Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
23 March 2017
NW Alabama Pharmacies Owner Sentenced to Six Month’s Home Confinement for Obstructing Medicare Audit; Ordered to Pay $2.5 million FineRead the Press Release
BIRMINGHAM – A federal judge today sentenced the owner of two northwest Alabama pharmacies to six month’s home confinement for obstructing a Medicare audit, ordered him to pay a $2.5 million fine and prohibited him from working in a pharmacy during his year on probation.
U.S. District Court Judge Virginia Emerson Hopkins sentenced RODNEY DALTON LOGAN, 63, of Muscle Shoals, on one count of obstructing a 2012 federal audit of Medicare claims submitted by a pharmacy he owned. Logan pleaded guilty to the charge in August.
Acting U.S. Attorney Robert O. Posey, Department of Justice Criminal Division Acting Assistant Attorney General Kenneth A. Blanco, FBI Special Agent in Charge Roger C. Stanton, Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson, and Food and Drug Administration Office of Criminal Investigation Special Agent in Charge Robert J. West announced the sentence.
Judge Hopkins sentenced Logan to one year’s probation, but included the six months of home confinement and the prohibition against him working as a pharmacist as special conditions of his probation.
“This defendant falsified documents so that his businesses could keep money improperly billed to Medicare under its Part D prescription drug component,” Posey said. “Medicare is the federal health insurance program for people 65 and older, and for people with disabilities. I applaud the work of the investigative agencies and the prosecutors in this office who have worked at length to bring this defendant to justice.”
Logan is a registered pharmacist who owned Leighton Pharmacy Inc., which did business as Sheffield Pharmacy and Homecare in Sheffield, and Russellville Pharmacy in Russellville. At various times, he was the lead pharmacist at both Sheffield and Russellville, according to is plea.
The Sheffield and Russellville pharmacies operated as both compounding and retail pharmacies. A compounding pharmacy is one that prepares customized medications for individual patients, usually by mixing ingredients in order to create a prescription. The two pharmacies sold compounded prescriptions to patients in Alabama and other states.
According to court documents, including Logan’s plea agreement with the government, he obstructed a 2012 audit of the Sheffield pharmacy’s claims for Medicare reimbursement on compounded prescriptions as follows:
CVS/Caremark Inc. administered prescription drug claims for Medicare Part D and served as an auditor on Medicare’s behalf. Part D prohibited reimbursement to pharmacies for compounded medications made using bulk pharmaceutical powders. Russellville and Sheffield nonetheless sought Part D reimbursement after February 2009 for compounded medications, primarily topical pain creams, made from bulk powders. The pharmacies, however, used the billing code for the tablet or capsule form of the ingredient.
In response to the 2012 audit, Logan caused Sheffield to submit falsified and misleading documents stating that medications in tablet or capsule form were used as ingredients for the compounded prescriptions.
FBI, HHS-OIG and FDA-OCI investigated the case, which Assistant U.S. Attorney Chinelo Diké-Minor and Trial Attorney William S.W. Chang of the Justice Department’s Criminal Division Fraud Section prosecuted.
###
Miami-Based Physician Charged for Role in Pain Pill Diversion and Medicare Fraud SchemeRead the Press Release
A physician licensed in Puerto Rico, who was practicing medicine in Miami, was charged in a 16-count indictment unsealed today for his alleged participation in a multi-faceted $20 million health care fraud scheme involving the submission of false and fraudulent claims to Medicare and Medicaid and the illegal distribution of oxycodone and other controlled substances.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the United States Secret Service’s (USSS) Miami Field Office made the announcement.
Roberto A. Fernandez, M.D., 51, of Miami, was charged with one count of conspiracy to commit health care fraud and wire fraud, 11 counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks, one count of conspiracy to distribute controlled substances and two counts of distribution of controlled substances. Fernandez was arrested on March 22, 2017, and made his initial appearance today before U.S. Magistrate Judge Andrea M. Simonton of the Southern District of Florida.
According to the indictment, from approximately December 2009 to March 2017, Fernandez owned and operated Florida-based Latin Foundation for Health Inc. and purported to practice medicine as an “area of critical need” doctor at Latin Foundation for Health and other facilities in Miami-Dade County.
The indictment alleges that from approximately January 2011 through February 2017, Fernandez referred Medicare beneficiaries and Medicaid recipients who were purportedly under his care to Calan Pharmacy & Discount Service LLC, a Medicare Part D provider, and several Miami-area home health agencies in exchange for illegal bribes and kickbacks from his co-conspirators. The indictment further alleges that Fernandez submitted false and fraudulent claims through Medicare Part B for services, office visits and procedures that he never provided, such as therapeutic injections and removal of lesions from patients’ faces, and provided prescriptions for home health services and medications regardless of whether they were medically necessary.
The indictment further alleges that Fernandez illegally dispensed controlled substances, including but not limited to the Schedule II controlled substances Oxycodone and Hydrocodone and the Schedule IV controlled substance Alprazolam, to his co-conspirators.
According to the indictment, Fernandez and his co-conspirators caused Medicare to pay at least approximately $4.4 million based on false and fraudulent claims that they caused to be submitted. The indictment also alleges that Medicare, through Part D, paid a total of approximately $20 million as a result of claims submitted listing Fernandez as the prescribing physician.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, HHS-OIG and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Miami-Based Physician Charged for Role in Pain Pill Diversion and Medicare Fraud SchemesRead the Press Release
A physician licensed in Puerto Rico, who was practicing medicine in Miami, was charged in a 16-count indictment unsealed today for his alleged participation in a multi-faceted $20 million health care fraud scheme involving the submission of false and fraudulent claims to Medicare and Medicaid and the illegal distribution of oxycodone and other controlled substances.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the United States Secret Service’s (USSS) Miami Field Office made the announcement.
Roberto A. Fernandez, M.D., 51, of Miami, was charged with one count of conspiracy to commit health care fraud and wire fraud, 11 counts of health care fraud, one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks, one count of conspiracy to distribute controlled substances and two counts of distribution of controlled substances. Fernandez was arrested on March 22, 2017, and made his initial appearance today before U.S. Magistrate Judge Andrea M. Simonton of the Southern District of Florida.
According to the indictment, from approximately December 2009 to March 2017, Fernandez owned and operated Florida-based Latin Foundation for Health Inc. and purported to practice medicine as an “area of critical need” doctor at Latin Foundation for Health and other facilities in Miami-Dade County.
The indictment alleges that from approximately January 2011 through February 2017, Fernandez referred Medicare beneficiaries and Medicaid recipients who were purportedly under his care to Calan Pharmacy & Discount Service LLC, a Medicare Part D provider, and several Miami-area home health agencies in exchange for illegal bribes and kickbacks from his co-conspirators. The indictment further alleges that Fernandez submitted false and fraudulent claims through Medicare Part B for services, office visits and procedures that he never provided, such as therapeutic injections and removal of lesions from patients’ faces, and provided prescriptions for home health services and medications regardless of whether they were medically necessary.
The indictment further alleges that Fernandez illegally dispensed controlled substances, including but not limited to the Schedule II controlled substances Oxycodone and Hydrocodone and the Schedule IV controlled substance Alprazolam, to his co-conspirators.
According to the indictment, Fernandez and his co-conspirators caused Medicare to pay at least approximately $4.4 million based on false and fraudulent claims that they caused to be submitted. The indictment also alleges that Medicare, through Part D, paid a total of approximately $20 million as a result of claims submitted listing Fernandez as the prescribing physician.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, HHS-OIG and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Florida and the Criminal Division’s Fraud Section. Former Fraud Section Trial Attorney and current Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Mexican Citizen Sentenced for Illegal ReentryRead the Press Release
Roanoke, VIRGINIA – A citizen of Mexico, who had been removed from the United States multiple times in recent years, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on Federal immigration charges, Acting United States Attorney Rick A. Mountcastle announced.
Martin Alvarez-Torres, 38, a citizen of Mexico, previously pled guilty to one count of illegally reentering the United States after being previously deported without having obtained the express consent of the Attorney General of the United States and the Secretary of the Department of Homeland Security to apply for admission into the United States. Today in District Court, Alvarez-Torres was sentenced to a term of imprisonment of thirty 30 months.
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro Alvarez-Torres had been removed from the United States on six prior occasions, most recently on April 17, 2014. The defendant was indicted in 2014 and remained at-large until his arrest in Roanoke, Virginia in June 2016.
Investigation of the case was conducted by the Department of Homeland Security, Immigration and Customs Enforcement. Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Memphis Man Indicted in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A federal grand jury has indicted a Memphis man for committing bank fraud against financial institutions in the Memphis area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, from August 2011 through February 2016, Talmadge Garner and unknown co-conspirators not charged in the indictment participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank ("Banks"). The fraud consisted of opening new accounts and/or using their existing accounts to deposit fraudulent checks. Garner also stole the identities of individuals to pass fraudulent checks to the Banks.
Nearly 200 fraudulent closed account checks totaling $110,831.95 were deposited into accounts at the Banks. Immediately after deposits were made in the Banks, withdrawals were made by Garner and others not named in the indictment. Garner would give co-conspirators some of the proceeds withdrawn from the Banks.
The Indictment records (31) counts of fraudulent transactions involving Garner and unknown co-conspirators during the five-year period. The maximum penalty for bank fraud is (30) years in prison and a $1,000,000 fine.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Lock Haven Woman Indicted for Embezzling Customer Certificate of DepositRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jolene Edwards, age 38, of Lock Haven, Pennsylvania, was indicted by a federal grand jury with bank fraud, embezzlement by a bank employee, and interstate transportation of stolen property.
According to United States Attorney Bruce D. Brandler, the indictment alleges that while Edwards worked as a customer service representative and assistant branch manager at Jersey Shore State Bank (JSSB), Edwards embezzled and fraudulently converted $52,222 in funds from a customer’s certificate of deposit account. According to the indictment, instead of transferring the funds to a new certificate of deposit account at M&T Bank, Edwards used the funds to pay her credit card bills, repay personal loans, and to make purchases for family members. The scheme to embezzle and fraudulently convert the customer’s funds started in June 2012 and continued through March 2015.
This matter was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Lancaster Man Charged with Theft of Government FundsRead the Press Release
Elsie Reyes, a/k/a “Elsie Yera”, 59, of Lancaster, Pennsylvania, was charged today by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant concealed her July 1994 marriage from the Social Security Administration in order to receive more Supplemental Security Income benefits than what she was entitled to. The defendant’s alleged actions resulted in a loss to the government of approximately $136,246.70.
If convicted, the defendant faces a period of incarceration, a 3‑year period of supervised release, restitution to the government of $136,246.70, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Amanda R. Reinitz.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kentwood Man Sentenced for Methamphetamine PossessionRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that ERIC BROWN, age 38, from Kentwood, was sentenced today after previously pleading guilty to one count of Possession with Intent to Distribute a Quantity of Methamphetamine.
U.S. District Judge Nannette Jolivette Brown sentenced BROWN to time served (30 months). Additionally, BROWN was sentenced to 3 years of supervised release.
According to court documents, on June 22, 2014, a Tangipahoa Parish Sheriff’s deputy responded to a suspicious person report at 69062 South River Road in Kentwood. When the deputy arrived at the residence, he observed individuals flee the residence. The deputy then noticed several males outside the rear of the residence. As the deputy approached the rear of the residence, he detected an odor consistent with the manufacturing of methamphetamine. Four individuals were outside the rear of the residence, including BROWN, who was sitting in a white Lincoln. The deputy then noticed in plain view of the vehicle twenty-four zip-lock baggies containing approximately three grams of methamphetamine and a Smith and Wesson .38 special revolver on the vehicle’s floorboard.
The deputy then met with a female at the residence who told the deputy that she and BROWN resided at the residence and that BROWN “cooked” methamphetamine in their bedroom the previous night. Deputies and DEA Task Force Officers searched the residence and found three inactive methamphetamine labs in a refrigerator in the master bedroom.
Acting U.S. Attorney Evans praised the work of the U.S. Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Andre’ Jones was in charge of the prosecution.
Justice Department Settles Civil Antitrust Claim Against AT&T and DIRECTV for Orchestrating Information Sharing Agreements with CompetitorsRead the Press Release
Settlement Bars Anticompetitive Information Sharing Between Competitors
The Department of Justice announced today that it has reached a settlement that will prohibit DIRECTV and its parent corporation, AT&T, from illegally sharing confidential, forward-looking information with competitors.
The department’s Antitrust Division filed suit on Nov. 2, 2016, alleging that DIRECTV was the ringleader of a series of unlawful information exchanges between DIRECTV and three of its competitors – Cox Communications Inc., Charter Communications Inc. and AT&T (before it acquired DIRECTV) – during the companies’ negotiations to carry the SportsNet LA “Dodgers Channel.” SportsNet LA holds the exclusive rights to telecast almost all live Dodgers games in the Los Angeles area.
The settlement, which will obtain all of the relief sought by the department in its lawsuit, will ensure that when DIRECTV and AT&T negotiate with providers of video programming, including negotiations to telecast the Dodgers Channel, they will not illegally share competitively-sensitive information with their rivals. The settlement also requires the companies to monitor certain communications their programming executives have with their rivals, and to implement antitrust training and compliance programs.
“When competitors email, text, or otherwise share confidential and strategically sensitive information with each other to avoid competing, consumers lose,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s settlement promotes competition among pay-television providers and prevents AT&T and DIRECTV from engaging in illegal conduct that thwarts the competitive process.”
According to the Complaint, DIRECTV’s Chief Content Officer, Daniel York, unlawfully exchanged competitively-sensitive information with his counterparts at Cox, Charter and AT&T while they were each negotiating for the right to telecast the Dodgers Channel. The companies engaged in these unlawful information exchanges to decrease the risk that any individual company would lose subscribers by not carrying the Dodgers Channel while others did. Eliminating this threat corrupted the competitive bargaining process and likely contributed to the lengthy blackout.
DIRECTV Group Holdings, LLC is a subsidiary of AT&T Inc., a Delaware corporation with headquarters in Dallas. As of 2014, DIRECTV had approximately 1.25 million video subscribers in the Los Angeles area. AT&T is a Delaware corporation with headquarters located in Dallas. As of 2014, AT&T had approximately 400,000 video subscribers in the Los Angeles area.The proposed settlement agreement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Penalties and Procedures Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Scott Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.
Anyone with information related to anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Dodgers CIS Dodgers Explanation Dodgers Proposed Final Judgement Dodgers Stipulation & Order Dodgers Stipulation & OrderJury Convicts Two Men in Pasadena Bank RobberyRead the Press Release
HOUSTON - A federal jury sitting in Houston has found two Houston men guilty for the attempted robbery and robbery of the Shared Resources Credit Union and for using and carrying a firearm during commission of the crimes, announced Acting U.S. Attorney Abe Martinez. The federal jury deliberated for less than five hours before convicting Raynard Gray, 33, and Sonny Pervis, 27, both of Houston, on all counts as charged following a three-day-trial.
A total of seven men met and planned the robbery of the credit union. The jury heard Gray was the leader of this robbery crew and acted as a lookout during the robberies, while Pervis was one of the men who entered the credit union and brandished and discharged a firearm.
They arrived at the bank first on Saturday, July 26, 2014, with the intention of committing the robbery. The jury heard that employees inside the bank observed the men with the firearms as they approached. However, the doors to the lobby were locked so the crew left, but returned two days later to complete the crime.
The men fled the scene after stealing the money on July 28. A civilian followed them in order to give police the vehicle information of the robbers, during which time Howard Glaze, 24, of Houston, and Pervis discharged their firearms in a neighborhood in his direction. The group then led officers on a high-speed chase from Pasadena to north Houston, where they abandoned their vehicle and fled on foot. Glaze was soon apprehended. The investigation later led to the discovery and arrest of the others.
During trial, the jury saw surveillance videos, photos and police dash camera footage of the high speed chase and heard testimony from 12 witnesses. They also heard from a sergeant with the Pasadena Police Department who collected cash, bank straps and clothing of the robbers from the abandoned vehicle. The officer was also able to lift a fingerprint off a trash bag found in that vehicle, which belonged to Pervis.
The defense did not dispute that the robberies occurred, but contended that Pervis and Gray were not involved. The jury was not convinced and convicted them on all charges.
U.S. District Judge Sim Lake presided over the trial and set sentencing for June 15, 2017. At that time, Pervis and Gray face up to 25 years for the attempted robbery and robbery of the credit union. They will also face a mandatory and consecutive five years for using a firearm in the attempted robbery and another mandatory 25 years for using a firearm during the actual robbery which must be served consecutively to the bank robbery conviction and to the other firearms charge. They will remain in custody pending sentencing.
The remaining five co-defendants - Chris Braziel, 29, Keith McGee,26, Glaze, Kwhun Johnson, 24, and Leroy Richardson, 36, all of Houston, previously pleaded guilty to their roles in the robberies and will also be sentenced on that date.
The FBI and police departments in Pasadena and Houston conducted the investigation. Assistant U.S. Attorneys Richard Hanes and Heather Winter are prosecuting the case.
Jury Convicts Columbia Man of Child ExploitationRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been convicted in federal court on charges related to child pornography and the sexual exploitation of a minor.
Jayme Nathaniel Walker, 42, of Columbia, was found guilty of producing child pornography, receiving child pornography and transferring obscene materials to a minor.
Evidence introduced during the trial indicated that Walker communicated with a 14-to-15-year-old victim in Illinois, texting and exchanging pornographic photos and videos. The investigation began on June 13, 2014, when the child victim’s parents contacted Illinois State Police officers. The parents turned over a laptop computer, two cell phones and an iPod to investigators.
The child victim gave information to the investigators regarding his online relationship with Walker. He stated that he never met Walker in person, although they talked about meeting several times. He stated that he told Walker his true age. They had numerous conversations, including sexual conversations, and exchanged sexually explicit photos and videos.
Investigators discovered 77 images and six videos exchanged between Walker and the child victim.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about one and a half hours before returning the guilty verdicts to U.S. District Judge Roseann Ketchmark on Wednesday, March 22, 2017, ending a trial that began Monday, March 20, 2017.
Under federal statutes, Walker is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 60 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashley Turner and Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Illinois State Police.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Investment Adviser and Broker Found Guilty in Manhattan Federal Court of Securities Fraud, Wire Fraud, Conspiracy and Aggravated Identity Theft ChargesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that CHRISTOPHER CERVINO, a/k/a “Smitty,” and SHEIK F. KHAN, a/k/a “Abida Khan,” were found guilty yesterday afternoon in Manhattan federal court after a three-week jury trial before U.S. District Judge Andrew L. Carter, Jr. for their roles in a securities fraud scheme involving a publicly traded over-the-counter company called VGTel, Inc. (“VGTL”).
Acting U.S. Attorney Joon H. Kim said: “Yesterday, a unanimous jury found Sheik Khan, an investment adviser, and Christopher Cervino, a registered broker, guilty of securities fraud relating to a company called VGTel. The stock fraud scheme Khan and Cervino participated in defrauded 100 investors of more than $15 million, including nearly $5 million from Khan’s clients. For their roles in the scheme, Khan and Cervino now stand convicted of federal crimes.”
According to the Indictment, other filings in Manhattan federal court, and the evidence presented at trial:
The VGTL scheme was conceived and led by Edward Durante, a recidivist securities fraud defendant who pleaded guilty in August 2016 to various crimes related to VGTL, including conspiracy, securities fraud, money laundering and perjury. The defendants’ efforts to artificially inflate the market for VGTL increased the stock price from approximately $.25 per share in April 2012 to as much as $1.90, and dramatically inflated the trading volume, which increased the defendants’ abilities to raise private investments in VGTL. To compensate CERVINO for his efforts to control and manipulate the market in VGTL, Durante made at least two cash payments to CERVINO totaling $35,000, in addition to the substantial commissions Cervino received for executing trades in VGTL. For her part, KHAN received more than $400,000 from Durante, including more than $100,000 in payments for liquidating her clients’ investments in safe annuities so that the money could then be invested into VGTL. KHAN’s clients lost virtually the entirety of their investments in VGTL.
* * *
CERVINO, 44, of Franklin Lakes, New Jersey, and KHAN, 50, of Las Vegas, Nevada, were each convicted of one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; one count of securities fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison. In addition to these charges, KHAN was also convicted of investment adviser fraud, which carries a maximum sentence of five years in prison, and aggravated identity theft crimes, which carries a mandatory sentence of two years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold, Rebecca Mermelstein, and Daniel Goldman are in charge of the prosecution.
Inver Grove Heights Chiropractor Charged in No-Fault Automobile Insurance Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging TIMOTHY WAYNE GUTHMAN, 43, a licensed chiropractor, with one count of conspiracy to commit health care fraud and one count of mail fraud. GUTHMAN made his initial appearance last week in U.S. District Court in Minneapolis.
Under the Minnesota No-Fault Automobile Insurance Act, auto insurance policies must include a personal injury protection provision (PIP). The PIP provision carries a minimum coverage amount of $40,000 for expenses resulting from injuries sustained in an automobile accident, $20,000 of which may be used for medical expenses.
According to the indictment, from 2012 through 2015, GUTHMAN engaged in a scheme to defraud automobile insurance companies by submitting fraudulent no-fault insurance claims and receiving reimbursements through his chiropractic clinics. These claims were for services that either were not medically necessary or were never rendered. GUTHMAN prescribed and purportedly provided services that were not determined medically necessary by the physical condition of each patient, but were instead designed to fraudulently maximize reimbursement from the patients’ automobile insurance companies.
According to the indictment, in order to get more patients to come to chiropractic appointments for treatment they did not need, GUTHMAN would make illegal kickback payments to patient recruiters, known as “runners.” The kickback payments typically ranged between $500 and $1,500 per automobile accident patient that the runner brought to GUTHMAN’S clinics. GUTHMAN would often require a refund of the kickback payment if the patient failed to attend a minimum number of treatment sessions. In order to keep the patients coming back for medically unnecessary appointments, the runners often paid illegal kickbacks to the patients.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the FBI.
Assistant U.S. Attorneys John E. Kokkinen and David M. Maria are prosecuting the case.
Defendant Information:
TIMOTHY WAYNE GUTHMAN, 43
Inver Grove Heights, Minn.
Charges:
- Conspiracy to commit health care fraud, 1 count
- Conspiracy to commit mail fraud, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Houston Couple Sentenced for Violations of Federal Drug LawsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL TAYLOR, age 48, and LESLIE PECK, age 35, both of Houston, Texas, were sentenced today after previously pleading guilty to a two-count Indictment for violations of the Federal Controlled Substances Act. TAYLOR and PECK each pled guilty to conspiring to distribute and to possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine and distributing 50 grams or more of a mixture or substance containing methamphetamine.
U.S. District Judge Carl J. Barbier sentenced TAYLOR to 120 months imprisonment, followed by 5 years of supervised release. PECK was sentenced to 60 months imprisonment, followed by 4 years of supervised release.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, with assistance from the Terrebonne Parish Sheriff’s Office and Louisiana State Police, in investigating this matter. Assistant U.S. Attorney Brandon S. Long was in charge of the prosecution
Honduran Man Pleads Guilty to Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that LUIS GABRIEL RODRIGUEZ-RUIZ, age 33, a citizen of Honduras, pled guilty today to a one-count Indictment charging him with illegal re-entry of a removed alien.
According to court documents, on December 13, 2016, RODRIGUEZ-RUIZ was found in the United States after having been deported previously on February 14, 2013.
RODRIGUEZ_RUIZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for May 18, 2017.
Acting U.S. Attorney Evans praised the work of the Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Hartford Man Pleads Guilty to Heroin Distribution Charge Stemming from Enfield Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that AARON GYAMBIBI, also known as “E,” 26, of Hartford, pleaded guilty today in New Haven federal court to one count of possession with intent to distribute, and distribution of, heroin.
This prosecution is part of an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on May 7, 2016, a 31-year-old male died of suspected drug overdose at an Enfield residence. Enfield Police seized a quantity of heroin and narcotics paraphernalia from the scene.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation, which included analysis of the victim’s cellphone, revealed that the heroin ingested by the victim shortly before his death was purchased from GYAMBIBI.
GYAMBIBI has been detained since his arrest on November 16, 2016. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on July 6, 2017, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the Enfield Police Department. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gregg County Mother and Son Indicted for Student Financial Aid FraudRead the Press Release
TYLER, Texas – A Longview, Texas mother and son have been indicted on federal charges in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherson today.
Gracie Brisco, 54, and her son, Robert Brisco, 29, were indicted by a federal grand jury on Mar. 22, 2017, and charged with multiple counts of student financial aid fraud.
According to the indictment, between June 2013 and September 2015, Gracie Brisco and Robert Brisco, aided and abetted by each other and others, knowingly and willfully misapplied, stole, and obtained by fraud, false statement, and forgery funds, assets, and property provided and insured under the Pell Grant Program and the William D. Ford Federal Direct Loan Programs.
If convicted, the defendants face up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being investigated by the U.S. Department of Education - Office of Inspector General, U.S. Secret Service, U.S. Postal Inspection Service, the Longview Police Department, and the Kilgore College Police Department and prosecuted by Assistant U.S. Attorney Nathanial Kummerfeld.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Greenville Man Pleads Guilty to Possession of a Firearm and AmmunitionRead the Press Release
Contact Person: Max Cauthen, II (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Anthony Devon Myrick, age 25, of Greenville, South Carolina, pled guilty in federal court in Greenville, for being a felon in possession of a firearm, a violation of 18 U.S.C. 922(g). United States District Court Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office. Myrick faces a statutory maximum sentence of ten years in federal prison.
Evidence presented by the government during the plea established that on October 21, 2016, members of the Greenville Sheriff’s Office (GCSO), stopped to investigate a car stopped on the shoulder of the road. As a deputy approached the car, he observed two people in the back seat. As Myrick was exiting the vehicle, a Smith and Wesson 9mm pistol fell from his pants.
Prior to that date, Myrick had previously been convicted of a crime for which he could have received more than a year in prison. Agents confirmed that he had not received a pardon.
Myrick was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department; the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol; United States Probation; the Department of Homeland Security; the Federal Bureau of Investigation; the Drug Enforcement Administration; the 13th Circuit Solicitor’s Office; and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 90 defendants and seizure of approximately 110 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
#####
Greenville Man Pleads Guilty to Possession of a Firearm and AmmunitionRead the Press Release
Contact Person: Max Cauthen, II (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Cornelius Trotoyal Wilson, age 38, of Greenville, South Carolina, pled guilty in Federal court in Greenville, South Carolina, to being a felon in possession of a firearm and ammunition, a violation of 18 U.S.C. 922(g). United States District Court Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report prepared by the U.S. Probation Office.
Wilson faces a mandatory minimum sentence of fifteen years and a maximum sentence of life in federal prison.
Evidence presented by the government during the plea established that on September 15, 2016, officers with the Simpsonville Police Department responded to a local motel based on a report of a domestic disturbance. Upon arrival at the location, officers made contact with several individuals including Wilson. During the investigation, officers recovered a loaded .25 caliber pistol from Wilson after he told the officers that he had a .25 caliber pistol in his pocket.
Prior to that date, Wilson had previously been convicted of a crime for which he could have received more than a year in prison and agents confirmed that he had not received a pardon nor had his rights restored to possess firearms or ammunition.
The Simpsonville Police Department along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the United States Attorney’s Office in Greenville.
#####
Greenville Man Pleads Guilty to Felon in Possession of a Firearm and AmmunitionRead the Press Release
Contact Person: Max Cauthen, II (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Joshua Matthew Garrett, age 26, of Greenville, South Carolina, pled guilty in federal court in Greenville, South Carolina, to being a felon in possession of a firearm and ammunition, a violation of 18 U.S.C. 922(g). United States District Court Judge Bruce H. Hendricks of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Garrett faces a statutory maximum sentence of 10 years in federal prison.
Evidence presented by the government during the plea established that on November 15, 2016, members of the Greenville County Sheriff’s Office (GCSO) made contact with Garrett in his vehicle.
As Garrett was approached by GCSO, Garrett opened the driver’s side door of the vehicle and an officer observed a handgun in the pocket of the driver’s door. GCSO seized the handgun which was identified as a loaded Harrington & Richardson .22 caliber revolver.
Prior to that date, Garrett had previously been convicted of a crime for which he could have received more than a year in prison and agents confirmed that he had not received a pardon nor had his rights restored to possess firearms or ammunition.
Garrett was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department; the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol; United States Probation; the Department of Homeland Security; the Federal Bureau of Investigation; the Drug Enforcement Administration; the 13th Circuit Solicitor’s Office; and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 90 defendants and seizure of approximately 110 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
#####
Gang Members and Mexican Supplier Among Eleven Federal Defendants Charged with Selling Narcotics on Chicago’s West SideRead the Press Release
CHICAGO — Members of a Chicago street gang and a Mexican supplier are among eleven individuals charged for their alleged roles in the distribution of heroin and cocaine on the city’s West Side.
The joint federal and state investigation, dubbed “Operation Shut Travel Down,” spanned more than a year and resulted in the seizures of ten firearms, more than 3,500 grams of heroin, more than 550 grams of cocaine and crack cocaine, and more than 2,000 grams of methamphetamine. Authorities uncovered the alleged criminal activity through the use of wiretapped cellular phones, undercover narcotics purchases and extensive surveillance. The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
The investigation resulted in charges against eleven defendants in federal court and more than 40 defendants in state court. Law enforcement officers arrested several of the defendants this morning. Authorities today also executed search warrants at two alleged drug stash houses, including a barbershop in the 900 block of South Western Avenue in Chicago.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The United States Marshals Service provided valuable assistance.
The federal complaints describe a narcotics-distribution organization in the North Lawndale neighborhood overseen by members of the Traveling Vice Lords street gang. The organization utilized street-level distributors to sell cocaine and heroin at multiple open-air drug markets near the intersection of California Avenue and Lexington Street, according to the complaints. Traveling Vice Lords members used the barbershop to stash the drugs and facilitate distribution. The barbershop’s owner, TYRONE HUNTER, 38, of Chicago, is a ranking member of the gang who is described in the complaints as a drug supplier and a supervisor of the sales.
The complaints identify the operation’s other supervisor as ANTHONY WILLIAMS, 32, of Chicago. Anthony Williams is a Traveling Vice Lord whom law enforcement observed conducting numerous drug transactions, the complaints state. Anthony Williams also sold narcotics to an undercover officer on multiple occasions during the course of the investigation, according to the complaints.
Also charged in the federal complaints are CALVIN WILLIAMS, 41, of Chicago, a Traveling Vice Lord who oversaw the distribution of cocaine and heroin near the intersection of California Avenue and Harrison Street; and several Traveling Vice Lords who sold cocaine and heroin at street level: DEMETRIUS YANCY, 24, of Chicago; RICKY BROOKS, 39, of Chicago; JEROME CHOICE, 46, of Chicago; TERRANCE BROOKS, 34, of Chicago; and ATKINS WILLIAMS, 53, of Chicago.
In addition, two alleged suppliers of the drugs were also charged in the complaints. SIR CHARLES BLAND, 38, of Bolingbrook, and SALVADOR ROJAS-SANTOS, 63, of Mexico, supplied heroin and cocaine to Williams and Hunter for distribution on the West Side of Chicago, according to the charges.
The eleventh federal defendant, JOHN ANTHONY, 40, of Chicago, distributed heroin to undercover officers in North Lawndale on multiple occasions last year, according to the complaints.
Seven of the federal defendants are charged with conspiracy to possess with intent to distribute and distribution of a controlled substance; two are charged with distribution of a controlled substance; one is charged with possession with intent to distribute, and possession of a weapon by an illegal alien; and one is charged with attempted possession with intent to distribute a controlled substance. The federal defendants will begin making initial court appearances this afternoon before U.S. Magistrate Judge Sidney I. Schenkier in Chicago.
The state defendants will appear later in Cook County Criminal Court.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The U.S. Attorney’s Office in Chicago is representing the government in the federal cases. The cases are being prosecuted by Assistant U.S. Attorney Jordan Matthews of the Violent Crimes Section, and Assistant U.S. Attorney Nani Gilkerson of the Narcotics Section.
Fugitive Captured by U.S. Marshals Pleads Guilty to Firearms ChargeRead the Press Release
NORFOLK, Va. – A fugitive captured by the U.S. Marshals at a Suffolk hotel on January 6 pleaded guilty today to being a fugitive from justice in possession of firearms and ammunition.
According to the statement of facts filed with the plea agreement, the U.S. Marshals captured convicted felon David Webb, 40, of Georgia, at a hotel in Suffolk after being on the run for multiple outstanding arrest warrants issued in Dekalb and Chatham County, Georgia. During his time as a fugitive, Webb evaded or eluded police on at least three occasions, including one instance when he fled from police by jumping out of the back window of a hotel and hiding in an alligator-infested swamp.
According to the statement of facts filed with the plea agreement, prior to his capture, Webb was able to evade law enforcement through his use of various aliases and false identity documents. When U.S. Marshals arrested the defendant, he was in possession of more than a dozen driver’s licenses bearing his image but associated with different names. These identification documents included driver’s licenses purportedly issued by the states of Texas, Nebraska, Illinois, Connecticut, Tennessee, Kentucky, Georgia, and the District of Columbia. Webb was also in possession of five social security cards bearing names other than his own, a U.S. Department of Veterans Affairs identification card, and a U.S. Military Common Access Card bearing Webb’s picture and claiming the rank of Sergeant in the Army. At the time of his arrest, U.S. Marshals also recovered methamphetamine, $7,300 in cash, a digital scale, drug packaging materials, ammunition, and three firearms, one of which had an obliterated serial number.
Webb faces a maximum penalty of 10 years in prison sentenced on July 5. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Robert Mathieson, U.S. Marshal for the Eastern District of Virginia; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Kevin Comstock are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-15.
Fort Wayne Man Sentenced to 240 MonthsRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Christian D. Shelton, 39, of Fort Wayne, Indiana was sentenced before Chief District Court Judge Theresa Springmann to a total of 240 months imprisonment and a term of supervised release of 2 years.
On June 4, 2015, at the conclusion of his jury trial, the jury returned verdicts of guilty on all three counts of the Indictment for violations of maintaining a drug involved premises, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to documents in this case, from October 26, 2012, through November 19, 2012, Shelton maintained a premises for the purpose of manufacturing, distributing and using controlled substances. On November 19, 2012, he knowingly possessed a firearm in furtherance of maintaining a drug involved premises, and on that same date he knowingly possessed a firearm and ammunition after previously being convicted of felony offenses on July 21, 2003.
This investigation was conducted by the Bureau of Alcohol Tobacco Firearms and Explosives and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Anthony W. Geller.
###
Forsyth Co. Man Sentenced to Prison for Conspiracy to Distribute Marijuana Through the U.S. Mail and Postal Robbery ChargesRead the Press Release
CHARLOTTE, N.C. – Dorian Dent Williams, 25, Kernersville, N.C., was sentenced late yesterday to 100 months in prison on conspiracy to distribute marijuana through the U.S. mail and postal robbery charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Chief U.S. District Judge Frank D. Whitney ordered Williams to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making the announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to documents filed in the case and yesterday’s sentencing hearing, from about November 2015 to January 9, 2016, Williams operated a marijuana trafficking conspiracy, in which he paid people to receive mailed packages containing marijuana. The packages were sent from Arizona to residential addresses in Charlotte and High Point, N.C. using the U.S. Postal Service. According to court records, on January 9, 2016, a U.S. mail carrier was delivering mail and parcels to a residential neighborhood in Charlotte. Court records indicate that the mail carrier had two parcels addressed to a residence, and was in the process of leaving a delivery notice on the door of the residence when he was approached by a female from a neighboring residence. The female asked for the two packages. The mail carrier refused to give her the packages, indicating they were not addressed to her. The mail carrier was then approached by a male, who stood at the doorway of the postal vehicle and demanded the parcels. The mail carrier again refused to hand them over, threatened to call the police and resumed his mail delivery after the man left.
According to court records, while the mail carrier was still on his delivery route, Williams pulled in front of him in a pick-up truck, blocking his postal vehicle. Then, Williams and another male, who was brandishing a handgun, demanded the two parcels. Court records show that the mail carrier handed over the parcels and the two men drove off in the pick-up truck. Williams previously admitted in court documents that he had arranged for the two packages containing marijuana to be mailed to the residential address on the mail carrier’s delivery route, and that he had been waiting nearby for their delivery. According to court records, over the course of the conspiracy, Williams was responsible for shipping approximately 144 kilograms of marijuana from Arizona to North Carolina utilizing the postal service.
Williams pleaded guilty in October 2016 to one count of conspiracy to distribute and to possess with intent to distribute marijuana, and one count of postal robbery. He remains in the custody of the United States Marshals Service pending placement by the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was led by USPIS and CMPD. Assistant U.S. Attorney Dana Washington, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former Utz Quality Foods Vendor Sentenced in $1.4 Million False Invoice & Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Haas, age 45, of Easton, Pennsylvania, the owner/operator of a former Utz Quality Foods, Inc. supplier, was sentenced today by United States District Court Judge Yvette Kane to 36 month’s imprisonment for his participation in a false invoice, kickback scheme that defrauded Utz Quality Foods, Inc. (Utz) out of approximately $1.4 million.
Judge Kane ordered Haas to pay $925,146 restitution to Utz and $500,000 restitution to Utz’s insurance carrier, Chubb Insurance, for a total of $1,425,146 in restitution. During the sentencing hearing, Haas submitted a check in the amount of $100,000 towards his restitution obligations.
According to United States Attorney Bruce D. Brandler, Haas, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, and Kevin Myers, age 38, formerly of Abbottstown, Pennsylvania, and the former Director of Purchasing for Utz, pleaded guilty in July 2016, to an information charging them with wire fraud.
Haas Packaging & Design supplied Utz with shelving and packaging products. The defendants defrauded Utz between January 2010 and August 2014, by Myers’ preparation of approximately 43 bogus purchase orders and ’ submission of approximately 83 false invoices for products Utz never received. After Myers approved ’ false invoices for payment, Haas would kick back a portion of the proceeds to Myers. According to a forensic audit commission by Utz, received approximately $1,425,765 from Utz and from that amount Haas paid Myers approximately $523,500.
Haas and Myers attempted to conceal some of the kickbacks Haas paid Myers as payments for fictional consulting services. The payments were made in the form of checks payable to “Myers Packaging Consulting,” a non-existent, paper company created by Myers.
Judge Kane sentenced Myers to 51 months’ imprisonment in November 2016. Judge Kane ordered Haas to surrender to the Bureau of Prisons to begin serving his sentence on May 23, 2017.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
# # #
Former New Hampshire Resident Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that William Soltan, 34, of Suffolk County, New York, pleaded guilty to one count of failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to documents that were filed and statements made in court, Soltan left New Hampshire sometime after July 2014 for a temporary visit to New York. At the time he left, Soltan was obligated to return to New Hampshire not later than December 30, 2014. Soltan did not return to New Hampshire, did not register in New Hampshire in 2015, and did not register in New York in 2015. Under SORNA, a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
A sentencing hearing is scheduled for 10 a.m. on June 28, 2017.
The case was investigated by the United States Marshals Service with the assistance of the Manchester Police Department and the Suffolk County, New York, Police Department. The case is being prosecuted by Assistant United States Attorney Donald Feith.
###
Former Lebanon Teacher Pleads Guilty to Downloading Child Porn at SchoolRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Lebanon Junior High School teacher pleaded guilty in federal court today to downloading child pornography.
Evert Henry, 42, of Lebanon, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Feb. 23, 2016, federal indictment.
Henry was a teacher in the Lebanon R-3 School District at the junior high school during the time of the offense. By pleading guilty today, Henry admitted that he received child pornography over the Internet from Jan. 1, 2011, to Jan. 13, 2016.
According to court documents, the Information Technology Director of the junior high school, where Henry was employed as a teacher, discovered he was downloading pornography to his school-issued computer while at the school. Henry admitted that “it was possible” that he had viewed child pornography on his computer. He later specified that he had intentionally searched for images of child pornography. When questioned by law enforcement, Henry confessed that he had been viewing child pornography for a considerable amount of time.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Lebanon, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former GSA Official and Husband Plead Guilty in Nepotism SchemeRead the Press Release
ALEXANDRIA, Va. – A former senior official with the General Services Administration and her husband pleaded guilty today to engaging in a nepotism scheme in which they conspired to fraudulently obtain employment from the U.S. government and private federal contractors.
According to the statement of facts filed with their plea agreements, Helen Renee Ballard, 51, and Robert S. Ballard, 56, both of Brandywine, Maryland, pleaded guilty to conspiracy to make false statements to the United States.
Helen Renee Ballard (aka Renee Ballard) was the Director of the Central Office Contracting Division of the U.S. General Services Administration (GSA) from May 2006 to May 2011 and worked for GSA until 2016. From 2010 through July 2014, Renee Ballard and her husband, Robert S. Ballard (aka Steve Ballard), engaged in a scheme to enrich themselves by obtaining employment with federal contractors and the U.S. government through false and misleading statements concerning Steve Ballard’s relation, education, and qualifications. As part of the more than $200,000 scheme, Renee and Steve Ballard fraudulently induced a federal contractor located in Arlington to hire Steve Ballard. The Arlington based contractor then placed Steve Ballard on a federal contract awarded by GSA and supervised by Renee Ballard. Later, Renee Ballard attempted to hire Steve Ballard for a position within GSA under her supervision.
According to the statement of facts, Renee and Steve Ballard caused over 139 false employment applications to be submitted to federal agencies, including the FBI, Office of the Director of National Intelligence, U.S. State Department, U.S. Transportation and Security Administration, Department of Veterans Affairs, Department of Education, Federal Communications Commission, Federal Emergency Management Agency, Department of Labor, U.S. Office of Personnel Management, and the Internal Revenue Service. These applications falsely misrepresented Steve Ballard’s education and qualifications, including that he had earned or taken classes toward a master’s degree and was certified in government contracting at Levels I, II, and III. In order to corroborate these false representations, Renee and Steve Ballard obtained and submitted fake certification documents. In addition to these fraudulent applications, the Ballards sent Steve Ballard’s false resume to the Executive Office of the President in an attempt to obtain employment there. Subsequently, Steve Ballard submitted false applications to at least six different private contractors who worked, at times on-site, with the federal agencies, including GSA and U.S. Customs and Border Protection.
The Ballards each face a maximum penalty of five years in prison sentenced on July 28. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Carol Fortine Ochoa, Inspector General, GSA, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-136.
Former Coach USA Inc. Executive Sentenced to 15 Months in Prison for Obstruction of JusticeRead the Press Release
A former executive of Coach USA Inc. was sentenced today for attempting to conceal and destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of civil antitrust litigation, the Department of Justice announced.
Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc. (Coach), was ordered to serve 15 months in prison and ordered to pay a $5000 criminal fine. On Oct. 14, 2016, Groen pleaded guilty to corruptly obstructing, influencing and impeding a civil antitrust investigation and subsequent litigation brought by the United States and State of New York.
According to court documents filed in this case in the U.S. District Court for the Southern District of New York, Groen directed his subordinates to recall, conceal and destroy end-of-month backup tapes containing emails that were relevant and responsive to the litigation. Additionally, according to court documents, Groen provided false and misleading information to Coach’s investigators and to the United States during the course of a deposition taken as part of the litigation.
The civil litigation, which was filed in the U.S. District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. On Nov. 17, 2015, the district court entered a final judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division’s lawsuit.
Today’s sentence is a result of an investigation into obstruction of justice conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.
Former Bureau of Prisons Correctional Officer Sentenced for Sex OffenseRead the Press Release
PHOENIX – Yesterday, Edward Mendoza, 37, of Surprise, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 16 months in prison. Mendoza had previously pleaded guilty to sexual abuse of a ward.
Mendoza worked as a Senior Correctional Officer at the Federal Bureau of Prisons in Phoenix, Ariz. His duties included supervision of the women’s camp. Between Feb. 1, 2015, and April 2, 2015, Mendoza engaged in sexual intercourse with a female inmate who he supervised at the camp.
The investigation in this case was conducted by the U.S. Department of Justice, Office of the Inspector General, Denver office. The prosecution was handled by Gayle L. Helart, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-01325-DJH-1
RELEASE NUMBER: 2017-025_Mendoza
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Florida Businessman Pleads Guilty to Conspiracy to Commit Tax and Bank FraudRead the Press Release
Concealed Approximately $2.5 Million in Secret Belize Accounts
A Florida businessman pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit tax and bank fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Casey Padula, 48, of Port Charlotte, was the sole shareholder of Demandblox Inc. (Demandblox), a marketing and information technology business. Padula conspired with others to move funds from Demandblox to offshore accounts in Belize and disguised them as business expenses in Demandblox’s corporate records. Padula created two offshore companies in Belize: Intellectual Property Partners Inc. (IPPI) and Latin American Labor Outsourcing Inc. (LALO). He opened and controlled bank accounts in the names of these entities at Heritage International Bank & Trust Limited (Heritage Bank), a financial institution located in Belize. From 2012 through 2013, Padula caused periodic payments to be sent from Demandblox to his accounts at Heritage Bank and deposited approximately $2,490,688. Padula used the funds to pay for personal expenses and purchase significant personal assets. However, he falsely recorded these payments in Demandblox’s corporate books as intellectual property rights or royalty fees and deducted them as business expenses on Demandblox’s 2012 and 2013 corporate tax returns causing a tax loss of more than $728,000.
Padula also conspired with investment advisors Joshua VanDyk and Eric St-Cyr at Clover Asset Management (CAM), a Cayman Islands investment firm, to open and fund an investment account that he would control, but that would not be in his name. Heritage Bank had an account at CAM in its name and its clients could get a subaccount through Heritage Bank at CAM, which would not be in the client’s name but rather would be a numbered account. Padula transferred $1,000,080 from the IPPI bank account at Heritage Bank in Belize to CAM to fund a numbered account.
In addition to the tax fraud, Padula also conspired with others to commit bank fraud. Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA). In 2012, he sent a letter to the bank stating that he could no longer repay his loan. At the same time, Padula provided Robert Robinson, III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson also pleaded guilty today to signing a false Form HUD-1 in connection with his role in the scheme.
“Casey Padula employed secret offshore bank accounts and shell companies to hide millions and evade U.S. taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As his guilty plea today demonstrates, there are no safe havens any more, whether in Belize, Switzerland or elsewhere around the world, for U.S. taxpayers intent on not paying their fair share of taxes.”
“Today’s plea is the result of another exercise in following the money and it sends a clear message to those who believe they can avoid taxes by hiding their money offshore,” said Chief Richard Weber of IRS Criminal Investigation (CI). “Together with our law enforcement partners, IRS-CI will continue to unravel complex financial transactions and hold those accountable who break the law. IRS-CI special agents will use their financial investigative expertise to ensure taxpayers who violate the law will be brought to justice which is necessary to foster voluntary compliance of our tax laws.”
Padula faces a statutory maximum sentence of five years in prison, a term of supervised release and monetary penalties. As part of his plea agreement, Padula agreed to pay restitution in the amount of $728,609 to the IRS and to BoA in the amount of $728,609. Robinson faces a statutory maximum sentence of one year in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Law Enforcement Agent Arrested on Charges of Helping Mexican National Illegally Enter the United StatesRead the Press Release
LOS ANGELES – A special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) has been arrested on federal charges of helping a foreign national enter the United States without proper authorization.
Felix Cisneros, 42, of Murrieta, a 10-year veteran of ICE who most recently was assigned to the HSI Inland Empire office, was arrested yesterday afternoon pursuant to a criminal complaint filed by federal prosecutors. The complaint was unsealed this morning, and Cisneros is scheduled to make his initial appearance this afternoon in United States District Court.
The complaint charges Cisneros with aiding and assisting an inadmissible alien to enter the United States, a felony offense that carries a statutory maximum penalty of 10 years in federal prison.
The case against Cisneros is the product of an investigation by the Federal Bureau of Investigation; the Department of Homeland Security, Office of Inspector General; and the ICE Office of Professional Responsibility.
According to the affidavit in support of the criminal complaint, Cisneros took steps that allowed an inadmissible Mexican national to enter the United States. Cisneros allegedly acted at the behest of a local organized crime figure with business interests in Mexico.
The alien – a legal permanent resident, who, as a result of felony convictions, would have been barred from re-entering the United States – was employed by the organized crime figure to negotiate with a Mexican company. The complaint alleges that the organized crime figure asked Cisneros in 2013 to help the alien return to the United States after a trip to Mexico.
Cisneros allegedly helped the alien regain a passport that had been seized several months earlier when the alien had attempted to enter and had been paroled into the United States. The complaint further alleges that Cisneros facilitated the alien’s re-entry into the United States at Los Angeles International Airport.
Cisneros convinced officers with U.S. Customs and Border Protection to return the alien’s passport and re-admit him to the United States “likely through deception,” according to the affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Federal Court Bars South Florida Tax Return Preparers from Preparing Tax Returns for OthersRead the Press Release
A federal court in Miami, Florida has permanently barred Aleluya Universal Accounting Services Inc. (Aleluya) and its officers Frantz Petit-Dos, Luczor Fertilien, and David Joseph from preparing federal income tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Petit-Dos of Fort Lauderdale, Florida, Fertilien of Margate, Florida, and Joseph of Lauderhill, Florida, prepared false returns from Aleluya’s office located at 7537 West Oakland Park Boulevard in Lauderhill, Florida. In addition to barring the defendants from preparing tax returns, the court ordered them to post a notice, in English and in Creole, in the store window where they prepared tax returns stating that the defendants are barred from preparing tax returns for others.
According to the government’s complaint, the defendants prepared tax returns that unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients are not eligible to take. For example, the defendants claimed Fuel Tax Credits for customers who did not qualify for this credit, according to the complaint. In particular, Joseph falsely advised one customer that she was eligible for the Fuel Tax Credit because she was self-employed and drove herself to work, according to the complaint. Similarly, Fertilien told the Internal Revenue Service (IRS) that he advised anyone with receipts for gas used in their vehicles could claim the Fuel Tax Credit, according to the complaint.
The government alleged in its complaint that Petit-Dos’s, Fertilien’s, and Joseph’s misconduct predated the creation of Aleluya. Prior to Joseph forming Aleluya in June 2013, Petit-Dos and Fertilien owned a tax return preparation business called Imperial Taxation that was located at the same Lauderhill location as Aleluya, according to the complaint. The complaint alleged that Petit-Dos, Fertilien, and Joseph, a return preparer at Imperial Taxation, prepared false tax returns and committed other violations of the Internal Revenue Code while at Imperial Taxation. Altogether, the complaint alleged that the loss to the U. S. Treasury from the defendants’ activities may be in the millions of dollars.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Paso Man Sentenced to Life in Federal Prison in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso this morning, 30-year-old Emmanuel Velasco Gurrola was sentenced to life in federal prison for his role in a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
Senior United States District Judge David Briones imposed a life-imprisonment sentence on each count to which Velasco Gurrola pleaded guilty prior to trial: three counts of conspiracy to kill in a foreign country and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute. According to court records, Velasco Gurrola was the leader of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana His organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while he and other criminal associates located in El Paso extorted ransom payment from the victims’ families.
In addition to the prison term, Judge Briones ordered that Velasco Gurrola pay over $1 million in restitution to the families of his victims; and, a money judgment for $12,480,000. Judge Briones also ordered that Velasco Gurrola forfeit to the Government various real estate properties he owned in El Paso and Midland counties as well as a condominium located on the Las Vegas Strip.
On October 17, 2016, a federal jury convicted Emmanuel’s 41–year-old brother, Samuel Velasco Gurrola, of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire.
According to evidence presented during his trial, in 2008, Samuel Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Samuel was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Gurrola’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo, and her friend Robert Martinez, were ambushed and murdered.
“This life sentence sends a clear message to transnational criminal organizations. HSI and its law enforcement partners are committed to ensuring the safety and security of our border community,” said Waldemar Rodriguez, special agent in charge of HSI El Paso.
“Mr. Velasco Gurrola falls into the category of the ‘worst of the worst’ criminals. His actions have devastated a family on both sides of the U.S. / Mexico border. The DEA is proud to have played a role with our law enforcement partners in bringing Velasco Gurrola to justice and ensuring that never again will he be able to commit an act of violence in the Borderland,” said Will R. Glaspy, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division.
“The sentence handed down today is the result of outstanding efforts by the FBI and our partner agencies, DEA and HSI. A murderer is behind bars. Justice has been served for the victims, their families, and the greater border community,” stated Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Following his conviction in the murder-for-hire plot, on November 18, 2016, Samuel Velasco Gurrola pleaded guilty to conspiracy to violate the RICO statute, namely acts of drug trafficking and money laundering. Emmanuel and Samuel’s sister, 44-year-old Dalia Valencia, pleaded guilty to the same charge prior to jury selection in the above-mentioned trial.
Samuel Velasco Gurrola is scheduled for sentencing tomorrow at 10:30am before Judge Briones. Dalia Valencia is scheduled for sentencing at 9:30am on April 19, 2017, before Judge Briones. Emmanuel and Samuel’s other sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.
This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
Drug Trafficker Sentenced in Methamphetamine ConspiracyRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Richard Ryan Jones, age 39, of Gaffney, South Carolina was sentenced today in federal court in Greenville, South Carolina, for Conspiracy to Possess with Intent to Distribute Five Hundred Grams or More of a Mixture or Substance Containing Methamphetamine, in violation of 21 U.S.C. § 841(b)(1)(A). United States District Judge J. Michelle Childs of Columbia sentenced Jones to 120 months imprisonment, followed by 5 years of supervised release. Judge Childs has already sentenced co-defendant Charlie Farris to 180 years imprisonment, co-defendant Bobby Spencer to 108 months imprisonment, and co-defendant Joy Nicole Spencer to 60 months imprisonment. Co-defendant Christopher O’Brien has pled guilty and is awaiting sentencing.
Evidence presented at the change of plea and sentencing hearings established that in 2015 and 2016, Richard Ryan Jones was the supplier of methamphetamine to Bobby Spencer, a co-defendant, and others throughout the Upstate. Christopher O’Brien and Joy Nicole Spencer were couriers of methamphetamine for Jones and Bobby Spencer, respectively. Evidence demonstrated that Jones distributed over 20 pounds of methamphetamine throughout the Upstate. Charley Farris and Bobby Spencer were also convicted of carrying firearms in relation to this drug trafficking conspiracy.
The case was investigated by agents of FBI, ATF, Cherokee County Sheriff’s Office, Gaffney Police Department, and Spartanburg City Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
#####
District Man Sentenced to 8 1/2-Year Prison Term for Armed Burglary at Gallaudet University KitchenRead the Press Release
WASHINGTON - Donald Williams, 26, of Washington, D.C., was sentenced today to an 8½-year prison term for forcing his way at gunpoint into the kitchen of the food service department at Gallaudet University, where he used to work, and ordering employees to turn over money kept in a safe, U.S. Attorney Channing D. Phillips announced.
Two of the victims, who are deaf, helped identify him as the gunman.
Williams pled guilty in January 2017, in the Superior Court of the District of Columbia, to a charge of first-degree burglary while armed. He was sentenced by the Honorable Danya A. Dayson. Following completion of his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, in the late afternoon of Oct. 22, 2016, Williams entered his former place of employment, the food service department on the campus of Gallaudet University, in the 800 block of Florida Avenue NE. Upon entry, he pointed a gun at two female employees and forced them into the rear of the kitchen. He forced one of the two victims into a storage room and the other, who is deaf, into a back office space that contained a safe that held daily deposits. He pointed a gun at the latter victim and motioned for her to open the safe. When she refused, he struck her upon the head with the gun, causing a laceration.
Williams left the office and approached a third female employee, who was located in a different area of the kitchen and was unaware that a robbery was taking place; this employee is also deaf. Williams pointed his gun at her, grabbed her by the shirt, forced her into the office with the other victim, and directed her to open the safe. Once she opened the safe, she and the other victim handed money to Williams, who then fled the scene.
During their interviews with members of the Metropolitan Police Department (MPD), the two victims who were directed to open the safe indicated that their assailant reminded them of their former colleague, Williams, who had been fired from Gallaudet University a few weeks before the crime. Although their assailant had a mask covering his face, the victims stated that his build, skin complexion, leanness, mannerisms, and gait were consistent with the defendant’s, whom they had worked with regularly for more than a year.
During their investigation, MPD located surveillance video footage depicting a vehicle similar to the defendant’s enter a parking garage on campus around the time of the crime. The video also depicted a male, wearing clothing identical to the look-out description, exit the vehicle and walk toward the building where the robbery occurred. MPD also recovered video from the defendant’s cell phone showing him dumping a large amount of cash into a bathroom sink bundled with red bands consistent with the description given by the victims. Williams recorded the cell phone video approximately three and a half hours after the crime. Finally, a black mask consistent with the mask described by the victims as the one worn by the assailant was found at the scene and was swabbed for DNA. Subsequent testing revealed the presence of Williams’s DNA on it. Williams was arrested on Dec. 20, 2016.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work performed by the Forensic Biology Unit of the District of Columbia Department of Forensic Sciences as well as Sorensen Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Shana Fulton and Tamika Griffin; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Diana Lim, Katina Adams-Washington, and LaJune Thames, all of the Victim/Witness Assistance Unit; Supervisory Paralegal Supervisor Darline Douglas; Lead Paralegal Specialist Lynda Randolph, and Paralegal Specialist Benjamin Kagan-Guthrie.
Finally, he commended the work of Assistant U.S. Attorney Vanessa Goodwin, who investigated and prosecuted the case.
Decatur Insurance Agent Pleads Guilty to Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – A Decatur, Ill., man, James P. Smith, who worked as an independent insurance agent, today pled guilty to charges that he defrauded his clients of more than $250,000 from February 2011 to July 2016. Smith, 60, of the 5400 block of Traughber Road, appeared before Chief U.S. District Judge James E. Shadid in Peoria. Sentencing is scheduled on July 20, 2017.
During today’s court appearance, Judge Shadid granted the defense’s motion for Smith’s release from federal custody; however, Smith remains in law enforcement custody on charges previously filed by the Macon County State’s Attorney’s Office.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith acted as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
The maximum statutory penalty for each offense is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For each of the offenses, mail fraud (two counts) wire fraud (one count), and money laundering (one count) the maximum penalty is 20 years in prison.
Dallas Man Convicted for His Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Following a four-day jury trial before U.S. District Judge David C. Godbey, a federal jury has convicted Gilberto Gomez, 37, on felony drug offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Gomez was convicted yesterday on one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, and two counts of possession of a firearm in furtherance of a drug trafficking crime. The drug trafficking conspiracy count carries a maximum statutory penalty of life in federal prison and a $1 million fine. Sentencing is scheduled in June.
Co-conspirator Felix Cantu, 30, pled guilty in March 2017 to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. No date has been set for his sentencing.
The government presented evidence at trial that beginning in November 17, 2015 until March 1, 2016 Gomez and Cantu operated a drug distribution enterprise from Gomez’s residence on Palacios Avenue in West Dallas. After a four-month long investigation, DEA and the Dallas Police Department executed a search warrant on the residence and recovered more than $37,000 in cash and over $40,000 worth of narcotics. To protect his drugs, Gomez installed three-inch steel coverings for the windows and a coded-entry metal gate in the hallway leading to the master bedroom. Gomez travelled to California every two weeks to purchase marijuana. He concealed the newly purchased marijuana in hidden compartments of vehicles and shipped them back to Texas on open-air tractor-trailers. In an effort to keep drugs off the streets in that neighborhood, the U.S. Attorney’s Office is seeking an order to forfeit the house since it was used for the criminal activity.
The Drug Enforcement Administration and the Dallas Police Department investigated. Assistant U.S. Attorneys Rachael Jones and P.J. Meitl prosecuted.
# # #
Cuban National Sentenced for Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that YOETNIS VAZQUEZ PEDROSA, age 32, a Cuban national residing in Florida, was sentenced today after previously pleading guilty to one count of conspiracy to commit access device fraud and two counts of access device fraud.
U.S. District Judge Nannette Jolivette Brown sentenced VAZQUEZ PEDROSA to 24 months in prison. Additionally, VAZQUEZ PEDROSA was ordered to pay restitution of $7,873.97 jointly and severally with his codefendants and a $100 special assessment.
VAZQUEZ PEDROSA pled guilty to conspiring with five co-defendants to possess fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. He also pleaded guilty to the substantive offenses of access device fraud and possessing device-making equipment. According to court records, the six defendants traveled from Florida in late July 2015, and agreed to place card skimming devices on gas pumps in the New Orleans area. All defendants have admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information. In February 2016, while on bond in this case, VAZQUEZ PEDROSA was arrested and charged with being a felon in possession of a firearm in the Middle District of Florida. That case remains pending, and VAZQUEZ PEDROSA is presumed innocent until proven guilty in that matter.
VAZQUEZ PEDROSA is the fourth defendant to be sentenced in this case. JESUS ENRIQUE GONZALES TORRES was previously sentenced to 30 months imprisonment; JULIET ESTRADA PEREZ was sentenced to serve 36 months; and LUIS RIVERA GARCIA was sentenced to a term of 57 months. As part of sentencing, U.S. District Judge Nannette Jolivette Brown ordered VAZQUEZ PEDROSA to pay restitution of $7,873.97 jointly and severally with his codefendants and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett was in charge of the prosecution.
Civilian Employee at Aberdeen Proving Ground Pleads Guilty to Accepting Bribes in Exchange for Favorable Actions on ContractsRead the Press Release
Baltimore, Maryland – Rainier Ramos, age 50, of Bel Air, Maryland, pleaded guilty today to bribery in connection with his duties at the U.S. Army Public Health Command at Aberdeen Proving Ground.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to Ramos’ plea agreement, he was a civilian information technology professional at the U.S. Army Public Health Command at Aberdeen Proving Ground (APG). Beginning in 2009, Ramos solicited and accepted bribes from the owner and CEO of an information technology company headquartered in McLean, Virginia (the Company). Specifically, Ramos admitted that he sought and accepted, among other things, meals and drinks, rounds of golf, tickets to sporting events, and gift cards. The sporting events included courtside seats to Washington Wizards basketball games, football tickets and access to the company’s luxury suite for Washington Redskins games at FedEx field, tickets to the see the New Orleans Saints play at the Mercedes Benz Dome in New Orleans, and tickets to see the New Orleans Hornets basketball team in New Orleans. In exchange, Ramos admitted that he took official actions favorable to the Company and the owner in relation to the MEDCOM contract, which was worth more than $50 million.
For example, in exchange for bribes from the Company’s owner, Ramos sought contracting opportunities at APG in the spring and summer of 2010, that would allow the Company to develop a track record of performance, in order to increase the likelihood that the Company would be awarded the MEDCOM contract when it was recompeted in 2011. Ramos admitted that he took the following actions in exchange for bribes: influenced the award of a contract to the Company to deploy and configure 70 desktop and laptop computers at APG; recommended that the MEDCOM contract be reserved for companies that were part of the U.S. Small Business Administration 8(a) program, - a significant benefit to the Company as a certified 8(a) business; provided the owner of the Company with the winning proposal of the previous contractor on the MEDCOM contract, including pricing data, which was sensitive, proprietary information; and helped write the Statement of Work for the MEDCOM contract to increase the likelihood that the Company would be awarded that contract. On May 20, 2010, in an email to the owner of the Company, Ramos stated, “If there’s any way you can pull off a miracle and switch the 10 Eagles/Skins tickets you have already acquired for 10 Skins/Cowboys tickets, I’ll owe you some serious 8A business. . . . Thanks again for EVERYTHING.”
In August 2011, the solicitation for the MEDCOM contract was issued, and Ramos was selected as the Chairman of the Source Selection Board. In early 2012, Ramos recommended that the contract be awarded to the Company. After the Company was awarded the contract, Ramos approved invoices submitted by the Company under the contract. As of July 2016, the Company was paid almost $37 million by the U.S. government for invoices submitted under the MEDCOM contract.
Ramos faces a maximum sentence of 15 years in prison for bribery. As part of his plea agreement Ramos is required to pay a money judgment of at least $33,000, and pay restitution in the full amount of the victim’s losses. U.S. District Judge Richard D. Bennett has scheduled Ramos’ sentencing for July 12, 2017 at 2:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the FBI, Army CID, and DCIS for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Chico Man Sentenced to 50 Years in Prison for Receipt, Distribution and Conspiracy to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Jesse Davenport, aka Draco John Flama, 41, of Chico, today to 50 years in prison for conspiracy to sexually exploit a child, two counts of receipt of child pornography, and one count of distribution of child pornography, U.S. Attorney Phillip A. Talbert announced. Davenport was found guilty by a jury on October 3, 2016.
According to court documents and evidence presented at trial, in August 2013, Davenport conspired with a woman in Connecticut to produce a video of child pornography after meeting her in an online chat room that focused on bondage, domination, sadism, and masochism. At the time, Davenport was on parole and on an electronic ankle monitor for a prior offense. On September 5, 2013, during a parole search, Davenport’s parole officer found an internet-capable cellphone in Davenport’s possession. The officer seized a micro-SD card from the phone to search it for contraband. Several days later, Davenport cut off his electronic monitor and fled from parole. Davenport was arrested in Redding, California on September 12, 2013.
According to evidence presented at trial, a subsequent search of the seized micro-SD card revealed a video of a woman engaged in sexually explicit conduct with a child approximately two to three years old. Further investigation led to the woman in Connecticut who was later arrested. She testified at trial that when Davenport learned she babysat for a two-and-half-year-old girl, he requested that she record a sexually explicit video of the minor and send it to him. The Connecticut woman made the video following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Court documents indicate that Davenport has prior convictions for sex offenses against minors.
U.S. Attorney Talbert said, “Children are the most vulnerable members of our society, and we must do everything we can to protect them from horrific crimes like those committed by this defendant. The sentence handed down today rightly punishes the defendant for his conduct and seeks to ensure that he will not be able to commit crimes against children in the future. My office is committed to protecting the public by continuing to prosecute crimes against children.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Butte County District Attorney's Office, the Redding Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
California Residents Plead Guilty to Obtaining Cell Phones Through Identity TheftRead the Press Release
BOISE – California residents Jeromy Reeves, 27, Karina Flores, 22, Brittany Terry, 20, and Joseph Jancu, 21, pleaded guilty this week to their roles in a fraud scheme to obtain iPhones through identity theft, Acting United States Attorney Rafael Gonzalez announced. They were indicted by a federal grand jury in Boise in September 2016.
According to plea agreements, Reeves organized the group in California and used Flores’ and Terry’s photographs to make fake California driver’s licenses that contained the identifying information of other persons. Once the group arrived in the Boise area, Reeves directed Flores and Terry to use the fake driver’s licenses to open up cellular services contracts in the names of the unsuspecting victims and to obtain iPhones. Flores and Terry intentionally misrepresented themselves as the victims to obtain the iPhones, with the costs then billed to the victims. Their plan was to take the iPhones back to California where they would be re-sold. In total, the group obtained 32 iPhones and other devices before being caught by the Boise Police Department.
According to Jancu’s plea agreement, he knew of the scheme and drove his co-conspirators from store to store where they executed the scheme.
Terry and Jancu are set to be sentenced on June 14, 2017, before Senior U.S. District Judge Edward J. Lodge. Reeves and Flores are set to be sentenced on June 15, 2017, also before Judge Lodge.
The case was investigated by the Boise Police Department.
California Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man pleaded guilty today in U.S. District Court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Virayuth Chau, a/k/a David Chau, 40, of Temecula, Calif., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chau was arrested and indicted along with co-conspirator Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Penn. U.S. District Court Judge Nathaniel M. Gorton scheduled Chau’s sentencing for June 22, 2017, at 3:00 p.m.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, co-conspirators deposited cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the account. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 and 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
Oung is scheduled to plead guilty on April 14, 2017.
The charge of conspiracy to distribute marijuana provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
California Man Indicted for Sex Trafficking Woman for 9 YearsRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a Portsmouth man with sex trafficking by force, fraud, and coercion.
According to the indictment, Naeem Lateef Odums, 39, of Clovis, California, and Portsmouth, Virginia, forced “Jane Doe” to engage in commercial sex acts in California and Virginia for nearly nine years. Odums used a combination of extreme physical violence, threats of violence, and threats of kidnapping Jane Doe’s children, and other forms of control to cause her to perform commercial sex acts. Odums arranged appointments for Jane Doe using a website known to promote prostitution, and collected all the money Jane Doe earned both from her appointments, as well as from her legitimate jobs. In January 2017, Jane Doe was hospitalized after Odums broke three of her ribs and punctured her lung. Odums was originally charged by criminal complaint on March 7.
Odums faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Tonya D. Chapman, Chief of Portsmouth Police Department, made the announcement after the indictment was returned. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Buffalo Man Pleads Guilty to Cocaine ChargeRead 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 Julio Cesar Sanchez, 47, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute, and to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in March of 2015, the Drug Enforcement Agency (DEA) executed a search warrant at an apartment where illegal narcotics were sold. At that time, agents recovered an internal video surveillance system that recorded Sanchez holding and describing a bag of cocaine he intended to sell to customers.
On October 5, 2015, the U.S. Postal Inspection Service (USPIS) intercepted a package shipped from Puerto Rico to an address in Buffalo. Agents executed a search warrant on the package which contained cocaine stuffed inside a set of speakers. After removing the cocaine, the DEA conducted a controlled delivery of the package. During the controlled delivery, the defendant arrived at the address and signed for the package. Upon signing for the package, DEA agents arrested Sanchez.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled for June 29, 2017, before Judge Arcara.
Brandon Resident Sentenced to Prison for Possession of Child PornographyRead the Press Release
Jackson, Miss. – James Glenn Dukes, 64, of Rankin County, Mississippi, was sentenced on March 21, 2017, by U.S. District Judge Daniel P. Jordan III, to serve 150 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood.
In February, 2015, a federal search warrant was executed at Dukes’ residence in Brandon and electronic devices including computers and hard drives were seized. A forensic examination revealed numerous images and videos of minors engaging in sexually explicit conduct. He pled guilty on Sept. 29, 2016 to possession of child pornography.
Acting U.S. Attorney Brittain praised the efforts of the Mississippi Attorney General’s Office and the FBI Jackson Division’s Child Exploitation Task Force who investigated the case. "As this case demonstrates, the coordination of state and federal law enforcement agencies is an essential component in our efforts to combat child exploitation and abuse," said Brittain.
"Children must be protected from any type of exploitation, especially sexual exploitation," said Special Agent in Charge Freeze. "This sentencing indicates the partnership between law enforcement to find and prosecute these types of offenders to the fullest extent of the law. The outcome of this case would have not been possible without the Mississippi Attorney General’s Office."
"Our law enforcement agencies are partnered with state and federal prosecutors in the court systems to ensure that those who take advantage of our children receive the longest sentences," Mississippi Attorney General Jim Hood said. "The 150-month sentence handed down in this case should send a deterrent message to any perverts thinking about abusing our children."
This investigation was initiated by the Mississippi Attorney General’s Office, and was assisted by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. The case was prosecuted by Assistant United States Attorney Glenda Haynes.
Boston Man Sentenced for Murder-For-Hire PlotRead the Press Release
BOSTON – A Boylston Street gang member was sentenced today in U.S. District Court in Boston in connection with attempting to hire a hit man to murder another gang member.
Jaime Rivera, 21, was sentenced today by U.S. District Court Judge Rya W. Zobel to nine years in prison and three years of supervised release. In November 2016, Rivera pleaded guilty to one count of using the mail or the telephone with the intent that a murder-for-hire be committed, and one count of distribution of cocaine. His co-defendant, Frandys Ortiz, 24, was previously sentenced to eight years in federal prison and three years of supervised release.
Beginning in October 2014, Rivera and Ortiz sold firearms, ammunition, heroin and cocaine to a witness cooperating with federal law enforcement agents. On July 4, 2015, the two men were involved in a shooting with another gang member. Shortly after the shooting, Ortiz told the cooperating witness that he wanted the other gang member to be murdered in retaliation for the July 4th shooting, stating that he would pay the cooperating witness, “if the [gang member] dies.” During a separate recorded meeting, Rivera told the cooperating witness “there’s bread for you … if he dies.” Ultimately, Rivera agreed to pay the cooperating witness $2,500 in exchange for murdering the gang member, cautioning the cooperating witness, “I don’t need any leg shots bro … if you gonna do leg shots, don’t even do it.”
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Rachel Y. Hemani of Weinreb’s Criminal Division prosecuted the case.
Bloods Gang Member Sentenced in Manhattan Federal Court to 22 Years in Prison for 2006 MurderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that LARRY GREEN, a/k/a “Mafia,” a/k/a “Maf,” was sentenced in Manhattan federal court to 22 years in prison, in connection with the 2006 drug-related murder of Shawn Williams, a/k/a “Showtime” (“Williams”) in Paterson, New Jersey. Sentenced was imposed by U.S. District Judge Laura Taylor Swain.
Acting U.S. Attorney Joon H. Kim said: “This case is yet another example of the senseless violence that often accompanies drug dealing on our city streets. Today, Larry Green was sentenced to 22 years in prison for murdering a rival drug dealer over a turf dispute in Paterson, New Jersey. This case exemplifies the determination of this Office and our law enforcement partners to ensure that even after 11 years, the perpetrator would be held responsible for this ruthless murder.”
GREEN previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin.
According to the indictment previously filed in Manhattan federal court and public information:
GREEN, an enforcer of the Fruit Town Brims set of the Bloods street gang, was arrested on February 22, 2014, in Paterson, New Jersey. On March 17, 2016, GREEN pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin, from 2006 through 2014. GREEN admitted that, as part of the charged narcotics distribution offense, he and his co-conspirators were engaged in an ongoing dispute concerning, alia, drug distribution territory in Paterson. In connection with that ongoing dispute, on or about July 2, 2006, GREEN encountered Williams, who was inside a vehicle that was driving in the vicinity of 145 North Main Street, in Paterson. GREEN pulled out a firearm, and fired one shot at the vehicle, striking and killing Williams.
* * *
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Newark Division, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Clifton Police Department, and the New Jersey State Police.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorney Justina L. Geraci is in charge of the prosecution.
Bakersfield Man Charged with Multiple Counts of U.S. Postal Theft and Possession of 15 or More Credit CardsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Jason Leroy Geiser, 36, of Bakersfield, charging him with conspiracy to possess stolen U.S. mail and to unlawfully possess 15 or more unauthorized access devices (credit or debit cards), and other related charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October 1, 2016, and March 2, 2017, Geiser conspired with others to steal mail and to use information and access devices obtained from the stolen mail for their own monetary benefit.
This case is the product of an investigation by the United States Postal Inspection Service and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Geiser faces a maximum statutory penalty of 10 years in prison and a $250,000 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Altoona Man Admits Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Blair County resident pleaded guilty in federal court to a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
Timothy Hufford, 56, of Altoona, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 18, 2015, Hufford knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for July 6, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
“HSI special agents will relentlessly pursue predators who deal in the exploitation of images our children,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Thanks to the ceaseless efforts of our highly skilled HSI special agents another sexual predator will face justice.”
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona Police Department conducted the investigation that led to the prosecution of Hufford.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.