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10 March 2017
Owner of Commercial Supply Companies Admits Conspiring to Defraud Approximately 40 Companies of More Than $1 MillionRead the Press Release
CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., today admitted his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, U.S. Attorney Paul J. Fishman announced.
Keith B. Fisher Sr. 59, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.
Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. isher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.
The charge to which Fisher pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for June 19, 2017.
U.S. Attorney Fishman credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General – Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge David Bosch, for conducting the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New York Man Sentenced to 25 Years in Prison for Sexual Exploitation of Girl While Being Unregistered Sex OffenderRead the Press Release
Also Sentenced for Wire Fraud and Identity Theft Charges
CAMDEN, N.J. – A New York man was sentenced today to 300 months in prison for engaging in illicit sexual conduct with a 12-year-old girl and falsely claiming he had cancer in order to defraud victims out of $150,000, U.S. Attorney Paul J. Fishman announced.
Joseph Anthony Caracciolo, 50, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a four-count information charging him with traveling in interstate commerce to engage in illicit sexual conduct with a minor, committing that offense while being an unregistered sex offender with a duty to register under state and federal law, wire fraud and aggravated identity theft. Judge Bumb imposed the sentence today in Camden federal court.
According to the documents filed in the case and statements made in court:
Caracciolo admitted that on numerous occasions between June 2012 and August 2012, he travelled to New Jersey and Pennsylvania to engage in sexual intercourse with a then 12-year-old-girl, identified as “Victim 1” in the information. During this time, Caracciolo was not registered as a sex offender as required by his 1993 rape conviction in the Superior Court of Hampden County in Springfield, Massachusetts.
In July 2009, Caracciolo became romantically involved with a woman, identified in the information as “Victim 2,” with whom he had a child. Caracciolo admitted that he asked Victim 2’s parents to help pay for his cancer treatments, even though he wasn’t actually diagnosed with cancer. From December 2011 through August 2013, Victim 2’s father wired Caracciolo more than $150,000. Caracciolo also admitted that during this time, he used the identity of “Anthony Scibelli,” a Massachusetts man who died in 1998, to perpetuate the fraud.
Following the entry of Caracciolo’s guilty plea before Judge Bumb in January 2016, Caracciolo sought to withdraw his guilty plea in January 2017. At a hearing on Caracciolo’s motion to withdraw his guilty plea, Caracciolo admitted under cross-examination that he has lived a life of lies, including by telling people that he was a pediatric dentist and a celebrity chef, conning and deceiving women from coast to coast, selling sports memorabilia on eBay that he knew was not authentic, and selling fake cellphones and stereos.
In addition to the prison term, Judge Bumb sentenced Caracciolo to serve a lifetime of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Egg Harbor Township Police Department, the U.S. Marshals Fugitive Task Force, and members of the “Innocence Lost” Task Force from the Atlantic County Prosecutor’s Office and the Atlantic County Sheriff’s Office, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Peter Levin Esq., Philadelphia, Pennsylvania
New York Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. –A New York man was charged today with robbing a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.
Isaac Nesbit, 30, is charged by complaint with one count of bank robbery. He is expected to make his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
On Jan. 20, 2017, Nesbit allegedly entered the Bank of New Jersey in Fort Lee and presented the teller a note demanding cash and threatening to shoot everyone if the teller did not comply. After Nesbit left the bank with stolen money, law enforcement recovered the note and the clothes worn by Nesbit in a nearby dumpster. Nesbit was spotted and apprehended by law enforcement a short time later during a canvas of the surrounding area. The stolen cash was recovered from Nesbit’s back pocket. Nesbit has been detained in the Bergen County Jail on state charges related to the robbery.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
New Jersey Man Sentenced for Trafficking Contraband CigarettesRead the Press Release
RICHMOND, Va. – Eyad Salahedin, 40, of Elmwood Park, New Jersey, was sentenced yesterday to five years in prison, followed by three years of supervised release, for his role in a conspiracy to traffic in contraband cigarettes. Salahedin also was ordered to pay $5,622,021 in restitution and forfeit $9,611,319.11 in criminal proceeds.
Salahedin pleaded guilty on November 10, 2016. According to court documents, Salahedin created five separate, fictitious Virginia businesses between March and July 2015, using the name and personal identifiers of his absent brother (who had lived overseas in Jordan since 2007) to register those sole proprietorships with the Commonwealth’s Department of Taxation. Salahedin and his co-conspirators then used those fictitious business registrations to create business memberships at Sam’s Club stores in Virginia, where the conspirators purchased more than $9.6 million in cigarettes between March 2014 and August 2015, all exempted from the Virginia sales and use tax.
As part of the conspiracy, Salahedin created secondary business membership accounts for numerous Virginia and New Jersey residents, often utilizing false identities, and he provided those individuals with cash and instructions on what cigarettes to purchase. Salahedin and those acting at his direction then smuggled the cigarettes north to New Jersey and New York, where they were sold as contraband cigarettes on the black market. Salahedin regularly relied on aliases and other individuals’ identities throughout the conspiracy, using those false identities to register his false businesses, purchase cigarettes, and maintain storage units in Virginia and New Jersey.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Robert E. Payne. The case was investigated by the Washington–Baltimore HIDTA task force’s Northern Virginia Financial Initiative and the New Jersey State Treasury’s Office of Criminal Investigations. Assistant U.S. Attorneys Thomas A. Garnett and Michael C. Moore 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. 3:16-cr-29.
Mountain Pine Man Sentenced to 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Prentice Jerel Daniels, aka “PJ”, age 29, of Mountain Pine, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on two separate occasions in July of 2015, members of the 18th Judicial East Drug Task Force conducted a controlled purchase of one ounce of methamphetamine from Prentice Jerel Daniels, recording the transactions each time. Daniels was a known distributor of methamphetamine in the Mountain Pine area. On August 6, 2015, officers executed a state search warrant on Daniel’s residence and located a large amount of methamphetamine and over $12,000 in cash. The drugs seized were sent to the Arkansas State Crime Lab where they tested positive to be 663 grams of actual methamphetamine.
Daniels was named in a federal indictment in September, 2015 and pleaded guilty in August, 2016.
This case was investigated by Homeland Security Investigations and the 18th Judicial Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Member of International Child Exploitation Conspiracy Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Jeffery Van Dyke, 46, of Weed, California, pleaded guilty today to conspiracy to produce child pornography for his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Van Dyke was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is set for June 9.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Van Dyke admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor.
Van Dyke further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Van Dyke admitted that he linked minors to one of the websites and chatted with them there in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-128.
Member of International Child Exploitation Conspiracy Pleads GuiltyRead the Press Release
A Weed, California man pleaded guilty today to conspiracy to produce child pornography for his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Divisionmade the announcement.
Jeffery Van Dyke, 46, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is set for June 9.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Van Dyke admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Van Dyke further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Van Dyke admitted that he linked minors to one of the websites and chatted with them there in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of Cherry Hill’s Hillside Drug Distribution Conspiracy Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Jerryan Burrell, a/k/a Rhino, age 31, of Baltimore, today to 20 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, powder and crack cocaine, marijuana, and oxycodone. On March 8, 2017, Judge Russell sentenced Devin Rodgers, a/k/a Donkey and Dick Butkus, age 21, of Baltimore, to 10 years in prison, followed by five years of supervised release, on the same charge. Burrell and Rodgers admitted that they were members of Hillside, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Although the only crime charged in this case is a drug conspiracy, the allegations against the Hillside group includes 13 murders and 21 non-fatal shootings,” said U.S. Attorney Rod J. Rosenstein. “Conspiracy cases are a valuable tool to put violent gangs out of business.”
According to Burrell’s and Rodgers’ plea agreements, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center and other locations throughout Cherry Hill, and in west and southwest Baltimore City. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Burrell and Rodgers, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Burrell, Rodgers and other Hillside members used colored topped vials or colored the drugs with food coloring.
Burrell and Rodgers admitted that they distributed heroin, marijuana, cocaine and other narcotics. According to the plea agreements, video recordings show that Burrell and Rodgers were in the Hillside stash houses, along with other Hillside members.
During Burrell’s and Rodgers’ involvement in the Hillside drug conspiracy, it was reasonably foreseeable to them that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.
Members of Hillside, including Burrell, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on January 16, 2011, Burrell and another Hillside member committed an armed robbery with a loaded .22 caliber handgun with an obliterated serial number. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman” and “Coppin Court.”
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Member of Violent Albanian Extortion Crew Targeting Astoria Business Owners Sentenced to 18 Years in PrisonRead the Press Release
Earlier today, Denis Nikolla was sentenced before Judge Eric N. Vitaliano in U.S. District Court in Brooklyn, New York to 18 years’ imprisonment, to be followed by five years’ supervised release, for two counts of Hobbs Act extortion conspiracy, one count of threatening physical violence in furtherance of an extortion plan, and one count of brandishing a firearm. The charges relate to the defendant’s participation in three schemes to extort small business owners in Astoria, Queens. Co-defendants Redinel Dervishaj and Besnik Llakatura are awaiting sentencing. Dervishaj was convicted after a three-week trial in April 2016, while Besnik Llakatura, a police officer with the New York City Police Department at the time of the crimes, previously pled guilty.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and James P. O’Neill, Commissioner, New York City Police Department.
“The defendant and his partners used fear, intimidation, and threats of violence to demand payment from those who dared to open businesses on their so-called ‘turf’ of Astoria, Queens,” stated United States Attorney Capers. “When his victims refused to pay, the defendant and his partners escalated their efforts to secure payment, brazenly brandishing firearms at their victims. Today’s sentence sends a strong message that criminals who use extortion and violence to profit from others’ hard work in our community will be held accountable and punished.” Mr. Capers extended his grateful appreciation to the members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division and the FBI’s Public Corruption squad for their cooperation and assistance in the investigation.
“The defendant and his partners in this case coerced an innocent restaurant owner into paying for so-called protective services by using fear and threats of physical violence. The thought that someone can claim an area in any community as their ‘turf’ is not only illegal, it’s beyond comprehension in a normal society. No one should fear a criminal threatening and extorting money from them because of the area where they chose to open a legal and legitimate business,” stated FBI Assistant Director-in-Charge Sweeney.
“Today’s sentence should deter others who believe they can use violence to extort their victims,” said Police Commissioner O’Neill. “My thanks to the prosecutors, detectives, and agents whose work on this investigation led to this sentence. The neighborhood of Astoria is safer today because of your hard work.”
According to prior court filings and evidence presented at the trial of co-defendant Redinel Dervishaj, between May and November 2013, Nikolla, Llakatura and Dervishaj conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj paid him a visit and demanded $4,000 per month because the victim had opened in “our neighborhood.” The restaurant owner sought help from his friend Llakatura, at the time an NYPD officer in Staten Island. However, unbeknownst to the victim, Llakatura was conspiring with Dervishaj and Nikolla in the extortion. Llakatura actively discouraged the restaurant owner from reporting the extortion to the police and warned the victim that Dervishaj and his associates would physically harm him if he did not pay. When the victim failed to make the demanded payments, Nikolla violently threatened him on a public street in Queens, pointing a semiautomatic handgun at the victim, ready to fire, before the victim managed to escape in his car. Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately extorting $24,000 from him.
Between April 2012 and November 2013, Nikolla and Dervishaj also conspired and attempted to extort the owner of two nightclubs after he opened a new nightclub in Astoria. Nikolla approached the owner with an extortion demand, indicating to the victim that other businesses in the area were paying him for so-called “protection.” After the owner refused to pay, Nikolla and Dervishaj confronted him at a bar in Queens, trapping him in an enclosed space near the entrance. Nikolla then retrieved a firearm from Dervishaj’s side, stuck the firearm in the victim’s ribs, while yelling at the victim that if he didn’t pay, Nikolla would go to his house and beat him up in front of his wife and children. If the victim then continued to refuse to pay, Nikolla said, he would then beat the wife and children up in front of him.
Finally, during 2013, Nikolla, Dervishaj and Llakatura also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week from the proprietor for so-called “protection.” The victim refused to make the demanded payments and ceased going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim, badly beat him and pulled a gun on him, in an effort to locate and send a message to the victim. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and sold his social clubs.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata, Patrick Hein and Kristin Mace.
The Defendant:
DENIS NIKOLLA
Age: 36
Brooklyn, New York
E.D.N.Y. Docket No. 13-CR-668 (ENV)
McHenry County Man Pleads Guilty to Four RobberiesRead the Press Release
ROCKFORD — A McHenry County man pleaded guilty today before U.S. District Judge Frederick J. Kapala to four charges of robbery.
SHAWN M. RANK, 47, of Woodstock, pleaded guilty to the robberies of Heartland Bank and Trust Company, 327 W. Main St., Genoa, on Jan. 15, 2016; the Cash Store, 1479 N. State St., Belvidere, on April 1, 2016; Harvard Savings Bank, 58 N. Ayer St., Harvard, on May 6, 2016; and Alpine Bank, 600 S. State St., Belvidere, on June 13, 2016.
According to the written plea agreement, Rank admitted that at 10:30 a.m. on Jan. 15, 2016, he walked directly to a teller’s station at the Heartland Bank and Trust Company in Genoa, pushed a blue zippered bank bag across the counter and told the teller to fill it with $50s and $100s. Rank opened his jacket and showed a gun to the teller. The teller placed $1,250 in the bank bag.
In addition, Rank admitted in the plea agreement that in the Cash Store robbery he walked up to an employee standing at the counter and told the employee it was a robbery. The employee placed $1,232 in a blue bank bag.
Rank further admitted in the plea agreement that he similarly robbed Harvard Savings Bank when he placed a blue zippered bag on the counter, displayed a gun, and demanded that the teller give him money. The teller handed $2,700 to Rank.
Rank also admitted that he robbed Alpine Bank in Belvidere, again using a blue zippered bag. When Rank demanded money, the teller then gave him $1,790 from her drawer.
On each count Rank faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a fine of up to $250,000, and restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for June 29, 2017, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The DeKalb County Sheriff’s Office and the Harvard, Genoa, and Belvidere Police Departments assisted in the investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Mass. Resident Indicted on Sex Trafficking ChargesRead the Press Release
PROVIDENCE – A federal grand jury in Providence has returned a four-count indictment charging Andy Joseph, a/k/a Andrew J. Joseph, 24, of Brockton, Mass., with allegedly trafficking a 15-year-old Rhode Island female across state lines for the purpose of criminal sexual activity.
The indictment, returned on Thursday and announced today by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Pawtucket Police Chief Paul King, charges Joseph with one count each of sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity, and two counts of traveling in interstate commerce with intent to engage in criminal sexual activity.
According to court documents, it is alleged that on June 15, 2016, Joseph, who had been communicating with the 15-year-old via an Internet web site, met with the teenager in Rhode Island and drove her to a hotel in Seekonk, Mass. It is alleged that at the hotel Joseph photographed the teenager and posted photographs of her in advertisements on Backpage.com, offering the teenager for commercial sexual activity.
It is alleged that between June 15 and August 13, 2016, Joseph arranged for sexual encounters involving the 15-year-old. It is alleged that following each commercial sexual encounter, most or all of the money was turned over to Joseph, at his insistence.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity are punishable by statutory penalties of a minimum of 10 years and up to life imprisonment to be followed by up to lifetime supervised release; traveling in interstate commerce with intent to engage in criminal sexual activity is punishable by up to 30 years imprisonment to be followed by up to lifetime supervised release.
Joseph has been detained in federal custody since his arrest on December 1, 2016, by HSI agents and Pawtucket Police.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams. The matter was investigated by Homeland Security Investigations and Pawtucket Police.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Marion Prison Inmate Sentenced to an Additional 37 Months for Assault and Possessing a WeaponRead the Press Release
Francisco Jose Cantu, 31, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced in United States District Court in Benton to a 37-month term of imprisonment for assaulting another inmate with a dangerous weapon and possessing a homemade knife within that facility, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Cantu had previously pled guilty to a three count indictment charging him with assaulting a fellow inmate with a metal combination lock contained in a sock (counts 1 and 2) and possession of a homemade knife on a separate occasion (count 3). The offenses occurred on February 16, 2016, and March 6, 2016, respectively.
At the time these offenses, Cantu was serving a 360-month sentence, imposed in the Western District of Texas, for production of child pornography. The 37-month sentence was imposed consecutively to that sentence.
In addition to the term of imprisonment, Cantu was ordered to pay the United States special assessments totaling $300 and was placed on a three-year term of supervised release to follow his incarceration.
Cantu was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Announces Extradition of Defendant Charged with Fraud and Money Laundering in Connection with Deceiving Homeowners into Selling Their HomesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and Maria T. Vullo, Financial Services Superintendent for the New York State Department of Financial Services (“DFS”), announced today the extradition from Ukraine of HERZEL MEIRI, who was indicted on March 16, 2016, on fraud and money laundering charges in connection with a scheme to fraudulently induce distressed homeowners to sell their homes to a company he owned and controlled. MEIRI, who arrived in the District yesterday, had been arrested by Ukrainian authorities on October 27, 2016. He will be arraigned in front of Magistrate Judge Ronald L. Ellis today. The case is assigned to United States District Judge Edgardo Ramos. MEIRI was the seventh defendant to be indicted in connection with the scheme.
U.S. Attorney Preet Bharara said: “Herzel Meiri allegedly concocted a callous scheme to swindle desperate homeowners out of their homes. As alleged, Meiri lied to his victims, who thought that they were getting the financial help they needed but instead were being tricked into signing over their homes. Thanks to our law enforcement partners – the FBI, SIGTARP, and DFS – Meiri is now in U.S. custody and will have to answer for his alleged crimes.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “When desperate homeowners fall prey to false relief schemes, their vulnerabilities are often exploited by those who seek to benefit from their misfortune. As alleged, Meiri’s behavior caused serious damage to struggling families who unknowingly funded his extravagant scheme. The FBI continues to support partnerships within the financial industry and law enforcement as we work together to combat this serious crime.”
Special Inspector General for TARP Christy Goldsmith Romero said: “Herzel Meiri is charged with preying on struggling homeowners trying to avoid foreclosure. Meiri and his co-conspirators allegedly promised victims mortgage modifications when in fact they were swindling them out of their homes. SIGTARP thanks U.S. Attorney Bharara, Superintendent Vullo, and the FBI for their commitment to protecting taxpayers from TARP-related crime.”
DFS Financial Services Superintendent Maria T. Vullo said: “These allegations paint the portrait of a con artist who cold-heartedly preyed on financially distressed homeowners – some of whom are among our most vulnerable – to satisfy his selfish greed. The Department of Financial Services is proud to have worked with our fellow law enforcement partners in helping to bring this defendant to justice.”
According to the allegations in the Fourth Superseding Indictment, which was unsealed in November 2016, as well as the Complaints previously filed in this action[1]:
Since at least 2013, MEIRI and his co-defendants have defrauded distressed homeowners throughout the Bronx, Brooklyn, and Queens. MEIRI and others falsely represented to these homeowners – some of whom were elderly or in poor health – that they could assist them with a loan modification or similar relief from foreclosure that would allow the homeowners to save their homes. But rather than actually assisting these homeowners, the defendants deceived them into selling their homes to Launch Development LLC (“Launch Development”), a for-profit real estate company owned and controlled by MEIRI.
MEIRI and others lured victims through Homeowners Assistance Service of New York (“HASNY”), which purported to provide assistance to homeowners who were seeking to avoid foreclosure of their homes. As part of the scheme, MEIRI directed employees of Launch Development to solicit owners of distressed properties and invite them to meet with HASNY representatives so that they could learn more about avoiding foreclosure and saving their homes.
When a homeowner arrived at the HASNY office, he or she met with a co-conspirator, who typically advised the homeowner that HASNY could assist him or her with a loan modification. In other cases, the homeowner was advised that a loan modification could not be completed, but that the homeowner could engage in a type of short sale in which the homeowner would sell the property to a third party, Launch Development, and then within approximately 90 days arrange for a relative of the homeowner to repurchase the property from Launch Development. Homeowners were typically advised that they could remain in their homes throughout the entire process. At the closing that followed, a homeowner who had been led to believe that he or she was about to receive a loan modification or transfer the property to a trusted relative was encouraged to sign documents presented by another co-conspirator, which in some cases were blank. Unbeknownst to the homeowners, by signing the documents, they were selling to Launch Development the homes they had hoped to save. Homeowners often were then forced to vacate their homes soon thereafter, and Launch Development re-sold many of the homes, which were purchased at fraudulently deflated prices, for an enormous profit.
In addition, MEIRI and a co-conspirator transferred the proceeds of the home sales from Launch Development to other companies MEIRI owned and controlled, falsely describing the transfers as, among other things, rent payments. The proceeds were ultimately transferred back to Launch Development or spent on luxury items for MEIRI.
MEIRI is charged with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit bank fraud, each of which carries a maximum term of 30 years in prison. In addition, MEIRI is charged with two counts of money laundering, one of which carries a maximum term of 20 years in prison and one of which carries a maximum term of 10 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Bharara praised the outstanding work of the FBI, SIGTARP, and DFS for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jaimie L. Nawaday and Andrew Thomas are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 72 Months in Prison for Robbing Credit UnionRead the Press Release
Concord, N.H.– Emily Gray Rice, United States Attorney for the District of New Hampshire, announced that Derek Potocki, 32, previously of Manchester, New Hampshire, was sentenced yesterday to 72 months in prison for his role in the robbery of a credit union in March 2015.
According to court documents and statements made in court, Potocki pressured Melissa Bourcher, 28, previously of Manchester, to rob a bank for him. Potocki selected the target and provided Boucher with instructions, including how to dress and disguise her appearance. The two proceeded to the Members First Credit Union on Bridge Street in Manchester on the morning of March 3, 2015. Boucher, who was unarmed at the time, did as she had been instructed, entering the bank alone, passing a note to the teller, and obtaining approximately $6,250. After she fled with the cash, Potocki and Boucher divided the proceeds. Boucher then used a portion of the proceeds to purchase heroin and overdosed. When paramedics were able to resuscitate her, large amounts of cash fell out of her clothing. She was arrested. Potocki took his portion of the funds and fled the area. He was arrested in Massachusetts on March 12, 2015 and has remained in custody on unrelated charges since that date.
Potocki sentence followed his earlier guilty plea. After serving his prison sentence, Potocki will spend three years on supervised release. He also was ordered to pay restitution to the credit union.
Boucher previously pleaded guilty to her role in the robbery and was sentenced to 41 months’ imprisonment.
This matter was investigated by the Manchester Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Charles L. Rombeau.
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Maintenance Director for Aircraft Company Pleads Guilty to Obstructing FAA and NTSB InvestigationsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that David Esteves (52, Port Richey) today pleaded guilty to obstructing proceedings before a federal agency or department. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Esteves was the Director of Maintenance at Avantair, Inc., a now-defunct aircraft fractional ownership company based at St. Petersburg-Clearwater International Airport in Clearwater, Florida. On the morning of July 28, 2012, a Piaggio P.180 Avanti airplane owned and operated by Avantair was taking off from Camarillo, California, en route to San Diego when the plane’s left elevator fell off on the runway. The plane managed to land in San Diego and pick up passengers for a second flight to Henderson, Nevada, during which the captain reported to Avantair headquarters in Clearwater that he was experiencing difficulty controlling the plane. The report was captured on the plane’s Cockpit Voice Recorder (CVR).
After landing in Henderson, the missing elevator was discovered, and the nuts and bolts attaching the plane’s right elevator were also found to be unsafely loose. Federal regulations and company policy required that the plane be quarantined pending an investigation by the National Transportation Safety Board (“NTSB”) and Federal Aviation Administration (“FAA”), which soon arrived to investigate. Before federal investigators were able to inspect the plane, however, Esteves instructed a third-party contractor to remove the loose right elevator and send it back to company headquarters. Esteves also instructed the contractor to power up the plane, knowing that doing so would erase the CVR, including the recording of the flight to Henderson in which the pilot reported problems controlling the plane. These actions were undertaken to obstruct and impede the NTSB’s and FAA’s investigation of the accident and Avantair’s continuing operation of its aircraft in an unsafe condition.
This case was investigated by the Office of the Inspector General for the U.S. Department of Transportation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Madison County Man Charged with Child Pornography OffensesRead the Press Release
Thomas J. Richter, 30, from Troy, Illinois was charged on March 7, 2017 in federal court by a two-count criminal complaint alleging Distribution and Receipt of Child Pornography, United States Attorney Donald S. Boyce has announced. After a detention hearing held today, Richter was released on bond with electronic leg monitoring.
The offenses charged in the criminal complaint allege that in October and November 2016, Richter distributed and received numerous images containing child pornography using an internet application. If convicted of distribution and/or receipt of child pornography, Richter faces a term of imprisonment of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life on each count.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and
prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Madison County Sheriff’s Department and the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Christopher Hoell.
Lubbock Woman Sentenced to 87 Months in Federal Prison for Her Role in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas —Arleen Theres Keithley, 36, was sentenced this morning before U.S. District Judge Sam R. Cummings for her role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Keithley was sentenced to 87 months in federal prison. Keithly pleaded guilty in November 2016 to one count of possession with intent to distribute methamphetamine and aiding and abetting.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; co-defendant Crystal Ann Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking. Two additional plastic bags, containing suspected methamphetamine were found in Keithley’s bra. Two bundles of money, totaling nearly $2,000 were found in Keithley’s purse along with a digital scale that contained drug residue. Keithley also had $2,500 in small bills on her person.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Los Angeles Man Convicted of Running Multimillion Dollar Foreclosure Rescue Scam in Bakersfield, Visalia and SalinasRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Martin Calzada, 29, of Norwalk, guilty today of one count of conspiracy to commit mail fraud and eight counts of mail fraud affecting a financial institution, United States Attorney Phillip A. Talbert announced. The trial was held before United States Chief District Judge Lawrence J. O'Neill.
According to evidence presented at trial, Calzada conspired to defraud homeowners facing foreclosure. Calzada and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Between approximately August 2010 and October 2011, Star Reliable charged clients an upfront fee for its services – ranging from $2,500 up to $4,500 – as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. Clients paid hundreds of thousands of dollars to Star Reliable and at least $300,000 was transferred from Star Reliable into Calzada’s bank accounts. In furtherance of the scheme, Calzada and other employees at Star Reliable filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients, which purported to replace the legitimate property trustees with fictitious trusts affiliated with the defendant and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction told Star Reliable clients to stop paying their mortgages. They also falsely represented that Star Reliable clients had one million dollars in a U.S. government account that could be used to pay-off a homeowner’s mortgage.
According to court documents, instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorneys Christopher D. Baker and Patrick J. Suter are prosecuting the case.
Calzada was remanded into custody following the announcement of the verdict. In a related case in December 2014, co-conspirators Juan Ramon Curiel, 38, of Visalia, and Santiago Palacios-Hernandez, 47, of Salinas, pleaded guilty to conspiracy to commit mail fraud. Curiel additionally pleaded guilty to one count of bankruptcy fraud. They are scheduled to be sentenced by Judge O’Neill on April 10, 2017.
Calzada is scheduled to be sentenced by Judge O'Neill on June 5, 2017. Calzada faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Lancaster County Woman Guilty of Healthcare FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tammie Sensenig, age 45, of Lancaster, Pennsylvania, pleaded guilty March 8, 2017, before United States Magistrate Judge Martin C. Carlson to a criminal information charging her with healthcare fraud.
According to United States Attorney Bruce D. Brandler, Sensenig had previously been excluded from providing healthcare to Medicaid beneficiaries due to prior convictions related to Medicaid fraud. In order to obtain a position as a behavioral health consultant, Sensenig made false representations in order to hide her ineligible status. As a result, Medicaid paid approximately $84,500 for her services.
The case was investigated by the Pennsylvania Office of Attorney General Medical Fraud Control Section and the United States Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jury Finds Gunsmoke Gun Shop Owner Richard Wyatt Guilty of Most ChargesRead the Press Release
Acting United States Attorney Bob Troyer, IRS Criminal Investigation (IRS-CI) Special Agent in Charge Steven Osborne, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division Special Agent in Charge Debora Livingston announced that today a jury found Richard Wyatt, age 53, of Evergreen, Colorado guilty of conspiracy to deal in firearms without a license and tax charges (counts 1, 5, and 6 through 13). The jury hung on counts 2 through 4. The guilty verdicts were the result of a 6-day trial before U.S. District Court Chief Judge Marcia S. Krieger. The jury deliberated for approximately 5 days before reaching their verdict. Wyatt, who was indicted by a federal grand jury in Denver on February 9, 2016, first appeared at the trial free on bond. Wyatt was taken immediately into custody after the jury’s guilty verdict. He is scheduled to be sentenced by Chief Judge Krieger on July 19, 2017.
According to the indictment and evidence presented at trial, Wyatt operated Gunsmoke, a store in Wheat Ridge, Colorado, that displayed firearms and firearm accessories for sale. Wyatt was the principal decision maker for the store and controlled the store’s bank account. In addition to holding itself out as a business that bought and sold firearms, Gunsmoke provided gunsmithing services. Wyatt aggressively publicized his business by posting videos on YouTube and by appearing in a reality television series that appeared on the Discovery Channel. The reality TV show aired from 2011 through 2012, showing a total of 26 episodes.
On Feb. 17, 2012, Wyatt conspired with others to deal in firearms without a license. In April 2012, the defendant surrendered his Federal Firearms License (FFL) due to his violations of federal laws and regulations. After Gunsmoke surrendered its FFL, Gunsmoke changed the address of a store known as Triggers Firearms LLC’s (Triggers) federal firearms license, to the Gunsmoke address, although they did not play any role in managing the store or receive any profits. Thereafter, Wyatt continued to operate Gunsmoke as a retail firearms store that also offered gunsmithing services, but never held an ownership interest in Triggers or assumed management of Triggers. Wyatt and other conspirators submitted false paperwork to the ATF to hide that Triggers was acting as a straw licensee for Gunsmoke.
After losing his FFL, the defendant did not apply for or obtain a license to sell firearms from the Gunsmoke premises. Wyatt held a meeting the day before losing his license with his employees to describe how he wanted the business to continue to run. Between April 1, 2013 and March 31, 2015, no other person was licensed to engage in the business of dealing in firearms at Gunsmoke. Wyatt directed Gunsmoke employees to enter firearm sales in Gunsmoke’s computer point of sales software system as “miscellaneous” sales rather than firearm sales. Customers who shopped at Gunsmoke were able to look at numerous firearms that were displayed throughout the store. Customers were able to speak with Gunsmoke employees, including Wyatt, about the features of particular firearms. Finally, customers selected and purchased firearms from Gunsmoke and were able to have gunsmithing services performed on firearms at the Gunsmoke premises. After receiving payment for any firearms, Gunsmoke employees directed the customers to another firearm store which had a valid federal firearms license, where the customer filled out the background check paperwork and the customers took possession of the firearm(s) they had purchased at Gunsmoke. Customers who wanted gunsmithing services left their firearms with Gunsmoke. After the gunsmiths at Gunsmoke completed their work, they returned the firearms to the customers. The customers paid Gunsmoke directly for this service. Wyatt, without the FFL license, continued to order new guns for sale to keep the business going.
In addition to the alleged firearms violations, Wyatt failed to pay personal income tax in years 2009, when he made approximately $290,000, in 2010, when he made approximately $123,000, and in 2012, when he made approximately $689,000. Further, in 2010, 2011 and 2012, Wyatt failed to pay corporate taxes. In 2012, Wyatt willfully filed a tax return he knew to be false, stating that he lost money, when in fact he made at least $350,000 that he failed to disclose.
“The defendant decided the rules about guns and paying taxes didn’t apply to him,” said Acting U.S. Attorney Bob Troyer. “He now faces well deserved time for that decision.”
"The law is clear on the issue of taxable income and who is required to file and pay taxes: there is no gray area on the subject,” said Steven Osborne, Special Agent in Charge, IRS – Criminal Investigation Denver Field Office. “This conviction sends a message that IRS-CI is working to make sure all taxpayers file and pay their fair share of taxes.”
“The laws and regulations surrounding the sale of firearms exist for a reason, and no one is above the law,” said ATF Denver Field Division Special Agent in Charge Debora Livingston. “ATF is committed to ensuring every gun dealer is appropriately licensed, educated and inspected, and we will investigate those who believe the rules do not apply to them.”
This case was investigated by the ATF and IRS-CI. The defendant faces up to 5 years in prison per count for each of the two counts of conspiracy. He faces not more than 1 year per count for each tax count.
The case was prosecuted by Assistant United States Attorneys Suneeta Hazra, Peter McNeilly and Anna Edgar, with Assistant United States Attorney Tonya Andrews assisting on the asset forfeiture.
Jury Delivers Verdicts in Second Oregon Standoff TrialRead the Press Release
PORTLAND, Ore. – A federal jury today delivered its verdicts against four defendants charged with conspiracy, possession of firearms on federal property, and depredation of government property during the 41-day armed occupation of the Malheur National Wildlife Refuge.
Jurors found Jason Patrick guilty of conspiracy to impede officers of the United States and not guilty of possession of firearms and dangerous weapons in a federal facility. Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility. Duane Ehmer was found not guilty of conspiracy to impede officers of the United States and guilty of depredation of government property. Finally, Jake Ryan was found not guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in a federal facility and guilty of depredation of government property.
Co-defendants Ammon Bundy, Ryan Bundy, Shawna Cox, David Fry, Jeff Banta, Kenneth Medenbach, and Neil Wampler were previously found not guilty on all counts by a jury on October 27, 2016. Co-defendants Jason Blomgren, Brian Cavalier, Blaine Cooper, Eric Flores, Wesley Kjar, Corey Lequieu, Joseph O’Shaughnessy, Ryan Payne, Jon Ritzheimer, Geoffrey Stanek, Travis Cox, Dylan Anderson, Sandra Anderson, and Sean Anderson previously pleaded guilty. Charges against co-defendant Peter Santilli were previously dismissed.
“We are gratified that justice has been served and thank the jury for their service,” said Billy J. Williams, United States Attorney for the District of Oregon. “For forty-one days early last year, these defendants prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to the American people. They interfered with the daily lives of residents of Burns, Hines, Harney County and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day. However, their efforts to sow discord here in Oregon among residents, business owners, community leaders, and law enforcement personnel have failed,” continued U.S. Attorney Williams. “Our communities and state are stronger because of our joint effort to bring these individuals to justice and we as Oregonians can now begin to move past these unfortunate events.”
“Over a period of weeks leading up to and during the Malheur National Wildlife Refuge occupation, these defendants made choices. Now, a jury of their peers has spoken, and the consequences of those choices are quite clear,” said Loren Cannon, Special Agent in Charge of the FBI in Oregon. “The U.S. Constitution gives all of us freedoms, but it also comes with the responsibility to respect the laws of this nation. We don’t live in a perfect world, but we do live in a great country. I encourage those who want to make it even better to act in peaceful and lawful ways to inspire lasting, positive change.”
Beginning on January 2, 2016, Ammon Bundy, Ryan Bundy, and several dozen followers, seized the Malheur National Wildlife Refuge near Burns, Oregon in Harney County. For forty-one days, the armed occupiers prevented federal officials from performing their official duties at the refuge by force, threats, and intimidation. The Bundys and several other occupiers, were arrested on January 26, 2016 on U.S. Highway 395 near Burns en route to a community meeting in John Day. The occupation officially ended on February 11, 2016 when the last four occupiers turned themselves in to federal authorities.
Sentencing for each of the four defendants is scheduled for May 10, 2017. The case was investigated by the FBI and prosecuted by Geoffrey Barrow and Ethan Knight, Assistant United States Attorneys for the District of Oregon.
Jury Convicts Springfield Property Manager of FraudRead the Press Release
EUGENE, Ore. – On Thursday, March 9, 2017, a federal jury found a Springfield, Ore. property manager guilty of wire fraud and theft. Parthava Behesht Nejad, 82, was convicted of stealing approximately $150,000 in welfare benefits by concealing his use and control of rental properties worth more than $600,000. Nejad will be sentenced on June 13, 2017 before U.S. District Court Judge Ann Aiken.
Federal agents began investigating Nejad in 2013 after social workers reported that he was the landlord for numerous people receiving disability benefits. Further investigation determined that Nejad was the president of the Parthava Behesht Nejad International Foundation, which owned eight rental properties in north Springfield, and had been receiving Supplemental Security Income (SSI), food stamps, and Medicaid benefits since 2003.
For more than a decade, Nejad claimed he had no income, owned no assets, and had only one bank account containing a few hundred dollars. In reality, Nejad’s properties had been generating substantial rental income for years. Federal agents also discovered a bank account Nejad had concealed from welfare agencies that at times contained more than $30,000.
According to court records and trial testimony, Nejad acquired the properties and transferred them to his foundation prior to applying for welfare benefits in 2003. Nejad told the Internal Revenue Service (IRS) and others that his foundation, incorporated in Oregon in 1986, was a church and provided temporary housing for victims of religious persecution. In fact, Nejad had operated the properties as a rental business since the 1980s.
This case was investigated by the Social Security Administration (SSA) Office of Inspector General in partnership with the U.S. Department of Health and Human Services (HHS) Office of Investigation and the Oregon Department of Human Services. It was prosecuted by Helen Cooper and Amy Potter, Assistant United States Attorneys for the District of Oregon.
Gulf Breeze Man Indicted for Federal Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Thomas E. Matassa, 23, of Gulf Breeze, made a first appearance today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with receipt and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between January 2014 and February 2016, Matassa received child pornography. The indictment further alleges that, in February 2016, he possessed child pornography involving a minor under age 12. The defendant is currently being detained at the Santa Rosa County Jail. The detention hearing and arraignment have been scheduled for March 16, 2017, at 12:30 p.m.
The case is being investigated by the Federal Bureau of Investigation, the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Georgia Bureau of Investigation, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Gorham Man Sentenced to 12 Months and 1 Day for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Tutt, 46, of Gorham, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 12 months and 1 day in prison to be followed by 5 years of supervised release for possession of child pornography. He was also ordered to pay a $3,000 fine. The defendant pled guilty on November 29, 2016.
According to court records, law enforcement, using a peer-to-peer file sharing program, downloaded a child pornography video from the defendant’s home computer. A search warrant was subsequently obtained for the defendant’s residence. A forensic examination of the defendant’s computer was conducted and revealed several additional videos of child pornography. During an interview with law enforcement, the defendant admitted that he had actively searched for and obtained images and videos of child pornography using peer-to-peer software.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Former NGA Employee Sentenced for Taking Classified InformationRead the Press Release
ALEXANDRIA, Va. – Mohan L. Nirala, 52, of Laurel, Maryland, was sentenced today to 12 months and one day in prison for willful retention of national defense information.
Nirala pleaded guilty on Sept. 16, 2016. According to the statement of facts filed with the plea agreement, Nirala was a full-time government employee and imagery scientist at the U.S. National Geospatial-Intelligence Agency (NGA) from February 2009 to 2015. On Jan. 10, 2014, eight days after his clearances were suspended, FBI agents recovered over 20 classified documents at Nirala’s home during the execution of a federal search warrant. A review of these documents determined that they ranged in classification from Secret to Top Secret. During the search, Nirala falsely stated that he did not bring home any classified documents.
According to the statement of facts, on March 8, 2016, agents arrived at Nirala’s home to execute an arrest warrant. After Nirala failed to answer the door, agents made forced entry and found Nirala in the basement before taking him into custody. During a sweep of the basement, agents discovered a white duct-taped box underneath the basement stairs. Inside the box were over 500 pages of documents classified at Top Secret and Secret levels.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Acting Assistant Attorney General for National Security Mary B. McCord; and Gordon B. Johnson, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Ronald L. Walutes of the Eastern District of Virginia and Special Assistant U.S. Attorney Brandon L. Van Grack of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-124.
Former NGA Employee Sentenced for Taking Classified InformationRead the Press Release
Mohan L. Nirala, 52, of Laurel, Maryland, was sentenced today to 12 months and one day in prison for willful retention of national defense information.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee.
Nirala pleaded guilty on Sept. 16, 2016. According to the statement of facts filed with the plea agreement, Nirala was a full-time government employee and imagery scientist at the U.S. National Geospatial-Intelligence Agency (NGA) from February 2009 to 2015. On Jan 10, 2014, eight days after his clearances were suspended, FBI agents recovered over 20 classified documents at Nirala’s home during the execution of a federal search warrant. A review of these documents determined that they ranged in classification from Secret to Top Secret. During the search, Nirala falsely stated that he did not bring home any classified documents.
According to the statement of facts, on March 8, 2016, agents arrived at Nirala’s home to execute an arrest warrant. After Nirala failed to answer the door, agents made a forced entry and found Nirala in the basement before taking him into custody. During a sweep of the basement, agents discovered a white duct-taped box underneath the basement stairs. Inside the box were over 500 pages of documents classified at Top Secret and Secret levels.
Assistant U.S. Attorney Ronald L. Walutes of the Eastern District of Virginia and Special Assistant U.S. Attorney Brandon L. Van Grack of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former Aberdeen Doctor Sentenced in Tax CaseRead the Press Release
Heloise Westbrook, MD, of Owensboro, Kentucky, formerly of Aberdeen, South Dakota, was sentenced on March 6, 2017, on three misdemeanor charges of Fraudulent Returns, Statements, or Other Documents in U.S. District Court.
She was sentenced to five years of probation on each count to run concurrently, restitution to the Internal Revenue Service (IRS) in the amount of $184,871.21, an $8800.00 fine, and a $75 special assessment. In addition, Westbrook will be required to serve 100 days in the Daviess County Detention Center in Kentucky (2 days and 2 nights each consecutive weekend for a period of 50 weeks).
Westbrook was originally charged with one count of Impeding the Administration of the Internal Revenue Laws.
Westbrook is a medical doctor who operated a medical practice in Aberdeen, including between 2004 and 2010. Her medical practice was organized as a wholly-owned professional corporation, and she filed corporate income tax returns, in addition to personal income tax returns.
In a a civil audit, the IRS agent assigned identified numerous entries that Westbrook had identified as business expenses for purposes of her corporate tax returns and deducted them as business expenses. Her claimed business expenses were not, in fact, business related, but rather personal expenses incurred to pay for her own wedding celebration.
She pled guilty to three misdemeanor charges of Fraudulent Returns, Statements, or Other Documents on December 2, 2016.
Assistant U.S. Attorney Kevin Koliner prosecuted the case. The investigation was conducted by the Internal Revenue Service, Criminal Investigations Division.
Federal Jury Finds Fort Worth Man Guilty of Bank RobberiesRead the Press Release
FORT WORTH — Following a five-day trial before Senior U.S. District Judge Terry R. Means, a federal jury convicted Waymon Scott McLaughlin, 57, of Fort Worth, Texas, on four counts of bank robbery, announced U.S. Attorney John Parker of the Northern District of Texas.
Each of the bank robbery counts carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. McLaughlin will remain in custody pending sentencing scheduled for August 8, 2017.
The government presented evidence at trial that McLaughlin robbed the below listed locations:
May 6, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas
May 20, 2016 Woodforest Bank, 2225 W. 120, Grand Prairie, Texas
May 27, 2016 First Convenience Bank, 3510 Altamesa Blvd., Fort Worth, Texas
May 27, 2016 First Convenience Bank, 6756 W. Vickery Blvd., Fort Worth, Texas
The Federal Bureau of Investigation, the Grand Prairie Police Department, and the Fort Worth Police Department investigated the case.
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Federal Jury Convicts Methamphetamine TraffickerRead the Press Release
STATESVILLE, N.C. B A federal jury sitting in Statesville convicted Carlos Antonio Flores, age 34, of Statesville, of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession of methamphetamine with intent to distribute, following a three-day trial that ended yesterday, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
According to filed court documents and evidence presented at trial, Flores was involved in a drug trafficking conspiracy that operated mainly in Iredell, Alexander, Caldwell, Catawba, and Ashe Counties. Trial evidence established that from at least as early as April 2015 through October 30, 2015, Flores and his co-conspirators distributed more than 15 kilograms of methamphetamine, which has a street value of more than $1,500,000. According to trial evidence, law enforcement arrested Flores on October 30, 2015, when he and several co-conspirators were caught distributing more than a kilogram of 96% pure crystal “ice” methamphetamine concealed in a cat litter box.
This prosecution is part of an ongoing investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 200 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Flores has been in federal custody October 2015. At sentencing, Flores faces a statutory mandatory minimum sentence of 10 years in prison and a maximum term of life in prison, and a fine of up to $10,000,000.
The case was investigated by HSI in Charlotte, the Iredell County Sheriff’s Office, the North Carolina State Bureau of Investigation, the Alexander County Sheriff’s Office, and the Caldwell County Sheriff’s Office.
The prosecution of case is being handled by Assistant U.S. Attorneys Steven R. Kaufman and Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
El Paso, Texas, Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Fernando Gomez-Campos, 21, of El Paso, Texas, pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge.
Gomez-Campos and his co-defendants Gonzalo Montenegro-Coronel, 31, a Mexican national, and Esther Ordonez, 48, Miguel Ordonez, 23, and Reydecel Lopez-Ordonez, 22, all of Albuquerque, were charged in a 13-count indictment that was filed on Dec. 2, 2015. The indictment charged the defendants with participating in a heroin trafficking conspiracy between Nov. 2014 and Sept. 2015. The indictment also charged the defendants with distributing heroin on eight occasions between Nov. 2014 and Sept. 2015, and with using telephones to facilitate drug trafficking crimes. It also charged Esther Ordonez, Miguel Ordonez and Montenegro-Coronel with maintaining a residence for the purpose of manufacturing and distributing heroin between Nov. 2014 and Sept. 2015. According to the indictment, the defendants committed the crimes in Bernalillo County, N.M.
During today’s proceedings, Gomez-Campos pled guilty to Count 1 of the indictment charging him with participating in a heroin trafficking conspiracy. In his plea agreement, Gomez-Campos admitted that on Oct. 13, 2015, law enforcement officers found approximately 2.67 kilograms (5.89 pounds) of heroin in the trunk of the vehicle in which Gomez-Campos was a passenger. Gomez-Campos admitted that he was planning on delivering the heroin from El Paso to Albuquerque. Gomez-Campos also admitted that on April 28, 2015, he was paid to drive a similar quantity of heroin from Juarez, Mexico, to El Paso and then onto Albuquerque.
At sentencing, Gomez-Campos faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. A sentencing hearing has yet to be scheduled.
Lopez-Ordonez pled guilty on Oct. 19, 2016, to one count of distributing heroin and two counts of using a communication device to further the commission of a drug trafficking crime, and admitted using a telephone on March 19, 2015 and June 10, 2015, to arrange heroin sales. Lopez-Ordonez also admitted selling 568 grams of heroin to an undercover agent in exchange for $26,000 on July 9 and 10, 2015. Lopez-Ordonez faces a statutory minimum penalty of five years and a maximum of 40 years in prison when he is sentenced on March 30, 2017. Under the terms of his plea agreement, Lopez-Ordonez will forfeit more than $10,000 in drug proceeds to the United States; he also will forfeit his ownership interest in a residence in southwest Albuquerque.
The three remaining co-defendants have entered not guilty pleas to the indictment and are pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Drug Task Force as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The HIDTA Region I Drug Task Force is comprised of officers from the Albuquerque Police Department, Rio Rancho Police Department, Valencia County Sheriff’s Office, Pueblo of Pojoaque Tribal Police Department and DEA. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Assistant U.S. Attorneys Shaheen P. Torgoley and Stephen R. Kotz are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
El Dorado Hills Man Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Kamyar Soltani, 47, of El Dorado Hills, pleaded guilty today to tax evasion, United States Attorney Phillip A. Talbert announced.
According to court documents, Soltani attempted to evade or defeat the assessment of his tax obligations for the tax years of 2005, 2006, and 2007. Soltani worked in the used car sales industry and was well-paid for his work. In each of the tax years in question, Soltani received income subject to taxation of between approximately $229,000 and $296,000, and failed to file timely income tax returns for the tax years of 2005 and 2006. He ultimately filed tax returns for all three tax years in March 2008, but those returns were false in that they only reported income of approximately $14,000 to $18,500 in each year. As a result of his conduct and tax filings, Soltani evaded $150,446 in federal income taxes, paid no taxes for those years, and in each year received tax refunds of over $2,000 by falsely claiming that he was entitled to an Earned Income Tax Credit. In entering his guilty plea, Soltani admitted he acted willfully to evade taxes, in part, through his filing of false tax returns and by receiving his income in the form of cash and through payments made to third parties.
This case was the product of an investigation by Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Nirav K. Desai and Christopher S. Hales are prosecuting the case.
Soltani is scheduled to be sentenced by Judge Garland E. Burrell Jr. on May 26, 2017. Soltani faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Under the terms of his plea agreement, Soltani must pay just over $150,000 towards restitution prior to sentencing.
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily Injury and Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury and Assaulting, Resisting, and Impeding a Federal Officer was sentenced on March 8, 2017, by U.S. District Judge Roberto A. Lange.
Miles Condon, age 25, was sentenced to 36 months of custody on each charge to be served concurrently, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Condon was indicted by a federal grand jury on October 12, 2016. He pled guilty on December 13, 2016.
The Assault Resulting in Serious Bodily Injury conviction stems from an incident on August 3, 2016, when the victim was walking by Condon’s residence in Dupree. Condon, who had been drinking alcohol, called him over to ask him for some money. A verbal argument ensued between the two men. During the course of the argument, the victim called Condon a derogatory name, and Condon retrieved a golf club that was already outside. The victim began to back away at that point, and Condon continued to swing the golf club and struck the victim above the left ear. The blow caused a 2½” long and ½” wide gash to the victim’s skull. As Condon continued to swing, the victim reached out and grabbed the club, which caused Condon to fall to the ground. The victim left and went to his mother’s house and called the police. The victim was ultimately taken to the emergency room at the Indian Health Service Hospital and then transported to Rapid City Regional Hospital with a skull fracture. When law enforcement responded, Condon resisted arrest.
The Defendant was indicted for the assault on October 12, 2016. On October 13, 2016, law enforcement officials from the Cheyenne River Sioux Tribe and the Ziebach County Sheriff’s Office went to Condon's house in Dupree to execute the federal arrest warrant stemming from that Indictment. They were let into the home, and found Condon asleep/passed out on the floor of the residence. Condon was advised he was under arrest and handcuffed. He became belligerent and combative, and told the officers he was going to “act up.” While they were walking him to the patrol car, Condon began grinding his teeth, stiffened up, and was dragging his feet to the point where the officers had to drag him in order to move him in the direction of where their patrol cars were parked. They told Condon to relax several times. When they got to the patrol car, they leaned Condon over the trunk so they could get the back door open. Condon slammed his head down on the trunk of the patrol car twice before they were able to pull him away. The officers decided to put leg irons on Condon, and when one of the officers stepped away to open the trunk of the patrol car and retrieve the leg irons, Condon attempted to jerk away from, and struggled with another one of the officers. Condon was taken to the ground and leg irons were put on him.
Condon was transported to the Cheyenne River Adult Detention Facility to be booked into the jail. There, he became combative and belligerent with Detention staff. As they were leading him from the patrol car into the booking area, Condon again tensed up and was verbally abusive. Condon refused to cooperate as the detention officer attempted to search him. They physically placed him onto the counter of the booking area so they could finish searching Condon. Once the search was complete, Condon was taken into a holding cell. After one of the detention officers removed one of the leg restraints, Condon kicked the detention officer on the right side of his face/head, near his eye, knocking off the correctional officer’s glasses. The detention officers completed swapping out the leg restraints and then exited the holding cell.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Ziebach County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Condon was immediately turned over to the custody of the U.S. Marshals Service.
ECI Correctional Officer Pleads Guilty to Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – Correctional Officer Thomas Leimbach, age 32, of Pocomoke City, Maryland, pleaded guilty on March 9, 2017, to his participation in a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Robert B. Wemyss of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Leimbach was a Correctional Officer (CO) at ECI.
Leimbach admitted that he accepted bribes from inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Leimbach worked with other COs to smuggle contraband into the prison. On June 5, 2014, law enforcement intercepted a call from an inmate to his sister, in which they discuss whether their mother “took care of that today.” That same day, Leimbach was arrested after the inmate’s mother delivered contraband to Leimbach. Leimbach was searched and had in his possession 75 Suboxone strips and $375 in cash.
Leimbach faces a maximum sentence of 20 years in prison for the racketeering conspiracy. U.S. District Judge James K. Bredar has scheduled sentencing for Leimbach on June 29, 2017 at 10:00 a.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Dunmore Man Guilty of Stolen Identity Refund Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Diego Rojas, age 42, of Dunmore, Pennsylvania, pleaded guilty on March 7, 2017, before United States District Court Judge James M. Munley to making false claims against the government.
According to United States Attorney Bruce D. Brandler, Rojas admitted to depositing more than 350 United States tax refund treasury checks, at least 250 which were identified as fraudulent, into the check cashing company he owned and operated, Dunmore Check Cashing. Additionally, Rojas admitted that the value of the checks was more than $1.6 million. In the plea agreement, Rojas agreed to make full restitution in the amount of $1,669,864 to the Internal Revenue Service.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charge that the defendant has pled guilty to in the present case is the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. Assistant United States Attorney Evan Gotlob is prosecuting the case.
A sentencing date has not yet been scheduled.
The maximum penalty under federal law for this charge is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine plus any restitution that the court orders. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Convicted Felon Sentenced to 140 Months in Prison for Robbing Fast Food RestaurantRead the Press Release
This case is one of many brought as a result of the United States Attorney’s Office
Metro-East Armed Robbery Initiative
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Courtney P. Scott, 47, was sentenced yesterday in the United States District Court for the Southern District of Illinois to 140 months in federal prison, 5 years of supervised release, and was ordered to pay a $300 special assessment for charges stemming from an armed robbery which occurred at Jack in the Box in Swansea on March 27, 2016.
Plea and sentencing evidence showed that around 7 a.m. on March 27, 2016, Scott entered Jack in the Box in Swansea with a loaded .38 caliber revolver and demanded money from the restaurant manager. As Scott waited for the timer on the safe to expire, an employee was able to covertly call 911 for assistance. Police arrived and surrounded the restaurant as employees fled out the back door. Scott eventually surrendered to police and was taken in to custody. Scott was previously convicted of armed robbery in 2008.
The investigation was conducted by the Swansea Police Department with assistance from the Federal Bureau of Investigations and the O’Fallon Police Department. The case was prosecuted by Assistant United States Attorney Laura V. Reppert.
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Colorado Man Charged with Several Counts of Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that an Aurora, Colorado, man has been indicted by a federal grand jury for Sexual Contact by Force, Sexual Contact with a Minor, and Sexual Contact.
Isaac Padilla, age 23, was indicted on March 7, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 25, 2017, Padilla knowingly engaged in and attempted to engage in sexual contact with two women, one of them a juvenile who had not attained the age of 16 and was 4 years younger than Padilla.
The charges are merely accusations and Padilla is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Padilla was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 2, 2017.
Clay County Man Sentenced to 30 Years’ for Producing and Transporting Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Leonard Leland Walters, Jr. (45, Green Cove Springs) to 30 years in prison for production of child pornography and one count of transportation of child pornography. Following imprisonment, Walters was ordered to a lifetime term of supervised release.
According to court documents, in March 2015, Walters began communicating with an undercover law enforcement officer online, during which he bragged about having sexual intercourse with a 15-year-old on a regular basis. Walters offered to assist the undercover officer with sexually abusing the undercover’s fictitious 14-year-old “niece.” On or about March 24, 2015, Walters transmitted a photograph depicting an image of a child engaged in sexually explicit conduct. On April 27, 2015, U.S. Homeland Security Investigations and the Clay County Sheriff’s Office executed a federal search warrant at Walters’s residence in Green Cove Springs, Florida. Several electronic devices were seized and approximately 619 still images and 11 videos depicting a minor victim engaging in sexually explicit conduct, in many instances with Walters, were recovered.
"This sentence serves as a reminder of the gravity of this crime," said Susan L. McCormick, special agent in charge of HSI Tampa. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these criminals, ensuring they receive the punishment they deserve.”
This case was investigated by the Jacksonville Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
It is another case 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 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.justice.gov/psc.
Citizen of Mexico Pleads Guilty to Being in the United States After RemovalRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Presiliano Gonzalez Berruete, 53, a citizen of Mexico, pleaded guilty today in U.S. District Court to being an alien who was found in the United States after having been removed and deported from the United States. Gonzalez Berruete was indicted for that crime in February 2017.
According to court documents, on February 12, 2017, the defendant arrived at the Canada Border Services Agency in Woodstock, New Brunswick. He was refused entry to Canada and transported to the Houlton, Maine Port of Entry. A United States Custom and Border Protection (CBP) officer determined that the defendant was a citizen of Mexico and had been removed from the United States in 2010. The removal of the defendant happened after the defendant was convicted of a federal felony drug trafficking offense and had served time in prison for that offense. The defendant returned to the United States after that removal by entering the United States without inspection at a place that was not designated for entry.
The case was investigated by United States Customs and Border Protection, Department of Homeland Security.
CA, Inc. to Pay $45 Million for Alleged False Claims on Government-Wide Information Technology ContractRead the Press Release
WASHINGTON – CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today. CA is an information technology management software and services company headquartered in New York, New York.
“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items.”
“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our federal partners, we will zealously press such claims in court to recover what is owed to the American taxpayer.”
The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services. Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services. The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved.
This settlement resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, the agreement resolves claims that CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.
“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”
The allegations against CA were first made in a whistleblower lawsuit filed under the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD. Under the False Claims Act, private individuals can sue on behalf of the government and share in any recovery. The False Claims Act also allows the government to intervene and take over the action, as it did, in part, in this case. Shemesh’s share of the settlement is $10.195 million.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the GSA Office of Inspector General.
The lawsuit is captioned United States ex rel. Shemesh v. CA, Inc., No. 09-1600 (D.D.C.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
CA Inc. to Pay $45 Million for Alleged False Claims on Government-Wide Information Technology ContractRead the Press Release
CA Inc. (CA) has agreed to pay $45 million to resolve allegations under the False Claims Act that it made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract, the Department of Justice announced today. CA is an information technology management software and services company headquartered in New York, New York.
“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items.”
The settlement resolves allegations related to a GSA contract awarded to CA for software licenses and maintenance services. Under Multiple Award Schedule (MAS) contracts like this one, GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. At the time of CA’s contract, contractors were required to fully and accurately disclose to GSA how they conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government agencies using the GSA contract to purchase CA products and services. The contract also contained a price reduction clause that set forth when the contractor had to reduce the prices it charged to the government if its prices to commercial customers improved.
This settlement resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, the agreement resolves claims that CA provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.
“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our federal partners, we will zealously press such claims in court to recover what is owed to the American taxpayer.”
“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”
The allegations against CA were first made in a whistleblower lawsuit filed under the False Claims Act by Dani Shemesh, a former employee of CA Software Israel LTD. Under the False Claims Act, private individuals can sue on behalf of the government and share in any recovery. The False Claims Act also allows the government to intervene and take over the action, as it did, in part, in this case. Shemesh’s share of the settlement is $10.195 million.
This case was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the GSA Office of Inspector General.
The lawsuit is captioned United States ex rel. Shemesh v. CA, Inc., No. 09-1600 (D.D.C.) The claims resolved by the settlement are allegations only; there has been no determination of liability.
Brooklyn, New York Resident Sentenced to over Five Years in Prison for Credit Card Fraud Scheme Spanning Eight StatesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Odere Suleitopa, age 33, a Nigerian national residing in Brooklyn, New York, today to 63 months in prison, followed by three years of supervised release, for 18 counts of wire fraud and five counts of aggravated identity theft arising from a three-year credit card fraud scheme. A federal jury convicted Suleitopa on October 27, 2016, after a four-day trial. Judge Motz entered an order requiring Suleitopa to pay restitution of $140,000, and to forfeit over $1,000 and cellular telephones seized during the investigation.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Easton Police Department Chief David A. Spencer; and Talbot County State’s Attorney Scott G. Patterson.
According to the evidence presented at his four day trial, Suleitopa obtained credit cards with his name embossed on them, but with the account numbers that had been stolen. The magnetic strip on the fraudulent cards were disabled. Suleitopa went to retail stores and used the fraudulent cards to purchase gift cards and merchandise. The evidence showed that on October 29, 2015, Suleitopa completed three fraudulent transactions in Alexandria, Virginia, totaling $5,814.08. Between November 9 and November 17, 2015, the evidence showed that Suleitopa completed 26 transactions using the fraudulent credit cards – eight in Delaware, and 18 in Easton and Denton, Maryland. The total purchases were over $44,000.
On December 23, 2015, Suleitopa made over $4,000 of purchases of high end electronics and gift cards at a retail store in in Gardner, Massachusetts, using the fraudulent credit cards. He was arrested on January 13, 2016, after returning to the same store and attempting to make additional purchases with the fraudulent cards.
Over the course of the scheme, which spanned eight states from New Hampshire to Georgia, more than 15 victims had their credit card accounts compromised and losses were in excess of $190,000.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the Easton Police Department, and Talbot County State’s Attorney’s Office for their work in the investigation, and recognized the Gardner, Massachusetts Police Department, the Spartanburg County and Berkeley County (South Carolina) Sheriff’s Offices, and the Summerville, South Carolina Police Department for their assistance in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Menaka Kalaskar, who prosecuted the case.
Armed Drug Dealer from East Bay Sentenced to over Eight Years in PrisonRead the Press Release
OAKLAND – Ricky Keith Barnette was sentenced today to one hundred months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Barnette, 34, of Antioch, pleaded guilty on November 10, 2016, to one count of possession with intent to distribute methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1). According to his plea agreement, Barnette admitted that on January 8, 2016, he was driving a stolen BMW in Antioch, Calif., while in possession of more than 167 grams of methamphetamine for sale and a stolen 9mm Ruger LC9 pistol loaded with eight rounds of ammunition. Officers from the Antioch Police Department attempted to pull Barnette over but he drove onto the off-ramp of Highway 4 and sped westbound in the eastbound lanes of the highway. While driving the wrong direction on the highway, Barnette collided head-on with another vehicle and caused great bodily injury to the other driver.
Barnette was charged in an information with one count of possession with intent to distribute methamphetamine. Pursuant to his plea agreement, Barnette pleaded guilty to the charge.
The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge. In addition to the prison term, Judge Tigar also ordered Barnette to serve a five-year period of supervised release and ordered him to forfeit the firearm and $1,760, that Barnette admitted was the proceeds of his drug trafficking. Barnette is in custody and will begin serving the sentence immediately.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Antioch Police Department, and the Contra Costa County Safe Streets Task Force.
9 March 2017
Youngstown man sentenced to 30 years in prison for firearms and drug crimes, including selling heroin that resulted in a fatal overdoseRead the Press Release
A Youngstown man was sentenced to 30 years in prison for firearms and narcotics violations, including selling heroin that resulted in a fatal overdose, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lebron Charles Bunkley, 38, was found guilty of last year of charges including distribution of heroin, cocaine and crack cocaine as well as being a felon in possession of a firearm.
On May 14, 2016 in Youngstown, a person fatally overdosed on heroin sold by Bunkley, according to court documents.
“This defendant has a long history with firearms and drugs, and sending him to prison for decades will make the community a safer place,” Rendon said.
“Drug abuse and gun violence are a type of cancer,” said Trevor Velinor, Special Agent in Charge of ATF’s Columbus Field Division. “ATF is proud to work with our law enforcement partners at the FBI and the Mahoning Valley Law Enforcement Task Force to ensure that individuals who threaten the health of our community are held accountable and prevented from causing further harm.”
The investigation preceding the indictment was conducted by the Mahoning Valley Law Enforcement Task Force, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
White Horse Man Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a White Horse, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on March 7, 2017, by U.S. District Judge Roberto A. Lange.
Shawn Traversie, age 32, was sentenced to 5 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on February 17, 2016. He pled guilty on December 12, 2016.
The conviction stems from an incident on December 10, 2015, when Traversie and the victim began to argue. Traversie struck the victim’s right eye with his fist. The victim saw flashes of light from the blow and was knocked off the bed and onto the floor. When the victim was still on the floor, Traversie stuck her a couple of more times on the top of the head. The victim felt that her eye socket might have some damage. In the days following the assault, she continued having headaches and felt nauseated, dizzy, and lost her balance when she stood. The victim had a non-acute fracture to a small bone in the right eye socket.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
West Haven Man Charged with Carjacking OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DON MEEKER, 30, of West Haven, was arrested today on an indictment charging him with a carjacking offense.
A federal grand jury in New Haven returned an indictment yesterday alleging that, on January 1, 2016, MEEKER used threats of violence to steal a 2015 Volkswagon Passat from two victims in Meriden.
After his arrest, MEEKER appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and was ordered detained.
The indictment charges MEEKER with one count, of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years.
Elbert Llorens and Kyle Valentine, both of New Haven, previously pleaded guilty to charges related to their roles in this carjacking. Both are detained and await sentencing.
As to MEEKER, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford, New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Waterbury Man Pleads Guilty to Distributing Heroin to Overdose VictimRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AURELLE HUCKABEE, 22, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of distribution of heroin. This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in the early morning of July 7, 2016, Naugatuck Police and emergency medical personnel responded to a Naugatuck residence on a report of a suspected overdose. The victim, a 31-year-old male, was transported to the hospital where he was pronounced deceased. Investigators seized two bags of suspected heroin and/or fentanyl, as well as the victim’s cellphone, from the scene.
The Office of the Chief Medical Examiner subsequently determined that the victim died as a result of “acute fentanyl intoxication.”
The victim’s cellphone contained hundreds of text messages between the victim and HUCKABEE. The text messages revealed that HUCKABEE regularly supplied heroin to the victim in the weeks preceding the victim’s death.
HUCKABEE has been detained since his arrest on January 4, 2017.
Judge Thompson scheduled sentencing for June 1, 2017, at which time HUCKABEE faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Naugatuck Police Department, with support and assistance of the Middlesex State’s Attorney’s Office. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Patrick F. Caruso.
Wallingford Man Sentenced to More Than 5 Years in Federal Prison for Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH A. CASTELLANO, 59, of Wallingford, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 68 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded individuals of more than $1.4 million.
According to court documents and statements made in court, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
Beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including for international travel. He also used some of the invested funds to make phony “interest” payments to other victim-investors.
During the scheme, CASTELLANO made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, CASTELLANO defrauded 18 victim-investors of a total of $1,447,151. Multiple victims lost most of their retirement savings.
CASTELLANO was arrested on April 6, 2016. On September 16, 2016, he pleaded guilty to one count of mail fraud and one count of money laundering.
CASTELLANO, who had been released on a $250,000 bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
VA Psychiatrist Charged with Fraud and Money LauderingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Xingjia Cui, 52, of Pittsford, NY, was arrested and charged by criminal complaint with health care fraud, money laundering and tax fraud. The charges carry a maximum sentence of 20 years in prison and a fine of $500,000.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, the defendant is employed full-time by the Canandaigua Veterans Administration Medical Center. In addition, Dr. Cui also maintains a private practice in Canandaigua, NY.
According to the complaint, the investigation began when the FBI was advised by the Ontario County Sheriff’s Office of a suspicious jailhouse telephone conversation regarding Dr. Cui and his drug prescribing habits. During the call, an inmate stated that the defendant prescribed controlled substances to area drug users without medical examinations.
An analysis of billing records from multiple private health insurance companies showed that Dr. Cui claimed to be spending from 10 to 17 hours per weekend day providing individual therapy sessions through his private medical practice. However, video surveillance on multiple days over several months, showed multiple people visiting the defendant’s private practice on evenings and weekends but a vast majority stayed very briefly, and not long enough for Dr. Cui to provide basic medical services which is needed to support the matters being billed.
Subsequently, an undercover FBI agent posed as a patient on five occasions with Dr. Cui. The undercover agent paid cash at each visit, with the first visit costing $300 and the following visits costing $100. The first visit lasted approximately 23 minutes with the defendant asking the undercover agent several questions including family history and drug use but at no point did Dr. Cui conduct a physical examination or request a urine toxicology. The other four visits lasted between five and nine minutes.The records of 30 of Dr. Cui’s patients with health insurance were obtained and a thorough review determined that, in the majority of instances, the defendant improperly billed the health care benefit programs for services that he did not provide.
For example, Sample Patient 1 (“SP1”), with insurance through Excellus, was seen by Dr. Cui between December 2014 and November 2015 for a total of 29 appointments. SP1 was interviewed by law enforcement officers and stated that his initial appointment with the defendant lasted approximately 20 minutes, but each subsequent appointment with Dr. Cui lasted less than five minutes. In addition, SP1 stated that he could not recall Dr. Cui performing a physical examination or taking a medical history, and that his appointments only consisted of Dr. Cui asking him if the medication was working. SP1 stated that the appointments were basically to pick up his prescription, and that no counseling or therapy was provided. SP1 indicated that he did not have a co-payment associated with his treatments, but that after five or six appointments, Dr. Cui informed him because he (Dr. Cui) was a smaller medical provider, he was “picked on” by the insurance companies, and would now have to charge SP1 $60 for his appointments. SP1 was not aware if Dr. Cui continued to bill Excellus for his appointments after he started paying Dr. Cui $60.00 cash for the visits. Based on a review of the records submitted by Dr. Cui to Excellus, it is alleged that the defendant defrauded the health insurance program by improperly billing for services he did not render, and by double billing the patient and the health insurance program for the same services.
The investigation determined that approximately 61% of Dr. Cui’s claims reimbursed by Excellus were fraudulent, totaling approximately $198,820.38. According to the complaint, Dr. Cui deposited the health care fraud proceeds into multiple personal accounts at Chase Bank and then transferred some of this money into a TD Ameritrade account. In addition, payments from other health insurance providers and large amounts of cash were also deposited, much of which likely pertains to co-payments or the full cost of an office visit paid out-of-pocket in cash by patients. This cash was not deposited along with checks into the Chase account as one would typically expect for a medical doctor’s private practice. Instead, the cash was deposited typically in $5,000 or $10,000 increments at a time.
Interviews were conducted with Chase Bank employees who were familiar with Dr. Cui. One employee recalled on one occasion Dr. Cui deposited exactly $10,000. The employee believed this was an attempt to avoid the currency reporting requirements. The employee recalled that Dr. Cui would come in week after week with large amounts of cash, mostly in $20 bills.
From approximately May 6, 2011, to March 30, 2015, Dr. Cui knowingly and willfully prepared, signed, and submitted false forms for the tax years 2010 to 2014. The defendant failed to report at least $381,447 of known income from his medical practice.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Jonathan W. Feldman and was released. Dr. Cui is due back in court on May 24, 2017 at 9:30 a.m.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Internal Revenue Service, Criminal Investigations Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office; the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo; the New York State Medicaid Fraud Control Unit, under the direction of William Falk; and the Ontario County Sheriff's Office, under the direction of Sheriff Philip Povero.
Two Inland Empire Men Charged with Operating Residential Drug Lab Where Butane Used to Extract Marijuana’s THC ExplodedRead the Press Release
RIVERSIDE, California – Two men who were allegedly operating a “honey oil” lab in Cherry Valley when it exploded and severely burned one of them now face federal charges of operating an illegal drug manufacturing facility.
Hector Gallegos, 34, of San Jacinto, surrendered to authorities yesterday and made his initial court appearance.
The second defendant in the case – James Ray Wallis III, 34, of Cherry Valley – is currently a fugitive who is being sought by authorities.
The two defendants were named in a criminal complaint filed last Friday that charges both men with endangering human life while illegally manufacturing a controlled substance, a federal felony offense that carries a statutory maximum sentence of 10 years in prison.
Wallis and Gallegos allegedly operated a clandestine laboratory where they used butane to extract tetrahydrocannabinol (THC) from marijuana. The resulting product is commonly called honey oil or hash oil, and it contains a much higher percentage of THC than found in traditional marijuana products.
During the early morning hours of February 16, Riverside County fire authorities were summoned to a house fire on Dutton Street in Cherry Valley, just north of Beaumont. CAL FIRE personnel were unable to combat the fire immediately because several 20-ounce butane canisters – which are commonly used in THC extraction labs – were exploding inside the residence, according to the affidavit in support of the criminal complaint.
After the fire was extinguished, Riverside County Sheriff’s Department personnel searched the property and “discovered several black plastic bins containing marijuana, over 1,000 20-ounce butane canisters, extracted THC spread out on wax paper sheets and contained within six small glass jars, a small indoor marijuana grow located in the basement of the residence, a partially burned PVC extraction tube loaded with marijuana, two handguns and three rifles,” according to the complaint.
Authorities soon learned that Wallis lived at the residence and was seen by neighbors soon after the fire erupted. Wallis’ 10-year-old child was inside the house when the explosion occurred, but the child was not harmed by the explosion or subsequent fire.
“Using butane to extract the psychoactive agent in marijuana is not only illegal – it is an extremely dangerous process,” said United States Attorney Eileen M. Decker. “One of the defendants in this case was seriously injured and a small child barely escaped injury. Unfortunately, we are seeing an increase in the number of explosions at household laboratories, which endangers neighborhoods, as well as first responders.”
Wallis fled the scene after the fire, and he remains a fugitive. Gallegos, who also fled the scene after the explosion, was discovered later in the day at Loma Linda Hospital. Gallegos had suffered third-degree burns over 50 percent of his body. Gallegos recently was released from the hospital, and he surrendered himself yesterday.
“As evidenced in this case, clandestine drug manufacturing labs are extremely hazardous and pose a serious threat of bodily injury – or even death – to would-be operators, as well as innocent bystanders,” said DEA Special Agent in Charge Steve Comer. “Fortunately, the child was unharmed and the individuals who put themselves and the entire neighborhood at risk have been removed from the community.”
At his initial appearance yesterday afternoon in United States District Court, Gallegos was freed on a $50,000 bond and was ordered to return to court for a preliminary hearing on March 29 and an arraignment on April 5.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the clandestine lab was conducted by the Drug Enforcement Administration and the Riverside County Sheriff’s Department, Special Investigation Bureau, Marijuana Enforcement Team.
This case is being prosecuted by Assistant United States Attorney Tritia L. Yuen of the Riverside Branch Office.
Two Convicted Felons from Chicago Area Sentenced to Prison on Federal Firearm OffensesRead the Press Release
CHICAGO — Two convicted felons from the Chicago area were sentenced to federal prison terms today for illegally possessing semiautomatic weapons.
THADDEUS JIMENEZ, 38, of Des Plaines, was sentenced to nine years and two months for illegally possessing a loaded .380-caliber semiautomatic pistol. Jimenez admitted in a plea agreement that he used the gun to shoot a man once in each leg. The shooting occurred on Aug. 17, 2015, in the 3500 block of West Belle Plaine Avenue in the Irving Park neighborhood of Chicago.
At the time of the shooting Jimenez was sitting in the driver’s seat of his Mercedes convertible, and in the passenger seat was JOSE ROMAN, 24, of Chicago. Roman was armed with a loaded .22-caliber semiautomatic rifle. After the shooting Jimenez and Roman sped off, but Chicago Police officers apprehended them nearby. The wounded man survived.
Roman was sentenced to seven years and one month for illegally possessing the rifle. Both Jimenez and Roman had previously been convicted of a felony.
U.S. District Judge Harry D. Leinenweber imposed the sentences in federal court in Chicago.
The sentencings were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department. The Cook County Sheriff’s Office provided valuable assistance.
The government is represented by Assistant U.S. Attorneys Kathryn Malizia and Michelle Petersen.