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Friday 17 February 2017
Indictment Charges Wethersfield Woman with Offenses Stemming from Debt Elimination SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a nine-count indictment charging URMILA SRI THAKUR, also known as Urmila Buddhu-Thakur and Indro Buddhu-Thakur, 72, of Wethersfield, with conspiracy, mail fraud and money laundering offenses related to a fraudulent debt elimination scheme.
The indictment was returned on February 15, 2017. THAKUR appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges, and was released on a $250,000 bond.
According to court documents, from 2009 to June 2012, THAKUR, her former husband, Deowraj “Deo” Buddhu and their daughter, Sunita Buddhu, sold a debt elimination “program” to vulnerable individuals through various businesses, including Paradise Consulting Service, Hema, Inc., and Secured Redemption. In exchange for substantial fees, Deo Buddhu told victims about a little-known government fund that could be used to pay off their mortgages and other debts. In fact, no such fund exists. Buddhu instructed his victims to stop making payments on their mortgages, credit cards and other debts, and to stop paying their property taxes. He also provided his victims with fictitious promissory notes, which he called “bonds,” as well as other frivolous documentation, and advised his victims to use them to pay their debts.
The indictment alleges that THAKUR participated in the scheme by signing documents provided to victims as a witness, taking money from victims in exchange for their participation in the purported program, and managing payroll operations for the various businesses used for the purpose of selling and attempting to sell the program to the victims.
The indictment further alleges that, on June 12, 2012, the day after Deo Buddhu’s arrest, THAKUR withdrew $75,000 from a certificate of deposit account that contained funds from the scheme. THAKUR also obtained several cashier’s checks, including one for $50,000 made payable to THAKUR, which she thereafter negotiated using accounts in the name of SDK SYS Solutions and TRK Consulting Services.
The indictment charges THAKUR with one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud and seven counts of money laundering. If convicted, she faces a maximum term of imprisonment of 20 years for the conspiracy count, 20 years for the mail fraud count and 10 years on each count of money laundering.
Deo Buddhu and Sunita Buddhu were previously convicted in Hartford federal court.
As to THAKUR, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the U.S. Department of Housing and Urban Development – Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Liam Brennan.
INFORMATION: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls on February 16, 2017 and entering pleas of Not Guilty were:
- DANIEL WILLIAM DOBLER, a 34-year-old resident of Lakewood, Washington, appeared on charges of conspiracy to commit interstate transportation of stolen property and interstate transportation of stolen property. If convicted of the most serious charge contained in the indictment, DOBLER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, Montana Highway Patrol, Valley County Sheriff’s Office, and Minot North Dakota Police Department. PACER Case Reference. 17-04
Appearing before U.S. Magistrate Lynch in Missoula on February 16, 2017 and entering pleas of Not Guilty were:
- NATHAN SCOTT CROWLEY, a 37-year-old resident of Trout Creek, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CROWLEY faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Sanders County Sheriff’s Office, and U.S. Fish and Wildlife Service. PACER Case Reference. 16-46
Appearing before U.S. Magistrate Johnston in Great Falls on February 13, 2017 and entering pleas of Not Guilty were:
- VANESSA DAWN VALLIER, a 33-year-old resident of Great Falls, appeared on charges of theft of mail, wire fraud, aggravated identity theft, and misuse of a passport. If convicted of the most serious charges contained in the indictment, VALLIER faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Postal Service and Great Falls Police Department. PACER Case Reference. 17-12
Appearing before U.S. Magistrate Johnston in Great Falls on February 6, 2017 and entering pleas of Not Guilty were:
- RYAN GEORGE BREDESON, a 34-year-old resident of Great Falls, appeared on charges of theft of mail, and wire fraud. If convicted of the most serious charge contained in the indictment, BREDESON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Postal Service and Great Falls Police Department. PACER Case Reference. 17-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Man Hammered with 80-Year Prison Sentence for Multiple Counts Involving Child PornographyRead the Press Release
HOUSTON – A 49-year-old man from Houston has received a massive sentence following his convictions of sexual exploitation of a child, distribution and possession of child pornography, announced U.S. Attorney Kenneth Magidson. William Lee Niver pleaded guilty June 14, 2016.
Today, U.S. District Judge Gray Miller handed Niver a sentence of 360 months for the sexual exploitation of a child, otherwise known as production of child pornography. He also received 240 months for each of two distribution charges as well as another 120 months for the possession of child pornography. The sentences will all run consecutively for a total of 960 months in federal prison. There is no parole in the federal system.
During the hearing, the court heard from the victim about how being sexually assaulted, psychologically abused and manipulated into situations to meet Niver’s deviant sexually-perverse needs has impacted her life. She indicated that from the time she was eight years old until the age of 14, the abuse consumed her life. “He touched every inch of my body, both with and without my consent, performed oral sex on me, coerced me into performing oral sex on him, engaged in vaginal and anal intercourse with me and encouraged me to have sex with a good female friend of mine. This man, who had been my hero since the day I was born, gave me innumerable excuses for his behavior, scrambled for proof of his intrinsic morality, told me how beautiful and intelligent I was and how I had to understand that I was impossible to resist.”
The government told the court that instead of receiving Barbie dolls and books, Niver gave the victim vibrators and showed her pornography.
In determining the sentence, Judge Miller noted the substantial harm done to victim and said this was one of the saddest cases ever to come before him.
Niver first came to the attention of law enforcement after he had sent images of child pornography, including the victim who appeared in court, to an undercover agent. Federal agents executed a search warrant at Niver’s residence and performed a forensic examination on his computer which resulted in the discovery of more than 6,000 images and 1,000 videos of young children engaged in sexually explicit conduct. The images included children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
At the time of the plea, Niver admitted to taking sexually explicit photographs and a video of a minor female relative and emailing them to others.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo and Carrie A. Wirsing, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Harrisburg Woman Pleads Guilty to Bankruptcy FraudRead the Press Release
Rietta M. Miller, 51, of Harrisburg, IL, has pled guilty to a bankruptcy fraud charge pending against her in federal court in Benton, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced today. Charges were filed against Miller on January 30, 2017, 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.
"Federal bankruptcy laws enable debtors to gain a fresh start in life through a discharge of their debts," Mr. Boyce explained. "In order to get this fresh start, however, the law requires debtors to disclose their assets so that their creditors can be paid back as much as possible before the debts are discharged. Individuals who hide their assets during bankruptcy cases are defrauding their creditors. Our office will continue to prosecute those who engage in this type of conduct."
Miller was charged with concealing assets in her bankruptcy case. In pleading guilty today, Miller admitted that she concealed from the Bankruptcy Court a $47,736.12 worker’s compensation settlement she received approximately one month before she filed bankruptcy. Miller acknowledged that she attempted to conceal this money from the Bankruptcy Court by moving the funds in and out of her bank accounts. Miller also admitted that she lied on the bankruptcy petition and schedules she filed with the Bankruptcy Court, and again when she was
asked questions under oath at a Meeting of Creditors held in her bankruptcy case. Miller’s chapter 7 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"This case is an example of the collaborative efforts of the Bankruptcy Fraud Working Group and other law enforcement partners to combat fraud and abuse in our nation’s bankruptcy system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Boyce and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases."
Miller’s sentencing hearing is scheduled for May 18, 2017, at 10:30 a.m., at the federal courthouse in Benton, Illinois. The crime of concealing assets in a bankruptcy case is punishable by up to 5 years of imprisonment, and/or a $250,000 fine, not more than three years of supervised release, and restitution.
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 ("FBI"), 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.
Greeneville Resident Sentenced to Twenty Years in Federal Prison for Crack Cocaine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Feb.14, 2017, Braun Tarone Evans Dabbs, 33, of Greeneville, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 210 months in federal prison following a conviction for his role in a conspiracy to distribute large quantities of cocaine consecutive base “crack” in east Tennessee. Additionally, since Dabbs was on federal supervised release for a prior conviction during the time he engaged in this crack cocaine conspiracy, he received a 30-month sentence, for a total of 240 months.
Dabbs was initially convicted on federal crack cocaine conspiracy charges in 2009 and received a prison sentence of 42 months. Due to a change in the law, this sentence was subsequently reduced to 34 months. Upon his release from prison, he was placed on terms of supervised release, during which time he re-engaged in the sale of crack cocaine. On two separate occasions in June 2015, Dabbs sold crack cocaine in the amounts of 52 grams and 69.88 grams, to individuals working on behalf of law enforcement.
According to his plea agreement on file with U.S. District Court, Dabbs admitted that he was accountable for approximately 4,500 grams (4.5 kilograms) of crack cocaine from October 1, 2013 through July 21, 2015, all while on supervised release following his release from prison on his initial federal crack cocaine conviction.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Johnson City Police Department and Third District Judicial Drug Task Force. Assistant U.S. Attorneys Nick Regalia, Wayne Taylor and Christian Lampe represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Former Office Manager Sentenced to Prison Term for Theft of Nearly $280,000 from D.C. Architecture FirmRead the Press Release
WASHINGTON – Jill Murray, a former office manager and bookkeeper for a Washington-based architecture firm, was sentenced today to six months in prison on a federal charge involving the embezzlement of nearly $280,000 from her employer, U.S. Attorney Channing D. Phillips announced.
Murray, 50, of North Charleston, S.C., pled guilty in November 2016, in the U.S. District Court for the District of Columbia, to one count of wire fraud. She was sentenced by the Honorable Randolph D. Moss. Upon completion of her prison term, she will be placed on three years of supervised release. She also was ordered to pay $279,611 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Murray was authorized to make supply purchases for the architecture firm’s business operations and was responsible for maintaining bookkeeping records for all expenses that were paid out to vendors and contractors. Murray was also authorized to pay her employer’s credit card bills.
Between December 2005 and March 2014, Murray made approximately $112,630 in unauthorized personal purchases of items from retailers including Amazon, Best Buy, Staples, Bed Bath and Beyond, Target, Whole Foods, Office Depot, Crate & Barrel, and the District of Columbia Parking Enforcement Agency. From about January 2007, through about March 2014, Murray, using the company’s credit cards, purchased gift cards in her own name from Staples in the amount of $83,511 and from Office Depot in the amount of $83,469. Murray was able to conceal her theft scheme by manipulating the architecture firm’s books.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department’s Financial Crimes Unit. He also expressed appreciation for the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Swanton, who handled forfeiture issues, Paralegal Specialists Krishawn Graham and Angela Lawrence, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who prosecuted the case.
Former North Carolina State Senator Pleads GuiltyRead the Press Release
Winston-Salem, N.C. – A former North Carolina State Senator pled guilty to federal fraud and tax charges today, announced Acting United States Attorney Sandra Hairston.
Fletcher Lee Hartsell, Jr., who represented parts of Cabarrus and Union Counties as a State Senator from 1991 until 2016, pled guilty today before United States District Judge Thomas D. Schroeder to one count of mail fraud and two counts of filing false tax returns. According to court documents, Hartsell engaged in a scheme to defraud and to obtain money through false pretenses by soliciting funds through the mail for the Hartsell for NC State Senator Committee, using those funds for personal goods and services not authorized under state campaign finance laws, and then misrepresenting such expenditures on filed campaign disclosure reports. Hartsell further made knowing and willful false statements in federal income tax returns filed both in his personal capacity and on behalf of a corporation he co-managed.
“Transparency, honesty, and integrity on the part of elected officials allow citizens to make informed decisions about their campaign contributions and at the ballot box. This case should serve as a reminder that those occupying positions of public trust will be held accountable under the same criminal laws as their constituents,” said Acting United States Attorney Hairston.
“By authorizing and directing campaign funds to pay for personal items and services, Hartsell caused false partnership and individual income tax returns to be filed,” said Michael C. Daniels, IRS-CI’s Acting Special Agent in Charge. “IRS-CI helps ensure that everyone, including public officials, comply with the same tax obligations as the citizens they serve.”
“Senator Fletcher Hartsell degraded our country's democratic process by spending campaign money as if it were from his own personal piggy bank. Hartsell paid for basic expenses including haircuts and lawn care with money that belonged to the American people. The FBI will work tirelessly to ensure any elected official who abuses their power is held accountable for their wrongdoing,” said John Strong, Special Agent-in-Charge of the FBI in North Carolina.
Hartsell faces a maximum penalty of 20 years confinement and a fine of up to $250,000.00. Sentencing is scheduled for May 16, 2017 in Winston-Salem.
The investigation is being handled by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations with assistance from the North Carolina State Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney JoAnna G. McFadden.
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Former New Jersey Attorney and Father Indicted in Connection with $13 Million Ponzi SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey attorney and his father have been indicted for their respective roles in a $13 million Ponzi scheme, U.S. Attorney Paul J. Fishman announced today.
Michael W. Kwasnik, 47, of North Miami Beach, Florida, and William M. Kwasnik, 68, of Marlton, New Jersey, were indicted Feb. 16, 2017, by a federal grand jury on three counts of wire fraud, two counts of mail fraud, one count of conspiracy to commit money laundering, and seven counts of money laundering. Michael Kwasnik was also charged with eight additional counts of transacting in criminal proceeds. The defendants are both scheduled to appear Feb. 21, 2017, before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
Michael Kwasnik previously owned and operated a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia, Pennsylvania. William Kwasnik owned and operated an insurance company, Abby Grant, in Lakewood and Cherry Hill, New Jersey.
According to documents filed in this case and statements made in court:
From October 2008 to November 2011, Michael and William Kwasnik controlled a number of entities, including Liberty State Financial Holdings Corp. and its subsidiaries (Liberty State Benefits of Pennsylvania; Liberty State Benefits of Delaware; Liberty State Insurance Services; Liberty State Wealth Management; and Liberty State Credit) and Oxbridge Investors Fund; OPIS Management Fund; and Capital Management of Delaware.
The Kwasniks allegedly carried out a scheme to defraud clients of the Kwasnik law firm by diverting funds from their trust accounts to themselves and the entities they controlled. Michael Kwasnik and others induced clients to establish various types of trusts based on misrepresentations and false pretenses. Michael Kwasnik named himself as the clients’ trustee and directed clients to transfer their money, property and other assets into their trust accounts. Michael Kwasnik then transferred the money out of the clients’ trust accounts and into accounts which he and his father controlled. More than $13 million was collected from more than 40 clients over the three-year period. The Kwasniks laundered the funds through the entities they controlled and Abby Grant before ultimately using the stolen funds to pay for legal and operational expenses of the entities they controlled, the law firm, and personal expenses.
Each count of wire fraud, mail fraud and money laundering carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Each count of transacting in criminal proceeds carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Federal Contract Employee Sentenced for Falsifying Timesheets at Two AgenciesRead the Press Release
WASHINGTON – Daniel J. Glauber, who worked as a federal contract employee, was sentenced today to pay more than $70,000 in restitution and perform 360 hours of community service for falsifying timesheets while working at two separate federal agencies.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Norbert E. Vint, Acting Inspector General for the Office of Personnel Management (OPM), and Russell Decker, Acting Inspector General of the National Security Agency (NSA).
Glauber, 44, who now resides in Fort Worth, Texas, pled guilty in November 2016, in the U.S. District Court for the District of Columbia, to a charge of making false statements. The Honorable Richard J. Leon sentenced Glauber to five years of probation. During that time, he will be placed on GPS monitoring for 90 days, must perform the community service, and must pay a total of $70,646 in restitution.
According to the government’s evidence, Glauber was hired in April 2012, under contract, as a systems administrator at OPM. He was required to perform his duties on-site and work a standard 40-hour work week. Additionally, and unbeknownst to OPM, in May of 2012, he was hired as a subcontractor to work at NSA on computer systems. Here, too, his duties called for him to work a standard 40-hour work week and on-site.
From May through August of 2012, Glauber worked at both OPM and NSA, but neither agency was aware that he was working for the other. OPM’s Office of the Inspector General reviewed building access reports and confirmed that Glauber billed 323.75 hours for the time period ranging from May through August 2012 in which he was not actually present at his work site. He was paid $43,706 for these hours, and subsequently was terminated by OPM. However, it was only after his termination that OPM learned of the other employment at NSA.
NSA investigators later reviewed building records and uncovered a discrepancy of 269.5 hours in which Glauber had submitted timesheets for hours in which he did not work on-site. He was paid $26,940 for these hours.
In announcing the sentence, U.S. Attorney Phillips, Acting Inspector General Vint, and Acting Inspector General Decker commended the work of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and the investigators who worked on the case from the National Security Agency, Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kaitlyn Krueger, Christopher Toms, and Jessica Mundi, and former Assistant U.S. Attorney Teresa A. Howie and Assistant U.S. Attorney Adrienne C. Dedjinou, who prosecuted the case.
Foreign National Charged with Illegal Possession of A Firearm and Ammunition and Falsely Claiming to Be A Lawful Permanent ResidentRead the Press Release
Indictment also alleges misuse of social security number and possession of multiple fraudulent documents.
GRAND RAPIDS, MICHIGAN - Diego Hernandez-Cortes, a/k/a "Javier De La Cruz" 33, a citizen and national of Mexico who overstayed his work visa, was arrested on February 15, 2017, by U.S. Immigration and Customs Enforcement (ICE) and Bureau of Alcohol Tobacco Firearms and Explosives (ATF), after being indicted on felony charges of being an illegal alien in possession of a firearm and ammunition, falsely claiming lawful Permanent Resident status, misusing a Social Security number and possession of false identification documents.
The indictment, which was returned by a grand jury for the Western District of Michigan, alleges that Hernandez-Cortes knowingly possessed a DPMS Inc., Panther .223 caliber semiautomatic rifle, and 15 rounds of Remington .223 caliber ammunition, contained within a magazine. The indictment further alleges that Hernandez-Cortes possessed two Social Security cards and three Permanent Resident cards knowing them to be forged counterfeited, altered, falsely made, procured by means of any false claim or statement, or to have been otherwise procured by fraud or unlawfully obtained.
In addition, the indictment alleges that on two occasions, in Kent County and Oceana County, Hernandez-Cortes falsely claimed to two separate employers to be a lawful permanent resident of the United States with a duly-assigned alien registration number when he knew this was not true. Furthermore, the grand jury charged that with respect to one of those employers, Hernandez-Cortes falsely represented a Social Security account number as his own that had not been assigned to him.
The matter was a joint investigation by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Bureau of Alcohol Tobacco Firearms and Explosives (ATF) and the Sparta Police Department.
If convicted, Hernandez-Cortes faces up to 10 years in federal prison. Conviction would also result in deportation back to Mexico. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Florida Man Pleads Guilty in Wire Fraud Case Related to Falsified Water Testing in Dale County, AlabamaRead the Press Release
Montgomery, Ala. – On Thursday, February 16, 2017, Darin Lewis, 46, of Crestview, Florida, pleaded guilty to one count of conspiring to commit wire fraud, announced United States Attorney George L. Beck, Jr. Lewis’s conviction stemmed from his involvement in a scheme to falsify water samples during the testing of new water lines installed in Dale County, Alabama.
According to court documents, in 2014, the Dale County Water Authority hired a Florida company, Roberson Excavation, Inc. (Roberson Excavation), to replace water lines in the Marley Mill area of Dale County. Lewis’s co-defendant, Billy Ray Roberson, was the owner and president of Roberson Excavation. Lewis began working on the project around February of 2015. By that time, Roberson Excavation was three months behind schedule on the job and paying penalties of $500 for each day that the project went incomplete. At that time, Roberson instructed his site supervisor, Lewis, to falsify the testing required before the lines went into operation. Among the tests falsified were the tests used to determine whether harmful bacteria were present in the water.
A sentencing hearing will be scheduled in the upcoming months where Lewis will face a maximum sentence of 5 years’ imprisonment. The other defendants charged in the case, Billy Ray Roberson and Roberson Excavation, will proceed to trial on June 5, 2017 in Dothan, Alabama.
This case was investigated by the Environmental Protection Agency’s Criminal Investigations Division and Office of Inspector General. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Fairfield Doctor Who Illegally Prescribed Oxycodone is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BELLOFIORE, M.D., 56, of Trumbull, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to two years of probation for illegally prescribing oxycodone. Judge Thompson also ordered BELLOFIORE to perform 200 hours of community service, and prohibited him from writing prescriptions for controlled substances until October 13, 2017.
According to court documents and statements made in court, BELLOFIORE is a physician who practiced out of an office in Fairfield. Two of BELLOFIORE’s longtime patients were a married couple who lived in Connecticut until approximately 2011, when they relocated to Florida.
BELLOFIORE knew that, prior to moving to Florida, the couple had unlawfully obtained forged prescriptions for opioid medications from BELLOFIORE’s former medical assistant and, as a result, he should have been aware of the possibility that the couple was abusing or diverting their medications.
After moving to Florida, the couple traveled to Connecticut approximately twice per year, during which visits they scheduled medical appointments with BELLOFIORE. At the conclusion of each appointment, BELLOFIORE provided the couple with approximately six months of predated prescriptions, including prescriptions for Oxycodone, to last until their next appointment.
At times, the couple was unable to travel to Connecticut to see BELLOFIORE and obtain their prescriptions in person, in which case BELLOFIORE left the predated prescriptions for a friend or relative of the couple to pick up from BELLOFIORE’s office. It was BELLOFIORE’s understanding that the friend or relative would fill the prescriptions each month at a pharmacy in Connecticut and mail the medications to the couple in Florida.
In approximately February 2016, BELLOFIORE provided a stack of prescriptions to a friend of the married couple. The prescriptions, which were improperly dated to make it appear that they were issued at monthly intervals after February 2016, authorized the couple to receive thousands of pills of oxycodone and Percocet, a medication containing oxycodone. BELLOFIORE also failed to include on the prescriptions the couple’s address in Florida, which might have alerted a pharmacist filling the prescriptions in Connecticut to the possibility that the medications were being abused or diverted.
The couple subsequently diverted a significant amount of their medications for profit by arranging through a middleman for street-level resale of the pills in and around Waterbury.
The Controlled Substances Act prohibits physicians from dispensing any Schedule II controlled substance, including oxycodone, without a valid written prescription. The prescription must be “dated as of, and signed on, the day when issued” and “bear the full name and address of the patient.” A practitioner also may not issue multiple prescriptions at any single time authorizing a patient to receive more than a 90-day supply of a Schedule II controlled substance.
On October 13, 2016, BELLOFIORE pleaded guilty to one count of issuing unlawful prescriptions for oxycodone. He has been prohibited from writing prescriptions for controlled substances since that time.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Everett Man Charged with Scheme to Defraud the Massachusetts Department of Unemployment AssistanceRead the Press Release
BOSTON – An Everett man was charged today in U.S. District Court in Boston in connection with a scheme to defraud the Department of Unemployment Assistance of more than $1.8 million.
Edison Delarosa, 52, was arrested and charged by complaint with one count of mail fraud and one count of wire fraud. He was released on conditions following an appearance before U.S. District Court Magistrate Judge Page M. Kelley.
From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.
The charges of wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Mattew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant United States Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.
Eight Individuals Face Fraud, Identity Theft Charges Involving Possession of Names, Information of More Than 143,000 IndividualsRead the Press Release
SALT LAKE CITY – A 56-count federal indictment returned by a Utah grand jury charges eight individuals in connection with what the indictment alleges was a scheme to use fraudulently created identification documents and fraudulently obtained bank account information to open store credit accounts. The defendants then used the newly-obtained credit to make purchases at various merchants in Salt Lake County.
The indictment alleges the defendants possessed the names of more than 143,000 individuals – nearly one in 20 Utahns – most of whom either live in Utah or lived in the state at some point. In addition to the names, the defendants had corresponding personal identifying information of these individuals. The source of the information is not known, but the format of the database suggests it may have come from a medical insurance provider or a business who provided services to a medical insurance provider more than five years ago.
Charged in the indictment are Danny Lechtenberg, age 36, Jesse Ryan Bell, age 30, Christopher Wayne Cummings, age 33, Jody Ray Bledsoe, age 44, and Christopher Winterton, age 35, all of Taylorsville; Carolina Cueller Morton, age 53, and Donald Leslie Peck, age 51, both of Salt Lake City; and Tina Marie Schilling, age 57, of West Valley City.
A sealed indictment was returned by a federal grand jury Feb. 1, 2017. It was unsealed Feb. 3, 2017.
According to the indictment, the defendants obtained the names and personal identifying information of individuals primarily living in Utah, created false and fraudulent identification documents using the individuals’ personal identifying information; opened credit accounts at retail merchants; and made fraudulent purchases using the names and credit account numbers taken out in the names of the individuals knowing that financial institutions, which secured the credit cards for the merchants, would rely on the fraudulent information provided to open and secure these credit accounts.
Each defendant is charged with conspiracy to commit bank fraud in the first count of the indictment. Lechtenberg is also charged with bank fraud, possession with intent to use or transfer five or more documents; using an unauthorized access device; aggravated identity theft; and unlawful manufacture of a controlled substance – marijuana. In addition to the conspiracy to commit bank fraud count, the other defendants face bank fraud, using an unauthorized access device, and aggravated identity theft counts. (See the chart at the end of the press release for more specific information on the individual charges.)
Lechtenberg, Bell, Cummings, Morton, and Winterton were arrested on federal warrants and had initial appearances in federal court Feb. 3, 2017. Lechtenberg, Winterton and Cummings are in custody. Lechtenberg has a detention hearing Friday at 2:30 p.m. before U.S. Magistrate Judge Evelyn J. Furse. Magistrate Judge Furse found that Morton and Bell pose a risk of non-appearance and are a danger to the safety of others and the community, but found those risks are manageable under a combination of conditions. Bledsoe, Peck, and Schilling are scheduled for initial appearances on the charges Feb. 28, 2017, at 2:30 p.m. These three were issued summons to appear in court.
While more than 143,000 people were included in the database, the evidence suggests that only a small number of people had their identity used for a fraudulent purpose. Those individuals who have been identified as suffering a direct impact have been notified that they are victims of the charged crimes.
The case is being investigated by the Unified Police Department, the U.S. Postal Inspection Service, and member agencies of the Utah Identity Theft Task Force. It is being prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Breakdown of charges
1. Danny Lechtenberg
Counts Charges
1 - Conspiracy to commit bank fraud
2-7 - Bank fraud
33 - Possession with intent to use or transfer five or more documents
34-36 - Identity theft
39, 41, 44, 46, 48, 50, 52, 54 - Using an unauthorized access device
37, 38, 40, 42, 43, 45, 47, 49, 41, 53, 55 - Aggravated identity theft
56 - Manufacture of a controlled substance/marijuana
2. Jesse Ryan Bell
Counts Charges
1 - Conspiracy to commit bank fraud
8-9 - Bank fraud
39 - Using an unauthorized access device
40 - Aggravated identity theft
3. Christopher Wayne Cummings
Counts Charges
1 - Conspiracy to commit bank fraud
10-14 - Bank fraud
41 - Using an unauthorized access device
42-43 - Aggravated identity theft
4. Jody Ray Bledsoe
Counts Charges
1 - Conspiracy to commit bank fraud
15-17 - Bank fraud
44 - Using an unauthorized access device
45 - Aggravated identity theft
5. Carolina Cuellar Morton
Counts Charges
1 - Conspiracy to commit bank fraud
18-23 - Bank fraud
46 - Using an unauthorized access device
49 - Aggravated identity theft
6. Christopher Winterton
Counts Charges
1 - Conspiracy to commit bank fraud
24-26 - Bank fraud
50 - Using an unauthorized access device
51 - Aggravated identity theft
7. Donald Leslie Peck
Counts Charges
1 - Conspiracy to commit bank fraud
27-28 - Bank fraud
52 - Using an unauthorized access device
53 - Aggravated identity theft
8. Tina Marie Schilling
Counts Charges
1 - Conspiracy to commit bank fraud
29-32 - Bank fraud
54 - Using an unauthorized access device
55 - Aggravated identity theft
To determine if your personal information was included in the compromised database, please contact the Department of Justice’s Mega-Victim Case Assistance Program at 1-844-527-5299 or [email protected]. If there was evidence to suggest that your information was used for a fraudulent purpose, you should have already received a personal letter from the Victim Notification System. Even if you are not among the identified victims, however, it is possible that your information may have been used on third party websites to check credit scores or obtain unauthorized credit accounts. We encourage you to monitor your credit and notify investigators if you suspect fraudulent activity.
East Bay Chemical Company and Owner Indicted for Illegal Transportation and Smuggling of Hazardous MaterialsRead the Press Release
OAKLAND – A Union City man and the corporation he owns were charged with conspiracy to defraud the United States, smuggling, and multiple violations of the Toxic Substances Control Act and the Hazardous Materials Transportation Act, announced U.S. Attorney Brian J. Stretch; Environmental Protection Agency Criminal Investigation Division Special Agent in Charge Jay Green; U.S. Department of Transportation Office of the Inspector General Regional Special Agent in Charge William Swallow; and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin. The indictment alleges that Peiwen Zhou and his company, AK Scientific, conspired to defraud the United States, smuggled materials into the United States, and illegally transported chemicals within the United States by mislabeling and improperly packaging hazardous chemicals.
According to the indictment, Zhou, 53, of Palo Alto, was the founder, owner, and chief executive officer of AK Scientific. Zhou and AK Scientific were in the business of purchasing and then selling research and specialty chemicals to customers that included universities, research laboratories, and other entities. AK Scientific purchased chemicals from chemical supply companies in, among other places, South Korea, Poland, India, and New Zealand.
The indictment alleges the defendants defrauded the United States and smuggled hazardous chemicals into the United States by mislabeling the contents of containers. Further, defendants allegedly transported chemicals in violation of the Toxic Substances Control Act (TSCA) by failing to complete required import certifications and by failing to properly label packages containing hazardous materials. In addition, according to the indictment, the defendants also arranged to transport hazardous materials on several occasions without labeling the packages as required by the Hazardous Materials Transportation Act (HMTA).
Defendants are charged with one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371; one count of smuggling, in violation of 18 U.S.C. § 545; two counts of violating the TSCA, in violation of 15 U.S.C. § 2611(b) and 40 C.F.R. §§ 721.20 and 721.4880; and seven counts of violating 49 C.F.R. § 172.400 of the HMTA, in violation of 49 U.S.C. § 5124(a) and 18 U.S.C. § 2. For defendant Zhou, if convicted, the maximum statutory penalties are as follows:
Conspiracy- 5 years in prison term and a $250,000 fine
Smuggling- 20 years in prison and a $250,000 fine
Each count of violating the TSCA- 1 year in prison term and a $50,000 fine
Each count of violating the HMTA- 5 years in prison term and a $250,000 fine
For defendant AK Scientific, if convicted, the corporation faces the following maximum statutory penalties:
Conspiracy- 5 years of probation and a $500,000 fine
Smuggling- 5 years of probation and a $500,000 fine
Each count of violating the TSCA- 5 years of probation and a $200,000 fine
Each count of violating the HMTA- 5 years of probation and a $500,000 fine
Further, additional special assessments may be imposed on either defendant and Zhou may be subject to additional terms of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Zhou and a representative for AK Scientific are scheduled to appear on Tuesday, February 21, 2017, at 9:30 am before United States Magistrate Judge Donna Ryu for an initial appearance.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the United States Attorney’s office in San Francisco. The prosecution is the result of an investigation by the U.S. Environmental Protection Agency’s Criminal Investigation Division, the U.S. Department of Transportation’s Office of Inspector General, and the U.S. Department of Homeland Security’s Homeland Security Investigations.
Dupree Man Sentenced for Assault Resulting in Serious Bodily Injury and Aiding and AbettingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Aiding and Abetting was sentenced on February 13, 2017, by U.S. District Judge Roberto A. Lange.
Charles Hollow Horn, age 21, was sentenced to 24 months in custody, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Restitution has been postponed for 60 days.
Hollow Horn was indicted by a federal grand jury on April 13, 2016. He pled guilty on November 22, 2016.
The conviction stems from an incident on December 8, 2015, when Hollow Horn and his girlfriend were staying at another friend’s residence in Dupree. On the day of the assault, the home owner was out of town. Hollow Horn and his girlfriend were drinking throughout the day. Later in the afternoon, the victim showed up looking for the home owner. The victim had alcohol, so Hollow Horn invited him in. After they ran out of alcohol, they went to get more. While making the alcohol run, they ran into another friend of Hollow Horn’s – Bradley Spekker – and invited him over. They then returned to the residence to continue to drink and socialize.
Horn and Spekker became angry with the victim and they began to assault him. The victim was punched and kicked several times, as well as being struck repeatedly with elbows and knees during the course of the assault. Horn was wearing boots while he was kicking the victim. The victim was rendered unconscious. The victim suffered significant swelling to his whole head, nasal fractures and diffuse cerebral swelling. His nose was obviously deformed. There was a laceration to the top left of his head and another on his chin. There was a large hole in the wall with blood splatter around it.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hollow Horn was immediately turned over to the custody of the U.S. Marshals Service.
Dual Jamaican-U.S. Citizen Sentenced in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
A dual Jamaican and U.S. citizen charged in connection with the operation of a Jamaican-based fraudulent lottery scheme was sentenced in Charlotte, North Carolina, the Department of Justice announced today.
Felecia Roxanne Lindo, 33, was sentenced to serve 24 months in prison and three years’ supervised release by U.S. District Court Judge Robert J. Conrad Jr. in Charlotte. Lindo was also ordered to pay $292,900 in restitution.
Lindo pleaded guilty on Sept. 28, 2016, to one count of conspiracy to commit wire fraud, in the Western District of North Carolina. As part of her guilty plea, Lindo acknowledged that from in or about 2011 through at least in or about September 2012, she was a member of a lottery fraud conspiracy that targeted victims in the United States.
“Lottery scammers tied to Jamaica continue to prey on victims in the United States, promising large winnings in a lottery when in fact the victims are duped into sending the money to a member of the scheme,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting those who participate in international lottery schemes, which often target elderly Americans.”
Lindo was charged on Sept. 20, 2016, with one count of conspiracy to commit wire fraud. As part of her guilty plea, Lindo acknowledged that victims of the scheme received a telephone call stating that they had won money in a sweepstakes or lottery. Victims were instructed to send money for fees or other expenses in order to release their purported lottery winnings. The victims of the scheme sent hundreds of thousands of dollars to Lindo, who then forwarded a portion of the money to Jamaica. Lindo acknowledged there was no lottery, that there were no winnings, and that she kept some the victims’ money for her own benefit.
“The prison sentence demonstrates the serious consequences of engaging in fraud designed to steal from Americans,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “We appreciate the work of the Justice Department’s Consumer Protection Branch in investigating and prosecuting international lottery scams operating in the Western District.”
“The Postal Inspection Service seeks to end fraud on American citizens, many of whom are older, by those engaged in international lottery schemes,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “Today’s sentencing demonstrates there are no safe havens for those who participate in these types of fraud schemes.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.
Acting Assistant Attorney General Readler and U.S. Attorney Rose commended the investigative efforts of the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation. The case was prosecuted by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch with the assistance of Assistant U.S. Attorney Kelli H. Ferry of the Western District of North Carolina.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.
Department of Justice and EPA Announce $15 Million Settlement to Clean up Contamination at Sauget Area 1 SitesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Pharmacia LLC (formerly known as Monsanto), Solutia Inc., ExxonMobil Oil Corp. and Cerro Flow Products have agreed, as responsible parties, to clean up six former waste disposal sites that comprise the Sauget Area 1 Superfund Site in Sauget, St. Clair County, Illinois.
The settlement requires the companies to spend an estimated $14.8 million to conduct removal of areas of groundwater contamination source material at four former disposal areas, cap sites to prevent further movement of contaminants, continued operation and maintenance of a containment cell created to hold hazardous wastes, and installation of a monitoring well network. EPA will oversee the work to be conducted by these four responsible parties, which will implement the cleanup remedy required by the agency’s 2013 Record of Decision for Sauget Area 1. In addition, the companies will reimburse EPA $475,000 incurred in its past cleanup actions at the site. The companies will also reimburse EPA for costs incurred in overseeing the work required by the settlement, except for the first $2 million.
Situated in the American Bottoms region across the Mississippi River from St. Louis, Missouri, Sauget Area 1 has been heavily industrialized since the early 1900s. Sauget Area 1 consists of three closed landfills, two former surface impoundments, two borrow pits filled with debris, and Dead Creek, all of which received industrial wastes from as early as 1931 and until 1988. EPA and Illinois have been investigating the Sauget Area 1 Sites since the early-1980s. In the fall of 1995, EPA completed a CERCLA Removal Action at Site G. On January 21, 1999, EPA issued an Administrative Order on Consent to Solutia and Pharmacia requiring them to conduct an Engineering Evaluation and Cost Analysis for the Sauget Area 1 contaminated source areas and Dead Creek, and to conduct a Remedial Investigation and Feasibility Study for Sauget Area 1 groundwater. Also in 1999, EPA issued a Unilateral Administrative Order (UAO) requiring Monsanto Company and Solutia Inc., to replace culverts on Dead Creek to eliminate potential risks associated with flooding and associated adverse ecological impacts. In 2001, EPA modified the UAO to address contamination in Dead Creek, including requirements for sediment removal above risk levels, disposal of the dredged sediments in an adjacent dedicated RCRA Subtitle C-compliant containment cell, and measures to protect Dead Creek from recontamination from adjacent landfills. In all, pursuant to the UAO the responsible parties dredged and disposed of in the cell approximately 64,000 cubic yards of sediments.
Pursuant to these earlier orders and agreements, responsible parties have completed or paid for removal actions within Sauget Area 1, conducted investigations of remaining contamination and reimbursed nearly all of the United States’ past costs related thereto. Taking into account the settlement being lodged today and the work previously performed at the site, over $50 million is being devoted to cleaning up the contamination at this site.
The settlement was lodged with the U.S. District Court for the Southern District of Illinois and is subject to a 30-day public comment period and final court approval. It can be viewed at www.justice.gov/enrd/Consent_Decrees.html.
For more information on the site, please visit: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0500753
Davenport Man Sentenced to 33 Months in Prison for Felon in Possession of a FirearmRead the Press Release
Davenport, IA - On February 17, 2017, DeAries Napoleon Jonesheather Jean Reekr, age 28, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 33 months in prison for two counts of felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Jones was ordered to serve a three-year term of supervised release following his release.
On March 7, 2016, Davenport Police Department (DPD) received a shots-fired call. Upon investigation, they found a vehicle, belonging to Jones, that was possibly involved. Officers obtained a search warrant for Jones’ vehicle. Three spent-shell casings were found in the vehicle. Upon search of Jones’ residence, a Ruger P95 9mm handgun was recovered, along with 48 rounds of ammunition and marijuana.
On July 11, 2016, DPD initiated an unrelated investigation. Jones was located and a loaded Smith and Wesson M&P 9 mm handgun was found in Jones’ waistband.
This matter was investigated by the DPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Dallas Man Sentenced to 188 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — A 31-year-old Dallas, Texas, man, Rafael Almeida Zapata, who pleaded guilty in August 2016 to one count of transporting and shipping child pornography, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 188 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in June 2015, Dallas Police Department executed a search warrant at the residence of Zapata in Dallas, Texas. Officers showed Zapata still images of a child pornography video downloaded from an IP address through the ARES peer-to-peer file sharing program. The IP address was linked to Zapata and he admitted that he recognized the still images from a child pornography video he downloaded through ARES. Zapata also admits to possessing more than 600 images of child pornography, some of the images depicted sadistic and masochistic content involving children.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and Dallas Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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D.C. Man Sentenced for Real Estate Investment Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Homayoon Daneshvar, 63, a resident of Washington, D.C., was sentenced today to 18 months in prison for charges related to a $1.9 million investment fraud scheme.
Danshevar was also ordered to serve three years of supervised release, forfeit $1.945 million, and pay $926,020 in restitution.
Daneshvar pleaded guilty on Oct. 24, 2016. According to court documents, from in or about April 2009 to January 2013, Daneshvar lied and made false promises to eight victim investors to persuade them to give him approximately $1.9 million. Daneshvar told the victim investors the money would be used for bridge financing to purchase foreclosed property that would be “flipped,” or quickly resold for profit. Daneshvar promised a monthly return on their investments, but in reality Daneshvar used the money to invest in the stock market, pay “returns” on the investments back to the investors, and to pay for his own personal expenses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Grace L. Hill prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-231.
College Park Men Sentenced for String of Drug Store Robberies in Cobb CountyRead the Press Release
ATLANTA - Dave Montonio Sturgis, Jr., has been sentenced to 32 years in federal prison for robbing three drug stores in Cobb County, Georgia, in June 2015. Sturgis’ co-defendant and robbery partner Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, was sentenced on January 12, 2017, to 40 years in prison for the three robberies he committed with Sturgis and three other robberies he committed in May and early June 2015 in Atlanta and Cobb County.
“This crew had had little regard for the lives of the employees they robbed, and no fear of being caught,” said U.S. Attorney John Horn. “Thankfully, one alert Lawrenceville Police Department officer quickly identified similarities in the robberies, and started putting the team together to catch them before they harmed anyone. Local law enforcement agencies teamed with the FBI to stop this violent robbery crew, and we are grateful for their hard work in this case.”
“The sentencing of Dave Sturgis, Jr. highlights the intensive joint investigation addressing a string of violent commercial robberies within the metro Atlanta area. The removal of Sturgis and his partner, Lloyd Joyner, from our streets will indeed have a positive impact on our community crime wise and we have many dedicated detectives, investigators, agents and prosecutors to thank for making this happen. The FBI’s Atlanta Field Office will continue to work with its many law enforcement partners in aggressively addressing violent crime in Atlanta and throughout Georgia as a whole,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This conviction illustrates the great work of law enforcement in investigating and prosecuting armed robberies in Georgia. The Georgia Bureau of Investigation remains committed to working with our local and federal partners to pursue these vicious crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“I am pleased with the efforts of several law enforcement agencies working together to bring violent criminals to justice,” said Randy Johnson, Chief of the Lawrenceville Police Department. “We emphasize the need for agencies to work together and share information in order to stop violent crime. Criminals do not recognize jurisdictional limits, nor do they confine their activities to a single jurisdiction. Lawrenceville Police detective Justin Hipps, who recognized the similarity in crimes occurring across metro-Atlanta, did a great job to bring agencies together to share information. We are proud of his tenacious efforts in investigating these crimes.”
According to U.S. Attorney Horn, the charges and other information presented in court: Joyner and Joseph Stowers—who pleaded guilty before Joyner and Sturgis’ trial—robbed CVS and Walgreens drug stores in Marietta, Smyrna, and Atlanta, in May and June 2015. They followed a pattern by dressing in black hooded sweatshirts, their faces masked, and brandishing semiautomatic pistols when they burst into the stores near closing time or, in the case of 24-hour stores, after midnight, when the stores were empty of customers. They terrorized employees by rounding them up and taking them to the store office, where they demanded that the manager open the safe, while the other employees were forced to lay face-down on the floor. In some instances, the robbers were limited to taking cash from cash registers. They also took the wallets and cell phones of several employees during the robberies, and then fled.
A detective from the Lawrenceville Police Department was the first to identify these crimes were a related series of robberies, and put together the task force that established that these robberies were related. Part of the evidence produced at trial were videos of the three defendants with large stacks of cash and guns after the robberies occurred.
After six days of trial in September 2016, in federal court in Atlanta, the jury convicted Joyner of robbing a CVS in Marietta, on May 27, 2015; a CVS in Atlanta, on June 4, 2015; and a CVS in Smyrna, also on June 4, 2015.
Sturgis joined the robbery crew in mid-June 2015, as the driver. He also entered the stores prior to the robberies to scout the targets. Joyner and Sturgis were convicted by a jury of robbing a Walgreens in Smyrna, on June 16, 2015; a Walgreens in Marietta, on June 18, 2015; and a CVS in Marietta, on June 19, 2015. The jury also convicted Joyner and Sturgis of aiding and abetting each other in the brandishing of firearms in the robberies on June 16, 18, and 19. FBI agents and task force officers arrested Joyner and Sturgis outside of a CVS in Marietta on June 24, 2015.
Dave Montonio Sturgis, Jr., 25, of College Park, Georgia, was sentenced to 32 years, to be followed by three years of supervised release, and to pay restitution of $7,130 to Walgreens and CVS.Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, 25, of College Park, was sentenced to prison for 40 years, to be followed by five years of supervised release.
Stowers is scheduled to be sentenced March 23, 2017.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Lawrenceville Police Department.
Assistant United States Attorneys Mary Webb and William Traynor prosecuted the case.
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.
Chicago Woman Allegedly Attempted to Smuggle Heroin and Marijuana through LAX after Grammy Weekend in Los AngelesRead the Press Release
LOS ANGELES – A Chicago woman is facing a federal drug trafficking charge for allegedly trying to smuggle at least a kilogram of heroin and four kilograms of marijuana on a plane leaving Los Angeles International Airport.
Beige White, 34, was arrested Wednesday at LAX by special agents with the Drug Enforcement Administration. White made her initial court appearance yesterday afternoon, at which time she was ordered held without bond and was directed to appear for an arraignment on March 24, 2017.
A criminal complaint filed Wednesday in United States District Court specifically alleges that White attempted to smuggle approximately 2.28 pounds of heroin and 9 pounds of marijuana through a security checkpoint at LAX on Monday.
The narcotics were discovered in White’s luggage after she had checked in for a Southwest Airlines flight to Chicago. After seeing something suspicious in one of the bags during an image scan, the Transportation Security Administration inspected the bag and discovered a clear plastic bag containing a substance later determined to be heroin, as well as multiple sealed plastic bags containing marijuana. Another piece of checked luggage in White’s name also allegedly contained marijuana.
Los Angeles Airport Police responded to the scene, located White on her Southwest flight, and escorted her off the airplane. During a subsequent interview, White admitted to personnel with the Los Angeles Airport Police and the DEA that the bags containing the heroin and marijuana were hers, and that she and a friend had traveled from Chicago to attend events related to the Grammy Awards. According to White’s statement recounted in the affidavit in support of the complaint, her friend had purchased her airline ticket and offered to pay White $1,500 if she agreed to transport marijuana back to Chicago on her return flight. During the interview, White denied knowledge of the heroin that was in the same checked luggage as some of the marijuana, according to the affidavit.
Following the interview on Monday, White was released pending further federal investigation. Federal prosecutors filed the criminal complaint on Wednesday, and White was taken into custody before she boarded another flight to return home.
“The Department of Justice protects our nation’s critical infrastructure, of which airports and airlines are an important part,” said United States Attorney Eileen M. Decker. “Air travelers should not have to worry about drug smugglers attempting to use planes as vehicles to commit crimes.”
The complaint charges White with possession with the intent to distribute a controlled substance. If she were to be convicted of that charge, she would face a statutory maximum sentence of 20 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting this investigation. The Task Force is charged with providing a coordinated law enforcement effort to target criminal enterprises that use the aviation system to transport large amounts of illicit drugs and drug proceeds throughout the United States.
In addition to the Drug Enforcement Administration, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The case against White is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Cherry Creek Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on February 13, 2017, by U.S. District Judge Roberto A. Lange.
Dewey Marrowbone, age 48, was sentenced to 15 months in custody, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Marrowbone was indicted by a federal grand jury on October 12, 2016. He pled guilty on December 12, 2016.
Marrowbone had previously been convicted of a sex offense in federal court which requires him to register as a sex offender for the rest of his life. He was previously convicted for failing to register as a sex offender. Marrowbone was released from custody in Florence, Colorado, on August 10, 2016. He was to report to the Community Alternatives of the Black Hills the following day. He did not do so. He was on absconder status until August 25, 2016. The conviction stems from the fact that Marrowbone failed to register as a sex offender, as required by federal law, between August 13, 2016, and August 25, 2016.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller prosecuted the case.
Marrowbone was immediately turned over to the custody of the U.S. Marshals Service.
California Meth Distributor Sentenced to 10 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – David John Russell, 38, of Fallbrook, California, was sentenced today to 10 years in prison for distribution of 50 grams or more of methamphetamine.
Russell pleaded guilty on Nov. 4, 2016. According to court documents, a methamphetamine distributor operating in the Washington, D.C. metropolitan area traveled to California to obtain large quantities of methamphetamine. Russell met with this methamphetamine distributor and agreed to provide the distributor with methamphetamine. Then, on two separate occasions, Russell used the U.S. Postal Service to send approximately one pound of methamphetamine. Law enforcement successfully seized both packages.
The case was investigated by the DEA and U.S. Postal Service as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Ring of Ice. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS), made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-202.
California Man Sentenced to 7 Years in Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Metin Metlu Sado, age 48, of Encinitas, California, was sentenced today to 87 months in federal prison followed by three years of supervised release and ordered to pay a $9,900.00 fine on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on March 11, 2016, the Kansas City Interdiction Task Force along with the Drug Enforcement Administration in Kansas City, discovered approximately 8 ½ pounds of methamphetamine that was destined for Rogers, Arkansas at the Greyhound Bus Lines in Kansas City, Missouri. The investigation revealed that the methamphetamine belonged to Bryanna Almanza, a co-defendant in this case. On the same day, officers and agents maintained surveillance on Almanza as she was picked up by Metin Sado and driven to a hotel in Rogers. When the two arrived in the hotel parking lot, they were arrested. Upon a search of Sado’s vehicle, officers found the methamphetamine in the back seat. The suspected substance was sent to the DEA South Central Lab where it was determined to contain 2,966.7 grams of actual methamphetamine.
Both Sado and Almanza were named in a federal indictment in March, 2016. Sado pleaded guilty in October, 2016. Almanza pleaded guilty in June, 2016. She was sentenced in November, 2016 to 38 months in federal prison followed by three years of supervised release.
“Methamphetamine brings turmoil into the lives of those who are addicted to or live around it,” stated Matthew Barden, Assistant Special Agent in Charge of DEA’s Little Rock District Office. “The sentence imposed in this case should be a warning to anyone thinking of polluting our communities with this addictive substance. DEA, along with our law enforcement partners are committed to investigating the smuggling and distribution of methamphetamine and other illegal and dangerous narcotics.”
This case was investigated by the Drug Enforcement Administration of Fayetteville and Kansas City, Missouri, Kansas City Police Department, Benton County Sheriff’s Office, Fayetteville Police Department and Rogers Police Department. Assistant United States Attorney Brice White prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Buffalo Man Arrested on Child Pornography ChargesRead 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 Michael Secchiaroli, 31, of Buffalo, NY, was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on December 28, 2015, an undercover law enforcement officer discovered 14 image files of child pornography online that depicted naked images of pre-pubescent girls. The files were traced to an internet address connected to the defendant.
On March 29, 2016, officers executed a search warrant at Secchiaroli’s residence and seized multiple electronic devices including two laptops and an external hard drive. A forensic examination uncovered 40 image files containing child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on electronic monitoring.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction on the part 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.
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Brunswick couple charged with conspiracy to obstruct justice, tax violationsRead the Press Release
A nine-count indictment was filed charging a Brunswick couple with failing to make payments to support the pension and benefits fund of its employees and then obstructing the subsequent investigation, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Eric Dentz and Rebecca Dentz, both 39, are charged with conspiracy to obstruct justice, tampering with evidence, making false statements to federal agents, and failure to file taxes.
The Dentzs are former owners of Dentz Painting Incorporated (DPI), a company engaged in a collective bargaining agreement with the International Union of Painters and Allied Trades. Through that agreement, DPI was obligated to hire union laborers and to pay over contributions to the union’s pension and benefits funds for the benefit of their employees, according to the indictment.
Audits conducted by the union found that DPI failed to pay over $148,000 in contributions to the union’s funds. Eric and Rebecca Dentz, and their company DPI, agreed in 2010 to make the delinquent contributions to the union’s funds. However, instead of honoring their commitment, they discontinued working through DPI and started a new company, Global Contracting Service (Global), according to the indictment.
Despite this name change, Eric and Rebecca Dentz were still bound by the terms of the CBA. As a result of their failure to make required payments to the union’s funds, agents and investigators with the Department of Labor, Office of Inspector General and the Employee Benefits Security Administration, began an investigation into Eric and Rebecca Dentz, DPI and Global. This investigation was later joined by the Internal Revenue Service, Criminal Investigation Division.
Eric and Rebecca Dentz repeatedly obstructed the investigation. In particular, after agents attempted to serve subpoenas and obtain documents relevant to the investigation, Eric Dentz threatened them with physical violence. Additionally, Rebecca Dentz repeatedly lied to agents about her and Eric Dentz’s involvement with Global and the location of records responsive to the subpoena, according to the indictment.
During proceedings held before United States District Chief Judge Solomon Oliver, Jr., Eric and Rebecca Dentz continued to obstruct justice by lying about the status and condition of the records. Specifically, the Dentzs lied by stating that the records sought by the grand jury were destroyed in a flood and later supplied agents and the court with a fake cleaning invoice in an attempt to support their false claims. Further investigation revealed that the invoice had been fabricated at Eric and Rebecca Dentz’s request. The Dentzs also obstructed and delayed the investigation by falsely stating that third parties possessed the records sought by the grand jury when those individuals in fact had no such records, according to the indictment.
The indictment further alleges that Eric and Rebecca Dentz also repeatedly failed to file income tax returns with the IRS over several years.
“These defendants tried time and again to dodge their obligations to their employees,” Rendon said. “When confronted with this, they didn’t own up to their failures, but instead tried to obstruct the investigation.”
“As tax filing season is upon us, those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't," said Troy Stemen, Acting Special Agent in Charge IRS-Criminal Investigation, Cincinnati Field Office.
If convicted, the defendants’ sentences will be determined by the Court after review of the factors unique to this case, including the defendants’ prior criminal records, their roles in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Department of Labor, Employee Benefits Security Administration, the Department of Labor, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove the defendant guilty beyond a reasonable doubt.
Brevard County Resident Sentenced to Thirty Years in Prison for Production of Child PornographyRead the Press Release
Orlando, Florida– U.S. District Judge Carlos E. Mendoza has sentenced Jerry Hall (49, Palm Bay) to 30 years in federal prison for producing child pornography. The Court also ordered him to forfeit electronic equipment that had been used during the offense.
Hall pleaded guilty on December 1, 2016.
According to court documents, in June 2015, the Florida Department of Law Enforcement (FDLE) began investigating Hall for downloading child pornography using file sharing software. During the investigation, FDLE came into possession of a memory card that contained images of sexually explicit conduct of a minor taken by Hall on his cellphone in June 2014. At the time the images were taken, the minor was under the age of 10.
FDLE also recovered a custom built computer belonging to Hall and a laptop previously used by him. A forensic examination of those computers revealed numerous images and video files depicting child pornography, some of which contained young children.
“Child pornography is an atrocious crime because each movie or photograph represents a child who has been sexually abused,” said FDLE Special Agent in Charge Danny Banks. “FDLE will continue to aggressively investigate anyone who preys on our children.”
“This child predator’s crimes will never be erased in the minds of the children that he victimized,” said Susan L. McCormick, special agent in charge of HSI Tampa. “This long prison sentence serves as a warning to child predators that these crimes will be discovered, will be prosecuted and will be punished severely.”
This case was investigated by U.S. Department of Homeland Security, Homeland Security Investigations and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bookkeeper Pleads Guilty to 13 Counts of Wire Fraud in Scheme to Defraud Two Maui Business OwnersRead the Press Release
HONOLULU – A professional bookkeeper has plead guilty to 13 counts of wire fraud in a scheme to defraud two local Maui business owners. Felicidad Rivera, age 51, of Maui, plead guilty in the United States District Court for the District of Hawaii to wire fraud in connection with a scheme to defraud two Maui business operators of more than $373,682 in funds from their business banking accounts. Rivera faces a maximum penalty of five years imprisonment and a fine of $250,000 for each of the 13 counts to which she plead guilty when she is sentenced on June 5, 2017.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to court documents and information presented in court, Rivera became the bookkeeper for two Maui businesses operated by a mother and her son. As their bookkeeper, Rivera had access to the bank accounts of each business. After earning the confidence of the business owners, Rivera would falsely represent to them that business funds were required to pay legitimate business expenses. In truth, the funds were not required for business expenses but were intended by Rivera to be deposited into her personal checking account and fraudulently converted to her own use. From December 2008 through August 2015, Rivera fraudulently, and without authorization, wrote 193 checks to herself totaling approximately $334,450. Rivera also caused the victim’s business accounts to pay her personal monthly credit card debts. Information presented in Court showed that over the course of 87 monthly transactions Rivera stole another $75,488 from the victim’s bank accounts without their knowledge or consent. To conceal her activity Rivera falsified the accounting books of each business and presented fraudulently altered business financial records to the tax accountant preparing the taxes for the victims.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
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Berea Pharmacist Found Guilty of Illegally Dispensing Hundreds of Thousands of Prescription Pills and Thousands of Boxes of Pseudoephedrine and Money LaunderingRead the Press Release
LEXINGTON, Ky. – A Berea pharmacist, Lonnie Hubbard, age 41, has been convicted by a federal jury of 71 counts, including fifty-six drug counts, involving the illegal dispensing of controlled substances without a legitimate medical purpose and dispensing pseudoephedrine knowing it would be used to manufacture methamphetamine; maintaining a drug involved premises; twelve counts of money laundering; and two conspiracy charges.
The jury returned the guilty verdict after approximately three hours of deliberation, following eight days of trial.
“This case sends a strong message to medical professionals who dispense controlled substances: failure to exercise reasonable professional judgment, by consistently ignoring suspicious behavior, will not be tolerated,” said Acting U.S. Attorney Carlton S. Shier, IV. “Mr. Hubbard failed to exercise his professional responsibility and the result was an enormous amount of prescription pain pills and methamphetamine precursors being made available for illicit purposes. The great work of our law enforcement partners in this case is critical to our fight against the drug epidemic.”
According to evidence presented at trial, from 2010 until 2015, Hubbard, who owned RX Discount Pharmacy in Berea, sold prescription pain pills, without a legitimate medical purpose, and sold pseudoephedrine, knowing or having reason to believe that it was being used to manufacture methamphetamine. Many of the people Hubbard sold to were addicts and drug traffickers from Madison, Rockcastle, Laurel, Clay and other counties in central and eastern Kentucky.
The evidence further established that many of Hubbard’s customers visited pain clinics in Florida, Ohio, Tennessee, and Georgia, to obtain illegitimate prescriptions from irreputable clinics. Hubbard would charge $600 to $1,000 to fill a cocktail of prescriptions, which included excessive amounts of oxycodone. According to trial testimony Hubbard also sold multiple boxes of pseudoephedrine at a time, at excessive prices, to drug addicts and traffickers. From 2013 to 2015, Hubbard’s pharmacy was the number one independent pharmacy retailer of Pseudoephedrine in Kentucky.
Those who obtained drugs at Hubbard’s pharmacy testified that RX Discount was one of the only places in Kentucky that would fill their out of state prescriptions for pain medication.
More than twenty doctors from Florida, Georgia, and Tennessee, who wrote the illegal prescriptions related to this case, have either surrendered their medical license, been indicted, or are currently under investigation.
The evidence also revealed that Hubbard made approximately $2.2 million in cash from the illegal drug sales and used that money to buy three residences, a boat, and several luxury vehicles.
Hubbard’s wife, Meggan, was sentenced earlier this month for her involvement in purchases of property that came from the unlawful sales of the prescription drugs and pseudoephedrine; she received a sentence of five months’ imprisonment, to be followed by five months’ home detention. Three other co-defendants have pleaded guilty and been sentenced.
Hubbard is scheduled to be sentenced on June 6th. He faces a maximum of twenty years on the conspiracy offenses; twenty years on the charges of unlawful distribution of pseudoephedrine; twenty years on the unlawful distribution of controlled substances counts, except Count 15; and 10 years on the individual money laundering counts.
Acting U.S. Attorney Shier; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration; and Tracey D. Montaño, Special Agent in Charge, IRS, Criminal Investigation Division jointly announced the conviction.
The investigation was conducted by the DEA, IRS, USDA, Kentucky Board of Pharmacy, Inspector General for the Cabinet of Health and Family Services, Berea Police Department, Mt. Vernon Police Department, Madison County Sheriff’s Office, and the Appalachian HIDTA. The case was prosecuted by Assistant U.S. Attorneys Ron Walker, Katherine Crytzer, and Lauren Bradley.
Belmont County, Ohio man pleads guilty to oxycodone distributionRead the Press Release
WHEELING, WEST VIRGINIA – Brent M. Gorshe, 27, of Martins Ferry, Ohio, was convicted of distributing oxycodone, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Gorshe pled guilty to one count of “Conspiracy to distribute and to possess with the intent to distribute oxycodone.” The crime took place in Ohio County and elsewhere from 2013 to 2016. He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Baltimore Man Exiled to 7 Years in Prison for a Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Ronald Francis Wosk, Jr., age 30, of Baltimore, Maryland, today to seven years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Anne Arundel County Police Chief Tim Altomare.
According to his plea agreement, from at least March 2014 through July 2014, Wosk and other members of the conspiracy obtained heroin and crack cocaine from Alex Valerio and other co-conspirators in Maryland and re-distributed them to others. During the conspiracy, investigators intercepted phone calls between Wosk and Valerio discussing purchases of heroin, and saw Wosk and Valerio meet multiple times.
Ten other co-conspirators, including Alex Raymond Valerio, age 36, of Glen Burnie, Maryland, pleaded guilty to their roles in the conspiracy and were sentenced to between time served and 92 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kenneth S. Clark, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Atlanta Store Owner Found Guilty of Operating Black Market for Fraudulent and Stolen PhonesRead the Press Release
ATLANTA - Tony Archie has been found guilty after a seven-day trial of wire fraud conspiracy, wire fraud, mail fraud and money laundering. Archie, while the manager of ACE Wholesale and later the owner of Westside Wireless, bought tens of thousands of brand new cell phones from sellers who obtained them through fraudulent means.
“Archie created and maintained a black market for illegal cell phone sales in Atlanta,” said U.S. Attorney John Horn. “Despite previous warnings, he pursued the easy money that came from trafficking in fraudulent cell phones. The jury, however, saw this activity for what it was, and returned a guilty verdict.”
“The Office of the Attorney General applauds the jury’s guilty verdict against Tony Archie,” said Attorney General Chris Carr. “I am especially proud of the work of our Consumer Protection Unit’s Criminal Investigation Division for initiating and investigating this case. Our former Criminal Investigator Richard Schneider and Criminal Analyst Tara Tripp worked diligently to develop crucial evidence and provide vital support throughout. I congratulate our partners in the U.S. Attorney’s Office of the Northern District of Georgia for a successful prosecution, and we look forward to continuing to work with them in eliminating truly bad actors from conducting illegitimate business in Georgia.”
“This case illustrates not just the significance of an aggressive and tenacious approach to combat these types of fraud, but also illustrates the importance of partnerships with federal and state law enforcement agencies,” said Kenneth Cronin, Special Agent in Charge of the U.S. Secret Service, Atlanta Field Office. “We will continue to work closely with prosecutors to ensure offenders like Archie are put behind bars.”
“Pretending to operate legitimate businesses will not thwart law enforcement’s efforts in determining the true nature of the businesses and the crimes they promote,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “The verdict in the trial of Tony Archie clearly illustrates that individuals who engage in these types of illegal activities will not go undetected and will be held accountable for their actions.”
According to U.S. Attorney Horn, the charges and other information presented in court: Archie became the manager of ACE Wholesale in 2011, shortly after it opened in the Atlanta area. The store’s main function was to buy brand new cell phones that would later be shipped and sold overseas. ACE’s sellers obtained the new cell phones at below-market cost by entering or causing others to enter into cell phone carrier contracts they had no intention of honoring; hijacking or creating corporate identities to establish fraudulent business accounts with cell phone carriers; and by filing fraudulent cell phone insurance claims to get brand new replacement phones.
In less than two years, ACE paid out over $63 million, with over $20 million going to just 52 sellers who repeatedly brought in new phones to the store. In August 2012, ACE shut down after law enforcement executed a search warrant at the store. Within two months, Archie opened Westside Wireless where he continued to buy fraudulently obtained, brand new cell phones. At Westside Wireless, Archie paid out over $8 million more for new cell phones.
Tony Archie, 52, of Atlanta, Georgia, was charged with wire fraud conspiracy, six counts of wire fraud, two counts of mail fraud, and five counts of money laundering. A jury found Archie guilty on all counts.
Sentencing is scheduled for May 16, 2017, at 2:00 p.m. before United States District Judge Mark H. Cohen.
This case is being investigated by the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, and the Georgia Attorney General’s Office - Consumer Protection Unit.
Assistant United States Attorney Samir Kaushal and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.
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.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Jesse James Davis, 40, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Davis will be sentenced within the range of ten to 15 years in prison followed by a term of supervised release to be determined by the court.
Davis and his co-defendant, Joshua Bright, 32, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Davis and Bright were indicted on June 30, 2016. The indictment charged both men with conspiracy and distributing methamphetamine on June 6, 2016. It also charged Bright alone with distributing methamphetamine on June 14, 2016. According to the indictment, the offenses took place in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Davis and Bright to forfeit $4,600 to the United States.
During today’s proceedings, Davis pled guilty to Count 2 of the indictment charging him with distributing methamphetamine. In entering the guilty plea, Davis admitted that on June 6, 2016, he sold approximately 115 grams of methamphetamine to an undercover law enforcement agent. Davis remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 28 of the 104 defendants have entered guilty pleas and two have been sentenced. The remaining defendants including Bright, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
Thursday 16 February 2017
York Man Sentenced to 141 Months’ Imprisonment for Armed Bank RobberyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Derek Bowman, age 33, of York, Pennsylvania, was sentenced on February 15, 2017, to 141 months’ imprisonment by United States District Court Judge William J. Caldwell for the armed robbery of PNC bank in York, Pennsylvania, on January 9, 2016.
According to United States Attorney Bruce D. Brandler, Bowman entered the PNC bank branch located on East Market Street, in York, with a sawed-off shotgun. He pointed the shotgun at a bank employee and demanded money from her drawer. He stole approximately $3,000 from the bank before fleeing the scene. Bowman was arrested by Pennsylvania State Police the next day and was found to be in possession of money and heroin. The shotgun was later recovered by Springettsbury Township Police.
This matter was investigated by the Springettsbury Township Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Chelsea Schinnour prosecuted 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.
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Woman Who Committed Wire Fraud Pleads Guilty in Federal CourtRead the Press Release
Abingdon, VIRGINIA – A Virginia woman, who conspired with others to commit wire fraud, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, to a federal Information, Acting United States Attorney Rick A. Mountcastle announced.
Deborah Diana Lawson, 60, of Raven, Va., waived her right to be indicted and pled guilty today in District Court to a one count Information charging her with conspiracy to commit wire fraud. United States District Judge James P. Jones scheduled sentencing for May 11, 2017 at 2:30 p.m.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer, in or around March 2015 Lawson's co-conspirator caused a fraudulent tax return refund to be sent via wire to Lawson’s bank account in Russell County, Virginia. Lawson caused proceeds of the tax return refund to be sent via wire transfer from the Western District of Virginia to an account in Buffalo, New York.
The investigation of the case was conducted by the United States Secret Service and the Russell County Sheriff’s Office. Assistant United States Attorney Assistant United Attorney Randy Ramseyer prosecuted the case for the United States.
West Richland Man Sentenced to 78 Months Imprisonment for Travel for Sex with MinorRead the Press Release
Spokane–Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Dale H. Weber, age 53, of West Richland, Washington, was sentenced today for one count of Travel in Interstate Commerce for the Purpose of Engaging in a Sexual Act With a Minor. United States District Court Judge Salvador Mendoza, Jr. sentenced Dale H. Weber to a 78-month term of imprisonment, to be followed by 10 years of court supervision after he is released from federal prison. Weber will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in the fall of 2014, Weber posted a personals ad, “seeking naughty young girl.” An undercover task force officer with Homeland Security Investigations working with Southeast Regional Internet Crimes Against Children, saw the ad and responded, posing as a 13-year-old girl. During a series of online communications, Weber graphically described different sex acts that he would like to perform on the child. Eventually, Weber discussed meeting the child, at a specific location, for sexual contact.
Weber drove to the meet location, and was observed as he drove through the location at a slow rate of speed, in a vehicle registered to himself, and scanning the area. Weber later had a conversation with the purported 13-year-old wherein the child stated her mother had picked her up when she attempted to meet him.
Weber discussed meeting the child in Oregon, approximately a week later for sex. When the date came, again, Defendant arrived at the meet location. When he did not find the child he sent a series of angry text messages about wasting time and gas. The child explained she had trouble keeping in contact with Weber as her parents do not put many minutes on her phone. The two discussed Weber buying her a new phone. A third meeting was then set. When Weber arrived at the meet location, he was arrested. A new prepaid phone is found in his car. The receipt in his pocket indicated it was a new purchase.
On April 11, 2016, Weber pled guilty to Travel in Interstate Commerce for the Purpose of Engaging in a Sexual Act with a Minor. At sentencing, today Weber stated, “I fully take responsibility for my actions.” Judge Mendoza told Weber “this is an extremely serious offense,” and went on to tell Weber his behavior, specifically, was “extremely concerning,” and made more so by his repeated attempts to contact a person he believed to be a thirteen-year-old child. Judge Mendoza then announced sentence to 78 months imprisonment and 10 years supervised release.
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." This investigation was conducted by the Homeland Security Investigations and the Southeast Regional ICAC. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
Waynesboro Man Pleads Guilty to Having a Stolen Gun on Blue Ridge ParkwayRead the Press Release
Charlottesville, VIRGINIA – A Waynesboro man pled guilty yesterday in the United States District Court for the Western District of Virginia in Charlottesville to a federal gun charge, Acting United States Attorney Rick A. Mountcastle announced.
Miguel Angel Fernandez, 19, of Waynesboro, Va., pled guilty yesterday to one count of knowingly possessing a stolen firearm. A sentencing date has been set for May 8, 2017. At sentencing, Fernandez faces up to 10 years in prison and/or a fine of up to $250,000.
During the hearing, the United States stated that its evidence included the following: on Sunday, September 11, 2016, a United States Park Ranger approached Fernandez and several others near a vehicle that was parked along the Blue Ridge Parkway near milepost 41 in Rockbridge County to inquire about litter outside of the vehicle. As the Ranger approached the vehicle to see if the occupants needed assistance, he told the occupants he needed to speak to them about the trash on the ground. It was at this point the Ranger smelled the odor of alcohol emanating from the vehicle.
While talking to passenger Fernandez, who appeared to be intoxicated, the Ranger noticed a bulge in Fernandez’s waistband and recovered a Springfield Armory XD .40 caliber semiautomatic pistol. The gun had been reported stolen within the prior two days from the glovebox of a car. In a post-Miranda statement, Fernandez admitted that he knew the gun was stolen but he did not know who stole it and was just holding the gun for a friend.
The investigation of the case was conducted by the National Park Service. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
Waterbury Man Sentenced to More Than 4 Years in Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RONALD WEAVER, 38, of Waterbury, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 52 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on March 11, 2016, Newtown Police and emergency medical personnel responded to a residence in Newtown on the report of a 30-year-old female who was in cardiac arrest. The victim was transported to the hospital where she subsequently died. Medical records and witness interviews revealed that the victim had a history of substance abuse, and the family of the victim turned over to law enforcement several wax folds of heroin, several empty folds and other drug paraphernalia.
The investigation revealed that the victim purchased heroin and other drugs from at least two sources in the days leading up to her death. One of the sources worked as a “runner” who conducted drug transactions for WEAVER.
Between June and August 2016, law enforcement made four controlled purchases of heroin from WEAVER.
WEAVER was arrested on August 9, 2016. On October 5, 2016, he pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
As part of his sentence, WEAVER was ordered to forfeit a 2006 Infiniti M35, a 2007 Lexus ES350, and $1,956 in cash that was seized from him at the time of his arrest.
This matter was investigated by the DEA’s New Haven Tactical Diversion Squad and the Newtown, Waterbury and Torrington Police Departments. The Task Force includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Washington Businessman Pleads Guilty to Filing Fraudulent Federal Tax ReturnRead the Press Release
A Chelan Falls, Washington man pleaded guilty yesterday in the U.S. District Court in Yakima, Washington to filing a fraudulent 2011 federal tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2009 through 2012, Jose L. Echeverria, 46, owned and operated a produce sales business. Echeverria filed fraudulent individual income tax returns for each of these years and underreported his income by a total of approximately $564,292. Echeverria admitted that he caused a tax loss of approximately $183,191.
Sentencing is scheduled for May 11. Echeverria faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lisa L. Bellamy and Gregory Bernstein of the Tax Division who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Washington for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States files consent decree of permanent injunction against a Louisiana drug and dietary supplement manufacturer to stop distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplementsRead the Press Release
WASHINGTON – The Department of Justice filed a proposed consent decree in the U.S. District Court for the Western District of Louisiana that permanently enjoins Pick and Pay, Inc./ Cili Minerals LLC (Cili Minerals), and its owner and CEO, Anton S. Botha, to stop the distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplements, the Justice Department announced today.
The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act (FDCA) by manufacturing, promoting, and distributing numerous dietary supplements that the defendants had been marketing as drugs that were intended to treat, cure, or prevent a variety of diseases such as cancer, cardiovascular disease, multiple sclerosis, and other serious conditions. These marketing and sale efforts all involved unapproved drugs, in violation of the FDCA because the products had never been submitted to the U.S. Food and Drug Administration (FDA) for approval, and had never been found to be safe and effective for the medicinal uses claimed by defendants. Some of the products at issue were named ADD-Ease, Bone Structure, CilZinCo, Calcium, Boron, Potassium, Cilver, Sulfur, and Germanium. The Department filed a complaint in the U.S. District Court for the Western District of Louisiana on February 16 at the request of the FDA.
The complaint further alleges the defendants violated the FDCA by failing to manufacture products in accordance with FDA’s current good manufacturing practice (CGMP) regulations for dietary supplements, which require manufacturers to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. According to the complaint, several FDA inspections between 2012 and 2016 allegedly revealed that the defendants failed to ensure the identity, purity, strength and composition of their finished products.
“Dietary supplement manufacturers endanger public health when they make unsupported claims about unapproved drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to protect the public from unapproved, adulterated and misbranded products, and to ensure that dietary supplement manufacturers furnish accurate information to consumers about the purity and contents of their products.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. Once entered by the court, the consent decree requires that the defendants cease all production and distribution of misbranded and unapproved new drugs and adulterated and misbranded dietary supplements, and recall and destroy their drugs and dietary supplements. The proposed consent decree further requires that if the defendants wish to resume manufacturing drugs or dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify FDA of the measures taken, and obtain written approval from the FDA that they appear to be in compliance with the remedial measures set forth in the consent decree and the FDCA. The proposed consent decree is currently awaiting judicial approval.
“Consumers deserve to know that the dietary supplements they ingest are safe and comply with the law,” said U.S. Attorney Stephanie A. Finley for the Western District of Louisiana. “When manufacturers and distributors market and distribute misbranded and adulterated products, the Justice Department will take affirmative steps to protect consumers. I want to thank the attorneys and investigators who worked so hard to keep our citizens safe.”
This matter was handled by Trial Attorney Christopher O’Connell of the Civil Division’s Consumer Protection Branch, with the assistance by Assistant U.S. Attorney Karen King of the U.S. Attorney’s Office for the Western District of Louisiana and Ariel Seeley of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Louisiana, visit its website at www.justice.gov/usao-wdla.
United States Files Consent Decree of Permanent Injunction Against a Louisiana Drug and Dietary Supplement Manufacturer to Stop Distribution of Misbranded and Unapproved New Drugs and Misbranded and Adulterated Dietary SupplementsRead the Press Release
The Department of Justice filed a proposed consent decree in the U.S. District Court for the Western District of Louisiana that permanently enjoins Pick and Pay, Inc./ Cili Minerals LLC (Cili Minerals), and its owner and CEO, Anton S. Botha, to stop the distribution of misbranded and unapproved new drugs and misbranded and adulterated dietary supplements, the Justice Department announced today.
The complaint alleged that the defendants violated the federal Food, Drug and Cosmetic Act (FDCA) by manufacturing, promoting, and distributing numerous dietary supplements that the defendants had been marketing as drugs that were intended to treat, cure, or prevent a variety of diseases such as cancer, cardiovascular disease, multiple sclerosis, and other serious conditions. These marketing and sale efforts all involved unapproved drugs, in violation of the FDCA because the products had never been submitted to the U.S. Food and Drug Administration (FDA) for approval, and had never been found to be safe and effective for the medicinal uses claimed by defendants. Some of the products at issue were named ADD-Ease, Bone Structure, CilZinCo, Calcium, Boron, Potassium, Cilver, Sulfur, and Germanium. The Department filed a complaint in the U.S. District Court for the Western District of Louisiana on Feb. 16, at the request of the FDA.
The complaint further alleges the defendants violated the FDCA by failing to manufacture products in accordance with FDA’s current good manufacturing practice (CGMP) regulations for dietary supplements, which require manufacturers to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. According to the complaint, several FDA inspections between 2012 and 2016 allegedly revealed that the defendants failed to ensure the identity, purity, strength and composition of their finished products.
“Dietary supplement manufacturers endanger public health when they make unsupported claims about unapproved drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to protect the public from unapproved, adulterated and misbranded products, and to ensure that dietary supplement manufacturers furnish accurate information to consumers about the purity and contents of their products.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. Once entered by the court, the consent decree requires that the defendants cease all production and distribution of misbranded and unapproved new drugs and adulterated and misbranded dietary supplements, and recall and destroy their drugs and dietary supplements. The proposed consent decree further requires that if the defendants wish to resume manufacturing drugs or dietary supplements in the future, they must implement the remedial measures set forth in the consent decree, notify FDA of the measures taken, and obtain written approval from the FDA that they appear to be in compliance with the remedial measures set forth in the consent decree and the FDCA. The proposed consent decree is currently awaiting judicial approval.
“Consumers deserve to know that the dietary supplements they ingest are safe and comply with the law,” said U.S. Attorney Stephanie A. Finley for the Western District of Louisiana. “When manufacturers and distributors market and distribute misbranded and adulterated products, the Justice Department will take affirmative steps to protect consumers. I want to thank the attorneys and investigators who worked so hard to keep our citizens safe.”
This matter was handled by Trial Attorney Christopher O’Connell of the Civil Division’s Consumer Protection Branch, with the assistance by Assistant U.S. Attorney Karen King of the U.S. Attorney’s Office for the Western District of Louisiana and Ariel Seeley of the U.S. Department of Health and Human Services’ Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of Louisiana, visit its website at https://www.justice.gov/usao-wdla.
Ukrainian Citizen Sentenced to 41 Months in Prison for Using Army of 13,000 Infected Computers to Loot Log-In Credentials, Payment Card DataRead the Press Release
NEWARK, N.J. – The administrator of two criminal online hacking forums was sentenced today to 41 months in prison for stealing log-in and payment card data as part of an international hacking conspiracy, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 31, most recently of Naples, Italy, previously pleaded guilty before the U.S. District Judge Esther Salas to Count One and Count Three of an indictment charging him with wire fraud conspiracy and aggravated identity theft. Judge Salas imposed the sentence today in Newark federal court.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
Vovnenko admitted that, in order to steal this data, he operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. Vovnenko admitted using malware known as “Zeus” to steal banking information and record the keystrokes of the users of infected computers.
According to the indictment, Vovnenko was a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members.
The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
In addition to the prison term, Judge Salas sentenced Vovnenko to three years of supervised release and ordered him to pay restitution of $83,368.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the ongoing investigation leading to today’s sentencing.
He also thanked the Department of Justice’s Office of International Affairs in Washington and its attaché in Rome; The U.S. Embassy to Italy and the Republic of San Marino; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Counsel: Timothy Anderson Esq., Red Bank, New Jersey
U.S. Navy Commander Charged as Part of Expanding Navy Bribery ScandalRead the Press Release
A current U.S. Navy Commander was charged in a complaint unsealed today with accepting luxury travel, elaborate dinners and services of prostitutes from foreign defense contractor Leonard Francis in exchange for classified and internal U.S. Navy information.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana Robinson of the Southern District of California, Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) made the announcement.
Mario Herrera, 48, of Helotes, Texas, was charged with one count of conspiracy to commit bribery in connection with interactions with Leonard Francis, the former CEO of Glenn Defense Marine Asia (GDMA), a defense contracting firm based in Singapore. Herrera was arrested in San Antonio, Texas, this morning and is scheduled to make his initial appearance in federal court in the Western District of Texas. The United States will seek removal of Herrera to San Diego to face charges.
According to the complaint, Herrera participated in a bribery scheme with Francis in which he accepted luxury travel and entertainment expenses and the services of prostitutes in exchange for helping to steer lucrative U.S. Navy contracts to Francis and GDMA. Herrera provided Francis with internal, proprietary U.S. Navy information and intervened on GDMA’s behalf in contract disputes. According the complaint, Herrera directed ships to take alternative routes that benefitted GDMA on two separate occasions, costing the U.S. Navy $3.6 million.
To date, a total of 17 individuals have been charged in connection with the scheme; of those, 13 have pleaded guilty, including: Admiral Robert Gilbeau, Captain Michael Brooks, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, former NCIS Special Agent John Beliveau and U.S. Petty Officer First Class Daniel Layug.
Brooks, Gilbeau and Sanchez await sentencing. In May 2016, Pitts was charged and his case is currently pending. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and to pay a $15,000 fine. On Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine. On March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine. On April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay $95,000 in restitution to the Navy and a $100,000 fine. On Oct. 14, 2016, Beliveau was sentenced to 12 years in prison and to pay $20 million in restitution. On Dec. 2, 2016, Simpkins was sentenced to 72 months in prison, to pay $450,000 in restitution, to forfeit $150,000 and pay a $50,000 fine.
A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.
DCIS, NCIS and the Defense Contract Audit Agency are investigating the case. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.Two Lockport Men Indicted on Fruad ChargesRead 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 an eight-count indictment charging Michael Rosier, 22, and Cody Kross-Rosier, 22, both of Lockport, NY, with bank fraud and conspiracy to commit bank fraud. The charges carry a maximum penalty of 30 years in jail and a $1,000,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the indictment, between January and March 2014, Rosier and Kross-Rosier conspired with others to execute a scheme to defraud seven federally insured financial institutions.
The scheme involved the use of existing bank accounts and the opening of new accounts in an effort to obtain or attempt to obtain money, services, and merchandise totaling approximately $123,000. The defendants floated checks between the accounts in an effort to prevent the financial institutions from discovering that the respective accounts contained insufficient funds to cover the checks deposited or written. On one occasion, in January 2014, Rosier and Kross-Rosier deposited a $100,000 check into an account Kross-Rosier had at Citizens Bank. The check was drawn on a closed account that Kross-Rosier had at Bank of America. Thereafter, Rosier, Kross-Rosier, and others attempted to obtain money and merchandise with the proceeds of the fraudulent check, including an attempted transfer of $5,000 to an E*TRADE account controlled by Rosier, and the attempted purchase of approximately $16,000 in merchandise from Men’s Wearhouse, in Amherst, NY.
The defendants will be arraigned on February 21, 2017, at 11:15 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy.
The indictment is the result of an investigation by the United States Secret Service, under the direction of Special Agent-in-Charge Lewis Robinson.
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.
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Thug Relations Gang Member Sentenced to 40 YearsRead the Press Release
NEWPORT NEWS, Va. – Maurice McLain, 33, of Newport News, was sentenced today to 40 years in prison for his role in a racketeering conspiracy involving the Thug Relations gang in Newport News.
McLain was found guilty by a jury on June 17, 2016, after a three-week jury trial. According to court documents, McLain was a member of the gang Thug Relations. Members and associates of Thug Relations were responsible for drug trafficking, numerous shootings, home invasions, and murders. Specifically, the jury found McLain guilty of the murder of 17-year-old Aaron Sumler at Aqueduct Apartments on July 5, 2007. McLain, who at the time of trial was serving a 15-year sentence for using a gun during narcotics trafficking, will ultimately serve 50 years in prison for his crimes.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick, Assistant U.S. Attorneys Brian Samuels and Lisa R. McKeel, and Special Assistant U.S. Attorney Yvonne Garcia prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14-cr-59.
Thai Man Sentenced to 55 Months in Prison for Conspiracy to Violate Arms Export Control Act and International Traffic in Arms RegulationsRead the Press Release
WASHINGTON – Pheerayuth Burden, 47, a Thai national who had been living in Torrance, California, was sentenced today to 55 months in prison for taking part in a conspiracy involving the purchase and shipment of hundreds of gun parts and accessories from the United States to Thailand without a license. His company, Wing-On LLC, also was sentenced to three years of probation and ordered to pay a $250,000 fine.
The sentencing was announced by U.S. Attorney Channing D. Phillips and Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
On Sept. 30, 2016, following a trial in the U.S. District Court for the District of Columbia, a jury found Burden and Wing-On LLC guilty of one count of conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations, one count of unlawful export of defense articles from the United States, and one count of conspiracy to commit money laundering. The Honorable Rosemary M. Collyer sentenced Burden and the company today. Following his prison term, Burden will be placed on three years of supervised release. He and the company also were ordered to pay a forfeiture money judgment in the amount of $105,112.
A co-defendant, Kitibordee Yindeear-Rom, 30, a native and citizen of Thailand, pled guilty to a conspiracy charge in November 2014. Yindeear-Rom was sentenced in March 2015 to a three-year prison term.
According to the government’s evidence, beginning at least in or about July 2010, Burden, Wing-On, LLC and Yindeear-Rom entered into an agreement to illegally ship United States origin goods, including defense articles - specifically gun parts - to Thailand. As part of their agreement, Yindeear-Rom purchased gun parts from United States manufacturers through on-line purchases, and directed the purchased items to be sent to Burden and Wing-On, which was based in Carson, Calif., to conceal the ultimate destination of the purchases.
Upon receipt of the gun parts, the items would be repackaged for shipment to Thailand. Extending through at least October 2013 as part of the conspiracy, Burden and Yindeear-Rom caused to be purchased and shipped hundreds of different gun parts from the United States to Thailand without a license. These gun parts included, for example, numerous firearm parts, including key components for AR-15 military-style assault rifles.
The jury found that Burden and his company, Wing-On, LLC, acted without a license and in knowing violation of federal export and money-laundering law.
“This defendant and his company exported numerous gun parts and accessories outside the United States, repeatedly breaking the law to make a profit,” said U.S. Attorney Phillips. “This prosecution demonstrates that there will be consequences for those who disregard export laws and threaten our national security.”
“The U.S. has export laws in place to ensure that firearms and sensitive technologies are properly monitored when they are shipped overseas,” said Special Agent in Charge Settles. “Kudos to the HSI special agents who disrupted this export scheme.”
In announcing the sentences, U.S. Attorney Phillips and Special Agent in Charge Settles commended the efforts of the Special Agents who investigated the case for U.S. Immigration and Customs Enforcement, Homeland Security Investigations. They also expressed appreciation for the assistance provided by the State Department’s Directorate of Defense Trade Controls, U.S. Customs and Border Protection, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher B. Brown, Zia Faruqui, and Michael Friedman; Paralegal Specialists Elana Buruncenco and Jorge Casillas; Victim/Witness Advocates Yvonne Bryant and Tonya Jones, and Litigation Technology Specialists Anisha Bhatia and Josh Ellen. Finally, they commended the work of Assistant U.S. Attorneys Tejpal Chawla and Opher Shweiki, who prosecuted the case.
Tax Preparers and Recruiter Admit Filing False Returns in Elaborate Tax Return ScamRead the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 16, 2017
SAN DIEGO – Two tax preparers and a recruiter working with those preparers pleaded guilty today in federal court, admitting to their involvement in a tax return scam that resulted in the filing of false returns, the use of stolen identities and the receipt of more than $880,000 in bogus tax refunds.
Rahim Ali Cummings and Ebrahim Ashamu were local tax preparers in El Cajon, California. Ashamu operated his tax preparation business as Vista Tax Services on El Cajon Boulevard. Rashad Abdul-Rahim worked with Cummings and Ashamu by recruiting customers and obtaining stolen identities to use in their fraudulent scheme. Cummings and Abdul-Rahim pleaded guilty to conspiracy and Ashamu pleaded guilty to filing false claims and aggravated identity theft before U.S. Magistrate Judge Nita L. Stormes.
According to the plea agreements, Cummings and Ashamu prepared and filed the false tax returns with the Internal Revenue Service between September 2011 and September 2012. Abdul-Rahim solicited and obtained the personal identifying information from the victims using false pretenses, such as informing the victims they could obtain “free” government money from alleged grant and senior programs. He concealed his intention to use the information to file false tax returns. Abdul-Rahim provided Cummings and Ashamu with the personal information of the victims in order for Cummings and Ashamu to prepare and file the false tax returns. The IRS uncovered the scheme because a majority of the refunds were mailed to addresses controlled by Cummings, Ashamu, and Abdul-Rahim.
The plea agreement for each defendant sets forth the amount of refunds directly deposited into bank accounts under their control. In particular, Cummings received approximately $470,042 in fraudulent refunds directly deposited into bank accounts he controlled. Ashamu received approximately $367,631. Abdul-Rahim received approximately $44,937 in fraudulent refunds and additional cash payments from Cummings and Ashamu for providing the victims’ information. As a result of their crimes, Cummings, Ashamu, and Abdul-Rahim caused approximately $882,610 in losses to the IRS. Each defendant has agreed to make full restitution to the IRS for the total amount of false refunds they each received.
Furthermore, as part of their plea agreements, Cummings, Ashamu, and Abdul-Rahim agreed to be permanently enjoined from preparing or filing federal income tax returns for anyone other than themselves. A civil complaint will be filed against them, and a permanent injunction will be entered to prevent Cummings, Ashamu, and Abdul-Rahim from acting as a tax preparer in the future.
With a new tax return filing season upon us, the public is reminded to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
Cummings, Ashamu, and Abdul-Rahim are scheduled to be sentenced on May 1, 2017 at 9 a.m. before U.S. District Judge Roger T. Benitez.
DEFENDANTS Criminal Case No. 16CR0768-BEN
Rahim Ali Cummings Age: 47 Detroit, Michigan
Ebrahim Ashamu Age: 58 El Cajon, California
Rashad Abdul-Rahim Age: Age: 46 El Cajon, California
CHARGES THAT DEFENDANTS CUMMINGS AND ABDUL-RAHIM PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to Commit Mail Fraud, File False Claims, Fraudulently Use a Social Security Number of Another, and Aggravated Identity Theft
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
CHARGES THAT DEFENDANT ASHAMU PLEADED GUILTY TO:
Count 33 – Title 18, United States Code, Section 287 B Filing False, Fictitious and Fraudulent Claims
Maximum penalties: 5 years in prison, $250,000 fine, 3 years of supervised release.
Count 56 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: Mandatory 2-year sentence, to be served consecutive to any other prison term, $250,000 fine, 3 years of supervised release.
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Tax Preparer Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, Miss. -- Carmecia Jordan, 33, of Jackson, pled guilty in U.S. District Court today to theft of government funds, announced U.S. Attorney Gregory K. Davis and IRS- Criminal Investigation Special Agent in Charge Jerome McDuffie.
Jordan was fifty percent owner of Hour Tax, LLC, a tax preparation business in Jackson. Beginning in 2013, Jordan submitted fraudulent tax returns and subsequently submitted fraudulent amended returns without the consent of her clients. Jordan then diverted the refunds from the amended tax returns in the form of U.S. Treasury checks to five different addresses under her control. Jordan later cashed these checks and spent the money without the knowledge of her clients. Over a three-year period, Jordan defrauded the government of over $245,000.
Jordan will be sentenced by Senior U.S. District Judge Henry T. Wingate on May 4, 2017, at 9:30 a.m. and faces a maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by IRS-Criminal Investigation and the U.S. Secret Service. It is being prosecuted by Assistant U.S. Attorney Mary Helen Wall.