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Thursday 23 February 2017
Agencies Host Community Showing of Chasing the Dragon: The Life of an Opiate AddictRead the Press Release
GREAT FALLS, MT – In an effort to combat the growing epidemic of prescription drug and heroin abuse, the FBI and DEA have released Chasing the Dragon: The Life of an Opiate Addict, a documentary aimed at educating students and young adults about the dangers of addiction. The film focuses on educating the public about the dangers of opioid addiction and features stark, first-person accounts by individuals who have abused opioids, or whose children have abused opioids with tragic consequences. According to the Centers for Disease Control and Prevention, 44 people die every day in America from an overdose of prescription painkillers. Since 2014, more than 14,000 people have died from prescription opioid overdoses alone.
The public is invited to a free viewing of the film on Wednesday, March 1, 2017 from 6:00 to 7:00pm at the Mansfield Theatre in the Civic Center (2 Park Drive, Great Falls). In addition, the public is welcome to attend, at the same location, a reception prior to the screening from 5-6pm and a post-screening discussion of issues related to opioid addiction with a panel of law enforcement and community professionals including Barbara Roach - Special Agent in Charge USDEA, Honorable Michael Cotter - US Attorney for the District of Montana, Honorable Judge Pinksi - Cascade County District Court Judge, Brian Lockerby - Administrator for MTDCI, Dr. Brad Nieset - Medical Director Benefis Outpatient Specialty Clinics, Nikki Phillips - BSN, Benefis Pain Management Clinic, and A Representative From The Addiction & Recovery Field.
United States Attorney Mike Cotter stated, “The rise of heroin use and the abuse of prescription opioids has devastated communities all over the United States. The best way to avoid that in Montana is to get our local communities to confront these issues early and often, and I can tell you, our local communities have responded, and are responding. I am proud to be a part of this effort and I look forward to seeing many of my former friends, neighbors and colleagues at this event.”
DEA Special Agent in Charge Barbra Roach stated, “The prescription opioid epidemic, and the subsequent rise in the use of heroin and other controlled substances, is one of the most important problems in our nation today. It’s become pervasive in our society, extending from metropolitan to rural areas, and it either touches us directly or those that we know. That is why events such as these are so important. We need to take the time to educate our communities, and our neighbors, on the risks inherent in the abuse of prescription pain killers. Forums like the one in Great Falls are the first, best step in addressing and correcting the problem.”
The event is a joint effort by GFPD, USDEA, Substance Abuse Prevention Alliance, Benefis Health Systems, MTDCI, Montana U.S. Attorney’s Office, and Big Sky Managed Care to educate community members of the growing opioid epidemic.
Aberdeen Jail Corrections Officer Charged in Public Corruption InvestigationRead the Press Release
UPDATE
The defendant in this case, CHARLES ANDREW STOCKER, was acquitted of the charges described in the press release below following a jury trial in March 2018.
A corrections officer at the Aberdeen, Washington City Jail will make his initial appearance in U.S. District Court in Tacoma this afternoon, following an FBI investigation into allegations that the corrections officer was tipping-off drug traffickers about law enforcement activities, announced U.S. Attorney Annette L. Hayes. CHARLES ANDREW STOCKER, 49, is charged in a criminal complaint with two counts of aiding and abetting drug trafficking and two counts of misprision of a felony. STOCKER had been on administrative leave since last summer when federal law enforcement served court authorized search warrants on his home and business.
According to the criminal complaint unsealed today, members of the Grays Harbor Drug Task Force informed the FBI and the Drug Enforcement Administration (DEA) about indications STOCKER had been providing sensitive law enforcement information to known drug dealers in the Aberdeen area. During their drug trafficking investigations, Task Force members became aware of allegations that STOCKER had warned a drug dealer about an individual working with law enforcement as a confidential source attempting to purchase drugs. The FBI led investigation uncovered a recording of a jail call that implicated STOCKER in providing this information. In addition, the investigation revealed that STOCKER passed sensitive law enforcement information, including that the Task Force was listening to jail calls, to two other drug dealers who worked together to distribute drugs in the area. STOCKER also allegedly agreed to hold money for one of these drug targets. That target later worked with law enforcement and under law enforcement supervision delivered money to STOCKER for safe keeping. The money was recovered when the search warrants were executed. According to the Complaint, STOCKER made a variety of false statements at the time the search warrants were executed.
Aiding and abetting a drug trafficking offense is punishable by a term of imprisonment of up to 20 years. Misprision of a felony is punishable by a term of imprisonment of up to 3 years.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Vince Lombardi.
stocker_complaint_0.pdf
Wednesday 22 February 2017
Zuni Pueblo Man Sentenced to Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Vander Tsethlikai, 53, a member and resident of Zuni Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 18 months in prison followed by three years of supervised release for his domestic assault by a habitual offender conviction.
Tsethlikai was arrested on Jan. 6, 2016, on an indictment charging him with assault of an intimate partner by a habitual offender. According to the indictment, Tsethlikai committed the offense on July 13, 2015, on Zuni Pueblo in McKinley County, N.M. Tsethlikai was charged as a habitual offender based on his two prior domestic violence convictions in Zuni Pueblo Tribal Court. Zuni Pueblo Tribal Court records reflect that Tsethlikai’s prior convictions occurred in 2010 and 2014.
On Oct. 27, 2016, Tsethlikai pled guilty to the indictment and admitted that on July 13, 2015, he assaulted the victim, his intimate partner, causing her to suffer lacerations above the right eye and on the right ear. He also acknowledged his two prior tribal court convictions.
This case was investigated by the Zuni Pueblo Tribal Police Department. The case was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Zuni Pueblo Man Sentenced for Conviction on Federal Firearms and Residential Burglary ChargesRead the Press Release
ALBUQUERQUE – John David Lee Bacy, 25, a member and resident of Zuni Pueblo, N.M., was sentenced today to 18 months in prison for his conviction on firearms and residential burglary charges in federal court in Albuquerque, N.M. Bacy will be on supervised release for three years after completing his prison sentence.
Bacy was charged in a three-count indictment filed on March 23, 2016, with unlawfully possessing stolen firearms on Aug. 13 and 14, 2014, and with residential burglary on Aug. 13, 2014. Bacy committed these crimes on Zuni Pueblo in McKinley County, N.M.
On July 20, 2016, Bacy pled guilty to unlawfully possessing stolen firearms and committing a residential burglary on Aug. 13, 2014. In entering the guilty plea, Bacy admitted entering a residence on the Zuni Indian Reservation, prying open a gun safe, and taking firearms without the owner’s authorization. Bacy also admitted that he attempted to pawn three of the firearms the next day.
This case was investigated by the Zuni Tribal Police Department and the McKinley County Sheriff’s Office. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
Whiting Man Pleads Guilty to Social Security FraudRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel Fitzsimmons, 54, of Whiting, Maine, pleaded guilty today in U.S. District Court to social security fraud.
According to court records, the defendant began receiving Social Security Disability Insurance (“SSDI”) payments in 2002. SSDI benefits are paid by the Social Security Administration (“SSA”) to people with disabilities. From 2002 to 2013, the defendant and his dependents received over $157,000 in SSDI benefits. In order to obtain those benefits, the defendant was required to certify that he could no longer perform “substantial gainful work.” In numerous forms submitted to the SSA and at an in-person SSA interview, the defendant reported little work activity and very low annual earnings between 2002 and 2013. An investigation revealed that, contrary to his statements, the defendant was actively and consistently engaged in commercial fishing over that period.
The defendant faces up to five years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by SSA’s Office of Inspector General and the U.S. Coast Guard.
Wheeling Island man sentenced for crack cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Clarence William Bertram, 24, of Wheeling, West Virginia, was sentenced in federal court today to 24 months incarceration for crack cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Bertram pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location” in November 2016. He admitted to selling crack cocaine near Madison Elementary School in Ohio County, West Virginia.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
United States Sues Philadelphia Retail Food Store for Selling Improperly Labeled Poultry Held Under Insanitary ConditionsRead the Press Release
PHILADELPHIA, PA – The United States has filed a lawsuit to stop Philadelphia retail store J & B Poultry Market, Inc., and its president Johnny Wong, from selling chickens that are improperly labeled, and stored under insanitary conditions whereby they may have been rendered injurious to health. Acting United States Attorney Louis D. Lappen today announced the filing of the civil Complaint in federal district court.
The Poultry Products Inspection Act prohibits companies and individuals from selling “misbranded” or “adulterated” poultry. The Complaint alleges that United States Department of Agriculture (“USDA”) inspections of the retail store establish that chickens stored by the defendants were misbranded because they lacked safe handling instructions and other information required by law, and were adulterated because they were held under unacceptable conditions including in the back of a pick-up truck outside, and at ambient temperatures in the store as high as 80 degrees.
The United States seeks a permanent injunction to prevent defendants from further selling chickens that are improperly labeled and held under insanitary conditions.
This case is being handled by Assistant United States Attorney Stacey L. B. Smith. Assistance is being provided by Lauren Axley, USDA Attorney Advisor.
U.S. Citizen Formerly Residing in Mexico Sentenced for Trafficking More Than 1,000 Pounds of Marijuana in New MexicoRead the Press Release
ALBUQUERQUE – Mario Talavera, 34, was sentenced yesterday in federal court in Albuquerque, N.M., to 78 months in prison followed by five years of supervised release for his conviction on marijuana trafficking charges. Until his arrest in this case, Talavera, a U.S. citizen, resided in Juarez, Mexico.
Talavera and eight co-defendants were charged in an indictment filed on Sept. 9, 2008, with conspiracy and marijuana trafficking offenses. The indictment was superseded on Oct. 8, 2008, to include two additional defendants. The superseding indictment charged Talavera and his ten co-defendants with conspiracy to possess more than 1000 kilograms of marijuana from March 2005 through Sept. 2008. It also charged Talavera and a co-defendant with possessing more than 100 kilograms of marijuana with intent to distribute on July 5, 2008. According to the superseding indictment, Talavera and his co-defendants committed the crimes in Bernalillo County, N.M.
Talavera was arrested on the charges in the superseding indictment in March 2015. On May 27, 2016, he pled guilty to Count 2 of the superseding indictment charging him with possession of marijuana with intent to distribute. In entering the guilty plea, Talavera admitted that on July 5, 2008, Albuquerque Police Department (APD) officers found approximately 495.91 kilograms (1,091 pounds) of marijuana hidden in the bed of his truck during a traffic stop.
To date, nine of the ten co-defendants have pled guilty and have been sentenced. Cruz Lopez-Acevedo, 41, a Mexican national, is in custody in Mexico and is pending proceedings to determine whether he will be extradited to the United States to face the charges against him in New Mexico federal court. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and APD. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
U.S. Attorney Charges Inmate Health Consultant with Lying to FBIRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office on Tuesday charged a Vestavia Hills man with making false statements to the FBI in relation to payments from a contractor providing inmate health care at the Jefferson County Jail, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
Prosecutors filed a one-count information in U.S. District Court charging MICHAEL P. GODDARD, 68, a consultant on inmate health at the county jail, with falsely telling FBI agents that payments he received from a Jefferson County contractor were unrelated to a specific contract.
A plea agreement with Goddard filed in conjunction with the charging document, states that Birmingham FBI agents questioned Goddard in August 2016 while they were investigating recurring monthly payments to him from Davis & Associates, a Birmingham consulting firm, and “another entity that were funded by Health Assurance, LLC, a company that from 2007 through 2011 had contracts with the Jefferson County Sheriff’s Office to provide health care to Jefferson County jail inmates.”
According to the plea agreement, the sheriff’s office contracted with Health Assurance in about February 2007 to provide inmate health care, and the contract could be renewed yearly. Soon after Health Assurance began receiving payments from Jefferson County, Goddard began receiving monthly payments from Davis & Associates that were funded by Health Assurance, the plea agreement states.
In July 2011, the payments to Goddard funded by Health Assurance began coming from a different entity, according to the plea agreement. The documents do not name the second entity. The payments to Goddard continued to about October 2011, when Health Assurance’s contract with the Jefferson County Sheriff’s Office ended, the plea agreement states.
FBI agents interviewed Goddard on Aug. 31 and served him with a grand jury subpoena for records. The agents asked Goddard about the monthly payments he received that were funded by Health Assurance. Goddard told the agents that the monthly payments he received were unrelated to Health Assurance’s contracts with Jefferson County.
Goddard knew that statement was false “in that he knew the payments he received were directly related to the contracts, and he knew that this false statement was material to the FBI’s investigation,” the plea agreement states.
The maximum penalty for making a false statement to the FBI is five years in prison and a $250,000 fine.
The FBI is investigating the case, which Assistant U.S. Attorney George Martin is prosecuting.
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Two Northern Panhandle men are sentenced for illegal possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Jeffrey L. Sells, Jr., 26, of Moundsville, West Virginia, was sentenced to 41 months incarceration for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Sells was found in possession of a .22 caliber pistol, three 9 mm pistols, two .22 caliber rifles, two 12-gauge shotguns, and a .223 caliber rifle in Marshall County on June 16, 2015. Sells pled guilty to one count of “Drug User and Addict in Possession of a Firearm” in September 2016.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Moundsville Police Department investigated.
Additionally, Jerod Kernen, 32, of Weirton, West Virginia, was sentenced to 51 months incarceration for illegally possessing a firearm.
Kernen, who had previously been convicted of felony offenses in South Carolina, is prohibited from possessing a firearm. He admitted to possessing a .44 caliber revolver in Hancock County, West Virginia in August 2016.
Kernen pled guilty to one count of “Felon in Possession of a Firearm” in December 2016.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weirton Police Department, and the Steubenville Police Department investigated.
U.S. District Judge John Preston Bailey presided over both cases.
Two Buffalo Men Indicted for Cocaine TraffickingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 10-count indictment charging John Nelson, 41, and Lawrence Russell, 39, both of Buffalo, NY, with conspiracy, possession with intent to distribute and distribution of cocaine and crack cocaine, and maintaining drug-involved premises. The charges carry a mandatory minimum penalty of 5 years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment, Nelson and Russell sold cocaine and crack cocaine over a two-year period from 2013 to 2015. At times, the defendants used a house on 14th Street on the West Side of Buffalo for their drug activities.
Nelson was arraigned today before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on February 24, 2017. Russell is currently in jail pending a state parole violation proceeding and will be arraigned in federal court on February 24, 2017.
The indictment is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Torrance Airplane Broker Pleads Guilty to Laundering Drugs Proceeds through Acquisition of Multiple Airplanes for Drug TraffickersRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – February 21, 2017
SAN DIEGO – Torrance airplane broker Hector Hernandez pleaded guilty in federal court today to money laundering charges, admitting that he helped hide the true origin of drug money through the purchase of airplanes for drug traffickers.
Hernandez, 48, entered his guilty plea before U.S. District Judge Michael M. Anello to conspiracy to launder drug proceeds and conspiracy to engage in monetary transactions. Sentencing is set for June 5, 2017 at 9 a.m. before Judge Anello.
Hernandez was the owner of Pacific Coast Aero at Zamparini Field, at Torrance Airport. In his plea agreement, he admitted that he facilitated the purchase of airplanes and airplane parts for exportation and deregistration to Mexico on behalf of third parties. Hernandez admitted that he arranged for delivery of substantial bulk cash to codefendant Vicente Contreras-Amezquita
According to an indictment, codefendant Contreras-Amezquita used 46 bank accounts at multiple U.S. financial institutions and made structured cash deposits in excess of $3 million dollars for the purchase of over 35 airplanes. As part of the scheme, Hernandez admitted that he facilitated the purchase of seven airplanes.
As part of his guilty plea, Hernandez admitted that knew that bulk cash was derived in part from unlawful proceeds that constituted a felony and were criminally derived. Hernandez believed that the proceeds or bulk cash were in part from drug trafficking activities and that the planes would be used for drug trafficking activities in Mexico, even though Hernandez was not personally involved in drug trafficking activities.
According to the indictment, codefendant Contreras-Amezquita and others facilitated the acquisition and purchase of the Cessnas and airplane parts, including auxiliary fuel tanks, heavy duty tires and landing gear for landing on clandestine airfields. Cessna 206s and 210s are types of airplanes preferred by drug-trafficking organizations operating in Mexico because of their reliability, speed and ability to carry heavy payloads over long distances.
Codefendant Vicente Contreras-Amezquita’s hearing was continued to March 16, 2017. His trial date is on April 25, 2017.
DEFENDANT Case Number 15CR1144-MMA
Hector Hernandez Age 48 Wilmington, California
GUILTY PLEA TO TWO CONSPIRACY CHARGES
Count 1
Conspiracy to Launder Money by avoiding transaction reporting requirements and concealing nature, location, source, ownership and control of drugs proceeds); Title 18, United States Code, Sections 1956(h), 1956(a)(1)(B)(i) and 1956(a)(1)(B)(ii); 20 years maximum, 3 years of supervised release; $100 special assessment; $500,000 fine
Count 2
Conspiracy to Engage in Monetary Transactions); Title 18, United States Code, Sections 1956(h) & 1957; 10 years maximum, 3 years of supervised release; $100 special assessment; $500,000 fine
AGENCIES
Internal Revenue Service –Criminal Investigations
Drug Enforcement Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three People Admit Conspiracy to Import and Traffic Counterfeit Electronic ProductsRead the Press Release
NEWARK, N.J. – Three people admitted today that they smuggled counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States, U.S. Attorney Paul Fishman of the District of New Jersey, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Terence Opiola of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Gurbir Grewal announced.
Andreina Becerra, 31, a Venezuelan national, Roberto Volpe, 34, an Italian national, and Rosario La Marca, 54, an Italian national and resident of Naples, Italy, were originally charged in an eight-count indictment returned in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
The three defendants pleaded guilty before U.S. District Court Judge Kevin McNulty in Newark federal court to Count One of the indictment, charging conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging trafficking in counterfeit goods.
As part of their plea agreements, Volpe and Becerra, who are husband and wife, agreed to forfeit their interest in 10 bank accounts, three Florida condominiums, and approximately $167,000 in cash. La Marca agreed to forfeit funds in a corporate bank account which represented proceeds of the charged offenses.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
The conspiracy charge to which the defendants pleaded guilty in Count One carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gain or loss associated with the offense, whichever is greatest. The charge for trafficking in counterfeit goods to which the defendants pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum fine of $2 million. Sentencing for La Marca is scheduled for June 14, 2017. Sentencing for Volpe and Becerra is scheduled for Sept. 7, 2017.Jianhua Li, a Chinese national currently residing in California, was charged in the original indictment, but has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office Financial Crimes Unit, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Senior Litigation Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey and Senior Counsel Sarah Chang of the Criminal Division’s Computer Crime and Intellectual Property Section.
Three Individuals Plead Guilty to Conspiracy and Trafficking of Counterfeit Electronic Goods into the United StatesRead the Press Release
Three individuals pleaded guilty today for their roles in a scheme to smuggle into the United States counterfeit electronic devices, including those purporting to be genuine Apple iPhones, iPads and iPods, from China for sale in the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Paul Fishman of the District of New Jersey, Special Agent in Charge Terence Opiola of Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Gurbir Grewal made the announcement.
Andreina Becerra, 31, a U.S. citizen, Roberto Volpe, 34, an Italian national, and Rosario La Marca, 54, an Italian national and resident of Naples, Italy, each pleaded guilty before U.S. District Court Judge Kevin McNulty of the District of New Jersey to one count of conspiracy to traffic in counterfeit goods and labels, to smuggle goods into the United States, and to structure financial transactions, and one count of trafficking in counterfeit goods. Becerra and Volpe will be sentenced on Sept. 7. La Marca will be sentenced on June 14.
According to the documents filed in this case and statements made in court, from July 2009 through February 2014, the defendants conspired to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including digital cameras, iPads, iPhones, and iPods, along with labels and packaging bearing counterfeit Apple and Sony trademarks. Defendants also wired or transferred more than 100 monetary instruments and funds totaling over $1.1 million in sales proceeds from U.S. accounts into accounts in China.
Further, the documents filed in this case and statements made in court showed that defendants shipped devices separately from the labels bearing counterfeit trademarks for later assembly to avoid detection by U.S. Customs officials. The devices were then shipped to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
Jianhua Li, also known as “Jeff Li,” a Chinese national currently residing in California, was charged as a co-defendant in an indictment filed on April 17, 2015, but has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Senior Counsel Sarah Chang of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Leslie Schwartz and Sarah Devlin of the District of New Jersey are prosecuting the case.
Texas man sentenced to 105 months in prison for Bossier City methamphetamine distribution chargeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Texas man was sentenced Tuesday to more than eight and a half years in prison for distribution of methamphetamine.
David Wayne Carlisle, 41, of Marshall, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of possession of methamphetamine with intent to distribute. He was also sentenced to five years of supervised release. According to the December 21, 2016 guilty plea, law enforcement agents arrested Carlisle at a hotel in Bossier City on February 5, 2016. A source indicated that Carlisle would be in town that day to sell illegal narcotics. Carlisle and his hotel room were searched, and agents found more than 5 grams of methamphetamine and $43,305 in cash.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Texas Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
WASHINGTON – A Texas resident was sentenced to serve 22 months in prison today for preparing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, a Mexico national unlawfully residing in the United States, operated TX ASAP Tax Services and Fiesta Tax Service located in Greenville. From 2011 through 2014, Ramirez prepared approximately 1,163 federal tax returns that included fraudulent business income, losses, credits and deductions and sought refunds to which her clients were not entitled. Ramirez intended to cause a tax loss of approximately $1,155,383.
In addition to the term of prison imposed, Ramirez was ordered to serve one year of supervised release and to pay $128,958.85 in restitution to the Internal Revenue Service (IRS) by District Judge Ed Kinkeade. Judge Kinkeade also ordered Ramirez removed from the United States to Mexico following her sentence.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Parker commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Melanie Smith of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Texas Return Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Texas resident was sentenced to serve 22 months in prison today for preparing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney John R. Parker for the Northern District of Texas.
According to documents filed with the court, Lourdes Ramirez, a Mexico national unlawfully residing in the United States, operated TX ASAP Tax Services and Fiesta Tax Service located in Greenville. From 2011 through 2014, Ramirez prepared approximately 1,163 federal tax returns that included fraudulent business income, losses, credits and deductions and sought refunds to which her clients were not entitled. Ramirez intended to cause a tax loss of approximately $1,155,383.
In addition to the term of prison imposed, Ramirez was ordered to serve one year of supervised release and to pay $128,958.85 in restitution to the Internal Revenue Service (IRS) by District Judge Ed Kinkeade. Judge Kinkeade also ordered Ramirez removed from the United States to Mexico following her sentence.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Parker commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Melanie Smith of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Statement by Attorney General Jeff Sessions on the Withdrawal of Title IX GuidanceRead the Press Release
The Department of Justice and the Department of Education today withdrew guidance for educational institutions, issued in 2015 and 2016, that took the position that the prohibitions in Title IX of the Education Amendments of 1972 and implementing regulations against discrimination on the basis of sex require access to sex-segregated facilities on the basis of gender identity rather than biological sex. Attorney General Jeff Sessions issued the following statement:
“The Department of Justice has a duty to enforce the law. The prior guidance documents did not contain sufficient legal analysis or explain how the interpretation was consistent with the language of Title IX. The Department of Education and the Department of Justice therefore have withdrawn the guidance. Congress, state legislatures, and local governments are in a position to adopt appropriate policies or laws addressing this issue. The Department of Justice remains committed to the proper interpretation and enforcement of Title IX and to its protections for all students, including LGBTQ students, from discrimination, bullying, and harassment.”
State and Federal Indictments Unsealed: 21 Defendants Arrested on Gun and Drug Charges After Two-Year Undercover Collaborative Law Enforcement EffortRead the Press Release
Contact Person: A. Lance Crick (864) 282-2105
Columbia, South Carolina-------United States Attorney Beth Drake announced today that 21 individuals have been arrested on state and federal charges for drug and firearms violations.
Beginning in October of 2014, the ATF Charlotte Field Division, working with several law enforcement partners, began an undercover investigation in North Charleston, launched as the North Charleston Violent Crime Community Impact Investigation. The investigation focused on drug trafficking activities as well as the illegal possession of firearms. This two-year investigation, which involved nearly 200 undercover operations, resulted in purchase of 58 firearms, over three and a half pounds of cocaine and crack cocaine, 80 grams of methamphetamine and 41 grams of heroin.
This operation was a combined law enforcement effort in the city of North Charleston and surrounding communities and included special agents from ATF, ICE-Homeland Security Investigations, as well as officers and deputies from the North Charleston Police Department, the Charleston Police Department, the Charleston County Sheriff’s Office, and the Dorchester County Sheriff’s Office. The charges filed against the defendants in this operation are being prosecuted by the Ninth Circuit Solicitor’s Office and the U.S. Attorney’s Office in Charleston.
“ATF is extremely appreciative of our partners and this collaborative effort to make North Charleston and the surrounding area a safer place,” said Charlotte Field Division's Special Agent in Charge C.J. Hyman. “ATF has committed our resources to help tackle firearms trafficking, illegal criminal firearm possession and other violent crimes happening in the area. That commitment, combined with the cooperation of local law enforcement agencies, federal partners, the Ninth Circuit Solicitor’s Office and the U.S. Attorney’s Office, has resulted in a very successful operation with a long-term impact on violent crime in this community.”
Ninth Circuit Solicitor Scarlett Wilson echoed that sentiment. “This multi-agency partnership charted a proactive effort to secure our community by focusing on dangerous individuals who plague our streets with gun and drug driven violence.”
U.S. Attorney Beth Drake commended the partnership between the local, state, and federal agencies and thanked the agents and law enforcement officers for the work that went into bringing the state and federal charges. “We work best when we work together. This kind of community impact case, where federal authorities pick up gun and drug charges on repeat offenders and the State Solicitor prosecutes the dealers without a significant prior record, is the sort of collaboration that has real impact on the lives of the people living in the community. Community safety is what we are about.”The United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
#####State Inmate Sentenced to Prison for Distributing Methamphetamine and Heroin from PrisonRead the Press Release
ATLANTA - Kevin Bristol Patterson has been sentenced to 18 years, four months in federal prison for his role in distributing methamphetamine and heroin while incarcerated at Ware State Prison in Waycross, Georgia.
“Patterson’s determination to commit crimes was not dampened by his incarceration,” said U.S. Attorney John Horn. “Despite being in prison, he conspired to distribute methamphetamine and heroin outside of jail using a contraband phone. This case represents another example of the dangers that contraband cell phones inside of the prison system pose to our citizens outside the prison.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Filed Division commented, “DEA is fully committed to tirelessly pursuing criminals who sell copious quantities of drugs, whether it’s on the streets or inside of a prison, as was the case in this investigation. This incarcerated career-criminal continuously arranged drug deals outside of prison, which will land him even more time in prison. The spirited level of law enforcement cooperation made this investigation a success.”
“We appreciate the ongoing efforts by our law enforcement partners to assist with halting criminal enterprise within our prisons, and we are pleased with the outcome of this case,” said GDC Commissioner Gregory C. Dozier. “I am proud of our Special Agent assigned to this case for his role in bringing this scheme to the forefront,” continued Dozier.”
According to U.S. Attorney Horn, the charges and other information presented in court: Despite being incarcerated at Ware State Prison, Patterson, using a contraband cellphone, continued arranging drug deals outside the prison wall.
Also serving time at Ware State Prison was co-defendant Alex Mauricio Altamirano who supplied the link to his nephew, Denis Miguel Pineda, an Atlanta drug trafficker. Using a contraband cellphone, Patterson introduced a drug buyer to Pineda. The buyer had spent time in prison with Patterson, but was now working with the police. In exchange for the introduction, Patterson expected the buyer to give him $500 every time the buyer bought drugs from Pineda. Patterson, Pineda, and Altamirano all discussed the price of narcotics and the time and place of the sales with the buyer in extensive, recorded telephone conversations.
In total, Pineda sold 649.9 grams of methamphetamine and 334 grams of heroin in five separate transactions to the buyer from July 2014 through October 2015. Police seized all the drugs before they could hit the streets. Pineda agreed to sell another kilogram of methamphetamine on November 4, 2015, but was arrested before he could make the sale. After his arrest, Altamirano assured the buyer that Altamirano could arrange for someone else to provide the promised narcotics. He and Patterson, both of whom were incarcerated, were then transferred to federal custody before they could complete the sale.
On August 10, 2016, Patterson pled guilty to one count of conspiring to distribute methamphetamine and heroin and five counts of possessing methamphetamine and heroin with the intent to distribute them.
Kevin Bristol Patterson, 35, of Blairsville, Georgia, was sentenced today by U.S. District Judge Eleanor L. Ross to 18 years, four months in federal prison to be followed by five years of supervised release, and a $600 special assesment. Pineda and Altamirano had previously been sentenced:
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Pineda, 30, of Atlanta, Georgia, was sentenced to 12 years, seven months of imprisonment, followed by five years of supervised release after pleading guilty. Pineda was convicted on May 23, 2016.
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Altamirano, 26, of Norcross, Georgia, was sentenced to 10 years of imprisonment, followed by five years of supervised release after pleading guilty to the conspiracy charge. Altamirano was convicted on May 11, 2016.
This case is being investigated by the Drug Enforcement Administration.
Assistant United States Attorney Vivek Kothari prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Springfield Man Pleads Guilty to Bankruptcy FraudRead the Press Release
Mark A. McFarland, 58, of Springfield, IL, pled guilty on February 21, 2017, to two bankruptcy fraud charges in United States District Court in East St. Louis, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. McFarland was indicted on February 2, 2016, as part of the U.S. Attorney’s Office’s effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.
"Unfortunately, we have found that some individuals attempt to manipulate the Federal Bankruptcy system in order to defraud their creditors," Mr. Boyce explained. "Those who engage in this type of conduct in Southern Illinois will be found and will be prosecuted."
On October 6, 2014, McFarland filed a chapter 11 bankruptcy case on behalf of his business, Second Chance of Springfield, Inc. ("Second Chance.") McFarland filed this case in the United States Bankruptcy Court for the Southern District of Illinois in East St. Louis, IL. Prior to filing that case, McFarland had filed 10 separate bankruptcy cases in the United States Bankruptcy Court for the Central District of Illinois in Springfield. All but one of those cases had been dismissed due to McFarland’s failure to comply with the Bankruptcy Court’s orders. In the last case, the Bankruptcy Court barred McFarland from filing any more bankruptcy cases in the Central District of Illinois for 180 days.
When he filed his case in East St. Louis on behalf of Second Chance, McFarland lied on his bankruptcy petition by claiming that his business was located in the Southern District of Illinois. An attorney from the U.S. Trustee’s Office subsequently pointed out that the case did not belong in the Southern District of Illinois, because the street address of Second Chance was located in Springfield, Illinois. As a result, the case should have been filed in the Central District of Illinois in Springfield. McFarland then lied again on an amended bankruptcy petition he filed, stating that Second Chance had a business address in Alton, IL. In support of this claim, McFarland provided a lease to the Bankruptcy Court that was fraudulently backdated to September 25, 2014. Then, as McFarland admitted during his plea hearing, he falsely testified under oath that he had signed that lease on September 25, 2014. He also falsely testified under oath that he had reached an oral agreement with the landlord for the rental of the Alton property in September 2014.
"Making a false statement in a bankruptcy proceeding is a crime that threatens the integrity of the bankruptcy process and public confidence in that process," stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Donald Boyce and to all of our law enforcement partners in this case."
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
McFarland’s sentencing hearing is scheduled for June 6, 2017, at 1:30 p.m., in United States District Court in East St. Louis, Illinois. The crime of making false statements under oath in a bankruptcy case is punishable by up to 5 years’ imprisonment, a fine of up to $250,000 and restitution. McFarland also faces up to three years of supervised release after any period of incarceration.
The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation, in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
South Bend Man Sentenced to 636 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Derek Fields, 30, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr.
Fields was sentenced to 636 months imprisonment following his trial and subsequent guilty verdict on November 16, 2016 of kidnapping, extortion, felon in possession and using a firearm in a crime of violence. Fields was also ordered to pay restitution of $196,512.10 for lost wages of the victim and medical expenses.
According to documents filed in this case, Fields and his codefendants unlawfully confined or kidnapped an individual against his will and demanded a ransom for that individual from his family. A firearm was discharged, hitting the victim, and caused permanent injuries to the victim. Two co-defendants, Lindani Mzembe and Ivan Brazier were also convicted in separate trials of similar offenses, and were sentenced to 524 months and 444 months respectively.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.
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Romanian Man is 12th Defendant Sentenced in ATM Skimming ConspiracyRead the Press Release
LOS ANGELES – The 12th man convicted in an ATM skimming scheme has been sentenced to nearly four years in prison.
Oliver Raducu Marian, 37, of Romania, was sentenced yesterday to 46 months in federal prison by United States District Otis D. Wright III. In addition to the prison term, Judge Wright ordered Marian to pay restitution of $799,978.
Marian pleaded guilty in December to conspiracy to commit bank fraud. According to court documents, the conspiracy began as early as November 2012 and continued to October 2013. The conspirators, all Romanian nationals, attached skimming devices and video cameras to ATM machines and vestibules in Los Angeles and Orange Counties, the San Francisco area, and Las Vegas. The equipment was used to capture the customers’ debit card numbers and PIN numbers.
The defendants then downloaded the stolen information to blank cards and withdrew money from the accounts. Over the course of the scheme, the conspirators stole approximately $800,000 in cash from approximately 3,468 victims. The cash was spent on apartments and storage units.
“Although this defendant had fled the United States, U.S. law enforcement in cooperation with foreign law enforcement was able to bring him back to face judgment,” said United States Attorney Eileen M. Decker. “International borders do not deter the Department of Justice from prosecuting those who commit crimes against the U.S.”
“Cases like this remind us that we should be extra cautions when using our debit cards and cover the keypad when entering our pin numbers," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Anyone with information as to the whereabouts of fugitive, Ioan Claudiu Buculei, is urged to contact the FBI.”
Marian, who was extradited back to the United States from the United Kingdom, was the 12th member of the conspiracy to be sentenced. The other defendants, all Romanian nationals, who have been sentenced by Judge Wright are:
- Gheorghita Vlasin, age 30, sentenced to 51 months;
- Petru Olteanu-Ursachi, age 40, sentenced to 46 months;
- Bogdan Ciuchi, age 31, sentenced to 46 months;
- Codrin Marian Lupu, age 43, sentenced to 72 months (extradited from Romania);
- Adrian Saran, age 41, sentenced to 57 months;
- Marius Robert Manciu, age 32, sentenced to 46 months;
- Roman Florin, age 35, sentenced to 46 months;
- Vasile Gabrial Branisteanu, age 35, sentenced to 46 months;
- Cotovanu Claudiu-Dumitriu, age 35, sentenced to 70 months;
- Dumitru Marios Calian, age 36, sentenced to 46 months; and
- Vasilica-Iulian Fuioaga, age 39, sentenced to 63 months.
The 13th man charged in the investigation, Ioan Claudiu Buculei, age 39, of Romania, remains a fugitive.
This investigation was conducted by the Federal Bureau of Investigation and the Los Angeles Police Department. The case was prosecuted by Assistant United States Attorney Tracy L. Wilkison, Chief of the Cyber and Intellectual Property Crimes Section.
Reading Man Charged with Being A Felon in Posession of A FirearmRead the Press Release
Rodney Cossari, of Reading and Shamokin, Pennsylvania, was charged by Indictment with two counts of being a felon in possession of firearms and ammunition, announced Acting United States Attorney Louis D. Lappen.
According to the Indictment, Cossari possessed the following firearms and ammunition: a Jennings, caliber .22 long rifle, Model J-22 pistol, bearing serial number 339961; a Tanfoglio, caliber 9mm Luger, Model BTA90 pistol, bearing serial number G24223; an IMI, caliber 9mm Luger, Model UZI-A carbine rifle, bearing serial number SA17418; an Harrington & Richardson, caliber .32 Smith & Wesson, Model 732 revolver, bearing serial number AL14647; a Smith & Wesson, caliber .38 Smith & Wesson Special, Model 10-4 revolver, bearing serial number C587826; a Bushmaster model M4A3 rifle, serial number BFI49077, fitted with a Trijicon model TA31F ACOG scope, serial number 00638596; a Colt model AR15A2 rifle, serial number SP222848; and, two fifty round boxes of CCI brand Quiet .22LR caliber ammunition.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment, three years of supervised release, a $250,000 fine, and a $100 special assessment on each count.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and is being prosecuted by Assistant United States Attorney Lesley S. Bonney.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Raleigh Man Convicted in Fraudulent Credit Card Scam at Walmart and Sam’s ClubRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, PA AMBROSE MENDY, 31, of Raleigh, was convicted following a two-day trial before United States District Judge Terrence W. Boyle. The jury found the defendant guilty of Conspiracy to Commit Access Device Fraud, Conspiracy to Commit Money Laundering, and two counts of Access Device Fraud.
The defendant was charged, along with nine codefendants, in an indictment alleging a scheme to manufacture and use counterfeit credit cards. The indictment alleged that the defendant and others would acquire stolen credit card numbers online and encode them onto plastic cards containing magnetic strips. The indictment further alleged that the conspirators would use the fraudulent cards at Walmart stores located around the state to purchase more than $1 Million worth of Walmart gift cards. The indictment alleged that the conspirators then took the genuine gift cards to Sam’s Club stores and used them to purchase more than $1 Million in cigarettes and stored-value Visa cards, which could then be sold off for cash.
Prior to trial, various codefendants pleaded guilty to Conspiracy to Commit Money Laundering and Aggravated Identity Theft. The defendant proceeded to trial on the charge of Conspiracy to Commit Access Device Fraud, Conspiracy to Commit Money Laundering, and two counts of Access Device Fraud. After a two-day trial, the jury found the defendant guilty of each charge. Three remaining codefendants are at large. These defendants are MALAMIN OUSMAN SONKO, SALIFU JALLOW, or ABDOULAIE FRANCIS LOWE NICOLAS.
The investigation of this case was conducted by agents of the United States Secret Service, with the assistance of the Defense Criminal Investigative Service and numerous local law enforcement agencies. At trial, the United States was represented by Assistant United States Attorneys William M. Gilmore and Melissa Kessler of the Economic Crimes Division.
If you know of the whereabouts of codefendants MALAMIN OUSMAN SONKO, SALIFU JALLOW, or ABDOULAIE FRANCIS LOWE NICOLAS, please contact the United States Secret Service at (919) 855-1052.
Quakertown Man Sentenced to 36 Months for Defrauding Lehigh University Fraternities and SororitiesRead the Press Release
Today, a federal judge sentenced Albert Fisher, 78 of Quakertown to 36 Months in prison for his role in conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced Acting United States Attorney Louis L. Lappen. In addition, the Honorable Joseph F. Leeson Jr., United States District Judge, ordered the defendant to serve 3 years of supervised release upon release from prison, $2,470,247.52 restitution to victims, $205,000 restitution to Internal Revenue Service, as well as a $700 special assessment.
Fisher and Person #1 operated Fraternity Management Association (“FMA”), located in Bethlehem, PA, and created a fictitious consulting company, “Fisher and Associates,” which had FMA as its sole client. During the period charged, Person #1 was the Executive Director of FMA while Fisher was employed by FMA as both a full-time employee and as an independent contractor for Fisher and Associates. According to the indictment, between 2009 and 2013, Fisher and FMA’s Executive Director conspired to take money, as payment for future services, that was intended to pay for the operations and upkeep of the fraternities and sororities which included food services and the financial management of expenses. Instead of paying for future services, Fisher and the Executive Director misappropriated at least $1,461,777.96 in funds from FMA and the victim fraternities which he and the Executive Director used for their own personal purposes, including purchases of goods and services, vacation expenses, home furnishings, and designer clothing. Fisher allegedly lied to the victims about the money that was entrusted to FMA. When FMA ceased operations during the Spring of 2014, Fisher and the Executive Director caused an additional $990,157.41 in expenses for the fraternities, sororities and other victims, including Lehigh University, when the victims had to pay for operations and upkeep of the fraternities.
Fisher filed tax returns for tax years 2009 to 2013 which failed to report $614,398 in income, which included the defendant’s personal expenses that were paid by FMA and consulting fees authorized by the Executive Director and paid on behalf of FMA.
The case was investigated by Internal Revenue Service Criminal Investigations, FBI Allentown Resident Agency and the Bethlehem Police Department. It is being prosecuted by Assistant United States Attorney John Gallagher.
Port Sulphur Oysterman Sentenced for $300,000 B.P. FraudRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that STEVE COLLINS TURNER, SR., age 73, of Port Sulphur, was sentenced today after previously pleading guilty to mail fraud in connection with a false claim of $300,000 related to the BP Oil Spill.
U.S. District Judge Susie Morgan sentenced TURNER to five years probation, six months home detention, $300,000 in restitution, and $100 special assessment.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. According to court records, TURNER applied for an Emergency Advance Payment seeking $300,000 in damages for lost money because of the Deepwater Horizon Disaster by submitting false documentation. TURNER submitted false documents regarding oyster buying businesses showing he sold oysters to the businesses when he really did not.
The U.S. Attorney’s Office praised the work of the Special Agents of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.
Plains Man Indicted on Drug and Firearms ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Francesco Leggio, age 26, of Plains, Pennsylvania, was indicted on February 21, 2017, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Leggio possessed with the intent to distribute cocaine and marijuana on March 28, 2016, in Plains, Pennsylvania. The indictment also alleges that Leggio possessed a Hi Point 9mm handgun in furtherance of his drug trafficking activities and after being convicted of a felony. Leggio was further charged with witness tampering for attempting to influence the testimony of a witness.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kingston Municipal, Wilkes Barre, Plains Township, and Forty Fort Police Departments. Assistant U.S. Attorney Sean A. Camoni 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.
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 combined penalty under federal law for these offenses is life 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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Pendleton County man indicted on firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – A Franklin, West Virginia man was indicted today for multiple firearms violations, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Randy David May, age 36, was charged today by a federal grand jury for “Felon in possession of a firearm,” “Possession of a firearm with altered serial number,” and “Unlawful transfer of short barrel firearm.” The crimes are alleged to have occurred on August 28, 2016 in Pendleton County.
May faces up to ten years in prison and a fine of up to $250,000 for the first count, up to five years in prison and a $250,000 fine for the second count, and up to 10 years in prison and a fine of up to $10,000 for the third count.
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 is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Palmer Pleads Guilty to Fraud, Money Laundering in Connection with Alleged Investment Fraud SchemeRead the Press Release
SALT LAKE CITY – Wayne LeMar Palmer, age 60, of West Jordan, indicted in August 2015 in connection with an alleged investment fraud scheme that raised more than $140 million from more than 600 investors, pleaded guilty Tuesday afternoon to wire fraud and money laundering.
Julieann Palmer Martin, age 47, also of West Jordan, a co-defendant in the case, pleaded guilty to misprision of felony in the case. The pleas were entered in U.S. District Judge Clark Waddoups’ courtroom.
In admissions filed as a part of the plea agreement, Palmer admitted that from 2009 through June 2012, acting through his company National Note of Utah and affiliated entities (collectively referred to as NNU), he solicited investors to invest in NNU’s business of loaning funds to real estate based companies. As a part of his solicitations to investors, he admitted he falsely represented that their investment in NNU was safe and guaranteed, and that NNU was profitable and generated sufficient income from its business operations to pay investors a 12 percent per annum return. Palmer admitted that he failed to inform investors that NNU had insufficient operating revenues to pay investors and operating expenses. He also admitted he failed to inform investors that new investor funds were being used, in part, to pay prior investors’ return of principal and interest payments. These omissions were material to investors and their decision to invest with NNU, he admitted as part of the plea agreement.
While the fraud scheme raised more than $140 million from 600 investors, some of the money was used to make payments to earlier investors. Prosecutors believe the actual loss in the case is approximately $60 million.
Martin, who is Palmer’s cousin, was employed as a bookkeeper at NNU from 1995 until a receiver took it over in 2012. In admissions made as a part of her plea agreement, Martin admitted she was the primary contact person for NNU investors and prospective investors when Palmer was not available. She also had online access to two NNU bank accounts. Because she monitored the accounts, at any given time she knew whether NNU had adequate funds in these two bank accounts to meet its obligations and frequently updated Palmer on the status of the accounts.
She admitted that, beginning in March 2010, she knew that NNU was having difficulty returning principal to investors whose notes had matured. She also recognized that NNU was unable to bring in new investor funds sufficient to pay its operating expenses and began updating Palmer nearly every day regarding the funds needed to pay the promised returns to investors and to cover operating expenses. She admitted knowing that Palmer continued to solicit new investors after NNU developed financial problems and after it stopped making investor payments.
Martin admitted she did not notify law enforcement or any regulatory agency about Palmer’s fraud. Instead, she took steps to conceal the crime by lulling both new and prior investors into a false sense of security that NNU’s business was turning a profit and making timely returns to investors.
Palmer’s plea agreement includes a stipulated sentence of 0-120 months, subject to approval and acceptance by the Court. He also agreed to a $290,000 money forfeiture judgment for his scheme to defraud. The total amount of restitution and the payment schedule will be determined at sentencing.
Martin’s plea agreement includes a stipulated sentence of 0-24 months, which is subject to the approval and acceptance by the Court. Restitution and the payment schedule for Martin will also be determined at sentencing.
Sentencing for both defendants is set for Sept. 11, 2017. They are not in custody.
The case is being prosecuted by the U.S. Attorney’s Office in Utah. Special agents of the FBI and IRS Criminal Investigation are investigating the case. The U.S. Department of Labor, Employee Benefits Security Administration has also contributed to the investigation.
Pair of Defendants in Heroin Conspiracy Sentenced in Separate HearingsRead the Press Release
Roanoke, VIRGINIA – A pair of defendants who were part of a conspiracy that brought large amounts of heroin into the Roanoke region, were sentenced recently in separated hearings in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Today in District Court, Kelly Marie Combs, 28, of Salem, Va., who previously pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute heroin, was sentenced to 42 months in federal prison.
Last week, Hameen Shahid Irvin, 41, of Roanoke, Va., who previously pled guilty to conspiracy to possess with the intent to distribute and to distribute 100 grams or more of heroin, was sentenced last week to 90 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorneys Ashley B. Neese and Jennie L. M. Waering, Irvin and Combs, along with their co-conspirators, were responsible for trafficking large amounts of heroin into the Roanoke region from Baltimore, M.D. Combs and Irvin regularly drove to Baltimore to buy heroin and returned to Roanoke with the drug for redistribution.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roanoke County Police Department and the Virginia State Police. Assistant United States Attorneys Ashley B. Neese and Jennie L. M. Waering prosecuted the case for the United States.
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Owner of Durable Medical Equipment Company and Three Physicians Charged with Health Care Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, P.R. - On February 13, 2017, a Federal Grand Jury in the District of Puerto Rico returned a superseding indictment charging Dr. Dante A. Rodríguez-Rivera, Javier Efraín Siverio-Echevarría, Dr. George D. Alcántara-Cardi, Dr. Martha Nieves, Javier Antonio Aguirre- Estrada, and Carlos Maldonado-López with multiple counts of conspiracy to commit health care fraud, health care fraud and aggravated identity theft. The defendants were arrested today, announced Rosa Emilia Rodríguez Vélez, United States Attorney for the District of Puerto Rico, Scott Lampert, the Special Agent in Charge of the Office of the Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”), and Douglas A. Leff, Special Agent in Charge of the Federal Bureau of Investigation’s Puerto Rico Field Office (“FBI”).
According to the indictment, from on or about February 20, 2007, and continuing through on or about July 18, 2013, the defendants conspired with each other and with other individuals known and unknown to the grand jury to defraud Medicare. The federal charges stem from an alleged scheme whereby Javier Efraín Siverio-Echevarría, as owner of Equipomed Care Corp., a durable medical equipment company with offices in Hatillo, Puerto Rico, would use the personal identifying information of Medicare beneficiaries, to invoice Medicare for durable medical equipment that these beneficiaries did not need or to whom the equipment would not be delivered.
The indictment alleges that Siverio-Echevarría procured the signature of prescription forms and Medicare documents from doctors who had not seen or examined the Medicare beneficiaries, including in particular Dr. Dante A. Rodríguez-Rivera, Dr. George D. Alcántara-Cardi, and Dr. Martha Nieves, to fraudulently invoice Medicare for durable medical equipment that was not medically necessary for these beneficiaries. Javier Antonio Aguirre-Estrada and Carlos Maldonado-López were employees of Equipomed Care Corp. and they aided the other defendants in the perpetration of the fraudulent scheme by submitting electronic invoices to Medicare and by convincing Medicare beneficiaries to accept medical equipment that they had not requested and that they did not need. The defendants fraudulently invoiced an amount in excess of $1,276,874.10 to Medicare through the three conspiracies charged in the superseding indictment.
“The Medicare system entrusts doctors with the responsibility of ensuring that their patients receive the care and equipment they need to achieve meaningful quality of life,” said U.S. Attorney Rosa E. Rodriguez-Velez. “The charges unsealed today allege that three physicians violated their responsibility to their patients and instead facilitated the means for an equipment company to bill over a million dollars to Medicare for equipment not delivered or not medically necessary. These charges are yet another example of the Department of Justice’s determination to hold those who choose to steal from Medicare for personal gain accountable for the harm they inflict on groups of the most vulnerable individuals in our society: the sick, the elderly and the disabled.”
“We are proud to be a part of the federal team that brought these defendants to justice for defrauding the Medicare program and exploiting the elderly,” said Scott Lampert, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico. “Arresting owners and providers, and prosecuting them to the fullest extent possible, are some of the tools that the federal government has available, and will be utilized to remove these individuals from participating in the Medicare program”.
Pursuant to the charges, the defendants face potential penalties of up to ten years of imprisonment for the conspiracy to commit health care fraud or the health care fraud charges, and a mandatory minimum term of two years of imprisonment for the aggravated identity theft charges.
This case was investigated by the HHS-OIG, FBI, United States Secret Service and the Puerto Rico Police Department and is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Orlando Woman Sentenced to Federal Prison for Scheme to Evade Workers’ Compensation Requirements for Undocumented Aliens Working in Construction IndustryRead the Press Release
Jacksonville, Florida – U.S. District Judge Henry Lee Adams, Jr. has sentenced Orquidea Quezada (48, Orlando) to 18 months in federal prison for wire fraud and for operating as an unlicensed money transmitter. The Court ordered her to forfeit $136,886 in cash that was seized when she was arrested, $60,178.91 that was seized from her bank accounts, and a 2013 Honda Accord, valued at $11,500, that she had used while committing the offenses. The Court also entered a money judgment against Quezada in the amount of $584,435.09, representing the proceeds of the criminal conduct less the amount previously seized, and she was further ordered to pay restitution to AIG Insurance in the amount of $18,603.24.
Quezada pleaded guilty on September 28, 2016.
According to court documents, between May 2013 and May 2016, Quezada, doing business as Orquicely Construction, LLC, applied for workers’ compensation insurance policies to cover two to seven employees and an annual payroll of approximately $100,000. The insurance companies issued the policies for annual premiums based on the payroll information disclosed in the applications.
Under Florida law, any business that engages in construction work must secure and maintain workers’ compensation insurance and the failure to do so is a felony. Construction contractors must require subcontractors to provide proof that they have workers’ compensation insurance.
Quezada then “rented” the insurance policies to numerous construction subcontractors who employed hundreds of workers, many of whom were undocumented aliens. To do so, she directed her insurance agent to e-mail the subcontractors a certificate of insurance that the insurance would cover their workers. The subcontractors wrote payroll checks to Orquicely Construction for work performed by their employees. Quezada then cashed those checks and paid the subcontractors’ employees in cash, through work crew leaders. Quezada kept five percent of each check as a fee for her services. Between May 2013 and November 2015, Quezada funneled about $17.4 million through her company to the subcontractors’ employees.
Neither Orquicely Construction nor the subcontractors deducted state or federal taxes, such as for Medicare and Social Security, from the workers’ pay. The scheme allowed the subcontractors to avoid these taxes and workers’ compensation taxes, and to conceal their employment of undocumented aliens that were working illegally in the United States.
“This sentencing is the result of HSI’s combined investigative expertise in financial crimes and worksite enforcement,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI special agents will continue to identify, disrupt, and eliminate the criminal schemes used to exploit our financial industry and to garner profit from the labor of undocumented aliens. HSI’s continued partnership with agencies such the Florida Department of Financial Services, Division of Investigative & Forensic Services greatly enhances our ability to successfully identify and prosecute these criminal organizations.”
"Employers who attempt to evade the law and fail to provide workers' compensation coverage leave their employees vulnerable to extraordinary costs in the event of an on-the-job injury," said Florida Chief Financial Officer Jeff Atwater. "Not only are employees left at risk, but when bad actors save thousands by not paying for insurance policies, they can skew the competitive market by bidding on projects at a much cheaper rate—making it difficult for the law-abiding employers to win job contracts. I applaud the collaborative efforts of our federal, state, and local law enforcement partners who work day in and day out to ensure the bad actors within the construction industry are held accountable for their crimes."
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (Jacksonville and Orlando), the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services Division of Investigative and Forensic Services. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Northern Michigan Woman Sentenced to 70 Months in Prison in Multi-Million Dollar Investment SchemeRead the Press Release
Sarah Bolhuis Ordered to Repay $5,225,854.41 to 53 Victims
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Sarah Frances Bolhuis, 70, of Ellsworth, in Antrim County, Michigan, was sentenced to nearly six years in federal prison and ordered to repay $5.2 million to 53 victims of her investment fraud scheme. The Honorable Paul L. Maloney, U.S. District Judge, imposed the sentence, and further ordered her to serve three years of court supervision upon her release from prison.
Bolhuis pled guilty in September 2016 to wire fraud and money laundering charges, and admitted making numerous false and fraudulent misrepresentations and promises concerning financial services she claimed to provide for many years under the name American Financial ("AMFI") and Tri-Logic. Bolhuis admitted that she did not use the victims’ money as promised. Instead, Bolhuis made payments to a business partner, made return-of-principal and other payments to "investors," and paid "finder fees" to individuals who successfully recruited new "investors." In truth, there were no real investments made, as she had promised. Additionally, Bolhuis admitted laundering proceeds of the fraud. In one instance, she admitted depositing into a bank account money that she obtained from one victim and withdrawing $27,500 from the same account to make a payment to another victim in what amounted to a Ponzi-style scheme.
The U.S. Attorney’s Office noted in its sentencing memorandum that several of the victims suffered substantial financial hardship as a result of their losses. Although the scheme netted more than $7.5 million, only $2.3 million in repayments were traced due in large part to the extensive use of U.S. currency in the scheme. Bolhuis went to extraordinary lengths to hide the scheme, including having one of her victims pretend to be another person to (unbeknownst to that victim) corroborate one of the many lies she told others to convince them that she was using their money as promised. The government also outlined a new "real estate rescue" fraud Bolhuis perpetrated on one of her victims even after her Ponzi-style scheme had unraveled and she knew she was under investigation by state and federal law enforcement.
Acting U.S. Attorney Birge stated, "Fraudulent investment schemes that cause significant financial harm to individual investors will always be a priority for the U.S. Attorney’s Office. And we will work as hard as we can to get money back for the victims and to make sure the net return for those who spin the web of lies will be prison time, as Ms. Bolhuis has learned."
Special Agent in Charge Manny Muriel, IRS - Criminal Investigation, stated: "Ponzi schemes can thrive for a time on false claims about how the money is being invested and where the returns are coming from. But as demonstrated by today’s sentencing, that time has gone in this case and one who preyed on investors for their personal gain has been held accountable. It is always important to keep in mind that investment schemes that seem too good to be true should be a signal to investors to stay clear."
David P. Gelios, Special Agent in Charge, Detroit Division of the FBI, stated: "The defendant in this investment scheme stole millions of dollars from over 50 investors causing life altering and damaging financial harm. Today’s sentence demonstrates that those responsible for predatory investment fraud schemes like the one orchestrated by Bolhuis will be held to account for their crimes."
IRS Criminal Investigation and the Federal Bureau of Investigation continue to investigate this matter. Assistant U.S. Attorney Christopher O’Connor prosecuted the case.
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Norridgewock Man Pleads Guilty to Distributing OxycodoneRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brandon Lancaster, 21, of Norridgewock, Maine, pleaded guilty today in U.S. District Court to distributing oxycodone.
According to court records, on August 31, 2016, in a Pittsfield, Maine parking lot, Lancaster sold eleven 30 mg oxycodone pills for $500 to a person working with law enforcement.
Lancaster faces up to 20 years in prison, a $1,000,000 fine, and between three years and a life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Nine Defendants Charged with Conspiracy to Distribute Heroin and Oxycodone in Staten Island, New YorkRead the Press Release
An indictment and two complaints were unsealed today in the United States District Court for the Eastern District of New York charging nine defendants with conspiring to distribute heroin and/or oxycodone in Staten Island, New York.
Eight defendants were arrested earlier today in Staten Island and Brooklyn and are scheduled to be arraigned before Magistrate Judge James Orenstein in Brooklyn this afternoon. One additional defendant was arrested earlier today in Arizona, and her initial appearance is scheduled this afternoon before United States Magistrate Judge David K. Duncan at the federal court house in Phoenix, Arizona. The government will seek to remove to New York for prosecution the defendant arrested out of state.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division, Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
“These defendants allegedly pushed heroin and oxycodone for months, contributing to the opioid plague that has caused great suffering on Staten Island,” stated United States Attorney Capers. “Today’s arrests demonstrate this Office’s commitment to marshal all available resources necessary to investigate and prosecute those who peddle these highly addictive narcotics in our communities.” Mr. Capers expressed his appreciation to the Richmond County District Attorney's Office for its participation in today's arrests.
DEA Special Agent in Charge Hunt stated, “Since the millennium, statistics show a steady rise of drug overdoses in New York City with fatalities skyrocketing these past five years. Throughout that time, Staten Islanders weathered the storm termed by many as the ‘opioid epidemic’, with users transitioning from abusing diverted prescription medication, to heroin, to heroin mixed with fentanyl. By collaborating resources with our state, local and federal law enforcement partners, we arrested nine dealers responsible for fueling opioid addiction on Staten Island.”
“America’s addiction to opioids is dependent on drug-pushing organizations like this. Selling rock and prescription drugs out of their front door, in their own community, is inexcusable,” said Melendez, Special Agent-in-Charge for HSI New York. “These arrests demonstrate the collaborative and continuing endeavor to attack the persistent problem of drug trafficking in New York and the surrounding communities.”
“As alleged, these individuals distributed heroin and oxycodone in their own community, and by doing so they endangered the lives of those who live and work around them by contributing to the supply of highly addictive narcotics that have led to numerous overdoses and deaths. The NYPD is committed to holding accountable those who are responsible for this deadly flow of poison and ensuring they are brought to justice,” said Police Commissioner O’Neill.
As alleged in the indictment and complaints unsealed today, as part of its investigation of narcotics trafficking by defendant Michael Calabria, DEA agents uncovered a narcotics distribution ring involving the defendants Joseph Calabria, Stephen Delpriore, Devida Lombardo, Ugo Gallo, Carol Monforte, Vincent Maniscalco, Glenn DePaolo and Maria DePaolo. As alleged in the court filings, the defendants conspired to distribute heroin and/or oxycodone from September 2016 to January 2017.
These arrests were the result of a long-term investigation by the U.S. Drug Enforcement Administration’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The charges in the indictment and complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the most serious offense, the defendants face up to 20 years of imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Karthik Srinivasan and Alicia N. Washington.
The Defendants:
MICHAEL CALABRIA
Age: 49
Staten Island, NY
JOSEPH CALABRIA
Age: 52
Staten Island, NY
STEPHEN DELPRIORE
Age: 55
Staten Island, NY
DEVIDA LOMBARDO
Age: 46
Staten Island, NY
UGO GALLO
Age: 46
Staten Island, NY
CAROL MONFORTE
Age: 57
Staten Island, NY
VINCENT MANISCALCO
Age: 55
Brooklyn, NY
GLENN DEPAOLO
Age: 59
Staten Island, NY
MARIA DEPAOLO
Age: 55
Staten Island, NY
E.D.N.Y. Docket Numbers:
United States v. Michael Calabria, et al, 17-CR-91
United States v. Carol Monforte et al, 17-MJ-170
United States v. Ugo Gallo, 17-MJ-171
Nine Defendants Arrested for Operating an International Steroid Distribution RingRead the Press Release
A complaint was unsealed yesterday in the United States District Court in Brooklyn charging ten defendants with operating an international steroid manufacturing and distribution ring. Seven defendants will be arraigned today at the United States Courthouse in Miami, Florida. Two defendants will be arraigned at the United States Courthouse in Phoenix, Arizona, and one remaining defendant is being sought in Phoenix.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Carl J. Kotowski, Special Agent in Charge, Drug Enforcement Administration (DEA), New Jersey Division.
As set forth in the complaint and other publicly filed documents, the charges against the defendants stem from an investigation into a Miami-based company named Wellness Fitness Nutrition, LLC (“WFN”). WFN’s founder and CEO, Richard Rodriguez, purported that WFN was an “FDA compliant” pharmacy and laboratory licensed to distribute anabolic steroids, which are controlled substances under federal law. In fact, the investigation revealed that WFN was not licensed by the DEA to distribute steroids and routinely dispensed steroids to customers without the requisite medical prescriptions. WFN marketed and sold its wide array of anabolic steroids through its website www.wellnessfitnessnutrition.com.
During the year-long investigation which began in 2015, led by the New Jersey DEA Tactical Diversion Squad, Special Agents and Task Force Officers were able to track the purchase of raw steroid materials by WFN from various companies in China. This raw steroid powder was shipped to a clandestine laboratory in Phoenix, Arizona where it was subsequently manufactured by the defendants into both liquid and pill-form steroids. The finished steroid product was then sent back to Miami where it was labeled, packaged and shipped to WFN’s domestic and international customers. Over the course of the investigation, undercover New Jersey DEA special agents and Task Force Officers made undercover purchases of over $30,000 worth of illicit anabolic steroids from the WFN defendants. A review of WFN customer lists revealed that WFN shipped steroids to at least 50 customers in the Eastern District of New York.
Additionally, the financial investigation into WFN revealed that the company laundered over a million dollars in illicit proceeds back into the operation of its national distribution ring and moved at least ten million dollars in illicit proceeds through various WFN and related entities’ bank accounts.
Today, in connection with the arrests, Task Force Officers executed search warrants at the clandestine lab in Phoenix, Arizona and at the WFN offices and shipping facility located in Miami, Florida.
“As alleged, the defendants made millions of dollars through the illicit online sales of anabolic steroids while operating under the guise of an ‘FDA-compliant’ health and wellness business,” stated United States Attorney Capers. “This case serves as a message that my Office and our law enforcement partners will not allow the widespread illegal distribution of anabolic steroids to go unchecked.” Mr. Capers expressed his appreciation to the DEA Arizona Division, DEA Miami Division, Homeland Security Investigations New Jersey Division, Customs and Border Protection Port of New York/Newark, and U.S. Postal Service Inspection Service New Jersey Division for their assistance during the course of this year-long investigation.
“The results of this investigation send a clear message to the public. It doesn’t matter if you are peddling heroin, cocaine or steroids. If you break the law, we will dedicate the necessary resources to put an end to this type of distribution,” stated DEA Special Agent in Charge Kotowski.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of the offense, the defendants face a maximum sentence of twenty years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Michael T. Keilty and Kaitlin T. Farrell. Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division is responsible for the seizure and forfeiture of assets.
The Defendants:
RICHARD RODRIGUEZ
Age: 37
Miami, Florida
JOHN FERRELL
Age: 36
Miami, Florida
NANCY MELO-RODRIGUEZ
Age: 39
Miami, Florida
EDWARD JACOB LIFF
Age: 34
Phoenix, Arizona
XZAVIER APODACA
Age: 30
Phoenix, Arizona
BYRON OLIVER
Age: 37
Phoenix, Arizona
ERICK VITTITOW
Age: 29
Miami, Florida
BADER ALASKARI
Age: 34
North Bay Village, Florida
BERNARD DURAN
Age: 43
Miramar, Florida
JONATHAN GONZALEZ
Age: 37
Miami, Florida
E.D.N.Y. Docket No. 17-MJ-154
New York Man Pleads Guilty to Heroin Charge Stemming from Overdose Death in GreenwichRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that ISAIAH HART, 21, of Brooklyn, N.Y., pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of conspiracy to possess with intent to distribute, and to distribute, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the afternoon of December 8, 2015, Greenwich Police officers and emergency medical personnel responded to a Greenwich residence on the report of an unresponsive man. The man, who was 26, was pronounced dead. Within the residence, officers located and found opened and unopened wax folds (“bags”) with a green colored label “Emerald City” stamped on them.
The Connecticut Department of Emergency Services and Public Protection’s Division of Scientific Services later analyzed the unopened bags and determined the powder contained heroin, and according to the Connecticut Chief Medical Examiner’s Office, the victim’s death was caused by acute heroin toxicity.
Investigators determined that the victim had contacted “Tony” to order heroin in response to a Craig’s List advertisement for “dog food.” On December 7, 2015, the victim drove from Greenwich to Brooklyn and purchased two bundles (20 bags) of heroin from HART for $185.
HART was arrested on a federal criminal complaint on April 14, 2016. He has related drug charges pending in Brooklyn stemming from his selling heroin, in bags stamped “Emerald City,” to an undercover law enforcement officer on December 8, 2015.
Judge Shea scheduled sentencing for May 18, 2017, at which time HART faces a maximum term of imprisonment of 20 years. HART is released on bond pending sentencing.
This matter is being investigated by the DEA’s New Haven Task Force and the Greenwich Police Department. The Task Force includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby and Meriden Police Departments. U.S. Attorney Daly also acknowledged the significant assistance of the New York Police Department in this investigation.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed with the assistance of Law Student Intern William Kukin.
New London Man Pleads Guilty to Federal Child Enticement OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRYAN WHITE, 39, of New London, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to attempting to entice a minor to engage in illegal sexual activity.
According to court documents and statements made in court, in June and July 2016, WHITE used a cellular phone and Chat Bazaar, a video chatting service, to communicate with a 13-year-old female in New Jersey. In text messages, the minor victim repeatedly told WHITE her age. WHITE responded by saying that “age is just a number to deny u things” and that he is a “child lover.” The text exchanges with the victim were sexually explicit, and WHITE requested that the victim travel from New Jersey to Connecticut to engage in sexual activity with him.
On June 16, 2016, the victim’s father discovered the texts with WHITE on the victim’s phone and reported it to local police. A law enforcement officer then assumed the minor’s identity to continue to correspond with WHITE. Between June 29 and July 5, 2016, WHITE repeatedly asked the undercover officer, posing as the victim, to come to Connecticut and described the sexual activity he wanted to engage in with the victim. The undercover officer agreed to take a bus from New Jersey to Connecticut. WHITE explained that he would be at the bus terminal wearing a yellow “MICHIGAN” shirt and that he would bring condoms and pina colada wine coolers to the bus station.
On July 5, 2016, WHITE was arrested at the New London bus station at the designated time wearing the clothes that he said he would be wearing. At the time of his arrest, WHITE was in possession of a condom and two bottles of alcoholic beverages.
WHITE pleaded guilty to one count of attempted enticement of a minor to engage in unlawful sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment. Judge Thompson scheduled sentencing for May 23, 2017.
WHITE has been detained since his arrest.
This matter is being investigated by Homeland Security Investigations, the Burlington County (N.J.) Prosecutor’s Office, the Florence (N.J.) Township Police Department, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Multiple Local, State, and Federal Law Enforcement Agencies to Hold Press Conference in North Charleston on Wednesday, February 22, 2017Read the Press Release
Contact Person: A. Lance Crick (843) 282-2105
The press conference will be held at 4pm in the lobby of North Charleston’s City Hall, located at 2500 City Hall Lane, North Charleston, South Carolina 29406
Columbia, South Carolina --- United States Attorney Beth Drake announced this morning that federal, state, and local law enforcement agencies have conducted a joint enforcement operation today involving multiple defendants located in Charleston County and Dorchester County. A press conference will be held this afternoon (Wednesday, February 22, 2017) at 4:00pm in the lobby of North Charleston’s City Hall, located at 2500 City Hall Lane, North Charleston, South Carolina 29406.
Participating in the press conference will be member(s) of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), ICE-Homeland Security Investigations, the North Charleston Police Department, the Charleston Police Department, the Charleston County Sheriff’s Office, the Ninth Circuit Solicitor’s Office, and the U.S. Attorney’s Office.
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Multiple Local, State and Federal Law Enforcement Agencies to Hold Press Conference in Conway on Thursday Morning, February 23, 2017Read the Press Release
Contact Person: Andy Moorman (864) 282-2140
The press conference will be held at 9:30am at the M.L. Brown Building, located at 2560 Main Street, Conway, South Carolina 29526
Columbia, South Carolina --- United States Attorney Beth Drake announced that federal and state law enforcement agencies have conducted a joint enforcement operation today involving multiple defendants located in Horry County, Florence County, and Charleston County. A press conference will be held on Thursday, February 23, 2017, at 9:30 A.M. at the M.L. Brown Building, located at 2560 Main Street, Conway, South Carolina 29526.
Participating in the press conference will be member(s) of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Horry County Sheriff’s Office, the Horry County Police Department, the Myrtle Beach Police Department, the North Myrtle Beach Police Department, the 15th Circuit’s Drug Enforcement Unit, the Georgetown Police Department, and the U.S. Attorney’s Office.
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Mississippi Businessman Sentenced to One Year in Prison for Failing to File His Income Tax ReturnRead the Press Release
A Gulfport, Mississippi businessman was sentenced to 12 months in prison today for failing to file a 2009 individual income tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to information provided to the court, Samuel Frazier, owned two companies in the Gulfport area: Frazier Fire Systems LLC and EZ Haul Demolition and Construction LLC. In 2011, Internal Revenue Service Criminal Investigation (IRS-CI) special agents contacted Frazier, because he had not filed a tax return since 1997. Frazier failed to file a 2009 individual income tax return despite earning gross income of $618,253.53, an amount well above the threshold triggering the requirement to file. For tax years 2007 through 2010, Frazier caused a tax loss of $210,589.
In addition to the term of prison imposed, Frazier was ordered to serve one year of supervised release and to pay restitution in the amount of $210,589 to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Mississippi for their assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Media AdvisoryRead the Press Release
On March 2, 2017, at 9:00 a.m., Gervais (Ken) Ngombwa will be sentenced in federal district court in Cedar Rapids, Iowa, following his convictions for naturalization fraud and lying to federal agents and the district court’s finding that he participated in the Rwandan genocide.
Following the sentencing hearing, at approximately 10:00 a.m., the United States Attorney’s Office and the Department of Homeland Security will hold a press conference at the United States Attorney’s Office in Cedar Rapids, Iowa.
Press releases and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Marshall County man sentenced for failing to register as sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Thomas Hammerstone, 34, of McMechen, West Virginia, was sentenced in federal court to six months incarceration for failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen announced.
Hammerstone admitted to traveling in interstate commerce and failing to register and update his registration as a sex offender from November 2015 to October 2016.
Hammerstone is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge John Preston Bailey presided.
Man pleads guilty to threatening to damage government buildingsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy E. Smith, 37, an incarcerated individual at the United States Penitentiary at Hazelton, pled guilty to threatening to destroy government buildings, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Smith mailed threats to destroy buildings in Philadelphia, Boston, Washington, D.C., New York, and Chicago on November 26, 2015. He was convicted on one count of “Threat to Damage Buildings by Use of Explosives.”
He faces up to ten years in prison and a fine of up to $250,000. 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 Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service and the Special Investigative Services at USP Hazleton investigated.
U.S. District Judge Irene M. Keeley presided.
Man Posing as a “Coyote” Sentenced to 6.5 Years in Prison for Scheme to Defraud Undocumented Immigrants and Their RelativesRead the Press Release
FRESNO, Calif. — Martin Carranza-Sanchez, 45, of Mexico, was sentenced today by U.S. District Judge Dale A. Drozd to a six years and six months in prison and three years of supervised release for conspiracy to commit wire fraud in a scheme to defraud Mexican citizens seeking to enter the U.S. without documentation and their relatives living in the United States, U.S. Attorney Phillip A. Talbert announced.
According to his plea agreement and other court documents, between January 2010 and January 21, 2016, Carranza-Sanchez posed as an undocumented immigrant smuggler (also known as a “coyote”) who falsely promised undocumented immigrants and their U.S.‑resident relatives that he would deliver the immigrants into the United States for a fee. Carranza-Sanchez directed the U.S. residents to wire the fee to various bank accounts in the Eastern District of California, which he and his co-conspirators ultimately collected.
Carranza-Sanchez, however, never intended to help the immigrants enter the United States without being detected. In fact, on multiple occasions, after the immigrants arrived at the Mexico location designated by Carranza-Sanchez, his co-conspirators detained them against their will until their relatives wired Carranza-Sanchez’s fee. Also, on multiple occasions, Carranza-Sanchez and his co-conspirators told the U.S. residents that the immigrants would be harmed if the U.S. residents did not pay immediately. In many instances, once the relatives wired the fee, Carranza-Sanchez instructed the immigrants to cross the border without him, at which point the immigrants were immediately apprehended by U.S. Border Patrol.
The investigation revealed that Carranza-Sanchez and his co-conspirators defrauded U.S. residents of approximately $95,000 as a result of their scheme. He was ordered today to repay that amount to the victims of his crimes.
U.S. Attorney Talbert stated, “While smuggling undocumented immigrants is a crime, falsely claiming to do so in order to obtain payments from relatives in the United States is also a crime—fraud. Carranza-Sanchez’s fraud scheme targeted the immigrants’ relatives living in the United States, and he exploited them further by threatening to harm the immigrants if the fee wasn’t paid immediately. This criminal conduct is unacceptable, and we will continue to investigate and prosecute those who engage in it.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Angela L. Scott prosecuted the case.
Lockport Man Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLEN GAUTREAX, age 36, of Lockport, pled guilty today to one count of conspiring to distribute and to possess with intent to distribute methamphetamine.
According to court documents, GAUTREAUX conspired to distribute between 30 grams and 40 grams of a mixture or substance containing methamphetamine throughout the New Orleans area.
GAUTREAUX is facing a maximum sentence of 20 years’ imprisonment, a possible fine of up to $1,000,000, and at least three years of supervised release upon his release from prison. U.S. District Judge Sarah S. Vance set sentencing on June 28, 3017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (DEA), the Louisiana State Police (LSP), and the U.S. Marshals Service (USMS) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Lawrence County Man Sentenced to 4 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former Lawrence County resident has been sentenced in federal court to 48 months imprisonment, followed by 12 years of supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sean J. Barner, 38, formerly of New Bedford, Pennsylvania.
According to information presented to the court, Barner unlawfully possessed thousands of photographs and videos depicting minors engaged in sexually explicit conduct. Barner obtained the files through a peer-to-peer file sharing network, where he also made files available for others to download.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the successful prosecution of Barner.
Laveen Man Sentenced to Federal Prison for Assault Resulting in Serious Bodily InjuryRead the Press Release
PHOENIX – On Feb. 21, 2017, James Flippen Lewis, 28, of Laveen, Ariz., and a member of the Gila River Indian Community, was sentenced by U.S. District Judge Neil V. Wake to 84 months in prison, followed by a term of three years of supervised release. Lewis had previously pleaded guilty to three counts of assault resulting in serious bodily injury.
During 2013, 2014, and 2015, within the Gila River Indian Community, Lewis assaulted three different female victims causing them to sustain serious bodily injuries. All three victims were members of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-1409-PHX-NVW
RELEASE NUMBER: 2017-017_Lewis
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Kansas Tax Preparer Sentenced to Prison for Preparing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – A Kansas City, Kansas return preparer was sentenced to serve 27 months in prison today, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Thomas Beall for the District of Kansas.
According to documents filed with the court, Antoine Dorsey owned and operated Day-1 Tax Service, a tax preparation business in Kansas City. From 2009 through 2012, Dorsey reported fictitious business income on his clients’ returns to qualify them for the earned income tax credit, and claim refunds to which they were not entitled. Dorsey caused a tax loss to the Internal Revenue Service (IRS) of approximately $74,487.
In addition to the prison term imposed, Dorsey was ordered to serve one year of supervised release and to pay restitution in the amount of $88,467 including $74,487 to the IRS. On April 6, 2016, Dorsey pleaded guilty to aiding and assisting in the preparation of a fraudulent tax return.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Beall commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Scott C. Rask and Trial Attorney John T. Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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