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4 April 2017
Gresham Medical Practice Manager Sentenced to Prison for False Billing and Tax FraudRead the Press Release
PORTLAND, Ore. – On Tuesday, April 4, 2017, United States District Court Judge Robert E. Jones sentenced Anthony C. Neal to one year and one day in federal prison followed by three years of supervised release. Neal pleaded guilty in July 2016 to engaging in a seven-year health care fraud scheme and conspiring to defraud the Internal Revenue Service (IRS). Neal was also ordered to pay $1,702,567 in restitution to Medicare, Care Oregon and several private health insurance companies and $817,378 to the IRS.
Court documents show that the defendant and his deceased father, Dr. Dean Neal, operated 20/20 Eye Care, an ophthalmology practice in Gresham, Oregon. The defendant ran the practice’s day-to-day business operations, including its public and private health insurance billings. From 2007 through November 2013, the defendant and Dr. Neal routinely subjected many of their patients to medically unnecessary diagnostic tests and fraudulently billed insurance plans for these services. In addition, the defendant and his father fraudulently submitted bills for higher-cost tests when patients were actually receiving lower-cost tests. The two then fraudulently double-billed various insurance plans.
The defendant and Dr. Neal also defrauded the IRS of $817,378 in income taxes from 2009 through 2014 by engaging in a complicated scheme to conceal business revenue and personal income using a straw company. The defendant and his father transferred most of 20/20 Eye Care’s revenue to the straw company and used it to pay for nearly $3 million in personal expenses, willfully failing to report any of this revenue to the IRS. These personal expenses included the partial construction of a multi-million dollar home for the defendant and his wife. The defendant and his father’s failure to file tax returns for 20/20 Eye Care or their straw company resulted in their concealing of nearly $8 million in business revenue from the IRS.
"Health insurance fraud drives up the cost of medical care for honest, hardworking Americans and illegally enriches those who take advantage of a system designed to help people address their personal medical needs," said Billy J. Williams, United States Attorney for the District of Oregon. "This is why the United States Attorney’s Office, the FBI, and the Department of Health and Human Services Office of Inspector General make it a priority to investigate and prosecute these cases. Moreover, all business owners have a legal obligation to pay their fair share of taxes," continued U.S. Attorney Williams. "We will continue to partner with the IRS to identify and prosecute those who do not."
"This time of year, when most Americans are fulfilling their lawful obligation to timely file an accurate tax return, cases like Anthony Neal’s serve as a vivid reminder of the potential consequences of allowing greed to silence duty" said Darrell Walton, Special Agent in Charge of IRS Criminal Investigation. "IRS Special Agents stand at the ready to enforce the law and make sure there is a level playing field for everyone."
This case was investigated by the FBI, the Department of Health and Human Services Office of Inspector General, IRS Criminal Investigations and the Oregon Department of Justice Medicaid Fraud Unit, and prosecuted by Seth D. Uram and Donna Brecker Maddux, Assistant United States Attorneys for the District of Oregon.
Georgia Doctor Sentenced to Federal Prison in Pill Mill CaseRead the Press Release
BRUNSWICK, GA – Paul Spencer Ruble, 64, a doctor from Thomson, Georgia, was sentenced yesterday to serve 5 years in federal prison by Chief U.S. District Court Judge Lisa Godbey Wood. Ruble pleaded guilty to a charge of conspiracy to unlawfully dispense controlled substances and launder money on August 22, 2016.
According to information presented during his guilty plea and sentencing hearings, from November 2011 to April 2013, Ruble and other conspirators operated Apex Health & Wellness, a phony pain management clinic in Brunswick, Georgia. Ruble wrote prescriptions for oxycodone, hydrocodone and other drugs without a medical purpose to drug-seeking customers, who typically paid cash for the prescriptions. During the 17 months the phony clinic was in operation, there were more than 10,000 patient visits, an average of 30 drug-seeking customers each day. Apex Health & Wellness was shuttered on April 24, 2013 after a federal search warrant was executed at the premises. The unlawful business was very profitable until being shut down. During its operation, deposits into an Apex Health & Wellness bank account totaled over $2 million, including cash deposits of over $1.7 million. Ruble was paid just under $500,000 for his services at Apex. The owner of the pill-mill clinic, Marc Frazier, 46, of Satellite, Beach, Florida, pleaded guilty to a similar conspiracy charge in July 2015 and was sentenced by Chief Judge Wood to serve 44 months in prison.
The convictions in this matter resulted from a joint investigation by the DEA, GBI, Glynn-Brunswick Narcotics Enforcement Team (GBNET), IRS-CID, and the United States Marshals Service. The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program, the keystone drug enforcement program of the Department of Justice.
Acting United States Attorney James D. Durham said, “Mr. Ruble was another drug dealer that just happened to wear a white coat. The sad truth is that the owners and operators of sham pill-mill clinics prosper while the patients and members of the community suffer. Those who attempt to profit from pill mills masquerading as pain management clinics in the Southern District of Georgia can expect to find themselves next in a federal prison.”
Assistant United States Attorneys Greg Gilluly, Marcela Mateo and Karl Knoche prosecuted the case for the United States. For additional information, please contact the U.S. Attorney’s Office at (912) 201-2522.
Fraticelli Trucking Company Inc. Guilty of Illegally Transporting Radioactive MaterialRead the Press Release
SAN JUAN, P.R. – On April 4, 2017, Fraticelli Trucking Company Inc. entered a guilty plea to one count of illegally transporting certain highly radioactive material in violation of Title 49, United States Code, Sections 5105(d), 5124(a) and (c), announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The guilty plea was entered pursuant to a Plea Agreement reached with the United States. The United States Department of Transportation Office of Inspector General handled the investigation.
The criminal violation, included in an Information filed today with the United States District Court for the District of Puerto Rico, pertains to Fraticelli Trucking Company Inc.’s willful transportation of Cobalt 60, a Class 7 radioactive material, on March 7, 2014, between San Juan and Vega Alta, Puerto Rico via commercial highway without conducting the required pre-trip inspection for such material.
As a part of the Plea Agreement, Fraticelli Trucking Company Inc., a domestic for-profit corporation, stipulated that it contracted to transport a Highway Route Controlled Quantity (HRCQ) of the Class 7 radioactive material (Cobalt 60), within Puerto Rico. Further, at all relevant times, Fraticelli Trucking Company Inc. was aware of the requirement to obtain pre-trip inspections for the delivery and transportation of Cobalt 60 pursuant to Title 49, Code of Federal Regulations, Section 385.415(b)(1).
Specifically, Eduardo Fraticelli Alvarado, acting as an employee and authorized agent of Fraticelli Trucking Company Inc., completed, signed, and submitted US DOT, FMCSA, Combined Motor Carrier Identification Report and HAZMAT Permit Application Form MCS 150B to the Federal Motor Carrier Safety Administration (FMSCA) in or about August 2011, September 2013, and August, 2015. On each date, he certified knowledge of the Federal Motor Carrier Safety Regulations and Federal Hazardous Materials Regulations.
Despite knowledge of the required inspections for radioactive material, Fraticelli Trucking Company Inc. willfully transported Cobalt 60 without conducting the pre-trip inspection on four separate dates: December 7, 2011, July 11, 2012, February 19, 2013, and March 7, 2014.
No hazardous materials were released and no deaths nor bodily injuries were suffered.
“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of workers and the surrounding communities,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”
“As evidenced by the guilty plea entered into today by Fraticelli Trucking Company related to transporting radioactive materials illegally on public highways, maintaining the safety and integrity of our public highways remains a top priority for both the Office of Inspector General and the Department of Transportation,” said Marlies T. González, U.S. Department of Transportation Office of Inspector General Regional Special Agent-in-Charge. “Working with our Federal Motor Carrier Safety Administration and prosecutorial colleagues, we will continue to enforce the hazardous materials laws against those who would seek to compromise the integrity of DOT's HAZMAT safety program.”
As a result of the guilty plea, Fraticelli Trucking Company Inc. may be sentenced to a term of one (1) to five (5) years of probation, a fine not to exceed five hundred thousand dollars ($500,000.00), and/or a term of supervised release of not more than three (3) years. The sentencing hearing has not yet been scheduled by the presiding judge, U.S. District Judge Francisco A. Besosa. Assistant United States Attorney Seth Erbe is in charge of the prosecution of the case.
Former Westbrook Tax Collector Sentenced to Six Months for EmbezzlementRead the Press Release
Contact: Richard W. Murphy
Acting United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Ann Marie Williams, 52, of Falmouth, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby, to six months in prison and three years of supervised release for embezzling funds from the City of Westbrook while employed as the City’s Tax Collector. Williams was also ordered to pay $118,000 in restitution. She pleaded guilty on September 19, 2016.
According to court records, from July 2015 through April 2016, while employed as the Tax Collector for Westbrook, Williams embezzled a portion of cash tax payments made by residents. She concealed her thefts by altering records reflecting the amount of cash tax payments that had actually been received by the City.
The investigation was conducted by the Federal Bureau of Investigation.
Former Running Store Employee Pleads Guilty to $275,000 TheftRead the Press Release
KANSAS CITY, KAN. - An Olathe man pleaded guilty Tuesday to stealing more than $275,000 in merchandise while he was working for a store that catered to runners, U.S. Attorney Tom Beall said.
Craig W. Sullivan, 41, Olathe, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted the crime occurred while he worked for Garry Gribble’s Running Sports, which has five locations in the Kansas City area. Sullivan oversaw merchandise arriving at the main store in Overland Park. He was responsible for distributing merchandise to the other locations.
In his plea, Sullivan admitted he stole merchandise – primarily Garmin GPS devices – and sold them to a buyer in California via Craigslist. The buyer used PayPal to send Sullivan 51 payments totaling $275,780.
Sentencing is set for July 10. Sullivan faces up to 20 years in federal prison and a fine up to $250,000. Beall commended the U.S. Postal Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former New York City Human Resources Administration Employee Sentenced in Manhattan Federal Court to More Than Seven Years in Prison for Fraud and Cocaine TraffickingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that PETRONILA PERALTA, a/k/a “Petra,” a former employee with the New York City Human Resources Administration (“HRA”), was sentenced in Manhattan federal court to 90 months in prison for defrauding a public assistance program that she had administered during the time when she worked for HRA, resulting in the theft of more than $600,000 in public funds, and for trafficking more than 100 kilograms of cocaine following her separation from HRA. Sentence was imposed by U.S. District Judge Gregory H. Woods.
Acting U.S. Attorney Joon H. Kim stated: “Petronila Peralta not only trafficked in large quantities of cocaine, but also abused her position of trust by enriching herself and her co-conspirators at the expense of some of New York City’s neediest citizens. For her serious crimes, she has now been sentenced to over seven years in federal prison.”
According to the Complaint, Indictment, plea agreement, and other information in the public record:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among others, administering the federally funded Supplemental Nutrition Assistance Program (more commonly known as “food stamps”), administering the federally funded Temporary Aid to Needy Families Program, and providing rental assistance to low-income families and individuals.
Between 2005 and August 2014, PERALTA worked at HRA. Although PERALTA was supposed to provide economic support and employment-related services to persons in need, between approximately 2009 and 2011, PERALTA abused her position by fraudulently issuing certain public assistance benefits not to the individuals who were entitled to them, but rather to her co-conspirators. The scheme led by PERALTA resulted in the loss of more than approximately $600,000 in public funds. In addition, following her separation from HRA, between approximately January 2013 and March 2015, PERALTA received, and helped others to receive, through the mail more than 100 kilograms of cocaine meant for re-distribution. In handing down the sentence, Judge Woods called PERALTA the “lynchpin” of both the HRA fraud and the narcotics conspiracy.
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In addition to the prison sentence, PERALTA, 53, of Bronx, New York, was ordered to pay $600,000 in restitution and $675,000 in forfeiture.
Acting U.S. Attorney Kim praised the work of the New York City Department of Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service.
The case is being prosecuted by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorneys Daniel C. Richenthal and Shawn G. Crowley are in charge of the prosecution.
Former Certified Public Accountant Pleads Guilty to ConspiracyRead the Press Release
Jackson, Miss. – Kayla Paul Lindsey, 48, of Rankin County, Mississippi, entered a guilty plea today in U.S. District Court to conspiracy to make false statements to defraud the Federal Home Loan Bank of Dallas, announced Acting U.S. Attorney Harold Brittain.
Lindsey is a former Certified Public Accountant who has been practicing in the Jackson area. Her co-conspirator, Marlene Solomon Williams, also of Rankin County, previously entered a guilty plea to the conspiracy charge and is awaiting sentencing.
The investigation in this case revealed that Lindsey and Williams administered a grant from the Federal Home Loan Bank of Dallas that was intended to provide home repairs for low- to moderate-income households. In pleading guilty, Lindsey and Williams admitted they hired contractors to perform repairs under the grant, and instructed the contractors to inflate their invoices by 20%, which was kicked back to Lindsey and Williams. The fraudulently inflated invoices were submitted to the Federal Home Loan Bank of Dallas through its local member institution, Trustmark Bank. Lindsey and Williams were paid over $186,000 in kickbacks generated by the fraudulent invoices during the course of the conspiracy.
"Today’s guilty plea is evidence that those who choose to participate in fraudulent schemes in an effort to steal from grant programs intended to help homeowners will be brought to justice," said Special Agent in Charge Timothy Mowery with the Federal Housing Finance Agency Office of Inspector General. "The FHFA OIG, together with our law enforcement partners, will vigorously investigate allegations of fraud and will ensure that those who engage in such acts will be held accountable."
Lindsey will be sentenced by U.S. District Judge Tom S. Lee on June 29, 2017, and she faces a maximum penalty of five years in prison and a $250,000 fine. Both defendants will be required to repay all of the illegal proceeds as mandatory restitution in this case.
The case is being prosecuted by Assistant United States Attorney Dave Fulcher. It was investigated by the Federal Housing Finance Agency Office of the Inspector General, the Federal Bureau of Investigation, USDA Office of Inspector General, and the Mississippi Attorney General’s Office.
Former Bergen County, New Jersey, Man Admits Role in $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. - A former resident of Alpine, New Jersey, today admitted defrauding investors out of more than $5 million, Acting U.S. Attorney William E. Fitzpatrick announced.
James Trolice, 63, of Fairfield, Connecticut, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a two-count information charging him with securities fraud and transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products. Trolice and Lee Vaccaro, 45, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency.
Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.
The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 20, 2017.
Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 months in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Acting Chief Amy G. Kopleton, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this scheme, you are encouraged to contact the FBI at 973-792-3000.
Today’s plea is due to efforts by the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: K. Anthony Thomas Esq., Newark
Florida Salesman Indicted for Evading Taxes on More than $1.5 Million in IncomeRead the Press Release
A Fort Lauderdale, Florida resident was indicted today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, between 2002 and 2015, Thomas Daly earned more than $1.5 million in income working as a salesman for several companies. The indictment alleges that Daly has not filed a federal tax return since 2002, with the exception of the 2007 tax year. In August 2009, the Internal Revenue Service (IRS) notified Daly that it intended to levy his wages to collect his unpaid tax liabilities for 2002 through 2006. Allegedly, in an effort to evade the collection of his back taxes, Daly incorporated South Florida Home Marketing Inc. (SFHM) to serve as his nominee and alter ego. Daly allegedly entered into an agreement with his employer to receive his wages in the name of SFHM. The indictment charges that as a result, the IRS’s levy was unsuccessful. Daly also allegedly directed others to make payments to him in the name of SFHM and used the income deposited into SFHM’s bank account to pay personal expenses, including apartment rent, a boat, international travel, entertainment, his girlfriend’s cosmetic surgery and jewelry.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Daly faces a statutory maximum sentence of five years in prison for each tax evasion count. Daly also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Female Drug Smuggler Sent to Federal PrisonRead the Press Release
LAREDO, Texas – A 32-year-old resident of Guadalajara Jalisco, Mexico, has been ordered to prison following her conviction of conspiracy to import cocaine, announced Acting U.S. Attorney Abe Martinez. Susana Carolina Enriquez-Mendez pleaded guilty Dec. 6, 2016.
Late this afternoon, U.S. District Judge Marina Garcia Marmolejo sentenced Enriquez-Mendez to 37 months in federal prison. Not a U.S. citizen, she is expected to face deportation proceedings following completion of her prison term.
On Sept. 24, 2016, Enriquez-Mendez approached the Lincoln Juarez Bridge in Laredo as a passenger in a Mexican taxi cab. After a thorough inspection, agents discovered 4.38 kilograms of cocaine hidden in the inner lining of her suitcase and placed her under arrest.
She has been in custody since her arrest where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection and Immigrations and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Flores Jr. prosecuted the case.
Federal Inmate Charged with Possessing SuboxoneRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., was indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, Acting United States Attorney Soo C. Song announced today.
The indictment named John D. Barnett, Jr., 41.
According to the indictment presented to the court, on December 24, 2016, Barnett possessed a quantity of Suboxone.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Barnett.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Detroit man sentenced to 14 years in federal prison for heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man who led a conspiracy to distribute heroin in Boone County was sentenced today to 14 years in federal prison, announced United States Attorney Carol Casto. Daymeon Damar Johnson, 31, previously pleaded guilty to conspiracy to distribute heroin.
Johnson came to Boone County from Detroit in 2013 and began selling oxycodone from the residence he shared with codefendant Joyce Ann Zornes on Harper Lane in Seth. At some point prior to May 2015, Johnson and Zornes began selling heroin supplied by sources in Detroit. Johnson sold to mid-level dealers and users in Boone County, and occasionally traded drugs for firearms. In July 2015, members of the U.S. Route 119 Drug and Violent Crime Task Force began making purchases of heroin from local dealers being supplied by Johnson. On March 22, 2016, Zornes was stopped in Jackson County while transporting heroin from Michigan. Two days later, in an effort to obtain bond money for Zornes, Johnson recruited Gregory Runion to sell an SKS assault rifle. Runion sold the rifle to an informant working for the Task Force.
On August 1 and 2, 2016, Task Force officers used an informant to buy heroin directly from Johnson and Zornes at their residence. Officers executed search warrants at the residence and seized more than 40 grams of heroin, ecstasy tablets, cash, and distribution paraphernalia. Both Johnson and Zornes were arrested and remain in custody.
This long-term investigation of heroin trafficking in Boone County has led to several convictions and prison sentences. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm. Joyce Ann Zornes, of Seth, previously pleaded guilty to aiding and abetting the distribution of heroin and faces up to 20 years in federal prison when she is sentenced on April 27, 2017. Darrell Woodside, of Detroit, previously pleaded guilty to using a telephone to facilitate heroin trafficking and faces up to four years in federal prison when he is sentenced on June 22, 2017.
The U.S. Route 119 Drug and Violent Crime Task Force and the West Virginia State Police conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence and is presiding over these cases.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Deming Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Andres Aguirre, 36, of Deming, N.M., was sentenced today in federal court in Las Cruces, N.M., to 110 months in prison for violating the federal firearms laws. Aguirre will be on supervised release for three years after completing his prison sentence.
Aguirre was arrested in April 2013, on a criminal complaint charging him with being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. According to the complaint, on March 5, 2013, Las Cruces Police Department (LCPD) officers encountered Aguirre inside a Walmart in Las Cruces, where Aguirre was attempting to purchase ammunition. At the time, Aguirre was also in possession of a firearm with an obliterated serial number and ammunition.
Aguirre was subsequently indicted on the same charges on July 17, 2013. Aguirre was prohibited from possessing firearms or ammunition because of his prior felony convictions for retaliation against a federal official, escape of a prisoner from a correctional institution, and being a felon in possession of a firearm.
On Nov. 6, 2013, Aguirre pled guilty to the indictment and admitted that on March 5, 2013, in Doña Ana County, N.M., he possessed a pistol with an obliterated serial number.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the LCPD. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted this case under 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Carlos Deonta Brown, Jr., 30, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to four years and 10 months in federal prison without parole.
On June 30, 2016, Brown pleaded guilty to being a felon in possession of a firearm.
The investigation began when a 911 caller reported at approximately 2:08 a.m. on Feb. 21, 2016, that she had seen Brown with a firearm after they had an argument at the Sidelines Sports Bar in Columbia. The caller showed officers photographs she had taken of Brown and the firearm. While an officer was meeting with her, Brown drove past her residence. He was stopped and arrested in possession of a loaded Smith & Wesson .38-caliber revolver.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has an extensive criminal history, which includes felony convictions for resisting arrest and domestic assault. Court documents describe Brown – who also has multiple misdemeanor convictions for domestic assault – as a violent and serial abuser of women.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Columbia Man Pleads Guilty to Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man who was involved in a shooting at a local gas station has pleaded guilty in federal court to illegally possessing a firearm.
Turbo Lindsey Midgyett, 31, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Monday, April 3,2017, to being a felon in possession of a firearm.
According to the plea agreement, Columbia police officers responded to a gas station in the 1400 block of Rangeline on March 6, 2016, where shots had reportedly been fired. Officers located two cars with damage from gunfire and found three 9mm casings. Video from the gas station showed a man pulling out a firearm, which appeared to misfire, then showed Midgyett racking a handgun and firing in the direction of the first shooter.
Officers went to Midgyett’s residence and spoke with his girlfriend, who told officers that Midgyett is allowed to use her gun and vehicle, and that the gun was usually in the glove box. Officers looked in the glove box and found a loaded Taurus 9mm handgun, which had three rounds missing. The brand of ammunition in the firearm was the same as the three rounds found at the shooting scene. Midgyett was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Midgyett has three prior felony convictions for robbery.
Under federal statutes, Midgyett is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Chicago-Area Return Preparer Barred from Preparing Federal Tax ReturnsRead the Press Release
Today, a federal judge barred Irving Brown Sr., a retired Chicago Fire Department captain, from preparing federal tax returns for others, the Justice Department announced. After a two-day bench trial in February, the court found that Brown Sr. of Chicago, Illinois, prepared and filed fraudulent tax returns for his customers, including Chicago Fire Department firefighters.
The court found that Brown, Sr. operated a seasonal tax return preparation business out of his Chicago home called Irving Brown, Sr. Tax Services and prepared more than 1,600 federal tax returns from 2011 to 2015 either himself or with the assistance of others. The court’s ruling noted that the Internal Revenue Service (IRS) audited 94 returns prepared by Brown Sr. and found that all but two required an adjustment by the IRS. Based upon these audits, the total tax deficiency was more than $700,000, and the IRS projects that the tax loss is well in excess of $1 million, according to the court’s findings.
The court determined that Brown engaged in a variety of ways to underreport his customers’ tax liabilities, such as fabricating the existence of small businesses with high expenses and inflating itemized deductions in order to offset earned income on his customers’ tax returns. The court also determined that Brown Sr. routinely fabricated itemized deductions such as charitable contributions and unreimbursed employee expenses. For example, on one of his customer’s returns, Brown Sr. reported more than $3,000 in parking expenses as unreimbursed employee expenses when the customer did not drive to work or park any car at work. The court noted that this customer did not even have a car for that particular year.
In addition to underreporting his customers’ tax liabilities, the court determined that Brown actively attempted to impede and obstruct the IRS’s investigation into his preparation activities. For example, the court found that Brown offered to pay $3,000 towards a customer’s tax liability if the customer agreed not to turn Brown in or sign an affidavit implicating him. The court also determined that Brown provided customers with false receipts and blank work orders, which appeared to be written in the same handwriting, and instructed those customers to present those documents to the IRS in support of the fraudulent items reported on their returns.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division thanked the revenue agent of the IRS–Small Business/Self-Employed Division, who conducted the investigation and Trial Attorneys Jordan A. Konig and Mary A. Stallings of the Tax Division, who litigated this case.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Charlotte Resident Sentenced in Connection with Business Email Compromise Scheme, Access Device Fraud, and Check FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in Federal court, United States District Judge Terrence W. Boyle sentenced OBINNA IZUCHI ONWUZURIKE, 27, of Charlotte, North Carolina to 65 months of imprisonment and $154,928 in restitution.
ONWUZURIKE was named in a Criminal Information filed on August 30, 2016 which charged him with conspiracy to commit money laundering and access device fraud and aggravated identity theft. On September 26, 2016, pursuant to a waiver of indictment, ONWUZURIKE pled guilty to the charges.
According to the charging instrument, statements made in court, and other public information, ONWUZURIKE conspired with others to engage in acts of money laundering, access device fraud, and check fraud. Among other things, ONWUZURIKE was involved in the laundering of fraud proceeds generated by “business email compromise” (BEC) schemes through one or more domestic bank accounts. BEC schemes are sophisticated scams targeting businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The scam is carried out by compromising legitimate business email accounts through social engineering or computer intrusion techniques to conduct unauthorized transfers of funds.
ONWUZURIKE also engaged in access device fraud involving the theft of credit card information for the purpose of making unauthorized charges against victim accounts. Additionally, as part of the conspiracy, ONWUZURIKE committed check fraud. In one instance, ONWUZURIKE deposited a $60,000 counterfeit check into the bank account of a sham company opened with victim information. The check itself purported to be drawn on another victim’s home equity line of credit.
Investigation of this case was conducted by the Federal Bureau of Investigation, Cyber Division. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Charlotte Man Convicted of Murder and Robbery Following Two-Week TrialRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted Damarcus Donte Ivey, 35, of Charlotte, of Hobbs Act robbery and committing murder while using and possessing a firearm during and in furtherance of the robbery, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the two-week trial, which ended yesterday afternoon.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to court documents, evidence presented at trial and witness testimony:
On September 10, 2009, Ivey and Kevin Bishop robbed Club Nikki’s, located at 3001 Little Rock Road, in Charlotte. Over the course of the robbery, Ivey and Bishop pointed guns at the club’s patrons and staff, ordered them on the floor, and took personal items from the patrons and cash from the club. Trial evidence showed Ivey take items from the male victim before he fired a shot that killed him. Ivey and Bishop then fled the scene in a Ford F-150. Six minutes after the initial 9-1-1 call, a CMPD officer observed Ivey and Bishop exiting I-85 onto Beatties Ford Road. A chase ensued that ended in a vehicle crash and Ivey and Bishop attempted to flee from CMPD officers on foot. Both men were apprehended by CMPD officers within minutes and were found in possession of proceeds from the robbery. Inside the Ford F-150, officers located the wallet of one of the club’s patron and $355 in cash scattered about the floorboard.
Ivey is currently in federal custody. The Hobbs Act robbery charge carries a maximum prison term of 20 years, and a $250,000 fine. The murder while using a firearm in furtherance of a crime of violence charge carries a mandatory penalty of life in prison. A sentencing date for Ivey has not been set. Kevin Bishop was convicted on state charges in 2014 and was given a 16-20-year sentence for his role in the robbery.
In making today’s announcement, U.S. Attorney Rose said, “I want to thank the Mecklenburg County District Attorney’s Office for their coordination and partnership with my Office in the successful prosecution of this case.”
U.S. Attorney Rose also commended CMPD, the FBI, and the ATF for their investigation of the case.
Assistant U.S. Attorneys Craig Randall and William Bozin, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Cape Cod Woman Pleads Guilty to Heroin TraffickingRead the Press Release
BOSTON – A Hyannis woman pleaded guilty today in U.S. District Court in Boston in connection with trafficking heroin on behalf of Denzel Chisholm and the “Nauti-Block” gang.
Eelyese Mateo, 20, pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin and money laundering on behalf of Denzel Chisholm and the “Nauti-Block” gang. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for July 18, 2017.
In October 2015, law enforcement initiated an effort to address the rising opioid epidemic in Massachusetts and on Cape Cod in particular. According to court documents, Mateo and other co-conspirators were responsible for a significant quantity of the heroin distributed on Cape Cod. A wiretap investigation led to their arrests and indictments. Mateo, who was in a personal relationship with Chisholm, stored heroin at her home and delivered it on Chisholm’s behalf to Chisholm and other co-conspirators. Chisholm would frequently call Mateo and tell her to either deliver heroin or pick up heroin at a known stash house. In total, Mateo agreed to accept responsibility for between 400 and 700 grams of heroin. Chisholm's arraignment is set for April 13, 2017.
The charge of conspiracy to distribute and possession with the intent to distribute heroin provides for a maximum sentence of 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cambridge Man Sentenced to Five Years for Extortion and GamblingRead the Press Release
BOSTON – A Cambridge man was sentenced yesterday in U.S. District Court in Boston to five years in prison for extortion and conducting an illegal gambling business.
Anthony Corso, 52, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison, to be followed by three years of supervised release. Judge Casper also issued an order forfeiting over $68,000 in cash recovered in searches or from bank accounts, as well as 30 fake luxury watches also recovered in searches, and a forfeiture money judgment order against Corso for $60,000.
On Dec. 20, 2016, Corso pleaded guilty to conducting an illegal gambling business, conspiring to make and making extortionate extensions of credit, and conspiring to collect and collecting extensions of credit by extortionate means. Judge Casper deferred acceptance of Corso’s plea agreement until yesterday.
Corso was the last of three men to be sentenced as part of an illegal bookmaking business. Co-defendant Joseph Yerardi was sentenced March 17, 2017, to seven years in prison for extortion and conducting an illegal gambling business. On March 21, 2017, co-defendant Michael Burke, 45, of Winthrop, Mass., was sentenced to two years in prison, to be followed by two years of supervised release.
In 1995, Corso was convicted in U.S. District Court in Boston of racketeering and was sentenced to 151 months in prison.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Jr., Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Cambridge, Medford, and Quincy Police Departments. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
California Man Sentenced for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Walter Drakeford (72, Santa Monica, CA) to two years in federal prison for attempting to interfere with the administration of the internal revenue laws. He pleaded guilty on May 17, 2016.
According to court documents, between September 2006 and March 2009, Drakeford and another individual falsely purported to own the rights to landfill methane credits. They marketed the purported credits to a network of tax return preparers for use on individual taxpayers’ tax returns, despite knowing that the credits were non-existent and/or not able to be claimed by the individual taxpayers. The tax return preparers advised their individual taxpayer-clients to claim the credits on their tax returns. If an individual taxpayer received the tax refund as a result of the landfill methane credit claimed, they were obligated to remit a substantial portion of that refund, frequently as much as 80%, to Drakeford and others.
After questioning by the IRS regarding the purported credits, Drakeford presented false and fraudulent documentation to the IRS regarding purported Devonian shale credits in an unsuccessful effort to prevent the IRS from attempting to collect the monies owed resulting from the disallowances of the purported landfill methane credits.
When that effort failed, Drakeford knowingly caused to be presented to the IRS fraudulent and false amended tax returns that claimed purported dry hole expenses, again in an unsuccessful attempt to prevent the IRS from attempting to collect the monies owed from the purported landfill methane credits. Drakeford and others provided the tax return preparers a formula by which to calculate the amounts of the dry hole expenses to be claimed by the individual taxpayers. The formula was designed to fraudulently eliminate the individual taxpayers’ debts to the IRS based on the disallowance of the false and fraudulent landfill methane credits.
The government estimates the total amount of false and fraudulent credits claimed in this case to be $4,211,757, a substantial amount of which has been recovered from the individual taxpayers.
This case was investigated by Internal Revenue Service, Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
California Man Pleads Giulty to $6.6 Million K2 Conspiracy in Callaway CountyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Sacramento, Calif., man pleaded guilty in federal court today to his role in drug-trafficking and money-laundering conspiracies related to the distribution of more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Michael James Butler, 40, of Sacramento, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in an April 20, 2016, federal indictment.
By pleading guilty today, Butler admitted that he participated in a mail fraud conspiracy from Dec. 18, 2012, to July 16, 2015, and participated in a money-laundering conspiracy during that time; both conspiracies were related to the distribution of synthetic cannabinoids.
According to court documents, the drug-trafficking conspiracy generated $6,656,843 in gross proceeds. Butler acknowledged today that his conduct directly contributed to the generation of approximately $753,688 of that total; under the terms of today’s plea agreement, he must forfeit a money judgment of that amount to the government.
Butler managed a co-conspirator’s company that was used to send FedEx packages containing synthetic cannabinoids to wholesale customers at various locations in the United States. Butler also established and controlled another company, Butler-Whayne Industries, LLC. Although Butler-Whayne Industries was ostensibly in the business of selling Xboxes, Playstations, games and accessories, Butler admitted that the company sent packages containing synthetic cannabinoids to locations in Callaway County, including Inscentives Resale in Auxvasse and Fulton and Esscentials/S&J Tobacco in Holts Summit.
Butler is among eight co-defendants who have pleaded guilty in this case. Shawn Michael Browning, 26, Timothy Christopher Sandfort, 31, Brandon Derek Rader, 32, and Joshua Adam Sheets, 31, all of Fulton, pleaded guilty to the same charges.
Dara Leanne Shirley, 30, of Fulton, pleaded guilty to participating in the money-laundering conspiracy. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, each pleaded guilty to distributing synthetic cannabinoids.
Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
These businesses purchased synthetic cannabinoids from Butler and other co-conspirators in California and Nevada. At least 251 shipments of synthetic cannabinoids were made via FedEx and UPS. Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit.
The packages of synthetic cannabinoids bore misbranded labels that misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.
By pleading guilty to his role in the money-laundering conspiracy, Butler admitted that the nature and source of the proceeds of the distribution of synthetic cannabinoids was concealed by the transfer of funds between business entities created to appear to conduct lawful commerce.
Under federal statutes, Butler is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony McCutcheon, 51, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine and possession of a firearm in furtherance of drug trafficking before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life and a $5,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between June 2013 and February 25, 2014, the defendant conspired with others to distribute crack cocaine in the Buffalo area. McCutcheon supplied cocaine to co-defendants Troy Cooley, Andre Owens, Morrell Buster, and William Jefferson. During the execution of a search warrant at the defendant’s East Amherst Street residence, law enforcement officers recovered cocaine, crack cocaine, baggies and scales. Officers also recovered a loaded 9mm semi-automatic handgun.
McCutcheon was charged along with Cooley, Owens, Buster, Jefferson, Deandre Sparks, Markiel Hall, Alicia Maghett, and Carmella Rivera. All nine defendants have been convicted.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen, and the Lackawanna Police Department, under the direction of Chief James Michel.
Sentencing is scheduled for July 26, 2017, at 2:00 p.m. before Judge Skretny.
Broward County School District Employee Pleads Guilty to Obstructing Drug InvestigationRead the Press Release
A Broward County School District employee has pled guilty to obstructing a drug investigation.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Porsha Session, 31, of Boynton Beach, Florida, pled guilty today before U.S. Magistrate Judge David Lee Brannon in West Palm, Florida, to the one-count Indictment charging her with obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). Session faces a statutory maximum term of 20 years’ imprisonment and a fine up to $250,000.
According to the indictment, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise.
Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Greenberg commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Berkeley County man indicted for possessing child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Wesley Chalk, of Inwood, West Virginia, was indicted by a grand jury sitting in Wheeling today for possession and distribution of child pornography, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Chalk, age 41, was indicted on one count of “Distribution and Receipt of Child Pornography” and one count of “Possession of Child Pornography.” Chalk is accused of distributing and receiving child pornography and having in his possession child pornography depicting a prepubescent minor and a minor under the age of 12. The crimes are alleged to have occurred between March 2015 and August 2016 in Berkeley County.
Chalk faces up to twenty years and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Sentenced to Prison for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Phillip Larry Gonzales, 29, of Albuquerque, N.M., was sentenced today in federal court to 36 months in prison followed by three years of supervised release for his heroin trafficking conviction. In addition, Gonzales was sentenced to a year and a day of imprisonment for violating his supervised release on an earlier conviction, to be served consecutive to the three-year sentence for a total sentence of 48 months of imprisonment.
Gonzales was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a 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.
Gonzales was arrested on Aug. 10, 2016, on an indictment charging him with distributing heroin on July 27, 2016, in Bernalillo County, N.M. On Dec. 5, 2016, Gonzales pled guilty to the indictment, and admitted that on July 27, 2016, he sold 26.7 grams of heroin to an undercover law enforcement agent.
To date, 32 of the 104 defendants have entered guilty pleas, and four defendants have been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the ATF and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Alaska Oil Company Agrees to Pay $10 Million in Penalties to Settle Federal Claims for Violating the Jones ActRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Furie Operating Alaska LLC (“Furie”), a company whose focus is exploration and production of natural gas and oil in Cook Inlet, has agreed to pay $10 million to satisfy a civil penalty originally assessed against it by U.S. Customs and Border Protection (“CBP”) for violating the Jones Act. Furie was penalized when it transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska in 2011 using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security. This resolves a civil lawsuit filed by Furie in 2012 challenging the assessment of the civil penalty.
The Jones Act, passed in 1920, prohibits a foreign vessel from transporting merchandise between points in the United States. A violation of the Jones Act may result in the assessment of a civil penalty equal to the value of the merchandise. A waiver may be obtained, in limited circumstances, from the Secretary of the Department of Homeland Security when he or she believes it is in the interest of national defense, following a determination that there is no U.S. vessel available to engage in the transport. settlement in this case is the largest Jones Act penalty in the history of the Act.
Resolution of this case demonstrates that the Jones Act will be actively enforced and that an intentional violation will not be rewarded. The settlement also provides closure to Furie and is designed not to undermine its ability to bring natural gas to market in Southcentral Alaska.
Acting U.S. Attorney Schroder commends U.S. Customs and Border Protection, Office of General Counsel, for their active support and assistance leading to the settlement in this case.
3 April 2017
Williamsville Man Charged with Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Chase, 49, of Williamsville, NY, was arrested and charged by criminal complaint with enticement of a minor. The charge carries a maximum of 10 years in prison and a $250,000 fine.
Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that according to the complaint, on March 10, 2017, the defendant, using the name “The Dark Father,” initiated an online conversation with a female. Chase stated, “So, are you still looking for a boyfriend? And do you like older men?” The defendant noted that he was looking for an “[e]specially submissive” girlfriend and asked for a cell number to continue a conversation.
The following day, on March 11, 2017, Chase texted the female and asked, “Now the evil question are you really 18.” In the text, the female indicated that she was only 15 years-old. The defendant, however, continued to contact the female and request “naughty photos.” Following graphic conversation during which Chase described in detail sexual activities with the female, on March 29, 2017, the defendant arranged to meet the female at Walgreens in Depew, NY on April 2, 2017, in order to have sex with her. On April 2, 2017, shortly before the appointed meeting time, special agents with Homeland Security Investigations observed Chase’s car parked just down the street from the Walgreens where he had arranged to meet the female. After he pulled into the Walgreens parking lot, defendant was placed under arrest. He was found to possess condoms and sex lubricant.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Wetzel County man convicted of passing counterfeit money and illegally possessing a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Franklin K. Dotson, 32, of New Martinsville, West Virginia, was convicted today for passing counterfeit money and being a felon in possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Dotson admits to using counterfeit money at the 7 Eleven in New Martinsville in February 2017. Dotson, having previously been convicted of bank robbery in the US. District Court in 2011, did have in his possession a .32 auto caliber pistol. Dotson pled guilty to one count of “Uttering Counterfeit Obligations or Securities” and one count of “Prohibited Person in Possession of a Firearm.”
Dotson faces up to twenty years and a fine of up to $250,000 for count one, and he faces up to ten years and up to a $250,000 fine for count two. 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 prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and The United States Secret Service investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Virginia Man Sentenced to 111 Months’ Imprisonment for Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a man from Virginia was sentenced on March 31, 2017, by United States District Judge Malachy E. Mannion, to serve 111 months’ imprisonment for the armed robbery of the Econo Lodge in Scranton on February 13, 2016.
According to United States Attorney Bruce D. Brandler, Kwa’shon Roane, age 24, of Gloucester, Virginia, previously pleaded guilty to the charges of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence. Roane, was one of four individuals, including Rodney Whiting, age 23, of Scranton, Pennsylvania, Tracy Whiting, age 24, of Newport News, Virginia, and Kelvin Robinson, age 24, of Newport News, Virginia, who were indicted by a grand jury in March 2016, for the armed robbery of the Econo Lodge.
Previously, Kelvin Robinson and Tracy Whiting were each sentenced to serve seven years’ imprisonment by Judge Mannion for charges related to the incident. Rodney Whiting has also entered a guilty plea and is awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office, the Taylor Borough and Moosic Borough Police Departments, and numerous local law enforcement agencies.
Assistant United States Attorney Robert J. O’Hara 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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United States Attorney’s Office Observes National Crime Victims’ Rights WeekRead the Press Release
SAVANNAH, GA – This week is National Crime Victims’ Rights Week, a time to raise awareness about crime victims’ rights, and our nation’s progress in advancing those rights. This year’s theme, Strength, Resilience, Justice, reminds us all that victims are strengthened by the response they receive; that organizations are resilient in response to challenges; and, that communities are able to seek collective justice and healing.
Since the 1980s, our nation has made dramatic progress in securing rights, protections, and services for victims of crime. Every state has enacted victims’ rights laws, and most states have constitutional victims’ rights amendments. All states have victim compensation funds, and more than 10,000 victim service agencies have been established throughout the country. The Office for Victims of Crime, U.S. Department of Justice, supports a range of programs for crime victims, and seeks to extend those services to those who are underserved.
The 2004 Crime Victims’ Rights Act (CVRA) grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Southern District of Georgia has a dedicated Victim-Witness Unit that serves federal crime victims across the District’s 43 counties. Members of this Unit notify victims of significant case events through the Department of Justice’s Victim Notification System. Such notice allows victims to participate in court proceedings and to make their voices heard. In 2016, U.S. Attorney’s Offices’ across the country provided over 13 million case notices and accompanied over 22,000 victims to court hearings and trials. In addition to notification and court accompaniment, the victim units provide other essential services to victims, such as making referrals for counseling, securing temporary housing and assisting with access to victim compensation funds.
In conjunction with National Crime Victims’ Rights Week, the United States Attorney’s Office for the Southern District of Georgia and Criminal Justice Department of Savanah State University are sponsoring training for victim advocates, first responders and law enforcement officers on strategies for interactions with the mentally ill. The training will be held April 13th in Savannah, Georgia. For more information, please contact Law Enforcement Coordinator Dan Drake at (912) 201-2669 or [email protected].
U.S. District Judge Denies Environmentalists’ Challenge to Four Oil and Gas Leases Sold by BLM at November 2011 Lease SaleRead the Press Release
SALT LAKE CITY - In a case before the court on a Motion for Review of Agency Action filed by the Southern Utah Wilderness Alliance, Natural Resources Defense Council, and The Wilderness Society, the plaintiffs challenged the BLM’s decision to issue four oil and gas lease parcels in the November 2011 oil and gas lease sale, and its subsequent decision to approve the Seven-Well Project.
The plaintiffs’ suit names the United States Department of the Interior, BLM, and the Price Field Office Manager for BLM, Ahmed Mohsen as defendants. XTO Energy, Inc., which purchased the leases and submitted the proposal for the Seven-Wells Project, intervened as a defendant.
As explained in the attached memorandum decision and order, U.S. District Court Judge Jill N. Parrish affirms the agency’s action regarding the 2011 Lease Sale and dismisses plaintiffs’ claims regarding the Seven-Well Project as moot.
Judge Parrish memorandum decision and order.pdfThree Plead Guilty to Marijuana Cultivation Operation at Prehistoric Native American SiteRead the Press Release
FRESNO, Calif. — Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30; and Javier Garcia-Castaneda (Garcia), 38, both of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation on public land in Tulare County in the Sequoia National Forest., United States Attorney Phillip A. Talbert announced. In pleading guilty, the men also agreed to make restitution to the U.S. Forest Service for the damage to public land and natural resources caused by their cultivation activities.
According to court documents, the men conspired with each other and co-defendant Carlos Piedra‑Murillo (Piedra), 30, of Mexico, to cultivate marijuana at a prehistoric Tübatulabal Native American archaeological site in the Domeland Wilderness area. The Domeland Wilderness is a federally designated wilderness area that is located about 55 miles northeast of Bakersfield. Law enforcement officers eradicated over 8,000 marijuana plants from this and another site and seized 17 pounds of processed marijuana, a .22-caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition. Piedra pleaded guilty to the conspiracy charge last month.
The marijuana cultivation operation caused extensive environmental damage to about 10 acres of public land. The area was located within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek. Fertilizer and pesticides, including illegal zinc phosphide from Mexico were found at the site. Large piles of trash were also found near the campsite. The northernmost area of the operation caused extensive damage to a large prehistoric Tübatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar is prosecuting the case.
Lopez, Torres, and Garcia are scheduled for sentencing on June 26, 2017, by U.S. District Judge Lawrence J. O’Neill. Piedra is scheduled for sentencing on June 5, 2017. Lopez faces a mandatory prison sentence of five years in prison and a maximum term of 40 years in prison and a $5 million fine. The other men face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Piedra, Torres, and Garcia are subject to deportation to Mexico following the completion of any prison sentence imposed.
Three More Commercial Fisherman Plead Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, Bryan H. daniels, 54, of Belhaven, North Carolina, STEPHEN DANIELS, 63, of Wanchese, North Carolina, and JAMES K. LEWIS, 46, of Gloucester, North Carolina pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. The electronic mail retrieved, which included captains sharing LORAN coordinates and Buoy Numbers where they successfully harvested Atlantic striped bass, combined with the vessel monitoring track lines, illustrated a concerted effort by various commercial fisherman to illegal target and harvest that species from the EEZ. The review also revealed multiple years of illegal harvests by commercial trawlers.
Based on its review, NOAA determined that between January 27, 2009, and February 2, 2010, BRYAN H. DANIELS, then Captain of the Joyce D, a commercial trawler, harvested approximately 8,625 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The estimated fair market retail value of the 8,625 pounds of illegally harvested fish exceeds $68,000. BRYAN H. DANIELS submitted false statements for two of three fishing trips charged in the Indictment, and under penalty of perjury to NOAA, claimed he caught the fish in state waters.
Based on this same review, NOAA determined that between January 27, 2010, and February 9, 2010, STEPHEN DANIELS, then Captain of the Bailey Boy, a commercial trawler, harvested approximately 11,843 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Wanchese, North Carolina. The estimated fair market retail value of the 11,843 pounds of illegally harvested fish exceeds $94,000. To further conceal his illegal activities, on at least two occasions, STEPHEN DANIELS, off-loaded 100 fish, then captained his vessel into inland waters, before returning a few hours later to off-load the remainder of the catch.
NOAA also determined that between January 19, 2009, and January 27, 2009, LEWIS, then the Captain of the fishing vessel Wonder Woman, harvested approximately 3,368 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Engelhard, North Carolina. The investigation further revealed that between on or about January 27, 2010, and February 9, 2010, LEWIS, then the Captain of the fishing vessel Gulf Stream III, harvested at least an additional 5,025 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Wanchese, North Carolina. Similar to STEPHEN DANIELS, to further conceal his illegal activities, on at least one occasion, LEWIS, off-loaded 100 fish, then captained his vessel into inland waters, before returning a few hours later to off-load the remainder of the catch. The estimated fair market retail value of the 8,393 pounds of illegally harvested fish exceeds $67,000.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,160 ocean trawl quota were taken illegally from the EEZ.
Eight other commercial fishermen previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO; United States v. John Roberts¸ No. 4:15-CR-3-BO; United States v. David Saunders, Jr., No. 2:15-CR-2-B0; and United States v. Michael Potter, No. 2:15-CR-6-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues in DOJ’s Environmental Crimes Section to prosecute these important cases.”
Manny Antonaras, Acting Assistant Director for NOAA’s Southeast Division’s Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
A sentencing hearing will be set at a later date. All three defendants face a maximum sentence of 5 years imprisonment and/or a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Shennie Patel and Shane Waller of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Tampa Man Sentenced to More Than Ten Years for Conspiring to Distribute Crack CocaineRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich has sentenced Curtis Williams, Jr. (34, Tampa) to 10 years and 10 months in federal prison for conspiracy to possess with the intent to distribute 28 grams or more of cocaine base, also known as crack cocaine. He pleaded guilty on November 29, 2016.
According to court documents, between January and July 2016, Williams and his co-conspirator, Brian Allen, engaged in a mutually beneficial business arrangement in which Williams supplied Allen with crack cocaine to sell on the street. During the seven-month period, undercover law enforcement officers bought crack cocaine from Allen on 12 occasions, totaling more than 128 grams.
Allen pleaded guilty on January 17, 2017. His sentencing hearing is set for May 12, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Michael Leeman and Mike Gordon.
South Jersey Man Admits Role in Crack Distribution ConspiracyRead the Press Release
CAMDEN, N.J. - A Camden man today admitted his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Boyd, a/k/a “Breet,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court:
Joseph Boyd admitted that he sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden and supplied crack cocaine to other members of the conspiracy to sell in the area.
Joseph Boyd – along with Jason Boyd, Tony Wilson, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson – were originally charged by complaint on Sept. 9, 2016, following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities.
The drug distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 13, 2017.
Jason Boyd, Stallworth, and Wilson have all pleaded guilty to drug distribution conspiracy and firearms possession and await sentencing. The charges against Thomas, Whitaker, Griffin and Dickerson are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: David Rudenstein, Esq.
South Coast Reentry Job Fair & ExpoRead the Press Release
Contact Person: Joe Brewer, (864) 282-2121
Summerville, South Carolina– The United States Attorney’s Office, the South Carolina Department of Probation, Parole and Pardon Services; SC Works; SC Vocational Rehabilitation; SC Department of Social Services; and the US Probation Office are continuing their statewide partnership to help individuals with prior criminal backgrounds secure employment.
The First Annual South Coast Reentry Job Fair & Expo is being held Tuesday, May 9, 2017, from 12:00 pm to 3:00 pm at the Dorchester County Adult Ed Center, located at 1325 A Boonehill Road, Summerville, SC 29483.
This fair, which targets the Lowcountry, is part of a series of fairs, including Florence, the Upstate, and the Midlands, anticipated annually. The partner organizations hope that a tailored expo for people with a criminal background will provide some focused help for the particular obstacles individuals face after returning home.
“A critical component in the transition from prison to a law-abiding life is a job. We in the U.S. Attorney’s Office recognize that our state partners - S.C. Works, S.C. Vocational Rehabilitation, SC Department of Social Services, and S.C. Probation, Pardon and Parole – do terrific work in preparing our fellow South Carolinians for the work force and in aligning our workers with jobs to which they are suited. It is our privilege to learn from the many years’ experience of those in these State agencies as we develop events specifically for individuals with a criminal background,” said U.S. Attorney Beth Drake. “We are excited to connect citizens not simply to employment opportunities but to other critical resources like GED programs that facilitate the transition from prison to employment and a law-abiding life.”
The fair and expo will include area employers and other organizations who participate with, and provide resources for, returning citizens. Any interested employers or vendors should inquire with Diana Goldwire at (864) 315-9751 or [email protected]. In their hiring initiatives and practice, John Hopkins Hospital has demonstrated that returning citizens are some of the most loyal and productive talent pools available to an employer.
“Ensuring that formerly incarcerated individuals have stable jobs and lives, and thereby making them less likely to reoffend, is as important to crime prevention and community safety as our efforts in prosecution,” said Ms. Drake.
Professional dress is required. Discounted SLED criminal background checks will be provided on site. And, the event will also feature workshops on how to seek expungements and pardons of prior criminal convictions. Some transportation arrangements may be available. Please inquire with Marcos Barahona of the US Probation Office at [email protected] or George Whitehead at (803) 734-9143, (803) 667-1258 or [email protected].
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Saratoga Entrepreneur Sentenced to 48 Months in Prison for Crimes Committed in Connection with Boulder Creek Hotel Construction ProjectRead the Press Release
SAN JOSE—Sanjiv Kakkar was sentenced today to 48 months in prison and ordered to pay $4,208,565.36 in restitution to the victim for wire fraud and making misstatements to a bank announced U.S. Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge, after a twelve-day jury trial ending with a guilty verdict on all counts.
The evidence at trial demonstrated Kakkar, 55, of Saratoga, presented false information to a bank in connection with refinancing a hotel property he owned in Boulder Creek, Calif. In November of 2008, Kakkar sought to secure a $6 million loan to refinance the Brookdale Inn and Spa. In connection with the loan, he submitted bogus documents to a bank, including falsified income information and tax returns, which overstated his business income. Kakkar also did not comply with his continuing obligation under the terms of the loan to provide the bank with updated financial records and further tax documents. Further, between January and June 2009, Kakkar submitted false and fraudulent documents to an escrow company. Kakkar induced the escrow company to advance hundreds of thousands of dollars in wire progress payments that were earmarked for reimbursement of construction costs.
A federal grand jury issued a superseding indictment against Kakkar on June 2, 2016, charging him with one count of making misstatements to a bank, in violation of 18 U.S.C. § 1014, and six counts of wire fraud, in violation of 18 U.S.C. § 1343. On November 8, 2016, a jury found Kakkar guilty of all the charges presented in the superseding indictment.
In addition to the prison term, and restitution, Judge Davila ordered Kakkar to pay a $20,000 fine and to serve three years of supervised release. Kakkar currently is released on bond and has been ordered to surrender on or before June 22, 2017, to begin serving his sentence.
Assistant U.S. Attorneys Amie Rooney and Maia Perez are prosecuting the case with assistance from Nina Burney and Elise Etter. The case is the result of an investigation by the ATF.
Sanofi Pasteur Agrees to Pay $19.8 Million to Resolve Drug Overcharges to the Department of Veterans AffairsRead the Press Release
Sanofi-Pasteur has agreed to pay $19,868,194 to resolve claims that it incorrectly calculated drug prices and thereby overcharged the U.S. Department of Veterans Affairs (VA) for drugs under two contracts between 2002 and 2011, the Department of Justice announced today. Sanofi Pasteur, a Delaware corporation headquartered in Swiftwater, Pennyslvania, is the vaccines division of Sanofi-Aventis.
“It is important that pharmaceutical companies provide complete, accurate, and current information to the VA about the pricing of their drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will ensure that pharmaceutical companies follow the rules for drug pricing when selling to the government.”
Under the Veterans Health Care Act, 38 U.S.C. 8126, drug manufactures may not charge the VA more than a maximum amount, known as the Federal Ceiling Price (FCP), for covered drugs. Sanofi Pasteur disclosed to the VA that it had incorrectly calculated the FCP for certain drugs from 2007 to 2011 and overcharged the VA. The Office of Inspector General for the VA investigated the matter, and it determined that the error resulted in overcharges going back to 2002.
“Overcharging VA depletes funds that are available to care for our veterans,” said Director of the Healthcare Resources Division Mark Myers of Veterans Affairs, Office of Inspector General. “We will continue to hold companies accountable for errors in drug pricing.”
Under the settlement, in addition to paying approximately $19.8 million, Sanofi Pasteur has agreed that it will not pursue claims for reimbursement for sales where it contends its error in calculating the FCP resulted in a lower price to the VA.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the Office of Inspector General of the Department of Veterans Affairs. No lawsuit was filed in this matter and there has been no determination of liability.
Rochester Woman Pleads Guilty to Illinois Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Patricia Nelson, 33, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that on March 16, 2015, the defendant robbed the BMO Harris Bank located at 2401 W. Schaumburg Road in Schaumburg, Illinois. Nelson was indicted by a federal grand jury in the Northern District of Illinois for this crime, but pleaded guilty in the Western District of New York after being arrested here in October of 2016 on an arrest warrant from Illinois.
On the date of the robbery, at approximately 9:15 a.m., the defendant entered the BMO Harris Bank wearing a dark hooded sweatshirt, a purple stocking cap, black glasses, and black pants. Nelson went to the customer counter and wrote a demand note on a deposit slip that read, “Put all cash I 2 envelopes No Alarms No DYE Packs Keep quiet & go quickly.” The defendant then approached a teller, placed the note on the counter, and gestured with her hands to hurry. The teller then provided a specific amount of cash to the defendant who took the money and left the bank. Nelson got into the passenger side of her vehicle, which her boyfriend was driving.
The two drove from Illinois to Colorado where they were apprehended and Nelson was ultimately charged with a previous bank robbery at the Canandaigua National Bank on March 10, 2015 in Rochester. Nelson pleaded guilty to Robbery in Monroe County Court and was sentenced to one year in prison. Following her release from prison on that charge, the defendant was arrested for the Illinois bank robbery.
As part of the plea agreement, the defendant agreed to pay $2,320 in restitution to the BMO Harris Bank
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Sentencing is scheduled for August 1, 2017, at 10:00 a.m., before Judge Siragusa.
Rochester Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy Jr. announced today that Luis Osorio, 27, of Rochester, NY, was sentenced by U.S. District Judge Elizabeth A. Wolford to 63 months in prison for bank robbery.
Osorio was charged in June, 2014 along with his younger brother Abraham Osorio, Laquan Ealey and Jeffrey Steadman-Loyd, all of Rochester.
Assistant U.S. Attorney Everardo A. Rodriguez, who handled the prosecution, stated that the defendant participated in the planning and execution of the June 7, 2014, robbery of the Chase Bank located at 2900 Dewey Avenue in Rochester. Co-defendants Abraham Osorio and Laquan Ealey entered the bank and walked up to a teller station. Ealey was wearing a baseball cap, gloves, and black hair extensions. Abraham Osorio had a red baseball cap and sunglasses. Ealey passed a note to the teller that stated, "Give me all the money or everyone dies in here." Ealey then told the teller, "Give me all your money or everyone here will die, I have a gun." The teller handed Ealey an amount of money and the defendants exited the bank, driving away in a 2002 blue Ford Explorer. The robbery was recorded on bank surveillance cameras. Ealey and Abraham Osorio later met up with Luis Osorio and the three men divided the proceeds of the robbery.
A week later, on June 14, 2014, Luis Osorio, Abraham Osorio, Laquan Ealey and Jeffrey Steadman-Loyd attempted to rob the Citizens Bank at 230 Waring Road in Rochester. Luis Osorio and Jeffery Steadman-Loyd were observed by police in the blue Ford Explorer with Abraham Osorio and Laquan Ealey. The four men initially drove by the bank then stopped several block away, at which time Luis Osorio was observed to exit the Explorer with a screwdriver in hand and replace the vehicle’s two license plates with fake plates. The four men then drove back and parked next to the bank. Fearing that the men were about to rob the bank, Rochester Police patrol cars approached the Explorer and engaged their emergency lights. The defendants sped away, leading police on a car chase over approximately five city blocks. During the effort to flee, the Explorer struck a police vehicle. When the Explorer finally came to a stop, Abraham Osorio was the driver, Luis Osorio was the front passenger, and Ealey and Steadman-Loyd were in the back seat.
Police searched the Explorer and found, among other items, black hair extensions, several hats and caps, several pairs of sunglasses, a screwdriver and the two license plates which Luis Osorio had earlier replaced with fake plates.
In addition to his 63 months in prison, Luis Osorio was ordered to pay restitution to Chase Bank in the amount of $3,278. The three other defendants were also convicted. Laquan Ealey was sentenced to 66 months in prison and Jeffrey Steadman-Loyd 24 months in prison. Abraham Osorio is awaiting sentencing.
Today’s sentencing is the culmination of a joint investigation on the part of the Greece Police Department, under the direction of Chief Patrick Phelan; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the New York State Police, under the direction of Major Richard Allen; the United States Marshals Service, under the direction of Charles Salina; and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
RI DLT Employee Sentenced for Theft of Government Funds, Computer FraudRead the Press Release
PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), today was sentenced to 21 months in federal prison for conspiring to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sheku to serve 3 years supervised release upon completion of his prison term and to pay restitution in the amount of $486,366.
Sheku’s sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
At the time of his guilty plea, Sheku admitted that between June 2009 and February 2015, he used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. As part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
The scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
The matter was investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Printing and Packaging CEO Pleads Guilty to Trafficking in Counterfeit Labels and PackagingRead the Press Release
HOUSTON – A 48-year-old California resident has entered a guilty plea to trafficking in counterfeit labels and packaging, announced Acting U.S. Attorney Abe Martinez.
Paul S. Rodriguez Jr. was the CEO of Action Packing and Design Inc. in Santa Ana, California. Between July 2015 and December 2016, Rodriguez intentionally trafficked in counterfeit labels and packaging by manufacturing, and then shipping to Houston, counterfeit and trademarked Frontline, Frontline Plus and Merial veterinary product labels and packaging. The labels and packaging were originally marketed by Merial - an animal health company located in Duluth, Georgia
During this same period, Rodriguez also intentionally trafficked in counterfeit trademarked Rimadyl labels, a veterinary product that Zoetis marketed. Zoetis is a health company located in Florham Park, New Jersey.
Sentencing is currently set for Oct. 2, 2017, before U.S. District Judge Nancy F. Atlas, at which time Rodriguez faces up to 10 years in federal prison and a possible $2 million fine. He was permitted to remain on bond pending that hearing.
The Food and Drug Administration-Office of Criminal Investigations and the Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U. S. Attorney Daniel C. Rodriguez is prosecuting the case.
Porterville, California Woman Pleads Guilty to Cocaine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TINA MARIE ZAHR, age 48, of Porterville, California, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE COCAINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment and up to life imprisonment, a fine up to $10,000,000.00 or both.
The Indictment alleged that on or about February 23, 2017, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Timothy Hammer represented the United States.
Owner of Lackawanna County School Bus Company Charged in Payroll Tax SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Michael Runco, age 56, of Olyphant, Pennsylvania, was charged in a criminal information with failing to pay the Internal Revenue Service (IRS) employment taxes withheld from his employees’ paychecks and filing a false personal income tax return omitting substantial personal income in 2010.
According to United States Attorney Bruce D. Brandler, Runco operated Runco Transportation, Inc., a business that provided school bus transportation services under contract with Mid Valley School District, Lackawanna County, Pennsylvania. During 2006 through 2010, Runco Transportation, Inc. employed as many as 12 individuals. While federal employee employment taxes were withheld from employee paychecks, Runco allegedly failed to account for and pay these tax monies over to the IRS on behalf of his employees. Runco also received compensation from his company but failed to report this income on his 2010 personal income tax return. The total tax loss to the IRS is alleged to be approximately $78,578.
The criminal information was filed pursuant to a plea agreement, which is subject to approval by the court. The plea agreement requires Runco to cooperate fully with the IRS, and to pay all taxes owed together with interest and penalties as determined by the court.
The case was investigated by the Scranton Office of the IRS. Assistant United States Attorney Todd K. Hinkley is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The combined maximum penalty under federal law for these offenses is eight years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Notice to Potential Victims Regarding Former Pain Management Physician Fathalla MashaliRead the Press Release
BOSTON – Fathalla Mashali, 62, of Dover, Mass., pleaded guilty on March 15, 2017, in U.S. District Court in Boston to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering. Sentencing is scheduled for June 21, 2017.
Insurance companies and patients who believe they may be potential victims of Mashali’s scheme to defraud Medicare and other health care insurers, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the charged conduct, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status. Victims of this crime may be entitled to restitution.
Mashali was a licensed physician in Massachusetts and Rhode Island and operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). He also employed Egyptian doctors in Cairo, Egypt, who entered false information into U.S. patients’ medical records. Many of the patients at NEPA were Medicare beneficiaries.
From approximately October 2010 through March 2013, Mashali falsely billed Medicare and commercial insurers for extensive medical services that he did not provide. Mashali also routinely billed Medicare and private insurers for urine drug test results that were false and fraudulent. When Medicare began to inquire about Mashali’s unlawful billing practices and initiated an audit of Mashali’s medical services, requesting 40 patient medical files, Mashali caused his staff both in the United States and in Egypt to falsely alter patient records. This included falsifying patient encounters which had taken place sometimes one or more years earlier, and faking and backdating the results of patients’ urine drug tests. Mashali knew that his patient records would not pass muster with Medicare’s auditors and thus ordered his staff to make these changes.
Mashali used the proceeds derived from his fraudulent billing to fund a lavish lifestyle, spending money on his extravagant Dover, Mass., residence and a condominium in Florida.
Notice to Potential Victims Regarding Former Employee of Massachusetts and Rhode Island Pain Clinic Charged in Fraudulent Billing SchemeRead the Press Release
BOSTON – Moustafa Moataz Aboshady, 35, an Egyptian national residing in Lake Forest, Calif., was indicted in September 2016, in U.S. District Court in Boston, on one count of conspiracy and two counts of making false statements in connection with health care benefit programs. A trial date is not scheduled at this time.
Insurance companies and patients who believe they may be potential victims of this fraudulent billing case, will find additional information about this case on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma and the U.S. Department of Justice website https://www.justice.gov/largecases. Potential victims who can document direct and proximate harm, including financial loss suffered as a result of the alleged conduct in the indictment, may complete the potential victim identification form and return it to the United States Attorney’s Office for determination of their crime victims’ rights status.
As alleged in the indictment, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA.
NEPA had locations in Massachusetts and Rhode Island. The indictment alleges that Aboshady was part of a conspiracy involving other members of NEPA, including its owner and members of a satellite office in Cairo, Egypt, in connection with a scheme to falsify patient medical records in order to obtain payments from the Medicare program and commercial health insurance companies. The alleged conduct included submitting claims for payment to Medicare and commercial health insurance companies for services not rendered.
As part of the alleged scheme, Aboshady falsified, and instructed others to falsify, patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans and durations of face-to-face interactions with patients to create the appearance of lengthy and involved patient appointments, when in fact these services did not take place.
Aboshady is allegedly responsible, in conjunction with the NEPA owner and the Cairo office, for fabricating the dates of urine drug test results so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support billing codes submitted to Medicare and private insurers. The indictment alleges that NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored the specimens in unrefrigerated large plastic bags and containers.
The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Carolina man sentenced to federal prison for role in Huntington drug conspiracyRead the Press Release
HUNTINGTON, W.Va. – A North Carolina man was sentenced today to two years and three months in federal prison for a drug crime, announced United States Attorney Carol Casto. Steven Bailey, 53, of Charlotte, previously pleaded guilty to conspiracy to distribute cocaine.
From October 2014 to late February 2016, Bailey, along with codefendants Jerrell Johnson and Roger Page, both of Huntington, and codefendants Trevor Bethel and Ashara Mayes, both of Atlanta, engaged in a conspiracy to distribute cocaine in the Huntington area. Bailey admitted that on at least two occasions, he brought cocaine from Charlotte to Johnson and Page in Huntington. Bailey further admitted to having a source of drug supply in the Atlanta area.
On February 20, 2016, Bailey admitted that he was in Huntington at Johnson’s residence, along with Bethel. Bailey was later stopped by agents with the Drug Enforcement Administration and was found with over $9,000 cash. Approximately $8,000 of that currency represented proceeds from cocaine provided to Johnson earlier that evening. A search of Johnson’s residence that evening resulted in a seizure by law enforcement of approximately nine ounces of cocaine, at least part of which had recently been provided by Bailey.
Johnson previously pleaded guilty to possession with intent to distribute 28 grams or more of crack and was sentenced to five years in federal prison. Page pleaded guilty to conspiracy to distribute 500 grams or more of cocaine and was sentenced to three years and a month in federal prison. Mayes pleaded guilty to possession with intent to distribute cocaine and faces up to 20 years in federal prison when she is sentenced on May 22, 2017. Bethel is currently a fugitive and is presumed innocent unless and until proven guilty in a court of law.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney R. Gregory McVey is responsible for these prosecutions. Chief United States District Judge Robert C. Chambers is presiding over these cases.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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North Carolina Return Preparer Pleads Guilty to Filing False Income Tax ReturnsRead the Press Release
A Durham, North Carolina return preparer pleaded guilty today in U.S. District Court for the Middle District of North Carolina to filing false tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, from 2012 through 2014, Laurean S. Robinson, 31, worked as the office manager and a return preparer at Tax Breaks, a tax preparation business in Durham. Robinson admitted that she prepared returns for her clients that fraudulently claimed the earned income tax credit and sought inflated refunds. To qualify her clients for the earned income tax credit, Robinson falsely reported that they earned income providing household services, such as babysitting and caretaking. Robinson trained other Tax Breaks employees to prepare false returns in a similar fashion. In addition to fees charged by Tax Breaks, Robinson also often required her clients to pay her an additional fee in cash. Robinson’s criminal conduct caused a tax loss to the Internal Revenue Service (IRS) of approximately $600,737.
Sentencing is scheduled for Aug. 15. Robinson 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 and Acting U.S. Attorney Hairston commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney JoAnna McFadden and Trial Attorney Daniel McGraw of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Jersey Resident Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
Today, Santos Colon, Jr., 17, of Lindenwold, New Jersey, pleaded guilty as an adult to an information charging him with one count of attempting to provide material support to terrorists.
Acting Assistant Attorney General for National Security Mary B. McCord and Acting U.S. Attorney William E. Fitzpatrick made the announcement. The plea was entered before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court, Colon, a U.S. citizen, admitted that from June 30, 2015, to Aug. 14, 2015, he devised a plan to conduct an attack during the September 2015 papal visit in Philadelphia, Pennsylvania. The plot involved utilizing a sniper to shoot the Pope during his Papal mass and setting off explosive devices in the surrounding areas.
Colon engaged someone he believed would be the sniper, but in reality was an undercover FBI employee. Colon engaged in target reconnaissance with an FBI confidential source and instructed the source to purchase materials to make explosive devices. FBI agents arrested Colon in 2015.
Acting Assistant Attorney General McCord and Acting U.S. Attorney Fitzpatrick credited Special Agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent
in Charge Michael Harpster in Philadelphia, with the ongoing investigation leading to today’s guilty plea.
Colon faces a maximum of 15 years in prison and a fine of $250,000, or twice the gross amount of any financial gain or loss from the offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
No date has been set for sentencing.
This case is being prosecuted by Attorney in Charge R. Stephen Stigall of the Camden Branch Office of the U.S. Attorney’s Office for the District of New Jersey; Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office for the District of New Jersey; and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.