mr. Bohnenkamp was the owner of Treasure Valley Marine, Inc. and Bohnenkamp’s Whitewater Customs, Inc. located in Meridian, Idaho (and later Boise, Idaho). TVM/BWC sold and built custom-made jet boats and trailers and generally required customers to pay upfront.
As it related to the wire fraud count, the plea agreement provided that, in or about 2014, the defendant devised and intended to devise a scheme to obtain money and property from customers and material vendors of TVM/BWC by means of materially false and fraudulent pretenses, representations and promises, and to misappropriate without authority money and property belonging to customers and material vendors of his companies. Knowing that TVM/BWC was financially insolvent, from May of 2014 through December of 2014, the defendant continued to accept orders and upfront payments from 13 new customers and parts on credit from material vendors. At the time, he knew that the upfront payments from new customers would be used to pay old debts and complete the boats of existing customers, not to construct the boats of the new customers or pay for new parts. In doing so, the defendant acted with the intent to deceive the new customers and material vendors. The 13 new customers did not receive the completed boats and trailers for which they paid. On or about December 2, 2014, for the purpose of executing the scheme, the defendant caused a $125,728 check drawn on KeyBank on behalf of customer D.H. to be deposited in Washington Trust Bank, causing an interstate wire transfer of funds.
According to the plea agreement, the defendant’s wire fraud scheme: (i) resulted in an actual loss of between $1,500,000 and $3,500,000; (ii) involved 10 or more victims; (iii) affected financial institutions, to wit: Washington Trust Bank, KeyBank, Idaho Central Credit Union, Mountain West Bank of Montana, and Les Bois Credit Union that loaned money to customers to purchase jet boats and trailers that were never built and delivered; and (iv) resulted in the defendant deriving more than $1,000,000 in gross receipts from the above financial institutions.
As it related to the bank fraud count, the plea agreement provided that, on or about January 6, 2012, in the District of Idaho, the defendant knowingly executed and attempted to execute a scheme to obtain moneys, funds, credits, asset, securities, and other property owned by, and under the custody or control of KeyBank. Specifically, the defendant caused to be submitted to KeyBank a false bill of sale for customer D.B, with the intent to defraud KeyBank. The bill of sale inflated the purchase price of the boat ordered by D.B., misrepresented that D.B. had made a $20,000 cash deposit, when he had not, and omitted that $59,283 of the loan proceeds would be kicked-back to D.B. As a result, KeyBank disbursed loan proceeds of $272,982 to TVM/BWC, of which TVM/BWC kicked-back $59,283 to D.B.
Separately for each count, Mr. Bohnenkamp faces a statutory maximum sentence of 30 years in prison, a $1,000,000 fine, and not more than 5 years of supervised release.
for Mr. Bohnenkamp is set for August 8, 2017 at 9:00 a.m., before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
Ontario, NY Woman Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Cortney Vogt, 37, of Ontario, NY, pleaded guilty to bank fraud before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that from September, 2013 to September, 2015, Vogt used her position at SalesSource International, a Rochester business, to forge and personally negotiate 132 business checks. The checks were drawn on an account at Canandaigua National Bank. In total, the defendant defrauded SalesSource and Canandaigua National Bank out of more than $134,000.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 8, 2017, at 9:00 a.m., before Judge Siragusa.
Oldham County, Kentucky, Resident Guilty of Possessing, Transporting and Advertising Images of Child PornographyRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced today that an Oldham County, Kentucky resident pleaded guilty in United States District Court this week, before Senior Judge Thomas B. Russell, to charges including the possession, transportation and advertising of images containing child pornography.
According to the factual basis of the plea agreement, Richard Wayne Johnson, admitted to receiving and possessing thousands of images (still and video) of child pornography and further admitted to advertising those images over the Internet.
A Cybertip from AOL indicated that a user was transferring child pornography by e:mail. The e:mail traced back to Johnson. He transported child pornography via e:mail on January 19, 2012. A further review of Johnson’s e:mail account (which he later admitted was his), traced to an online group where Johnson was posting requests for the trading of child pornography. One of the advertisements occurred on September 13, 2013. In the posts, Johnson included “albums” (folders filled with images of child pornography). He provided descriptions of the contents in the message – but a password was required to open the albums. Individuals interested in trading child pornography with Johnson had to contact him directly to obtain the password for Johnson’s “album.”
Law enforcement officials executed a state search warrant at Johnson’s home on or about September 17, 2013 and a forensic examination of Johnson’s computers, and other digital devices, revealed thousands of images of child pornography that he had obtained from the Internet.
According to the plea agreement, at the time of sentencing, the United States will ask for a sentence of 30 years’ incarceration and an agreed upon life time period of supervised release.
Sentencing is scheduled before Senior Judge Russell, in Louisville, on July 17, 2017.
Assistant United States Attorney Jo E. Lawless is prosecuting this case and Kentucky State Police is investigating.
johnson_richard_plea_agreement.pdfThis case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources.
Ohio Man Sentenced to 13 Years in Prison for Trafficking Cocaine and HeroinRead the Press Release
PITTSBURGH - A resident of Cleveland, Ohio, pled guilty and was sentenced in federal court to 13 years’ imprisonment on charges of conspiracy to distribute cocaine and possession with intent to distribute heroin Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak took the guilty pleas and imposed the sentence on Lionel Cannon, 52, of Cleveland, OH.
According to information presented to the court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The government had wiretaps on three of Lionel Cannon’s phones, and Cannon was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. He also possessed with intent to distribute heroin, which he obtained in Ohio and transported to the Western District of Pennsylvania for further distribution.
Assistant United States Attorneys Tonya Sulia Goodman and Caitlin Loughran prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the United States Postal Inspection Service, the Pennsylvania State Police, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, the Pittsburgh Bureau of Police, the Los Angeles Police Department, and the Long Beach Police Department for the investigation leading to the successful prosecution of Cannon.
Odenton, Maryland Man Exiled to 8 Years in Prison for Firearms Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – On April 25, 2017, U.S. District Judge James K. Bredar sentenced Delray Jamare Randall, a/k/a “Black,” age 35, of Odenton, Maryland to eight years in prison followed by two years of supervised release for engaging in the business of dealing in firearms and conspiracy.
The sentence 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; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Commissioner Kevin Davis of the Baltimore Police Department; Acting Chief, Major Scott Baker of the Annapolis Police Department; and Chief Tim Altomare of the Anne Arundel County Police Department.
“Experience shows us that illegally trafficked firearms are destined to wind up in the hands of criminals and be used in acts of violence that devastate our communities,” said ATF Special Agent in Charge Daniel L. Board. “ATF is the federal agency responsible for supporting and regulating the legal flow of firearms through commerce, but when we become aware of individuals who seek to illegally introduce firearms into our neighborhoods, which may eventually be used to perpetrate violence… make no mistake, we will take action.”
During his guilty plea, Randall admitted that from late 2014 and up to December 12, 2015, Randall and another person engaged in the business of dealing in firearms without a license, and that each participated in and assisted the other’s firearms activities. Randall also admitted that he agreed and conspired with other persons to engage in the business of dealing in firearms without a license.
In the days leading up to December 12, 2015, an undercover informant, acting on instruction from federal investigators, maintained communication with Randall. The informant communicated to Randall that he had firearms for sale and would be in the Baltimore area on December 12, 2015. Randall expressed an interest in meeting with the informant and made statements (in both text message format and during recorded phone voice calls) that Randall was lining up other persons who were either going to purchase firearms from Randall or whom Randall would introduce to the informant for the purpose of engaging in firearms purchases. Randall stated that he was lining people up for such transactions and inquired with the informant about the availability and price of firearms.
On December 12, 2015, Randall came to a hotel and met with the informant. Unknown to Randall, the room in which Randall and the informant met was under law enforcement surveillance, and Randall’s interactions and conversations were video and audio-recorded. During the meeting, Randall examined various firearms and purchased and made a down payment for four firearms. Randall was immediately arrested before he left the room.
While he was in the hotel room, Randall took photographs of the firearms with his cell phone, and sent photographs of those firearms to his customers. Randall engaged in text communications with his own customers in which he discussed possible prices for which the customers could purchase the firearms. Randall knowingly possessed the aforementioned firearms.
United States Attorney Rod J. Rosenstein commended the ATF and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael Hanlon and Philip Selden, who prosecuted the case.
North Port Convicted Felon Sentenced to 10 Years for Possessing Cocaine, A Firearm, and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Exodus Jerrod Strowbridge (42, North Port) to 10 years in federal prison for possessing cocaine and “crack” cocaine with the intent to distribute it, and for being a felon in possession of a firearm and ammunition. The Court also ordered him to forfeit a Smith & Wesson handgun and 12 rounds of ammunition.
Strowbridge pleaded guilty on January 23, 2017.
According to court documents, in April 2015, law enforcement officers conducted a year-long investigation into Strowbridge’s suspected illegal drug activity. In March 2016, officers from the North Port Police Department executed a state search warrant at his residence and recovered approximately 98 grams of cocaine and “crack” cocaine, as well as a loaded Smith & Wesson handgun that Strowbridge acknowledged owning. The officers also seized drug paraphernalia, including a digital scale, metal razor blades, and clear plastic baggies consistent with packaging cocaine for sale and distribution.
Strowbridge had numerous prior drug convictions and thus was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the North Port Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. Acting United States Attorney W. Stephen Muldrow, along with Daryl R. McCray, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law-enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
New Hampshire Man Pleads Guilty to Bank RobberiesRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Michael Giles, 41, pleaded guilty today in the United States District Court to committing three bank robberies and attempting to rob a fourth bank. A sentencing hearing has been scheduled for August 11, 2017. If the court accepts the terms of a plea agreement, Giles will be sentenced to ten years in federal prison.
According to documents filed with the court and statements made at the change of plea hearing, Giles robbed TD Bank branches located at 70 Bay Street and 1255 South Willow Street, both in Manchester, on November 23 and November 27, 2016. Giles was arrested by the Manchester Police shortly after the November 27, 2016 robbery was committed when Giles’ motor scooter failed to start. The police recovered the robbery proceeds from Giles.
Giles’ arrest led police to link him to the November 23, 2016 robbery of the TD Bank, the January 22, 2016 robbery of the Citizens Bank located at 1283 Hooksett Road in Hooksett, and the January 22, 2016 attempted robbery of the Citizens Bank located at 1550 Elm Street, Manchester, New Hampshire. Images captured by the bank’s surveillance system definitively identified Giles as the robber.
The Manchester Police Department and the Hooksett Police Department lead the investigations into the robberies in Manchester and Hooksett. The FBI assisted in the identification and prosecution of Giles. The case is being prosecuted by Assistant United States Attorney Don Feith.
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Monroe Man Pleads Guilty to Federal Crack Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DWIGHT JARVIS, 28, of Monroe, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of distribution of cocaine base (“crack”)
This matter stems from an investigation by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Milford Police Department.
According to court documents and statements made in court, on October 27, 2016, a search of JARVIS’ Monroe residence revealed approximately 29 grams of cocaine, approximately 25 grams of crack cocaine, 70 dose bags of heroin, and other items used to process and package narcotics for street sale.
JARVIS was arrested on a federal criminal complaint on December 16, 2016. He is released on a $100,000 bond pending sentencing, which is not yet scheduled.
The offense carries a maximum term of imprisonment of 20 years.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk and Milford Police Departments, and the Connecticut State Police. The Monroe Police Department assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Milton S. Eisenhower Foundation and Its Principal Agree to Settle False Claims Act Allegations for More Than $150,000Read the Press Release
WASHINGTON - The Milton S. Eisenhower Foundation and its principal, Dr. Alan Curtis, have agreed to a settlement worth more than $150,000 to resolve allegations that they submitted false claims for payments of grant funds awarded by the U.S. Department of Justice.
The settlement was announced today by Channing D. Phillips, U.S. Attorney for the District of Columbia, and Michael E. Horowitz, Inspector General for the Department of Justice.
The Justice Department’s Office of Justice Programs awarded federal grants to the Washington, D.C.-based foundation, a non-profit that specializes in issues involving inner cities and the disadvantaged. The settlement resolves disputed claims that the foundation and Dr. Curtis misused grant funds in violation of the federal False Claims Act.
Specifically, the foundation and Dr. Curtis are settling civil liabilities stemming from allegations that they improperly used grant funds to rent office space in Dr. Curtis’s own home; make sub-grants to organizations affiliated with the foundation’s trustees; engage in projects outside the scope of the foundation’s grant budgets; retain a lobbyist; and retain a foundation trustee to provide consulting services.
The U.S. Attorney’s Office for the District of Columbia and the Office of the Inspector General of the Department of Justice jointly investigated this matter.
“This settlement reflects the United States’ commitment to ensure that its grant funds are being used as intended to further the important policy objectives of the United States,” said U.S. Attorney Phillips. “The government expects that those receiving grant funds will adhere to the rules and requirements controlling their use and not knowingly expend such funds on clearly prohibited items.”
“Grantees should understand that the United States will vigorously investigate allegations that they have failed to adhere to applicable rules, regulations, or award conditions,” said Kenneth R. Dieffenbach, Acting Special Agent in Charge of the Department of Justice’s Office of the Inspector General’s Fraud Detection Office. “It is imperative for the United States to protect taxpayers by seeking the recovery of grant funds, wherever and whenever it is appropriate.”
Recipients of grant funds are required to adhere to applicable rules and regulations, and the terms of the applicable agreements, regarding their use. These authorities generally prohibit recipients from engaging in self-dealing or activities giving rise to conflicts of interest without appropriate approvals. The United States also expressly prohibits recipients from using grant funds to lobby Congress. The settlement resolves claims that the foundation, at the direction of Curtis, knowingly violated these proscriptions.
This settlement illustrates the government’s emphasis on combatting grant fraud. One of the most powerful tools in this effort is the False Claims Act. Since fiscal year 2009, the Justice Department has recovered a total of more than $31.3 billion through False Claims Act cases.
The settlement agreement is neither an admission of liability by the foundation or Dr. Curtis nor a concession by the United States that the claims are not well-founded. The parties agreed to resolve the matter without litigation.
In announcing the agreement, U.S. Attorney Phillips and Inspector General Horowitz commended the work of those who investigated the case from the U.S. Attorney’s Office for the District of Columbia and the Office of the Inspector General of the Department of Justice. They also acknowledged the efforts of Assistant U.S. Attorney Brian P. Hudak, who handled the matter.
Marshfield Man Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Marshfield man was sentenced on Tuesday, April 25, 2017, in federal court in Boston in connection with trafficking heroin and fentanyl in Marshfield, Taunton and surrounding communities.
John A. Gray, Jr., 41, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 77 months in prison and three years of supervised release. In January 2017, Gray pleaded guilty to a superseding indictment charging him with conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Gray was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts. One additional defendant was added in a superseding indictment filed on April 20, 2016. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Marshfield, Fall River, Taunton, and surrounding communities, which have seen an increase in opioid overdoses and related deaths since 2013.
Of the 26 defendants charged in the superseding indictment, 18 have pleaded guilty and seven, including Gray, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorneys Thomas E. Kanwit, Katherine Ferguson and Ann Taylor of Weinreb’s narcotics and money laundering unit are prosecuting the case.
Macon Woman Charged in Connection with Bomb Threat to Local Daycare Center, Threatening Interstate Communications, and Perpetuating A HoaxRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Jasmine Jaquel Bradley, age 26, of Macon, Georgia, was arrested and charged with Interstate Bomb Threats, Threatening Interstate Communications and Conveying False Information and Perpetuating a Hoax against Child Care Network School, a daycare located at 3940 Northside Drive in Macon, Georgia.
This case was investigated by the Bibb County Sheriff’s Office and the Macon Office of the Federal Bureau of Investigation. Law enforcement is also continuing to investigate similar recent activities in the Middle District of Georgia.
Copies of the criminal complaint and the affidavit on which it is based, both of which were filed with the court earlier today, are attached.
If convicted, Ms. Bradley faces up to ten (10) years imprisonment for making interstate bomb threats, five (5) years imprisonment for making threatening interstate communications, and five (5) years imprisonment for conveying false information and perpetuating a hoax. She could also be subject to a possible fine of at least $250,000 for each charge and a term of supervised release upon completion of any prison sentence.
“This is the second matter in as many weeks in which my office has brought charges against individuals for threatening to harm children in this district, terrorizing not only the children but their families and their communities, as well,” said United States Attorney Peterman. “The Bibb County Sheriff’s Office and the Macon office of the FBI are to be commended for their outstanding work in this investigation.”
Bibb County Sheriff David Davis stated, "The arrest of Jasmine Bradley is proof that bomb threats against our children or hoax threats against places of business will not be tolerated in Bibb County. I commend the immediate action of our deputies, including the bomb unit, and Macon-Bibb fire personnel at the time the threat in Macon-Bibb was originally called in. We can all be proud of the diligent work of Bibb investigators and FBI agents which resulted in an arrest in this case.”
David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated: “These crimes are not only disruptive to the community, but they pull emergency response resources from other matters and result in huge costs to the tax payers for the emergency responses they generate. The FBI is incredibly appreciative of the hard work of the Bibb County Sheriff’s Office and the close relationship that exists between the agencies.”
A criminal complaint is an accusation only and the person charged is presumed innocent until proven guilty in a court of law.
Assistant United States Attorneys Peter D. Leary and C. Shanelle Booker are prosecuting the case for the United States. Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
MS-13 Member Pleads Guilty to Rico Conspiracy Involving Cocaine TraffickingRead the Press Release
BOSTON – A member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique in the metro Boston area, pleaded guilty today in federal court in Boston to RICO conspiracy and conspiracy to distribute cocaine.
Efrain Yanes-Vasquez, a/k/a “Caballo,” 35, an El Salvadorian national living in Chelsea and Pittsfield, Mass., pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and conspiracy to distribute cocaine. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for July 27, 2017. Under the terms of the plea agreement, parties both recommend that Yanes-Vasquesz be sentenced to 87 months in prison. He will also be subject to deportation upon completion of his sentence.
After a three-year investigation, Yanes-Vasquez was one of 61 defendants named in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. According to court documents, MS-13 is a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts. MS-13 members are required to commit acts of violence against rival gang members to gain promotions and to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder rival gang members whenever possible. During the investigation, Yanes-Vasquez was identified as a member of the ESLS clique in the metro Boston area. In furtherance of the MS-13 RICO conspiracy, Yanes-Vasquez and several other MS-13 members conspired to transport and distribute kilogram-sized quantities of cocaine in Massachusetts and New Hampshire. When Yanes-Vasquez was arrested in Pittsfield, Mass. on Sept. 15, 2016, federal agents seized a loaded firearm from his residence.
The RICO conspiracy charge provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The conspiracy to distribute cocaine charge provides for a sentence of no greater than 20 years in prison, at least three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Yanes-Vasquez is the fifteenth defendant to plead guilty in this case.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Essex County Sheriff Kevin F. Coppinger; Suffolk County Sheriff Steven W. Thompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Lynn Police Chief Michael Mageary; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon made the announcement.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisville Based Physician Settles Federal False Claims Act and State Civil ClaimsRead the Press Release
Pays $751,681.16 to settle allegations
LOUISVILLE, KY – Forrest S. Kuhn, Jr., M.D., a physician specializing in allergy, asthma and immunology with medical offices in Louisville, Danville, and Glasgow, Kentucky, has agreed to pay $751,681.16 to resolve allegations that he violated the federal False Claims Act by submitting false claims to Medicare, Medicaid, and other government health care programs, announced United States Attorney John E. Kuhn, Jr., who is no relation to the defendant.
“Unfortunately, the strength of our healthcare system is eroded by a minority of providers who, by carelessness or outright fraud, overcharge the government and other payors through improper billing, " stated U.S. Attorney Kuhn. "Losses due to false healthcare claims are staggering, amounting to billions of dollars annually. In an effort to control these losses and force accountability, my Office, the Department of Justice and the Kentucky Attorney General’s Office vigorously pursue and recover false and fraudulent billings as one of their highest priorities.”
“The Attorney General’s office takes its role as Medicaid watchdog very seriously, and we are committed to protecting Kentucky families and seniors from anyone who would take advantage of such a critical program,” Kentucky Attorney General Andy Beshear said. “I want to thank my Office of Medicaid Fraud and the U.S. Attorney’s Office for the Western District for reaching this settlement agreement with Dr. Kuhn whose actions defrauded not only the government but the people government serves.”
"This doctor was billing Federal health care programs for services he never rendered," said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "Schemes such as this cost taxpayers huge amounts of money and deprive programs like Medicare and Medicaid of the ability to deliver health care to the elderly, indigent and disabled."
According to the settlement agreement, the United States and the Commonwealth of Kentucky contend that Dr. Kuhn submitted or caused to be submitted claims for payment to the Medicare Program; the Medicaid Program; the Tricare Program; and the FEHB (Federal Employee Health Benefit) plan; for allergy tests that were never performed.
Specifically, the United States and the Commonwealth contend that between January 2, 2006, and July 31, 2015, Dr. Kuhn billed Medicare, Medicaid, Tricare, and FEHB for intracutaneous tests that were never peformed.
According to the terms of the agreement, Dr. Kuhn shall pay $416,865.04 to the Federal Government and $334,816.12 to the Commonwealth of Kentucky.
This matter was handled by Assistant United States Attorney Benjamin S. Schecter with assistance from the Commonwealth of Kentucky Medicaid Fraud and Abuse Control Unit and the Department of Health and Human Services, Office of Inspector General.
kuhn_settlement_agreement.pdfLittle Rock "Pimp" Sentenced to More Than 15 Years Imprisonment for Sex Trafficking A MinorRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today Dana “Big Face” Deffenbaugh, 36, of Little Rock, was sentenced to 188 months imprisonment for sex trafficking of a minor.
United States District Judge J. Leon Holmes also sentenced Deffenbaugh, who was known to prostitute multiple women, to 10 years of supervised release.
Deffenbaugh was indicted on two counts of sex trafficking on January 6, 2015. On September 19, 2016, he pleaded guilty to one count of sex trafficking of a minor.
“Sex trafficking is a problem throughout the United States,” Harris said. “The exploitation of a minor causes irreparable harm that is lasting. Even though this sentence does not erase the pain that the defendant has caused, it does send a strong message. There is no hesitation on our part to prosecute Deffenbaugh and criminals like him as vigorously as we can.”
The investigation began in December 2014, when the North Little Rock Police Department received a tip that a minor was being held against her will at a hotel and forced to prostitute by someone known as “Big Face.” The 17-year-old had been introduced to Deffenbaugh, who immediately told her “you my ho” and “you work for me now.” He then supplied the minor with drugs, had sex with her, and told her things such as she “does not exist no more” and “you have no outside life.”
Further investigation revealed that the minor and other female victims who worked for Deffenbaugh were forced to have sex with men who located their services on the now-defunct website Backpage.com. Each female saw an average of 15 customers a day, sometimes as many as 25, often with little to no sleep. The women then had to turn their money over to Deffenbaugh or face beatings. Deffenbaugh referred to himself as “Big Face” in reference to “big face hundred dollar bills.”
“Today’s sentencing of Deffenbaugh should make it clear beyond a shadow of a doubt that engaging in child prostitution and human trafficking of a minor is intolerable and unacceptable,” Upchurch said. “I appreciate the collaborative efforts of the United States Attorney’s Office and the North Little Rock Police Department.”
This investigation was conducted by the FBI and the North Little Rock Police Department. The case was prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Jefferson County, Kentucky, Resident Guilty of Online EnticementRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced today that a Jefferson County, Kentucky, resident pled guilty in United States District Court this week, before Senior Judge Thomas B. Russell, to attempted online enticement.
According to the factual basis of the plea agreement, Timothy Wayne Tucker, admitted to using a cell phone to communicate with a person, whom Tucker believed to be a 15-year-old girl, for the purposes of engaging in sexual activity.
While authorized by the Attorney General to conduct undercover (UC) operations within the Commonwealth, on December 2, 2016, a law enforcement official created an ad on the Louisville Craigslist website under the personals tab titled “nothing serious”. The ad did not request any sexual contact from prospective responders. A person later identified as Tucker contacted the UC that same day through the Craigslist Email server system. The UC identified himself to Tucker as a 15-year-old female.
During the online communications, email and then texting, Tucker brought up the subject of sexual activity with the person he believed to be a 15-year-old girl. Specifically, he asked the UC to engage in sexual activity with himself and an adult female. The UC agreed to meet Tucker on December 6, 2016, at an address on Wilderness Trail in Eastern Jefferson County, Kentucky. Law enforcement officials watched Tucker drive to the agreed upon location and conducted a traffic stop and arrested Tucker. A search of the vehicle revealed a loaded 9mm handgun as well as alcohol Tucker had promised to bring the UC. A search warrant on the phone confirmed that it was the device Tucker had used to communicate with the UC.
According to the plea agreement, at the time of sentencing, the United States will seek a ten year prison sentence and a twenty year term of supervised release.
Sentencing is scheduled before Senior Judge Russell, in Louisville, on July 17, 2017.
Assistant United States Attorney Jo E. Lawless is prosecuting this case and Kentucky Attorney General’s Department of Criminal Investigations is investigating.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab resources.
Jacksonville Man Convicted of $5 Million Conspiracy and Wire FraudRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Justin Pennington (30, St. Johns County) guilty of one count of conspiracy and nine counts of wire fraud. He faces up to 20 years in federal prison on each count and mandatory restitution of approximately $5 million. His sentencing hearing has been scheduled for August 2, 2017.
According to evidence presented at trial, while Pennington was employed as an Information Technology Director at The Wholesale House, an Ohio-based company with offices in Jacksonville, he and his co-conspirators created a fraudulent company (3 Kings, LLC). 3 Kings was incorporated in Delaware in an attempt to conceal the identity of the owners who purchased products from The Wholesale House at or near cost and then resold those products to consumers and retailers. Unbeknownst to the owners of The Wholesale House, 3 Kings illegally competed with The Wholesale House’s customers and thereby caused significant financial difficulties for the company’s legitimate customers. In all, 3 Kings purchased nearly $40 million of products from The Wholesale House and never paid the entirety of its bills owed to them. Instead, Pennington and his co-conspirators spent tens of thousands of dollars themselves, with Pennington incurring credit card balances of up to $100,000 per month, while owing his employer millions of dollars.
During the trial, Pennington’s co-conspirators testified that he was the mastermind of the scheme, created detailed proposals, named the corporation, incorporated the company, and controlled the corporation’s bank accounts. Further The Wholesale House owners testified that they had personally infused more than $7 million into the company to ensure its survival and to protect the jobs of the company’s more than 60 employees.
This case was investigated by the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorneys Mark Devereaux and Jason Mehta.
Inmate at FCI-Berlin Pleads Guilty to Possessing Marijuana While IncarceratedRead the Press Release
CONCORD, N.H. - Acting U.S. Attorney John J. Farley announced that Jesus Silva-Cruz, 42, a citizen of Cuba and an inmate at the federal correctional institution FCI-Berlin, pleaded guilty today in United States District Court to possessing marijuana and possessing a prohibited object while an inmate at a federal prison. A sentencing hearing is scheduled for August 3, 2017.
According to statements made at the change of plea hearing, on January 17, 2017, correctional staff at FCI-Berlin were conducting routine searches of cells. Silva-Cruz was the sole inmate assigned to cell 103. The staff found three vacuum sealed packages of green leafy material. Laboratory testing of the material proved it was marijuana. The total weight of the material was approximately three ounces.
The Bureau of Prisons was the lead investigative agency in this case. The case is being prosecuted by Assistant United States Attorney Don Feith.
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Indictment Unsealed Against Michael ShirleyRead the Press Release
Acting United States Attorney Robert C. Stuart announced an indictment was unsealed against Michael Shirley, 55, of Doniphan, Nebraska. The Indictment charges Shirley with two counts of distribution of methamphetamine in September 2016.
Shirley faces a maximum possible penalty, if convicted, of 40 years imprisonment, a $5,000,000 fine, a 4-year term of supervised release and a $100 special assessment for each count.
Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Indiana University Health and HealthNet to pay $18 million to resolve False Claims Act allegationsRead the Press Release
Indianapolis – Josh J. Minkler, the United States Attorney, announced today an $18 million civil settlement with Indiana University Health, Inc., and HealthNet, Inc. The settlement will resolve allegations that IU Health and HealthNet violated the False Claims Act by submitting claims to the Government in violation of the Anti-Kickback Statute. Under the settlement agreement, IU Health and HealthNet each will pay approximately $5.1 million to the United States and $3.9 million to the State of Indiana.
“Helping to return millions of dollars in taxpayer funds to federal healthcare programs and the Indiana Medicaid Program is critically important to me and my office,” said U.S. Attorney Minkler. “Waste, fraud, and abuse can never be tolerated and tear at the fabric of first-class healthcare in this country.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicaid. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that from May 1, 2013 through August 30, 2016, IU Health provided HealthNet with continuous and substantial financial support in the form of an interest-free line of credit, the balance of which consistently exceeded $10 million. HealthNet was allegedly not expected to substantially repay the outstanding balance of this loan. The Government alleged that this financial arrangement was intended to induce HealthNet to refer its OB/GYN patients to IU Health’s Methodist Hospital. IU Health then billed Medicaid for patient hospital stays, tests, and procedures. There is no evidence of physical injury or harm to patients as a result of the allegations.
The settlement resolves a federal lawsuit filed under the whistleblower provisions of the False Claims Act, captioned United States of America and State of Indiana ex rel. Judith Robinson v. Indiana University Health, Inc. and HealthNet, Inc., Case No. 1:13-cv-2009-TWP-MJD (S.D. Ind.). The False Claims Act allows private individuals to bring a lawsuit on behalf of the United States for false claims and to share in any recovery.
“The payment of illegal remuneration to induce patient referrals interferes with health care providers’ independent judgment when they make referral decisions for their patients,” said Deputy Assistant Attorney General Joyce R. Branda for the Civil Division. “We will continue to pursue health care providers that engage in such conduct, which undermines public confidence in our health care system.”
This settlement was the result of a coordinated effort by the Department of Health and Human Services – Office of the Inspector General (“HHS-OIG”) and the State of Indiana Attorney General’s Office Medicaid Fraud Control Unit in coordination with the United States Attorney=s Office and the United States Department of Justice in Washington, D.C. The claims resolved by this settlement are allegations only and there has been no determination of liability.
Indiana University Health and HealthNet to Pay $18 Million to Resolve Allegations of False ClaimsRead the Press Release
The Department of Justice announced today that Indiana University Health Inc. (IU Health) and HealthNet Inc., have agreed to pay a total of $18 million to resolve allegations that they violated federal and state false claims laws by engaging in an illegal kickback scheme related to the referral of HealthNet’s OB/GYN patients to IU Health’s Methodist Hospital. Under the settlement agreement, IU Health and HealthNet each will pay approximately $5.1 million to the United States and $3.9 million to the State of Indiana.
“The payment of illegal remuneration to induce patient referrals interferes with health care providers’ independent judgment when they make referral decisions for their patients,” said Deputy Assistant Attorney General Joyce R. Branda for the Civil Division. “We will continue to pursue health care providers that engage in such conduct, which undermines public confidence in our health care system.”
The Anti-Kickback Statute prohibits, among other things, the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicaid. Claims submitted to federal health care programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that from May 1, 2013 through Aug. 30, 2016, IU Health provided HealthNet with an interest-free line of credit, the balance of which consistently exceeded $10 million. United States further alleged that HealthNet was not expected to repay a substantial portion of this loan and that this financial arrangement was intended to induce HealthNet to refer its OB/GYN patients to IU Health’s Methodist Hospital.
“Helping to return millions of dollars in taxpayer funds to federal healthcare programs and the Indiana Medicaid program is critically important to me and my office,” said U.S. Attorney Joshua Minkler for the Southern District of Indiana. “Waste, fraud, and abuse can never be tolerated and tear at the fabric of first-class healthcare in this country.”
The settlement resolves a lawsuit filed in federal court in Indianapolis, Indiana, under the qui tam provisions of the False Claims Act, which permit private individuals to bring a lawsuit on behalf of the United States for false claims and to share in any recovery. The lawsuit was filed by Dr. Judith Robinson, who formerly held a number of positions at both Methodist Hospital and HealthNet. Under the settlement, Dr. Robinson will receive approximately $2.8 million out of the federal share of the recovery.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Department of Health and Human Services Office of Inspector General, and the Indiana Office of the Attorney General.
The lawsuit is captioned United States et al. ex rel. Robinson v. Indiana University Health, Inc. et al., Case No. 1:13-cv-2009-TWP-MJD (S.D. Ind.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Illegal Alien Sentenced for Illegal Possession of a Firearm and False Identification DocumentsRead the Press Release
SYRACUSE, NEW YORK – Hamlet Severino De La Rosa, 41, a citizen of the Dominican Republic residing in Utica, New York, was sentenced today to serve 24 months imprisonment, to be followed by 3 years of supervised release, announced United States Attorney Richard S. Hartunian and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (DEA). The sentence followed Severino De La Rosa’s December 20, 2016 guilty plea to possession.of a firearm by an illegal alien, possession of a false identification document, and falsely representing a social security number.
As part of his guilty plea, Severino De La Rosa admitted that at the time of his arrest in April of 2016, he possessed an unloaded 12-gauge shotgun under the mattress of his bed. Severino De La Rosa also admitted to possessing false identification documents, including a Puerto Rico birth certificate, a social security card, and New York State driver’s license, all in the name of another person. The defendant admitted he possessed these identification documents with the intent to deceive authorities and others into thinking that he was a U.S. citizen born in Puerto Rico, and not his true identity, Hamlet Severino De La Rosa, a citizen and national of the Dominican Republic, living in the United States illegally. Because he was in the United States as an illegal alien, De La Rosa could not legally possess a firearm under federal law.
This case was investigated by the Drug Enforcement Administration (“DEA”), the Oneida County Drug Task Force, the Department of Homeland Security - U.S. Customs and Border Protection, and the Central New York Drug Enforcement Task Force, and was prosecuted by Assistant U.S. Attorney Carl G. Eurenius and Oneida County Assistant District Attorney Grant Garramone, a Special Assistant U.S. Attorney.
Idaho Man Sentenced for Federal Hate Crime Based on Victim’s Sexual OrientationRead the Press Release
Kelly Schneider, 23, of Nampa, Idaho, was sentenced yesterday in U.S. District Court to 336 months in prison followed by five years of supervised release based on his guilty plea to violently assaulting Steven Nelson because he was a gay man, resulting in Nelson’s death, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Rafael M. Gonzalez, Jr., for the District of Idaho.
Schneider was indicted by a federal grand jury on Jan. 10, 2017, with one count of violating the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act. He pleaded guilty to the charge on Feb. 7, 2017. He was sentenced today by Chief Judge B. Lynn Winmill for the U.S. Courts of the District of Idaho.
“This sentence makes it clear that we as a society cannot and will not tolerate violence – in this case escalating to a vicious murder – against persons based on their sexual orientation or any other characteristic,” said Acting Assistant Attorney General Wheeler. “The Department of Justice is committed to using every tool at its disposal to combat such brutal violence.”
“Steven Nelson was assaulted and later died because he was gay,” said Acting U.S. Attorney Gonzalez. “This is precisely the kind of bias motivated violence that the Shepard-Byrd Act was passed to address. The federal prosecution in this case makes clear that this office, the Civil Rights Division and its law enforcement partners will pursue justice when a person is violently attacked based on who he loves and how he loves.”
According to the plea agreement, on the evening of April 27, 2016, Schneider posted a solicitation for sex on backpage.com, an Internet website, which included a shirtless photo of himself. Nelson responded to that posting, and Schneider met with him the next evening. Schneider took Nelson’s money without engaging in any sexual act with Nelson. Before the encounter, Schneider told his friends that he was not gay and would not let anyone who was gay touch him.
In the early morning hours of April 29, Schneider resumed communication with Nelson. Schneider then conspired with other individuals to again rob Nelson. According to the plan, Schneider was to meet up with Nelson in a parking lot and ask Nelson to drive to Gott’s Point, an isolated wildlife area in the Deer Flat Wildlife Refuge near Lake Lowell, for a sexual encounter. At Gott’s Point, Schneider would rob Nelson, and two of Schneider’s cohorts would be lying in wait as “back up” to assist Schneider if Nelson resisted the robbery.
When Schneider and Nelson reached Gott’s Point, Schneider immediately began physically assaulting Nelson, kicking him 20-30 times with steel-toed boots and repeatedly using a homophobic slur. Nelson never resisted throughout the attack. He died of his injuries later that day. No one else participated in the assault.
Schneider was sentenced earlier this month in state court for first degree murder based on Nelson’s death. The state court sentenced him to a fixed 28-year term of imprisonment and life indeterminate. Schneider’s federal sentence will be served concurrently to the state sentence.
The Canyon County Sheriff’s Office, with assistance from the Treasure Valley Metro Violent Crime Task Force, conducted the murder investigation. The FBI conducted the federal hate crime investigation.
Honduran National Admits to Kidnapping Woman in Kansas City, Missouri and Raping Her as They Traveled to New JerseyRead the Press Release
CAMDEN, N.J. – A Honduran national today admitted to kidnapping his former girlfriend in Kansas City, Missouri, and raping her while they traveled to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
José Amaya-Vasquez, 32, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to Count One of an indictment, charging him with kidnapping, and Count Two, charging him with engaging in interstate domestic violence. Amaya-Vasquez previously pleaded guilty to Count Four which charged him with illegally re-entering the U.S. after having been deported.
According to documents filed in this case and statements made in court:
Amaya-Vasquez is a citizen of Honduras. On Feb. 14, 2005, he attempted to enter the United States illegally in Texas, at which time the U.S. Customs and Border Protection (CBP) arrested him, gave him a Notice to Appear in Immigration Court and released him from custody. On July 13, 2005, he failed to appear as ordered, at which time an Immigration Judge entered an Order of Removal.
On June 7, 2014, the Kansas City, Missouri, Police Department arrested Amaya-Vasquez and charged him with domestic assault after he threw a comb at the Victim and pushed her into a table. The police turned the defendant over to Immigration and Customs Enforcement (ICE), which removed him from the United States on July 4, 2014.
On September 9, 2014, CBP officers arrested Amaya-Vasquez after he illegally entered the United States from Mexico near Eagle Pass, Texas. On Sept. 16, 2014, the defendant pleaded guilty to a count of illegal entry before a U.S. Magistrate Judge for the Western District of Texas and was sentenced to 30 days’ incarceration. On Oct. 22, 2014, ICE again removed the defendant from the United States and he was barred from reentering the United States for 20 years. He admitted that he illegally re-entered the country in January 2015.
On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez entered the victim’s vehicle, threatened her with a knife, duct-taped the victim and then took her and the victim’s 2-year old child to an abandoned house in Kansas City, where he sexually assaulted the victim at knifepoint.
From May 24, 2015, through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.
On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody since his arrest.
The kidnapping count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of life in prison and a $250,000 fine. The interstate domestic violence count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The illegal re-entry into the United States count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of two years in prison. Sentencing is scheduled for Sept. 8, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.
The government is represented by Senior Litigation Counsel Jason M. Richardson and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Honduran Man Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Jose Martir Romano-Hernandes, age 45, and a citizen of Honduras, pled guilty yesterday to illegal re-entry into the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Chief Patrol Agent John C. Pfeifer, United States Border Patrol, Swanton Sector.
Romano-Hernandes was removed from the United States to Honduras on November 26, 1997. On March 14, 2017, he was found by Border Patrol near the Canadian border in Champlain, New York. Romano-Hernandes admitted that he returned to the United States without permission following the 1997 removal, and had been living in Salisbury, North Carolina.
As a result of his conviction, Romano-Hernandes faces up to 2 years in prison and a fine of up to $250,000 when he is sentenced by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol, Champlain Station, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Hazleton Realtor Charged with ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ignacio Beato, age 46, of Hazleton, Pennsylvania, was charged in a one count criminal information on April 26, 2017, with conspiracy to engage in monetary transactions through a financial institution, with funds that were the proceeds of wire fraud.
According to United States Attorney Bruce D. Brandler, the information alleges that Beato, who was a licensed realtor, and his coconspirators, engaged in interstate wire communications and Beato falsely represented to potential purchasers that he was authorized to sell vacant conventional and Federal Housing Administration insured mortgaged properties in Hazleton, when in fact, he did not have such authority.
The information further alleges that Beato solicited and accepted money in the total amount of $751,082 from individuals who believed they were purchasing properties. Beato and his coconspirators fraudulently converted that money to their own personal use.
The United States also filed a plea agreement, which is subject to the approval of the Court, wherein it is indicated that Beato intends to plead guilty to the charges when he appears in federal court for his arraignment.
The case was investigated by the Internal Revenue Service, the Housing and Urban Development Office of the Inspector General, the Department of Homeland Security, the Pennsylvania State Police, and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Harrisburg Man Indicted on Firearms ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Germaine D. Hill, age 39, of Harrisburg, Pennsylvania, was indicted on April 5, 2017, by a federal grand jury on a firearms charge. The case was unsealed on April 26, 2017, following Hill’s arrest.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on January 11, 2017, in Harrisburg, Hill unlawfully possessed a 9mm Tauris pistol and ammunition as a previously convicted felon.
The case was investigated by the Federal Bureau of Investigation and the Harrisburg City Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is ten years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenville, Texas, Man Sentenced to 10 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Bryan Wayne Edwards, 35, of Greenville, Texas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 120 months in federal prison, following his guilty plea in November 2016 to his role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Edwards has been in custody since his arrest in July 2016. Eleven defendants, mostly from Hunt County, Texas, were charged in a federal indictment in July 2016 with one count of conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine and one substantive count of distribution of methamphetamine each.
Co-defendants Garry Wayne Pollard, aka “GW,” Maria Del-Consuelo Ulloa, aka “Shelley,” Felipe Antonio Bernal, aka “Flip,” Jody Lynn Brewer, Nichole Mechelle Manifold, Bryan Wayne Edwards, aka “Cowboy,” Michael Lee Shaw, Jayson Glenn Cooke, John Willis Smith, aka “Big J,” and Judith Ann Rutledge, have all pleaded guilty to their role in the conspiracy.
Bobby James Carroll, is awaiting trial.
According to plea documents in the case, on April 25, 2014 Edwards sold approximately 20 grams of methamphetamine.
The Federal Bureau of Investigation, the Greenville Police Department and the Hunt County Sheriff’s Office investigated with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety, the Rockwall County Sheriff’s Office, and the Plano and Denton Police Departments.
Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Greenville Man Enters Guilty Plea in Federal CourtRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Lewis Charles Landreth, age 32, of Greenville, pled guilty in federal court in Greenville, to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office. Landreth faces up to ten years in federal prison.
Evidence presented at the change of plea hearing established that in December 2015, the United States Marshals Service Taskforce received a request to locate and arrest Landreth on outstanding warrants from North Carolina.On December 29, 2015, the USMS task force tracked Landreth to a motel in Anderson. A search warrant was obtained for the motel room and once law enforcement gained entry into the motel room, they found Landreth and his 6-year-old son along with a loaded, Smith and Wesson 9mm pistol on the nightstand in the room. Landreth was taken into custody and the weapon secured.
The case was investigated by the Anderson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the United States Marshals Service. Assistant United States Attorney Max Cauthen of the Greenville office handled the case.
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Gold River Immigration Services Business Owner Sentenced to 2 Years in Prison for ID TheftRead the Press Release
SACRAMENTO, Calif. — Ilie Zdragat, 30, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Zdragat was the founder and director of Immigration Visa Services Organization (IVSO) that helped clients with asylum and citizenship applications, deportation proceedings and other matters related to immigration. Between April 4, 2012, and September 28, 2012, Zdragat executed a fraud scheme by submitting fraudulent income tax returns through Turbo Tax to the IRS.
According to the plea agreement, on September 28, 2012, Zdragat and another individual electronically filed a false 2011 income tax return for an individual and two dependents using the names and personal information of three former IVSO clients. The victims did not give Zdragat permission to file a tax return on their behalf. The tax return sought a refund of $6,200. Zdragat used a physical address in San Francisco unconnected to him to disguise his involvement in the scheme. The IRS did not process the fraudulent tax return.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.
Getaway Driver Involved in North Jersey Bar Robbery Pleads GuiltyRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man today admitted his role in a conspiracy to rob a Hawthorne, New Jersey, bar, Acting U.S. Attorney William E. Fitzpatrick announced.
Oscar Avalos-Cortez, 22, of New City, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a one-count information charging him with conspiracy to commit Hobbs Act Robbery.
According to documents filed in this case and statements made in court:
On Dec. 25, 2015, Avalos-Cortez drove at least six conspirators to a bar in Hawthorne, where they forcibly robbed the bar and subsequently fled with approximately $200 in cash in Avalos-Cortez’s car.
The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 2, 2017.
Avalos-Cortez was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016.
Chiliseo-Vega, Guillermo Carrillo-Iraheta, and Reyes previously pleaded guilty in Newark federal court to three-count informations in connection with their involvement in the conspiracy to commit Hobbs Act Robbery, as well as a carjacking and kidnapping in which Avalos-Cortez was not involved. They await sentencing.
Balmore Carrillo-Iraheta was indicted by a federal grand jury on April 18, 2017, for his role in the conspiracy to rob the bar. The charges against Barahona for his role in the robbery, carjacking, and kidnapping are still pending. Both men are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Kevin Conway Esq., Spring Valley, New York
Georgia Gang Member Sentenced on Federal Escape ChargeRead the Press Release
Conact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Santonio Dwayne Ramsey, age 26, of Appling, Georgia was sentenced in federal court after earlier pleading guilty to escape, in violation of Title 18, United States Code, Section 751(a). Senior United States District Judge Cameron McGowan Currie, of Columbia, sentenced Ramsey to 10 months imprisonment and a $100 special assessment fee.
Evidence presented in court during the earlier guilty plea hearing established that on the evening of July 19, 2016, the Alston Wilkes Society Residential Re-Entry Center, a contracted Federal Bureau of Prisons halfway house facility in Columbia, conducted a routine head count and found Ramsey absent. Ramsey, who had been transferred to the halfway house facility from the Federal Bureau of Prisons in Williamsburg, South Carolina, was serving the remainder of a federal sentence stemming from a 2010 conviction for being a felon in possession of a firearm in the Southern District of Georgia. After determining that Ramsey was not in a local hospital or detention center, the Federal Bureau of Prisons declared him to be in escape status, notified the United States Marshals Service, and a federal escape charge was obtained. Ramsey, an admitted gang member, was arrested on state charges stemming from a domestic issue on November 2, 2016, in Columbia County, Georgia. After initially providing deputies a fake name, deputies determined Ramsey’s true identity and the outstanding federal escape charge from South Carolina.
The case was investigated by the United States Marshals Service. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Fugitive Sought in Mortgage Fraud SchemeRead the Press Release
HOUSTON – A 53-year-old Houston-area contractor, set for sentencing in a $16 million loan fraud scheme, has now been charged with failing to appear, announced Acting U.S. Attorney Abe Martinez.
Oscar Cantalicio Ortiz, who resided in Kingwood, pleaded guilty June 30, 2016, to conspiring to commit bank, mail and wire fraud. He was set for sentencing in that case Monday, April 24, 2017, but failed to appear at the hearing. Late yesterday, a federal grand jury returned a new indictment against him for failure to appear.
He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
His codefendant – Houston realtor Seung Min Santillan, aka Suzy, 57, also of Houston – pleaded guilty to the conspiracy and making false statements on a loan application in September 2016. She was sentenced earlier this month to 168 months in federal prison and ordered to pay $5,299,500 in restitution.
Ortiz and Santillan operated a mortgage fraud scheme in which they recruited straw borrowers to purchase residential properties in the Houston area. Loans were obtained from lending institutions to purchase these properties in the names and using the credit of the straw borrowers. The lenders were provided materially false information to induce them to fund these residential loans. The loans were funded and ultimately fell into default when Ortiz and Santillan failed to make all the mortgage payments as promised.
Ortiz and Santillan utilized several business entities during the execution of the scheme to defraud including Uptown Builders LLC, Americorp Builders LLC, Luxury Quality Homes LLC and Santi Investments. In recruiting straw borrowers during the scheme, the borrowers were told the residential property would be in their name for a short period while Ortiz made modifications to the property prior to reselling the house. Ortiz and Santillan promised the straw borrowers that they would handle all the costs associated with purchasing and holding these properties.
Once the loans to purchase the residence funded, one or more of the business entities Ortiz utilized would receive a large portion of the loan proceeds. This occurred even when the same property was purchased for the second time in the name of a new straw borrower. The defendants were able to take a large portion of the loan proceeds since the value of the residence was inflated with fraudulent appraisal reports.
The FBI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four previously deported aliens were indicted separately on April 26, 2017, by a federal grand jury on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Humberto Vasquez-Mejia, age 29, of Mexico, was previously deported from the United States to Mexico in December 2010. He is alleged to have illegally re-entered the United States sometime after December 2010, and was found in the United States in Adams County, Pennsylvania, after eluding examination or inspection by immigration officers. In September 2010, he was convicted in the Adams County Court of Common Pleas of delivery or possession with the intent to deliver cocaine, an offense which subjects him to enhanced penalties in the current case.
Because of Vasquez-Mejia’s previous conviction, under federal law he faces a maximum penalty of twenty years of imprisonment, a term of supervised release following imprisonment, and a fine.
Bedmar Osielito Gonzalez-Ramirez, age 24, of Mexico, was previously deported from the United States to Mexico on two occasions, March 2015 and September 2015. He is alleged to have illegally re-entered the United States sometime after September 2015 and was found in the United States in Cumberland County, Pennsylvania, after eluding examination or inspection by immigration officers.
Jose Carmen Hernandez-Marquez, age 39, of Honduras, was previously deported from the United States to Honduras in November 2010. He is alleged to have illegally re-entered the United States sometime after November 2010, and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Manuel Roblero-Ramirez, age 37, of Mexico, was previously deported from the United States to Mexico on two occasions in April 2013. He is alleged to have illegally reentered the United States sometime after April 2013, and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
Gonzalez-Ramirez, Hernandez-Marquez, and Roblero-Ramirez face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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