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Monday 9 January 2017
Jury Sentences Gary Lee Sampson to Death for MurderRead the Press Release
BOSTON –A federal jury in Boston sentenced Gary Lee Sampson, 57, to death in connection with a murdering spree in July 2001.
In September 2003, Sampson pleaded guilty to killing Philip McCloskey and Jonathan Rizzo, and in December 2003, he was sentenced to death by a federal jury. In 2004, Sampson also pleaded guilty to state murder charges in New Hampshire for the murder of Robert Whitney. In 2011, a federal judge in Massachusetts overturned Sampson’s death sentence, leading to a retrial of the sentencing phase. By law, U.S. District Court Judge Leo T. Sorokin must impose the jury’s sentence of death.
In 2001, Sampson returned to Massachusetts from North Carolina, where he had committed several bank robberies. In July 2001, Sampson met McCloskey, a 69-year-old retiree, in Weymouth, Mass. Sampson persuaded McCloskey to drive him to a nearby town, where Sampson tied McCloskey up and stabbed him several times, killing him. Sampson then hitchhiked to Plymouth, Mass., where he was picked up by 19-year-old Jonathan Rizzo. Sampson forced Rizzo to drive to a remote area and then led him into the woods, tied him to a tree and repeatedly stabbed and killed him. Sampson then drove Rizzo’s car to New Hampshire and broke into a lake house, where the caretaker, Whitney, a 58-year-old retiree from New Hampshire, arrived and found Sampson inside. Sampson tied Whitney to a chair, strangling him to death. Sampson then fled to Vermont where he was eventually apprehended by authorities.
United States Attorney Carmen M. Ortiz; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Zachary R. Hafer and Dustin Chao are prosecuting the case with assistance of Michael Warbel of the Justice Department’s Capital Case Section.
Jamaican National Pleads Guilty in Scheme to Defraud Elderly Illinois CoupleRead the Press Release
A Jamaican man pled guilty today, in federal court in Cedar Rapids, to participating in a mail fraud scheme that defrauded an elderly Illinois couple. Ricardo Fredrick Smith a/k/a “Rickey Ricardo Smith” a/k/a “Ricky” a/k/a “Stinger”, 39, from St. James Parish, Jamaica, was convicted of one count of Mail Fraud. At the plea hearing, defendant admitted he participated in the scheme beginning no later than September 2015, and continuing through at least December 2015. Defendant admitted he recruited his ex-girlfriend, T.W., to participate in the scheme.
The prosecution is part of the Elder Justice Initiative of the Department of Justice. In June 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes. To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal pending sentencing. Smith faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine or not more than twice the gross gain or twice the gross loss from the offenses, whichever is greater, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-92-LRR.
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Huntington man and woman sentenced to federal prison for roles in multistate drug ringRead the Press Release
HUNTINGTON, W.Va. – A Huntington man and woman who participated a multistate drug ring were sentenced to federal prison today, announced United States Attorney Carol Casto. Corey Bruce Toney, 27, was sentenced to 10 years and three months in prison for distributing heroin. Tanisha Lynette Wooding, 37, was sentenced to a year and a half in prison for possession with intent to distribute crack.
On September 29, 2015, a confidential informant working with the Drug Enforcement Administration contacted Toney to arrange a heroin deal. Toney agreed to meet the informant, who was accompanied by undercover agents. Toney subsequently distributed 10 grams of heroin to the informant in exchange for $1,250. Agents were able to make numerous additional controlled purchases of heroin from Toney and others during the course of the investigation.
Toney also admitted that from the summer of 2014 to May of 2016, he conspired with others to distribute large quantities of drugs in the Huntington and Charleston areas, including heroin, crack, cocaine, marijuana, and Xanax. Toney admitted that he was supplied large quantities of heroin and cocaine for distribution by codefendant Atari Seantay Brown after the drugs were transported to the Huntington area from Detroit. Toney further admitted that he maintained a leadership role in the conspiracy, and that he possessed a number of firearms during the conspiracy.
On May 18, 2016, after a federal grand jury returned an indictment in this case, agents executed arrest warrants and search warrants at eight residences in Detroit, Proctorville, Ohio, and Huntington, including Wooding’s residence located on the 1800 block of 9th Avenue in Huntington. During the searches, agents seized large quantities of heroin, cocaine, crack, marijuana, $120,531 in cash, and a total of 41 firearms.
Wooding was arrested on May 18, 2016, and admitted that she was in possession of crack when agents executed the search warrant at her residence. During the search, agents seized approximately two ounces of crack stored in the residence. Wooding admitted to conspiring with Brown and others to distribute crack in Huntington for approximately one year. During this period, Brown regularly supplied Wooding with crack. After Wooding sold the crack, she returned the proceeds to Brown and received additional quantities of crack. Wooding also admitted that she was responsible for the distribution of up to 840 grams of crack during the conspiracy.
Brown previously pleaded guilty to distributing heroin and is scheduled to be sentenced on March 6, 2017. In addition to Toney, Wooding, and Brown, seven additional defendants have been convicted for their roles in this drug ring. Sean Lee Braggs, Samuel E. Nelson, III, Deandra Sheen Jones, and Roy Bills have all pleaded guilty to federal drug charges and are awaiting sentencing. Arthur James Canada was sentenced to three years and 10 months in federal prison, Matthew Michael Meadows was sentenced to a year and a half in federal prison, and Parker Wyatt Mays was sentenced to a year and a day in federal prison for their respective roles in the conspiracy.
These prosecutions arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences and is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Honduran Man Pleads Guilty to Illegally Re-Entering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Victor Lopez-Mejia, of Honduras, has pleaded guilty to re-entering the United States after having been deported previously.
Lopez-Mejia pleaded guilty before United States District Judge Landya McCafferty to an Indictment that had been returned by the Grand Jury on October 19, 2016.
According to court filings and statements in Court, on May 1, 2016, Lopez-Mejia was a passenger in a vehicle stopped for speeding by a New Hampshire State Police Trooper. While the Trooper was checking the identity of the vehicle operator and occupants, Lopez-Mejia jumped from the vehicle and began to run away, but was apprehended after a short foot pursuit. A Deportation Officer with Immigration and Customs Enforcement - Enforcement and Removal Operations in Manchester was then contacted for assistance in positively identifying Lopez-Mejia. A subsequent records check ultimately confirmed that Lopez-Mejia had in fact been deported previously to Honduras.
Lopez-Mejia will be sentenced at 11:00 AM on April 20, 2017 and faces likely deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Hartford Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT MINNIFIELD, also known as “B.O.” and “Slim,” 32, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine. Judge Thompson also ordered MINNIFIELD to perform 100 hours of community service.
This matter stems from a joint investigation by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Vice, Intelligence and Narcotics Unit into gang-related narcotics trafficking in Hartford’s North End. MINNIFIELD and others targeted during the investigation were affiliated with groups and gangs who have been involved in acts of violence. The investigation revealed that MINNIFIELD and others sold crack cocaine in the area of Edgewood Street and Albany Avenue. In June and July 2015, law enforcement made controlled purchases of crack from MINNIFIELD.
On September 23, 2016, MINNIFIELD pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”).
MINNIFIELD’s criminal history includes multiple state felony convictions, including convictions for assault, firearm offenses and sale of narcotics. He was on special parole at the time of this federal offense, and is currently serving the balance of his state sentence. He will begin his federal sentence when he is released from state custody.
This matter was investigated by the Federal Bureau of Investigation, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hampshire County man sentenced for unlawful possession of a stolen firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gregory Scott Rinker, 31, of Romney, West Virginia, was sentenced to 96 months incarceration for illegally possessing a stolen firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
In August 2015, Rinker knowingly possessed four stolen firearms in Mineral and Hampshire Counties, West Virginia. Moore pled guilty today to one count of “Possession of a Stolen Firearm” in September 2016.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the Hampshire County Sheriff’s Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Georgetown Man Sentenced to over Three Years for Failing to Update Sex Offender Registration, Violating Supervised ReleaseRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michael Nagell, 51, of Georgetown, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to 30 months in prison and 10 years of supervised release for failing to update his sex offender registration. Nagell was convicted on September 22, 2016, following a jury trial. Nagell was also sentenced to 10 months in prison, to be served consecutively to his other sentence, for violating the terms of his supervised release imposed after a prior federal conviction.
Court records and trial evidence revealed that in 2007, Nagell was convicted in federal court in Massachusetts of attempting to entice a minor to engage in sexual activity and traveling with intent to engage in illicit sexual conduct. As a result, he was a sex offender for purposes of the federal Sex Offender Registration and Notification Act. In July 2012, he moved to Maine and registered with the Maine sex offender registry. In December 2015, Nagell became a full-time employee of a company in Portland, and remained employed with the company until April 2016. Nagell knowingly failed to update his sex offender registration to reflect this change in his employment.
The case was investigated by the U.S. Marshals Service.
Former Owner of Rooftop Building Across from Wrigley Field Sentenced to 18 Months for Defrauding Chicago Cubs and Municipal Taxing AgenciesRead the Press Release
CHICAGO — A federal judge today sentenced the former owner of a rooftop building overlooking Wrigley Field to 18 months in prison for defrauding the Chicago Cubs and municipal taxing agencies.
R. MARC HAMID, 48, of Lincolnwood, was convicted last year on four counts of mail fraud and five counts of illegally structuring financial transactions. U.S. District Judge Thomas M. Durkin imposed the sentence in federal court in Chicago.
“Time and again, Hamid returned to one principle above all others: wherever he thought he could cut corners and put more money in his own pocket, he did it,” Assistant U.S. Attorney Barry Jonas argued in the government’s sentencing memorandum. “If there was a way to benefit himself even if to another’s detriment, he did it.”
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; E.C. Woodson, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation in Chicago.
Hamid was a licensed Illinois attorney and a former owner and operator of Right Field Rooftops LLC, which did business as Skybox on Sheffield, a rooftop entertainment venue located across the street from Wrigley Field’s right field wall. Hamid also owned and operated JustGreatTickets.com Inc. and Just Great Seats LLC, companies that purchased and re-sold tickets to entertainment and sporting events.
Skybox on Sheffield and other rooftop venues surrounding Wrigley Field had an agreement with the Cubs that required, among other things, that each rooftop pay the Cubs a royalty of 17% of their gross annual revenues. In addition, Cook County and the city of Chicago required the rooftops to pay an amusement tax on admission fees, and to report its amusement tax returns to the municipalities. The state of Illinois also required Skybox on Sheffield to file sales tax returns and to pay the state a certain dollar amount per ticket sold.
Evidence at Hamid’s nine-day trial revealed that for the years 2008 through 2011, Hamid caused Skybox on Sheffield to submit false annual royalty statements to the Cubs that under-reported attendance figures by thousands of paid attendees, and under-reported gross revenues by $1.4 million. At Hamid’s direction, sales from Skybox on Sheffield were diverted to the two ticket companies, thus concealing from the Cubs, Cook County and the city of Chicago Skybox on Sheffield’s true revenue.
Hamid’s accountant, JOSEPH GURDAK, further reduced the attendance and revenue figures reported to the Cubs. Gurdak pleaded guilty last year to one count of mail fraud and one count of willfully filing a false income tax return.
The government is represented by Mr. Jonas and Assistant U.S. Attorneys Sean Driscoll and Katherine Welsh.
Former Norman Attorney Ordered to Pay $525,000 in Restitution to Defrauded Clients and IRSRead the Press Release
Oklahoma City, Oklahoma – Today, DANE THOMAS WILSON, 61, of Oklahoma City, was ordered by United States District Judge Timothy D. DeGuisti to pay a combined total of $525,006.71 in restitution to former clients of his law practice, to the Oklahoma Bar Association, and to the Internal Revenue Service, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma. Wilson was sentenced on December 16, 2016, by Judge DeGuisti to serve 30 months in federal prison for using a wire fraud scheme to embezzle from his clients and also for failing to file a tax return.
Wilson was charged by Information and pled guilty on February 24, 2016. Wilson admitted that from December 2010 through December 31, 2011, while he was a licensed attorney practicing in Norman, Oklahoma, he defrauded his clients by misappropriating funds that he received on their behalf from insurance companies and other payors. Wilson admitted that he deposited the funds he received for the benefit of his clients into a client trust account, and then wrote checks to himself, made cash withdrawals, or transferred money from the client trust account in amounts that exceeded the attorney’s fees that he was contractually entitled to receive from each client. He admitted that, as a result of his actions, some of his clients received no money or less money than they were due from the settlements or judgments he obtained on their behalf.
Wilson also admitted that he knowingly and willfully failed to file a federal income tax return with the IRS for the tax year of 2011.
Wilson was sentenced on December 16, 2016, by Judge DeGuisti to serve 30 months in federal prison for using a wire fraud scheme to embezzle from his clients and also for failing to file a tax return. Today, Wilson was ordered to pay restitution of $329,398.70 to the Oklahoma Bar Association. The OBA has paid out this amount over several years to Wilson's victims through the Client Security Fund, which was established by the Oklahoma Supreme Court to reimburse clients who suffer a loss of money or property because of the dishonest conduct of an attorney. Wilson was ordered to pay restitution of $141,772.01 to 19 other former clients, in various amounts ranging from approximately $200 to over $75,000. Wilson was also ordered to pay $53,836 in restitution to the IRS.
This case was investigated by the Norman Police Department, the Oklahoma State Bureau of Investigation, the Oklahoma Bar Association, the Federal Bureau of Investigation, and IRS-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former Hancock County, West Virginia, Sheriff’s Deputy sentenced for using excessive forceRead the Press Release
WHEELING, WEST VIRGINIA – Former Hancock County Sheriff’s Deputy Mark A. Cowden, 51, of Weirton, West Virginia, was sentenced today to 18 months in prison for using excessive force against an arrestee, Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting United States Attorney Betsy Steinfeld Jividen made the announcement.
Following a five-day trial, a jury found Cowden guilty of “Deprivation of Rights.” Evidence presented at trial established that Cowden, who was then serving as a lieutenant with the Hancock County Sheriff’s Office, used excessive force on an arrestee in handcuffs in the lobby of the sheriff’s office in January 2015. Jurors were shown evidence that Cowden forced the arrestee face-first into a brick wall, slammed the arrestee’s head into the wall and then punched the arrestee in the back of the head with a closed fist. The entire incident was captured by video surveillance.
“The defendant abused his power as a law enforcement official, using excessive force to harm a person in his custody,” said Principal Deputy Assistant Attorney General Gupta. “Actions like these violate federal law and erode public trust. This conviction and sentence send a clear message that the Justice Department will aggressively prosecute officer misconduct and protect the integrity of our justice system.”
“Former deputy Cowden’s prosecution and conviction by a jury of his peers, the sentence imposed by the Court, and the fact that he will never serve another day as a police officer, reinforces to the people of West Virginia the seriousness of the law enforcement community’s commitment to police its own and to remain accountable to the public whom they have sworn to serve and protect,” said Acting United States Attorney Steinfeld Jividen. “The unlawful actions of this defendant undermine the character and reputation of the members of our law enforcement community, who follow their training and who strive to promote a culture of fairness, professionalism and respect for the law in their dealings with every individual – regardless of that person’s alleged actions.”
The Federal Bureau of Investigation began investigating the matter in March 2016 when the case was referred to it by the U.S. Attorney’s Office. Assistant U.S. Attorney Jarod J. Douglas of the Northern District of West Virginia and Trial Attorney Nicholas Murphy from the Civil Rights Division’s Criminal Section prosecuted the case.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Former Hancock County, West Virginia, Sheriff’s Deputy Sentenced for Using Excessive ForceRead the Press Release
Former Hancock County Sheriff’s Deputy Mark A. Cowden, 51, of Weirton, West Virginia, was sentenced today to 18 months in prison for using excessive force against an arrestee. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia made the announcement.
Following a five-day trial before U.S. District Judge Frederick P. Stamp Jr. of the Northern District of West Virginia, a jury found Cowden guilty of deprivation of constitutional rights under color of law. Evidence presented at trial established that Cowden, who was then serving as a lieutenant with the Hancock County Sheriff’s Office, used excessive force on an arrestee in handcuffs in the lobby of the sheriff’s office in January 2015. Jurors were shown evidence that Cowden forced the arrestee face-first into a brick wall, slammed the arrestee’s head into the wall and then punched the arrestee in the back of the head with a closed fist. The entire incident was captured by video surveillance.
“The defendant abused his power as a law enforcement official, using excessive force to harm a person in his custody,” said Principal Deputy Assistant Attorney General Gupta. “Actions like these violate federal law and erode public trust. This conviction and sentence send a clear message that the Justice Department will aggressively prosecute officer misconduct and protect the integrity of our justice system.”
“Former deputy Cowden’s prosecution and conviction by a jury of his peers, the sentence imposed by the court and the fact that he will never serve another day as a police officer, reinforces to the people of West Virginia the seriousness of the law enforcement community’s commitment to police its own and to remain accountable to the public whom they have sworn to serve and protect,” said U.S. Attorney Steinfeld Jividen. “The unlawful actions of this defendant undermine the character and reputation of the members of our law enforcement community, who follow their training and who strive to promote a culture of fairness, professionalism and respect for the law in their dealings with every individual – regardless of that person’s alleged actions.”
The case was investigated by the FBI. Assistant U.S. Attorney Jarod J. Douglas of the Northern District of West Virginia and Trial Attorney Nicholas Murphy of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Controller Arrested for Defrauding Fitness Company and Retail StoreRead the Press Release
BIRMINGHAM – FBI agents in Texas today arrested the former controller for a Birmingham-based fitness center franchise on charges she defrauded that company and a subsequent retail store out of more than $100,000, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A federal grand jury in Birmingham on Dec. 28 indicted REBECCA FRITH, also known as Rebecca Wilson, 44, on 20 counts of wire fraud between April 2014 and June 2016 while she was controller at Iron Tribe Fitness. It also indicted Frith, now living in Sunset, Texas, on two counts of wire fraud between July 2016 and August 2016 while she was controller at The Pants Store, based in Leeds, Ala.
The indictment seeks to have Frith forfeit $105,309 as proceeds of illegal activity.
Agents arrested Frith without incident at her job in Texas. She was scheduled to go before a federal magistrate judge today in Texas for an initial appearance on the charges against her. She is scheduled for arraignment in U.S. District Court in Birmingham Jan. 19.
According to the indictment, which was unsealed today following her arrest, Frith used her access to Iron Tribe Fitness’ bank and credit card accounts at Servis1st Bank to establish automatic drafts to pay personal monthly utility bills, including cell phone, water, power and cable. She also used Iron Tribe Fitness credit cards to pay unauthorized personal expenses including food, household items, pet care, vehicle maintenance, car payments, taxes, flights, hotels and vacations, the indictment charges.
Frith resigned her position with Iron Tribe Fitness in June 2016 and went to work as controller for The Pants Store. Within her first month of employment there, Frith used her access to The Pants Store’s bank account numbers to set up automatic drafts from the company’s business account at Merrill Lynch to pay her $1,650 apartment rent, according to the indictment.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Banker Sentenced for Not Reporting Suspicious ActivityRead the Press Release
WICHITA, KAN. – A former president of a bank in Plains, Kan., was sentenced Monday to one year on federal probation for not reporting suspicious activity in a customer’s bank account, U.S. Attorney Tom Beall said.
James Kirk Friend, 53, Plains, Kan., pleaded guilty to one count of failing to file a Suspicious Activity Report while he worked at Plains State Bank in Plains, Kan. Friend failed to report suspicious activity in the account of George and Agatha Enns, bank customers who were indicted on charges of laundering proceeds of drug trafficking. Friend admitted he was aware of significant currency and third party check deposits in the Enns’ account that he knew should have been reported. The bank used software to detect suspicious activity and the software flagged the Enns’ account on a regular basis.
The Enns pleaded guilty to money laundering conspiracy. They are set for sentencing Feb. 27.
Beall commended the Drug Enforcement Administration, the Federal Deposit Insurance Corporation, the Internal Revenue Service and Assistant U.S. Attorney Debra Barnett for their work on the case.
Final defendant in California-to-West Virginia drug conspiracy pleads guiltyRead the Press Release
CHARLESTON, W.Va. – The final defendant charged in a California-to-West Virginia methamphetamine conspiracy pleaded guilty today, announced United States Attorney Carol Casto. Miguel Alejandro Robles-Ibarra, 30, a Mexican national, entered his guilty plea to conspiracy to distribute more than 50 grams of methamphetamine.
Robles-Ibarra admitted that from February 2016 to March 19, 2016, he was involved in a drug conspiracy with multiple individuals. Robles-Ibarra also admitted that near the end of February 2016, he helped package ten pound of crystal methamphetamine in a spare tire in the trunk of a vehicle for transport to Kentucky. Two females involved in the conspiracy drove the vehicle from California to meet Brian Ashby, a codefendant residing in Charleston who traveled to Kentucky to pick up the drugs. Robles-Ibarra also admitted that he received a share of the money paid by Ashby for the drugs. Robles-Ibarra further admitted that in March 2016, he helped package another delivery to Ashby - ten pounds of crystal methamphetamine concealed in the spare tire of a vehicle, this time for transport from California to Huntington. Robles-Ibarra never received any money for the March drug shipment because he was arrested in West Virginia where he had traveled to pick up more money from Ashby. Law enforcement found a fingerprint matching Robles-Ibarra on the spare tire in which the methamphetamine was packaged.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating several defendants, some of whom have already been sentenced to prison. Daniel Ortiz-Rivera, a Mexican national, was sentenced to 12 years and seven months in federal prison for conspiracy to distribute more than 50 grams of methamphetamine. Kelly Newcomb, of Nevada, and Danielle Dessaray Estrada, of Los Angeles, were both sentenced to a year and a day in prison for interstate travel in furtherance of a drug crime. Marco Antonio Bojorquez-Rojas, a Mexican national residing in California, was sentenced to a year and a half in prison for interstate travel in furtherance of a drug crime.
Several of the defendants have pleaded guilty and are awaiting sentencing. A woman who was used as a mule to transport methamphetamine, Cara Linn Monasmith, of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Additionally, as part of this conspiracy, Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Velarian Sylvester Carter, of Beckley, Miguel Tafolla-Montoya, a Mexican national, and Ashby, of Kanawha County, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Final Member of Gulf Coast Drug Trafficking Ring ConvictedRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the fifth and final conviction in a series of federal prosecutions aimed at a drug trafficking ring which operated in the Gulf Coast states. On Friday, January 6, 2017, KENDALL LEWIS, age 27, of Lecanto, Florida, appeared before Chief U.S. District Judge Brian A. Jackson and pled guilty to conspiring to distribute 500 grams or more of cocaine, in violation of Title 21, United States Code, Section 846,. LEWIS was remanded into custody following his conviction and is scheduled to be sentenced at 9:30 a.m. on April 20, 2017.
During the hearing and in his plea agreement, LEWIS admitted that in early 2015, he and his co-conspirators made multiple trips to the Houston, Texas area, where they would obtain distribution-level quantities of cocaine. LEWIS used female co-consprators to drive the cocaine back to Florida, while LEWIS and his other co-conspirators followed the car containing the cocaine back to Florida. The cocaine would then be distributed for profit in Florida. On February 9, 2015, after one such trip to Houston, LEWIS and his co-conspirators were arrested while driving through Baton Rouge, Louisiana, and found to be transporting more than 4 kilograms of cocaine.
LEWIS’S conviction follows the convictions of four co-conspirators who are pending sentencing:
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Kareem McKinnon, age 25, of Crystal River, Florida, was convicted on August 4, 2016, following a multi-day jury trial, of conspiring to distribute 500 grams or more of cocaine.
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Arthur William Armstrong, age 34, of Crystal River, Florida, pled guilty on October 21, 2015, to conspiring to possess with the intent to distribute 500 grams or more of cocaine.
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Lamechia Richburg, age 22, of Crystal River, Florida, pled guilty on December 2, 2015, to conspiring to possess with the intent to distribute cocaine.
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Shelby Collazo, age 21, of Beverly Hills, Florida, pled guilty on December 4, 2015, to conspiring to possess with the intent to distribute cocaine.
U.S. Attorney Green stated, “These five convictions should serve as a strong reminder of this office’s commitment to pursuing those who transport and distribute cocaine and other dangerous drugs on our streets. I appreciate the efforts of the DEA, BRPD, and LSP for helping us to dismantle this drug trafficking ring, and the efforts of all of our committed law enforcement partners who work to keep drugs out of our community every day.”
DEA Assistant Special Agent-in-Charge Brad L. Byerley stated, “These convictions signify that law enforcement will not tolerate drug dealing in our communities. The DEA and our law enforcement partners are committed to identifying every individual within a drug trafficking organization who is responsible for purveying our city with illegal narcotics.”
This matter was investigated by the United States Drug Enforcement Agency, with valuable assistance from the Baton Rouge Police Department and the Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Adam Ptashkin and Robert Piedrahita.
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Esteban Santiago Has Initial Appearance in Federal Court in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
Esteban Santiago Ruiz (Santiago) had his initial appearance before U.S. Magistrate Judge Alicia O. Valle this morning in Fort Lauderdale, Florida. Santiago is being temporarily detained without bond. A detention hearing has been scheduled for Tuesday, January 17, 2017 at 1:00 p.m., before United States Magistrate Judge Lurana S. Snow in Fort Lauderdale, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) made the announcement.
Santiago is charged in a federal criminal complaint with violations of: Title 18, United States Code, Section 37(a)(1), performing an act of violence against a person at an airport serving international civil aviation that caused serious bodily injury; Title 18, United States Code, Section 924(c)(1)(A), using and carrying a firearm during and in relation to a crime of violence; and Title 18, United States Code, Section 924(j), causing the death of a person through the use of a firearm in the course of a violation of Title 18, United States Code, Section 924(c). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
According to the criminal complaint, on January 6, 2017, at approximately 12:56 p.m., Santiago was present in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, when he pulled out a handgun. The area was crowded with newly-arrived passengers retrieving their luggage. Santiago started shooting, aiming at his victims’ heads until he was out of ammunition. Santiago killed five people and wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies.
The case is being prosecuted by Assistant United States Attorney Ricardo A. Del Toro with assistance from Department of Justice Trial Attorney Larry Schneider.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Detroit-Area Neurosurgeon Sentenced to 235 Months in Prison for Role in $2.8 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area neurosurgeon was sentenced yesterday to 235 months in prison for his role in $2.8 million health care fraud scheme in which he caused serious bodily harm to patients by performing unnecessary invasive spinal surgeries.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Acting Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Service Office of Inspector General (HHS-OIG) Chicago Region, Special Agent in Charge Glenn R. Ferry of the HHS-OIG Los Angeles Region and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Aria O. Sabit M.D., 43, of Birmingham, Michigan, pleaded guilty to four counts of health care fraud, one count of conspiracy to commit health care fraud and one count of unlawful distribution of a controlled substance, resulting in losses to Medicare, Medicaid and various private insurance companies.
Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group, which had various locations in the Eastern District of Michigan. In connection with his guilty plea, Sabit admitted that he derived significant profits by convincing patients to undergo spinal fusion surgeries with “instrumentation” (medical devices designed to stabilize and strengthen the spine) that he never performed and billed public and private healthcare benefit programs for those fraudulent services. Sabit further admitted that, in some instances, he operated on patients and dictated in his operative reports – which he knew would later be used to support fraudulent insurance claims – that he had performed spinal fusion with instrumentation, when he had not. Specifically, Sabit fraudulently billed public and private health care programs for instrumentation when, in fact, he used cortical bone dowels made of tissue. Sabit failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.
Before moving to moving to Michigan, Sabit was a resident of Ventura, California, and a licensed neurosurgeon in California. Sabit admitted that, in approximately February 2010, while he was on the staff of a California hospital, he became involved with Apex Medical Technologies LLC (Apex), which was owned by another neurosurgeon and three non-physicians. In exchange for the opportunity to invest in Apex and share in its profits, Sabit agreed to convince his hospital to buy spinal implant devices from Apex and to use a substantial number Apex spinal implant devices in his surgical procedures. Sabit further admitted that he and Apex’s co-owners concealed Sabit’s involvement in Apex from the hospitals and surgical centers.
In connection with his guilty plea, Sabit admitted that the financial incentives provided to him by Apex and his co-conspirators caused him to use more spinal implant devices than were medically necessary to treat his patients in order to generate more sales revenue for Apex, which resulted in serious bodily injury to his patients. Sabit also admitted that, on a few occasions, the money he made from using Apex spinal implant devices motivated him either to refer patients for unnecessary spine surgeries or for more complex procedures that they did not need.
The FBI, HHS-OIG and ICE investigated the Michigan case. The FBI and HHS-OIG investigated the California case, which was subsequently transferred to the Eastern District of Michigan. The California case 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 of the Eastern District of Michigan. Trial Attorney Catherine K. Dick, formerly of the Criminal Division’s Fraud Section, is prosecuting the California case. Assistant U.S. Attorneys Regina R. McCullough and Philip A. Ross of the Eastern District of Michigan are prosecuting the Michigan case.
Sabit also is a defendant in two civil False Claims Act cases brought by the Justice Department in the Central District of California. These cases remain pending.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Detroit man sentenced to federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to three years and 11 months in federal prison for a drug crime, announced United States Attorney Carol Casto. Djuan Levell Washington, 28, previously pleaded guilty to possession with intent to distribute heroin.
On July 24, 2015, Washington was involved in a traffic stop on the 300 block of 31st Street in Huntington. As the car began to stop, Washington was seen throwing three plastic bags out of the passenger window. A police dashboard camera also recorded Washington throwing the bags out of the car. The bags were recovered and were found to contain 126 individual baggies of heroin. Officers additionally located 10 individually wrapped baggies of crack within the three plastic bags. Washington admitted that he intended to sell the drugs. In a further search of the vehicle, investigating officers discovered a loaded Hi-Point 9 millimeter pistol in a backpack belonging to Washington.
The Huntington FBI Drug Task Force and the Huntington Police Department conducted the investigation. Assistant United States Attorney R. Gregory McVey is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Connecticut Financial Advisor Agrees to Plead Guilty to Obstructing SEC InvestigationRead the Press Release
BOSTON – A Connecticut financial advisor has agreed to plead guilty in connection with obstructing a Securities and Exchange Commission (SEC) investigation by attempting to conceal secret and improper referral payments he had made to a lawyer in order to secure the business of a wealthy client.
“Today’s charge underscores our determination to investigate and prosecute those who impede SEC examinations and enforcement,” said United States Attorney Carmen M. Ortiz. “The SEC depends on the provision of accurate, truthful information from the people and entities it regulates. When those people choose to mislead the SEC, my office will act to ensure that the truth comes forth.”
“The charges announced today by the United States Attorney’s Office reflect the Office of Inspector General’s commitment to investigate individuals who obstruct SEC enforcement activities,” said SEC Inspector General Carl Hoecker.
John William Rafal, 66, the former president of a financial services company in Connecticut, was charged today with obstructing the SEC’s investigation. U.S. District Court Judge Nathaniel M. Gorton scheduled a plea hearing for Jan. 20, 2017.
It is alleged that in 2011, Rafal struck a deal with an attorney in which Rafal’s company would pay the attorney a $50,000 referral fee in return for referring a wealthy client to the company. Rafal knew that this payment violated federal and state regulations. Rafal’s company discovered the payments, stopped them, and directed Rafal to have the attorney return the fees that had already been paid. Unbeknownst to the company, however, Rafal secretly wrote checks to the attorney out of private checking accounts, paying him the referral fee after all.
In May 2015, Rafal testified about the referral agreement as part of a formal SEC examination. In his testimony, Rafal repeatedly described the referral matter as “cured,” “reverse[d],” “undo[ne],” or “fix[ed]” in an effort to prevent the SEC from learning about his secret payments to the attorney. In his testimony, Rafal never mentioned the checks he had written to the attorney out of his personal accounts.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. If the plea agreement is accepted by the Court, Rafal will be sentenced to four months of home confinement and four months of probation, and will pay a fine of $4,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Rafal has also entered into a separate agreement with the SEC which, among other sanctions and penalties, will bar him for life from working in the securities industry. As part of the agreement, Rafal will also pay over $500,000 to the SEC in disgorgement and penalties.
United States Attorney Ortiz and SEC Inspector General Hoecker made the announcement today. Inspector General Hoecker expressed his appreciation to the dedicated prosecutors and IG staff who worked collaboratively on this investigation. The case is being prosecuted by Assistant U.S. Attorney Brian Pérez-Daple of Ortiz’s Economic Crimes Unit.
Cleveland Heights man sentenced to nearly six years in prison for identity theft and tax fraudRead the Press Release
A Cleveland Heights man was sentenced to nearly six years in prison for identity theft and tax violations, said U.S. Attorney Carole S. Rendon and Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Darryl E. Farmer, 45, was found guilty last year of one count of conspiracy to defraud, nine counts of false tax claims, eight counts of aiding in the preparation of false tax returns, two counts of wire fraud and two counts of aggravated identity theft.
U.S. District Judge John Adams sentenced Farmer to 70 months in prison and ordered him to pay $100,230 in restitution.
Farmer held himself out as a neighborhood tax preparer who paid recruiters a “referral fee” to provide him identifications and personal identifiers of others. Farmer used this information to file false tax returns, including claiming tax credits for businesses that did not exist, according to court documents.
Farmer also opened multiple personal and business bank accounts, which he controlled, in the names of these various people in order to deposit the refunds from the tax returns he filed, according to court documents.
Farmer falsely claimed more than $100,000 from the IRS between 2010 and 2012, according to court documents.
“This defendant stole identities and stole from taxpayers,” Rendon said. “This prison sentence is a reflection of how wantonly he broke the law.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law,” Stemen said. “IRS Criminal Investigation, along with the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett following an investigation by the IRS.
Bulgarian National Sentenced to Federal Prison for Possession of a Device to Make Fraudulent Credit and Debit CardsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Martin Aleksandrov Enev, age 27, a Bulgarian national residing in Randallstown, Maryland, today to 33 months in prison, followed by one year of supervised release, for possession of device-making equipment with the intent to defraud, and identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, on July 20, 2016, Bulgarian Customs Officers contacted U.S. Secret Service agents after they identified what they believed to be an illegal “ATM skimming device” concealed within a black and green nylon pouch, which is capable of reading the encrypted information contained in the magnetic strip on the back of a credit or debit card. The pouch had been discovered during a routine screening of international shipments scheduled to depart from the airport. The pouch was enclosed inside a shipper’s plastic delivery envelope with a packing slip attached addressed to “Marin Penev” at an address in Randallstown. Bulgarian authorities sent photographs of the device and envelope to the Secret Service.
On July 21, 2016, members of the USSS Maryland Electronic Crimes Task Force arranged a controlled delivery of the envelope and its contents once it arrived in the United States. On July 26, 2016, Enev picked up the package, providing a Maryland driver’s license in his name as identification. Special Agents of the USSS and Baltimore County Detectives followed Enev to a residence in Randallstown. The owner of the residence advised agents that Enev rented a room on the first floor of the residence and provided agents with Enev’s telephone number. A Secret Service agent called the phone number and spoke to Enev who agreed to exit the residence. Enev came out of the house and was taken into custody.
Search warrants were executed at Enev’s residence and his vehicle. From the vehicle, law enforcement recovered the opened shipping envelope, which was empty; one box containing 15 pre-paid gift and credit cards capable of being recoded with fraudulently obtained financial proceeds, along with various business cards; and three paper receipts indicating the reloading of a pre-paid gift card in the amount of $270. The search of Enev’s living area recovered: the black and green nylon pouch containing an ATM skimming, which matched the photographs of the device sent by Bulgarian authorities; two other ATM skimming devices inside the hall closet, along with a magnetic card re-encoder and 40 blank white credit cards; a desktop computer and cellular phone; and prepaid credit cards found in a desk and in Enev’s wallet. Also located in the wallet was a Maryland driver’s license bearing his name and photograph, and a Bulgarian identification card bearing Enev’s photograph. His Republic of Bulgaria driver’s license and European Union identification card were also seized during search.
A preliminary review of the prepaid gift cards and credit cards seized during the search revealed that some of them had been recoded with other people’s personal identifying information (PII), including their names and financial account numbers, creating a counterfeit access device capable of accessing those persons’ bank accounts and/or credit card balances through an ATM machine. The USSS confirmed that money had already been withdrawn from some of those financial accounts. PII contained on some of the other cards in Enev’s possession was obtained from financial accounts or credit cards created and issued in Europe. The government believes that Enev played a key role in an ongoing identity theft ring with ties to a criminal association based in Europe.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke, who prosecuted the case.
Berkeley County man sentenced for failing to register as a sex offenderRead the Press Release
MARTINSBURG, WEST VIRGINIA – Saul Hicks Williams, 36, of Inwood, West Virginia was sentenced in federal court today to 36 months incarceration for failing to register as a sex offender, Acting United States Attorney Betsy Steinfeld Jividen, announced.
From September 2015 through November 2015, Williams failed to register and update his registration as a sex offender in Berkeley County, WV. Williams is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law, to wit: Sexual Assault in the Third Degree, in the Circuit Court of Berkeley County, West Virginia. He pled guilty to one count of “Failure to Register as a Sex Offender” in October 2016.
Assistant United States Attorney Anna K. Krasinski prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Attorney General Loretta E. Lynch Announces the Justice Department’s National Strategy to Combat Human TraffickingRead the Press Release
Justice Department Issues Report as Part of the Commemoration of National Slavery and Human Trafficking Prevention Month
As part of National Slavery and Human Trafficking Prevention Month, Attorney General Loretta E. Lynch today announced the Justice Department’s National Strategy to Combat Human Trafficking (National Strategy), as required by the 2015 Justice for Victims of Trafficking Act. In addition to this new National Strategy, every year, the Attorney General also submits the Attorney General’s Annual Report to Congress and Assessment of U.S. Government Activities to Combat Trafficking in Persons, which details the programs and activities carried out by all federal agencies and sets forth recommended goals for the upcoming year. The most recent report, for FY 2015, is available here. The department has also launched www.justice.gov/humantrafficking. This page will serve as a central destination to learn more about the department’s efforts to combat the scourge of human trafficking.
“Human trafficking is one of the most devastating crimes that we confront,” said Attorney General Lynch. “The National Strategy to Combat Human Trafficking summarizes the work that our many components and our U.S. Attorney's Offices are doing to better help survivors and target traffickers. These efforts encourage increased collaboration within the department as well as between the department and our partners in order to build on our successes as we prepare to take on the work that remains.”
The department will implement and maintain the National Strategy in order to enhance the department’s work to combat human trafficking. The National Strategy sets forth plans to enhance coordination within the department and to develop specific strategies within each federal district to stop human trafficking. The National Strategy includes the following:
- An assessment of the threat presented by human trafficking based on FBI case information.
- An account of the work of the department’s components that are most extensively involved in anti-trafficking efforts, including the Civil Rights Division’s Human Trafficking Prosecution Unit; the Criminal Division’s Child Exploitation and Obscenity Section; the U.S. Attorneys’ Offices; the FBI; and various grant-making components within the Office of Justice Programs.
- A description of the district-specific strategies developed by each U.S. Attorney’s Office.
- A discussion of human trafficking and anti-trafficking efforts in Indian Country.
- Information about annual spending dedicated to preventing and combating human trafficking.
- A description of plans to encourage cooperation, coordination and mutual support between the private and non-profit sector and the department to combat human trafficking.
Raising awareness, supporting initiatives that prevent human trafficking and bringing justice to those that bring harm to the vulnerable has been a top priority of Attorney General Lynch. The department’s anti-trafficking efforts involve numerous components engaged in a full spectrum of activities: investigations, prosecutions, services for victims, enforcement initiatives to strengthen anti-trafficking partnerships, innovative prevention efforts, capacity-building programs to advance survivor-centered anti-trafficking strategies and grant funding to state, local and tribal authorities and to non-governmental organizations.
To learn more about the report and the department’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
National Strategy to Combat Human TraffickingAnother Sentenced in $23 Million Fraud SchemeRead the Press Release
HOUSTON – Another person has been ordered to federal prison in relation to a $23 million nonexistent commercial accounts receivable scheme, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (CI).
Stefano Guido Vitale, 40, of Scottsdale, Arizona, pleaded guilty March 21, 2016. Co-defendants Alan Leschyshyn, 53, of Cave Creek, Arizona; Bree Ann Davis, 40, of Lakewood, Colorado, and Tammie Roth Hanania, 59, and Edward Peter Hanania, 64, both of Folsom, California, all had previously entered their respective guilty pleas. All were convicted of conspiring to engage a scheme to defraud and conspiracy to commit money laundering. Vitale and Leschyshyn were also convicted of eight additional counts of wire fraud.
Today, U.S. District Judge Vanessa Gilmore sentenced Vitale to serve a total of 262 months in federal prison immediately followed by three years of supervised release. The court also ordered he pay restitution of $6,177,069.11.
In November 2016, Leschyshyn was ordered to serve 235 months followed by five years of supervised release. Tammie and Edward Hanania were ordered to serve 12 months and one day in prison and two years of supervised release. Davis will be sentenced later this month.
The scheme produced approximately $6.4 million in fraudulently obtained proceeds which the defendants agreed to launder through various bank accounts. They executed the scheme to defraud by using and establishing various business entities to sell, at a discount, nonexistent commercial accounts receivable. The defendants would approach factoring companies as sellers of customized gaming vault bundles and present fabricated invoices as evidence the defendants were owed a certain amount of money for goods provided to another one of their business entities. To establish creditworthiness of these companies and to convince the factoring company the credit risk was minimal, the defendants fabricated and/or altered documents and provided them to the factoring company.
The fraud conspiracy also proved that Vitale and Leschyshyn defrauded BOKF, NA, doing business as Bank of Arizona, when they applied for and received a $1 million line of credit secured by the Export Import Bank of the United States.
Vitale will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI conducted the investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the case.
Alleged Bank Robber DetainedRead the Press Release
PROVIDENCE – Lenin Gutierrez, 39, of Cranston, was ordered detained in federal custody today on a federal criminal complaint charging him with bank robbery. It is alleged that Gutierrez robbed a Citizens Bank branch office inside a Stop & Shop supermarket in Johnston on December 30, 2016.
The criminal complaint and Gutierrez’s initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan is announced by United States Attorney Peter F. Neronha, Johnston Police Chief Richard S. Tamburini and Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI.
According to court documents and information presented to the court, it is alleged that Gutierrez, dressed in a beige jacket, black facemask, and a Spiderman hat and scarf, handed the bank teller a hand-written note demanding cash and threatening to shoot the teller if the money was not handed over. After the teller gave Gutierrez $100 and $50 dollar bills, Gutierrez demanded more money. The teller then handed over $20 bills. Gutierrez left the bank without showing a weapon.
According to court documents, a supermarket employee told responding Johnston Police officers that he saw a person who looked out of place on the other side of a fence adjoining the supermarket parking lot. Officers searched the area and located a black facemask, and a Spiderman hat and scarf. A beige jacket was located in the parking lot. Inside the jacket, officers located a note that said, “Robbery $100 and $50 Stacks only No die pack No Alarm. have A gun will use.” An outer pocket contained a stack of $20 bills.
According to court documents, a fingerprint lifted from the note by Johnston Police detectives was matched to Lenin Gutierrez. Further investigation by Johnston Police Department detectives, including the review of electronic surveillance video, determined that Gutierrez allegedly purchased the black ski mask, and Spiderman hat and scarf at a Walmart in Cranston the day before the robbery.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Bank robbery is punishable by statutory penalties of up to 20 years imprisonment followed by up to 3 years supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Albuquerque Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Daniel Roy Nard, 37, of Albuquerque, N.M., pled guilty today in federal court to violating the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Nard was charged by indictment on Dec. 17, 2015, with violating SORNA by failing to update his sex offender registration on Oct. 30, 2015, or thereafter. Nard was required to register as a sex offender and maintain an updated registration based on a federal child pornography conviction in Montana in 2007. According to the indictment, Nard was required to maintain an updated sex offender registration in Bernalillo County, N.M.
During today’s proceedings, Nard pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Nard faces a maximum penalty of ten years in federal prison. He will be required to register as a sex offender after completing his prison sentence. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Abington Memorial Hospital to Pay $510,000 to Resolve Drug Diversion AllegationsRead the Press Release
Abington Memorial Hospital (AMH) has agreed to pay the United States $510,000 to resolve allegations that failures in AMH’s controls and practices enabled its employee to divert controlled substances for illegal, non-medical uses. In addition to this monetary settlement, AMH has implemented a program to prevent, identify, and address future diversions. The resolution was announced by Acting United States Attorney Louis D. Lappen.
In 2013, an investigation was launched after AMH disclosed to the Drug Enforcement Administration (DEA) that a pharmacist at AMH’s inpatient pharmacy had stolen large volumes of controlled substances (prescription medications) from the hospital. Altogether, over the course of at least 85 different occasions between February 1, 2010 and August 20, 2013, the pharmacist stole more than 35,000 pills, including highly addictive painkillers such as oxycodone. DEA’s ensuing audit of AMH’s controlled substances revealed pill count discrepancies totaling over 35,000, missing or incomplete medication inventories, and altered or missing drug records, all in violation of AMH’s responsibilities under the Controlled Substances Act and federal regulations.
In a related federal criminal matter, in 2015, the AMH pharmacist, Renata Dul, pleaded guilty to 25 counts of possession with the intent to distribute oxycodone and was sentenced to six years of imprisonment and three years of supervised release.
Since the investigation began, AMH has worked cooperatively with the DEA and the U.S. Attorney’s Office to address the identified deficiencies in AMH’s handling of controlled substances. The plan includes upgrades to AMH’s inpatient pharmacy computer systems; physically enclosing the controlled substances vault; installing new and additional security cameras and badge swipe access; adding a rotary depositary safe; adding a new, locked controlled substances and anesthesia carts; retaining outside consultants to review and improve AMH’s controlled substances policies and practices; purchasing additional intravenous lock boxes; creating a Drug Diversion Prevention & Monitoring Committee and a Task Force for Controlled Substances Infusions-Wasting; improving inventory practices to account for bulk and unit dose medications broken down individually; instituting daily, biweekly, weekly, monthly, and yearly controlled substances-diversion monitoring activities; centralizing the ordering of controlled substances; increasing training for proper controlled substance storage; tracking serial numbers used in dispensing of controlled substances script pads to nursing units; and revising controlled substances policies and procedures to ensure uniformity and require biannual review. In addition, AMH has hired and trained a lead supervisor pharmacy technician, on a full-time basis, whose primary responsibility is monitoring the controlled substances operational workflow from ordering through dispensing.
“Hospitals like Abington Memorial have a special responsibility to ensure that controlled substances are used for patient care and not diverted for non-medical uses,” said Acting U.S. Attorney Lappen. “Diversion leads to illegal sales of addictive prescription drugs that have had a devastating impact on members of our community. We commend Abington Memorial Hospital for disclosing its diversion problems and for working to improve its practices and address potential diversion by hospital personnel.”
“The illegal diversion of prescription medication is a violation of federal law and of primary concern to the DEA. All too often the diversion and misuse of powerful prescription opioids such as oxycodone leads to heroin use, overdose, and even death,” said Gary Tuggle, Special Agent in Charge of the DEA’s Philadelphia Field Division. “We are confident that the steps that Abington Memorial Hospital has taken to secure controlled substances will prevent incidents such as this in the future.”
The case was handled by Assistant United States Attorneys Mark J. Sherer and Paul W. Kaufman, and was investigated by DEA diversion investigators James J. Corbett and Ashley F. Wade, Group Supervisor Regina Spaddy, and Diversion Program Manager Donetta M. Spears.
Saturday 7 January 2017
Conneticut Man Pleads Guilty to Five Counts of Threating Local Law Enforcement, District Attorney and State Court JudgeRead the Press Release
TULSA, OKLAHOMA— Jeffrey A. Stevens, 60, of East Lyme, Connecticut entered a guilty plea to five counts of Interstate Communications with the Intent to Injure.
Danny C. Williams, Sr., United States Attorney for the Northern District said, “Jeffrey Stevens used the internet to intentionally disseminate threats to kill in order to impact the professional responsibilities and duties of those involved in the prosecution of the Terrance Crutcher case. This type of criminal conduct will not be tolerated.”
Stevens prosecution resulted from an investigation by the Federal Bureau of Investigations. The investigation revealed that between September 19, 2016 and September 22, 2016 in the wake of the shooting of Terence Crutcher, Stevens threatened, via the internet, to injure or kill local law enforcement, a prosecutor, a judge, and their immediate families. Steven’s intended that the recipients of the threats would interpret the threats as true threats impacting the hiring practices with the Tulsa Police Department and decision making process within the Tulsa County justice system. Stevens entered a guilty plea pursuant to a plea agreement with the United States.
Stevens faces a maximum sentence of five-years imprisonment and a fine of not more than $250,000.
The case is being prosecuted by Assistant United States Attorneys R. Trent Shores and Allen Litchfield.
Alaska Resident Arrested in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
An Alaska resident was arrested and charged in a federal criminal complaint in connection with the deadly shooting of multiple victims at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) announce the arrest of Esteban Santiago Ruiz (Santiago), 26, based on a federal criminal complaint charging him with violations of: Title 18, United States Code, Section 37(a)(1), performing an act of violence against a person at an airport serving international civil aviation that caused serious bodily injury; Title 18, United States Code, Section 924(c)(1)(A), using and carrying a firearm during and in relation to a crime of violence; and Title 18, United States Code, Section 924(j), causing the death of a person through the use of a firearm in the course of a violation of Title 18, United States Code, Section 924(c). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
Santiago will have his initial appearance Monday, January 9, 2017 at 11:00 a.m., before United States Magistrate Judge Alicia O. Valle in Fort Lauderdale, Florida.
"The U.S. Attorney's Office expresses our deepest condolences to the victims’ families and to all of those impacted by yesterday's tragedy. Our Office commends the first responders, civilians and law enforcement partners who came together to provide assistance to those in need and support the ongoing investigation," stated U.S Attorney Wifredo Ferrer. "Today's charges represent the gravity of the situation and reflect the commitment of federal, state and local law enforcement personnel to continually protect the community and prosecute those who target our residents and visitors. As the investigation unfolds, we will continue to pursue all leads and evidence in this matter."
“Our condolences are with the victims of this heinous crime and their families,” said George L. Piro, Special Agent in Charge, FBI Miami. “I want to ensure these families that law enforcement is working tirelessly in order to ensure justice is served.”
According to the criminal complaint, on January 6, 2017, at approximately 12:56 p.m., Santiago was present in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, when he pulled out a handgun. The area was crowded with newly-arrived passengers retrieving their luggage. Santiago started shooting, aiming at his victims’ heads until he was out of ammunition. Santiago killed five people and wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies.
The case is being prosecuted by Assistant United States Attorney Ricardo A. Del Toro with assistance from Department of Justice Trial Attorney Larry Schneider.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Complaint
Friday 6 January 2017
Watertown Woman Pleads Guilty to FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that Michele Ann Palm, age 51, of Watertown, South Dakota, appeared before the Honorable Charles B. Kornmann, U.S. District Judge, on January 6, 2017, and pled guilty to an Indictment that charged her with wire fraud.
The maximum penalty upon conviction is 20 years in prison and/or a $250,000 fine, plus restitution.
Palm was appointed to serve as guardian and conservator for a woman she had known for several years. Beginning in March 2008, Palm wrote checks to herself and made ATM cash withdrawals from the victim’s account, and used the funds for her own purposes rather than for the benefit of the protected person. Because some of the transactions involved interstate electronic wire transmissions, Palm’s theft is a federal offense.
The investigation was conducted by the Watertown Police Department and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Ann M. Hoffman.
A presentence investigation was ordered and a sentencing date was set for May 30, 2017. Palm was released pending sentencing.
U.S. Nuclear Engineer Pleads Guilty to Violating the Atomic Energy ActRead the Press Release
Szuhsiung Ho, aka Allen Ho, 66, a naturalized U.S. citizen, pleaded guilty to conspiracy to unlawfully engage or participate in the production or development of special nuclear material outside the U.S., without the required authorization from the U.S. Department of Energy (DOE) in violation of the Atomic Energy Act.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee made the announcement.
In April 2016, a federal grand jury issued a two-count indictment against Ho; China General Nuclear Power Company (CGNPC), the largest nuclear power company in China, and Energy Technology International (ETI), a Delaware corporation. At the time of the indictment Ho was a nuclear engineer, employed as a consultant by CGNPC and was also the owner of ETI. CGNPC specialized in the development and manufacture of nuclear reactors and was controlled by China’s State-Owned Assets Supervision and Administration Commission.
According to documents filed in the case, beginning in 1997 and continuing through April 2016, Ho conspired with others to engage or participate in the development or production of special nuclear material in China, without specific authorization to do so from the U.S. Secretary of Energy, as required by law. Ho assisted CGNPC in procuring U.S.-based nuclear engineers to assist CGNPC and its subsidiaries with designing and manufacturing certain components for nuclear reactors more quickly by reducing the time and financial costs of research and development of nuclear technology. In particular, Ho sought technical assistance related to CGNPC’s Small Modular Reactor Program; CGNPC’s Advanced Fuel Assembly Program; CGNPC’s Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
Under the direction of CGNPC, Ho also identified, recruited, and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
Sentencing has been set for May 17, 2017, at 11:00 a.m., in U.S. District Court in Knoxville, Tennessee. Ho faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. 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.
This case was investigated by the FBI, Tennessee Valley Authority-Office of the Inspector General, DOE-National Nuclear Security Administration and U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. Assistant U.S. Attorneys Charles E. Atchley Jr. and Bart Slabbekorn of the Eastern District of Tennessee, and Trial Attorney Casey T. Arrowood of the Counterintelligence and Export Control Section and Attorney Jeffrey M. Smith of the Appellate Unit in the National Security Division, represented the U.S.
U.S. Nuclear Engineer Pleads Guilty to Violating the Atomic Energy ActRead the Press Release
WASHINGTON – Szuhsiung Ho, aka Allen Ho, 66, a naturalized U.S. citizen, pleaded guilty to conspiracy to unlawfully engage or participate in the production or development of special nuclear material outside the U.S., without the required authorization from the U.S. Department of Energy (DOE) in violation of the Atomic Energy Act.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee made the announcement.
On April 2016, a federal grand jury issued a two-count indictment against Ho; China General Nuclear Power Company (CGNPC), the largest nuclear power company in China, and Energy Technology International (ETI), a Delaware corporation. At the time of the indictment Ho was a nuclear engineer, employed as a consultant by CGNPC and was also the owner of ETI. CGNPC specialized in the development and manufacture of nuclear reactors and was controlled by China’s State-Owned Assets Supervision and Administration Commission.
According to documents filed in the case, beginning in 1997 and continuing through April 2016, Ho conspired with others to engage or participate in the development or production of special nuclear material in China, without specific authorization to do so from the U.S. Secretary of Energy, as required by law. Ho assisted CGNPC in procuring U.S.-based nuclear engineers to assist CGNPC and its subsidiaries with designing and manufacturing certain components for nuclear reactors more quickly by reducing the time and financial costs of research and development of nuclear technology. In particular, Ho sought technical assistance related to CGNPC’s Small Modular Reactor Program; CGNPC’s Advanced Fuel Assembly Program; CGNPC’s Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
Under the direction of CGNPC, Ho also identified, recruited, and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
Sentencing has been set for May 17, 2017, at 11:00 a.m., in U.S. District Court in Knoxville, Tennessee. Ho faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. 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.
This case was investigated by the FBI, Tennessee Valley Authority-Office of the Inspector General, DOE-National Nuclear Security Administration and U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. Assistant U.S. Attorneys Charles E. Atchley Jr. and Bart Slabbekorn of the Eastern District of Tennessee, and Trial Attorney Casey T. Arrowood of the Counterintelligence and Export Control Section and Attorney Jeffrey M. Smith of the Appellate Unit in the National Security Division, represented the U.S.
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U.S. Citizen Living in Mexico Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Elizabeth Gallardo, 37, a U.S. citizen living in Mexico, was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Gallardo and co-defendant Yuriria Anahid Ramirez-Moreno, 33, a Mexican national, were arrested on May 13, 2016, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute. According to the criminal complaint, an officer of the Las Cruces Police Department (LCPD) arrested the women after finding them in possession of methamphetamine; Gallardo possessed 100.6 grams of methamphetamine and Ramirez-Moreno possessed 108.5 grams of methamphetamine.
Gallardo and Ramirez-Moreno were subsequently indicted on July 20, 2016, and charged with conspiracy to distribute methamphetamine on May 12, 2016, in Doña Ana County, N.M.
On Aug. 29, 2016, Gallardo and Ramirez-Moreno both entered guilty pleas to felony informations charging them with conspiracy to possess methamphetamine with intent to distribute. In entering her guilty plea, Gallardo admitted that on April 29, 2016, she delivered 54.7 grams of methamphetamine to an undercover agent. Ramirez-Moreno admitted that on May 5, 2016, she delivered 56 grams of methamphetamine to the undercover agent. Both women admitted that they intended to deliver the 209 grams of methamphetamine seized from them on May 12, 2016, to the same undercover agent.
At sentencing, Ramirez-Moreno faces a maximum penalty of 20 years in prison followed by not less than three years of supervised release. Ramirez-Moreno remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Las Cruces Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
U.S. Attorney Wifredo Ferrer to Participate in Human Trafficking Panel Discussion with Department of Justice Employees on Monday in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
U.S. Attorney Wifredo Ferrer of the Southern District of Florida will join the “Human Trafficking: Preventing the Crime, Prosecuting the Perpetrators, Protecting the Survivors” panel discussion with U.S. Department of Justice employees to commemorate National Slavery and Human Trafficking Prevention Month in Washington, DC on MONDAY, JAN. 9, AT 1:00 P.M. EST. Attorney General Loretta E. Lynch Attorney General Loretta E. Lynch will deliver opening remarks.
WHAT: A panel discussion on human trafficking with department employees to commemorate National Slavery and Human Trafficking Prevention Month at the U.S. Department of Justice.
WHO: Attorney General Loretta E. Lynch to deliver opening remarks
Panelists:
U.S. Attorney Wifredo Ferrer of the Southern District of Florida
U.S. Attorney Kenneth Polite of the Eastern District of Louisiana
U.S. Attorney Carole Rendon of the Northern District of Ohio
Director Hilary Axam of the Civil Rights Division’s Human Trafficking Prosecution Unit
Acting Director Marilyn Roberts of the Office of Justice Programs’ Office for Victims of Crime
WHEN: MONDAY, JANUARY 9, 2017
1:00 p.m. EST
WHERE: Department of Justice
7th Floor Conference Center
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Gather Time: 12:00 p.m. EDT; Final Access: 12:50 p.m. EDT)
LIVESTREAMED AT: HTTPS://WWW.JUSTICE.GOV/LIVE
NOTE: Media should RSVP to [email protected]. Questions regarding logistics should be directed to the Office of Public Affairs at [email protected] or (202) 514-2007. All media will use the main visitor’s entrance on Constitution Avenue, between 9th and 10th Streets. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
Two convicted killers from Canton indicted for drug and firearms crimesRead the Press Release
Two Canton men with prior homicide convictions were indicted on firearms and drug trafficking charges, law enforcement officials said.
Named in the seven-count indictment are Maurice A. Stewart, 39 and William W. Moore, 37. A third man, Jason E. Cousins, 45, also of Canton, was also indicted on a firearms charge.
Stewart and Moore are charged with possession with intent to distribute at least 500 grams of methamphetamine, cocaine and crack cocaine.
Stewart and Moore are also charged with using firearms in furtherance of drug trafficking crimes.
Moore was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2000 conviction for murder in Michigan.
Stewart was charged with being a felon in possession of a firearm. The indictment alleges that he had a Glock model 23 handgun, a Smith and Wesson SD9 handgun and ammunition on Nov. 17, 2016, despite a 2002 conviction for involuntary manslaughter in the Franklin County Court of Common Pleas.
Cousins was charged with being a felon in possession of a firearm. The indictment alleges that he had a Windham Weaponry AR-15 and Mossberg 12-gauge shotgun despite 2006 convictions for possession of cocaine and carrying a concealed weapon in the Summit County Court of Common Pleas.
The indictment seeks to forfeit the aforementioned firearms and ammunition, as well as Bullet Safe body armor and $10,904 in cash.
This case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the US Marshals Fugitive Task Force, the Canton Police Department, the FBI’s Canton office and the Drug Enforcement Administration’s Akron office.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment 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 Texas Men Plead Guilty to KidnappingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that KALVIN KYLE MCCOWN, age 43, of Longview, Texas, and TRAVIS LEE HILL, age 27, of Ore City, Texas, pled guilty to KIDNAPPING, in violation of Title 18, United States Code, Sections 1201(a)(1), punishable by any term of years up to life imprisonment, and up to a $250,000.00 fine or both.
The Superseding Indictment alleged that on or about July 13, 2011, in the Eastern District of Oklahoma and elsewhere, the defendants, and others known and unknown to the Grand Jury, aiding and abetting each other, did unlawfully and willfully seize, confine, kidnap, abduct, carry away and hold for the purpose of punishment and retribution, and, in committing or in furtherance of the commission of the offense, did willfully transport Kenneth Earl Ayres in interstate commerce from Texas to Oklahoma, regardless of whether he was alive when transported, and in committing this offense, did cause the death of Kenneth Earl Ayres.
The charges arose from a joint investigation by the Homeland Security Investigations Operation Community Shield Gang Task Force, Oklahoma State Bureau of Investigation, Longview Police Department, Texas Department of Public Safety, Carrollton Texas Police Department, McCurtain County Sheriff’s Office, Panola County Texas Sheriff’s Office, United States Bureau of Prisons, and the Texas Rangers.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendants will remain in custody pending a sentencing hearing.
Assistant United States Attorney Rob Wallace, and Assistant United States Attorney Kristin Harrington represented the United States.
Two New York Salesmen Sentenced to Prison for Fraudulently Selling Vending Machine BusinessesRead the Press Release
A federal judge sentenced two Long Island, New York, sales representatives to prison for fraudulently selling vending machine businesses, the Justice Department announced today. The defendants worked at Multivend, LLC, d/b/a/ Vendstar, based in Deer Park, New York. Before closing in July 2010, Vendstar made approximately $10 to $12 million in sales per year.
The sentences were imposed this week by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York.
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Scott M. Doumas, 44, of Setauket-East Setau, New York, was sentenced to serve four years in prison and ordered to pay $290,664 in restitution. Doumas worked as a sales representative and sales manager at Vendstar from 1999 to 2009. Doumas was found guilty of mail fraud and conspiracy after a six-week jury trial in 2015.
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Paul E. Raia, 65, of Brookhaven, New York, was sentenced to serve three years in prison and ordered to pay $339,354 in restitution. Raia was a salesman at Vendstar from 2006 to 2010. Raia was found guilty at trial of wire fraud and conspiracy.
The Vendstar investigation began in 2010 and resulted in criminal charges filed against 22 individuals in 2012 and 2013. All 22 of those defendants were convicted, and 18 of them have now been sentenced.
“The Department of Justice will work relentlessly to bring fraudsters to justice and to secure restitution for their victims,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The prison sentences imposed this week are the result of more than six years of hard work, and demonstrate the Department’s commitment to investigating, prosecuting, and punishing those who lie to steal other people’s money without remorse.”
Four additional defendants convicted of fraud in connection with Vendstar are awaiting sentencing.
Vendstar sold business opportunities for plastic bulk vending machines that, for 25 cents, dispensed loose candy and nuts. Vendstar advertised nationwide in newspapers and on the Internet. Vendstar promised to provide everything its customers would need to be successful, including the machines, candy, assistance in finding profitable locations, and ongoing customer support. The sales representatives – with the knowledge and approval of Vendstar’s managers – misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar. Vendstar referred customers to locating companies that did not find profitable locations and regularly changed their names to stay ahead of constant complaints. Vendstar sales representatives also falsely claimed to operate their own profitable vending routes, according to evidence introduced during the trial.
Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and Alan Phelps of the Civil Division’s Consumer Protection Branch. During the last 10 years, approximately 170 individuals have been convicted of fraudulently selling business opportunities in cases prosecuted by the Consumer Protection Branch.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
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Sterling Man Sentenced for Smuggling Weapons to BoliviaRead the Press Release
ALEXANDRIA, Va. – Joan Manuel Ramirez Lema, 41, of Sterling, was sentenced today to 20 months in prison for charges related to smuggling guns from the United States to Bolivia.
Ramirez Lema pleaded guilty on Sept. 22. According to court documents, from Jan. 2010 to Aug. 2015, Ramirez Lema smuggled 115 firearms from the United States to Bolivia. Ramirez Lema, a U.S. citizen, shipped used vehicles with multiple firearms hidden in door panels. In a statement to federal agents, Ramirez Lema said he shipped merchandise and cars to Bolivia via freight forwarding companies in Baltimore, Maryland and Newark, New Jersey. He stated that he usually purchased between two and three guns a month and bought most of the guns in Leesburg and Sterling.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Ronald L. Walutes, Jr. prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-206.
St. Francis Man and Rosebud Woman Charged with KidnappingRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man and a Rosebud, South Dakota, woman have been indicted by a federal grand jury for Kidnapping.
Benjamin Young, age 35, and Stefanie Long, age 27, were indicted on December 13, 2016. Both have appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about September 10, 2016, Young and Long kidnapped and held a woman near St. Francis, for the purpose of assaulting her.
The charge is merely an accusation and Young and Long are 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.
Long was released on bond, and Young was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for March 7, 2017.
Seven Time Drug Felon sentenced to 21 Years in Federal Prison for Illegally Possessing a FirearmRead the Press Release
ATLANTA - Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, has been sentenced to 21 years and 10 months’ imprisonment for possessing a firearm after having been convicted of six prior drug felony offenses. Because of his extensive prior criminal record, Jackson was sentenced as an Armed Career Criminal under federal law.
“Jackson reached for a firearm when stopped for routine traffic violation, and fortunately APD officers quickly subdued him and resolved the situation without injury to anyone involved,” said U.S. Attorney John Horn. “Unlawfully possessed weapons are a serious threat to the safety and security of our communities, especially in the hands of dangerous criminals.”
“This sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
“For Atlanta to be a safe city, we must continue to get repeat offenders off our streets,” said Atlanta Police Chief Erika Shields. “A routine traffic stop was the key to holding Mr. Jackson accountable for his various crimes. Our relationships with our law enforcement partners allow us to remove not only weapons but serious criminals from the City of Atlanta.”
According to U.S. Attorney Horn, the charges and other information presented in court: On August 22, 2014, Jackson was traveling through the Boulevard Corridor in Atlanta’s Old Fourth Ward neighborhood. Atlanta police officers patrolling the area stopped Jackson’s vehicle for a traffic violation. While approaching the vehicle, an officer noticed Jackson reaching under the driver’s seat. Police then ordered Jackson to stop reaching and open the driver’s window so that an officer could speak with Jackson. After Jackson refused, officers removed Jackson from his vehicle and seized a firearm from underneath the driver’s seat where Jackson had been reaching. Heroin, crack cocaine, and methamphetamine also were discovered in a bag concealed within the console.
Law enforcement later questioned Jackson who admitted that he sold drugs, notwithstanding his six previous felony drug convictions. Jackson also admitted that he had been reaching under the seat for the firearm because he did not want to return to prison, suggesting to the officers that Jackson would have resorted to violence to escape the law. Later investigation revealed that during a traffic stop earlier that summer Jackson had dragged another Atlanta police officer down the road when that officer’s arm became trapped in Jackson’s vehicle as Jackson fled the traffic stop.
Because five of Jackson’s drug convictions constituted “serious drug offenses” under federal law, Jackson qualified as an Armed Career Criminal subject to an enhanced sentence.
Quinton Jackson, a/k/a Quinton Smith, a/k/a Jaquavious Dixon, 36, of Atlanta, Georgia, was sentenced to 21 years, 10 months in prison to be followed by five years of supervised release. Jackson had been found guilty by a jury on July 13, 2016.
This case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Atlanta Police Department.
Assistant United States Attorney Ryan M Christian prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Seattle Man Sentenced for Threatening Congressman over Democratic Primary ElectionRead the Press Release
A 28-year-old Seattle man was sentenced to two months in prison and three years of supervised release including six months of home confinement and 240 hours of community service for threatening former Congressman Jim McDermott, announced U.S. Attorney Annette L. Hayes. JASPER KILMER HILLMAN BELL made multiple phone calls to the staff of Congressman Jim McDermott in mid-April 2016, and in one call threatened to cut out the congressman’s tongue. Later he went to the Congressman’s Seattle office demanding to be let in. BELL expressed outrage over how delegates were being allocated between the two Democratic candidates for President and the role of Congressman McDermott as a ‘Super Delegate.’ U.S. District Judge Robert S. Lasnik said BELL’s actions were “Just so wrong on so many levels… This was somebody who knew better… The reaction (of law enforcement) was proportionate to the threat.”
According to records in the case, in mid-April 2016, protestors went to Congressman McDermott’s office unhappy about his support for a particular Democratic presidential candidate as a ‘Super Delegate.’ BELL had written to the Congressman three times about the Super Delegate controversy, and had called the office on multiple occasions. On April 22, 2016, BELL called the Congressman’s office in Seattle seventeen times, and his Washington DC office an additional six times in one fifty-minute period. In the calls BELL expressed his outrage that protestors had been arrested at the Congressman’s office. Speaking with staffers BELL demanded to know the Congressman’s home address and said he would “track him down and cut his (expletive) tongue out.” BELL told one staffer he would find Congressman McDermott’s home address and “…he would not be safe.” Following the angry phone calls BELL went to the Congressman’s office and pounded on the locked exterior doors demanding to be admitted to the offices. Seattle Police arrested BELL later that evening.
Telling BELL that Congressman McDermott deserved BELL’s “admiration and respect,” Judge Lasnik ordered BELL to do 240 hours of community service working with AIDS patients and the poor – two groups Congressman McDermott worked to assist during his career. Judge Lasnik then ordered BELL to research and produce two reports for the court – one on McDermott’s long career and another on Jack Hammann’s book ‘On American Soil.’ The book investigates how African-American soldiers were wrongly convicted of manslaughter at what was then Fort Lawton in Seattle. Congressman McDermott was instrumental in getting the Army to reopen the investigation, reverse the wrongful convictions and restore the honorable service record of the soldiers. Judge Lasnik said he plans to schedule a hearing after receiving the reports to ensure BELL has used his time on supervision as a learning experience.
The case was investigated by the Seattle Police Department, U.S. Capitol Police and the FBI. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
San Antonio Man Sentenced to Federal Prison for Embezzling from InvestorsRead the Press Release
In San Antonio this afternoon, 28-year-old William Brandon Cate was sentenced to 51 months in federal prison for defrauded approximately 15 investors out of more than $280,000 announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that Cate pay restitution totaling $253,869.84 and be placed on supervised release for a period of three years after completing his prison term.
On September 29, 2016, Cate pleaded guilty to one count of wire fraud. By pleading guilty, Cate admitted that in January 2012, he and others created and managed CT Trading, LLC. Through a series of wire transfers in 2013 and 2014, Cate embezzled investors’ funds to pay for personal expenses. While managing the investments, Cate also experienced substantial trading losses. During the scheme, Cate created fraudulent account summaries for investors which showed inflated revenue.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the Texas Department of Public Safety. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
San Antonio Man Sentenced to Federal Prison for Aiming Laser Pointer at Local News HelicopterRead the Press Release
In San Antonio this afternoon, a federal judge sentenced 25-year-old Christopher B. Evans to eight months in federal prison followed by three years of supervised release for pointing a laser in the flight path of a helicopter announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher B. Combs, San Antonio Division.
Senior United States District Judge David A. Ezra also ordered that Evans surrender to federal authorities on or before February 27, 2017, to begin serving his prison term.
On September 13, 2016, Evans pleaded guilty to one count of aiming a laser pointer at an aircraft in flight. By pleading guilty, Evans admitted that on October 27, 2015, he aimed the beam of a laser pointer at a local television news helicopter as it was flying north of the San Antonio International Airport.
According to the FBI, in 2015, San Antonio ranked among the top 15 cities in the nation for laser strikes, with almost 100 reported. Laser strikes can blind pilots of airborne aircraft, jeopardizing the lives of persons aboard.
If you have information about a lasing incident, contact the San Antonio FBI at 210-225-6741. If you see someone pointing a laser at an aircraft, call the nearest local law enforcement agency immediately by dialing 911. Tips can also be submitted online at https://tips.fbi.gov.
This investigation was conducted by agents with the Federal Bureau of Investigation together with the San Antonio Police Department. Assistant United States Attorney Michael R. Hardy prosecuted this case on behalf of the Government.
Sacramento Man Sentenced to over 7 Years in Prison for Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to over seven years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, between April 24, 2014, and April 27, 2014, Cabrera used the internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Sacramento Man Sentenced to over 7 YearsRead the Press Release
SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to over 7 years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.
According to court documents, on or about April 24, 2014, and continuing through on or about April 27, 2014, Cabrera used the Internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Rosanne Rust prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
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Rose Hill Man Pleads Guilty to Federal Identity Theft ChargeRead the Press Release
WICHITA, KAN. B A Rose Hill man pleaded guilty Friday to a federal identity theft charge, U.S. Attorney Tom Beall said.
Justin Alan Vanley, Rose Hill, Kan., pleaded guilty to one count of aggravated identity theft. In his plea, he admitted a co-defendant gave him a U.S. Postal Service roster with personal information for two postal service employees. Vanley used the identity of one of the postal workers to apply for a Chase Marriott credit card with a $32,000 credit limit. He waited for the card to arrive in the mail and intercepted the card before it reached the victim.
Vanley was one of 13 people charged in an indictment returned in May alleging they were part of a $3.5 million identity theft scheme.
Sentencing is set for March 24. Vanley faces a penalty of two years in federal prison and a fine up to $250,000.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Assistant U.S. Attorney Alan Metzger for their work on the case.
Owner of Utah-Based Pharmaceutical Distributer Pleads Guilty to $100 Million Health Care Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RANDY CROWELL, a/k/a “Roger,” pled guilty today before United States District Judge Edgardo Ramos to fraudulently distributing more than $100 million worth of prescription drugs obtained on a nationwide black market. CROWELL used a Utah-based wholesale distribution company to sell illicitly procured drugs to pharmacies, which in turn dispensed them to unsuspecting customers. As part of his guilty plea, CROWELL agreed to forfeit more than $13 million in personal profits from the scheme.
Manhattan U.S. Attorney Preet Bharara said: “Randy Crowell perverted for profit a health care system designed to get safe and effective medications to patients who need them. He exposed people with life-threatening illnesses to medicines they had no idea had been diverted from the normal stream of commerce, all the while defrauding healthcare companies and government benefit programs like Medicaid. Crowell has now pled guilty to a federal crime and has agreed to forfeit more than $13 million he made from his criminal scheme.”
According to the allegations contained in the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From early 2010 until at least July 2012, CROWELL, who was the owner and operator of a licensed wholesale distributor of prescription medications based in St. George, Utah (“Wholesaler-1”), participated in a sophisticated scheme to defraud health insurance companies and government programs such as Medicaid out of hundreds of millions of dollars by trafficking prescriptions through a nationwide black market. CROWELL, through Wholesaler-1, purchased more than $100 million worth of prescription medications from this black market at a fraction of the legitimate prices for these drugs, before selling the same as new, legitimate bottles of medication to pharmacies all over the country.
To maximize their profits, CROWELL and his co-conspirators focused on some of the most expensive medications on the market, including those used to treat HIV/AIDS. The profitable scheme was potentially dangerous to the tens of thousands of patients ultimately receiving and taking these prescription drugs. As detailed below, many of the bottles purchased through the underground market and then distributed as safe, legitimate medications by CROWELL and Wholesaler-1 had in fact been previously dispensed to others, including individuals based in the Southern District of New York. To conceal the fact that they had been previously dispensed, the bottles were typically “cleaned” with hazardous chemicals such as lighter fluid before being transported and stored in conditions that were frequently insanitary and insufficient to ensure the safety and efficacy of the medication.
THE SCHEME TO DEFRAUD
The fraudulent scheme charged in the Indictment operated by distorting the legitimate flow of medications from manufacturer to pharmacy. Rather than purchasing medications from manufacturers or legitimate authorized distributors at full price, scheme participants, including CROWELL, created and exploited an underground market for these same prescription drugs. Scheme participants targeted the cheapest possible source of supply for these drugs – Medicaid patients and other individuals who received these prescription drugs on a monthly basis for little or no cost, and who were then willing to sell their medicines rather than taking them as prescribed (the “Insurance Beneficiaries”).
Insurance Beneficiaries had prescriptions filled for medications each month at pharmacies across the country, including in Manhattan and the Bronx, and then sold their medications to low-level participants (“Collectors”) in the scheme who worked on street corners and bodegas and would pay cash – typically as little as $40 or $50 per bottle. Every major health care benefit program, including Medicaid, expressly prohibits a beneficiary from seeking care under such circumstances, and health care benefit programs would not have paid for the medications issued by pharmacies to the Insurance Beneficiaries had these health care benefit programs known that the Insurance Beneficiaries were selling their drugs to others, rather than taking them as prescribed.
Because the ultimate goal of the scheme was to resell these medications as new at full price, Collectors and other scheme participants used lighter fluid and other potentially hazardous chemicals to remove the patient labels affixed when the bottles were initially dispensed to the Insurance Beneficiaries. This process, referred to as “cleaning” the bottles, was dangerous, as these hazardous chemicals could infiltrate the bottles, rendering the medication unfit for human consumption.
Collectors then sold these second-hand drugs to higher-level scheme participants (“Aggregators”) who bought dozens, and sometimes hundreds, of bottles at a time from multiple collectors before selling them to higher-level scheme participants with direct access to legitimate distribution channels, including corrupt wholesale companies like Wholesaler-1. The corrupt wholesale companies, including Wholesaler-1, then resold the bottles as new, at full price, to pharmacies, including potentially the very same pharmacies that initially dispensed these medications. In so doing, and as described below, CROWELL and other corrupt wholesale companies intentionally misrepresented where these medications were coming from and, in particular, concealed the fact that these prescription drugs had been obtained from an illegal and illegitimate black market.
CROWELL AND WHOLESALER-1
Central to the scheme’s success was the participation of corrupt, licensed wholesale distributors willing to buy the “second-hand” medications at a fraction of their legitimate price and then resell them as new to pharmacies that would in turn dispense these medications to unsuspecting patients. CROWELL and Wholesaler-1 were among the largest of these corrupt wholesalers.
Between 2010, when Wholesaler-1 was created by CROWELL, and July 2012, Wholesaler-1 had no legitimate sources of supply. Instead, CROWELL caused Wholesaler-1 to purchase exclusively from illegitimate sources – including the so-called “Aggregators” – who sold to CROWELL at substantially reduced rates, sometimes as much as 50 percent less than the price of acquiring these medications from legitimate sources. Consistent with their illegitimate origins, inbound shipments of prescription drugs frequently arrived at Wholesaler-1 improperly packaged in unsealed, unsecure cardboard boxes. On some occasions, bottles of medication arrived at Wholesaler-1 with the initial patient labels still affixed to them. On other occasions, bottles arrived having already been opened, or containing what appeared to be the wrong medication. At the direction of CROWELL, employees of Wholesaler-1 then inventoried these bottles, attempted to remove any bottles that still had patient labels affixed to them or were otherwise visibly used or damaged, and then arranged for the medications to be shipped out to Wholesaler-1’s customers – i.e., pharmacies all over the country, including pharmacies in Manhattan and the Bronx.
To effectuate the scheme – and, in particular, to convince pharmacies to buy these medications, and health care benefit programs to pay for them, CROWELL and others made false and fraudulent representations about the origins of these medications. Specifically, CROWELL and others acting at his direction created false and fraudulent documents known as “pedigrees” for these medications, which purported to document the legitimate movement of these medications bought and sold by Wholesaler-1 from a manufacturer to the pharmacy. In truth, none of the medications purchased or distributed by Wholesaler-1 had come from legitimate sources of supply, and the pedigrees created by Wholesaler-1 and signed by CROWELL were intentionally fabricated so that the medications could be sold, as new, to pharmacies and so that health care benefit programs would be duped into paying for these illegitimate second-hand drugs.
In order to evade detection, CROWELL took additional steps to conceal the unlawful nature of his activities, including using the name “Roger,” frequently changing or “dropping” the phones he used to communicate with co-conspirators, and paying co-conspirators through front or “sham” companies.
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CROWELL pled guilty to one count of conspiracy to commit health care fraud, which carries a maximum term of 10 years in prison. As a part of the plea, CROWELL also consented to the forfeiture of more than $13 million in scheme proceeds, including the full contents of Wholesaler-1’s primary operating account. CROWELL will be sentenced by Judge Ramos on May 11, 2017, at 12:30.
Mr. Bharara praised the investigative work of the New York FBI’s Health Care Fraud Task Force, which comprises agents, officers, and investigators from the Federal Bureau of Investigation, the New York City Police Department, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management’s Inspector General, U.S. Food and Drug Administration, U.S. Health and Human Services Office of Inspector General, New York State Office of Medicaid Inspector General, New York Health and Hospitals Corporation Inspector General, and the National Insurance Crime Bureau.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorneys Edward B. Diskant and Matthew Podolsky are in charge of the prosecution.
Orangevale Man Sentenced to 15 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Theodore Allen Leleaux, 34, of Orangevale, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 15 years in prison for distribution of child pornography with a prior conviction relating to the sexual abuse of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in December 2013, agents in Maine and Wyoming investigating distribution of child pornography received unsolicited emails from Leleaux seeking to trade child pornography with accounts that the agents had taken over. On February 2014, a search warrant was executed at Leleaux’s residence. On his cellphone, agents found at least 5,000 images and 400 videos of child pornography. At the time he sent the emails, Leleaux had been convicted in the Superior Court of Contra Costa County of having unlawful sex with a minor who was more than three years younger than him.
“While the internet has positively transformed the lives of millions, some have chosen to use it as a tool to prey on innocent victims,” said Ryan L. Spradlin, Special Agent in Charge of HSI San Francisco. “This sentence reflects the seriousness of the crimes of the defendant who repeatedly disregarded the law while causing long-lasting damage to his young victims.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
North Carolina Man Pleads Guilty to Hacking Conspiracy That Targeted Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – Justin G. Liverman, 24, of Morehead City, North Carolina, pleaded guilty today for his role in a harassment scheme that targeted senior U.S. government officials. Liverman’s plea admits guilt to a conspiracy to commit unauthorized computer intrusions, identity theft, and telephone harassment.
According to the statement of facts filed with the plea agreement, beginning in November 2015, Liverman conspired to attempt to intimidate and harass U.S. officials and their families by gaining unauthorized access to victims’ online accounts, among other things. For example, Liverman publicly posted online documents and personal information unlawfully obtained from a victim’s personal account; sent threatening text messages to the same victim’s cellphone; and paid an unlawful “phonebombing” service to call the victim repeatedly with a threatening message. In November 2015, the conspiracy used that victim's government credentials to gain unlawful access to a confidential federal law enforcement database, where Liverman obtained information relating to dozens of law enforcement officers and uploaded this information to a public website.
Liverman faces a maximum penalty of five years in prison when sentenced on May 12. 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. Co-defendant Andrew Otto Boggs, also from North Carolina, is expected to enter a plea of guilty for his role in the conspiracy on January 10.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. The case is being prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Special Assistant U.S. Attorney Joseph V. Longobardo. The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the investigation.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-313.
New York Woman Sentenced to Prison for Two Armed Bank RobberiesRead the Press Release
SCRANTON -The United States Attorney=s Office for the Middle District of Pennsylvania announced that Dorian Whitehead, age 31, of Binghamton, New York, was sentenced on January 5, 2017, by United States District Court Judge James M. Munley, to 51 months’ imprisonment for aiding and abetting two armed bank robberies. Judge Munley also ordered Whitehead to pay $169,099 in restitution.
According to United States Attorney Bruce D. Brandler, Whitehead pleaded guilty on March 30, 2016, to aiding and abetting co-defendants Jule Futrell, age 44, of Endicott, New York, Jemel Laquan King, age 40, and Jeremy West, age 41, both of Binghamton, New York, in committing the following armed bank robberies:
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First National Community Bank (FNCB), Jenkins Township, Pennsylvania, on March 13, 2014; and
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NBT Bank, Keyser Avenue, Scranton, Pennsylvania, on November 26, 2014.
Whitehead aided and abetted West and Futrell in the commission of the FNCB robbery and Futrell and King in the commission of the NBT Bank robbery. Whitehead’s role in both bank robberies was the monitoring of police channels via a cell phone application while she remained in her home in New York. She maintained voice contact with Futrell, present inside of both banks, by using a second cell phone and an ear piece worn by Futrell during the commission of the robberies. Whitehead’s job was to alert codefendants of alarms or police notifications during the progress of the robberies to enable them to flee the scene.
The defendants stole approximately $57,469 in cash from FNCB, and approximately $111,630 in cash from NBT bank.
West was sentenced to serve 126 months’ imprisonment on charges of armed bank robbery, a pharmacy robbery, and use of a firearm in furtherance of a violent crime. West previously pleaded guilty to committing the armed bank robbery of FNCB and the April 18, 2014, armed robbery of the CVS Pharmacy located in Stroudsburg, Pennsylvania.
King was convicted for his crimes by a federal jury on April 8, 2016, and was sentenced on July 26, 2016, to 157 months’ imprisonment. Futrell pleaded guilty to conspiracy, armed bank robbery, robbery of a pharmacy, and use of a firearm in furtherance of a crime of violence and is scheduled to be sentenced on March 7, 2017.
The case was investigated by the Federal Bureau of Investigation - Scranton and Binghamton offices. Assistant United States Attorney Michelle Olshefski prosecuted the case.
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