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26 April 2017
Four Defendants Sentenced to Prison in Multi-Million Dollar Health Care Fraud Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Four defendants, including two sober home owners, the clinical director of a substance abuse treatment center, and a sales representative for multiple diagnostic laboratories were sentenced to prison for their participation in a health care fraud scheme that involved the filing of fraudulent insurance claim forms and licensing documentation.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, was sentenced to 84 months in prison, to be followed by one year of supervised release. Michael Bonds, 45, of Delray Beach, was sentenced to 48 months incarceration, to be followed by three years of supervised release. Stefan Gatt, 27, of Deerfield Beach, was sentenced to 18 months in prison, to be followed by three years of supervised release. The defendants previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Davis also pled guilty to one count of managing, leasing, profiting from, and making available a place (one of her sober homes) for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a).
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, was sentenced to 57 months in prison, to be followed by 3 years of supervised release. Gregory previously pled guilty to one count of conspiracy to commit health care fraud and one count of knowingly falsifying a matter involving health care benefit programs, in violation of Title 18, United States Code, Sections 1035(a)(1) and 2.
Sentencing is scheduled for May 17, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, and Laura Chatman, 44, of Boynton Beach. Sentencing is scheduled for June 7, 2017 for Donald Willems, 40, of Weston. A hearing regarding restitution for all defendants will occur on July 7, 2017. Trial is scheduled for September 5, 2017 for defendant Joaquin Mendez, 52, of Miramar.
According to court documents, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, Chatman, Davis, and Bonds permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs. Defendant Gregory was the Clinical Director of Reflections Treatment Center and Journey to Recovery, and was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees. Gregory was aware that Kenneth Chatman was the true owner of some of these sober homes, but they were placed in other people’s names in an attempt to hide Chatman’s true ownership and control over the businesses. Gregory also knew that Chatman was paying kickbacks and bribes to sober home owners for referring their residents to Reflections and Journey for treatment, and that these kickbacks and bribes were disguised as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” Bonds, Davis, and Gregory further admitted that bribes and kickbacks were paid to insured patients who attended treatment, in the forms of free or reduced rent and other items. Bonds and Davis also admitted that residents of their sober homes were continuing to use controlled substances and that their sober homes were not, in fact, places where persons abstained from the use of drugs and alcohol. Rather, the defendants allowed their sober homes to be used by residents to continue abusing drugs and alcohol while attending ineffective and improperly licensed treatment centers in exchange for free rent.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results. Defendant Gatt admitted that he knew the bodily fluid samples that he collected from Reflections came from employees and that he paid kickbacks to Chatman for Chatman to continue referring lucrative lab testing to him. Defendant Gregory admitted that the drug testing was “useless” because it was not used to direct the patients’ treatment and that as many as 90% of patients were testing positive for the continued use of controlled substances while purportedly obtaining treatment. Gregory knew that Kenneth Chatman was advising patients that they were allowed to continue using controlled substances. On some occasions when Gregory recommended referring relapsed patients to detox or other facilities, Chatman, who had no medical or clinical training, would overrule Gregory’s recommendations because discharging the patients would end Chatman’s ability to bill the patients’ insurance plans.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers. Gregory, who also owned a consulting firm that assisted substance abuse treatment facilities in obtaining licensure, filed documents with the Florida Department of Children and Families and assisted with audits to help Chatman receive permanent DCF licenses for Reflections and Journey.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Representative Erik Fresen Pleads Guilty for Failing to File Tax ReturnRead the Press Release
Former State Representative Erik Fresen pled guilty today, before U.S. District Judge Robert N. Scola, for failing to file a federally required tax return.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Erik Fresen, 40, of Miami-Dade County, pled guilty to one count of failing to file a tax return, in violation of Title 26, United States Code, Section 7203. He faces a maximum sentence of one year in prison.
According to the court record, Fresen and his wife were required to file a tax return with the Internal Revenue Service (“IRS”) by April 15, 2012, because they had total gross income in 2011 of $270,236. This included Fresen’s income from a private company ($150,000), where Fresen was employed as a zoning consultant, and from the State of Florida ($28,891), where Fresen was employed as a legislative representative. Both of these entities reported Fresen’s income to the IRS on Form W-2 and withheld from Fresen’s wages federal income tax due and owing on the defendant’s earnings. Fresen also received non-Form W-2 income for consulting services he provided through a company named Neighborhood Strategies LLC and he failed to pay taxes on this unreported portion of his 2011 income, in the amount of $30,324. Despite knowing that he was required to file a tax return with the IRS based on these various sources of income, Fresen failed to timely file a tax return for the 2011 tax year.
Mr. Greenberg commended the investigative efforts of IRS-CI for their work on this case. This case is being prosecuted by Assistant U.S. Attorneys Harold E. Schimkat and Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former RMBS Trader Sentenced to 2 Years in Prison, Fined $2 Million, for Securities FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JESSE C. LITVAK, 42, of Boca Raton, Fla., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for engaging in fraudulent residential mortgage-backed securities (RMBS) trades. Chief Judge Hall also ordered LITVAK to pay a $2 million fine.
“This sentence sends an unequivocal message that fraud in the residential mortgage backed securities trading market will be met with serious punishment,” said U.S. Attorney Daly. “Jesse Litvak took advantage of his victims through his repeated and brazen lies, and as the Court correctly found, Litvak’s lies led to more than $6 million in unearned profits for his employer. Simply put, Litvak lied to investors to cheat them and make more money for himself. This has been a demanding and lengthy prosecution. I thank our prosecutors and the SIGTARP and FBI agents for their tireless professionalism throughout this case. Our criminal investigations of individuals and institutions involved in fraudulent RMBS trading activities remain active and ongoing.”
“Today former Jefferies trader Jesse Litvak was sentenced to federal prison for lying to customers about the prices of residential mortgage backed securities to criminally enrich his firm’s profit and his bonus based on the profit,” said Christy Goldsmith Romero, Special Inspector General for TARP. “This fraudulent pursuit of profit victimized customers including a fund trading with taxpayer dollars – part of a TARP program that unlocked frozen credit markets during the crisis. Despite making more than $15 million in four years, Litvak was motivated by greed to lie in 76 trades with 35 victims. Now Litvak has faced justice for his crimes. Since his arrest by SIGTARP special agents, broker dealers have changed their sale practices to prevent this type of fraud. SIGTARP commends U.S. Attorney Daly and prosecutors Jonathan Francis, Heather Cherry and William Nardini and for fighting crime in the residential mortgage backed securities market.”
“The prison term imposed today serves as another example that justice prevails over greed, deceit and criminal behavior,” said FBI Special Agent in Charge Ferrick.
On January 27, 2017, a jury found LITVAK guilty of one count of securities fraud. According to the evidence introduced during the trial, in response to the 2008 financial collapse, the U.S. Department of Treasury introduced the Legacy Securities Public-Private Investment Program (PPIP), and used billions of dollars of bailout money from the Troubled Asset Relief Program (TARP) to restart the trading markets for many troubled securities, including certain kinds of RMBS. The program created nine PPIP funds, and more than 100 firms applied to manage the funds.
LITVAK was a senior trader and managing director at Jefferies & Co, Inc. (“Jefferies”), a global securities and investment banking firm headquartered in New York. Jefferies also had a trading floor in Stamford, Conn., where LITVAK and other members of its Mortgage and Asset-Backed Securities trading group worked.
The jury found that LITVAK engaged in a scheme to defraud. As a broker-dealer, only LITVAK – not the bond seller or buyer – knew the selling and asking prices of the parties. LITVAK exploited this information by misrepresenting to his PPIP fund victim the price Jefferies paid for a RMBS bond in order to increase Jefferies’ profit on the trade.
LITVAK has been released on bond since his arrest on January 28, 2013.
On March 7, 2014, LITVAK was convicted after trial of 10 counts of securities fraud, one count of TARP fraud and three counts of making false statements to the government. Chief Judge Hall subsequently sentenced him to 24 months of imprisonment and a fine of $1.7 million. LITVAK appealed his conviction and, on December 8, 2015, the U.S. Court of Appeals for the Second Circuit reversed the judgment of conviction as to the TARP fraud and making false statement charges, and remanded the matter for a new trial on the securities fraud charges.
The investigation of this matter revealed that members of Jefferies’ management in the fixed income division became aware that Jefferies employees were making misrepresentations to customers and did nothing to stop it. Jefferies has cooperated with the federal criminal investigation and paid a total penalty of $25 million as part of a non-prosecution agreement with the government. The penalty included up to $11 million in restitution to victims and up to a $4,200,402 penalty to the U.S. Securities and Exchange Commission (SEC). Jefferies also addressed deficiencies in the compliance and ethics practices and policies of its Mortgage and Asset-Backed Securities Trading group. These measures included Jefferies’ agreement to retain an Independent Compliance Consultant to conduct a review of Jefferies’ policies and procedures for detecting and preventing fraud in connection with the purchase or sale of RMBS.
This matter was investigated by SIGTARP and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Jonathan Francis, Heather Cherry and William Nardini.
Former New York Resident Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
A former resident of Poughkeepsie, New York, pleaded guilty today in U.S. District Court in the Southern District of New York to filing fraudulent tax returns for others and for himself, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joon H. Kim for the Southern District of New York.
“Just about a week ago, many Americans did their civic duty and sent off their returns to the IRS, enclosing checks for taxes duly owed,” said Acting Deputy Assistant Attorney General Goldberg. “They have the right to expect that those like Damyon Shuler who threaten the integrity of the tax system by preparing fraudulent returns and submitting false refund claims will be fully prosecuted.”
“Damyon Shuler stole from the U.S. Treasury by preparing and filing false tax returns,” said Acting U.S. Attorney Kim. “We thank our partners at the Justice Department’s Tax Division and IRS Criminal Investigations for their work in bringing Shuler’s crimes to light.”
“People who create and promote fraudulent tax schemes against the United States, will be held accountable,” said Special Agent in Charge James D. Robnett of the IRS-CI New York Field Office. Today’s guilty plea by Mr. Shuler again emphasizes that IRS-Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
Damyon Shuler, 47, pleaded guilty to filing his own fraudulent tax return and filing a fraudulent return on behalf of another taxpayer. Between February 2010 and March 2011, Shuler approached relatives and others and told them that he could claim slave reparations on their behalf by filing tax returns with the IRS, for which he charged a $4,000 to $5,000 fee. Shuler then filed 30 returns with the IRS on behalf of other taxpayers, claiming bogus refunds of between $48,184 and $61,300 on each return. To generate the fraudulent refunds, Shuler reported fake capital gains income and taxes paid on that income in the exact same amount. He also attached to each return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Black Invest Taxes” had paid the taxes to the IRS. To conceal that he prepared these returns, Shuler did not list himself as the preparer. Shuler also filed a fraudulent 2009 income tax return for himself claiming a refund of $46,685 based on the same scheme. In total, Shuler’s fraudulent refund scheme led to losses of more than $1.2 million.
Sentencing is scheduled for Sept. 14. Shuler faces a statutory maximum sentence of three years in prison for each count of filing a fraudulent return, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Kim praised the outstanding work of special agents of IRS–CI, who conducted the investigation, and Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former New York Resident Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced that DAMYON SHULER pled guilty today to charges relating to his preparation and filing of federal income tax returns that sought refunds based on the fraudulent claim that the taxpayers were entitled to slave-reparations payments.
Acting Manhattan U.S. Attorney Joon H. Kim said: “Damyon Shuler stole from the U.S. Treasury by preparing and filing false tax returns. We thank our partners at the Justice Department’s Tax Division and IRS Criminal Investigations for their work in bringing Shuler’s crimes to light.”
Tax Division Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Just about a week ago, many Americans did their civic duty and sent off their returns to the IRS, enclosing checks for taxes duly owed. They have the right to expect that those like Damyon Shuler who threaten the integrity of the tax system by preparing fraudulent returns and submitting false refund claims will be fully prosecuted.”
IRS-CI Special Agent in Charge James D. Robnett said: “People who create and promote fraudulent tax schemes against the United States will be held accountable. Today’s guilty plea by Mr. Shuler again emphasizes that IRS-Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
In January 2011, SHULER prepared a 2010 federal income tax return for a client claiming a bogus refund of $61,300. To generate the fraudulent refund, SHULER reported a fake capital gain of $60,575 and a tax paid on that income in the exact same amount. He also attached to the return a form falsely reporting that a Treasury Department office or program identified as “Overpayment of Taxes Black Investme (sic)” had paid the taxes to the IRS. To conceal that he prepared this return, SHULER did not list himself as the preparer.
In February 2010, SHULER also prepared a 2009 federal income tax return for himself that included a false Form 2439 claiming that taxes had been paid to the IRS on his behalf in the amount of $50,575 and fraudulently claiming a refund of $46,685.
SHULER has agreed to pay restitution to the IRS in the amount of $1,233,130 for this tax scheme.
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SHULER, 47, pled guilty to the filing of his own false income tax return and the preparation and filing of a return on behalf of one of his clients. SHULER faces a statutory maximum sentence of three years in prison and a $250,000 fine on each of the two counts to which he pled guilty, and will be sentenced before United States District Judge Nelson S. Román on September 14, 2017, at 9:30 a.m.
Mr. Kim praised the outstanding work of the Internal Revenue Service, Criminal Investigation Division. He also thanked the U.S. Department of Justice’s Tax Division for its significant assistance in the prosecution.
This case is being handled by the Office’s White Plains Division. Assistant Chief Andrew J. Kameros of the Tax Division and Assistant U.S. Attorney Olga I. Zverovich are in charge of the prosecution.
Former Nashville General Sessions Judge Indicted on Federal Obstruction ChargesRead the Press Release
Cason “Casey Moreland, 59, of Nashville, Tenn., was indicted by a federal grand jury today on five counts of obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Moreland was initially arrested on March 28, 2017, pursuant to a criminal complaint charging him with several obstruction charges.
According to the indictment, Moreland was a General Sessions Judge in Nashville, Tenn. and in February 2017, he became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury. The indictment alleges that after learning of the nature of the investigation, Moreland took steps to obstruct and interfere with the investigation by devising a scheme to pay a material witness to recant her previous statements, which implicated his criminal conduct in trading sex for judicial favors.
The scheme included Moreland’s attempt to disguise his involvement in the obstruction by using a burner phone registered in a fictitious name and communicating only through an individual who subsequently became an informant, working at the direction of the FBI. The indictment also alleges that Moreland took further actions and devised a scheme to have drugs planted in the witness’ car and to orchestrate a traffic stop by police, in which the drugs would be found, so that she would be arrested and her credibility destroyed.
Counts 1, 2 & 5 of the indictment carry a maximum penalty of 20 years in prison. Counts 3 &4 carry a maximum of 10 years in prison. Each count also carries a fine of up to $250,000.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender and Trial Attorney Lauren Bell, of the Public Integrity Section of the Department of Justice.
Former Louisville Metro Police Department Detective Sentenced to Five Months Incarceration and Five Months Home Detention – Pleaded Guilty to Theft from Interstate ShipmentRead the Press Release
Stole contents of packages while working as a drug interdiction task force officer
Forfeited $74,745.99
LOUISVILLE, Ky. - United States Attorney John E. Kuhn, Jr. today announced the five month prison sentence followed by five months home detention, of a former Louisville Metro Police Department Detective, by Senior Judge Thomas B. Russell, in United States District Court, for stealing contents of packages while working as a drug interdiction task force officer.
Kyle Willett, 48, of Spencer County, Kentucky, remains free on an unsecured bond following today’s sentencing hearing. Willet waived indictment by grand jury and plead guilty to a felony Information on December 21, 2016, before Magistrate Judge Dave Whalin, charging the former detective with theft from interstate shipment. A condition of the plea agreement required Willet to forfeit $74,745.99.
Willett admitted to stealing cash from a United Parcel Services (UPS) shipping sorting facility in Louisville, Kentucky, while working as a drug interdiction task force officer.
From January 2016 through August 2016, Willett, while working as an interdiction task force officer, would identify UPS packages that possibly contained cash. He would then take the packages to his vehicle and open them. On a number of occasions, Willett then stole the contents of packages. During this period, he stole approximately $74,745.99 in cash from these packages. As part of the plea agreement, Willett forfeited proceeds traceable (directly and indirectly) to such violation, including but not limited to: a) $72,000 in United States Currency; b) $520.00 in United States Currency; and c) $2,225.99 in United States Currency.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Louisville Metropolitan Police Department’s Public Integrity Unit and the Federal Bureau of Investigation (FBI).
Former Investment Advisor Sentenced to 72 Months in Prison for $5 Million Securities Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the sentencing of BRADLEY THOMAS SMEGAL, 63, to 72 months in prison for stealing more than $5.1 million from several of his investment advisory clients. SMEGAL, who pleaded guilty on August 11, 2016, to two counts of securities fraud, was sentenced today before U.S. District Judge David S. Doty in Minneapolis, Minn.
“The defendant stole from clients who trusted his professional investment advice,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office. “The sentence handed down today sends a clear message that those who abuse their positions of trust for personal gain will be brought to justice and held accountable for their crimes.”
According to his guilty plea and documents filed in court, SMEGAL was a registered broker and investment advisor from 1980 until May 2012 when the Financial Industry Regulatory Authority (FINRA) barred him from the securities industry.
According to his guilty plea and documents filed in court, between August 2007 and January 2013, SMEGAL convinced several investment advisory clients to invest in entities in which SMEGAL had an undisclosed ownership or management role, or otherwise controlled the bank accounts. SMEGAL told investors that these entities were involved in international infrastructure and mining projects, among other things. SMEGAL, without disclosing his personal stake, often described the investments as conservative and guaranteed specific rates of return to the clients.
According to his guilty plea and documents filed in court, SMEGAL fraudulently convinced his clients to invest approximately $5.14 million into these entities. He diverted $825,900 of those funds to his personal bank account. As part of an effort to hide this theft, SMEGAL often routed the money through multiple bank accounts before depositing it into his personal account. In order to keep the scheme going, SMEGAL sometimes made Ponzi-type payments to investors.
According to his guilty plea and documents filed in court, just prior to being barred by FINRA, in November 2011, Wells Fargo, where SMEGAL had been working, terminated his employment. SMEGAL had not disclosed to his employer that he had a financial interest in all of the entities to which he steered his investment advisory clients. After he was terminated, SMEGAL led certain clients to believe that he was still employed by Wells Fargo.
This case is the result of an investigation conducted by the FBI and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney David M. Maria.
Defendant Information:
BRADLEY THOMAS SMEGAL, 63
Minneapolis, Minn.
Convicted:
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Securities fraud, 2 counts
Sentenced:
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72 months in prison
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Two years of supervised release
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$4,978,195.35 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Former Framingham Housing Authority Employee Sentenced for Embezzling Rent PaymentsRead the Press Release
BOSTON – A Milford woman was sentenced yesterday in federal court in Boston in connection with embezzling over $70,000 in rent payments owed to the Framingham Housing Authority (FHA).
Rosa A. Famania, 33, was sentenced by U.S. District Court Chief Judge Patti B. Saris to five months in prison and three years of supervised release. In addition, Famania must complete five months in a residential or inpatient substance abuse facility upon her release from prison and pay approximately $70,649 in restitution to the FHA. In December 2016, Famania pleaded guilty to one count of embezzling money from an agency receiving federal funds.
In February 2010, Famania began working for FHA as an accounting assistant. She resigned from her position in August 2015, shortly after FHA suspended her in connection with an internal investigation into missing rent payments. Famania’s responsibilities at the FHA included collecting cash rent payments from FHA tenants, recording the cash payments in the FHA electronic accounting system, securing the cash payments in a locked cash box and depositing the cash payments into an FHA bank account.
Between February 2014 and August 2015, Famania stole approximately 181 cash rental payments totaling $70,649 from FHA and used an FHA accounting software program to conceal the ongoing theft. Specifically, Famania collected the cash rent payments, but rather than depositing the payments into the FHA bank accounts, she kept the payments and adjusted the tenants’ balance downward using the accounting software. From July 2014 to July 2015, Famania deposited approximately $55,100 in cash to a personal bank account. Furthermore, from August 2014 to August 2015, Famania transferred approximately $41,400 of those funds in the form of treasurer checks into another bank account that she controlled. Postal records additionally revealed that Famania obtained 19 U.S. Postal Service money orders totaling $17,900 in 2014.
Acting United States Attorney William D. Weinreb; Christina Scaringi, Special Agent in Charge of the United States Department of Housing and Urban Development, Office of Inspector General, New York Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Framingham Police Chief Kenneth Ferguson, made the announcement. Assistant U.S. Attorney William F. Bloomer of Weinreb’s Public Corruption Unit prosecuted the case.
Former Fort Stockton Teacher Sentenced for Wire Fraud SchemeRead the Press Release
In Alpine this morning, a federal judge sentenced George Mariadas Kurusu, a 58-year-old Indian national and a former Fort Stockton Independent School District (FSISD) teacher, to time served (approximately 11 months) and ordered him to pay $53,004.51 restitution for a wire fraud scheme involving the hiring of Indian nationals to teach in the United States. United States District Judge Louis Guirola also ordered that Kurusu forfeit $5,987.49 to the Government and serve three years of supervised release. Kurusu has been in federal custody since his arrest in May 2016.
United States Attorney Richard L. Durbin, Jr., Steven Grell, Special Agent in Charge of the Dallas Regional Office, U.S. Department of Labor, Office of Inspector General, and Michael V. Perkins. Special Agent in Charge of the Houston Field Office, U.S. Department of State, Bureau of Diplomatic Security Service made the announcement today.
On January 19, 2017, Kurusu pleaded guilty to two counts of wire fraud; one count of fraud in foreign labor contracting; one count of tampering with a witness, victim or an informant; and, one count of making a false statement on a visa application. By pleading guilty, Kurusu admitted that from December 2012 to May 2016, he defrauded several individuals out of more than $50,000 for a “visa package” provided by a company he owned which promised H1-B visas, teaching jobs, and the maintenance of those jobs and visas for his victims.
According to court records, Kurusu, a H1-B visa holder, established a separate business, Samaritan Educational Services (Samaritan), which he personally obtained financial benefits in violation of his visa. Kurusu also lied on an application to renew his visa. However, Kurusu began placing advertisements in a newspaper in Hyderabad, India, providing services for a fee to individuals who were seeking teaching positions in the United States. Kurusu led applicants to believe that they had to go through his business in order to both obtain a visa and a job. Kurusu inserted himself between the applicant and both the State Department, issuer of visas, and the FSISD, who paid for the visa and did the hiring. Kurusu, through his business, had the victims pay large fees on the pretext they were solely to be used to complete paperwork and none would go to him. Kurusu paid those nominal fees, but pocketed the rest. The victims initially set up all the paperwork for the visa and to obtain a job at FSISD then provided Kurusu such information along with other personal information. Kurusu, in promoting his scheme, used this information to place a buffer between the victims and both the State Department and FSISD. Kurusu further insured his scheme was not revealed when he ordered the victims not to mention to the State Department they enlisted the services of Samaritan and not to contact FSISD directly, but only through him.
When the victims arrived in the United States, in particular within the FSISD, Kurusu had the victim’s set up a bank account and an Electronic Transfer of Funds (ETF) where 15% of their monthly paychecks, before taxes, were wired to Kurusu’s Samaritan business bank account. Kurusu advised the victims this was for consulting fees, then later for his “services” to make sure they had continuous employment and to maintain their visas-- two things of which Kurusu had no control. When the victims began questioning the arrangement, Kurusu warned the victims that if they did not pay, they would lose their jobs and their visas; and again, advised them not to contact the FSISD otherwise they would jeopardize all H1-B visa holders in the district. FSISD was unaware of the defendant’s scheme.
Once Kurusu became aware an investigation was being conducted, he went to the victims and informed them not to talk to law enforcement. Kurusu told them that if they did speak to law enforcement, he, them, and all the other H1-B visa holders in the district would lose their jobs, lose their visas, and be deported.
This investigation was conducted by agents with the U.S. Department of Labor, Office of Inspector General, Dallas Regional Office, the U. S. State Department, Diplomatic Security Service, Houston Field Office, with the assistance of the U.S. Border Patrol in Fort Stockton, Texas. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Former Chicago Police Dispatcher Sentenced to More Than Three Years in Prison for Scheming to Smuggle Contraband into Cook County JailRead the Press Release
CHICAGO — A former dispatch supervisor for the Chicago Police Department was sentenced today to more than three years in prison for providing government information to her boyfriend in an effort to help smuggle contraband into Cook County Jail.
STEPHANIE LEWIS used her position in the City of Chicago Office of Emergency Management and Communications to access law enforcement databases to locate the personal information of a corrections officer at the jail. Lewis provided the information to her boyfriend, an inmate in the jail who had schemed with the officer and others to sneak in the contraband to sell to other inmates. Lewis admitted in a plea agreement that she knew her boyfriend and the others used the information to threaten the officer with physical harm unless he continued with the scheme and smuggled additional contraband into the jail.
Lewis, 43, of Chicago, pleaded guilty earlier this year to one count of conspiracy to commit extortion. U.S. District Judge Charles R. Norgle imposed the 41-month sentence in federal court in Chicago.
The sentencing was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
Lewis is one of five defendants convicted in the case. The prior convictions include the corrections officer, JASON MAREK, who admitted delivering contraband, including marijuana, tobacco and alcohol, to a jail inmate after tucking it into sandwiches and sneaking it past security. Marek was assigned to a maximum-security tier of the jail when he smuggled in the goods in May and June of 2013. Marek is awaiting sentencing.
Two other defendants, including Lewis’ boyfriend, PRINCE JOHNSON, of Chicago, have pleaded not guilty and are awaiting trial.
The government is represented by Assistant U.S. Attorney Megan Cunniff Church.
Five Inmates Arrested at Federal Correctional Institution – Fort Dix for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – Five men imprisoned on child pornography charges were arrested today at the Federal Correctional Institution-Fort Dix and charged with new counts of distributing images and videos of child sexual abuse within the prison, Acting U.S. Attorney William E. Fitzpatrick announced.
The inmates were charged with using contraband cellphones and micro SD cards to distribute the images, as well as selling and possessing with intent to sell the images and videos on federal property and conspiracy to commit these offenses. They are scheduled to appear later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
“These five defendants, each having been previously convicted and imprisoned for trafficking in child pornography, have allegedly continued while in prison to trade and profit from the exploitation and sexual abuse of innocent children,” Acting U.S. Attorney Fitzpatrick said. “The federal law enforcement community is committed to protecting our nation’s children by exhaustively investigating and aggressively prosecuting those who seek to do them harm.”
“Anyone who sexually exploits children, whether incarcerated or not, will be relentlessly pursued and brought to stand trial for their heinous crimes,” stated Timothy Gallagher, Special Agent in Charge of the FBI's Newark Field Office. “The FBI and our law enforcement partners are resolute in this commitment and remain ever vigilant in protecting one of society’s most vulnerable members, our children.”
According to documents filed in this case and statements made in court:
Anthony C. Jeffries, 31, of Orange, Virginia, is serving a 168-month sentence, with a scheduled release date of Aug. 13, 2022, following his guilty plea in the Western District of Virginia to three counts of distribution of child pornography and one count of possession of child pornography. He is allegedly a leader of the Fort Dix child pornography network, and maintained a “cloud” account containing images and videos of child sexual abuse. Jeffries allegedly transferred a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016. The micro SD card included videos involving prepubescent children, including infants and toddlers and depictions of child sexual abuse.
Brian J. McKay, 46, of Brookhaven, Pennsylvania, is serving a 180-month sentence, with a scheduled release date of June 28, 2021, following his guilty plea in the Eastern District of Pennsylvania to one count of distribution of child pornography and one count of possession of child pornography. McKay is charged with allegedly transferring micro SD cards containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016, and on Feb. 15, 2017, on behalf of other inmates (conspirators Allen and Roffler, below). The first micro SD card included child sexual abuse videos involving prepubescent children as well as bestiality. The second micro SD card included hundreds of images and videos of child sexual abuse.
Jordan T. Allen, 30, of Plain City, Ohio, is serving a 102-month sentence, with a scheduled release date of Dec. 30, 2018, following his guilty plea in the Southern District of Ohio to one count of receipt of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Feb. 15, 2017, in exchange for the micro SD card that McKay transferred to the informant on that date. Allen told the informant that he utilized The Onion Router (also known by its acronym, “TOR”) to access images of child sexual abuse.
Christopher D. Roffler, 29, of Virginia Beach, Virginia, is serving a 100-month sentence, with a scheduled release date of Aug. 22, 2019, following his guilty plea in the Eastern District of Virginia to one count of transportation of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Nov. 1, 2016, in exchange for the micro SD card that McKay transferred to the informant on that date.
Erik M. Smith, 35, of Iron Mountain, Michigan, is serving a 235-month sentence, with a scheduled release date of March 26, 2027, following his guilty plea in the Western District of Michigan to one count of receipt of child pornography. He is charged with distribution of images of child sexual abuse and selling and possessing with intent to sell images of child sexual abuse on federal property. Smith allegedly sold a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Feb. 15, 2017. Smith stated that he had sufficient postage stamps – a form of illicit currency among inmates – in order to obtain a cellphone to access the cloud account.
The counts of distributing child pornography, selling and possessing with intent to sell child pornography, and conspiracy to commit these offenses – due to the prior convictions of each of the defendants – carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrests. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Gabriel Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Lance Crick (864) 282-2105
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictments against the following:
Scranton Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine and Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Justin Dewayne Barr, age 32, of Scranton, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute crack cocaine and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Barr could receive is a fine of $250,000.00 and/or life imprisonment. The case was investigated by the Florence County Sheriff’s Office, Lake City Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Lauren Hummell of the Florence office for prosecution.
Loris Man Indicted for Felon in Possession of a Firearm, Possession with Intent to Distribute Crack Cocaine and Cocaine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Brian O’Neal Knox, age 32, of Loris, South Carolina, was charged in a three-count indictment with felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1); possession with intent to distribute crack cocaine and cocaine, a violation of Title 21, United States Code, Section 841(a)(1); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Knox could receive is a fine of $250,000.00 and/or life imprisonment. The case was investigated by the Horry County Police Department, the Horry County ATF Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Federal Court Bars Kansas City Tax Return Preparers from Preparing Tax Returns for OthersRead the Press Release
A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
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Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
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Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
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Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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Federal Court Bars Kansas City Tax Return PreparersRead the Press Release
WASHINGTON — A federal court in Kansas City, Kansas has permanently barred Everett Bias and Integrity Solutions Tax Consultants Inc. (ISTC) from preparing federal tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Bias and ISTC prepared false returns for customers located in both Kansas City, Kansas and Kansas City, Missouri. In addition to barring the defendants from preparing tax returns, the court ordered the defendants to contact all customers for whom they prepared federal tax returns since 2014 to inform them of the permanent injunction and provide the United States with a list of all of these persons.
According to the government’s complaint, Bias and ISTC unlawfully prepared federal tax returns that lowered their customers’ federal tax liabilities by using S corporations. This type of corporation passes corporate income, losses, deductions, and credits to its shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. According to the government’s complaint, Bias and ITSC:
- Failed to report S corporation pass-through income as taxable income on the customers’ personal income tax returns;
- Falsely lowered the income of customers’ S corporations and then reported that false lowered income amount on the customers’ personal income tax returns;
- Improperly double-deducted customers’ personal expenses, such as mortgage interest and real estate taxes, on customers’ corporate and personal returns; and
- Concocted S corporations in order to improperly deduct customers’ personal expenses as business expenses and lower pass through income or create a phony flow through loss.
The government similarly alleged that Bias and ISTC concocted businesses for customers claiming that they were sole proprietors -- which are required to report its profit or loss on a Schedule C (Form 1040, Schedule C, “Profit or Loss from Business”) to the income tax return -- then fabricated the income and expenses of the fictitious business to show a loss, which falsely lowered their customers’ taxable income. Finally, the government alleged that Bias and ISTC fabricated itemized deductions such as unreimbursed employee business expenses and medical/dental expenses on their customers’ personal tax returns.
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Arrested for Violating Civil Rights of A Visitor at the Social Security AdministrationRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Anthony Levey, Region 2 Director of the Federal Protective Service (“FPS”), announced today the unsealing of criminal charges against EDWIN CABAN, a Protective Security Officer, in the assault of a member of the public at a branch of the Social Security Administration (“SSA”). CABAN was charged with violating the civil rights of the victim by pushing the victim over a desk and then repeatedly punching the victim in the ribs without physical provocation. CABAN also is charged with filing a false report and making false statements to FPS agents to cover up the incident. CABAN was arrested this morning and is expected to be presented in federal court later today.
Acting Manhattan U.S. Attorney Joon H. Kim said: “The Federal Protective Service’s mission is to protect federal facilities, including employees and visitors. But in this case, we’ve alleged, an innocent visitor needed protection from a violent and unprovoked attack by Protective Security Officer Edwin Caban, which fractured the visitor’s ribs. Officer Caban then allegedly lied about the incident, falsely claiming the victim was disruptive and required removal from the building.”
FPS Region 2 Director Anthony Levey said: “The Federal Protective Service relies heavily on security guard contract vendors and the security guards they employ to assist in our mission of securing federal facilities throughout the nation. We recognize the importance of citizens being able to conduct business with their government safely and free from mistreatment, and will not tolerate conduct that infringes on this ability. We are taking these allegations of misconduct seriously. As soon as FPS learned of the allegations, we immediately took steps to remove this PSO from his position at the SSA building, and FPS agents were assigned to investigate further. FPS agents conducted interviews, collected evidence, and as a result, a complaint was filed by the United States Attorney’s Office for the Southern District of New York. SDNY issued an arrest warrant which was promptly executed, safely and professionally, by FPS law enforcement members. We would like to thank our colleagues in the United States Attorney’s Office for their guidance, assistance, and support throughout the course of this investigation.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
The SSA has multiple branch offices located throughout New York City, where claimants may request SSA services and make inquiries regarding social security benefits and Social Security cards. One branch office is located at 123 William Street (the “123 William Office”), in Manhattan. The 123 William Office is staffed by two Protective Security Officers, who are employees of a contractor for the Federal Protective Service of the United States Department of Homeland Security. The 123 William Office has several surveillance cameras, which captured the assault.
The Assault and Cover-Up
At approximately 12:37 p.m. on June 22, 2016, the victim (“Victim-1”) entered the 123 William Office, wheeling an elderly gentleman in a wheelchair into the reception area. CABAN attempted to move the wheelchair, which Victim-1 asked him not to do. After CABAN stepped away, Victim-1 withdrew a cellphone from his pocket. CABAN then walked back to Victim-1 and repeatedly accused him of taking a picture with his cellphone, which Victim-1 denied.
As recorded by security camera footage obtained from the SSA, CABAN at this point reached out toward Victim-1, and Victim-1 put both of his hands up in the air, with his palms facing CABAN. CABAN then took hold of Victim-1’s waist with both hands, pivoted, turned Victim-1 around, and then pushed Victim-1 backward toward the elevator bank. CABAN continued to push Victim-1 backward, toward a desk adjacent to the opening to the elevator bank, until Victim-1 fell backward over the desk. CABAN then took hold of Victim-1’s arms, and, as Victim-1 struggled to shake free of CABAN’s hold, CABAN took Victim-1 into the elevator bank.
After a brief struggle in the elevator bank, CABAN pushed Victim-1 up against a wall. Placing his left hand at the base of Victim-1’s throat, CABAN pinned Victim-1 against the wall. As Victim-1 stood there, not moving, with his hands up in the air in a gesture of surrender, CABAN punched Victim-1 four times in the chest and ribs. Victim-1 collapsed forward, and CABAN continued to hold on to Victim-1 as Victim-1 remained bent forward, clutching his abdomen.
At this point, CABAN’s partner, another Protective Security Officer (“PSO-1”), arrived in the elevator bank from a back area of the office and approached CABAN and Victim-1. CABAN let go of Victim-1, who remained against the wall, not moving. As PSO-1 stood a few feet away, CABAN punched Victim-1 again in the chest. After several minutes passed, CABAN and PSO-1 escorted Victim-1 out of the elevator bank and back into the main floor area, back toward where the man in the wheelchair was waiting.
As a result of the attack, Victim-1 suffered bodily injuries, including fractured ribs, bruising, and physical pain.
Shortly after the assault, Victim-1 called 911 and two New York City Police Department officers responded. One of these officers (“Officer-1”) entered the 123 William Office and spoke with CABAN about Victim-1’s allegations. CABAN stated to Officer-1 that he put his hands on Victim-1 to remove him from the office, at which point Victim-1 “flopped” onto the desk, knocking things over. CABAN denied touching Victim-1 after that point and denied entering the elevator bank during the incident.
That same afternoon, CABAN placed a telephone call to an FPS reporting center, in which CABAN made an oral report about the incident. CABAN stated that there was “a disruptive client in here that needed to be escorted out;” he did not disclose that he struck Victim-1.
After the incident, CABAN and PSO-1 discussed the event. PSO-1 wrote and submitted a Security Incident Report. CABAN asked PSO-1 to show him the report, which PSO-1 did. In that report, the only reference to use of force is PSO-1’s note that CABAN was “attempting to detain [Victim-1]” when PSO-1 arrived in the elevator bank. PSO-1 did not state in that report that CABAN struck Victim-1.
CABAN also wrote and submitted a Security Incident Report. In that report, CABAN stated that, as he “attempted to guide [Victim-1] out” of the office, Victim-1 “yelled and jumped onto the security desk flairing [sic] arms and legs knocking equipment around.” CABAN then stated that he placed Victim-1 in an “arm bar” and “took him by the elevator banks,” that Victim-1 “tried to break [his] hold” at which point CABAN “grabbed him under his chin” and “mainta[ined] a hold of his arm.” CABAN stated that PSO-1 then arrived. CABAN reported no other use of force against Victim-1. In particular, nowhere in the report did CABAN state that he struck Victim-1.
CABAN was interviewed twice by FPS agents. During the course of the first interview, CABAN hand-wrote and signed an affidavit. In those interviews and in that affidavit, CABAN denied that he spoke with PSO-1 about the incident after it occurred and denied seeing PSO-1’s report, though he did both. CABAN also falsely stated that Victim-1 threw himself over the desk, when in fact CABAN pushed Victim-1 over the desk, and that Victim-1 was resisting detention when CABAN struck him, when in fact Victim-1 was not resisting at that time.
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CABAN, 55, of Astoria, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison, and one count of filing false forms and making false statements, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the investigative work of the FPS.
The case is being handled by the Office’s Public Corruption and Civil Rights Units. Assistant U.S. Attorneys Alison Moe and Jacob Lillywhite are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations and every fact described should be treated as an allegation.
Falmouth Doctor Sentenced to Two Years for Tax Evasion, Illegal Drug Distribution and Health Care FraudRead the Press Release
Contact: David B. Joyce
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Dr. Joel A. Sabean, 69, of Falmouth, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to two years in prison and three years of supervised release for tax evasion, drug distribution for other than legitimate purposes, and health care fraud. He was also ordered to pay $5,311 in restitution, file amended tax returns and pay all outstanding tax obligations. He was convicted following a two-week jury trial on November 18, 2016.
According to court records, between January 2008 and December 2013, the defendant sent over $2.3 million to a relative who resided in Florida and had her fabricate and send him phony medical bills so that he could write off about $3 million in medical expenses on his 2008 through 2012 income tax returns. From 2007 through 2014, the defendant also wrote invalid prescriptions for the relative, in her name and the names of others, for controlled and non-controlled drugs, some of which were illegally reimbursed by the defendant’s insurance company that did not cover the relative. These prescriptions were invalid because, among other things, they were issued to a close family member who was not a patient without a medical examination.
This case was investigated by the Internal Revenue Service, Criminal Investigations and the U.S. Drug Enforcement Administration, Portsmouth (NH) Tactical Diversion Squad.
Evansville man sentenced for receiving child pornography from a woman in the PhilippinesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney, announced today that Bradley J. Hancock, 33 of Evansville, Indiana, was sentenced immediately following his plea of guilty to one count of Receipt of Sexually Explicit Material Involving Minors to 84 months in prison by U.S. District Judge Richard L. Young. This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and Evansville Police Department.
During his guilty plea, Hancock admitted to having received multiple images depicting a minor under the age of 12 engaging in sexually explicit conduct. Hancock explained that he used social networking software to meet a woman living in the Philippines. Hancock then persuaded the woman to send him sexually explicit images of a minor female in her care. Hancock received and viewed the images that were of a child approximately one to two years old. Hancock described himself as having an ongoing problem involving sexual attraction to minors.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed a 20-year term of supervised release following Hancock’s release from prison. Hancock must register as a sex offender, must not have unsupervised contact with minors, and must participate in a sex offender treatment program while on supervision. Hancock must forfeit the computer and cellular phone he used in the commission of the offense.
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."
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
Acting United States Attorney Sean R. Berry wants to encourage the public to participate in the Drug Enforcement Administration’s National Prescription Drug Takeback Day on Saturday, April 29, 2017, from 10:00 a.m. to 2:00 p.m.
Acting United States Attorney Berry stated, “The DEA’s National Takeback Initiative has been very successful and offers an anonymous and free opportunity to get rid of unwanted pills.” Berry went on to add, “The threat of prescription drug abuse leading to more serious drug addictions is real. The Takeback Day is a day our community should come together to fight the opioid and heroin epidemic crossing our nation and impacting our citizens.”
On October 22, 2016, the public turned in 731,269 pounds, almost 366 tons, of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds, more than 3,500 tons, of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused CPDs in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health release last month. Some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people, 78 a day, died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines, such as flushing them down the toilet or throwing them in the trash, post potential safety and health hazards.
Collection sites will be set up throughout communities nationwide. Through the cooperative efforts of federal, state, and local authorities, there is a takeback collection site located in 50 of the 52 counties comprising the Northern District of Iowa. To locate a collection site near you, go the DEA Office of Diversion Control website at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
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Columbia Man Pleads Guilty to Theft of Food Stamp MoneyRead the Press Release
Contact Person: Winston David Holliday, Jr. (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Christopher O’Berry, age 42, of Columbia, pled guilty in federal court in Columbia to Theft of Government Money, a violation of Title 18, United States Code, § 641. Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted the guilty plea and will sentence him at a later date.
Evidence presented at the change of plea hearing established that the Food and Nutrition Service (FNS) is the agency within the U.S. Department of Agriculture responsible for the administration and regulation of the SNAP. SNAP, commonly known as the food stamp program, assists low-income families and individuals to purchase food.
Christopher O’Berry operated Cynthia’s Soul Food Deli (formerly Food World) in the Columbia area. The Deli served food, but was also registered to receive SNAP benefits as payment for food items. This arrangement posed two issues. First, SNAP does not pay for prepared food. Second, the Deli did not stock sufficient food to justify the purchases recorded under SNAP. O’Berry allowed beneficiaries to make small purchases through SNAP but processed them as much larger amounts. He would then pay some cash to the beneficiary and keep some for himself.
The investigation traced proceeds of the theft to a Woodforest National Bank account controlled by O’Berry. O’Berry deposited $956,006.90 between May 2011 and December 2014. He then withdrew $158,187 in cash and transferred $714,032 to his own accounts. The rest was used to make minimal purchases for the store.
Ms. Drake stated the maximum penalty faced by O’Berry is imprisonment for ten years and a fine of $250,000.
The Richland County Sherriff’s Office and the United States Department of Agriculture, Office of the Inspector General, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
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Co-Owner of Nick’s Roast Beef Sentenced for Skimming Nearly $6 Million in CashRead the Press Release
BOSTON - The co-owner of Nick’s Famous Roast Beef in Beverly was sentenced today in federal court in Boston in connection with skimming nearly $6 million in cash receipts from the business over a six-year period and not reporting that cash income on his business or personal tax returns. His wife and son were also sentenced today for their role in the scheme.
Nicholas Koudanis, 67, of Topsfield, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, two years of supervised release and ordered to pay restitution in the amount of $2,042,366 to the IRS. In January 2017, Koudanis pleaded guilty to one count of conspiracy to defraud the United States by obstructing the IRS and 10 counts of aiding and assisting in the filing of false tax returns. His wife, Eleni Koudanis, 61, was sentenced by Judge Saris to one year of probation and ordered to pay the same amount of restitution. She previously pleaded guilty to five counts of aiding and assisting in the filing of false tax returns. The restitution amount consists of the approximately $992,821 in taxes the Koudanises avoided paying, plus interest and penalties. Their son, Steven Koudanis, 40, was sentenced to one year of probation to be served in home confinement and ordered to pay restitution in the amount of $151,240 to the IRS. He pleaded guilty to one count of endeavoring to obstruct and impede the due administration of the Internal Revenue Laws.
From 2008 to 2013, the co-owners of Nick’s Roast Beef, Nicholas Koudanis and Nicholas Markos, skimmed more than $1 million in cash receipts each year, which they failed to report on either the corporate tax returns or their personal tax returns, thereby avoiding the payment of nearly $1 million each in personal income taxes during that same period. Each week, Koudanis and Markos personally divided the cash receipts, determining how much to deposit to the business’s bank account and report on their tax returns, how much to use to pay suppliers and employees, and how much to keep for themselves. Eleni Koudanis had primary responsibility for the bookkeeping functions of the restaurant and provided some of the false income information to the tax preparer. Their son, Steven Koudanis, created false cash register receipts that were used in connection with an IRS tax audit of the business. The actual cash register receipts were not provided to the tax preparer who prepared the business and personal tax returns. By December 2014, Nicholas and Eleni Koudanis amassed more than $1.6 million in cash, which they kept in a safe in their home.
In January 2017, Nicholas Markos pleaded guilty to the same charges as Nicholas Koudanis and is scheduled to be sentenced on May 9, 2017.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Co-Conspirator Sentenced to 27 Months for Wire FraudRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Sharon Johnson, age 50, of Columbia, was sentenced today in federal court in Greenville, for conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349. United States District Judge Bruce H. Hendricks, of Greenville, sentenced Johnson to 27 months imprisonment, ordered that she pay $385,425.75 in restitution, and placed her on three years of supervised release. Johnson, previously on bond, was taken into custody at the conclusion of the hearing.
Evidence presented at the change of plea hearing established that Patricia Sullivan, who has pled guilty and is awaiting final sentencing, and Sharon Johnson were co-conspirators in a scheme and artifice to defraud various individuals. Sullivan is the former postmaster for Greenville, South Carolina. She also operated a company called HYPD Publishing (“HYPD”). In March 2009, HYPD published The Struggle of Love written by Sharon Denise Johnson.
Shortly after publication of Johnson’s book, Sullivan and Johnson began to spin a story that the producer Tyler Perry had bought the rights to The Struggle of Love and would be making a movie or reality TV show staring Johnson. Victims were told that Sullivan and Johnson were on the verge of great wealth, but needed bridge loans or some other form of financial assistance until the project with Perry reached fruition. Sullivan and Johnson promised the investors large returns in exchange for the loans and/or investments.
To make themselves look the part of successful individuals, Sullivan and Johnson squatted in several mansions, took photos, and posted them to Facebook. They also created fictitious documents from an accounting firm that “documented” the sale of the book and a huge payout to come as well as a bogus Wells Fargo statement that showed millions of dollars as pending.
Of course, there was no book deal with Tyler Perry and the victims lost the money loaned and/or invested.
The case was investigated by agents of United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Citizen of Colombia Sentenced to 16 Months in Prison for Illegally Reentering the United StatesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLOS ALBERTO DEOSA-MUNERA, 57, a citizen of Colombia, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 16 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, DEOSA-MUNERA has been previously deported from the U.S. on four occasions. DEOSA-MUNERA, who had been residing in Waterbury, was convicted of sexual assault in the third degree and incarcerated in state custody. Federal immigration officers visited DEOSA-MUNERA at a Connecticut Department of Correction facility, advised him of his Miranda rights and questioned him. He admitted that he was born in Colombia, remains a citizen of that country and had been previously deported on multiple occasions.
DEOSA-MUNERA completed his state sentence and has been in federal custody since June 10, 2016. On October 5, 2016, he waived his right to be indicted and pleaded guilty to one count of illegal reentry.
He will be removed to Colombia at the conclusion of his federal prison term.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Detention and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
Canadian Man Admits Role in Cocaine Distribution SchemeRead the Press Release
CAMDEN, N.J. – A Canadian man today admitted his role in a conspiracy to traffic 100 kilograms of cocaine from Chicago to New Jersey and then on to Canada, Acting U.S. Attorney William E. Fitzpatrick announced.
Sezayir Bulamun, 48, of Hemmingford, Canada, pleaded guilty before U.S. District Court Judge Robert Kugler in Camden federal court to an indictment charging him with one count of conspiring to distribute more than five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Between October 2012 and Nov. 29, 2012, Bulamun conspired with others to pick up 100 kilograms of cocaine in Chicago, Illinois, transport it to a warehouse in New Jersey and then transport it to Canada. He was indicted in 2012, but fought extradition to the United States. The FBI seized the cocaine as part of the operation.
The conspiracy count to which Bulamun pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison. Sentencing is scheduled for Aug. 4, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara F. Merin of the OCDETF/Narcotics Unit and Andrew J. Bruck of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
California Man Sentenced to 188 Months in Prison for Large-Scale Methampetamine, Cocaine and Heroin Trafficking in Monroe CountyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a California man was sentenced on April 25, 2017, by U.S. District Court Judge Malachy E. Mannion to serve 188 months (15 years and 8 months) in prison for large-scale methamphetamine, cocaine and heroin trafficking in Monroe County.
According to United States Attorney Bruce D. Brandler, Fontaine Horton, age 37, formerly of San Bernardino, California, was convicted of conspiracy to distribute in excess of nine kilograms of methamphetamine, as well as additional amounts of cocaine and heroin, after a four-day jury trial before Judge Mannon in May 2016. Horton was also convicted of two counts of distributing methamphetamine. Another individual, Reginald Braddy, age 33, formerly of San Bernardino, California, was also convicted of conspiracy to distribute methamphetamine, cocaine and heroin.
Horton and Braddy were charged with obtaining high-quality methamphetamine from sources in California, along with heroin and cocaine, which they then distributed for profit in the Monroe County area between 2012 and 2014. Previously, Judge Mannion sentenced Reginald Braddy to serve 235 months (19 years and 7 months) for his role in this drug-trafficking conspiracy.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. Officers from the Orange County, California Sheriff’s Office, the Scranton Police Department, and Plainfield Township, Pennsylvania, Police Department assisted in the investigation. The case was prosecuted by Assistant United States Attorneys Robert J. O’Hara and Francis P. Sempa.
This case 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.
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Buffalo Woman Pleads Guilty to Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy announced today that Kristie Boncore, 24, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute and distribution of heroin before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that between April 2014 and September 28, 2015, the defendant conspired with Hector Carattini and others to distribute heroin on the West Side of Buffalo. The investigation utilized court ordered wiretaps as well as undercover purchases conducted by the New York State Police Community Narcotics Enforcement Team (CNET) and the Buffalo Police Department.
The 10 defendants charged in this case were street-level distributors or “runners” in a heroin trafficking ring operated by Daniel Molina-Rios who was arrested in June 2015 along with Orlando Rios, Luis Montanez and Jose Andujar. The organization acquired heroin from the New York City area for distribution in Buffalo but also had an alternate heroin source locally.
A total of 14 defendants have been indicted in this case. Boncore is the first to be convicted. Charges are pending against the remaining defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause and Lieutenant Kevin Reyes, CNET West Commander; and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 7, 2017, at 12:30 p.m. before Judge Arcara.
Buffalo Man Sentenced for Stealing StampsRead 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 Irvin Bates, 64, of Buffalo, NY, who was convicted of theft of government funds, was sentenced to two years probation and ordered to pay $3760.00 in restitution by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Maura K. O’Donnell, who handled the case, stated that the defendant worked as a temporary employee at Ashton Potter printing company located in Williamsville, NY. The company is contracted by the U.S. Postal Service (USPS) to print and manufacture postage stamps and related specialty products. On July 22, 2016, during his "lunch break," Bates stole a pad of stamps from Ashton Potter, concealed the pad of stamps in his clothes, and removed it from the facility at the conclusion of his shift. In total, the stamps stolen by the defendant were valued at $3760.00.
The sentencing is the result of an investigation by the United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Buffalo Man Sentenced for Being A Felon in Possession of A GunRead 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 Casidus Carr, 31, of Buffalo, NY, who was convicted of being a felon-in-possession of a gun, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that during the January 16, 2015, execution of a search warrant at Carr’s residence on Dunlop Avenue in Buffalo, law enforcement officers discovered a loaded firearm and ammunition. The defendant was prohibited from legally possessing such firearm by virtue of his conviction, in 2005, for Manslaughter in the First Degree, in New York State Court.
The sentencing is the result of an investigation on the part of law enforcement officers of the Federal Bureau of Investigation Safe Street Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Bridgeport Man Charged with Distributing Heroin to Monroe Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CAREEM BENTLEY, also known as “C-Lows,” 33, of Bridgeport, was arrested today on a federal criminal complaint charging him with heroin distribution offenses. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
BENTLEY appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, on November 23, 2016, Monroe Police and emergency medical personnel responded to a residence in Monroe on a report of a suspected drug overdose. At the scene, responders encountered an unresponsive 37-year-old male lying on the floor. The male was pronounced deceased. Investigators seized the victim’s cellphone, multiple folds of suspected heroin, and other items, and subsequently concluded that the victim purchased heroin from BENTLEY in the late evening of November 22, 2016.
The complaint charges BENTLEY with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute narcotics. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and Monroe Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Brian Deshon Miller Sentenced Following Guilty Plea to a Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Brian Deshon Miller was sentenced to 120 months imprisonment. Miller’s sentencing followed entry of a January 2017 guilty plea to conspiracy to possess with intent to distribute cocaine.
Miller’s guilty plea included his admission that between November 2015 and July 2016, he regularly arranged the purchase, distribution and payment for cocaine which he received and sold. The conspiracy involved the distribution of various quantities of cocaine, ranging between gram and ounce quantities. Miller was held responsible for the distribution of a quantity of cocaine between 400 and 500 grams.
Based upon his criminal history Career Offender status was found applicable to Miller under the United States Sentencing Guidelines, which increased the applicable advisory sentencing guideline range. Conspiracy to possess with intent to distribute a controlled substance is a violation of Title 21, United States Code Section 846. Miller’s imprisonment will be followed by a three-year term of supervised release.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Streets Task Force and the Baldwin County Sheriff’s Office Drug Task Force. This investigation has previously resulted in the indictment of six (6) other defendants on federal drug conspiracy charges. Acting U.S. Attorney Steve Butler stated, “We appreciate the diligent investigative work done by our federal, state and local law enforcement partners. We share a common purpose of striving to make our communities safer for all citizens.” FBI Special Agent in Charge, Robert Lasky stated, "These types of investigations are a perfect example of what can happen when federal, state, and local agencies come together to rid our communities of this type of behavior." The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Bank Robber Admits Hatchet JobRead the Press Release
COEUR D’ALENE - Charles Ray Bartkowiak, 34, of Hayden, Idaho, pleaded guilty on April 25, 2017, to Bank Robbery, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced. Bartkowiak was indicted by a federal grand Jury in Coeur d’Alene on December 13, 2016.
According to the plea agreement, Bartkowkiak admitted that on November 28, 2016, he entered the Bank CdA in Hayden, Idaho and placed a hatchet on the counter of the teller window. He demanded all the teller’s cash and left with $6,366 in U.S. currency. Bartkowiak was identified from video surveillance and law enforcement found some of the money and the hatchet in his car. He admitted to the crime and was arrested.
The charge of Bank Robbery is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release.
Sentencing is set for July 26, 2017, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Idaho State Police, Post Falls Police Department, Coeur d’Alene Police Department, Kootenai County Sheriff’s Office and the Idaho Department of Corrections.
Attorney General Sessions Announces Continuing Litigation in Sanctuary City CaseRead the Press Release
Tonight Attorney General Jeff Sessions issued the following statement:
“The American people demand a lawful system of immigration. Congress has established a lawful system of immigration. At the heart of this immigration debate is disagreement over whether illegally entering this country is a crime. Our duly enacted laws answer that question.
“Nevertheless, actions that have always been understood to be squarely within the powers of the President, regardless of the Administration, have now been enjoined. The Department of Justice cannot accept such a result, and as the President has made clear, we will continue to litigate this case to vindicate the rule of law.
“Make no mistake – our national interest also requires criminal aliens to be deported. The Bureau of Justice Statistics just released a report showing that 42 percent of defendants charged in U.S. district court were non-U.S. citizens. And according to the U.S. Sentencing Commission, in 2013, 48 percent of all deported aliens who were convicted for coming back to the United States illegally were also convicted of a non-immigration related crime.
“This is the Trump era. Progress is being made daily, and it will continue. This will be the Administration that fully enforces our nation’s immigration laws.”
Army Staff Sergeant Pleads Guilty to Using Stolen UMPC Employee IDs to File Four False Income Tax ReturnsRead the Press Release
PITTSBURGH - A resident of Spanaway, Washington, pleaded guilty in federal court to charges of False Claims against the United States, Acting United States Attorney Soo C. Song announced today.
Justin A. Tollefson, age 26, of Spanaway, Washington, and an enlisted Staff Sergeant in the Army at Joint Base Lewis-McChord in Tacoma, Washington, pleaded guilty to four counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, Tollefson used stolen identities of employees at UPMC to file four 2014 false federal income tax returns in which he made claims for tax refunds, which collectively totaled approximately $56,333.
Judge Hornak scheduled sentencing for August, 30, 2017 at 9:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations and the United States Secret Service conducted the investigation that led to the prosecution of Justin A. Tollefson.
Army Reserves Lt. Col. Convicted for Fraudulently Supplying Chinese-made Army Promotional Gear as Made in USARead the Press Release
BIRMINGHAM – A federal jury on Tuesday convicted a lieutenant colonel in the U.S. Army Reserves for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command, despite receiving millions of dollars under contracts stating the items “MUST BE 100 % U.S. MADE.”
Acting U.S. Attorney Robert O. Posey, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis announced the verdict.
Following a seven-day trial before U.S. District Court Judge Sharon Lovelace Blackburn, the jury found FREDERICK LAMAR BURNETT, 48, of Madison, guilty on three counts of wire fraud. The jury deliberated for less than two hours before convicting Burnett, who took the stand in his own defense.
The jury determined that Burnett used his Huntsville-based company, Lamar International Inc., in a scheme to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. All the contracts, two for baseball caps and one for backpacks, were for promotional items to be given to Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment and federal regulations that require the government to buy domestic products and materials, according to the indictment.
The Buy American Act requires the federal government to buy domestic articles, materials and supplies, primarily to protect American labor. The Berry Amendment prohibits the Defense Department from buying clothing, fabrics, fibers and yarns that are not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the textile and clothing production base in the United States. These statutes are incorporated and made applicable to government contractors through the federal acquisition regulations.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the BBA and the Berry Amendment, according to evidence at trial, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring the products from China. He used Chinese-made products to fill orders under all three contracts and hid their foreign manufacture by hiring workers on a cash basis to remove all the Chinese labels and repackage the items he sent to the Army Recruiting Command.
After award of the third contract, a competitor protested the bid, claiming Burnett could only bid so low if he were using foreign suppliers. The government allowed Burnett to proceed with the contract after he promised that he would use only American-made products and that he would comply with all aspects of the Buy American Act and the Berry Amendment.
The total amount of the three contracts was $6.2 million. The indictment seeks to have Burnett forfeit that amount to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
DCIS and Army CID investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
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Armed Career Offender from Albuquerque Sentenced to Fifteen Years for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Joe Ray Alires, 42, of Albuquerque, N.M., was sentenced yesterday in federal court to180 months in prison followed by five years of supervised release for unlawfully possessing firearms and ammunition, announced Acting U.S. Attorney James D. Tierney and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Alires was charged by an indictment filed on Nov. 19, 2014, with being a felon in possession of firearms and ammunition on June 26, 2014, in Bernalillo County, N.M. Alires was prohibited from possessing firearms or ammunition because of his status as a convicted felon. According to the indictment, on June 26, 2014, Alires had at least ten felony convictions, convictions for residential and commercial burglary, possession of a controlled substance, being a felon in possession of a firearm, and possession of a deadly weapon or explosive by a prisoner.
On March 9, 2017, Alires pled guilty to the indictment under a plea agreement with the U.S. Attorney’s Office, and admitted to possessing a loaded pistol on June 26, 2014, despite his status as a convicted felon.
This case was investigated by the ATF office in Albuquerque and was prosecuted by Assistant U.S. Attorney David M. Walsh as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates including Bernalillo County under this initiative.
Arizona Woman Pleads Guilty to Federal Larceny Charge in New MexicoRead the Press Release
ALBUQUERQUE – Sabrina Morgan, 39, of Jeddito, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a larceny charge arising out of her theft of cash belonging to a commercial business located in Naschitti, N.M.
Morgan was charged in an indictment filed on March 14, 2017, with stealing more than $1,000 from the Red Mesa Trading Company, which is located on the Navajo Indian Reservation in San Juan County, N.M. At the time of the offense, Morgan was employed as the district supervisor of the Trading Company.
During today’s proceedings, Morgan entered a guilty plea to the indictment without the benefit of a plea agreement. At sentencing, Morgan faces a maximum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and is being prosecuted by Assistant U.S. Attorney Michael D. Murphy.
Akron man sentenced to 20 years in prison for selling fentanyl obtained from China that resulted in fatal overdoseRead the Press Release
An Akron man was sentenced to 20 years in prison for selling fentanyl obtained from China that resulted in a fatal overdose, law enforcement officials said.
Leroy Shuarod Steele, 36, pled guilty earlier this year to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl.
The fentanyl Steele distributed resulted in the fatal overdose of a person identified only as T.R. on March 21, 2016 in Akron, according to court documents.
Steele obtained fentanyl from suppliers in China and then distributed the drug to people in Akron, Fairlawn and elsewhere, according to court documents.
“Mr. Steele’s actions resulted in the death of another person,” Acting U.S. Attorney David A. Sierleja said. “Those who profit from selling the heroin and opioids that have devastated our state will be held accountable for their actions.”
Akron Police Chief James Nice said: “Keeping this guy behind bars for two decades keeps the residents of Summit County safer.”
This case is being prosecuted by Assistant U.S. Attorney Linda H. Barr following an investigation by the Drug Enforcement Agency, the Akron Police Department and the Fairlawn Police Department.
"Operation Real Time": Spartanburg Man Enters Guilty Plea in Federal Court on Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Xavier Lee Gist, age 22, of Spartanburg, pled guilty in federal court in Greenville, to possession of a firearm in furtherance of a drug trafficking crime, a violation of Title 18, United States Code, Section 924(c) and possession with intent to distribute crack cocaine, a violation of Title 21, United States Code, Section 841(a)(1). United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on May 19, 2016, officers with the Spartanburg Police Department observed a silver Nissan Maxima with North Carolina tags fail to signal a left hand turn. Officers initiated a traffic stop but the vehicle failed to stop. Officers were able to identify the driver as Xavier Gist by sight during the pursuit based on prior interactions with Gist. Gist jumped from the vehicle and was apprehended after a brief foot chase. Officers, with the vehicle, observed in plain sight a Smith and Wesson 9mm handgun on the passenger seat. Prior to the vehicle being towed, officers recovered a silver whisk and a set of digital scales from the center console. Approximately 4.4 grams of cocaine base (crack) was located on the street where Gist jumped from the vehicle.Gist faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Spartanburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Special Assistant United States Attorney Jennifer Wells, a 7th Circuit Assistant Solicitor designated by Solicitor Barry Barnette to identify and expedite state cases for federal prosecution, handled the case.
Gist was arrested federally as a part of “Operation Real Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Spartanburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville Police Department, the Greenville County Sheriff’s Office, the Anderson City Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 7th Circuit Solicitor’s Office, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 97 defendants and seizure of approximately 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
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25 April 2017
Zwolle man sentenced to 19 years in prison on methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Zwolle man was sentenced Monday to 228 months in prison for possessing with intent to distribute methamphetamine and possessing multiple firearms.
Heath Meshell, 34, of Zwolle, La., was sentenced by U.S. District Judge Elizabeth E. Foote to 168 months in prison on one count of possession with intent to distribute methamphetamine and 60 months in prison on one count of possession of a firearm in furtherance of a drug trafficking crime. He was also sentenced to five years of supervised release. According to the December 19, 2016 guilty plea, law enforcement agents searched Meshell’s home on April 12, 2016. The agents found more than 1,700 grams of methamphetamine, a small number of prescription pills, digital scales and $1,585. They also found a 9 mm rifle, 9 mm pistol, a 410 shotgun and assorted rounds of ammunition.
The ATF and the DEA conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Woman Sentenced to Fifty One Months Confinement for Interstate Methamphetamine and Cocaine TraffickingRead the Press Release
MOBILE, AL— The Acting United States Attorney, Steve Butler, announces that Graciela Mora-Demoran was sentenced in United States District Court, Senior Judge Callie V. Granade, on April 24, 2017 to fifty-one months confinement for trafficking in methamphetamine and cocaine. The sentence was structured to give the defendant credit for twenty one months already spent in state custody.
On August 20, 2015, an Alabama State Trooper stopped Mora-Demoran on I-10 in Baldwin County, Alabama. Later during the stop, K-9 “Justice” gave a positive alert to the odor of narcotics on the defendant’s vehicle and a search of the vehicle was conducted. In the cargo area of the vehicle, there were various types of Mexican food products and soft drinks. A State Trooper opened a bag containing several bottles of purported soft drink and picked up a bottle and noticed white debris floating around inside the bottle. The State Trooper noticed that the bottle picked up was not tight with pressure as when factory sealed, was filled up to the very top, and did not show any carbonation when shaken.
Aware of current trafficking trends of methamphetamines in liquid form, the bottle of soda was tested at the roadside for the presence of narcotics with a narcotics test kit. The liquid from the bottles of soda tested positive for the presence of narcotics (methamphetamines). Laboratory testing revealed that the lemonade soda containers contained 126.4 g of methamphetamine (mixture and substance) at a purity level of
56.6 % resulting in 71.5 grams of pure methamphetamine. Ginger ale bottles contained 130.3 g of methamphetamine (mixture and substance) at a purity level of 57.9 % resulting in 75.4 grams of pure methamphetamine.Officers also discovered numerous cone shaped containers in the vehicle that contained suspected narcotics. Further testing of the cone shaped containers revealed that they contained 7.9 kilograms of cocaine.
The case was jointly investigated by the Drug Enforcement Administration and the Alabama Law Enforcement Agency. Assistant United States Attorney George May prosecuted the case.
Acting United States Attorney Steve Butler stated he “appreciates and praises the efforts of the alert State Troopers who were dedicated in keeping up with the drug trafficking trends and able to foil a very clandestine manner of transporting narcotics”.
Woman Sentenced to Eighty Months Confinement for Multi-State Methamphetamine (Ice) Distribution ConspiracyRead the Press Release
MOBILE, AL— The Acting United States Attorney, Steve Butler, announces that Jennifer Arlene Rosas-Saucedo was sentenced in United States District Court, Senior Judge Callie V. Granade, on April 24, 2017 to eighty months confinement for being involved in a multi-state methamphetamine distribution conspiracy. On November 23, 2015, a United States Postal Inspector intercepted a postal parcel shipped from a United States Post Office located in El Segundo, California destined for Fairhope, Alabama. Mobile Police Department dedicated K-9 “ARON” alerted to the odor of narcotics emanating from the parcel. A search warrant of the package revealed 16.93 kilograms of methamphetamine with a purity of 92.8%.
The Postal Inspector contacted the Drug Enforcement Administration (DEA) to pursue an investigation. The DEA investigation revealed that Rosas-Saucedo travelled from her home in Vancouver, Washington to Southern California to provide the 16.93 kilograms of methamphetamine to other members of the conspiracy. The other members of the conspiracy arranged to ship the package from Southern California to Fairhope, Alabama.
Further investigation revealed that another member of the conspiracy met Rosas-Saucedo in Los Angeles, California in March 2016 and received 7.8 pounds of methamphetamine from her. The courier then transported the methamphetamine on an Amtrak train to New Orleans, Louisiana, where the DEA and local officials intercepted him.
In September 2016, the DEA used a cooperating defendant to purchase 1 kilogram of methamphetamine from Rosas-Saucedo, which again was shipped from Southern California to the Southern District of Alabama
In October 2016, investigative team members of FBI Vancouver authored a federal search warrant for the defendant’s residence in Vancouver, Washington as well as a vehicle owned by another member of the conspiracy. A search of the residence revealed eight cellular phones, $7,388.00 in United States currency and multiple notebooks containing drug ledgers. A search of the vehicle, a 2013 Dodge Ram Pickup, yielded approximately $62,000 in United States currency, a stolen handgun and approximately 4.4 pounds of methamphetamine.The case was jointly investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation in Vancouver, Washington, the United States Postal Inspector in Mobile and the Mobile Police Department. Assistant United States Attorney George May prosecuted the case.
Acting United States Attorney Steve Butler stated, “this case represented the quintessential example of the partnership between different federal law enforcement agencies as well as the cooperation between federal and local law enforcement agencies”. Butler stated, “I laud the efforts of law enforcement in shutting down this significant methamphetamine trafficking organization”.
Winslow Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Darrin Cates, 47, of Winslow, Maine, was sentenced today in U.S District Court by Judge John A Woodcock, Jr. to 10 years in prison to be followed by 10 years of supervised release for possessing child pornography. Cates pleaded guilty on October 23, 2015.
According to court records, on January 9, 2015, law enforcement authorities executed a search warrant at Cates’s residence and seized computer equipment. A forensic examination revealed about 550 images and 276 videos of child pornography depicting two to 11-year-old children. Cates admitted that he possessed large quantities of child pornography and that he was interested in eight to 12-year-old girls.
In imposing sentence, Judge John Woodcock noted that the images were “egregious,” “disturbing” and “abhorrent” and said that Cates “committed a crime that touches upon a societal nerve,” and that it was “profoundly troubling” that Cates collected such “truly sick images.”
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Wilkes-Barre Man Pleads Guilty to Crack Cocaine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jahkel Lamar, age 29, of Wilkes-Barre, Pennsylvania, pleaded guilty on April 24, 2017, before U.S. District Court Judge Malachy E. Mannion to possession with intent to distribute more than 28 grams of crack cocaine.
According to United States Attorney Bruce D. Brandler, Lamar admitted to possessing approximately 127 grams of crack cocaine on September 1, 2016, at a bus terminal on Lackawanna Avenue in Scranton after Lamar had returned to Scranton by bus from New York City.
Judge Mannion ordered that a pre-sentence investigation be completed. Sentencing will be scheduled at a later date.
The case was investigated by the Drug Enforcement Administration, and the Scranton Police Department, Special Investigations Division. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Weymouth Woman Sentenced for Stealing $700,000 from EmployerRead the Press Release
BOSTON – A Weymouth woman was sentenced today in federal court in Boston in connection with a fraud scheme in which she stole approximately $701,826 from her employer.
Katelin Garland, 39, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, two years of supervised release and ordered to pay restitution in the amount of $656,825. In November 2016, Garland pleaded guilty to two counts of wire fraud. Garland’s former employer previously recovered approximately $45,000 that Garland stole.
As an administrative manager for a company in Massachusetts, Garland was responsible for depositing checks received, maintaining the record-keeping system, and requesting checks payable for entities in connection with business services. From approximately October 2011 to October 2015, Garland took advantage of flaws in her employer’s accounting and auditing systems and requested checks payable to fictitious names, which she then endorsed and deposited to a bank account she controlled. To conceal the scheme, Garland made false entries in her employer’s record-keeping system concerning those payments. Garland used the funds to pay for living expenses, tickets to sporting events, private school tuition for her children, as well as to purchase a boat, travel and shop.
Acting United States Attorney William D. Weinreb and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Westbrook Men Indicted for SNAP and WIC Trafficking ConspiracyRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: Acting United States Attorney Richard W. Murphy announced that brothers Ali Ratib Daham, 40, and Abdulkareem Daham, 21, of Westbrook, Maine, were charged by indictment today in U.S. District Court with conspiracy to defraud and to commit offenses against the United States. In addition, Ali Ratib Daham was charged with SNAP and WIC trafficking, wire fraud, money laundering and theft of government funds. The charges arise out of the defendants’ operation of Ahram Halal Market on Forest Avenue in Portland. Ali Ratib Daham was the owner and operator of the market; Abdulkareem was an employee.
The Supplemental Nutrition Assistance Program (“SNAP”) is a federal government program, formerly known as the Food Stamp Program, designed to raise the level of nutrition among low-income households. The Special Supplemental Nutrition Program for Women, Infants and Children (“WIC”) is a federal program that provides supplemental food, health care referrals and nutrition for certain low-income women, and to infants and children up to age five who were found to be nutritionally at risk.
The indictment alleges that from about June 2011 until about April 2016, the defendants engaged in a SNAP and WIC trafficking conspiracy by allowing customers to exchange SNAP benefits and WIC checks for cash at a discounted rate and allowing SNAP benefits to be used to purchase ineligible goods or services or illegally pay off credit accounts at the market. The indictment also alleges that Ali Ratib Daham allowed customers to exchange SNAP benefits for cash or use their SNAP benefits to pay down credit accounts, allowed customers to redeem WIC coupons for cash, committed wire fraud by allowing a customer to use an EBT card containing SNAP benefits to obtain cash at a discounted rate, laundered proceeds of SNAP trafficking, and stole about $39,000 in SNAP and MaineCare benefits by failing to report or update changes to his income and assets with the Maine Department of Health and Human Services (“MDHHS”).
Both defendants face up to five years in prison and a $250,000 fine on the conspiracy charge. In addition, Ali Ratib Daham faces up to five years in prison on the WIC and SNAP trafficking charges, up to 20 years on each of the wire fraud and money laundering charges, up to ten years on the theft charges and up to a $250,000 fine on each count.
"I am extremely grateful to MDHHS' investigative team for their incredible work on uncovering and prosecuting potential welfare fraud; I am committed to maintaining this focus to ensure our limited taxpayer dollars are going toward those who truly need them. The collaboration between our Department and the FBI highlights the importance of working together to protect the integrity of our welfare system. I also appreciate the work done by the Federal Bureau of Investigation (“FBI”) that led to the indictment.” said MDHHS Commissioner Mary Mayhew.
This case is being investigated by the FBI; the U.S. Department of Agriculture, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; and the MDHHS, Fraud Investigation and Recovery Unit.
An indictment is merely an accusation and a defendant is presumed to be innocent unless proven guilty in a court of law.
Upstate Residents Plead Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Nerissa A. Orr, age 42, of Simpsonville, and Craig A, Mann, age 21, of Greenville, pled guilty today in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information. Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine.On June 10, 2016, a search warrant was executed in connection with this investigation at the Greenville home of co-conspirator Cary L. Wright, age 38, who has already been sentenced to 51 months in the Bureau of Prisons for his participation in the offense. Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting. Many of the counterfeit checks were made out to Mann and Orr, but had yet to be negotiated.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greenville City Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Two Narcotics Dealers Charged in Manhattan Federal Court with Heroin Overdose Death in A Hospital Rehabilitation ClinicRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a superseding indictment charging ANTHONY DODAJ, 46, and DUANE MARTINEZ, 44, with narcotics dealing that resulted in the heroin overdose death of a 41-year-old patient in a hospital rehabilitation clinic.
On April 20, 2017, a grand jury returned an indictment charging DODAJ and MARTINEZ with conspiracy to distribute heroin. The indictment alleges that heroin distributed by DODAJ and MARTINEZ on January 1, 2017, resulted in the death of Ivy Katz, age 41.
DODAJ was arrested on a complaint on March 27, 2017, and was held without bail. MARTINEZ will be presented in federal court in Manhattan before U.S. Magistrate Judge Kevin Nathaniel Fox later today. The case has been assigned to U.S. District Judge Vernon S. Broderick. DODAJ and MARTINEZ each face a mandatory minimum term of 20 years in prison.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Duane Martinez and Anthony Dodaj worked together to deliver a fatal dose of heroin to Ivy Katz, even as she was a patient in a hospital rehabilitation clinic. Martinez and Dodaj will now be held to account for their role in fueling the tragic overdose death crisis in New York City.”
NYPD Commissioner James P. O’Neill stated: “These defendants face 20-years-to-life in prison in connection with the overdose death of a 41-year-old woman. Those who sell heroin should know that the NYPD is committed to investigating overdoses to hold dealers responsible for their deaths. I want to thank the U.S. Attorney’s Office and the NYPD detectives who worked on this case. Together, we’re fighting the alarming rise in overdoses with every tool we have.”
As alleged in the Indictment against DODAJ and MARTINEZ[1]:
From at least in or about September 2016 through in or about March 2017, in the Southern District of New York and elsewhere, ANTHONY DODAJ and DUANE MARTINEZ, the defendants, and others conspired to sell heroin. In addition, the use of controlled substances distributed by DODAJ and MARTINEZ on or about January 1, 2017, resulted in the death of Ivy Katz.
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ANTHONY DODAJ, 46, and DUANE MARTINEZ, 44, each face a maximum of life in prison, and a mandatory term of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney David W. Denton Jr. is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Columbus Men Charged with Homicides of WitnessesRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Antwan L. Hutchinson, 25, and Michael J. Favors, 24, both of Columbus, with the murders of two potential witnesses and the beating of a third witness in an indictment returned in Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) and Columbus Police Chief Kim Jacobs announced the indictment returned today.
Hutchinson and Favors allegedly possessed and distributed cocaine, heroin, oxycodone and marijuana. It is alleged that, as part of the drug conspiracy, they used “trap houses” that were in others’ names as locations to store and sell the drugs. This included using threat of force and using the homes of drug-addicted individuals.
Allegedly, it was part of the conspiracy to intimidate assault, threaten and torture individuals with serious physical harm who were perceived as owing money or drugs to the members of the conspiracy. Further, the indictment alleges that Hutchinson and Favors tortured and killed individuals who were seen as potential witnesses against the members of their conspiracy.
It is alleged that Hutchinson and Favors intentionally killed Sidney Campbell and Marie Stamp because they were perceived as potential witnesses against the defendants. They are also allegedly responsible with the beating of Cody Campbell, who subsequently died.
In the 12-count indictment, both defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, two counts of conspiracy to murder a witness, two counts of murder of a witness, two counts of murder through use of a firearm in relation to a drug trafficking crime, conspiracy to tamper with a witness and use of a firearm during a crime of violence.
Hutchinson is also charged with an additional count each of conspiracy to tamper with a witness, use of a firearm during a crime of violence and use of a firearm in relation to a drug trafficking crime.
The indictment includes death-eligible specifications under the Federal Death Penalty Act.
Hutchinson and Favors were arrested on March 27 and remain in custody.
U.S. Attorney Glassman commended the investigation of this case by ATF and the Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Jessica W. Knight who are prosecuting the case.
An indictment merely contains allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Two Charlotte Bloods Gang Members Sentenced to Life in Prison for the Double-murder of Lake Wylie CoupleRead the Press Release
CHARLOTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Jamell Lamon Cureton, 24, and Malcolm Jarrel Hartley, 23, were both sentenced to life in prison without parole in connection to the 2014 double-murder of Douglas and Deborah London in Lake Wylie, S.C., and related charges. Cureton was also sentenced to life in prison for the 2013 murder of Kwamne Donqurius Clyburn in Charlotte. U.S. District Judge Max O. Cogburn, Jr. presided over today’s sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Chief Kerr Putney of the Charlotte-Mecklenburg Police Department; and Sheriff Kevin R. Tolson of the York County Sheriff’s Office in South Carolina join U.S. Attorney Rose in making today’s announcement.
“Today, the Court handed down life sentences to Cureton and Hartley for the murders of three innocent people whose families are still dealing with the loss of their loved ones. May these sentences bring some sense of peace for those grieving families,” said U.S. Attorney Rose. “Our message to these violent gangs: We are resolute, we are prepared and we will ensure you are punished mightily for gang violence and community intimidation.”
According to previous court filings, admissions contained in filed plea documents and today’s sentencing hearings:
Beginning at least in or about 2012, Cureton, Hartley and their co-defendants were members of the United Blood Nation gang (UBN or Bloods) in Charlotte. As UBN members, the defendants carried out violent acts for the purpose of protecting and furthering the gang’s power. Court documents show that the defendants operated according to a common set of Bloods’ rules and participated regularly in gang meetings to discuss, among other things, the commission of crimes, including robbery and murder.
Cureton, a.k.a. “Assassin” and “Murda Mel,” is a member of the Charlotte-area UBN and holds the rank of 5-Star General. As early as 2007, Cureton reported his affiliation with the UBN as a Valentine Blood. Law enforcement seized Cureton’s UBN “Book of Knowledge,” wherein he was identified as a 3-Star General and has since been promoted to a 5-Star General. As a 5-Star General, Cureton commanded the gang’s activities in the area. Hartley, a.k.a. “Silent” and “Bloody Silent,” is also a member of the Charlotte-area Valentine Blood set of the UBN. Hartley was “ranked up,” or “promoted,” to a 2-Star General, following the murders of Douglas and Deborah London.
On or about May 25, 2014, Cureton, Nana Yaw Adoma and David Lee Fudge robbed “The Mattress Warehouse” store, owned by the victims, Douglas and Deborah London, in Pineville, N.C. Federal charges were subsequently filed against Cureton, Adoma and Fudge in connection with the robbery. In the months that followed, Cureton communicated with Hartley and other UBN gang members and associates, including co-defendants Daquan Lamar Everrett, Randall Avery Hankins, II, Nehemijel Maurice Houston, Briana Shakeyah Johnson, Ibn Rashaan Kornegay, Centrilla Shardon Leach, and Rahkeem Lee McDonald to plan the murders of Douglas and Deborah London. In a letter Cureton sent from prison, Cureton explained that he ordered the murder of Douglas London because the victim was going to testify against him in court, and described Deborah London as “collateral damage.” The gang’s leadership authorized Hartley to proceed with the murder, and on or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed Douglas and Deborah London at their home.
Following the Londons’ murders, UBN leadership directed the gang members to “lay low” and to avoid contact with law enforcement. Cureton also told Hartley that from that point forward the topic of the victims’ murders was forbidden to be discussed and authorized action against any person who talked about it.
In addition, on August 22, 2013, Cureton, Adoma and Akheem McDonald murdered Kwamne Donqurius Clyburn, after luring him to Pressley Road Neighborhood Park, in Charlotte. Cureton admitted in court papers that the three gang members murdered Clyburn because they suspected that Clyburn was “false claiming” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning that they could not verify Clyburn’s claim to be a Blood.
In September 2016, Cureton pleaded guilty to a total of 10 criminal counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; one count of racketeering conspiracy; one count of Hobbs Act robbery; one count of assault with a dangerous weapon in aid of racketeering activity; one count of use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence; one count of murder in aid of racketeering for the death of Kwamne Donqurius Clyburn; and one count of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn.
Hartley pleaded guilty to a total of five counts: two counts of murder in aid of racketeering for the deaths of Douglas and Deborah London; two counts of use and carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London; and one count racketeering conspiracy.
Cureton and Hartley’s co-defendants, Fudge, Everett, Kornegay, Leach, Johnson, Houston and Rahkeem Lee McDonald previously pleaded guilty to federal charges in connection with this prosecution. Sentencing dates for those defendants have not been set.
Three additional defendants, Adoma, Hankins and Ahkeem McDonald currently each face racketeering conspiracy charges. Ahkeem McDonald and Adoma are also charged with murder in aid of racketeering and use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Kwamne Donqurius Clyburn. Adoma is also charged with Hobbs Act Robbery, assault with a dangerous weapon in aid of racketeering activity and use or carry of a firearm in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the mattress store robbery. Randall Hankins is also charged with two counts of murder in aid of racketeering and two counts of use and carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the deaths of Douglas and Deborah London.
The investigation was led by the FBI with the invaluable assistance of CMPD and the York County Sheriff’s Office. In making today’s announcement U.S. Attorney Rose also thanked York County Solicitor Kevin Brackett for his support and assistance throughout the investigation and prosecution of this case.
Assistant U.S. Attorneys Elizabeth Greene and Don Gast are prosecuting the case.
Three People Sentenced for Trafficking Heroin and FentanylRead the Press Release
BIRMINGHAM – A federal judge today sentenced three Birmingham residents for conspiring to traffic nearly $2 million worth of heroin and fentanyl, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
U.S. District Court Judge L. Scott Coogler sentenced ONANDAS CARMECE BEARD, 19, to five years in prison; ANTHONY LEVY ALEXANDER, 57, to eight years and nine months in prison, and BETTY LEVY ALEXANDER, 50, to nine years and five months in prison. Each of the defendants last year pleaded guilty to the conspiracy, acknowledging their involvement in the distribution of multiple kilograms of heroin and fentanyl between September 2015 and October 2016 in Jefferson County.
“The Birmingham Metro Area and other parts of North Alabama have seen a dramatic rise in the number of overdose deaths attributed to fentanyl or a combination of heroin and fentanyl,” Posey said. “Most heroin users have no idea whether the drug they are using contains fentanyl, and while heroin can be deadly, fentanyl is much more potent. Our office is committed to the kind of joint law enforcement effort that took down this large-scale supply operation and, undoubtedly, saved lives.”
“Heroin abuse is a growing drug problem across the nation, including here in Alabama,” Hamilton said. “Overdoses from heroin and heroin laced with fentanyl have increased dramatically and are destroying countless number of lives. It only takes a few grains of pure fentanyl for an immediate death sentence. DEA and our law enforcement partners will continue to investigate those who distribute this poison in our communities with no regard for the destruction they cause.”
The remaining six defendants in the case are scheduled for sentencing on May 9, June 29, and July 27. They are: ANTHONY LEVY WARD, 36, of Chelsea, FERLANDO CARMISE MIMS, 19, and COREY DARNELLE HAYNES, 37, both of Birmingham, and JOSE AGUSTIN GUTIERREZ, 31, JESUS UBALDO MONTOYA, 23, and MARAHAI ARDIZO ENRIQUEZ, 25, all of Phoenix, Ariz.
The indictment in the case sought a $1.7 million monetary judgment against the defendants as proceeds of illegal activity. The amount of fentanyl trafficked in the conspiracy was about 4.6 kilograms, or nearly 233,000 user doses of the drug. The total amount of heroin trafficked was about 5 kilograms, or approximately 50,000 user doses.
Betty Alexander was responsible for trafficking 4.6 kilograms of pure fentanyl and Anthony Alexander, her brother, with trafficking 5 kilograms of heroin and 1.5 kilograms of fentanyl.
The DEA investigated the case in conjunction with the Birmingham and Hoover police departments and the U.S. Marshals Service. The U.S. Attorney’s Office for the Northern District of Alabama is prosecuting the case.
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