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20 April 2017
Ohio Man Sentenced on Sex Trafficking ChargesRead the Press Release
St. Louis, MO – Kyle Maurice Parks was sentenced to 300 months in prison for his involvement in the transportation of four minors (ages 15-17) and two adults from Ohio to Missouri to engage in prostitution. The plan was to come to sell the girls on Backpage.com.
According to testimony at trial, Parks, two women and four minor females, including a runaway, left Columbus in a minivan on December 2, 2015, and arrived at the Red Roof Inn at Zumbehl Road and Interstate 70 in St. Charles, Missouri. The next day. Parks told them to rest, then woke them several hours later and told them to shower. He then told them to post ads on Backpage.com and that they would commit sex acts for cash. Some of the victims took calls and engaged in sex acts as a result of the ads, and Parks kept most of the money. Columbus police looking for the female runaway tracked her phone to the motel’s area and notified St. Charles police, who spotted the van and its Ohio temporary license tags. Police found most of the victims including the runaway in the motel rooms. Parks had left the motel with a 17-year old girl and later went to the police station to bail out one of the women. Officers arrested Parks and found a conscious but incoherent teen in the van.
Parks, 54, of Columbus, Ohio was convicted in January 2017 of one count of sex trafficking of a minor, two counts of attempted sex trafficking of a minor and six counts of interstate transportation with intent to commit prostitution. The four-day trial was held before United States District Court Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, the Columbus, Ohio Police Department, the St. Charles City and County Police Departments, St. Louis County Police Department, the Ohio State Attorney General’s Office and the Social Security Administration OIG. Assistant United States Attorney Howard Marcus prosecuted the case for the U.S. Attorney’s Office.
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Oakland Resident Sentenced to 11 Years in Prison for Methamphetamine TraffickingRead the Press Release
OAKLAND – Marco Antonio Ochoa, aka Alfredo Ochoa Valladares, was sentenced today to 132 months in prison for his role in a conspiracy to possess with the intent to distribute methamphetamine announced United States Attorney Brian J. Stretch and U.S. Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin. The sentence follows a guilty plea entered January 30, 2017, in which Ochoa admitted he participated in the conspiracy.
According to his plea agreement, Ochoa, 38, of Oakland, acknowledged that he conspired to possess with the intent to distribute no less than 6,334 net grams of methamphetamine. Specifically, Ochoa admitted that on May 23, 2013, he received instructions from his co-conspirators to travel to Los Angeles so that he could retrieve methamphetamine and payment for his distribution services. He made the trip on May 24, 2013, and received from a co-conspirator 20 pounds (or at least 9 kgs) of methamphetamine and the payment for his services. Ochoa drove back to Oakland and on the next day, he received further instructions to distribute the methamphetamine. Ochoa ultimately provided a co-conspirator with at least 6,334 net grams of the methamphetamine. Further, Ochoa admitted that on September 19, 2013, he traveled to Whittier, Calif., and met with a co-conspirator at a car wash where he retrieved another 20 pounds of methamphetamine for distribution.
In addition to the methamphetamine, Ochoa also admitted possessing with the intent to distribute approximately 2 kilograms of heroin. In June 2014, he received instructions to travel to Fresno where he could retrieve heroin from a co-conspirator. On June 20, 2014, Ochoa traveled to Fresno and retrieved 2,774 net grams of heroin. While driving back to Oakland, he was stopped by a California Highway Patrol officer; the officer searched Ochoa’s car and recovered multiple Ziploc bags that contained the heroin. As part of his plea agreement, Ochoa admitted he possessed the heroin with the intention of selling it.
A federal grand jury indicted Ochoa on January 16, 2014, and charged him with one count of conspiracy to possess with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). Pursuant to his plea agreement, Ochoa pleaded guilty to the charge.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District
Judge. In addition to the prison term, Judge Davila sentenced Ochoa to a 5-year period of supervised release. Ochoa has been in custody since his arrest in June of 2014 and will begin serving his sentence immediately.
Assistant U.S. Attorneys Jeffrey Backhus is prosecuting the case with the assistance of Ryka Barghi and Ana Guerra. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Nigerian Citizen Convicted of Defrauding at Least Half a Million Dollars from U.S. VictimsRead the Press Release
HOUSTON – A 25-year-old Nigerian man who was residing in Houston has pleaded guilty to perpetuating a wire fraud scheme involving various Internet scams, announced Acting U.S. Attorney Abe Martinez.
Wiseman Oputa pleaded guilty to one count of wire fraud. Beginning Jan. 1, 2016, until Jan. 25, 2017, Oputa used counterfeit passports to open bank accounts in the greater Houston area. The passports contained photographs of Oputa but had different names and identification information. He then worked with others to lure victims into sending money into these bank accounts. These funds were obtained through a variety of internet scams, including business email compromise, romance schemes and unauthorized intrusions into company email accounts. Checks or wire transfers were then sent from the company’s accounts payable to accounts Oputa or others controlled. Oputa would then use the counterfeit passports to retrieve the fraudulently obtained funds.
In one instance in December 2016, Oputa opened an account at Regions Bank with a counterfeit Ghanaian passport as identification. Shortly thereafter the account received a wire transfer of $40,000 from a victim who had been told to send money for taxes on money he had won in Spain. USAA Bank identified the fraudulent and was able to recal the wire.
U.S. District Judge Alfred H. Bennett accepted the guilty plea and has set sentencing for July 6, 2017. At that time, Oputa faces up to 20 years in federal prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
The U.S. Postal Inspection Service conducted the investigation along with Department of State – Diplomatic Security Service and the Secret Service. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
New York Tax Preparer Indicted for Filing Fraudulent Tax ReturnsRead the Press Release
The owner of Brooklyn, New York return preparation businesses was indicted on April 14 and arrested today on 18 counts of aiding and assisting in the preparation of false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment unsealed today, Maria Munoz, owned and operated tax preparation businesses in Brooklyn including Munoz Multiservices Corp., Munoz Multiservices Inc. and United Tax Service. The indictment alleges that Munoz prepared fraudulent returns for clients that reported fictitious or inflated deductions for charitable donations, unreimbursed employee expenses, personal property taxes and other expenses. Munoz also fabricated education expenses in order to fraudulently claim education credits for her clients and cause the Internal Revenue Service (IRS) to pay them bogus or inflated refunds.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Munoz faces a statutory maximum sentence of three years in prison on each count, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Jorge Almonte and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to Prison for Leading Multi-State Scheme to Obtain New Cell PhonesRead the Press Release
BOSTON - A New York man was sentenced yesterday in federal court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 worth of new cell phones and for resuming the scheme after being indicted and released pending trial.
Kevin Johnson, 26, of New York City, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 70 months in prison, three years of supervised release and restitution to be determined at a later date. In December 2016, Johnson pleaded guilty to one count of wire fraud conspiracy. Johnson was initially arrested and charged in December 2014; he was then re-arrested in March 2015, after an investigation revealed that he had resumed the fraud less than a week after his pre-trial release.
From at least January 2014 through October 2014, Johnson, Jimmy Phan, David Hul, Curtis Peebles, and other co-conspirators called T-Mobile customer service centers impersonating T-Mobile employees and used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners,” including Lee Tran, to go into T-Mobile stores and impersonate the customers. Johnson, Phan, Hul, and Peebles used the dealer codes, among other methods, to add either the runners’ real names or false identities to the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere where they presented identification in the real or assumed names and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners returned the new phones to Phan, Hul, and Peebles who paid them a portion of the phone’s value. Johnson, Phan, and Hul re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, the scheme netted at least $330,000 worth of new cell phones. In the months after he was indicted, Johnson obtained another approximately $30,000 in AT&T cell phones.
Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Judge Wolf previously sentenced David Hul and Curtis Peebles to 21 and 18 months in prison, respectively, for their role in the scheme. Jimmy Phan and Lee Tran will be sentenced on May 9.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement. The U.S. Attorney’s Office acknowledges T-Mobile and AT&T for their assistance with the investigation. Assistant U.S. Attorney Seth B. Kosto of Weinreb’s Cybercrime Unit is prosecuting the case.
New York City Heroin Dealer Sentenced to 24 Years in PrisonRead the Press Release
NORFOLK, Va. – A drug dealer who transported kilogram quantities of cocaine and heroin from New York City to Norfolk for distribution was sentenced today to 292 months in prison.
Adrian Paulino, 27, of New York City, pleaded guilty on Dec. 12, 2016, to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine and one kilogram or more of heroin. According to court documents, from December 2013 to May 2015, Paulino and his associates transported kilogram quantities of cocaine and heroin from New York City to Norfolk for distribution in various automobiles equipped with secret compartments. Paulino and his co-conspirators traveled back to New York City with the large sums of cash generated from the sale of the drugs in Norfolk. In December 2013, Pocomoke City Police stopped Paulino for speeding on US-13 North in Maryland. During the stop, Paulino allowed the police to search his car and police discovered approximately $64,000 in cash inside Paulino’s vehicle. On March 31, 2015, a Worcester County (MD) Sheriff’s deputy stopped a vehicle for speeding in which Paulino was traveling as a passenger. During the stop, the driver allowed the police to search the vehicle and police discovered approximately $280,000 in cash concealed in several secret compartments inside the vehicle. Also, during the conspiracy, Paulino and his associates utilized an apartment in the 1600 block of West Little Creek Road in Norfolk as a “stash” house, storing cocaine and heroin there prior to its distribution. On May 19, 2015, Virginia State Police stopped a vehicle being operated by Paulino’s associate Warlin Leo on Northampton Boulevard in Virginia Beach, just past the south terminus of the Chesapeake Bay Bridge Tunnel. During the stop, a Virginia State Police drug dog alerted on the vehicle and a search of the vehicle led to the discovery of 3.6 kilograms of cocaine and 1.9 kilograms of heroin. On the same date, Norfolk Police searched the “stash” house on Little Creek Road in Norfolk and discovered 138 grams of heroin and 184 grams of cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Colonel W. Steven Flaherty, Superintendent of Virginia State Police; and Michael Goldsmith, Chief of Norfolk Police; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-154.
New Orleans Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSEPH RIVERA, age 34, of New Orleans, was sentenced today after previously pleading guilty to a one-count Indictment charging him with receipt of images and videos depicting the sexual exploitation of children.
U.S. District Judge Carl J. Barbier sentenced RIVERA to five years imprisonment, followed by ten years of supervised release. RIVERA will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
According to court documents, law enforcement officials executed a search warrant at RIVERA’s residence on August 6, 2015, during which time they seized numerous electronic items including two computers, two external digital storage devices, and two DVDs contained images and videos of child pornography. A forensic examination of the device revealed that RIVERA’s used the devices to search for, download, and save images and videos of children as young as approximately one-year-old engaging in sexually explicit conduct. The forensic examination located approximately 6900 images and 885 videos of prepubescent children engaging in sexually explicit on RIVERA’s digital devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and Special Assistant United States Attorney J. Ryan McLaren were in charge of the prosecution.
New Haven Man Sentenced to 3 Years in Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AXEL PIZARRO, 41, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 36 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, in the fall of 2015, the DEA New Haven Task Force initiated an investigation into a cocaine trafficking organization headed by Halby “Harv” Lopez. The investigation revealed that Lopez, and his associates, Omar Polanco-Mendez and Bernardo “Benny” Roman-Rolan, were obtaining bulk quantities of cocaine from multiple suppliers, including PIZARRO, and redistributing the cocaine to a network of New Haven-area street-level dealers. The investigation included court-authorized wiretaps, controlled purchases of drugs and the seizure of multiple kilograms of cocaine.
On March 2, 2016, PIZARRO delivered at least 500 grams of cocaine to Polanco on consignment.
PIZARRO was arrested on March 16, 2016 and, on March 24, 2016, a grand jury in New Haven returned a 13-count indictment charging him, Lopez, Polanco-Mendez, Roman-Rolan and six other individuals with various narcotics offenses. All of the defendants pleaded guilty.
On September 22, 2016, PIZARRO pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
This is PIZARRO’s second federal conviction for trafficking cocaine.
On February 24, 2017, Polanco-Mendez was sentenced to 120 months of imprisonment and, on March 2, 2017, Roman-Rolan was sentenced to 68 months of imprisonment. Lopez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Jennifer Laraia.
Mississippi Tax Return Preparers Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
Two Gulfport, Mississippi men were sentenced to prison today for charges related to preparing fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Harold Brittain for the Southern District of Mississippi.
Allen Brice was sentenced to serve 63 months in prison. He was convicted at trial of seven counts of aiding in the preparation of false tax returns. Jeremi Washington was sentenced to serve 46 months in prison. He previously pleaded guilty to conspiring to defraud the United States.
According to court documents and proceedings, Washington was a tax return preparer who owned and operated Flash Financial, and Brice was Washington’s sole employee. From 2009 through 2011, the two men filed fraudulent tax returns for multiple clients with the Internal Revenue Service (IRS) that included bogus education expenses and retirement contributions, which they never discussed with their clients. As a result, the clients received refunds they were not entitled to.
In addition to the terms of prison imposed, Brice and Washington were ordered to serve one and three years of supervised release. Brice was ordered to pay restitution to the IRS in the amount of $1,919,820.20 and Washington was ordered to pay $1,954,352.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Brittain commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Christopher Wansley and Jay Golden and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mission Residents Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that two Mission, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Richard William Neiss, age 45, and Wastewin Jonnie Waukechon, age 38, were indicted on March 15, 2017. They appeared before U.S. Magistrate Judge Mark A. Moreno on April 13, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The Indictment alleges that between May 1, 2014, and February 8, 2017, Neiss and Waukechon knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in South Dakota.
The charges are merely accusations and Neiss and Waukechon are presumed innocent until and unless proven guilty.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Neiss and Waukechon were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MOISES ESQUIVEL-RIOS, age 34, a citizen of Mexico, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the court documents, ESQUIVEL-RIOS reentered the United States on or about March 16, 2017, after having been previously removed on December 24, 2011.
ESQUIVEL-RIOS faces a maximum term of imprisonment of twenty years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Jane Triche Milazzo has set sentencing for May 25, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Metairie Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RANDOLPH B. MARTIN, age 39, of Metairie, pled guilty today to a one-count Bill of Information with violation of the Federal Gun Control Act.
According to the court documents, Special Agents of the United States Secret Service ("USSS") investigated an allegation of access device fraud involving MARTIN. Consequently, on April 18, 2012, the agents interviewed MARTIN, who denied that he was involved in the fraud as he was authorized to use the access device, and he consented to the search of his residence. The agents conducted a search at his residence located in Metairie, Louisiana. They found and seized the Hi Point Firearms Model CF380, .380 ACP Handgun inside the residence in MARTIN’s bedroom. On April 28, 1995, MARTIN was adjudicated guilty of burglary by the Superior Court of Gwinnett County, Georgia. Based on this adjudication, MARTIN was prohibited by federal law from possessing a firearm.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Jane Triche Milazzo set sentencing on July 20, 2017.
Acting U.S. Attorney Evans praised the work of the United States Secret Service, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Loan A. "Mimi" Nguyen is in charge of the prosecution.
Man Sentenced to 10 Years in Prison for Enticement of A Minor for Unlawful Sexual ActivityRead the Press Release
SAN JUAN, P.R. – On Tuesday, April 18, 2017, United States District Court Juan Pérez-Giménez sentenced thirty-eight (38) year-old Edison José Díaz-Carreras, to ten (10) years in prison for attempting to coerce and entice an individual whom he believed to be a thirteen (13) year-old female minor but was in fact an undercover agent.
The events occurred in December 2015, when Díaz-Carreras sent the minor sexually explicit videos and images, through electronic communications, and stated his desire to take the minor to a motel to engage in sexual activity. As part of the conversations, Díaz-Carreras described in detail the sexually explicit acts that he wanted to perform with the minor.
On April 15, 2016, Homeland Security Investigations Agents arrested defendant Díaz-Carreras, on an arranged location where Díaz-Carreras was going to pick up the minor to take her to the motel.
“We will continue our ongoing efforts to investigate and prosecute those use electronic communications to entice minors to engage in illegal sexual acts,” said U.S. Attorney Rosa E. Rodriguez-Velez.
Assistant United States Attorney Elba Gorbea handled the criminal prosecution.
Lynwood Man Sentenced to 18 Months for Pocketing Bribes in Exchange for Allowing Food Service Workers to Bypass Sanitation Training and TestingRead the Press Release
CHICAGO — A Lynwood man has been sentenced to 18 months in federal prison for pocketing bribes in exchange for allowing food service workers to bypass sanitation certification training and testing mandated by the state of Illinois and city of Chicago.
ERNEST GRIFFIN, 71, took bribes from individuals who wanted to obtain Sanitation Certificates from the Illinois Department of Public Health without attending a 15-hour course and taking an exam. In exchange for an approximately $175 bribe, Griffin submitted false certifications and false test results to IDPH to make it appear that a bribe payer had completed the course, passed the exam, and was entitled to the certification. Griffin’s bribery scheme lasted from approximately 2008 until January 2015, when he was confronted by agents of the Federal Bureau of Investigation.
Griffin pleaded guilty last year to one count of federal program bribery. U.S. District Judge Manish S. Shah imposed the 18-month sentence Wednesday in federal court in Chicago. Judge Shah also fined Griffin $5,000.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI.
“Defendant’s certificates-for-bribes scheme was a serious abuse of the public trust,” Assistant U.S. Attorney Maureen E. Merin argued in the government’s sentencing memorandum. “Defendant’s scheme not only potentially caused physical harm to members of the public, but also chipped away at the confidence that the public has in the ability of our government to enforce laws and regulations designed to protect the public health."
The state of Illinois and the city of Chicago require that food service establishments have a person on site at all times who holds an Illinois Food Service Sanitation Manager Certificate. In order to obtain the certificate, the IDPH required that individuals take an IDPH-approved 15-hour course and pass an IDPH exam. The course included instruction on food-borne illnesses, personal hygiene, food safety, pest control, proper cleaning and sanitizing procedures, and the prevention of food contamination. Griffin was authorized by the IDPH to teach the course and to administer the exam.
Lexington Resident Sentenced for Receiving Child PornographyRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Scott Eric Fernquist, age 22, of Lexington, South Carolina was sentenced in federal court in Columbia, South Carolina, for Receiving Child Pornography, a violation of 18 U.S.C. § 2252A(a)(2) and (b)(1). United States District Judge Mary Geiger Lewis of Columbia sentenced Fernquist to 10 years imprisonment, $4,000 restitution, and 25 years of Supervised Release. During his term of supervised release, Fernquist will be required to register as a sex offender, attend sex offender treatment, refrain from contact with children or use the internet without supervision, and submit to random polygraph examinations.
Evidence presented at the change of plea hearing established that Fernquist was trading child pornography on the internet in 2013 from April to June.
The case was investigated by agents of the Lexington Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Lafayette tax preparer pleads guilty to making, filing a false tax returnRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lafayette tax preparation business owner pleaded guilty Wednesday to filing a false tax return and not paying more than $350,000 in taxes owed.
Kevin Dalcourt, 49, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of making and subscribing a false tax return. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Kevin Dalcourt was a tax preparer who owned and managed Kevin’s Tax Service in Lafayette. He was incarcerated in 2010 on non-tax related state charges, but he continued to manage his tax preparation business. He trained his staff and managed his business prior to his incarceration to use false information in customer tax returns to increase the amount of the customers’ returns. The defendant’s wife, Tamiko Dalcourt, assisted in running the company from 2010 to 2013, while her husband was in prison. Tamiko Dalcourt pleaded guilty to a misdemeanor charge of failing to file the couple’s 2012 joint tax return. Kevin’s Tax Service was highly profitable, but Kevin Dalcourt did not report his income to avoid paying taxes for tax years 2009 to 2011. In that time he avoided paying an estimated total of $356,426.78 in taxes for those three years.
Kevin Dalcourt faces three years in prison, one year of supervised release, restitution and a $250,000 fine. The court set a July 21, 2017 sentencing date. Tamiko Dalcourt pleaded guilty on March 23, 2017 to one count of willful failure to file a return, supply information or pay tax. She faces one year in prison, one year of supervised release and a $100,000 fine. The court did not set a sentencing date for Tamiko Dalcourt.
The IRS conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Justice Department Secures the Denaturalization of a Senior Jihadist Operative Who Was Convicted of Terrorism in EgyptRead the Press Release
On April 19, Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia entered an order that revoked the naturalized U.S. citizenship of a confessed al-Qaeda operative, restrained and enjoined him from claiming any rights, privileges, or advantages of U.S. citizenship and ordered him to immediately surrender and deliver his Certificate of Naturalization and any other indicia of U.S. citizenship to federal authorities, the Justice Department announced.
“The Justice Department is committed to protecting our nation’s national security and will aggressively pursue denaturalization of known or suspected terrorists,” said Attorney General Jeff Sessions. “This case demonstrates the Department’s commitment to using all tools at its disposal, both criminally and civilly, to strategically enforce our nation’s immigration laws and to disrupt international terrorism. I congratulate the aggressive and effective investigation and prosecution by the Department of Justice team. We will protect our national security and our borders, and when we identify individuals tied to foreign terrorist organizations who procured their U.S. citizenship by fraud, we will initiate denaturalization proceedings - whether you reside here or abroad - and ensure you are denied entry into the United States.”
Khaled Abu al-Dahab, 57, an Egyptian-born naturalized U.S. citizen and former Silicon Valley car salesman is a confessed member of the Egyptian Islamic Jihad (EIJ) terrorist organization. Al-Dahab admitted to attending a training camp near Jalalabad, Afghanistan, where he received military-style training and taught foreign fighters to fly hang gliders in preparation for terrorist attacks. Moreover, al-Dahab told the FBI that, during the period in which he was supposed to establish the good moral character to naturalize under the Immigration and Nationality Act, he operated a communications hub for EIJ operatives out of his Santa Clara, California apartment. He facilitated the transfer of fraudulent passports, documents, money and other items by, between and among EIJ members, and researched communications devices and helicopter piloting at the direction of EIJ leadership. Al-Dahab’s communication hub materially assisted in the perpetration of terrorist attacks in Egypt and Pakistan.
Additionally, al-Dahab admitted to recruiting Islamic Americans into the al-Qaeda terrorist organization during his 12-year residence in California. Al-Dahab told the investigators that Osama bin Laden was eager to recruit American citizens of Middle Eastern descent because their U.S. passports could be used to facilitate international travel by al Qaeda terrorists, and that bin Laden personally congratulated him for this work. Al-Dahab was naturalized as a U.S. citizen on Feb. 7, 1997. Upon departing the United States sometime in 1998, al-Dahab was arrested by Egyptian authorities. He was tried, convicted and sentenced to 15 years in prison for terrorism related offenses.
On April 8, 2015, the United States filed a civil action seeking the revocation of al-Dahab’s naturalized U.S. citizenship on the grounds that he illegally procured his citizenship on account of his false written statements and testimony during his naturalization proceedings regarding his current and past addresses; employment history; travel outside the United States; marital history; prior false testimony; prior claims of U.S. citizenship; commission of crimes for which he had not been arrested; and membership in or association with EIJ, as well as his affiliation with an organization that advocated terrorism. The United States also alleged al-Dahab should also be denaturalized because he procured his citizenship by concealment of a material fact or by willful misrepresentation due his concealment of these matters. The United States obtained the district court’s permission to serve the complaint on al-Dahab in Egypt via Facebook and electronic mail.
“The Department’s Office of Immigration Litigation – District Court Section will continue to pursue denaturalization proceedings against known or suspected terrorists who procured their citizenship by fraud,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The U.S. government is dedicated to strengthening the security of our nation and preventing the exploitation of our nation’s immigration system by those who would do harm to our country.”
Under the Immigration and Nationality Act, a naturalized U.S. citizen’s citizenship may be revoked, and his certificate of naturalization canceled, if the naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.
This case was investigated by the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS) and the FBI. The litigation was handled by Christopher W. Dempsey, Chief of the National Security and Affirmative Litigation Unit within OIL-DCS, with substantial assistance by FBI Special Agent Rami G. Nimri.
Jury Convicts Newark Man of Receiving, Possessing Child PornographyRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Shawn P. Parrish, 38, of Newark, Ohio, of receiving and possessing child pornography. Parrish had been previously convicted of an offense involving aggravated sexual abuse, sexual abuse or abusive sexual contact of a minor.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin, Franklin County Prosecutor Ron O’Brien and other members of the Franklin County Sheriff’s Office Internet Crimes Against Children (ICAC) Task Force announced the verdict reached today, which was returned following a trial that began on April 17 before U.S. District Judge Algenon L. Marbley.
According to court documents and testimony, investigation of a peer-to-peer file-sharing network led investigators to Parrish’s residence when they discovered child pornography being uploaded to an IP address there. While executing a search warrant at his Newark residence on August 30, investigators found numerous images of a 12-year-old girl on Parrish’s phone.
Forensic evidence obtained from Parrish’s phone and the victim’s phone indicates that Parrish sent himself videos of the victim displaying her nude pubic area and that he received those videos via Facebook Messenger and thereafter created still images on his phone from the videos.
Parrish had previously been convicted in North Carolina in 1998 for Indecent Liberties with a Child and had been sentenced to 16-20 months in prison.
Receipt of child pornography in this case is punishable by a range of 15 to 40 years in prison because of Parrish’s prior conviction. Likewise, because of the prior conviction, possession of child pornography in this case includes a potential sentence of 10 to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the Franklin County ICAC Task Force, as well as Assistant United States Attorneys Heather A. Hill and Special Assistant U.S. Attorney Jennifer M. Rausch, Director of the Franklin County Special Victims Unit, who are prosecuting the case.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer-facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office
Ohio ICAC
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Westerville Police Department
Hilliard Police Department
Franklin County Prosecutor's Office
Homeland Security Investigations (HSI)
Ohio Attorney General’s Office (BCI)
The Ohio State University Police Department
Upper Arlington Police Department
Circleville Police Department
Pickaway County Sheriff’s Office
Delaware County Sheriff’s Office
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Jury Convicts Federal Inmate of Assaulting Fellow Inmate in Lassen County PrisonRead the Press Release
SACRAMENTO, Calif. — A federal jury today found an inmate at the Federal Correctional Institution at Herlong guilty of an assault on another inmate that resulted in serious bodily injury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 25, 2015, Willie James McNeal, 60, attacked another inmate at FCI Herlong, causing multiple fractures of the bones in his face. The victim required two surgeries, and experienced extreme pain, as well as disfigurement and impairment of his nasal and breathing functions. Two surveillance videos documented the assault. The videos showed that McNeal, after speaking briefly with the victim, punched him near his right eye. McNeal continued to punch the victim multiple times in the forehead before tossing the inmate onto the concrete floor.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons.
U.S. District Judge Garland E. Burrell Jr. is scheduled to sentence McNeal on July 14, 2017. McNeal faces a maximum statutory penalty of up to an additional 10 years in prison and a $250,000 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.
Jamestown Man Sentenced for Unlawfully Possessing Firearms and Ammunition as Convicted FelonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Raymond VanBuskirk, 45, of Jamestown, NY, who was convicted of unlawfully possessing firearms and ammunition as a convicted felon, was sentenced to six months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that in May 2016, the defendant moved two rifles, one shotgun, and over one thousand rounds of .223 caliber ammunition from his home to another location for safekeeping. VanBuskirk retained a third rifle at his home, which was recovered by federal agents on June 29, 2016. The defendant has a prior New York State felony conviction for sale of a controlled substance and was prohibited from legally possessing of firearms and ammunition.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent-in-Charge Ashan Benedict; the Federal Bureau of Investigation, under the direction of Special Agent-in- Charge Adam S. Cohen; and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Jacksonville Gang Member Sentenced to More Than Twelve Years for Selling A Child for SexRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard today sentenced Antwan Harper, a/k/a “Pappy” (22, Jacksonville) to 12 years and 6 months in federal prison for sex trafficking a child. The Court also ordered him to serve a five-year term of supervision after his release from prison, and to register as a sex offender. He pleaded guilty on November 10, 2016.
According to court documents, in December 2015, Harper met a 15-year-old girl and advertised her for prostitution on the Internet. He accepted payment for the girl to perform sexual acts with his associates and fellow gang members. Harper is a documented member of the PYC street gang. On December 18, 2015, he was arrested and the victim was recovered by law enforcement.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco Firearms and Explosives, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Individual Sentenced for His Participation in Extortion SchemeRead the Press Release
SAN JUAN, P.R. – On April 20, 2017, defendant Xavier González-Calderon was sentenced by United States District Court Judge Pedro A. Delgado-Hernández to serve a term of imprisonment of 41 months as to counts 24 and 25 of the indictment to be served concurrently with each other, 3 years of supervised released as to each count to be served concurrently with each other and a restitution in the amount of $408,208.42 for his participation in an extortion scheme, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Defendant Xavier González-Calderon was indicted on December 2, 2015 along with 9 other co-conspirators including Anaudi Hernandez-Perez. González-Calderon was the Administrator for the House of Representatives for the Commonwealth of Puerto Rico and as the administrator, he had the authority to enter binding contracts on behalf of the House of Representatives.
On August 9, 2016, defendant Xavier González-Calderon plead guilty to Conspiracy to Commit Wire Fraud (Count 24 of the indictment) and Intentional Misapplication of Property by Agent of an Organization Receiving Federal Funds (Count 25 of the indictment).
The case was investigated by the FBI’s San Juan Division and prosecuted by First Assistant U.S. Attorney Timothy Henwood and José Capó Iriarte, Chief of the Criminal Division.
Illinois Resident Found Guilty Following Sex Trafficking TrialRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on April 20, 2017, Anthony Donte Collier, aka Koleone the Great, 29, Illinois, was found guilty following an 11 ½ day jury trial of Conspiracy to Engage in Sex Trafficking, Sex Trafficking of a Child, and four (4) Counts of Sex Trafficking.
This case came to the attention of law enforcement after Collier’s state probation officer discovered an image on Collier’s Facebook page depicting a young woman on her knees, dressed in lingerie, with a dog collar around her neck attached to a leash, which was held by Collier. Law enforcement learned that Collier was frequenting hotels with that same woman depicted in the image and subsequently obtained a search warrant for Collier’s cell phone, which contained images of several women, including a 17-year-old juvenile girl. During the forensic examination of the cellphone, law enforcement found that the same images located on Collier’s cellphone were also seen on backpage.com under the “Escort” section. The exam further revealed that the cellphone was utilized to purchase Bitcoins, which were ultimately used to purchase advertisements on backpage.com; the ads depicted the same women/photos. Backpage.com is an online classified advertising company, which Collier utilized to advertise the women for sex.
Victims were subsequently identified and interviewed, during which time they disclosed that Collier assaulted them, including urinating on one of the victims, to compel the victims to engage in commercial sex acts. The sex acts occurred in hotels as well as private residences located in both Moorhead and Fargo. A total of five victims were identified and interviewed as part of this case.
“Anthony Collier trafficked five victims into sexual slavery, including a 17 year old girl. His actions have forever changed the lives of these victims,” said Special Agent in Charge Alex Khu of HSI St. Paul. “But they and the people of the community can take some measure of comfort knowing that he is facing a lengthy prison term. HSI is proud of the work we’ve accomplished with our local law enforcement partners and the North Dakota Bureau of Criminal Investigation.”
US District Judge Ralph R. Erickson has set sentencing for July 24, 2017, at 10:00 AM, in the US District Court Fargo.
This case was investigated by the Moorhead Police Department, Department of Homeland Security - Homeland Security Investigations, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorneys Jennifer Puhl and Brett Shasky prosecuted this case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consist of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, ND BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
The NDHTTF includes representatives from Youthworks, the Children’s Advocacy Center, the Domestic Violence Crisis Center, Lutheran Social Services, the ND Association of Counties, a Force to End hUman Sexual Exploitation (FUSE), a survivor of human trafficking, First Nations Women’s Alliance (FNWA), and the Department of Homeland Security - Homeland Security Investigations (HSI).
Honduran National Pleads Guilty to Illegal Re-Entry and Gun PossessionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that REYNALDO BRAN FONSECA, age 36, a citizen of Honduras, pled guilty today to a three-count Indictment charging him with illegal reentry of a removed alien and possession of firearms by an illegal alien.
According to court documents, FONSECA reentered the United States after he was previously deported on November 5, 2010. The Indictment also alleges that FONSECA illegally possessed a Colt .357 revolver on February 22, 2016 and a Glock semi-automatic pistol on April 7, 2016.
FONSECA faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. On the weapons possession, FONSECA faces a maximum term of imprisonment of ten years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Mary Ann Vial Lemmon set sentencing for July 20, 2017.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hartford Gang Member Sentenced to 5 Years in Federal Prison for Selling Drugs, FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FELIX JIMENEZ, also known as “P.R.,” 32, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for selling heroin, crack cocaine and firearms.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that JIMENEZ, a member of Los Solidos, was distributing heroin and crack cocaine to street-level dealers, and selling the drugs to his own customers. A wiretap also revealed that JIMENEZ possessed and sold firearms.
In May and June 2015, investigators conducted controlled purchases of two handguns and two rifles, and numerous rounds of ammunition, from JIMENEZ.
JIMENEZ has been detained since his arrest on June 15, 2015. On October 24, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
JIMENEZ’s criminal history includes nine felony convictions, including convictions for possession and sale of narcotics, violation of a protective order, risk of injury to a minor, and larceny.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Hammond Man Sentenced to 300 Months ImprisonmentRead the Press Release
HAMMOND – Acting United States Attorney for the Northern District of Indiana Clifford D. Johnson announced that Mark Nagel, 37, of Hammond, Indiana was sentenced before Hammond District Court Judge Rudy Lozano after pleading guilty to two counts of producing child pornography.
Nagel was sentenced to 300 months imprisonment followed by 10 years of supervised release.
According to documents filed in this case, in September 2015, Nagel met a 17-year old girl via an online dating site and subsequently persuaded her to send him sexually explicit videos and photos of herself. In February 2016, Nagel met a 13-year old girl via the same website and engaged in a sexual relationship with her, during which he engaged in sex acts and took sexually explicit videos and photos of the girl.
This case was the result of an investigation by the Federal Bureau of Investigation and Indiana State Police. This case was being handled by Assistant United States Attorney Abizer Zanzi.
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Gloucester Seafood Executive Pleads Guilty to Tax ChargeRead the Press Release
BOSTON – A senior sales executive at a seafood processing company in Gloucester pleaded guilty today in federal court in Boston to tax fraud.
Richard J. Pandolfo, 71, of North Andover, pleaded guilty to one count of making and subscribing a false tax return. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2017. Pandolfo was indicted by a federal grand jury in June 2016.
From 2008 to 2012, Pandolfo received substantial supplemental income for his work at a seafood processing company in Gloucester from the company’s president. Some of those payments were made directly to Pandolfo or to his spouse, but Pandolfo did not report or pay taxes on any of those payments. Other payments were made by a corporate entity controlled by the seafood processor’s president to a purported interior design company set up in the name of Pandolfo’s spouse. Pandolfo did report that income, but improperly deducted personal expenses from that income as business expenses, thereby improperly reducing the taxes he owed. In total, Pandolfo failed to pay $25,879 in taxes, which, as part of the plea, he agreed to pay in restitution to the Internal Revenue Service.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorneys Stephen E. Frank and Brian A. Pérez-Daple of Weinreb’s Economic Crimes Unit are prosecuting the case.
Former office manager of Mountain State Justice sentenced to over four years in federal prison for embezzling more than $1.5 million and tax evasionRead the Press Release
CHARLESTON, W.Va. – The former office manager of Mountain State Justice, Inc., was sentenced today to four years and six months in federal prison, announced United States Attorney Carol Casto. Kim Cooper, 55, of St. Albans, pled guilty to wire fraud and tax evasion on January 23, 2017, admitting that she had embezzled over $1.5 million from Mountain State Justice and evaded the payment of income taxes owed to the Internal Revenue Service.
Cooper began working in the late 1990’s in the Charleston office of Mountain State Justice, Inc., a non-profit organization that provides legal services for indigent and low-income West Virginia residents in civil cases. Cooper became the office manager and her duties included overseeing the daily operations of the Charleston office and making deposits of checks in Mountain State Justice’s bank accounts. In late June 2004, she opened an account at WesBanco Bank in the name of Mountain State Justice, which no one else at Mountain State Justice knew about. She began stealing checks made out to Mountain State Justice that were payment for attorneys’ fees and deposited the stolen checks in the secret WesBanco account. Cooper wrote checks from the secret account, payable to a close family member, with notations that made the checks appear to be payment for legitimate business expenses of Mountain State Justice. Cooper endorsed those checks by forging the signature of the close family member, and then deposited the checks in another account at a different bank. Cooper then transferred the stolen funds and used them to pay rent, make car payments, make credit card payments, and pay for other personal expenses.
Cooper also hid her crime by omitting these stolen checks from the cash log used to record all incoming monies and by hiding all incoming mail from WesBanco. She perpetuated her fraud scheme by sending false income statements to the board of directors of Mountain State Justice that underreported the income of the organization. Finally, Cooper evaded income tax she owed on the embezzled money. Cooper was able to keep this up for almost 12 years before the scheme finally ended in late March 2016, when she was interviewed by federal law enforcement agents. Her employment was terminated shortly thereafter.
The FBI and the IRS - Criminal Investigation division conducted the investigation. First Assistant United States Attorney Philip H. Wright is in charge of the prosecution. United State District Judge John T. Copenhaver, Jr., imposed the sentence.
Judge Copenhaver deemed the offense “particularly egregious” because Cooper committed this crime after she was convicted in Wood County in the late 1990’s for a financial crime that also involved embezzlement. Judge Copenhaver commented on the need to deter others from engaging in similar conduct as he sentenced her to the upper end of the sentencing guideline range, which was 46 to 57 months.
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Former Starkey Executive Pleads Guilty to Tax EvasionRead the Press Release
Acting United States Attorney Gregory G. Brooker announced the guilty plea of JEFFREY LEE LONGTAIN, 58, for filing a false tax return. LONGTAIN, who was charged on March 1, 2017, by felony information, pleaded guilty before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minn.
According to the defendant’s guilty plea, from 2006 until his termination in 2015, LONGTAIN was the Chief Operating Officer and President of Northland Hearing Centers, Inc. (“Northland”), a subsidiary of Starkey Laboratories (“Starkey”) that was responsible for acquiring and managing retail hearing aid facilities. During this time, LONGTAIN reported to Starkey’s President, Jerome Ruzicka, and worked closely with Starkey’s Chief Financial Officer, Scott Nelson.
According to the defendant’s guilty plea and documents filed in court, in 2002, Starkey’s principal owner, William Austin, created Northland US, LLC for the purpose of acquiring and operating retail hearing aid establishments. In 2006, without Austin’s knowledge, Ruzicka and Nelson surreptitiously transferred Northland LLC’s assets to a new entity they controlled, Northland Hearing Centers, Inc. They forged Austin’s signature to complete the transfer of assets, later awarded themselves restricted stock, and ultimately paid themselves and LONGTAIN approximately $15 million in exchange for terminating the restricted stock grants.
According to the defendant’s guilty plea and documents filed in court, in 2014, when Ruzicka, Nelson and LONGTAIN realized they had not taken enough money to cover their entire tax obligations, took additional money from the company. LONGTAIN told Nelson that he needed $115,000 to cover his additional tax payments. In reality, LONGTAIN only needed $85,000 but asked for the higher amount so he could keep $30,000 for himself. Nelson and LONGTAIN disguised the $115,000 payment as a loan but, as LONGTAIN knew, the payment was income that should have been reported on his 2014 tax returns.
According to the defendant’s guilty plea and documents filed in court, between 2010 and 2015, LONGTAIN purposely failed to report money that he received from Starkey and Northland, as well as several companies that provided services to Starkey and Northland, as income on his tax returns. For example, Audiometrix, LLC and Socio, LLC, two companies that provided services to Starkey and/or Northland, made payments totaling approximately $182,915 to or on behalf of LONGTAIN. Approximately $77,315 of the total amount was paid directly to LONGTAIN and $105,600 was paid to Oregon Golf Club to offset LONGTAIN’S golf club dues and fees. LONGTAIN knew that receipt of these payments was a conflict of interest given his position at Northland. To avoid paying additional taxes, LONGTAIN purposely concealed the golf club payments from his tax preparer.
This case is the result of an investigation conducted by the FBI, Criminal Investigation Division of the IRS, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorneys Lola Velazquez-Aguilu and Benjamin Langner.
Defendant Information:
JEFFREY LEE LONGTAIN, 58
West Linn, Ore.
Convicted:
- Making and Subscribing a False Return, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Local Teacher Pleads Guilty to Child Pornography ChargesRead the Press Release
HOUSTON – A 51-year-old Houston man has been convicted of receipt and possession of child pornography, announced Acting U.S. Attorney Abe Martinez.
The investigation into Jason Dion Johnson began Dec. 6, 2015, as the FBI sought to identify persons using peer-to-peer software to traffic in child pornography. Agents soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Johnson was identified as the person linked to that computer.
Law enforcement executed a search warrant May 6, 2016, at Johnson’s Houston residence, at which time investigators found a number of videos and images of prepubescent girls being sexually exploited. Additionally, agents allegedly found several unmarked VHS tapes which revealed the presence of what appeared to be a hidden camera video from a changing area within a school. On these tapes, there are young female students who are observed to be entering the camera’s field of view and removing their clothing while in the process of changing into a uniform.
At the time of the investigation, Johnson was employed as a 7th grade Social Studies teacher at Beechnut Academy in Houston. However, authorities do not believe the footage was taken at that school.
U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for July 6, 2017. At that time, Johnson faces a minimum of five and up to 20 years imprisonment for the receipt of child pornography as well as up to 10 years for possession of child pornography.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former J.E. Dunn Employee, Two Business Owners Indicted for $840,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a former employee of J.E. Dunn Construction Company along with the owners of two firms charged with paying illegal kickbacks have been indicted by a federal grand jury for an $840,400 fraud scheme.
John L. Kirwin, 45, of Lee’s Summit, Mo., Brian A. Newkirk, 49, of Houston, Texas, and Debi K. Jordan, 52, of Tulsa, Okla., were charged in a 38-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, April 18, 2017. The indictment was unsealed and made public today following Kirwin’s arrest.
Kirwin was employed by J.E. Dunn Construction Company as an internal recruiter from August 2013 through April 13, 2016. His duties included finding qualified candidates for job vacancies. Kirwin worked with outside employment recruitment agencies to locate and employ J.E. Dunn personnel for construction projects across the country. If the recruit was actually hired, J.E. Dunn paid a fee to the outside employment recruitment agencies.
Kirwin hired Newkirk’s firm, Search Group International, and two firms owned by Jordan, Recruitegist and Sourcegist, to locate suitable employees for J.E. Dunn. The federal indictment alleges that Newkirk and Jordan paid a total of $414,001 in secret illegal kickbacks to Kirwin. On numerous occasions, the indictment says, the employee designated by the recruitment firms did not become an employee of J.E. Dunn. In those instances, the recruitment firms operated by Jordan and Newkirk were not entitled to any payments.
According to the indictment, J.E. Dunn paid Search Group International a total of $427,450 for recruitment services from May 2014 through March 15, 2016. The owner of the firm allegedly paid kickbacks to Kirwin totaling $245,285. J.E. Dunn paid Recruitegist and Sourcegist a total of $372,950 from November 2013 through Sept. 30, 2015. The owner of those firms allegedly paid kickbacks to Kirwin totaling $168,716.
The federal indictment charges Kirwin and Newkirk with 18 counts of wire fraud related to wire payments made by J.E. Dunn to Search Group International that involved kickbacks paid to Kirwin. The indictment charges Kirwin and Jordan with 20 counts of mail fraud related to checks that were mailed by J.E. Dunn to Recruitegist and Sourcegist that involved kickbacks paid to Kirwin.
J.E. Dunn’s Code of Business Ethics and Conduct absolutely prohibited Kirwin from accepting payment of cash from suppliers or others who do business, or have expressed an interest in doing business, with J.E. Dunn.
The indictment also contains a forfeiture allegation, which would require Kirwin, Newkirk and Jordan to forfeit to the government $800,400, which represents the proceeds of the fraud scheme.
Larson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Postal Inspection Service, Office of Inspector General.
Former Fire Chief of the U.S. Air Force Sentenced to Federal Prison for Procurement Violations and Wire FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 19, 2017, James E. Podolske Jr. (age: 59) of Panama City, Florida, was sentenced to 14 months in federal prison and ordered to pay a $5,000 fine for violations of Title 18 United States Code 1343, wire fraud, and the Procurement Integrity Act contrary to Title 41 United States Code, Section 2102(a). In addition to the prison term and fine, Podolske was ordered to pay almost $50,000 in restitution to the charities from whom he stole.
Pursuant to the terms of a plea agreement, Podolske Jr. acknowledged that while an official with the U.S. Air Force, he knowingly disclosed defense department contract bid information to give a competitive advantage to a corporate defense contractor.
Podolske Jr. further acknowledged that between 2009 and 2013, he used his position as Chief of Air Force Fire Services to defraud approximately 25 business entities or individuals out of tens of thousands of dollars per year intended for charity. Podolske Jr. organized an awards banquet and “charity” golf outing to coincide with a conference sponsored by the International Association of Fire Chiefs. Podolske Jr. admitted that he actively solicited donations for his golf outing from contractors and subcontractors who sought to do business with the Air Force and Department of Defense, including several in the Eastern District of Wisconsin. Some of the donations were forwarded to charities as intended, many donations, however, were deposited in Podolske Jr.’s personal bank account. He acknowledged using these charitable donations for his personal expenses, including to pay off credit card debt, pay for vacations, and for gambling at Gulf Shore casinos.
Chief District Judge William C. Griesbach described Podolske’s crimes as “as a very serious breach” of the public trust placed in Podolske as the Air Force Fire Chief and as a government employee. He noted, however, that no one but Podolske was responsible for his “tragic downfall.” Judge Griesbach questioned why a high-level civilian employee in the federal government who was well compensated felt the need to steal from the charities over so many years.
This case was investigated by the U.S. Air Force Office of Special Investigations, the Federal Bureau of Investigation, the Defense Criminal Investigation Service, and the Naval Criminal Investigation Service. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For further information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Former Byrnes Mill Police Chief Indicted on Wire Fraud ChargesRead the Press Release
St. Louis, MO – Michael Thomas Smith, 47, of Cedar Hill, MO, the former Chief of Police of Byrnes Mill, Missouri, was indicted on four counts of wire fraud as part of a scheme to steal from criminal suspects and defraud Byrnes Mill and Jefferson County of his honest services.
According to the Indictment, Smith took thousands of dollars from three different suspects during 2013 and 2014 and failed to note the seized funds in police reports or in the departmental evidence system. The Byrnes Mill police department had no records of the funds when the suspects subsequently asked about them. In furtherance of the scheme, Smith is alleged to have sent four interstate wire transmissions to the National Crime Information Center (NCIC) in West Virginia.
Smith surrendered to authorities this morning and was released on bond. If convicted, Smith faces up to 20 years imprisonment on each of four counts of wire fraud, a $250,000 fine or both. Restitution for the victims will also be sought.
The case was investigated by the FBI – St. Louis Division with assistance from the Jefferson County Prosecuting Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Fentress County Sheriff Facing Federal Corruption and Civil Rights ChargesRead the Press Release
Charles Cravens, 47, the Sheriff of Fentress County, Tennessee, was charged today in a criminal Information with 3 counts of honest services fraud and one count of deprivation of rights under color of law, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. Joining Smith in the announcement were Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Michael Gavin, Special Agent in Charge of the Memphis Division of the FBI; and Jared Effler, District Attorney General of the Eight Judicial District in Tennessee.
“Our citizens deserve public officials who serve their constituents, not their own personal interests,” said Acting U.S. Attorney Jack Smith. “I promise you that elected officials in our district who abuse their authority and take advantage of the trust placed in them by the folks who put them in office will be brought to justice. The U.S. Attorney’s Office and our law enforcement partners serve the people of the entire district, including, not just Nashville, but also rural areas like Fentress County. We will enforce our nation’s laws equally to protect all our citizens of against abuses of power wherever they occur.”
According to the allegations contained in the charging document, Charles Cravens was the Sheriff of Fentress County and therefore was the chief law enforcement officer of the county. In addition to other law enforcement duties, Sheriff Cravens was responsible for the operation of the Fentress County Jail in Jamestown, Tenn.
The information alleges that in July 2016 Inmate 1 was summoned into Craven’s office where she had unprotected sex with the sheriff.
The Information also alleges that in August 2016, Cravens discussed having sex together with Inmate 1 and Inmate 2 and they formulated a plan to leave the jail together. Cravens subsequently drove these inmates to a vacant trailer where they all engaged in unprotected sex. Cravens maintained a sexual relationship with these inmates for several months, until they were released from jail, the last being in February 2017.
The Information also alleges that in February 2017, Craven’s drove Inmate 3 outside of Fentress County to visit a relative. On the way back to the jail, Craven’s raised the subject of sex and the inmate agreed and had unprotected sex with the Sheriff in his vehicle. The Information alleges that Cravens had sex with this inmate on at least one other occasion.
The Information alleges that in exchange for the sexual relationships with these inmates, Cravens used his position as sheriff to provide additional benefits to these inmates. These extra benefits included the inmates being transported personally by the sheriff from the jail to visit relatives; the inmates being allowed to go outside of the jail to smoke cigarettes; and the sheriff providing money to relatives of the inmates for deposit into their jail commissary accounts.
To request the special privileges, the inmates called Sheriff Cravens personal cell phone and left recorded messages through the jail’s telephone system, operated by Securus Technologies, Inc. Through the use of this system, payment is required when inmates make outgoing calls, however, the system allowed for an approximate 20-second message to be left without incurring charges. The Information alleges that between August 24, 2016, and March 1, 2017, Inmate 1 called Cravens 332 times; Inmate 2 called Cravens 51 times; and Inmate 3 placed 349 calls to Cravens’ phone.
Finally, the Information alleges that on November 13, 2016, Cravens and Inmate 4 were in an open area within the jail and Cravens kicked Inmate 4 twice in the backside and placed him in a headlock while another correctional officer handcuffed him. After the inmate was handcuffed, Cravens struck him twice in the back of the head with his fist.
“The citizens of Fentress County, and all of Tennessee, deserve elected officials who work in the public’s best interest, especially from those officials who are sworn to uphold the law,” says TBI Director Mark Gwyn. “We are grateful to have the cooperation and support of our federal and state partners in investigating officials who abuse that public trust.”
“I am grateful to our law enforcement partners for their swift response and assistance to the citizens of Fentress County,” said District Attorney General Jared Effler. “The District Attorney’s Office always stands ready to provide any assistance necessary to investigate and prosecute matters involving public corruption.”
If convicted, Cravens faces a maximum of 20 years in prison for each count of honest services fraud and up to one year in prison on the civil rights charge.
Charges brought by an Information are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI; the Tennessee Bureau of Investigation and the District Attorney’s Office for the Eighth Judicial District. The case is being prosecuted by Assistant United States Attorney Katy Risinger and DOJ Trial Attorneys Lauren Bell and Andrew Laing of the Department’s Public Integrity Section.
Federal Jury Finds Laguna Pueblo Man Guilty on Second-Degree Murder ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late yesterday afternoon finding Jeffrey Antonio guilty of second-degree murder. The verdict was announced by Acting U.S. Attorney James D. Tierney, Special Agent in Charge William McClure of District IV of the BIA’s Office of Justice Services, and Bernalillo County Sheriff Manuel Gonzales, III.
Antonio, 35, an enrolled member and resident of Laguna Pueblo, N.M., was indicted on March 23, 2016, on a second-degree murder charge. The indictment alleged that Antonio committed the offense on July 31, 2015, on the Sandia Pueblo Indian Reservation in Bernalillo County, N.M.
Antonio’s trial began on April 17, 2017, and concluded yesterday afternoon when the jury returned a guilty verdict on the sole count of the indictment. The evidence at trial established that on July 31, 2015, Antonio was driving a truck on the Sandia Pueblo Indian Reservation when he swerved into oncoming traffic and crashed head-on into another vehicle, injuring the driver and killing the passenger. Law enforcement officers who responded to the scene of the crash observed a cold four-pack of beer in Antonio’s truck that was missing two cans and noted that Antonio smelled of alcohol. The results of a blood test at a hospital following the crash revealed that Antonio had a BAC of .19.
During the trial, the jury learned that Antonio has two prior convictions for driving under the influence of alcohol; one in 2008 and another in 2011, which required that Antonio complete a first offender program. The program incorporates educational aspects of the risks associated with driving while impaired.
The jury deliberated less than two hours before returning a guilty verdict.
Antonio has been in federal custody since his arrest on March 28, 2016, and will remain detained pending a sentencing hearing, which has yet to be scheduled. At sentencing, Antonio faces a statutory maximum penalty of life in prison.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Bernalillo County Sheriff’s Department. Assistant U.S. Attorneys Joseph Spindle and Michael D. Murphy are prosecuting the case.
Federal Jury Convicts Maryland Man in Stolen Car RingRead the Press Release
ALEXANDRIA, Va. – A Maryland man was convicted today by a federal jury on charges of conspiracy to receive, transport and sell stolen luxury vehicles, and to commit wire fraud.
According to court records and evidence presented at trial, Lamine Camara, 32, of Laurel, Maryland, conspired with Ray Ekobena, who is currently serving time in federal prison for related offenses, to purchase a 2012 Audi A7 and a 2007 Bentley Convertible GTC using the stolen identities of doctors in the area. Camara also assisted Ekobena with the sale of a stolen 2011 BMW 750LI and a Mercedes Benz S550. In order to accomplish the scheme, Camara submitted fraudulent documents to the Maryland Vehicle Authority and acquired fraudulent titles and fraudulent North Carolina temporary vehicle tags.
Camara faces a maximum of five years in prison when sentenced on August 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict. Assistant U.S. Attorneys Kellen S. Dwyer and Nathaniel Smith III are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-1.
Federal Collection Action Against Convicted Fraud Defendants Nets 177-Acre Addition to Pisgah National ForestRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that 177 acres of land have been added to the Pisgah National Forest, as a result of efforts of law enforcement in collaboration with the Carolina Mountain Land Conservancy (CMLC). The land, known as the “Hoot Owl Tract,” was pursued by the Department of Justice in a criminal action.
“The acquisition of 177 acres of land connects approximately 100,000 acres of the Pisgah National Forest with a previously isolated 1,500 acres of national forest land. I want to thank the USDA and the Carolina Mountain Land Conservancy for partnering with my Office to make this transfer possible. As a result of this collaboration, the added acreage of national forest land ensures the protection of viable natural resources. It will also bring enjoyment to visitors for generations to come,” said U.S. Attorney Rose in a statement today.
The action resulted from the 2003 prosecution of Robert and Viki Warren, and others. In that case, the court sentenced the Warrens for their role in a massive crop insurance fraud. As a result of the fraud, the Federal Crop Insurance Corporation administered by the U.S. Department of Agriculture (“USDA”) paid millions of dollars to the conspirators for fraudulent crop damage claims by Warren Farms, including claims related to tomato damage. As part of the sentence, the Court ordered defendants to pay $9,150,603 in restitution to USDA for its losses, as well as a $7.3 million forfeiture money judgment representing the proceeds of the fraud as agreed upon by the parties.
In and around 2015 and 2016, in an effort to collect on the forfeiture money judgment and restitution, law enforcement identified that the Warrens owned the Hoot Owl Tract under the name of a limited liability company known as Mountaintop Farms, LLC. Ultimately, through negotiations with defendants, the United States obtained an agreement for transfer of the land from defendants, through CMLC, to USDA, in partial satisfaction of restitution owed as a result of the fraud.
The Hoot Owl Tract includes trout waters and tributaries to the Mills River, which supply drinking water to residents of Henderson and Buncombe Counties. The deal reached in the criminal case for transfer of the Hoot Owl Tract to USDA protects vital natural resources for this generation and beyond.
In making today’s announcement, the U.S. Rose commended the work of the U.S. Forest Service, and CMLC.
The Civil Division of the U.S. Attorney’s Office represented the United States in the forfeiture action. Assistant U.S. Attorneys Richard Edwards and Don Gast handled the criminal prosecution of the defendants.
Father and Son Charged in $16 Million Health Insurance Fraud SchemeRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas this week charges Terry Lynn Anderson, 66, and Rocky Freeland Anderson, 36, of Dallas, with offenses related to their participation in an insurance fraud scheme, announced John Parker, U.S. Attorney for the Northern District of Texas.
Each defendant is charged with one count of conspiracy to commit health care fraud, ten counts of health care fraud and aiding and abetting and four counts of aggravated identity theft and aiding and abetting. Both defendants will make their initial appearances today before Magistrate Judge David L. Horan.
The indictment alleges that Terry Anderson was the owner of Anfree Incorporated, a Texas corporation that did business as Anderson Optical & Hearing Aids Center (Anderson Optical & Hearing). Terry Anderson co-operated Anderson Optical & Hearing with his son, Rocky Anderson, and both are licensed by the State of Texas as Fitters and Dispensers of Hearing Instruments. From January 1, 2011 through November 8, 2016, the defendants devised and executed a scheme to defraud Blue Cross Blue Shield of Texas (BCBS) by submitting claims for hearing aids that were not needed and, in many cases, not delivered to the BCBS subscriber. To increase the number of claims they could submit to BCBS, the defendants and their coconspirators engaged in fraudulent marketing practices.
For example, the defendants promised BCBS subscribers a free pair of high-end sunglasses or a free pair of prescription eyeglasses in exchange for taking a free hearing test. At the conclusion of these hearing tests, the defendants told subscribers that they had slight to mild hearing loss and required them to sign an order for hearing aids in order to receive the free sunglasses or prescription glasses. The defendants promised subscribers that the hearing aids would be provided to them at no cost, and that Anderson Optical & Hearing would not require the subscriber to pay any applicable copayment, coinsurance, or deductible. The defendants also offered BCBS subscribers $100 gift cards in exchange for referring family members and coworkers for free hearing tests.
The defendants took advantage of BCBS plans offered to employees of American Airlines because prior to 2014, the American Airlines insurance plans administered by BCBS had no maximum limit on the cost of hearing aids and allowed subscribers to obtain hearing aids once per plan year. In 2013, approximately 84.6% of Anderson Optical & Hearing’s total income came from BCBS and 99.7% of the BCBS payments were based on claims submitted for American Airlines employees and their dependents.
The defendants failed to conduct hearing tests that complied with BCBS’s medical policies related to the evaluation of hearing impairment. Many of the hearing tests were conducted in an employee break room at DFW Airport and lasted less than five minutes. The defendants then submitted claims to BCBS for reimbursement for hearing aids before dispensing hearing aids to the subscriber, and in some cases for hearing aids that they never delivered to the subscriber. The defendants kept lists of subscribers who had not received hearing aids despite BCBS having paid the claims. One such list contained 103 names.
The indictment also alleges the defendants falsified patient records, forged patient signatures, and attempted to dispense hearing aids and collect deductibles and coinsurance years after the subscriber was offered a free hearing test and free hearing aids.
In November 2013, BCBS conducted an audit of Anderson Optical & Hearing and requested copies of patient records for certain American Airlines employees and their dependents. On January 6, 2014, the Texas Department of State Health Services-Professional Licensing Unit (Professional Licensing Unit) conducted an investigation regarding a complaint it had received concerning the Andersons. In February 2014, when given the opportunity to respond to the complaint, the defendants submitted several patient records to the Professional Licensing Unit, including some of the same patient records that had been collected by BCBS. The patient records submitted to the Professional Licensing Unit had altered test scores, additional notations, and apparent forged signatures that were not present when the same records were submitted to BCBS in November 2013.
Anderson Optical & Hearing submitted claims to BCBS for hearing aids on behalf of American Airlines employees totaling more than $27 million, the vast majority of which were fraudulent. As a result of these claims, BCBS paid Anderson Optical & Hearing more than $16.7 million.
The indictment includes a forfeiture notice that would require the defendants, if convicted, to forfeit a 300 acre ranch in Bosque County, three vehicles, and more than $3.1 million that was seized from nine financial accounts in December 2015.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The aggravated identity theft counts carry a mandatory statutory penalty of two years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Doug Brasher is prosecuting the case.
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Ex-Police Officer Sentenced in Attempted Entice of Minor CaseRead the Press Release
LAREDO, Texas – A 42-year-old Odessa man and ex-police officer has been ordered to federal prison following his conviction for attempted enticement of a minor, announced Acting U.S. Attorney Abe Martinez. Chad Michael Bennett pleaded guilty March 3, 2016.
Today, visiting U.S. District Judge Keith P. Ellison sentenced Bennett to 120 months in federal prison. The sentence will be immediately followed by 20 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. In addition, the court ordered Bennett to register as a sex offender.
From Dec. 14, 2015, to Dec. 30, 2015, Bennett communicated through cell phone calls, text messages, emails and online chats detailing his intended plans to engage in sexual acts with a girl he thought was a 14-year-old girl. He had placed a Craigslist ad to which an undercover agent responded, claiming to be the mother of the girl and offering her for sexual activity.
On Dec. 30, 2015, Bennett flew from Odessa to Laredo for the purpose of engaging in a sexual act with the girl. He was taken into custody upon his arrival. At the time of his arrest, Bennett was in possession of numerous images of child pornography.
Bennett will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations - Child Exploitation Task Force conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Encino Dermatologist Pays Nearly $2.7 Million to Resolve Allegations He Billed Medicare for Unnecessary Mohs Skin Cancer SurgeriesRead the Press Release
LOS ANGELES – The owner of The Skin Cancer Medical Center in Encino has paid the United States nearly $2.7 million to resolve allegations that he submitted bills to Medicare for Mohs micrographic surgeries for skin cancers that were medically unnecessary.
Dr. Norman A. Brooks, M.D., a dermatologist and surgeon, paid the $2,681,400 settlement on April 10.
The settlement, which was finalized on March 31, resolved allegations in a lawsuit brought by a former employee of The Skin Cancer Medical Center. The settlement was announced today when prosecutors learned that United States District Judge Philip S. Gutierrez had unsealed and dismissed the complaint that was filed under the False Claims Act.
The lawsuit alleged that Brooks falsely diagnosed skin cancer in some of his patients so that he could perform, and bill for, Mohs surgeries.
Mohs surgery is a specialized surgical procedure for removing certain types of skin cancers in specific areas of the body, including the face. The surgery is performed in stages during which the surgeon removes a single layer of tissue which undergoes a microscopic evaluation. The surgeon performs additional stages, if necessary, until all of the cancer is removed.
Given the complexity and time required to perform the procedure, Mohs yields a higher Medicare reimbursement than other procedures used to remove skin lesions.
As part of the settlement, Brooks entered into a three-year Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. Under the Integrity Agreement, Brooks will establish and maintain a compliance program that includes, among other things, mandated training for Brooks and his employees and review procedures for claims submitted to Medicare and Medicaid programs.
The settlement resolves allegations made in a lawsuit filed by former Brooks employee Janet Burke under the qui tam, or “whistleblower,” provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. For her role in the case, Ms. Burke will receive $482,652.
In settling the case, Brooks did not admit liability in the matter.
The matter was investigated by the United States Attorney’s Office and the U.S. Department of Health and Human Services, Office of Inspector General. The settlement was negotiated by Assistant United States Attorney Donald W. Yoo of the Civil Fraud Section.
The settlement resolved United States ex rel. Burke v. Norman A. Brooks, M.D., Inc. et al., CV14-6735.
Eight Individuals Sentenced for Scheme Involving Money Laundering and Drug TraffickingRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced eight individuals for their roles in a money laundering scheme. They were indicted in May 2015.
According to court documents, between May 2012 and January 2013, Michael Rounsville (48, Callahan), Manuel Rodriguez (33, Middleburg), Mollie Bass (33, Jacksonville), Hedar Khlaf (34, Jacksonville), Erik Estrada-Lopez (42, Orange Park), Christian Magliano (27, Miami), Diane Harrison (59, Jacksonville), and Bruce Childs (38, Miami) conspired to launder proceeds gained from the illegal distribution of ecstasy. The scheme involved some of the individuals structuring cash deposits to avoid the filing of a Currency Transaction Report, as required for bank transactions involving more than $10,000 in cash. Two members of the conspiracy sold a Cadillac Escalade, that was traceable to drug proceeds, to an undercover agent for $35,000 cash. They also failed to file the required IRS Form (8300) for cash transactions involving more than $10,000. In addition, three of the individuals conspired to use some of the money from the scheme to purchase 109 pounds of marijuana in California and then transport it to Jacksonville for distribution.
Rounsville, who was an officer with the Jacksonville Sheriff’s Office at the time, unlawfully accessed law enforcement databases to conduct a criminal history and driver license check on the undercover agent. He was found guilty of this offense in furtherance of the money laundering scheme by a federal jury on November 14, 2016, and sentenced to four years’ probation, to include 140 days at a residential reentry center, and 150 hours of community service.
Rodriguez pleaded guilty to conspiracy to commit money laundering on August 2, 2016, and was sentenced to three years and five months in federal prison.
On October 6, 2016, Bass pleaded guilty to conspiracy to distribute marijuana. She was sentenced to time served (about 18 months), plus 3 years of supervised release, to include 4 months at a residential reentry center.
Khlaf pleaded guilty on November 2, 2016, to failing to file a Form 8300. He sentenced to a year and a day in federal prison.
On November 14, 2016, a federal jury found Estrada-Lopez guilty of conspiracy to commit money laundering. He was sentenced to three years of supervised release, to include 120 days of home detention, 150 hours of community service, and a $10,000 fine.
Magliano was sentenced to two years of supervised release, to include six months of home detention. He pleaded guilty to conspiracy to distribute marijuana on October 31, 2016.
Harrison, who is the mother of Mollie Bass, was sentenced to three years of probation. She pleaded guilty on August 31, 2016, to structuring bank transactions to evade the cash transaction reporting requirements.
Childs pleaded guilty on October 20, 2016, and was sentenced to one year of probation and 50 hours of community service for structuring bank transactions to evade the cash transaction reporting requirements.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and the Nevada Highway Patrol. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Doylestown Man Arrested for Committing Eleven Bank RobberiesRead the Press Release
PHILADELPHIA – Richard Boyle, 57, of Doylestown, PA was arrested today by the Federal Bureau of Investigation. On April 19, 2017, a federal grand jury returned an indictment charging Boyle with 11 counts of bank robbery, 10 counts of using or carrying a firearm during the commission of those bank robberies, and 10 counts of money laundering. Boyle stole a total of $495,686 in U.S. currency during the commission of the 11 bank robberies, which occurred in Montgomery and Bucks counties between 2012 and 2016. The indictment further alleged that Boyle laundered a portion of the proceeds of these robberies through his aerial photography business, in an attempt to hide the source of these funds.
The case was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and Fort Washington Resident Agency, in conjunction with the Horsham Township Police Department; Newtown Township Police Department; Lower Makefield Township Police Department; Upper Dublin Township Police Department; Upper Providence Township Police Department; Pennsylvania State Police; Whitpain Township Police Department; Plymouth Township Police Department; Montgomery Township Police Department; Warminster Township Police Department Montgomery County District Attorney's Office; and Bucks County District Attorney's Office. It is being prosecuted by Assistant United States Attorney Robert J. Livermore.
Double A Baseball Player Hector Jomar Ponce- Rijo Arrested on Child Pornography ChargesRead the Press Release
SAN JUAN, Puerto Rico – Today federal authorities arrested Héctor Jomar Ponce-Rijos charging him with child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) conducted the investigation that led to the arrest.
A federal grand jury in the District of Puerto Rico returned a six count indictment against baseball player Héctor Jomar Ponce-Rijos charging him with production of child pornography, sexual enticement of a minor, transportation of a minor with intent to engage in criminal sexual activity and forfeiture allegation related to production of child pornography and sexual enticement and transportation of a minor. Ponce-Rijos was arrested at his residence in Toa Baja by HSI special agents. According to the charging documents, Ponce-Rijos transported a 13-year-old female minor with the intent to engage in sexual activity, made sexually explicit approaches and requested sexually explicit images and videos from the minor. According to the investigation on May 30, 2016, the defendant transported the female minor to a desolated baseball field and had sexual relations with the minor. On two other occassions Ponce-Rijos transported the minor to a motel in the Municipality of Utuado to have sexual relations with her.
“Child pornography will not be tolerated. Our prosecutors and law enforcement partners will continue vigorously investigate and prosecute the abuse that these victims suffer at the hands of these criminals,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
Héctor Jomar Ponce-Rijos is scheduled to appear before U.S. Magistrate Judge Silvia Carreño today for his initial appearance, after which he will be transferred to the Guaynabo Metropolitan Detention Center awaiting a detention hearing.
Assistant U.S. Attorney Elba Gorbea is prosecuting the case. If convicted defendant faces a mandatory minimum term of 15 years in prison. An indictment contains only charges and is not evidence of guilt. Defendant is presumed to be innocent until and unless proven guilty.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 12,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app (link is external) or visit the online suspect alerts page. HSI is a founding member and current chair of the Virtual Global Taskforce (link is external), an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Denver OCEDETF Strike Force Takes Down Mexican Drug Trafficking Organization Responsible for Distributing Large Quantities of Cocaine and MethamphetamineRead the Press Release
The DEA-led Denver OCDETF Strike Force, including the Colorado U.S. Attorney’s Office, DEA and the Aurora Police Department, today arrested multiple defendants throughout Colorado and California on various drug related charges, the Justice Department announced. The arrests were the result of a one year investigation into the inner workings of a Mexican led drug trafficking organization that brought drugs into the country through California to Colorado. A federal grand jury in Denver earlier returned an indictment charging 17 defendants for illegal drug trafficking conduct. The indictment contains 45 counts, including an asset forfeiture allegation.
As a result of today’s operation, nine were arrested, with one additional defendant already in custody. Seven are considered fugitives.
The defendants allegedly brought cocaine and methamphetamine into the country from Mexico, transported it through California, into Colorado in vehicles with secret compartments. The drugs were held at three stash locations in Aurora, Colorado, and then brought to the El Rancho Market at 15401 East Mississippi in Aurora to be parceled out and distributed. The El Rancho Market, in addition to sundries food and miscellaneous products, also has a money transfer station, which is how some drug proceeds were distributed from Colorado back to Mexico. Other methods of moving money included smuggling bulk cash in vehicle secret compartments.
The lead defendant, Jose Tapia-Rubio, a/k/a “Don Chequetas”, age 58, a resident of Aurora but from Mexico, has been charged with operating a Continuing Criminal Enterprise (CCE), also known as a “Drug King Pin”. To be charged with CCE, the defendant has to be in a leadership position while being involved with a five or more individuals responsible for a series of drug crimes, and that the drug trafficking continues resulting in substantial income and resources. If convicted on this charge Tapia-Rubio faces not less than 20 years and up to life in federal prison, as well as a $2 million fine.
According to the indictment, between Feb. 1, 2016 through April 15, Tapia-Rubio and the additional 16 defendants knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 50 grams or more of actual methamphetamine, and 500 grams or more of a substance containing a detectable amount of methamphetamine. For this count alone, each defendant faces not less than 10 years, and up to life in prison, as well as a $10 million fine. Each defendant also faces a variety of other drug related charges with different prison penalties.
As part of this investigation and takedown, the government is seeking a $2 million money judgment as well as the seizure of two Aurora properties used as stash houses, one located at 12091 East Arizona Avenue, and the other located at 17994 East Utah Place, both in Aurora.
“We are committed to dismantling and removing the threat posed by these criminal organizations flooding American communities with dangerous narcotics,” said Attorney General Jeff Sessions. “This organization is alleged to have moved large amounts of meth and cocaine from Mexico to Colorado, with devastating impact on communities in their wake. I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful operation. Replicating this kind of aggressive law enforcement take down is critical to breaking the backs of these criminal organizations.”
“The stupidest thing a drug trafficker can do is bring his dope business to Colorado,” said Acting U.S. Attorney Bob Troyer. “We have the most sophisticated investigators, prosecutors, and partnerships you will find anywhere, and we don't tolerate the poisoning of our people.”
“This criminal organization distributed cocaine and methamphetamine throughout our communities, making themselves rich from the suffering of others,” stated Special Agent in Charge Barbra Roach of the Drug Enforcement Administration’s Denver Field Division. “DEA takes great pride in identifying and targeting these predatory organizations and works continually to put them out of business, and to put their leaders in jail.”
“This operation was successful due to our positive and established working relationships with our local, state, and federal law enforcement partners,” said Aurora Chief of Police Ken Metz. “This collaborative effort will help Aurora become even safer. Thank you to all the officers involved.”
This case was investigated by the Denver Strike Force, which includes the following agencies: DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the FBI, Internal Revenue Service – Criminal Investigation, U.S. Marshal Service, West Metro Drug Task Force, Northern Colorado Drug Task Force, Colorado Attorney General’s Office, Colorado State Patrol and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Stephanie Podolak. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
LIST OF DEFENDANTS IN STRIKE FORCE INDICTMENT
- JOSE TAPIA-RUBIO, a.k.a. “Don Chaquetas,” age 58, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
- JUAN CARLOS MEDINA-SOBERANIS, age 31, resident of Aurora, Colorado, from Califorinia FUGITIVE
- LARA ZAMORA-CRUZ, a.k.a. “Maria Lara-Reyes,” age 63, resident of Northridge, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
- ERIK PARRA, a.k.a. “Flaco,” age unknown, resident of Metro Denver, Colorado, from California FUGITIVE
- JOSE CHICA-ORELLANA, a.k.a. “Adrian,” age unknown, resident of Aspen, Colorado, from El Salvador IN CUSTODY PRIOR TO TODAY
- SELESTINO HERNANDEZ-MAYO, a.k.a. “Chakichan,” age 45, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
- CLAUDIA LISSETH-LARA, age 41, resident of Granada Hills, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
- VILMA L. ZAMORA, age 67, resident of Reseda, California, from El Salvador ARRESTED TODAY IN CALIFORNIA
- FREDY PAZ-HERRERA, a.k.a. “Avispero,” age unknown, resident of Breckenridge, California, from Mexico FUGTIVE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Bancholas,” age unknown, in Mexico FUGITIVE
- RODRIGO MORA-SANCHEZ, a.k.a. “Pelon,” age 49, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
- OSCAR MORA-CAMPOS, age unknown, resident of Aspen, from Mexico ARRESTED TODAY IN ASPEN
- EDUARDO JIMENEZ-SANCHEZ, age 37, resident of New Castle, Colorado, from Mexico ARRESTED TODAY IN BRECKENRIDGE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Changuito,” age unknown, in Mexico FUGITIVE
- FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “UM-9584,” age unknown, in Mexico FUGITIVE
- LEOPOLDO RODRIGUEZ-PADILLA, age unknown, resident of California, from Mexico FUGITIVE
- HEBERTO MORA-SANCHEZ, a.k.a. “Chaparro,” age 43, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
Denver OCDETF Strike Force Takes Down Mexican Drug Trafficking Organization Responsible for Distributing Large Quantities of Cocaine and MethamphetamineRead the Press Release
DENVER – The DEA led Denver OCDETF Strike Force, including the Colorado U.S. Attorney’s Office, DEA and the Aurora Police Department, today arrested multiple defendants throughout Colorado and California on various drug related charges, authorities announced. The arrests were the result of a one year investigation into the inner workings of a Mexican led drug trafficking organization that brought drugs into the country through California to Colorado. A federal grand jury in Denver earlier returned an indictment charging 17 defendants for illegal drug trafficking conduct. The indictment contains a total of 45 counts, including an asset forfeiture allegation. Some of the defendants will appear before a U.S. Magistrate Judge in Denver, where they will be read their rights and advised of the charges pending against them. Detention hearings and arraignment will take place next week for those arrested today. Those arrested in Colorado but not presented to the court will appear tomorrow. Those arrested out of state will appear before a U.S. Magistrate Judge at the nearest U.S. District Court location.
As a result of today’s operation, 9 were arrested, with one additional defendant already in custody. Seven are considered fugitives.
The defendants allegedly brought cocaine and methamphetamine into the country from Mexico, transported it through California, into Colorado in vehicles with secret compartments. The drugs were held at three stash locations in Aurora, and then brought to the El Rancho Market at 15401 East Mississippi in Aurora to be parceled out and distributed. The El Rancho Market, in addition to sundries food and miscellaneous products, also has a money transfer station, which is how some drug proceeds were distributed from Colorado back to Mexico. Other methods of moving money included smuggling bulk cash in vehicle secret compartments.
The lead defendant, Jose Tapia-Rubio, a/k/a “Don Chequetas”, age 58, who is a resident of Aurora but from Mexico, has been charged with operating a Continuing Criminal Enterprise (CCE), also known as a “Drug King Pin”. To be charged with CCE, the defendant has to be in a leadership position while being involved with a five or more individuals responsible for a series of drug crimes, and that the drug trafficking continues resulting in substantial income and resources. If convicted on this charge Tapia-Rubio faces not less than 20 years and up to life in federal prison, as well as a $2,000,000 fine.
According to the indictment, between February 1, 2016 through April 15, 2017, Tapia-Rubio and the additional 16 defendants knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 50 grams or more of actual methamphetamine, and 500 grams or more of a substance containing a detectable amount of methamphetamine. For this count alone, each defendant faces not less than 10 years, and up to life in prison, as well as a $10,000,000 fine. Each defendant also faces a variety of other drug related charges with different prison penalties.
As part of this investigation and takedown, the government is seeking a $2,000,000 money judgment as well as the seizure of two Aurora properties used as stash houses, one located at 12091 East Arizona Avenue, and the other located at 17994 East Utah Place, both in Aurora.
"We are committed to dismantling and removing the threat posed by these criminal organizations flooding American communities with dangerous narcotics,” said Attorney General Jeff Sessions. “This organization is alleged to have moved large amounts of meth and cocaine from Mexico to Colorado, with devastating impact on communities in their wake. I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful operation. Replicating this kind of aggressive law enforcement take down is critical to breaking the backs of these criminal organizations.”
“The stupidest thing a drug trafficker can do is bring his dope business to Colorado,” said Acting U.S. Attorney Bob Troyer. “We have the most sophisticated investigators, prosecutors, and partnerships you will find anywhere, and we don't tolerate the poisoning of our people.”
“This criminal organization distributed cocaine and methamphetamine throughout our communities, making themselves rich from the suffering of others,” stated Special Agent in Charge Barbra Roach of the Drug Enforcement Administration’s Denver Field Division. “DEA takes great pride in identifying and targeting these predatory organizations and works continually to put them out of business, and to put their leaders in jail.”
“This operation was successful due to our positive and established working relationships with our local, state, and federal law enforcement partners,” said Aurora Chief of Police Nick Metz. “This collaborative effort will help Aurora become even safer. Thank you to all the officers involved.”
This case was investigated by the Denver Strike Force, which includes the following agencies: DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the FBI, Internal Revenue Service – Criminal Investigation, U.S. Marshal Service, West Metro Drug Task Force, Northern Colorado Drug Task Force, Colorado Attorney General’s Office, Colorado State Patrol and the Denver Police Department.
The defendants are being prosecuted by Assistant U.S. Attorney Stephanie Podolak. The asset forfeiture is being handled by Assistant U.S. Attorney Tonya Andrews.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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LIST OF DEFENDANTS IN STRIKE FORCE INDICTMENT
JOSE TAPIA-RUBIO, a.k.a. “Don Chaquetas,” age 58, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
JUAN CARLOS MEDINA-SOBERANIS, age 31, resident of Aurora, Colorado, from California FUGITIVE
LARA ZAMORA-CRUZ, a.k.a. “Maria Lara-Reyes,” age 63, resident of Northridge, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
ERIK PARRA, a.k.a. “Flaco,” age unknown, resident of Metro Denver, Colorado, from California FUGITIVE
JOSE CHICA-ORELLANA, a.k.a. “Adrian,” age unknown, resident of Aspen, Colorado, from El Salvador IN CUSTODY PRIOR TO TODAY
SELESTINO HERNANDEZ-MAYO, a.k.a. “Chakichan,” age 45, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
CLAUDIA LISSETH-LARA, age 41, resident of Granada Hills, California, from El Salvador (naturalized U.S. citizen) ARRESTED TODAY IN CALIFORNIA
VILMA L. ZAMORA, age 67, resident of Reseda, California, from El Salvador ARRESTED TODAY IN CALIFORNIA
FREDY PAZ-HERRERA, a.k.a. “Avispero,” age unknown, resident of Breckenridge, California, from Mexico FUGTIVE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Bancholas,” age unknown, in Mexico FUGITIVE
RODRIGO MORA-SANCHEZ, a.k.a. “Pelon,” age 49, resident of Aurora, Colorado, from Mexico (naturalized U.S. citizen) ARRESTED TODAY IN AURORA
OSCAR MORA-CAMPOS, age unknown, resident of Aspen, from Mexico ARRESTED TODAY IN ASPEN
EDUARDO JIMENEZ-SANCHEZ, age 37, resident of New Castle, Colorado, from Mexico ARRESTED TODAY IN BRECKENRIDGE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “Changuito,” age unknown, in Mexico FUGITIVE
FIRST NAME UNKNOWN, LAST NAME UNKNOWN, a.k.a. “UM-9584,” age unknown, in Mexico FUGITIVE
LEOPOLDO RODRIGUEZ-PADILLA, age unknown, resident of California, from Mexico FUGITIVE
HEBERTO MORA-SANCHEZ, a.k.a. “Chaparro,” age 43, resident of Aurora, Colorado, from Mexico ARRESTED TODAY IN AURORA
Cowart Seafood, Inc. President Pleads Guilty to Illegal Seafood Conspiracy and Firearms ViolationRead the Press Release
GULFPORT, MS - Lonnie M. Ray, the president of Cowart Seafood, Inc., of Bay St. Louis, Mississippi, pled guilty today to charges that include conspiracy to violate the Lacey Act, announced Acting U.S. Attorney Harold Brittain, Assistant Director Tracy A. Dunn with the National Oceanic and Atmospheric Administration, Special Agent in Charge Louis Santiago with the U.S. Fish and Wildlife Service; Keith Davis with the Mississippi Department of Marine Resources, Office of Marine Patrol; and Resident Agent in Charge Jason Denham with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Lacey Act makes it unlawful to sell in interstate commerce any fish taken in violation of state law.
Lonnie Ray pled guilty to one count of conspiracy to violate the Lacey Act and one count of illegal possession of a short-barreled shotgun. In the indictment to which Ray pled guilty, he was charged with conspiring to violate the Lacey Act by selling fish to Louisiana seafood buyers that was taken in violation of Mississippi law. According to Mississippi law, seafood dealers are required to submit information about each seafood purchase from a commercial fisherman on a form known as a trip ticket that is provided by the Mississippi Department of Marine Resources (“DMR”). Ray admitted violating this requirement by failing to report seafood purchases to DMR and by buying fish from recreational fisherman in violation of state law. The Lacey Act charges against Shelley H. Ray, who was also named in the indictment, were dismissed. Ray also admitted owning a 12-gauge double-barrel shotgun, having a barrel of less than l8 inches in length, which was not registered to him in the National Firearms Registration and Transfer Record.
Ray will be sentenced by U.S. District Judge Sul Ozerden on Tuesday, July 25th, 2017. He faces a maximum penalty of five years in prison and a $250,000 fine for the Lacey Act conspiracy, and a maximum penalty of ten years in prison and a $250,000 fine for the firearm charge.
Acting United States Attorney Harold Brittain praised the efforts of the federal and state investigative agencies for their diligent work in the investigation of this matter.
Connecticut Financial Advisor Sentenced for Obstructing SEC InvestigationRead the Press Release
BOSTON – A Connecticut financial advisor was sentenced today in federal court in Boston for obstructing a Securities and Exchange Commission (SEC) investigation by attempting to conceal secret and improper referral payments he made in order to secure the business of a wealthy client.
John William Rafal, 67, the former president of a financial services company in Connecticut, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year of probation, with four months to be served in home detention and a fine of $4,000. Rafal has also entered into a separate agreement with the SEC, which, among other sanctions and penalties, will bar him for life from working in the securities industry. As part of the agreement, Rafal must also pay nearly $600,000 to the SEC.
In 2011, Rafal struck a deal with an attorney in which Rafal’s company would pay the attorney a $50,000 referral fee in return for recommending that a wealthy client become a client of the company. Rafal knew that this undisclosed payment violated federal and state regulations. After Rafal had already paid a portion of the fee, his company discovered the payments, stopped them, and directed Rafal to have the attorney return the money that had already been paid. Unbeknownst to the company, however, Rafal then secretly paid the referral fee to the attorney from his private checking accounts.
In May 2015, at the SEC’s office in Boston, Rafal testified about the referral agreement as part of a formal SEC examination. In his testimony, Rafal repeatedly described the referral matter as “cured,” “reverse[d],” “undo[ne],” or “fix[ed]” in an effort to prevent the SEC from learning about his secret payments to the attorney. In his testimony, Rafal never mentioned the checks he had written to the attorney out of his personal accounts. At the close of his testimony, the SEC asked Rafal whether he was aware of any other information that might be helpful to the SEC’s investigation. Rafal answered, “I’m not aware of any other information.”
Acting United States Attorney William D. Weinreb and SEC Inspector General Carl W. Hoecker made the announcement today. Assistant U.S. Attorney Brian Pérez-Daple of Weinreb’s Economic Crimes Unit prosecuted the case.
Colorado Man Sentenced for Bank RobberyRead the Press Release
Christopher Dean Bandstra, 43, was sentenced by Federal District Court Judge Alan B. Johnson on April 20, 2017, for bank robbery. Bandstra was arrested in Fort Collins, Colorado. He received 40 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and $2,640.00 in restitution. This case was investigated by the Laramie County Sheriff’s Office and the Federal Bureau of Investigation.
Chicago Man Pleads Guilty to Federal Charges in Connection with Plaza Frontenac RobberyRead the Press Release
St. Louis, MO – Dejuan Wingard, 22, of Chicago, pleaded guilty to interstate transportation of stolen property this morning. Judge Henry Autrey accepted his plea and set his sentencing for August 1, 2017.
Wingard is the last of eight individuals indicted for interstate transportation of stolen property in December for their participation in a "smash and grab" theft of Chanel handbags from the Saks Fifth Avenue store in Frontenac on November 26, 2016. The group drove into Illinois with the stolen purses before being arrested by state and local police near Litchfield, Illinois.
All 8 defendants now await sentencing and face up to 10 years imprisonment and/or fines up to $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
A second group of five Chicagoans alleged to have participated in this crime have been indicted in United States v William Curry, et al. and await trial.
This case was prosecuted by the FBI and the Frontenac Police Department with assistance from the St. Louis County Prosecuting Attorney’s office.
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Cheektowaga Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Acker, 34, of Cheektowaga, N.Y., who was convicted of possession of child pornography, was sentenced to 36 months in prison, followed by 10 years of supervised release, by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on September 1, 2016, Special Agents from the Federal Bureau of Investigation, Violent Crimes Against Children Task Force, executed a search warrant at the defendant’s residence and seized several electronic devices and DVDs. A forensic examination revealed that Acker was in possession of more than 34,000 images and 918 videos of child pornography, some of which depict prepubescent children less than 12 years of age, and some of which depict images of violence.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.