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27 March 2017
Maryland Man Found Guilty of Assaulting Man with Metal Pipe in Dispute at Northeast Washington Towing CompanyRead the Press Release
WASHINGTON – Dominic White, 30, of Lanham, Md., has been found guilty by a jury of charges for assaulting a man with a metal pole at a towing establishment in Northeast Washington. In addition, White and a co-defendant, Phanessa Haynes, 29, of Washington, D.C. were found guilty of charges of insurance fraud and conspiracy to commit insurance fraud.
The verdicts, which were returned March 24, 2017 in the Superior Court of the District of Columbia, were announced today by U.S. Attorney Channing D. Phillips. Both defendants are to be sentenced on May 24, 2017, by the Honorable Juliet McKenna.
According to the government’s evidence, on Nov. 4, 2014, at approximately 5 p.m., Haynes arrived at a towing company in the 1000 block of Kenilworth Avenue NE to pick up her car, which was getting its rims and tires replaced. She quickly noticed that the job wasn’t completed to her standards and became angry at the man who was doing the work. She called her boyfriend – White - multiple times expressing her frustrations.
White raced over and once arriving, picked up a metal pipe. Haynes pointed to the victim, and said, “That’s him, that’s the one.” White rushed to the victim and struck him with the metal pipe a couple of times, hitting and injuring him. He then dropped the pipe and fled. The victim’s head injuries required 18 staples and resulted in debilitating migraines for approximately a year. Following the attack, other employees at the towing shop called 911 and one gave a partial license tag of White’s car. White was later identified as the owner of a car with the same make and color described by witnesses, with a similar tag.
Further investigation showed that Haynes and White were involved with an insurance policy that was purchased by Haynes, which led to her car being at the towing establishment on the day of the assault. Soon after purchasing the policy, and making sure it covered tires and rims, Haynes filed a claim with the insurer for “stolen” rims.
White was arrested on March 30, 2015, and Haynes was arrested at the scene on Nov. 4, 2014.
In announcing the verdicts, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephen Rickard, Daniel Lenerz, Jocelyn Ballantine, Fernando Campoamor-Sanchez, Kathryn Rakoczy, and Opher Shweiki; Victim/Witness Advocate James Brennan; Paralegal Specialists Richard Cheatham, Debra McPherson, Crystal Waddy, and Tiffany Fogle; Criminal Investigator, Melissa Matthews; Litigation Technology Specialists, Josh Ellen and Leif Hickling; Investigative Analyst, Zachary McMenamin, and Computer Forensic Examiner; John Marsh.
Finally, he commended the work of Assistant U.S. Attorneys Karen Seifert and David Misler, who investigated and indicted the case, and Monica Trigoso and Alysa Kociuruba, who prosecuted the case.
Louisville Felon Sentenced to 97 Months in Prison for Multiple Drug and Firearms ChargesRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., today announced the 97-month sentence of a Louisville felon, for multiple charges including the sale and distribution of controlled substances; unlawful possession of firearms by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime, in United States District Court before District Judge David J. Hale. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky, law enforcement agencies, developed by the United States Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“Today’s sentencing takes a violent convicted felon off the streets of Louisville for eight years without the possibility of an early parole,” stated United States Attorney Kuhn. “Not only did this felon have multiple firearms and ammunition in his possession, he was dealing heroin and crack cocaine. Project Recoil is working. This joint effort has removed another violent drug dealer from our community.”
Demetric A. Flint, a/k/a Meechie, pleaded guilty to all counts of federal indictment on November 29, 2016. He also agreed to forfeit his interest in ammunition, $469.00 in United States currency, and firearms including a SigSauer Model P232, .380 Caliber pistol, a Hi-Point Model JHP45, .45 caliber pistol, and a Browning Citori 12 gauge shotgun seized at the time of his arrest.
According to court records, on October 19, 2015, law enforcement officials conducted a controlled purchase of heroin from Demetric Flint – using a confidential informant. Following the controlled purchase, law enforcement officials obtained and executed a Kentucky state search warrant at Flint’s residence on East Ormsby Avenue, the address where the controlled purchase had occurred. No one was at home. The law enforcement officials forced entry and seized suspected methamphetamine, a Sig Sauer Model P232, .380 caliber pistol, and Kentucky identification card for Flint, United States currency, a 50-gram weight digital scale, suspected heroin, and marijuana. Later, law enforcement officials found Flint at his child’s mother’s residence on South Jackson Street. While speaking with the woman, officers saw Flint walk from hallway to the living room and arrested him. At the time of his arrest, Flint was in possession of $469.00 United States currency. The woman gave written consent for a search of her residence. The search resulted in seizure of suspected crack cocaine, prescription pills, digital scale, box of baking soda, items with suspected residue of crack cocaine, 12 gauge and 45 caliber ammunition, marijuana, a Hi-Point .45 caliber pistol, and a Browning Citori 12 gauge shotgun.
During a post-Miranda, signed waiver, statement by Flint, he admitted the items seized from both the Ormsby and South Jackson addresses were his. He admitted selling “hard” (i.e., crack cocaine), and heroin. During the interview, Flint admitted that he had crack cocaine and heroin secreted on his body.
On or about May 31, 2012, in Jefferson Circuit Court case number 11-CR-3685, Flint was convicted of trafficking in a controlled substance first degree, tampering with physical evidence, and trafficking in a controlled substance second degree, crimes punishable by imprisonment for more than one year.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Louisville Metro Police Department and United States Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Local Senior Home Health Caregiver Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
St. Louis, MO – De’Janay Noldon pled guilty to charges of mail fraud and identity theft. Noldon appeared today before United States District Judge Henry E. Autrey.
According to court documents, between February 2016 and May 2016, Noldon was employed as a certified nurse’s assistant caregiver with Seniors Health Care (SHC) in Webster Groves, Missouri. Noldon used her position as a caregiver to gain access to an elderly victim’s personal information and used the victim’s personal identification information to obtain open lines of credit that Noldon used to purchase merchandise at stores, make online purchases, and pay personal bills for Noldon and her family and friends. Noldon also fraudulently accessed an Edward Jones account belonging to that victim and initiated several money transfers in an attempt to steal the victim’s savings. The investigation has thus far revealed that Noldon defrauded 13 elderly individuals and six financial institutions. The total loss amount is approximately $30,000.00.
Noldon, St. Louis County, pled guilty to one count of mail fraud and one count of aggravated identity theft. Sentencing has been set for June 27, 2017.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000 and aggravated identity theft carries a two year mandatory consecutive to any other term of imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the U.S. Postal Inspection Service and the Shrewsbury Police Department. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
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Knoxville Man Sentenced to Ten Years in Prison for Sex Trafficking Conspiracy and Related Drug OffensesRead the Press Release
U.S. District Court Judge R. Leon Jordan of the Eastern District of Tennessee sentenced Marcus D. Washington today to 10 years in prison followed by 3 years of supervised release. Washington pleaded guilty on November 21, 2016, to one count of conspiracy to commit commercial sex trafficking by force, fraud, or coercion in violation of 18 U.S.C. § 1594(c), conspiracy to possess with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C §§ 846, 841(a)(1) and (b)(1)(C), and possession with intent to distribute a Schedule II controlled substance in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C).
According to court documents, on September 25, 2013, Knox County Sherriff Deputies arrested Washington after he arranged for a woman to meet an undercover law enforcement officer in a hotel for commercial sex. Police seized Oxycodone from Washington at the time of his arrest. A subsequent investigation revealed that Washington recruited the woman to engage in prostitution, knowing that she was addicted to Oxycodone and that she feared withdrawal sickness. In the weeks prior to his arrest, Washington threatened to – and did in fact – withhold Oxycodone from the woman as a means to compel to her to prostitute for his profit. Washington kept all of the money from the prostitution. In addition to manipulating her addiction and fear of withdrawal symptoms, Washington assaulted and threatened physical harm against the woman.
“Opiate addiction exists in every corner of this country,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This defendant used an addicted woman’s fear of opiate withdrawal as his weapon of coercion – all for his own profit.”
“Today’s sentencing demonstrates that the FBI will identify, investigate, and prosecute those who commit human trafficking violations wherein force, fraud and coercion is used for personal profit,” said FBI Knoxville Special Agent in Charge Renae McDermott.
The Court ordered Washington to pay nearly $14,000 in restitution to two victims referenced in the plea agreement.
This case was investigated by the FBI. The case was prosecuted by Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit and Trial Attorneys Rose E. Gibson and Nicholas Durham of the Civil Rights Division.
KC Man Pleads Guilty to Meth Conspiracy in Mid-MissouriRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine in mid-Missouri.
David Wayne Lederhos, 54, of Kansas City, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a March 17, 2016, federal indictment.
By pleading guilty today, Lederhos admitted that he participated in a conspiracy to distribute methamphetamine from November 2015 to Feb. 10, 2016.
According to today’s plea agreement, a cooperating individual made a controlled purchase of approximately two ounces of methamphetamine from Lederhos on Feb. 4, 2016. Law enforcement officers executed a search warrant at Lederhos’s residence on Feb. 10, 2016. They found a Ziploc bag that contained eight separate baggies, each of which contained methamphetamine, for a total of 364 grams of methamphetamine. Officers also found a loaded Beretta 12-gauge shotgun, drug paraphernalia and approximately 19 grams of marijuana in the bedroom.
Lederhos told investigators that he had purchased one pound of methamphetamine the previous day for $8,000. He also stated that he purchased approximately one or two pounds of methamphetamine every day or every other day over a four-month period of time.
Under the terms of today’s plea agreement, Lederhos is subject to a sentence of 13 years in federal prison without parole. 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 Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Drug Enforcement Administration, the Jackson County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department and the East Central Drug Task Force.
Judge Sentences Zambelli Fireworks Company for Failing to Report Loss of Explosive MaterialRead the Press Release
PITTSBURGH – A corporation based out of New Castle, Pennsylvania pleaded guilty and was sentenced in federal court on a charge of Failure to Report Loss of Explosive Material, Acting United States Attorney Soo C. Song announced today.
Zambelli Fireworks Manufacturing Company, Inc. pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that, Zambelli was licensed by the federal government as an importer and manufacturer of explosive fireworks. Federal regulations require such licensees to make and keep accurate records relating to their inventories of explosive materials. Licensees must also subject themselves to inspections by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). In 2014, ATF conducted inspections of Zambelli’s business premises and inventories of explosives, at which time they found discrepancies between the actual inventories and Zambelli’s inventory records. In particular, ATF found that Zambelli had approximately 63,000 less units of explosives than was reflected in their inventories.
Consequently, Zambelli was charged with, and pleaded guilty to one count of knowingly failing to notify the United States Government of lost or missing explosive materials.
Pursuant to the terms of a plea agreement, Zambelli will pay a fine of $5,000 and, in addition, will forfeit $195,000 to the United States Government as part of the sentence for this violation. Those plea terms were approved by Judge Cercone, who imposed that sentence at the conclusion of the hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Zambelli Fireworks Manufacturing Company, Inc.
Jewelry Store Owners Sentenced for Roles in International, $200 Million Credit Card Fraud SchemeRead the Press Release
TRENTON, N.J. – The two owners of a New Jersey jewelry store who used the business to further one of the largest credit card fraud schemes ever charged by the Justice Department were both sentenced today for their respective roles in the scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Vijay Verma, 49, and Tarsem Lal, 78, both of Iselin, New Jersey, were sentenced to 14 months in prison and 12 months of home confinement, respectively. Both previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to informations charging them with one count of access device fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Verma and Lal were indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma and Lal each admitted allowing others who came to their Jersey City, New Jersey, store, store to swipe cards they knew did not legitimately belong to them. Verma and Lal would then split the proceeds of the phony transactions with these other conspirators.
In addition to the prison terms, Judge Thompson sentenced Verma to three years of supervised release and Lal to three years of probation. Each defendant was fined $5,000 and ordered to pay forfeiture of $451,259.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher; postal inspectors from the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencings. He also thanked the U.S. Social Security Administration Office of Inspector General, Office of Investigations in New Jersey for assisting in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel:
Verma: Gerald Krovatin Esq., Newark
Lal: Paul Condon Esq., Jersey City, New Jersey
Jacksonville Woman Pleads Guilty to Smuggling Mexican National into the United States for Purposes of Forced Labor and SurrogacyRead the Press Release
Jacksonville, FL – Acting United States Attorney W. Stephen Muldrow announces that Esthela Clark (47, Jacksonville) today pleaded guilty to a charge of forced labor. She faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Clark paid so-called “coyotes” approximately $3,000 to smuggle a woman from Mexico into the United States for the purpose of serving as her pregnancy surrogate. Clark assured her victim that the surrogacy would be medically supervised. Clark instead forced her victim to engage in domestic labor through physical and psychological abuse. She attempted to impregnate the victim using syringes containing Clark’s boyfriend’s sperm that she had retrieved from used condoms. The attempts at insemination lasted approximately nine months, however, no pregnancy resulted.
Clark isolated the victim from her family and limited her to a diet consisting exclusively of beans, resulting in a 65-pound weight loss. She also attempted to collect from the victim’s family the cost she had paid to the “coyotes,” with interest.
This case was investigated by U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Huntington woman pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman who was caught with heroin in 2016 pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Ashley Dawn Smith, 24, entered her guilty plea to possession with intent to distribute heroin.
On March 30, 2016, agents with the Huntington FBI Drug Task Force executed a search warrant at Smith’s residence located at 1814 7th Avenue in Huntington. When agents entered the residence, Smith concealed approximately 45 grams of heroin on her person. During the search, agents recovered a loaded 9mm pistol, digital scales, inositol powder used to cut heroin for distribution, and a magic bullet blender used to mix heroin. Smith was arrested based on a warrant from Putnam County and then transported to the Huntington Police Department, where she provided agents with the heroin that she had hidden.
Smith faces up to 20 years in federal prison when she is sentenced on June 26, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as 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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Hollywood Resident Sentenced to 30 Years in Federal Prison for Attempting to Entice a Child to Engage in Sexual ActivityRead the Press Release
Patrick Antczak, 25, of Hollywood, Florida, was sentenced today to 30 years in prison by U.S. District Court Judge Robert N. Scola Jr in Miami, after having been convicted at trial of attempting to entice a child to engage in sexual activity.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, and Sheriff Scott Israel, Broward County Sheriff’s Office, made the announcement.
On January 11, 2017, a jury convicted Defendant Antczak of attempted enticement of a child. According to the court record, including trial evidence, Antczak contacted an undercover agent, in an on-line forum, regarding a meeting with a father and his minor daughter for the purposes of engaging in sexual conduct with the child. Upon making contact with the undercover, whom the defendant believed was the child’s father, he asked the age of the child and provided graphic details of his intended sexual abuse of the minor. The defendant exchanged over 500 text messages. During his chats with the child, the defendant promised that he would bring her an iTunes gift card when they met in person. The defendant arranged to meet the father and his minor daughter at a hotel in Broward County and arrived carrying the gift card and a condom.
Evidence at trial also included the defendant’s prior obscenity conviction for the exchange of child pornography.
Mr. Greenberg commended the investigative efforts of the FBI and the Broward County Sheriff’s Office and thanked the FBI Child Exploitation Task Force for their assistance. Assistant U.S. Attorneys Francis Viamontes and M. Catherine Koontz prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Holland, PA Woman Charged with Wire FraudRead the Press Release
Antoinette Murphy a/k/a “Antoinette Barcalow,” 48 of Holland, Pennsylvania, was charged today by Information[1] with two counts of wire fraud, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant, faces a maximum possible sentence of 40 years imprisonment, a $500,000 fine, three years supervised release, and a $200 special assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Henderson Man Sentenced for Two Counts of Possession of A Firearm by A FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Louise W. Flanagan sentenced ISMIL GRAY JEFFERS, 23, of Henderson, NC to 140 months of imprisonment followed by 3 years of supervised release.
JEFFERS pled guilty on November 15, 2016 to being a Felon in Possession of a Firearm.
On September 22, 2015, the Vance County Sheriff’s Office responded to a disturbance complaint. Upon arriving at the scene, officers found JEFFERS in the bathroom of Auto Connection Used Auto Sales and subsequently conducted a search of his vehicle where a firearm and controlled substances were found. On October 19, 2015, members of the Henderson Police Department conducted a checkpoint traffic stop in which JEFFERS was a passenger in a vehicle. The vehicle pulled away from the checkpoint causing an officer to pursue. The vehicle stopped a short distance later and JEFFERS, a convicted felon, was observed throwing a handgun into a grassy area.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Henderson Police Department Police Department, the Vance County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Georgia Man Pleads Guilty to ID Theft, Tax Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Loganville, Ga., man pleaded guilty in federal court today to a fraud scheme in which he stole personal identity information from several victims in order to file fraudulent federal income tax returns.
Chike Uzodinma Agogbua, 44, of Loganville, a Nigerian national and a naturalized U.S. citizen, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charges contained in a Feb. 10, 2016, superseding indictment.
According to today’s plea agreement, federal investigators obtained bank records in 2013, which reflected that federal tax refunds for five different taxpayers were deposited into Agogbua’s bank accounts. Numerous federal tax refunds were deposited into two separate bank accounts from September through November 2013.
By pleading guilty today, Agogbua admitted that he stole the identity information of a victim identified as “TMP,” a resident of Guam, including her name and Social Security number. Agogbua used that information to file federal income tax returns.
Fraudulent federal income tax refunds, which were electronically sent from the IRS Financial Center in Kansas City, Mo., and direct-deposited into Agogbua’s bank accounts, totaled $59,610.
Under federal statutes, Agogbua is subject to a sentence of up to 20 years in federal prison without parole on the wire fraud count. Agogbua is also subject to a two-year mandatory minimum sentence on the identity theft count, which must be served consecutively. 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 Jim Lynn. It was investigated by the FBI and IRS-Criminal Investigation.
Gary’s Steals and Deals Clerk Pleads Guilty in Money Laundering SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Cresson, Pa. pleaded guilty in federal court in Johnstown to a charge of conspiring to commit money laundering, Acting United States Attorney Soo C. Song announced today.
Jason A. Seymore, 41, of Cresson, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
Gary and Tonia Vaughn were the owners and operators of Gary’s Steals and Deals, a business located in Portage, Pennsylvania, that dealt in new and used merchandise. Mr. Seymore was an employee/clerk at the business. The way the business operated was for “customers” to come to the store with new stolen items of merchandise (the great majority of which were still in the package from local stores) and present it for purchase by Gary’s. The store clerks, knowing the merchandise was stolen, would then give a percentage of the value for the new stolen items to the “customer.” The great majority of this business involved the same “customers” bringing in dozens of identical, “new in package” stolen items (i.e., razor blades, pet products, teeth whitening strips, ink cartridges, jackets, Lego sets, etc.) on the same day or subsequent days, which were purchased by Gary’s Steals and Deals. The stolen new merchandise was then listed for sale on Ebay or Amazon. Once purchased, the stolen merchandise was then shipped to the purchaser via use of the mail. The money received from the sale of the stolen merchandise over the internet was used to either purchase new stolen items from “customers” coming into the store, or was received by the employees as proceeds of this conduct.
Judge Gibson scheduled sentencing for Aug. 1, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $500,000, 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 U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation that led to the prosecution of Seymore.
Former Middle School Teacher Sentenced to More Than 11 Years in Prison for Attempting to Purchase Live Video Sex Shows Involving Filipino ChildrenRead the Press Release
BOSTON – A former Southbridge Middle School teacher was sentenced today in U.S. District Court in Worcester in connection with attempting to purchase live video sex shows involving Filipino children and to possessing child pornography.
Scott Peeler, 54, who previously resided in Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 138 months in prison and 10 years of supervised release. In November 2016, he pleaded guilty to three counts of attempting to entice a minor to engage in unlawful sexual conduct and one count of possession of child pornography. Peeler has been in custody since his arrest in June 2015.
Between April 2013 and July 2014, Peeler used internet-based instant messaging with video streaming capabilities to communicate with individuals in the Philippines engaged in child sex trafficking and the sale of live streaming sex shows involving children. Peeler admitted to attempting on at least three occasions to arrange the purchase of live video sex shows involving children who ranged in age from four to fourteen years old.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Worcester County District Attorney Joseph D. Early, Jr.; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent, made the announcement today. Assistant U.S. Attorney Mark Grady of Weinreb’s Worcester Branch Office prosecuted the case.
This case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Fedex Driver Who Set up Fake Hedge Fund Sentenced to 33 MonthsRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – March 27, 2017
SAN DIEGO – Joshua Knaup, the founder and chief investment officer of EquityPro Capital, was sentenced Friday to 33 months in prison and ordered to pay $556,629 in restitution for stealing over half a million dollars from local investors.
In addressing Knaup, U.S. District Judge Cathy Ann Bencivengo said, “You didn’t steal from a stranger, you stole as a friend, and in this court’s opinion that’s even worse. That’s a theft that goes right to the heart and soul and stays with the victim for a very long time.” Knaup was remanded into custody at the conclusion of the hearing.
After losing his job as a FedEx driver, Knaup opened up EquityPro Capital, an investment management firm based in downtown San Diego. Near the end of 2013, Knaup falsely claimed to have established a new hedge fund and began soliciting investors. Knaup gave potential investors a prospectus that provided detailed information about his purported hedge fund, which Knaup called “The F2 Fund.” According to the prospectus, The F2 Fund derived its name “from a passage in the Bible about giving of the ‘First Fruits’ of your income.” In order to attract investors, Knaup guaranteed that investors would receive a certain return on their investment and falsely claimed to have invested his own money in the hedge fund.
According to court documents, Knaup conned victims into giving him hundreds of thousands of dollars. Knaup ingratiated himself with Lois and Henry Mathews, who live in Bankers Hill, while attending their 45th wedding anniversary celebration. Knaup promised to help Ms. Mathews retire and claimed that her $240,000 investment would be safe. Instead, Ms. Mathews, a small-business owner, lost it all. As she wrote to the court, “I am 72 years old and work very hard in a very physical and stressful business and I will have to continue to work this hard for the rest of my life because of what Josh [Knaup] stole from us.”
Knaup met another victim, Lewis Barnum from Coronado, at a Rotary Club meeting. Knaup boasted about his success in the stock market and promised a substantial return. Barnum ultimately lost over $130,000 to Knaup. Yet another victim met Knaup on the side of a freeway while changing a tire. Knaup talked a lot about his investment company, and the victim, a Border Patrol agent, decided to invest $10,000. When the victim told he was about to have a child and needed his money, Knaup wrote him a $10,000 check that bounced.
With the thousands of dollars he stole from investors, Knaup rented prime office space in a building near Petco Park. Inside the office, Knaup created a wall using 30 flat screen televisions that displayed stock trading information—a fact that duped investors would later mention as an apparent sign of the business’ legitimacy. Knaup even threw a party for the investors at the Hotel Indigo with sushi, an open bar and gift bags.
Despite these outward indications of success, The F2 Fund did not exist. Knaup had not even opened a brokerage account for the investors’ funds. Investors ultimately poured over half a million dollars into the non-existent hedge fund. Knaup did not invest a single dollar of investors’ funds, and instead used the money for personal and business purchases. In the fall of 2014, Knaup’s business began to unravel as investors realized that Knaup had not invested their money. Knaup fled to Mexico shortly thereafter, without ever repaying the victims he had defrauded.
“Mr. Knaup perpetrated a scheme weaved with facades and lies to prey on trusting, hard-working people intending to make legitimate investments," said Special Agent in Charge Eric S. Birnbaum. “Today's sentence will prevent Mr. Knaup from victimizing investors for a long while and serve as a reminder that the FBI will continue to protect the American public by pursuing fraudsters and bringing them to justice.”
DEFENDANT: Case Number 16-CR-560-CAB
Joshua Knaup Age: 41 Santa Rosa, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Former Chairman of the Board of Payroll Services Company Sentenced to 30 Months for ConspiracyRead the Press Release
STATESVILLE, N.C. – Frank Alton Moody, II, 57, of Arden, N.C., the former Chairman of the Board of a payroll services company, was sentenced today to 30 months in prison for conspiring to steal over $2 million from client companies, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Moody was ordered to spend two years under court supervision after he is released from prison and to pay $2,146,380.97 as restitution.
Two of Moody’s conspirators, Jerry Wayne Overcash and John Bernard Thigpen, were previously sentenced to 46 and 21 months, respectively, for their roles in the conspiracy.
U.S. Attorney Rose is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, Moody was the Chairman of the Board of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume business operations of The Resource Solutions Group (TRSG). Court documents in related cases indicate that, similar to CenterCede, TRSG had been a payroll services company until it was shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients. Moody served as Chairman of the Board at TRSG.
According to court documents, from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among others, as well as fees due to CenterCede. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines.
According to court records, Moody and his conspirators did not remit to the IRS the full tax liabilities of CenterCede’s clients. Instead, the conspirators diverted client funds, which were used to pay the exorbitant salaries of Moody, Overcash and others, and to cover CenterCede’s growing liabilities.
To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients. As reflected in court documents, the conspirators favored what they called “priority” clients, attempted to keep those priority clients from learning about monthly cash shortfalls and frequently paid those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and keep the scheme afloat.
Court records show that when clients inquired about failures to pay obligations, the conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. Moody pleaded guilty to one count of conspiracy in October 2016.
Moody will be ordered to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor J. Phillips, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former CSX Trans Employee Pleads Guilty to Benefits Fraud Against U.S. Railroad Retirement BoardRead the Press Release
GREENEVILLE, Tenn. – On Mar. 27, 2017, George W. Myers, 59, of Telford, Tenn., pleaded guilty to an information charging him with one count of theft of public money in connection with benefits fraud he perpetrated against the U.S. Railroad Retirement Board (RRB). The fraudulently obtained benefits totaled approximately $362,741, consisting of $327,737 in annuity payments and $35,004 in health benefits.
Sentencing was set for 9:00 a.m., July 10, 2017, in U.S. District Court in Greeneville. Myers faces a maximum sentence of 10 years in prison and a maximum $250,000 fine, and restitution.
According to his plea agreement on file with U.S. District Court, from October 1978 until August 2000, CSX Trans employed Myers as a welder. Myers stopped work, claiming to be disabled, and completed and signed an initial application for disability in December 2000. Between December 2000 and April 2007, he received intermittent disability payments while the application was the subject of litigation. In April 2007, following numerous denials and subsequent appeals, he was finally awarded ongoing disability payments retroactive to July 2004 and Medicare coverage retroactive to January 2007. He continued to receive full annuity payments and Medicare coverage from July 2004 through September 2016.
Including the initial disability application, Myers signed forms on multiple occasions indicating that he understood that failing to report work and earnings promptly was a crime punishable by federal law and could result in criminal prosecution and/or penalty deductions from his annuity payments. Despite this, he submitted disability update reports on which he falsely represented that he had not worked for anyone or for himself and his medical condition kept him from working. In fact, in February 2006, Myers indicated that he: a) was not at all able to dress himself; b) was not at all able to perform outdoor chores; c) did not expect to work during the next 12 months; and d) had not been self-employed in the last 12 months. However, in his plea agreement, Myers admitted to working for various people and companies between August 2004 and October 2016. Some of the work included performing physically demanding contracting, repair, and maintenance work for at least two individuals who compensated him approximately $58,612 for his work.
The Railroad Retirement Board, Office of the Inspector General conducted this investigation. Assistant U.S. Attorney TJ Harker represented the United States.
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Former Brooklyn Assistant District Attorney Charged with Illegally Wiretapping Cellular TelephonesRead the Press Release
A two-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Tara Lenich, a former supervisory Assistant District Attorney with the Kings County District Attorney’s Office (KCDA), with illegally intercepting oral and electronic communications occurring over two cellular telephones. The defendant is scheduled to be arraigned before United States Magistrate Judge Vera M. Scanlon at the Brooklyn federal courthouse this afternoon.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the indictment, for nearly 16 months between approximately June 2015 and November 2016, Lenich created fraudulent judicial orders as part of her illegal wiretapping scheme. Specifically, she forged the signatures of multiple New York State judges onto the illicitly created judicial orders -- orders that purportedly authorized the KCDA to intercept communications occurring over two cellular telephones. Lenich then misappropriated KCDA equipment to intercept, monitor, and record the communications to and from the two cellular telephones. In furtherance of her scheme, Lenich also created fraudulent search warrants, which she then used to unlawfully obtain text messages relating to the two cellular telephones.
“Tara Lenich violated her duty to the public when she engaged in a long-running scheme to forge judicial documents in order to illegally wiretap telephones,” stated Acting United States Attorney Rohde. “Lenich’s prosecution reflects the Office’s commitment to protecting the public from the misuse of law enforcement tools, particularly by those entrusted to use those tools in accordance with the laws they have sworn to uphold.” In announcing the indictment, Ms. Rohde thanked the Kings County District Attorney’s Office for their cooperation.
“In this case, as alleged, Lenich's illegal wiretapping scheme demonstrates an abuse of power that won't be tolerated within our criminal justice system. Unfortunately, sometimes those close to the law stray far from the truth. As demonstrated today, however, everyone is expected to play by the rules; for this we'll make no exceptions,” stated Assistant Director-in-Charge Sweeney.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to five years’ imprisonment on each count.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
TARA LENICH
Age: 41
New York, NYE.D.N.Y. Docket No. 17-CR-154
Former Bosnian Army Prison Guard Sentenced to 18 Months in Prison for Fraudulently Procuring U.S. CitizenshipRead the Press Release
A Jacksonville, Florida man was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida.
Slobo Maric, 56, was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked. On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.
Former Bosnian Army Prison Guard Sentenced to 18 Months in Prison for Fraudulently Procuring U.S. CitizenshipRead the Press Release
Jacksonville, FL – Slobo Maric (56, Jacksonville) was sentenced today to 18 months in prison for unlawfully procuring U.S. citizenship by failing to disclose during his naturalization process his membership in the Bosnian Army and crimes that he committed in Bosnia and Herzegovina during the Bosnian Conflict in the 1990s, announced Acting U.S. Attorney W. Stephen Muldrow and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Maric was sentenced today by U.S. District Judge Marcia Morales Howard of the Middle District of Florida who also ordered his U.S. citizenship revoked. On July 18, 2016, Maric pleaded guilty before U.S. Magistrate Judge James R. Klindt of the Middle District of Florida to one count of unlawful procurement of naturalization.
According to the plea agreement, in 1993, Maric served as a shift leader, the second in command to the warden, of a detention facility in Bosnia that housed captured Bosnian-Croat soldiers. Many of the guards in the facility routinely subjected detainees to serious physical abuse and humiliation. According to the plea agreement, Maric selected detainees for other guards to abuse; directly participated in abusing several prisoners; and sent prisoners on dangerous and deadly work details on the front line of the conflict. The Bosnian government charged Maric for his criminal conduct and, after Maric immigrated to the United States, Bosnia indicted and convicted Maric in absentia for war crimes against prisoners. According to the plea agreement, Maric knew about the Bosnian court proceedings, yet he failed to disclose the proceedings and lied about his conduct on his application for U.S. citizenship. Maric became a naturalized U.S. citizen on Oct. 31, 2002.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Jacksonville Field Office investigated the case under the supervision of the HSI Tampa Field Office with support from ICE’s Human Rights Violators and War Crimes Center.
Trial Attorney Clayton O’Connor and Historian David Rich of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Dale Campion of the Middle District of Florida prosecuted the case.
Former Bakersfield Union Officer Pleads Guilty to EmbezzlementRead the Press Release
BAKERSFIELD, Calif. — Edward Padilla, 56, of Bakersfield, pleaded guilty today to embezzlement of union funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2012 and December 31, 2014, while Padilla was the secretary-treasurer and business manager of the Bakersfield office of a construction workers’ union, he embezzled approximately $168,780 from the union. He did this by writing unearned salary checks, unauthorized sick leave payments, and paying for personal expenditures on his union credit cards. Padilla used a signature stamp for the union president’s signature on the unauthorized checks and concealed the checks from the president. As part of the plea agreement, Padilla has agreed to pay $168,780 in restitution to the union.
This case is the product of an investigation by the United States Department of Labor. Assistant United States Attorney Angela Scott is prosecuting the case.
Padilla is scheduled to be sentenced by Judge Lawrence J. O'Neill on July 10, 2017, at 10:00 a.m. Padilla faces a maximum statutory penalty of five years in prison and a $10,000 fine. Any sentence, however, would 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.
Florida Man Ordered to Pay over $1.1 Million in Restitution to Victims of Sex Trafficking and Interstate Prostitution SchemeRead the Press Release
U.S. District Judge Carlos E. Mendoza of the Middle District of Florida today ordered defendant Abdullah Hamidullah, 43, to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced the defendant to serve 482 months’ imprisonment and a lifetime of supervised release. On June 17, 2016, the defendant pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.
At the Feb. 24, 2017 sentencing hearing, the court made detailed findings, noting that the defendant engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which the defendant perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”
“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow of the Middle District of Florida. “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Florida Man Ordered to Pay over $1.1 Million in Restitution to Victims of Sex Trafficking and Interstate Prostitution SchemeRead the Press Release
Defendant Previously Sentenced to Over 40 Years’ Imprisonment Ordered to Pay Restitution to Six Victims of Interstate Sex Trafficking and Prostitution Enterprise
Orlando, FL - U.S. District Judge Carlos E. Mendoza today ordered Abdullah Hamidullah (43) to pay $1,179,000.00 in restitution to six victims of his sex trafficking and interstate prostitution enterprise, the Justice Department announced. Last month, the court sentenced Hamidullah to serve 482 months’ imprisonment and a lifetime of supervised release. On June 17, 2016, he pleaded guilty to sex trafficking by force, fraud, and coercion and related interstate prostitution violations, and agreed as a term of his plea agreement to pay restitution to six victims identified in the indictment.
At the Feb. 23, 2017, sentencing hearing, the court made detailed findings, noting that Hamidullah engaged in “fraud and deception to lure young women” whom he then “enslaved … using violence and intimidation and permanently branding them as [his] property.” The court cited violent physical and sexual assaults which Hamidullah perpetrated “out of greed,” demonstrating the capacity to “view these women as nothing more than property.” In imposing the sentence, the court emphasized that, “these women will carry the scars of their enslavement with memories of your brutality, the manner in which you branded them as your property, and with the fact that you forced them to engage in countless sexual encounters with total strangers for you own profit.”
“Victims of sex trafficking can never be truly compensated for the horrors that they have endured,” said Acting U.S. Attorney W. Stephen Muldrow. “However, our Office is firmly committed to seeking restitution in these cases to help victims transition to normal lives.”
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Trafficking Victims Protection Act requires traffickers to pay restitution to their victims, with good reason. Restitution compels traffickers to relinquish the proceeds of their crimes, and helps restore victims to lives of independence and freedom. We will continue to pursue restitution as an integral part of our efforts to seek justice on behalf of victims of human trafficking.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Orlando-based Metropolitan Bureau of Investigations, and was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda of the Middle District of Florida, and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Final Defendant Sentenced in Murder, Racketeering CaseRead the Press Release
COLUMBUS, Ohio – The last of 20 defendants in a gang-related racketeering and murder case received his sentence today in U.S. District Court.
Lance Green, 37, formerly of Columbus, was sentenced to 17 years in prison. He pleaded guilty in June before his slated trial in July to one count of racketeering conspiracy and two counts of murder in aid of racketeering.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentences handed down by U.S. District Judge Algenon Marbley.
The 20 individuals, associated with the Short North Posse’s “Cut Throat Committee,” were indicted in October 2014 in a racketeering case, with charges that include 14 previously unsolved murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery. Of the 20 total defendants, six were convicted at trial, 13 pleaded guilty and one has died.
Their sentences range from seven years in prison to multiple life terms with no chance of parole. One of the group’s “bosses,” Robert Ledbetter, was sentenced to several consecutive life sentences last week.
“Let this serve as a clear message that if you terrorize our streets with violence you will spend significant time in federal prison, and for the six men in this case who were convicted at trial, they’ll be spending the rest of their lives there,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Dallas Baldwin's Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who represented the United States in these cases.
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Ecuadoran Brothers Indicted for Heroin Distribution and Money Laundering ConspiracyRead the Press Release
Two Ecuadoran brothers are indicted in the Western District of Washington for ten felony counts related to distribution of heroin and laundering the proceeds of their drug sales, announced U.S. Attorney Annette L. Hayes. FREDY RAMON GUTAMA-GUTAMA, 25, and FABIAN MARTIN GUTAMA-GUTAMA, 20, both of Lynnwood, Washington, were observed by law enforcement between May 2016 and January 2017 making drug sales near various parks in north Seattle and hiding their drug supply in various public locations. The men will make their initial appearance on the indictment in Seattle today.
“Heroin is wreaking havoc across every kind of community in western Washington– rural, suburban and urban,” said U.S. Attorney Annette L. Hayes. “In this case, the defendants were peddling this devastating drug in and around public parks in North Seattle and elsewhere. The investigation uncovered the fact that the defendants–in an apparent effort to shield themselves from arrest–stored significant quantities of their heroin supply in public places near parks where they operated.”
According to records filed in the case, the defendants repeatedly sold heroin to a person working with law enforcement and sent the cash proceeds both across the country and to Ecuador. While under law enforcement surveillance, the conspirators stashed some of their drugs in a rockery in the Roosevelt neighborhood of north Seattle that was very near the park and children’s playground at the Ravenna-Eckstein Community Center. Law enforcement seized the drugs. The conspirators were also observed making drug sales at Green Lake Park and in Northacres Park. The men hid their drugs in a public place to reduce their risk of being caught by law enforcement with significant quantities of heroin in their possession.
FREDY RAMON GUTAMA-GUTAMA is charged in all ten counts: conspiracy to distribute heroin; conspiracy to commit money laundering; five counts of distribution of heroin; and three counts of distribution of heroin with intent to distribute. FABIAN MARTIN GUTAMA-GUTAMA is charged in both conspiracy counts and in three counts of distribution of heroin and two counts of possession of heroin with intent to distribute.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Sarah Vogel and Kate Vaughan.
Durant Woman Pleads Guilty to Theft of Public MoniesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JADE BELINDA ADAMS, age 33, of Durant, Oklahoma, pled guilty to THEFT OF PUBLIC MONIES, in violation of Title 18, United States Code, Section 641, punishable by not more than 10 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about September 2012 to on or about November 30, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly steal and purloin monies in excess of $1,000.00 belonging to the United States.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, 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 Edward Snow represented the United States.
Dunbar Man Sentenced to Ten Years for His Second Child Pornography OffenseRead the Press Release
Acting United States Attorney Robert C. Stuart announced that Scott Wellensiek, 43, of Dunbar, Nebraska, was sentenced in federal court in Omaha for possessing child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Wellensiek to 10 years of imprisonment. There is no parole in the federal system. After his release from prison, Wellensiek will begin a 15-year term of supervised release.
Wellensiek was previously convicted of possessing child pornography in federal court in Wyoming. He was sentenced to 7 days of imprisonment to be followed by a 10-year term of supervised release. While on supervised release, he moved to Dunbar, Nebraska.
In September 2016, investigators with the Nebraska Attorney General’s Office downloaded images of child pornography from a computer at Wellensiek’s residence. A search warrant was executed on October 3, 2016. Wellensiek admitted to downloading child pornography while on supervised release for a child pornography offense. He deleted the child pornography after downloading and viewing. The images downloaded by law enforcement from Wellensiek’s computer involved prepubescent children engaged in sexual activity with adults.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who was part of a group selling heroin in Huntington in 2015 pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Corey Lebron Blevins, 24, entered his guilty plea to possession with intent to distribute 100 grams or more of heroin.
Between July and October of 2015, Blevins and others distributed heroin that was transported from Michigan to the Huntington area. On July 9, 2015, the Huntington FBI Drug Task Force executed a search warrant at 126 Olive Street in Huntington. Agents located Blevins and another individual in the residence. Agents also seized over $6,000 in cash and an AR-style pistol that Blevins admitted he possessed. On October 5, 2015, the Huntington FBI Drug Task Force conducted another search at 1826 Old 16th Street Road in Huntington. Agents again located Blevins inside the residence, as well as two other individuals. During the search, agents seized over 300 grams of heroin and over $51,000 in cash. Blevins admitted that he and the other individuals intended to sell the heroin.
Blevins faces at least five and up to 40 years in federal prison when he is sentenced on June 26, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as 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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Defendant Linked to Murder of Seaside Police Sergeant Sentenced to 12 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Monday, March 27, 2017, Jamie Lee Jones, 45, a former resident of Nevada, was sentenced to twelve years in federal prison by U.S. District Court Judge Michael H. Simon. Jones had previously pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Jones was living in Seaside, Oregon in early February 2016 during the time of the alleged offenses.
Jones’s federal charges stemmed from a multi-agency investigation tracing the firearm used in the February 5, 2016 homicide of Seaside Police Sergeant Jason Goodding. On the evening of February 5, Seaside resident Phil Ferry shot and killed Sergeant Goodding using a .380 caliber Davis P380 pistol. During the shootout, another Seaside officer shot and killed Ferry. ATF agents worked with local law enforcement officers to investigate how Ferry had obtained the .380 caliber pistol. Their investigation ultimately led to Jones.
"The tragic and senseless death of Sergeant Gooding underscores the very real danger law enforcement officers face every day while faithfully serving their communities," said Billy J. Williams, United States Attorney for the District of Oregon. "We owe a tremendous debt of gratitude to Sergeant Goodding for his service and his loved ones for their incredible sacrifice. It is maddening to know that criminals involved in drug trafficking and the illegal possession of firearms continue to present a danger to our communities. I want to thank ATF and the local law enforcement agencies who pursued this investigation," continued U.S. Attorney Williams. "We will continue to work with our local, state, tribal and federal law enforcement partners to identify the most effective legal venue (federal or state) to ensure an appropriate penalty for these types of offenders. It is our sincere hope that this sentence will offer some measure of justice – albeit small – to Sergeant Goodding’s family and the Seaside community."
"The murder of Sgt. Goodding was a tragedy. ATF is proud to have been able to work alongside our partner agencies to identify and bring Jamie Lee Jones to justice," said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. "The men and women of ATF work tirelessly to rid our communities of the scourge of violence and those criminals like Jamie Lee Jones, whose lawless actions contributed to the death of a law enforcement officer."
Interviews with informants and tips from the Seaside community indicated that Ferry stole one of two firearms Jones possessed while he was asleep at a local drug house. Jones was furious when he woke to discover that someone had stolen one of his firearms and his methamphetamine. Jones then punched a nearby drug customer, fired his second firearm in the direction of several other residents and warned them not to talk to police. Neighbors called police to report the shots fired, but all the guests and residents had fled prior to their arrival.
Investigators obtained search warrants for Jones’s Seaside apartment and vehicle and seized distribution quantities of methamphetamine, a digital scale, packaging material and two cell phones. Jones admitted he knew Ferry, and that he and Ferry had a disagreement about Ferry’s owing Jones a drug debt. Later, investigators obtained a search warrant to examine Jones’s phones where they found messages related to drug trafficking and sales.
In a message dated February 3, 2016, a customer advised Jones, "I’ll be by at five thirty with the pistol. Erase this text." Investigators identified this customer and interviewed him regarding the transfer of a firearm to Jones. The customer admitted to being a heroin addict and to purchasing small quantities of heroin from Jones. The customer explained that on February 3, 2016, while desperately ill from heroin withdrawal, he agreed to trade a .357 caliber revolver with Jones for less than a gram of heroin.
In light of Jones’s violent conviction history dating back to the early 1990s and his use of violence to traffic drugs, including discharging a firearm at and toward witnesses, the government urged the court to impose a 12-year sentence. According to the prosecutor, "Drug trafficking is a very dangerous business to those who choose to engage in it and, as this case illustrates, can have devastating consequences to many others, even those who devote their lives to protecting our communities."
Multiple agencies participated in the investigation of this case, including the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Clatsop County Sheriff’s Office, Major Crimes Team, and District Attorney’s Office; the Cannon Beach, Seaside, and Astoria Police Departments; the Oregon State Police, and the United States Attorney’s Office for the District of Oregon.
The case was prosecuted by Leah K. Bolstad, Assistant United States Attorney for the District of Oregon.
Citrus Heights Woman Sentenced to 3 Years in Prison for Role in Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Dianna Woods, 60, of Citrus Heights, was sentenced today by Senior U.S. District Judge William B. Shubb to three years in prison for four counts of making false statements on loan applications, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at her four-day trial in December 2016, Woods was a licensed real estate salesperson who worked at a company called VLD Realty, doing business as Trade House USA, in the Sacramento area. VLD built and sold houses in residential developments in Sacramento, Carmichael, and Copperopolis. As the housing market began to weaken from 2006 through 2008, VLD sought to sell the houses by offering money to buyers in the form of paying the down payment or giving the buyers money after the transaction, neither of which was disclosed to the lenders.
For her part, Woods purchased two houses based on the undisclosed kickbacks. Further, for the purpose of obtaining mortgage loans to purchase the properties, Woods also signed and submitted loan applications and other documents that contained false statements as to Woods’s income, employment, assets, the purpose of the property, the sales price, and whether the down payment was borrowed. Woods also assisted another buyer in making false statements to the lenders to get loans for the purchase of two properties in the housing developments and falsely verified his employment. The banks suffered nearly $2 million in losses with respect to fraudulent transactions in which Woods was involved.
This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Shelley Weger and Todd Pickles prosecuted the case.
Bridgeport Man Sentenced to 6 Years in Prison for Possessing Stolen Gun and SilencerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERTO VASQUEZ, 53, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 72 months of imprisonment, followed by three years of supervised release, for possessing a stolen gun and silencer.
According to court documents and statements made in court, in November 2013, VASQUEZ offered an 18-year-old woman who had just left an abusive relationship to move in with him. After a few weeks, VASQUEZ became physically and sexually abusive toward the woman. The victim subsequently left VASQUEZ without taking her belongings. VASQUEZ then lured her back into his apartment. Once inside, VASQUEZ barricaded the door and closed the windows. He then choked and punched the victim, placed a sock in her mouth and raped her while holding a gun and silencer to her head.
On March 5, 2014, the victim reported the abuse to a Connecticut probation officer and stated that VASQUEZ kept a gun in a hutch in the dining room of the apartment, and a silencer in a closet. Later that day, a Bridgeport Police officer retrieved a loaded .22 caliber semiautomatic pistol from the hutch in VASQUEZ’s apartment. On March 17, 2014, a search of the apartment revealed a .22 caliber silencer. VASQUEZ was arrested at that time.
Both the pistol and silencer had been reported stolen.
Forensic analysis of VASQUEZ’s cellphone revealed a recording of the rape and other recordings that confirmed VASQUEZ’s abuse of the victim.
VASQUEZ has been detained since his arrest. On May 3, 2016, he pleaded guilty to one count of possession of a stolen firearm and one count of possession of a stolen silencer.
VASQUEZ pleaded guilty in state court to unlawful restraint.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department and Connecticut Office of Adult Probation. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bellevue Man who Defrauded Bank, Shipping Companies, Apple and IRS Sentenced to PrisonRead the Press Release
A Bellevue man who defrauded a small bank, Apple Inc., and various shippers of more than $3 million was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. MAZIAR REZAKHANI, 27, lived a lavish lifestyle in a Bellevue penthouse with luxury collector cars in the garage–all financed by his fraud. At the sentencing hearing, U.S. District Judge James L. Robart said REZAKHANI “embarked on a life of crime because of greed and arrogance.”
“This is the familiar story of unrelenting greed and lies winning out over hard work,” said U.S. Attorney Annette L. Hayes. “This defendant could have had all the cars and fancy apartments he wanted by running an honest and successful business. Instead, he deceived everyone in his path resulting in more than $3 million dollars of loss and a lot of innocent bank employees losing their jobs.”
According to records filed in the case, between 2014 and 2015, MAZIAR REZAKHANI changed his business of reselling iPhones overseas to a fraud scheme where he ordered thousands of iPhones and then claimed the actual phones had been stolen from the shipment. In September 2014, REZAKHANI placed an order for 128 cartons of iPhones–1280 phones in all. REZAKHANI paid for the order by charging some of the cost to four different credit cards. REZAKHANI had the phones shipped to a business he co-owned in Portland, Oregon. After picking up the phones, REZAKHANI called Apple in a panic claiming he had discovered that in each carton instead of a phone, there were tiles cut to the size of an iPhone. When Apple refused to give REZAKHANI a refund, he got three of the four credit card companies to reverse the charges making Apple responsible for $342,710. Evidence in the case revealed that REZAKHANI had purchased the tiles himself at local warehouse home improvement stores. REZAKHANI used the stolen iPhones in his reselling business.
In addition to the iPhone fraud, REZAKHANI submitted falsified tax and bank records to Bellevue’s Foundation Bank to get a multi-million dollar line of credit. In all REZAKHANI withdrew some $6.5 million in loan funds from the bank and used some of the money for his personal expenses such as $25,000 for a monthly rent payment for a penthouse; various luxury cars: a BMW, Ferrari Speciale, Ferrari Spider and a Mercedes-Benz; and to pay off more than $400,000 in credit card debt. Some of the money was paid back to Foundation Bank, but REZAKHANI defaulted on $2.8 million. The small bank was sold, and many employees lost their jobs.
Even as that fraud was uncovered by the bank, REZAKHANI tried to start another fraud –this time attempting to defraud a shipper and insurance company. REZAKHANI shipped 116 boxes via Federal Express to a Delaware address. REZAKHANI claimed the boxes contained more than $5 million worth of iPhones. When the boxes were opened they contained a type of pumice brick. REZAKHANI claimed the iPhones had been stolen from Federal Express. But again, REZAKHANI had purchased the pumice brick at a local store. He filed claims with Federal Express, with the insurance company, and with a shipping subcontractor and made complaints to the FBI, FTC, and State of California Department of Insurance. No claims were ever paid.
In July 2016, REZAKHANI pleaded guilty to two counts of mail fraud, one count of bank fraud, and one count of filing a false income tax return. He agreed to a restitution amount of $3,567,756 and is forfeiting the luxury cars and more than $100,000 in cash. Because REZAKHANI substantially underreported his income for 2009-2012, he may owe back taxes and penalties.
The case was investigated by the FBI, Internal Revenue Service Criminal Investigation (IRS-CI) and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorneys Brian Werner and Matthew Hampton.
Amarillo Heroin Trafficker Pleads Guilty to Possessing More Than 17,000 Grams of HeroinRead the Press Release
AMARILLO, Texas — Jose Emmanuel Morales Rittingger, 29, appeared today before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to possession with intent to distribute one kilogram or more of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
Rittingger faces a maximum statutory penalty of life in federal prison and a fine not to exceed $1 million. Sentencing is scheduled for July 10, 2017. Rittingger is a Mexican citizen and was in the United States illegally at the time of the offense. He will be deported after serving his sentence.
Co-defendant Joel Lara Merida, 31, was sentenced on Monday, February 27, 2017 by U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016.
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor are in charge of the prosecution.
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Albany Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Paul A. Light, age 46, of Albany, New York, pled guilty today to distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Light maintained a collection of least 5,027 image files and 597 video files containing child pornography stored on at least 9 different computers and external hard drives. Using an online file-sharing website, Light distributed and received child pornography on at least 7 occasions from approximately March 28, 2015 through October 26, 2015.
Sentencing is scheduled for July 24, 2017 before Senior United States Judge Gary L. Sharpe. Light faces at least 5 years and up to 20 years in prison, at least 5 years and up to lifetime post-imprisonment supervised release, and a maximum $250,000 fine. He will also have to register as a sex offender when he is released from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Acting Manhattan U.S. Attorney and NYPD Commissioner Announce Arrest of Narcotics Dealer Responsible for Heroin Overdose Death in A Hospital Rehabilitation ClinicRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a complaint charging ANTHONY DODAJ with narcotics dealing that resulted in the heroin overdose death of a 41-year-old woman while the victim was a patient in a hospital rehabilitation clinic.
The complaint alleges that DODAJ participated in a conspiracy to distribute heroin, and that heroin distributed by DODAJ on January 1, 2016, resulted in the death of Ivy Katz in New York, New York. DODAJ was arrested this morning and presented today in Manhattan federal court before United States Magistrate Judge James C. Francis IV. DODAJ faces a mandatory minimum term of 20 years in prison.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Anthony Dodaj hand-delivered a fatal dose of heroin to a recovering addict inside a rehabilitation facility. Together with our partners at the NYPD, we will continue to prosecute those who prey on others’ addictions, as alleged here.”
NYPD Commissioner James P. O’Neill stated: “As alleged, the defendant preyed on the vulnerable – peddling poison to those seeking help. Today, the defendant finds himself under arrest with the possibility of spending the rest of his life in prison for the crimes alleged in the complaint.”
According to the complaint[1]:
From December 2016 up to January 2017, in the Southern District of New York and elsewhere, ANTHONY DODAJ and others conspired to sell heroin. As part of that conspiracy, on January 1, 2016, DODAJ delivered heroin to Ivy Katz, a 41-year-old recovering heroin addict. In mid-December 2016, Katz had voluntarily checked herself into an inpatient rehabilitation program for opioid dependence at a hospital located in New York, New York (the “Hospital”). On January 1, 2017, DODAJ entered the Hospital and met with Katz in the Hospital’s inpatient rehabilitation ward. Approximately 30 minutes after DODAJ left the Hospital, Katz was found comatose in her room with a needle containing heroin in her arm. Katz never regained consciousness, and ultimately died on January 16, 2017.
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DODAJ, 46, of the Bronx, New York, faces a maximum sentence of life in prison, and a mandatory minimum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Kim praised the outstanding investigative work of the NYPD.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorney David W. Denton Jr. is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
24 March 2017
“Incognito Bandit” Arrested this Evening at Dulles International AirportRead the Press Release
BOSTON – A man dubbed the “Incognito Bandit” was arrested this evening at Dulles International Airport in Virginia as he attempted to board an outbound flight to South Africa and charged with armed bank robbery.
Albert Taderera, 36, of Brighton, was charged by criminal complaint with the Oct. 7, 2016, robbery of a branch of the TD Bank in Wayland, Mass. Taderera is scheduled to appear in the U.S. District Court for the District of Eastern Virginia on Monday, March 27, 2017, for his initial appearance.
According to court documents, between February 2015 and March 2017, 16 banks were robbed in the Metro-West and Greater Boston areas. In most of the robberies, the robber was disguised in a dark hooded sweatshirt, dark face mask/sunglasses covering his face, dark gloves and dark clothing. In each of the banks, the robber entered the bank and made verbal demands for the banks’ money. In most of the robberies, the robber displayed what tellers described as a black semi-automatic handgun.
All of the robberies occurred in suburban settings where banks were freestanding and featured adjacent wooded areas or foliage. In many of these robberies, witnesses observed the robber leaving the bank following the robbery, and entering the wooded areas. Witnesses also observed the robber run toward, enter into, and then leave the area in a black BMW sedan. Based on these similarities, the FBI believed that the individual driving the black BMW was responsible for the robberies.
On March 16, 2017, the Concord Police observed a black BMW sedan sitting outside a local bank. They also noted that Taderera fit the general description of the individual responsible for the 16 robberies. Police determined that the registration of the BMW was revoked and per Department policy, the vehicle was towed and inventoried.
On Wednesday, March 22, 2017, an individual identifying himself as Taderera, called the tow company and inquired about the status of his BMW. The tow company informed Taderera that the vehicle was in police custody.
On Thursday March 23, 2017, at approximately 10:15 pm, the FBI learned that Taderera had booked a flight, scheduled to leave on Friday, March 24, 2017, at 11:00 a.m., from Dulles International Airport to Addis Ababe, Ethiopia. During the morning of Friday, March 24, 2017, Taderera was en route to Dulles having taken a flight out of Boston. It was later learned that Taderera had rebooked his flight and was now planning to leave on March 24, 2017, at 5:45 p.m. from Dulles to Johannesburg, South Africa. Taderera was arrested prior to boarding the flight.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William Ferrara, Director of Field Operations, U.S. Customs and Border Protection; Concord Police Chief Joseph F. O’Connor, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
U.S. Attorney’s Office to Host Forum on Protecting Arab, Muslim, Sikh, and South Asian Communities and Responding to Hate and Bias CrimesRead the Press Release
United States Attorney Randolph J. Seiler has announced that his office, in conjunction with the Federal Bureau of Investigation, Minnehaha County States Attorney’s Office, Minnehaha County Sheriff’s Office, Sioux Falls Police Department, and the U.S. Commission on Civil Rights will present a forum on protecting Arab, Muslim, Sikh, and South Asian Communities. The discussion will revolve around responding to hate and bias crimes targeted against these groups. A representative from the Department of Justice’s Community Relations Service (CRS) will help facilitate the discussion.
The Forum will be held on Thursday, March 30, 2017, from 6:00 pm – 9:00 pm, at the Sioux Falls Library located in downtown Sioux Falls at 200 N. Dakota Avenue. The free conference is open to the public and will feature conversations with leaders of diverse community, faith-based, and non-profit organizations in Sioux Falls and the surrounding areas.
Pursuant to the Hate Crimes Protection Act, CRS is authorized to work with communities to help them develop the capacity to prevent and respond more effectively to violent hate crimes committed on the basis of actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. CRS is a remarkably unique federal component dedicated to assisting state and local units of government, private and public organizations, and community groups develop local capacity to prevent racial and ethnic tensions.
To learn more about the Department of Justice’s Community Relations Service, visit: https://www.justice.gov/crs.
U.S. Attorney’s Office for the Southern District of New York Recovers $3.7 Billion in Forfeitures and Civil Actions in Fiscal Year 2016Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the Office obtained recoveries of more than $1.4 billion in forfeiture actions, more than $2.2 billion in civil actions, and more than $31 million from restitution, criminal fines, and special assessments, between October 1, 2015, and September 30, 2016.
Manhattan Acting U.S. Attorney Joon H. Kim said: “The $3.7 billion in forfeitures, penalties, and fines for fiscal year 2016 recovered by this Office demonstrate that those who break the law or commit civil offenses will not be allowed to profit from their misconduct. We are committed to taking the profit out of crime and compensating victims whenever possible through our prosecutions and civil actions.”
Forfeitures
Forfeited funds are generally deposited into the Department of Justice Assets Forfeiture Fund (the “Assets Forfeiture Fund”) and the Department of Treasury Forfeiture Fund. The forfeited funds are used to restore money to crime victims and for a variety of law enforcement purposes.
General Motors
$900 million forfeited
In September 2015, the General Motors Company (“GM”) entered into a deferred prosecution agreement with this Office based on charges that GM concealed a potentially deadly safety defect from its U.S. regulator, the National Highway Traffic Safety Administration, and, in the process, misled consumers concerning the safety of certain of GM’s cars. Pursuant to the deferred prosecution agreement, GM, among other things, agreed to the forfeiture of $900 million to the United States, which was completed in 2015.
Bank Julius Baer
$219,250,000 forfeited
In February 2016, Bank Julius Baer & Co. Ltd. (“Julius Baer”), a Swiss bank headquartered in Zurich, entered into a deferred prosecution agreement with this Office based on charges that Julius Baer conspired with many of its U.S. taxpayer-clients and others to help U.S. taxpayers hide billions of dollars in offshore accounts from the IRS and to evade U.S. taxes on the income earned in those accounts. Pursuant to the deferred prosecution agreement, Julius Baer, among other things, agreed to the forfeiture of $219,250,000 to the United States.
PokerStars and Related Cases
$81,003,765 forfeited
In July 2012, the United States reached an agreement with the two largest online poker companies in the United States, Full Tilt Poker and PokerStars. The United States had brought a civil forfeiture and money laundering action against these companies and their assets. Under the terms of the settlement, Full Tilt Poker forfeited essentially all of its assets to the United States. PokerStars agreed to forfeit $547 million, to be paid in several installments, and to reimburse the approximately $184 million owed by Full Tilt Poker to foreign players. The settlement further provided that PokerStars would acquire the forfeited Full Tilt Poker assets from the United States. Fiscal Year 2016, $48 million was forfeited to the United States by PokerStars and more than $33 million was forfeited by other parties in related actions. To date, in excess of $1.3 billion has been forfeited in the PokerStars civil forfeiture action and related cases.
U.S. v. Tucker et al., and Related Cases
$48 million forfeited
In February 2016, this Office charged Scott Tucker and Jason Muir with violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a $2 billion nationwide internet payday lending enterprise that systematically evaded state laws in order to charge illegal interest rates as high as 700% on loans. In connection with that investigation, on February 9, 2016, the United States entered into a non-prosecution agreement with two tribal corporations controlled by the Miami Tribe of Oklahoma, a Native American tribe. As part of that agreement, the tribal corporations agreed to the forfeiture of $48 million in criminal proceeds from Tucker’s payday lending enterprise that were held in tribal bank accounts.
VimpelCom
$40 million forfeited
In February 2016, VimpelCom Limited, an Amsterdam-based telecommunications company, entered into a deferred prosecution agreement with this Office and the Fraud Section of the Criminal Division of the Department of Justice based on charges that VimpelCom conspired to make bribe payments to a government official in Uzbekistan between 2006 and 2012. Pursuant to the deferred prosecution agreement, VimpelCom, among other things, agreed to forfeit $40 million to the United States.
Civil Actions and Restitution, Criminal Fines, and Special Assessments
U.S. v. Wells Fargo Bank, N.A. et al.
$1.2 billion collected
In April 2016, Wells Fargo Bank, N.A., settled a False Claims Act lawsuit brought by this Office alleging that Wells Fargo had engaged in reckless underwriting of Federal Housing Administration mortgage loans for nearly a decade. As part of the settlement, Wells Fargo paid $1.2 billion and admitted to certain conduct alleged in the complaint, and a Wells Fargo executive also made admissions.
U.S. v. CenterLight Healthcare, Inc. et al.
$46.7 million collected
In January 2016, this Office simultaneously filed a lawsuit against and entered into a settlement with CenterLight Healthcare, Inc., and CenterLight Health System, Inc. (collectively, “CenterLight”), resolving False Claims Act claims arising from the enrollment of ineligible members in CenterLight’s managed long-term care plan. Under the terms of the settlement, CenterLight paid a total of $46,751,086.74 to the Medicaid Program, $18,700,434.70 of which went to the United States. In addition, CenterLight was required to reform its business practices and admit to conduct alleged in the complaint.
U.S. ex rel. Krigstein v. Motives, Inc.
$13.375 million collected
In July 2016, this Office simultaneously filed a False Claims Act lawsuit and entered into a $13.375 million settlement with Motives, Incorporated, an importer of clothing, and Motives Far East and Motives China Limited, foreign manufacturers of clothing (collectively, “Motives”), for conspiring to underpay customs duties. (United States v. Motives, Inc., No. 13 Civ. 9030 (GBD)). As part of the settlement, Motives paid a total of $13.375 million and admitted to allegations in the complaint.
United States ex rel. Peikin et al. v. Salix Pharmaceuticals, Inc. and United States ex rel. Dhaliwal v. Salix Pharmaceuticals, Inc.
$54 million collected
In June 2016, this Office simultaneously sued and settled with Salix Pharmaceuticals, Inc. (“Salix”), a specialty pharmaceutical company. The settlement, in the amount of $54 million, resolved claims that Salix violated the Anti-Kickback Statute and False Claims Act by using its “speaker programs” as a mechanism to pay kickbacks to doctors to induce them to prescribe Salix drugs and medical devices that were reimbursed by federal health care programs. In connection with the settlement, Salix admitted to paying doctors to serve as “speakers” at events that were primarily social in nature, that were held at high-end restaurants, and where the “speakers” spent little or no time discussing the relevant Salix product.
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The Criminal Division’s Money Laundering and Asset Forfeiture Unit is led by Chief Sarah Eddy and Deputy Chief Alexander Wilson and handles all criminal and civil forfeiture actions for the Office. Civil recoveries are handled by the Office’s Civil Division, which is led by Jeffrey Oestericher. Criminal and civil collections are handled by the Civil Division’s Financial Litigation Unit, which is led by Kathleen Zebrowski.
For further information, the United States Attorneys’ Annual Statistical Reports can be found online at http://www.justice.gov/usao/reading_room/foiamanuals.html.
Two Oklahoma Residents Plead Guilty to Susanville Prison Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Edwin Forrest Ludwig III, 61, and Donald Loyde Harned, 72, both of Oklahoma, pleaded guilty today for their roles in a conspiracy to defraud the United States with false claims for federal tax refunds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Ludwig III, Harned, and five others operated a tax fraud scheme out of the California Correctional Center in Susanville. Four of the co-conspirators who were incarcerated at the correctional center obtained personal identification information of other inmates. Harned and other co‑defendants who were not incarcerated took this information and prepared and filed false income tax returns with the IRS, claiming refunds that they knew to be false and to which the inmates were not entitled. Ludwig III, not an inmate, assisted the scheme by depositing the fraudulently obtained refunds in bank accounts he opened and transferring the criminal proceeds to the prison accounts of the incarcerated co-defendants. Both Ludwig III and Harned received money in return for their participation in the scheme.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Ludwig III and Harned are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 30, 2017. Both face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
To date, four co-conspirators have pleaded guilty and been sentenced for their participation in this scheme, including Ludwig III’s son, Ludwig IV, who was sentenced to seven years in prison for his role in the scheme. The charges against one remaining co-defendant are pending. Those charges are only allegations, and that co-defendants is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Jamestown Men Indicted on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an 11-count indictment charging Juan Pacheco, Jr., 34, and Andrew Garner, a/k/a Bam, 36, both of Jamestown, NY, with conspiracy to distribute over five kilograms or more of cocaine, over 500 grams or more of methamphetamine, and marijuana, and maintaining a drug involved premises. Pacheco was also charged with possession with intent to distribute cocaine, methamphetamine, and marijuana. Garner was additionally charged with distribution of cocaine and possession with intent to distribute cocaine, methamphetamine and marijuana. The charges carry a mandatory minimum penalty of 20 year in prison for Pacheco and 10 years in prison for Garner. Both face a maximum penalty of life in prison and a $10,000,000 fine.Assistant U.S. Attorney Michael P. Fellicetta, who is handling the case, stated that according to the indictment, between April 2016 and September 2016, the defendants received large quantities of drugs from California that were smuggled into the United States from Mexico. Members of the Drug Enforcement Administration working collaboratively with law enforcement officers from the Jamestown Metro Drug Task Force (JMDTF) identified Pacheco and Garner as significant dealers in the Jamestown area.
On May 19, 2016, JMDTF officers executed a search warrant at Garner’s apartment, located at 840 East 2nd Street in Jamestown. Inside, officers recovered bags containing cocaine, crack cocaine, and marijuana, along with baggies, scales, and a video surveillance system that covered the perimeter of the residence. Garner was arrested on June 14, 2016.
Pacheco was arrested on August 18, 2016, after officers executed a search warrant at a residence, believed to be Pacheco’s stash house, located at 477 Main Street in Jamestown. Officers seized approximately nine kilograms of cocaine, more than three kilograms of methamphetamine, and over six pounds of marijuana. The DEA also seized nearly $133,000 in cash that was found at the residence and approximately $7,000 from Pacheco’s pocket upon his arrest. Two vehicles belonging to Pacheco were also seized in the raid, including a Mercedes C300 and a Ford F150.
The defendants are being detained.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; the Jamestown Metro Drug Task Force, which includes officers from the Jamestown Police Department, under the direction of Chief Harry Snellings; the Ellicott Police Department, under the direction of William L. Ohnmeiss Jr.; and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause.
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.
Two Essex County, New Jersey, Men Charged with Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were indicted by a federal grand jury today for their alleged roles in a September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, were both charged by indictment with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. They will be arraigned at a date to be determined.
According to the indictment and other documents filed in this case:
In the early morning hours of Sept. 6, 2015, Cooper, Lawrence, and others allegedly agreed to rob a club in Passaic at gunpoint. Cooper sent text messages to a conspirator’s phone coordinating the timing of the robbery and discussing how to smuggle the gun into the club. Minutes later, Lawrence and a conspirator entered the office of the club where an employee was alone. They brandished a firearm, threatened to kill the employee, and emptied the contents of an open safe into two purses. Lawrence and the other robber ordered the employee to the ground and told him to count to 100 as they lowered the lights and fled the club in a getaway car.
Following the robbery, the robbers led the police on a high-speed car chase through Passaic, Newark, and East Orange, New Jersey, abandoning the car in East Orange and fleeing on foot. Lawrence was arrested a short while later and charged by the Passaic County Prosecutor’s Office with robbery and firearms offenses. Cooper was arrested on Nov. 3, 2016, after both men were charged by complaint in Newark federal court on Nov. 2, 2016.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s charges. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s General Crimes Unit in Newark.
Defense counsel:
Cooper: Kevin Carlucci Esq, Newark
Lawrence: Paulette Pitt Esq., Woodbridge
Two Defendants Sentenced in Opioid Pill Mill CaseRead the Press Release
DALLAS — Ivery Myers, 64, and Cornelius Delshun Robinson, a/k/a “Tadow,” 37, both of Houston, Texas were sentenced by U.S. District Judge Sidney A. Fitzwater stemming from their involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Fitzwater sentenced Myers to 37 months in federal prison following his guilty plea to one count of conspiracy to distribute a controlled substance in October 2015. Robinson was sentenced to 120 months in federal prison following his guilty plea to the same offense in November 2015. Both defendants have been in custody since their arrest.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Myers and Robinson, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies.
According to plea documents filed for Myers, on February 24, 2014, acting at the direction of Robinson, co-conspirator Shane Barron drove him to Brady, Texas, and then San Angelo, Texas, to obtain oxycodone with the intent to distribute it later. Myers presented a prescription issued to another individual at a Walmart located in Brady, Texas, and obtained 120 30mg oxycodone pills. After obtaining the oxycodone in Brady, Texas, he and Barron transferred the oxycodone from the prescription bottle labelled for the other individual into a prescription bottle labelled for Shane Barron and disposed of the original bottle. Barron then drove Myers to San Angelo, Texas, to fill another prescription for oxycodone.
According to documents filed for Robinson, on multiple occasions Robinson obtained oxycodone from sources in Dallas and Houston and distributed oxycodone to customers in Texas and Louisiana. Robinson recruited and paid individuals to pose as patients at medical clinics to obtain prescriptions for oxycodone. He paid the recruits to go to pharmacies to fill the prescriptions. He also paid for clinic visits and for the prescriptions. He sent co-conspirators, including Ivery Myers and Shane Barron, to fill prescriptions as far away as San Angelo and Abilene to minimize the possibility of detection by law enforcement. Robinson then obtained the oxycodone and distributed it for profit. On May 25, 2013, in St. Martin's Parish, Louisiana, Robinson possessed approximately 1,543 oxycodone pills, consisting of 1,161 30mg oxycodone pills and 382 15mg oxycodone pills.
This Organized Crime Drug Enforcement Task Force (OCDETF) was investigated by the Drug Enforcement Administration and the Internal Revenue Service Criminal Investigation, with assistance from the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters prosecuted.
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Three Convicted for Sex Trafficking Throughout the SoutheastRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Damon Jackson, age 24, of Columbia; Bakari McMillan, age 24 of Columbia; and Cory Miller, age 44, of Orangeburg; were convicted in federal court in Charleston, South Carolina, for Sex Trafficking of Minors in violation of 18 U.S.C. 1591. United States District Judge David C. Norton of Charleston presided over the trial and will impose sentence at a later date.
Evidence presented at trial proved that Jackson, McMillan, and Miller participated in a conspiracy to commit sex trafficking in South Carolina, Georgia, and North Carolina. The defendants persuaded dozens of young women to work as prostitutes with fraudulent promises, and some of these victims were minors. The evidence showed that the defendants routinely raped and beat the victims to cause them to engage in commercial sex acts. The evidence further showed that many of the victims were drug addicts, and the defendants used heroin and crack cocaine to coerce the victims to engage in commercial sex acts. The defendants used the website Backpage.com to advertise sexual services throughout the Southeast. Seven of the defendants in the conspiracy pled guilty prior to the trial of Jackson, McMillan, and Miller.
U.S. Attorney Beth Drake gave credit for the convictions to both the victims and witnesses who showed the courage and strength to testify, and to the terrific investigation by the local police who worked hand-in-hand with the federal agents at ICE-HSI. "The facts of this case are repugnant, and the victims - and the police officers who rescued them from the hell they were living - are nothing less than heroes."
The case was investigated by agents from the North Charleston Police Department and the ICE- Homeland Security Investigations. Assistant United States Attorneys Matt Austin and Rhett DeHart of the Charleston office prosecuted the case.
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Thirty-Seven Year-Old Man Found Guilty of Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. – After a three-day jury trial and four hours of deliberation, Joed Torres-Monge was found guilty of one count of possession of child pornography, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Court Senior Judge Juan Pérez-Giménez presided over the trial.
According to the Indictment, from on or about March 16, 2015 through May 6, 2015, the defendant knowingly possessed materials, which contained images of child pornography, where the production of such visual images involved the use of a minor engaging in sexually explicit conduct.
During trial, the government presented evidence that Torres-Monge downloaded numerous pictures and videos from the Internet depicting minors, in some cases infants, engaging in sexually explicit conduct.
“The conviction of Torres-Monge shows the commitment of our state and federal law enforcement agencies to apprehend and prosecute criminals whose crimes victimize children,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “The U.S. Attorney’s Office for the District of Puerto Rico will continue to prosecute sexual predators in order to protect the vulnerable victims of these crimes, our children.”
The case was prosecuted by Assistant United States Attorney Ginette Milanes. The now convicted defendant faces a maximum penalty of twenty (20) years in prison. The sentencing is scheduled for July 21, 2017.
Syracuse Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Gilbert Gonyea, 60, of Syracuse, New York, was sentenced today to serve 72 months in prison for receipt of child pornography, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Gonyea admitted that he was in receipt of over fifteen hundred (1,500) images and approximately nine (9) videos depicting child pornography. On November 5, 2014, investigators searched Gonyea’s residence and recovered numerous DVDs and CDs on which Gonyea stored child pornography and had labeled “Downloads” with corresponding dates or years for when such images had been received from the internet.
Chief United States District Judge Glenn T. Suddaby also imposed a life term of supervised release, which will begin after Gonyea is released from prison, and ordered payment of a $100 special assessment. As a result of his conviction, Gonyea will be required to register as a sex offender upon his release from prison.
This case was prosecuted by Assistant United States Attorney Lisa M. Fletcher and Assistant United States Attorney Sahar L. Amandolare.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sutter County Women Found Guilty of Making False Statements to a Grand JuryRead the Press Release
SACRAMENTO, Calif. — Today, after a six-day trial, a federal jury found Harjit Kaur Johal, 50, and Jasvir Kaur, 47, guilty of making false declarations before a grand jury, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, the defendants participated in a series of unemployment and disability fraud schemes in Yuba City. The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan, and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties. The organizers then sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department. The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.
In 2014, the defendants were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, the defendants falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud. Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.
Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking. Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits. Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each.
U.S. Attorney Talbert stated: “Before the defendants testified before the grand jury, they swore to tell the truth. Unfortunately, motivated by a desire to conceal their participation in the schemes, they lied. Anyone who fails to tell the truth under oath should be ready to face the consequences of their actions.”
“Today’s guilty verdicts send a powerful message that individuals who perjure themselves in federal proceedings will be held accountable. Jasvir Kaur and Harjit Johal lied under oath to a federal grand jury about their purchase of bogus wages they intended to use to file for Unemployment Insurance benefits. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Abel Salinas, Special Agent in-Charge of the Los Angeles Regional Office of the United States Department of Labor, Office of Inspector General.
“The Employment Development Department works closely with our law enforcement partners to prosecute attempts to defraud the employer-funded Unemployment Insurance Program, including those who perjure themselves in federal court,” said Patrick W. Henning Jr., Director of the California EDD. “We're happy to see coordination with law enforcement helping to avert losses to a benefit program that is a lifeline for unemployed Californians.”
The defendants’ trial was the latest in a series of cases involving the Khan family fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.
These cases are the product of an investigation by the U.S. Department of Labor, Office of Inspector General; the Federal Bureau of Investigation; and the Employment Development Department-Criminal Investigations. Assistant United States Attorneys Jared C. Dolan and Jeremy J. Kelley are prosecuting the cases.
Johal and Kaur are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 16, 2017. Each defendant face a maximum statutory penalty of five years in prison. 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.
Social Security Disability Lawyer Pleads Guilty for Role in $550 Million Social Security Fraud SchemeRead the Press Release
A Social Security disability lawyer pleaded guilty in federal court today for his role in a scheme to fraudulently obtain $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of the Internal Revenue Service-Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
Eric Christopher Conn, 56, of Pikeville, Kentucky, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to one count of theft of government money and one count of payment of gratuities. Sentencing is set for July 14, 2017.
According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions.
According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents.
As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.
Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Elizabeth G. Wright of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case, with previous co-counsel including Assistant U.S. Attorney Trey Alford of the Western District of Missouri and Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.
Sioux Falls Woman Sentenced in Gun CrimeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota woman convicted of Felon in Possession of Firearm was sentenced on March 20, 2017, by U.S. District Judge Karen E. Schreier.
Lesa Lynn Zafft, age 54, was sentenced to 37 months in custody to run concurrently to her State sentences, and three years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund, and to forfeit a .22 caliber handgun.
A federal grand jury indicted Zafft on October 4, 2016, for being a Felon in Possession of Firearm. She pled guilty on December 27, 2016.
On June 16, 2016, Zafft was in possession of a .22 caliber revolver handgun, and sold the firearm, 45 rounds of .22 caliber ammunition, and some methamphetamine to an undercover officer in exchange for $400. Zafft had been convicted in 2015 of felony drug possession, which prohibited her from possessing any firearms.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Zafft was immediately returned to the custody of the State to finish serving her State sentence.
Sioux Falls Man Sentenced on Weapon ChargeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Possesion of a Firearm by a Prohibited Person was sentenced on March 21, 2017, by U.S. District Judge Karen E. Schreier.
Michael Layne Spath, age 36, was sentenced to 51 months in custody, followed by three years supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund and forfeit three firearms in his possession.
Spath was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury on July 12, 2016. He pled guilty on December 21, 2016.
On December 3, 2015, officers with the Minnehaha County Warrant Task Force went to the home of Spath in search of a parole absconder. While at the residence, officers located a 12-gauge shotgun, and shotgun shells. Officers obtained a state search warrant to search the house more thoroughly and found a HiPoint .45 caliber semi-automatic pistol behind the refrigerator, along with .45 caliber ammunition on the basement steps. When Spath was apprehended on December 10, 2015, he had a loaded .40 caliber handgun with him in his vehicle. He was immediately arrested and placed in custody.
This case was investigated by Sioux Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Spath was immediately turned over to the custody of the U.S. Marshals Service.