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Friday 24 February 2017
Breaux Bridge woman sentenced to 10 months for stealing more than $64,000 from a New Iberia companyRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced that a Breaux Bridge woman was sentenced Thursday to 10 months in prison for stealing more than $64,000 from a New Iberia company.
Joan C. Edgar, 66, of Breaux Bridge, La., was sentenced by U.S. District Judge Dee D. Drell on one count of wire fraud. She was also sentenced to three years of supervised release, $64,860 restitution and a $,5000 fine. According to the September 20, 2016 guilty plea, Edgar worked as an office manager for a New Iberia company. The company’s sole stockholder began negotiating with Edgar for her to buy the company in 2011, and while still working for the company, she stole $64,860. She concealed her actions by altering company records.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Boston Man Charged for West Bridgewater Bank RobberyRead the Press Release
BOSTON - A Boston man was charged yesterday in U.S. District Court in Boston in connection with robbing a branch of the Mansfield Bank in West Bridgewater on Nov. 22, 2016.
Stephen D. Williams, 54, was charged by criminal complaint with one count of bank robbery, and was detained following an initial appearance before U.S. District Court Chief Magistrate Judge Jennifer C. Boal. A probable cause and detention hearing is scheduled for Feb. 28, 2017.
According to court documents, on Nov. 22, 2016, an individual, later determined to be Williams, entered a branch of the Mansfield Bank in West Bridgewater. Brandishing a black semi-automatic firearm, Williams approached a teller and demanded money. The teller handed Williams cash, and Williams fled the area in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers who were familiar with Williams, and the dark-colored Volkswagen, located and arrested Williams at an apartment complex in Brockton. Articles of clothing consistent with the clothing Williams had worn during the robbery were also recovered.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; West Bridgewater Police Chief Victor R. Flaherty, Jr.; Brockton Police Chief John Crowley; and U.S. Marshal John Gibbons of the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boscawen Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice today announced that
Patrick J. Brooks, II, pleaded guilty in federal court on Thursday to possessing oxycodone with intent to distribute. Brooks (37) lived in Boscawen prior to his arrest.
According to court documents and statements made during Brooks’ plea hearing, in June and July 2016, a Concord police detective officer made a series of undercover purchases of oxycodone from an individual who, during those transactions, told the undercover detective that Brooks was her supplier and had been selling oxycodone for eleven years. On July 20, 2016, police officers executed a search warrant at Brooks’ Boscawen home. The execution of the warrant yielded nearly 2,000 oxycodone pills and approximately $20,000 in cash. The cash recovered from Brooks’ home included currency that the Concord police detective used to buy oxycodone in one of the undercover transactions.
Brooks is scheduled to be sentenced on May 30, 2017.
This matter was investigated by the Concord Police Department with important assistance from the Boscawen Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Barbour County man pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Gerald Allen Freeman, 42, of Moatsville, West Virginia, was convicted for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Freeman admitted today to distributing methamphetamine on January 19, 2016 in Barbour County.
Freeman pled guilty to one count of “Distribution of Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
BLM Settles 2014 Wolf Derby Permit Lawsuit Agrees to Notify Environmental Groups of Future Permit ApplicationsRead the Press Release
BOISE – The Bureau of Land Management (“BLM”) has reached a settlement with several environmental groups to ensure that groups with an interest in public lands can meaningfully participate in the land management process whenever BLM might in the near future again be asked to consider applications for predator hunting contest permits utilizing portions of public lands in east-central Idaho, announced U.S. Attorney Wendy J. Olson. The settlement has been approved by Chief U.S. Magistrate Judge Ronald E. Bush.
The settlement ends litigation against BLM by plaintiffs WildEarth Guardians, Cascadia Wildlands, Kootenai Environmental Alliance, Center for Biological Diversity, Western Watersheds Project, and Project Coyote. The groups alleged that BLM failed to comply with the National Environmental Policy Act when it authorized the issuance of a special recreation permit to a non-profit group, Idaho for Wildlife, for a predator hunting contest in the Salmon, Idaho, area on November 13, 2014. BLM withdrew its authorization on November 25, 2014, and no permit was issued. In subsequent winters, 2015-16 and 2016-17, neither Idaho for Wildlife nor any other non-profit sought a permit for a hunting contest from BLM in the same area.
Olson stated that the settlement best served the agencies and the public interest. “Rather than continuing to press its legal defenses in court, BLM agreed to notify environmental group attorneys of any applications for contests involving the hunting of wolves or coyotes received by BLM’s Idaho Falls District Office over the next three years,” said Olson. “This opening of communication underscores BLM’s commitment to assuring that public input into future decisions would not be rushed or minimized.”
“We are pleased to have reached this settlement agreement with these plaintiff groups,” said Idaho Fall District Manager Mary D’Aversa of BLM. “Thousands of visitors recreate in and around Salmon every year and we will continue to take our land management responsibilities very seriously on behalf of all Americans.”
“The agreement reaffirms BLM’s commitment to transparency and to public involvement in the management of our public land,” said District Manager D’Aversa.
The plaintiff environmental groups have brought different claims against the United States Forest Service. Those claims remain outstanding.
Albuquerque Man Pleads Guilty to Aiding and Abetting Armed Bank RobberyRead the Press Release
ALBUQUERQUE – Christian Herrera, 20, of Albuquerque, N.M., pled guilty this morning in federal court to aiding and abetting the armed robbery of an Albuquerque-area bank.
Herrera was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Martin Huerta, 43, Christopher Gallegos, 33, and Isaiah Gallegos, 20, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint alleged that three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Miera, Huerta, Herrera, Isaiah Gallegos and Christopher Gallegos were subsequently indicted on an armed bank robbery charge on April 27, 2016.
During today’s proceedings, Herrera entered a guilty plea to the indictment. In entering the guilty plea, Herrera admitted aiding and abetting the armed robbery of the U.S. Bank branch on March 30, 2016, by acting as a lookout during the robbery.
Co-defendant Huerta previously entered a guilty plea to the indictment on Sept. 9, 2016, Miera entered a guilty plea on Oct. 11, 2016, and Christopher Gallegos entered a guilty plea on Feb. 13, 2017.
At sentencing, Herrera, Christopher Gallegos, Miera and Huerta each face a statutory maximum penalty of 25 years in federal prison. The co-defendants remain in custody pending sentencing hearings.
The one remaining co-defendant has entered a plea of not guilty to the indictment. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Alabama Inmate and NE Alabama Woman Charged for Scheme to Defraud SSARead the Press Release
BIRMINGHAM – An Alabama state inmate and a northeast Alabama woman face federal charges for a scheme to defraud the Social Security Administration by working together to collect disability benefits that the inmate was not entitled to while in prison, announced Acting U.S. Attorney Robert O. Posey and Social Security Administration, Office of Inspector General, Special Agent in Charge Margaret Moore-Jackson, Atlanta Field Division.
A federal grand jury today indicted RICHARD EARL STANLEY, 56, of Boaz, on six wire fraud counts and one count of theft of government property for scheming with others to illegally receive $42,870 in Social Security Type II Disability Insurance Benefits payments between January 2013 and September 2015.
The U.S. Attorney’s Office on Feb. 17 filed an information against KRISTIN BLAIR FOX, 34, of Southside, charging her with four counts of wire fraud and one count of theft of government property for helping Stanley collect the disability payments that she knew neither of them was entitled to receive. In conjunction with the charges, the U.S. Attorney’s Office also filed a plea agreement with Fox.
The wire fraud counts for both defendants are based on ATM cash withdrawals from Stanley’s Comerica Bank account, where the SSA deposited Stanley’s disability benefits, according to the court documents.
Stanley was awarded the Social Security disability benefits in 2002. In June 2007, he was convicted of a felony and incarcerated, according to his indictment. The SSA notified him in September 2007 that he could no longer receive the benefits because he was confined in an institution in connection with a criminal case and that his stay was “being paid for with public funds.”
Stanley was incarcerated again in March 2012, but in July 2012 provided documentation to SSA that he was released from custody in June of that year, so his benefits could be reinstated, according to his indictment. When he was convicted of a felony later in 2012, Stanley did not notify the SSA that he had been re-incarcerated, because he knew he would not be entitled to receive benefits while in custody, the indictment states.
In January 2013, according to his indictment, a fellow inmate referred Stanley to Fox, as someone who might help Stanley access his disability benefits and have money transferred to his prison commissary account.
According to Stanley’s indictment and Fox’s information and plea agreement, their scheme to illegally obtain the disability payments took place as follows:
Stanley contacted Fox by letter in February 2013 and offered to pay her to help him access is disability payments. He arranged for Fox to collect his personal property at the prison, which included his Comerica Bank debit card. Their initial agreement was for Fox to take $175 each month from the SSA funds and deposit $300 monthly into Stanley’s prison commissary account.
In the ensuing months, Fox requested money and complained when Fox failed to send it. Fox continued to withdrew money from the Comerica account for herself, without Stanley’s knowledge.
Stanley’s debit card was to expire in December 2014 and Stanley gave Fox directions on how to renew it through Social Security, but Fox did not attempt to do so. The SSA terminated Stanley’s benefits in September 2015.
The SSA-OIG investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
According to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
Active Duty Air Force Master Sergeant Sentenced to Prison for Accepting Bribes in a Government Contract Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – United States Air Force Master Sergeant Cody Boone Covert, 43, of Fort Walton Beach, was sentenced late yesterday to 23 months in prison and $126,300 in restitution for conspiracy (to commit theft of honest services and wire fraud) and bribery by a public official. Co-conspirator Michael Allen Braun, 54, of Forest Lake, Minnesota, is scheduled to be sentenced on April 10 at 1:00 p.m. at the United States Courthouse in Pensacola for conspiracy and bribery of a public official. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In January 2014, MSgt. Covert, 901st Aircraft Maintenance Squadron, Hurlburt Field, was tasked with procuring specialized equipment in support of C-130 Special Operations Aircraft. Braun, who owned the company Trans Global Storage Solutions, conspired with Covert to obtain a contract from the United States Air Force. Prior to the solicitation of the contract, Braun agreed to provide Covert 45% of the profit from the contract proceeds, if Covert ensured that Trans Global won the contract. Covert submitted a request to purchase the specialized equipment. Because Covert was the requester of the equipment, he was chosen to evaluate each proposal for technical acceptance. Subsequently, Covert decided the Trans Global proposal was the only proposal technically acceptable for the government requirement. After Trans Global was fraudulently awarded the $126,300 contract from the United States Air Force via Covert’s inside influence, Covert and Braun split the proceeds. Covert pled guilty on October 28, 2016, and Braun pled guilty on January 12, 2017.
“The United States Attorney’s Office, along with our other federal, state, and local government partners, is committed to upholding the law by exposing corruption and pursuing justice for those lawbreakers who abuse their authority and positions of trust," said U.S. Attorney Canova. "I commend the work of the investigating and prosecuting team on this case. Public service carries a high ethical standard, and no one is above the law.”
Special Agent-in-Charge Wendell W. Palmer, United States Air Force Office of Special Investigations-Procurement Fraud Detachment 5 Southeast, stated, “This was a great outcome for the investigation and prosecution of those who would do damage to the integrity of the U.S. Air Force acquisition process. Dedicated and thorough work on the part of investigators and prosecutors alike have once again protected the warfighting capability of the world’s greatest air and space fighting force. The teamwork exhibited by investigators and prosecutors, in conjunction with the court, sends a strong message that fraud against our government will not be tolerated.”
“The Defense Criminal Investigative Service, along with our investigative partners and the U.S. Attorney’s Office, will bring to justice anyone who takes bribes and kickbacks to undermine the integrity of the Department of Defense,” commented Special Agent-in-Charge John F. Khin, DCIS, Southeast Field Office. “Corruption and fraud in DoD programs also jeopardizes the safety of our warfighters.”
The case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency. The case was prosecuted by Assistant U.S. Attorney James M. Ustynoski.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Thursday 23 February 2017
Woodland Park Woman Sentenced to 27 Years in Federal Prison for Producing Child Pornography While Sexually Abusing Minor Child to Whom She Had AccessRead the Press Release
DENVER – Rhiannon Carnahan, age 30, of Woodland Park, Colorado, was sentenced earlier this week to serve 324 months (27 years) in federal prison by U.S. District Court Judge R. Brooke Jackson, Acting U.S. Attorney Bob Troyer, Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Acting Special Agent in Charge John Eisert announced. Following her prison sentence, Carnahan was ordered to serve 10 years of supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Carnahan and a co-defendant were first charged by criminal complaints on April 23, 2015. They were then indicted by a federal grand jury in Denver on May 6, 2015. On March 31, 2016, Carnahan pled guilty before Judge Jackson. She was sentenced on February 21, 2017. Co-defendant Brandon Tyler Hill had pled guilty and was sentenced by Judge Jackson to serve 360 months (30 years) in federal prison for his role in the production of child pornography. Hill will spend his entire life on supervised release.
According to court documents, the Colorado Springs Police Department initiated an investigation after a civilian witness contacted law enforcement to report that Hill had sent her unwanted child pornography images via email and was being extorted to produce more child pornography images. As part of the investigation, it was determined that the defendant utilized numerous identities, including that of an ICAC police officer, to attempt to make the civilian witness to produce child pornography. The investigation revealed that Hill was also communicating online with co-defendant Rhiannon Carnahan, who he learned had access to Minor #1, a child who was 3 years old when the offense conduct began. Hill used various pseudonyms to communicate with Carnahan. Hill made numerous and repeated requests for images and videos depicting Minor #1 engaged in sexually explicit conduct. During the course of the communications and in response to Hill’s requests for child pornography depicting Minor #1, Carnahan sexually abused Minor #1 over a three-month time frame, used her cell phone to take images and videos of that abuse, and sent those images and videos to Hill. Minor #1 was a child in Carnahan’s care when Carnahan sexually exploited Minor #1. Carnahan is one of a growing number of women charged with child pornography crimes in the District of Colorado.
The Carnahan case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Carnahan is being prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
Wisconsin man admits falsely claiming he was a Navy SEAL wounded in combatRead the Press Release
A Wisconsin man will be sentenced later this year after admitting to falsely claiming he was a Navy SEAL wounded four times in Vietnam, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kenneth E. Jozwiak, 67, of Kenosha, Wisconsin, is scheduled to be sentenced May 18 after pleading guilty to unlawfully exhibiting a military discharge certificate, theft of government money, making false statements to federal agents, and attempting to obstruct an official proceeding.
“This defendant’s lies about his service are an affront to those who saw combat and those wounded fighting on behalf of our nation,” Rendon said. “This defendant did neither, and falsely inflated his service record in an effort to get additional benefits.”
“This case reflects the VA OIG’s commitment to vigorously pursue those individuals that falsify military service records and defraud the VA,” said Gavin McClaren, Resident Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Cleveland office.
Jozwiak exhibited a military discharge certificate in 2014 that claimed, in part, that he was a highly decorated Vietnam War veteran, that he was a four-time recipient of the Purple Heart, and that he was a Navy SEAL -- all entries Jozwiak knew were totally false, according to court documents.
Additionally, Jozwiak defrauded the Department of Veterans Affairs of $2,289 through veteran’s entitlements he received between August and December 2014. In January 2015, Jozwiak made several false statements to federal agents about his fraudulent activities and his military service, and that he attempted to obstruct an official proceeding by tampering with a material witness, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the Department of Veterans Affairs Office of Inspector General—Criminal Investigative Division.
Williamsport Man Indicted on Drug Charges and Stealing Eleven Handguns from Gun StoreRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samuel Bozochovic, age 36, of Williamsport, Pennsylvania, was indicted by a federal grand jury with stealing handguns from a gun store in Muncy, Pennsylvania, and possessing controlled substances with the intent to distribute them.
According to United States Attorney Bruce D. Brandler, Bozochovic allegedly broke into the R&J Welch gun store on February 8, 2017, and stole 11 handguns from the inventory. Five of the firearms were recovered during a search of Bozochovic’s apartment, but six are as yet unrecovered. Later the same day, Bozochovic was apprehended in the course of distributing heroin to another person and 48 heroin packets were recovered from him at that time.
Bozochovic was arrested on February 9, 2017, and brought before United States Magistrate Judge William I. Arbuckle, III where he was detained pending further proceedings.
“Stolen guns are quickly sold into the black market as a tool-of the-trade for criminals who frequently use them in violent acts. ATF will use our resources to protect the public by identifying and arresting thieves who divert guns into the hands of criminals, which then fuels violence in our communities,” said ATF Special Agent in Charge Sam Rabadi.
Anyone with information regarding this investigation or the stolen firearms is encouraged to call 1-800-ATF GUNS (1-800-283-4867).
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia Man Sentenced to 17 Years in Prison for Shooting at Police OfficersRead the Press Release
WASHINGTON - Richard Butler, III, 35, formerly of Alexandria, Va., has been sentenced to a 17-year prison term for shooting at two Metropolitan Police Department (MPD) officers and also firing at the occupant of a parked car that he tried to use as a shield in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Butler pled guilty in July 2016, in the Superior Court of the District of Columbia, to assault of a police officer while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm. He was sentenced on Feb. 17, 2017, by the Honorable Zoe Bush. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Wednesday, March 23, 2016, at approximately 5:50 p.m., two Metropolitan Police Department officers saw a group of individuals gambling in an alley alongside 625 Mellon Street SE. The officers approached the group because they believed Butler resembled an individual wanted by law enforcement in Prince George’s County, Maryland, on a criminal charge. As the officers got closer to the group, Butler turned away from them and ran. At the time, Butler was wearing a backpack on his chest from which a protruding handgun could be seen. When Butler got to the end of the alley, he turned around, shot at the officers, and fled out of the alley. The officers returned fire and pursued Butler on foot through the surrounding neighborhood. During the foot chase, Butler attempted to use parked cars as shields while he shot at the officers. Inside one of the cars used by Butler was a man seated in the driver’s seat of the parked car. Butler shot directly through the windshield of the car. The man was not injured, but the windshield was damaged.
Butler was stopped in a nearby alley. He was wearing a long-hair wig and was identified as the individual who shot at the officers and the parked car. Butler was also confirmed as the same individual wanted in Maryland, where his case remains pending. Along Butler’s flight path were two firearms.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jean Sexton and Sarah C. Santiago, who investigated the case and handled the sentencing.
Virginia Beach Man Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
NORFOLK, Va. – Joshua Manuel Treat, 20, of Virginia Beach, pleaded guilty today to sex trafficking of children.
According to the statement of facts filed with the plea agreement, from Sept. 26 to Oct. 12, 2016, Treat posted Jane Doe, a 14-year-old girl, on an Internet website and advertised her for prostitution. In order to make Jane Doe more amenable to prostitution, Treat would inject Jane Doe with heroin prior to her appointments with customers. When Treat was arrested, he was found with a handgun and a syringe containing heroin residue.
Treat faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on May 25. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney Elizabeth Yusi is prosecuting 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 and click on the tab “resources” for more information about Internet safety education.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-172.
Two Vessel Engineers Convicted of Environmental and Obstruction Crimes After Trial. Vessel Manager Pleads Guilty to Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal jury in Charleston, South Carolina, late yesterday convicted two chief engineers of the vessel, T/V Green Sky, of falsifying documents in order to conceal illegal discharges of oily bilge waste and obstruction charges, announced Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Beth Drake of the District of South Carolina. Herbert Julian, who served as chief engineer of the vessel from Aug. 3 to Sept. 4, 2015, was convicted of two felony counts under the Act to Prevent Pollution from Ships (APPS) and for obstruction of justice. Panagiotis Koutoukakis, chief engineer from Feb. 1 to Aug. 3, 2015, was convicted of two felony counts, one for APPS and another for falsifying records.
In addition, it was revealed in court documents, which were unsealed after the verdicts were rendered, that Aegean Shipping Management, S.A., a foreign company with operations in Greece that acted as the Green Sky’s operator, previously pleaded guilty to a violation of the APPS and obstruction of justice.
“This case involved egregious violations of U.S. and international laws that are key to protecting the oceans from pollution, and deliberate efforts to mislead Coast Guard officials about these criminal acts,” said Acting Assistant Attorney General Wood. “Now these defendants have been held accountable under the law by a jury of their peers. The Department of Justice will continue to aggressively prosecute criminal acts that pollute the oceans.”
“With Charleston serving as one of the largest ports on the Eastern seaboard, working vessel pollution cases with the Environmental Crimes Section is an important focus for our office,” said U.S. Attorney Beth Drake, District of South Carolina. “Through criminal charges, we can deter those who would dump oily wastes into the world’s oceans and use false documents to cover it up.”
“The Green Sky case stresses the vital importance of USCG environmental protection missions with regard to pollution from ships,” said Captain Gary L. Tomasulo, Commander, U.S. Coast Guard Sector Charleston. “We are extremely proud of our team of marine safety professionals and the Coast Guard Investigative Service which were an integral part of investigating these occurrences and referring them for enforcement action.”
The Green Sky is a large, oceangoing chemical tanker flagged in Liberia. The vessel first set sail in July 2014. The operation of marine vessels, like the T/V Green Sky, generates large quantities of oil-contaminated waste water. This particular vessel had unusual internal leaks that produced greater quantities of oily waste than a normal ship of its age and construction. Oily bilge waste must be removed from the vessel lest it fill up the bottom of the Engine Room and cause damage to equipment and jeopardize the safe handling of the ship. However, the law does not permit an oceangoing vessel to discharge these oily wastes directly into the sea.
The evidence presented to the jury showed that the Green Sky was regularly pumping contaminated and oily water directly overboard. None of these discharges were disclosed as required. The oil record book of the Green Sky was falsified to cover-up illegal overboard discharges of oily wastes from February to August 2015. Methods of falsification included omitting illegal bypass operations, claiming that the oil water separator was used when it had not been, and a series of false entries regarding the levels of the bilge holding tank, which were designed to further the cover-up. While most of these discharges occurred in international waters, evidence at trial revealed that at least two of these discharges were within the Exclusive Economic Zone of the United States during the ship’s voyage from Pascagoula, Mississippi, to Houston, Texas in May 2015.
The evidence presented during the fifteen-day trial demonstrated that the chief engineers covered up illegal overboard discharges that took place through two systems of “magic” hoses and a separate “magic” valve system designed to bypass the ship’s oil water separator. Koutoukakis and Julian falsified the oil record book to hide their illegal discharges. The vessel arrived in Charleston, South Carolina on August 26, 2015, when the false record was presented to the U.S. Coast Guard during an inspection of the vessel. The U.S. Coast Guard was tipped off by three whistleblowers who came forward to report the crimes and ask for protection from U.S. authorities.
By January 2016, it was determined that the former chief engineer Koutoukakis likely had information regarding the ongoing investigation into the Green Sky. Koutoukakis was later apprehended in Savannah, Georgia on a material witness warrant. Koutoukakis was subsequently indicted after further investigation revealed his substantial involvement in illegal discharges and records falsification. In addition, Julian was convicted of obstruction related to false statements that he made regarding the ship’s sounding log, which is a document that can be used to check the veracity of the oil record book. Testimony at trial revealed that Julian hid the log prior to the Green Sky’s arrival in Charleston and then lied to the Coast Guard about the vessel having a sounding log.
Prior to the initiation of the trial, on November 22, 2016, the Green Sky’s operator, Aegean Shipping Management, S.A. pleaded guilty to one APPS count for the illegal discharges and one obstruction count based on misrepresentations made by the vessel’s captain to the U.S. Coast Guard during the August 2015 boarding. The corporate vessel operator had been indicted along with the individuals on July 15, 2016. The plea materials were previously sealed to protect the integrity of the jury and the witnesses in the trial against the individual defendants. The unsealed documents revealed that the operating company agreed to pay a financial penalty of $2 million, which includes a criminal fine and a smaller community service component directed toward the Gray’s Reef National Marine Sanctuary. The company will also be sentenced to probation and an environmental compliance plan. Sentencing of the company and defendants Julian and Koutoukakis will take place at a date that will be set by the court. At trial, the second engineer Nikolaos Bounovas was acquitted of all charges against him. The previously convicted Captain, Genaro Anciano, testified at the trial. His sentencing has yet to be scheduled.
This case was investigated by the U.S. Coast Guard Sector Charleston and the Coast Guard Investigative Service. The USCG Marine Safety Lab was critical to the analysis of oil samples taken from the vessel. With the support of Coast Guard Legal District Seven, the case was prosecuted by Christopher L. Hale and Kenneth Nelson of the U.S. Department of Justice’s Environmental Crimes Section and AUSA Matt Austin from the U.S. Attorney’s Office for the District of South Carolina. Richard Udell, also of the Environmental Crimes Section, provided substantial assistance with regard to the corporate plea deal.
Background on MARPOL
A multi-national treaty, the MARPOL Protocol, and implementing U.S. law required the Green Sky to first process the oily bilge waste through a filtration machine, known as an oil-water separator. Before the bilge waste can go overboard, the law requires that any remaining petroleum should be reduced to a concentration of 15 parts per million (ppm) or less. Bilge waste that contains 15ppm or less of petroleum does not produce a sheen and looks like clear water when held up to the light. One of the principal ways that the MARPOL Protocol ensures that international vessels comply with the oil water separator requirement is through the mandate to accurately maintain the vessel’s oil record book. The oil record book is an official ship’s log that records various types of internal transfers and discharges of fuel, oil residue, and oily bilge wastes. Under MARPOL, when a ship comes to a U.S. port, its oil record book is subject to inspection. When the oil record book is falsified, it makes it extremely difficult for port control officials (in the United States, the U.S. Coast Guard) to adequately assess treaty compliance and the safe and environmentally sound operation of the vessel.
Two Mahoning County men charged with importing anabolic steroids from ChinaRead the Press Release
Two men from Mahoning County were charged in federal court with illegally importing anabolic steroids from China, U.S. Attorney Carole S. Rendon said.
James A. Cleeland, 50, of Berlin Center, and Christopher M. Stanec, aka Michael Stanec, aka Mark Conner, 40, of Canfield, were charged in a one-count information with conspiracy to import and distribute steroids.
Cleeland and Conner conspired with other people to import and to possess with intent to distribute 298.3 grams or more of anabolic steroids. This took place in 2013, according to the information.
It was part of the conspiracy that Stanec and Cleeland imported anabolic steroids from sources located in China. It was further part of the conspiracy that Stanec agreed to receive the anabolic steroids from China and then provide them to Cleeland, according to the information.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, Homeland Security Investigations and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Individuals Charged for a Gas Station Debit Card Skimming Operation that Involved Multiple StatesRead the Press Release
Montgomery, Alabama- Two individuals are facing federal charges for using skimming devices on gas pumps, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama, and Steven T. Marshall, Attorney General for the State of Alabama. These charges are the result of a continuing multi-agency investigation that was initiated by the Alabama Attorney General’s Office, the Ozark Police Department, the United States Secret Service, and the Baldwin County Sheriff’s Office. On February 15, 2017, Eunises-Llorca Menses (30), of Naples, Florida, and Reiner Perez-Rives (34), of Houston, Texas, were charged by a federal grand jury with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to court documents, Llorca-Menses and Perez-Rives were involved in a multi-state scheme to defraud individuals and steal bank and credit union account information from unsuspecting individuals by installing a skimming device at gas stations. A skimming device can be installed on a gas pump and record a customer’s credit/debit card number and pin number without the customer’s knowledge or consent.
As part of their scheme, they would rent vehicles and travel between Florida, Alabama, Tennessee and Virginia. During their travels, they would visit several gas stations and install a skimming device inside a gas pump. Through the skimming device, they collected gas station customers’ credit/debit card information and used that information to activate or reactivate credit, debit, or gift cards, and make unauthorized cash withdrawals and purchases at several places around the southeast.
Law enforcement was able to uncover this scheme following multiple reports from victims concerning the unauthorized use of their debit cards. Working with financial institutions, the Ozark Police Department, along with state and federal partners, discovered that many of the victims had used their cards at the same gas station in Ozark, Alabama. At this station they found a skimming device installed on a gas pump that had Bluetooth capability. The Bluetooth technology allowed the defendants to collect a gas customer’s credit/debit information while sitting up to thirty-feet away from the gas pump.
Upon arrest, the two were found to be in possession of a total of thirty-nine credit/debit cards that had been re-encoded with stolen credit/debit card numbers, along with an additional 315 various types of gift cards. Law enforcement also found a homemade device with connectors that matched the connections on the skimming device found in the gas pump in Ozark, Alabama.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each face a maximum sentence of 30 years in prison and payment of restitution to their victims.
“Criminals are constantly coming up with sophisticated ways to deprive us of our hard earned money,” stated U.S. Attorney Beck. “They always try to stay one step ahead of law enforcement. Banks, gas stations, retail businesses, and customers, need to be ever watchful for this type of criminal activity and report it to the authorities immediately. I would like to thank all the agencies involved for acting quickly to recognize this scheme and identify those responsible.”
“I want to thank U.S. Attorney Beck for taking swift action to bring federal charges against suspects identified in late December by state and local authorities in a wide-ranging crime spree of identity thefts committed through debit card skimming at gasoline pumps,” said Attorney General Steven T. Marshall. “I am extremely proud of the outstanding investigation by Special Agents in the Attorney General’s Office, along with the Ozark Police Department and Baldwin County Sheriff’s Office, to uncover these illegal activities and arrest the defendants on state charges which are pending. This kind of support and cooperative teamwork among law enforcement agencies from the local to the federal level is vital for us to be effective in shutting down criminal operations.”
“I am proud that our department was able to play a role in this investigation,” stated Ozark Police Chief Marlos Walker. “I am always excited and pleased with the support we have from our state and federal partners. Cooperation among law enforcement is essential in stopping these types of operations.”
“The U.S. Secret Service has seen a rise in cases involving gas pump skimmers nationwide,” stated Resident Agent in Charge Clayton Slay, U.S. Secret Service in Montgomery, Alabama. “This is partly due to the incremental conversion of all credit card point of sale processers from the use of the magnetic strip to the new EMV ‘Chip’ technology. As retail businesses make the transition to EMV, criminals are targeting those business that have not made the change. This includes credit card readers on gas pumps. The Secret Service, along with local and state law enforcement authorities, continue to be proactive in these type of crimes through information sharing with financial institutions, credit card issuing companies, and education of members of the petroleum distribution industry.”
“Criminals can breach the gas pump and install a skimming device which can be there for weeks or months before crooks return to download the credit card and PIN numbers, if used,” continued RAC Slay. “Some skimming devices, like the ones used in this case, are Bluetooth enabled so the crooks don’t even have to breech the pump again to download the information from the skimmer. The skimming devices are usually not detectable from the outside of the pump and are typically only detected when the pump is opened or serviced for any reason.”
Slay advises that the public should monitor their bank and credit card accounts frequently and report any unusual activity to those financial institutions. Another way to possibly prevent this type of fraud is to pay inside the store or use pumps that are visible to store employees and any video surveillance cameras, as criminals normally target pumps that allow them to install skimming devices undetected.
This case was a joint investigation involving the Ozark Police Department, the Alabama Attorney General’s office, the United States Secret Service, and the Baldwin County Sheriff’s Office. This case is being prosecuted by the United States Attorney’s Office for the Middle District of Alabama by Assistant United States Attorney Denise O. Simpson.
Two Atoka Individuals Found Guilty of Theft of Government Funds, False StatementRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL FERRARIE EUBANKS, age 57, of Atoka, Oklahoma, and HYDIE ROYLENE EUBANKS, age 58, of Atoka, Oklahoma, were found guilty, by a federal jury, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Sections 641 and 2; CONCEALMENT OF A MATERIAL FACT, in violation of Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2, and FALSE STATEMENT, in violation of Title 42, United States Code, Section 408(a)(2) and Title 18, United States Code, Section 2. The jury trial began with testimony on Tuesday, February 21, 2017 and concluded on Thursday, February 23, 2017 with the guilty verdict.
Evidence at trial proved that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, and having a value in excess of $1,000.00.
Evidence at trial further proved that from on or about September 2010, and continuing through March 10, 2016, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.
Evidence at trial further proved that on or about November 30, 2015, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination. Specifically, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS jointly completed a Continuing Disability Review Report wherein MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS stated that MICHAEL FERRARIE EUBANKS had not worked since the date of MICHAEL FERRARIE EUBANKS last medical disability determination.
The verdict obtained was the result of an investigation by the Social Security Administration’s Office of Inspector General.
Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendants will remain out on bond pending sentencing.
Assistant United States Attorney Melody Nelson and Assistant United States Attorney Rob Wallace represented the United States.
Texas Syndicate Member Sentenced to More Than 27 Years in Federal Prison for Role in Methamphetamine, Cocaine and Marijuana Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Christopher Lee Gonzalez, aka “Gonzo,” 43, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 327 months in federal prison, following his guilty plea in October 2016 to his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Twelve individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in West Texas. Of those arrested, each defendant has pled guilty. Two defendants remain fugitives.
According to plea documents filed in the case, on October 4, 2015, Gonzales distributed and possessed with the intent to distribute 50 grams or more of methamphetamine. The investigation revealed that late that morning, Gonzalez and co-conspirator Jasmine Pilar Hernandez traded multiple calls and text messages discussing a drug transaction that was going to occur later that day. At approximately 10:10 a.m., Hernandez told Gonzales that “the old man that brings it ... was on his way.” The “old man that brings it” was subsequently identified as co-defendant Belizario Salas-Avenado. Salas remains a fugitive.
Agents established surveillance on Salas’ residence located in Levelland, Texas. At approximately 1:30 p.m., a 2001 Chevrolet Suburban left the residence and traveled to the United Supermarket in Levelland, Texas. Salas purchased a box of Gain laundry detergent and a six pack of beer. Salas then returned to his residence.
At approximately 3:13 p.m., Hernandez told Gonzales, “In 25 minutes, he’ll be here.” Agents observed Salas and two unknown males leave Salas’ residence in the 2001 Chevrolet Suburban and head toward Lubbock, Texas. At approximately 3:30 p.m., a Texas Department of Public Safety Trooper stopped the 2001 Chevrolet Suburban, driven by Salas for traffic violations. Salas was arrested for no driver’s license. Salas stated that the two passengers where his nephews. The rear seat passenger was seated next to a white laundry basket and a box of Gain detergent which appeared to have been tampered with. When the trooper opened the box of detergent, a white plastic bag, containing a crystal-like substance was partially concealed in the detergent.
At approximately 4:05 p.m., Gonzales told Hernandez, “call me when they get there and I’ll go by.” At approximately 4:41 p.m., Hernandez indicated she had tried to call “them people ... twice.” At approximately 8:30 p.m., Gonzales advised Hernandez, “They got um,” referring to the arrest of Salas.
On October 5, 2015, Gonzales instructed Hernandez, “Do not tell nobody... about them getting caught....” “If they asked what happened ... that you still haven’t got nothing. That they ran out or something, you know. Don't tell them that they got caught up, man.”
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Tampa Man Pleads Guilty to Theft of Tax Refund ChecksRead the Press Release
Tampa, Florida–United States Attorney A. Lee Bentley, III announces that Charles Clark has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on March 12, 2015, Clark sold an $82,000 stolen U.S. Treasury check to a person acting in an undercover capacity with the Internal Revenue Service - Criminal Investigation. Clark did not have permission to sell the check from the U.S. Treasury, or from the person to whom the check had been issued.
This case was investigated by the Internal Revenue Service Office - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Springfield Man Sentenced for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for possessing and distributing crack cocaine.
Larry Smith, Jr., 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and three years of supervised release. In November 2016, Smith pleaded guilty to two counts of distributing and one count of possessing with intent to distribute cocaine in the form of crack cocaine.
On Feb. 18, 2015 and March 5, 2015, Smith sold crack cocaine to a cooperating witness. On April 3, 2015, he possessed an additional ten grams of crack cocaine with the intent to distribute it. Smith has an extensive, violent criminal history in Massachusetts state courts, including a 2010 conviction for carrying a firearm without a license and carrying a loaded firearm without a license; 2009 convictions for assault and battery with a dangerous weapon and assault and battery of a police officer; 2007 convictions for assault with a dangerous weapon, assault and battery of a police officer (four counts), and resisting arrest; and 2004 convictions for assault with a dangerous weapon (two counts) and possession with intent to distribute cocaine.
Acting U.S. Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Office is prosecuting the case.
Southeast Texas Men Charged in Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that four Southeast Texas men have been charged in a federal robbery conspiracy in the Eastern District of Texas.
According to complaints filed today in federal court, Micah Ledell Johnson, 37, of Humble, Texas; Darrell Paul Williams, 36, of Beaumont; Gerrick Leon Wade, 36, of Houston; and Eric Ray Johnson, 36, of Houston, are alleged to be involved in a conspiracy to commit interference with commerce by robbery in Beaumont, Corpus Christi, and the Houston metro area.
On Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding.
If convicted, the defendants face penalties of up to 20 years in federal prison. It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Lesley Woods.
South Florida Man Arrested on Mail and Wire Fraud Charges in Connection with Fraudulent Lottery Scheme Tied to JamaicaRead the Press Release
A 49-year-old Florida man was arrested in Miramar, Florida, following the return of a 12-count indictment against him by a grand jury in the Southern District of Florida, the Department of Justice announced today.
Claude Shaw aka Mac and Claude Mac, a U.S. citizen residing in Florida, was charged with two counts of mail fraud and 10-counts of wire fraud in connection with a fraudulent lottery scheme tied to Jamaica.
As alleged in the indictment, victims throughout the United States would receive telephone calls in which they were informed that they had won over a million dollars in a lottery and needed to pay fees in advance to claim their winnings. According to the indictment, the victims were instructed on how, and to whom, to send their money. The indictment alleges that the victims were instructed to send their money through wire transfers and the U.S. Postal Service to Shaw and others.
“These charges demonstrate our commitment to combating international lottery fraud, especially efforts to target potentially vulnerable individuals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Financial schemes like these interfere with Americans’ financial security and will not be tolerated.”
The indictment alleges that Shaw discussed plans to receive victims’ money via text messages, and after receiving money from victims, Shaw would send a portion of the victims’ money to accomplices in Jamaica. As alleged in the indictment, the victims never received any lottery winnings. Five of the 10 wire fraud counts are based on money Shaw is alleged to have wired from the United States to an individual in Jamaica. If convicted of mail fraud or wire fraud, Shaw faces a statutory maximum term of 20 years in prison on each count.
“Predators tied to Jamaican lottery fraud often seek to exploit vulnerable individuals in our society,” said Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s Miami, Florida Division. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch, bringing to justice those fraudsters who exploit their victims, including elderly individuals, using the U.S. mail.”
This indictment is part of the Department of Justice’s effort working with federal and other law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens.
Acting Assistant Attorney General Readler commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Shaw IndictmentSinaloa Cartel Leader Jaime Huerta-Tizoc Pleads Guilty to Drug Trafficking and Money Laundering Conspiracy and Agrees to Forfeit $2 MillionRead the Press Release
Assistant U.S. Attorney Adam L. Braverman (619) 546-6717
NEWS RELEASE SUMMARY – February 23, 2017
Sinaloa Cartel leader Jaime Huerta-Tizoc pleaded guilty to drug trafficking and money laundering charges in federal court today, admitting that he was responsible for moving tons of cocaine and marijuana and millions of dollars in proceeds across the U.S.-Mexico border.
Huerta-Tizoc appeared before U.S. Magistrate Judge Mitchell D. Dembin. The defendant was charged in a sealed indictment on August 19, 2016. A sealed arrest warrant was issued that same day. On December 15, 2016, was arrested at the San Ysidro, California Port of Entry as he attempted to enter into the United States.
In connection with the entry of his guilty plea, Huerta-Tizoc admitted that he was a high-level leader of the Sinaloa Cartel and that his primary responsibility was transporting large quantities of narcotics on behalf of the Sinaloa Cartel for importation from Mexico into the United States. Huerta-Tizoc utilized a fleet of tractor-trailers to transport ton quantity levels of both cocaine and marijuana from Mexico into the United States, including the Southern District of California. He also admitted that he agreed to transport millions of dollars in narcotics proceeds from the United States to Mexico. As part of his plea agreement, Huerta-Tizoc agreed to forfeit $2 million in United States Currency as proceeds of this conspiracy.
“Any day a Sinaloa cartel leader is no longer free to bring ton quantities of life-crushing drugs to our communities is a good day,” said Acting U.S. Attorney Alana W. Robinson. “As long as people are dying from overdoses and lives are being destroyed by illicit drugs, we will pursue the cartels.”
“Today, a dangerous drug trafficker pleaded guilty to his crimes,” said DEA San Diego Special Agent in Charge William Sherman. “Keeping this poison off the streets of our neighborhoods is our number one priority in the face of the addiction epidemic we are facing in the U.S. today.”
Sentencing is set for May 12, 2017, at 9 a.m. before U.S. District Judge Dana M. Sabraw.
DEFENDANT Criminal Case No. 16-CR-1895-DMS
Jaime Huerta-Tizoc Age: 41
SUMMARY OF CHARGES
Conspiracy to Import Cocaine and Marijuana, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Penalties: Mandatory Minimum 10 years and Maximum Life in Prison, $10,000,000 fine, $100 Special Assessment, Supervised Release up to Life
Conspiracy to Launder Money, in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and (h).
Penalties: Maximum 20 years in prison, a fine of the greater of twice the value of the property involved in the transaction or $500,000, $100 Special Assessment, Supervised Release up to 5 years
INVESTIGATING AGENCIES
Drug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
San Diego Law Enforcement Coordination Center
Homeland Security Investigations
Internal Revenue Service
Sentencings for February 17, 2017Read the Press Release
Hadd Mitchell McHenry, 41, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 17, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. McHenry was arrested in Sheridan, Wyoming. He received 78 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the Arizona Department of Public Safety.
Jeffrey Samuel Pino, 34, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 17, 2017, for possession with intent to distribute cocaine base. Pino was arrested in Cheyenne, Wyoming. He received 100 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
San Antonio Attorney Sentenced in Federal CourtRead the Press Release
In San Antonio today, 65-year-old Hugh Lappe Scott, Jr., a local San Antonio attorney, was sentenced to six months in federal prison for being an accessory after the fact announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Scott serve 6 months of home detention with electronic monitoring, surrender his law license, pay $1,209,692.60 restitution and be placed on supervised release for a period of three years after completing his imprisonment.
On January 14, 2016, Scott pleaded guilty to a one-count information charging him with knowing that the offense of Health Care Fraud had been committed against the United States. By pleading guilty, Scott admitted that he was general counsel for United Re, a Swiss corporation established and represented to be in the business of administering reinsurance, also known as stop loss, stop gap, and overlay insurance for health care benefit programs. During a deposition in January 2010, Scott stated under oath that a company called Vado AG was a reinsurer of United Re when he knew Vado AG could not pay claims made against United Re and thereby hindered the investigation of United Re.
This case was investigated by the Department of Labor. Assistant United States Attorney William R. Harris prosecuted this case for the Government.
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San Angelo Man Sentenced to Life in Prison for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Richard Jasso, 39, of San Angelo, Texas, to life in federal prison, following a federal jury conviction on one count of distribution and possession with intent to distribute 50 grams of more of methamphetamine and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” The Court found those convictions were final and valid, then, by statute, the Court imposed a life sentence, without parole.
Jasso was convicted at trial in November 2016 and has been in custody since his arrest on July 13, 2016. Twelve defendants were charged in an indictment, most from the San Angelo area, and were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. The indictment charged various felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo.
The government presented evidence at trial that Jasso delivered 54 net grams of pure methamphetamine to an individual working at the direction of the Drug Enforcement Administration. The buy took place in San Angelo.
With Jasso’s sentence, all 12 defendants charged in the indictment have been sentenced to the following federal prison sentences:
Rudolfo Ledesma Castaneda, Jr., 31, 360 months
Nancy Ann Flores, 41, 15 months
Adam Gabriel Castaneda, 30, 10 years
Daniel Roy Lombrana, 29, 87 months
Jesse Huerra, 31, Life
Antonio N. Flores, 52, 70 months
Bruno Rudolfo Velasquez, 32, 60 months
Joe Lopez, III, 33, 125 months
Jose G. Montez, 38, 151 months
Shayna Kaye McCann, 24, 10 monthsThe charges were dismissed against Silvia Prado, 36, of Austin, Texas.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Rosebud Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Conroy Chasing In Timber, age 34, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 24, 2016, Chasing In Timber did forcibly assault, resist, oppose, impede, intimidate, and interfere with a corrections officer from the Rosebud Sioux Tribe, while the officer was engaged in the performance of his official duties.
The charge is merely an accusation and Chasing In Timber is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Chasing In Timber was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Repeat Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Anthony Oby Loose, age 33, of Grand Rapids, Michigan was sentenced to twelve and a half years in prison for bank robbery. U.S. District Judge Paul L. Maloney also ordered Loose to pay $20,458.73 in restitution.
A federal grand jury indicted Loose for robbing the Fifth Third Bank in Big Rapids, MI, on July 20, 2016, the Four Flags Credit Union in Niles on July 13, 2016, and a Comerica Bank in Lansing on June 3, 2016. Loose was on parole for yet another bank robbery at the time all of these offenses were committed. Loose committed his robberies by telling the bank tellers he had a gun. Often he commanded more than one teller to give him money. And several times he demanded more money after the tellers had emptied their cash drawers. Two days after the robbery in Big Rapids, Loose was arrested at the Budgetel Inn in Grand Rapids after a brief standoff with law enforcement. FBI agents later received a letter Loose had written to his girlfriend indicating he had hidden money after the robbery. Following up on his letter and a diagram he had drawn, the FBI agents discovered $4,700 hidden behind the drywall in the bathroom of his hotel room.
Loose pled guilty in October to the Big Rapids robbery. The remaining charges for the other robberies were dismissed as part of a plea agreement, but Judge Maloney was allowed to consider evidence that he committed them in selecting a sentence for the Big Rapids robbery.
"The magnitude of the sentence imposed on Anthony Loose validates the collective and effective investigative efforts of the FBI and our local law enforcement partners to identify and arrest this serial bank robber," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These investigative partnerships, enthusiastically supported by the U.S. Attorney’s Office, are essential to our efforts to keep Western Michigan communities safe".
This case was investigated by the Federal Bureau of Investigation in conjunction with the Big Rapids Police Department, the Lansing Police Department, and the Niles Police Department. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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Pensacola Man Sentenced to 10 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Shawn Ryan Goodfleisch, 38, of Pensacola, was sentenced today to 10 years in federal prison and will be required to register as a sex offender. A jury convicted Goodfleisch on September 29, 2016, of receipt of child pornography and destruction of evidence to prevent seizure. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between January 2014, and October 2014, Goodfleisch received and possessed child pornography, including videos depicting images of minors less than 12 years of age engaged in sex acts. An undercover law enforcement officer discovered and downloaded files containing child pornography from a public sharing network that could be traced to Goodfleisch’s computer. After agents executed a search warrant at Goodfleish’s residence, a forensic analysis of his computer’s hard drive revealed numerous images and videos of child pornography. During the execution of the federal search warrant, Goodfleisch remotely accessed his computer using a cellular telephone and destroyed, or attempted to destroy, the contents contained on his computer.
United States Attorney Canova stated, “Protecting children from online exploitation is a top priority for this office, the Department of Justice, and our many law enforcement partners. Tragically, it is easy for child predators to access reprehensible content via the Internet.”
“Because of HSI special agent’s investigative authorities, along with our law enforcement partnerships, like with the Pensacola Police Department, this predator will now be behind bars - making our communities safer,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Pensacola Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Parmelee Woman Charged with Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Charlee Spotted Tail, age 21, was indicted on October 12, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $30,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 11, 2016, Spotted Tail, abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of seven years old.
The charge is merely an accusation and Spotted Tail is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spotted Tail was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Owner of Mall Kiosk Businesses Sentenced for Immigration and Money Laundering CrimesRead the Press Release
NEWPORT NEWS, Va. – Eyal Katz, 38, a citizen of Israel, was sentenced today to seven years in prison for his role in an immigration fraud and money laundering scheme. Katz was sentenced to three years of supervised release, a $20,000 fine and ordered to forfeit certain property.
According to the statement of facts filed with the plea agreement, Katz, operating from an office in Tel Aviv, Israel, would identify, recruit and send foreign nationals from Israel to the United States on B-2 visitor visas. Once those foreign nationals were in the United States, they would be sent to work for one of several business entities, known collectively as RASKO, a mall-based kiosk business in Virginia, Georgia, Pennsylvania and New Jersey through which they sold Dead Sea Salt products. Katz and his co-conspirators would provide housing and transportation to the foreign nationals.
From 2011 through the present, the conspirators, led by Omer Gur in the United States and Katz in Israel, recruited over 140 foreign nationals from Israel to work at the kiosks, in violation of the workers’ B-2 visitor visa status. From 2012 through 2014, RASKO received over $14 million through its kiosk based sales. Several million dollars from these sales were then routed to Israel-based accounts, including accounts controlled by Katz, and spent on lodging, travel, kiosk rentals and other expenses of the scheme. To date, nine of the ten charged defendants in the case have been arrested. Katz is the ninth defendant to plead guilty.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Christian Schurman, Acting Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels, Lisa R. McKeel and Kevin Hudson prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-17.
Owner of DTS Medical Supply Sentenced to 27 Years in Connection with $3.5 Million Health Care Fraud SchemeRead the Press Release
In San Antonio today, 55-year-old Daniel Thomason Smith was sentenced to 324 months in federal prison for his role in an estimated $3.5 million Health Care Fraud scheme announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Christopher Combs and Texas Attorney General Ken Paxton.
In addition to the prison term handed down this morning, United States District Judge Alia Moses ordered Smith to pay $3,269,300.11 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On June 28, 2016, a federal jury convicted Smith and his co-defendant, Kathleen Marina Kelly-Tuorila of one count of conspiracy to commit Health Care Fraud, one count of aiding and abetting Health Care Fraud, eleven counts of aiding and abetting aggravated identity theft and eight counts of aiding and abetting false statements related to a Health Care matter.
Both Medicare and Medicaid provide qualified beneficiaries with financial remuneration for the purchase of prescribed and necessary medical equipment. Such medical equipment would include powered wheelchairs, powered scooters and accessories related to those two devices. Medicare and Medicaid set a rate of compensation for each of these devices and the rate of compensation differed between devices and was to be based on the type of device that was prescribed for the beneficiary and delivered to the beneficiary.
Evidence presented during trial revealed that between May 2006 and January 2010, the defendants conspired to submit numerous false and fraudulent benefit claims to Medicaid and Medicare seeking compensation for powered wheelchairs. Smith employed Robin Renee Haigler, a third defendant in this case, on a commission basis to recruit customers primarily in the Waco area. Kelly-Tuorila used the collected customer information from Haigler to generate and submit fraudulent claims for reimbursement to Medicaid and Medicare for powered wheelchairs. According to court testimony regarding the aggravated identity counts, names of physicians were used to support claims for reimbursement when the named physician never prescribed a powered wheelchair for the customer and, in some instances, didn’t even know the customer and had never had them as a patient. Evidence also revealed that even though DTS billed for powered wheelchairs, they delivered less-expensive powered scooters to customers, which resulted in a larger payment from Medicaid/Medicare and a larger percentage of profit for DTS and Smith.
Defendants Smith and Kelly-Tuorila have been held in federal custody since the jury verdict in June 2016. Sentencing for Kelly-Tuorila has yet to be scheduled. The third defendant in this case, 60–year-old Robin Renee Haigler of Waco, TX, pleaded guilty to the conspiracy charge on August 17, 2015. Haigler was sentenced on November 7, 2016 to 87 months of federal imprisonment.
This investigation was conducted by the agents with the Federal Bureau of Investigation together with investigators from the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney Greg Surovic and Special Assistant United States Attorney Rex Beasley are prosecuting this case on behalf of the Government.
Okreek Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Selena Chief Eagle, age 24, was indicted on February 15, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each charge is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 10, 2017, Chief Eagle assaulted an individual with a knife with intent to do bodily harm, and that said assault resulted in serious bodily injury.
The charge is merely an accusation and Chief Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Chief Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ocean County, New Jersey, Business Owner Admits Operating Unlicensed Money Transmitting BusinessRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted owning and operating an unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
Yisroel Malamud, 53, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with running an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
The charge to which Malamud pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Deputy Chief, Criminal Division Eric W. Moran of the U.S. Attorney’s Office in Newark.
Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey
Northfield Vermont Man Sentenced to Six Months’ Imprisonment for Possession of Pipe BombRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Mark McCloud, 47, formerly of Northfield, Vermont, was sentenced to six months’ imprisonment by United States District Court Judge Geoffrey W. Crawford for unlawfully possessing explosive devices, that is two pipe bombs. Judge Crawford also sentenced McCloud to one year of supervised release and ordered him to pay a total of $5,000 in restitution to the victims. The defendant faced a maximum possible penalty of ten years in prison and a fine of up to $250,000.
According to court records, on December 9, 2015, McCloud lit an explosive device he was holding in his hand outside his residence at 50 North Street in Northfield. The device exploded. As a result, McCloud lost his left hand. Multiple bystanders were also injured, including his pregnant wife and a juvenile. The pipe bomb was made of copper tubing and explosive powder. According to court records, in executing a search warrant of McCloud’s home, law enforcement officers found several feet of fusing materials commonly known as “quick match” or “instantaneous fuse.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Vermont State Police, and the Northfield Police Department. The United States was represented by Assistant U.S. Attorney Joseph Perella. The defendant was represented by David McColgin, Esq.
North Carolina Man Sentenced to Prison for Failing to Pay Employment TaxesRead the Press Release
A North Carolina businessman was sentenced today to 15 months in prison for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra Hairston for the Middle District of North Carolina.
According to court documents, Paul Harvey Boone, 54, of Hillsborough, North Carolina, owned and operated Boone Audio Inc. in Burlington, North Carolina. For most of 2008 through 2011, Boone used company funds for personal expenses while failing to pay over the employment taxes withheld from his employees’ wages. Boone also failed to file his individual income tax returns and pay personal income taxes for tax years 2008 through 2011.
“Paul Boone’s prison sentence serves as a reminder to employers that willfully failing to comply with employment tax obligations is a crime,” said Acting Deputy Assistant Attorney General Goldberg. “We are committed to investigating, prosecuting and seeking incarceration of employers who use their employees’ funds to line their own pockets.”
“IRS – Criminal Investigation (CI) realizes the damaging consequences caused by Boone’s failure to pay over employment taxes,” said Acting Special Agent in Charge Michael C. Daniels of IRS-CI. “It results in the loss of tax revenue to the U.S. government and in the loss of future social security or Medicare benefits for the employees. Those who fail to do so will not be tolerated and will be prosecuted.”
In addition to the term of prison imposed, Boone was ordered to serve three years of supervised release and to pay restitution to the IRS in the amount of $385,610.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nine People Arrested Involving Hannibal Drug Trafficking ConspiracyRead the Press Release
Hannibal, MO – Police and federal agents made a series of early-morning raids and arrests in the St. Louis and Hannibal areas Wednesday that targeted a narcotics trafficking distribution conspiracy in the Hannibal, Missouri, area.
A federal grand jury indictment against 13 men and women handed down in December was unsealed Wednesday after the arrests began. The 19-page indictment describes the actions of couriers of drugs, as well as dealers, enforcers and suppliers.
According to the indictment, Tyrone Williams, aka "Fatman," and Justin Woodson, aka "Juddy," obtained cocaine from a source in Austin, Texas, who transported it to St. Louis. Woodson hired couriers, often females, to drive the cocaine from St. Louis to Hannibal. After arriving in Hannibal, it was converted into crack cocaine for distribution, primarily at an open-air drug market in the area of the 2000 block of Gordon Street in Hannibal, Missouri. Additionally, the indictment alleges that members of the conspiracy also distributed heroin, cocaine and crack cocaine in the Hannibal area, as well as other areas in the Eastern District of Missouri. There were also charges against five defendants for conspiring to launder the proceeds of the narcotics conspiracy. In addition to criminal charges, the indictment also seeks forfeiture of three vehicles and three pieces of property located in Hannibal, Missouri.
Individuals indicted:
- Justin Woodson, St. Louis, MO
- Tyrone L. Williams, Hannibal, MO
- Tyrone Robinson, Swansea, IL
- Terry T. Williams, St. Louis, MO
- Harold Williams, Hannibal, MO
- Ashley Shaw, Hannibal, MO
- Eric L. Dilworth, St. Louis, MO
- Corey L. Cobb, Hannibal, MO
- Christopher J. Harris, St. Louis, MO
- Sierra Parrish, Quincy, IL
- Louetta M. Dorsey, Mexico, MO
- Brian Jones, Hannibal, MO
- Donte M. Clausell, Hannibal, MO
During the course of the arrests, an individual not part of the indictment, Kalvin Anderson, Hannibal, MO, was arrested. A known associate of one of the indicted defendants, Anderson was arrested when law enforcement determined he was in possession of a firearm after having previously been convicted of a felony. A Glock nine millimeter was seized during his arrest.
The initial appearances of defendants Robinson, Shaw, Cobb, Harris, Parrish, Dorsey and Jones were held late Wednesday in front of United States Magistrate Judge Noelle Collins. All seven defendants were detained pending detention hearings that will be held Friday, February 24.
This case was investigated by multiple law enforcement agencies, including the Drug Enforcement Administration, the West Central Illinois Drug Task Force, Quincy Police Department, Troy Police Department, Lincoln County Sheriff’s Office, Adams County Sheriff’s Office, Hannibal Police Department and the Northeast Missouri Narcotics Task Force. Assistant United States Attorney Amanda Wick is handling the case for the U.S. 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.
New Jersey Man Charged with Assaulting A Federal OfficerRead the Press Release
Isiah Heyward, 24, of Sicklerville, NJ., was charged today by indictment with assault on a federal officer, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about December 10, 2016, Heyward forcibly assaulted, resisted, opposed, impeded, intimidated and interfered with a Correctional Officer of the Federal Bureau of Prisons while the officer was engaged in his official duties.
If convicted the defendant faces a maximum sentence of 8 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navajo Man from Shiprock Sentenced for Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Larry Lee Emerson, Jr., 36, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 37 months in prison for assaulting a federal officer. Emerson will be on supervised release for three years after completing his prison sentence.
Emerson was arrested in Aug. 2016, on a criminal complaint charging him with assaulting a Bureau of Indian Affairs (BIA) officer on July 6, 2016, in San Juan County, N.M. Emerson assaulted the officer while the officer was attempting to arrest him.
Emerson was indicted on Aug. 23, 2016, and charged with assaulting a federal officer who was engaged in the performance of his official duties. On Nov. 28, 2016, Emerson pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Middletown Man Indicted on Drug ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Marcello Whyte, age 33, of Middletown, Pennsylvania, was indicted on February 22, 2017, by a federal grand jury on drug charges.
According to United States Attorney Bruce D. Brandler, the indictment charges Whyte with possessing with the intent to distribute 250 grams of cocaine and traveling interstate for the purpose of drug trafficking. The charges arise out of an incident that occurred on March 16, 2016, when the defendant’s car was involved in a traffic stop conducted by the Pennsylvania State Police that led to the discovery of the cocaine in the defendant’s car.
The case was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the Harrisburg Resident Office of the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug charge is a 20-year term of imprisonment. A term of supervised release following imprisonment must be imposed as well as a potential fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Miami-Dade County Man Sentenced to 100 Years in Prison for Child Pornography OffensesRead the Press Release
Manuel Perez Gonzalez, 39, of Miami, was sentenced yesterday to 100 years in prison, by U.S. District Judge Ursula Ungaro, after having been convicted at trial of distribution, receipt and possession of child pornography. Gonzalez was also sentenced to 25 years of supervised release and ordered to register as a sex offender upon his release from prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD), made the announcement.
According to court documents and evidence at trial, on October 22, 2015, law enforcement officers executed a search warrant at Gonzalez’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents found Gonzalez’s laptop and a backup disc from another computer. A forensic examination of the devices revealed photographs of Gonzalez and evidence of the defendant’s use of social media. In addition, the forensic examination revealed numerous videos and images of child pornography. Residents from the searched home testified that Gonzalez used the laptop that was found to contain pornographic images.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD. This case was prosecuted by Assistant U.S. Attorneys Jonathan Kobrinski, Benjamin Widlanski, and Ignacio Vazquez.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Member of Sunland Park Heroin Trafficking Ring Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Armando Daniel Marquez, 54, of Sunland Park, N.M., pled guilty today in federal court in Las Cruces, N.M., to heroin trafficking charges resulting from a DEA-led investigation targeting a heroin trafficking ring operating out of Sunland Park, N.M.
The investigation targeted a heroin trafficking organization allegedly led by Raymundo Muñoz, 68, of Sunland Park, N.M., that allegedly obtained its heroin from Juan Francisco Rivera, 60, of El Paso, Tex. The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Ten alleged members of the heroin trafficking ring are charged in a 30-count indictment with participation in a heroin trafficking conspiracy and a series of substantive heroin trafficking offenses. The conspiracy charge alleges that all ten defendants conspired to distribute heroin in Doña Ana County and elsewhere between May 8, 2016 and July 12, 2016. It also includes 23 counts charging certain defendants with distributing heroin or possessing heroin with intent to distribute and six counts charging certain defendants with using communications devices (telephones) to facilitate heroin trafficking crimes.
According to the indictment, Rivera routinely supplied Muñoz with heroin, in quantities ranging from two to nine ounces, which was smuggled by couriers into the United States across the international border in El Paso. The indictment alleges that Muñoz took the heroin to his Sunland Park residence where he distributed the drugs to others. Members of the conspiracy allegedly used telephones to negotiate their heroin deals, arrange for heroin deliveries, and pay for the heroin.
During today’s proceedings, Marquez pled guilty to conspiracy, distribution of heroin and use of a communication facility to further the commission of a drug trafficking crime. In entering the guilty plea, Marquez admitted to conspiring with Munoz to distribute heroin to others between May and July 2016. More specifically, Marquez admitted that on May 26, 2016, he sold eight grams of heroin to other individuals and from May 26, 2016, through June 26, 2016, he facilitated the sale and delivery of approximately 40 to 60 grams of heroin.
Four other defendants previously have entered guilty pleas in the case. Alberto Lozano-Morales, 43, of Sunland Park, pled guilty on Dec. 6, 2016, and under the terms of his plea agreement, Lozano-Morales will be sentenced to a year and a day in prison followed by a term of supervised release to be determined by the court. Blanca Elisa Tovar, 42, of El Paso, Texas, pled guilty on Dec. 13, 2016, and under the terms of her plea agreement, Tovar will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court. Carlos Diaz, 38, of El Paso, Texas, pled guilty on Jan. 24, 2017. Juan Francisco Rivera pled guilty on Feb. 7, 2017, and under the terms of his plea agreement, Rivera will be sentenced to 108 months in prison followed by a term of supervised release to be determined by the court. Diaz, Lozano-Morales, Tovar, Rivera and Marquez are awaiting sentencing hearings which have yet to be scheduled.
The remaining co-defendants have entered pleas of not guilty to the charges in the indictment. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Las Cruces office of the DEA and Sunland Police Department investigated these cases with assistance from the El Paso office of the FBI, the U.S. Border Patrol, and the Gang Unit of the El Paso Police Department. Assistant U.S. Attorneys Dustin C. Segovia and Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office are prosecuting these cases as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Member of Large-Scale ‘ATM Skimming’ Scheme Sentenced to 57 Months Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Alin Carabus, 43, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Carabus admitted he was part of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
In addition to the prison term, Judge Martini also sentenced Carabus to five years of supervised release and ordered to pay restitution and forfeiture of $5 million.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Carabus, Vintila and Radu, have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark.
Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey
Man Pleads Guilty and is Sentenced to Prison for Hate Crime at Downtown Pittsburgh T-StationRead the Press Release
PITTSBURGH - Ryan Kyle pled guilty and has been sentenced in Pittsburgh to 36 months imprisonment, to run concurrently with the term of imprisonment imposed at Criminal No. 9241 of 2015, with credit for time served in state custody from February 16, 2016, to April 20, 2016, followed by three years supervised release, on a charge of violating the Hate Crimes Prevention Act, Acting United States Attorney Soo C. Song announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ryan Kyle, age 23, of Baldwin Borough, Pennsylvania.
According to information presented to the court, on May 30, 2015, Kyle violated the Hate Crimes Prevention Act by willfully causing bodily injury to K.L. because of K.L.’s perceived race, color, and national origin.
The government informed the Court that if the case were to proceed to trial, the evidence would establish that Kyle assaulted K.L., a then 53-year-old African-American man, because of K.L.’s actual and perceived color and race. The assault took place at the Wood Street T Station in downtown Pittsburgh on May 30, 2015. The assault was captured on Port Authority video and occurred following a Kenny Chesney concert at Heinz Field.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Port Authority Police Department for conducting the investigation leading to the successful prosecution of Kyle.
Man Pleads Guilty after Oceanside Cop Finds $2.1 Million in Illicit Drugs Hidden in Car’s Floorboards, Door Panels During Traffic StopRead the Press Release
Assistant U. S. Attorney Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – February 23, 2017
SAN DIEGO – San Ysidro resident Ricard Lujan, who was arrested in November during a routine traffic stop when an Oceanside police officer discovered millions of dollars’ worth of methamphetamine and cocaine hidden inside his vehicle, entered a guilty plea in federal court today.
Lujan pleaded guilty to two counts of possession of controlled substances with intent to distribute before U.S. Magistrate Judge Barbara Lynn Major. Lujan was arrested on November 17, 2016, after the police officer discovered the drugs hidden inside the floorboards, door panels, center console and elsewhere in Lujan’s vehicle.
In his plea agreement, Lujan admitted that he drove his vehicle loaded with controlled substances from Mexico into the United States and that he intended to deliver the controlled substances to another person.
According to a federal complaint, the Oceanside Police Officer was conducting random vehicle registration checks at 12:40 a.m. on Harbor Drive in Oceanside. While doing this he noticed a car with expired tags. The officer then saw Lujan enter the Mitsubishi Endeavor SUV and attempt to leave the area. The officer stopped the vehicle. While talking to the officer, Lujan, the registered owner of the vehicle, appeared nervous and agreed to a search of his vehicle.
A Border Patrol canine handler responded to the traffic stop to assist Oceanside Police. The dog alerted to the odor of narcotics. Agents from the Drug Enforcement Administration, San Diego Narcotics Task Force, subsequently searched Lujan’s vehicle and found 99 packages that were vacuum sealed in plastic containers of cocaine and 58 rectangular vacuum sealed in plastic containers of methamphetamine. The agents seized approximately 89.50 kilograms of cocaine and approximately 68.90 kilograms of methamphetamine.
The estimated wholesale of the cocaine is $1.7 million dollars. The estimated wholesale value of the methamphetamine is $450,000.
Lujan is scheduled for sentencing on June 5, 2017 at 9 a.m. before U.S. District Judge Roger T. Benitez. He faces up to 20 years in custody.
DEFENDANT
Ricardo Lujan, age 44
San Ysidro, California
CHARGE
Criminal Case 16CR2910BEN
Two Counts of possession with intent to distribute controlled substances (cocaine and methamphetamine)
Title 21, United States Code, Section 841
Penalties: 20 years in custody, 3 years of supervised release, $500,000 fine; $100 special assessment
AGENCIES
Oceanside Police Department
Drug Enforcement Administration, San Diego Narcotics Task Force
U.S. Border Patrol, San Clemente Station
Man Found Guilty of Production of Child PornographyRead the Press Release
SAN JUAN, P.R. – After an eight-day trial before U.S. District Court Judge Carmen C. Cerezo, a jury found Noel Turner-Ayala guilty of child pornography offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Turner-Ayala is facing a mandatory minimum sentence of fifteen (15) years imprisonment and a statutory maximum of thirty (30) years, and a maximum possible fine of $250,000. His sentencing was scheduled for June 20, 2017.
The indictment charged that from in or about May 12, 2014 through June 6, 2014, Turner-Ayala, did employ, use, persuade, induce, entice or coerce a female minor, identified as Jane Doe, to engage in sexually explicit conduct, namely the lascivious exhibition of the genital areas and performing sexual acts, for the purpose of producing a visual depiction of such conduct knowing that such visual depiction would be transported or transmitted using any means or facility of interstate or foreign commerce.
The evidence at trial proved that defendant Turner-Ayala had requested sexually explicit images of the then 15-year-old minor through Facebook Messenger. During trial the evidence showed that the defendant’s relationship with the minor victim was not just a “virtual relationship,” but one wherein they also communicated via What’sApp, via telephone and, in person.
“We congratulate the agents who investigated this case, and our attorneys for its successful prosecution,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The conviction of this predator showed the commitment of our law enforcement agencies to apprehend and prosecute criminals who victimize our children.”
The case was investigated by the ICE-HSI and prosecuted by Assistant U.S. Attorney Elba Gorbea.
Lubbock Methamphetamine Traffickers SentencedRead the Press Release
LUBBOCK — Two Lubbock residents who pleaded guilty to methamphetamine trafficking conspiracy charges were sentenced today by Senior U.S. District Judge Sam R. Cummings, announced U.S. Attorney John Parker of the Northern District of Texas.
Jonathan Lovato, 34, was sentenced to two 480-month sentences in federal prison, to run concurrently, and Crystal Ann Alaniz, 33, was sentenced to 60 months in federal prison. Each pleaded guilty in November 2016 to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. Lovato pleaded guilty to an additional charge of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Co-defendants Arleen Theres Keithley, 36, Juan Carlos Lara-Ochoa, 24, and Jose Alberto Cibrian, 41, pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
According to the factual resume filed in the case, on March 17, 2016, officers with the Lubbock Police Department conducted an undercover narcotics purchase from a hotel room in Lubbock and were watching the room to monitor traffic to and from the location while a search warrant was obtained. During this surveillance, officers saw the main target of the investigation, Lovato, arrive in a silver sedan and begin to take items from the hotel room. Lovato attempted to leave the hotel in his vehicle and, when officers tried to detain him, he sped away. He evaded officers for several blocks, driving in excess of the speed limit, against oncoming traffic, and through several traffic-controlled intersections without observing the traffic signals. Lovato’s vehicle was stopped when he struck several other vehicles as he drove against oncoming traffic into a busy street intersection. One of the individuals in a vehicle he struck sustained life-threatening injuries and was pronounced dead at the scene.
As officers approached Lovato’s vehicle, they discovered he had a 9mm caliber pistol in his waistband. A package containing a substance, later verified as 118.13 grams of methamphetamine, was found in the glove box and five cell phones were found throughout the vehicle. Lovato admitted he possessed the firearm and admitted to selling methamphetamine.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Longtime Scam Artist Sentenced to More Than 15 Years in Prison for Telemarketing Fraud and Obstruction of JusticeRead the Press Release
SAVANNAH, GA: Stacy Paul Waddell, 45, of Savannah and elsewhere, was sentenced earlier this week by U.S. District Court Judge William T. Moore, Jr. to 183 months of in prison for wire fraud, selling counterfeit coins and tampering with official proceedings. Waddell’s sentencing followed his conviction in August of 2016 after a one-week jury trial. Under federal law, the Court’s sentence was imposed without the possibility of parole.
According to the evidence presented during trial and at sentencing, Waddell incorporated, operated and controlled a variety of companies that purported to engage in the sale of precious metals. With the help of others who he met at a Tampa-area strip club, Waddell posted advertisements on the Internet that offered to sell gold and silver at deeply discounted prices. After potential customers contacted Waddell by phone or text message, Waddell then lied about the availability of the metals and falsely promised quick delivery. Relying on Waddell’s misrepresentations, his victims wired money into bank accounts Waddell controlled. Waddell used those funds to gamble at casinos and never made many of the shipments he had promised. Additionally, Waddell knowingly sold counterfeit coins to at least one of his victims and then, after his arrest, asked an acquaintance to destroy them. The losses suffered by Waddell’s victims totaled over $800,000.
United States Attorney Edward J. Tarver stated, “Waddell is serial offender who has preyed on the people of this community and elsewhere since he was a teenager. Unfortunately, he graduated from passing bad checks to cheating people out of their savings and homes, all in a selfish effort to maintain an expensive lifestyle and perpetuate his gambling habit. Regardless of how he fared at the gaming tables, the worst bet Waddell ever made was thinking that he would evade justice and not be held accountable for his crimes.”
“Use caution when approaching any investment. If the subject or company pushing the investment is promising high returns, in this particular case through low gold prices, that should raise a red flag for any investor,” cautioned U.S. Secret Service Resident Agent in Change Glen M. Kessler. “The Secret Service, in conjunction with its many law enforcement partners in Georgia, across the United States and around the world, continues to successfully combat these crimes by working closely with experts from all affected sectors to constantly refresh and adapt our investigative methodologies,” said Kessler.
Antonio J. Gomez, U.S. Postal Inspector in Charge of the Miami Division, stated, “The U.S. Postal Inspection Service will stop at nothing to bring fraudsters and swindlers to account for their crimes. By partnering with the Secret Service and other federal agencies, Postal Inspectors will continue to ensure that the U.S. Mail is a safe and secure means of conducting legitimate business."
The United States Secret Service and United States Postal Inspection Service investigated the case with assistance from the Pooler Police Department and Armstrong State University Police Department Cyber Forensics Division. Assistant United States Attorneys Brian T. Rafferty and Theodore S. Hertzberg prosecuted the case and represented the United States at trial. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.