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9 March 2017
Two Broward County Residents Indicted on Federal Explosives ChargesRead the Press Release
Two Broward County residents were indicted on federal explosives charges.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Bruce McFadden Sr., 50, of Lauderdale Lakes, and Bruce McFadden Jr., 33, of Fort Lauderdale, were charged by Indictment with receiving explosive materials, in violation of Title 18, United States Code, Section 842(a)(3)(A), and improper storage of explosives, in violation of Title 18, United States Code, Section 842(j). Bruce McFadden Sr. was also charged with being a felon in possession of explosives, in violation of Title 18, United States Code, Section 842(i)(1).
According to the court record, including allegations contained in the indictment, on or about June 30, 2016, in Broward County, Bruce McFadden Sr. and Bruce McFadden Jr. did knowingly cause to be transported and receive, and did knowingly store explosives, that is, 1.3G fireworks containing black powder, flash powder, a safety fuse, perchlorate explosive mixtures, pyrotechnic compositions, without the required license and permit and not in conformity with regulations. McFadden Sr. was previously convicted of a felony and as such was not lawfully permitted to possess the explosives.
The defendants had their initial appearances today before U.S. Magistrate Judge Patrick M. Hunt. McFadden Sr. is scheduled to have a pre-trial detention hearing on March 14, 2017. McFadden Jr. is scheduled for a bond hearing on March 10, 2017.
An Indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commended the investigative efforts of the ATF in this matter. Mr. Greenberg also thanked the Lauderhill Fire Department, Lauderhill Police Department and Broward County Sheriff’s Office for their assistance. The case is being prosecuted by Assistant U.S. Attorney Rilwan Adeduntan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Agents from Puerto Rico Treasury Department (“Hacienda”) Arrested for Accepting Bribes and ExtortionRead the Press Release
SAN JUAN, P.R. – On March 2, 2017, a Federal grand jury returned a two-count indictment against two agents from the Puerto Rico Treasury Department, (“Hacienda”) charging them with one count of extortion and one count of accepting bribes in their role as agents for the Puerto Rico Treasury Department, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Federal Bureau of Investigation.
The indictment alleges that on June 10, 2015, the defendants Edwin Aponte-Hernández and Eduardo Collazo-Torres, did obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion in that the defendants obtained property not due them or Hacienda under the color of official right. The bribes received were related to the regulation and licensure of adult entertainment machines within several businesses located in San Juan.
The defendants are also charged with accepting bribes in excess of $5,000.00 during the period of January through December 2015, intending to be influenced and rewarded in connection with a series of transactions on behalf of Hacienda. The defendants were arrested March 9, 2017.
“Abusing one’s position as a public servant for personal gain is a breach of trust and a violation of the oath that every government employee takes,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue working together with our law enforcement partners to ensure that those who engage in corrupt activities are brought to justice.”
“The honor of public service brings with it the duty to find and remove those public servants who abuse their power to serve their own selfish ends,” said Douglas Leff, FBI Special Agent in Charge. “From the moment he took office, Secretary Maldonado Gautier reaffirmed Hacienda's commitment to this effort, which led to today’s actions on behalf of the honest citizens of Puerto Rico”.
“We worked closely with the Federal authorities during the course of this investigation. We are not going to stop until we get rid of those who betray the public trust,” stated Lcdo. Raúl Maldonado Gautier, CPA, Director of the Puerto Rico Treasury Department. “Our commitment is to maintain transparency on our administration and to collaborate in every necessary way to preserve the integrity of the Department of the Treasury and to recover the credibility of the people of Puerto Rico.”
The case is being prosecuted by Assistant U.S. Attorney Nicholas W. Cannon. The case was investigated by the FBI, with the collaboration of the PR Treasury Department.
If convicted the defendants face a sentence of 20 years of imprisonment. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Twenty-two indicted for trafficking heroin and cocaine in ToledoRead the Press Release
Twenty-two people indicted for their roles in a conspiracy to traffic large amounts of heroin and cocaine in Toledo, law enforcement officials said.
Named in the 72-count indictment are: Gary R. Hill, Sr., 62, of Lathrup Village, Michigan; Tyrone Watson, 45, of Sylvania; Keith Cooke, 51, of Southfield, Michigan; Leroy L. Hooker, 47; Larry E. Stewart, 50; Andre Anderson, 47; Andre Arthur, 38; Anthony Ballard, 24; Ivan Ballard, 26; James Bragg, Sr., 43; Dominique Brown, 25; Keith Chisholm, 38; Vincent Cooke, 69;, Dennis Garrett, 26; Victor Hardison, 57; Dorian Hooker, 42; Robert Jackson, 41; Cedrick Smith, 25; Damond Smith, 26; Marcus Stephens, 37; Jerome Toyer, 46, and Demond Washington, 36, all of Toledo.
All 22 defendants are charged with conspiracy to possess with intent to distribute heroin and cocaine. The indictment details large shipments of heroin, including a December 2, 2016 sale of nearly seven kilograms of cocaine and nearly four kilograms of heroin, according to the indictment.
The defendants worked together to bring kilogram-level amounts of heroin and cocaine from the Detroit area and sell the drugs in and around Toledo. This took place between from 2012 through this year, according to the indictment.
Hill, Leroy Hooker and Keith Cooke recruited friends and relatives in Toledo to distribute heroin and cocaine. Hill and others in Detroit and Toledo supplied Hooker and Keith Cooke with drugs. Stewart and Brown drove between Detroit and Toledo transporting drugs and money on behalf of Hill, Leroy Hooker and Keith Cooke, according to the indictment.
Some of the defendants used residences in Toledo to store and distribute the heroin and cocaine, including locations on Rockingham Street, Barrows Street, Ogden Avenue, West Delaware Avenue, Bryant Court and Nantucket Drive, as well as locations in Southfield, Lathrup and Detroit, Michigan, according to the indictment.
Several of the defendants are charged with distribution of heroin for sales that took place between 2012 and 2016. Leroy Hooker, Demond Washington and Chisholm face additional charges for having guns despite felony convictions that prohibit them from possessing firearms, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers,” said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio. “Aggressive enforcement, coupled with increased access to treatment for those who want help, changes in prescribing practices and more education are all required to combat the opioid epidemic that his devastated our state.”
“Unfortunately, heroin and cocaine continue to plague our communities,” FBI Special Agent in Charge Stephen D. Anthony said. “Law enforcement will hold these individuals, and any others, that bring illegal narcotics to our streets accountable in a court of law.”
“We are very happy with the results of this investigation,” said Toledo Police Chief George Kral. “Detecting, investigating, and charging these drug trafficking groups, and working diligently in keeping Toledo’s streets free of this poison is and will always be a priority of mine. These results also show the high level of cooperation and interaction we enjoy with our federal, local, and state law enforcement partners.”
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigating by the Federal Bureau of Investigation and Toledo Metro Drug Task Force, which is comprised of personnel from the Toledo Police Department, FBI, ATF, and Lucas County Sheriff's Office. It is being prosecuted by Assistant U.S. Attorneys Thomas P. Weldon and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Indicted Related to Stolen FirearmsRead the Press Release
SOUTH BEND – The United States Attorney for the Northern District of Indiana, David Capp, announced 2 separate indictments charging three individuals for involvement in the movement of stolen firearms in Fulton and Wabash Counties. Named in the indictments are:
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Indictment One
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Robert M. Hoy, 21, of North Manchester, Indiana
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One count of stealing firearms from a Federal Firearms Licensee (FFL)
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Jose Rogelio Vera-Diaz aka Rogelio Diaz, 21, of Mexico
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One count of stealing firearms from a FFL
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Indictment Two
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Charles M. Hammer, 30, of North Manchester, Indiana
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One count of felon in possession of a firearm
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According to documents in this case, on November 20, 2016, Hoy and Diaz stole one or more firearms from the Sand Burr Gun Ranch, which is licensed to engage in the business of importing, manufacturing, or dealing in firearms. In November and December of 2016, Hammer possessed a firearm after having previously been convicted of a felony offense.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in coordination with the Fulton County Sheriff’s Department, the North Manchester Police Department and the Wabash County Sheriff’s Department. This case is being handled by Assistant United States Attorney Molly E. Donnelly.
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Texas Woman Found Guilty of Murder-For-Hire Plot to Kill Trial WitnessesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Priscilla Ann Ellis (52, Killeen, TX) guilty of murder-for-hire, retaliating against witnesses, and conspiring to create counterfeit securities. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been scheduled.
Ellis was first indicted on November 22, 2016, on charges of witness retaliation and murder-for-hire. A superseding indictment was filed on January 17, 2017, adding the counterfeit security conspiracy charge.
According to evidence presented at trial, on October 21, 2016, Ellis and two co-defendants were convicted at trial of conspiracies to commit international money laundering and mail and wire fraud. They were remanded to custody at the Pinellas County Jail. Over the next 48 hours, Ellis solicited other inmates to assist her in finding a hitman to murder several witnesses who had testified for the government during the trial. She then “hired” an undercover FBI agent posing as the hitman to murder one trial witness and to kill the mother of another in retaliation for the witnesses’ testimony. On October 28, 2016, a family member acting at Ellis’s direction provided a down payment on the murder contracts to the undercover agent posing as the hitman in Texas, with the remainder to be paid only after the intended victims were killed.
As the murder-for-hire plot unfolded, Ellis conspired with a Nigerian-based counterfeiter to create counterfeit cashiers’ check images, steal bank customer data to open new bank accounts, and email the counterfeit check images to conspirators in the United States to print and cash or deposit into the new accounts. From there, the illicit funds were to be wired into other accounts controlled by the conspirators or distributed as cash. The scheme was devised, in part, to pay for the two contract murders. The intended loss of the scheme was several million dollars.
This case was investigated by the Federal Bureau of Investigation and the City of Austin (Texas) Police Department. It is being prosecuted by Assistant United States Attorneys Eric K. Gerard and Patrick Scruggs, who also tried the case last October.
Tampa Man Pleads Guilty to Selling Stolen IdentitiesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Jordan Tito (23, Tampa) has pleaded guilty to aggravated identity theft. He faces a mandatory penalty of two years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in September 2016, a cooperating informant (CI) told investigators that Tito offered to sell him stolen identities for $10 each. The identities that Tito offered included names, dates of birth, and social security numbers, that the CI could use to make counterfeit credit cards and fake ID’s, and otherwise access the victims’ credit. In September 2016, Tito met with the CI and sold him approximately 86 stolen identities each printed on a separate sheet of paper. Each of the documents included the name, address, date of birth, and social security number of an identity theft victim. Of the 86 stolen identities, 29 were children.
This case was investigated by the U.S. Secret Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Syracuse Man Sentenced for Possession of a Handgun by a Convicted FelonRead the Press Release
SYRACUSE, NEW YORK - Ricardo Davis, 28, of Syracuse, New York, was sentenced yesterday to serve 110 months (9 years and two months) in prison for his possession of a firearm by a convicted felon, announced United States Attorney Richard S. Hartunian. Davis had previously admitted that he fired the firearm, a semiautomatic 9 mm pistol, in connection with a dispute with another man in Syracuse. Units of the Syracuse Police Department responded to a report of “shots fired” and arrested Davis after a short foot chase. Davis’s prior criminal record includes three (3) previous drug related felony level convictions. Chief United States District Judge Glenn T. Suddaby, who imposed sentence, ordered that Davis’s term of incarceration is to be served in addition to his current state prison sentence for a parole violation. As part of his sentence, Davis will also serve a term of three (3) years of supervised release following his federal prison sentence. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Spencer woman pleads guilty to credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Spencer woman pleaded guilty today to credit card fraud, announced United States Attorney Carol Casto. Rhonda Kelley Conrad, 49, faces up to 10 years in federal prison, a fine of up to $250,000, and, as part of her plea agreement, $10,301.70 in restitution to the United Way of Central West Virginia.
Conrad admitted that while she worked for the United Way of Central West Virginia in Charleston, she took a number of company credit cards and fraudulently charged goods and services for herself. From June to December of 2014, she admitted that she charged more than $6,000 in goods and services that she was not entitled to receive. Conrad further admitted that she used the credit cards to pay bills and to charge goods at stores such as Kmart and Sam’s Club. Additionally, Conrad admitted that she set up false accounts within the United Way electronic payment system. Conrad used these false accounts to fraudulently transfer more than $4,000 to her personal bank account. Conrad admitted that she had no authorization to use the credit cards or to electronically transfer the money from the United Way. Conrad’s sentencing is scheduled for June 1, 2017.
“There is not much more despicable than theft from organizations established to take care of folks who can’t take care of themselves. Stealing from a charity is a serious crime that carries significant consequences,” stated United States Attorney Carol Casto. “We will continue working with our law enforcement partners to make sure these offenders are held accountable.”
The Federal Bureau of Investigation and the Charleston Police Department conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Joseph R. Goodwin is presiding over the case.
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South Texas HPL Gang Members and Associates Indicted for Firearms and Drug TraffickingRead the Press Release
CORPUS CHRISTI, Texas – A total of 10 individuals and associates of the Hermandad de Pistoleros Latinos (HPL) gang are in custody following a coordinated round-up in multiple jurisdictions, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas (SDTX) and U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas (WDTX).
This three-year investigation focused on drug trafficking and members of the HPL and their associates in the Corpus Christi, Houston and San Antonio areas.
Taken into custody today as a result of indictments returned last week in Corpus Christi include HPL Lieutenant Pacino San Miguel aka “Abuelo,” 40, of Houston; HPL Lieutenant Jacob Gonzales aka “Orbit,” 27, Mario Alberto Ramirez, 30, HPL Lieutenant Oscar Pena aka “OP,” 55, Leroy Rocha aka “Tank,” 26, and Dorothy Babette Cuello aka “Tiny,” 55, all of Corpus Christi. With the exception of San Miguel who is expected to appear in Houston tomorrow morning, all of the defendants made their initial appearance in Corpus Christi today and were temporarily ordered into custody pending detentions hearings next week.
Miguel, Gonzales, Ramirez and Rocha are all charged with conspiracy to distribute methamphetamine, while Pena, and Cuello are charged with conspiracy to distribute heroin.
Also arrested today were HPL Lieutenant Ricardo Aguilar aka “Indio,” 38, Stephanie Pacheco, 31, Jesse Mendoza aka “Chivo,” 42, all of San Antonio. A federal grand jury in San Antonio indicted all three for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Also charged in this case is Robert Hewitty aka “Looney,” 36, who was already in custody. He is charged with being a felon in possession of a firearm, possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime.
Aguilar, Pacheco, and Hewitty all face a minimum of 10 years and up to life in federal prison based on the amount of methamphetamine involved in the conspiracy, while Mendoza faces between five years and 40 years in federal prison. If convicted of their charges, the defendants charged in the SDTX face a 20-year-maximum term of imprisonment.
The Texas Department of Public Safety - Criminal Investigations Division and the FBI conducted the investigation together with police departments in San Antonio, Corpus Christi, Houston and Pasadena; Texas Department of Criminal Justice - Office of Inspector General; Harris County Sheriff’s Office; and the Bexar County District Attorney’s Office. Assistant U.S. Attorney (AUSA) Jeff Miller is prosecuting the SDTX case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
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Sioux Falls Man Sentenced for Possession of Unregistered FirearmsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Possession of Unregistered Firearms was sentenced on March 6, 2017, by U.S. District Judge Karen E. Schreier.
Darren Stepp-Zafft, age 30, was sentenced to 37 months in custody, followed by 3 years of supervised release. He was also ordered to pay $300 to the Federal Crime Victims Fund.
Stepp-Zafft was indicted for Possession of Unregistered Firearms by a federal grand jury on May 10, 2016. He pled not guilty on May 23, 2016.
On December 10, 2015, law enforcement officers searched Stepp-Zafft’s Sioux Falls residence looking for evidence of a firearm that discharged into an adjoining neighbor’s apartment. During the search, officers found the defendant to be in possession of two illegal firearm silencers, five illegal short rifles, and nine illegal destructive devices that could be readily assembled into grenades. Zafft went to trial and the jury convicted him of all counts.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the Sioux Falls Police Department, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Stepp-Zafft was immediately turned over to the custody of the U.S. Marshals Service.
Silver Spring, Maryland Man Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
An Indictment[1] was returned today charging Larry Joseph Wolfe, 48, of Silver Spring, Maryland with one count of bank fraud and one count of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Wolfe posed as an account holder at Beneficial Bank by using the account holder’s means of identification and a false driver’s license in the account holder’s name but containing Wolfe’s photograph to withdraw $424,000 in the form of cashier’s checks from accounts controlled by the account holder, then deposited several of the checks into a Mount Airy Casino account in the name of a person who Wolfe also impersonated, and then withdrew the money in cash from the Mount Airy Casino account.
Wolfe faces a maximum sentence of 32 years’ imprisonment, including a mandatory two-year term of imprisonment, a five-year period of supervised release, a $1,250,000 fine, and an $200 special assessment and restitution of $424,000.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Sentencings for March 7 - March 9, 2017Read the Press Release
Mark Anthony Avery, 53, of Buffalo Gap, Texas, was sentenced by Federal District Court Judge Alan B. Johnson on March 9, 2017, for conspiracy to distribute less than 50 grams of methamphetamine. Avery received 71 months and 21 days of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $400.00 in restitution. This case was investigated by the Cheyenne Police Department.
Leif Bjorn Jourgensen, 31, of Mancos, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on March 9, 2017, for travel with intent to engage in illicit sexual conduct. Jourgensen was arrested in Fort Collins, Colorado. He received 84 months of imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jerry Ray Queen, 30, of Los Angeles, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 8, 2017, for possession of firearm with obliterated serial number. Queen was arrested in Lander, Wyoming. He received 31 month of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Maureen Hall, 59, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 7, 2017, for credit union embezzlement. Hall appeared pursuant to a summons. She received three years of supervised release and was ordered to pay a $100.00 special assessment and $5,180.63 in restitution. This case was investigated by the Federal Bureau of Investigation.
David M. Stephens, 30, of North Las Vegas, Nevada, was sentenced by Federal District Court Judge Alan B. Johnson on March 7, 2017, for possession with intent to distribute over 50 grams of methamphetamine. Stephens was arrested in Goshen County, Wyoming. He received 60 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation.
San Juan County Man Pleads Guilty to Federal Health Care Fraud ChargeRead the Press Release
ALBUQUERQUE – Cory Werito, 33, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to a health care fraud charge. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
Werito and his co-defendant, Rosita Toledo, 47, of Kirtland, N.M., were charged in a ten-count indictment that was filed on June 15, 2016. The indictment included nine health care fraud charges against Werito and Toledo, and an aggravated currency structuring charge against Werito. According to the indictment, the health care fraud charges were based on the defendants’ roles in creating and operating a medical transportation company, CW Transport, a New Mexico company located in Farmington that provided non-emergency medical transportation to Arizona Medicaid recipients, funded by reimbursement payments from the Arizona Health Care Cost Containment System (AHCCCS), a healthcare benefit program. The indictment alleged that over the course of two years between 2011 and 2013, CW Transport collected more than $1.9 million in Medicaid reimbursements from AHCCCS by submitting more than 18,000 claims for reimbursement, the vast majority of which were wholly or substantially false and fraudulent.
Count 10 of the indictment, the aggravated currency structuring charge, alleged that Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs). CTRs are reports which must be filed by financial institutions on transactions involving more than $10,000 during any business day and are used by law enforcement authorities to uncover a broad range of illegal activities including money laundering. According to the indictment, from Aug. 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.
The indictment included forfeiture provisions seeking an order requiring Werito and Toledo to forfeit to the United States at least $1,959,405, the proceeds allegedly derived from the health care fraud alleged in Counts 1 through 9 of the indictment.
During today’s proceedings, Werito pled guilty to Count 1 of the indictment, charging him with committing health care fraud. Werito admitted, as the sole owner of CW Transport, he submitted approximately 18,765 claims for reimbursement to AHCCCS between July 2011 and July 2013. Because the claims were grouped in 140 invoices, Werito received 140 payments from AHCCCS in an amount totaling $1,959,405. Werito admitted submitting the claims for reimbursement as part of a scheme to defraud AHCCCS because he either never provided or provided in a substantially different manner many of the services for which he sought and received reimbursement.
At sentencing, Werito faces a maximum penalty of ten years in federal prison. Under the terms of his plea agreement, Werito also will be required to pay $1,218,165 in restitution. A sentencing hearing has yet to be scheduled.
Toledo has entered a plea of not guilty to the charges in the indictment and is pending trial which has yet to be scheduled. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of HSI investigated the case with assistance from the FBI, U.S. Marshals Service, San Juan County Sheriff’s Office, the Arizona Health Care Cost Containment System and New Mexico Office of the Attorney General. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Sacramento Men Indicted for Firearm Trafficking OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 24-count indictment today against Sacramento residents James Smallwood, 25, and John Smallwood, 45, charging them with firearm-trafficking offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, James Smallwood and John Smallwood conspired to manufacture and sell firearms without a license. Over the course of eight transactions between September 28, 2016, and February 9, 2017, James Smallwood sold 20 firearms for $31,960. Seventeen of these firearms were homemade AR-15 style rifles and pistols, and seven of these homemade firearms were short-barreled rifles. John Smallwood manufactured the AR-15 style firearms and accompanied James Smallwood on one of the sales. On February 22, 2017, James Smallwood was apprehended while en route to sell 14 additional homemade AR-15 style short-barreled rifles for $28,000.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, both defendants face maximum statutory penalties of five years in prison and a $250,000 fine for the conspiracy count and for the count of unlawful manufacturing and dealing firearms and 10 years in prison and a $10,000 fine for each count of unlawful possession of short-barreled rifles. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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Rochester Man Sentenced on Heroin ChargeRead 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 Jeffrey M. Patton, 27, of Rochester, NY, who was convicted of possession with intent to distribute heroin, was sentenced to 18 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on February 21, 2016, Patton was found inside an apartment at 1205 Jay Street in Rochester as parole officers with the New York State Department of Corrections and Community Supervision were attempting to locate a parole absconder. While searching the residence, parole officers observed a firearm on top of a bedroom dresser and also located a quantity of heroin on Patton’s person. Officers from the Rochester Police Department responded to the location and after securing a search warrant, discovered additional items of contraband consistent with heroin distribution.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli; the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead 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 Zaylik Harrison, 21, of Rochester, NY, pleaded guilty to sex trafficking of a minor, before U.S. District Judge Charles J. Siragusa. The charge carries minimum penalty of 10 years in prison, a maximum of life and a $250,000 fine. The defendant will also have to register as a sex offender.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between September 30, 2016, and October 6, 2016, Harrison recruited a teenaged girl to engage in commercial sex acts at the Gates Motel, on Buffalo Road in Gates, NY. The defendant then posted advertisements for the minor on Backpage.com. Harrison rented rooms in the motel where the victim was forced to engage in prostitution activities over several days with adult males. The defendant kept the proceeds of those activities.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Monroe County Sheriff’s Office, under the direction of Patrick O’Flynn; the Erie County Sheriff’s Office, under the direction of Timothy Howard; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County District Attorney’s Office, under the direction of Sandra Doorley; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Sentencing is scheduled for June 8, 2017 before Judge Siragusa.
Rite Aid Corporation Pays $834,200 to Settle Allegations of Violating the Controlled Substances ActRead the Press Release
LOS ANGELES – Rite Aid Corporation has paid $834,200 in civil penalties to the United States to settle claims stemming from alleged violations of the Controlled Substances Act.
Rite Aid paid the civil settlement yesterday as part of an agreement reached last week to resolve allegations that certain Rite Aid pharmacies in Los Angeles dispensed and/or recorded controlled substances using a medical practitioner’s incorrect or invalid DEA registration number. The government alleged that the incorrect or invalid registration numbers were used at least 1,298 times as a result of Rite Aid’s failure to adequately maintain its internal database.
The settlement also resolves allegations that Rite Aid pharmacies dispensed, on at least 63 occasions, prescriptions for controlled substances written by a practitioner whose DEA registration number had been revoked by the DEA for cause.
In 1970, the United States Congress passed the Controlled Substances Act (CSA), which created “a closed system” of distribution for controlled substances. The CSA established a regulatory framework to control every facet of the handling of the substances, from their manufacture to their consumption.
The CSA became law against the backdrop of increasing diversion and abuse of legitimate controlled substances, but the law was also designed to ensure an adequate supply of those substances needed to meet the medical and scientific needs of the United States.
“Accurate record keeping at retail pharmacies helps ensure that authorities can keep track of how many controlled substances a pharmacy should have and does have on hand,” said United States Attorney Eileen M. Decker. “These federal regulations were put into place to prevent the abuse of powerful drugs that are dispensed by pharmacies and should only be used under the careful watch of a medical professional.”
In entering into and paying the settlement, Rite Aid did not admit liability. Prior to entering into the agreement, Rite Aid implemented a DEA registration validation program designed to verify DEA registration numbers for medical professionals who prescribe controlled substances.
“This settlement demonstrates DEA’s commitment to monitoring and holding accountable all potential sources of diversion for controlled substances and maintaining the safety of our communities,” said DEA Special Agent in Charge Steve Comer
This case was investigated by the Drug Enforcement Administration’s Office of Diversion Control, Los Angeles Field Division.
The settlement was negotiated by Assistant United States Attorney Donald W. Yoo of the Civil Fraud Section.
Reading Man Charged with Illegal Reentry After DeportationRead the Press Release
Oscar Alexander Moreno, a/k/a “Oscar Alexander Moreno Rodrgiuez,” of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about February 7, 2017, Moreno, an alien, and native and citizen of El Salvador, was found in the United States after having been deported from the United States on or about January 3, 2012.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Joel D. Goldstein.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Postal Supervisor Charged with Theft of Government PropertyRead the Press Release
CAMDEN, N.J. – A Delran, New Jersey, man will appear in federal court today to face charges that he abused his position as a U.S. Postal Service supervisor to steal cash deposits, U.S. Attorney Paul J. Fishman announced.
Amar D. Patel, 35, is charged by complaint with knowingly embezzling, stealing, purloining, and converting to his use U.S. Postal Service funds exceeding $1,000. He is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to the complaint:
In July 2016, the U.S. Postal Service Office of Inspector General started investigating shortages in cash deposits reported by the Riverside, New Jersey, Delanco, New Jersey, and Delran post offices. Patel – who was a supervisor at those three offices – had access to deposit bags containing cash acquired during retail operations.
As part of the investigation, agents installed covert surveillance cameras inside the Riverside post office. On Jan. 14, 2017, one of the surveillance cameras captured images of Patel tearing open a sealed deposit bag, removing cash deposits, and placing the funds into his pocket. According to U.S. Postal Service financial records and bank deposit records, the Riverside office’s deposit was short $1,650 on Jan. 14, 2017.
Based on this and other information, Patel is accused of stealing $15,700 in U.S. Postal Service funds on 12 separate occasions from Feb. 20, 2016, through Jan. 14, 2017.
The embezzlement charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia, Pennsylvania.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Plummer Man Sentenced for Theft of Firearms and Possession of Stolen FirearmsRead the Press Release
COEUR D'ALENE – Kyle Eugene Goddard, 28, of Plummer, Idaho, was sentenced yesterday in United States District Court to 15 months in prison followed by three years supervised release, Acting U.S. Attorney Rafael Gonzalez announced. Chief U.S. District Judge B. Lynn Winmill also ordered Goddard to pay $900 in restitution. Goddard pleaded guilty to theft of firearms and possession of stolen firearms on November 16, 2016.
According to Goddard’s admissions at the plea hearing, on July 23, 2016, Goddard stole two firearms, a Taurus 709 Slim 9mm and a Springfield Armory XD 40, from Bargain Barn, a local business in Plummer, Idaho.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Philadelphia Man Charged with Identity TheftRead the Press Release
Norman Ross, 68, of Philadelphia, PA was charged today by Indictment with access device fraud and aggravated identity theft, announced Acting United States Attorney Louis D. Lappen
If convicted the defendant faces a maximum possible sentence of 17 years imprisonment and 3 years supervised release.
The case was investigated by United States Secret Service and is being prosecuted by Assistant United States Attorney K.T. Newton.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ocean Springs Resident Pleads Guilty to Production, Transportation, Distribution and Possession of Child PornographyRead the Press Release
Gulfport, Miss – Philip Joseph Spear, age 59, of Ocean Springs, entered a guilty plea in U.S. District Court today to a criminal information charging him with production, transportation, distribution and possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Christopher Freeze.
Spear was charged after a federal search warrant was executed at his residence in Ocean Springs and numerous electronic devices including computers, a camera and hard drives were seized. A forensic examination revealed numerous images and videos of minors engaging in sexually explicit conduct.
Today, Spear pled guilty to two counts of production of child pornography, one count of production of child pornography by a person who has custody of a minor, one count of transportation of child pornography, one count of distribution of child pornography and one count of possession of child pornography. He will be sentenced on June 7, 2017 at 10:00 a.m. before Chief U.S. District Judge Louis Guirola, Jr. The maximum penalties for the crimes charged are as follows:
Production of child pornography - 30 years and a $250,000 fine on each count;
Production of child pornography by a person who has custody of a minor – 30 years and a $250,000 fine;
Transportation of child pornography - 30 years and a $250,000 fine;
Distribution of child pornography 20 years and a $250,000 fine; and
Possession of child pornography- 20 years and a $250,000 fine.
This case was investigated by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. Assistant U.S. Attorney Andrea Jones is prosecuting the case for the government.
Norwalk Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KENNETH BRICKHOUSE, also known as “K.E.,” 36, last residing in West Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by five years of supervised release, for drug and firearm offenses.
This matter stems from an investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The investigation included court-authorized wiretaps, controlled purchases of narcotics and physical surveillance.
According to court documents and statements made in court, BRICKHOUSE obtained cocaine and heroin from Bobby Gutierrez and other individuals and then sold the drugs to customers and other distributors. Between February and May 2016, BRICKHOUSE made multiple sales of heroin and cocaine to an individual working with law enforcement. During this time, investigators also intercepted hundreds of calls and text messages involving BRICKHOUSE that pertained to the distribution of narcotics.
BRICKHOUSE was arrested on May 26, 2016. On that date, a search of a Norwalk apartment that BRICKHOUSE used to store drugs, convert cocaine into crack cocaine and conduct drug sales, revealed approximately 500 bags of heroin, two baggies of cocaine, a loaded 9mm pistol, and ammunition. Investigators also seized a .357 revolver and ammunition from a vehicle that BRICKHOUSE used to in connection with his drug trafficking activities.
BRICKHOUSE has been detained since his arrest. On September 23, 2016, he pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine, conspiracy to possess with intent to distribute 100 grams or more of heroin, and possession of a firearm in furtherance of a drug trafficking offense.
BRICKHOUSE’s criminal history includes state convictions for possessing crack with intent to sell, and federal convictions in 2001 for possession with intent to distribute cocaine base (“crack”), using and carrying a firearm in relation to a drug trafficking offense, and possession of a firearm by a convicted felon. BRICKHOUSE served approximately 127 months in federal prison before his release in November 2011.
The DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force includes members from the Bridgeport, Stamford, Stratford, Norwalk, Milford and Trumbull Police Departments, and the Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorneys Anthony Kaplan and Heather Cherry.
Norton Shores "Dark Web" Drug Dealer Sentenced to 30 Months in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - Acting U.S. Attorney Andrew Birge announced today that Michael Carlton Paiva, 30, of Norton Shores, was sentenced to 30 months’ imprisonment by Chief U.S. District Judge Robert J. Jonker for his role in a conspiracy to distribute controlled substances.
After an international law enforcement operation took down the dark web marketplace Silk Road 2.0, Paiva was identified as a purchaser of a significant quantity of various amphetamines and psychedelic compounds for distribution in the Western District of Michigan, including 3,4-methylenedioxymethamphetamine ("MDMA"), 2-(4-iodo-2,5-dimethoxyphenyl)-N-(2-methoxybenzyl) ethanamine hydrochloride ("25i-NBOMe"), 4-methyl-2,5-dimethoxyamphetamine ("DOM (STP)"), N,N-dimethyltryptamine ("DMT"), lysergic acid diethylamide ("LSD"), AL-LAD, mescaline, and liquid mushrooms. The subsequent investigation revealed Paiva was ordering and importing drugs from different sources from at least 2013 until 2016. He converted cash into bitcoin in order to make purchases on the dark web. Paiva also distributed more common controlled substances, including heroin, cocaine, and methamphetamine.
"Drug traffickers who believe that the dark web and cryptocurrency will provide anonymity and shield them from the rule of law are sorely mistaken," said Acting U.S. Attorney Birge. "The federal government has the tools, resources, and commitment to identify and prosecute criminals on the dark web and will continue to do so."
"Homeland Security Investigations and our partners are at the tip of the spear in the effort against illicit activities and financial crimes associated with virtual currency systems," said Steve Francis, Acting Special Agent in Charge of HSI Detroit. "Criminals have the false impression that their black markets activity using digital currency like Bitcoin are avoiding scrutiny. The reality is that these activities do not escape the reach of law enforcement."
"The West Michigan Enforcement Team, HSI Grand Rapids, and the U.S. Attorney’s Office have a long history of collaboration and this case is another great example of that relationship," said Detective First Lieutenant Andy Fias, WEMET Section Commander. "We value this partnership and it was successful in this investigation and others in the past. The disruption of this drug trafficking organization will have a deep impact on several West Michigan communities."
HSI led the investigation in the district, in cooperation with WEMET. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
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North Dakota Woman Charged with Obstruction of Justice and False StatementsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bismarck, North Dakota, woman has been indicted by a federal grand jury for Obstruction of Justice and False Statements.
Sherrae Two Hearts, a/k/a Sherrae Twohearts, age 38, was indicted on February 15, 2017. She appeared before U.S. Magistrate Judge William D. Gerdes on March 8, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 28, 2016, Two Hearts knowingly intimidated, corruptly persuaded, and engaged in misleading conduct toward her juvenile son, and attempted to do so by instructing him to falsely report to law enforcement authorities acts of child abuse and neglect. The Indictment also alleges that Two Hearts knowingly and willfully made a materially false, fictitious, and fraudulent statement and representation and told agents with the Bureau of Indian Affairs that her children were being abused and neglected when she knew these statements were not true.
The charges are merely accusations and Two Hearts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Two Hearts was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Nampa Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – Bernandino Mercado, Jr., 50, of Nampa, Idaho, pleaded guilty yesterday in United States District Court to conspiracy to distribute methamphetamine, Acting U.S. Attorney Rafael Gonzalez announced.
According to statements made at the hearing, Mercado distributed multiple pounds of methamphetamine out of his Nampa residence between June 2015 and September 2016. Mercado also admitted to trafficking firearms. Mercado was convicted of delivery of a controlled substance in 1997 and 2005.
Sentencing is set for May 25, 2017, before Senior U.S. District Edward J. Lodge. Mercado faces a sentence of not less than 20 years imprisonment and not more than life, a $20,000,000 fine and a term of supervised release of at least ten years and up to life. As part of his plea, Mercado also agreed to forfeit $100,000 in cash proceeds.
This case is the result of a joint investigation by the Drug Enforcement Administration, the Boise Police Department and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
More Than 65 Individuals Facing Federal or State Charges for Allegedly Selling Heroin, Cocaine and Fentanyl on Chicago’s West SideRead the Press Release
CHICAGO — More than 65 defendants are facing federal or state narcotics charges for their alleged roles in distributing heroin, cocaine and fentanyl on Chicago’s West Side.
The joint federal and state investigation, dubbed “Operation Sweet Dreams,” spanned more than a year and resulted in the seizures of more than a dozen firearms, including an assault rifle and semiautomatic pistol, more than three kilograms of heroin, three kilograms of cocaine, and more than $380,000 in cash. Authorities uncovered the alleged criminal activity through the use of wiretapped cellular phones, undercover narcotics purchases and extensive surveillance. The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
Law enforcement officers began arresting several of the defendants this morning.
The charges describe an extensive network of drug distribution, based predominantly in the Garfield Park, Homan Square and North Lawndale neighborhoods on the city’s West Side. Two of the defendants were charged with federal firearm violations as part of criminal complaints filed earlier this week in U.S. District Court and unsealed after the arrests.
The federal defendants will begin making initial court appearances this afternoon before U.S. Magistrate Judge M. David Weisman in Chicago. The state defendants were charged in separate complaints and will appear at a later time in Cook County Criminal Court.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; Eddie T. Johnson, Superintendent of the Chicago Police Department; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division. The officials recognized the valuable assistance of the U.S. Marshals Service and the Illinois State Police.
The investigation uncovered numerous drug deals, including one that occurred last October in an alley in the 1800 block of North Leavitt Street in the Bucktown neighborhood of Chicago. A defendant purchased two kilograms of heroin in exchange for $132,800 in cash, the complaint states. The defendant was under law enforcement surveillance when he picked up the cash from a Near West Side house, the complaint states. The money was wrapped in a red and white Target shopping bag.
The investigation further revealed that one of the defendants agreed to sell his Chevrolet conversion van to a buyer he met in an online marketplace in exchange for a kilogram of cocaine. Unbeknownst to the defendant, the purported buyer was an undercover law enforcement officer. During an afternoon meeting last August at Diversey and Austin Avenues in the Belmont Cragin neighborhood of Chicago, the undercover officer gave the defendant a black bag containing a kilogram of sham cocaine in exchange for the van, according to the complaint. The deal was surreptitiously recorded by law enforcement.
The investigations were conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Assistant U.S. Attorneys Jeremy Daniel and Jeannice Appenteng are representing the government in the federal cases. The Cook County State’s Attorney’s Office is representing the government in the state cases.
Mission Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Assaulting, Opposing, Resisting, and Impeding a Federal Officer was sentenced on February 27, 2017, by U.S. District Judge Roberto A. Lange.
Abigail Marie Garneaux, a/k/a Abigail Marie Garcia, age 29, was sentenced to 6 months in custody, to be followed by 6 months of home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Garneaux was indicted by a federal grand jury on July 19, 2016. She pled guilty on December 5, 2016.
The conviction stemmed from an incident on the evening of May 28, 2016. A Rosebud Sioux Tribe Law Enforcement Services Officer observed a vehicle parked on the highway, with visible open alcohol containers inside. Garneaux was in the driver’s seat and officers asked her to exit the vehicle. Garneaux failed field sobriety tests and the officer informed her she was going to be arrested. Without provocation, Garneaux proceeded to pepper spray the officer directly in his face.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Garneaux was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Possession of a Stolen FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession of a Stolen Firearm was sentenced on February 27, 2017, by U.S. District Judge Roberto A. Lange.
Harold Fuller, Jr., age 38, was sentenced to 9 months in custody, followed by 18 months of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Fuller was also ordered to pay restitution to the owner of the firearm.
Fuller was indicted by a federal grand jury on July 19, 2016. He pled guilty on December 2, 2016.
The conviction stemmed from an incident on February 22, 2016. Fuller unlawfully took a duffle bag and tools from a vehicle. A firearm was in the duffle bag and Fuller later attempted to sell the firearm.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Fuller was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced to Prison for Trafficking Meth on Navajo ReservationRead the Press Release
ALBUQUERQUE – Rogelio Santiago Quiroa-Valdez, 25, a Mexican national unlawfully in the United States, was sentenced today in federal court in Albuquerque, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Quiroa-Valdez will be deported after he completes his prison sentence.
Quiroa-Valdez and his co-defendants, Luis Rangel Arce, 45, and Miguel Rangel Arce, 36, also Mexican nationals, were amongst eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program 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. investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash, and a vehicle during the investigation.
Quiroa-Valdez, Miguel Rangel Arce and Luis Rangel Arce were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
Quiroa-Valdez pled guilty on Aug. 30, 2016, and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer.
On Aug. 30, 2016, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy, and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer. Miguel Rangel Arce was sentenced on March 7, 2017 to 120 months in prison; he will be deported after completing his prison sentence.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016. Luis Rangel Arce was sentenced on Jan. 5, 2017, to 87 months in prison, and will be deported after completing his prison sentence.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of 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.
Mexican National Facing Federal Narcotics Charge Based on Eight-Pound Heroin Seizure in New MexicoRead the Press Release
ALBUQUERQUE – Julia Perez-Vega, 48, a Mexican national from Nogales, Sonora, Mexico, made her initial appearance this morning in federal court in Albuquerque, N.M., on a heroin trafficking charge. Perez-Vega remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for March 10, 2017.
Perez-Vega is charged in a criminal complaint with possession of heroin with intent to distribute following her arrest yesterday at the Greyhound Bus Station in Albuquerque. The DEA arrested Perez-Vega after agents allegedly found approximately 3.6 kilograms (8.064 pounds) of heroin in her baggage during a consensual search.
If convicted on the charge in the criminal complaint, Perez-Vega faces a statutory mandatory minimum penalty of ten years to a maximum of life in prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is 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.
Mason France Indicted for Firearm OffensesRead the Press Release
SOUTH BEND – The United States Attorney for the Northern District of Indiana, David Capp, announced an indictment charging Mason France, 19, of Winona Lake, Indiana with one count of possession of stolen firearms, one count of possession of a firearm while under felony Information and one count of selling a firearm to a juvenile.
According to documents in this case, on December of 2016, France received one or more firearms while pending a felony Information, and in December of 2016 and January of 2017 he possessed stolen firearms. In January of 2017, France sold a handgun to a juvenile.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives in coordination with the Fulton County Sheriff’s Department, the North Manchester Police Department and the Wabash County Sheriff’s Department. This case is being handled by Assistant United States Attorney Molly E. Donnelly.
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Iranian Member of an International Cybercrime Conspiracy Sentenced to 10 Years in Prison for Selling Stolen Credit Card Information OnlineRead the Press Release
WASHINGTON – An Iranian man was sentenced today to 120 months in federal prison for access device fraud and 60 months in federal prison for conspiracy to commit identity theft and access device fraud, to be served concurrently, in connection with an international scheme to sell credit card information online. He was further ordered to pay $36.6 million in restitution.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Orleans, Louisiana, Field Office made the announcement.
Milad Kalantari, 32, an Iranian citizen, was sentenced by U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi. Kalantari was arrested in December 2015, when he entered the United States at John F. Kennedy International Airport in New York City. On Oct. 6, 2016, Kalantari pleaded guilty to one count of conspiracy to commit identity theft and access device fraud and one count of substantive access device fraud.
As part of the plea, Kalantari admitted that he was a member of a financial fraud conspiracy that owned and operated numerous websites, in Kalantari’s name, dedicated to the distribution and sale of stolen credit and debit card information belonging to victims all over the world – including citizens and banks located throughout the United States. As part of the scheme, Kalantari sold approximately 2.5 million stolen credit cards on his websites, with an intended loss amount valued at over $1.2 billion. More than $35 million in actual losses have been confirmed with U.S. companies including more than $26 million in losses to Discover Card and almost $5 million in losses to American Express.
Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi prosecuted the case, which was investigated by HSI’s Gulfport Regional Office.
Iranian Member of International Cybercrime Conspiracy Sentenced to 10 Years in Prison for Selling Stolen Credit Card Information OnlineRead the Press Release
An Iranian man was sentenced today to 120 months in federal prison for access device fraud and 60 months in federal prison for conspiracy to commit identity theft and access device fraud, to be served concurrently, in connection with an international scheme to sell credit card information online. He was further ordered to pay $36.6 million in restitution.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Orleans, Louisiana, Field Office made the announcement.
Milad Kalantari, 32, an Iranian citizen, was sentenced by U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi. Kalantari was arrested in December 2015, when he entered the United States at John F. Kennedy International Airport in New York City. On Oct. 6, 2016, Kalantari pleaded guilty to one count of conspiracy to commit identity theft and access device fraud and one count of substantive access device fraud.
As part of the plea, Kalantari admitted that he was a member of a financial fraud conspiracy that owned and operated numerous websites, in Kalantari’s name, dedicated to the distribution and sale of stolen credit and debit card information belonging to victims all over the world – including citizens and banks located throughout the United States. As part of the scheme, Kalantari sold approximately 2.5 million stolen credit cards on his websites, with an intended loss amount valued at over $1.2 billion. More than $35 million in actual losses have been confirmed with U.S. companies including more than $26 million in losses to Discover Card and almost $5 million in losses to American Express.
Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi prosecuted the case, which was investigated by HSI’s Gulfport Regional Office.
Internet Business Owner Indicted for Selling Non-FDA Approved and Misbranded Versions of Botox and Juvederm Related ProductsRead the Press Release
LAS VEGAS, Nev. – The owner and operator of numerous beauty product websites was arrested and charged in a 25-count indictment for selling misbranded drugs and misbranded medical devices, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge William Conway for the FDA Office of Criminal Investigations’ Chicago Field Office.
“The Nevada U.S. Attorney’s Office is committed to protecting consumers and ensuring that products being sold at stores and online in the United States are safe and in accordance with federal law,” said U.S. Attorney Bogden. “We will continue to work with the FDA to ensure the publics’ health is not compromised.”
"U.S. consumers rely on the FDA to ensure that the medical products they use are safe and effective," said Special Agent in Charge Conway. "Our office will continue to pursue and bring to justice those who attempt to introduce illegal products into the U.S. marketplace."
Kelly Luanne Schaible, aka Kelly Reed, aka Heather Lane, 55, of Henderson, Nev., was charged with nine-counts of wire fraud, six-counts of mail fraud, four-counts of introduction of misbranded drugs into interstate commerce, five-counts of introduction of misbranded medical devices into interstate commerce, and one-count of destruction of evidence. Trial is scheduled for May 8, 2017.
According to the indictment, from 2009 to 2014, Schaible owned and operated AAE d/b/a Basics, Inc.; Basics, Inc.; and Basics Inc., Ltd. The companies’ websites sold various beauty products related to weight loss, hair loss, skin care, eyelashes, and wrinkle reduction.
The indictment alleges that Schaible knowingly marketed, sold, and distributed non-FDA approved prescription drugs containing Botulinum Toxin Type A, also known as Botox, and non-FDA approved prescription devices containing hyaluronic acid, also known as Juvederm related products. Schaible obtained these products from distributors in China and knew it was illegal to import such products into the United States. She made various representations that were intended to lead customers to believe that the products and devices she sold were equivalent to genuine Botox and Juvederm and that a customer could administer the products in a “do it yourself” fashion without a prescription. She mislabeled the products and shipped the misbranded drugs to customers throughout the United States and to other countries. Schaible sold approximately 9,500 units of misbranded prescription drugs containing Botulinum and received approximately $1.7 million in sales revenue. She also sold approximately 4,000 units of misbranded Juvederm products and received approximately $630,000 in sales revenue.
The indictment further alleges that after a search and seizure by FDA Special Agents, Schaible attempted to destroy a plastic bag containing vials of Botulinum for the purpose of preventing and impairing the investigation.
The maximum statutory penalty for wire fraud and mail fraud is up to 20 years in prison and a $250,000 fine; the maximum statutory penalty for introducing misbranded drugs and misbranded devices into interstate commerce is three years in prison and a $10,000 fine; and the maximum statutory penalty for destruction of evidence is five years in prison and a $250,000 fine.
The case is being investigated by the Food and Drug Administration-Office of Criminal Investigations; and prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.
The public is reminded that an indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
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Inmate at Sandoval County Detention Center Pleads Guilty to Trafficking Heroin While IncarceratedRead the Press Release
ALBUQUERQUE – Ismael Vargas, 29, of Belen, N.M., entered a guilty plea today in federal court in Albuquerque, N.M., to a heroin trafficking charge. At the time he committed the offense, Vargas was an inmate at the Sandoval County Detention Center. Under the terms of his plea agreement, Vargas faces up to 41 months in federal prison to be followed by a term of supervised release to be determined by the court.
Former Corrections Officer at Sandoval County Detention Center Christopher Gonzales, 20, of Rio Rancho, N.M., and Fabrienne Rosalinda Morales, 39, of Peralta, N.M., were arrested in Jan. 2016, on a five-count indictment charging them with conspiracy. The indictment also charged Gonzales with possession of heroin and suboxone with intent to distribute, and Morales with distribution of heroin and suboxone. The indictment was superseded on Feb. 9, 2016, to add Vargas, who was charged with conspiracy. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M.
During today’s proceedings, Vargas pled guilty to Count 1 of the superseding indictment charging him with conspiracy to distribute heroin. In entering the guilty plea, Vargas admitted that on Aug. 2, 2015, while he was an inmate at the Sandoval County Detention Center, he arranged for heroin to be delivered to the jail. Vargas further admitted that he facilitated the payment of money to a corrections officer to get the heroin into the jail. Vargas remains in custody pending a sentencing hearing which has yet to be scheduled.
On Feb. 28, 2017, Gonzales pled guilty to possessing heroin with intent to distribute. In entering the guilty plea, Gonzales admitted that on Aug. 2, 2015, while he was working as an officer at the Sandoval County Detention Center, he brought heroin to the Detention Center with the intention of delivering it to an inmate. A sentencing hearing for Gonzales is currently scheduled for May 31, 2017.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she smuggled heroin into the Sandoval County Detention Center and gave it to a corrections officer. Under the terms of her plea agreement, Morales will be sentenced to not more than 24 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing for Morales is currently scheduled for April 17, 2017.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is prosecuting the 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.
Inland Empire Man Arrested on Federal Charges of Producing Child Pornography after Allegedly Enticing Boy to Take Explicit PicturesRead the Press Release
RIVERSIDE, California – A resident of the Inland Empire city of Eastvale was arrested this morning by federal authorities on charges of producing child pornography after allegedly using Snapchat to contact a 13-year-old boy in Illinois and enticing him to send a sexually explicit video.
Francisco Javier Soledad, 24, was arrested by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Soledad is expected to make his initial appearance later this afternoon in United States District Court.
According to a criminal complaint filed yesterday in United States District Court, Soledad assumed the persona of a young person – first a 13-year-old boy, and then an adult woman – to convince the victim to send an explicit video. When the victim then blocked Soledad on Snapchat, Soledad allegedly threatened to publish the video on a social media platform unless the victim sent additional videos.
After the victims’ parents contacted law enforcement, HSI special agents conducted a search of Soledad’s residence. During an interview with authorities, Soledad admitted sending threatening communications to the victim, and he admitted victimizing other children in a similar fashion, according to the affidavit in support of the criminal complaint. After a review of Soledad’s digital devices, HSI agents uncovered evidence of five additional victims between the ages of 12 and 15 living in Illinois, Texas, Georgia, Tennessee and California. In each instance, Soledad had coerced the children to produce sexually explicit images and videos.
“As this case dramatically demonstrates, child pornography is not a victimless crime,” said United States Attorney Eileen M. Decker. “This crime has unimaginable and devastating impacts on young victims, and the market for these images only encourages additional exploitation.”
A search of Soledad’s digital devices revealed more than 5,000 images and videos of suspected child pornography. The majority of the child pornography images appear to have been self-produced by the depicted victims. Law enforcement has not yet identified all of the victimized children.
Anyone with information about Soledad – or his Snapchat handle, “linkinparkrocks” – is encouraged to call HSI’s toll-free tip line 1-866-2DHS-ICE or 1-866-234-7423
“Tragically, cases like this are part of a growing trend where children are being enticed, tricked, and coerced online by adults to produce sexually explicit material of themselves,” said Edward Owens, deputy special agent in charge for HSI Los Angeles. “The decision by the victim’s parents to quickly alert law enforcement may have saved an untold number of other children from falling prey, but the key to combatting online sexual predation is for children and adults alike to learn how to stay safe in cyberspace. As we tell participants in HSI’s Project iGuardian internet safety training, ‘we all need to think before we click.’”
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.
If he is convicted of the charge of producing child pornography, Soledad would face a mandatory minimum penalty of 15 years in federal prison and he could be sentenced to as much as 30 years.
This case is being prosecuted by Special Assistant United States Attorney Teresa K.B. Beecham.
Individual Sentenced to Five Years in Prison for Malicious Use of ExplosivesRead the Press Release
SAN JUAN, Puerto Rico– Noel D. Cruz-Torres was sentenced before US District Court Judge Gustavo Gelpí to 60 months in prison, and three years of supervised release, for malicious use of explosive materials, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Cruz-Torres had plead guilty on November 16, 2016.
On June of 2016, Cruz-Torres was arrested after throwing Molotov cocktails at the DuPont Pioneer building in Salinas, PR, and at Puerto Rico Police Department officers who detained him. DuPont Pioneer is an agricultural business that conducts crop-genetic research and development. It imports seed from Iowa for research purposes.
According to the information contained in the plea agreement, on June 18, 2016, an individual called the 911 system to report an explosion near DuPont Pioneer. When police and firefighters arrived, they saw a vehicle burning nearby. PRPD officers reported that an individual was throwing Molotov cocktails at the building. The officers walked around the building and saw Cruz-Torres wearing a black t-shirt wrapped around his face and carrying a black backpack. While police pursued Cruz-Torres, he threw various Molotov cocktails at the officers. He also threw another lit Molotov at the fire truck.
Cruz-Torres had a flag with the words “LEVANTATE BORICUA Q HA LLEGADO EL MOMENTO DE DEFENDER NTRA PATRIA: VIVA P.R. Libre” (sic) (as translated in the criminal complaint, “Rise up Puerto Rican, the moment to defend our fatherland has arrived: long live free Puerto Rico.”)
The case was prosecuted by Assistant United States Attorney Alexander Alum. The FBI was in charge of the investigation with the collaboration of the Puerto Rico Police Department.
INTERPOL Washington Attends INTERPOL Heads ConferenceRead the Press Release
Senior leaders from INTERPOL Washington, the U.S. National Central Bureau (USNCB), participated in the annual International Criminal Police Organization (INTERPOL) Heads of National Central Bureaus (NCB) conference this week. The gathering brought together 270 police officials from 149 countries. INTERPOL Washington representatives were Acting Director Wayne Salzgaber, Chief of Staff Bernard Graham, and Deputy Chief of Staff Joseph Ferrigno. The conference, held March 7-9 at INTERPOL Headquarters in Lyon, France, highlighted the need for increased sharing of biometric data, such as fingerprints, DNA and facial recognition, and enhanced use of INTERPOL’s firearms tracing and ballistic data sharing capabilities, according to INTERPOL.
INTERPOL Washington serves as the designated U.S. representative to INTERPOL on behalf of the Attorney General. While it is a component of the U.S. Department of Justice (DOJ), INTERPOL Washington is co-managed by the U.S. Department of Homeland Security (DHS).
U.S. membership in INTERPOL is authorized by U.S. law. As a condition of membership, the United States maintains a National Central Bureau (NCB) in Washington, D.C., which liaises with INTERPOL’s General Secretariat and the National Central Bureaus of INTERPOL’s 189 other member countries. The United States also details law enforcement officials to serve at INTERPOL Headquarters.
INTERPOL Washington coordinates U.S. law enforcement actions and responses, ensuring that they are consistent with U.S. interests and law, as well as INTERPOL policies, procedures, and regulations. As the official U.S. point of contact in INTERPOL's worldwide, police-to-police communications and criminal intelligence network, INTERPOL Washington operates 24/7/365. It supports more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States as well as their foreign counterparts seeking assistance in transnational criminal investigations.
INTERPOL Washington criminal investigative data assists U.S. law enforcement officials in bringing many criminals to justice. To date in 2017, two major high profile cases benefited from INTERPOL Washington assistance. For example, INTERPOL Washington partnered with U.S. and international law enforcement agencies to bring down four multi-million dollar international fraud and money laundering schemes perpetrated by a transnational organized crime network. In another case, the subject of an INTERPOL Red Notice, wanted for a July 10, 2016, murder in the Dominican Republic, was arrested Thursday, February 23, by U.S. Marshals and Immigrations & Customs Enforcement (ICE) agents with the New York/ New Jersey Regional Fugitive Task Force. INTERPOL Washington also provided critical assistance during that investigation. These are only two examples of the contributions INTERPOL Washington makes to domestic and international law enforcement.
Photograph courtesy INTERPOL INTERPOL Secretary General Jürgen Stock addresses the INTERPOL Heads conference.
Hartsville Man Sentenced to 95 Months in Prison on Federal Drug ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake announced today that Tavares Lamore Wingate, age 33, of Hartsville, SC, was sentenced in federal court in Florence for conspiracy to possession with intent to distribute and distribution of a quantity of cocaine and a quantity of cocaine base in violation of Title 21, United States Code, Section 841(a)(1). United States District Judge Bruce H. Hendricks of Charleston sentenced Wingate to 95 months in federal prison.
Evidence presented at Wingate’s guilty plea hearing established that Wingate and others in the Florence County and Darlington County area were subjects in an ongoing drug distribution conspiracy investigation dating back to 2005 conducted by the Darlington County Sheriff’s Office (DCSO) and the Federal Bureau of Investigation (FBI) in cooperation with the Pee Dee Violent Crimes Task Force. As part of that investigation, in June 2015, agents arranged a controlled buy of a quantity of cocaine and a quantity of cocaine base from Wingate and a coconspirator.
The case was investigated by the Darlington County Sheriff’s Office (DCSO) and the Federal Bureau of Investigation (FBI) in cooperation with the Pee Dee Violent Crimes Task Force. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Georgia Gynecologist Indicted for Running Pill Mill and Money LaunderingRead the Press Release
SAVANNAH, GA: a federal grand jury sitting in Savannah returned a 176-count indictment yesterday against George Mack Bird, III, 58, a Georgia physician who operated a medical practice in Dodge County and a diet clinic in Laurens County.
According to the Indictment, Bird instructed certain of his employees to dispense and distribute various controlled substances and highly addictive opioids using prescription forms that he had pre-signed in violation of federal law. The Indictment further alleged that, because Bird rarely saw or examined his patients, he directed his employees to utilize pre-printed medical notes to give the appearance that patients had been thoroughly examined, when in fact, they had not. Bird’s unlawful dispensation scheme was remarkably lucrative, generating more than $4.5 million in proceeds, according to the grand jury. The Indictment alleged that Bird and others conspired to illegally launder those proceeds by using them to pay for the operating expenses of Bird’s clinics.
Bird, who is currently being held in state custody, faces up to a maximum sentence of life imprisonment. Additionally, the Government is seeking the forfeiture of Bird’s offices, home, investment properties, and a money judgment of at least $4.5 million. Approximately $1 million in cash was seized from Bird at the time of his arrest, and federal agents have since seized or frozen an additional $3.9 million held in various bank and investment accounts.
U. S. Attorney Edward Tarver cautioned that an indictment is only an accusation and is not evidence of guilt. A defendant is entitled to a fair trial, during which it is the Government’s burden to prove a defendant’s guilt beyond a reasonable doubt.
The Drug Enforcement Administration is investigating the case with assistance from the Oconee Drug Task Force. Assistant United States Attorneys Patricia Green Rhodes and Theodore S. Hertzberg are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Former State Representative Indicted on Fraud ChargesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging former Florida House of Representatives member Dwayne L. Taylor (49, Daytona Beach) with nine counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. The indictment also notifies Taylor that the United States is seeking a money judgment in the amount of $62,834, the proceeds of the charged criminal conduct.
According to the indictment, during Taylor’s 2012 and 2014 re-election campaigns, he falsely reported thousands of dollars of expenditures to the State of Florida in order to conceal a series of cash withdrawals, checks written to himself, and checks written to petty cash, in violation of Florida law. Taylor then used the misappropriated funds for personal expenditures unrelated to his re-election campaigns. As set forth in the indictment, in the State of Florida, neither a candidate nor the spouse of a candidate may use funds on deposit in a campaign account to defray normal living expenses for the candidate or the candidate’s family, other than expenses actually incurred for transportation, meals, and lodging during travel in the course of the campaign.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Embry J. Kidd and Roger B. Handberg.
Former Rhode House Finance Chairman Raymond Gallison Pleads Guilty to Federal Fraud, Aggravated Identity Theft, Tax ChargesRead the Press Release
PROVIDENCE – Former Rhode Island House Finance Chairman Raymond E. Gallison, Jr., 64, of Bristol, R.I., pleaded guilty today in U.S. District Court in Providence to federal mail fraud, wire fraud, aggravated identity theft and tax charges, announced United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin.
Appearing before U.S. District Court Chief Judge William E. Smith, Gallison admitted to orchestrating wide-ranging fraudulent and deceptive schemes to steal private money and hide his misuse of public money. Gallison admitted to the theft of funds from the estate of a deceased individual to which he was appointed executor; theft of funds from a Special Needs Trust established to protect the long-term welfare of a disabled individual to which he was appointed trustee; providing false information on tax documents, including vastly inflating the number of students assisted by a non-profit organization funded by public money while failing to disclose amounts paid by that organization to him; and failure to pay taxes on income derived from his criminal actions.
Gallison pleaded guilty to four (4) counts of mail fraud; one (1) count of wire fraud; one (1) count of aggravated identity theft; one (1) count of aiding the filing of a false tax document; and two (2) counts of filing a false tax return.
At the time of his guilty plea, Gallison admitted to the court that:
As executor of an estate of an individual from Barrington, R.I., who passed away in February 2012, he devised and executed various schemes to steal or transfer to his own name and bank accounts, cash, checks, stocks and real property belonging to the deceased person and/or his estate, valued at a total of $677,454,10. Gallison will admit that he fraudulently used the name and social security number of the deceased person to execute a scheme to cause the liquidation of certain stocks belonging to the deceased person;
He caused the filing of a false tax document on behalf of Alternative Education Programming (AEP), a non-profit organization which provided educational programs to students who may need assistance with course work, and/or minority and/or disadvantaged students who may need financial or other assistance to gain an education, and of which Gallison was listed as Assistant Director. The tax document listed that $77,957 in tuition and related fees and expenses were paid for 47 students from July 1, 2012, through June 30, 2013. In fact, on behalf of AEP, Gallison paid only $3,137.29 to assist 2 students during that year and paid approximately $64,575 to himself and another person in wages and consulting fees for no work undertaken on AEP’s behalf;
As trustee for a disabled person’s Special Needs Trust, he defrauded the Trust by writing a check from the Trust account for $8,900, which he deposited into an AEP account. Gallison then wrote a check for $8,800 from the AEP account to pay an outstanding bill at the Community College of Rhode Island; and
He failed to claim a total of $622,286.17 in income on joint IRS tax returns for tax years 2012 and 2013, and, as a result of his relevant conduct from 2012-2015, Gallison failed to pay a total of $226,332.31 in taxes.
Gallison is scheduled to be sentenced on June 16, 2017. Based on statutory penalties, Gallison will serve, at a minimum, two years in federal prison.
During the course of the investigation law enforcement recovered more than $515,000 in assets stolen by the defendant from the estate for which he served as executor. Prior to the start of today’s change of plea hearing, the defendant provided to the court a check in the amount of $162,063.95, reflecting the balance of restitution due to the estate.
Restitution due to the IRS in the amount of $226,332.31 has not been paid.
Joining United States Attorney Peter F. Neronha and Rhode Island Attorney General Peter F. Kilmartin in announcing Gallison’ s guilty plea is Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
The matter was investigated by the United States Attorney’s Office, FBI, Internal Revenue Service Criminal Investigation, Rhode Island Department of the Attorney General, and the Rhode Island State Police.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Dulce Donovan and William J. Ferland, and Special Assistant U.S. Attorney James R. Baum of the Rhode Island Department of the Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Local Employee Sentenced to 15 Months for ExtortionRead the Press Release
CINCINNATI –Carlos Ruiz-Rodriguez, 25, of Cincinnati, Ohio, was sentenced to 15 months for extortion against a Cincinnati-based company.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence handed down yesterday by U.S. District Judge Michael R. Barrett.
Ruiz-Rodriguez was indicted by a federal grand jury in August 2016. He pleaded guilty on November 30, 2016 to intruding computers, stealing proprietary information from his employer, and then extorting his employer.
He had been employed at the company for approximately two years as a call center employee. In his role, he had access to the company’s customer service portal and personally identifiable information for certain clients. He used credentials for another employee to obtain the proprietary company information.
Ruiz-Rodriguez sent multiple extortion emails to the company between November 2015 and January 2016 via the internet claiming that he had hacked the company. He also provided proof of compromise of the company’s data. He stated that if the company did not pay a Bitcoin ransom, then the company schematics and client data would be released to the public.
Ruiz-Rodriguez, through an intermediary, then posted the company’s data on an internet “dark web” forum and received two separate ransom payments from the employer totaling approximately $15,000. Ruiz-Rodriguez was also ordered to pay restitution of $277,278.98 to the employer and $259,212.74 to the employer’s insurer.
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Tim Mangan, who is prosecuting the case.
Former Deportation Officer Convicted of Accepting Bribes, Harboring an Undocumented Immigrant and Lying to U.S. Immigration AuthoritiesRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man was convicted by a federal jury today of accepting cash bribes and sex in exchange for providing employment authorization documents and concealing his employment of an undocumented immigrant at a hair salon he owned, U.S. Attorney Paul J. Fishman announced.
Arnaldo Echevarria, 39, a former deportation officer with Immigration and Customs Enforcement (ICE), was convicted of Counts 1-6 and Counts 8 and 9 of an indictment charging him with seven counts of accepting bribes, one count of harboring an undocumented immigrant and one count of making false statements to immigration authorities. He was acquitted on Count 7, one of the bribery counts. Echevarria was convicted following a one-week trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for one day before returning the guilty verdict.
According to statements made in court and evidence presented at trial:
As a deportation officer, Echevarria enforced immigration and customs laws by identifying, locating, arresting and removing undocumented immigrants from the United States and by supervising certain undocumented immigrants who had not yet been deported. Undocumented immigrants subject to a deportation order often were able to obtain employment authorization documents which allowed them to legally work in the United States for a one-year period and which could be renewed annually.
Between 2012 and 2014, Echevarria agreed to obtain employment authorization documents for undocumented immigrants who were not lawfully present in the country. In return, Echevarria demanded and received approximately $75,000 in cash bribes, and demanded and received sex from one individual. In order to conceal them from immigration authorities, Echevarria falsely stated that they had been granted temporary protected status, which allows nationals from certain countries experiencing environmental disaster, ongoing armed conflict, or other extraordinary conditions to lawfully remain in the United States. None of the individuals who bribed Echevarria had actually applied for, or received, temporary protected status.
In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve undocumented workers. However, Echevarria employed his girlfriend at the time, an undocumented immigrant, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.
Echevarria knew his girlfriend resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.
The six bribery counts on which Echevarria was convicted each carry a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, or three times the monetary equivalent of the things of value accepted by the defendant. The charges of harboring and making false statements are each punishable by a maximum potential penalty of five years in prison and $250,000 fine, or twice the gross gain or loss arising from the offense. Echevarria’s sentencing is scheduled for June 19, 2017.
U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Keith Barwick, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Barbara Llanes, Deputy Chief of the General Crimes Unit.
Florence Man Sentenced to over 11 Years on Federal Drug ChargeRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina---- United States Attorney Beth Drake announced today that Cederic Sharnard Bruce, age 31, of Florence, SC, was sentenced in federal court in Florence for possession with intent to distribute a quantity of cocaine and a quantity of cocaine base in violation of Title 21, United States Code, Section 841(a)(1). United States District Judge Bruce H. Hendricks of Charleston sentenced Bruce to 140 months in federal prison.
Evidence presented at Bruce’s guilty plea hearing established that Bruce and others in the Florence County and Darlington County area were subjects in an ongoing drug distribution conspiracy investigation dating back to 2005 conducted by the Florence County Sheriff’s Office (FCSO), the Florence Police Department (FPD), the Darlington County Sheriff’s Office (DCSO) and the Federal Bureau of Investigation (FBI) in cooperation with the Pee Dee Violent Crimes Task Force. As part of that investigation, in July 2013, a Florence Police Department officer stopped a vehicle in which Bruce and others were traveling. Police officers ultimately searched the car, and found a quantity of cocaine and a quantity of cocaine base hidden in the car.
The case was investigated by agents Florence County Sheriff’s Office (FCSO), Florence Police Department, the Darlington County Sheriff’s Office (DCSO) and the Federal Bureau of Investigation (FBI) in cooperation with the Pee Dee Violent Crimes Task Force. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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Five Baltimore Men Indicted for the Armed Robbery of a Federally Licensed Firearms DealerRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted five men on charges of conspiracy to possess, conceal and sell stolen firearms; conspiracy to commit a commercial robbery; and using, carrying and brandishing a firearm during and in relation to crime of violence, in connection with the armed robbery of a federally licensed firearms dealer. The indictment was returned on March 8, 2016.
The indictment charges the following defendants, who are all from Baltimore:
David Wise, a/k/a Rambo and Rampage, age 22; Raymond McCullough, a/k/a Troop, age 33; Reginald Smith, a/k/a Young Loc and Loc, age 24; Tavon Hawkins, a/k/a G and Tay, age 34; and
Lerron Sheppard, a/k/a D-Loc, age 23.The indictment was 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; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
“Keeping illegal firearms from hitting the streets of Baltimore is ATF’s number one priority,” said ATF Special Agent in Charge Daniel L. Board. The men and women of the ATF Baltimore Field Division will relentlessly pursue any criminals who attempt to acquire or distribute stolen weapons and we will utilize all of our resources to ensure that they are held accountable for their violent and dangerous actions.”
According to the seven-count indictment, from August 2016 through September 2016, the defendants conspired to rob a bait, tackle and gun store in Dundalk, Maryland, that was a federally licensed firearms dealer. As part of the conspiracy, the defendants planned to use firearms and a stolen vehicle to commit the robbery. The indictment alleges that on August 5, 2016, the defendants, brandishing firearms, robbed the store, stealing 36 firearms, including three assault rifles and silencers, cash, a computer and monitor, credit cards and a cellular phone. The defendants fled in the vehicle they had stolen to use during the robbery to an apartment in Baltimore, where they divided the cash and firearms among themselves. The indictment alleges that from time of the robbery until March 8, 2017, the defendants possessed, concealed, stored, sold and otherwise disposed of the stolen firearms.
Each of the defendants faces a maximum sentence of 10 years in prison for the firearms conspiracy; 20 years in prison for the commercial robbery conspiracy; 20 years in prison for the commercial robbery; and a mandatory minimum of seven years and a maximum of life in prison for using and brandishing a firearm during a crime of violence. Wise, McCullough and Smith also face 10 years in prison for being a felon in possession of a firearm.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF, FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney David Metcalf, who is prosecuting the case.
Federal jury finds Opelousas man guilty of robbing three businesses at gunpointRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found an Opelousas man guilty Tuesday of robbing three local businesses at gunpoint.
Carey Wardell Reed, 28, of Opelousas, La., was found guilty of three counts of interference with commerce by robbery; two counts of using, carrying and brandishing a firearm during a violent crime; and one count of using, carrying and discharging a firearm during a violent crime. After the conclusion of the trial, the jury deliberated for approximately two and a half hours before delivering the guilty verdict. United States District Judge Rebecca F. Doherty presided over the trial.
According to the evidence presented at trial, Reed robbed three commercial establishments in Opelousas in 2014. On May 2, 2014, Reed robbed the Tiger Stop #7 gas station. He fired a shot, and told everyone inside to “get down.” He then had the employees empty the cash register of $704 and fled the scene. One May 10, 2014, Reed robbed the Chicken King restaurant. He entered the restaurant with a gun, which he pointed at the cashier. He demanded money and threatened to harm those present. The cashier turned over $985, and Reed fled. On September 22, 2014, Reed robbed a Family Dollar store. He entered the store with a handgun and demanded money. Before leaving, he also threatened the employees’ lives and took $1,400. The defendant was arrested on September 30, 2014 after police conducted a traffic stop. Extensive ballistic and digital forensic evidence were key in proving Reed to be the perpetrator in all three robberies.
Reed faces up to 20 years in prison for each of the robbery counts, seven years in prison on each of the brandishing offenses, and 10 years in prison for the discharging offense. Because the defendant has been convicted of multiple firearms offenses, two of the firearms convictions are subject to a mandatory minimum sentence of 25 years of imprisonment for each count. Sentencing will be set at a later date.
The FBI and the Opelousas Police Department investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Joseph T. Mickel prosecuted the case.
Federal Court Orders Eastern Washington Dentist and Spouse to Shut Down Their Dental Care BusinessRead the Press Release
A federal court in Spokane, Washington has found Dr. James Hood, a dentist, and his wife, Karen Hood, in contempt for violating the Court’s previous permanent injunction requiring them to timely file payroll tax returns and pay payroll taxes, announced Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. The Court ordered the Hoods to close their dental care businesses, cease operating as employers, and barred them from opening any new businesses where the Hoods would serve as employers.
On March 8, U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington found James Hood and Karen Hood in contempt after they demonstrated a consistent pattern of disregarding their tax obligations by making incomplete employment tax payments, making dishonored payments, and missing deadlines. The Court had previously entered a permanent injunction requiring James and Karen Hood, and their entities, to comply with the federal employment tax laws.
According to the United States’ supplemental filing in the case, the Hoods had failed to show full compliance with the tax laws and the Court’s injunction by Jan. 31, as the Court had ordered. The court found that, the Hoods had failed to pay their taxes for the Fourth Quarter 2016 by the end of January 2017. The court also found that the Hoods had attempted to make payroll tax payments that were dishonored due to insufficient funds in their accounts.
Acting Assistant Attorney General Hubbert thanked the revenue officer of the Internal Revenue Service (IRS) Field Collection for investigating the taxpayer’s tax compliance.
In the past decade, the Tax Division has obtained injunctions against hundreds of employers that fail to meet their employment tax obligations. Information about these cases is available on the Justice Department’s website.
Federal Court Orders Eastern Washington Dentist and Spouse to Shut Down Their Dental Care BusinessRead the Press Release
WASHINGTON - A federal court in Spokane, Washington has found Dr. James Hood, a dentist, and his wife, Karen Hood, in contempt for violating the Court’s previous permanent injunction requiring them to timely file payroll tax returns and pay payroll taxes, announced Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. The Court ordered the Hoods to close their dental care businesses, cease operating as employers, and barred them from opening any new businesses where the Hoods would serve as employers.
On March 8, U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington found James Hood and Karen Hood in contempt after they demonstrated a consistent pattern of disregarding their tax obligations by making incomplete employment tax payments, making dishonored payments, and missing deadlines. The Court had previously entered a permanent injunction requiring James and Karen Hood, and their entities, to comply with the federal employment tax laws.
According to the United States’ supplemental filing in the case, the Hoods had failed to show full compliance with the tax laws and the Court’s injunction by Jan. 31, as the Court had ordered. The court found that, the Hoods had failed to pay their taxes for the Fourth Quarter 2016 by the end of January 2017. The court also found that the Hoods had attempted to make payroll tax payments that were dishonored due to insufficient funds in their accounts.
Acting Assistant Attorney General Hubbert thanked the revenue officer of the Internal Revenue Service (IRS) Field Collection for investigating the taxpayer’s tax compliance.
In the past decade, the Tax Division has obtained injunctions against hundreds of employers that fail to meet their employment tax obligations. Information about these cases is available on the Justice Department’s website.