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Tuesday 24 January 2017
Fort Worth Woman Convicted of Forced Labor and Harboring Illegal Aliens Sentenced to 72 Months in Federal PrisonRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, woman, who, following a one-week trial last year, before U.S. District Judge Reed C. O’Connor, was convicted on all four counts of an indictment charging federal felony offenses related to her harboring two women she illegally brought into the U.S. from Mexico and forcing them, with threat of serious harm and physical restraint, to work for her without pay, was sentenced yesterday, announced U.S. Attorney John Parker of the Northern District of Texas.
Olga Sandra Murra, 64, was sentenced to 72 months in federal prison and ordered to pay a total of $795,000 in restitution to her two victims. Murra has been in federal custody since her conviction in August 2016 on two counts of forced labor and two counts of harboring an illegal alien.
From her birth in 1952 to 1997, Murra lived in Mexico. In 1997, Murra, her immediate family, and several other individuals she brought with her, including V.R., an adult female in her 30’s, moved to El Paso, Texas, and then later to Fort Worth. In 1998, Murra arranged for I.G., an adult female in her 20’s, to be transported into the U.S. Both V.R. and I.G. are Mexican citizens and both entered and remained in the U.S. illegally.
From September 1997 to April 29, 2011, Murra kept one or both of the women at her various residences in El Paso and Fort Worth and maintained possession of their identification documents.
In both El Paso and Fort Worth, Murra operated a house-cleaning business. She directed both V.R. and I.G. to work for her business, and both cleaned three to four homes per day up to seven days per week. In addition, the women cleaned Murra’s residence and prepared meals for her. Murra, however, did not pay either woman for this work. In fact, Murra required the two women give her all of the money they earned cleaning houses.
Murra represented herself to the women as the voice of God on earth, and required them to listen to religious recordings of Murra reading Bible verses and discussing their meaning while they cleaned homes. She caused both women to believe they would go to hell if they did not obey her. Murra threatened at least one of the women that if she disobeyed her, she would contact immigration and the woman would be buried in a field with other illegal aliens. Murra also struck at least one of the women.
Murra also restricted the women’s freedom within her house, requiring at times they ask for permission to go to the bathroom. Murra also prohibited them from talking to other individuals living at the residence. Generally, the women slept on the floor of a bedroom in the residence, but when she punished them, Murra required them to sleep in the garage, laundry room or backyard and restricted their food to bread and water.
In 2001, Murra provided I.G. with false identification documents and directed I.G. to work at McDonald’s and Walmart, in addition to working for her house-cleaning business. I.G. worked for approximately one year at McDonald’s in 2001 and at Walmart for approximately six months in 2003. Murra required I.G. to give all the checks she received to her, not allowing I.G. to keep any of the money she earned.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI). Special Assistant U.S. Attorney Michelle Allen-McCoy and Assistant U.S. Attorney Andrew Wirmani prosecuted the case.
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Former Paramedic Charged in 37-Count Indictment with Wire Fraud, Making False Statements and Identity Theft Regarding the Theft of Controlled SubstancesRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced the unsealing of a 37 count indictment against Jason Laut, 39, of O’Fallon, Illinois. The indictment was returned by a federal grand jury in East St. Louis, Illinois on January 18, 2017. Laut who was arrested by the FBI, was arraigned today in East St. Louis, Illinois, on six counts of wire fraud, 29 counts of making false statements and two counts of identity theft.
The indictment returned by the grand jury alleges that Laut, who was a paramedic supervisor for MedStar Ambulance, changed, altered, and falsified documents and records, between January of 2013 and May of 2015 to conceal the theft of Fentanyl and Morphine. Both Fentanyl and Morphine are addictive Schedule II controlled pain killers. The indictment alleged that the theft of these controlled substances was from narcotic boxes that are maintained on ambulances in order to render aid to injured individuals consistent with operating procedures approved by a medical director or hospital orders.
Counts 1 through 6 of the indictment allege a wire fraud scheme claiming that Laut, using his administrator access for MedStar Ambulance, altered records stored outside of Illinois, known as patient care reports, to falsely indicate that controlled substances were given to patients when they were not. The theft of these drugs and acts to conceal the theft caused a loss to Memorial Hospital who was responsible, at their own cost, for keeping ambulance narcotic boxes filled.
Counts 7 through 35 of the indictment allege that Laut made false statements on narcotics logs submitted to Memorial Hospital. Narcotics logs are used by paramedics to record the circumstances of the administering of drugs including Fentanyl and Morphine while treating patients. The indictment alleges that Laut claimed to have given Fentanyl and Morphine to patients
that did not exist (phantom patients) or to patients that did not receive Fentanyl or Morphine.
Counts 36 and 37 allege that Laut concealed his theft of Fentanyl and Morphine by utilizing the name of a former doctor at Memorial Hospital on a narcotics log as authorization for the administering of Fentanyl and Morphine, when none was actually administered.
Wire fraud as charged in Counts 1 through 6 each carry a possible penalty of up to 20 years of imprisonment, a fine of up to $250,00, followed by up to 3 years of supervised release.
False statements as alleged in Counts 7-35 each carry a possible penalty of up to 5 years of imprisonment, a fine of up to $250,00, followed by up to 3 years of supervised release.
Aggravated identity theft as alleged in Counts 36 and 37 each carry a mandatory 2 years of imprisonment consecutive to any other sentence, a fine of up to $250,000, followed by one year of supervised release.
Trial has been set in the United States District Court in East St. Louis on March 27, 2017.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Federal Bureau of Investigation, the Sparta, Illinois Police Department and Diversion Investigators of the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
MedStar Ambulance of Sparta, Illinois, and Memorial Hospital participated in the investigation.
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Former Northern California Man Sentenced to 6 Years in Prison for Conspiracy to Grow and Distribute MarijuanaRead the Press Release
SACRAMENTO, Calif. — Yan Ebyam, 39, of Missoula, Montana, was sentenced today by U.S. District Judge John A. Mendez to six years in prison for two separate conspiracies to grow and distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Ebyam conspired with others to develop two industrial‑sized marijuana cultivation sites in Sutter County and Sacramento. Ebyam and his co‑conspirators sought to make profits from the illegal distribution of large amounts of marijuana. On June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Ten defendants were charged in these two cases, and all have now pleaded guilty to participation in the conspiracies and have been sentenced to prison.
These cases were the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt and Todd A. Pickles prosecuted the cases.
Former New York Return Preparer Pleads Guilty to Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
Caused Tax Loss of More Than $250,000
A former Queens, New York return preparer pleaded guilty today in the U.S. District Court for the Eastern District of New York to aiding and assisting in the preparation of false income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
“As we enter filing season, today’s plea should remind tax return preparers across the country that there are significant consequences for willfully preparing and filing false income tax returns,” said Acting Deputy Assistant Attorney General Goldberg. “Preparers who seek to attract business and increase their profits by stealing from the U.S. Treasury through the filing of false returns will be investigated and prosecuted.”
According to documents filed with the court, from in or about 2004 through 2014, Vanya Thompson, 39, ran a tax return preparation business, which operated under a number of names, including Lyn Services, Ricardo Multi-Service and Katie’s Multi-Service. To generate larger refunds for her clients, Thompson falsified items on their returns such as charitable deductions and business income, expenses, and losses, causing a tax loss of more than $250,000.Sentencing is scheduled for June 2. Thompson faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties. Thompson also agreed to an order prohibiting her from preparing tax returns on behalf of others.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Brittney Campbell and Jason Scheff of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Marin County Resident Convicted for Using Prisoner Identities and Filing Fraudulent Tax ReturnsRead the Press Release
SAN FRANCISCO – Howard Webber, a former resident of Marin County, Calif., was convicted today by a federal jury for conspiring to use identities of others and file fraudulent income tax returns, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The verdict follows a two-week trial before the Honorable Richard Seeborg, U.S. District Judge.
According to the evidence presented at trial, from June 2010 through January 2012, Webber, 52, conspired with Clifford Bercovich, 69, of San Rafael, Calif., to obtain the names and social security numbers of fellow inmates while Webber was incarcerated at various prisons and jails, including San Quentin State Prison and Santa Clara County jail in California, and the Milwaukee Secure Detention Facility in Milwaukee, Wisconsin.
Webber convinced inmates to give their names and social security numbers by explaining that they could help inmates take advantage of government programs. Webber recruited certain inmates to help solicit the identities of other inmates, and created a limited-liability company, Inmate Assets Recovery and Liquidation Services LLC, to make their scheme appear legitimate. Webber and Bercovich then used these identities to file false federal income tax returns with the Internal Revenue Service (IRS). The returns falsely represented that the inmates earned wages or other income and fraudulently claimed refunds. Webber and Bercovich opened a post office box, which they listed as the taxpayer address on each false return and used it to receive the fraudulently obtained refund checks. In some cases, they also directed that the refunds be wired to bank accounts that they opened and controlled. According to the evidence presented at trial, Webber and Bercovich filed more than 700 false returns and received over $600,000 in fraudulently obtained income tax refunds.
“Today’s guilty verdict brings a just end to Mr. Webber’s scheme to defraud the United States,” said U.S. Attorney Stretch. “This office will continue to devote its resources to ensure that those who enrich themselves by using the identities of others and filing false tax returns are apprehended and prosecuted.”
“As the IRS filing season begins this week, today’s conviction sends a clear message to those contemplating stealing identities and using the information to obtain fraudulent refunds – plan on getting caught and facing significant jail time,” said Acting Deputy Assistant Attorney General Goldberg.
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law,” said Tyrone W. Blanchette, Internal Revenue Service, Criminal Investigation, Assistant Special Agent in Charge. “However, no one is entitled to defraud the United States and the American Taxpayers. Today’s guilty verdict should send a clear message that those involved in these types of schemes will be held accountable for their crimes.”
Webber is scheduled to be sentenced by Judge Seeborg on May 16, 2017. Webber faces a statutory maximum sentence of 20 years in prison for mail fraud and conspiracy to commit mail and wire fraud. Further, Webber faces a mandatory minimum of two years in prison for aggravated identity theft. An additional period of supervised release, restitution, and monetary penalties also may be imposed; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Bercovich pleaded guilty in December 2016 to conspiracy, mail fraud and aggravated identity theft. He is scheduled to be sentenced by Judge Seeborg on April 11, 2017.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney William Frentzen and Trial Attorneys Gregory Bernstein and Arthur J. Ewenczyk of the Tax Division, who are prosecuting the case.
Former Bank Officer Indicted on Mortgage Fraud ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Ross D. Pickard (63, Naples) with one count of conspiracy and three counts of loan and credit application fraud. If convicted, he faces up to 5 years in federal prison for the conspiracy count and up to 30 years on each of the fraud counts. The indictment also notifies him that the United States is seeking a money judgment for the proceeds of the charged criminal conduct.
According to the indictment, Pickard was a senior loan officer at JP Morgan Chase Bank. He conspired with others in a scheme to defraud the bank by completing, certifying, and submitting mortgage loan applications on behalf of borrowers that contained false and fraudulent statements. The false statements included, but were not limited to, false occupancy, overinflated income and assets, as well as the understated liabilities. By relying on Pickard’s false and fraudulent statements on the loan applications, JP Morgan Chase was induced into funding mortgage loans for otherwise unqualified borrowers.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service – Criminal Investigations Division. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
Folsom Man Charged One Count of Theft of Government FundsRead the Press Release
Abdulai Kamara, 47, of Folsom, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received Social Security benefits intended for his deceased paramour, after her death in May 2012 until June 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $47,992.30.
If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $47,992.30, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal jury finds Texas man guilty of methamphetamine charges after Lincoln Parish traffic stopRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found a Texas man guilty last week of transporting methamphetamine for later sale.
Brian Manuel Garcia, 27, of Welaco, Texas, was found guilty Thursday, January 19, 2017 of one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. After the conclusion of the three-day trial, the jury deliberated for two hours before delivering the guilty verdict. United States District Judge S. Maurice Hicks Jr. presided over the trial.
According to the evidence presented, a Lincoln Parish Sheriff’s deputy stopped a speeding vehicle on Interstate 20 carrying Garcia and Alberto Trevino, 34, also from Welaco, Texas, on July 5, 2016. The deputy searched the vehicle and found marijuana and a beer box in the trunk. Inside the box were four plastic bags containing 4,027 grams of methamphetamine. Trevino later admitted they were traveling to Mississippi to deliver drugs to a buyer.
Garcia faces at least 10 years to life in prison for both counts. Garcia’s sentencing is set for April 20, 2017. Trevino pleaded guilty on December 20, 2016 to conspiracy. Trevino’s sentencing was set for March 16, 2017. They also face five years of supervised release and a $10 million fine.
The DEA and the Lincoln Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jonathan S. Drucker and Allison D. Bushnell are prosecuting the case.
Fall River Man Sentenced for Escape from Federal FacilityRead the Press Release
BOSTON – A federal inmate was sentenced today in U.S. District Court in Boston in connection with escaping from the Coolidge House Residential Reentry Center in Boston.
Jason Barreto, 30, was sentenced by U.S. District Court Judge Richard G. Stearns to one year and one day in prison. In August 2016, he pleaded guilty to one count of escape from a federal custody.
In September 2011, Barreto was convicted in U.S. District Court in Rhode Island of conspiracy to distribute oxycodone and was sentenced to 70 months in prison. On May 21, 2015, Barreto was transferred from the U.S. Penitentiary Big Sandy in Kentucky to Coolidge House Residential Reentry Center in Boston to serve the remainder of his sentence. Barreto was scheduled to be released on Nov. 1, 2015.
On Sept. 17, 2015, following an incident at Coolidge House, Barreto walked out of the facility without authorization and did not return. On April 8, 2016, after receiving information regarding Barreto’s location, the U.S. Marshal Service arrested Barreto in Atlantic City, New Jersey.
Acting United States Attorney William D. Weinreb and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
El Salvadoran Man Sentenced for Hindering His Removal from the United States and Assaulting Federal Law Enforcement OfficersRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jose Luis Benitez-Hernandez, age 30, an El Salvadoran national, was sentenced to 14 months’ imprisonment by United States District Court Judge William W. Caldwell for hindering his removal from the United States and assaulting law enforcement officers.
According to United States Attorney Bruce D. Brandler, Benitez-Hernandez was convicted on September 15, 2017, of hindering his removal from the United States and assaulting law enforcement officers following a two-day trial. The charges stemmed from an incident in February 2016, in which Immigration and Customs Enforcement (ICE) Officers located Benitez-Hernandez in Mechanicsburg, Pennsylvania after he failed to leave the United States in accordance with an Immigration Judge’s order.
After identifying Benitez-Hernandez leaving his home in a vehicle, the officers activated their emergency equipment in their vehicles. Benitez-Hernandez failed to stop, charged at one of the vehicles repeatedly, ultimately bumping the front bumper of one of the ICE vehicles. Benitez-Hernandez then refused to exit his vehicle and had to be forcibly removed. Before ultimately being apprehended, Benitez-Hernandez bit one of the ICE Officers and scratched another.
The investigation was conducted by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorneys Scott Ford and Daryl Bloom prosecuted the case.
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El Paso Man Sentenced to Federal Prison for Human Sex TraffickingRead the Press Release
In El Paso today, a federal judge sentenced 29–year-old David Milner of El Paso to 15 years in federal prison for implementing a human sex trafficking scheme announced United States Attorney Richard L. Durbin, Jr.; Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division; and, FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
United States District Judge Frank Montalvo also ordered that Milner be placed on supervised release for a period of five years after completing his prison term.
On August 9, 2016, Milner pleaded guilty to one count of conspiracy to sex traffic persons. By pleading guilty, Milner admitted that from September 2013 to August 2015, he conspired to coerce, entice and recruit women—including a 16-year-old female—to engage in commercial sex acts for his financial gain. Milner admitted to posting information on Backpage.com advertising the minor and other females for commercial sex.
“This sentence sends a clear message about how seriously HSI and its law enforcement partners take human trafficking cases,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI will continue to employ its ample law enforcement authorities to eradicate sex trafficking. Our hope is that it will also serve to encourage trafficking victims to come forward to help law enforcement hold these traffickers accountable, and protect other potential victims of human trafficking.”
“The El Paso FBI is committed to aggressively investigating all federal crimes involving the exploitation and victimization of children. This sentence was the result of significant teamwork,” stated FBI Special Agent in Charge Douglas E. Lindquist.
This case resulted from an investigation conducted by the HSI and the FBI with assistance from the El Paso Police Department—Gang Unit and the El Paso County Juvenile Probation Department. Assistant United States Attorneys Rifian Newaz and Patricia Acosta prosecuted this case on behalf of the Government.
El Dorado County Man Sentenced for Attack on Park RangerRead the Press Release
SACRAMENTO, Calif. — Nicholas Martin Coberley, 45, of Pollock Pines, was sentenced today by U.S. District Judge John A. Mendez to 27 months in prison, to be followed by three years of supervised release for assault on a federal employee with a deadly weapon, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 20, 2016, Coberley attacked a Lassen Volcanic National Park ranger who had been called out to investigate reports of a man walking in the middle of the road at 9:00 p.m., yelling loudly. When the ranger approached, Coberley jumped into the back of the ranger’s truck, grabbed a firefighting tool, and began hitting the truck’s passenger compartment with the tool, causing more than $2,000 in damage to the roof and windshield. Moments later, Coberley smashed out the rear window with an axe, climbed into the passenger compartment, and put the ranger in a chokehold. At that point, Coberley swung an axe at the ranger’s head from behind while the truck was in motion. The ranger was able to speak calmly with Coberley and defused the situation. Coberley returned to his residence near the park’s boundary and was arrested later without incident.
This case was the product of an investigation by the National Parks Service and the Plumas County District Attorney's Office with assistance from the Plumas County Sheriff’s Office and the California Highway Patrol.
Lassen Volcanic National Park Chief Ranger John Fish stated: “The National Park Service would like to thank the U.S. Attorney’s Office and Plumas County District Attorney’s Office for their support in the successful prosecution of Mr. Coberly. Visitor and employee safety is of paramount importance to the National Park Service. We would further like to thank the Plumas County Sheriff’s Office and the CHP in helping resolve the situation with no injuries of significance to park visitors or our employee.”
Easton Man Pleads Guilty to Defrauding Distressed Homeowners, Evading TaxesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY W. BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 65, formerly of Easton, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to fraud and tax evasion offenses stemming from a long-running fraud scheme that targeted distressed homeowners.
According to court documents and statements made in court, between approximately 2010 and November 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.
BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
BURKE undertook extensive efforts to disguise his true identity, and hide his criminal past, from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE has been associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates.
In addition, between 1994 and 2012, BURKE evaded paying approximately $403,726 in federal taxes.
In 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to 60 months in prison, followed by three years of supervised release. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry. Based on his motion for early termination of his supervised release, the New Jersey federal court terminated his supervised release approximately one year early in August 2009.
Today, BURKE pleaded guilty to one count of mail fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. Judge Shea scheduled sentencing for April 18, 2017.
BURKE has been detained since his arrest on November 19, 2015.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Sarah P. Karwan.
Drug Trafficker with Ties to Mexican Drug Cartel Sentenced to 27 YearsRead the Press Release
NORFOLK, Va. – Deric Jevon Twitty, 38, of Portsmouth, was sentenced today to 324 months in prison for his role in a multi-year conspiracy to distribute heroin, cocaine, and marijuana up and down the east coast. Twitty was also sentenced to 10 years of supervised release and ordered to forfeit $3.37 million, which represents the proceeds of the offense.
Twitty pleaded guilty on July 12, 2016. According to court documents, he was involved with a Mexican drug cartel and operated an extensive drug operation over the course of two years that distributed wholesale amounts of heroin, marijuana, and cocaine up and down the east coast including cities like Philadelphia, New York City, Charlotte, and all throughout Hampton Roads. He used at least two co-conspirators to insulate himself from the risks associated with narcotics trafficking. One co-conspirator, working on behalf of Twitty, made nearly $300,000 in cash deposits into 22 accounts in just six months. These accounts, some of which originated in Metamoros, and Nogales, Mexico were often emptied within 24 hours of receiving the funds.
Special agents from the DEA arrested the defendant on May 3, 2016, and recovered 2.6 kilograms of methamphetamine, over a quarter kilogram of heroin and marijuana, a stolen Glock 21 semi-automatic firearm, several cellular telephones, a money counter, and $18,745 in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge of the DEA Washington Field Division, made the announcement after sentencing by U.S. District Chief Judge Rebecca Beach Smith. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler prosecuted the case.
U.S. Attorney Boente thanks the Portsmouth Police Department for their assistance in the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-79.
Del City Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BOBBY LEE RUPPEL JR, age 37, of Del City, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both.
The Indictment alleged that on or about November 1, 2016, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Henryetta Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Kristin Harrington represented the United States.
Cross Lanes man pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man who sold drugs while on federal supervised release pleaded guilty today to a heroin charge, announced United States Attorney Carol Casto. Darrell Spicer, 60, entered his guilty plea to possession with intent to distribute heroin.
Spicer admitted that on June 15, 2016, he sold what he believed to be heroin to a confidential informant working with the Kanawha County Sheriff’s Department. Based on the controlled drug buy, a detective from the Sheriff’s Tactical Operations Patrol (STOP) Team obtained a search warrant for Spicer’s residence in Cross Lanes. While searching Spicer’s residence, officers discovered heroin and over $7,000 in cash, which included pre-recorded buy money used in the controlled purchase. Spicer was present during the search and admitted that the drugs belonged to him and that the money was from illegal drug activity.
Spicer faces up to 20 years in federal prison when he is sentenced on April 25, 2017.
The Kanawha County Sheriff’s Department’s STOP Team conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case 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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Company Convicted of OSHA Violation That Caused Worker's Death at KC JobsiteRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Pacific, Mo., company has been found guilty of violating an OSHA regulation and causing the death of a Raymore, Mo., ironworker.
DNRB, Inc., doing business as Fastrack Erectors, located in Pacific, was found guilty following a bench trial that concluded on Aug. 17, 2016, before U.S. Chief District Judge Greg Kays, whose order setting out the findings of fact and conclusions of law was issued on Friday, Jan. 20, 2017.
“The court found that Fastrack was aware of safety violations but willfully ignored them, with tragic results,” Dickinson said. “Federal law requires employers to protect their workers from workplace hazards in order to prevent needless injuries and deaths. Employers will be held accountable when they fail in that responsibility.”
In July 2014, Fastrack was a subcontractor in the construction of a 300,000-square-foot distribution warehouse located in Kansas City, Mo. Fastrack is an American Institute of Steel Construction-certified steel erection company that specializes in structural steel, miscellaneous steel, pre-engineered metal buildings, ornamental metal handrail, and precast installation. Fastrack supplied on-site supervisors (who are based in the St. Louis, Mo., area) while the ironworkers were hired from the union local in Kansas City, Mo.
On July 24, 2014, two Fastrack ironworker employees were receiving a bundle of roof decking sheet metal and setting it on top of the building’s bar joists. The employees’ task required them to guide the decking bundle to land it. Each decking bundle was 26 feet long by 36 inches wide. The employees accessed the top of the building from a scissor lift and walked approximately 15 feet along a joist without wearing any fall protection. They walked on trusses that were nine inches wide, or bar joists which were five inches wide. Other ironworkers secured the decking to the trusses with screws and welds. These workers did not use fall protection.
Eric Roach, 22, one of the employees landing the decking, fell approximately 30 feet to the ground and was transported to a local hospital where he died the following day.
Fastrack was a subcontractor to ARCO National Construction-KC, Inc. According to court documents, the contract between ARCO and Fastrack required that Fastrack “personnel who are working or present at heights in excess of 6 feet shall be provided, by (Fastrack) adequate fall protection.” Fastrack failed to enforce the use of fall protection.
No fall protection equipment was provided by the company. Both working foremen on the site were told, or questioned, about the lack of fall protection equipment and were in a position to personally observe employees failing to use fall protection equipment. At least one of the foremen was working on the decking in the immediate area of the employees; he failed to wear fall protection himself and failed to enforce the use of fall protection by the employees.
Federal statutes require that each employee engaged in a steel erection activity who is on a walking/working surface with an unprotected side or edge more than 15 feet above a lower level shall be protected from fall hazards by guardrail systems, safety net systems, personal fall arrest systems, positioning device systems or fall restraint systems.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker and Special Assistant U.S. Attorneys Evert Van Wijk and Rachel Parsons, both of the Department of Labor – Office of Solicitor. It was investigated by the Occupational Safety and Health Administration.
California Man Convicted for Stealing Prisoner Identities and Filing Fraudulent Tax ReturnsRead the Press Release
A Marin County, California man was convicted today by a federal jury in the Northern District of California of identity theft and conspiring to file fraudulent income tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Brian J. Stretch for the Northern District of California.
“As the IRS filing season begins this week, today’s conviction sends a clear message to those contemplating stealing identities and using the information to obtain fraudulent refunds – plan on getting caught and facing significant jail time,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg.
“Today’s guilty verdict brings a just end to Mr. Webber’s scheme to defraud the United States,” said U.S. Attorney Stretch. “This office will continue to devote its resources to ensure that those who enrich themselves by using the identities of others and filing false tax returns are apprehended and prosecuted.”
According to the evidence presented at the two week trial, from June 2010 through January 2012, Howard Webber, 52, conspired with Clifford Bercovich to obtain the names and social security numbers of fellow inmates while Webber was incarcerated at various prisons and jails, including San Quentin State Prison and Santa Clara County jail in California, and the Milwaukee Secure Detention Facility in Milwaukee, Wisconsin.
Webber and Bercovich convinced inmates to give them their names and social security numbers by explaining that they could help the inmates take advantage of government stimulus programs or secret tax loopholes. Webber and Bercovich recruited certain inmates to help them solicit the identities of other inmates, and created a limited-liability company, Inmate Assets Recovery and Liquidation Services LLC, to make their scheme appear legitimate.
Webber and Bercovich then used these identities to file false federal income tax returns with the Internal Revenue Service (IRS). The returns falsely represented that the individuals earned wages or other income and fraudulently claimed refunds. Webber and Bercovich opened a post office box, which they listed as the taxpayer address on each false return and used to receive the fraudulently obtained refund checks. In some cases, they also directed that the refunds be wired to bank accounts, which they opened and controlled. According to the evidence presented at trial, Webber and Bercovich filed more than 700 false returns and received over $600,000 in fraudulently obtained income tax refunds.
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law,” said Assistant Special Agent in Charge Tyrone W. Blanchette of IRS Criminal Investigation (CI). “However, no one is entitled to defraud the United States and the American taxpayers. Today’s guilty verdict should send a clear message that those involved in these types of schemes will be held accountable for their crimes.”
Webber is scheduled to be sentenced on May 16 before U.S. District Court Judge Richard Seeborg. Webber faces a statutory maximum sentence of 20 years in prison for conspiracy to commit mail and wire fraud and mail fraud and a mandatory minimum of two years in prison for aggravated identity theft, as well as a period of supervised release, restitution and monetary penalties. Bercovich pleaded guilty in December 2016 to conspiracy, mail fraud and aggravated identity theft. He is scheduled to be sentenced on April 11.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Stretch thanked special agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorney William Frentzen and Trial Attorneys Gregory Bernstein and Arthur J. Ewenczyk of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Brothers sentenced to 10 months in prison for flying unregistered plane, transporting marijuana for saleRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that two brothers from Alabama were sentenced last week to 10 months in prison for flying an unregistered plane loaded with marijuana.
George Bancroft Marshall, 39, and John Samuel Marshall IV, 42, both of Gulf Shores, Ala., were sentenced Wednesday, January 18, 2017 by U.S. District Judge Dee D. Drell. George Marshall was sentenced to 10 months in prison on one count of operation of an unregistered aircraft, and John Marshall was sentenced to 10 months in prison on one count of possession with intent to distribute marijuana. They must also forfeit the plane seized during the investigation and serve more than two years of supervised release. According to the guilty pleas, law enforcement agents searched a 1966 Mooney M20E aircraft on February 11, 2015 at the Alexandria Airport. George Marshall had been piloting the plane and was transporting his brother John Marshall from California to Alabama. They had stopped in Alexandria overnight to fuel. Law enforcement found 19 vacuum sealed packages of marijuana weighing approximately 34.9 pounds. They also located 10 vacuum sealed packages of hash oil weighing approximately 20.9 ounces. George Marshall later admitted that he worked as a commercial pilot, had purchased the airplane in January of 2015 in Arkansas for $30,000 and did not complete the registration for the plane.
Homeland Security Investigations, U.S. Customs and Border Protection-New Orleans Air and Marine Branch, and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
Boise Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
BOISE – Travis L. Spradlin, 37, of Boise pleaded guilty today in United States District Court to receipt of child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, in September of 2015, agents with Homeland Security Investigations (HSI) received information that an individual using a Yahoo account from a residence in Boise had sent and received images of child pornography via e-mail and had accessed a Russian photo-sharing website to obtain child pornography. HSI agents served a search warrant at the residence where Spradlin lived. They seized a cell phone, a computer, and an external hard drive, all belonging to Spradlin.
A certified forensic examiner with HSI examined the electronic devices, and discovered over 6,000 images and 200 videos containing child pornography. The National Center for Missing and Exploited Children (NCMEC) subsequently identified 1,759 images and 70 videos as containing identifiable victims of sexual abuse, including victims from at least 150 known series of child pornography. The images included prepubescent minors and depictions of sadistic and masochistic conduct.
The examination of Spradlin’s cell phone also revealed evidence that he had communicated with at least two minor females from other states, and requested sexually explicit images from them. Agents discovered Spradlin received 274 images and 29 videos from one of the minors that depicted the minor engaged in sexually explicit conduct.
Sentencing is set for April 13, 2017, before visiting U.S. District Judge Dee V. Benson from the District of Utah.
Receipt of child pornography is punishable by not less than 5 years imprisonment and up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $5,100 special assessment.
The case was investigated by Homeland Security Investigations. The 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.”
Bank Founder Sentenced to PrisonRead the Press Release
PHILADELPHIA – Barry R. Bekkedam, 49, of Hobe Sound, FL, was sentenced today by U.S. District Court Judge C. Darnell Jones, II, to 11 months in prison and was ordered to pay a $100,000 fine for his role in a fraud conspiracy to obtain $13.5 million in public funds for NOVA Bank. On April 27, 2016, Bekkedam and co-defendant Brian Hartline were found guilty of conspiracy to defraud the United States, TARP fraud, and two counts of false statements to the federal government. Hartline had served as President and Chief Executive Officer of NOVA Bank and Bekkedam had served as Board Chairman. Their scheme involved the Troubled Asset Relief Program (TARP) and was devised to defraud the government of more than $13 million.
“Lending drives economic growth and law enforcement plays an important role in protecting banks’ ability to lend by removing criminals from their ranks,” said Christy Goldsmith Romero, Special Inspector General for TARP. “TARP is intended for healthy banks. NOVA was not a healthy bank. As NOVA’s founder, Bekkadam wielded enormous influence over the bank, allowing him to orchestrate a conspiracy with its CEO to cook the bank’s books to make it appear that the bank had healthy capital levels. SIGTARP stands united with the United States Attorney’s Office in combatting fraud in banks.”
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raised $15 million in additional, private capital.
Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being invested in the bank. As part of the scheme, the defendants arranged for NOVA Bank to loan money to three individuals to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. In fact, the “new money” investment was the bank’s own money.
The bank ultimately did not receive TARP funds, and in October 2012, the bank failed and was closed by state and federal banking regulators.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Investigations, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorney David J. Ignall
Monday 23 January 2017
Woman Pleads Guilty in Murder-for-Hire of Ex-HusbandRead the Press Release
EUGENE, Ore. – On Monday, January 23, 2017, Pamela Jean Gygi, 58, of Westlake, Oregon, pleaded guilty to the use of interstate commerce facilities in the commission of a murder for hire and possession of a firearm in furtherance of a crime of violence before U.S. District Court Judge Ann Aiken. Gygi faces a maximum sentence of 15 years in prison and three years of supervised release.
According to court documents, in May 2015, Gygi attempted to end a property dispute with her divorced husband and collect on his $150,000 life insurance policy by hiring a hitman to murder him. Instead of carrying out the crime, the hitman traveled across state lines to warn the ex-husband of the plot. The ex-husband, in turn, notified police.
Meanwhile, Gygi continued plotting the murder and gathering the necessary supplies. On July 10, 2015, she drove to Springfield, Oregon with a pistol, ammunition, cash and a vehicle to be used by the hitman to travel to the ex-husband’s home. An FBI video recording shows Gygi meeting the hitman in a mall parking lot to deliver the supplies and vehicle.
Gygi instructed the hitman to make the murder look as though it were the result of a home invasion robbery and, as part of the deal, told him to steal her ex-husband’s rifle. Gygi left the meeting after confirming that she would secure an alibi witness. She was then stopped by a Springfield police officer and arrested by the FBI.
The case was prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon, and investigated by the FBI and the Springfield, Oregon, and Saratoga Springs, Utah Police Departments.
Winnebago Men Sentenced for Assault with a Dangerous Weapon and Use of a Firearm During a Crime of ViolenceRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 23, 2017, the Honorable Laurie Smith Camp, Chief Judge of the United States District Court for the District of Nebraska, sentenced Anthony Whitewater, 24, and Marcus Blackhawk, 27, to the custody of the U.S. Bureau of Prisons after they were found guilty by a federal jury of assault with a dangerous weapon and use of a firearm during a crime of violence. Whitewater was sentenced to a total of 241 months in prison. Blackhawk was sentenced to a total of 121 months in prison. Both are enrolled members of the Winnebago Tribe of Nebraska.
In the early morning hours of May 2, 2016, Whitewater attended a party at a residence in Winnebago, Nebraska. While at the party, Whitewater became involved in a conflict with another person. The conflict resulted in Whitewater being punched in the face and receiving a bloody nose. Whitewater was kicked out of the party and vowed to return. Believing that the person with whom he had had the conflict was traveling in a vehicle leaving the party, Whitewater, while being driven in a vehicle operated by his brother, Marcus Blackhawk, began a high-speed chase of the other vehicle while shooting at the occupants of that vehicle. The fleeing vehicle was hit by Whitewater’s weapon seven times. Fortunately, neither of the occupants of the fleeing vehicle were hit. As it turns out, the people in the vehicle were not involved in the earlier altercation. Whitewater was also prohibited from possessing firearms as a consequence of prior felony convictions.
This case was investigated by the Federal Bureau of Investigation.
Waukee Man Sentenced to Prison and Ordered to Pay $321,927 in RestitutionRead the Press Release
DES MOINES, IA – On January 20, 2017, Donald Lynn Embree, 55, of Waukee, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 15 months in prison for three counts of false statements for the overvaluation of securities, announced United States Attorney Kevin E. VanderSchel. Embree was ordered to serve three years of supervised release following his prison term, pay $300 to the Crime Victims’ Fund, and pay a total of $321,927.13 to the United States Department of Agriculture (USDA) Farm Service Agency (FSA) as restitution.
Embree pleaded guilty to these charges on September 22, 2016. According to the plea agreement, Embree obtained three loans from the Commodity Credit Corporation in March of 2015 by falsely certifying the existence of collateral. The Commodity Credit Corporation is an agency within the USDA that makes agricultural loans, which are administered by the FSA. Embree’s grain, bushels of corn and soybeans, served as collateral for these loans.
Embree certified the bushels of grain were eligible to be pledged as collateral for the loans, that the quantity was in existence and stored in bins on his property, and that he retained control of the grain. However, Embree had sold much of the grain prior to March of 2015, and did not have the collateral to pledge to the Corporation.
This matter was investigated by the United States Department of Agriculture Office of Inspector General and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by contacting Rachel Scherle at 515-473-9300 or by emailing her at [email protected]
Washington River Protection Solutions Agrees to Pay $5.275 Million to Settle False Overtime and Premium Pay AllegationsRead the Press Release
Washington River Protection Solutions LLC (WRPS) has agreed to pay the United States $5.275 million to settle allegations that WRPS knowingly submitted false claims to the Department of Energy (DOE) for overtime and premium pay and also failed to comply with the contract’s internal audit requirements. The contract was performed at DOE’s Hanford Site near Richland, Washington.
“The monies utilized by DOE to fund important nuclear site environmental remediation across the nation are both precious and limited,” said Deputy Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue contractors that knowingly divert those funds from the projects for which they were provided.”
Since 2008, WRPS has received millions of dollars from a prime contract with DOE to perform environmental cleanup and maintenance efforts at an area of DOE’s Hanford Nuclear Site known as the Tank Farms. The Tank Farms is a large area of the Hanford Site consisting of underground storage tanks that contain radioactive and hazardous waste from nuclear weapons production. The government alleged that, upon being awarded the Tank Farms Contract in October 2008, WRPS was advised by law enforcement of specific concerns about systemic timecard fraud being committed by the previous contractor at the Tank Farms, many of whose employees and procedures were retained by WRPS. WRPS allegedly made no actual changes to the timekeeping procedures at the Tank Farms for nearly five years and did not take steps, until after July 2013, to curtail the prior fraudulent practices. As a result, the government alleged that WRPS knowingly charged DOE for overtime for busy work or for work that was not actually performed and premium emergency call-in pay that was not authorized by the Tank Farms Contract.
The government also alleged that WRPS charged the government for auditing work that was not performed. WRPS allegedly installed as the head of the contractually required Internal Audit Department for the first three years of the Tank Farms contract its own general counsel, who allegedly had no auditing experience and failed to provide any meaningful oversight of the Audit Department. The government alleged that this knowing violation of an important safeguard in the contract enabled the extensive timecard fraud.
“This resolution demonstrates law enforcement’s continuing resolve in the Eastern District of Washington to hold fraudsters at all levels accountable,” said U.S. Attorney Michael C. Ormsby for the Eastern District of Washington. “In particular, the ongoing anti-fraud efforts at Hanford continue to be bolstered by the outstanding dedication of this office’s partners at the Department of Energy Office of Inspector General and at the Department of Justice Civil Frauds Section.”
“The Department of Energy Office of Inspector General is committed to ensuring the integrity of Departmental contracts and financial expenditures,” said Acting Inspector General April G. Stephenson. “We will continue to investigate allegations of fraudulent diversion of tax dollars throughout DOE programs. This settlement is a result of our staff’s dedicated work to ensure public funds are used for the mission-related purposes for which they are intended. We appreciate the support of Department of Justice attorneys in these matters.”
The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Eastern District of Washington, the Civil Division’s Commercial Litigation Branch and the U.S. Department of Energy, Office of the Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Violent Felon Pleads Guilty to Running Drug Ring from PrisonRead the Press Release
Brunswick, GA- Daniel Roger Alo, 46, pleaded guilty today in federal court before Chief U.S. District Court Judge Lisa Godbey Wood for his role in running a drug trafficking organization out of the Calhoun State Prison in Morgan, Georgia. Last September, a federal grand jury sitting in Savannah indicted Alo and 15 other defendants regarding a drug trafficking organization operating in Georgia, Tennessee, Virginia, and elsewhere.
According to evidence presented during his guilty plea hearing, while serving a sentence at the Calhoun State Prison on a kidnapping conviction, Alo formed a drug trafficking organization made up of gang members inside and outside of prison, including individuals from the Ghost Face Gangsters, the Bloods, the Gangster Disciples, and from individuals with ties to Mexican Cartels. Alo used drones to smuggle cellphones and other contraband inside the Calhoun State Prison. From prison, Alo used the cellphones to coordinate large drug deals. On the outside, members of the conspiracy distributed pounds of crystal meth throughout the Southeast. In 2015, law enforcement agents seized 10.9 pounds of meth, over 10 firearms, and over $600,000 from 5 of Alo’s coconspirators, following a sting operation in Brunswick, Georgia. Coconspirator and former Georgia Lottery winner Ronnie Music purchased meth with some of his $3 million in lottery winnings. Like Alo, Music now awaits sentencing. During their investigation, agents seized more than 15 firearms, several of which were stolen or had obliterated serial numbers; thousands of rounds of ammunition; over 15 pounds of crystal meth; over $600,000; multiple vehicles; and, two drones.
U.S. Attorney Edward Tarver said, “This defendant is an example of the enormous challenges that our law enforcement partners face in their fight against illegal drugs in our communities. Alo used readily available technology (drones and cell phones) to continue his substantial criminal behavior even while confined in a secure State prison. It is necessary and appropriate that his next stop be a federal prison.”
Alo faces 5 to 40 years in a federal prison as a result of his federal conviction. Alo will be sentenced after the U.S. Probation Office completes a presentence investigation.
The case was investigated by the ATF, the DEA, the FBI, the United States Marshal Service, the GBI, the Glynn-Brunswick Narcotics Enforcement Team, the Wayne County Sheriff’s Office, the Ware County Sheriff’s Office, the Glynn County Police Department, the Glynn County Sheriff’s Office, the Haralson-Paulding Drug Task Force and the Virginia State Police. Assistant United States Attorneys E. Greg Gilluly, Jr. and Tania D. Groover prosecuted the case on behalf of the United States. For questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Veteran Leader Takes the Helm of U.S. Attorney's OfficeRead the Press Release
GRAND RAPIDS, MICHIGAN — Andrew Byerly Birge assumed the duties of Acting U.S. Attorney by operation of law following U.S. Attorney Patrick Miles, Jr.’s resignation last Friday at noon.
Birge was serving until then as the First Assistant, the senior-most management position in the office. Birge held the First Assistant position for the last nine and a half years. U.S. Attorney Charles Gross first tapped him for the role in May of 2007, under then-President George W. Bush’s administration. U.S. Attorneys Donald A. Davis and Patrick Miles each subsequently asked him to continue serving in that capacity. A First Assistant functions as the chief advisor to the U.S. Attorney and oversees the office’s civil and criminal litigation as well as its administrative operations. Miles said of Birge: “I know I am leaving the office in good hands.” Miles described Birge as “extremely knowledgeable” and a person of “impeccable integrity.”
Birge has been with the U.S. Attorney’s Office for over sixteen years. Prior to assuming senior management responsibilities, he oversaw the office’s appellate practice and handled all manner of criminal cases. He began his legal career as a law clerk to the late Chief U.S. District Court Judge Richard A. Enslen, in Kalamazoo, Michigan. Prior to joining the U.S. Attorney’s Office, he was an Associate for several years with the law firm of Jenner & Block in Chicago, Illinois.
Birge expects to serve as the Acting U.S. Attorney until President Donald Trump nominates and the U.S. Senate confirms a successor U.S. Attorney. “I take great pride in undertaking this opportunity. This office has remarkably dedicated and talented attorneys and staff with an outstanding record of holding wrongdoers accountable and vindicating the interests of the United States. I plan to continue that tradition of excellence in the pursuit of justice.”
Birge obtained his law degree from the Columbia University School of Law, where he was a Harlan Fiske Stone Scholar. He obtained his Bachelor of Arts degree from Carleton College, where he graduated cum laude and with Distinction as a history major.
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Union City Secretary Used Borough Funds, Credit Card to Pay BillsRead the Press Release
ERIE, Pa. - A resident of Union City, Pennsylvania pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Cheryl R. Capela, 60, Union City, Pennsylvania, pleaded guilty to four counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from July 2013 through July 2016, while employed as the Borough Secretary for the Borough of Union City, Capela took advantage of her access to the Borough’s checks to write Borough checks to pay her ballooning personal credit card bills. She also used the Borough credit card for numerous personal expenses.
Judge Cercone scheduled sentencing for June 5, 2017. The law provides for a total sentence of 80 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Capela.
U.S. Intervenes in East Texas False Claims Act Lawsuit Alleging Kickbacks for Ambulance ServicesRead the Press Release
SHERMAN, Texas – The United States has filed a complaint intervening in an alleged kickback scheme in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
The United States filed a complaint today in partial intervention against East Texas Medical Center Regional Healthcare System, Inc., East Texas Medical Center Regional Health Services, Inc. (together, “ETMC”), Paramedics Plus, LLC, Emergency Medical Services Authority (“EMSA”), and EMSA’s President, Herbert Stephen Williamson (“Williamson”) alleging, among other things, violations of the False Claims Act and the Anti-Kickback Statute. A copy of the United States’ complaint can be found attached.
ETMC, one of East Texas’ largest health care systems, provides ambulance services outside of Texas through its for-profit subsidiary, Paramedics Plus. The United States’ complaint alleges that ETMC and Paramedics Plus entered into an illegal kickback scheme to obtain and retain a lucrative public ambulance services contract awarded by Williamson and EMSA, a public trust entity established under Oklahoma law. The United States alleges the defendants created a slush fund controlled by ETMC and Paramedics Plus that was used to pay over $20 million in kickbacks. The United States alleges the kickbacks and bribes ranged from cash payments (including at least $50,000 for Williamson’s personal benefit), political contributions, marketing expenses, and direct payments to EMSA’s contractors.
The lawsuit, United States ex rel. Dean v. Paramedics Plus, LLC, et al., 4:14-CV-203, was originally filed in 2014 in the U.S. District Court for the Eastern District of Texas by relator Stephen Dean. Dean was employed by Paramedics Plus as Chief Operating Officer overseeing the EMSA contract. Dean filed the action under the qui tam provisions of the False Claims Act, which permit private parties known as “relators” to sue on behalf of the United States and to receive a share of any recovery. Dean’s lawsuit includes allegations against additional defendants, including other municipal entities doing business with Paramedics Plus in California, Florida, and Indiana. The False Claims Act permits the Government to intervene in such a lawsuit, as it has done in a portion of Dean’s case.
“The law prohibits paying kickbacks, such as those alleged in this lawsuit, in order to gain access to Medicare and Medicaid funds,” said Acting U.S. Attorney Featherston. “Kickback schemes are anti-competitive, undermine the integrity of our nation’s health care programs, and wrongly prioritize profits over patient care.”
These matters were investigated by the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the states of California, Florida, Indiana, and Oklahoma.
Tips and complaints about potential fraud, waste, abuse, and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477) or to the United States Attorney’s Office for the Eastern District of Texas, at (972) 509-1201.
The claims asserted against the defendants are allegations only, and there has been no determination of liability.
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False Act Claims Lawsuit complaintU.S. District Court Blocks Aetna’s Acquisition of HumanaRead the Press Release
Merger Would Harm Seniors Relying on Medicare Advantage and Low-Income Families and Individuals Obtaining Insurance on Public Exchanges
Judge John D. Bates of the District Court for the District of Columbia issued a decision today that found in favor of the Justice Department in its civil antitrust lawsuit to block health insurer Aetna Inc.’s acquisition of rival insurer Humana Inc.
“Today’s decision is a victory for American consumers – especially seniors and working families and individuals,” said Deputy Assistant Attorney General Brent Snyder, who is currently heading the Justice Department’s Antitrust Division. “Competition spurs health insurers to offer higher quality and more affordable health insurance to seniors who choose Medicare Advantage plans and to low-income families and individuals who purchase insurance from public exchanges. This merger would have stifled competition and led to higher prices and lower quality health insurance. Aetna attempted to buy a formidable rival, Humana, instead of competing independently to win customers. Millions of consumers have benefited from competition between Aetna and Humana, and will continue to benefit because of today’s decision to block this merger.
“In concluding that Aetna’s acquisition of Humana would violate federal antitrust laws, the court has protected consumers and the competition on which they rely. I thank the hardworking staff of the Antitrust Division and our state partners who conducted a thorough investigation and offered a compelling trial presentation with determination and a deep commitment to preserving and protecting competition.
“The court’s decision will save customers and taxpayers up to $500 million per year. The Justice Department and our state partners brought this case because substantial evidence showed that direct competition between Aetna and Humana led the companies to offer more generous benefits at lower prices.”
Today’s decision follows a 13-day trial in December 2016. In July 2016, the Justice Department along with eight states and the District of Columbia sued to stop the merger. The complaint alleged that a combined Aetna and Humana would substantially reduce competition for the sale of Medicare Advantage – a form of Medicare coverage provided by private insurers –and health insurance to individuals through the public exchanges.
In blocking the transaction, the court ruled that the proposed merger is likely to substantially lessen competition in the sale of individual Medicare Advantage plans in 364 counties. The court ruled that the sale of Medicare Advantage is a relevant antitrust product market, meaning that competition among Medicare Advantage providers is protected by the antitrust laws. In addition, the court rejected Aetna and Humana’s claim that their proposal to divest 290,000 Medicare Advantage customers to Molina Healthcare, a health insurer, would prevent the competitive harm that the merger would produce. The court further found that Aetna withdrew from the individual public exchanges in three states to evade judicial scrutiny of the proposed merger. The court concluded that the proposed merger would have caused a substantial lessening of competition in three counties in Florida.
The United States was joined in the lawsuit by the District of Columbia and the States of Delaware, Florida, Georgia, Illinois, Iowa, Ohio, Pennsylvania and Virginia.
Aetna-Humana Memorandum Opinion Aetna-Humana OrderTwo convicted on methamphetamine distribution chargesRead the Press Release
ELKINS, WEST VIRGINIA – Two men pled guilty to methamphetamine distribution charges in federal court today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Calvin Norris Herron, 43, of Belington, West Virginia, pled guilty to one count of “Distribution of Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000.
Ronald G. Swiger, 36, of Coalton, West Virginia, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000.
Under Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Two Wichita Men Plead Guilty in Armed Bank RobberyRead the Press Release
WICHITA, KAN. B Two Wichita men pleaded guilty Monday of brandishing or aiding and abetting another robber who brandished a firearm during a bank robbery, U.S. Attorney Tom Beall said.
Raishat McGill, 35, Wichita, Kan., and Elijah Shelton, 25, Wichita, Kan., pleaded guilty to one count each of brandishing a firearm in a crime of violence. In their pleas, they admitted that on June 13, 2016, they robbed the Carson Bank at 4461 E. Douglas in Wichita. On that day, two individuals who were disguised entered the bank, one of them brandishing a firearm. The robbers demanded and received money before fleeing. The money they received contained a global positioning device that police used to track the defendants and arrest them.
McGill and Shelton are set for sentencing April 13. In both cases, the parties have agreed to recommend a sentence of 84 months in federal prison. Earlier this month, co-defendant Andre Bryant, 30, Wichita, Kan., pleaded guilty to the same charge. He is set for sentencing April 10.
Beall commended the Wichita Police Department, the Sedgwick County Sheriff’s Department, the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.
Two More North Carolina Commercial Fishermen Plead Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, ELLIS LEON GIBBS, jR., 53, of Engelhard, and DWAYNE J. HOPKINS, 43, of Belhaven, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010. GIBBS also pled guilty to obstructing a boarding by the United States Coast Guard.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic Striped Bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
When asked by the Boarding Team, GIBBS admitted that he was targeting Atlantic striped bass. When asked where he caught the fish, GIBBS showed the boarding team certain electronically-saved track lines from the vessel’s navigation computer. The track lines shown by GIBBS, however, were fishing tows he made in state waters (where the harvest of striped bass would have been lawful at the time) on February 13, 2009, almost a year prior to the February 9, 2010 boarding.
The Boarding Team counted 173 Atlantic striped bass, ranging in size from 36- to 41.5 inches in length, on the deck of the Lady Samaira. After completing its inspection, the Boarding Team allowed the Lady Samaira to proceed to port in Engelhard, North Carolina, where NOAA agents awaited to conduct the dockside investigation.
Once the vessel reached port, NOAA agents boarded. Agents, however, found only 99 striped bass aboard the vessel. The crew of the Lady Samaira had discarded 74 Atlantic striped bass prior to getting port. The conservative retail value of the missing fish, based upon fillet weight, was over $12,000.
When questioned by NOAA agents, GIBBS initially lied and told the agents that he had caught the fish within state waters. When confronted with the data from NOAA’s vessel monitoring system, GIBBS subsequently confessed to fishing nine miles offshore and signed a written statement of his admission.
A subsequent forensic analysis of the Lady Samaira’s vessel computer (which was seized during the investigation) identified that Gibbs had saved track lines on his computer indicating he fished for striped bass approximately 9 miles into the EEZ, which he then deleted from his system. Agents recovered the deleted evidence, as well as evidence from earlier trips where GIBBS had done the same – that is, harvesting striped bass from the EEZ and deleted his track lines.
Based on its investigation, NOAA determined that between January 27, 2009, and February 10, 2010, GIBBS, as Captain of the Lady Samaira, harvested more than 9,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The retail market value of the fish illegally harvested and sold by GIBBS exceeded $72,000. To conceal the illegal harvests, GIBBS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that between January 29, 2009, and February 10, 2010, HOPKINS, then Captain of the Lady Carolyn, a commercial trawler, harvested more than 7,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to fish dealers in Wanchese, North Carolina. The retail market value of the fish illegally harvested and sold by HOPKINS exceeded $55,000. To conceal the illegal harvests, HOPKINS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Three other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, United States v. James Ralph Craddock, No. 2:15-CR-7-F, United States v. Joseph Howard Williams, No. 4:15-CR-2-F.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be prosecuted vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Our office was pleased to partner with DOJ’s Environment and Natural Resources Division, NOAA, and other law enforcement agencies on these important cases.”
"NOAA's Office of Law Enforcement is committed to ensuring a level playing field for the fishermen who play by the rules. When people cheat the system, it hurts those who follow the rules the most," said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
A sentencing hearing has been scheduled for the Court’s April 24th term of court, 2017. GIBBS faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine. HOPKINS faces a maximum sentence of five years in prison and a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Assistant U.S. Attorney Banumathi Rangarajan and Trial Attorneys Shennie Patel and Shane Waller of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Sylacauga Woman Sentenced to Prison for Embezzling from Union LocalRead the Press Release
BIRMINGHAM – A federal judge last week sentenced a Sylacauga woman to three months in prison, followed by three month’s home detention for embezzling more than $23,000 from a construction trades union local based in Irondale, announced Acting U.S. Attorney Robert O. Posey and Department of Labor, Office of Labor-Management Standards, District Director Craig Neel.
U.S. District Judge R. David Proctor sentenced MICHELLE R. CLIFTON, 49, on one count of embezzling union assets. The judge ordered her to pay $23,014 in restitution to the union. Clifton pleaded guilty in August. She must report to prison Feb. 15.
Clifton stole from the International Association of Heat and Frost Insulators and Allied Workers, Local 78, where she worked as office manager and bookkeeper, according to court records. She carried out the theft between December 2012 and September 2013 by forging 17 checks drawn on four separate union accounts.
The Labor Department’s Office of Labor-Management Standards investigated the case, which Assistant U.S. Attorney J. Patton Meadows prosecuted.
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St. Croix Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
St. Croix, USVI – Shawn McIntosh, 24, pleaded guilty today in federal court on St. Croix before United States Magistrate Judge George W. Cannon to being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, police officers encountered McIntosh on July 9, 2016, while searching for another individual at the Hidden Island Bar in St. Croix. Upon observing the police, McIntosh ran and was observing tossing an object, later determined to be a firearm. McIntosh was previously convicted of burglary third degree in 2012 in the Virgin Islands Superior Court.
McIntosh faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for May 24, 2017.
The case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigations. The case is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Spice Manufacturers Convicted for Selling Spice in Hampton RoadsRead the Press Release
NORFOLK, Va. – Charles Burton Ritchie, 46, Benjamin Galecki, 42, both of Pensacola, Florida, were convicted today by a federal jury on charges related to their respective roles in a $21 million spice manufacturing and distribution conspiracy.
“Spice is a dangerous mixture of ingredients that can be deadly,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Often it is our young people who fall victim to these illegal drugs, obtaining them at gas stations and convenience stores without any idea how dangerous they can be. I want to commend our trial team and investigative partners for their terrific work on this case.”
“Spice wreaks havoc on the lives of its users,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, which oversees the Norfolk office that conducted this investigation. “Consumers ingest these toxic chemicals for a short-term high, all too often to have devastating effects on their bodies. Today’s verdict underscores the hard work our special agents and law enforcement partners do to protect the people of Hampton Roads.”
“Today’s verdict demonstrates the commitment of FDA and its law enforcement partners to aggressively pursue those who distribute potentially dangerous unapproved drugs, which poses a risk to the public health,” said Mark McCormack, Special Agent in Charge of the Food and Drug Administration’s Office of Criminal Investigations.
Ritchie and Galecki were indicted on Sept. 8, 2015. According to court records and evidence presented at trial, Ritchie and Galecki operated Zencense, a Pensacola-based company that manufactured smokable synthetic cannabinoids, commonly known as “spice,” throughout 2012. Ritchie and Galecki’s company gave their spice blends such names as Bizarro, Neutronium, Orgazmo, and Sonic Zero. Their products contained XLR-11 and UR-144, which at that time were analogues of JWH-018, a Schedule I controlled substance. In Dec. 2012, Ritchie and Galecki purported to sell their company to a third party in California, though they continued to exercise control over the company into 2013. The new company’s name was ZenBio.
Between August 2012 and April 2013, Zencense and ZenBio shipped a total of approximately 1,000 kilograms of spice to the Hampton Roads area. Zencense and ZenBio spice was sold at Hampton Pipe and Tobacco, a headshop in Hampton, as well as at the Red Barn, a convenience store in Newport News, among other locations.
Ritchie and Galecki each face a maximum penalty of 79 years in prison when sentenced on May 22. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of (HSI) Washington; Joseph Cronin, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark McCormack, Special Agent in Charge of Food and Drug Administration’s Office of Criminal Investigations; Terrance Salt, Chief of the Hampton Police Division; Richard W. Myers, Chief of the Newport News Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police, made the announcement after the verdict was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric Hurt and Kevin Hudson are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-18.
Six Mission, Texas Residents Plead Guilty to Participating in Drug Trafficking and Money Laundering SchemeRead the Press Release
In San Antonio today, six more individuals pleaded guilty to their roles in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; United States Attorney Kenneth Magidson, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Appearing before United States District Judge Xavier Rodriguez this afternoon, the following defendants pleaded guilty to conspiracy to commit money laundering: 47-year-old Norma Leticia Villarreal-Garcia (*two counts); 36-year-old Iza Corina Flores-Alanis; 24-year-old Juan Antonio Villarreal; 57-year-old Jose Luis Villarreal-Arelis (aka “El Cosas”); 47-year-old Nancy Isela Villarreal-Gonzalez; and, 27-year-old Gilberto Villarreal-Villarreal.
By pleading guilty, the defendants admittedly conspired since January 2000 to: (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
The defendants face up to 20 years in federal prison for the money laundering conspiracy charge. Sentencing is scheduled for May 24, 2017.
To date, 12 defendants have entered guilty pleas resulting from this investigation. Four defendants—45-year-old Reymundo Villarreal-Arelis (aka “Mundo”); 37-year-old Jesus Jaime Andrade of Mission; 66–year-old Sergio Guadalupe Adame-Ochoa of McAllen, TX; and, Gilberto Villarreal-Arelis (aka “Beto”, “Betito”)--remain under indictment in this case. Gilberto Villarreal-Arelis remains a fugitive. Jury selection and trial is set for March 13, 2017.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Police Department, Texas Department of Public Safety and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices and Homeland Security Investigations.
Schneider Charged with Federal Hate Crime Indictment Alleges Assault Based on Victim’s Sexual OrientationRead the Press Release
BOISE B Kelly Schneider, 23, of Nampa, Idaho, was indicted on January 10, 2017, by a federal grand jury sitting in Boise for willfully assaulting a person because of the person’s sexual orientation, U.S. Attorney Wendy J. Olson announced. The indictment, unsealed upon Schneider’s transfer into federal custody, alleges that Schneider’s actions resulted in the death of his victim, S.N. The U.S. Attorney’s Office does not identify victims by name in charging documents. Schneider’s arraignment is set for tomorrow, January 24, 2017, at 2:00 p.m. before Chief U.S. Magistrate Judge Ronald E. Bush. A trial date will be set at that time.
The charges relate to an assault at Gott’s Point, near Lake Lowell, in Canyon County, in the early morning hours of April 29, 2016. Schneider is also charged in state court with first degree murder based on S.N.’s death.
The charge of willful assault based on sexual orientation, resulting in death, is punishable by up to life in prison, supervised release of not more than five years, and a $250,000 fine.
The Canyon County Sheriff’s Office, with assistance from the Treasure Valley Metro Violent Crime Task Force, conducted the investigation. The case is being investigated federally by the Federal Bureau of Investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Portsmouth Cocaine Dealer Sentenced to 12 Years in PrisonRead the Press Release
NORFOLK, Va. – Kenneth Ray Matthews, 44, of Portsmouth, was sentenced today to 12 years in prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, possession of cocaine with intent to distribute, and transferring a firearm to a felon.
Matthews was found guilty by a federal jury on Sept. 29, 2016, following a three-day trial. According to court documents and evidence presented at trial, Matthews and his son, Kenneth Ray Meeks, 27, also of Portsmouth, distributed over 13 kilograms of cocaine in the Hampton Roads area between November 2013 and August 2015. On Aug. 13, 2015, law enforcement agents executed a search warrant at Matthews’ residence in Portsmouth and discovered 17 grams of cocaine, digital scales, 34 firearms, 3,288 rounds of ammunition and over $30,000 in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Col. K.L. Wright, Chesapeake Chief of Police; and Colonel W. Steven Flaherty, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-61.
Pocahontas County man pleads guilty to failing to update his sex offender registrationRead the Press Release
ELKINS, WEST VIRGINIA – Clifton R. Summerfield, 34, of Marlinton, West Virginia, pled guilty to failing to update his sex offender registration, Acting United States Attorney Betsy Steinfeld Jividen, announced.
From February 2016 through November 2016, Summerfield failed to register and update his registration as a sex offender in Pocahontas County, WV. Summerfield is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law. He pled guilty to one count of “Failure to Update Sex Offender Registration.”
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 Sarah W. Montoro prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Sentenced to Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 37 months’ imprisonment on his conviction of conspiracy to distribute cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Sidney Pinnix, 50, of Pittsburgh, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Sidney Pinnix was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Pinnix.
Pennsylvania Man Pleads Guilty in False Tax Refund SchemeRead the Press Release
A Pennsylvania man pleaded guilty today to conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Shamback Francois, 27, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false returns using stolen personal identifying information. At least one of Francois’s co-conspirators electronically filed the false tax returns, which directed that the fraudulently claimed refunds be deposited into a bank account in the name of Shamback Tax Service. Francois did not have a tax preparation service, but had opened up the account in order to facilitate the crime. Francois withdrew funds from this account to pay his co-conspirators. As part of the plea, Francois admitted to causing a loss of $425,841.14.
Francois is scheduled to be sentenced on April 18 before U.S. District Court Judge John R. Padova. Francois faces a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owners of West L.A. Pharmacy Found Guilty in Sweeping Scheme to Illegally Distribute Prescription NarcoticsRead the Press Release
LOS ANGELES – Two brothers who owned a West Los Angeles pharmacy were found guilty by a federal jury today of operating a years-long narcotic drug trafficking, money laundering and tax fraud conspiracy that illegally sold prescription narcotics to black market customers across the United States.
Brentwood residents Berry Kabov, 46, and his brother Dalibor “Dabo” Kabov, 33, who operated Global Compounding Pharmacy, were convicted of being at the center of a scheme that illegally sold oxycodone (best known by the brand name OxyContin, but also the main ingredient in Percocet and Percodan), hydromorphone (also known as Dilaudid), and hydrocodone (commonly known as Vicodin or Norco).
The Kabovs were found guilty of conspiracy to distribute narcotics, distribution of oxycodone, conspiracy to import narcotics, importation of anabolic steroids, money laundering and subscribing to false tax returns. As a result of the guilty verdicts, Berry Kabov faces a statutory maximum penalty of 309 years in federal prison, and Dalibor Kabov faces up to 315 years.
The brothers are scheduled to be sentenced on March 29 by United States District Judge Dolly M. Gee.
“These defendants used their pharmacy as a front for drug dealing, and they used multiple bank accounts to conceal their illicit proceeds,” said United States Attorney Eileen M. Decker. “Prescription drug abuse is an epidemic in this country that causes immense harm, and the use of the pharmacy allowed the defendants to increase greatly the volume of their business and distribute narcotics around the nation. In addition to operating as de facto drug dealers, these defendants cheated the U.S. tax system by failing to report approximately $1.5 million in income while living a life of luxury.”
According to court documents and evidence introduced during a three-week trial in United States District Court, the Kabov brothers used Global Compounding to sell bulk quantities of prescription drugs to customers across the country. During the investigation, authorities seized shipments that contained thousands of hidden oxycodone pills that the Kabov brothers had shipped to customers in and around Columbus, Ohio. These customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California.
To conceal those black market drug sales, the Kabovs used their pharmacy to generate records that falsely indicated that prescriptions had been filled in the names of identity theft victims.
From June 2012 through December 2014, the pharmacy ordered nearly 100,000 oxycodone pills, yet it reported only half of those pills to state authorities who track prescription drug sale. There was a 15-month period with no reporting at all, and there were shortfalls in the tens of thousands of pills when the pharmacy did file reports.
“These individuals engaged in one of the most egregious, fraudulent acts we’ve seen on the part of a DEA registrant. They completely exploited the system to acquire dangerous and addictive prescription drugs by legal means with the primary intent of selling them on the black market,” said DEA Special Agent in Charge Steve Comer. “This conviction should serve as a warning to others so inclined to abuse the system. In the midst of a nation-wide opioid epidemic that is taking 90 lives a day, we’re leveraging all of our resources to bring illicit prescription drug traffickers like these to justice.”
In addition to the charges related to oxycodone, the brothers were found guilty of illegally importing anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone and nandrolone.
On federal tax returns, the Kabovs understated their income by approximately $1.5 million. They falsely claimed to have suffered net losses in 2011 and 2012, while they were flying in private jets, staying in penthouse suites, and purchasing new luxury cars, such as a $100,000 Corvette.
“After amassing large quantities of cash from the black market sale of prescription drugs, the Kabov brothers attempted to legitimize these ill-gotten profits through the use of their pharmacy and financial institutions,” said Aimee Schabilion, Acting Special Agent in Charge of the IRS Criminal Investigation. “IRS Criminal Investigation remains committed to the investigation and prosecution of those who launder and profit from the proceeds of illegal pharmaceuticals.”
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, IRS Criminal Investigation, the United States Postal Inspection Service, the Los Angeles Police Department, and the California Board of Pharmacy.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Ryan Weinstein of the Organized Crime Drug Enforcement Task Force, and Assistant United States Attorney Matthew O’Brien of the General Crimes Section.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Sentenced to Prison for Tax EvasionRead the Press Release
The owner of a St. Louis, Missouri tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court records, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
“As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system,” said Acting Deputy Assistant Attorney General Goldberg. “Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct.”
“Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. “Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes.”
Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.
On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $$298,178 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Tax Preparation Franchises in Illinois, Kansas and Missouri Sentenced for Tax EvasionRead the Press Release
WASHINGTON – The owner of a St. Louis, Missouri, tax return preparation business was sentenced to 27 months in prison Friday following his conviction on two counts of tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court records, Semere Tsehaye, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in Illinois, Kansas and Missouri from 2005 to 2011. ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio. Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).
"As the owner and operator of numerous tax return preparation businesses, Semere Tsehaye was clearly aware of his obligation to accurately report his income and expenses to the Internal Revenue Service (IRS), and yet ignored his responsibilities in an effort to cheat the system," said Acting Deputy Assistant Attorney General Goldberg. "Tsehaye’s sentence makes clear that those who seek to evade paying their fair share will face severe consequences for their criminal conduct."
"Mr. Tsehaye’s attempt to evade tax by hiding income and filing false returns was a theft from the American public," said Special Agent in Charge Karl Stiften of IRS Criminal Investigation (CI), St. Louis Field Office. "Tax evasion of this magnitude with this degree of dishonesty and deceit deserves to be punished and Mr. Tsehaye will now pay the price for his crimes."
Court records show that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer. Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the IRS. These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,895 in 2010 and $1.03 million in 2011, and resulted in Tsehaye evading a total of approximately $581,264 in tax due and owing.
On Oct. 4, Tsehaye was convicted of two counts of tax evasion by a federal jury sitting in St. Louis, Missouri. In addition to the term of prison imposed, Tsehaye was ordered to serve three years of supervised release and to pay $298,178 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-CI, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Eastern District of Missouri for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Overlake Medical Center Agrees to Settle Civil Rights ClaimsRead the Press Release
The U.S. Department of Justice and Overlake Medical Center have entered into a settlement agreement to remedy alleged violations of the Americans with Disabilities Act (“ADA”), announced United States Attorney Annette L. Hayes. The U.S. Attorney’s Office for the Western District of Washington began the investigation after a complainant, who is deaf, alleged that she requested an ASL interpreter in advance of a scheduled, induced delivery at the hospital in June 2014. Despite assurances that one would be provided, no interpreter was present as the labor escalated, eventually resulting in a cesarean section. In addition, the complainant’s partner, who is also deaf, was also not provided an interpreter. He also was excluded from the delivery room during the birth because complainant’s mother (who was attempting to provide basic ASL interpretation to her daughter) was counted as complainant’s choice of “companion” during the birth.
“The ability to communicate effectively with health care providers is essential – especially during a critical event like the birth of a child,” said U.S. Attorney Annette L. Hayes. “This resolution demonstrates our unwavering commitment to protect the civil rights of all Americans, including those who are deaf or hard of hearing. This settlement will not only resolve this particular case, but ensures that future patients who are treated at Overlake Medical Center will receive assistance so that they can communicate with their doctors and other caregivers.”
Under the settlement signed today, the hospital admits no law violation, wrongdoing or misconduct but agreed to: (1) adopt policies and procedures that ensure that individuals who are deaf or hard of hearing receive auxiliary aids and/or services (including sign language interpreters when necessary) that ensure effective communication; (2) train its staff on the ADA’s effective communication requirements; and (3) pay $200,000 in settlement. Under the terms of the agreement, $75,000 of the settlement will be paid to the complainant; $25,000 will be paid to her partner; $25,000 will be paid to her mother (for associational discrimination), and $75,000 will be paid in lieu of a civil penalty to the United States.
Complainant scheduled an induced labor at Overlake Medical Center, in part, so that she could be assured that an ASL interpreter would be available during her labor and delivery process. Complainant requested an ASL interpreter 10 days in advance of her induction, but when she arrived for the procedure was told an interpreter was not immediately available to assist. Although the hospital subsequently provided an interpreter for part of complainant’s labor, when that interpreter’s shift ended, the hospital (having failed to plan for any replacement) was unable to find another interpreter to assist. As a result, complainant and her partner were only able to communicate with hospital staff through handwritten notes while her labor increased and complications ensued. Eventually, complainant’s mother, who taught herself some ASL when complainant was young, arrived and attempted to provide basic interpretation for complex medical concepts and procedures, including interpreting during complainant’s cesarean surgery. Complainant subsequently notified the United States Attorney’s Office of the alleged ADA violation. The U.S. Attorney’s Office investigated and found that the hospital discriminated against complainant and her companions by failing to ensure effective communication and by engaging in associational discrimination. Overlake Medical Center fully cooperated with the investigation and settlement of this matter.
In a related matter, complainant also alleged that Overlake Obstetricians and Gynecologists, P.C., which provided her pre-natal care, similarly violated her rights under the ADA when it failed to provide an ASL interpreter for four of her nineteen office visits. The U.S. Attorney’s Office investigated this matter as well and confirmed the violation. That matter was resolved by a Letter of Resolution, under which the clinic agreed to make changes to its policies, procedures, and training and agreed to pay the complainant $3,500 in settlement.
These cases are part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on this critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY). ADA complaints may be filed by email to [email protected].
Both matters were handled by Assistant United States Attorney Christina Fogg in collaboration with Disability Rights Section of the Civil Rights Division of the United States Department of Justice.
New York Man Sentenced to 40 Months in Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 23, 2017, Kevin Tocker-Rose, 30, of Brooklyn, New York, was sentenced to 40 months in federal prison after his guilty plea to charges that he possessed with the intent to distribute heroin. U.S. District Court Judge William K. Sessions III also ordered that Tocker-Rose serve three years of supervised release after his prison term.
According to court records, Tocker-Rose transported significant quantities of heroin from the New York City area for re-distribution. On May 5, 2016, after an investigation involving the controlled purchases of heroin from Tocker-Rose, the Vermont State Police Drug Task Force and other law enforcement agencies arrested Tocker-Rose in Burlington after he departed a bus from New York City. From his person, law enforcement recovered approximately 30 grams of heroin.
For his crime, Tocker-Rose faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Tocker-Rose receive a prison term between 46-57 months. In determining that a more lenient sentence was appropriate, Judge Sessions considered Tocker-Rose’s difficult childhood and strong family support, among other factors.
United States Attorney Eric Miller commended the efforts of the Vermont State Police Drug Task Force, the Drug Enforcement Agency, and the Burlington Police Department 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. Hutchins is represented by Assistant Federal Public Defender David McColgin.
New Jersey Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A New Jersey man, who was dealing heroin in the City of Roanoke, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on a federal drug charges, Acting United States Attorney Rick A. Mountcastle announced.
Duane A. Andrews, 37, of Jersey City, New Jersey, previously pled guilty to one count of distribution of heroin. Today in District Court, Andrews was sentenced to 136 months in federal prison.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, Andrews was arrested and charged after selling heroin to a confidential law enforcement source.
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department, the Virginia State Police and the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Navy Sailor Sentenced for Murder-for-Hire Plot to Kill WifeRead the Press Release
NORFOLK, Va. – Chadwick Stanley Ghesquiere, 38, of Virginia Beach was sentenced today to 11 years in prison for his role in an attempted murder-for-hire plot to kill his wife.
“Violence is never the answer to ending a relationship,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Despite Ghesquiere’s best attempts to distance himself, law enforcement agents were able to uncover his murder-for-hire plot and potentially prevent a tragic loss of life. I want to thank our investigative partners at the ATF and NCIS for their terrific work on this case.”
Ghesquiere pleaded guilty on Oct. 11, 2016. According to court documents, in August 2016, Ghesquiere hired an undercover federal special agent to murder his estranged wife. Ghesquiere provided the undercover agent with $1,000 in cash, 80 Adderall pills, and a firearm to commit the murder. Ghesquiere also promised to pay the undercover $50,000 of his $100,000 life insurance policy for conducting the murder. After his arrest, Ghesquiere admitted that he tried to distance himself during the investigation by using a pre-paid burner phone to coordinate a meeting with the undercover agent. He also admitted to receiving Adderall from the military and then distributing the pills to another individual who resides in his neighborhood.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Maureen Evans, Acting Special Agent in Charge of NCIS Norfolk Field Office, made the announcement after sentencing by Senior Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kevin M. Comstock prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-128.
National Slavery and Human Trafficking Prevention Month - JANUARY 2017Read the Press Release
Through Presidential Proclamation, Barack Obama recognized January 2017 as NATIONAL SLAVERY AND HUMAN TRAFFICKING PREVENTION MONTH. In recognition of this month, the Office of the United States Attorney for the District of Vermont and the Office of the Attorney General for the State of Vermont join together to shine a light on the modern-day slavery known as human trafficking, a crisis facing the nation and Vermont.
Human Trafficking is the act of compelling a person by force, fraud, or coercion to provide labor or a commercial sex act. Coercion may be subtle and insidious, and traffickers often threaten serious physical and emotional harm. Human trafficking is a global, national and local problem. Vermont is not immune to this crisis. Drug addicts and other vulnerable people such as children, the disabled, and the undocumented are specifically targeted and recruited by traffickers for exploitation.
Vermont’s United States Attorney, Eric Miller, emphasized the link between human trafficking and the heroin scourge in Vermont, stating, “Human trafficking continues to be one of the most dangerous, but least understood, aspects of the heroin trade in Vermont. Drug dealers coerce addicts to perform commercial sex acts for the benefit of the dealers’ illegal organizations, deliberately perpetuating the victims’ addiction in order to exploit them for commercial gain. Trafficking in people compounds the damage that trafficking in heroin has caused our state. Our response to that epidemic must continue to bring the problem of human trafficking out of the shadows, get trafficking survivors the help and services they need, and prosecute the traffickers who prey on some of our most vulnerable Vermonters.”
Vermont’s Attorney General, T.J. Donovan, added, “We have seen, right here in Vermont, how human trafficking destroys lives. The physical and emotional scar survivors carry is immense. The only way to effectively combat this crime and to help those that have been victimized is for us, as a community, to bring this hidden scourge out in the open. As citizens we have a duty to be informed and to take action. That action may be contacting law enforcement with a concern, or reaching out to someone that you suspect may be being exploited. Remaining silent is no longer an option.”
Anyone can be a victim of human trafficking, regardless of race, age, gender, nationality, socio-economic status, or sexual orientation. Trafficking victims are often manipulated via false promises concerning relationships, employment, lifestyle, or drug availability, and victims are lured into situations where they are controlled by the trafficker. Human trafficking does not necessarily occur behind closed doors. In many cases, the trafficker’s control over the victim is so profound that the trafficker can control the victim even when he or she is out in the community, interacting with people on a daily basis.
Perpetrators of human trafficking crimes also come from all walks of life, and they can be family members, acquaintances, or strangers to their victims. They may act alone or as part of an organized effort; their main motive is to make a profit. The damage done by human trafficking is a violation of the victim’s basic human rights.
Vermont’s Human Trafficking Task Force brings together federal, state, and local law enforcement; social services; state agencies; and community based organizations to coordinate efforts to combat this crime and provide help to victims. The Vermont Human Trafficking Task Force continues to prioritize training and awareness for professionals and community members. Anyone interested in such a training or awareness event should contact the Vermont U.S. Attorney’s Office at (802) 951-6725.
To make a report to law enforcement, call The Vermont Human Trafficking Hotline: 1-888-98HUMAN (1-888-984-8626).
If you become aware of an instance of human trafficking and would like to speak with a trained specialist who can help assess the situation and provide information and referrals, call: 211.
Information regarding the human trafficking of a youth (under the age of 18) should be reported to the Department for Children and Families by calling Vermont Centralized Intake: 1-(800) 649-5285.For more information about human trafficking, please visit https://humantraffickinghotline.org or www.justice.gov/humantrafficking.