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25 April 2017
Individual Convicted Overseas of Being Terrorist Who Participated in the 1969 British Consulate, Supermarket Bombings in Jerusalem Pleads Guilty to Lying to Obtain U.S. CitizenshipRead the Press Release
A naturalized United States citizen, who was convicted overseas for having been a member of the Popular Front for the Liberation of Palestine (PFLP), which has been designated a Terrorist Organization by the United States government, and also was convicted for participation in two terrorist bombings, pleaded guilty today to having obtained her United States citizenship unlawfully, acting U.S. Attorney Daniel Lemisch announced.
Joining Lemisch in the announcement was Steve Francis, Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
Entering the guilty plea was Rasmieh Yousef Odeh,69, a Chicago-area resident.
Acting U.S. Attorney Lemisch stated, “In 1969, the Popular Front for the Liberation of Palestine conducted two bombings in Jerusalem, Israel. One was at a Supersol supermarket, in which two individuals were killed and many more wounded. The second bombing was at the British Consulate. Defendant Odeh was arrested and charged with participation in the bombings, and in 1970 was convicted. She was sentenced to life imprisonment, but was released in 1979 after ten years’ imprisonment, as part of a prisoner exchange.”
Odeh obtained a United States immigrant visa in 1994 and has lived in the United States for the last 22 years. In 2004, she obtained United States citizenship. A
According to the plea agreement signed by Odeh and accepted by the court, Odeh admitted that she lied about her criminal history, by falsely denying that she ever had been arrested, charged with a crime, convicted, or imprisoned. Odeh admitted today that she had omitted her Israeli arrest, charge, conviction and imprisonment from her United States naturalization application even though she knew she was required to disclose them. Odeh also admitted that ’At the time she made the false statements, Defendant knew the statements were false, and that she made the false statements intentionally and not as a result of any mistake, Post-Traumatic Stress Disorder or any other psychological issue or condition, as she had previously claimed in court proceedings, or for any innocent reason. Odeh also admitted that at the time she made the false statements, she knew that it was unlawful for her to provide false information to the United States government in connection with her application for Immigrant Visa and her application for naturalization. Had Odeh revealed the truth about her criminal history, as she was required to by law, she never would have been granted an immigrant visa, admitted to the United States, allowed to live here for the last 22 years, or granted United States citizenship.
As a result of her conviction for having obtained naturalization unlawfully, Odeh will be stripped of her United States citizenship when she is sentenced by U.S. District Judge Gershwin A. Drain. Sentencing was set for August 17, 2017 at 2pm. As part of the plea agreement, Odeh agreed to a judicial order of removal, under which she will be deported to her nation of citizenship, Jordan, and will not be allowed to reenter the United States.
“The United States will never be a safe haven for individuals seeking to distance themselves from their pasts,” said Steve Francis, Special Agent in Charge for HSI Detroit. “When individuals lie on immigration documents, the system is severely undermined and the security of our nation is put at risk.”
The maximum sentence for the offense is ten years, of which Odeh already has served about five weeks. Under the terms of the plea agreement, Odeh will not face additional imprisonment but will be removed from the United States following sentencing.
Acting U.S. Attorney Lemisch commended Immigration and Customs Enforcement, Homeland Security Investigations, and particularly Special Agent Stephen A. Webber, for the outstanding investigation which led to Odeh’s conviction. The prosecution was conducted by Assistant U.S. Attorneys Jonathan Tukel and Michael C. Martin.
Indictment: Wichita Woman Provided Gun to Man Charged with MurderRead the Press Release
WICHITA, KAN. – A Wichita woman was indicted Tuesday on federal charges of providing a gun to a man who is charged with shooting and killing three people near Moundridge, Kan., U.S. Attorney Tom Beall said.
Myrta M. Rangel, 31, Wichita, is charged with:
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One count of aiding and abetting possession of a firearm in furtherance of drug trafficking (count one).
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One count of possessing a firearm in furtherance of drug trafficking (count two).
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One count of conspiracy to carry a firearm in furtherance of drug trafficking (count three).
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One count of transferring a firearm to be used in drug trafficking (count four).
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One count of unlawful possession of a firearm following a felony conviction (count five).
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One count of giving a firearm to a convicted felon (count six).
It is alleged that on Oct. 29, 2016, Rangel gave a .40 caliber handgun to Jereme Nelson. Nelson is charged in Harvey County District Court with killing three people: Travis Street, Angela May Graevs and Richard Prouty.
If convicted, she faces the following penalties:
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Count one: Not less than 10 years and a fine up to $250,000.
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Count two: Not less than five years and a fine up to $250,000.
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Count three: Up to 20 years and a fine up to $250,000.
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Counts four, five and six: Up to 10 years and a fine up to $250,000.
The Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
OTHER INDICTMENTS
Jack E. Smith, 37, Scammon, Kan., is charged with unlawfully trying to dispose of dispose of hazardous waste by setting fire to it.
Smith is charged with one count of unlawfully transporting hazardous waste and one count of unlawfully disposing of hazardous waste in violation of the Resource Conservation Recovery Act.
The indictment alleges that Smith towed a panel truck containing polymers and paints used in the making of gymnasium floors to property owned by his uncle in Crawford County, Kan. Neither he nor his uncle had a permit to transport, store or dispose of hazardous waste. Smith is alleged to have attempted to dispose of the hazardous waste by setting fire to the truck.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Jeffrey Shock, 37, Wichita, Kan., is charged with escaping from federal custody at Mirror, Inc., 3820 Toben, Wichita. Kan. The crime occurred on April 2, 2017.
If convicted, he faces up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Verlarina Ruth Collins, 50, Winfield, Kan., is charged with one count of failing to report to serve a 45-month federal prison sentence. The crime occurred April 7, 2017.
If convicted, she faces a penalty of up to five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Serafin Alegria-Zamora, 35, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported, two counts of misusing a Social Security number and one count of aggravated identity theft. He was found April 11, 2017, in Sedgwick County, Kan.
If convicted, he faces up to two years and a fine up to $250,000 on the re-entry charge, up to five years and a fine up to $250,000 on each Social Security count and a mandatory two years (consecutive) on the identity theft count. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Sergio Roberto Garcia-Buezo, 31, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found Feb. 19, 2017, in Grant County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Flores-Rivera, 34, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found April 17, 2017, in Butler County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting
Darnell Wilks, 48, Garden City, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred March 18, 2017, in Finney County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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IRS Employee Indicted for Stealing Taxpayers’ IDs and Filing Fraudulent ReturnsRead the Press Release
A federal grand jury sitting in the Northern District of Georgia indicted an Internal Revenue Service (IRS) employee today for wire fraud and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to the indictment, since November 2010, Stephanie Parker of Atlanta, Georgia, worked at the IRS and had access to taxpayers’ personal identifying information, such as social security numbers and dates of birth. The indictment alleges that between September 2012 and April 2013, Parker exploited her IRS accesses to steal such personal information, which she then used to file tax returns seeking refunds in the names of other individuals. Parker allegedly directed the fraudulently obtained refunds into nominee bank accounts and used some of those funds to purchase money orders.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Parker faces a statutory maximum sentence of 20 years in prison for each count of wire fraud and a statutory minimum sentence of two years in prison for the aggravated identity theft counts. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Horn commended special agents of IRS–Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Michael Boteler and Melanie Smith of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Harrison County woman sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Stacy Michelle Hitt-Snyder, 36, of Bridgeport, West Virginia was sentenced to 15 months incarceration for heroin distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hitt-Snyder sold heroin near Glen Elk Park in Harrison County, West Virginia. She pled guilty in September 2015 to “Distribution of Heroin within 1,000 feet of a Protected Location.”
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Greater Harrison County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Hammond Woman Charged with Operating Fraudulent Tax Preparation BusinessRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ROJONAH HARRIS, age 35, of Hammond, was charged today in a one-count Bill of Information with aiding and abetting in the preparation of false tax returns.
According to the Bill of Information, beginning in about 2012, HARRIS owned and operated Harris Finance and Tax Service, a tax preparation business in Hammond. Between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 2,010 federal income tax returns for customers claiming not less than $11,100,000 in withholdings. An investigation revealed that HARRIS regularly claimed false deductions and claimed false federal tax withholdings for her clients to generate unnecessarily large refunds to which they were not entitled. In total, between tax years 2011 and 2014, HARRIS prepared and filed not fewer than 267 false and fraudulent tax returns, resulting in inappropriate and unnecessary refunds of not less than approximately $1,115,578.
If convicted, HARRIS faces a maximum term of imprisonment of not more than three years followed by up to one year of supervised release, and a $100,000 fine.
Acting U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Internal Revenue Service-Criminal Investigation Division in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Glenburn Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Jonathan Gardiner, 31, of Glenburn, Maine pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm.
According to court records, on November 13, 2014, law enforcement officers recovered a 12-gauge shotgun in the attic of the defendant’s residence and a 9-mm pistol on the ground behind the residence. Forensic testing revealed that the defendant held both firearms. Gardiner was prohibited from possessing firearms because of Maine felony convictions for burglary, aggravated assault, theft by unlawful use of property, and drug trafficking.
If Gardiner is found to be an armed career criminal, he faces an enhanced sentence of between 15 years and life in prison, five years of supervised release, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Penobscot County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine State Police Crime Laboratory.
Georgia Man Pleads Guilty to Bank FraudRead the Press Release
ERIE, Pa. - A resident of Alpharetta, Georgia, pleaded guilty in federal court to a charge of bank fraud, Acting United States Attorney Soo C. Song announced today.
Willie Hugh Joy, 47, of Alpharetta, Georgia, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around January 2009, to in and around January 2013, Joy and his co-defendants engaged in a fraudulent loan program in which a hierarchy of brokers, managers, processors and straw borrowers falsified bank loan documents and supporting documentation in order to obtain various auto and consumer loans and lines of credit from banks and credit unions.
Judge Cercone scheduled sentencing for August 14, 2017 at 1:30 p.m. The law provides for a total sentence of 30 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.
Pending sentencing, the court continued Joy on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Joy.
Four More Sentenced for $19 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that four more defendants were sentenced in federal court today for their roles in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in business and legal activities.
David Tayce, 67, of Lucas, Texas; David Hernon, 56, of Fishers, Ind. (formerly of Richardson, Texas); and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, were sentenced in separate appearances before U.S. Chief District Judge Greg Kays. Tayce was sentenced to six years and six months in federal prison without parole and ordered to pay $19,151,555 in restitution. Hernon was sentenced to four years and four months in federal prison without parole and ordered to pay $6,487,224 in restitution. Richard and Christina Bryant were each sentenced to five years of probation and ordered to pay $8,079,197 in restitution.
Albert Davis, 56, of Richardson, Texas, was sentenced yesterday to 12 years in federal prison without parole for leading the conspiracy. The court also ordered Davis to pay $19,151,555 in restitution to the victims of his fraud scheme.
Each of the defendants pleaded guilty, in separate but related cases, to participating in a conspiracy to commit wire fraud from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor. According to court documents, Davis functioned as the leader and CEO. Tayce functioned as the CFO or number two defendant in the scheme. Hernon functioned as a COO or manager in the scheme. The Bryants were employees of Davis and had a smaller role in the scheme.
The decade-long criminal conduct, including relevant conduct from several other jurisdictions, involved perjured testimony, doctored trial exhibits, a manipulated multi-million dollar civil verdict, a fake bankruptcy filing, the use of fake people with fake email accounts, impersonated companies and a phalanx of over 70 entities to conceal it.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
In addition to impersonating Cerner Corporation, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
These cases were prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. They were investigated by the FBI.
Four Men Arrested in McDonald’s Robbery Detained Pending HearingsRead the Press Release
St. Thomas, USVI – Hanselo Recio, 18, Betel Paulino, 18, and Junior Feliz, 22, of the Dominican Republic, and Helwood Paris, 20, of Puerto Rico, made their initial appearances today before U.S. Magistrate Judge Ruth Miller. Each of the four men is charged with Hobbs Act robbery, conspiracy to commit Hobbs Act robbery, possession of a firearm during a crime of violence, conspiracy to possess a firearm during a crime of violence, and territorial charges of robbery, possession of a firearm during a crime of violence, and possession of a firearm in a public housing zone, Acting United States Attorney Joycelyn Hewlett announced. The men were detained pending detention hearings to be scheduled.
According to the Information, on March 25, 2017, members of the Virgin Islands Police Department (VIPD) responded to reports of a robbery at the McDonald’s restaurant in Lockhart Shopping Center on St. Thomas. After an exchange of gunfire, Recio, who was inside McDonald’s surrendered and was taken into custody. The follow-up investigation identified Paulino, Feliz and Paris as the remaining persons involved in the robbery.
The penalty for conviction of Hobbs Act robbery or the local robbery charge is up to 20 years, and for the federal charge of possession of a firearm during a crime of violence, it is a mandatory 10-year consecutive sentence. For the territorial possession of a firearm during a crime of violence, the penalty is up to 15 years and for possession of a firearm in a public housing zone, the penalty is up to 30 years.
The case is being investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco and Firearms and the VIPD. The case is being prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Acting United State Attorney Hewlett reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Four Defendants Arrested in Livingston County Methamphetamine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that four defendants were arrested and charged by criminal complaint with operating a methamphetamine conspiracy in Livingston County, NY. Kurt Redance, 26, Kenneth Hoag, 55, both of Dansville, NY; Brandie Schumacher, 37, of Rose, NY; and Andrew Culliton, 37, of West Seneca, NY, were charged with possession with intent to distribute and distribution of methamphetamine and conspiracy to possess and distribute methamphetamine. The charges carry a minimum penalty of 10 years in prison, a maximum of life and $10,000,000 fine. In addition, defendants Redance and Hoag were charged with maintaining a drug involved premises. Redance also faces a charge of possession with intent to distribute and distribution of methamphetamine on a premises where a child was located.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the complaint, each of the defendants sold methamphetamine to a confidential source. The sales were made at The Bone Yard, a scrap yard and mechanic workshop on State Highway 36 , in Dansville, which is owned by defendant Hoag; at the Spring Road South residence of defendant Redance, also in Dansville; and at a parking lot in West Seneca. Redance’s three-year-old child was present during at least one of the controlled purchases at his residence.
The defendants made initial appearances before U.S. Magistrate Judge Marian W. Payson. Redance, Schumacher, and Culliton are being held; Hoag was released to home detention with electronic monitoring.
The complaint 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 Livingston County Sheriff’s Department, under the direction of Sheriff Thomas Dougherty; and the New York State Police, under the direction of Major Richard Allen.
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.
Fort Worth Man Sentenced to 120 Months in Federal Prison for Enticement of a MinorRead the Press Release
Fort Worth, Texas — A 49-year-old Fort Worth, Texas, man, Scott Brandon Tosch, was sentenced this morning by Senior U.S. District Judge Terry R. Means to serve 120 months in federal prison, following his guilty plea in December 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Means ordered Tosch to report to the Bureau of Prisons on June 26, 2017.
According to documents filed in the case, on August 16, 2016, Tosch responsed to a Craigslist ad entitled, “hey bored and lookin for somethin to do while still summertime... school coming up soon... hmu.” At the time, Tosch did not know that an officer with the Fort Worth Police Department was working in an undercover capacity and had posted the ad. The undercover officer responded to the email stating that he was 13 years old. The conversation continued and were sexually graphic in nature. The conversation then led to Tosch coming to pick up what he believed to be a 13-year-old female for sexual intercourse.
On August 18, 2016, Tosch arrived at the agreed location, and the Fort Worth Police Department took Tosch into custody.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by the U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Megan Fahey was in charge of the prosecution.
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Former Texan Gets Hammered with 30-Year Prison SentenceRead the Press Release
BROWNSVILLE, Texas – A 33-year-old man who resided in Palmetto, Florida, and Pasadena, Texas, has been ordered to federal prison for trafficking narcotics from Mexico through Brownsville to Florida, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Oscar Sosa Oct. 7, 2016, of conspiring to possess and possessing with intent to distribute three kilograms of methamphetamine following a five-day trial and approximately three hours of deliberations.
Today, U.S. District Judge Andrew Hanen ordered Sosa to federal prison for 360 months to be immediately followed by five years of supervised release.
During the trial, three individuals involved in the conspiracy testified that Sosa hired them to bring packages of methamphetamine on the bus from Brownsville for delivery to him in Florida. They would carry packages of narcotics on their person while on the bus and successfully delivered the drugs to him in Florida from September 2013 to March 2014. They were eventually apprehended at the bus station in Harlingen. They pleaded guilty to their roles in the conspiracy and were later sentenced to prison terms ranging from six to 20 years in prison.
The jury also heard that Sosa had familial connections in Mexico who assisted him in crossing the narcotics from Mexico to Brownsville.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Karen Betancourt and Jody Young are prosecuting the case.
Former Jefferson City Business Owner Pleads Guilty to EBay Burglary SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Jefferson City, Mo., business owner pleaded guilty in federal court today to his role in a scheme to burglarize residences in Columbia, Mo., and sell the stolen items on eBay.
Yevhen Olejovich Drobovych, 27, of Jefferson City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to one count of mail fraud contained in a July 20, 2016, federal indictment. Drobovych was the owner of Jefferson City Computer Services.
Drobovych was connected to a large number of burglaries in Columbia, primarily targeting college housing and electronic equipment. Several individuals were identified during the investigation who burglarized residences and forwarded the stolen items to Drobovych. By pleading guilty today, Drobovych admitted that he posted the stolen items for sale on eBay and mailed them to buyers by the U.S. Postal Service or other interstate carrier.
A specific example cited in today’s plea agreement involves a burglary that occurred on Nov. 22, 2014. Several thousand dollars’ worth of camera equipment and Apple MacBooks were stolen. The next day, Drobovych sold some of the stolen items on eBay – three cameras, lenses and other equipment – to a buyer in Kansas City, Mo., for $6,800. The buyer found the burglary victim’s information on the cameras and, making contact with the victim, learned the camera equipment had been stolen.
The buyer told investigators that he had made previous purchases from Drobovych on eBay, and that Drobovych had notified him by text about the camera equipment for sale. Drobovych told the Kansas City buyer that he purchased the equipment from a person who came into his store.
In a separate but related case, Henry Anthony Williams, also known as “Foolish,” 27, of Jefferson City, pleaded guilty on March 22, 2017, to his role in the scheme. Williams also pleaded guilty to possessing stolen firearms.
Williams admitted that he had sold stolen equipment to Drobovych, who sold the items on eBay. Williams admitted that he committed at least one of the three residential burglaries that occurred on Nov. 17, 2015, among residences on Commercial Drive in Columbia.
Williams also admitted that he possessed firearms that had been stolen during the burglary of a residence in Columbia. Moberly, Mo., police officers received a report from a local gun store on Sept. 17, 2014, that someone was trying to sell one of the stolen firearms – a customized Remington rifle – to the store’s owner. The person who tried to sell the stolen rifle told officers that he had purchased it from another man, identified as “LJ,” who in turn said he purchased it from Williams. LJ told officers that Williams had other firearms for sale. On Sept. 24, 2014, LJ arranged to meet Williams in the Hooters parking lot in Columbia to purchase another firearm. In a controlled undercover transaction, LJ was provided $350 and purchased a Marlin .22-caliber rifle and a Western Field 12-gauge shotgun from Williams. The Marlin rifle was among the firearms stolen in the Columbia burglary.
Under federal statutes, Drobovych is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department, the FBI, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Expedia IT Support Worker Sentenced for Insider TradingRead the Press Release
A computer support technician formerly employed at Expedia offices in San Francisco was sentenced today in U.S. District Court in Seattle to 15 months in prison for securities fraud, announced U.S. Attorney Annette L. Hayes. JONATHAN LY, 28, of San Francisco, pleaded guilty in December 2016, admitting he used his position in tech support at Expedia to access emails of Expedia executives so that he could trade in Expedia stock and illegally profit from non-public information. At sentencing U.S. District Judge John C. Coughenour imposed three years supervised release.
“This was not a one-time lapse in judgement – this defendant used his technology skills to repeatedly invade the email accounts of Expedia executives so that he could enrich himself at the expense of others,” said U.S. Attorney Annette L. Hayes. “Even after he moved on to a better paying position at a different technology firm he continued his crimes, all while trying to make it look like other employees were at fault. I commend Expedia for quickly contacting law enforcement and working with investigators to stop the computer intrusions and identify those responsible.”
According to records filed in the case, between 2013 and 2015, LY was employed by Bellevue based Expedia as a Senior IT Technician in the San Francisco office of subsidiary Hotwire.com. In order to provide IT support, LY had network privileges that allowed him to remotely access the electronic devices of Expedia executives. Using those privileges LY accessed documents and emails containing non- public information on the devices of both the Chief Financial Officer and the Head of Investor Relations. Using the non-public information, LY executed a series of well-timed trades in Expedia stock options.
Even after he left the company in 2015, LY kept an Expedia laptop, and without the knowledge of the company, continued to access the electronic devices and email accounts of Expedia executives. LY used his know-how to make it appear as though other Expedia employees were actually the ones accessing the devices. Shortly after discovering the computer intrusions, Expedia reported the misconduct to the FBI and undertook its own forensic investigation. Because of the quick reporting, the FBI was able to trace the computer intrusion to LY. As part of his plea agreement LY will repay Expedia the $81,592 it spent investigating the computer intrusion.
LY faces a separate Securities and Exchange Commission action requiring him to pay back the more than $331,000 in illegal profits he made in the scheme.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Katheryn Kim Frierson.
Former Corrections Officer Sentenced to Federal Prison for Smuggling Drugs into Goose Creek Correctional CenterRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that a former Alaska Department of Corrections employee was sentenced to eight months in federal prison for his role in smuggling drugs into Goose Creek Correctional Center (GCCC) in Wasilla, Alaska.
Adam Jason Spindler, 33, of Wasilla, a former Corrections Officer at GCCC, was sentenced today by U.S. District Judge Sharon L. Gleason, to eight months in federal prison, three years of supervised release, forfeiture of his 2011 pickup truck, a $1,400 fine, and 120 hours of community service. On
Aug. 29, 2016, Spindler pled guilty to one count of drug conspiracy and one count of possession of controlled substances with the intent to distribute.
According to Assistant U.S. Attorney Andrea Hattan, who prosecuted the case, between at least March 30, 2016, and May 23, 2016, Spindler agreed on multiple occasions to smuggle drugs into GCCC for several different GCCC inmates housed in the section of GCCC that Spindler was responsible for guarding as a Corrections Officer. More specifically, Spindler met with several inmates’ respective drug associates at locations outside of GCCC to obtain drugs, and then smuggled those drugs into GCCC and delivered them to the particular inmate for whom Spindler had obtained and smuggled the drugs. Spindler got the drugs into the prison by hiding them when he reported for work. As a Corrections Officer, Spindler had to pass through a metal detector but was not routinely subjected to pat-down or further searches when he entered GCCC. To coordinate these drug trafficking schemes, Spindler obtained contact information for each co-conspirator inmate’s drug courier(s) from the applicable inmate, and then communicated with the drug courier via telephone and text message to arrange meetings outside of GCCC to obtain the drugs.
One of the drug schemes that Spindler was involved in was his May 2016 conspiracy with inmate Edward Wayne George, aka “Bigs,” and George’s girlfriend, Taylor Hunter, to smuggle drugs into GCCC for distribution to other inmates. George was a GCCC inmate who was housed in the same section of GCCC where Spindler worked as a Corrections Officer. Spindler got Hunter’s contact information from George and from there, Spindler and Hunter coordinated the drug delivery directly. Between May 5 and May 25, 2016, Spindler had contact with Hunter approximately 35 times.
On May 23, 2016, as law enforcement officers looked on, Spindler, who was dressed in his Alaska Department of Corrections uniform, met Hunter at a McDonald’s restaurant in Wasilla to retrieve the drugs that Spindler planned to smuggle to George. Hunter then got into Spindler’s truck and she handed Spindler a plastic baggie containing heroin and marijuana. Spindler then drove from the McDonald’s directly to GCCC. Spindler entered GCCC to begin his shift and was detained and subsequently arrested by the Federal Bureau of Investigation (FBI).
Spindler admitted that he was paid approximately $1,400 altogether for smuggling drugs into GCCC, but made it clear that he was doing it for the “excitement” not the money.
At sentencing, Judge Gleason noted the seriousness of Spindler’s crimes and recognized “the enormous” and multi-faceted impact that introducing drugs into a prison environment has to GCCC inmates, GCCC personnel, and public trust. In addition, the Judge specifically noted the need for the sentence imposed to deter others by sending the “message that this conduct cannot be tolerated,” particularly by a Corrections Officer like Spindler who “betrayed public trust.” Judge Gleason also noted that Spindler’s crimes were not a “one time event or one time error in judgment,” but spanned two months, and were perpetrated in “a prison environment.” The Judge specifically noted being “troubled” by Spindler being corrupted by the lure of, in his words, “excitement.”
Edward Wayne George, 27, was previously sentenced on April 6, 2017, to 33 months in prison, followed by three years of supervised release, for his role in the conspiracy. At his sentencing, Judge Gleason noted that the offense endangered not just the other GCCC inmates but, importantly, GCCC employees, “who leave their families every day” to work within the state’s largest prison.
Taylor Hunter, 20, is scheduled to be sentenced on May 17, 2017, at 1:30 P.M.
“The vast majority of government employees work hard every day to serve the people of the nation and our state,” said Acting U.S. Attorney Schroder. “However, when one of them becomes corrupt, it is necessary to hold them accountable.”
“Over the past year, we’ve developed strong working relationships, especially with the Department of Corrections to identify possible cases of corruption within our prisons,” said FBI Special Agent in Charge, Marlin Ritzman. “This case is just the beginning of our collaboration with DOC. FBI Anchorage is committed to rooting out corruption at whatever level it exists.”
Acting U.S. Attorney Schroder commended the FBI who conducted the investigation, as well as the Alaska Department of Corrections for their substantial assistance, leading to the successful prosecution of this case.
Florida Man Sentenced to 53 Months in Prison for Defrauding Bergen County, New Jersey, Company Out $1.5 MillionRead the Press Release
TRENTON, N.J. – A Windermere, Florida, man was sentenced today to 53 months in prison for using phony invoices to fraudulently obtain more than $1.5 million from a factoring company in Bergen County, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jerry Guidice, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company in which the trucking company would assign some of its accounts receivable in return for short-term financing. Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.
In addition to the prison term, Judge Thompson sentenced Guidice to three years of supervised release and ordered him to pay restitution of $1.6 million.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Christopher Atcachunas Esq., Orlando, Florida
Florida Couple Arrested for Smuggling Lovebirds Protected Under the Endangered Species ActRead the Press Release
A complaint was unsealed earlier today in Brooklyn federal court charging Robert Burgos and Vanessa Burgos with illegally importing a dozen Fischer Lovebirds into the United States in violation of the Endangered Species Act. The defendants were arrested this morning in Avon Park, Florida, and their initial appearances are scheduled for tomorrow morning at 9:30 a.m. at the United States Courthouse in Fort Pierce, Florida.[1]
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Ed Grace, Deputy Chief of Law Enforcement, United States Fish and Wildlife Service (FWS).
Fischer Lovebirds, also known as Agapornis fischeri, are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international treaty that protects wildlife that may become endangered due to the demands of international markets. As a result, Fischer Lovebirds may be imported into the United States from a foreign country only if the importer possesses a valid CITES export or re-export permit from the foreign country of origin.
As alleged in the complaint, in late June 2015, a shipment of Fischer Lovebirds, arrived at John F. Kennedy International Airport in Queens, New York, from Madrid, Spain, falsely labelled as Rosy-Faced Lovebirds (or Agapornis roseicollis), which are not CITES-protected. The shipment was imported by Aviary La Familia, Inc., a Florida-based company run by the defendants, and was being held at the United States Department of Agriculture (USDA) quarantine center in New York.
Over the course of the investigation, the USDA sent photographs of the lovebirds from the June 11, 2015 shipment to FWS, and a forensic ornithologist at the FWS National Forensics Laboratory confirmed that the lovebirds were not Rosy-Faced Lovebirds, but were, in fact, Fischer Lovebirds.
As further alleged, the investigation additionally revealed that the defendants allegedly traveled to Indonesia to pick out the Fischer Lovebirds and used Facebook to coordinate the smuggling of the Fischer Lovebirds from Indonesia, including by conspiring with others to falsify import paperwork. The defendants also arranged for the Fischer Lovebirds to be shipped to Spain prior to entry into the United States in an attempt to evade U.S. restrictions on the import of birds from Indonesia that were in place at the time.
“For personal profit, the defendants knowingly conspired to evade an international treaty and federal laws enacted to protect a species of birds from the demands of the commercial market, and they will be held to account,” stated Acting United States Attorney Rohde.
“The smuggling of protected birds into the U.S. jeopardizes the health and survival of our native bird species,” Deputy Chief of Law Enforcement Grace stated. “In this case, smugglers allegedly used false documents and purposely traveled through Spain to hide the fact that most of these birds originated in Indonesia. The vigilance of our special agents and wildlife inspectors exposed this global wildlife trafficking scheme.”
Assistant United States Attorney Alicia N. Washington is in charge of the prosecution.
The Defendants:
ROBERT BURGOS
Age: 42
Avon Park, Florida
VANESSA BURGOS
Age: 32
Avon Park, Florida
E.D.N.Y. Docket No. 17-MJ-306
[1] The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Final Two Methamphetamine Conspirators SentencedRead the Press Release
Lynchburg, VIRGINIA – The final two defendants in an interstate drug trafficking conspiracy were sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Ivan Rodriguez Chavez, 36, of Forest, Va., who was previously convicted of one count of conspiring to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime, was sentenced today to a term of imprisonment of 180 months. In a separate hearing, the Court imposed a sentence of 104 months upon defendant Brent Michael Hutchins, 28, of Goode, Va., who had been convicted of conspiring with Chavez to distribute methamphetamine and of possessing a firearm while being an unlawful user of a controlled substance.
During previous hearings in U.S. District Court, Justin Ray Goodman and William Matthew Hylton had been sentenced to 100 months and 94 months, respectively, for their roles as distributors on behalf of the conspiracy. Christiana Hudgins received a sentence of 36 months.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bedford County Sheriff’s Office and the Roanoke City Police Department. Assistant United States Attorney Donald R. Wolthuis and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Federal, State and Local Law Enforcement Officials Promote DEA Prescription Drug Take-Back DayRead the Press Release
Middletown, Conn. – National Prescription Drug Take-Back Day is Saturday, April 29, and Connecticut residents are encouraged to bring their potentially dangerous, unwanted medicines to more than 60 collection sites around the state between 10:00 a.m. to 2:00 p.m.
Individuals can find a nearby collection site by visiting www.dea.gov and clicking on the “Take-Back Site Locations” link.
U.S. Attorney Deirdre Daly, DEA Assistant Special Agent in Charge Brian Boyle, Middlesex County Assistant State’s Attorney Peter McShane, Connecticut State Police Colonel Alaric Fox and Middletown Police Chief William McKenna convened at the Middletown Police Department this afternoon to promote the event. The Middletown Police Department will serve as a collection location for this Saturday’s Drug Take-Back Day.
“The opioid epidemic continues to ravage our state as it has states all across the country,” said U.S. Attorney Daly. “Thousands of Connecticut families have lost loved ones to drug overdoses. Tragically, last year alone 917 people in Connecticut died from an overdose and the numbers of deaths are increasing. Far too often the abuse started with painkillers or other prescription narcotics. Again and again, we find victims who were injured and became addicted to legally-prescribed opioids, or family members and friends who experiment with leftover pills they find in medicine cabinets. You may be surprised by the quantity and types of drugs you have in your home. I strongly urge you to collect all of your excess drugs and dispose of them this Saturday at one of more than 60 locations across our state. By doing so, you may be saving someone close to you from addiction, or much worse.”
“Many Americans are not aware that medicines that languish in home cabinets are highly vulnerable to diversion, misuse and abuse,” said DEA Special Agent in Charge Michael J. Ferguson. “Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisoning and overdoses due to the illegal use of these drugs. Please take the time to clean out your medicine cabinet and make your home safe from drug theft and abuse.”
“It is clear that the Take Back Days and the medication collection boxes at police stations have increased awareness of the serious problem of addiction and the need to properly dispose of over-the-counter prescription medicine,” said State’s Attorney McShane. “I am glad that police and prosecutors are taking a proactive approach to aid in the fight in the epidemic that we are faced with.”
“The Connecticut State Police, along with the balance of our law enforcement partners, remain fully committed to addressing the scourge of opioid addiction, through enforcement, education and community service,” said Colonel Fox. “The Drug Take Back Day is but one of the many steps law enforcement is committed to in order to combat this issue.”
“We are happy to, once again, participate in the DEA’s National Drug Take Back Day,” said Chief McKenna. “On Saturday, officers will be made available to any member of the public who wishes to drop off any unused, or expired, prescription medications. The timing of the event unfortunately comes as law enforcement agencies across the country are teaming up with other agencies, hospitals, medical providers and many other organizations in an attempt to combat the opioid epidemic. The goal is to educate the public on the risks associated with the use of these deadly chemicals. Local and federal law enforcement agencies continue to investigate the illegal distribution of these drugs to stop the street level dealing that has resulted in an extraordinary number of overdose deaths. We have also teamed up with the U.S. DOJ, the DEA and our local States Attorney’s office to ensure proper overdose investigation protocols are met, that teamwork is achieved and that communication continues to combat this deadly issue that is affecting more and more families across our city, state and nation.”
Many local police departments in Connecticut, and Connecticut State Police barracks, maintain permanent drop-off receptacles so the public can dispose of unneeded prescription medications anytime throughout the year with no questions asked. Click here for a list of these permanent locations.
U.S. Attorney Daly noted that the U.S. Attorney’s Office and DEA continue to spearhead a comprehensive enforcement and public awareness initiative to prevent opioid addiction and reduce the number of overdose deaths caused by heroin, fentanyl and prescription opioids.
The U.S. Attorney’s Office and DEA, working in close partnership with State’s Attorneys, Connecticut State Police and police departments across the state, are targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
As part of this initiative, local law enforcement officers are performing time-sensitive investigative techniques to preserve all evidence at the scene of an overdose death. Police contact the DEA at the early stages of an investigation and ensure that an autopsy of the decedent is performed. Investigators determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted by federal or state authorities.
Since the beginning of 2016, as part of this initiative, the DEA, working with state and local counterparts, has conducted approximately 120 investigations, and the U.S. Attorney’s Office has prosecuted approximately 60 individuals.
Last week, the U.S. Attorney’s Office, DEA, Waterbury State’s Attorney and the Connecticut Office of the Chief Medical Examiner conducted opioid overdose death investigation training to approximately 180 police officers from across the state.
The U.S. Attorney’s Office also has formed a Heroin Action Education Team (HEAT), which has conducted opioid awareness presentations at numerous high schools and middle schools in Connecticut. The presentation typically includes an Assistant U.S. Attorney, a DEA special agent and a parent who has lost a child to a drug overdose. To date, these presentations have reached more than 15,000 students.
For more information on HEAT, please click here.
The HEAT presentations also include a showing of the FBI/DEA film “Chasing the Dragon,” and an opioid awareness video produced by the U.S. Attorney’s Office.
Federal Grand Jury Indicts Irving Woman on Wire Fraud Charges Stemming from $1 Million Ponzi SchemeRead the Press Release
DALLAS —Nemelee Liwanag Jiao, 47, of Irving, Texas, was indicted last week by a federal grand jury in Dallas, Texas, on two counts of wire fraud for orchestrating a Ponzi scheme that cost at least 35 investors more than $1,000,000, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiao made her initial appearance last week before U.S. Magistrate Judge Ramirez, who ordered her to surrender her passport and released her on bond pending trial.
According to the indictment, beginning in February 2009 and continuing through September 2016, Jiao devised a scheme to cause individuals to invest in promissory notes purportedly issued by Shepherd’s Light Learning Center and Lord of Peace Learning Center, two non-profit schools located in the Philippines, but instead used the invested funds for her personal benefit. Jiao raised at least $1,000,000 from at least 35 investors.
Specifically, Jiao represented to investors that she was a representative of Shepherd’s Light and Lord of Peace and entered into investment contracts, also known as promissory notes, with investors falsely promising rates of return of 10% to 100% on investments. Jiao also promised repayment of principle and interest resulting from the investment within 30 days to one year following the investment. Many of the investment contracts were notarized to make the investments appear legitimate. Jiao then directed investors to write checks and wire funds to bank accounts controlled by her. Jiao used the investors’ funds for her own benefit, including a country club membership and personal expenses.
The indictment includes a forfeiture allegation that would require Jiao, upon conviction, to forfeit funds in the amount constituting the proceeds traceable to the offense.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for wire fraud is 20 years in federal prison and a $250,000 fine.
If you believe you were the victim of criminal fraud committed by Nemelee Liwanag Jiao, please contact the FBI at 972-559-5000.
The Federal Bureau of Investigation is in charge of the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Father and Son Business Owners Get Prison Sentences for Failing to File TaxesRead the Press Release
ERIE, Pa. - Two residents of Warren, Pennsylvania, have been sentenced in federal court on their convictions of violating federal tax and currency transaction laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone sentenced John Branch, 45, of Warren, Pennsylvania, to 12 months and 1 day in jail, a $25,000 fine, and ordered to make restitution in the amount of $377,643.74. Judge Cercone sentenced Randall Branch, 65, of Warren, Pennsylvania to 24 months in jail, a $25,000 fine and ordered to make restitution in the amount of $420,117.40.
According to information presented to the court, the father and son defendants owned a business through which they sold oil and natural gas through various brokers. Between 2006 and 2012, the defendants received combined gross income from their oil and natural gas business in excess of $6,900,000.00. Despite their business income, the defendants stopped filing tax returns with the IRS after 1997. John Branch was sentenced for failing to file income tax returns. Randall Branch was sentenced for failing to file a tax return and of conspiring to defraud the United States for the purpose of impairing, impeding and defeating the functions of the IRS in the computation, assessment and collection of income taxes. According to the facts supporting the conviction of Randall Branch, while failing to file tax returns, he also began to dispute his obligation to pay taxes, and he challenged the authority of the IRS to assess and collect taxes. As part of the conspiracy conviction for Randall Branch, the evidence presented to the court disclosed that he avoided the financial threshold reporting requirements on the FinCEN Form 104, Currency Transaction Report (CTR) and impeded the function of the IRS to assess and collect taxes by structuring financial transactions in amounts less than $10,000.00. He then cashed those checks, regularly doing so with multiple checks, at different bank branches, on the same day.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of the Branches.
Erie Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
Daniel Warren Talley, 32, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on October 21, 2016, Talley knowingly possessed a stolen firearm which he unlawfully possessed while being a convicted felon. The firearm was seized by investigators after a search warrant was executed at Talley’s residence in Erie, Pennsylvania. The firearm had been stolen from a residence in Millcreek Township, Pennsylvania in September 2016.
Judge Cercone scheduled sentencing for August 14, 2017 at 3:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Talley.
East Chicago Man Indicted for Using Counterfeit Securities to Defraud Gary Housing AuthorityRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced an indictment charging Ashley D. Dunlap, 54, of East Chicago, Indiana with two counts of uttering a counterfeit security.
The indictment alleges, in July 2013, the U.S. Department of Housing and Urban Development approved federal funding for building renovations at the Delaney and Dorie Miller public housing projects operated by Gary Housing Authority (GHA). Dunlap’s construction company was awarded the project, worth $347,500. The successful bidder was required to provide a surety. Dunlap purported to provide the surety – in the form a 20% cash escrow – to GHA on or about September 3, 2013 with two counterfeit instruments purporting to be Chase Bank cashier’s checks in the amounts of $20,000 and $49,600.
The United States Attorney’s office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This indictment resulted from an investigation conducted by the United States Department of Housing and Urban Development, Office of Inspector General. This case is being handled by Assistant United States Attorneys Maria Lerner and Abizer Zanzi.
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Dominican National Sentenced for Heroin TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston in connection with trafficking heroin and fentanyl in Taunton and surrounding communities.
Manuel Romero-Gonsalez, aka Pablo, 40, who previously resided in Providence, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 66 months in prison and three years of supervised release. Romero-Gonsalez will face removal proceedings following the completion of his federal sentence. In January 2017, Romero-Gonsalez pleaded guilty to a superseding indictment charging him with conspiracy to possess with the intent to distribute and distribution of heroin and fentanyl.
In October 2015, Romero-Gonsalez was arrested and charged along with 24 others in connection with a heroin trafficking ring operating in southeastern Massachusetts; an April 2016 superseding indictment brought the number of defendants charged in the case to 26. These charges are the result of a 15-month investigation into heroin and fentanyl trafficking in Taunton, Mass., and surrounding communities, which have seen a steep increase in overdoses and related deaths since 2013. Romero-Gonsalez worked with his brother, Francis Gonsalez-Romero, his sister, Maria Elena Ocasio, Cory Nickerson and William Rodriguez to buy and sell heroin and occasionally fentanyl.
Seventeen of the 26 defendants charged in the superseding indictment have pleaded guilty (including Gonsalez-Romero, Ocasio, Nickerson and Rodriguez) and six, including Romero-Gonsalez, have been sentenced.
Acting United States Attorney William D. Weinreb and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Thomas E. Kanwit, Katherine Ferguson and Ann Taylor of Weinreb’s Narcotics and Money Laundering Unit are prosecuting the cases.
Delaware Man Indicted for "Sextorting" Three Minors in MarylandRead the Press Release
WILMINGTON, Del. – Acting U.S. Attorney David C. Weiss for the District of Delaware announced today that a federal grand jury sitting in Wilmington indicted Scott C. Foster on April 13, 2017, on charges related to the production, receipt, and possession of child pornography.
Defendant Foster, 37, of Dover, Delaware made his initial appearance before a federal magistrate judge on April 24, 2017, where his federal Indictment was unsealed. Foster allegedly used a fake Facebook account under the name of “Chase Reacher” to harass, threaten, and coerce minor females into making and sending sexually explicit photographs.
According to the Indictment, from August 2016 through September 2016, Foster knowingly persuaded two Maryland minors to engage in sexually explicit conduct for the purpose of producing images of the conduct and knowingly received child pornography from the two minors. During the same time period, the Indictment alleges that Foster knowingly attempted to persuade and induce a third Maryland minor to engage in sexually explicit conduct for the purpose of producing images of the conduct. Foster is also charged with possession of child pornography.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Delaware Child Predator Task Force, and the Caroline County, Maryland Sheriff’s Office investigated, and Assistant U.S. Attorney Graham L. Robinson of the District of Delaware is prosecuting the case.
This investigation is an outgrowth of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Any person having information about this matter is encouraged to contact Homeland Security Investigations at (302) 428-0104.
Cross Lanes felon sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man who sold drugs while on federal supervised release was sentenced to prison today, announced United States Attorney Carol Casto. Darrell Spicer, 60, previously pleaded guilty to possession with intent to distribute heroin. In today’s hearing, he was sentenced to six years in federal prison for that offense. He was also sentenced to an additional year and a half in prison for violating his federal supervised release. The sentences will be served consecutively.
Spicer admitted that on June 15, 2016, he sold a substance that he believed was heroin to a confidential informant working with the Kanawha County Sheriff’s Department. That substance later field-tested positive for fentanyl. Based on that controlled drug buy, a detective from the Sheriff’s Tactical Operations Patrol (STOP) Team obtained a search warrant for Spicer’s residence in Cross Lanes. While searching Spicer’s residence, officers discovered heroin, fentanyl, and over $7,000 in cash, which included pre-recorded buy money used in the controlled purchase. Spicer was present during the search and admitted the recovered drugs belonged to him and that the money was from illegal drug activity.
The Kanawha County Sheriff’s Department’s STOP Team conducted the investigation. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernmentRead the Press Release
Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set asides for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation, two months of which were home confinement, and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorney Justin P. Murphy of the Antitrust Division.
Construction Company Officer Sentenced to Prison for Conspiring to Defraud GovernnmentRead the Press Release
WASHINGTON – Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, was sentenced today to six months in prison and 24 months of supervised release on a federal charge of conspiring to commit wire fraud. Cho was also ordered to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.
The sentencing was announced by Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division, U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia, Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office, Acting Inspector General Hannibal “Mike” Ware for the U.S. Small Business Administration (SBA), Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA), Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
According to court documents, Cho was an initiator and mastermind of a scheme lasting more than five years to defraud a disadvantaged persons’ business assistance program of tens of millions of dollars. Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA. Cho’s two companies were eligible to receive federal government contracts that had been set aside for small, disadvantaged businesses under the SBA 8(a) program. Cho and MCC understood that MCC would illegally perform all of the work on these contracts and pay three percent of the proceeds to Cho’s companies rather than have Cho’s companies perform at least 15 percent of the work as required by the SBA 8(a) program. In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011. The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small, disadvantaged businesses.
The court documents also state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.” To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged. The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work. For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
Cho, 45, of Downers Grove, Illinois, was charged on Oct.12, 2016, in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud. She pleaded guilty on Nov. 15, 2016, and was sentenced today by the Honorable Ketanji Brown Jackson.
MCC pleaded guilty on Feb. 2, 2016, to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture. Thomas Harper, another former officer and owner of MCC, pleaded guilty on June 22, 2016, to conspiring to obstruct proceedings before a department or agency. He is to be sentenced on May 15, 2017. Walter Crummy, another former officer and owner of MCC, pleaded guilty on Aug. 23, 2016, to conspiring to commit wire fraud and was sentenced earlier this month to a year of probation and forfeiture in the amount of $105,618.
The investigation was conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).
The prosecution was handled by Assistant U.S. Attorney John Marston and Trial Attorneys Kevin B. Hart and Justin P. Murphy of the Antitrust Division.
Connecticut Man Pleads Guilty to Drug Distribution ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Luis Hernandez, 35, of Waterbury, Connecticut, pled guilty in U.S. District Court to distribution of heroin and cocaine base, commonly known as “crack.”
According to court records, on November 30, 2016, Hernandez distributed heroin and crack to an individual working with the law enforcement agents at a residence in Hermon, Maine.
The defendant faces up to 20 years in prison, a $1,000,000 fine, and at least three years of supervised release.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration; and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Columbia, Tennessee Man Ordered Detained by U.S. Magistrate in Sacramento, CaliforniaRead the Press Release
Tad Cummins, 50, of Columbia, Tenn., appeared before a U.S. Magistrate in Sacramento, California today and was ordered to be held in custody, pending his subsequent transfer to the Middle District of Tennessee, to await trial on the charge of transporting a minor across state lines for the purpose of engaging in unlawful sexual activity, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Cummins was charged in a criminal complaint on April 20, 2017, after being located in Cecilville, Calif. with the 15 year-old female victim. As alleged in the complaint, Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tenn. area on March 13, 2017.
Cummins was arrested by FBI agents on Friday, April 21, 2017, while in the custody of the Siskiyou County, Calif. Sheriff. He appeared before U.S. Magistrate Judge Kendall J. Newman this afternoon for a detention hearing. Magistrate Judge Newman ordered that he be transferred to the Middle District of Tennessee as soon as possible for further proceedings.
If convicted, Cummins faces a mandatory minimum sentence of 10 years in prison, up to life.
This case was investigated by the FBI and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Phil Wehby and Sara Beth Myers of the Middle District of Tennessee and Jason Hitt of the Eastern District of California.
The charges brought by this complaint are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Citizen of Mexico Sentenced to 15 Months in Prison for Illegally Reentering U.S. after DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 46, a citizen of Mexico recently residing in Norwalk, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 15 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016. On January 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chicago Man Sentenced to Federal Prison for Heroin OffensesRead the Press Release
A Chicago resident was sentenced to serve 85 months in prison for distribution of heroin and conspiracy to distribute heroin in the St. Louis metropolitan area, announced United States Attorney Donald S. Boyce for the Southern District of Illinois.
According to documents filed with the Court, Lacy Edward Snead, 53, was charged in a superseding indictment on December 16, 2015, along with two co-defendants: Alfred Reeves, Jr., 43, of O’Fallon, Ill., and Ciera McNeal, 29 of East St. Louis, Ill. Snead was charged with distributing heroin on March 5, 2013, and with participating in an ongoing conspiracy to distribute heroin over a three-year period of time.
Snead and Reeves, sold heroin to a confidential informant on March 5, 2013, and continued to be involved in heroin distribution thereafter. On June 18, 2015, Snead traveled from Chicago with Reeves and McNeil, transporting approximately 150 grams of heroin that was intended to be distributed in the St. Louis metropolitan area. Snead pleaded guilty in September of 2016. He was sentenced on Friday, April 21, 2017.
Both of Snead’s co-defendants, McNeil and Reeves, were sentenced in October of 2016. McNeil was sentenced to serve 30 months in prison, and Reeves was sentenced to serve 67 months in prison.
The investigation was conducted by agents from the Drug Enforcement Administration and the Madison County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Charlotte Man Sentenced to Two Years in Connection with Jamaican-based Lottery Fraud SchemeRead the Press Release
CHARLOTTE, N.C. –Jahnoy Davis, 25, of Charlotte, was sentenced today to 24 months in prison for his involvement in a Jamaican-based lottery fraud scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Davis to two years of supervised release and ordered the defendant to pay $216,619 as restitution to 12 victims.
According to today’s sentencing hearing and documents filed in the case, from January 2015 to March 2016, Davis was part of a Jamaican-based lottery fraud scheme. Court records show that co-conspirators operating in call centers in Jamaica and elsewhere contacted victims and falsely told them they were the winners of sweepstakes and other prizes. These victims were usually elderly and located throughout the United States. According to court records, the co-conspirators told the victims that they needed to pay various fees in order to claim the prizes and directed the victims to mail cash to co-conspirators, including to Davis.
Court records indicate that the cash frequently was concealed in a magazine inside the postal package. Davis recruited a number of individuals to receive packages and conspired with a U.S. Postal employee to divert packages from that employee’s route. For example, in or about August and September 2015, a victim identified as “W.R.” was contacted by the co-conspirators and informed that he was the winner of a $7.5 million sweepstakes prize. The victim was told that in order to claim the prize, he needed to pay fees in advance. On at least seven occasions, the victim mailed cash via the U.S. mail to various addresses within Charlotte, as instructed by the co-conspirators. The victim was never awarded the $7.5 million “prize.”
Court records indicate that, generally, once Davis received the mailed cash from the sweepstakes victims, he would wire the money in small increments to co-conspirators in Jamaica. In order to conceal the nature of the proceeds, as well as the owner of the proceeds, Davis would also recruit other individuals to send the cash to Jamaica in their names. Davis lied to those individuals about the source of the cash and the purpose of the transfers. According to court records, Davis defrauded at least 12 victims between $250,000 and $500,000.
Davis pleaded guilty in January 2017 to one count of money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
On April 3, 2017, Antonio Terrell Brown, a former Charlotte-area mail carrier, pleaded guilty to mail theft charges for his involvement the conspiracy. He is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Postal Inspection Service in Charlotte, under the direction of Inspector in Charge David M. McGinnis, and the U.S. Postal Service, Office of Inspector General, under the direction of Area Special Agent in Charge Paul L. Bowman, for leading the investigation into Davis.
Assistant U.S. Attorney Kelli Ferry, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Chandler Man Sentenced to Prison for Health Care Fraud and Identity TheftRead the Press Release
PHOENIX – On April 24, 2017, Elseddig Elmarioud Musa, 43, of Chandler, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 57 months in federal prison and three years of supervised release. Musa also was ordered to pay more than $1.2 million in restitution. Musa was convicted by a jury of 35 counts of health care fraud and four counts of aggravated identity theft.
Musa falsely billed Arizona’s Health Care Cost Containment System (AHCCCS) for thousands of medical transports that never occurred, generating more than a million dollars in fraudulent payments from AHCCCS. AHCCCS is Arizona’s Medicaid agency that offers health care programs to serve Arizona residents who meet certain income and other requirements. owned and operated Arizona One Medical Transportation LLC, which purported to provide non-emergency medical transportation for AHCCCS recipients on the Navajo reservation. From January 2012 through June 2014, ’s company submitted more than 15,000 false claims to AHCCCS for medical transports that never occurred, generating approximately $1,203,680.08 in fraudulent payments from AHCCCS to Musa.
The investigation in this case was conducted by the Federal Bureau of Investigation and AHCCCS-OIG. The prosecution was handled by Jillian Besancon and Peter Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-01265-DLR-PHX
RELEASE NUMBER: 2017-037_Musa
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Career Offender Sentenced to over 21 Years for Assaulting A Federal Officer with A Dangerous and Deadly WeaponRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Abasi Akeem Smith (30, Orlando) to 21 years and 6 months in federal prison for assaulting a federal officer with a dangerous or deadly weapon. Smith’s criminal history includes multiple drug-trafficking convictions, so he was sentenced as a career offender pursuant to the U.S. Sentencing Commission Guidelines. Moreover, he was on federal supervised release at the time of the assault, and his sentence includes 18 months’ imprisonment for violating the conditions of his supervised release. Smith was convicted on February 7, 2017, following a jury trial.
According to testimony and evidence presented at trial, on March 30, 2016, task force officers with the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force were seeking to apprehend Smith pursuant to a felony arrest warrant and located him driving a vehicle. When the officers attempted to block Smith into a parking lot, he rammed one of the officer’s vehicles and then attempted to escape before hitting a fence and another, unoccupied vehicle. Smith subsequently jumped over the fence and fled on foot, before eventually being apprehended.
This case was investigated by the U.S. Marshals Service, the Orange County Sheriff’s Office, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Beckley area physician pleads guilty to federal oxycodone crimeRead the Press Release
BECKLEY, W.Va. – A jury trial that began yesterday in federal court in Beckley on a 22-count indictment against a Beckley area physician ended today with the defendant’s guilty plea to a federal drug crime, announced United States Attorney Carol Casto. Dr. Michael Kostenko, D.O., 61, of Daniels, entered his guilty plea to distribution of oxycodone not for legitimate medical purposes and beyond the bounds of medical practice. The crime Kostenko pleaded guilty to was contained in Count Seven of the Superseding Indictment.
Kostenko admitted that he owned and operated the Coal Country Clinic, a medical practice located in his Raleigh County residence. Kostenko also admitted that on December 9, 2013, he distributed oxycodone, a powerful pain medication, not for legitimate medical purposes. Specifically, Kostenko admitted that on that day, approximately 271 patients arrived at Kostenko’s residence seeking oxycodone prescriptions. Kostenko additionally admitted that his staff collected over $20,000 cash from the patients that he later deposited in a local bank in amounts of less than $10,000. Kostenko further admitted that on that day he wrote over 370 oxycodone prescriptions totaling 22,255 pain pills. Moreover, Kostenko admitted that he wrote these prescriptions from his upstairs bedroom, without seeing any of the patients, and that his staff handed out the prescriptions. Finally, Kostenko admitted that by writing the oxycodone prescriptions, he acted beyond the bounds of professional medical practice.
“West Virginia is at the epicenter of a drug crisis that is ravaging our state and has left us with the highest overdose rate in the nation. Doctors are entrusted with prescribing authority in order to heal and protect patients, not betray that trust by contributing to prescription drug addiction,” stated United States Attorney Carol Casto. “My office will continue working with law enforcement to aggressively investigate and prosecute doctors who illegally prescribe the pain pills that have devastated our communities.”
Kostenko faces up to 20 years in federal prison and a fine of up to $1 million when he is sentenced on August 23, 2017.
The investigation of Kostenko and his Coal Country Clinic was led by the West Virginia State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Office of Inspector General, United States Department of Health and Human Services. The plea hearing was held before United States District Judge Irene C. Berger.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Baltimore Woman Sentenced to over Five Years in Federal Prison for Bank Fraud and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – On Friday April 21, 2017, U.S. District Judge George L. Russell, III sentenced Yasmine Young, age 29, of Baltimore, Maryland to 66 months in prison, followed by five years of supervised release for bank fraud and narcotics conspiracy. Judge Russell also ordered Young to pay $326,487.11 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from July 2014 through October 2014, while employed at a financial institution, Young used her employee access to target customer accounts with high dollar balances. Without permission and a business purpose, she printed screen shots of the account holders’ personal information and copies of checks that had previously been written and processed. Young provided these screen shots to co-schemers.
Using the screen shots provided by Young, co-schemers called into the financial institution’s banking system and were able to bypass the verification protocols. The co-schemers ordered checks from these accounts and forged them in order to cash them or deposit them into various accounts. The financial institution identified 22 victims, all of whom had high dollar balances and all of whom had fraudulent checks drawn on their accounts. The scheme has resulted in a loss to the financial institution of over $300,000.
While awaiting trial on this charge, from November 2015 through January 2016, Young and co-defendant Kaemarr Antonio Cox with others conspired to distribute marijuana. On January 12, 2016, DEA in Maryland received information from DEA in San Diego, California regarding a suspicious United Parcel Service (UPS) parcel that was in route for an apartment in Windsor Mill, Maryland.
On January 14, 2016, a detective interdicted the parcel where a narcotics dog alerted to the parcel for illegal narcotics. DEA found 11 pounds of marijuana inside. The parcel was repackaged and delivered by an undercover detective to Windsor Mill where Young accepted the package. Later that day DEA knocked and announced their presence at the door to execute a state search and seizure warrant. Young came to the front window, but did not open the door. Forced entry was made and members of the entry team took Young and Cox, the only subjects in the residence into custody.
Cox advised that the marijuana that was delivered was his. At the time, Young was on release post-indictment and pending trial on the federal fraud charges. Young’s release conditions required that she live in the Windsor Mill apartment where the search warrant was conducted and that she not commit any new crimes. Young subsequently had her release conditions violated, was detained in federal prison and pled guilty to fraud and aggravated identity theft charges in April 2016.
Cox pled guilty to narcotics conspiracy and brandishing a weapon in furtherance of a drug trafficking crime and is scheduled to be sentenced by Judge Russell on July 14, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Drug Enforcement Administration, the Baltimore City Police Department, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Lauren Perry and Sandra Wilkinson, who prosecuted the case.
Atlanta Concert Promoter Pleads Guilty to MDMA ConspiracyRead the Press Release
BIRMINGHAM – An Atlanta man and co-owner of a promotions company that presented musical “raves” and concerts across the Southeast pleaded guilty today in federal court to a conspiracy to distribute thousands of MDMA pills, a drug commonly known as “Ecstasy” or “Molly.”
Acting U.S. Attorney Robert O. Posey, Homeland Security Investigations Assistant Special Agent in Charge Sherry Douglas, U.S. Postal Inspection Service Inspector in Charge Adrian Gonzales, Alabama Law Enforcement Agency Secretary of Law Enforcement Hal Taylor, Alabama Attorney General Steve Marshall, and Helena Police Chief Pete Folmar announced the plea.
WOODIE LOUIS OCHLE, 40, entered his plea before U.S. District Court Judge L. Scott Coogler to one count of conspiracy to distribute 3,4 Methylenedioxymethamphetamine, or MDMA, in Jefferson and Shelby counties between February 2015 and April 2016, and to one count of possessing with intent to distribute the drug on April 13, 2016, in Jefferson County. Ochle’s sentencing date has not been set.
Ochle led an organization that distributed MDMA in Alabama and Georgia, according to his plea. Through his Atlanta business, Freakstep Promotions, Ochle set up concerts or dance events and then sold MDMA to people who attended the “raves.”
Four other people have pleaded guilty to the conspiracy and await sentencing. They are KEVIN REID PEDERSEN, 28, SHAWN EDWARD PERKINS, 22, and JENNIFER LEIGH PETITJEAN, 31, all of Birmingham, and KENTON LEE HOWARD, 38, of Chelsea.
U.S. Immigration and Customs Enforcement-HSI, U.S. Postal Inspection Service, ALEA, Alabama Attorney General’s Office and Helena Police investigated the case, which Assistant U.S. Attorney Brad Felton prosecuted.
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Armed Marijuana Dealer Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that an armed marijuana dealer was sentenced to time served in federal court this morning. Court documents reflect that Johnny Devon Brannon, 24, of Mobile, was charged with theft of mail, conspiracy to distribute and distribution of marijuana, and using, carrying and possessing a firearm during and in relation to a drug trafficking felony. Court documents also reflect that Brannon, an employee at a mail handling station, assisted by his co-defendant Steven Bernard Tate, Jr., were intercepting packages, which they believed to contain marijuana illegally shipped via the mail. Security equipment at the facility captured images of Tate and Brannon opening packages, hiding packages of marijuana in their clothing, and leaving with it. When confronted by authorities, both admitted their illegal activities. The third co-defendant, Harold James Griffin, Jr., was also implicated as receiving the marijuana and assisting in its distribution. Brannon used his vehicle to transport the marijuana from the facility to other locations, and a search of the vehicle resulted in the discovery of drugs, drug paraphernalia and a handgun. Brannon admitted he had the gun for protection because he had been robbed several times selling marijuana. Brannon pled guilty to the charges in November of 2016.
United States District Court Judge William H. Steele imposed a sentence in Brannon’s case of time served. He ordered that Brannon serve a three-year term of supervised release. He also ordered that Brannon pay the mandatory $300 in special assessments but did not impose a fine.
The case was investigated by the Mobile County Sheriff’s Office and the United States Postal Inspectors. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Alabama at http://www.justice.gov/usao/als/Albuquerque Man Pleads Guilty to Federal Armed Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Isaiah Gallegos, 22, of Albuquerque, N.M., pled guilty this morning in federal court to an armed bank robbery charge. Gallegos is the final of four defendants to enter a guilty plea in the case.
Isaiah Gallegos was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Christian Herrera, 20, Christopher Gallegos, 33, and Martin Huertta, 44, all of Albuquerque, with bank robbery. According to the complaint, a source identified the defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. Three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Huertta, Miera, Herrera, Isaiah Gallegos and Christopher Gallegos were indicted on April 27, 2016, and charged with bank robbery.
During today’s proceedings, Isaiah Gallegos pled guilty to the indictment and admitted that on March 30, 2016, he participated in the robbery of the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque by acting as lookout while his co-defendants robbed the bank.
Isaiah Gallegos’ four co-defendants have entered guilty pleas and one has been sentenced. Huertta pled guilty on Sept. 9, 2016 and was sentenced on March 14, 2017 to 108 months in prison followed by five years of supervised release. Miera entered a guilty plea on Oct. 11, 2016, Christopher Gallegos entered a guilty plea on Feb. 13, 2017, and Herrera entered a guilty plea on Feb. 24, 2017. At sentencing, Isaiah Gallegos, Herrera, Christopher Gallegos and Miera each face a statutory maximum penalty of 25 years in federal prison. They remain in custody pending sentencing hearings.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
After Twenty-Six Years Drug Trafficking Fugitive Appears for Initial Hearing in MiamiRead the Press Release
A fugitive, who had been wanted on federal drug trafficking charges for 26 years, had his initial appearance in U.S. Magistrate Court today in Miami, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Gustavo Falcon, a/k/a “Taby,” 56, of Miami, had his initial appearance today in the Southern District of Florida before United States Magistrate Judge Jonathan Goodman, following his arrest on a federal warrant for a 1991 drug trafficking indictment. The parties stipulated to the defendant’s detention pending trial, with the right to revisit the ruling. The defendant’s next hearing is scheduled for May 11, 2007 in U.S. Magistrate Court.
“The passage of time does not lessen the government’s commitment to justice,” stated Acting U.S. Attorney Benjamin Greenberg. “Those who are charged federally cannot evade the law. Today, after 26 years in hiding, Gustavo Falcon was brought forward to be held accountable in U.S. District Court for his criminal acts. The U.S. Attorney’s Office is grateful for the dedicated search efforts of the U.S. Marshals Service that led to the defendant’s apprehension.”
Adolphus P. Wright, DEA Special Agent in Charge of the Miami Field Division, said, “Even after 26 years of evading capture and prosecution, the DEA, along with our law enforcement partners, remain committed to following thru until justice is fully served on Falcon and others who violate the drug laws of the United States.”
On April 10, 1991, a federal grand jury sitting in Ft. Lauderdale, Florida returned a multi-count indictment charging Gustavo Falcon, together with lead defendants Augusto Falcon, also known as “Willie Falcon”, and Salvador Magluta, with participation in a conspiracy to possess with the intent to distribute cocaine valued at over $2.3 billion. An arrest warrant was issued for defendant Gustavo Falcon’s arrest at the time of the return of the indictment in 1991. Falcon had remained a fugitive until April 12, 2017, when members of the U.S. Marshals Service arrested him in Kissimmee, Florida. Gustavo Falcon is the last of the ten defendants named in the indictment to be arrested and prosecuted in federal court in Miami. The indictment charges Gustavo Falcon with conspiracy to possess cocaine with the intent to distribute.
Mr. Greenberg commended the investigative assistance of the DEA. Greenberg thanked the U.S. Marhals Service and the Miami-Dade Police Department for their assistance with the apprehension of Gustavo Falcon. The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Michael Patrick Sullivan.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
"Operation Real Time": Simpsonville 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 Rico Mandreil Sweeney, age 39, of Simpsonville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(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 this morning established that on January 12, 2017, Simpsonville police officers responded to an address on West Georgia Road in Simpsonville, to conduct a child welfare check. While investigating, the officers spoke with Sweeney and discovered that he had outstanding warrants from Greenville County. Sweeney was searched incident to his arrest on the outstanding warrants and a loaded .380 caliber pistol located in a holster on his hip was discovered.Sweeney faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Simpsonville Police Department, Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Jeanne Howard handled the case.
Sweeney 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 Simpsonville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Real Time’s core partners include the Greenville County Sheriff’s Office, the Greenville Police Department, 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 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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"Operation Real Time": Marietta 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 Michael Wayne Capps, age 45, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(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 this morning established that on January 10, 2017, agents with the South Carolina Department of Probation, Parole, and Pardon Services and the Greenville County Sheriff Office (GCSO) arrived at Capps’ residence in Marietta, South Carolina, to conduct a probation visit. Capps is currently on probation for possession with intent to distribute a controlled substance. Upon entering the residence, agents observed several people as well as what appeared to be a rifle and drug paraphernalia in plain view prompting GCSO to obtain a search warrant for the residence.A search of Capps’ bedroom revealed a loaded Sauer and Sohn .32 caliber pistol under the mattress. Agents also located over 70 rounds of additional .32 caliber ammunition in the bedroom. ATF agents responded and interviewed Capps. Capps admitted to selling narcotics out of the residence and acknowledged ownership of the Sauer and Sohn .32 caliber pistol.
Capps faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Capps 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 South Carolina Department of Probation, Parole, and Pardon Services, the GCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, 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 and Firearms 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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"Operation Real Time": Greenville 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 Travius Isaiah Mayer, age 26, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(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 this morning established that on June 20, 2016, members of the Greenville County Sheriff’s Office (GCSO) responded to the area of N. Watson Road and Wade Hampton Boulevard to a call about a man with a gun. Upon arrival, GCSO learned from witnesses that Mayer was involved in a single car accident, exited his vehicle with a gun, and fired the gun as a witness attempted to follow him. GCSO seized a Glock .40 caliber pistol and a spent .40 caliber shell casing from the scene.Mayer later told GCSO during an interview that he was the person driving the vehicle during the collision on N. Watson Rd. and further admitted he possessed the Glock pistol during the incident. Mayer stated he had just previously purchased the Glock pistol.
Mayer faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Mayer 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 Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, 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 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, and Firearms 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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"Operation Real Time": Greenville 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 Joshua Shane Verdin, age 32, of Greenville, pled guilty today in federal court in Greenville, to felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Section 922(g)(1) as well as possession of a firearm and ammunition after a previous conviction for a misdemeanor crime of domestic violence, a violation of Title 18, United States Code, Section 922g(9). 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 this morning established that on January 13, 2017, members of the Greenville County Sheriff’s Office (GCSO) and the Spartanburg County Sheriff’s Office (SCSO) were attempting to locate two wanted persons at a residence in Landrum, South Carolina, when they encountered Verdin. Deputies observed Verdin placing his hands near his waistband prompting them to ask if Verdin had a gun. Verdin told the deputies that he had a pistol in his waistband. One of the responding deputies, who knew Verdin to be a prohibited felon from prior interaction with Verdin, removed the loaded 9mm pistol and placed Verdin in handcuffs.Verdin faces up to ten years in federal prison for the offense and remains in federal custody.
The case was investigated by the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). First Assistant United States Attorney Lance Crick handled the case.
Verdin 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 GCSO, the SCSO, and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, 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, 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 and Firearms 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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24 April 2017
Workers Comp Manager Sentenced in the Dr. Ruan & Dr. Couch Pill Mill CaseRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces that Christopher Manfuso has been sentenced to six months of house arrest and ordered to immediately pay a $50,000.00 fine, for his role in the operation of the massive pill mill run by Dr. Xiulu Ruan and Dr. John Patrick Couch.
In October 2015, Christopher Manfuso of Fulton, Maryland pled guilty to a criminal Information and admitted to paying over $2.6 million in illegal kickbacks to Dr. Xiulu Ruan. The kickbacks were associated with a workers compensation dispensary within Physicians Pain Specialists of Alabama —the clinic owned by Dr. Ruan and Dr. Couch — which was managed by a company that employed Manfuso, and later by a company he owned.At trial, Manfuso testified that he worked for Industrial Pharmaceuticals Management (“IPM”) in 2011 when IPM contracted with Dr. Ruan and Dr. Couch to manage a workers compensation dispensary within PPSA. The contract was structured whereby IPM purchased the drugs for the dispensary upfront, deducted the cost from the amount collected in reimbursement, and then paid the doctors. Manfuso testified that with most other doctors across the country, IPM paid a percentage of the reimbursement collected minus cost. However, Dr. Ruan negotiated for guaranteed monthly minimum payments for himself and Dr. Couch. Thus, Dr. Ruan and Dr. Couch made at least the minimum guarantee each month, even if the collected reimbursement minus the cost would not warrant that amount.
Manfuso testified that the monthly guarantees began at $45,000.00 and $15,000.00 a month for Dr. Ruan and Dr. Couch, respectively. However, over the five-year period these illegal kickbacks were paid, Dr. Ruan’s guaranteed monthly minimum payment increased all the way to $80,000.00 per month. Evidence at trial also showed these guaranteed monthly payments to the doctors did not go into the general PPSA business accounts. Rather, the checks were mailed to the doctors’ homes and were deposited in their personal bank accounts.
When asked to describe the difference between a pharmacy and a workers compensation dispensary, Manfuso testified that a dispensary can provide the drugs to the patient right there in the doctor’s office. Furthermore, the reimbursement from workers compensation companies was typically significantly higher — sometimes 100% higher — than the reimbursement rate paid by health insurance companies for the exact same drugs filled at a pharmacy. So while Dr. Ruan and Dr. Couch owned their own pharmacy as well, there was a much greater financial incentive to direct all of their workers compensation patients to the dispensary instead.
In light of Manfuso’s substantial cooperation and testimony at trial, the United States requested a sentence 50% below the low end of his advisory sentencing guidelines range. Based on the range determined by the Court, the sentencing recommendation was 15 months. However, in light of Manfuso’s cooperation and other factors, Judge Granade declined to give Manfuso an in-custody sentence. Rather, he was sentenced to three years of probation, the first six months of which are home confinement, along with a $50,000.00 fine due immediately.
Following the sentencing hearing, Acting U.S. Attorney Steve Butler stated, “As the seven-week trial of Dr. Ruan and Dr. Couch clearly showed, greed was the motivating factor behind the doctors’ criminal actions. Mr. Manfuso helped feed that greed by paying illegal kickbacks to the doctors in order to secure their dispensing business. Such conduct is criminal and will continue to be prosecuted in this district.”
Robert Laskey, Special Agent in Charge of the Federal Bureau of Investigation, Mobile Division, stated, “The FBI will continue to use every resource available to ensure that this behavior will not be tolerated. We will continue to work with our federal, state, and local partners to investigate these crimes of greed.”
Bret Hamilton, DEA Assistant Special Agent in Charge for the State of Alabama, stated, “Mr. Manfuso was more concerned with lining pockets at any means than insuring injured patients received proper medication. His conviction shows that no one in the medical community is immune from prosecutions and they will be held accountable for their misdeeds.”
This matter was jointly investigated by FBI-Mobile and DEA-Mobile, and was prosecuted by Assistant U.S. Attorneys Christopher Bodnar and Deborah Griffin.
United States Settles Health Care Fraud Action Involving Allegations that Hospital Billed for Medically Unnecessary Lab TestsRead the Press Release
Crittenton Hospital Medical Center and the Crittenton Cancer Center, together with their current owners Ascension Michigan and Ascension Health, have agreed to pay $791,047 to resolve allegations that they violated the False Claims Act by billing for medically unnecessary laboratory testing for patients who had been referred to Crittenton by Dr. Farid Fata and physicians in his office. In an earlier unrelated criminal matter, Fata pleaded guilty to health care fraud, conspiracy to pay and receive kickbacks, and promotional money laundering, and was sentenced to a term of 45 years in prison.
False Claims Act allegations against Fata and Crittenton were brought to the government by a whistleblower, known as a relator, under the qui tam provisions of the False Claims Act. From September 2011 until August 7, 2013, Fata’s medical practice, Michigan Hematology-Oncology P.C., employed relator as an office administrator. Among other allegations, relator questioned the medical necessity of services that Crittenton and other hospital subsidiaries of Ascension Health had provided to patients treated by Fata.
Crittenton and Ascension voluntarily disclosed to the government the lack of medical necessity regarding the laboratory testing. Relator will receive $158,209.40 out of the $791,047 settlement for his role in filing the qui tam action.
This case was investigated jointly by the U.S. Attorney’s Office for the Eastern District of Michigan and the Department of Health and Human Services, Office of Inspector General.
U.S./Israeli Man Charged in Connection with Threats to Jewish Community Centers, Conveying False Information, and CyberstalkingRead the Press Release
WASHINGTON – Michael Ron David Kadar, 18, who holds dual United States and Israeli citizenship and who was recently arrested in Israel, was charged today with making threatening calls to Jewish Community Centers in Florida, conveying false information to police dispatch regarding harm to private residents in Georgia, and cyberstalking, the Justice Department announced today. The investigation into violent threats to Jewish Community Centers, schools and other institutions across this nation continues, including an ongoing investigation into potential hate crime charges.
According to a federal criminal complaint filed in Orlando, Florida, it is alleged that beginning on or about Jan. 4, 2017, and continuing until March 7, 2017, Kadar made multiple threatening calls involving bomb threats and active shooter threats to numerous Jewish Community Centers throughout Florida. Although no actual explosives were found, many of the calls resulted in the temporary closure and evacuation or lockdown of the targeted facilities, and required law enforcement and emergency personnel to respond and clear the area.
Further, according to a federal criminal complaint filed in Macon, Georgia, it is alleged that on or about Jan. 3, 2017, Kadar made a phone call to a police department conveying false information about an alleged violent emergency situation concerning multiple individuals at a private residence in Athens, Georgia. Police and emergency personnel responded to the scene, only to learn that there was no emergency.
“Today’s charges into these violent threats to Jewish Community Centers and others represent this Department’s commitment to fighting all forms of violent crime,” said Attorney General Sessions. “These threats of violence instilled terror in Jewish and other communities across this country and our investigation into these acts as possible hate crimes continues.”
“This kind of behavior is not a prank, and it isn't harmless. It’s a federal crime,” said Director Comey. “It scares innocent people, disrupts entire communities, and expends limited law enforcement resources. The FBI thanks our partners for working with us here at home and around the world.”
“Violent threats intended to instill fear in our religious communities, schools, and homes are an attack on the very fabric of our society and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The department will continue to vigorously investigate and prosecute those who engage in such violent acts.”
“Kadar allegedly took extraordinary steps to conceal his identity and location through several technological means, including voice alteration, use of proxy IP addresses, virtual currencies and caller ID spoofing,” said Acting Assistant Attorney General Blanco. “Thanks to the specialized training and expertise of our investigative team, we were successful in identifying, locating and apprehending the person accused of this despicable campaign of threats.”
“The charges brought today demonstrate our resolve to pursue and prosecute those who seek to sow terror and fear in our community, wherever they may hide,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “They also reflect the tireless efforts, dedication and cooperation of agents, analysts and prosecutors within the Justice Department, as well as our state, local and international law enforcement partners.”
“People, especially children, deserve to feel safe in their communities,” said U.S. Attorney G. F. Peterman III for the Middle District of Georgia. “The violent threats made against schools, families, and Jewish Community Centers sought to rob our citizens of that right. I'm proud that the Department of Justice and the FBI have fought tirelessly to restore that sense of safety.”
This matter is being investigated by the FBI, the U.S. Attorney’s Office for the Middle District of Florida, U.S. Attorney’s Office for the Middle District of Georgia, the Computer Crime and Intellectual Property Section of the Department of Justice, and the Civil Rights Division’s Criminal Section. Federal authorities also acknowledge and appreciate the assistance and the investigative efforts of the Israeli National Police. The Criminal Division’s Office of International Affairs is providing assistance with this case.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office Observes National Reentry WeekRead the Press Release
In 2016, the U.S. Department of Justice established National Reentry Week to bring awareness to the challenges faced by formerly incarcerated persons when they reenter society. In observance of this year’s week, April 23-29, Acting United States Attorney Steve Butler for the Southern District of Alabama announces some of the current projects in which the U.S. Attorney’s Office is participating.
On April 27, the office will partner with Spring Hill College to host a “Reentry Simulation.” The simulation, open to the public, will be held from 11:00 a.m. to 1:00 p.m. in the college’s Mary Lou and John Barter Student Center. It will provide a glimpse into the first four weeks of life after prison, and will foster discussions about how the public and private sectors may work together to assist persons with the tools they need to successfully reenter their communities.
The office also continues its work with Project H.O.P.E. (Helping Offenders Pursue Excellence). In 2015, at the request of the Alabama Board of Pardon and Paroles, the Project HOPE Reentry Task Force was created to develop a plan to secure funding to support services aimed at reducing the recidivism rate in Alabama. Components such as employment, housing, and transportation continue to be studied in an effort to determine what types of reentry services are lacking. The plan’s objective is to reduce the Alabama recidivism rate by 50% as of 2021.
Acting U.S. Attorney Butler recognizes the positive role that reentry programs play, saying, “By providing people exiting the correctional system with access to necessities such as housing and employment, the hope is that they will become invested in their communities and will be less likely to return to a life of crime.”
To learn more about Project H.O.P.E. and stay up-to-date with reentry events in the Southern District of Alabama, please visit https://www.justice.gov/usao-sdal/programs/ex-offender-re-entry-initiative.
Two Men Plead Guilty to Possessing Child PornographyRead the Press Release
DAYTON – As the result of a national FBI investigation, James Gaver, 71, of Kettering, Ohio, and Robert Phelps, 49, of Jackson Center, Ohio each pleaded guilty in U.S. District Court in separate cases to possession of child pornography involving prepubescent minors.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division, announced the pleas entered into before U.S. District Judge Walter H. Rice.
According to the Statement of Facts read at Gaver’s plea hearing on April 21, 2017, investigators discovered more than 600 images of child pornography while executing a search warrant on July 27, 2015 at Gaver’s residence. Investigators also found videos of child rape on Gaver’s computer.
Gaver was convicted in Montgomery County Common Pleas Court in 1994 of “Gross Sexual Imposition” and in 2002 of “Pandering obscenity involving a minor.”
The parties involved in his case have recommended a sentence range of 120 months to 144 months in prison. Judge Rice will consider that recommendation at his sentencing hearing scheduled August 1.
At Phelps’ plea hearing on April 13, 2017, the Statement of Facts set forth that federal agents executed a search warrant at Phelps’s home in Jackson Center and discovered more than 600 images and 100 videos of child pornography. He faces a potential maximum of 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Andrew J. Hunt, who is representing the United States in both cases, and First Assistant United States Attorney Vipal J. Patel who is representing the United States in U.S. v. Gaver.
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