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26 April 2017
Three Northern California Real Estate Investors Sentenced for Rigging Bids at Public Foreclosure AuctionsRead the Press Release
After being convicted at trial, three Northern California real estate investors were sentenced today for their role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz were charged on Nov. 19, 2014, in an indictment returned by a federal grand jury in the Northern District of California. They were convicted of one count each of conspiring to rig bids on Dec. 15, 2016. Today, Rasheed was sentenced to serve fourteen months in prison and serve 1260 hours of community service in lieu of paying a criminal fine, Berry was sentenced to serve ten months in prison and ordered to serve 974 hours of community service in lieu of paying a criminal fine and Diaz was sentenced to serve eight months in prison and ordered to serve 579 hours of community service in lieu of paying a criminal fine.
Between May 2008 and December 2010, the defendants conspired with others not to bid against one another, instead designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County. The members of the conspiracy then held second, private auctions to award the properties to members of the conspiracy and determine payoffs for other conspirators who had agreed not to bid against each other at the public auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. The primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Alameda County public foreclosure auctions at noncompetitive prices. When real estate properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with the remaining proceeds, if any, paid to the homeowner.
The sentence announced today is a result of the department’s ongoing investigation into bid rigging at public real estate foreclosure auctions in California’s Alameda, Contra Costa, San Francisco and San Mateo counties. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.
Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Three Men, Including Two Former Local Law Enforcement Officers, Plead Guilty to Trafficking in Contraband CigarettesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JUSTIN BROWN, age 30, and JOSHUA CARTHON, age 32, both of New Orleans, pled guilty today to interstate transportation in aid of racketeering enterprises. Additionally, co-defendant, ANWAR ABDELMAJID-AHMAD, a/k/a Tony, age 29, of Gretna, pled guilty to conspiracy to traffic in contraband cigarettes, conspiracy to possess with the intent to distribute 1 kilogram or more of heroin, and federal firearms violations.
According to previously filed court documents, BROWN and CARTHON, along with GARRETT PARTMAN, all local law enforcement officers at the time of the Indictment, were utilized to protect and transport the shipment of contraband cigarettes across state lines. Co-defendants, ABDELMAJID-AHMAD, JADALLAH SAED, and ATALLA ATALLA, would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a total tax loss to the federal and state governments of between $400,000 and $900,000. At the time of his arrest, ABDELMAJID-AHMAD was found to be in possession of 15.5 grams of heroin and two loaded firearms, one of which was obtained under false pretenses.
Defendants BROWN and CARTHON face a maximum penalty of 5 years imprisonment, $250,000 fine, and 3 years supervised release. As to the contraband cigarette trafficking and weapons charges, ABDELMAJID-AHMAD also faces a maximum penalty of 5 years imprisonment, $250,000 fine, and 3 years supervised release. However, as to the drug conspiracy charge, ABDELMAJID-AHMAD faces a minimum penalty of 10 years and a maximum penalty of life imprisonment, a $10 million dollar fine, and a minimum of 5 years supervised release.
U.S. District Judge Kurt D. Engelhardt set sentencing for August 2, 2017. GARRETT PARTMAN, JADALLAH SAED and ATALLA ATALLA are schedule for trial on August 14, 2017. .
Acting U.S. Attorney Evans praised the work of the FBI New Orleans Division and Immigration and Customs Enforcement/Homeland Security Investigations. He also thanked the New Orleans Police Department Public Integrity Bureau for their assistance. Assistant U.S. Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.
Three Indicted for Female Genital MutilationRead the Press Release
Two Detroit doctors and one co-conspirator were charged in an indictment today for their alleged participation in a scheme to perform female genital mutilation (FGM) on minors, to transport these minors across state lines, and to obstruct justice.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Acting Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Jumana Nagarwala, M.D., 44, of Northville, Michigan, Fakhruddin Attar, M.D., 53, and his wife, Farida Attar, 50, both of Livonia, Michigan, are charged with performing FGM on minor girls out of Fakrhuddin Attar’s medical office in Livonia, Michigan. According to the indictment, some of the minor victims allegedly traveled interstate to have Nagarwala perform the procedure. The indictment alleges that Nagarwala performed FGM on girls who were approximately six to eight years old. All three are also charged with a conspiracy to obstruct the federal investigation, and Nagarwala and Fakhruddin Attar are charged with giving false statements to a federal agent. This is believed to be the first case brought under 18 U.S.C. 116, which criminalizes FGM.
“Female Genital Mutilation has serious implications for the health and well-being of girls and women,” stated Acting United States Attorney Daniel Lemisch. “This brutal practice is conducted on girls for one reason, to control them as women. FGM will not be tolerated in the United States. The federal government is continuing this investigation to ensure those responsible are brought to justice.”
"Today's indictments represent the continued commitment of the FBI and our law enforcement partners to protect the most vulnerable of victims, our children, from those that would do them harm. The practice of Female Genital Mutilation (FGM) cannot be defended in any context and we will identify and bring those responsible for conducting or participating in this disturbing crime to justice", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "I would urge anyone who has information about those involved in FGM or can assist with identifying victims to report it to the FBI or HSI. Information can be reported by calling 1-800-CALL-FBI or by sending an e-TIP to FBI.GOV/FGM".
"As the first federal indictment in the U.S., these charges will hopefully deal a critical blow to stamping out this inhumane practice in the United States and around the world," said Francis. "HSI and our partners are committed to the difficult but necessary work of supporting victims and bringing everyone involved in this practice to justice."
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Detroit Division and HSI investigated the case with support of the Criminal Division’s Fraud Section, the U.S. Attorney’s Office of the Eastern District of Michigan and the FBI’s International Human Rights Unit, Criminal Investigative Division. Deputy Chief Sara Woodward of the General Crimes Unit, Eastern District of Michigan and Fraud Section Assistant Chief Nick Surmacz and Trial Attorneys Amy Markopoulos and Malisa Dubal are prosecuting the case
Three Family Members in North Suburban Chiropractic Group Sentenced to Federal Prison in $10.8 Million Fraud SchemeRead the Press Release
CHICAGO — A north suburban chiropractor and his brother and father have been sentenced to federal prison terms in connection with a phony billing scheme that bilked insurance carriers out of more than $10.8 million.
DR. VLADIMIR GORDIN JR., VLADIMIR GORDIN SR., and ALEXSANDER GORDIN, operated Gordin Medical Center S.C., a chiropractic clinic in Wheeling. The trio used the company to falsely bill the carriers for medical services that were either not provided or not medically necessary, and they attempted to cover up the scam by fabricating patients’ medical records. In some cases, patients knew of the overbilling and were incentivized to participate by having their deductibles met at no cost to them, or by sharing in a portion of the overbilling proceeds via checks provided to them by Gordin Jr. and Gordin Sr.
From 2006 to approximately November 2012, Gordin Medical Center and an ultrasound service that was part of the scheme submitted false bills totaling $28,775,000, causing a loss to the five carriers of $10,847,000. The loss includes medical claims administered on behalf of several union health and welfare funds in the Chicago area.
The three Gordins pleaded guilty earlier this year to healthcare fraud. U.S. District Judge Edmond E. Chang imposed the prison sentences Monday in federal court in Chicago. Vladimir Gordin Jr., 46, of Northbrook, was sentenced to seven years; Vladimir Gordin Sr., 70, of Riverwoods, was sentenced to two and a half years; and Alexsander Gordin, 34, of Northbrook, was sentenced to two years.
The sentencings were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and E.C. Woodson, Inspector in Charge of the U.S. Postal Inspection Service in Chicago.
“As a result of the scheme, the Gordins created a medical center whose focus, for both the chiropractors and the employees, was not patient care,” Assistant U.S. Attorneys Heather K. McShain and Sarah E. Streicker argued in the government’s sentencing memorandum. “Rather, GMC was a front for false billing; patient care was an afterthought.”
Two other defendants convicted in the case were also sentenced this week. MICHELLE KOBRAN, who owned and operated Ultrasound Mobile Service Ltd., in Vernon Hills, pleaded guilty last year to healthcare fraud. Kobran, 69, of Vernon Hills, admitted falsely billing insurance companies for ultrasounds that were performed on patients referred to her by Gordin Jr. Kobran kicked back a portion of her insurance proceeds to the Gordins. Judge Chang on Tuesday sentenced Kobran to nine months in prison.
ALINA LEVIT, 46, of Vernon Hills, worked for Gordin Medical Center as the office manager. In pleading guilty last year to misdemeanor embezzlement, Levit admitted creating phony “sign in” sheets to falsely represent that patients were physically present and received certain health-care services on a given day, when, in fact, no such treatment was rendered. Judge Chang on Tuesday sentenced Levit to 18 months of probation, including 90 days of intermittent incarceration on weekends.
To report health care fraud, logon to: StopMedicareFraud.gov.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. – A Pollock Pines woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
“Teresa Marty recruited many individuals to participate in a scheme that she claimed to have ‘perfected’ from co-defendant Harris, who traveled to help her recruit clients, to her daughter-in-law, Bandera-Marty, who churned out fraudulent tax return forms. She used her qualifications as an IRS Enrolled Agent and California licensed tax preparer to market her scheme to clients,” U.S. Attorney Talbert stated. “When the IRS shut down her business, she retaliated by filing liens against those who were assigned to stop her fraud. At least 20 clients of Marty and Advanced Financial Services have been prosecuted throughout the country for fraudulent returns during this scheme. Today’s sentences reflect the gravity of the offenses and should deter others from violating the tax laws.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay $9,500,492 in restitution to the IRS.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Tax Preparation Business Owner Sentenced to 10 Years in PrisonRead the Press Release
A Pollock Pines, California woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.
According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using Internal Revenue Service (IRS) Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multi-million dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.
“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”
In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $9,500,492.83.
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Susan Blaue Pleads Not Guilty to Central Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Susan Blaue, 39, of Woodstock, pleaded not guilty today in United States District Court in Burlington to charges that she stole money from her former employer. Chief U.S. District Judge Christina Reiss released Blaue on conditions pending trial.
On March 29, 2017, a federal grand jury in Rutland returned a three-count indictment charging Blaue with forgery, mail fraud and credit card fraud. According to the indictment, between 2012 and early 2015, Blaue was employed by ABLE Waste Management and two related companies in Plymouth. Beginning in early 2013, Blaue served as a bookkeeper for the companies, handling accounts receivables and payables and the companies’ payroll. Although she did not have check signing authority on the companies’ accounts, she did have access to a signature stamp of the companies’ owner, who was a signer.
According to the indictment, beginning in approximately April 2013 and continuing through the end of her employment in January 2015, Blaue stole approximately $130,000 from ABLE Waste Management and the related companies. The indictment alleges she did this by issuing many checks to herself without authorization, forging the owner’s signature on the checks or using the signature stamp without permission, then depositing the checks into her own bank account. Blaue also assertedly used company funds to pay her personal bills, and used ABLE credit cards to make purchases for herself. In addition, it is alleged that Blaue used company funds to pay the rent on the company-owned house she lived in while employed by ABLE.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Blaue faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the United States Secret Service and the Windsor County Sheriff’s Office.
Blaue is represented by Assistant Federal Public Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.
South Carolina man sentenced to 40 years in prison for sexually exploiting juvenileRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a South Carolina man was sentenced Tuesday to 480 months in prison for producing child pornography and traveling to Louisiana to have sex with a juvenile.
Frankie Maldonado, 51, of Reevesville, S.C., was sentenced by U.S. District Judge Dee D. Drell on two counts of production of child pornography and one count of traveling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. He was also sentenced to five years of supervised release and must register as a sex offender. A federal jury found the defendant guilty on January 4, 2017 after the conclusion of the two-day trial.
According to the evidence presented at trial, Maldonado began communicating with a 15-year-old girl living in Louisiana. The defendant had known the victim since she was about 4 years old, as a result of his friendship with the victim’s father. Maldonado sent sexually explicit pictures of himself to the juvenile using text messaging in June of 2014. Thereafter he requested that she send sexually explicit pictures of herself. After receiving the images, the defendant convinced the victim to engage in sexually explicit conduct while he watched on Skype. Thereafter, he traveled to Louisiana on June 22, 2014 where he picked up the juvenile, brought her to a motel, and engaged in sexual acts with her while producing images of that sexually explicit conduct.
Homeland Security Investigations, Louisiana State Police, Beauregard Parish Sheriff’s Office, Vernon Parish Sheriff’s Office and Natchitoches Parish Sheriff’s Office, high tech crimes unit investigated the case. Assistant U.S. Attorneys John Luke Walker and Jamilla A. Bynog prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Somali Pirate Sentenced to Life for 2010 Attack on USS AshlandRead the Press Release
Mohamed Farah, 31, of Somalia, was sentenced to life plus 10 years in prison for engaging in piracy and committing other offenses pertaining to the attack on the USS Ashland, a U.S. Navy ship, in April 2010.
Today’s announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office in Virginia, and Special Agent in Charge Maureen Evans of the Naval Criminal Investigative Service’s (NCIS) Norfolk Field Office. The sentence was issued by U.S. District Judge Raymond A. Jackson.
A federal jury convicted Farah on Feb. 27, 2013. According to court documents and evidence presented at trial, Farah and five co-conspirators attacked the USS Ashland on April 10, 2010. Four of Farah’s co-conspirators were previously sentenced for their roles in the attack: Jama Idle Ibrahim (15 years in prison), Mohamed Ali Said (33 years), Mohamed Abdi Jama (life plus 30 years) and Abdicasiis Cabaase (life plus 30 years). These defendants had also previously gone to sea in February 2010 with the purpose of capturing another vessel for ransom, but were instead, intercepted by the HMS Chatham of the United Kingdom’s Royal Navy. The remaining pirate from the attack on the USS Ashland, Abdi Abshir Osman, was sentenced to life plus 10 years.
This case was investigated by the FBI and the NCIS. Assistant U.S. Attorney Joseph E. DePadilla for the Eastern District of Virginia and Trial Attorney Jerome Teresinski of the National Security Division’s Counterterrorism Section prosecuted the case. Former Assistant U.S. Attorney Benjamin L. Hatch prosecuted the case previously.
Somali Pirate Sentenced to Life for 2010 Attack of USS AshlandRead the Press Release
NORFOLK, Va. – A Somali man was sentenced to life plus 10 years in prison today for engaging in piracy and committing other offenses pertaining to the attack on the USS Ashland, a U.S. Navy ship, in April 2010.
A federal jury convicted Mohamed Farah, 31, on Feb. 27, 2013. According to court documents and evidence presented at trial, Farah and five co-conspirators attacked the USS Ashland on April 10, 2010. Four of Farah’s co-conspirators were previously sentenced for their roles in the attack: Jama Idle Ibrahim (15 years in prison), Mohamed Ali Said (33 years), Mohamed Abdi Jama (life plus 30 years) and Abdicasiis Cabaase (life plus 30 years).
These defendants had also previously gone to sea in February 2010 with the purpose of capturing another vessel for ransom, but they were instead intercepted by the HMS Chatham of the United Kingdom’s Royal Navy.
The remaining pirate from the attack on the USS Ashland, Abdi Abshir Osman, was sentenced to life plus 10 years.
Today’s announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office in Virginia, and Special Agent in Charge Maureen Evans of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office. The sentence was issued by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI and the NCIS. Assistant U.S. Attorney Joseph E. DePadilla and Trial Attorney Jerome Teresinski of the National Security Division’s Counterterrorism Section prosecuted the case. Former Assistant U.S. Attorney Benjamin L. Hatch prosecuted the case previously.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10-cr-57.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, Texas, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted that he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Second Indian National Pleads Guilty for Role in Multi-Million Dollar India-Based Call Center Scam Targeting U.S. VictimsRead the Press Release
HOUSTON – An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.
Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.
According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.
According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.
To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.
Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.
Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.
Schuele Boys Gang Member Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kenned, Jr. announced today that Michael Robertson, 27, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine, before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 40 years and a $5,000,000.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between June 2013 and July 2014, Robertson conspired with other Schuele Boys associates and gang members to distribute cocaine in the City of Buffalo. The defendant obtained cocaine from a source of supply and distributed it to others for further distribution to customers. During a search of Robertson’s Eggert Road residence, officers recovered $19,000 in cash and 300 grams of cocaine.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Robertson is one of 28 Schuele Boys Gang members, associates, and other individuals arrested in this case. To date, 23 of the 28 defendants have been convicted.
Today’s plea is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 7, 2017, at 1:00 p.m. before Judge Arcara.
San Angelo Man Sentenced to 36 Months in Federal Prison for Filing False Income Tax ReturnsRead the Press Release
LUBBOCK — Ai Shu Cheng, 52, of San Angelo, Texas, was sentenced by Senior U.S. District Judge Sam R. Cummings to 36 months in federal prison last week, following his guilty plea in December 2016 to two counts of filing a false income tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
In addition, Judge Cummings ordered that Cheng pay $1,767,566.46 in restitution to the Internal Revenue Service. Judge Cummings ordered Cheng to surrender to the Bureau of Prisons on May 26, 2017.
According to documents filed in the case, in 2011 Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2010 and under-reported his total income. Cheng reported a total income of $208,652.00. Cheng’s actual income was approximately $696,148.68, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $165,108.00.
In 2013, Cheng filed an individual Income Tax Return, Form 1040, for the tax year ending December 31, 2012 and again under-reported his total income. Cheng reported a total income of $186,486.00. Cheng’s actual income was approximately $600,976.82, resulting in a tax loss to the Internal Revenue Service in the amount of approximately $145,072.00.
Each of these income tax returns contained a written declaration that the tax return was made under penalty of perjury.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorney Ann Cruce-Haag prosecuted.
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Romanian Woman Pleads Guilty for Her Role in Fraud SchemeRead 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 Marinela Unguru-Ducila, of Romania, who was sentenced to time served by U.S. District Judge Richard J. Arcara. For her role in a bank fraud scheme operated by her husband Nicolae Sarbu.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between August and November of 2015, Unguru-Ducila had knowledge but failed to report that Sarbu was engaged in a scheme to defraud Bank of America by using skimming devices and cameras on multiple occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas as well as in Pennsylvania and New Jersey. Sarbu, who has pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft, faces a mandatory minimum term of imprisonment of 2 years and up to 20 years when he sentenced by Judge Arcara on May 17, 2017.
Unguru-Ducila was present with Nicolae Sarbu on several occasions when he installed or removed the skimmers and cameras. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from various ATM’s. A skimmer is a device used unlawfully to record bank account information from a customer’s debit card when the card is inserted into an ATM. Sarbu also encoded the bank account information obtained by the skimmers onto magnetic strips on blank plastic cards and gift cards. Unguru-Ducila was present with Sarbu when he installed skimmers at multiple banks in North Tonawanda, NY and West Seneca, NY and failed to notify authorities about this felony crime.
The total loss suffered by Bank of America as a result of this fraudulent activity was $183,120.54.
The sentencing 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.
Rochester Man Sentenced to 25 Years in Prison for Drug Trafficking and Gun PossessionRead 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 Ian D. Goolsby, 40, of Rochester, NY, who was convicted after a jury trial of possession of heroin with intent to distribute; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm and ammunition as a previously convicted felon; possession of a firearm with removed, altered and obliterated serial number; and unlawful possession of a controlled substance, was sentenced to 25 years in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Charles E. Moynihan and Craig R. Gestring, who handled the prosecution of the case, stated that on March 11, 2015, an Elmira Police Department officer conducted a traffic stop of the vehicle Goolsby was driving. When speaking to the defendant, the officer smelled marijuana coming from the car and asked Goolsby about the odor. The defendant said that it was on his clothes and that he smoked it earlier. The officer asked Goolsby to exit the vehicle and, after some discussion, he complied. A passenger was also asked to exit the vehicle. Officers searched the car and found a small amount of plant material, which was later determined to be marijuana, between the passenger seat and passenger door, as well as on the driver’s side of the car. A brown Nike shoe box was also found on the passenger side floor, inside of which was a Ruger, Model P90, .45 caliber semi-automatic pistol. The serial number had been removed or obliterated. Officers also found a magazine loaded with six .45 caliber rounds of ammunition with the handgun.
A further search of the vehicle uncovered a black insulated bag containing white, uncooked rice. Inside of this, they found 41 small wax-coated envelopes containing a white powdery substance with a stamp saying "dead man walking." A forensic chemist from the New York State Police Southern Tier Satellite Crime Laboratory examined one of the envelopes and concluded the white substance inside was heroin.The sentencing is the result of an investigation by Elmira Police Department, under the direction of Chief Joseph Kane; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Rochester Man Sentenced for Lying on Application for TSA Secure Airport IDRead 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 Darnell Jerome, 20, of Rochester, NY, who was found guilty following a jury trial of making a false statement, was sentenced to three years probation by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Craig R. Gestring and Kyle P. Rossi, who handled the prosecution of the case, stated that the defendant applied for employment at a restaurant at the Greater Rochester International Airport. The restaurant was located in the sterile area of the airport, beyond the security screening zone. Because they have access to knives and other contraband items to which screened passengers do not, employees of the airport or contractors who work in the restaurants or stores inside the sterile area are required to obtain a special federal Security Identification Display Area (SIDA) badge and pass a federal background investigation, which includes a security threat assessment.
In March 2016, Jerome filled out a security clearance application and falsely reported that he had never been arrested. However, only a month before he falsified the SIDA clearance application form, Jerome was convicted of a felony, Robbery in the Second Degree, in Monroe County for which he was sentenced to five years probation. During that robbery, the defendant displayed what appeared to be a firearm.
Federal regulations put in place by the Department of Homeland Security since September 11, 2001, prohibit persons with certain disqualifying felony criminal convictions from obtaining a clearance to work at an airport. The defendant’s 2016 Robbery conviction, which is considered a crime of violence, was such a disqualifying offense. The security clearance application completed by the defendant clearly listed the specific disqualifying conditions on its face.
The sentencing is the culmination of an investigation by the Federal Air Marshal Service, under the direction of Supervisory Air Marshal-in-Charge William Hall.Rochester Couple Pleads Guilty in Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced that Kassandra Whylly, 21, and Thomas Porter, Jr., 20, both of Rochester, NY, pleaded guilty to financial institution fraud before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum sentence 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that between April 2016 and November 2016, the defendants executed an ongoing scheme to defraud the ESL Federal Credit Union by making false deposits into ATM machines and fraudulently withdrawing cash based upon the false deposits. Over the course of several months, Whylly and Porter actively recruited ESL members to participate in more than 100 separate fraudulent transactions, through which the defendants stole a combined sum of more than $35,000.
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.
Whylly is scheduled to be sentenced on August 2, 2017, before Judge Wolford. Porter will be sentenced on August 3, 2017.
Restaurant Owner Pleads Guilty to Multiple Fraud SchemesRead the Press Release
BOSTON – A restaurant owner pleaded guilty today in federal court in Boston to tax and insurance fraud at 11 Boston-area restaurants and to committing visa and immigration fraud in an effort to remain in the United States unlawfully.
Hazrat Khalid Khan, 57, of Middletown, N.Y., a Pakistani national, pleaded guilty to a five-count Information charging him with conspiring to defraud the Internal Revenue Service, failing to collect and pay over taxes, committing mail fraud, making false statements on a naturalization application, and committing visa fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for August 16, 2017.
Khan’s plea will resolve two open cases in the District of Massachusetts and one in the Southern District of New York. The whereabouts of two of his co-defendants, Khursed Iqbal, 57, and Rahman Zeb, 61, both Pakistani nationals, remains unknown.
According to the Superseding Information, Khan was the partial owner of 11 fried chicken takeout restaurants in the Boston-area, including Boston proper, Roxbury, Chelsea, and Mattapan. As part of a tax fraud scheme that ran for years, Khan and his co-conspirators - generally the managers of these restaurants - defrauded the government and avoided paying payroll and income taxes owed by the stores. They paid their employees in cash and provided tax preparers with false information about the restaurants’ payroll and income, thereby causing the tax preparers to file false tax returns.
Federal law requires employers to withhold payroll taxes, which includes Social Security and Medicare taxes, and then pay them over to the IRS. To avoid paying taxes, Khan and several co-conspirators falsely reported to the IRS the number of employees at their stores - some of whom were undocumented workers - and the wages they paid them. They also failed to file W-2s showing wages paid to employees and falsely described on tax returns their sales, total income, compensation of officers, salaries and wages, and taxable income. Khan and his co-conspirators also failed to withhold payroll taxes and pay them over to the IRS.
The charges of conspiracy and failure to collect or pay over taxes provide for a sentence of no greater than five years in prison; the charge of mail fraud provides for no greater than 20 years in prison; and the charges of naturalization and visa fraud provide for no greater than ten years’ imprisonment. Each of the charges also provides for supervised release for a maximum of three years, a fine, and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; 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; and Boston Police Commissioner William Evans, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. Assistant U.S. Attorneys John A. Capin and Brian A. Pérez-Daple of Weinreb’s Criminal Division are prosecuting the case.
Reminderville man indicted on federal drug and firearms chargesRead the Press Release
A Reminderville man was indicted on federal firearms and drug charges, Acting U.S. Attorney David A. Sierleja said.
A federal grand jury returned a three-count indictment charging Michael D. Sammy, 34, with being a felon in possession of firearms and possession with the intent to distribute LSD and methamphetamine.
Sammy was arrested on October 30, 2016 by the Twinsburg Police Department after they found him in his vehicle in possession of 176 squares of LSD, several grams of liquid methamphetamine and multiple firearms including an MP-15 rifle, a Smith and Wesson Cowboy Commemorative Rifle and a Smith and Wesson .9 millimeter pistol. Sammy was prohibited from possessing firearms because of his status as a convicted felon, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the FBI and the Twinsburg Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pharmacist Pleads Guilty to Conspiracy to Pay Healthcare KickbacksRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Benjamin Nundy (39, Ruskin) today pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison.
According to court documents, Nundy was a licensed pharmacist who co-owned Lifecare Pharmacy in Pinellas County with his business partner, Carlos Mazariegos. In 2014, Nundy, Mazariegos, and Dr. Anthony Baldizzi, a licensed physician, agreed that Lifecare would pay Baldizzi illegal kickbacks for prescriptions of compounded medications written by Baldizzi and filled at Lifecare. In May 2014, Mazariegos, acting on behalf of Lifecare, entered into a marketing agreement with Centurion Compounding Inc., a marketing firm in Pasco County that employed sales representatives to market compounded creams for pain and scars to beneficiaries of healthcare plans, especially TRICARE. These compounded creams typically ranged in price from $900 to $21,000 for a one-month supply.
Between May and November 2014, Centurion directed patients that it had recruited and the physicians within its network to send all of their compounded cream prescriptions to Centurion. Centurion then transmitted these prescriptions to Lifecare to be filled. Mazariegos, Nundy, and the principals of Centurion agreed to pay illegal kickbacks to Baldizzi equal to approximately 10% of the after-cost amount of each claim paid by TRICARE and other healthcare benefit programs as a result of compounded medication prescriptions written by Baldizzi and filled by Lifecare, for Centurion-recruited patients. For example, in December 2014, Mazariegos wrote a check to a car dealership for $71,900, funded with the proceeds from the operation of Lifecare, to pay for a BMW for Baldizzi in partial satisfaction of kickbacks that Lifecare and Centurion owed to him.
Lifecare received approximately $5.3 million from TRICARE for claims made for compounded medications prescribed by Baldizzi resulting from this illegal kickback relationship. Mazariegos and Nundy also billed Medicare $1,064,729 for compounded medications that Lifecare made with bulk powder ingredients when they knew that Medicare only reimbursed for such medications when they were made using crushed tablets.
Carlos Mazariegos pleaded guilty to engaging in a conspiracy to commit healthcare fraud on April 10, 2017.
A grand jury returned an indictment charging Baldizzi with conspiracy, receiving healthcare kickbacks, and engaging in illegal monetary transactions. The case is currently set for trial in January 2018.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Pennsylvania Man Sentenced to More Than 7 Years in Prison for Role in Kidnapping, Jewelry Store RobberyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JEFFREY HOUSTON, 30, of Allentown, Pennsylvania, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by three years of supervised release, for his role in a violent kidnapping and jewelry store robbery in April 2013.
According to court documents and statements made in court, at approximately 9:00 p.m. on April 11, 2013, HOUSTON, Kasam Hennix, William Davis and Christopher Gay, all of whom were wearing masks and gloves and two of whom were armed with handguns, broke into an apartment on Gravel Street in Meriden, Conn., bound four victims with duct tape and covered their heads with pillowcases, towels and jackets. HOUSTON, Hennix and Davis then forced two of the victims into a victim’s vehicle and drove to Lenox Jewelers in Fairfield, Conn., where the two victims worked. Timothy Forbes traveled to Fairfield in a separate vehicle, and Gay remained in the Meriden apartment to guard the two other victims.
After HOUSTON, Hennix and Davis arrived at the Fairfield store, they stole jewelry, watches and loose diamonds with a total replacement value of more than $3 million. They then fled in the victim’s car, leaving the two victims bound inside the store. HOUSTON, Hennix and Davis abandoned the victim’s vehicle and got into Forbes’s vehicle. One of the defendants called Gay to advise him that they had successfully carried out the robbery and that he should leave the apartment. The defendants then fled the state.
The five defendants were arrested in May 2013.
Investigators determined that HOUSTON, Forbes and Gay had traveled from Pennsylvania to Connecticut on several occasions in the weeks prior to the robbery in order to track the victims’ movements between Lenox Jewelers in Fairfield and their residence in Meriden. In addition, Forbes and Gay placed a GPS on one of the victim’s vehicles in an effort to make it easier to track him.
On December 8, 2015, HOUSTON pleaded guilty to one count of interference with commerce by robbery and one count of use of a firearm during and in relation to a crime of violence.
Forbes, of Allentown, Hennix, of Easton, Pa., Davis, of Allentown, and Gay, of the Bronx, N.Y., also pleaded guilty to federal charges. On April 17, 2015, Davis was sentenced to 176 months in prison; on January 27, 2016, Gay was sentenced to 102 months in prison, and, on February 8, 2016, Hennix was sentenced to 171 months of imprisonment. Forbes awaits sentencing.
The defendants have been ordered to pay restitution of more than $3.1 million, and have forfeited gemstones, jewelry, watches, a vehicle, and more than $127,000 in cash seized from them at the time of their arrests.
This matter has been investigated by the U.S. Marshals Service, Federal Bureau of Investigation, Fairfield Police Department and Meriden Police Department. U.S. Attorney Daly also acknowledged the assistance provided by the U.S. Marshals Service and FBI in New York and Pennsylvania; the York, Allentown and Bethlehem Police Departments in Pennsylvania, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Pair from Texas indicted for using card-skimming machines on ATMsRead the Press Release
Two people from Texas were indicted for their use of a card-skimming device at an Automated Teller Machine, said Acting U.S. Attorney David A. Sierleja and FBI Special Agent in Charge Stephen D. Anthony.
A grand jury eturned a three-count indictment charging Cristina Rolea, 24, and Daniel C. Forentin, 30, both of Fort Worth, Texas, with possession of device-making equipment, including an ATM card-skimming device.
Forentin used an ATM card-skimming device to an ATM owned by a financial institution on Dec. 10, 2016. Rolea used an ATM card-skimming device to an ATM owned by a financial institution on Dec. 11 and Dec. 18, 2016, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Owner of Several North Texas Pill Mills Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
DALLAS —John Christopher Ware, a/k/a “Little Chris,” 45, formerly of Dallas but now residing in Houston, appeared yesterday before U.S. District Judge Jane J. Boyle and pleaded guilty to a drug distribution conspiracy stemming from his operation of several “pill mills” in north Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Ware pleaded guilty to one count of conspiracy to distribute a controlled substance (hydrocodone). The conspiracy count carries a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Ware remains on bond pending sentencing. Sentencing is scheduled for August 10, 2017.
Co-conspirator Stanley James, Jr., 57, of Dallas and Houston, pleaded guilty in May 2016 to one count of conspiracy to distribute a controlled substance (hydrocodone). James is scheduled to be sentenced on June 22, 2017.
According to plea documents in the case, Ware and co-conspirators distributed more than 2,000,000 10mg hydrocodone pills through medical clinics in Dallas, Texas and elsewhere. Ware owned and managed these clinics, and operated them illegitimately, knowing that the prescriptions for these pills had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice. Between October 2014 and October 2015 more than 700,000 hydrocodone pills (most of which were 10 mg pills) were distributed in relation to the clinics he owned and operated. The hydrocodone quantities encompass the prescriptions issued by the doctors, physician's assistants, nurse practitioners, and nurses who worked at the clinics that Ware owned, managed, and directed.
A pill mill is a facility that appears to be a medical clinic but in reality distributes large quantities of controlled substances, such as hydrocodone, to the public without regard for medical necessity or therapeutic benefit to the patient. Despite employment of licensed medical practitioners, a pill mill does not operate as a legitimate medical clinic because the controlled-substance prescriptions that are issued are done so with the knowledge that they are not for a legitimate medical purpose in the usual course of professional practice.
According to plea documents in the case, Ware and James owned and operated Great Southwest Medical Clinic on Great Southwest Parkway in Dallas; Arlington Oaks Adult Medical Clinic on Billings Street in Arlington, Texas; and Redbird Family Medical Clinic on Camp Wisdom Road in Dallas. Ware and James owned and operated these three medical clinics under an umbrella company, J.C. Rapha Medical Management Group, LLC.
Ware operated in the following manner at each of the above-identified clinics: The driver, sometimes also known as a “script ring leader,” or another co-conspirator such as someone associated with the clinic, coached the recruit on what to say inside the clinic to obtain a prescription for hydrocodone. The driver or script ring leader paid for the recruit’s visit to the clinic, either by giving the recruit money to pay the clinic or by paying the clinic directly. The clinics only accepted cash from patients seeking pain medications, including hydrocodone, and charged approximately $150 per visit for established patients.
Ware took steps to minimize the possibility of detection by law enforcement at the pill mills, including limiting patients to recruits accompanied by known and trusted drivers. Ware attempted to maximize profit by providing the prescriptions sought by the script ring leaders, including 10mg hydrocodone. To accomplish this, medical practitioners were hired who where willing to write the sought-after prescriptions even though the prescriptions were not being issued for a legitimate medical purpose in the usual course of professional practice.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Myria Boehm is in charge of the prosecution.
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Owner of Newark, New Jersey, Automobile Export Business Admits Filing False Tax Returns and Structuring CrimesRead the Press Release
NEWARK, N.J. – A Newark man today admitted filing false tax returns and structuring cash payments to avoid reporting requirements, Acting U.S. Attorney William E. Fitzpatrick announced.
Okoro Ifeanyi, 55, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements.
According to the documents filed in this case and statements made in court:
Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria.
Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes.
Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.
The filing a false tax return count carries a maximum potential penalty of three years in prison. The structuring count carries a maximum potential penalty of 10 years in prison. Both counts carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 19, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.
Defense counsel: Patrick O’keke Esq., New York
Northern California Restaurant Owner Sentenced to Prison for Obstructing the Tax Laws and Harboring Illegal Aliens for ProfitRead the Press Release
A Ukiah, California restaurateur was sentenced to serve 24 months in prison today for corruptly endeavoring to obstruct the internal revenue laws and harboring illegal aliens for profit, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
According to documents filed with the court, Yaowapha Ritdet, 56, hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah. Ritdet underpaid these employees and instructed them not to speak to anyone about their immigration status. Ritdet also paid her employees in cash and did not pay employment taxes on the cash wages.
Ritdet filed false individual income tax returns for 2007 through 2011 that underreported the gross receipts, sales, and income she received from her two restaurants, and failed to report rental income and a foreign bank account she held in Thailand.
In addition to the term of prison imposed, Ritdet was ordered to serve three years of supervised release and to pay approximately $567,755.65 in restitution to include $70,768.65 to underpaid employees and $496,987 to the Internal Revenue Service (IRS). Ritdet pleaded guilty in August 2016.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS–Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and the U.S. Department of Labor, Wage and Hour Division, which identified the underpayment of wages and overtime, and Trial Attorney Charles O’Reilly of the Tax Division and Assistant U.S. Attorney José A Olivera, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Northern California Restaurant Owner Sentenced to 24 Months in Prison for Obstructing the Tax Laws and Harboring Illegal Aliens for ProfitRead the Press Release
SAN FRANCISCO – Yaowapha Ritdet, a Ukiah, California, restaurateur, was sentenced today to 24 months in prison for corruptly endeavoring to obstruct the internal revenue laws and harboring illegal aliens for profit, announced U.S. Attorney Brian J. Stretch, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Judge Edward M. Chen, U.S. District Judge, following the entry of a plea agreement in August 2016 in which Ritdet admitted committing the crimes.
According to her plea agreement, Ritdet, 56, of Ukiah, admitted she hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah. Ritdet underpaid these employees and instructed them not to speak to anyone about their immigration status. Ritdet also paid her employees in cash and did not pay employment taxes on the cash wages. Ritdet also admitted she willfully filed false individual income tax returns for 2007 through 2011 that underreported the gross receipts, sales, and income received from her two restaurants. In addition, Ritdet acknowledged she failed to report she had a financial interest in an account at a Thai bank.
On August 2, 2016, Ritdet was charged in a superseding information with one count of corrupt endeavor to impede and impair the lawful administration of the internal revenue laws, in violation of 26 U.S.C. § 7212(a), and one count of harboring illegal aliens for private financial gain, in violation of 8 U.S.C. § § 1324(a)(1)(A)(iii), and (B)(i). She pleaded guilty to both counts on August 17, 2016.
In addition to the 24-month prison term and restitution, Judge Chen ordered Ritdet to pay more than $560,000 in restitution— $496,987.00 to be paid to the IRS and $70,768.65 to be paid to the employees whose wages she underpaid. Further, Judge Chen ordered Ritdet to serve three years of supervised release.
Assistant U.S. Attorney José A. Olivera and Trial Attorney Charles O’Reilly of the Tax Division are prosecuting the case. U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg thanked the prosecutors as well as special agents of IRS–Criminal Investigation; Homeland Security Investigations, who conducted the investigation; and the U.S. Department of Labor, Wage and Hour Division, who identified the underpayment of wages and overtime.
North Carolina Businessman Sentenced to Prison for Stealing Approximately $2.9 Million from NFL PlayersRead the Press Release
A High Point, North Carolina businessman, who provided financial services to professional athletes, was sentenced today to 65 months in prison for wire fraud and filing a false 2011 tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the documents filed with the court, Michael Rowan, 46, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including National Football League (NFL) players. Rowan, through CMG and APS, contacted prospective NFL players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once players were drafted by the NFL, Rowan agreed to provide his services to them for an annual fee of between $15,000 and $50,000. Rowan directed his clients to sign an agreement that allowed Rowan to access their bank accounts. Rowan represented that he would only make transactions that his clients authorized and that were for their benefit.
However, Rowan misused his access and transferred more than $2.9 million into accounts he controlled for his own personal benefit and without his clients’ knowledge or consent. For 2009 through 2013, Rowan failed to report more than $1.4 million of the embezzled funds on his federal tax returns, causing a loss to the Internal Revenue Service (IRS) of more than $479,000.
“Michael Rowan betrayed his NFL football player clients by abusing the trust they placed in him as their financial advisor,” said Acting Deputy Assistant Attorney General Goldberg. “He diverted millions of their money to his personal benefit and then cheated the IRS by failing to pay $479,000 in taxes he owed on his illegal income.”
“Michael Rowan’s offer of financial services amounted to financial fraud,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Rowan took advantage of his client’s financial naivety to steal from them and further compounded his greed by attempting to hide the ill-gotten gains from the IRS.”
In addition to the term of prison imposed, Rowan was ordered to serve one year of supervised release and to pay restitution in the total amount of more than $3.4 million including $2,960,295 to the victim clients and $479,352 to the IRS. Rowan pleaded guilty to wire fraud and filing a false tax return in October 2016.
Acting Deputy Assistant Attorney Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–CI and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Businessman Sentenced to Prison for Stealing Approximately $2.9 Million from NFL PlayersRead the Press Release
WASHINGTON – A High Point, North Carolina businessman, who provided financial services to professional athletes, was sentenced today to 65 months in prison for wire fraud and filing a false 2011 tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to the documents filed with the court, Michael Rowan, 46, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including National Football League (NFL) players. Rowan, through CMG and APS, contacted prospective NFL players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once players were drafted by the NFL, Rowan agreed to provide his services to them for an annual fee of between $15,000 and $50,000. Rowan directed his clients to sign an agreement that allowed Rowan to access their bank accounts. Rowan represented that he would only make transactions that his clients authorized and that were for their benefit.
However, Rowan misused his access and transferred more than $2.9 million into accounts he controlled for his own personal benefit and without his clients’ knowledge or consent. For 2009 through 2013, Rowan failed to report more than $1.4 million of the embezzled funds on his federal tax returns, causing a loss to the Internal Revenue Service (IRS) of more than $479,000.
“Michael Rowan betrayed his NFL football player clients by abusing the trust they placed in him as their financial advisor,” said Acting Deputy Assistant Attorney General Goldberg. “He diverted millions of their money to his personal benefit and then cheated the IRS by failing to pay $479,000 in taxes he owed on his illegal income.”
“Michael Rowan’s offer of financial services amounted to financial fraud,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Rowan took advantage of his client’s financial naivety to steal from them and further compounded his greed by attempting to hide the ill-gotten gains from the IRS.”
In addition to the term of prison imposed, Rowan was ordered to serve one year of supervised release and to pay restitution in the total amount of more than $3.4 million including $2,960,295 to the victim clients and $479,352 to the IRS. Rowan pleaded guilty to wire fraud and filing a false tax return in October 2016.
Acting Deputy Assistant Attorney Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–CI and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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New York Man Charged with Firearms and Heroin Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Espinosa, age 48, of New York, New York, was indicted on April 25, 2017, by a federal grand jury on heroin trafficking and firearms offenses.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Espinosa conspired to distribute and possess with the intent to distribute at least 100 grams of heroin (approximately 4,000 doses) in the Middle District of Pennsylvania from June 1, 2012 through August 31, 2015. Espinosa is also charged with aiding and abetting the distribution of heroin on August 31, 2015.
In addition to the heroin trafficking charges, Espinosa was indicted for possessing a firearm in furtherance of his trafficking activities, and with aiding and abetting the use and carrying of a firearm in relation to drug trafficking activities. Espinosa was further charged with aiding and abetting the transport of a stolen firearm from Pennsylvania to New York.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo 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.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 penalties under federal law for the charges are life imprisonment. The heroin conspiracy charge and firearms possession charge each carry a five-year mandatory minimum sentence of imprisonment. 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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New London Man Sentenced to 5 Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARRY STEWART, also known as “P,” 34, of New London, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a long-term investigation headed by the Connecticut State Police Statewide Narcotics Task Force East and U.S. Drug Enforcement Administration into the large-scale distribution of narcotics in southeastern Connecticut. The investigation revealed that Sydney Jackson, also known as “Fatz,” and others regularly acquired kilogram quantities of cocaine and heroin from sources in New York and transported the drugs to southeastern Connecticut. Much of the cocaine was converted to crack cocaine by Jackson in Connecticut, and the drugs were distributed through a network of dealers, including STEWART, in Groton, Norwich, New London, Stonington, Westerly, R.I. and the surrounding area.
During the investigation, law enforcement officers conducted several controlled purchases of crack and heroin from STEWART.
On November 24, 2015, a federal grand jury in Hartford returned a 35-count superseding indictment charging STEWART, Jackson and 11 other defendants with various narcotics trafficking and firearm offenses. In addition, approximately 20 individuals were prosecuted on related state charges.
During the course of the investigation, which included numerous controlled purchases of narcotics, extensive surveillance and the execution of 11 state search warrants, investigators seized approximately 1.3 kilograms of cocaine, one kilogram of crack cocaine, 416 grams of heroin, five firearms and $53,500 in cash.
STEWART has been detained since his arrest on December 9, 2015. On that date, he was in possession of crack and heroin packaged for sale. On November 3, 2016, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 28 grams or more of cocaine base (“crack”).
As part of this sentence, STEWART was ordered to forfeit $3,506 in cash that was seized from him during the investigation and at the time of his arrest.
On October 27, 2016, Jackson pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”). On February 16, 2017, he was sentenced to 10 years of imprisonment.
This matter has been investigated by the Connecticut State Police Statewide Narcotics Task Force East, U.S. Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Department of Correction and Groton City, Groton Town, New London, Norwich and Waterford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Dave Vatti and Joseph Vizcarrondo, with the assistance of Senior Assistant State’s Attorneys Paul Narducci and David Smith of the State’s Attorney’s Office for the Judicial District of New London.
New Jersey Doctor Pays $60,000 to Settle Civil Penalty Claims Involving Violations of Controlled Substances ActRead the Press Release
Oklahoma City, Oklahoma – Jennifer Dismukes, D.O., has agreed to pay $60,000.00 to settle civil penalty claims stemming from allegations that she violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and the regulations promulgated under that Act, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Dr. Dismukes formerly resided and practiced medicine in Texas. During that time, she provided medical services to Texas patients, as well as Oklahoma patients who traveled to her office in Texas. She then moved her main medical practice to New Jersey and transferred her DEA registration. After moving to New Jersey, she continued to see patients in Texas and began providing medical services to Oklahoma patients by telemedicine.
The United States alleges that between January 1, 2013, and March 8, 2016, Dr. Dismukes issued prescriptions for Schedule II, III, and IV controlled substances for patients in Oklahoma without proper authority because she was not licensed to practice medicine in Oklahoma and did not have required DEA or Oklahoma Bureau of Narcotics registrations. In addition, Dr. Dismukes issued prescriptions for Schedule II, III, and IV controlled substances for patients in Texas without proper authority because she did not have a DEA registration for Texas.
In order to resolve the allegations brought by the United States, Dr. Dismukes agreed to pay $60,000.00.
In reaching this settlement, Dr. Dismukes did not admit liability, and the government did not make any concessions regarding the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Agency, Office of Diversion Investigation, and prosecuted by Assistant United States Attorney Ronald R. Gallegos.
Monmouth County, New Jersey, Man Sentenced to Six Years in Prison for Possessing, Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Long Branch, New Jersey, man was sentenced today to 72 months in prison for using his computer to possess and distribute images of child sexual abuse via a peer-to-peer file-sharing network, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Haring, 62, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession and distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Haring admitted that he knowingly used a computer from his home to share images and videos of child sexual abuse with other members of a publicly-available, peer-to-peer file-sharing network. Haring also admitted to possessing at least three videos and 600 images of child sexual abuse on his computer and other electronic devices.
In addition to the prison term, Judge Wolfson sentenced Haring to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Charles M. Moriarty Esq.
Molotov Cocktail Maker Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Christopher Nelson Beno, 53, was sentenced today in federal court on charges involving his illegal possession of a Molotov cocktail. Under federal law, a Molotov cocktail is a device controlled by the federal laws pertaining to firearms and dangerous devices. Beno was indicted in November of 2016 on the charge of being a convicted felon in possession of the device. Beno pled guilty to the federal indictment in January of 2017.
United States District Court Judge Callie V. S. Granade sentenced Beno to 30 months’ imprisonment, to be followed by a three-year term of supervised release. Beno will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, but the judge ordered that Beno pay the $100 special mandatory assessment.
The case was investigated by the Baldwin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/Methamphetamine Trafficker Sentenced to 20 Years in Prison for Trafficking Drugs to HawaiiRead the Press Release
SACRAMENTO, Calif. — Epati Malauulu, 42, of Suisun City, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Malauulu operated a methamphetamine distribution business that purchased high quality crystal methamphetamine in Northern California and distributed it in Hawaii where it sold at a large profit. Between August 2014 and June 2015, Malauulu was responsible for mailing over 15 pounds of methamphetamine to Oahu.
The investigation began in Hawaii and eventually identified Malauulu as the out-of-state methamphetamine supplier. Co-defendants John Ortiz, 45, of Vallejo; Algernon Tamasoa, 28, of Sacramento; and Francisco Poloai, 45, of Dixon, were also charged in the conspiracy in the Eastern District of California. Ultimately, the investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).
This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Solano County Multi-Jurisdictional Methamphetamine Enforcement Team, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, the San Francisco Police Department, the Honolulu Police Department, and others. Assistant United States Attorney Richard Bender prosecuted the Sacramento case.
Co-defendants Ortiz and Tamasoa have pleaded guilty to charges stemming from the methamphetamine trafficking activity. Poloai is scheduled for trial on September 25, 2017. The charges against Poloai are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Massachusetts Man Pleads Guilty to Fraud, Identity Theft ChargesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Medina, 49, of Lawrence, Massachusetts, pleaded guilty today in U.S. District Court to submitting a false document to a government agency, social security fraud and aggravated identity theft.
According to court records, in August 2015, Medina, who was working for an asbestos abatement contractor, used a false name and social security number to gain access to the Portsmouth Naval Shipyard in Kittery. Based on the false information, Medina was cleared for access to the shipyard.
Medina faces up to five years in prison and a $250,000 fine on each of the false document and social security fraud charges and a mandatory consecutive two-year sentence on the aggravated identity theft charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Naval Criminal Investigative Service; the New Hampshire State Police; and the Social Security Administration, Office of the Inspector General.
Manteca Man Sentenced to over 11 Years in Prison for Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. —U.S. District Judge Kimberly J. Mueller sentenced Michael Tamblin, 52, of Manteca, to 11 years and three months in prison today for transporting child pornography.
According to court documents, in September and October of 2015, Tamblin surreptitiously filmed a minor child on numerous occasions using a hidden camera. Once Tamblin had those images, he transported them on a USB drive to his place of employment. On February 8, 2017, Tamblin pleaded guilty to transporting child pornography.
Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain search warrants for Tamblin’s residence and vehicles where they found evidence of Tamblin’s crimes. Tamblin has remained in custody since his arrest on February 19, 2016.
This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorneys Rosanne Rust and Roger Yang prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Man Pleads Guilty to Tax EvasionRead the Press Release
HOUSTON – A local man has admitted to willfully attempting to evade or defeat his individual income taxes, announced Acting U.S. Attorney Abe Martinez and Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI).
According to the plea agreement, Daniel Bart Thedinger willfully filed false joint U.S. Individual Income Tax Returns for years 2009, 2010, 2011 and 2012, failing to report a total of more than $700,000 of income for those years. That income was the result of funds he had diverted from two business partnerships over the years to pay personal expenses, such as private school tuition for his children, renovating his personal residence, vacations and personal training.
During 2012, Thedinger wrote six checks for $15,000 each to a consultant in England and created a false invoice, allegedly from the consultant, to disguise the checks as payments for business expenses. The partnerships claimed the diverted funds as business expenses which reduced the true amounts of income from the partnerships for those years that flowed to Thedinger and were included on Schedules E attached to his IRS forms 1040.
Thedinger has agreed to pay $216,871 in restitution to the IRS to be applied to the additional U.S. individual income taxes he owes for the four years.
U.S. District Judge Lee Rosenthal is set to impose sentencing on Sept. 7, 2017, at which time Thedinger faces up to five years in federal prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Mail Carrier Sentenced for Stealing MailRead the Press Release
WICHITA, KAN. - A Derby man was sentenced Wednesday to 12 months and a day for stealing mail while he worked as a mail carrier, U.S. Attorney Tom Beall said.
Gary W. Yenzer, 34, Derby, Kan., pleaded guilty to one count of theft of U.S. mail. In his plea, he admitted that in August and September 2016 while working as a mail carrier in rural Sedgwick County he stole mail. Investigators learned Yenzer looked for birthday and anniversary cards so he could remove cash and gift cards. He kept the cash and sold some of the gift cards for cash, but he did not use the gift cards for fear of them bring traced to him.
Beall commended the U.S. Postal Service-Office of Inspector General and Assistant U.S. Attorney Brent Anderson for their work on the case.
MS-13 Member Pleads Guilty to RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A member of MS-13’s Enfermos Criminales Salvatrucha clique in Chelsea, Mass., pleaded guilty today in federal court in Boston to RICO conspiracy involving the attempted murder of a rival gang member.
Angel Pineda, a/k/a “Bravo,” 21, a Honduran national who resided in Revere, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy, and admitted responsibility for the attempted murder of a rival 18th Street gang member in Chelsea in September 2014. U.S. District Court Judge F. Dennis Saylor IV Judge deferred accepting the defendant’s plea agreement until sentencing, and scheduled sentencing for July 26, 2017. If the court accepts the plea agreement, Pineda will be sentenced to 10 years in prison and will be subject to deportation after completion of his sentence.
After a three-year investigation, Pineda was one of 61 defendants named in a January 2016 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. Pineda was a member of the Enfermos Criminales Salvatrucha clique in Chelsea. In furtherance of the MS-13 RICO conspiracy, on Sept. 8, 2014, Pineda and another MS-13 member, Jose Vasquez, a/k/a “Little Crazy,” attempted to murder a rival 18th Street gang member by stabbing him in Chelsea.
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. 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.
Pineda is the fourteenth 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.
Larue County, Kentucky, Resident Sentenced to 78 Months in Prison and Ten Years of Supervised Release for Receipt and Possession of Child PornographyRead the Press Release
Ordered to pay restitution to nine identified victims
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., announced today that a Larue County, Kentucky resident was sentenced yesterday in United States District Court by Senior Judge Charles R. Simpson, III, to 78 months in prison followed by ten years of supervised release. The Court further ordered Benjamin Boyd of Hodgenville, Kentucky to pay $65,000 in restitution to be divided between nine identified victims, after he pleaded guilty to receipt and possession of child pornography.
“Receipt and possession of child pornography are not victimless crimes,” stated United States Attorney John Kuhn. “Every image and every video in this case document a horrific moment of pain and damage inflicted upon an innocent and defenseless child. Circulating and viewing these images simply perpetuate the damage and pain for the victims. Mr. Boyd’s lengthy sentence and the substantial award for restitution to be paid to these victims is a just and appropriate outcome.”
According to the factual basis of the plea agreement, Benjamin Boyd, admitted to receiving and possessing 3,595 images and 2,778 videos of child pornography.
On August 29, 2015, an investigator with Kentucky Office of the Attorney General used
a peer-to-peer program to download 8 files of child pornography from a specific IP address.
That IP address was tracked to Benjamin Boyd of Hodgenville.
Investigators with the Attorney General’s office served a search warrant on Boyd’s residence, on October 15, 2015, and seized numerous electronic storage devices containing child pornography. A forensic review of the electronic devices revealed images and videos of child pornography. The collection contained images of prepubescent children and sadomasochistic conduct. The forensic report also revealed numerous dates and times that Boyd downloaded child pornography via the peer-to-peer program. The downloads occurred on dates ranging from May 4, 2014, through September 9, 2015.
Assistant United States Attorney A. Spencer McKiness prosecuted the case. The Kentucky Attorney General’s Office conducted the investigation.
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.
Kingston Woman Charged with Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shavonne Saxon, age 29, a Kingston, Pennsylvania resident, was indicted on April 25, 2017, by a federal grand jury on crack cocaine trafficking, cocaine trafficking, and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Saxon possessed with the intent to distribute more than 28 grams of cocaine base (crack), and possessed with the intent to distribute cocaine, in March and April 2017. The indictment also alleges that Saxon possessed a firearm in furtherance of her drug trafficking and with being a felon in possession of a firearm and ammunition.
The case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and by the Kingston Police Department. Assistant United States Attorney Phillip J. Caraballo 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 penalties under federal law for the charges are life imprisonment. The charge for possessing over 28 grams of crack cocaine, and the charge for possessing a firearm in furtherance of narcotics trafficking each carry a five-year mandatory minimum sentence of imprisonment. 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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Jim Thorpe Man Indicted on Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Isaiah Moore-Brown, age 28, a Jim Thorpe, Pennsylvania resident, was indicted on April 25, 2017, by a federal grand jury on crack cocaine trafficking, cocaine trafficking, and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Moore-Brown with conspiring to distribute and possess with the intent to distribute more than 28 grams of cocaine base (crack), and with possessing with the intent to distribute cocaine and crack cocaine, from December 1, 2012 through January 11, 2017. Moore-Brown also is charged with possessing a firearm (Springfield Arms .45, Ruger LC .380, and Smith and Wesson .9mm) in furtherance of his narcotics trafficking and with being a felon in possession of firearms and ammunition. The indictment also seeks forfeiture of the firearms and ammunition.
The matter was investigated by Homeland Security Investigations and by the Pennsylvania Office of the Attorney General. Assistant United States Attorney Phillip J. Caraballo 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 penalties under federal law for the charges are life imprisonment. The charge for conspiring to distribute and possess with the intent to distribute over 28 grams of crack cocaine, and the charge for possessing a firearm in furtherance of narcotics trafficking each carry a five-year mandatory minimum sentence of imprisonment. 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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Jewelry Robber Sentenced to 150 Months in Federal PrisonRead the Press Release
DALLAS — Hilton Murdock Aitch, age 56, of Houston, Texas was sentenced today by U.S. District Judge Ed Kinkeade to serve a total of 150 months in federal prison, following his guilty plea in November 2016 to his role in the conspiracy to rob Tilak Jewelers in Irving, announced U.S. Attorney John Parker of the Northern District of Texas.
Aitch pleaded guilty to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Aitch has been in custody since his arrest in March 2016.
Aitch was charged along with eleven other individuals in an indictment in February 2016. Afraybeom Traverom Jackson, 27, Joshua Deunte Caldwell, 26, Dominique Pearson, 25, Irving Tyrone Flanagan, 47, Larry Solomon, 42, Terrence Lynn Thompson, 53, Anthony Ray Turner, Jr, 25, Treveon Dominique Anderson, 26, Michael Cornelious, 27, Xavier Rashad Ross, 25, and Vanlisa Scott, 47, were each charged with one count of one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. Out of the twelve, nine have pleaded guilty, two are set for trial in January 2018, and one has not made an appearance in the Northern District of Texas.
According to plea documents filed in the case, in the early morning hours on November 17, 2013, Aitch, Jackson, Caldwell, Pearson, Flanagan, Solomon, Aitch, Thompson, Turner, Anderson, Cornelious, and Ross, traveled from Houston, Texas, to the Dallas, Texas, area with the specific intent to rob the Tilak Jewelers store located at 8300 North MacArthur Boulevard, Suite 100, Irving, Texas. They stole a cargo van and a minivan after they arrived in the Dallas, Texas, area in order to avoid detection and apprehension by law enforcement.
Jackson, Caldwell, Pearson, Turner, Anderson, and Ross drove together in the stolen cargo van to the Tilak Jewelers store, with the specific intent to commit the robbery. Aitch, Flanagan, and Thompson participated in planning the robbery and positioned themselves outside the Tilak Jewelers store, but maintained communications with Jackson for the purpose of monitoring the robbery and alerting the participants of the presence of law enforcement.
Prior to entering the Tilak Jewelers store, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross disguised their identities by wearing long-sleeved clothing, long pants, gloves, and items covering their faces. Jackson and the others entered the jewelry store by smashing the locked glass door with a hammer. After gaining entry into the store, they restrained the owners of the jewelry store with zip-ties, smashed jewelry display cases, and took jewelry from the owners and employees of Tilak Jewelers.
After securing the jewelry, Jackson, Caldwell, Pearson, Turner, Anderson, and Ross fled from the robbery using the stolen cargo van. They abandoned the cargo van at a predetermined location, where Solomon was waiting in the stolen minivan. Solomon then drove them to a second predetermined location, where Cornelious was waiting in a switch vehicle. Cornelious then used the switch vehicle to further facilitate their flight from the robbery and avoid detection and apprehension by law enforcement. Scott, who had traveled from Houston, met Aitch and the other coconspirators at a different location and took possession of the stolen jewelry for the purpose of safely transporting it to Houston, Texas.
The Irving Police Department, Houston Police Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Jamaican Man Sentenced on Immigration ChargeRead 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 David Hill, 39, of Rochester, NY, who was convicted of illegal reentry after having been previously deported due to a conviction for an aggravated felony, was sentenced to 18 months in prison by U.S. District Judge Charles Siragusa.
Assistant U.S. Attorney Kyle Rossi, who handled the case, stated that the defendant, who is a citizen of Jamaica, was convicted of Robbery in state court in 2006. After serving a 42-month sentence, Hill was deported to Jamaica and prohibited from reentering due to his conviction. On August 16, 2016, the defendant was found in the Western District of New York, having unlawfully reentered the United States. Hill was found after an investigation revealed that the defendant had attempted to obtain false identification documents at the New York State Department of Vehicles using an alias.
The sentencing is the result of an investigation by the United States Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; the New York State Police, under the direction of Major Richard Allen; and the New York State Department of Motor Vehicles, under the direction of Executive Deputy Commissioner Theresa Egan.
IRS Impersonators Steal Nearly $9 Million from Thousands of Victims in Nationwide SchemeRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), and Robert G. Feldt, Special-Agent-in-Charge, Social Security Administration, Dallas Field Division, announced today the unsealing of a superseding indictment and the Tuesday arrests of seven individuals who participated in a nationwide scheme to steal nearly $9 million from unsuspecting taxpayers by impersonating Internal Revenue Service (IRS) agents.
The superseding indictment, returned by a grand jury in the Eastern District of Arkansas on April 4, 2017 and unsealed today, charges 10 individuals with conspiracy to commit wire fraud. Two defendants—Jeniffer Valerino Nuñez and Dennis Delgado Caballero—were also named in 21 counts of wire fraud. Nuñez and Caballero, who were previously arrested in Miami on May 23, 2016, and remain in federal custody, were first named in the original indictment filed on June 8, 2016.
Tuesday’s operation, which lasted into the evening, resulted in the arrest of seven of the individuals named in the superseding indictment. Those seven are all Cuban nationals who were living in south Florida, primarily Miami. Tuesday’s arrests took place in Miami and West Palm Beach, Florida. Lazaro Hernandez Fleitas, 34, of Orlando, remains at large.
“This fraud scheme has victimized thousands of innocent people all across the country, including a number of citizens here in Arkansas,” Harris said. “These defendants pretended to be government employees and scared victims with spurious threats of legal action and imprisonment, and in doing so sought to take advantage of the most vulnerable among us. This indictment reflects our commitment to protecting our citizens from fraud, and holding accountable those who steal from honest citizens.”
In the scheme, individuals purporting to be employees of the IRS would call and threaten victims with legal action, arrest, and imprisonment for a supposed debt owed to the IRS. The callers made these threats and used other methods of intimidation to persuade the victims to wire money utilizing MoneyGram, Walmart-2-Walmart Money Transfer, and other wire-transfer services.
“No legitimate employee of the United States Treasury Department or the Internal Revenue Service will demand that anyone make payments via MoneyGram, Western Union, Walmart-2-Walmart Money Transfer, or any other money wiring method, for any debt to the IRS or the Department of the Treasury,” George said. “Nor will the Department of the Treasury demand that anyone pay a debt or secure one by using iTunes cards or other prepaid debit cards. If you receive one of these calls, hang up immediately and go to the Treasury Inspector General for Tax Administration (TIGTA) scam reporting page to report the call.”
In addition to Arkansas, investigators located wire transfer collections as part of the scheme in the following states: Oklahoma, Colorado, Indiana, Minnesota, Wisconsin, Utah, Idaho, Kansas, Missouri, Florida, Illinois, Iowa, Louisiana, Texas, Tennessee, Mississippi, Alabama, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Maryland, New Jersey, Pennsylvania, Massachusetts, Rhode Island, and New Hampshire, and Washington, D.C. Currently, investigators have identified 7,797 nationwide victims for a total discovered loss amount of $8,958,995.71.
“These arrests demonstrate that TIGTA and its law enforcement partners continue to make significant progress in our investigations related to the IRS impersonation scam that continues to sweep the country,” George said. “Over the past three years, this scam has resulted in reported taxpayer losses of more than $55 million. The scammers are relentless and so are we. Our investigators will not rest until we have brought those responsible for this scheme to justice.”
“The Social Security Administration, Office of the Inspector General (SSA-OIG) is committed to closely working with our law enforcement partners to pursue identity thieves who deceive and defraud American taxpayers,” Feldt said.
The maximum penalties for conspiracy to commit wire fraud and wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, and not more than three years supervised release.
Investigators verified the identity of the suspects and their activities through a variety of investigative methods. TIGTA and the SSA-OIG led the investigation. The case is being prosecuted by Assistant United States Attorneys Hunter Bridges and Jana Harris.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
US v. Caballero et al, Case No. 4:16-cr-124-BRW
Caballero IRS Scam Superseding Indictment
DEFENDANTS
Angel Chapotin Carrillo, 42, Hialeah, Florida
Dennis Delgado Caballero, 39, Miami, Florida
Ricardo Fontanella Caballero, 25, Hialeah, Florida
Elio Carballo Cruz, 40, Miami, Florida
Esequiel Bravo Diaz, 23, Miami, Florida
Lazaro Hernandez Fleitas, 34, Orlando, Florida
Jeniffer Valerino Nuñez, 21, Miami, Florida
Yosvany Padilla, 26, Hialeah, Florida
Alfredo Echevarria Rios, 43, Miami, Florida
Alejandro Valdes, 25, West Palm Beach, FloridaHudson County, New Jersey, Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man who was arrested yesterday while robbing a Wells Fargo Bank made his initial appearance today in federal court, Acting U.S. Attorney William E. Fitzpatrick announced.
Billy Le, 25, is charged by complaint with one count of bank robbery. Le appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to the complaint:
On April 25, 2017, Le entered a Wells Fargo Bank in Jersey City wearing a black gas mask and holding a black duffle bag in one hand and a long metal rod with a red tip in the other hand. Waiving the metal rod, Le approached a teller and yelled, “Give me your money. Give me all your money.” A different bank employee immediately called the police.
Still wielding the metal rod, Le climbed onto the teller’s counter and threatened the teller with violence. A bank customer approached Le from behind, pulled him off the counter, and held him down until law enforcement officers arrived minutes later.
Law enforcement officers arrested Le at the scene and recovered the duffle bag and the metal rod, which appeared to be a pipe bomb. The officers evacuated the bank, after which Emergency Service Unit officers examined the device and determined that it was not an explosive. The duffle bag contained, among other things, a large knife.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hudson County Prosecutor’s Office, under Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Chief Philip D. Zacche, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Greenville Man Receives 10 Years on Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alton Davis, age 47, of Greenville, was sentenced today in federal court in Greenville, for possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce Howe Hendricks of Charleston sentenced Davis to 120 months in the Bureau of Prisons.
Evidence presented at the change of plea hearing established that on October 14, 2015, an undercover officer downloaded from the defendant two child porn images using peer-to-peer software. Based on this download, law enforcement determined his IP address, street address, and obtained a search warrant.
On November 10, 2015, the warrant was executed at the defendant’s home. He was present and agreed to talk. He admitted to using his computer and the internet to search for pornography and using search terms associated with child pornography. He admitted to viewing images of child porn on his computer. Davis was previously convicted in 2004 of child pornography possession.
The case was investigated by agents of the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Goddard Man Sentenced in Two Commercial RobberiesRead the Press Release
WICHITA, KAN. B A Goddard man was sentenced Wednesday to 41 months in federal prison for two commercial robberies in Wichita, U.S. Attorney Tom Beall said.
Austan Kinnaird, 26, Goddard, Kan., pleaded guilty to two counts of robbery. In his plea he admitted that on Dec. 24, 2015, he robbed Golf Headquarters at 848 N. Webb Road in Wichita. He entered the store wearing a wig and a cap. He showed the clerk what looked like a firearm and demanded money before he fled the store with the stolen cash.
In his plea, he further admitted that on April 29, 2016, he robbed a branch of Intrust Bank in a Dillons grocery store at 9450 E. Harry in Wichita. He gave the teller a note demanding money and fled the bank with the cash. He was identified after surveillance photos were made public.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Four from Northeast Ohio indicted for federal firearms violationsRead the Press Release
Four men were indicted on federal firearms charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Duane E. Spagnola, 30, of Warren, Dwaylen D. Sellers, 22, of Youngstown, and Corey D. Johnson, 26, of Cleveland, are charged with being felons in possession of a firearm and ammunition. Timothy C. Bowers, 45, of Conneaut, is charged with being a felon in possession of firearms and ammunition, and maintaining a drug premises.
The cases are unrelated.
Spagnola possessed a Colt, model Trooper Mark III, .357 magnum caliber revolver, and ammunition,
on Feb. 21, 2017, after having been convicted of attempted felonious assault in the Cuyahoga County Court of Common Pleas in 2014, according to the indictment.
Sellers possessed a Colt, model Trooper MK V, .357 Magnum revolver, and ammunition on Feb. 3, 2017, after having been convicted of robbery in the Mahoning County Court of Common Pleas in 2016, according to the indictment.
Johnson had a Smith and Wesson .40-caliber pistol and ammunition on Oct. 3, 2016, despite a 2010 conviction in Cuyahoga County Common Pleas Court, according to the indictment.
Bowers possessed a Hi-Point, model 4095, .40 caliber rifle, a New England Firearms, model Pardner, 20-gauge shotgun, a Hopkins & Allen, .32 caliber revolver, a Savage Arms, model Mark II, .22 caliber rifle, and ammunition on Jan. 11, 2017, after having been convicted of illegal manufacturing of drugs in the Ashtabula County Court of Common Pleas in 2008, according to the indictment.
Bowers also maintained a premises on East Main Road in Conneaut, for the purpose of distributing and using controlled substances, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The Spagnola case is being prosecuted by Assistant U.S. Attorney David M. Toepfer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Warren Police Department.
- Sellers case is being prosecuted by Toepfer following an investigation by the ATF and the Youngstown Police Department.
- Johnson case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the FBI Safe Streets Task Force and the Twinsburg Police Department.
The Bowers case is being prosecuted by Toepfer following an investigation by the ATF, the Conneaut Police Department, and the Ohio Adult Parole Authority.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.