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24 February 2017
Irondequoit Woman Sentenced for Production and Distribution of Child PornographyRead 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 a Megan McDonald, 36, of Irondequoit, NY, who was convicted of production of child pornography, distribution of child pornography and possession of child pornography, was sentenced to 15 years in prison and 10 years of supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in March 2015, law enforcement officers interviewed Jason Cortese who advised that he had received images of child pornography from McDonald. A forensic review of images from Cortese’s iPhone recovered sexually explicit images of two prepubescent minors.Cortese has been convicted of enticement of a minor and was sentenced to 135 months in prison. Cortese used the internet and a smart phone to persuade a 12-year-old minor to engage in sexually explicit activity.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
On February 23, 2017, a controlled delivery of 18 kilograms of “sham” cocaine was made by Wilkie to Nowak at a local hotel. During their meeting, Wilkie and Nowak discussed, among other things, Nowak’s ongoing relationship with the Mexican cocaine source of supply. At one point during the conversation, Wilkie opened the duffel bag to expose the 18 “sham” kilograms of cocaine. Following the conversation, Nowak took possession of the duffel bag containing the 18 “sham” kilograms of cocaine and exited the hotel room. As he exited the motel, Nowak was arrested by DEA agents.
Following that arrest, arrangements were made for Nowak to deliver the cocaine to defendant Rodriguez at an automotive shop on Kenmore Avenue in the Town of Tonawanda. Once again, drug related conversation preceded the transfer of the 18 “sham” kilograms of cocaine from Nowak to Rodriguez. Rodriguez was arrested in possession of the duffle bag.
The defendants were arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and are being detained pending a hearing on February 28, 2017 at 10:00 a.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, The Drug Enforcement Administration, Fairview Heights, IL Resident Office, the Drug Enforcement Administration, Tucson District Office, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Erie County Sheriff’s Office, the Buffalo Police Department, the Niagara County Sheriff’s Office, the Niagara Falls Police Department, New York State Police Community Narcotics Enforcement Team, the Cattaraugus County Sheriff’s Department, the Niagara Frontier Transit Authority Police Department, the Hamburg Police Department, the Lackawanna Police Department, U.S. Border Patrol, Customs and Border Protection, Air and Marine unit, and the Cheektowaga Police Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Indictment Unsealed Charging Brothers with Conspiracy to Counterfeit United States Currency and Drug ChargesRead the Press Release
Oklahoma City, Oklahoma – An indictment was unsealed today charging DANIEL TIMOTHY JOHNSON, 33, of Bethany, Oklahoma, and BENJAMIN LEE JOHNSON, 31, of Oklahoma City, with conspiracy to counterfeit United States currency and drug charges, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. Daniel Johnson is also charged with additional counterfeiting counts and for illegally possessing a firearm and ammunition as a prior convicted felon. This case is the result of an investigation by the United States Secret Service assisted by the Oklahoma Bureau of Narcotics and Dangerous Drugs, United States Postal Inspection Service, and Homeland Security Investigations.
In Counts 1 and 2, the indictment alleges that from July 1, 2015, through February 19, 2016, the Johnson brothers illegally manufactured marijuana plants and maintained an illegal drug house at 900 N. Rockwell, Oklahoma City. If convicted, they each face up to 5 years in prison and a $250,000 fine on the manufacturing charge and up to 20 years in prison and a $250,000 fine on the manufacturing charge.
In Count 3, the indictment alleges that the Johnson brothers conspired to use computer software to digitally manipulate images of Unites States Federal Reserve Notes. It is alleged that three types of printing technologies were used, including offset lithography, inkjet, and toner technology, to print the counterfeit notes onto sheets of paper. It is alleged that the paper was chemically treated prior to printing the counterfeit notes to prevent potential image distortion by inhibiting the ink’s ability to be absorbed into the paper. The printed sheets were dried on drying racks after which the defendants would sell cuts and uncut sheets to buyers throughout the United States. The counterfeiting operation is alleged to have taken place in commercial office space leased by Daniel Johnson on May 1, 2014, at the Regency Park Plaza in Oklahoma City. It is alleged that the Johnsons manufactured approximately $149,200 of completed counterfeit currency that was found inside the Regency Park Plaza office on Februay19, 2016. If convicted, each defendant faces up to five years in prison and a $250,000 fine on the Count 3 conspiracy charge.
Count 4 alleges that Daniel Johnson specifically engaged in counterfeiting United States currency. If convicted, he faces up to 20 years in prison and a $250,000 fine on this charge.
Count 5 alleges that Daniel Johnson illegally possessed analog, digital and electronic images of United States currency. If convicted, he faces up to 25 years in prison and a $250,000 fine on this charge.
In Counts 6 and 7, Daniel Johnson is also charged with being a prior convicted felon illegally in possession of ammunition on February 19, 2016, and a firearm and more ammunition on May 19, 2016. If convicted, he faces up to 10 years in prison and a $250,000 fine on each count.
Benjamin Johnson was arrested earlier today and appeared before a United States Magistrate Judge this afternoon. Daniel Johnson remains at large and is considered a fugitive. Anyone with knowledge of his whereabouts is asked to contact the United States Secret Service or the FBI.
The public is reminded the indictment merely contains accusations and that the defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
The case is being prosecuted by United States Attorney Mark Yancey and Assistant U.S. Attorney Charles Brown.
Illinois Man Sentenced to 36 Years for Transportation of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Michael Michalak (54) to 36 years and 8 months in federal prison for aiding and abetting the transportation of child pornography and distributing child pornography. The Court also ordered Michalak to forfeit two cellphones and a computer that had been used in furtherance of the commission of the offenses. He pleaded guilty on November 30, 2016.
According to court documents, Michalak used Facebook and other mobile applications to send links to images and videos child of pornography to an undercover FBI agent. During the sentencing hearing, the government presented evidence that Michalak had sexually assaulted children before the commission of this offense. The Court found that Michalak engaged in a pattern of activity involving the sexual exploitation of minors.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Huntsville Woman Indicted for Illegal Firearms DealingsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Huntsville woman for dealing firearms illegally, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
A six-count indictment filed in U.S. District Court charges TALARI STARRLEATTA WILLIAMS, 24, with dealing in firearms without a license between May 30, 2015, and Sept. 18, 2015, in Madison County. The indictment also charges Williams with five counts of providing false information when buying 12 firearms during that time period.
According to the indictment, Williams bought the guns from a licensed dealer, but submitted a false statement to an employee of the gun store representing that she was buying the guns for herself, when she was purchasing them for someone else.
The guns listed in counts two through six as purchased through Williams’ misrepresentation were: a Jimenez .380-caliber pistol on May 30, 2015; a Hi-Point .380-caliber pistol, a Hi-Point .40-caliber pistol and a Hi-Point 9mm pistol on Aug. 8, 2015; a Taurus .45-caliber/.410-gauge revolver, a Smith & Wesson .40-caliber pistol and a Hi-Point .40-caliber pistol on Aug. 25, 2015; a Hi-Point .45-caliber pistol, a Jimenez .380-caliber pistol and a Cobra .380-caliber pistol on Sept. 2, 2015; and a Cobra .380-caliber pistol and a Jimenez .380-caliber pistol on Sept. 18, 2015. All the guns were bought at JC’s Guns and Tackle in Huntsville.
The maximum penalty for dealing in firearms without a license and for providing false information when buying firearms is 10 years in prison and a $250,000 fine.
The ATF investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Indicts Birmingham Man for Robbing Bank and Taking HostagesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man for the Jan. 10 robbery of a credit union branch in Tuscaloosa, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges CEDRICK LAMAR COLLINS, 18, with one count of bank robbery and two counts of hostage-taking during the robbery of an Alabama Credit Union on Paul Bryant Drive East. The credit union’s deposits are insured by the Federal Deposit Insurance Corporation.
One hostage-taking count charges that Collins, while attempting to avoid apprehension for bank robbery, forced 11 people to accompany him without their consent. The second hostage count charges that Collin’s took the 11 credit union employees hostage in order to compel a governmental organization, in this case the Tuscaloosa and University of Alabama police departments, the Tuscaloosa County Sheriff’s Office and the FBI, not to take him into custody as an explicit condition for release of the hostages.
Police were able to arrest Collins at the credit union the day of the robbery and released all employees who had been held inside.
The maximum prison penalty for bank robbery is 20 years. The charge of taking a hostage while attempting to flea a bank robbery carries a minimum 10-year prison sentence. The charge of taking someone hostage to force a specific government action carries a maximum penalty of life in prison.
The FBI investigated the case in conjunction with the Tuscaloosa and University of Alabama police departments and the Tuscaloosa County Sheriff’s Department. Assistant U.S. Attorney Brad Felton is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Canadian MoneyGram and Western Union Agent Sentenced to 6o Months’ Imprisonment on Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alex Mgbolu, age 45, of Toronto, Canada, was sentenced February 23, 2017 to 60 months’ imprisonment by Chief United States District Court Judge Christopher C. Conner for conspiring to defraud hundreds of American citizens out of more than $2.1 million in an international mass marketing consumer fraud scheme. Chief Judge Conner also ordered Mgbolu to pay $1,372,602 in restitution.
According to United States Attorney Bruce D. Brandler, Mgbolu, a former Western Union and MoneyGram agent, pleaded guilty in August 2016, to conspiracy to commit mail fraud, wire fraud and money laundering.
Mgbolu conspired with Chima Nneji, William Nneji, and other unnamed individuals between July 2002 and May 2010, to commit the crimes. Mgbolu was extradited to the United States from Canada.
Mgbolui was the owner/operator of a Western Union agency called FA CAM Associates (FA CAM) and a MoneyGram agency also known as FA CAM. Both agencies were located in Toronto, Canada. Between July 2002 and May 2010, international mass marketing fraudsters allegedly instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Canada where the transfers were paid out by Mgbolu at FA CAM. Mgbolu concealed the fraudsters’ identity by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police and U.S. Postal Inspection Service have determined that over 90% of the payee addresses and identification numbers entered at FA CAM were invalid. For his role in the scheme Mgbolu retained a portion of the money transfers before sending the balance of the proceeds on to the fraudsters.
As a Western Union agent, between July 2002 and April 2006, FA CAM paid out 213 money transfers totaling $453,119 that were reported by the senders as having been fraud induced. As a MoneyGram agent, FA CAM paid out 67 transfers totaling $149,723 between August 2006 and September 2007 that were reported by the senders as having been fraud induced.
After Western Union terminated FA CAM and MoneyGram restricted FA CAM’s ability to pay out money transfers, money transfer checks from other fraud-complicit MoneyGram Western Union agents in the greater Toronto area were deposited into FA CAM’s bank account. The deposit of fraudulently induced funds into what appears to be a legitimate business bank account and the subsequent reissuance of the proceeds via checks and wire transfers helps to launder the proceeds and conceal the identity of the fraudsters is known as “check pooling.”
Overall, between July 2002 and May 2010, FA CAM and the 13 complicit Western Union and MoneyGram agents paid out 907 money transfers totaling $2,127,410 that were reported by the senders as being fraud induced.
Codefendant Chima Nneji pleaded guilty to the same conspiracy charge before Judge Conner on July 21, 2016. Nneji was sentenced on December 7, 2016, to 45 months’ imprisonment and ordered to pay $381,729 in restitution.
The lower restitution amount is due in part to monies compensated to victims as part of the U.S. v. MoneyGram, deferred prosecution agreement in the Middle District of Pennsylvania which established a $100 million restitution fund in 2013 for MoneyGram customers that were victims of consumer fraud. A $586 million dollar restitution fund was also recently established for victims of consumer frauds who sent their monies through the Western Union money transfer system. Like the MoneyGram fund, the Western Union fund was established in January of this year as a result of a deferred prosecution agreement with the Middle District of Pennsylvania and the US Department of Justice.
Codefendant William Nneji remains a fugitive from justice.
The case was investigated by the Harrisburg Office of the United States Postal Inspection Service, and assisted by the Toronto Police. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Former Bank Teller Sentenced for EmbezzlementRead the Press Release
Boston – A former bank teller at the former Lenox National Bank was sentenced today in U.S. District Court in Springfield in connection with embezzling more than $378,000 from the bank and concealing the theft with false bank records.
Melissa K. Scolforo, 48, of Lee, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison, three years of supervised release and ordered to pay $378,000 in restitution. In May 2016, Scolforo pleaded guilty to one count of conspiracy to embezzle funds from a bank.
Scolforo, a teller at Lenox National Bank for 24 years, conspired with another bank teller, Bernadine Powers, to embezzle money from the teller drawers and make false entries in bank records to hide the thefts. Scolforo began stealing money in January 2009, and Powers joined the scheme about a year later. The two tellers stole a total of $378,000 which they used to pay personal expenses – including shopping, dining at restaurants, and paying household bills –before the embezzlement was brought to light during a bank audit in November 2013.
In December 2016, Powers was sentenced to 18 months in prison, three years of supervised release and ordered to pay restitution of $299,793.
Lenox National Bank has since been acquired by Adams Community Bank.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Karen L. Goodwin of Weinreb’s Springfield Branch Office prosecuted the case.
Federal Prison Inmate Sentenced for Possession of ContrabandRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Mario L. Gordon, age 37, of Chicago, Illinois was sentenced to 6 months’ imprisonment on February 23, 2017 for possession of a controlled substance inside the federal prison at Greenville, Illinois.
Gordon’s 6-month sentence must be served consecutively to his original 2002 sentence of 360 months for Possession With Intent to Deliver Cocaine.
At his change of plea hearing, Gordon admitted that he had possessed "K-2," a form of synthetic marijuana, on July 1, 2016 while he was an inmate at the Federal Correctional Institution ("FCI") in Greenville, Illinois.
The investigation which resulted in Gordon’s arrest and conviction was conducted by the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Federal Grand Jury Indicts Two Men in Unrelated Cocaine Distribution CasesRead the Press Release
BIRMINGHAM – A federal grand jury today returned separate and unrelated indictments against two men for each possessing multiple pounds of cocaine in Greene County, announced Acting U.S. Attorney Robert O. Posey and Drug Enforcement Administration Assistant Special Agent in Charge Bret Hamilton.
A one-count indictment filed in U.S. District Court charges SILVEIIO CANALES-LICONA, 56, of Roosevelt, N.Y., with possessing with intent to distribute five kilograms or more of cocaine in Green County on Dec. 22. A second one-count indictment charges ANDRE RICHARD HARRIS, 54, of Detroit, with the same offense on Nov. 21 in Greene County.
Both men were arrested following traffic stops on Interstate 20/59.
The prison penalty for possession with intent to distribute five kilograms (11 pounds) or more of cocaine is 10 years to life. The maximum fine is $10 million.
Assistant U.S. Attorney Austin Shutt is prosecuting both cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts Two Dallas Men for Distributing Large Amounts of Heroin in North TexasRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment yesterday charging Reyes Alvarez, 32, and Pedro Calixto, 27, both of Dallas, Texas with one count each of conspiracy to possess with the intent to distribute one kilogram or more of heroin, announced U.S. Attorney John Parker of the Northern District of Texas.
A date and time for their arraignments has not been set yet.
According to documents filed in the case, in January 2017, Alvarez and Calixto worked together to distribute large amounts of heroin in the Dallas area.
Specifically, on January 26, 2017, the investigation revealed Alvarez and Calixto drove to a gym, and while en route, Calixto received a call asking if he could sell a kilogram of heroin. Following several calls, Calixto agreed to deliver a kilogram of heroin. Calixto and Alvarez left the gymnasium and returned to an apartment at Kiest and Polk. A short time later, the two left the apartment and drove south toward the area of Red Bird Lane and South Polk Street. A Dallas County Sheriff’s Deputy stopped the vehicle occupied by Alvarez and Calixto for having an expired buyer’s license plate. Alvarez presented a fraudulent California Driver’s license, and the officer noted that the vehicle smelled of freshly burnt marijuana. The officers asked Alvarez and Calixto to step out of the vehicle. Officers searched the vehicle and found a kilogram of heroin under the passenger seat where Calixto had been seating. A field test of the heroin yielded a positive result for the presence of heroin.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count in the indictment carries a mandatory minimum sentence of 10 years and a maximum penalty of life imprisonment and 10,000,000 fine.
The matter is being investigated by the Drug Enforcement Administration and the Dallas Police Department. Assistant U.S. Attorney Suzanna Etessam is in charge of the prosecution.
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Eleventh Defendant Pleads Guilty to being involved in Loren Toelle Drug Trafficking OrganizationRead the Press Release
COEUR D'ALENE – William Jaquett Barker, 31, of Williston, North Dakota, pleaded guilty yesterday to conspiracy to distribute controlled substances, U.S. Attorney Wendy J. Olson announced. Barker was indicted by a federal grand Jury in Coeur d'Alene in April of 2016.
According to the plea agreement, Barker admitted that he and others joined and agreed with each other to distribute controlled substances in Idaho and elsewhere. Although the conspiracy lasted from at least 2009 until the arrests on February 4, 2016, Barker did not join the conspiracy until 2015. Barker maintained a residence in North Dakota where a member of the conspiracy came to sell heroin and oxycodone. Barker also admitted that he helped conceal, transport and sell controlled substances during his involvement.
The charge of conspiracy to distribute controlled substances is punishable by up to 20 years in prison, a maximum fine of $1,000,000, and up to a life time of supervised release.
Sentencing is set for June 20, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated as part as the Organized Crime and Drug Enforcement Task Force which included the CDA Police, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service, Criminal Investigations (IRS-CI), Kootenai County Sheriff, North Idaho Violent Crimes Task Force (NIVCTF), and U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
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.
Eleven Individuals and One Company Charged in Florida with Exporting Prohibited Articles to SyriaRead the Press Release
Ali Caby, a/k/a “Alex Caby,” 40, a U.S. permanent resident currently residing in Bulgaria; Arash Caby, a/k/a “Axel Caby,” 43, of Miami, Florida; and Marjan Caby, 34, of Miami, Florida, were arrested and charged with exporting prohibited articles to Syria, in violation of the Syria trade embargo, commerce regulations and a U.S. Department of Treasury designation based on an Indictment charging eleven individuals and one foreign company. The defendants were charged by indictment for their alleged participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR), and the Global Terrorism Sanctions Regulations by exporting dual-use goods, that is, articles that have both civilian and military application. The dual-use goods were exported to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by the U.S. Department of the Treasury’s Office of Foreign Assets Control for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). Also charged in the indictment were Adib Zeno, Rizk Ali, Ammar Al Mounajed, Zhelyaz Andreev, Mihaela Nenova, Lyubka Hristova, Iskren Georgiev, Ivan Sergiev, and Syrian Arab Airlines, a/k/a “Syrian Air.”
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
Specifically, the defendants are charged with: conspiracy to violate to IEEPA and to defraud the U.S. Government, in violation of Title 18, U.S. Code, Section 371; substantive violations of IEEPA and the EAR, specifically Title 15, Code of Federal Regulations, Part 746.9(a), regarding the Syrian Embargo; smuggling goods from the U.S., in violation of Title 18, United States Code, Section 554(a); submitting false or misleading export information, in violation of Title 13, U.S. Code, Section 305; conspiracy to commit money laundering, in violation of Title 18, U.S. Code, Section1956 (h); and false statements, in violation of Title 18, U.S. Code, Section 1001.
According to court documents, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami, Florida export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Marjan Caby, AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. All three defendants closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Arab Airlines, whose activities have assisted the Syrian government’s violent crackdown on its people.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the FBI, DOC, ICE-HSI, Defense Criminal Investigative Service and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Eleven Individuals Including Two Miami-Dade County Residents and One Company Charged with Exporting Prohibited Articles to SyriaRead the Press Release
Two Miami-Dade County residents and one foreign national were arrested and charged with exporting prohibited articles to Syria, in violation of the Syria trade embargo, commerce regulations and a U.S. Department of Treasury designation based on an Indictment charging eleven individuals and one foreign company.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mary B. McCord, Acting Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Ali Caby, a/k/a “Alex Caby”, 40, Arash Caby, a/k/a “Axel Caby”, 43, and Marjan Caby, 34, are charged by indictment for their alleged participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR), and the Global Terrorism Sanctions Regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by the U.S. Department of the Treasury’s Office of Foreign Assets Control for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). Also charged in the indictment were Adib Zeno, Rizk Ali, Ammar Al Mounajed, Zhelyaz Andreev, Mihaela Nenova, Lyubka Hristova, Iskren Georgiev, Ivan Sergiev, and Syrian Arab Airlines, a/k/a “Syrian Air.”
Specifically, the defendants are charged with: conspiracy to violate to IEEPA and to defraud the U.S. Government, in violation of Title 18, United States Code, Section 371; substantive violations of IEEPA and the EAR, specifically Title 15, Code of Federal Regulations, Part 746.9(a), regarding the Syrian Embargo; smuggling goods from the U.S., in violation of Title 18, United States Code, Section 554(a); submitting false or misleading export information, in violation of Title 13, United States Code, Section 305; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section1956 (h); and false statements, in violation of Title 18, United States Code, Section 1001.
According to court documents, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Marjan Caby, as AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. All three defendants closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Arab Airlines, whose activities have assisted the Syrian government’s violent crackdown on its people.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the FBI, DOC, ICE-HSI, Defense Criminal Investigative Service, and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
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..
East Hartford Man Sentenced to More Than 8 Years for Distributing Heroin, Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COREY JERRICK, 30, of East Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 94 months of imprisonment, followed by four years of supervised release, for distributing heroin, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration Hartford Task Force investigation into a drug trafficking organization that distributed large quantities of heroin in the Hartford area.
Between March 2015 and May 2015, investigators intercepted numerous calls during which JERRICK discussed and arranged narcotics transactions. On May 13, 2015, one of JERRICK’s associates traveled from Hartford to New York City where law enforcement officers conducted a motor vehicle stop of the car and seized approximately $125,000 in cash.
JERRICK and several co-conspirators were arrested on June 4, 2015. On that date, a search of JERRICK’s East Hartford apartment revealed approximately 500 grams of heroin, thousands of bags used to package heroin, a heroin brand stamp and other items. Additional quantities of heroin and packaging materials were seized during searches of locations connected to JERRICK’s co-defendants.
JERRICK has been detained since his arrest on June 4, 2015. On September 13, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
JERRICK’s criminal history includes state drug convictions, and a federal conviction in 2012 for possession with intent to distribute heroin, which resulted in a 37-month prison term and three years of supervised release. JERRICK was released from federal prison in September 2014 and began serving his three-year term of supervised release.
Judge Bryant imposed a 70-month prison term for the heroin conspiracy conviction, and a consecutive 24-month prison term for the supervised release violation.
Six other individuals were charged as a result of this investigation.
This matter has been investigated by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Bristol, East Hartford, Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments, with the assistance of the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Concord Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced today that Leeland Eisenberg, of Concord, New Hampshire, pleaded guilty in federal court on Thursday to one count of bank robbery.
Information based on court filings and statements made at the change of plea hearing established that the Citizen’s Bank located at 875 Elm Street in Manchester, New Hampshire, was robbed by a lone white male on August 2, 2016 at approximately noon. The robber walked into the bank, approached the teller station and handed a teller a robbery note that stated “No alarms. No dye packs. I have a gun and I will shoot you and others if you put a dye pack in. Fill the bag with cash now.” The robber was an older white male with dark hair, eyeglasses, and wearing a blue jacket.
A witness in the vicinity of the bank identified the robber as Leeland Eisenberg. The witness had known Eisenberg in the past and recognized Eisenberg as he left the bank. An image of the robber taken by the bank’s security system was distributed to law enforcement. Law enforcement officers familiar with Eisenberg also identified the robber as Eisenberg after reviewing the images.
Eisenberg was arrested by two Manchester officers in the area of the Pine Street Cemetery at that evening. At the time of his arrest he had ten bags of what appeared to be crack cocaine on his person. Subsequent laboratory testing of the material in the bags established it was powder cocaine.
A sentencing hearing has been scheduled for June 9, 2017 at 10:00 a.m.
The case was investigated by the Manchester Police Department and is being prosecuted by Assistant United States Attorney Donald Feith.
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Colorado Resident Sentenced in Mail Fraud and Money Laundering CaseRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on Feb. 23, 2017, Dean J. Kostelecky, 58, Broomfield, CO., was sentenced before Chief US District Judge Daniel L Hovland to serve one and a half years in prison and three (3) years of supervised release. Judge Hovland also ordered that Kostelecky pay restitution in the amount of $212,159.70, and pay a $200 special assessment to the Crime Victim’s Fund. Kostelecky pled guilty on Nov. 9, 2016, to Mail Fraud and Money Laundering-Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activities.
Beginning in 2008 through about 2014, Kostelecky embezzled income from a trust fund that was set up by his parents. Kostelecky was appointed that head of the family trust following the passing of his parents and was instructed to evenly divide mineral royalties to each family member. Kostelecky would alter the IRS tax form 1099 that he would receive from the oil company to identify a lower amount. Kostelecky would then conceal the misappropriated amount by transferring the undistributed funds to multiple bank accounts that he controlled.
This case was investigated by the US Postal Inspector and the Internal Revenue Service.
Assistant US Attorney Cameron Hayden prosecuted the case.
Cleveland man sentenced for heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Terrell Allen, 33, of Cleveland, Ohio, was sentenced today to 24 months incarceration for distributing heroin, Acting U.S. Attorney Betsy Steinfeld Jividen announced.
Allen sold heroin in Ohio County on June 15 and June 30, 2016. Allen pled guilty to one count of “Possession with the Intent to Distribute and to Distribute Heroin” in September 2016.
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the Belmont County Drug Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Burlington Man Sentenced to 120 Months Imprisonment for Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA - On February 22, 2017, Anthony Maurice Walls, 41, of Burlington, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison on the charge of felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Walls was ordered to serve three years of supervised release to follow his prison term and to pay $100 to the Crime Victims’ Fund. Walls was found guilty of this charge by a Davenport jury on October 4, 2016.
Evidence presented at trial showed that just before midnight on October 23, 2015, Walls was involved in a dispute with two other people in Burlington. After the dispute, Walls entered a Burlington residence, and stole a shotgun and ammunition. Walls loaded the shotgun and attempted to leave the residence to return to the scene of the dispute. When occupants of the residence attempted to stop him, Walls, in an effort to appease them, tossed a small amount of crack cocaine at them. A concerned citizen saw Walls and called 911 while he was walking with the shotgun back to the scene of the dispute. Burlington police officers responded, and placed Walls into custody. Officers recovered the shotgun and additional crack cocaine nearby. Walls had multiple prior felony convictions from Des Moines and Henry Counties in Iowa.
This matter was investigated by the Burlington Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Breaux Bridge woman sentenced to 10 months for stealing more than $64,000 from a New Iberia companyRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced that a Breaux Bridge woman was sentenced Thursday to 10 months in prison for stealing more than $64,000 from a New Iberia company.
Joan C. Edgar, 66, of Breaux Bridge, La., was sentenced by U.S. District Judge Dee D. Drell on one count of wire fraud. She was also sentenced to three years of supervised release, $64,860 restitution and a $,5000 fine. According to the September 20, 2016 guilty plea, Edgar worked as an office manager for a New Iberia company. The company’s sole stockholder began negotiating with Edgar for her to buy the company in 2011, and while still working for the company, she stole $64,860. She concealed her actions by altering company records.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Boston Man Charged for West Bridgewater Bank RobberyRead the Press Release
BOSTON - A Boston man was charged yesterday in U.S. District Court in Boston in connection with robbing a branch of the Mansfield Bank in West Bridgewater on Nov. 22, 2016.
Stephen D. Williams, 54, was charged by criminal complaint with one count of bank robbery, and was detained following an initial appearance before U.S. District Court Chief Magistrate Judge Jennifer C. Boal. A probable cause and detention hearing is scheduled for Feb. 28, 2017.
According to court documents, on Nov. 22, 2016, an individual, later determined to be Williams, entered a branch of the Mansfield Bank in West Bridgewater. Brandishing a black semi-automatic firearm, Williams approached a teller and demanded money. The teller handed Williams cash, and Williams fled the area in a dark-colored Volkswagen. Bank surveillance cameras recorded images of Williams during the robbery.
On Nov. 23, 2016, law enforcement officers who were familiar with Williams, and the dark-colored Volkswagen, located and arrested Williams at an apartment complex in Brockton. Articles of clothing consistent with the clothing Williams had worn during the robbery were also recovered.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; West Bridgewater Police Chief Victor R. Flaherty, Jr.; Brockton Police Chief John Crowley; and U.S. Marshal John Gibbons of the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boscawen Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice today announced that
Patrick J. Brooks, II, pleaded guilty in federal court on Thursday to possessing oxycodone with intent to distribute. Brooks (37) lived in Boscawen prior to his arrest.
According to court documents and statements made during Brooks’ plea hearing, in June and July 2016, a Concord police detective officer made a series of undercover purchases of oxycodone from an individual who, during those transactions, told the undercover detective that Brooks was her supplier and had been selling oxycodone for eleven years. On July 20, 2016, police officers executed a search warrant at Brooks’ Boscawen home. The execution of the warrant yielded nearly 2,000 oxycodone pills and approximately $20,000 in cash. The cash recovered from Brooks’ home included currency that the Concord police detective used to buy oxycodone in one of the undercover transactions.
Brooks is scheduled to be sentenced on May 30, 2017.
This matter was investigated by the Concord Police Department with important assistance from the Boscawen Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Barbour County man pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Gerald Allen Freeman, 42, of Moatsville, West Virginia, was convicted for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Freeman admitted today to distributing methamphetamine on January 19, 2016 in Barbour County.
Freeman pled guilty to one count of “Distribution of Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
BLM Settles 2014 Wolf Derby Permit Lawsuit Agrees to Notify Environmental Groups of Future Permit ApplicationsRead the Press Release
BOISE – The Bureau of Land Management (“BLM”) has reached a settlement with several environmental groups to ensure that groups with an interest in public lands can meaningfully participate in the land management process whenever BLM might in the near future again be asked to consider applications for predator hunting contest permits utilizing portions of public lands in east-central Idaho, announced U.S. Attorney Wendy J. Olson. The settlement has been approved by Chief U.S. Magistrate Judge Ronald E. Bush.
The settlement ends litigation against BLM by plaintiffs WildEarth Guardians, Cascadia Wildlands, Kootenai Environmental Alliance, Center for Biological Diversity, Western Watersheds Project, and Project Coyote. The groups alleged that BLM failed to comply with the National Environmental Policy Act when it authorized the issuance of a special recreation permit to a non-profit group, Idaho for Wildlife, for a predator hunting contest in the Salmon, Idaho, area on November 13, 2014. BLM withdrew its authorization on November 25, 2014, and no permit was issued. In subsequent winters, 2015-16 and 2016-17, neither Idaho for Wildlife nor any other non-profit sought a permit for a hunting contest from BLM in the same area.
Olson stated that the settlement best served the agencies and the public interest. “Rather than continuing to press its legal defenses in court, BLM agreed to notify environmental group attorneys of any applications for contests involving the hunting of wolves or coyotes received by BLM’s Idaho Falls District Office over the next three years,” said Olson. “This opening of communication underscores BLM’s commitment to assuring that public input into future decisions would not be rushed or minimized.”
“We are pleased to have reached this settlement agreement with these plaintiff groups,” said Idaho Fall District Manager Mary D’Aversa of BLM. “Thousands of visitors recreate in and around Salmon every year and we will continue to take our land management responsibilities very seriously on behalf of all Americans.”
“The agreement reaffirms BLM’s commitment to transparency and to public involvement in the management of our public land,” said District Manager D’Aversa.
The plaintiff environmental groups have brought different claims against the United States Forest Service. Those claims remain outstanding.
Albuquerque Man Pleads Guilty to Aiding and Abetting Armed Bank RobberyRead the Press Release
ALBUQUERQUE – Christian Herrera, 20, of Albuquerque, N.M., pled guilty this morning in federal court to aiding and abetting the armed robbery of an Albuquerque-area bank.
Herrera was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Martin Huerta, 43, Christopher Gallegos, 33, and Isaiah Gallegos, 20, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint alleged that three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Miera, Huerta, Herrera, Isaiah Gallegos and Christopher Gallegos were subsequently indicted on an armed bank robbery charge on April 27, 2016.
During today’s proceedings, Herrera entered a guilty plea to the indictment. In entering the guilty plea, Herrera admitted aiding and abetting the armed robbery of the U.S. Bank branch on March 30, 2016, by acting as a lookout during the robbery.
Co-defendant Huerta previously entered a guilty plea to the indictment on Sept. 9, 2016, Miera entered a guilty plea on Oct. 11, 2016, and Christopher Gallegos entered a guilty plea on Feb. 13, 2017.
At sentencing, Herrera, Christopher Gallegos, Miera and Huerta each face a statutory maximum penalty of 25 years in federal prison. The co-defendants remain in custody pending sentencing hearings.
The one remaining co-defendant has entered a plea of not guilty to the indictment. Charges in complaints and indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Alabama Inmate and NE Alabama Woman Charged for Scheme to Defraud SSARead the Press Release
BIRMINGHAM – An Alabama state inmate and a northeast Alabama woman face federal charges for a scheme to defraud the Social Security Administration by working together to collect disability benefits that the inmate was not entitled to while in prison, announced Acting U.S. Attorney Robert O. Posey and Social Security Administration, Office of Inspector General, Special Agent in Charge Margaret Moore-Jackson, Atlanta Field Division.
A federal grand jury today indicted RICHARD EARL STANLEY, 56, of Boaz, on six wire fraud counts and one count of theft of government property for scheming with others to illegally receive $42,870 in Social Security Type II Disability Insurance Benefits payments between January 2013 and September 2015.
The U.S. Attorney’s Office on Feb. 17 filed an information against KRISTIN BLAIR FOX, 34, of Southside, charging her with four counts of wire fraud and one count of theft of government property for helping Stanley collect the disability payments that she knew neither of them was entitled to receive. In conjunction with the charges, the U.S. Attorney’s Office also filed a plea agreement with Fox.
The wire fraud counts for both defendants are based on ATM cash withdrawals from Stanley’s Comerica Bank account, where the SSA deposited Stanley’s disability benefits, according to the court documents.
Stanley was awarded the Social Security disability benefits in 2002. In June 2007, he was convicted of a felony and incarcerated, according to his indictment. The SSA notified him in September 2007 that he could no longer receive the benefits because he was confined in an institution in connection with a criminal case and that his stay was “being paid for with public funds.”
Stanley was incarcerated again in March 2012, but in July 2012 provided documentation to SSA that he was released from custody in June of that year, so his benefits could be reinstated, according to his indictment. When he was convicted of a felony later in 2012, Stanley did not notify the SSA that he had been re-incarcerated, because he knew he would not be entitled to receive benefits while in custody, the indictment states.
In January 2013, according to his indictment, a fellow inmate referred Stanley to Fox, as someone who might help Stanley access his disability benefits and have money transferred to his prison commissary account.
According to Stanley’s indictment and Fox’s information and plea agreement, their scheme to illegally obtain the disability payments took place as follows:
Stanley contacted Fox by letter in February 2013 and offered to pay her to help him access is disability payments. He arranged for Fox to collect his personal property at the prison, which included his Comerica Bank debit card. Their initial agreement was for Fox to take $175 each month from the SSA funds and deposit $300 monthly into Stanley’s prison commissary account.
In the ensuing months, Fox requested money and complained when Fox failed to send it. Fox continued to withdrew money from the Comerica account for herself, without Stanley’s knowledge.
Stanley’s debit card was to expire in December 2014 and Stanley gave Fox directions on how to renew it through Social Security, but Fox did not attempt to do so. The SSA terminated Stanley’s benefits in September 2015.
The SSA-OIG investigated the case, which Assistant U.S. Attorney Tamarra Matthews Johnson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
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.
Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
According to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
Active Duty Air Force Master Sergeant Sentenced to Prison for Accepting Bribes in a Government Contract Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – United States Air Force Master Sergeant Cody Boone Covert, 43, of Fort Walton Beach, was sentenced late yesterday to 23 months in prison and $126,300 in restitution for conspiracy (to commit theft of honest services and wire fraud) and bribery by a public official. Co-conspirator Michael Allen Braun, 54, of Forest Lake, Minnesota, is scheduled to be sentenced on April 10 at 1:00 p.m. at the United States Courthouse in Pensacola for conspiracy and bribery of a public official. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In January 2014, MSgt. Covert, 901st Aircraft Maintenance Squadron, Hurlburt Field, was tasked with procuring specialized equipment in support of C-130 Special Operations Aircraft. Braun, who owned the company Trans Global Storage Solutions, conspired with Covert to obtain a contract from the United States Air Force. Prior to the solicitation of the contract, Braun agreed to provide Covert 45% of the profit from the contract proceeds, if Covert ensured that Trans Global won the contract. Covert submitted a request to purchase the specialized equipment. Because Covert was the requester of the equipment, he was chosen to evaluate each proposal for technical acceptance. Subsequently, Covert decided the Trans Global proposal was the only proposal technically acceptable for the government requirement. After Trans Global was fraudulently awarded the $126,300 contract from the United States Air Force via Covert’s inside influence, Covert and Braun split the proceeds. Covert pled guilty on October 28, 2016, and Braun pled guilty on January 12, 2017.
“The United States Attorney’s Office, along with our other federal, state, and local government partners, is committed to upholding the law by exposing corruption and pursuing justice for those lawbreakers who abuse their authority and positions of trust," said U.S. Attorney Canova. "I commend the work of the investigating and prosecuting team on this case. Public service carries a high ethical standard, and no one is above the law.”
Special Agent-in-Charge Wendell W. Palmer, United States Air Force Office of Special Investigations-Procurement Fraud Detachment 5 Southeast, stated, “This was a great outcome for the investigation and prosecution of those who would do damage to the integrity of the U.S. Air Force acquisition process. Dedicated and thorough work on the part of investigators and prosecutors alike have once again protected the warfighting capability of the world’s greatest air and space fighting force. The teamwork exhibited by investigators and prosecutors, in conjunction with the court, sends a strong message that fraud against our government will not be tolerated.”
“The Defense Criminal Investigative Service, along with our investigative partners and the U.S. Attorney’s Office, will bring to justice anyone who takes bribes and kickbacks to undermine the integrity of the Department of Defense,” commented Special Agent-in-Charge John F. Khin, DCIS, Southeast Field Office. “Corruption and fraud in DoD programs also jeopardizes the safety of our warfighters.”
The case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency. The case was prosecuted by Assistant U.S. Attorney James M. Ustynoski.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
23 February 2017
Woodland Park Woman Sentenced to 27 Years in Federal Prison for Producing Child Pornography While Sexually Abusing Minor Child to Whom She Had AccessRead the Press Release
DENVER – Rhiannon Carnahan, age 30, of Woodland Park, Colorado, was sentenced earlier this week to serve 324 months (27 years) in federal prison by U.S. District Court Judge R. Brooke Jackson, Acting U.S. Attorney Bob Troyer, Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Acting Special Agent in Charge John Eisert announced. Following her prison sentence, Carnahan was ordered to serve 10 years of supervised release. The defendant, who appeared at the hearing in custody, was remanded at its conclusion.
Carnahan and a co-defendant were first charged by criminal complaints on April 23, 2015. They were then indicted by a federal grand jury in Denver on May 6, 2015. On March 31, 2016, Carnahan pled guilty before Judge Jackson. She was sentenced on February 21, 2017. Co-defendant Brandon Tyler Hill had pled guilty and was sentenced by Judge Jackson to serve 360 months (30 years) in federal prison for his role in the production of child pornography. Hill will spend his entire life on supervised release.
According to court documents, the Colorado Springs Police Department initiated an investigation after a civilian witness contacted law enforcement to report that Hill had sent her unwanted child pornography images via email and was being extorted to produce more child pornography images. As part of the investigation, it was determined that the defendant utilized numerous identities, including that of an ICAC police officer, to attempt to make the civilian witness to produce child pornography. The investigation revealed that Hill was also communicating online with co-defendant Rhiannon Carnahan, who he learned had access to Minor #1, a child who was 3 years old when the offense conduct began. Hill used various pseudonyms to communicate with Carnahan. Hill made numerous and repeated requests for images and videos depicting Minor #1 engaged in sexually explicit conduct. During the course of the communications and in response to Hill’s requests for child pornography depicting Minor #1, Carnahan sexually abused Minor #1 over a three-month time frame, used her cell phone to take images and videos of that abuse, and sent those images and videos to Hill. Minor #1 was a child in Carnahan’s care when Carnahan sexually exploited Minor #1. Carnahan is one of a growing number of women charged with child pornography crimes in the District of Colorado.
The Carnahan case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Carnahan is being prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator, assigned to the Cybercrime and National Security Section of the Colorado U.S. Attorney’s Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin man admits falsely claiming he was a Navy SEAL wounded in combatRead the Press Release
A Wisconsin man will be sentenced later this year after admitting to falsely claiming he was a Navy SEAL wounded four times in Vietnam, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kenneth E. Jozwiak, 67, of Kenosha, Wisconsin, is scheduled to be sentenced May 18 after pleading guilty to unlawfully exhibiting a military discharge certificate, theft of government money, making false statements to federal agents, and attempting to obstruct an official proceeding.
“This defendant’s lies about his service are an affront to those who saw combat and those wounded fighting on behalf of our nation,” Rendon said. “This defendant did neither, and falsely inflated his service record in an effort to get additional benefits.”
“This case reflects the VA OIG’s commitment to vigorously pursue those individuals that falsify military service records and defraud the VA,” said Gavin McClaren, Resident Agent in Charge of the Department of Veterans Affairs Office of Inspector General’s Cleveland office.
Jozwiak exhibited a military discharge certificate in 2014 that claimed, in part, that he was a highly decorated Vietnam War veteran, that he was a four-time recipient of the Purple Heart, and that he was a Navy SEAL -- all entries Jozwiak knew were totally false, according to court documents.
Additionally, Jozwiak defrauded the Department of Veterans Affairs of $2,289 through veteran’s entitlements he received between August and December 2014. In January 2015, Jozwiak made several false statements to federal agents about his fraudulent activities and his military service, and that he attempted to obstruct an official proceeding by tampering with a material witness, according to court documents.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the Department of Veterans Affairs Office of Inspector General—Criminal Investigative Division.
Williamsport Man Indicted on Drug Charges and Stealing Eleven Handguns from Gun StoreRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samuel Bozochovic, age 36, of Williamsport, Pennsylvania, was indicted by a federal grand jury with stealing handguns from a gun store in Muncy, Pennsylvania, and possessing controlled substances with the intent to distribute them.
According to United States Attorney Bruce D. Brandler, Bozochovic allegedly broke into the R&J Welch gun store on February 8, 2017, and stole 11 handguns from the inventory. Five of the firearms were recovered during a search of Bozochovic’s apartment, but six are as yet unrecovered. Later the same day, Bozochovic was apprehended in the course of distributing heroin to another person and 48 heroin packets were recovered from him at that time.
Bozochovic was arrested on February 9, 2017, and brought before United States Magistrate Judge William I. Arbuckle, III where he was detained pending further proceedings.
“Stolen guns are quickly sold into the black market as a tool-of the-trade for criminals who frequently use them in violent acts. ATF will use our resources to protect the public by identifying and arresting thieves who divert guns into the hands of criminals, which then fuels violence in our communities,” said ATF Special Agent in Charge Sam Rabadi.
Anyone with information regarding this investigation or the stolen firearms is encouraged to call 1-800-ATF GUNS (1-800-283-4867).
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia Man Sentenced to 17 Years in Prison for Shooting at Police OfficersRead the Press Release
WASHINGTON - Richard Butler, III, 35, formerly of Alexandria, Va., has been sentenced to a 17-year prison term for shooting at two Metropolitan Police Department (MPD) officers and also firing at the occupant of a parked car that he tried to use as a shield in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Butler pled guilty in July 2016, in the Superior Court of the District of Columbia, to assault of a police officer while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm. He was sentenced on Feb. 17, 2017, by the Honorable Zoe Bush. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Wednesday, March 23, 2016, at approximately 5:50 p.m., two Metropolitan Police Department officers saw a group of individuals gambling in an alley alongside 625 Mellon Street SE. The officers approached the group because they believed Butler resembled an individual wanted by law enforcement in Prince George’s County, Maryland, on a criminal charge. As the officers got closer to the group, Butler turned away from them and ran. At the time, Butler was wearing a backpack on his chest from which a protruding handgun could be seen. When Butler got to the end of the alley, he turned around, shot at the officers, and fled out of the alley. The officers returned fire and pursued Butler on foot through the surrounding neighborhood. During the foot chase, Butler attempted to use parked cars as shields while he shot at the officers. Inside one of the cars used by Butler was a man seated in the driver’s seat of the parked car. Butler shot directly through the windshield of the car. The man was not injured, but the windshield was damaged.
Butler was stopped in a nearby alley. He was wearing a long-hair wig and was identified as the individual who shot at the officers and the parked car. Butler was also confirmed as the same individual wanted in Maryland, where his case remains pending. Along Butler’s flight path were two firearms.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jean Sexton and Sarah C. Santiago, who investigated the case and handled the sentencing.
Virginia Beach Man Pleads Guilty to Sex Trafficking of ChildrenRead the Press Release
NORFOLK, Va. – Joshua Manuel Treat, 20, of Virginia Beach, pleaded guilty today to sex trafficking of children.
According to the statement of facts filed with the plea agreement, from Sept. 26 to Oct. 12, 2016, Treat posted Jane Doe, a 14-year-old girl, on an Internet website and advertised her for prostitution. In order to make Jane Doe more amenable to prostitution, Treat would inject Jane Doe with heroin prior to her appointments with customers. When Treat was arrested, he was found with a handgun and a syringe containing heroin residue.
Treat faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on May 25. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney Elizabeth Yusi is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc and click on the tab “resources” for more information about Internet safety education.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-172.
Two Vessel Engineers Convicted of Environmental and Obstruction Crimes After Trial. Vessel Manager Pleads Guilty to Environmental Crimes and Obstruction of JusticeRead the Press Release
A federal jury in Charleston, South Carolina, late yesterday convicted two chief engineers of the vessel, T/V Green Sky, of falsifying documents in order to conceal illegal discharges of oily bilge waste and obstruction charges, announced Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Beth Drake of the District of South Carolina. Herbert Julian, who served as chief engineer of the vessel from Aug. 3 to Sept. 4, 2015, was convicted of two felony counts under the Act to Prevent Pollution from Ships (APPS) and for obstruction of justice. Panagiotis Koutoukakis, chief engineer from Feb. 1 to Aug. 3, 2015, was convicted of two felony counts, one for APPS and another for falsifying records.
In addition, it was revealed in court documents, which were unsealed after the verdicts were rendered, that Aegean Shipping Management, S.A., a foreign company with operations in Greece that acted as the Green Sky’s operator, previously pleaded guilty to a violation of the APPS and obstruction of justice.
“This case involved egregious violations of U.S. and international laws that are key to protecting the oceans from pollution, and deliberate efforts to mislead Coast Guard officials about these criminal acts,” said Acting Assistant Attorney General Wood. “Now these defendants have been held accountable under the law by a jury of their peers. The Department of Justice will continue to aggressively prosecute criminal acts that pollute the oceans.”
“With Charleston serving as one of the largest ports on the Eastern seaboard, working vessel pollution cases with the Environmental Crimes Section is an important focus for our office,” said U.S. Attorney Beth Drake, District of South Carolina. “Through criminal charges, we can deter those who would dump oily wastes into the world’s oceans and use false documents to cover it up.”
“The Green Sky case stresses the vital importance of USCG environmental protection missions with regard to pollution from ships,” said Captain Gary L. Tomasulo, Commander, U.S. Coast Guard Sector Charleston. “We are extremely proud of our team of marine safety professionals and the Coast Guard Investigative Service which were an integral part of investigating these occurrences and referring them for enforcement action.”
The Green Sky is a large, oceangoing chemical tanker flagged in Liberia. The vessel first set sail in July 2014. The operation of marine vessels, like the T/V Green Sky, generates large quantities of oil-contaminated waste water. This particular vessel had unusual internal leaks that produced greater quantities of oily waste than a normal ship of its age and construction. Oily bilge waste must be removed from the vessel lest it fill up the bottom of the Engine Room and cause damage to equipment and jeopardize the safe handling of the ship. However, the law does not permit an oceangoing vessel to discharge these oily wastes directly into the sea.
The evidence presented to the jury showed that the Green Sky was regularly pumping contaminated and oily water directly overboard. None of these discharges were disclosed as required. The oil record book of the Green Sky was falsified to cover-up illegal overboard discharges of oily wastes from February to August 2015. Methods of falsification included omitting illegal bypass operations, claiming that the oil water separator was used when it had not been, and a series of false entries regarding the levels of the bilge holding tank, which were designed to further the cover-up. While most of these discharges occurred in international waters, evidence at trial revealed that at least two of these discharges were within the Exclusive Economic Zone of the United States during the ship’s voyage from Pascagoula, Mississippi, to Houston, Texas in May 2015.
The evidence presented during the fifteen-day trial demonstrated that the chief engineers covered up illegal overboard discharges that took place through two systems of “magic” hoses and a separate “magic” valve system designed to bypass the ship’s oil water separator. Koutoukakis and Julian falsified the oil record book to hide their illegal discharges. The vessel arrived in Charleston, South Carolina on August 26, 2015, when the false record was presented to the U.S. Coast Guard during an inspection of the vessel. The U.S. Coast Guard was tipped off by three whistleblowers who came forward to report the crimes and ask for protection from U.S. authorities.
By January 2016, it was determined that the former chief engineer Koutoukakis likely had information regarding the ongoing investigation into the Green Sky. Koutoukakis was later apprehended in Savannah, Georgia on a material witness warrant. Koutoukakis was subsequently indicted after further investigation revealed his substantial involvement in illegal discharges and records falsification. In addition, Julian was convicted of obstruction related to false statements that he made regarding the ship’s sounding log, which is a document that can be used to check the veracity of the oil record book. Testimony at trial revealed that Julian hid the log prior to the Green Sky’s arrival in Charleston and then lied to the Coast Guard about the vessel having a sounding log.
Prior to the initiation of the trial, on November 22, 2016, the Green Sky’s operator, Aegean Shipping Management, S.A. pleaded guilty to one APPS count for the illegal discharges and one obstruction count based on misrepresentations made by the vessel’s captain to the U.S. Coast Guard during the August 2015 boarding. The corporate vessel operator had been indicted along with the individuals on July 15, 2016. The plea materials were previously sealed to protect the integrity of the jury and the witnesses in the trial against the individual defendants. The unsealed documents revealed that the operating company agreed to pay a financial penalty of $2 million, which includes a criminal fine and a smaller community service component directed toward the Gray’s Reef National Marine Sanctuary. The company will also be sentenced to probation and an environmental compliance plan. Sentencing of the company and defendants Julian and Koutoukakis will take place at a date that will be set by the court. At trial, the second engineer Nikolaos Bounovas was acquitted of all charges against him. The previously convicted Captain, Genaro Anciano, testified at the trial. His sentencing has yet to be scheduled.
This case was investigated by the U.S. Coast Guard Sector Charleston and the Coast Guard Investigative Service. The USCG Marine Safety Lab was critical to the analysis of oil samples taken from the vessel. With the support of Coast Guard Legal District Seven, the case was prosecuted by Christopher L. Hale and Kenneth Nelson of the U.S. Department of Justice’s Environmental Crimes Section and AUSA Matt Austin from the U.S. Attorney’s Office for the District of South Carolina. Richard Udell, also of the Environmental Crimes Section, provided substantial assistance with regard to the corporate plea deal.
Background on MARPOL
A multi-national treaty, the MARPOL Protocol, and implementing U.S. law required the Green Sky to first process the oily bilge waste through a filtration machine, known as an oil-water separator. Before the bilge waste can go overboard, the law requires that any remaining petroleum should be reduced to a concentration of 15 parts per million (ppm) or less. Bilge waste that contains 15ppm or less of petroleum does not produce a sheen and looks like clear water when held up to the light. One of the principal ways that the MARPOL Protocol ensures that international vessels comply with the oil water separator requirement is through the mandate to accurately maintain the vessel’s oil record book. The oil record book is an official ship’s log that records various types of internal transfers and discharges of fuel, oil residue, and oily bilge wastes. Under MARPOL, when a ship comes to a U.S. port, its oil record book is subject to inspection. When the oil record book is falsified, it makes it extremely difficult for port control officials (in the United States, the U.S. Coast Guard) to adequately assess treaty compliance and the safe and environmentally sound operation of the vessel.
Two Mahoning County men charged with importing anabolic steroids from ChinaRead the Press Release
Two men from Mahoning County were charged in federal court with illegally importing anabolic steroids from China, U.S. Attorney Carole S. Rendon said.
James A. Cleeland, 50, of Berlin Center, and Christopher M. Stanec, aka Michael Stanec, aka Mark Conner, 40, of Canfield, were charged in a one-count information with conspiracy to import and distribute steroids.
Cleeland and Conner conspired with other people to import and to possess with intent to distribute 298.3 grams or more of anabolic steroids. This took place in 2013, according to the information.
It was part of the conspiracy that Stanec and Cleeland imported anabolic steroids from sources located in China. It was further part of the conspiracy that Stanec agreed to receive the anabolic steroids from China and then provide them to Cleeland, according to the information.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, Homeland Security Investigations and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Individuals Charged for a Gas Station Debit Card Skimming Operation that Involved Multiple StatesRead the Press Release
Montgomery, Alabama- Two individuals are facing federal charges for using skimming devices on gas pumps, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama, and Steven T. Marshall, Attorney General for the State of Alabama. These charges are the result of a continuing multi-agency investigation that was initiated by the Alabama Attorney General’s Office, the Ozark Police Department, the United States Secret Service, and the Baldwin County Sheriff’s Office. On February 15, 2017, Eunises-Llorca Menses (30), of Naples, Florida, and Reiner Perez-Rives (34), of Houston, Texas, were charged by a federal grand jury with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.
According to court documents, Llorca-Menses and Perez-Rives were involved in a multi-state scheme to defraud individuals and steal bank and credit union account information from unsuspecting individuals by installing a skimming device at gas stations. A skimming device can be installed on a gas pump and record a customer’s credit/debit card number and pin number without the customer’s knowledge or consent.
As part of their scheme, they would rent vehicles and travel between Florida, Alabama, Tennessee and Virginia. During their travels, they would visit several gas stations and install a skimming device inside a gas pump. Through the skimming device, they collected gas station customers’ credit/debit card information and used that information to activate or reactivate credit, debit, or gift cards, and make unauthorized cash withdrawals and purchases at several places around the southeast.
Law enforcement was able to uncover this scheme following multiple reports from victims concerning the unauthorized use of their debit cards. Working with financial institutions, the Ozark Police Department, along with state and federal partners, discovered that many of the victims had used their cards at the same gas station in Ozark, Alabama. At this station they found a skimming device installed on a gas pump that had Bluetooth capability. The Bluetooth technology allowed the defendants to collect a gas customer’s credit/debit information while sitting up to thirty-feet away from the gas pump.
Upon arrest, the two were found to be in possession of a total of thirty-nine credit/debit cards that had been re-encoded with stolen credit/debit card numbers, along with an additional 315 various types of gift cards. Law enforcement also found a homemade device with connectors that matched the connections on the skimming device found in the gas pump in Ozark, Alabama.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each face a maximum sentence of 30 years in prison and payment of restitution to their victims.
“Criminals are constantly coming up with sophisticated ways to deprive us of our hard earned money,” stated U.S. Attorney Beck. “They always try to stay one step ahead of law enforcement. Banks, gas stations, retail businesses, and customers, need to be ever watchful for this type of criminal activity and report it to the authorities immediately. I would like to thank all the agencies involved for acting quickly to recognize this scheme and identify those responsible.”
“I want to thank U.S. Attorney Beck for taking swift action to bring federal charges against suspects identified in late December by state and local authorities in a wide-ranging crime spree of identity thefts committed through debit card skimming at gasoline pumps,” said Attorney General Steven T. Marshall. “I am extremely proud of the outstanding investigation by Special Agents in the Attorney General’s Office, along with the Ozark Police Department and Baldwin County Sheriff’s Office, to uncover these illegal activities and arrest the defendants on state charges which are pending. This kind of support and cooperative teamwork among law enforcement agencies from the local to the federal level is vital for us to be effective in shutting down criminal operations.”
“I am proud that our department was able to play a role in this investigation,” stated Ozark Police Chief Marlos Walker. “I am always excited and pleased with the support we have from our state and federal partners. Cooperation among law enforcement is essential in stopping these types of operations.”
“The U.S. Secret Service has seen a rise in cases involving gas pump skimmers nationwide,” stated Resident Agent in Charge Clayton Slay, U.S. Secret Service in Montgomery, Alabama. “This is partly due to the incremental conversion of all credit card point of sale processers from the use of the magnetic strip to the new EMV ‘Chip’ technology. As retail businesses make the transition to EMV, criminals are targeting those business that have not made the change. This includes credit card readers on gas pumps. The Secret Service, along with local and state law enforcement authorities, continue to be proactive in these type of crimes through information sharing with financial institutions, credit card issuing companies, and education of members of the petroleum distribution industry.”
“Criminals can breach the gas pump and install a skimming device which can be there for weeks or months before crooks return to download the credit card and PIN numbers, if used,” continued RAC Slay. “Some skimming devices, like the ones used in this case, are Bluetooth enabled so the crooks don’t even have to breech the pump again to download the information from the skimmer. The skimming devices are usually not detectable from the outside of the pump and are typically only detected when the pump is opened or serviced for any reason.”
Slay advises that the public should monitor their bank and credit card accounts frequently and report any unusual activity to those financial institutions. Another way to possibly prevent this type of fraud is to pay inside the store or use pumps that are visible to store employees and any video surveillance cameras, as criminals normally target pumps that allow them to install skimming devices undetected.
This case was a joint investigation involving the Ozark Police Department, the Alabama Attorney General’s office, the United States Secret Service, and the Baldwin County Sheriff’s Office. This case is being prosecuted by the United States Attorney’s Office for the Middle District of Alabama by Assistant United States Attorney Denise O. Simpson.
Two Atoka Individuals Found Guilty of Theft of Government Funds, False StatementRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL FERRARIE EUBANKS, age 57, of Atoka, Oklahoma, and HYDIE ROYLENE EUBANKS, age 58, of Atoka, Oklahoma, were found guilty, by a federal jury, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Sections 641 and 2; CONCEALMENT OF A MATERIAL FACT, in violation of Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2, and FALSE STATEMENT, in violation of Title 42, United States Code, Section 408(a)(2) and Title 18, United States Code, Section 2. The jury trial began with testimony on Tuesday, February 21, 2017 and concluded on Thursday, February 23, 2017 with the guilty verdict.
Evidence at trial proved that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, and having a value in excess of $1,000.00.
Evidence at trial further proved that from on or about September 2010, and continuing through March 10, 2016, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.
Evidence at trial further proved that on or about November 30, 2015, in the Eastern District of Oklahoma, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS, did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination. Specifically, MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS jointly completed a Continuing Disability Review Report wherein MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS stated that MICHAEL FERRARIE EUBANKS had not worked since the date of MICHAEL FERRARIE EUBANKS last medical disability determination.
The verdict obtained was the result of an investigation by the Social Security Administration’s Office of Inspector General.
Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendants will remain out on bond pending sentencing.
Assistant United States Attorney Melody Nelson and Assistant United States Attorney Rob Wallace represented the United States.
Texas Syndicate Member Sentenced to More Than 27 Years in Federal Prison for Role in Methamphetamine, Cocaine and Marijuana Distribution ConspiracyRead the Press Release
LUBBOCK, Texas — Christopher Lee Gonzalez, aka “Gonzo,” 43, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 327 months in federal prison, following his guilty plea in October 2016 to his role in a methamphetamine, cocaine and marijuana distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Twelve individuals were arrested and charged with similar federal offenses, stemming from their respective roles in a drug distribution conspiracy that operated in West Texas. Of those arrested, each defendant has pled guilty. Two defendants remain fugitives.
According to plea documents filed in the case, on October 4, 2015, Gonzales distributed and possessed with the intent to distribute 50 grams or more of methamphetamine. The investigation revealed that late that morning, Gonzalez and co-conspirator Jasmine Pilar Hernandez traded multiple calls and text messages discussing a drug transaction that was going to occur later that day. At approximately 10:10 a.m., Hernandez told Gonzales that “the old man that brings it ... was on his way.” The “old man that brings it” was subsequently identified as co-defendant Belizario Salas-Avenado. Salas remains a fugitive.
Agents established surveillance on Salas’ residence located in Levelland, Texas. At approximately 1:30 p.m., a 2001 Chevrolet Suburban left the residence and traveled to the United Supermarket in Levelland, Texas. Salas purchased a box of Gain laundry detergent and a six pack of beer. Salas then returned to his residence.
At approximately 3:13 p.m., Hernandez told Gonzales, “In 25 minutes, he’ll be here.” Agents observed Salas and two unknown males leave Salas’ residence in the 2001 Chevrolet Suburban and head toward Lubbock, Texas. At approximately 3:30 p.m., a Texas Department of Public Safety Trooper stopped the 2001 Chevrolet Suburban, driven by Salas for traffic violations. Salas was arrested for no driver’s license. Salas stated that the two passengers where his nephews. The rear seat passenger was seated next to a white laundry basket and a box of Gain detergent which appeared to have been tampered with. When the trooper opened the box of detergent, a white plastic bag, containing a crystal-like substance was partially concealed in the detergent.
At approximately 4:05 p.m., Gonzales told Hernandez, “call me when they get there and I’ll go by.” At approximately 4:41 p.m., Hernandez indicated she had tried to call “them people ... twice.” At approximately 8:30 p.m., Gonzales advised Hernandez, “They got um,” referring to the arrest of Salas.
On October 5, 2015, Gonzales instructed Hernandez, “Do not tell nobody... about them getting caught....” “If they asked what happened ... that you still haven’t got nothing. That they ran out or something, you know. Don't tell them that they got caught up, man.”
The Texas Department of Public Safety and the DEA investigated. Assistant U.S. Attorneys Juanita Fielden and Sean Long prosecuted.
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Tampa Man Pleads Guilty to Theft of Tax Refund ChecksRead the Press Release
Tampa, Florida–United States Attorney A. Lee Bentley, III announces that Charles Clark has pleaded guilty to theft of government funds. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on March 12, 2015, Clark sold an $82,000 stolen U.S. Treasury check to a person acting in an undercover capacity with the Internal Revenue Service - Criminal Investigation. Clark did not have permission to sell the check from the U.S. Treasury, or from the person to whom the check had been issued.
This case was investigated by the Internal Revenue Service Office - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Springfield Man Sentenced for Distributing Crack CocaineRead the Press Release
BOSTON – A Springfield man was sentenced today in U.S. District Court in Springfield for possessing and distributing crack cocaine.
Larry Smith, Jr., 30, was sentenced by U.S. District Court Judge Mark G. Mastroianni to seven years in prison and three years of supervised release. In November 2016, Smith pleaded guilty to two counts of distributing and one count of possessing with intent to distribute cocaine in the form of crack cocaine.
On Feb. 18, 2015 and March 5, 2015, Smith sold crack cocaine to a cooperating witness. On April 3, 2015, he possessed an additional ten grams of crack cocaine with the intent to distribute it. Smith has an extensive, violent criminal history in Massachusetts state courts, including a 2010 conviction for carrying a firearm without a license and carrying a loaded firearm without a license; 2009 convictions for assault and battery with a dangerous weapon and assault and battery of a police officer; 2007 convictions for assault with a dangerous weapon, assault and battery of a police officer (four counts), and resisting arrest; and 2004 convictions for assault with a dangerous weapon (two counts) and possession with intent to distribute cocaine.
Acting U.S. Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Weinreb’s Springfield Office is prosecuting the case.
Southeast Texas Men Charged in Beaumont Robbery ConspiracyRead the Press Release
BEAUMONT, Texas – Acting United States Attorney Brit Featherston announced today that four Southeast Texas men have been charged in a federal robbery conspiracy in the Eastern District of Texas.
According to complaints filed today in federal court, Micah Ledell Johnson, 37, of Humble, Texas; Darrell Paul Williams, 36, of Beaumont; Gerrick Leon Wade, 36, of Houston; and Eric Ray Johnson, 36, of Houston, are alleged to be involved in a conspiracy to commit interference with commerce by robbery in Beaumont, Corpus Christi, and the Houston metro area.
On Feb. 22, 2017, law enforcement officers in Beaumont attempted to stop a white Cadillac Escalade truck in the vicinity of Dowlen Road and Delaware. The vehicle would not stop and instead led officers on a vehicle pursuit until it came to a stop in the 3500 block of Delaware. The three men in the vehicle fled on foot but were captured and detained by law enforcement officers. A fourth man, whose involvement was already known to officers, was located and detained at a nearby service station. Interviews with the suspects revealed an alleged conspiracy to commit an armed robbery in violation of the Hobbs Act in Beaumont, but law enforcements officers successfully intervened and prevented them from succeeding.
If convicted, the defendants face penalties of up to 20 years in federal prison. It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Beaumont Police Department, and the Houston Police Department. This case is being prosecuted by Assistant U.S. Attorney Lesley Woods.
South Florida Man Arrested on Mail and Wire Fraud Charges in Connection with Fraudulent Lottery Scheme Tied to JamaicaRead the Press Release
A 49-year-old Florida man was arrested in Miramar, Florida, following the return of a 12-count indictment against him by a grand jury in the Southern District of Florida, the Department of Justice announced today.
Claude Shaw aka Mac and Claude Mac, a U.S. citizen residing in Florida, was charged with two counts of mail fraud and 10-counts of wire fraud in connection with a fraudulent lottery scheme tied to Jamaica.
As alleged in the indictment, victims throughout the United States would receive telephone calls in which they were informed that they had won over a million dollars in a lottery and needed to pay fees in advance to claim their winnings. According to the indictment, the victims were instructed on how, and to whom, to send their money. The indictment alleges that the victims were instructed to send their money through wire transfers and the U.S. Postal Service to Shaw and others.
“These charges demonstrate our commitment to combating international lottery fraud, especially efforts to target potentially vulnerable individuals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Financial schemes like these interfere with Americans’ financial security and will not be tolerated.”
The indictment alleges that Shaw discussed plans to receive victims’ money via text messages, and after receiving money from victims, Shaw would send a portion of the victims’ money to accomplices in Jamaica. As alleged in the indictment, the victims never received any lottery winnings. Five of the 10 wire fraud counts are based on money Shaw is alleged to have wired from the United States to an individual in Jamaica. If convicted of mail fraud or wire fraud, Shaw faces a statutory maximum term of 20 years in prison on each count.
“Predators tied to Jamaican lottery fraud often seek to exploit vulnerable individuals in our society,” said Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s Miami, Florida Division. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch, bringing to justice those fraudsters who exploit their victims, including elderly individuals, using the U.S. mail.”
This indictment is part of the Department of Justice’s effort working with federal and other law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens.
Acting Assistant Attorney General Readler commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Shaw IndictmentSinaloa Cartel Leader Jaime Huerta-Tizoc Pleads Guilty to Drug Trafficking and Money Laundering Conspiracy and Agrees to Forfeit $2 MillionRead the Press Release
Assistant U.S. Attorney Adam L. Braverman (619) 546-6717
NEWS RELEASE SUMMARY – February 23, 2017
Sinaloa Cartel leader Jaime Huerta-Tizoc pleaded guilty to drug trafficking and money laundering charges in federal court today, admitting that he was responsible for moving tons of cocaine and marijuana and millions of dollars in proceeds across the U.S.-Mexico border.
Huerta-Tizoc appeared before U.S. Magistrate Judge Mitchell D. Dembin. The defendant was charged in a sealed indictment on August 19, 2016. A sealed arrest warrant was issued that same day. On December 15, 2016, was arrested at the San Ysidro, California Port of Entry as he attempted to enter into the United States.
In connection with the entry of his guilty plea, Huerta-Tizoc admitted that he was a high-level leader of the Sinaloa Cartel and that his primary responsibility was transporting large quantities of narcotics on behalf of the Sinaloa Cartel for importation from Mexico into the United States. Huerta-Tizoc utilized a fleet of tractor-trailers to transport ton quantity levels of both cocaine and marijuana from Mexico into the United States, including the Southern District of California. He also admitted that he agreed to transport millions of dollars in narcotics proceeds from the United States to Mexico. As part of his plea agreement, Huerta-Tizoc agreed to forfeit $2 million in United States Currency as proceeds of this conspiracy.
“Any day a Sinaloa cartel leader is no longer free to bring ton quantities of life-crushing drugs to our communities is a good day,” said Acting U.S. Attorney Alana W. Robinson. “As long as people are dying from overdoses and lives are being destroyed by illicit drugs, we will pursue the cartels.”
“Today, a dangerous drug trafficker pleaded guilty to his crimes,” said DEA San Diego Special Agent in Charge William Sherman. “Keeping this poison off the streets of our neighborhoods is our number one priority in the face of the addiction epidemic we are facing in the U.S. today.”
Sentencing is set for May 12, 2017, at 9 a.m. before U.S. District Judge Dana M. Sabraw.
DEFENDANT Criminal Case No. 16-CR-1895-DMS
Jaime Huerta-Tizoc Age: 41
SUMMARY OF CHARGES
Conspiracy to Import Cocaine and Marijuana, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Penalties: Mandatory Minimum 10 years and Maximum Life in Prison, $10,000,000 fine, $100 Special Assessment, Supervised Release up to Life
Conspiracy to Launder Money, in violation of Title 18, United States Code, Sections 1956(a)(2)(A) and (h).
Penalties: Maximum 20 years in prison, a fine of the greater of twice the value of the property involved in the transaction or $500,000, $100 Special Assessment, Supervised Release up to 5 years
INVESTIGATING AGENCIES
Drug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
San Diego Law Enforcement Coordination Center
Homeland Security Investigations
Internal Revenue Service
Sentencings for February 17, 2017Read the Press Release
Hadd Mitchell McHenry, 41, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 17, 2017, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. McHenry was arrested in Sheridan, Wyoming. He received 78 months of imprisonment, to be followed by five 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 and the Arizona Department of Public Safety.
Jeffrey Samuel Pino, 34, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 17, 2017, for possession with intent to distribute cocaine base. Pino was arrested in Cheyenne, Wyoming. He received 100 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
San Antonio Attorney Sentenced in Federal CourtRead the Press Release
In San Antonio today, 65-year-old Hugh Lappe Scott, Jr., a local San Antonio attorney, was sentenced to six months in federal prison for being an accessory after the fact announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that Scott serve 6 months of home detention with electronic monitoring, surrender his law license, pay $1,209,692.60 restitution and be placed on supervised release for a period of three years after completing his imprisonment.
On January 14, 2016, Scott pleaded guilty to a one-count information charging him with knowing that the offense of Health Care Fraud had been committed against the United States. By pleading guilty, Scott admitted that he was general counsel for United Re, a Swiss corporation established and represented to be in the business of administering reinsurance, also known as stop loss, stop gap, and overlay insurance for health care benefit programs. During a deposition in January 2010, Scott stated under oath that a company called Vado AG was a reinsurer of United Re when he knew Vado AG could not pay claims made against United Re and thereby hindered the investigation of United Re.
This case was investigated by the Department of Labor. Assistant United States Attorney William R. Harris prosecuted this case for the Government.
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San Angelo Man Sentenced to Life in Prison for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
LUBBOCK, Texas — This morning, Senior U.S. District Judge Sam R. Cummings sentenced Richard Jasso, 39, of San Angelo, Texas, to life in federal prison, following a federal jury conviction on one count of distribution and possession with intent to distribute 50 grams of more of methamphetamine and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” The Court found those convictions were final and valid, then, by statute, the Court imposed a life sentence, without parole.
Jasso was convicted at trial in November 2016 and has been in custody since his arrest on July 13, 2016. Twelve defendants were charged in an indictment, most from the San Angelo area, and were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. The indictment charged various felony offenses stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo.
The government presented evidence at trial that Jasso delivered 54 net grams of pure methamphetamine to an individual working at the direction of the Drug Enforcement Administration. The buy took place in San Angelo.
With Jasso’s sentence, all 12 defendants charged in the indictment have been sentenced to the following federal prison sentences:
Rudolfo Ledesma Castaneda, Jr., 31, 360 months
Nancy Ann Flores, 41, 15 months
Adam Gabriel Castaneda, 30, 10 years
Daniel Roy Lombrana, 29, 87 months
Jesse Huerra, 31, Life
Antonio N. Flores, 52, 70 months
Bruno Rudolfo Velasquez, 32, 60 months
Joe Lopez, III, 33, 125 months
Jose G. Montez, 38, 151 months
Shayna Kaye McCann, 24, 10 monthsThe charges were dismissed against Silvia Prado, 36, of Austin, Texas.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Rosebud Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Conroy Chasing In Timber, age 34, was indicted on February 15, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 24, 2016, Chasing In Timber did forcibly assault, resist, oppose, impede, intimidate, and interfere with a corrections officer from the Rosebud Sioux Tribe, while the officer was engaged in the performance of his official duties.
The charge is merely an accusation and Chasing In Timber is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Chasing In Timber was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Repeat Bank Robber Sentenced to over 12 Years in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — Acting U.S. Attorney Andrew Birge announced today that Anthony Oby Loose, age 33, of Grand Rapids, Michigan was sentenced to twelve and a half years in prison for bank robbery. U.S. District Judge Paul L. Maloney also ordered Loose to pay $20,458.73 in restitution.
A federal grand jury indicted Loose for robbing the Fifth Third Bank in Big Rapids, MI, on July 20, 2016, the Four Flags Credit Union in Niles on July 13, 2016, and a Comerica Bank in Lansing on June 3, 2016. Loose was on parole for yet another bank robbery at the time all of these offenses were committed. Loose committed his robberies by telling the bank tellers he had a gun. Often he commanded more than one teller to give him money. And several times he demanded more money after the tellers had emptied their cash drawers. Two days after the robbery in Big Rapids, Loose was arrested at the Budgetel Inn in Grand Rapids after a brief standoff with law enforcement. FBI agents later received a letter Loose had written to his girlfriend indicating he had hidden money after the robbery. Following up on his letter and a diagram he had drawn, the FBI agents discovered $4,700 hidden behind the drywall in the bathroom of his hotel room.
Loose pled guilty in October to the Big Rapids robbery. The remaining charges for the other robberies were dismissed as part of a plea agreement, but Judge Maloney was allowed to consider evidence that he committed them in selecting a sentence for the Big Rapids robbery.
"The magnitude of the sentence imposed on Anthony Loose validates the collective and effective investigative efforts of the FBI and our local law enforcement partners to identify and arrest this serial bank robber," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "These investigative partnerships, enthusiastically supported by the U.S. Attorney’s Office, are essential to our efforts to keep Western Michigan communities safe".
This case was investigated by the Federal Bureau of Investigation in conjunction with the Big Rapids Police Department, the Lansing Police Department, and the Niles Police Department. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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Pensacola Man Sentenced to 10 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
PENSACOLA, FLORIDA – Shawn Ryan Goodfleisch, 38, of Pensacola, was sentenced today to 10 years in federal prison and will be required to register as a sex offender. A jury convicted Goodfleisch on September 29, 2016, of receipt of child pornography and destruction of evidence to prevent seizure. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between January 2014, and October 2014, Goodfleisch received and possessed child pornography, including videos depicting images of minors less than 12 years of age engaged in sex acts. An undercover law enforcement officer discovered and downloaded files containing child pornography from a public sharing network that could be traced to Goodfleisch’s computer. After agents executed a search warrant at Goodfleish’s residence, a forensic analysis of his computer’s hard drive revealed numerous images and videos of child pornography. During the execution of the federal search warrant, Goodfleisch remotely accessed his computer using a cellular telephone and destroyed, or attempted to destroy, the contents contained on his computer.
United States Attorney Canova stated, “Protecting children from online exploitation is a top priority for this office, the Department of Justice, and our many law enforcement partners. Tragically, it is easy for child predators to access reprehensible content via the Internet.”
“Because of HSI special agent’s investigative authorities, along with our law enforcement partnerships, like with the Pensacola Police Department, this predator will now be behind bars - making our communities safer,” said Susan L. McCormick, Special Agent in Charge of HSI Tampa.
The case was investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Pensacola Police Department, and other agencies that are part of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Parmelee Woman Charged with Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmelee, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Charlee Spotted Tail, age 21, was indicted on October 12, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on February 22, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $30,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 11, 2016, Spotted Tail, abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of seven years old.
The charge is merely an accusation and Spotted Tail is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Spotted Tail was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.