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Friday 10 March 2017
Lancaster County Woman Guilty of Healthcare FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tammie Sensenig, age 45, of Lancaster, Pennsylvania, pleaded guilty March 8, 2017, before United States Magistrate Judge Martin C. Carlson to a criminal information charging her with healthcare fraud.
According to United States Attorney Bruce D. Brandler, Sensenig had previously been excluded from providing healthcare to Medicaid beneficiaries due to prior convictions related to Medicaid fraud. In order to obtain a position as a behavioral health consultant, Sensenig made false representations in order to hide her ineligible status. As a result, Medicaid paid approximately $84,500 for her services.
The case was investigated by the Pennsylvania Office of Attorney General Medical Fraud Control Section and the United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jury Finds Gunsmoke Gun Shop Owner Richard Wyatt Guilty of Most ChargesRead the Press Release
Acting United States Attorney Bob Troyer, IRS Criminal Investigation (IRS-CI) Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division Special Agent in Charge Debora Livingston announced that today a jury found Richard Wyatt, age 53, of Evergreen, Colorado guilty of conspiracy to deal in firearms without a license and tax charges (counts 1, 5, and 6 through 13). The jury hung on counts 2 through 4. The guilty verdicts were the result of a 6-day trial before U.S. District Court Chief Judge Marcia S. Krieger. The jury deliberated for approximately 5 days before reaching their verdict. Wyatt, who was indicted by a federal grand jury in Denver on February 9, 2016, first appeared at the trial free on bond. Wyatt was taken immediately into custody after the jury’s guilty verdict. He is scheduled to be sentenced by Chief Judge Krieger on July 19, 2017.
According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, that displayed firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.
On Feb. 17, 2012, Wyatt conspired with others to deal in firearms without a license. In April 2012, the defendant surrendered his Federal Firearms License (FFL) due to his violations of federal laws and regulations. After Gunsmoke surrendered its FFL, Gunsmoke changed the address of a store known as Triggers Firearms LLC’s (Triggers) federal firearms license, to the Gunsmoke address, although they did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.
After losing his FFL, the defendant did not apply for or obtain a license to sell firearms from the Gunsmoke premises. Wyatt held a meeting the day before losing his license with his employees to describe how he wanted the business to continue to run. Between April 1, 2013 and March 31, 2015, no other person was licensed to engage in the business of dealing in firearms at Gunsmoke. Wyatt directed Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for any firearms, Gunsmoke employees directed the customers to another firearm store which had a valid federal firearms license, where the customer filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the FFL license, continued to order new guns for sale to keep the business going.
In addition to the alleged firearms violations, Wyatt failed to pay personal income tax in years 2009, when he made approximately $290,000, in 2010, when he made approximately $123,000, and in 2012, when he made approximately $689,000. Further, in 2010, 2011 and 2012, Wyatt failed to pay corporate taxes. In 2012, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.
“The defendant decided the rules about guns and paying taxes didn’t apply to him,” said Acting U.S. Attorney Bob Troyer. “He now faces well deserved time for that decision.”
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Steven Osborne, Special Agent in Charge, IRS – Criminal Investigation Denver Field Office. “This conviction sends a message that IRS-CI is working to make sure all taxpayers file and pay their fair share of taxes.”
“The laws and regulations surrounding the sale of firearms exist for a reason, and no one is above the law,” said ATF Denver Field Division Special Agent in Charge Debora Livingston. “ATF is committed to ensuring every gun dealer is appropriately licensed, educated and inspected, and we will investigate those who believe the rules do not apply to them.”
This case was investigated by the ATF and IRS-CI. The defendant faces up to 5 years in prison per count for each of the two counts of conspiracy. He faces not more than 1 year per count for each tax count.
The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly and Anna Edgar, with Assistant United States Attorney Tonya Andrews assisting on the asset forfeiture.
Jury Delivers Verdicts in Second Oregon Standoff TrialRead the Press Release
PORTLAND, Ore. – A federal jury today delivered its verdicts against four defendants charged with conspiracy, possession of firearms on federal property, and depredation of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.
Jurors found Jason Patrick guilty of conspiracy to impede officers of the United States and not guilty of possession of firearms and dangerous weapons in a federal facility. Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility. Duane Ehmer was found not guilty of conspiracy to impede officers of the United States and guilty of depredation of government property. Finally, Jake Ryan was found not guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility and guilty of depredation of government property.
Co-defendants Ammon Bundy, Ryan Bundy, Shawna Cox, David Fry, Jeff Banta, Kenneth Medenbach, and Neil Wampler were previously found not guilty on all counts by a jury on October 27, 2016. Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, Travis Cox, Dylan Anderson, Sandra Anderson, and Sean Anderson previously pleaded guilty. Charges against co-defendant Peter Santilli were previously dismissed.
“We are gratified that justice has been served and thank the jury for their service,” said Billy J. Williams, United States Attorney for the District of Oregon. “For forty-one days early last year, these defendants prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to the American people. They interfered with the daily lives of residents of Burns, Hines, Harney County and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day. However, their efforts to sow discord here in Oregon among residents, business owners, community leaders, and law enforcement personnel have failed,” continued U.S. Attorney Williams. “Our communities and state are stronger because of our joint effort to bring these individuals to justice and we as Oregonians can now begin to move past these unfortunate events.”
“Over a period of weeks leading up to and during the Malheur National Wildlife Refuge occupation, these defendants made choices. Now, a jury of their peers has spoken, and the consequences of those choices are quite clear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “The U.S. Constitution gives all of us freedoms, but it also comes with the responsibility to respect the laws of this nation. We don’t live in a perfect world, but we do live in a great country. I encourage those who want to make it even better to act in peaceful and lawful ways to inspire lasting, positive change.”
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
Sentencing for each of the four defendants is scheduled for May 10, 2017. The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.
Jury Convicts Springfield Property Manager of FraudRead the Press Release
EUGENE, Ore. – On Thursday, March 9, 2017, a federal jury found a Springfield, Ore. property manager guilty of wire fraud and theft. Parthava Behesht Nejad, 82, was convicted of stealing approximately $150,000 in welfare benefits by concealing his use and control of rental properties worth more than $600,000. Nejad will be sentenced on June 13, 2017 before U.S. District Court Judge Ann Aiken.
Federal agents began investigating Nejad in 2013 after social workers reported that he was the landlord for numerous people receiving disability benefits. Further investigation determined that Nejad was the president of the Parthava Behesht Nejad International Foundation, which owned eight rental properties in north Springfield, and had been receiving Supplemental Security Income (SSI), food stamps, and Medicaid benefits since 2003.
For more than a decade, Nejad claimed he had no income, owned no assets, and had only one bank account containing a few hundred dollars. In reality, Nejad’s properties had been generating substantial rental income for years. Federal agents also discovered a bank account Nejad had concealed from welfare agencies that at times contained more than $30,000.
According to court records and trial testimony, Nejad acquired the properties and transferred them to his foundation prior to applying for welfare benefits in 2003. Nejad told the Internal Revenue Service (IRS) and others that his foundation, incorporated in Oregon in 1986, was a church and provided temporary housing for victims of religious persecution. In fact, Nejad had operated the properties as a rental business since the 1980s.
This case was investigated by the Social Security Administration (SSA) Office of Inspector General in partnership with the U.S. Department of Health and Human Services (HHS) Office of Investigation and the Oregon Department of Human Services. It was prosecuted by Helen Cooper and Amy Potter, Assistant United States Attorneys for the District of Oregon.
Gulf Breeze Man Indicted for Federal Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Thomas E. Matassa, 23, of Gulf Breeze, made a first appearance today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with receipt and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between January 2014 and February 2016, Matassa received child pornography. The indictment further alleges that, in February 2016, he possessed child pornography involving a minor under age 12. The defendant is currently being detained at the Santa Rosa County Jail. The detention hearing and arraignment have been scheduled for March 16, 2017, at 12:30 p.m.
The case is being investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Georgia Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Gorham Man Sentenced to 12 Months and 1 Day for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Tutt, 46, of Gorham, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 12 months and 1 day in prison to be followed by 5 years of supervised release for possession of child pornography. He was also ordered to pay a $3,000 fine. The defendant pled guilty on November 29, 2016.
According to court records, law enforcement, using a peer-to-peer file sharing program, downloaded a child pornography video from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence. A forensic examination of the defendant’s computer was conducted and revealed several additional videos of child pornography. During an interview with law enforcement, the defendant admitted that he had actively searched for and obtained images and videos of child pornography using peer-to-peer software.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Former NGA Employee Sentenced for Taking Classified InformationRead the Press Release
ALEXANDRIA, Va. – Mohan L. Nirala, 52, of Laurel, Maryland, was sentenced today to 12 months and one day in prison for willful retention of national defense information.
Nirala pleaded guilty on Sept. 16, 2016. According to the statement of facts filed with the plea agreement, Nirala was a full-time government employee and imagery scientist at the U.S. National Geospatial-Intelligence Agency (NGA) from February 2009 to 2015. On Jan. 10, 2014, eight days after his clearances were suspended, FBI agents recovered over 20 classified documents at Nirala’s home during the execution of a federal search warrant. A review of these documents determined that they ranged in classification from Secret to Top Secret. During the search, Nirala falsely stated that he did not bring home any classified documents.
According to the statement of facts, on March 8, 2016, agents arrived at Nirala’s home to execute an arrest warrant. After Nirala failed to answer the door, agents made forced entry and found Nirala in the basement before taking him into custody. During a sweep of the basement, agents discovered a white duct-taped box underneath the basement stairs. Inside the box were over 500 pages of documents classified at Top Secret and Secret levels.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General for National Security Mary B. McCord; and Gordon B. Johnson, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Ronald L. Walutes of the Eastern District of Virginia and Special Assistant U.S. Attorney Brandon L. Van Grack of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-124.
Former NGA Employee Sentenced for Taking Classified InformationRead the Press Release
Mohan L. Nirala, 52, of Laurel, Maryland, was sentenced today to 12 months and one day in prison for willful retention of national defense information.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
Nirala pleaded guilty on Sept. 16, 2016. According to the statement of facts filed with the plea agreement, Nirala was a full-time government employee and imagery scientist at the U.S. National Geospatial-Intelligence Agency (NGA) from February 2009 to 2015. On Jan 10, 2014, eight days after his clearances were suspended, FBI agents recovered over 20 classified documents at Nirala’s home during the execution of a federal search warrant. A review of these documents determined that they ranged in classification from Secret to Top Secret. During the search, Nirala falsely stated that he did not bring home any classified documents.
According to the statement of facts, on March 8, 2016, agents arrived at Nirala’s home to execute an arrest warrant. After Nirala failed to answer the door, agents made a forced entry and found Nirala in the basement before taking him into custody. During a sweep of the basement, agents discovered a white duct-taped box underneath the basement stairs. Inside the box were over 500 pages of documents classified at Top Secret and Secret levels.
Assistant U.S. Attorney Ronald L. Walutes of the Eastern District of Virginia and Special Assistant U.S. Attorney Brandon L. Van Grack of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former Aberdeen Doctor Sentenced in Tax CaseRead the Press Release
Heloise Westbrook, MD, of Owensboro, Kentucky, formerly of Aberdeen, South Dakota, was sentenced on March 6, 2017, on three misdemeanor charges of Fraudulent Returns, Statements, or Other Documents in U.S. District Court.
She was sentenced to five years of probation on each count to run concurrently, restitution to the Internal Revenue Service (IRS) in the amount of $184,871.21, an $8800.00 fine, and a $75 special assessment. In addition, Westbrook will be required to serve 100 days in the Daviess County Detention Center in Kentucky (2 days and 2 nights each consecutive weekend for a period of 50 weeks).
Westbrook was originally charged with one count of Impeding the Administration of the Internal Revenue Laws.
Westbrook is a medical doctor who operated a medical practice in Aberdeen, including between 2004 and 2010. Her medical practice was organized as a wholly-owned professional corporation, and she filed corporate income tax returns, in addition to personal income tax returns.
In a a civil audit, the IRS agent assigned identified numerous entries that Westbrook had identified as business expenses for purposes of her corporate tax returns and deducted them as business expenses. Her claimed business expenses were not, in fact, business related, but rather personal expenses incurred to pay for her own wedding celebration.
She pled guilty to three misdemeanor charges of Fraudulent Returns, Statements, or Other Documents on December 2, 2016.
Assistant U.S. Attorney Kevin Koliner prosecuted the case. The investigation was conducted by the Internal Revenue Service, Criminal Investigations Division.
Federal Jury Finds Fort Worth Man Guilty of Bank RobberiesRead the Press Release
FORT WORTH — Following a five-day trial before Senior U.S. District Judge Terry R. Means, a federal jury convicted Waymon Scott McLaughlin, 57, of Fort Worth, Texas, on four counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.
Each of the bank robbery counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. McLaughlin will remain in custody pending sentencing scheduled for August 8, 2017.
The government presented evidence at trial that McLaughlin robbed the below listed locations:
May 6, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas
May 20, 2016 Woodforest Bank, 2225 W. 120, Grand Prairie, Texas
May 27, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas
May 27, 2016 First Convenience Bank, 6756 W. Vickery Blvd., Fort Worth, Texas
The Federal Bureau of Investigation, the Grand Prairie Police Department, and the Fort Worth Police Department investigated the case.
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Federal Jury Convicts Methamphetamine TraffickerRead the Press Release
STATESVILLE, N.C. B A federal jury sitting in Statesville convicted Carlos Antonio Flores, age 34, of Statesville, of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute, following a three-day trial that ended yesterday, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
According to filed court documents and evidence presented at trial, Flores was involved in a drug trafficking conspiracy that operated mainly in Iredell, Alexander, Caldwell, Catawba, and Ashe Counties. Trial evidence established that from at least as early as April 2015 through October 30, 2015, Flores and his co-conspirators distributed more than 15 kilograms of methamphetamine, which has a street value of more than $1,500,000. According to trial evidence, law enforcement arrested Flores on October 30, 2015, when he and several co-conspirators were caught distributing more than a kilogram of 96% pure crystal “ice” methamphetamine concealed in a cat litter box.
This prosecution is part of an ongoing investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 200 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Flores has been in federal custody October 2015. At sentencing, Flores faces a statutory mandatory minimum sentence of 10 years in prison and a maximum term of life in prison, and a fine of up to $10,000,000.
The case was investigated by HSI in Charlotte, the Iredell County Sheriff’s Office, the North Carolina State Bureau of Investigation, the Alexander County Sheriff’s Office, and the Caldwell County Sheriff’s Office.
The prosecution of case is being handled by Assistant U.S. Attorneys Steven R. Kaufman and Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
El Paso, Texas, Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Fernando Gomez-Campos, 21, of El Paso, Texas, pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge.
Gomez-Campos and his co-defendants Gonzalo Montenegro-Coronel, 31, a Mexican national, and Esther Ordonez, 48, Miguel Ordonez, 23, and Reydecel Lopez-Ordonez, 22, all of Albuquerque, were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015. The indictment also charged the defendants with distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. It also charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Gomez-Campos pled guilty to Count 1 of the indictment charging him with participating in a heroin trafficking conspiracy. In his plea agreement, Gomez-Campos admitted that on Oct. 13, 2015, law enforcement officers found approximately 2.67 kilograms (5.89 pounds) of heroin in the trunk of the vehicle in which Gomez-Campos was a passenger. Gomez-Campos admitted that he was planning on delivering the heroin from El Paso to Albuquerque. Gomez-Campos also admitted that on April 28, 2015, he was paid to drive a similar quantity of heroin from Juarez, Mexico, to El Paso and then onto Albuquerque.
At sentencing, Gomez-Campos faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. A sentencing hearing has yet to be scheduled.
Lopez-Ordonez pled guilty on Oct. 19, 2016, to one count of distributing heroin and two counts of using a communication device to further the commission of a drug trafficking crime, and admitted using a telephone on March 19, 2015 and June 10, 2015, to arrange heroin sales. Lopez-Ordonez also admitted selling 568 grams of heroin to an undercover agent in exchange for $26,000 on July 9 and 10, 2015. Lopez-Ordonez faces a statutory minimum penalty of five years and a maximum of 40 years in prison when he is sentenced on March 30, 2017. Under the terms of his plea agreement, Lopez-Ordonez will forfeit more than $10,000 in drug proceeds to the United States; he also will forfeit his ownership interest in a residence in southwest Albuquerque.
The three remaining co-defendants have entered not guilty pleas to the indictment and are pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
El Dorado Hills Man Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Kamyar Soltani, 47, of El Dorado Hills, pleaded guilty today to tax evasion, United States Attorney Phillip A. Talbert announced.
According to court documents, Soltani attempted to evade or defeat the assessment of his tax obligations for the tax years of 2005, 2006, and 2007. Soltani worked in the used car sales industry and was well-paid for his work. In each of the tax years in question, Soltani received income subject to taxation of between approximately $229,000 and $296,000, and failed to file timely income tax returns for the tax years of 2005 and 2006. He ultimately filed tax returns for all three tax years in March 2008, but those returns were false in that they only reported income of approximately $14,000 to $18,500 in each year. As a result of his conduct and tax filings, Soltani evaded $150,446 in federal income taxes, paid no taxes for those years, and in each year received tax refunds of over $2,000 by falsely claiming that he was entitled to an Earned Income Tax Credit. In entering his guilty plea, Soltani admitted he acted willfully to evade taxes, in part, through his filing of false tax returns and by receiving his income in the form of cash and through payments made to third parties.
This case was the product of an investigation by Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Nirav K. Desai and Christopher S. Hales are prosecuting the case.
Soltani is scheduled to be sentenced by Judge Garland E. Burrell Jr. on May 26, 2017. Soltani faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Under the terms of his plea agreement, Soltani must pay just over $150,000 towards restitution prior to sentencing.
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily Injury and Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Assaulting, Resisting, and Impeding a Federal Officer was sentenced on March 8, 2017, by U.S. District Judge Roberto A. Lange.
Miles Condon, age 25, was sentenced to 36 months of custody on each charge to be served concurrently, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Condon was indicted by a federal grand jury on October 12, 2016. He pled guilty on December 13, 2016.
The Assault Resulting in Serious Bodily Injury conviction stems from an incident on August 3, 2016, when the victim was walking by Condon’s residence in Dupree. Condon, who had been drinking alcohol, called him over to ask him for some money. A verbal argument ensued between the two men. During the course of the argument, the victim called Condon a derogatory name, and Condon retrieved a golf club that was already outside. The victim began to back away at that point, and Condon continued to swing the golf club and struck the victim above the left ear. The blow caused a 2½” long and ½” wide gash to the victim’s skull. As Condon continued to swing, the victim reached out and grabbed the club, which caused Condon to fall to the ground. The victim left and went to his mother’s house and called the police. The victim was ultimately taken to the emergency room at the Indian Health Service Hospital and then transported to Rapid City Regional Hospital with a skull fracture. When law enforcement responded, Condon resisted arrest.
The Defendant was indicted for the assault on October 12, 2016. On October 13, 2016, law enforcement officials from the Cheyenne River Sioux Tribe and the Ziebach County Sheriff’s Office went to Condon's house in Dupree to execute the federal arrest warrant stemming from that Indictment. They were let into the home, and found Condon asleep/passed out on the floor of the residence. Condon was advised he was under arrest and handcuffed. He became belligerent and combative, and told the officers he was going to “act up.” While they were walking him to the patrol car, Condon began grinding his teeth, stiffened up, and was dragging his feet to the point where the officers had to drag him in order to move him in the direction of where their patrol cars were parked. They told Condon to relax several times. When they got to the patrol car, they leaned Condon over the trunk so they could get the back door open. Condon slammed his head down on the trunk of the patrol car twice before they were able to pull him away. The officers decided to put leg irons on Condon, and when one of the officers stepped away to open the trunk of the patrol car and retrieve the leg irons, Condon attempted to jerk away from, and struggled with another one of the officers. Condon was taken to the ground and leg irons were put on him.
Condon was transported to the Cheyenne River Adult Detention Facility to be booked into the jail. There, he became combative and belligerent with Detention staff. As they were leading him from the patrol car into the booking area, Condon again tensed up and was verbally abusive. Condon refused to cooperate as the detention officer attempted to search him. They physically placed him onto the counter of the booking area so they could finish searching Condon. Once the search was complete, Condon was taken into a holding cell. After one of the detention officers removed one of the leg restraints, Condon kicked the detention officer on the right side of his face/head, near his eye, knocking off the correctional officer’s glasses. The detention officers completed swapping out the leg restraints and then exited the holding cell.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Ziebach County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Condon was immediately turned over to the custody of the U.S. Marshals Service.
ECI Correctional Officer Pleads Guilty to Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – Correctional Officer Thomas Leimbach, age 32, of Pocomoke City, Maryland, pleaded guilty on March 9, 2017, to his participation in a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Leimbach was a Correctional Officer (CO) at ECI.
Leimbach admitted that he accepted bribes from inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Leimbach worked with other COs to smuggle contraband into the prison. On June 5, 2014, law enforcement intercepted a call from an inmate to his sister, in which they discuss whether their mother “took care of that today.” That same day, Leimbach was arrested after the inmate’s mother delivered contraband to Leimbach. Leimbach was searched and had in his possession 75 Suboxone strips and $375 in cash.
Leimbach faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge James K. Bredar has scheduled sentencing for Leimbach on June 29, 2017 at 10:00 a.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Dunmore Man Guilty of Stolen Identity Refund Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diego Rojas, age 42, of Dunmore, Pennsylvania, pleaded guilty on March 7, 2017, before United States District Court Judge James M. Munley to making false claims against the government.
According to United States Attorney Bruce D. Brandler, Rojas admitted to depositing more than 350 United States tax refund treasury checks, at least 250 which were identified as fraudulent, into the check cashing company he owned and operated, Dunmore Check Cashing. Additionally, Rojas admitted that the value of the checks was more than $1.6 million. In the plea agreement, Rojas agreed to make full restitution in the amount of $1,669,864 to the Internal Revenue Service.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charge that the defendant has pled guilty to in the present case is the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. Assistant United States Attorney Evan Gotlob is prosecuting the case.
A sentencing date has not yet been scheduled.
The maximum penalty under federal law for this charge is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine plus any restitution that the court orders. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Convicted Felon Sentenced to 140 Months in Prison for Robbing Fast Food RestaurantRead the Press Release
This case is one of many brought as a result of the United States Attorney’s Office
Metro-East Armed Robbery Initiative
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Courtney P. Scott, 47, was sentenced yesterday in the United States District Court for the Southern District of Illinois to 140 months in federal prison, 5 years of supervised release, and was ordered to pay a $300 special assessment for charges stemming from an armed robbery which occurred at Jack in the Box in Swansea on March 27, 2016.
Plea and sentencing evidence showed that around 7 a.m. on March 27, 2016, Scott entered Jack in the Box in Swansea with a loaded .38 caliber revolver and demanded money from the restaurant manager. As Scott waited for the timer on the safe to expire, an employee was able to covertly call 911 for assistance. Police arrived and surrounded the restaurant as employees fled out the back door. Scott eventually surrendered to police and was taken in to custody. Scott was previously convicted of armed robbery in 2008.
The investigation was conducted by the Swansea Police Department with assistance from the Federal Bureau of Investigations and the O’Fallon Police Department. The case was prosecuted by Assistant United States Attorney Laura V. Reppert.
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Colorado Man Charged with Several Counts of Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that an Aurora, Colorado, man has been indicted by a federal grand jury for Sexual Contact by Force, Sexual Contact with a Minor, and Sexual Contact.
Isaac Padilla, age 23, was indicted on March 7, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 25, 2017, Padilla knowingly engaged in and attempted to engage in sexual contact with two women, one of them a juvenile who had not attained the age of 16 and was 4 years younger than Padilla.
The charges are merely accusations and Padilla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Padilla was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 2, 2017.
Clay County Man Sentenced to 30 Years’ for Producing and Transporting Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Leonard Leland Walters, Jr. (45, Green Cove Springs) to 30 years in prison for production of child pornography and one count of transportation of child pornography. Following imprisonment, Walters was ordered to a lifetime term of supervised release.
According to court documents, in March 2015, Walters began communicating with an undercover law enforcement officer online, during which he bragged about having sexual intercourse with a 15-year-old on a regular basis. Walters offered to assist the undercover officer with sexually abusing the undercover’s fictitious 14-year-old “niece.” On or about March 24, 2015, Walters transmitted a photograph depicting an image of a child engaged in sexually explicit conduct. On April 27, 2015, U.S. Homeland Security Investigations and the Clay County Sheriff’s Office executed a federal search warrant at Walters’s residence in Green Cove Springs, Florida. Several electronic devices were seized and approximately 619 still images and 11 videos depicting a minor victim engaging in sexually explicit conduct, in many instances with Walters, were recovered.
"This sentence serves as a reminder of the gravity of this crime," said Susan L. McCormick, special agent in charge of HSI Tampa. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these criminals, ensuring they receive the punishment they deserve.”
This case was investigated by the Jacksonville Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Citizen of Mexico Pleads Guilty to Being in the United States After RemovalRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Presiliano Gonzalez Berruete, 53, a citizen of Mexico, pleaded guilty today in U.S. District Court to being an alien who was found in the United States after having been removed and deported from the United States. Gonzalez Berruete was indicted for that crime in February 2017.
According to court documents, on February 12, 2017, the defendant arrived at the Canada Border Services Agency in Woodstock, New Brunswick. He was refused entry to Canada and transported to the Houlton, Maine Port of Entry. A United States Custom and Border Protection (CBP) officer determined that the defendant was a citizen of Mexico and had been removed from the United States in 2010. The removal of the defendant happened after the defendant was convicted of a federal felony drug trafficking offense and had served time in prison for that offense. The defendant returned to the United States after that removal by entering the United States without inspection at a place that was not designated for entry.
The case was investigated by United States Customs and Border Protection, Department of Homeland Security.
CA, Inc. to Pay $45 Million for Alleged False Claims on Government-Wide Information Technology ContractRead the Press Release
WASHINGTON – CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today. CA is an information technology management software and services company headquartered in New York, New York.
“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items.”
“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our federal partners, we will zealously press such claims in court to recover what is owed to the American taxpayer.”
The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services. Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services. The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved.
This settlement resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, the agreement resolves claims that CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.
“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”
The allegations against CA were first made in a whistleblower lawsuit filed under the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD. Under the False Claims Act, private individuals can sue on behalf of the government and share in any recovery. The False Claims Act also allows the government to intervene and take over the action, as it did, in part, in this case. Shemesh’s share of the settlement is $10.195 million.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the GSA Office of Inspector General.
The lawsuit is captioned United States ex rel. Shemesh v. CA, Inc., No. 09-1600 (D.D.C.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
CA Inc. to Pay $45 Million for Alleged False Claims on Government-Wide Information Technology ContractRead the Press Release
CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today. CA is an information technology management software and services company headquartered in New York, New York.
“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items.”
The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services. Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services. The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved.
This settlement resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, the agreement resolves claims that CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.
“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our federal partners, we will zealously press such claims in court to recover what is owed to the American taxpayer.”
“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”
The allegations against CA were first made in a whistleblower lawsuit filed under the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD. Under the False Claims Act, private individuals can sue on behalf of the government and share in any recovery. The False Claims Act also allows the government to intervene and take over the action, as it did, in part, in this case. Shemesh’s share of the settlement is $10.195 million.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the GSA Office of Inspector General.
The lawsuit is captioned United States ex rel. Shemesh v. CA, Inc., No. 09-1600 (D.D.C.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Brooklyn, New York Resident Sentenced to over Five Years in Prison for Credit Card Fraud Scheme Spanning Eight StatesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Odere Suleitopa, age 33, a Nigerian national residing in Brooklyn, New York, today to 63 months in prison, followed by three years of supervised release, for 18 counts of wire fraud and five counts of aggravated identity theft arising from a three-year credit card fraud scheme. A federal jury convicted Suleitopa on October 27, 2016, after a four-day trial. Judge Motz entered an order requiring Suleitopa to pay restitution of $140,000, and to forfeit over $1,000 and cellular telephones seized during the investigation.
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); Easton Police Department Chief David A. Spencer; and Talbot County State’s Attorney Scott G. Patterson.
According to the evidence presented at his four day trial, Suleitopa obtained credit cards with his name embossed on them, but with the account numbers that had been stolen. The magnetic strip on the fraudulent cards were disabled. Suleitopa went to retail stores and used the fraudulent cards to purchase gift cards and merchandise. The evidence showed that on October 29, 2015, Suleitopa completed three fraudulent transactions in Alexandria, Virginia, totaling $5,814.08. Between November 9 and November 17, 2015, the evidence showed that Suleitopa completed 26 transactions using the fraudulent credit cards – eight in Delaware, and 18 in Easton and Denton, Maryland. The total purchases were over $44,000.
On December 23, 2015, Suleitopa made over $4,000 of purchases of high end electronics and gift cards at a retail store in in Gardner, Massachusetts, using the fraudulent credit cards. He was arrested on January 13, 2016, after returning to the same store and attempting to make additional purchases with the fraudulent cards.
Over the course of the scheme, which spanned eight states from New Hampshire to Georgia, more than 15 victims had their credit card accounts compromised and losses were in excess of $190,000.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Easton Police Department, and Talbot County State’s Attorney’s Office for their work in the investigation, and recognized the Gardner, Massachusetts Police Department, the Spartanburg County and Berkeley County (South Carolina) Sheriff’s Offices, and the Summerville, South Carolina Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Menaka Kalaskar, who prosecuted the case.
Armed Drug Dealer from East Bay Sentenced to over Eight Years in PrisonRead the Press Release
OAKLAND – Ricky Keith Barnette was sentenced today to one hundred months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Barnette, 34, of Antioch, pleaded guilty on November 10, 2016, to one count of possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1). According to his plea agreement, Barnette admitted that on January 8, 2016, he was driving a stolen BMW in Antioch, Calif., while in possession of more than 167 grams of methamphetamine for sale and a stolen 9mm Ruger LC9 pistol loaded with eight rounds of ammunition. Officers from the Antioch Police Department attempted to pull Barnette over but he drove onto the off-ramp of Highway 4 and sped westbound in the eastbound lanes of the highway. While driving the wrong direction on the highway, Barnette collided head-on with another vehicle and caused great bodily injury to the other driver.
Barnette was charged in an information with one count of possession with intent to distribute methamphetamine. Pursuant to his plea agreement, Barnette pleaded guilty to the charge.
The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar also ordered Barnette to serve a five-year period of supervised release and ordered him to forfeit the firearm and $1,760, that Barnette admitted was the proceeds of his drug trafficking. Barnette is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Antioch Police Department, and the Contra Costa County Safe Streets Task Force.
Thursday 9 March 2017
Youngstown man sentenced to 30 years in prison for firearms and drug crimes, including selling heroin that resulted in a fatal overdoseRead the Press Release
A Youngstown man was sentenced to 30 years in prison for firearms and narcotics violations, including selling heroin that resulted in a fatal overdose, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lebron Charles Bunkley, 38, was found guilty of last year of charges including distribution of heroin, cocaine and crack cocaine as well as being a felon in possession of a firearm.
On May 14, 2016 in Youngstown, a person fatally overdosed on heroin sold by Bunkley, according to court documents.
“This defendant has a long history with firearms and drugs, and sending him to prison for decades will make the community a safer place,” Rendon said.
“Drug abuse and gun violence are a type of cancer,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF is proud to work with our law enforcement partners at the FBI and the Mahoning Valley Law Enforcement Task Force to ensure that individuals who threaten the health of our community are held accountable and prevented from causing further harm.”
The investigation preceding the indictment was conducted by the Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
White Horse Man Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a White Horse, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on March 7, 2017, by U.S. District Judge Roberto A. Lange.
Shawn Traversie, age 32, was sentenced to 5 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on February 17, 2016. He pled guilty on December 12, 2016.
The conviction stems from an incident on December 10, 2015, when Traversie and the victim began to argue. Traversie struck the victim’s right eye with his fist. The victim saw flashes of light from the blow and was knocked off the bed and onto the floor. When the victim was still on the floor, Traversie stuck her a couple of more times on the top of the head. The victim felt that her eye socket might have some damage. In the days following the assault, she continued having headaches and felt nauseated, dizzy, and lost her balance when she stood. The victim had a non-acute fracture to a small bone in the right eye socket.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
West Haven Man Charged with Carjacking OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DON MEEKER, 30, of West Haven, was arrested today on an indictment charging him with a carjacking offense.
A federal grand jury in New Haven returned an indictment yesterday alleging that, on January 1, 2016, MEEKER used threats of violence to steal a 2015 Volkswagon Passat from two victims in Meriden.
After his arrest, MEEKER appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
The indictment charges MEEKER with one count, of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years.
Elbert Llorens and Kyle Valentine, both of New Haven, previously pleaded guilty to charges related to their roles in this carjacking. Both are detained and await sentencing.
As to MEEKER, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford, New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AURELLE HUCKABEE, 22, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of distribution of heroin. This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the early morning of July 7, 2016, Naugatuck Police and emergency medical personnel responded to a Naugatuck residence on a report of a suspected overdose. The victim, a 31-year-old male, was transported to the hospital where he was pronounced deceased. Investigators seized two bags of suspected heroin and/or fentanyl, as well as the victim’s cellphone, from the scene.
The Office of the Chief Medical Examiner subsequently determined that the victim died as a result of “acute fentanyl intoxication.”
The victim’s cellphone contained hundreds of text messages between the victim and HUCKABEE. The text messages revealed that HUCKABEE regularly supplied heroin to the victim in the weeks preceding the victim’s death.
HUCKABEE has been detained since his arrest on January 4, 2017.
Judge Thompson scheduled sentencing for June 1, 2017, at which time HUCKABEE faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Naugatuck Police Department, with support and assistance of the Middlesex State’s Attorney’s Office. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Patrick F. Caruso.
Wallingford Man Sentenced to More Than 5 Years in Federal Prison for Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH A. CASTELLANO, 59, of Wallingford, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 68 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded individuals of more than $1.4 million.
According to court documents and statements made in court, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
Beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including for international travel. He also used some of the invested funds to make phony “interest” payments to other victim-investors.
During the scheme, CASTELLANO made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, CASTELLANO defrauded 18 victim-investors of a total of $1,447,151. Multiple victims lost most of their retirement savings.
CASTELLANO was arrested on April 6, 2016. On September 16, 2016, he pleaded guilty to one count of mail fraud and one count of money laundering.
CASTELLANO, who had been released on a $250,000 bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
VA Psychiatrist Charged with Fraud and Money LauderingRead 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 Dr. Xingjia Cui, 52, of Pittsford, NY, was arrested and charged by criminal complaint with health care fraud, money laundering and tax fraud. The charges carry a maximum sentence of 20 years in prison and a fine of $500,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, the defendant is employed full-time by the Canandaigua Veterans Administration Medical Center. In addition, Dr. Cui also maintains a private practice in Canandaigua, NY.
According to the complaint, the investigation began when the FBI was advised by the Ontario County Sheriff’s Office of a suspicious jailhouse telephone conversation regarding Dr. Cui and his drug prescribing habits. During the call, an inmate stated that the defendant prescribed controlled substances to area drug users without medical examinations.
An analysis of billing records from multiple private health insurance companies showed that Dr. Cui claimed to be spending from 10 to 17 hours per weekend day providing individual therapy sessions through his private medical practice. However, video surveillance on multiple days over several months, showed multiple people visiting the defendant’s private practice on evenings and weekends but a vast majority stayed very briefly, and not long enough for Dr. Cui to provide basic medical services which is needed to support the matters being billed.
Subsequently, an undercover FBI agent posed as a patient on five occasions with Dr. Cui. The undercover agent paid cash at each visit, with the first visit costing $300 and the following visits costing $100. The first visit lasted approximately 23 minutes with the defendant asking the undercover agent several questions including family history and drug use but at no point did Dr. Cui conduct a physical examination or request a urine toxicology. The other four visits lasted between five and nine minutes.The records of 30 of Dr. Cui’s patients with health insurance were obtained and a thorough review determined that, in the majority of instances, the defendant improperly billed the health care benefit programs for services that he did not provide.
For example, Sample Patient 1 (“SP1”), with insurance through Excellus, was seen by Dr. Cui between December 2014 and November 2015 for a total of 29 appointments. SP1 was interviewed by law enforcement officers and stated that his initial appointment with the defendant lasted approximately 20 minutes, but each subsequent appointment with Dr. Cui lasted less than five minutes. In addition, SP1 stated that he could not recall Dr. Cui performing a physical examination or taking a medical history, and that his appointments only consisted of Dr. Cui asking him if the medication was working. SP1 stated that the appointments were basically to pick up his prescription, and that no counseling or therapy was provided. SP1 indicated that he did not have a co-payment associated with his treatments, but that after five or six appointments, Dr. Cui informed him because he (Dr. Cui) was a smaller medical provider, he was “picked on” by the insurance companies, and would now have to charge SP1 $60 for his appointments. SP1 was not aware if Dr. Cui continued to bill Excellus for his appointments after he started paying Dr. Cui $60.00 cash for the visits. Based on a review of the records submitted by Dr. Cui to Excellus, it is alleged that the defendant defrauded the health insurance program by improperly billing for services he did not render, and by double billing the patient and the health insurance program for the same services.
The investigation determined that approximately 61% of Dr. Cui’s claims reimbursed by Excellus were fraudulent, totaling approximately $198,820.38. According to the complaint, Dr. Cui deposited the health care fraud proceeds into multiple personal accounts at Chase Bank and then transferred some of this money into a TD Ameritrade account. In addition, payments from other health insurance providers and large amounts of cash were also deposited, much of which likely pertains to co-payments or the full cost of an office visit paid out-of-pocket in cash by patients. This cash was not deposited along with checks into the Chase account as one would typically expect for a medical doctor’s private practice. Instead, the cash was deposited typically in $5,000 or $10,000 increments at a time.
Interviews were conducted with Chase Bank employees who were familiar with Dr. Cui. One employee recalled on one occasion Dr. Cui deposited exactly $10,000. The employee believed this was an attempt to avoid the currency reporting requirements. The employee recalled that Dr. Cui would come in week after week with large amounts of cash, mostly in $20 bills.
From approximately May 6, 2011, to March 30, 2015, Dr. Cui knowingly and willfully prepared, signed, and submitted false forms for the tax years 2010 to 2014. The defendant failed to report at least $381,447 of known income from his medical practice.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Jonathan W. Feldman and was released. Dr. Cui is due back in court on May 24, 2017 at 9:30 a.m.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office; the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo; the New York State Medicaid Fraud Control Unit, under the direction of William Falk; and the Ontario County Sheriff's Office, under the direction of Sheriff Philip Povero.
Two Inland Empire Men Charged with Operating Residential Drug Lab Where Butane Used to Extract Marijuana’s THC ExplodedRead the Press Release
RIVERSIDE, California – Two men who were allegedly operating a “honey oil” lab in Cherry Valley when it exploded and severely burned one of them now face federal charges of operating an illegal drug manufacturing facility.
Hector Gallegos, 34, of San Jacinto, surrendered to authorities yesterday and made his initial court appearance.
The second defendant in the case – James Ray Wallis III, 34, of Cherry Valley – is currently a fugitive who is being sought by authorities.
The two defendants were named in a criminal complaint filed last Friday that charges both men with endangering human life while illegally manufacturing a controlled substance, a federal felony offense that carries a statutory maximum sentence of 10 years in prison.
Wallis and Gallegos allegedly operated a clandestine laboratory where they used butane to extract tetrahydrocannabinol (THC) from marijuana. The resulting product is commonly called honey oil or hash oil, and it contains a much higher percentage of THC than found in traditional marijuana products.
During the early morning hours of February 16, Riverside County fire authorities were summoned to a house fire on Dutton Street in Cherry Valley, just north of Beaumont. CAL FIRE personnel were unable to combat the fire immediately because several 20-ounce butane canisters – which are commonly used in THC extraction labs – were exploding inside the residence, according to the affidavit in support of the criminal complaint.
After the fire was extinguished, Riverside County Sheriff’s Department personnel searched the property and “discovered several black plastic bins containing marijuana, over 1,000 20-ounce butane canisters, extracted THC spread out on wax paper sheets and contained within six small glass jars, a small indoor marijuana grow located in the basement of the residence, a partially burned PVC extraction tube loaded with marijuana, two handguns and three rifles,” according to the complaint.
Authorities soon learned that Wallis lived at the residence and was seen by neighbors soon after the fire erupted. Wallis’ 10-year-old child was inside the house when the explosion occurred, but the child was not harmed by the explosion or subsequent fire.
“Using butane to extract the psychoactive agent in marijuana is not only illegal – it is an extremely dangerous process,” said United States Attorney Eileen M. Decker. “One of the defendants in this case was seriously injured and a small child barely escaped injury. Unfortunately, we are seeing an increase in the number of explosions at household laboratories, which endangers neighborhoods, as well as first responders.”
Wallis fled the scene after the fire, and he remains a fugitive. Gallegos, who also fled the scene after the explosion, was discovered later in the day at Loma Linda Hospital. Gallegos had suffered third-degree burns over 50 percent of his body. Gallegos recently was released from the hospital, and he surrendered himself yesterday.
“As evidenced in this case, clandestine drug manufacturing labs are extremely hazardous and pose a serious threat of bodily injury – or even death – to would-be operators, as well as innocent bystanders,” said DEA Special Agent in Charge Steve Comer. “Fortunately, the child was unharmed and the individuals who put themselves and the entire neighborhood at risk have been removed from the community.”
At his initial appearance yesterday afternoon in United States District Court, Gallegos was freed on a $50,000 bond and was ordered to return to court for a preliminary hearing on March 29 and an arraignment on April 5.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the clandestine lab was conducted by the Drug Enforcement Administration and the Riverside County Sheriff’s Department, Special Investigation Bureau, Marijuana Enforcement Team.
This case is being prosecuted by Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office.
Two Convicted Felons from Chicago Area Sentenced to Prison on Federal Firearm OffensesRead the Press Release
CHICAGO — Two convicted felons from the Chicago area were sentenced to federal prison terms today for illegally possessing semiautomatic weapons.
THADDEUS JIMENEZ, 38, of Des Plaines, was sentenced to nine years and two months for illegally possessing a loaded .380-caliber semiautomatic pistol. Jimenez admitted in a plea agreement that he used the gun to shoot a man once in each leg. The shooting occurred on Aug. 17, 2015, in the 3500 block of West Belle Plaine Avenue in the Irving Park neighborhood of Chicago.
At the time of the shooting Jimenez was sitting in the driver’s seat of his Mercedes convertible, and in the passenger seat was JOSE ROMAN, 24, of Chicago. Roman was armed with a loaded .22-caliber semiautomatic rifle. After the shooting Jimenez and Roman sped off, but Chicago Police officers apprehended them nearby. The wounded man survived.
Roman was sentenced to seven years and one month for illegally possessing the rifle. Both Jimenez and Roman had previously been convicted of a felony.
U.S. District Judge Harry D. Leinenweber imposed the sentences in federal court in Chicago.
The sentencings were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department. The Cook County Sheriff’s Office provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Kathryn Malizia and Michelle Petersen.
Two Broward County Residents Indicted on Federal Explosives ChargesRead the Press Release
Two Broward County residents were indicted on federal explosives charges.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Bruce McFadden Sr., 50, of Lauderdale Lakes, and Bruce McFadden Jr., 33, of Fort Lauderdale, were charged by Indictment with receiving explosive materials, in violation of Title 18, United States Code, Section 842(a)(3)(A), and improper storage of explosives, in violation of Title 18, United States Code, Section 842(j). Bruce McFadden Sr. was also charged with being a felon in possession of explosives, in violation of Title 18, United States Code, Section 842(i)(1).
According to the court record, including allegations contained in the indictment, on or about June 30, 2016, in Broward County, Bruce McFadden Sr. and Bruce McFadden Jr. did knowingly cause to be transported and receive, and did knowingly store explosives, that is, 1.3G fireworks containing black powder, flash powder, a safety fuse, perchlorate explosive mixtures, pyrotechnic compositions, without the required license and permit and not in conformity with regulations. McFadden Sr. was previously convicted of a felony and as such was not lawfully permitted to possess the explosives.
The defendants had their initial appearances today before U.S. Magistrate Judge Patrick M. Hunt. McFadden Sr. is scheduled to have a pre-trial detention hearing on March 14, 2017. McFadden Jr. is scheduled for a bond hearing on March 10, 2017.
An Indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commended the investigative efforts of the ATF in this matter. Mr. Greenberg also thanked the Lauderhill Fire Department, Lauderhill Police Department and Broward County Sheriff’s Office for their assistance. The case is being prosecuted by Assistant U.S. Attorney Rilwan Adeduntan.
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.
Two Agents from Puerto Rico Treasury Department (“Hacienda”) Arrested for Accepting Bribes and ExtortionRead the Press Release
SAN JUAN, P.R. – On March 2, 2017, a Federal grand jury returned a two-count indictment against two agents from the Puerto Rico Treasury Department, (“Hacienda”) charging them with one count of extortion and one count of accepting bribes in their role as agents for the Puerto Rico Treasury Department, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Federal Bureau of Investigation.
The indictment alleges that on June 10, 2015, the defendants Edwin Aponte-Hernández and Eduardo Collazo-Torres, did obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion in that the defendants obtained property not due them or Hacienda under the color of official right. The bribes received were related to the regulation and licensure of adult entertainment machines within several businesses located in San Juan.
The defendants are also charged with accepting bribes in excess of $5,000.00 during the period of January through December 2015, intending to be influenced and rewarded in connection with a series of transactions on behalf of Hacienda. The defendants were arrested March 9, 2017.
“Abusing one’s position as a public servant for personal gain is a breach of trust and a violation of the oath that every government employee takes,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue working together with our law enforcement partners to ensure that those who engage in corrupt activities are brought to justice.”
“The honor of public service brings with it the duty to find and remove those public servants who abuse their power to serve their own selfish ends,” said Douglas Leff, FBI Special Agent in Charge. “From the moment he took office, Secretary Maldonado Gautier reaffirmed Hacienda's commitment to this effort, which led to today’s actions on behalf of the honest citizens of Puerto Rico”.
“We worked closely with the Federal authorities during the course of this investigation. We are not going to stop until we get rid of those who betray the public trust,” stated Lcdo. Raúl Maldonado Gautier, CPA, Director of the Puerto Rico Treasury Department. “Our commitment is to maintain transparency on our administration and to collaborate in every necessary way to preserve the integrity of the Department of the Treasury and to recover the credibility of the people of Puerto Rico.”
The case is being prosecuted by Assistant U.S. Attorney Nicholas W. Cannon. The case was investigated by the FBI, with the collaboration of the PR Treasury Department.
If convicted the defendants face a sentence of 20 years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Twenty-two indicted for trafficking heroin and cocaine in ToledoRead the Press Release
Twenty-two people indicted for their roles in a conspiracy to traffic large amounts of heroin and cocaine in Toledo, law enforcement officials said.
Named in the 72-count indictment are: Gary R. Hill, Sr., 62, of Lathrup Village, Michigan; Tyrone Watson, 45, of Sylvania; Keith Cooke, 51, of Southfield, Michigan; Leroy L. Hooker, 47; Larry E. Stewart, 50; Andre Anderson, 47; Andre Arthur, 38; Anthony Ballard, 24; Ivan Ballard, 26; James Bragg, Sr., 43; Dominique Brown, 25; Keith Chisholm, 38; Vincent Cooke, 69;, Dennis Garrett, 26; Victor Hardison, 57; Dorian Hooker, 42; Robert Jackson, 41; Cedrick Smith, 25; Damond Smith, 26; Marcus Stephens, 37; Jerome Toyer, 46, and Demond Washington, 36, all of Toledo.
All 22 defendants are charged with conspiracy to possess with intent to distribute heroin and cocaine. The indictment details large shipments of heroin, including a December 2, 2016 sale of nearly seven kilograms of cocaine and nearly four kilograms of heroin, according to the indictment.
The defendants worked together to bring kilogram-level amounts of heroin and cocaine from the Detroit area and sell the drugs in and around Toledo. This took place between from 2012 through this year, according to the indictment.
Hill, Leroy Hooker and Keith Cooke recruited friends and relatives in Toledo to distribute heroin and cocaine. Hill and others in Detroit and Toledo supplied Hooker and Keith Cooke with drugs. Stewart and Brown drove between Detroit and Toledo transporting drugs and money on behalf of Hill, Leroy Hooker and Keith Cooke, according to the indictment.
Some of the defendants used residences in Toledo to store and distribute the heroin and cocaine, including locations on Rockingham Street, Barrows Street, Ogden Avenue, West Delaware Avenue, Bryant Court and Nantucket Drive, as well as locations in Southfield, Lathrup and Detroit, Michigan, according to the indictment.
Several of the defendants are charged with distribution of heroin for sales that took place between 2012 and 2016. Leroy Hooker, Demond Washington and Chisholm face additional charges for having guns despite felony convictions that prohibit them from possessing firearms, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers,” said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio. “Aggressive enforcement, coupled with increased access to treatment for those who want help, changes in prescribing practices and more education are all required to combat the opioid epidemic that his devastated our state.”
“Unfortunately, heroin and cocaine continue to plague our communities,” FBI Special Agent in Charge Stephen D. Anthony said. “Law enforcement will hold these individuals, and any others, that bring illegal narcotics to our streets accountable in a court of law.”
“We are very happy with the results of this investigation,” said Toledo Police Chief George Kral. “Detecting, investigating, and charging these drug trafficking groups, and working diligently in keeping Toledo’s streets free of this poison is and will always be a priority of mine. These results also show the high level of cooperation and interaction we enjoy with our federal, local, and state law enforcement partners.”
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigating by the Federal Bureau of Investigation and Toledo Metro Drug Task Force, which is comprised of personnel from the Toledo Police Department, FBI, ATF, and Lucas County Sheriff's Office. It is being prosecuted by Assistant U.S. Attorneys Thomas P. Weldon and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Indicted Related to Stolen FirearmsRead the Press Release
SOUTH BEND – The United States Attorney for the Northern District of Indiana, David Capp, announced 2 separate indictments charging three individuals for involvement in the movement of stolen firearms in Fulton and Wabash Counties. Named in the indictments are:
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Indictment One
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Robert M. Hoy, 21, of North Manchester, Indiana
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One count of stealing firearms from a Federal Firearms Licensee (FFL)
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Jose Rogelio Vera-Diaz aka Rogelio Diaz, 21, of Mexico
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One count of stealing firearms from a FFL
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Indictment Two
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Charles M. Hammer, 30, of North Manchester, Indiana
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One count of felon in possession of a firearm
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According to documents in this case, on November 20, 2016, Hoy and Diaz stole one or more firearms from the Sand Burr Gun Ranch, which is licensed to engage in the business of importing, manufacturing, or dealing in firearms. In November and December of 2016, Hammer possessed a firearm after having previously been convicted of a felony offense.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, 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 investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in coordination with the Fulton County Sheriff’s Department, the North Manchester Police Department and the Wabash County Sheriff’s Department. This case is being handled by Assistant United States Attorney Molly E. Donnelly.
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Texas Woman Found Guilty of Murder-For-Hire Plot to Kill Trial WitnessesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Priscilla Ann Ellis (52, Killeen, TX) guilty of murder-for-hire, retaliating against witnesses, and conspiring to create counterfeit securities. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
Ellis was first indicted on November 22, 2016, on charges of witness retaliation and murder-for-hire. A superseding indictment was filed on January 17, 2017, adding the counterfeit security conspiracy charge.
According to evidence presented at trial, on October 21, 2016, Ellis and two co-defendants were convicted at trial of conspiracies to commit international money laundering and mail and wire fraud. They were remanded to custody at the Pinellas County Jail. Over the next 48 hours, Ellis solicited other inmates to assist her in finding a hitman to murder several witnesses who had testified for the government during the trial. She then “hired” an undercover FBI agent posing as the hitman to murder one trial witness and to kill the mother of another in retaliation for the witnesses’ testimony. On October 28, 2016, a family member acting at Ellis’s direction provided a down payment on the murder contracts to the undercover agent posing as the hitman in Texas, with the remainder to be paid only after the intended victims were killed.
As the murder-for-hire plot unfolded, Ellis conspired with a Nigerian-based counterfeiter to create counterfeit cashiers’ check images, steal bank customer data to open new bank accounts, and email the counterfeit check images to conspirators in the United States to print and cash or deposit into the new accounts. From there, the illicit funds were to be wired into other accounts controlled by the conspirators or distributed as cash. The scheme was devised, in part, to pay for the two contract murders. The intended loss of the scheme was several million dollars.
This case was investigated by the Federal Bureau of Investigation and the City of Austin (Texas) Police Department. It is being prosecuted by Assistant United States Attorneys Eric K. Gerard and Patrick Scruggs, who also tried the case last October.
Tampa Man Pleads Guilty to Selling Stolen IdentitiesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Jordan Tito (23, Tampa) has pleaded guilty to aggravated identity theft. He faces a mandatory penalty of two years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in September 2016, a cooperating informant (CI) told investigators that Tito offered to sell him stolen identities for $10 each. The identities that Tito offered included names, dates of birth, and social security numbers, that the CI could use to make counterfeit credit cards and fake ID’s, and otherwise access the victims’ credit. In September 2016, Tito met with the CI and sold him approximately 86 stolen identities each printed on a separate sheet of paper. Each of the documents included the name, address, date of birth, and social security number of an identity theft victim. Of the 86 stolen identities, 29 were children.
This case was investigated by the U.S. Secret Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Syracuse Man Sentenced for Possession of a Handgun by a Convicted FelonRead the Press Release
SYRACUSE, NEW YORK - Ricardo Davis, 28, of Syracuse, New York, was sentenced yesterday to serve 110 months (9 years and two months) in prison for his possession of a firearm by a convicted felon, announced United States Attorney Richard S. Hartunian. Davis had previously admitted that he fired the firearm, a semiautomatic 9 mm pistol, in connection with a dispute with another man in Syracuse. Units of the Syracuse Police Department responded to a report of “shots fired” and arrested Davis after a short foot chase. Davis’s prior criminal record includes three (3) previous drug related felony level convictions. Chief United States District Judge Glenn T. Suddaby, who imposed sentence, ordered that Davis’s term of incarceration is to be served in addition to his current state prison sentence for a parole violation. As part of his sentence, Davis will also serve a term of three (3) years of supervised release following his federal prison sentence. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Spencer woman pleads guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Spencer woman pleaded guilty today to credit card fraud, announced United States Attorney Carol Casto. Rhonda Kelley Conrad, 49, faces up to 10 years in federal prison, a fine of up to $250,000, and, as part of her plea agreement, $10,301.70 in restitution to the United Way of Central West Virginia.
Conrad admitted that while she worked for the United Way of Central West Virginia in Charleston, she took a number of company credit cards and fraudulently charged goods and services for herself. From June to December of 2014, she admitted that she charged more than $6,000 in goods and services that she was not entitled to receive. Conrad further admitted that she used the credit cards to pay bills and to charge goods at stores such as Kmart and Sam’s Club. Additionally, Conrad admitted that she set up false accounts within the United Way electronic payment system. Conrad used these false accounts to fraudulently transfer more than $4,000 to her personal bank account. Conrad admitted that she had no authorization to use the credit cards or to electronically transfer the money from the United Way. Conrad’s sentencing is scheduled for June 1, 2017.
“There is not much more despicable than theft from organizations established to take care of folks who can’t take care of themselves. Stealing from a charity is a serious crime that carries significant consequences,” stated United States Attorney Carol Casto. “We will continue working with our law enforcement partners to make sure these offenders are held accountable.”
The Federal Bureau of Investigation and the Charleston Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Joseph R. Goodwin is presiding over the case.
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South Texas HPL Gang Members and Associates Indicted for Firearms and Drug TraffickingRead the Press Release
CORPUS CHRISTI, Texas – A total of 10 individuals and associates of the Hermandad de Pistoleros Latinos (HPL) gang are in custody following a coordinated round-up in multiple jurisdictions, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas (SDTX) and U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas (WDTX).
This three-year investigation focused on drug trafficking and members of the HPL and their associates in the Corpus Christi, Houston and San Antonio areas.
Taken into custody today as a result of indictments returned last week in Corpus Christi include HPL Lieutenant Pacino San Miguel aka “Abuelo,” 40, of Houston; HPL Lieutenant Jacob Gonzales aka “Orbit,” 27, Mario Alberto Ramirez, 30, HPL Lieutenant Oscar Pena aka “OP,” 55, Leroy Rocha aka “Tank,” 26, and Dorothy Babette Cuello aka “Tiny,” 55, all of Corpus Christi. With the exception of San Miguel who is expected to appear in Houston tomorrow morning, all of the defendants made their initial appearance in Corpus Christi today and were temporarily ordered into custody pending detentions hearings next week.
Miguel, Gonzales, Ramirez and Rocha are all charged with conspiracy to distribute methamphetamine, while Pena, and Cuello are charged with conspiracy to distribute heroin.
Also arrested today were HPL Lieutenant Ricardo Aguilar aka “Indio,” 38, Stephanie Pacheco, 31, Jesse Mendoza aka “Chivo,” 42, all of San Antonio. A federal grand jury in San Antonio indicted all three for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Also charged in this case is Robert Hewitty aka “Looney,” 36, who was already in custody. He is charged with being a felon in possession of a firearm, possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime.
Aguilar, Pacheco, and Hewitty all face a minimum of 10 years and up to life in federal prison based on the amount of methamphetamine involved in the conspiracy, while Mendoza faces between five years and 40 years in federal prison. If convicted of their charges, the defendants charged in the SDTX face a 20-year-maximum term of imprisonment.
The Texas Department of Public Safety - Criminal Investigations Division and the FBI conducted the investigation together with police departments in San Antonio, Corpus Christi, Houston and Pasadena; Texas Department of Criminal Justice - Office of Inspector General; Harris County Sheriff’s Office; and the Bexar County District Attorney’s Office. Assistant U.S. Attorney (AUSA) Jeff Miller is prosecuting the SDTX case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
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Sioux Falls Man Sentenced for Possession of Unregistered FirearmsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Possession of Unregistered Firearms was sentenced on March 6, 2017, by U.S. District Judge Karen E. Schreier.
Darren Stepp-Zafft, age 30, was sentenced to 37 months in custody, followed by 3 years of supervised release. He was also ordered to pay $300 to the Federal Crime Victims Fund.
Stepp-Zafft was indicted for Possession of Unregistered Firearms by a federal grand jury on May 10, 2016. He pled not guilty on May 23, 2016.
On December 10, 2015, law enforcement officers searched Stepp-Zafft’s Sioux Falls residence looking for evidence of a firearm that discharged into an adjoining neighbor’s apartment. During the search, officers found the defendant to be in possession of two illegal firearm silencers, five illegal short rifles, and nine illegal destructive devices that could be readily assembled into grenades. Zafft went to trial and the jury convicted him of all counts.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Sioux Falls Police Department, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stepp-Zafft was immediately turned over to the custody of the U.S. Marshals Service.
Silver Spring, Maryland Man Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
An Indictment[1] was returned today charging Larry Joseph Wolfe, 48, of Silver Spring, Maryland with one count of bank fraud and one count of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Wolfe posed as an account holder at Beneficial Bank by using the account holder’s means of identification and a false driver’s license in the account holder’s name but containing Wolfe’s photograph to withdraw $424,000 in the form of cashier’s checks from accounts controlled by the account holder, then deposited several of the checks into a Mount Airy Casino account in the name of a person who Wolfe also impersonated, and then withdrew the money in cash from the Mount Airy Casino account.
Wolfe faces a maximum sentence of 32 years’ imprisonment, including a mandatory two-year term of imprisonment, a five-year period of supervised release, a $1,250,000 fine, and an $200 special assessment and restitution of $424,000.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Sentencings for March 7 - March 9, 2017Read the Press Release
Mark Anthony Avery, 53, of Buffalo Gap, Texas, was sentenced by Federal District Court Judge Alan B. Johnson on March 9, 2017, for conspiracy to distribute less than 50 grams of methamphetamine. Avery received 71 months and 21 days of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Cheyenne Police Department.
Leif Bjorn Jourgensen, 31, of Mancos, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on March 9, 2017, for travel with intent to engage in illicit sexual conduct. Jourgensen was arrested in Fort Collins, Colorado. He received 84 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jerry Ray Queen, 30, of Los Angeles, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 8, 2017, for possession of firearm with obliterated serial number. Queen was arrested in Lander, Wyoming. He received 31 month of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Maureen Hall, 59, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 7, 2017, for credit union embezzlement. Hall appeared pursuant to a summons. She received three years of supervised release and was ordered to pay a $100.00 special assessment and $5,180.63 in restitution. This case was investigated by the Federal Bureau of Investigation.
David M. Stephens, 30, of North Las Vegas, Nevada, was sentenced by Federal District Court Judge Alan B. Johnson on March 7, 2017, for possession with intent to distribute over 50 grams of methamphetamine. Stephens was arrested in Goshen County, Wyoming. He received 60 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
San Juan County Man Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Cory Werito, 33, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to a health care fraud charge. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
Werito and his co-defendant, Rosita Toledo, 47, of Kirtland, N.M., were charged in a ten-count indictment that was filed on June 15, 2016. The indictment included nine health care fraud charges against Werito and Toledo, and an aggravated currency structuring charge against Werito. According to the indictment, the health care fraud charges were based on the defendants’ roles in creating and operating a medical transportation company, CW Transport, a New Mexico company located in Farmington that provided non-emergency medical transportation to Arizona Medicaid recipients, funded by reimbursement payments from the Arizona Health Care Cost Containment System (AHCCCS), a healthcare benefit program. The indictment alleged that over the course of two years between 2011 and 2013, CW Transport collected more than $1.9 million in Medicaid reimbursements from AHCCCS by submitting more than 18,000 claims for reimbursement, the vast majority of which were wholly or substantially false and fraudulent.
Count 10 of the indictment, the aggravated currency structuring charge, alleged that Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs). CTRs are reports which must be filed by financial institutions on transactions involving more than $10,000 during any business day and are used by law enforcement authorities to uncover a broad range of illegal activities including money laundering. According to the indictment, from Aug. 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.
The indictment included forfeiture provisions seeking an order requiring Werito and Toledo to forfeit to the United States at least $1,959,405, the proceeds allegedly derived from the health care fraud alleged in Counts 1 through 9 of the indictment.
During today’s proceedings, Werito pled guilty to Count 1 of the indictment, charging him with committing health care fraud. Werito admitted, as the sole owner of CW Transport, he submitted approximately 18,765 claims for reimbursement to AHCCCS between July 2011 and July 2013. Because the claims were grouped in 140 invoices, Werito received 140 payments from AHCCCS in an amount totaling $1,959,405. Werito admitted submitting the claims for reimbursement as part of a scheme to defraud AHCCCS because he either never provided or provided in a substantially different manner many of the services for which he sought and received reimbursement.
At sentencing, Werito faces a maximum penalty of ten years in federal prison. Under the terms of his plea agreement, Werito also will be required to pay $1,218,165 in restitution. A sentencing hearing has yet to be scheduled.
Toledo has entered a plea of not guilty to the charges in the indictment and is pending trial which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of HSI investigated the case with assistance from the FBI, U.S. Marshals Service, San Juan County Sheriff’s Office, the Arizona Health Care Cost Containment System and New Mexico Office of the Attorney General. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Sacramento Men Indicted for Firearm Trafficking OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 24-count indictment today against Sacramento residents James Smallwood, 25, and John Smallwood, 45, charging them with firearm-trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, James Smallwood and John Smallwood conspired to manufacture and sell firearms without a license. Over the course of eight transactions between September 28, 2016, and February 9, 2017, James Smallwood sold 20 firearms for $31,960. Seventeen of these firearms were homemade AR-15 style rifles and pistols, and seven of these homemade firearms were short-barreled rifles. John Smallwood manufactured the AR-15 style firearms and accompanied James Smallwood on one of the sales. On February 22, 2017, James Smallwood was apprehended while en route to sell 14 additional homemade AR-15 style short-barreled rifles for $28,000.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, both defendants face maximum statutory penalties of five years in prison and a $250,000 fine for the conspiracy count and for the count of unlawful manufacturing and dealing firearms and 10 years in prison and a $10,000 fine for each count of unlawful possession of short-barreled rifles. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Rochester Man Sentenced on Heroin ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey M. Patton, 27, of Rochester, NY, who was convicted of possession with intent to distribute heroin, was sentenced to 18 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on February 21, 2016, Patton was found inside an apartment at 1205 Jay Street in Rochester as parole officers with the New York State Department of Corrections and Community Supervision were attempting to locate a parole absconder. While searching the residence, parole officers observed a firearm on top of a bedroom dresser and also located a quantity of heroin on Patton’s person. Officers from the Rochester Police Department responded to the location and after securing a search warrant, discovered additional items of contraband consistent with heroin distribution.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli; the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Zaylik Harrison, 21, of Rochester, NY, pleaded guilty to sex trafficking of a minor, before U.S. District Judge Charles J. Siragusa. The charge carries minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine. The defendant will also have to register as a sex offender.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between September 30, 2016, and October 6, 2016, Harrison recruited a teenaged girl to engage in commercial sex acts at the Gates Motel, on Buffalo Road in Gates, NY. The defendant then posted advertisements for the minor on Backpage.com. Harrison rented rooms in the motel where the victim was forced to engage in prostitution activities over several days with adult males. The defendant kept the proceeds of those activities.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Sentencing is scheduled for June 8, 2017 before Judge Siragusa.
Rite Aid Corporation Pays $834,200 to Settle Allegations of Violating the Controlled Substances ActRead the Press Release
LOS ANGELES – Rite Aid Corporation has paid $834,200 in civil penalties to the United States to settle claims stemming from alleged violations of the Controlled Substances Act.
Rite Aid paid the civil settlement yesterday as part of an agreement reached last week to resolve allegations that certain Rite Aid pharmacies in Los Angeles dispensed and/or recorded controlled substances using a medical practitioner’s incorrect or invalid DEA registration number. The government alleged that the incorrect or invalid registration numbers were used at least 1,298 times as a result of Rite Aid’s failure to adequately maintain its internal database.
The settlement also resolves allegations that Rite Aid pharmacies dispensed, on at least 63 occasions, prescriptions for controlled substances written by a practitioner whose DEA registration number had been revoked by the DEA for cause.
In 1970, the United States Congress passed the Controlled Substances Act (CSA), which created “a closed system” of distribution for controlled substances. The CSA established a regulatory framework to control every facet of the handling of the substances, from their manufacture to their consumption.
The CSA became law against the backdrop of increasing diversion and abuse of legitimate controlled substances, but the law was also designed to ensure an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
“Accurate record keeping at retail pharmacies helps ensure that authorities can keep track of how many controlled substances a pharmacy should have and does have on hand,” said United States Attorney Eileen M. Decker. “These federal regulations were put into place to prevent the abuse of powerful drugs that are dispensed by pharmacies and should only be used under the careful watch of a medical professional.”
In entering into and paying the settlement, Rite Aid did not admit liability. Prior to entering into the agreement, Rite Aid implemented a DEA registration validation program designed to verify DEA registration numbers for medical professionals who prescribe controlled substances.
“This settlement demonstrates DEA’s commitment to monitoring and holding accountable all potential sources of diversion for controlled substances and maintaining the safety of our communities,” said DEA Special Agent in Charge Steve Comer
This case was investigated by the Drug Enforcement Administration’s Office of Diversion Control, Los Angeles Field Division.
The settlement was negotiated by Assistant United States Attorney Donald W. Yoo of the Civil Fraud Section.
Reading Man Charged with Illegal Reentry After DeportationRead the Press Release
Oscar Alexander Moreno, a/k/a “Oscar Alexander Moreno Rodrgiuez,” of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about February 7, 2017, Moreno, an alien, and native and citizen of El Salvador, was found in the United States after having been deported from the United States on or about January 3, 2012.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.