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Monday 30 January 2017
Dover Man Sentenced for Role in Interstate ProstitutionRead the Press Release
CONCORD, N.H. – Edmond A. Mitchell, 37, of Dover, New Hampshire, was sentenced to 52 months in prison in United States District Court for the District of New Hampshire for his role in interstate prostitution, announced United States Attorney Emily Gray Rice.
According to court records and statements in court, on August 29, 2014, Mitchell was involved in bringing two women from New Hampshire to Portland, Maine, to engage in prostitution. Mitchell arranged for a third party to drive him and the two women to Portland, Maine, and Mitchell rented two hotel rooms in Portland, Maine. The women posted ads on Backpage.com offering “escort services” in the Portland, Maine, area and they provided some or all of the proceeds from their prostitution activities in Maine to Mitchell.
On September 15, 2016, Mitchell pleaded guilty to aiding and abetting transportation for prostitution.
This case was investigated by Homeland Security Investigations of the Department of Homeland Security and the Hampton, New Hampshire, Police Department. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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District of Columbia Man Sentenced to 20 Months in Prison for Committing Environmental CrimeRead the Press Release
James Powers, 59, of Falls Church, Va., was sentenced today to 20 months in prison to be followed by 36 months of supervised release after earlier pleading guilty to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips of the District of Columbia.
Powers pleaded guilty on September 7, 2016, to a charge of failure to remove asbestos prior to renovation. He was sentenced by the Honorable Amy Berman Jackson. Powers was also sentenced to perform 250 hours of community service.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 59, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He e-mailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
U.S. Attorney Phillips acknowledged the efforts of those who investigated the case, as well as Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialist Christopher Toms, former Paralegal Specialists Krishawn Graham, Kaitlyn Krueger, and John Lowell, and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
District Man Pleads Guilty to Armed Burglary at Gallaudet University KitchenRead the Press Release
WASHINGTON - Donald Williams, 26, of Washington, D.C. pled guilty today to forcing his way at gunpoint into the kitchen of the food service department at Gallaudet University, where he used to work, and ordering employees to turn over money kept in a safe, U.S. Attorney Channing D. Phillips announced.
Two of the victims, who are deaf, helped identify him as the gunman.
Williams pled guilty in the Superior Court of the District of Columbia to a charge of first-degree burglary while armed. He is to be sentenced on March 23, 2017 by the Honorable Danya A. Dayson. The charge carries a statutory minimum of five years in prison. Under the Court’s voluntary sentencing guidelines, Williams faces a potential range of 102 to 192 months in prison.
According to the government’s evidence, in the late afternoon of Oct. 22, 2016, Williams entered his former place of employment, the food service department on the campus of Gallaudet University, in the 800 block of Florida Avenue NE. Upon entry, he pointed a gun at two female employees and forced them into the rear of the kitchen. He forced one of the two victims into a storage room and the other, who is deaf, into a back office space that contained a safe that held daily deposits. He pointed a gun at the latter victim and motioned for her to open the safe. When she refused, he struck her upon the head with the gun, causing a laceration.
Williams left the office and approached a third female employee, who was located in a different area of the kitchen and was unaware that a robbery was taking place; this employee is also deaf. Williams pointed his gun at her, grabbed her by the shirt, forced her into the office with the other victim, and directed her to open the safe. Once she opened the safe, she and the other victim handed money to Williams, who then fled the scene.
During their interviews with members of the Metropolitan Police Department (MPD), the two victims who were directed to open the safe indicated that their assailant reminded them of their former colleague, Williams, who had been fired from Gallaudet University a few weeks before the crime. Although their assailant had a mask covering his face, the victims stated that his build, skin complexion, leanness, mannerisms, and gait were consistent with the defendant’s, whom they had worked with regularly for more than a year.
During their investigation, MPD located surveillance video footage depicting a vehicle similar to the defendant’s enter a parking garage on campus around the time of the crime. The video also depicted a male, wearing clothing identical to the look-out description, exit the vehicle and walk toward the building where the robbery occurred. MPD also recovered video from the defendant’s cell phone showing him dumping a large amount of cash into a bathroom sink bundled with red bands consistent with the description given by the victims. Williams recorded the cell phone video approximately three and a half hours after the crime. Finally, a black mask consistent with the mask described by the victims as the one worn by the assailant was found at the scene and was swabbed for DNA. Subsequent testing revealed the presence of Williams’s DNA on it. Williams was arrested on Dec. 20, 2016.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work performed by the Forensic Biology Unit of the District of Columbia Department of Forensic Sciences as well as Sorensen Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Shana Fulton and Tamika Griffin; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Diana Lim, Katina Adams-Washington, and LaJune Thames, all of the Victim/Witness Assistance Unit; Supervisory Paralegal Supervisor Darline Douglas; Lead Paralegal Specialist Lynda Randolph, and Paralegal Specialist Benjamin Kagan-Guthrie.
Finally, he commended the work of Assistant U.S. Attorney Vanessa Goodwin, who investigated and prosecuted the case.
Detroit man sentenced to federal prison for heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who conspired with others to distribute heroin in Mason County between 2013 and 2014 was sentenced today to three years and nine months in federal prison, announced United States Attorney Carol Casto. Anthony D. Latham, 25, previously pleaded guilty to conspiracy to distribute heroin.
Between January 2013 and July 21, 2014, Latham conspired with other individuals to distribute heroin in the Point Pleasant area of Mason County. During the conspiracy, Latham and others would frequently transport heroin from Columbus and Chillicothe to a residence in Gallipolis, where they would store and prepare the heroin for distribution. Members of the conspiracy would then distribute the heroin to customers in Gallipolis and to customers who traveled from Point Pleasant. Latham and others also frequently traveled to Point Pleasant, where they used various residences to conduct distributions. Latham admitted that he was responsible for distributing up to 700 grams of heroin during the conspiracy.
The Drug Enforcement Administration Task Force, which includes the Putnam County Sheriff’s Department and the Gallia-Meigs County, Ohio, Major Crimes Task Force, conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Jimmy Cheatham, also known as “Shoe,” 25, entered his guilty plea to possession with intent to distribute heroin.
On August 16, 2016, Cheatham was arrested on an active federal warrant for conspiracy to distribute heroin. In a search incident to arrest, agents with the Huntington FBI Drug Task Force located approximately 6 grams of heroin concealed on his person. Agents also located approximately $1,800 in cash, which represented the proceeds from heroin sales. The arrest stemmed from an investigation of Cheatham and others which began in 2015.
Cheatham admitted that on August 5, 2015, he sold over 16 grams of heroin to a confidential informant working for the Task Force. The drug deal took place at 1826 Old 16th Street Road, where the informant exchanged $2,000 for the heroin. In a July 9, 2015, search of 126 Olive Street in Huntington, Task Force agents located Cheatham and two of his co-conspirators inside the residence. Agents recovered $6,314 in cash, along with an AR-15 style firearm concealed in the attic.
Cheatham faces up to 20 years in federal prison when he is sentenced on May 1, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney R. Gregory McVey is responsible for the prosecution. Chief United States District Judge Robert C. Chambers presided over the plea hearing.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Denison Man Sentenced to over 20 Years for Distributing MethamphetamineRead the Press Release
An Iowa man who distributed significant quantities of ice methamphetamine was sentenced today to more than 20 years in federal prison.
Armando Castillo Valerio, 50, from Denison, Iowa, received the prison term after a June 22, 2016, jury verdict finding him guilty of conspiring to distribute methamphetamine.
Evidence at trial showed Valerio was responsible for distributing ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa. Valerio received ice methamphetamine from multiple sources, including some who were located out of state. Once he obtained methamphetamine from his sources of supply, Valerio distributed it to a network of individuals. Multiple witnesses testified at trial to receiving methamphetamine from defendant.
Valerio was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Valerio was sentenced to 262 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Valerio is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2050.
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Corpus Christi Man Gets 27 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old man has been ordered to federal prison following his conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Edward Lopez Jr. pleaded guilty Oct. 17, 2016.
Today, Senior U.S. District Judge John D. Rainey took into consideration the testimony of a psychologist and the nature of the crime committed against the most vulnerable, an eight-year-old child, and handed Lopez a sentence of 326 months in federal prison. Additional information was also presented today, including a letter the victim had written to Lopez which was read in open court. In handing down the sentence, Judge Rainey stated that the crime Lopez committed was, indeed, a heinous crime. Lopez was further ordered to serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous sex offender prohibitions designed to restrict his access to children. He will also be ordered to register as a sex offender.
Lopez came to the attention of law enforcement after authorities learned of the sexual assault of a minor female child. The child was identified and confirmed the abuse and Lopez was identified as the perpetrator.
Authorities executed a search warrant at Lopez’s residence and seized several electronic media storage devices. Forensic examination of his cellular telephone resulted in the discovery of a video of the minor female child involved in sexually explicit conduct with the Lopez. Photographs of a minor female child involved in sexually explicit conduct were also found on his cellular telephone.
Lopez was arrested on the federal charges in February 2016 and has been in federal custody since that time where he will remain pending
transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Corpus Christi Police Department’s Internet Crimes Against Children Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Elsa Salinas and Brittany Jensen, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Connecticut U.S. Attorney’s Office Collects More Than $792 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $792,906,133.31 in criminal and civil actions in Fiscal Year 2016. Of this amount, $783,664,236.82 was collected in criminal actions and $9,241,896.49 was collected in civil actions.
This year’s recovery is particularly large as a result of a single criminal fine in the amount of $772,290,000 paid by Alstom S.A., a French power and transportation company that has a U.S. subsidiary with headquarters in Connecticut. This Office in collaboration with the Criminal Division of the Department of Justice prosecuted Alstom for violations of the Foreign Corrupt Practices Act.
The Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. This amount in collections represents more than five times the approximately $2.93 billion of the Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“This past fiscal year, our Office’s dedicated attorneys and staff helped to recover over $792 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $5,375,890 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.
Columbus Doctor to Plead Guilty to Running Medical Center as Drug Premises, Tax ChargesRead the Press Release
COLUMBUS, Ohio – Today the government unsealed a plea agreement with the owner and operator of Columbus Southern Medical Center, which provided unlawful prescriptions of controlled substances to addicts throughout the Midwest and who engaged in a series of schemes to evade more than $3.5 million in taxes.
Kevin B. Lake, 50, of New Albany, Ohio, pleaded guilty to drug, tax and fraud charges and agreed to the forfeiture of what remains from the $29 million in seized funds earned from the clinic’s illegal activities, after restitution is paid from the funds.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division; Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Agency (DEA); Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of the Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; Ohio Attorney General Mike DeWine; Ohio Bureau of Workers’ Compensation Administrator/CEO Sarah Morrison and Columbus Police Chief Kim Jacobs announced the plea that is scheduled to be entered into today at 2pm before U.S. District Judge Michael H. Watson.
According to court documents, Lake owned and managed Columbus Southern Medical Center through one or more corporate or trust entities which he used to insulate himself from the illegal drug trafficking being conducted at the clinic.
In the filed plea document, he admitted that between 2006 and 2013, he knew doctors and staff at the 2912 South High Street clinic prescribed controlled substances to patients without a legitimate medical purpose. During that time, hundreds of patients showed up daily – 85 percent of whom were returning patients – to receive prescriptions of oxycodone, hydrocodone and Xanax. The percentage of patients who were prescribed these controlled substances rose each year, jumping from nearly 60 percent in 2004 to nearly 92 percent in 2009 and 2010.
Lake agreed to plead guilty to maintaining the clinic as a drug premises. He also admitted that he exclusively controlled all of the proceeds generated by the illegal activity being conducted by the doctors, physician assistants and staff at the clinic, which was more than $38 million in payments for patient visits. He admitted to engaging in more than $20 million in money laundering transactions with these illegal drug proceeds.
The doctor also agreed to plead guilty to tax evasion on his personal income tax returns and admitted to filing fraudulent tax returns for his corporations and trusts. He paid himself more than $90,000 in 2010 through 2013 from the clinic entities, which he did not report as income, but instead disguised as phony rental payments ostensibly for use of his personal residence for corporate retreats. He also took inflated charitable contribution deductions on his individual income tax returns. In addition, Lake admitted causing the filing of corporate tax returns that falsely claimed inflated depreciation deductions for nearly $7.4 million in so-called “equipment” purchases by his corporations from his trust for tax years 2005 through 2011. He also admitted to falsely reporting these purchases as capital gains on his trust tax returns rather than as ordinary income, thereby securing a much lower tax rate. Lake’s tax crimes caused a tax loss of more than $3.5 million.
After the DEA first appeared at the clinic in June 2010, Lake took several steps to separate himself from the drug premises; he stopped paying himself a salary, and instead filed a fraudulent claim for disability payments from his two disability insurers. The insurance companies ultimately denied his claims, and only paid out $18,000. Lake also sold the clinic’s remaining stock to employees through an Employee Stock Ownership Plan (ESOP) for the inflated price of $14 million.
After the ESOP sale, and the denial of his fraudulent disability claim, Lake fraudulently filed for and collected unemployment benefits, stealing more than $20,000 in government funds.
Finally, the doctor admitted to defrauding the Bureau of Workers’ Compensation by having employees upcode office visits in order to bill for higher level medical services in addition to those provided by physician assistants as if they were provided by physicians, causing a loss of more than $260,000.
As part of the plea agreement, and due to Lake’s cooperation in the government’s investigation, the parties involved recommended to the court that Lake receive a sentence of 60 months in prison. Judge Watson will consider the recommended sentence at a sentencing hearing that has yet to be scheduled.
“At the same time Dr. Lake was running his medical center as an illegal drug premises, he took every opportunity to cheat the U.S. Treasury out of millions of dollars in taxes," said Acting Deputy Assistant Attorney General Goldberg. "As the income tax filing season begins, Lake’s guilty plea is a stark reminder of what awaits those filing false returns -- no matter their profession, income level or the complexity of their scheme.”
"For seven years, Kevin Lake operated Columbus Southern Medical Center as a pill mill," said U.S. Attorney Glassman. "He got rich by feeding the addictions of hundreds and hundreds of people. Thanks to the thorough investigation of federal, state, and local law enforcement agencies, however, Lake has agreed to plead guilty to drug, tax, and fraud charges, forfeit his ill-gotten gains, and serve time in federal prison for his misdeeds."
“Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country.” Special Agent in Charge Timothy J. Plancon said. “Kevin Lake abused his position of trust and jeopardized the lives of many individuals, by conspiring with others to illegally prescribe controlled substances that ended up being consumed throughout Ohio and the surrounding states. This investigation uncovered the elaborate lengths that Lake undertook to conceal his illegal profits, and the seizure of $29 million from Lake is indicative of the scope of his illegal activity. Lake’s guilty plea should serve as a warning to all medical professionals that if you prescribe medicine for personal gain, you will be prosecuted to the fullest extent of the law. This investigation was a success thanks to the outstanding investigative work by all of our federal, state, and local law enforcement partners.”
“Dr. Lake’s conduct detailed in this case is egregious and had such a negative impact on our community,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "This is an important victory for the citizens of Central Ohio. Dr. Lake not only fueled the prescription drug problem in Central Ohio, but he supported addiction in several parts of the country. As a result of this joint investigative effort, the government has seized a significant portion of the illegal proceeds through asset forfeiture, and Dr. Lake is faced with having to pay back taxes with interest and steep penalties.”
“The Office of Inspector General congratulates the U.S. Attorney’s Office and all of the investigators on this important case. The OIG will continue to work with our law enforcement partners to investigate unemployment insurance fraud and employee retirement plan fraud schemes, “stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“There is no doubt that today’s opiate epidemic is due in large part to the overprescribing of prescription pain medication across this state. This defendant preyed on those battling addiction in an effort to make millions from their suffering,” said Ohio Attorney General Mike DeWine. “An incredible amount of hard work went into investigating and prosecuting this case. Because of this team effort, this pill mill operation has been shut down.”
“We place trust in our healthcare professionals to provide quality treatment that improves the health of injured workers,” said BWC Administrator/CEO Sarah Morrison. “We’re pleased to do our part to address the problem of prescription drug abuse in Ohio, as well as put an end to Dr. Lake’s fraudulent billing scheme.”
“It is through the hard work of the investigators and the cooperation of agencies at the federal, state, and local level that led to the successful investigation and prosecution of this pill mill,” Columbus Police Deputy Chief Michael Woods said.
Three co-defendants have pleaded guilty as part of this case. Dr. Terry Dragash was sentenced in October 2014 to one year in prison for conspiracy to distribute drugs as a result of his conduct in prescribing at the clinic. Dr. David Rath pleaded guilty to a similar conspiracy charge. And in December 2015, Karen Climer – another employee of Lake’s – pleaded guilty to conspiracy and was sentenced to six months in prison after the government revealed she was cooperating in the investigation into Lake.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Glassman commended the investigation of this case by the DEA Tactical Diversion Squad – including the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and Columbus Division of Police – IRS Criminal Investigation, Ohio Bureau of Workers’ Compensation, Department of Labor OIG and Employee Benefits Security Administration, Central Ohio Drug Enforcement Task Force, Franklin County Sheriff’s Office, Ohio State Board of Pharmacy and the State Medical Board of Ohio, as well as Assistant United States Attorney Kenneth F. Affeldt and Department of Justice Tax Division Trial Attorneys Richard M. Rolwing and Carl F. Brooker, who are representing the United States in this case.
Citizen of Mexico Pleads Guilty to Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 42, a citizen of Mexico recently residing in Norwalk, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016.
Judge Meyer scheduled sentencing for April 25, 2017, at which time SILVA-GARCIA faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Bronx, New York, Man Sentenced to Four Years in Prison for Role in Conspiracy to Possess with Intent to Distribute 22 Kilograms of Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a conspiracy to possess with intent to distribute 22 kilograms of heroin in New Jersey, U.S. Attorney Paul J. Fishman announced.
Edwin Alamo Jr., 22, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor-trailer, occupied by Sauro D. Estevez-Figueredo and Alberto Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Emmanuel Gonzalez and Alamo drove to the tractor-trailer and left with a suitcase given to them by Mora. Later, Porfirio Peralta-Nunez arrived at the tractor-trailer with two empty bags and left shortly afterwards with the bags filled.
Subsequent traffic stops allegedly revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Additional quantities of narcotics were allegedly found in Peralta-Nunez’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl remaining at the tractor-trailer.
Alamo admitted that he went to Clifton to pick up narcotics from a tractor-trailer and that he obtained a suitcase containing approximately 22 kilograms of heroin.
In addition to the prison term, Judge Sheridan sentenced Alamo to three years of supervised release.
Co-defendants Mora and Gonzalez have pleaded guilty; Gonzalez was sentenced to 120 months in prison and Mora is awaiting sentencing. Charges and allegations pending against Peralta-Nunez and Estevez-Figueredo are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Meredith Williams of the Narcotics/OCDETF unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender
Bossier City woman, Minden man sentenced for smuggling methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman and a Minden man were sentenced last week for attempting to smuggle more than a pound of methamphetamine into Louisiana from Texas.
Rustin J. Stein, 30, of Bossier City, La., and James Lee Adkins, 30, of Minden, La., were sentenced Friday to 51 months and 87 months in prison respectively by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to distribute methamphetamine. They were also sentenced to three years of supervised release. According to the guilty pleas, the defendants were traveling on February 8, 2016 near mile marker 2 on Interstate 20 when a state trooper conducted a traffic stop. State police searched the vehicle, and one pound of methamphetamine was found in the right rear door. Adkins also had a small baggie of methamphetamine in his front pants pocket, and Stein had a small amount of methamphetamine in her purse. Stein admitted to traveling to Dallas with Adkins to buy methamphetamine from a source for $5,000 and planned to split the cost of the drugs and the trip.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Belleville Man Sentenced for Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on January 27, 2017, Michael H. McDaniel, 37, Belleville, IL, was sentenced for Receipt of Child Pornography and Possession of Prepubescent Child Pornography. McDaniel was sentenced to 97 months’ imprisonment on each count, to run concurrently, to be followed by a 10-year term of supervised release on each count, also to run concurrently. McDaniel was also ordered to pay a $200 special assessment. In addition, McDaniel paid $1,000 in restitution to one of the victims identified in the child pornography he collected and distributed. McDaniel was remanded to the custody of the United States Marshals Service when the hearing ended.
The charges arose when, on April 6, 2016, several electronic devices, including a Hewlett Packard computer and a Hewlett Packard laptop, were seized from the residence in which Michael H. McDaniel resided with other individuals and from McDaniel’s place of employment. On that same date, McDaniel provided a voluntary statement in which he admitted first viewing child pornography in February 2014, and claimed that he last viewed it around April 5, 2015. McDaniel also admitted downloading child pornography, but said that the other individuals who lived at the residence did not know that he did so and did not view it with him. McDaniel said that there would be child pornography on the work laptop and the desktop computer seized from his
residence.
A forensic review of both computers revealed that both contained child pornography, and that many of the images were of prepubescent children. The forensic review also revealed that, between on or about April 3 and April 6, 2015, the defendant received image and/or video files of child pornography via the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab Aresources.@
The case was investigated by the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
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Atlanta Man Sentenced to 11 Years in Prison for Armed Carjacking at a College Park Gas StationRead the Press Release
ATLANTA - Dontrail Xavier Roundtree has been sentenced to 11 years, nine months in prison for an armed carjacking in College Park, Georgia, last year. Roundtree stole a car at gunpoint at a gas station, led police on a high-speed chase, tried to flee after crashing the stolen vehicle, and then fought with police officers trying to take him into custody.
“Roundtree victimized an innocent citizen and placed the lives of other citizens and police officers in danger when he led police on a high-speed chase,” said U. S. Attorney John Horn. “The public can rest easier knowing that law enforcement put an end to Roundtree’s crime spree.”
“The sentence that Roundtree received represents the seriousness of his crime, and this is just another example of ATF’s commitment in combating violent crime to protect our communities,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges and other information presented in court: On January 26, 2016, Roundtree approached a patron at a gas station in College Park, pulled a .45 caliber semi-automatic pistol and demanded the victim’s car keys. Roundtree then fled in the victim’s car. After a witness called 911, a College Park Police Officer attempted to pull Roundtree over in the stolen vehicle. Roundtree then sped off.
A chase ensued on I-285 with speeds approaching 130 miles per hour. Roundtree finally crashed the car into a ditch upon exiting the interstate, and then ran while being pursued on foot by officers. Once apprehended, he was combative and kicked one officer as the officers tried to place him in custody.
Dontrail Xavier Roundtree, 24, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 11 years, nine months in prison to be followed by five years of supervised release. Roundtree was convicted of these charges on November 7, 2016, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Associate of Wildboys Gang Pleads Guilty to Attempted MurderRead the Press Release
An associate of the Wildboys street gang in South Carolina has pleaded guilty to attempted murder in aid of racketeering for his role in a gang-related shooting.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Brian Manigo, aka B-Nasty, 25, of Green Pond, South Carolina, pleaded guilty today to attempted murder in aid of racketeering activity. Sentencing will be set before U.S. District Court Judge Richard M. Gergel of South Carolina.According to admissions made in connection with his plea, Manigo was an associate in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. The defendant further admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
As part of his plea agreement, Manigo admitted his involvement in a shooting on May 14, 2011, at a car wash in Walterboro. Another Wildboys associate drove the vehicle, allowing Manigo to shoot multiple times at an associate of the rival Cowboys gang in retaliation for an earlier shooting. One individual was struck by the gunfire and sustained serious bodily injury.
Manigo and other alleged members or associates of the Wildboys were charged in an indictment with attempted murder in aid of racketeering and firearms offenses on Feb. 9, 2016.
Separately, also on Feb. 9, 2016, nine members and associates of the Cowboys gang were charged in an indictment with racketeering conspiracy, attempted murder in aid of racketeering, and firearms offenses. The indictment further alleges that, for a period of time, the Cowboys were aligned with the Wildboys. To date, multiple members and associates of the Cowboys have pleaded guilty to charges in the indictment, including racketeering conspiracy and attempted murder in aid of racketeering.An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.
Associate of Wild Boys Gang Pleads Guilty to Attempted MurderRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
WASHINGTON – An associate of the Wildboys street gang in South Carolina has pleaded guilty to attempted murder in aid of racketeering for his role in a gang-related shooting.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Brian Manigo, aka B-Nasty, 25, of Green Pond, South Carolina, pleaded guilty today to attempted murder in aid of racketeering activity. Sentencing will be set before U.S. District Court Judge Richard M. Gergel of South Carolina.According to admissions made in connection with his plea, Manigo was an associate in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. The defendant further admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
As part of his plea agreement, Manigo admitted his involvement in a shooting on May 14, 2011, at a car wash in Walterboro. Another Wildboys associate drove the vehicle, allowing Manigo to shoot multiple times at an associate of the rival Cowboys gang in retaliation for an earlier shooting. One individual was struck by the gunfire and sustained serious bodily injury.
Manigo and other alleged members or associates of the Wildboys were charged in an indictment with attempted murder in aid of racketeering and firearms offenses on Feb. 9, 2016.
Separately, also on Feb. 9, 2016, nine members and associates of the Cowboys gang were charged in an indictment with racketeering conspiracy, attempted murder in aid of racketeering, and firearms offenses. The indictment further alleges that, for a period of time, the Cowboys were aligned with the Wildboys. To date, multiple members and associates of the Cowboys have pleaded guilty to charges in the indictment, including racketeering conspiracy and attempted murder in aid of racketeering.An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.
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Arizona Man Convicted in Manhattan Federal Court for Material Support to ISISRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that AHMED MOHAMMED EL GAMMAL, a resident of Arizona, was convicted today of multiple terrorism offenses in connection with his efforts to help Samy El-Goarany join and train with the Islamic State of Iraq and the Levant, a/k/a the Islamic State of Iraq and al-Sham, a/k/a the Islamic State of Iraq and Syria (“ISIS”), a designated foreign terrorist organization. EL GAMMAL was convicted of providing and conspiring to provide material support to ISIS, aiding and abetting the receipt of military-type training from ISIS, and conspiring to receive such training. EL GAMMAL was convicted following a three-week jury trial presided over by U.S. District Judge Edgardo Ramos.
U.S. Attorney Preet Bharara said: “Once again, we have shown that terrorists and terrorist enablers can be brought to justice fairly, openly, and swiftly in the crown jewel of our justice system – civilian courts. Today, a jury in federal court in Manhattan convicted Ahmed Mohammed El Gammal of material support of terrorism. To grow their brand of hate-filled violence and radicalization, terrorist organizations like ISIS need facilitators and promoters around the world. And the jury found today that Ahmed Mohammed El Gammal was one such terrorist facilitator. An Ambassador for ISIS right here in America, El Gammal actively touted and glamorized ISIS online, ultimately recruiting and helping a New York college student travel to an ISIS camp in Syria for military training. That New Yorker died waging jihad, and for El Gammal’s active role in sending him down that trail to terror, he now stands convicted of federal terrorism crimes.”
According to documents publicly filed in this case and evidence presented at trial:
Beginning in at least April 2014, EL GAMMAL was an outspoken supporter on social media of ISIS and ISIS’s Caliphate, or Islamic government, in Syria. Among other things, EL GAMMAL announced that he was with “[t]he State of Iraq and the Levant,” referring to ISIS; celebrated ISIS’s achievements in battle and announcement of the establishment of a Caliphate; proclaimed that he “support[s] jihad everywhere”; and declared that “[b]eheadings have a magical effect.” EL GAMMAL additionally announced that “[i]f Daesh [i.e., ISIS] gets to Egypt, I will go join them, so I can torture the Egyptians, and whip them.”
As of at least August 2014, a 24-year-old New York City resident named Samy El-Goarany began to express his support for ISIS on social media as well. On August 14, 2014, El-Goarany heard that EL GAMMAL had made comments supportive of ISIS. Minutes later, El-Goarany contacted EL GAMMAL and they communicated via an encrypted communications platform. Less than an hour after this online conversation, EL GAMMAL sent El-Goarany a documentary on life in the Islamic State that outlined the type of training ISIS provides. Over the next several months, EL GAMMAL and El-Goarany continued corresponding over the Internet, although EL GAMMAL and El-Goarany deleted almost all of these exchanges.
In the midst of these communications, in October 2014, EL GAMMAL traveled to New York City, where El-Goarany was enrolled in college, and met with El-Goarany. During this October 2014 trip, EL GAMMAL provided El-Goarany with the phone number for EL GAMMAL’s contact in Turkey, Ateia Aboualala, who would be responsible for helping El-Goarany travel from Turkey across the border to ISIS in Syria. While in New York City, EL GAMMAL also contacted Aboualala in Turkey regarding El-Goarany’s plans to travel. EL GAMMAL later provided El-Goarany with social media contact information for Aboualala. Thereafter, in a coded conversation, EL GAMMAL assured Aboualala that he had vetted El-Goarany and El-Goarany could be trusted.
In late January 2015, El-Goarany left New York City for Istanbul, Turkey. Upon arriving in Turkey, El-Goarany immediately reached out to Aboualala. While El-Goarany was in Turkey, EL GAMMAL continued to communicate with El-Goarany over the Internet, providing advice on traveling toward Syria and on meeting with Aboualala. After arriving in Syria, El-Goarany received religious training and advanced military-type training from ISIS throughout 2015. On May 7, 2015, in the midst of his training with ISIS, El-Goarany reported to EL GAMMAL that “everything [was] going according to plan.” A few months later, on July 16, 2015, El-Goarany wrote to EL GAMMAL: “Life has changed a lot for me at this new job but I love it and I don’t regret taking up the offer,” and “May God reward you with goodness,” to which EL GAMMAL responded, “Great.”
In May 2015, El-Goarany’s father traveled to Turkey and met with Aboualala, in an attempt to locate his son. Upon learning of this, EL GAMMAL instructed Aboualala, “Don’t ever ever mention me. Not even my name[,]” and urged Aboualala not to meet with El-Goarany’s father. On May 5, 2015, Aboualala reported back to EL GAMMAL, assuring EL GAMMAL that, when Aboualala met up with El-Goarany’s father, “I covered up for you.”
In coded messages in mid-2015, EL GAMMAL reached out to El-Goarany to inquire about the possibility of his (EL GAMMAL’s) traveling to ISIS in Syria. On July 13, 2015, El-Goarany, again in a coded message, responded that he needed to ask his “supervisors at work first,” but commented that “it’s risky because the parking lot these days is going under a lot of renovation, especially in the north side,” alluding to military operations occurring in northern Syria at the time.
On November 23, 2015, El-Goarany’s brother received a message from a member of ISIS with an attached letter from El-Goarany. The letter read: “if you’re reading this then know that I’ve been killed in battle and am now with our Lord, inshaAllah. Remember what I told you . . . we will win this war one day, this war between Iman (Belief) and Kufr (Disbelief) between Good and Evil. . . .”
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EL GAMMAL, 44, of Avondale, Arizona, was convicted of one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison or a fine; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. 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 Judge Ramos. A sentencing date has not yet been set.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the U.S. Attorney’s Office for the District of Arizona, and the Phoenix Field Office of the FBI for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Negar Tekeei, Brendan F. Quigley, and Andrew J. DeFilippis are in charge of the prosecution, with assistance from Trial Attorney Ranganath Manthripragada of the Counterterrorism Section.
Albuquerque Felon Facing Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Moses Hernandez, 35, of Albuquerque, N.M., with violating federal firearms laws by unlawfully possessing a firearm and ammunition. Hernandez was remanded into federal custody pending trial which has yet to be scheduled.
Hernandez was arrested on Jan. 26, 2017, on a criminal complaint charging him with being a felon in possession of a firearm in Bernalillo County, N.M. According to the complaint, Hernandez was arrested on Jan. 26, 2017, after Hernandez allegedly discharged a firearm in the direction of Albuquerque Police Department (APD) officers. According to the complaint, Moses was prohibited from possessing firearms or ammunition because of his previous felony convictions for aggravated assault with a deadly weapon and two convictions for possession of a controlled substance.
If convicted of the charge in the criminal complaint, Hernandez faces maximum penalty of ten years in federal prison. If the court determines that Hernandez is an armed career criminal, he would face an enhanced penalty of not less than 15 years of imprisonment. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the APD. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Acting Attorney General Boente Issues Guidance to Department on Executive OrderRead the Press Release
Dana J. Boente, who was appointed this evening to serve as acting Attorney General, tonight issued the following guidance to the men and women of the department:
On January 30, 2017, Acting Attorney General Sally Q. Yates issued a memorandum barring Department of Justice Attorney’s from presenting arguments in defense of the President’s January 27, 2017, Executive Order entitled “Protecting the Nation from Foreign Terrorist Entry Into the United States.” At approximately 9:00 p.m., I was asked by the President to serve in the capacity of Acting Attorney General. After having dedicated the last thirty-three years of my life to this Department, I am humbled and incredibly honored to serve as Acting Attorney General. Based upon the Office of Legal Counsel’s analysis, which found the Executive Order both lawful on its face and properly drafted, I hereby rescind former Acting Attorney General Sally Q. Yates January 30, 2017, guidance and direct the men and women of the Department of Justice to do our sworn duty and to defend the lawful orders of our President.
Prior to this appointment, Boente had been serving as the U.S. Attorney for the Eastern District of Virginia since his confirmation by the U.S. Senate on Dec. 15, 2015. Boente was appointed by the Attorney General in December 2012 to serve as the U.S. Attorney for the Eastern District of Louisiana, a position he held until September 2013. Boente began his career with the Justice Department in 1984 with the Tax Division, and in January 2001 he became an Assistant U.S. Attorney in the Fraud Unit of the Eastern District of Virginia.
From 2005 to 2007, Boente served as the Principal Deputy Assistant Attorney General of the Tax Division. Following his service with the Tax Division, he returned to the Eastern District of Virginia when he was selected as the First Assistant U.S. Attorney. He served as acting U.S. Attorney for that office from October 2008 through September 2009 and from Sept. 23, 2013 until his Senate confirmation.
Saturday 28 January 2017
Sioux Falls Man Sentenced for Prostitution TransportationRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Transportation for Prostitution was sentenced on January 23, 2017 by U.S. District Judge Karen E. Schreier.
Eric Sims, age 47, was sentenced to 21 months in custody, with 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Sims was indicted for Sex Trafficking Conspiracy by a federal grand jury on October 6, 2015. He pled guilty to Transportation for Prostitution on October 20, 2016.
Sims aided and abetted individuals engaging in acts of prostitution in Sioux Falls by providing them a place to stay while they pursued prostitution activities. Co-defendant Michael Dickey transported a female from Minnesota to South Dakota for the purpose of engaging in prostitution. Dickey posted advertisements on Backpage.com and received some of the proceeds from the commercial sex acts. Dickey was sentenced on August 29, 2016, to 30 months of incarceration for his participation in the prostitution activity.
This case was investigated by the Federal Bureau of Investigation, and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Sims was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Firearm PossessionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Mason Hamm, 20, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 20, 2017. He pleaded not guilty to the charge.
The penalty upon conviction is up to 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hamm unlawfully possessing a firearm suppressor, also known as a silencer. The charge is merely an accusation and Hamm is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and South Dakota Game, Fish, and Parks. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Hamm was released pending trial. A trial date has not been set.
Pukwana Man Charged with Operating a Motor Vehicle Under the Influence of Alcohol Causing Serious Bodily Injury to a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pukwana, South Dakota, man has been indicted by a federal grand jury for Operating a Motor Vehicle Under the Influence of Alcohol Causing Serious Bodily Injury to a Minor.
Wesley Paul Miller, age 40, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 23, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 5, 2016, Miller, while being in actual physical control of a vehicle and under the influence of an alcoholic beverage, drove over a minor child, causing serious bodily injury.
The charge is merely an accusation and Miller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Miller was released on bond pending trial. A trial date has not been set.
Mitchell Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mitchell, South Dakota, man convicted of Abusive Sexual Contact was sentenced on January 23, 2017, by U.S. District Judge Karen E. Schreier.
Brent Allen Silk, Jr., age 26, was sentenced to 36 months in custody, followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Silk pled guilty to a Superseding Information for Abusive Sexual Contact on October 24, 2016.
On the night of May 12, 2015, Silk and others were drinking at a home just east of Lake Andes, on the Yankton Sioux Reservation. Later in the night, Silk was in a van and had sexual contact with an intoxicated female adult who was incapable of appraising the nature of the conduct.
This case was investigated by the Yankton Sioux Tribe Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Silk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on January 23, 2017, by U.S. District Judge Roberto A. Lange.
Jeremiah Jay Swalley, age 34, was sentenced to 21 months in custody, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Swalley was indicted by a federal grand jury on March 22, 2016. He pled guilty to a Superseding Information on October 24, 2016.
The conviction stemmed from an incident that occurred in July 2015, wherein Swalley sexually abused a 12-year-old girl.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
Swalley was immediately turned over to the custody of the U.S. Marshals Service.
Hot Springs Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot Springs, South Dakota, man convicted of Interference with Commerce by Robbery, and Use and Brandishing of a Firearm During the Commission of a Crime of Violence was sentenced on January 20, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ronald William Swallow, age 51, was sentenced to 10 years of imprisonment, 5 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and $27,006.66 in restitution.
Swallow was charged on February 23, 2016. The conviction stems from Swallow robbing at gunpoint employees of three Rapid City casinos; East St. Pat’s Casino, Joker’s Casino, and Uncle Sam’s Casino.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and & Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Swallow was immediately turned over to the custody of the U.S. Marshals Service.
Cherry Creek Man Sentenced for Sexual Contact with a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Sexual Contact with a Minor was sentenced on January 23, 2017, by U.S. District Judge Roberto A. Lange.
Sylvan Larrabee, age 24, was sentenced to 24 months in custody, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Larrabee was indicted by a federal grand jury on March 25, 2016. He pled guilty on October 24, 2016.
The conviction stems from an incident on May 28, 2015, when the victim went to Larrabee’s residence in Dupree. The two of them had consensual sexual intercourse twice that day. Prior to the consensual sexual intercourse, Larrabee was aware that the victim was only 14 years of age. Some of his friends had warned him about her being too young. The victim’s mother had also confronted Larrabee, asking him to leave her daughter alone.
This case was investigated by the Cheyenne Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Larrabee was immediately turned over to the custody of the U.S. Marshals Service.
Bismarck, North Dakota Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that Michael David Rivera, age 29, of Bismarck, North Dakota, appeared before U.S. District Judge Ralph R. Erickson on January 26, 2017, in Fargo, North Dakota, and made his initial appearance, and pled guilty to the Indictment that charged him with Receipt of Images Depicting the Sexual Exploitation of Minors.
The maximum penalty upon conviction is a mandatory minimum of 5 years up to 20 years of imprisonment and/or a $250,000 fine, at least 5 years up to life of supervised release, a $100 special assessment to the federal crime victims fund, and a $5,000 assessment to the domestic trafficking victims’ fund, unless the sentencing court finds the Defendant to be indigent. Restitution may also be ordered.
Rivera was indicted by a North Dakota grand jury on October 6, 2016. The South Dakota U.S. Attorney’s Office, District of South Dakota, is prosecuting the case after the U.S. Attorney’s Office, District of North Dakota, recused itself from the matter.
The charge stems from the following facts:
In June 2016, Bismarck and other North Dakota state and federal law enforcement officers began to learn that Rivera, at the time a Deputy U.S. Marshal who worked at the federal courthouse in Bismarck, had been surreptitiously recording a variety of women, including juveniles, while they were in fitting rooms or in other parts of area stores. Some of the surreptitious recordings captured women and minors in various stages of undress. Officers received search warrants to search Rivera’s Bismarck apartment, his vehicle parked at the federal courthouse in Bismarck, and his person, and to particularly look at any digital or computer media found at those locations. At his apartment, officers seized a computer that was password protected. Rivera was arrested on state charges related to the surreptitious recording of the adult and juvenile females, which are separately pending in district court in the State of North Dakota, County of Burleigh.
Officers searched Rivera’s computer, and found downloaded videos and images, including 36 or more pictures of child pornography and 52 or more videos of child pornography. A review of some of the downloaded videos, as a brief sample, included the sexual abuse of children, including children in the age range of 6 to 11. About 52 child pornography files, including mostly videos, were found in a user directory for "Michael" on Rivera’s computer.
Officers’ searches of the computer also revealed artifacts in bookmarks, cache records, web history, and web visits. Some of those internet artifacts are commonly associated with child pornography and voyeur search artifacts. Internet access logs on the computer indicate some of the materials were received and accessed by Rivera between April 2016 and June 2016, in the District of North Dakota. The internet was used by Rivera to access visual depictions of minors engaging in sexually explicit conduct.
The investigation was conducted by the Department of Homeland Security Homeland Security Investigations, the Bismarck Police Department, and the North Dakota Crime Bureau’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Tim Maher is prosecuting the case on behalf of the U.S. Attorney General and U.S. Attorney Randolph J. Seiler.
Based upon the request of the parties, Rivera was remanded to the custody of North Dakota state authorities, pending his January 30, 2017 jury trial on state charges. The federal sentencing date has been set for April 18, 2017.
Friday 27 January 2017
Woman Convicted by Jury in Manhattan Federal Court of Impersonating A Federal OfficialRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”), announced today that SANDRA ZONGO, a/k/a “Sandra Nelson,” a/k/a “Akiwa Gizzel,” was convicted today by a jury of impersonating an officer or employee of the United States, passing fictitious government obligations, wire fraud, and attempting to commit wire fraud in seeking benefits from the Human Resources Administration. ZONGO was convicted following a nine-day trial in Manhattan before U.S. District Judge Kimba M. Wood.
U.S. Attorney Preet Bharara said: “Today, a unanimous jury convicted Sandro Zongo of posing as a federal government employee and using fake documents to steal hundreds of thousands of dollars in goods and services from her victims. Claiming she was a Commissioner for a made-up organization with ties to the United Nations, Zongo defrauded hotels, restaurants and other vendors with fake invoices and went as far as defraud a charity for military veterans.”
Special Agent in Charge David Beach said: “The Secret Service places a priority on investigating criminals, who prey on the residents of this city and their businesses through deceit and false solicitations for real charities. Working with our partners with the NYPD to arrest these criminals and deter others from committing similar schemes, the Secret Service pursues complex crimes with significant community impact.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
In October 2014, the United States Secret Service began investigating ZONGO, who had been holding herself out as the “Deputy Commissioner” of the “Office of the Commissioner.” The “Office of the Commissioner” purported to be an “Intergovernmental Organization” and claimed to be funded by the federal government in doing work with the United Nations. In fact, the organization was not federally funded and had no affiliation with the United Nations. While purporting to be a “Deputy Commissioner,” ZONGO obtained hundreds of thousands of dollars in goods and services from hotels, restaurants, and other Manhattan vendors using fake government purchase orders, certificates of indebtedness, and other fraudulent documents. Among other things, ZONGO defrauded a charity holding an event designed to benefit injured veterans of $150,000.
While ZONGO was claiming to be the “Deputy Commissioner of Foreign Affairs,” she also submitted fraudulent documents to the Human Resources Administration in her application for housing benefits, including letters in which she claimed to be an “intern.”
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ZONGO, 47, of New York, New York, was convicted of one count of passing fictitious obligations, which carries a maximum sentence of 25 years in prison; one count of impersonating an official or employee of the United States government, which carries a maximum sentence of three years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of attempted wire fraud, which carries a maximum sentence of 20 years in prison.
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 United States Secret Service, and thanked the Criminal Investigators of the Southern District New York, the New York City Police Department, the Human Resources Administration, the United States Postal Service–Office of Inspector General, as well as the United States Postal Inspection Service.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jessica Fender, Kiersten Fletcher, Janis Echenberg, and Christopher DiMase are in charge of the prosecution; paralegal specialist Jenny Satinover provided additional support.
Williamson County Man Sentenced for Methamphetamine OffenseRead the Press Release
On January 24, 2017, and January 26, 2017, Blake R. Gordon, 35, of Marion, was sentenced to a total of 216 months’ in federal prison for methamphetamine violations, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On January 24, 2017, Gordon, who had previously pled guilty to a one-count indictment charging him with conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 180 months’ incarceration, 10 years’ supervised release, and was fined $500.00. At sentencing, the district court found that Gordon was responsible for the distribution of approximately 170 grams of "ice." Ice is methamphetamine which has a purity level of at least 80%. The offense occurred between August 2015 and December 15, 2015, in Williamson County. Gordon was classified as a Career Offender, based on multiple prior felony drug convictions.
At the time of Gordon’s 2015 methamphetamine offense, he was on supervised release for a 2006 federal conviction for conspiracy to manufacture more than 500 grams of methamphetamine. On January 26, 2017, Gordon’s supervised release was revoked and he was sentenced to an additional 36 months’ imprisonment. The judge ordered that the 36 month sentence be served consecutive to the previously imposed 180 month term.
Co-defendant Shara L. Peyton, a/k/a "Shara Smothers," 39, of Marion, was previously sentenced to 60 months’ imprisonment for her role in the methamphetamine conspiracy.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration. The Herrin Police Department also assisted in the investigation.
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United States Attorney Hosts Meeting with South Carolina Criminal Justice Academy and the Deaf & Hard of Hearing Community to Plan TrainingRead the Press Release
Contact Person: Rob Sneed (843) 266-1600
Columbia, South Carolina---- United States Attorney Beth Drake stated today that the United States Attorney’s Office is working to uphold the commitments in the Americans with Disabilities Act (ADA). This week, the U.S. Attorney’s Office hosted a meeting that included the Department of Justice Community Relations Service, the South Carolina Criminal Justice Academy and the Deaf and Hard of Hearing community to coordinate training for law enforcement on practical ways to communicate and serve the hard of hearing and deaf community.
U.S. Attorney Drake stated that, “Twenty-six years ago, Congress passed, and President George H. W. Bush signed, the ADA, ushering in a new era of civil rights for people with disabilities in this country.” She further stated that the U.S. Attorney’s Office in collaboration with the Department of Justice Civil Rights Division enforces the ADA to ensure that people with disabilities can live, work, learn, vote, and play in their own communities – free from discrimination and able to participate in the mainstream of American life. Title II of the ADA has an Effective Communications requirement, where certain public entities, including law enforcement, must take appropriate steps to ensure that communications with individuals with disabilities are “as effective” as communications with others. This includes providing appropriate auxiliary aids and services where necessary.
Attending the meeting were: two members of the South Carolina Association of the Deaf: Anita Steichen-McDaniel, Executive Director and Joy Hill, Administrative Assistant; Roger C. Williams, who is the Director of Services for the Deaf and Hard of Hearing at the South Carolina Department of Mental Health; Walter Atkinson, who is a Senior Conciliation Specialist with the Department of Justice Community Relations Service; and Wayne C. Harris, a senior training official at the South Carolina Criminal Justice Academy. Also attending from the U.S. Attorney’s Office were U.S. Attorney Beth Drake, Civil Division Chief Barbara Bowens, Affirmative Civil Rights Coordinator Rob Sneed, Criminal Civil Rights coordinator Alyssa Richardson, and Law Enforcement Coordinator Becky Plyer.
The group discussed issues facing South Carolina’s Deaf and Hard of Hearing community when interacting with law enforcement. They also discussed training programs and opportunities for law enforcement through the South Carolina Criminal Justice Academy. The South Carolina Criminal Justice Academy, the SC Association of the Deaf, and the South Carolina Department of Mental Health were eager to partner in the immediate future in additional training for law enforcement in order to enhance communication between law enforcement and persons who are deaf or hard of hearing.
According to U.S. Attorney Beth Drake, collaborative efforts such as this are a “win-win” situation for South Carolina. The Deaf and Hard of Hearing community can impart invaluable training and experience to law enforcement; and the law enforcement community will be better prepared to protect and serve persons hard of hearing or deaf. “The South Carolina Criminal Justice Academy does terrific work with the resources it has to prepare our officers for the challenges on the streets. This meeting this week is just another example of how the Criminal Justice Academy leans in to the real life challenges that officers face on the street. Every dollar spent in training our officers at the CJA saves lives.”
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Two Individuals Arrested and Charged in Manhattan Federal Court with Securities and Wire Fraud for Participating in A Multimillion-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Deputy 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 STEVEN SIMMONS and JOSEPH MELI were arrested this morning on conspiracy, securities fraud, and wire fraud charges stemming from their participation in a scheme to defraud investors and provide those fraud proceeds to earlier investors in a hedge fund (the “Hedge Fund”). MELI is also charged with wire fraud in connection with a related fraudulent scheme in which MELI solicited investments through false representations that MELI had entered into an agreement to purchase tickets to a particular Broadway show (the “Show”), which MELI could then resell for a profit.
SIMMONS and MELI are expected to be presented today in Magistrate Court before the Honorable James C. Francis IV.
Deputy U.S. Attorney Joon H. Kim said: “As alleged, while soliciting funds from investors for legitimate-sounding investments, Steven Simmons and Joseph Meli were in fact running Ponzi schemes. Meli allegedly made up out of whole cloth purported deals to buy Broadway tickets that he could later sell at a profit. But as alleged, Meli was just robbing Peter to pay Paul. Thanks to the work of the FBI, the curtain has fallen on Simmons and Meli's alleged fraud scheme.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “When fraudsters think they’re going to get away with scheming investors out of money, they tend to forget that at some point the money will run out. It’s the way a Ponzi scheme ends. At some point, the original investors will want to see returns on their investments, and they’re going to demand an explanation as to why there isn’t any money. The men arrested in this case even allegedly joked about the scheme, calling it a ‘shell game.’ This should serve as a warning to others playing the same games, at some point, the FBI and our law enforcement partners will discover the fraud and will make sure the criminals behind it are held accountable.”
According to the Complaint unsealed today in Manhattan federal court[1]:
Beginning in at least November 2015 through in or about January 2017, SIMMONS and MELI solicited investments by falsely representing to the investors that their funds would be used for legitimate, specified, investment purposes. SIMMONS represented that investor funds would be invested in securities by the Hedge Fund and MELI represented that investor funds would be used to purchase a large number of tickets for the Show which would then be resold by MELI for a profit. In fact, SIMMONS and MELI failed to invest the investor monies as promised, but rather used the money, in a Ponzi-like fashion, to fund the repayment of earlier investors in the Hedge Fund whose redemption requests could not be forestalled, and diverted investor monies to their own use.
Among other false and misleading statements, SIMMONS told one investor (“Victim Entity-1”) that its funds would be placed by the Hedge Fund with a highly successful group of portfolio managers, and provided performance information for these portfolio managers. In truth and in fact, SIMMONS solicited those investment funds from Victim Entity-1 for the purpose of repaying an earlier investor in the Hedge Fund that had demanded the return of its investment. Most of Victim Entity-1’s funds were, within minutes of their receipt by the Hedge Fund, wired to the earlier investor. The following day, $50,000 was wired by the Hedge Fund to an account controlled by SIMMONS. In a later consensually recorded conversation with a cooperating witness (the “CW”), SIMMONS expressed concern that Victim Entity-1 would contact the portfolio managers with whom it believed its funds were invested and learn that “there’s no . . . money.”
MELI also solicited at least three investors in a separate business run by MELI by falsely representing that he had entered into an agreement with the producer of the Show under which MELI would purchase a large number of tickets to the Show and then resell those tickets at a profit. MELI promised these investors a share in these profits. In truth and in fact, MELI had not entered into an agreement to purchase tickets to the Show but rather diverted investor money to his own personal use, including spending more than $200,000 at a luxury car dealership, and used investor monies to repay earlier investors in both his own Ponzi-like ticket resale scheme and the Hedge Fund. In later consensually recorded conversations with the CW, MELI discussed his “fraudulent ticket deal” and described playing a “shell game” with investor monies.
* * *
SIMMONS, 48, of Wilton, Connecticut, and MELI, 42, of Manhattan, were arrested this morning. SIMMONS is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud. MELI is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and two counts of wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 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 sentencings of the defendants will be determined by the judge.
Mr. Kim praised the work of the FBI and thanked the Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
The allegations 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.
Three Individuals Plead Guilty in $55 Million Health Care Fraud Scheme at Two Brooklyn Medical ClinicsRead the Press Release
Three individuals pleaded guilty this week in connection with a health care fraud scheme involving two Brooklyn, New York clinics that caused approximately $55 million in false and fraudulent claims to Medicare and Medicaid.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Regional Office, Acting Special Agent in Charge Kathy A. Enstrom of Internal Revenue Service Criminal Investigation’s (IRS-CI) New York Office and Medicaid Inspector General Dennis Rosen of New York State Office of Medicaid Inspector General (OMIG), made the announcement.
Olga Proskurovsky, 49, and Yuriy Omelchenko, 49, both of Brooklyn, New York, each pleaded guilty to one count of conspiracy to commit health care fraud. Pursuant to their plea agreements, the defendants agreed to forfeiture money judgments in the amount of $17,216,687. Isak Aharanov, 42, of Brooklyn, New York, also pleaded guilty to two counts of conspiracy to commit money laundering and one count of conspiracy to defraud the United States. The defendants pleaded guilty before U.S. District Judge Roslynn R. Mauskopf of the Eastern District of New York.
According to the defendants’ admissions made as part of the plea agreements, Proskurovsky served as a medical biller and Omelchenko worked as a therapist manager at Prime Care on the Bay LLC (Prime Care) and Bensonhurst Mega Medical Care P.C. (Bensonhurst). The defendants admitted that they assisted in a scheme to defraud the Medicare and Medicaid programs in which patients subjected themselves to medically unnecessary health services, including physical and occupational therapy, provided by unlicensed staff. To conceal the scheme, Proskurovsky and Omelchenko admitted that occupational and physical therapists falsified patient charts and medical billing documents.
As part of his plea agreement, Aharanov admitted that he and co-conspirators paid patients in order to induce them to come to Prime Care, Bensonhurst and Total Rehab and Physical Therapy P.C. Aharanov further admitted that he used a bank account opened in the name of one of his companies to launder funds and generate the cash needed to make these illegal kickback payments.
Fifteen other individuals have pleaded guilty in connection with the scheme.
HHS-OIG, IRS-CI and the New York State OMIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys A. Brendan Stewart and Richard A. Powers of the Fraud Section and Assistant U.S. Attorney F. Turner Buford of the Eastern District of New York, formerly a Fraud Section trial attorney, prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Sacramento Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
SACRAMENTO, Calif. — Timothy Donald Fialdini, 51, of Sacramento, pleaded guilty on Thursday to failure to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2015, Fialdini moved to Sacramento from the state of Nevada and intentionally did not register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) as was required as a result of multiple convictions in Nevada for open and gross lewdness. Among the convictions, in 2009, Fialdini was convicted of committing sexual battery upon a female victim and an intentional sex act in public.
On November 30, 2015, Fialdini indecently exposed himself to an adult female in Sacramento. On March 8, 2016, Fialdini was arrested in a Sacramento County park by U.S. Marshal deputies with the assistance of state and local law enforcement.
This case is the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.
Fialdini is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on April 27, 2017. Fialdini faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Restaurant Manager Pleads Guilty to Hiring Illegal AliensRead 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 Jose Sanchez-Ocampo, 37, of Buffalo, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr., to conspiracy to unlawfully employ 10 illegal aliens in a 12-month period. The charge carries a maximum penalty of five years in prison and $250,000 fine.
Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated Sanchez-Ocampo was the manager of Don Tequila Restaurant on Allen Street in Buffalo. In that capacity, the defendant hired at least 10 illegal aliens to work at Don Tequila and other restaurants.
The plea 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 New York State Department of Taxation and Finance.
Sentencing is scheduled for April 20, 2017, at 11:00 a.m. before Judge Geraci.
Queens Man Sentenced to Life in Prison for Murder-For-HireRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSE LUIS GRACESQUI was sentenced today to life in prison after having been convicted at trial of conspiracy to commit murder-for-hire, murder-for-hire, and murder in connection with a narcotics conspiracy for his role in the murder of a 28-year-old Manhattan man in 1999. U.S. District Judge P. Kevin Castel, who presided over the three-week jury trial, imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Thanks to the efforts of the dedicated agents, detectives, and prosecutors who never gave up, this cold-case murder of an innocent 28-year-old man has been solved and the perpetrator brought to justice. The person responsible for that murder has been sentenced to life in prison, bringing to a close this tragic and senseless crime. We hope this brings some measure of peace to Richard Diaz’s family.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
JOSE LUIS GRACESQUI, a/k/a “Luis Perez,” a/k/a “Ramon Ortiz,” a/k/a “Onel Colon,” a/k/a “Muffler,” was a member of a crew that committed violent robberies, kidnappings, and beatings of drug dealers. In the summer of 1999, GRACESQUI was hired by a major drug dealer in Upper Manhattan to kill one of the drug dealer’s customers (“Intended Victim-1”) after Intended Victim-1 and a number of his associates stole heroin from the drug dealer.
On the night of July 19, 1999, GRACESQUI and a member of his crew saw Intended Victim-1 in a car with another person and began following Intended Victim-1 through Manhattan. When the car with Intended Vicitm-1 stopped at a red light, GRACESQUI got out of the car that he had been in, approached the car with Intended Victim-1, and began shooting. The shots hit both Intended Victim-1 and the driver of the car, Richard Diaz. Richard Diaz was able to drive a short distance to the Henry Hudson Parkway, until Diaz lost consciousness and died. Intended Victim-1 sustained injuries but did not die.
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GRACESQUI, 46, is from Queens, New York. Mr. Bharara praised the investigative work of the DEA and the NYPD.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Brendan F. Quigley, and Rebekah Donaleski are in charge of the prosecution.
Philadelphia Man Recieves 192 Month Prison Sentence for Orchestrating String of Bank RobberiesRead the Press Release
PHILADELPHIA – David Thomas, a/k/a “David Thompson”, 23, of Philadelphia, PA, was sentenced today by U.S. District Court Judge Gerald A. McHugh to 192 months in prison for his role orchestrating and executing four bank robberies over a two-month period from May through July 2015. The Court further ordered Thomas to pay restitution in the amount of $48,408, representing the aggregate of funds stolen during the robberies. On May 14, 2015, Thomas robbed Wells Fargo, located at 52 North Bryn Mawr Avenue, Bryn Mawr, PA. On June 2, 2015, Thomas and others robbed this same Wells Fargo branch. On June 30, 2015, Thomas and others robbed TD Bank, located at 8600 Germantown Avenue, Philadelphia. Finally, on July 15, 2015, Thomas, armed with a loaded semi-automatic pistol and assisted by others, robbed TD Bank, located at 5501 Ridge Avenue, Philadelphia.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia and Lower Merion Police Departments. It is being prosecuted by Assistant United States Attorney Eric A. Boden.
Pensacola Man Sentenced to 17.5 Years in Prison for Multiple Federal Firearm OffensesRead the Press Release
Deangelo A. Rome, 26, of Pensacola, was sentenced today to 17.5 years in prison, after pleading guilty on May 3, 2016, to unlawfully possessing a firearm and ammunition as a convicted felon on multiple dates. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In February 2015, a law enforcement officer discovered a running vehicle with Rome unresponsive in the driver’s seat and located a loaded handgun in view under Rome’s seat.
Later, in December 2015, law enforcement officers responded to a “shots fired” disturbance call. A shooting victim was located, and the residence had bullet holes through a sliding glass door. Multiple shell casings and a loaded magazine were found on the scene. A fingerprint on the loaded magazine matched that of Rome. During the sentencing hearing, the court heard evidence regarding Rome as one of the shooters of the victim.
A few days after the shooting, law enforcement officers responded to a call of armed individuals, who, after fleeing, were tracked to a residence with a vehicle in the driveway. A deputy saw an assault rifle in the vehicle, and ammunition was also found on the premises. During a search of the premises, Rome was located hiding under a bed. The rifle inside the vehicle had both a palm print and DNA evidence belonging to Rome, and Rome’s fingerprint was also located on a separate box of ammunition.
The case resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Escambia County Sheriff’s Office; the Pensacola Police Department; and the ATF Gun Crime Response Team. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Parker Business Woman Sentenced for Employee Benefit Plan EmbezzlementRead the Press Release
DENVER – Emily R. Strunk, age 45, of Parker, Colorado was recently sentenced by U.S. District Court Judge William J. Martinez to serve 78 months in federal prison for wire fraud, money laundering, and embezzlement from an employee benefit plan, federal law enforcement authorities announced. Following her prison sentence, Strunk was ordered to spend three years on supervised release. Judge Martinez also ordered her to pay $2,590,608.35 in restitution to the victims of her crime. Strunk was indicted on April 7, 2016, and pled guilty on September 29, 2016.
According to the facts in the indictment and plea agreement, Strunk was a third-party administrator for employee pension and retirement plans, operating through various businesses including North American Employer Solutions, LLC; BAC Human Resources, LLC; Colorado Benefits Outsourcing, LLC; Benefits Team Administration, LLC; Benefits Administrators & Consultants LLC; and Columbine Employee Benefits Inc. Starting in 2005, and continuing through September 2015, Strunk devised a scheme to fraudulently obtain money from her clients’ employee pension or retirement funds. As the third party administrator, Strunk would gain access to her clients’ plan assets and either directly transfer those assets to her personal and business checking accounts or direct her clients to transfer funds to those bank accounts, which she falsely identified as “trust” accounts. She also directed her clients to send employee retirement contributions directly to her checking accounts, which again were falsely identified as “trust” accounts. Strunk comingled her clients’ funds in her checking accounts, failed to keep accurate records of her clients’ and their plan participants’ assets, and used her clients money for her own personal and business expenses. Most of Strunk’s clients were small businesses.
Strunk concealed her fraud by falsifying plan participants’ online account statements, making it appear that their money was invested in certain assets when, in fact, the funds were in Strunk’s checking account or she had spent them. Strunk also filed or caused to be filed false Forms 5500 with the Department of Labor (DOL) for client plans subject to the Employee Retirement Income Security Act (ERISA). On those forms, she falsely stated the total amount of plan assets and omitted that her fraud and dishonesty caused a loss to the plan, thereby lying to the DOL and her clients to conceal her fraud.
Ms. Strunk deliberately and systematically stole the hard-earned money of small business employees. We don’t do that,” said Acting U.S. Attorney Bob Troyer. “The Department of Labor’s Employee Benefits Security Administration and the IRS Criminal Investigations did an outstanding job investigating this matter, as did the Assistant U.S. Attorneys who ensured the defendant would receive the sentence she deserves.”
“This criminal action demonstrates the U.S. Department of Labor's resolve to vigorously enforce the law to ensure that those who defraud employee benefit plans are brought to justice. This case also exemplifies our commitment to protect employee benefits in coordination with fellow federal agencies,” said Mark Underwood, Acting Regional Director of the Employee Benefits Security Administration’s Kansas City Regional Office.”
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to investigate," said Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation, Denver Field Office. "We will continue to work with our law enforcement partners to investigate this and other money laundering schemes in order to bring justice to the victims.”
This case was investigated by the Department of Labor Employee Benefits Security Administration (DOL-EBSA) and the Internal Revenue Service – Criminal Investigation (IRS-CI). The case was prosecuted by Assistant U.S. Attorney Anna Edgar.
Owner and Finance Manager of Norman Used Car Lot to Serve 41 Months and 31 Months in Prison for Bank Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma – TIMOTHY JAY WILLIAMS, 54, of Edmond, Oklahoma, and STEPHEN L. BUTZ, 53, of Blanchard, Oklahoma, were both sentenced this week to serve 41 months and 31 months respectively for bank fraud that they committed against the Bank of Union and other financial institutions, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. The men were also ordered to pay restitution of $1,260,725.43 to their victims.
Williams was the owner of Lindsey Street Motors, a used car lot in Norman, Oklahoma, and Butz was his finance manager. According to court documents, Williams entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors that granted the bank a secured interest in all used motor vehicles, proceeds, and products of Lindsey Street Motors. In return, The Bank of Union extended to Williams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold. After obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.
Both Williams and Butz pleaded guilty before United States District Judge Judge Miles La-Grange in August of 2016. Each admitted that their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00.
At their sentencing hearings this week, Williams was sentenced to 41 months in prison, to be followed by 3 years of supervised release. Butz was sentenced to serve 31 months in prison, also to be followed by 3 years of supervised release. In addition, Judge Miles-LaGrange ordered both men to pay $1,260,725.43 in restitution to the victims of their conduct, for which they are jointly and severally liable.
This case is the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Julia E. Barry.
Omaha Man Sentenced for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Zechariah Hazard, 31, of Omaha, Nebraska, was sentenced today in Lincoln, Nebraska, to 60 months in prison by Senior United States District Judge Richard G. Kopf, for receipt of child pornography. After his release from prison, Hazard will also serve five years of supervised release and be required to register as a sex offender.
Homeland Security Investigations in Omaha received information that an IP address belonging to Hazard, uploaded an image of child pornography. On July 30, 2015, a search warrant was obtained and served at Hazard’s residence in Omaha, Nebraska. After a forensic examination of Hazard’s computer, Investigators found over 9000 images and video files of child pornography. The files were received and distributed by Hazard from at least December 14, 2014 through July 30, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations.
Ohio Man Admits Participating in Texas to Erie Cocaine Distribution SchemeRead the Press Release
Erie, Pa. -A former resident of Akron, Ohio, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Soo C. Song announced today.
Oscar Mata Garcia, 28, pleaded guilty on Tuesday to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Mata Garcia engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The Court was advised that Mata Garcia’s specific role in the conspiracy was to assist in driving vehicles to the Houston, Texas area to pick up loads of cocaine and then to transport the cocaine to Erie, Pennsylvania and elsewhere, with the cocaine concealed in hidden compartments. According to information provided to the Court, on November 1, 2014, Mata Garcia was in one of the load vehicles with another co-conspirator when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. The Court was advised that Mata Garcia and his co-conspirator had just traveled to the Houston area to pick up a load of cocaine destined for delivery to Erie and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than five kilograms of cocaine.
Judge Cercone scheduled sentencing for May 22, 2017. The law provides for a total sentence of life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Mata Garcia.
North Charleston Man Sentenced to Federal Prison on Weapons ChargesRead the Press Release
Contact Person: Nick Bianchi (843) 727-4381
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Neko Andre Tisdale, age 33, of North Charleston, South Carolina, was sentenced today in federal court in Charleston, South Carolina, for possession of a firearm by a convicted felon. United States District Judge Richard M. Gergel of Charleston sentenced Tisdale to ten years imprisonment, to be followed by two years’ supervised release.
Evidence presented at the change of plea and sentencing hearings established that Tisdale was a passenger in a vehicle stopped by City of Charleston Police Department officers on June 12, 2014. After officers smelled the odor of burnt marijuana coming from the vehicle, they search the vehicle and found a Bersa Firestorm pistol under a child seat. Tisdale admitted that the firearm belonged to him. Tisdale was later arrested by City of Charleston Police on January 31, 2015, with another firearm by City of Charleston Police on January 31, 2015, days after being released on bond from his June 12, 2014, arrest.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the City of Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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New York Man Sentenced to 30 Months in Prison for Dealing Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 26, 2017, Shatu H. Gadson, 44, of Queens, New York, was sentenced to 30 months in federal prison after his guilty plea to charges that he distributed heroin and cocaine base. U.S. District Court Judge J. Garvan Murtha also ordered that Gadson serve three years of supervised release after his prison term.
According to court records, in February and March of 2016, law enforcement in Burlington used an informant to make several purchases of cocaine base and heroin from Gadson. On April 1, 2016, agents arrested Gadson in New York City and he was brought to Vermont to face federal drug charges.
For his crimes, Gadson faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Gadson receive a prison term between 21-27 months. Gadson and the government entered into a plea agreement in which the parties agreed that a 30-month prison sentence was appropriate. In determining that a sentence above the applicable Guideline range was correct, Judge Murtha considered, among other factors, Gadson’s serious criminal history which included felony convictions for drug dealing, assault, and manslaughter.
United States Attorney Eric Miller commended the efforts of the Burlington Police Department, the Department of Homeland Security, the Drug Enforcement Agency, the Vermont State Police, and the U.S. Marshals for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Gadson is represented by Assistant Federal Public Defender Steven Barth.
New Orleans Woman Indicted for Conspiracy to Receive and Pay Illegal Health Care KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SAQUENA GRIFFIN, a/k/a “QUEENIE,” age 34, of New Orleans was charged today with conspiracy to pay and receive illegal Medicare kickbacks which resulted in Medicare paying $378,274 to a local home health.
According to the Indictment, GRIFFIN was a recruiter and marketer for Comprehensive Nursing and Home Health Service, Inc. (Comprehensive) on Earhart Blvd., in New Orleans. GRIFFIN is charged with receiving illegal kickbacks to bring Medicare beneficiaries to Comprehensive.
If convicted, GRIFFIN, faces a possible maximum sentence of five years imprisonment and a $250,000 fine.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
New Orleans Man Indicted for Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GRADY W. CLARK, III, age 38, of New Orleans, was indicted today for possession of child pornography.
According to court documents, special agents with the U.S. Department of Homeland Security, Homeland Security Investigations executed a search warrant on CLARK’s residence on January 20, 2017, during which time they seized numerous electronic items, including a laptop computer, thumb drives and cellular phones that contained images depicting the sexual victimization of prepubescent children. CLARK was arrested and appeared in federal court where he was detained by a United States Magistrate Judge.
Court records also revealed that CLARK was previously convicted on October 30, 2012, in Orleans Parish Criminal District Court for pornography involving juveniles.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Due to his prior conviction, if convicted, CLARK faces a mandatory minimum penalty of ten years imprisonment up to twenty years, followed by up to a life term of supervised release, and a $250,000 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, New Orleans Police Department, and the Louisiana Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Nebraska Upgrades Access to INTERPOL Investigative DataRead the Press Release
In January 2017, the State of Nebraska joined the small but growing number of U.S. states participating in a process called “federation.” Through federation, INTERPOL Washington provides U.S. law enforcement agencies the information technology support to enable queries in both domestic and INTERPOL criminal databases with a single real-time search transaction. Currently, most state law enforcement officers run inquiries through the National Criminal Information Center (NCIC) database. The NCIC catalogs information that officers enter on sex offenders, immigration violators, suspected gang members, people with outstanding warrants and individuals reported missing, for example. Police use the system to locate fugitives, identify missing people, and determine if a subject is driving a stolen car or is wanted elsewhere.
However, between 80 and 90 percent of INTERPOL data, including information on INTERPOL notices, wanted persons, stolen and lost travel documents, and stolen motor vehicles, does not meet the criteria for inclusion in NCIC databases. To capture the INTERPOL data, officers must run a separate query, lengthening the time before an officer determines whether a subject poses a specific threat. Federation solves this problem by connecting the databases, allowing law enforcement a complete view of a subject’s criminal domestic and international profile. Federation reduces the time officers spend running background checks, enhancing officer safety and efficiency.
Photograph courtesy of the National Criminal Information Center A police officer uses a vehicle-mounted mobile platform.Nebraska’s adoption of the program brings the number of participating states to 13, plus Washington, D.C. Federated searches are processed through the International Justice and Public Safety Network (Nlets). These combined searches can be conducted from both fixed and mobile platforms, including vehicle-mounted and hand-held devices. Depending upon an individual state’s existing information technology structure, there is minimal to no charge to participate in federation.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization (INTERPOL) on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Monett Man Sentenced for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Monett, Mo., man was sentenced in federal court today in two separate cases for illegally possessing firearms.
Shannon Lee Barlow, 42, of Monett, was sentenced by U.S. District Judge Stephen R. Bough to four years and two months in federal prison without parole.
On Nov. 9, 2016, Barlow pleaded guilty to two separate indictments that each charged him with being a felon in possession of a firearm and ammunition.
On Dec. 30, 2015, law enforcement officers contacted Barlow at his residence in order to place him under arrest for felony warrants. According to court documents, Barlow came out of the back door of his house with a loaded Harrington & Richardson 20-gauge sawed-off shotgun. He was immediately confronted by law enforcement and refused numerous commands to drop the firearm. Barlow repeatedly told deputies that they would need to shoot him and he refused to disarm, even when confronted by three sheriff's deputies. Barlow's refusal to disarm continued on for approximately half an hour.
Barlow eventually dropped the shotgun and was arrested, at which time officers found several needles and two small plastic baggies with suspected methamphetamine in his pockets. Barlow told officers there was a meth lab in the garage that belonged to his friend. Deputies also arrested the person operating the meth lab.
After he was arrested, Barlow told officers that, had the deputy who originally confronted him been a man, he would have "blown the deputy away." Barlow admitted that he did not try to shoot and kill the deputy because he did not want to kill a woman, but he had no qualms about shooting a male police officer.
Approximately seven months later, after Barlow had been indicted by a federal grand jury for being a felon in possession of a firearm, law enforcement officers came into contact with him again while investigating a suspicious vehicle parked in front of a residence. On July 8, 2016, officers entered a residence in Monett and found Barlow asleep in the living room. He had a loaded FED Hungary, 9x18mm handgun in a holster attached to his left hip. Barlow was awakened and arrested without incident.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Barlow has a prior felony conviction for possession of a controlled substance.
These cases were prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County, Mo., Sheriff’s Department and the Barry County, Mo., Sheriff’s Department.
Medical Doctor Pleads Guilty to Illegally Dispensing Schedule II and Schedule III Controlled SubstancesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BARBARA A. BRUCE, M.D., age 43, pled guilty yesterday to a one count Bill of Information charging her with conspiring with others to dispense quantities of Schedule II and Schedule III drugs outside the scope of professional practice and not for legitimate medical purposes.
According to court documents, DR. BRUCE admitted in a factual basis that she owned and operated the medical office of Barbara A. Bruce, M.D. at 9954 Lake Forest Blvd., Suite 10, in New Orleans, between August 2014 and April 2015. She acknowledged that during her medical practice she wrote prescriptions that were provided to patients without her conducting a medical examination of the patient, and at times, without even seeing the patient. DR. BRUCE admitted that she conspired with a member of her medical staff and with KENNETH KNIGHT, who split 50 percent of the profits received by DR. BRUCE through her medical practice. KNIGHT previously entered a plea of guilty to the same conspiracy and will be sentenced on April 20, 2017.
DR. BRUCE faces a maximum sentence of five years incarceration, a $250,000 fine, and three years of supervised release. U.S. District Judge Nannette Jolivette Brown set sentencing for May 4, 2017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration New Orleans Office and the Internal Revenue Service, Gulfport, Mississippi for investigating this matter. Assistant Attorney John F. Murphy is in charge of the prosecution.
McKean County Man Admits Possessing Unregistered MachinegunRead the Press Release
ERIE, Pa. – A former resident of Port Allegany, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
James William McMichael, 72, pleaded guilty on January 24, 2016, to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that McMichael possessed a machinegun not registered to him in the National Firearms Registration and Transfer Record. According to information provided to the court, McMichael, who was a former federally licensed firearms dealer, ordered various firearm parts which were then fully assembled into a functioning machinegun. The machinegun was then hidden in the ceiling of McMichael’s Port Allegany home.
Judge Cercone scheduled sentencing for June 5, 2017. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Port Allegany Police Department conducted the investigation that led to the prosecution of McMichael.
Marshall County man pleads guilty to unlawful possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Christopher L. Wright, 37, of Glen Easton, West Virginia, was convicted for unlawful possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Martin, who had previously been convicted of a felony offense in Marshall County, is prohibited from possessing a firearm. He admitted to possessing a 9mm pistol in July 2016.
Martin pled guilty to one count of “Unlawful Possession of a Firearm.” He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Moundsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.