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Friday 3 February 2017
Jacksonville Man Arrested for His Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III, announces the arrest of Dreshawn Royell Mays (23, Jacksonville) for conspiracy to defraud the United States, theft of government money, and aggravated identity theft. If convicted, he faces 12 years’ imprisonment and could be ordered to pay restitution of at least $67,859 to the Internal Revenue Service. Earlier this week, Mays was ordered detained pending trial. He was indicted on May 26, 2016.
Charmaine Bates (42, Jacksonville) also was indicted on May 26, 2016, and she has since pleaded guilty to conspiracy to defraud the United States and aggravated identity theft. Her sentencing hearing is scheduled for February 28, 2017, in Jacksonville.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by the Internal Revenue Service - Criminal Investigation’s North Florida Financial Crimes Task Force, which is comprised of Internal Revenue Service – Criminal Investigation, the United States Secret Service, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Jacksonville Businessman Sentenced to 14 Years in Connection with Faking His DeathRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Jose Salvador Lantigua (63) to 14 years in federal prison for bank fraud and conspiracy to commit mail and wire fraud. His wife, Daphne Simpson, was sentenced to 5 years’ probation but had already served 17 months of pretrial detention. Both will also be ordered to make complete restitution to the victims of the charged offenses. They pleaded guilty in September 2016.
According to court documents, Lantigua owned and operated Circle K, a furniture store in Jacksonville. In 2012, Circle K was suffering financial problems and Lantigua sought financing for the business from banks and personal lenders. Using false and fraudulent documents, Lantigua procured $2 million in loans from a Jacksonville bank.
In January 2013, Lantigua lied to Simpson and told her that he was suffering from Creutzfeldt-Jakob Disease (CJD), commonly referred to as “Mad Cow Disease,” that he had six months to a year to live, and that he could receive surgical treatment for his disease, but not in the United States. Initially, Lantigua told Simpson that he would be traveling to Colombia, South America, for the potentially life-saving surgery. Shortly before he was scheduled to leave, however, he told her that he did not have CJD, but that his past was catching up with him from his time with an Army military special operations “team.” He explained that the “team” had killed a drug cartel leader and he was currently being blackmailed by a rogue CIA agent who would expose Lantigua’s identity to the alleged cartel member’s son if he did not satisfy the blackmail demands. He also told his wife that both their families were in danger and that he needed to fake his death in order to protect them. This new explanation was also entirely false. Lantigua then developed a plan to leave the country and to secure a fraudulent death certificate.
In April 2013, Lantigua traveled to Margarita Island, just off the coast of Venezuela, and purchased a sham death certificate and a fraudulent certificate of cremation. Later in the month, Simpson joined Lantigua in Venezuela, where she obtained a certificate of death abroad using the sham death certificate and certificate of cremation. She then returned to Jacksonville.
In June 2013, Simpson began to submit fraudulent claims to seven life insurance companies. The death benefit applications claimed that her husband had died due to complications from CJD and that the purpose of his trip to Venezuela had been to seek medical treatment. In total, Lantigua had seven separate life insurance policies cumulatively valued at more than $6.6 million. Based upon issues identified by several of the companies, however, only three polices paid death benefits, which totaled $871,067.11.
In the fall of 2013, Simpson took a cruise to the Bahamas to meet up with Lantigua. While in the Bahamas, they paid an individual $5,000 to smuggle them into the United States on a fishing boat. Once in the United States, Lantigua traveled under a false identification, using the name Harry Fields. In early December 2013, he traveled by bus to Jacksonville, where Simpson picked him up and they drove to a house they had purchased on their honeymoon in Cashiers, North Carolina.
On September 30, 2014, Lantigua went to a North Carolina Department of Motor Vehicles office and fraudulently obtained a driver’s license in a false name. Less than two months later, he went to a United States Post Office in North Carolina and fraudulently applied for a passport using the false name. Officials detected the passport fraud and also discovered a previous passport issued in the name Jose Salvador Lantigua.
On March 21, 2015, Special Agents from the State Department and the North Carolina State Bureau of Investigations conducted surveillance near the home that Lantigua had used in his fraudulent applications, confronted Lantigua, and then arrested him.
This case was investigated by the United States State Department, the United States Department of Health and Human Services, the Internal Revenue Service, the North Carolina Bureau of Investigations, and the Florida Department of Financial Services. It was prosecuted by Assistant United States Attorney Mark B. Devereaux.
Illinois Man Sentenced to 32 Years for Heroin Trafficking in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Oak Lawn, Ill., man and a Springfield, Mo., man have been sentenced in federal court for their roles in a heroin trafficking conspiracy in the Springfield area.
Deauntee Q. Mosby, 24, of Oak Lawn, and Joshua C. Leamon, 26, of Springfield, were sentenced in separate appearances before U.S. District Judge Roseann Ketchmark on Thursday, Feb. 2, 2017. Mosby was sentenced to 32 years in federal prison without parole. Leamon was sentenced to five years and 10 months in federal prison without parole.
Both Mosby and Leamon pleaded guilty to participating in a conspiracy to distribute more than 100 grams of heroin in Greene County, Mo., between May 29, 2013, and Feb. 12, 2015.
Mosby admitted that he bought heroin in the Chicago, Ill., area and had it transported in vehicles to the Springfield area, where it was sold to Leamon and other co-conspirators for distribution.
Mosby was stopped by law enforcement officers on two occasions. On Aug. 28, 2013, he was the passenger in a vehicle that was stopped in Nixa, Mo. Mosby, who smelled of marijuana, was asked to get out of the vehicle. The officer searched the vehicle and found a syringe that contained heroin between the front driver and passenger seat, a digital scale with heroin residue, and $2,373 in the driver’s wallet. The officer also found a firearm in the trunk. Mosby was also stopped in Pulaski County, Mo., on Jan. 12, 2015, by a St. Robert, Mo., police officer. The officer smelled marijuana in the vehicle and arrested Mosby for an active warrant. Officers searched the vehicle and found a plastic bag behind a panel below the center console that contained 59.36 grams of heroin.
Mosby also admitted that he sold seven grams of heroin to a confidential law enforcement informant in Springfield for $1,100 on Sept. 13, 2013.
Leamon admitted that he purchased heroin from Mosby and other conspirators. He would then distribute the heroin for $30 for each tenth of a gram. Leamon sold and used approximately a quarter of an ounce of heroin per week. Leamon also admitted that he accompanied others to Chicago, St. Louis, Mo., and Fort Leonard Wood, Mo., to buy large amounts of heroin.
Leamon admitted that he sold a Kel-Tec 9mm semi-automatic pistol and .93 gram of heroin during an undercover drug buy with Springfield Police Department detectives and a confidential informant on Feb. 12, 2015.
Mosby and Leamon are the final defendants among seven co-defendants who have been sentenced in this case.
This case was prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Ami Harshad Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
INFORMATION: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on January 30, 2017 and entering pleas of Not Guilty were:
- ETHEL MARIE BRADY, a 38-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter, and assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, BRADY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-02
Appearing before U.S. Magistrate Cavan in Billings on January 25, 2017 and entering pleas of Not Guilty were:
- ROBERT WESLEY LAFOUNTAIN, a 43-year-old resident of Lodge Grass, appeared on charges of assault resulting in substantial bodily injury, assault of a dating partner by strangulation, and interstate domestic violence. If convicted of the most serious charges contained in the indictment, LAFOUNTAIN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-120
- JESSE JAMES MEYERS, a 25-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, MEYERS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 17-06
Appearing before U.S. Magistrate Johnston in Great Falls on January 24, 2017 and entering pleas of Not Guilty were:
- SEAN ROBERT ROBINSON, a 30-year-old resident of Great Falls, appeared on charges of possession of a stolen firearm, and possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charge contained in the indictment, ROBINSON faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department. PACER Case Reference. 16-39
Appearing before U.S. Magistrate Cavan in Billings on January 24, 2017 and entering pleas of Not Guilty were:
- DONALD THEODORE FULLER, a 33-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, FULLER faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Eastern Montana HIDTA. PACER Case Reference. 17-05
Appearing before U.S. Magistrate Johnston in Great Falls, on January 19, 2017 and entering pleas of Not Guilty were:
- GILBERT DUANE BRADLEY, a 45-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury, and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, BRADLEY faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services. PACER Case Reference. 17-02
Appearing before U.S. Magistrate Cavan in Billings on January 11, 2017 and entering pleas of Not Guilty were:
- SIDNEY CHARLES DECRANE, a 39-year-old resident of Pryor, appeared on charges of abusive sexual contact with a minor. If convicted of the charge contained in the indictment, DECRANE faces 2 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-118
Appearing before U.S. Magistrate Cavan in Billings on January 10, 2017 and entering pleas of Not Guilty were:
- HOLLY NICOLE NIEMI, a 37-year-old resident of Billings, appeared on charges of felon in possession of a firearm and ammunition. If convicted of the charge contained in the indictment, NIEMI faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-124
Appearing before U.S. Magistrate Johnston in Great Falls, on January 10, 2017 and entering pleas of Not Guilty were:
- THOMAS LEE SCOTT, a 20-year-old resident of Chelsea, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, SCOTT faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation, Fort Peck Tribes Department of Law and Justice and the Roosevelt County Sheriff’s Office. PACER Case Reference. 16-83
Appearing before U.S. Magistrate Johnston in Great Falls, on January 9, 2017 and entering pleas of Not Guilty were:
- MICHAEL EDWARD COPENHAVER, a 28-year-old resident of Belgrade, appeared on charges of possession of stolen firearm or ammunition, stealing firearm from a licensed dealer, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, COPENHAVER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gallatin County Sheriff’s Office. PACER Case Reference. 16-18
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hancock Woman Sentenced to a Year and a Day for Bank EmbezzlementRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jodi L. Webber, 37, of Hancock, Maine, was sentenced today in U.S. District Court by John A. Woodcock, Jr. to a year and a day in prison and five years of supervised release for embezzling bank funds. She was also ordered to pay $19,400 in restitution. Webber pled guilty on September 21, 2016.
According to court documents, in September 2015, Webber was hired by Camden National Bank as a teller at its Bar Harbor (Town Hill), Maine branch. Between November 2015 and February 2016, Webber stole $19,400 from her teller drawer and replaced it with money she withdrew from five customer accounts. She targeted the accounts of elderly customers and forged their signatures on withdrawal slips. She typically reversed those withdrawals on the same day that she made them after the bank’s cash audit had been completed. Her embezzlement scheme was discovered when a customer questioned an unauthorized withdrawal from the customer’s account that had not been reversed. That inquiry caused the bank to conduct a comprehensive examination of the defendant’s transactions and to contact law enforcement.
In imposing sentence, Judge Woodcock said: “You violated a fundamental obligation an employee owes to an employer not to steal from the employer or cheat its customers.”
The case was investigated by the Federal Bureau of Investigation.
Guatemalan national pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Obed Zabaleta, 23, entered his guilty plea to illegally reentering the United States.
Zabaleta had previously been removed from the United States to his home country of Guatemala on July 24, 2014, and again on January 15, 2015. Zabaleta then illegally reentered the United States and was found in Charleston after a traffic stop by the West Virginia State Police on November 9, 2016, on I-79 near Exit 1. Zabaleta had not formally applied for permission to legally reenter the United States and was not otherwise in the United States legally.
Zabaleta faces up to two years in federal prison when he is sentenced in March 2017. He is also subject to deportation proceedings at the conclusion of this case.
The Department of Homeland Security conducted the investigation, with assistance from the West Virginia State Police. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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Guatemalan National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RUDY OTONIEL AZANON-RODAS, age 51, a citizen of Guatemala, was charged today in a one-count Bill of Information for reentry of a removed alien, in violation of8 U.S.C. § 1326.
According to the Bill of Information, on or about December 29, 2016, AZANON RODAS was found in the United States after having been officially deported and removed on or about May 2, 1986.
If convicted, AZANON-RODAS faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of Enforcement and Removal Operations Investigations in investigating this matter. Assistant United States Attorney Irene Gonzalez is in charge of the prosecution.
Fullerton Man Pleads Guilty to Filing False Federal Income Tax Returns in $1.1 Million Fraudulent Refund SchemeRead the Press Release
LOS ANGELES – A Fullerton return preparer has pleaded guilty in a scheme to defraud the Internal Revenue Service through the filing of bogus returns claiming tax refunds.
Michael Raymond Martinez, 48, of Fullerton, pleaded guilty yesterday afternoon before United States District Judge Beverly Reid O’Connell to one count of aiding and assisting in the preparation and presentation of a false tax return.
Martinez, who often met with clients at their homes or at neutral locations, operated under the names Your Home Tax Service, Great Tax Services and Great Tax Solutions. According to a plea agreement filed in this case, from at least the beginning of 2009 until April 2015, Martinez prepared and filed with the IRS at least 245 false federal income tax returns that resulted in tax losses to the United States of approximately $1,155,006.
“This defendant falsely claimed to be a certified public account and a former IRS agent to gain credibility with clients and potential clients,” said United States Attorney Eileen M. Decker. “He typically met with his clients at locations other than his office, the meetings typically lasted for only a few minutes, and he ‘guaranteed’ large refunds. All of these factors are red flags that taxpayers should heed when choosing a tax preparer.”
During his brief meetings with clients, Martinez received clients’ income documents, taxpayer questionnaires, and documents pertaining to interest and expenses. Martinez also took payment during these meetings. Martinez typically prepared and electronically filed the tax returns, but he would not review the returns with his clients.
“To build faith in our nation’s tax system, honest return preparers need to be assured that dishonest preparers will be held accountable,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation, together with the Department of Justice, will continue to investigate and prosecute those who violate our tax system.”
In addition to the 245 fraudulent tax returns filed for clients, Martinez failed to report taxable income from his tax preparation business for the tax years 2011 and 2012 in the amounts of $162,479 and $111,000, respectively. The failure to report income for these two years created an additional loss to the government for 2011 and 2012 of $52,884 and $33,842, respectively.
Martinez faces a statutory maximum sentence of three years in federal prison when he is sentenced by Judge O’Connell on May 15. Martinez may also be ordered to pay restitution.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers.
This case is the product of an investigation by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Paul Rochmes of the Tax Division.
Fort Washington Cocaine Dealer Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Hameed Jide Bello, 38, of Fort Washington, Maryland, was sentenced today to seven years in prison for conspiracy to distribute 500 grams or more of cocaine.
Bello pleaded guilty on Nov. 17, 2016. According to court documents, Bello sold cocaine from May 2015 until his arrest in July 2016 while attempting to sell four ounces of cocaine. During much of that time, Bello regularly sold cocaine in amounts ranging from one ounce to one kilogram to Cristan Taylor of Springfield, who will be sentenced on March 3. Taylor would then redistribute the cocaine to others in Fairfax County and elsewhere.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Andrew W. Vale, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
The case was investigated by the FBI and DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Fifty Pounder. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-219.
Former Treasurer of Patterson Fire Department Sentenced to 33 Months in Prison for Embezzlement and Filing False Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALBERT MELIN, the former treasurer of the volunteer Patterson Fire Department (“PFD"), was sentenced today by U.S. District Judge Nelson S. Roman to 33 months in prison for fraud and tax charges arising out of his embezzlement of more than $1.1 million from the PFD.
According to documents filed in court, MELIN, a chiropractor, was elected treasurer of the PFD in 2013. From in or about December 2013 to in or about October 2015, MELIN embezzled PFD funds under his control by writing checks to the two businesses he owned, 211 Medical, P.C. (“211 Medical”), and N.A.S. Management Co., Inc. (“N.A.S.”). MELIN then deposited the checks to bank accounts held by 211 Medical or N.A.S. MELIN also charged expenses of 211 Medical and N.A.S. to the PFD’s debit card.
MELIN embezzled more than $1.1 million by writing more than 130 fraudulent checks. He used the money to support 211 Medical and N.A.S., to make payments on his home mortgage loan and to pay personal expenses, including the costs of family vacations. MELIN failed to report this income on his personal return for 2014 and falsely reported some of the embezzled funds as revenue on the corporate return for 211 Medical in an effort to disguise their source.
On November 2, 2016, MELIN pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of subscribing to false tax returns, which carries a maximum sentence of three years in prison.
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In addition to the prison sentence, MELIN, 46, of Cary, North Carolina, was sentenced to three years of supervised release. Judge Roman also ordered MELIN to forfeit $1,151,665.76 in ill-gotten gains and to pay $1,349,318.76 in restitution.
Mr. Bharara praised the outstanding investigative work of the IRS, FBI, New York State Comptroller, and New York State Police. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former TSA Transportation Security Officer Sentenced to 21 Months in Prison for Circumventing Security Checkpoint ScreeningRead the Press Release
OAKLAND – Kiana Scott Clark, 29, of Oakland, Calif., was sentenced today to 21 months in prison for conspiring to defraud the United States by obstructing, impeding, and interfering with the aviation security functions of the Transportation Security Administration (TSA) and for conspiring to distribute controlled substances, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and TSA Office of Inspection, Investigations Division Acting Special Agent in Charge Connie M. Youngers. The sentence follows a plea agreement entered June 17, 2016.
According to the plea agreement, Clark admitted she abused her official, public, and sensitive position as a TSA Transportation Security Officer between 2013 and 2015 to enable drug smugglers, with whom she conspired, to circumvent the required TSA screening of carry-on baggage. Clark acknowledged that on April 16, 2015, she was a TSA officer at the Oakland International Airport and had informed her co-conspirators of the security lane where she was positioned and the time when she was the TSA officer responsible for the x-ray screening of carry-on baggage at the TSA security checkpoint. Instead of performing or requesting additional screening as her TSA duties required, Clark allowed her co-conspirator and the carry-on baggage to clear the TSA security checkpoint. Clark’s co-conspirator entered the secure area of the airport and boarded a commercial aircraft. Clark admitted that her conduct on April 16, 2015, facilitated the smuggling of approximately 10.9 kilograms of marijuana. Clark further admitted that she had engaged in such corrupt and criminal conduct on multiple prior occasions and had conspired in such conduct between 2013 and 2015.
“Congress created the TSA two months after the terrorist attacks on September 11, 2001, to ensure the security of aircraft and airports throughout the United States,” said U.S Attorney Stretch. “As federal employees charged and entrusted with carrying out this mission, TSA Transportation Security Officers take an oath to faithfully discharge their duties. In this case, through her deception and dishonesty, Clark corruptly and repeatedly violated this oath. Clark betrayed not only the public trust and the TSA, but also her fellow TSA officers who strive to perform their duties consistently, conscientiously, and faithfully to ensure aviation security. This office will vigorously prosecute people who violate the law and put the public at risk.”
Clark was indicted by a federal grand jury on December 15, 2015, and charged with two counts of conspiring to defraud the United States, in violation of 18 U.S.C. § 371, and two counts of conspiring to distribute a controlled substance, in violation of 21 U.S.C. §§ 846, 841. Pursuant to her plea agreement, Clark pleaded guilty to one count of conspiring to defraud the United States and one count of conspiring to distribute a controlled substance.
The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving her sentence on April 7, 2017.
This case is being prosecuted by the Special Prosecutions and National Security Unit at the United States Attorney’s Office, and is the result of an investigation by the Federal Bureau of Investigation, Alameda County Sheriff’s Office, TSA Office of Inspection, Investigations Division, City of Tracy Police Department, and San Joaquin County District Attorney’s Office.
Former Payroll Specialist Pleads Guilty in Embezzlement CaseRead the Press Release
WASHINGTON – KaShaun Perkins, 43, of Upper Marlboro, Md., pled guilty today to the federal charge of wire fraud for embezzling from his employer, causing a loss in excess of $275,000, announced U.S. Attorney Channing D. Phillips.
Perkins, who pled guilty in the U.S. District Court for the District of Columbia, is to be sentenced on April 21, 2017 by the Honorable Christopher R. Cooper. Under the advisory federal sentencing guidelines, he faces a possible prison sentence of 21 to 27 months. Perkins also agreed to pay $249,096 in restitution, and a forfeiture money judgment in the same amount.
According to a statement of the offense, signed by the defendant as well as the government, Perkins worked as a payroll specialist from December 2014 to July 2015 at a global consulting firm. As a payroll specialist, he managed external payroll provider services in order to ensure salaries were accurately and timely processed for payments. Perkins also updated the payroll and human resources information systems with bank account numbers, Social Security numbers, addresses, and names of employees and maintained these employee records.
From January to July 2015, according to the statement of offense, Perkins caused his employer to pay out approximately $275,000 in bogus salary and tax withholding payments for “ghost” employees. Perkins altered a terminated employee’s payroll profile, repeatedly changing entries such as name, Social Security number, bank account number, address, and salary payments. In fact, none of the altered data corresponded to an actual employee. Through these changes to the payroll system, Perkins caused the unauthorized salary payments to be directly deposited into accounts in his name, accounts with his joint ownership, and accounts under his control. By directing the payroll provider service to make these payments, Perkins obtained “salary” payments of “ghost” employees totaling $249,096. The employer paid an additional $26,092 in tax withholdings, for a total loss of $275,188.
In announcing the plea, U.S. Attorney Phillips expressed appreciation for the work performed by Forensic Accountant Jean Luc Guerrier of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, as well as Paralegal Specialist Christopher Toms, Assistant U.S. Attorney Diane Lucas, who assisted with forfeiture issues, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Owner of Environmental Services Company Indicted for Illegally Disposing of Hazardous WasteRead the Press Release
LEXINGTON, Ky. – A federal grand jury in Lexington, Ky., returned an indictment against a former central Kentucky businessman on one count of conspiracy and seven counts of environmental law crimes under the Resource Conservation and Recovery Act (RCRA).
The indictment, returned on Thursday, specifically charges Kenneth Gravitt with illegal storage, transportation and disposal of a hazardous waste.
Kenneth Gravitt was the owner and operator of Global Environmental Services (GES), which operated at sites in Georgetown, Cynthiana, and Winchester. In 2013, GES began recycling Cathode Ray Tubes (CRTs), which are the vacuum video tubes inside older box televisions and computer monitors. Because CRTs contain large amounts of lead, their disposal presents a potential environmental hazard and is regulated by RCRA. Lead is extremely toxic and can cause serious health problems upon exposure, and therefore must be disposed in a particular way that is safe for the community.
According to the indictment, GES received for recycling many more loads of CRTs than it could process and disposed of numerous CRTs illegally. Specifically, Gravitt, aided and abetted by others, allegedly transported the CRTs to a Georgetown landfill that did not have a permit to handle hazardous waste; stored ground-up CRT glass containing excessive amounts of lead in large, open, outdoor piles; and put thousands of CRTs and glass in a large hole that had been dug behind the Georgetown facility, all in violation of federal environmental laws.
Carlton S. Shier IV, Acting United States Attorney for the Eastern District of Kentucky made the announcement today.
If Gravitt is convicted, the maximum punishment on each count is 5 years imprisonment and a $250,000 fine. The investigation was conducted by the United States Environmental Protection Agency, Criminal Investigation Division. The case was presented to the grand jury by Assistant U.S. Attorneys Ken Taylor and Erin Roth.
Any sentence upon conviction will come after the Court considers the U.S. Sentencing Guidelines and the federal statue.
Former IRS Employee Pleads Guilty to Health Care FraudRead the Press Release
Lynchburg, VIRGINIA – A former employee of the Internal Revenue Service pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to health care fraud charges related to his misuse of government health insurance benefits, Acting United States Attorney Rick A. Mountcastle announced.
Ronald Lewis Hooper, 69, of Lynchburg, Va., pled guilty today to one count of health care fraud.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jennie L. M. Waering, should this case have gone to trial, the United States would have proven that Hooper misused his government health benefits to seek opiate drugs such as Nubian, Phenergan, and others, at various emergency departments. The United States would have proven that Hopper began seeking these drugs at various emergency departments only after his primary physician began to restrict the number of injections he would provide to Hooper to two per week. Hooper sought additional injections at emergency departments at hospital facilities throughout Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida.
Between December 2002 and December 2012, Hooper received services at hospitals and emergency rooms on approximately 1,700 separate occasions seeking injections of Nubian and Phenergan, incurring more than $824,000 in fraudulent medical payments.
The investigation of the case was conducted by the Office of Personnel Management, the Federal Bureau of Investigation and the Blue Cross Blue Shield Special Investigations Unit. Assistant United States Attorney Jennie L. M. Waering prosecuted the case for the United States.
Former Ford Dealership Manager Pleads Guilty to Prescription Drug Distribution ChargesRead the Press Release
RENO, Nev. – Richard Winston West II, aka Richie West, former manager of the Jones-West Ford dealership in Reno, Nev., pleaded guilty today to prescription drug conspiracy and possession with intent to distribute oxycodone, announced U.S. Attorney Daniel G. Bogden of the District of Nevada, Special Agent in Charge Steve Corner of the DEA’s Los Angeles field office, and Special Agent in Charge Aaron C. Rouse of the Las Vegas field office. At the time of sentencing, West faces up to 20 years in prison for his plea of guilty to the conspiracy charge. Sentencing is set for May 8, 2017.
“Prescription drug abuse is a major public health and public safety issue. Nevada citizens should be concerned and be aware of its dangerous impact and effects,” said U.S. Attorney Bogden. “We are fighting collaboratively with our law enforcement partners pursuing dirty doctors and illicit pill mills to ensure that our communities remain safe and that we bring wrongdoers to justice and stem the rising tide of prescription drug abuse.”
“While the immediate impact on the Reno community is profound, sadly this case is representative of the broader national threat we face in prescription opioid misuse and addiction,” said SAC Comer. “Torn communities, broken homes and lost lives demonstrate vividly the fight we are engaged in, and DEA will continue to combat these horrors by identifying, investigating and arresting those responsible for the illicit distribution of controlled pharmaceutical drugs.”
“The successful investigation of this case is through the extraordinary and dedicated work by the FBI and our federal, state, and local law enforcement partners. This case shows the seriousness the FBI places on the upward trend of opioid addiction supported by the unscrupulous acts of the very people who should be looking out for their patients’ best interests. This is not the end of this problem, but the community should know that the FBI will be steadfast in our resolve to stem the tide in Nevada,” said SAC Rouse.
West, 40, was one of nine defendants charged on May 11, 2016, with conspiracy to distribute and possess with intent to distribute controlled substances, including oxycodone. According to admissions made in the plea agreement, beginning in November 2012 and continuing to April 2016, West conspired with co-defendant Dr. Robert Gene Rand, a Nevada physician who operated Rand Family Care in Reno, and others to illegally distribute and possess with intent to distribute prescription controlled substances, including oxycodone. At relevant times of the conspiracy, West obtained oxycodone prescriptions from Rand not for a legitimate medical purpose and ultimately distributed at least 500 oxycodone pills in 30 milligram dosages to others. In addition, West arranged the distribution of oxycodone via text messages to co-defendants, each of whom were at one time or another employees of the vehicle dealership. West referred several of the co-defendants to Rand to obtain prescriptions for painkillers, some of which were prescribed and obtained for neither a legitimate medical purpose nor in the usual course of medical practice. At the time of West’s arrest, he possessed a Sig Sauer pistol in furtherance of the conspiracy to distribute and possessed with intent to distribute controlled substances.
Co-defendants Rand, 53, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, were each charged in the same conspiracy. Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. Jury trial is set for April 25, 2017, before U.S. District Judge Miranda M. Du.
According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Every day, more than 1,000 people are treated in emergency departments for misusing prescription opioids. Overdoses involving opioids killed more than 33,000 people in 2015, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
The case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, ICE-HSI, ATF, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery.
The case is being by prosecuted by Assistant U.S. Attorneys James Keller, Sue Fahami, and Shannon Bryant.
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Former Financial Adviser at Global Bank Charged in Manhattan Federal Court with Multimillon-Dollar Scheme to Defraud ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that BARRY CONNELL was charged with wire fraud and aggravated identity theft for allegedly using his position as a financial adviser at a global financial institution based in New York City (the “Bank”) to defraud multiple Bank clients out of at least $5 million over a one-year period. CONNELL was arrested this morning in Henderson, Nevada, and will be presented later today in federal court in Las Vegas, Nevada.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Barry Connell used his clients’ bank accounts as his own, siphoning off millions of dollars to pay for his extravagant lifestyle, including a country club membership and private jet expenses.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The reliability of our banking system is paramount to the success of our economy and ability of our markets to flourish. But when that confidence deteriorates because people allegedly breach the expectation of trust, we all suffer. There’s no excuse for this type of alleged crime, especially when a client’s hard-earned money is involved.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From December 2015 to November 2016, CONNELL, a former financial adviser at the Bank, effected numerous unauthorized transactions from five accounts belonging to a single family of Bank clients, and as a result defrauded the clients of at least approximately $5 million.
In some instances, CONNELL effected the fraudulent transactions by submitting Bank forms falsely stating that he had received client instructions authorizing wire transfers to third parties for the client’s benefit, when in fact he had not received client authorization and the wire transfers were for CONNELL’s own benefit. In other instances, CONNELL effected the fraudulent transactions by using one client’s checks, which had been intended only to pay the client’s bills, to instead pay for CONNELL’s own expenses.
CONNELL used the client funds to pay for numerous exorbitant personal expenses, including a year’s rent for a house near Las Vegas, country club membership fees, and private jet expenses. CONNELL also paid bills for a credit card account in his spouse’s name, and made payments for his own benefit to automobile dealerships, an entertainment company, and a yacht company.
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CONNELL, 50, of Chester, New Jersey, is charged with one count of wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison and a maximum fine of $1 million or twice the gross gain or loss from the offense, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case 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. Bharara praised the work of the FBI and thanked the U.S. Securities and Exchange Commission for its assistance. Mr. Bharara also thanked the Chester Township, New Jersey, Police Department and the Henderson, Nevada, Police Department for their assistance. He added that the investigation is continuing.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Won S. Shin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Albuquerque Post Office Employee Sentenced for Conviction on Theft of Government Funds ChargeRead the Press Release
ALBUQUERQUE – Janie M. Byrd, 53, of Albuquerque, N.M., pled guilty today in federal court to a misdemeanor theft of government funds charge. After entering her guilty plea, Byrd was sentenced to one year of probation and ordered to pay $949.13 in restitution and a $200 fine.
Byrd was charged in a misdemeanor information filed on Sept. 28, 2016, with theft of government funds in an amount less than $1,000. According to the information, Byrd committed the crime between May 2016 and July 2016, in Bernalillo County, N.M.
During today’s proceedings, Byrd entered a guilty plea to the information. In entering the guilty plea, Byrd admitted that between May 10, 2016 and July 28, 2016, she stole money from the United States by keeping for herself money belonging to the U.S. Postal Service for sales of Postal Service stamps. Byrd admitted that she sold the books of stamps but did not record the payments or submit the payment to the U.S. Postal Service.
This case was investigated by the U.S. Postal Service, Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Edward Han.
Federal Search Warrants ExecutedRead the Press Release
DES MOINES, IA – On February 3, 2017, federal search warrants were executed at the following locations in Des Moines, Iowa:
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Franklin Avenue
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Douglas Avenue
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East 16th Street
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16th Street
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Jefferson Avenue
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Hickman Road
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SE 19th Street
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1st Street
The searches at these locations were an official law enforcement action led jointly by the Mid-Iowa Narcotics Enforcement and the Drug Enforcement Administration. The official law enforcement action also involved agents and investigators from the Federal Bureau of Investigation, United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Warren County Sheriff’s Office, Indianola Police Department, Mid-Iowa Drug Task Force, and Central Iowa Drug Task Force. Assistance was also provided by members of the Iowa Department of Human Services, and the Metro STAR, SERT, and Jasper County tactical teams.
The following individuals were charged with distribution of heroin:
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Bruce Edward McGee, 26, of Des Moines.
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Charles Junior Sims, 26, of Des Moines.
- Earl Deangelo Smith, of Des Moines.
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Bernard Calvin Stigler, 28, of Des Moines.
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George Lamar Stigler, 26, of Johnston.
- Artellious Demond Young, 22, of Des Moines.
The following individuals, each of whom reside in Des Moines, were charged with being a felon in possession of a firearm:
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Peter Marcus Greene, 45.
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Clinton Ossie Taylor, 41.
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Artell Jamaryo Young, 25.
No other information or comments will be released until documents have been filed with the court as part of the public record.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
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Ecuadorian Man Sentenced to 14 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Freddy Geovainni Mero Ancentales (36, Ecuador, South America) to 14 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. In January 2017, Judge Kovachevich sentenced co-defendants Juan Pablo Anchundia Calderon (38) and Joffre Lizandro Vilela Valencia (34), both of Ecuador, to 11 years and 3 months and 8 years and 1 month in federal prison, respectively, for committing the same offense.
Calderon and Vilela Valencia pleaded guilty on July 22, 2016. Mero Ancentales pleaded guilty on August 31, 2016.
According to court documents, in April 2016, Mero Ancentales, Vilela Valencia, and Anchundia Calderon were interdicted by the U.S. Coast Guard in the eastern Pacific Ocean and were caught jettisoning 14 bales of cocaine, weighing approximately 698 kilograms.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Frank Murray and former Special Assistant United States Attorney James R. Zoll.
Drug-Related Shootout in the Arizona Desert Results in Lengthy Prison Sentences for Six Traffickers and BanditsRead the Press Release
TUCSON, Ariz. – Yesterday, Pedro Ojeda-Ramirez, 24, and Ulises Alaim Saijas-Zamorano, 22, both of Mexico, were sentenced by U.S. District Judge Cindy K. Jorgenson to prison terms of 140 months and 60 months, respectively. Both had previously pleaded guilty to conspiracy to possess with intent to distribute marijuana, and Ojeda-Ramirez also had pleaded guilty to possession of a firearm during a drug trafficking crime. In addition, four other defendants had previously pleaded guilty to related drug and firearm offenses and received prison terms ranging from 60 to 140 months.
“This outcome is a testament to the dedicated and collaborative work of our partner law enforcement agencies,” said Acting U.S. Attorney Elizabeth A. Strange. “The convictions and sentences should serve as a warning to both smugglers and bajadores alike.”
“This sentence is yet another example of the vital work being conducted by HSI and its law enforcement partners to target and ultimately dismantle dangerous transnational drug trafficking organizations that are spreading crime and violence in our communities,” said Louie Garcia, acting special agent in charge of HSI Phoenix. “HSI’s collaborative efforts to combat this threat will continue. For those who are still out there committing these types of crimes, we have a warning, “wherever you are, we’ll reach you and you’ll be brought to justice for your insidious actions.”
On May 2, 2016, U.S. Border Patrol agents responded to a 911 call from a male subject who claimed he had been shot near a known drug-smuggling corridor within the Tohono O’odham reservation in Arizona. Agents in helicopters, vehicles, and on foot responded to the remote scene and found two men, one of whom had sustained gunshot wounds to his legs. Agents also found ten bundles of marijuana weighing approximately 224 kilograms, two AK-47-style firearms, a pistol, ammunition, a tactical vest, and a black ski mask.
After determining the two men were bajadores, or bandits, who had stolen the drugs from a rival group of drug traffickers, agents began searching for members of the other group. That night, agents located Ojeda-Ramirez less than three miles from the scene of the shooting. Ojeda-Ramirez admitted that he and others had shot at the bajadores in an effort to retrieve the stolen drugs but had fled once they heard the approaching Border Patrol helicopters. A few days later, a Pinal County Sheriff’s deputy conducted a traffic stop near Arizona City, Ariz., of a Ford pickup truck containing thirteen men. Agents determined that all thirteen occupants were unauthorized aliens and further determined that three of the occupants (including Saijas-Zamorano) had been involved in various ways in the robbery and retaliatory shooting.
The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, and the Tohono O’odham Police Department. The prosecutions arising from the investigation were handled by Serra M. Tsethlikai, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-1111-TUC-CKJ and CR 16-1112-TUC-CKJ
RELEASE NUMBER: 2017-008_ Pedro Ojeda-Ramirez et al.
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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.
District Man Found Guilty of Federal Gun ChargeRead the Press Release
WASHINGTON - Antoine Miller, 34, of Washington, D.C., has been found guilty of a federal weapons offense following his arrest last year by a gun recovery team from the Metropolitan Police Department (MPD), announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Miller was found guilty in the U.S. District Court for the District of Columbia on Feb. 2, 2017, following a bench trial before the Honorable Ketanji Brown Jackson, of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In an earlier case, Miller was sentenced in 2004 to a prison term of 11 years and eight months, to be followed by three years of supervised release, following his conviction of drug and weapons offenses.
Miller will be sentenced in this case on May 4, 2017. He faces a statutory maximum of 10 years in prison and potential financial penalties. In a separate proceeding, he also faces revocation of his probation in the earlier case. The Court ordered that Miller be held without bond pending his sentencing.
According to the government=s evidence, on March 31, 2016, at approximately 9:50 pm, members of the MPD Narcotics and Special Investigation Division – Gun Recovery Unit were driving and operating a gray Ford Explorer. While the officers traveled northbound in the 4600 block of Livingston Road SE, they observed Miller walking with another person southbound on the sidewalk. The officers slowed the vehicle, greeted the two males, identified themselves as police, and asked if they had any guns on them. Miller immediately stated “no,” and turned around so that his back was facing the officers. He then lifted the back of his puffy vest jacket, deliberately not showing the officers the front of his waistband.
As Miller did this, the other male continued to walk, keeping his head down, and at this time walking faster and ahead of the defendant. Seeing these actions from both individuals, the officers exited their vehicle to talk to the two men. One officer approached Miller and again calmly asked the defendant, “Hey, man can I talk to you?”, whereupon Miller stopped walking and turned and faced the officer. Subsequently, he turned and faced the officer and stated, “I told you I have! I been telling you I have one! You can have it! Just take it! Just take it! You can have it!” Moreover, a passing pedestrian called out, “You good slim?,” at which time the defendant replied, “They got me with a gun and all that.” The firearm was identified as a Smith and Wesson .40 caliber loaded with 9 rounds of ammunition.
In announcing the verdict, U.S. Attorney Phillips and Interim Chief Newsham commended the actions of those who worked on the case from the Metropolitan Police Department. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Emory V. Cole and Veronica Jennings, who investigated and prosecuted the case.
Cross Junction Man Pleads Guilty to Misbranding ChargeRead the Press Release
Harrisonburg, VIRGINIA – A Virginia man who purchased and later distributed misbranded drugs that were intentionally masked to look like candy pled guilty today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Christopher Michael Sweeney II, 20, of Cross Junction, Va., pled guilty today to one count of conspiracy to commit an offense against the United States, namely, with the intent to defraud and mislead, to ship and receive in interstate commerce a misbranded drug.
“This case underscores how extremely dangerous it is to take drugs, no matter how innocent they are made to appear, that are not clearly labeled with information such as the content, ingredients, and source. This dangerous synthetic drug was ruthlessly packaged to look like candy, sold by the defendant as Xanax and caused tragic harm to unsuspecting customers,” Acting United States Attorney Mountcastle said today. “I implore anyone who might be thinking about experimenting with drugs like this to stop and consider that you are putting your life and your health at risk. I am grateful for the Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police, the DEA, and AUSA Kulpa’s hard work and dedication in resolving this very difficult case and for their continued efforts against the drug epidemic in the Western District of Virginia.”
“With the dangers of non-controlled substances that are being falsely marketed and sold over the internet, law enforcement and prosecutors are having to constantly adjust and improve their investigative techniques,” said Supervisory Special Agent Josiah C. Schiavone, Coordinator of the Northwest Virginia Regional Drug and Gang Task Force for the Virginia State Police. “We are happy that in this case, through collaborative efforts, we were able to find a route to successful prosecution.”
“This case clearly demonstrates the dangers of purchasing illicit drugs off of the internet. Purchasers do not know the true contents of what they are purchasing to ingest and thereby are placing their safety and their lives in the hands of an unscrupulous manufacturer,” said Karl C. Colder, Special Agent in Charge of the DEA Washington Field Division.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Erin M. Kulpa, should this case had gone to trial the United States would have proven that between June 2015 and September 2015, Sweeney purchased and received sugar tablet candies, or Smarties, laced with flubromazolam, a designer synthetic drug that is not approved by the United States Food and Drug Administration and is not approved for human use because of its toxicity and other potential harmful effects. In some individuals, flubromazolam can cause and has caused serious bodily injury as a result of ingesting the substance.
In addition, the United States would have proven Sweeney purchased this substance via the “dark web” and that the substance was delivered on Smarties candies. They arrived delivered in packages that did not contain packing or labels listing the name and place of business of the manufacturer, packer or distributor, did not have adequate directions for use or warnings against use in those pathological conditions or by children where its use may be dangerous to health or bore a label bearing the words “Rx Only.”
Sweeney purchased the Smarties in quantities of 100-300 tablets per purchase, at a price of approximately $0.38 per tablet. The defendant paid his co-conspirators using digital currency transfers through electronic media and had the Smarties mailed to him either at his home address or to a post office box, the United States would have proven at trial.
The defendant consumed, gave away or sold the Smarties he purchased from the “dark web.” Sweeney sold the Smarties for between $5-$8 per tablet. He referred to the tablets laced with flubromazolam as “Smarties” and told some customers they contained “Xanax,” and told some others the Smarties contained Xanax plus a research chemical that added intensity to its effect. The Smarties he distributed did not contain labeling identifying that they contained flubromazolam. During the time he was selling the Smarties, Sweeney acknowledged the powerful effects of the drug, noting to his customers that some people had blacked out from taking the drug and some had crashed their cars after taking the drug and driving.
The investigation of the case was conducted by Northwest Virginia Regional Drug and Gang Task Force, the Virginia State Police and the Drug Enforcement Administration. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Columbus, Ohio Woman Sentenced for Heroin and Cocaine OffensesRead the Press Release
Yesenia Romero-Samano, 38, of Columbus, Ohio has been sentenced to 37 months of imprisonment for possession with intent to deliver heroin and cocaine, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced today. The sentencing occurred in the U.S. District Court in East St. Louis on February 2, 2017.
Romero-Samano pled guilty to the federal charges on September 30, 2016. At her change of plea hearing, Romero-Samano admitted that she had been transporting six kilograms of heroin (approximately 13 pounds) and 1 kilogram of cocaine when her car was stopped by the Illinois State Police on Highway 55/70 for traffic offenses on March 3, 2016.
Romero-Samano has been continuously confined since her arrest. After Romero-Samano completes her prison sentence, she will then serve a term of 3 years of supervised release.
The investigation resulting in Romero-Samano’s arrest and conviction was conducted by the Illinois State Police and by Department of Homeland Security agents.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
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Colorado Man Pleads Guilty to Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced today that Benedict T. Palen, Jr., age 63, of Denver, Colorado waived indictment and entered a guilty plea to a one count Information which charged him with mail fraud. Sentencing has been set for May 5, 2017. Under the statute, Palen is subject to a maximum punishment of up to twenty years of imprisonment, a $250,000 fine, and a term of supervised release of up to three years.
According to documents filed in the case, in September of 2012, Palen, acting through his company, Great Plains Farms, sold a John Deere tractor to an individual in Holdrege, Nebraska for $45,000 representing it to be free and clear of liens. A $20,000 check was mailed to Palen as a down payment. On the same date, Palen sold the same tractor to an individual in South Dakota. Further investigation revealed that not only was there a lien against the tractor held by a bank in Kansas, but the same tractor had actually been sold in 2011 by the defendant, as vice-president of Pull Pans, Inc., to a company in Florida. When Palen had not delivered the tractor to the Holdrege buyer by April of 2013, Palen claimed there was a discrepancy in the number of hours on the tractor and modified the agreement to provide for delivery of a different John Deere tractor thereby causing the buyer to mail a $25,000 check to Palen for the remaining amount due. However, this alternate tractor had also been sold in 2011 by the defendant, as vice-president of Pull Pans, Inc., to the Florida company.
This case was investigated by the Postal Inspection Service.
Chicago Drug Treatment Worker Pleads Guilty to Distributing Heroin via the InternetRead the Press Release
A 47-year-old Chicago man pleaded guilty today in U.S. District Court in Seattle to distributing controlled substances, announced U.S. Attorney Annette L. Hayes. KEVIN C. CAMPBELL sold heroin and prescription drugs such as Xanax and valium using the dark web. In August 2013, CAMPBELL sold heroin and prescription medications to a 27-year-old Bellevue, Washington man who died after taking the prescription drugs and shooting up with heroin.
“This case is an outrage and a tragedy at the same time,” said U.S. Attorney Annette L. Hayes. “What allowed this defendant to work at a drug treatment center with people in the grips of addiction, and at the same time peddle dangerous drugs across the country via the dark web? The heroin this defendant sold killed one of his customers. At sentencing we will ask the Court for a sentence that reflects that fact.”
According to records filed in the case, emergency crews were called to a home in Bellevue in August 2013, when a house guest found 27-year-old Jordan Mettee unconscious in his bedroom. On the computer in front of him was the ‘Silk Road’ website, an online black market where illegal goods and services were anonymously marketed and sold. On the screen were messages from a vendor, later determined to be CAMPBELL’s online identity. The investigation revealed that CAMPBELL was a drug dealer on the dark web site, sending prescription drugs, heroin and other illegal substances to customers across the country who ordered online and paid via bitcoin. CAMPBELL concealed and delivered the drugs in altered DVD cases. One DVD case recovered near Mettee’s body was found to have CAMPBELL’s fingerprint on it. Even after the Silk Road website was shut down, CAMPBELL continued to sell drugs to customers, in one instance sending Xanax pills to a customer in Colorado who was working with law enforcement. In May 2014, law enforcement obtained a search warrant to search CAMPBELL’s Chicago home and found evidence of his drug trafficking including a small amount of drugs, digital scales, notes, empty DVD cases and shipping materials.
Under the terms of the plea agreement, prosecutors can ask for up to ten years in prison when CAMPBELL is sentenced on May 9, 2017, by U.S. District Judge John C. Coughenour.
The case was investigated by the U.S. Postal Inspection Service, the Bellevue Police Department and the Eastside Narcotics Task Force. The case is being prosecuted by Assistant United States Attorney Steven Masada.
Cheko’s Crew/7th Street Gang Member Sentenced on Rico Charge for His Role in Two MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ritchie Juarbe, 26, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy, was sentenced to 210 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the Cheko’s Crew/7th Street Gang which was responsible for multiple acts of violence and the distribution of illegal narcotics on the West Side of Buffalo between 2000 and 2012. The narcotics included heroin, crack cocaine, cocaine, and marijuana.
On November 6, 2008 Juarbe and co-defendant Efrain Hildalgo went to Raquan Lloyd’s house where Hidalgo shot and killed Lloyd. After the murder, Juarbe discarded the murder weapon, throwing it into the Niagara River. Juarbe also participated in the August 11, 2009 murder of 10th St. Gang associate Eric Morrow.
A total of 18 defendants have been charged and convicted in the 7th Street case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict.
Brooklyn Man Pleads Guilty in Connection with International Cybercrime SchemeRead the Press Release
Earlier today, Vyacheslav Khaimov pled guilty at the federal courthouse in Brooklyn, New York, to the operation of an unlicensed money transmitting business in connection with his role in an international cybercrime operation.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings, the scheme involved sophisticated malware, which co-conspirators used to obtain unlawful access to victims’ bank accounts – most of which were in U.S. banks. The illegally obtained funds were then transferred via wire to the bank accounts of a network of individuals within the United States who, in turn, further transmitted the money, or portions of the money, either to additional U.S.-based intermediaries or directly overseas. As part of this scheme, Brooklyn-based Khaimov received over $230,000 in funds fraudulently withdrawn from the bank accounts of at least eight bank account takeover victims via wire transfers and cashier’s checks from a network of intermediary “mules.” To date, the FBI has identified over $1.2 million in losses attributable to the malware scheme and more than $6 million in attempted losses.
“The proliferation of malicious software is a scourge on our society. Cybercriminal networks like the network that the defendant allegedly was a part of are responsible for pillaging innocent victims’ bank accounts and wreaking havoc on our financial institutions through the use of malware. They will be pursued and prosecuted to the full extent of the law,” stated United States Attorney Capers.
“Modern-day bank robbers no longer need a gunman and a getaway driver. Today, they just need a malware operator and money mules to carry out their crime from anywhere in the world. Brooklyn-based Vyacheslav Khaimov, pleaded guilty for his role as a money mule in a multi-million dollar malware scheme where he moved funds from victim accounts into other accounts. This is an ongoing investigation conducted by the FBI’s Cyber Task Force. We will continue to investigate all co-conspirators and bring them to justice,” stated FBI Assistant Director-in-Charge Sweeney.
The government’s case is being prosecuted by Assistant United States Attorneys Una A. Dean, Tiana Demas, and Margaret Lee.
The Defendant:
VYACHESLAV KHAIMOV
Age: 55
Brooklyn, New York
E.D.N.Y. Docket No. 17-CR-25 (ERK)
Binghamton Man Pleads Guilty to Drug Trafficking and Possession of a Firearm and AmmunitionRead the Press Release
BINGHAMTON, NEW YORK – Anthony Randolph, 30, of Binghamton, New York, pled guilty yesterday in federal court to engaging in a drug trafficking conspiracy and possession of a firearm and ammunition by a convicted felon. The announcement was made by United States Attorney Richard S. Hartunian and James Jewell, Acting Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Randolph admitted that between January 2014 and November 17, 2015, he conspired with others to acquire cocaine and cocaine base from suppliers in Broome County, New York and from New York City. Randolph admitted that he and others “converted” or “cooked” cocaine into cocaine base, which was later packaged and stored at different locations in Broome County, New York for later distribution. Randolph acknowledged in court that he and others used cellular telephones and vehicles to take orders from customers and deliver cocaine base and that a search warrant executed on November 17, 2015 led to the seizure of 55 grams of cocaine base and a .40 caliber pistol and ammunition from Randolph’s residence in Binghamton.
Sentencing is scheduled for June 23, 2017 in Binghamton before Senior District Judge Thomas J. McAvoy. Randolph faces a minimum sentence of 20 years and up to life in prison, a fine of up to $20 million, and a term of supervised release of at least 10 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, Binghamton Police Department, New York State Police, Broome County Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Belleville Man Sentenced for Drug and Firearms OffensesRead the Press Release
Andrew C. Tillman, 32, of Belleville, IL was sentenced today to ten years of imprisonment for drug and firearms offenses, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced. On October 27, 2016, Tillman pled guilty to three federal charges, namely possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
At his change of plea hearing in October, Tillman admitted that on December 14, 2015, he had been arrested in Belleville with 80 grams (approximately 3 oz.) of methamphetamine which he had intended to sell. Tillman also admitted possessing a semiautomatic pistol at the time of his arrest, and he acknowledged that he had a prior felony conviction as well. Tillman has been continuously confined since his arrest.
The investigation which resulted in Tillman’s arrest and conviction was conducted by the Belleville Police Department and by the St. Clair County Sheriff’s Drug Tactical Unit.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
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Arlington Man Sentenced to Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – James Jeffrey Schroeder, 50, of Arlington, a former teacher’s assistant in Texas, was sentenced today to 100 months in prison for receiving and downloading child pornography. Schroeder was also sentenced to 20 years of supervised release and ordered to pay $182,000 in restitution to victims.
Schroeder pleaded guilty on Oct. 28, 2016. According to court documents, from approximately 1997 to 2015, Schroeder received and downloaded child pornography from the internet and from a family member. A forensic review of Schroeder’s electronic media revealed more than 13,000 images and 400 videos of child pornography. Numerous images and videos were sadistic or masochistic in nature.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge T. S. Ellis, III. Assistant U.S. Attorney Whitney Dougherty Russell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-242.
Anchorage Woman Sentenced to 42 Months for Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced yesterday to 42 months in prison for conspiring to obtain stolen checks and then forging and negotiating the stolen checks at different banks and grocery stores in Anchorage.
Victoria Kosetatino, 25, of Anchorage, was sentenced by Chief U.S. District Judge Timothy M. Burgess, who also ordered Kosetatino to pay full restitution.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Kosetatino and Jeremy Tamapolu conspired together to obtain checks stolen from vehicle break-ins, home burglaries, and mail theft, and then forge and negotiate the stolen checks at different banks and grocery stores in Anchorage. They also utilized bank accounts opened in other individuals’ names to pass the stolen and forged checks. Kosetatino was released from a state sentence for similar conduct in November 2015, and started her fraudulent conduct in this case in December 2015, continuing to April 2016, when she was apprehended. Kosetatino and Tamapolu obtained approximately $9,000 before they were apprehended in this case.
At sentencing, Chief Judge Burgess noted that Kosetatino is a serial fraudster that had not been deterred by her prior convictions and sentences for fraud. Chief Judge Burgess also noted the significant impact to the safety of the community from the nature of the thefts and the identity theft.
Jeremy Tamapolu is scheduled for trial on March 6, 2017.
U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case.
Anchorage Man Sentenced to 16 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Jahkeel Joseph, 23, resident of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to 16 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm. Joseph pleaded guilty on Oct. 11, 2016, to a violation of Title 18, United States Code, Section 922(g)(1).
According to documents filed in the case, in the early morning hours of Feb. 2, 2016, a resident of an apartment complex in Anchorage called police to report a loud “bang” in the apartment next door. He called back a few minutes later to report finding shotgun holes in the walls of his kitchen. According to the neighbor, the defendant and the female occupant of the next door apartment had been arguing for about an hour before the “bang.”
While police were on route to the apartment in response to the neighbor’s call, the police passed the defendant as he drove away. The defendant turned into the wrong lane of traffic and nearly collided with the police cruisers. He then failed to stop at a stop sign. Police turned and gave chase. The defendant initially failed to stop, before finally pulling into a parking lot about a mile from the apartment. Located on the seat next to the defendant was a shotgun (with one spent round in the chamber and five rounds in the side saddle). A field sobriety test was started.
At sentencing, Judge Burgess noted the “incredibly serious” nature of the defendant’s conduct, and his prior history with guns, including an incident in 2014 in which the defendant shot another person during a fight in the face. According to Judge Burgess, the 16-month sentence was appropriate given the defendant’s criminal history. “He wasn’t supposed to have a gun in the first place,” said Judge Burgess. “He is making a bad choice that could have significant consequences for him and others around him.” Judge Burgess went on to add that his sentence was intended to send a message to the defendant that he needs to “grow up.” “I think it is important that you be deterred, and that you understand that there are consequences to your conduct,” said Judge Burgess.
The case was the product of an investigation by the Federal Bureau of Investigation and the Anchorage Police Department. Assistant U.S. Attorney Kyle Reardon prosecuted the case.
Alton Cocaine Dealer Sentenced to 151-Months ImprisonmentRead the Press Release
Courtney Hayes, 35, was sentenced today by U.S. District Court Judge Michael J. Reagan to 151 months in federal prison for one count of possession with the intent to distribute cocaine, U.S. Attorney Donald S. Boyce for the Southern District of Illinois announced. Hayes will also be subject to three years of supervised release to follow the prison term and $100 in special assessment fees.
Facts revealed in open court at the sentencing and plea hearings established that Hayes distributed nearly seven kilograms of cocaine throughout the latter half of 2015. After considering many factors, such as the serious nature of drug crimes in the area, Judge Reagan sentenced Hayes to 151 months of imprisonment.
Officers with the Alton Police Department investigated this case and Assistant United States Attorney Derek J. Wiseman prosecuted the case.
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Thursday 2 February 2017
Wilmington Company is Sentenced for Environmental CrimesRead the Press Release
Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that International Petroleum Corporation of Delaware (“IPC’) was sentenced today by United States District Court Judge Gregory M. Sleet to a $1,300,000 fine and $2,200,000 restitution to the City of Wilmington for environmental crimes, including a conspiracy to violate the Clean Water Act.
According to court documents and statements made in court, from 1992 through 2012 IPC operated a facility, located at 505 South Market Street in Wilmington, Delaware, which processed used oil and hydrocarbon-containing waste water and then sold the reprocessed petroleum to various companies for reuse. The facility had two components: oil recovery and waste water treatment. The facility’s petroleum processing activities generated waste water, which the company treated at its waste water portion of the facility prior to discharge into a sewer along Market Street owned by the City. It issued IPC a federally-enforceable Clean Water Act pretreatment permit which governed the types and concentrations of pollutants which IPC could discharge into the City’s sewer system. The pretreatment permit required IPC to take “representative” samples of its waste water on a monthly basis, to determine if it was complying with its permit limitations, and report its sampling results the City every six months.
IPC admitted that its monthly samples were not representative, as it tampered with, and rendered inaccurate, monitoring methods and a monitoring device required by the Clean Water Act and IPC’s federally-enforceable pretreatment permit.
IPC further admitted to violating the Resource Recovery and Conservation Act (“RCRA”) by transporting hazardous waste without a hazardous waste manifest. In June and July 2012, IPC trucked to South Carolina for disposal sludge (“tank bottoms”) which IPC had removed from its storage tanks. The tank bottoms contained concentrations of benzene, barium, chromium, cadmium, lead, tetrachloroethene (also known as “PCE”), and trichloroethene (also known as (“TCE”), which each served to classify the material as RCRA regulated hazardous waste.
"Industrial wastewater can pose serious threats to public health and the environment, so it’s imperative that companies honestly treat and dispose of it properly and sample and report pollutant concentrations honestly,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “Likewise, companies must handle hazardous waste properly to ensure its proper treatment and disposal. The Department of Justice and EPA are committed to protecting human health and the environment for all Americans through strong enforcement of environmental laws, especially in environmental justice areas. This conviction and sentence ensures that the defendant is held accountable with a criminal fine, and pays substantial restitution to the City of Wilmington.”
This case was investigated by EPA’s Criminal Investigation Division. The City of Wilmington Department of Public Works and the DNREC Solid & Hazardous Waste Management Section assisted in the investigation. IPC, through its parent company which purchased the Wilmington plant after the crimes to which IPC pled guilty occurred, cooperated with the investigation.
The case was prosecuted by Special Assistant U.S. Attorney Martin Harrell, EPA Region 3, and Assistant U.S. Attorney Edmond Falgowski from the U.S. Attorney’s Office for the District of Delaware.
West Haven Man Sentenced to 3 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROHAN A. JAMES-DENNIE, JR., 22, of West Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on November 1, 2015, a Connecticut State Trooper stopped a vehicle that JAMES-DENNIE was operating erratically in Essex. A subsequent search of the vehicle revealed a .380 caliber handgun with a hollow point bullet in the magazine of the weapon, approximately one-half kilogram of marijuana and more than $3,400 in cash. The firearm had been reported stolen during a residential burglary in 2013.
On January 12, 2016, West Haven Police stopped a vehicle that JAMES-DENNIE was operating. A search of the vehicle and JAMES-DENNIE’s person revealed a .22 caliber handgun loaded with six rounds of ammunition, more than 200 grams of marijuana and nearly $5,000 in cash. The firearm’s serial number was partially obliterated.
JAMES-DENNIE was arrested on state charges in both of these instances and was released on bond.
On July 7, 2016, the Connecticut Intelligence Center (CTIC) issued a statewide “Officer Safety” notification regarding JAMES-DENNIE after a post on JAMES-DENNIE’s Facebook page included “We need to just start shooting cops RS that’s the only way…100100.”
JAMES-DENNIE was arrested the following day in East Haven on a federal criminal complaint charging him firearm and drug offenses. At the time of his arrest, he had $3,500 in cash and three grams of marijuana in his pocket. A search of an apartment connected to JAMES-DENNIE revealed an additional 17 grams of marijuana and a laser attachment for a gun.
JAMES-DENNIE has been detained since his federal arrest. On October 11, 2016, he pleaded guilty to one count of possession of a firearm by an unlawful user of a controlled substance.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, Connecticut State Police, West Haven Police Department and East Haven Police Department. The FBI Task Force includes participants from the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction.
U.S. Attorney Daly thanked the assistance and cooperation of the State’s Attorneys for the Judicial District of Middlesex and the Judicial District of Ansonia/Milford.
This case was prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
Washington, Pa., Sex Offender Sentenced to Prison for Failure to RegisterRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania has been sentenced in federal court to 24 months’ imprisonment on his conviction of Failure to Register as a Sex Offender, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Clayton Mitchell, 32, of Washington, Pennsylvania.
According to information presented to the court, from October 23, 2015 to February 16, 2016, Mitchell, who had been convicted of the felony sex offense of Rape in 2010, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act while he was residing in Washington County.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the United States Marshals Service for the investigation leading to the successful prosecution of Clayton Mitchell.
Warren County, New Jersey, Tax Preparer Charged with Tax Fraud and Defrauding BanksRead the Press Release
NEWARK – A Warren County, New Jersey, tax preparer was arrested this morning and charged with allegedly filing false returns on behalf of his clients and misappropriating clients’ funds, U.S. Attorney Paul J. Fishman announced.
Brian Allen Day, 54, of Port Murray, New Jersey, was indicted by a federal grand jury on four counts of aiding and assisting in the filing of false individual income tax returns for clients and four counts of defrauding banks by misappropriating clients’ funds based on misrepresentations about their purported tax payments owed to the IRS and by altering checks they paid to him for the purported tax liabilities and depositing the checks in his business bank accounts. He will appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
Day is self-employed as a tax preparer and has various tax preparation businesses in New Jersey, such as PTS, Tax Consultants, and Tax Consultants LLC. For the tax years 2013 to 2015, Day prepared false individual income tax returns for various clients by fabricating and inflating expenses and deductions on Schedule A or supplemental loss deductions on Schedule E of their Form 1040s in order to obtain refunds in amounts greater than those to which they were entitled. The total amount of false deductions and expenses charged in the indictment is $383,773.
Additionally, from December 2011 through April 2015, Day misappropriated some of his taxpayer clients’ monies by falsely advising them that they owed certain tax payments to the IRS; directing his clients to give him checks made payable to the IRS to resolve these purported liabilities with the IRS; altering the checks made payable to the IRS to make them appear to be payable to Day’s tax preparation businesses; and then depositing the checks into his business bank accounts without making any payment to the IRS on behalf of the clients. By doing so, Day defrauded the financial institutions from which these checks were drawn. Day presented his clients with fraudulent documents purportedly issued by the IRS falsely stating that it had received payments for the purported liabilities. Day misappropriated $61,000 from his clients.
Each count of aiding and assisting in the filing of false tax returns carries a maximum potential penalty of three years in prison and a fine of $250,000 or twice the gross pecuniary gain or loss from the fraud. The bank fraud charges each carry a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Treasury Inspector General for Tax Administration (TIGTA) under the direction of Rodney A. Davis, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the General Crimes Unit in Newark.
Anyone who believes they may have been a victim of this defendant can contact IRS-Criminal Investigation at (732) 761-6439.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense Counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
Uvalde Man Sentenced to Maximum 20 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
In Del Rio yesterday afternoon, 35-year-old Juan Ramon Gutierrez of Uvalde, TX, was sentenced to the statutory maximum of 20 years in federal prison for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, United States District Judge Alia Moses ordered that Gutierrez pay a $2,000 fine and be placed on supervised release for a period of ten years after completing his prison term.
On March 31, 2016, Gutierrez pleaded guilty to the federal charge. By pleading guilty, Gutierrez admitted that he was in possession of child pornography which he downloaded using the internet. These images showed minors engaged in sexually explicit conduct and also portrayed sadistic sexual conduct towards minors.
On June 27, 2014, HSI agents obtained a search warrant for the defendant’s cellular phone. Approximately two weeks later, authorities seized the defendant’s laptop computer. Subsequent examinations of the seized laptop and cell phone revealed the presence of 228 images and a video clip depicting child pornography.
This investigation was conducted by HSI together with the Uvalde County Sheriff’s Office. Assistant United States Attorneys Goran Krnaich and Matthew H. Watters prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Union Official Sentenced to Prison for Stealing over $1 MillionRead the Press Release
NORFOLK, Va. – Robert Smith, III, 49, of Virginia Beach, was sentenced today to 41 months in prison for a decade-long scheme to defraud the International Longshoremen’s Association (ILA) Local 970 of over $1 million. Smith was also sentenced to three years of supervised release and ordered to pay restitution to the union in the amount of $1,072,669.10.
Smith pleaded guilty on Oct. 14, 2016. According to court documents, Smith served as the Business Agent and the Financial Secretary for ILA, Local 970. Local 970 is a union whose members provide qualified labor to the Port of Virginia. From March 2006 through April 2016, Smith devised a scheme to embezzle funds from the Local 970 bank accounts. Specifically, Smith deposited new member initiation fees and member dues received from local employers into an ILA Bank account, and then used those funds for his own personal purposes. Over a period of 10 years, Smith stole approximately $1,072,669.10 of union funds. withdrew over $700,000 in cash to support his drug habit, paid his personal credit card bills, and used the funds to purchase gas, food, clothing, shoes, toys, entertainment, and home improvement supplies.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Robin Blake, Special Agent-in-Charge of the Washington, D.C. Regional Office, U.S. Department of Labor, Office of Inspector General; and Mark Wheeler, District Director of the Washington District Office of the Department of Labor, Office of Labor-Management Standards, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Melissa E. O’Boyle prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-134.
U.S. Man Residing in Costa Rica Pleads Guilty for Role in Two Separate Multi-Million Dollar Fraud SchemesRead the Press Release
Defendant Charged in Connection with $10 Million Offshore Sweepstakes Fraud Ploy,
$2.5 Million High-Yield Investment SchemeA U.S. man residing in Costa Rica pleaded guilty today for his role in two separate schemes. One scheme was a $10 million “sweepstakes scheme” that targeted elderly U.S. residents, and the other was a $2.5 million high-yield investment fraud scheme, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Kristian Francis Sierp, 45, formerly of Boca Raton, Florida, pleaded guilty in two cases before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina. Sentencing is set for June 19 before Chief U.S. District Judge Frank D. Whitney of the Western District of North Carolina.
In the first case, which charged Sierp with participating in a $10 million telemarketing sweepstakes scheme, Sierp pleaded guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of conspiracy to commit money laundering.
As part of his guilty plea, Sierp admitted that from approximately January 2011 through September 2015, he worked in various illegal Costa Rican call centers belonging to co-conspirator Elliot Rosenberg, where they placed telephone calls to U.S. residents, falsely informing them that they had won a substantial cash prize in a “sweepstakes.” The victims, many of whom were elderly, were told that in order to receive the prize, they had to pay for a purported “refundable insurance fee,” Sierp admitted. Sierp further admitted that after he received victims’ money for an initial fee, he would contact the victims again to demand additional purported fees to cover even larger promised prizes.
Sierp further admitted that he and his co-conspirators continued their attempts to collect additional money from a victim until that victim either ran out of money or discovered the fraudulent nature of the scheme. To further their fraud and mask that they were calling from Costa Rica, Sierp and his co-conspirators often falsely claimed that they were calling on behalf of a U.S. federal agency and utilized voice over internet protocol (VoIP) phones that displayed a 202 area code, giving the false impression that they were calling from Washington, D.C., he admitted.
In the second case, which charged Sierp with engaging in a high-yield investment fraud scheme, Sierp pleaded guilty to one count of conspiracy to commit mail and wire fraud.
As part of his guilty plea in this case, Sierp admitted that he worked with co-conspirators since at least January 2016 to sell stock in Niyato Industries Inc., a Nevada corporation purportedly operated from Charlotte. Sierp admitted that he and his co-conspirators falsely marketed Niyato as a manufacturer of compressed natural gas (CNG) automobiles and a distributor of CNG fuel that had patented technology, valuable contracts and high-profile executives.
Sierp also admitted that he and his co-conspirators falsely sold investors on a promise that Niyato was planning an imminent stock IPO that would reap pre-IPO investors a tenfold return on their investments. In truth, Sierp admitted, he and his co-conspirators knew that Niyato had no facilities, products, patents or plans for an imminent IPO, but rather was merely a vehicle for inducing investor funds. Sierp further admitted that he made all investor sales using a fake name from a telemarketing call center that he owned and operated in Costa Rica.
The U.S. Postal Inspection Service, FBI, Internal Revenue Service Criminal Investigation, Federal Trade Commission and Department of Homeland Security’s Homeland Security Investigations investigated the cases. Trial Attorneys William Bowne and Gustav Eyler of the Criminal Division’s Fraud Section are prosecuting the cases.
Two Virgin Islands Women Indicted on Tax Related ChargesRead the Press Release
St. Croix, USVI – A Virgin Islands grand jury, on January 12, 2017, returned a 12- count indictment against two Virgin Islands women charging them with conspiracy to defraud the United States, theft of government property and aggravated identity theft, United States Attorney Ronald W. Sharpe announced. The women were identified in the indictment as Phiona A. Henry, 32, and Patricia Henry, 48. Patricia made her initial appearance on January 20, 2017, before Magistrate Judge George W. Cannon in St. Croix. Phiona made her appearance on February 1, 2017, before Magistrate Judge Thomas Smith in Orlando, Florida. Patricia was released pending trial, and a detention hearing is scheduled for Phiona tomorrow in Orlando.
The 12-count indictment is the result of years of investigative work by the Internal Revenue Service, Criminal Investigations conducting a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere. According to the indictment, the scheme involved the filing of numerous false income tax returns, the use of the identification of others and the designation of illegal refunds to the defendants’ bank accounts. The scheme resulted in the payment of illegal income tax refunds totaling over $100,000, according to the indictment.
If convicted, the defendants face maximum sentences of ten years in prison and a $250,000 fine for the conspiracy and theft of government property offenses. Additionally, they face a mandatory sentence of two years’ imprisonment if convicted of aggravated identity theft.
The case was investigated by the Internal Revenue Service, Criminal Investigations and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
United States Attorney Sharpe emphasized that an indictment is a merely a formal charging document and not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two New York Residents Plead Guilty to Conspiring to Illegally Dispense and Administer Cosmetic Prescription Drugs, Import Misbranded Drugs, and Smuggle CashRead the Press Release
HONOLULU – Bu Young Kim, age 40, and Chan Hui Cho, age 40, residents of Brooklyn, New York, entered pleas of guilty on January 25 in the United States District Court for the District of Hawaii to the charge of conspiring to dispense and administer cosmetic drugs and treatment without being a licensed medical professional; import misbranded drugs contrary to law; and smuggle $79,986 in cash from the United States to South Korea. The defendants face a maximum penalty of five years imprisonment and a fine of $250,000 when they are sentenced on July 13, 2017 by U.S. District Judge Leslie E. Kobayashi.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to court documents and information presented in court, Kim and Cho regularly traveled to the Republic of Korea for the purpose of obtaining prescription drugs with the intent of administering them to persons in Hawaii and elsewhere to minimize the appearance of wrinkles and other signs of aging. Upon acquiring prescription drugs from sources in Korea, Kim dispensed such products in the United States, including in Hawaii, to individuals seeking facial cosmetic and "filler" type treatments and procedures, along with other facial, appearance and health enhancement benefits. Neither Kim nor Cho had any formal medical or pharmaceutical education or training, and neither was licensed to practice medicine or to provide any form of medical treatment to patients. Kim and Cho charged between $100 and $500 per session, and administered their treatments to large numbers in locations such as personal residences and businesses.
Information presented in Court also revealed that that products obtained, dispensed and/or administered to individuals in Hawaii by Kim contained active pharmaceutical ingredients requiring a prescription. These products included, but were not limited to: Dysport, a prescription injection for cosmetic improvement similar to "Botox"; Lidocaine, a numbing agent; Liporase Injectible Hyaluronidase, an injectable spreading substance used to encourage the dispersion and absorption of fillers; substances containing betamethasone, a corticosteroid used to alleviate inflammation and treat severe skin conditions; substances containing dexamethasone, another corticosteroid; and substances containing triamcinolone acetonide, a topical and injectable corticosteroid.
Information presented in Court also showed that Kim and Cho were interdicted by U.S.
Customs and Border Protection inspectors in Honolulu, Hawaii on in March 2016 attempting to smuggle $79,986 on their persons and luggage concealed in sanitary napkin containers. In addition, another $86,461 in U.S. currency seized during a search of Kim and Cho’s Queens, New York residence was forfeited to the government.
The case was investigated by the Homeland Security Investigations and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Ken Sorenson and Amalia Fenton.
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Three people sentenced to prison for bank robbery, kidnapping and hostage situation in Richland CountyRead the Press Release
Three people were sentenced to prison for their roles in a 2015 bank robbery, kidnapping and hostage situation, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Taylor Crisman, 19, of Galion, was sentenced to 37 years in prison.
Chris Hill, 24, of Galion, was sentenced to 25 years in prison.
Sarah J. Garrett, 42, of Bucyrus, was sentenced to 2 ½ years in prison.
Crisman broke into the home of the manager of the KeyBank branch in Ontario and held his family hostage at gunpoint on Nov. 5, 2015. The manager came home later that evening and was also held hostage overnight, according to court documents and testimony.
On the morning of November 6, 2015, Crisman, in consultation with Hill, ordered the manager to travel to the bank on Lexington-Springmill Road, remove a large sum of money from the vault and return home. The suspect held the bank employee’s wife and small children hostage until he returned home with the money, according to court documents and testimony.
Crisman then notified Hill to pick him up from home, which he did. Crisman, Hill and Garrett counted the money later that evening, according to court documents and testimony.
Garrett worked at Marion County Family Court. She used her position to improperly search the Ohio Law Enforcement Gateway and provide the robbers with the address of the bank manager, according to court documents and testimony.
“These defendants deserve every single day of these prison sentences,” Rendon said. “They terrorized an innocent family all for greed. The victims in this case are to be commended for the bravery and grace they showed in court today and in the aftermath of this unprovoked attack.”
“We are very pleased with the sentences given to these defendants today,” Anthony said. “The FBI hopes these lengthy prison sentences send a clear message to anyone considering committing such heinous acts -- think again and don't do it.”
The defendants stole $194,845 from the bank. Authorities recovered $171,058. U.S. District Judge Donald C. Nugent ordered the defendants to pay the remaining $23,787 in restitution.
Crisman and Hill were found guilty of bank robbery, kidnapping, hostage taking and brandishing a firearm in relation to commission of a felony, among other crimes.
Garrett pleaded guilty to receipt of ransom money and misprision of a felony.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Benedict Gullo following an investigation by the FBI, the Ontario Police Department and the Richland County Sheriff’s Office.
Three Individuals Indicted on Various Drug, Gun and Sex Trafficking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has indicted Valentino Shine, Sr., 49, of Buffalo, NY, on charges of narcotics conspiracy, using and maintaining a drug-involved premises, possession of cocaine with intent to distribute, and commercial sex trafficking. The charges carry a maximum penalty of 20 years and a $1,000,000 fine. In addition, co-defendant Jesse Lewis, 46, is charged with narcotics conspiracy, using and maintaining a drug-involved premises, possession of cocaine with intent to distribute, being a felon possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime, which is punishable by a mandatory minimum five years in prison, a maximum of 20 years, and a $1,000,000 fine. Also, Brittany Wieand, 25, of Buffalo, is charged with commercial sex trafficking, which carries a penalty of up to 15 years in prison.
Assistant U.S. Attorneys Trini E. Ross and Patricia Astorga, who are handling the case, stated that according to the indictment and a previously filed complaint, during the execution of a search warrant at Shine’s residence, law enforcement officers recovered crack cocaine and other drug paraphernalia. It is also alleged that Shine and Wieand ran a sex trafficking operation out of their Humboldt Parkway residence. The defendant provided or withheld drugs to coerce the victims to engage in commercial sex acts.
On September 30, 2016, a search warrant was executed at the residence of Jesse Lewis on North Ogden Street in Buffalo. Officers recovered cocaine, other drug paraphernalia, and a firearm. Subsequently, on October 31, 2016, Niagara Frontier Transportation Authority police officers pulled over a car being driven by Lewis with Shine in the passenger seat. Officers recovered multiple bags of cocaine packaged for sale. In addition, Lewis and Shine each had $1,000 in cash.
Shine, Wieand, and Lewis are all being detained.The indictment is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict.
The fact that defendants have been charged with crimes are merely accusations and defendants are presumed innocent until and unless proven guilty.
Texas Syndicate Member Pleads Guilty to His Leadership Role in Methamphetamine, Cocaine and Marijuana Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Cruz Perez, a/k/a “Travieso,” 40, appeared in federal court yesterday and pleaded guilty before U.S. Magistrate Judge D. Gordon Bryant to his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Perez, a member of the Texas Syndicate, faces a statutory penalty of not less than five years nor more than 40 years in federal prison and up to a $5 million fine. A sentencing date was not set.
Perez and eight other west Texas residents, including three other members of the Texas Syndicate, were arrested in early June 2016 by special agents with the Drug Enforcement Administration (DEA) and the Texas Department of Public Safety, with assistance from the Big Spring, Sundown and Levelland Police Departments, the Howard County and Lubbock County Sheriff’s Offices, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Perez is the lead defendant in the case, and he is the last defendant charged in the case to plead guilty to his role in the conspiracy. Other defendants charged and convicted include:
Christopher Lee Gonzalez, aka “Gonzo,” 43
Victor Manuel Castillo, aka “Victor Manuel Garza,” 43
Christopher David Gonzales, aka “Chris,” 41
Evan Cruz Parson, aka “Evan,” 21
Alexander Alfonzo Mendoza, aka “Alex,” 20
Jose Gutierrez, III, aka “Baby Joey,” 21
Jasmine Pillar Hernandez, aka “Crazy,” 32
Crystal Dimas, aka “Babe,” 28According to plea documents filed in Perez’s case, on October 3, 2015, Perez distributed and possessed with the intent to distribute 50 grams or more of methamphetamine. The investigation revealed that late that morning, Perez called Christopher Lee Gonzales and discussed Gonzales obtaining a quantity of methamphetamine from Perez. Perez advised that he’d have his nephew, Jose Gutierrez, III, bring it to Gonzales. At approximately 12:05 p.m., Perez called Gutierrez and told him that he needed to come back to Lamesa, Texas. Perez then texted/called Alexander Mendoza, who stored the methamphetamine for Perez, and instructed Mendoza to bring “The two that were left and the one that you got yesterday” and “also another 9.” At approximately 5:55 p.m., Perez and Gonzales discussed that Gonzales owned Perez approximately $21,000 for past drugs and that Gonzales was having trouble selling Perez’s methamphetamine because other dealers were selling a better quality methamphetamine for a cheaper price. Perez and Gonzales then discussed where to do the drug transaction.
Special agents with the DEA who were conducting surveillance in Lamesa observed a 2003 Chevrolet Tahoe, known to be driven by Gutierrez, traveling toward Lubbock. Agents maintained surveillance until approximately 8:35 p.m. when a Texas Highway Patrol trooper stopped Gutierrez in Lubbock and found he was transporting approximately 500 grams of methamphetamine.
That evening, Gutierrez’s wife called Perez and told him that “Joey” texted her at 8:40 p.m., saying that he got “pulled over in Lubbock.” She called Perez and told him, “He went to jail.” When she called Perez at 9:19 p.m. and told him, “he got caught,” Perez asked, “With it? With the stuff?” She responded affirmatively. At approximately 9:11 p.m., Perez called Parson and told him, “Baby Joey went to jail,” referring to Gutierrez being arrested with the methamphetamine. Then, at approximately 9:23 p.m., Perez called Gonzales and told him, “He didn’t make it,” referring to Gutierrez being arrested with the methamphetamine.
The investigation is being led by the Texas Department of Public Safety and the DEA. Assistant U.S. Attorneys Juanita Fielden and Sean Long are prosecuting the case.
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Texas Doctor Sentenced in Prescription Drug ConspiracyRead the Press Release
SHERMAN, Texas – A Dallas physician has been sentenced to federal prison for conspiracy to sell illegal prescriptions in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Habiboola Niamatali, 75, of Dallas, was found guilty by a jury in July 2016 of conspiracy to distribute Hydrocodone, Alprazolam, and Promethazine with Codeine outside the usual course of professional practice and without a legitimate medical purpose. Niamatali was sentenced to 78 months in federal prison today by U.S. District Judge Marcia Crone. Niamatali was also ordered to pay a $50,000 fine.
According to information presented in court, Niamatali used his medical clinics in Garland and Lancaster to sell illegal prescriptions for cash. The defendant attempted to cover up his scheme by ordering his staff to falsify medical records. Niamatali was indicted by a federal grand jury on July 10, 2013.
Before the trial, the staff members who falsified the records, Esmeralda Lozada and Lisa Tumlinson, pleaded guilty to conspiracy and were sentenced respectively to 16 months and 10 months in prison. Additionally, the physician’s wife, Shirley Niamatali, admitted that she knew about the conspiracy, pleaded guilty to misprision of a felony, was sentenced to 3 years of probation, and fined $20,000.
“’Do no Harm,’ the Hippocratic Oath adhered to by all but a few physicians, remains as sacred today as it was centuries ago,” said Acting U.S. Attorney Brit Featherston. “Dr. Niamatali chose to violate the oath, and his duty as a physician, by choosing to harm others by prescribing unwarranted drugs.”
The case was investigated by the U.S. Drug Enforcement Administration – Dallas Tactical Diversion Squad, DeSoto Police Department, and Ellis County Sheriff’s Office.
Tennessee Man Indicted for Aggravated Identity TheftRead the Press Release
George Ronzell Fyke, 40, of Woodlawn, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., for aggravated identity theft and stealing government funds, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Fyke was charged with five counts of aggravated identity theft and five counts of theft of government funds.
According to the indictment, Fyke used the identities of deceased individuals to file false federal income tax returns. As a result of these fraudulent tax filings, it is alleged that Fyke caused the Department of Treasury to issue federal income tax refunds, which he stole and converted to his own use.
Fyke faces a mandatory term of two years in prison for each aggravated identity theft conviction and a maximum term of ten years in prison for each theft of government funds conviction. Fyke also faces fines of up to $250,000.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee and Trial Attorney Gregory P. Bailey of the Tax Division are prosecuting the case on behalf of the United States.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Tampa Man Sentenced to Six Years in Federal Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Adrian Lark to six years in federal prison for theft of government funds and aggravated identity theft. He pleaded guilty on September 28, 2016.
According to court documents, between May 2011 and May 2013, Lark obtained the personal identifying information (PII) of others and then used it to file fraudulent tax returns with the IRS. During a search of his residence, law enforcement officers discovered notebooks of PII, as well as debit cards in other individuals’ names. The investigation revealed that Lark had filed more than 200 fraudulent tax returns requesting approximately $1.2 million in fraudulent tax refunds.
This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Adam Saltzman.
Tahlequah Woman Sentenced to 60 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ASHLEY NOEL STEELE, age 30, of Tahlequah, Oklahoma, was sentenced to 60 months imprisonment, and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The Information alleged that on or about December 12, 2015, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Sentenced to 84 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JACOB HORTON MASTERS JR, age 55, of Tahlequah, Oklahoma, was sentenced to 84 months imprisonment, and 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), 841(b)(1)(A).
The Superseding Indictment alleged that beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally conspire, confederate and agree with others to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge arose from a joint investigation entitled “Home of the Brave”, coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Shannon Henson represented the United States.