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Thursday 5 January 2017
Two Maryland MS-13 Members Sentenced to Federal Prison for Shootings and Murders in Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus today sentenced Eric Antonio Mejia-Ramos, aka “Flaco,” age 22, of Hyattsville, Maryland, today to life in prison, for conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder. Mejia-Ramos was convicted by a federal jury on September 30, 2016.
Yesterday, on January 4, Judge Titus sentenced Luis Guzman-Ventura, a/k/a “Casper,” age 23, of Hyattsville to 30 years in prison, followed by five years of supervised release, on the same charge. Guzman-Ventura pleaded guilty on September 13, 2016, just before the first day of trial.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“This case illustrates the extreme danger and cruelty of the MS-13 gang,” said U.S. Attorney Rod J. Rosenstein. “Members murder young men and women just because they think the victims belong to rival gangs.”
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Guzman-Ventura’s plea agreement and evidence presented at Mejia-Ramos’ three-week trial, from at least 2009 through 2014, members and associates of MS-13, including Mejia-Ramos and Guzman-Ventura, planned and engaged in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. During that time, Mejia-Ramos was a member of the MS-13 Parkview Locotes Salvatrucha clique, and Guzman-Ventura was a member of the Weedons Clique of MS-13.
According to evidence presented at trial, on the night of August 28, 2012, Mejia-Ramos plotted with other gang members to kill Ingrid Martinez because they thought she belonged to a rival gang. Mejia-Ramos lured the victim to a park in Beltsville and shot her to death.
Guzman-Ventura admitted that on December 5, 2012, he was the front seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez. Guzman-Ventura admitted that he shot at three individuals believed to be rival gang members, killing Eliezer Reyes and wounding a second victim. Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, previously pleaded guilty to being the driver in the drive-by shooting and is detained pending sentencing, scheduled for January 9, 2017, at 10:00 a.m.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Two Maryland MS-13 Members Sentenced for Violent Racketeering Conspiracy Including MurderRead the Press Release
Two Hyattsville, Maryland, men were sentenced for conspiracy to participate in the racketeering enterprise activity of a violent gang known as La Mara Salvatrucha, or MS-13, including murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Eric Antonio Mejia-Ramos, aka Flaco, 22, was sentenced today to life in prison to be followed by five years of supervised release. Luis Guzman-Ventura, aka Casper, 22, was sentenced yesterday to 30 years in prison to be followed by five years of supervised release. U.S. District Judge Roger W. Titus of the District of Maryland imposed the sentences. Mejia-Ramos was convicted by a jury on Sept. 30, 2016, of one count of conspiracy to participate in a racketeering conspiracy and Guzman-Ventura pleaded guilty to the same charge on Sept. 13, 2016.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to Guzman-Ventura’s plea agreement and evidence presented at Mejia-Ramos’ trial, from at least 2009 through 2014, the defendants and other members and associates of MS-13 planned and engaged in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation. During that time, Mejia-Ramos was a member of the Parkview Locotes Salvatrucha clique and Guzman-Ventura was a member of the Weedons Clique of MS-13.
According to trial evidence presented against Mejia-Ramos, on the night of Aug. 28, 2012, Mejia-Ramos lured a woman he believed to be a rival gang member to a park in Beltsville, Maryland, then shot the woman to death.
In connection with his plea, Guzman-Ventura admitted that on Dec. 5, 2012, while he was the front-seat passenger in a vehicle being driven by another MS-13 member, Jose Rodriguez-Nunez, he shot at three individuals believed to be rival gang members, killing one and wounding a second victim. After the shooting, Rodriguez-Nunez and Guzman-Ventura fled the scene to avoid being identified. Rodriguez-Nunez, aka Killer, 27, of Hyattsville, previously pleaded guilty to being the driver in this drive-by shooting and is detained pending sentencing, scheduled for Jan. 9, 2017.
Fourteen of the 15 defendants charged in this investigation have been convicted for their roles in the racketeering conspiracy. The final defendant is a fugitive.
HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Assistant U.S. Attorneys William D. Moomau and Lindsay Eyler Kaplan of the District of Maryland and Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case.
Two Baltimore Heroin Distributors Each Sentenced to at Least 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced George Trent, age 28, and Kendrick Kelly, age 38, both of Baltimore, Maryland, to 12 years in prison and 10 years in prison, respectively, each followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Trent was sentenced on January 4, 2017 and Kelly was sentenced on January 3, 2017.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
According to their plea agreements, between April 2015 and April 2016 Trent and Kelly conspired with Courtney Barrett and others to process and distribute heroin. The conspirators met at an apartment on St. Paul Street in Baltimore to mix the heroin with cutting agent and place it in gel capsules for further redistribution in the Baltimore area. The conspirators used the St. Paul Street apartment to process heroin for several months, producing thousands of gel capsules of heroin each week.
Kelly and Trent subsequently used an apartment on Battery Avenue in Baltimore to process the heroin. On April 7, 2016, a search warrant was executed at the apartment, after both Trent and Kelly were seen entering and exiting the apartment that day. More than a kilogram of heroin was found hidden inside and just outside the apartment. Law enforcement also recovered items used in the processing of narcotics, including cutting agent, latex gloves, and a large number of empty gel capsules.
As part of their plea agreements, Trent and Kelly admitted that over the course of the conspiracy they distributed more than three kilograms of heroin.
Courtney Barrett, age 30, of Woodlawn, Maryland, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on January 18, 2017.
United States Attorney Rod J. Rosenstein praised the FBI, and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.
Three from Marion charged with theft of government propertyRead the Press Release
Three people from Marion were charged in federal court with stealing nearly $63,000 worth of government property, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Charged in the criminal information were Carol Brown, 58; Lisa Brown, 46, and Donald Brown, 61. They were each charged with one count of theft of government property.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Railroad Retirement Board – Office of Inspector General, in Philadelphia. case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Susanville Man Indicted on Narcotics and Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Courtney Dale Eames, 55, of Susanville, charging him with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of stolen firearms, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Susanville Police Officers executed search warrants at Eames’s address in September 2016. In the course of the search, the officers found a package of methamphetamine as well as 32 different firearms and several hundred rounds of ammunition.
This case is the product of an investigation by the FBI and the Susanville Police Department. Assistant U.S. Attorney Owen Roth is prosecuting the case.
If convicted, Eames faces a maximum statutory penalty of 40 years in prison on the methamphetamine charge and a substantial fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sunbury Man Sentenced to 180 Months for Distribution of Child PornographyRead the Press Release
COLUMBUS, Ohio – Mark W. Wolfe, 51, of Sunbury, Ohio, was sentenced in U.S. District Court to 180 months in prison, 20 years of supervised release and ordered to pay $12,000 in restitution for distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Westerville Police Chief Joseph Morbitzer announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, undercover investigators observed files containing child pornography being shared through an IP address belonging to Wolfe. During a search warrant executed on July 31, 2015 at Wolfe’s residence, investigators discovered a laptop containing approximately 486 videos and 203 images of child pornography.
The files were located in several folders on the computer under the user name “Mark.” Some of the videos showed children as young as eight to ten months old being sexually abused. Approximately 67 of the videos found on the Dell computer were live webcam sessions depicting children being repeatedly sexually assaulted, that WOLFE watched and recorded utilizing screen capture software.
Further forensic analysis of the computer revealed Skype chat messages between Wolfe and several other individuals. In these conversations, Wolfe distributed child pornography files, claimed to have previously engaged in sex acts with minors and stated that his favorite age is five to ten years old.
Wolfe was charged by indictment in September 2015 and pleaded guilty in March 2016.
U.S. Attorney Glassman commended the investigation by the FBI Columbus Child Exploitation Task Force, which includes officers from the Westerville Police Department, Reynoldsburg Police Department, Powell Police Department and Belmont County Sheriff’s Office, as well as Assistant U.S. Attorney Heather A. Hill, who is prosecuting the case.
Stockton Man Sentenced to 15 Years in Prison for Drugs, Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Richard J. Beall, 49, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to 15 years in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime, U.S. Attorney Phillip A. Talbert announced.
Beall pleaded guilty to the charges on September 29, 2016. According to the plea agreement, in February and March 2016, Beall engaged in methamphetamine transactions with an undercover agent and a confidential informant. During one transaction in Beall’s residence, he sat on a couch with a semi-automatic pistol on an end table near his left hand. Beall cannot legally possess firearms because he is a convicted felon.
“At ATF, our highest priority is reducing violent crime within our communities,” said ATF Special Agent in Charge Jill Snyder. “This case is an example of the work ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods.”
According to court documents, on March 29, 2016, Beall was seen driving a truck that had been reported stolen. When local patrol officers initiated a traffic stop, Beall drove off and led the officers on a chase through orchards and farmlands before abandoning the truck and climbing a cherry tree. The arresting officers got him down from the tree and found a loaded pistol in his left-rear pocket. Later that day, officers obtained and executed a search warrant at Beall’s residence and found a loaded AK-47 rifle with a high-capacity magazine and two additional handguns.
This case was a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the California Highway Patrol. Assistant U.S. Attorney Ross K. Naughton prosecuted the case.
St. Louis Man Sentenced to 25 Years for Drug-Related HomicideRead the Press Release
St. Louis, MO – Walter Wallace, Jr., was sentenced to 25 years in prison on the charge of possession of a firearm in furtherance of drug trafficking resulting in the December 18, 2010, murder of Michael Hayes. Mr. Hayes was found shot inside his residence on Alice Avenue in the City of St. Louis. Wallace was sentenced this afternoon by United States District Court Judge Henry E. Autrey. His co-defendant, Jerry Chambers, will be sentenced later this month.
In the fall of 2010, Wallace engaged in discussions with others about committing a robbery of Mr. Hayes. In furtherance of those discussions, Wallace and others conducted surveillance of Mr. Hayes’ residence, obtained information about the interior of Mr. Hayes’ residence and, on at least one occasion, unsuccessfully attempted to make entry into Mr. Hayes’ residence.
On December 18, 2010, Wallace and his co-defendant, Jerry Chambers, carried out the burglary of Mr. Hayes’ residence. Wallace and Chambers drove to the area of the residence and parked in an alley behind the residence. The two men went to the front door of Mr. Hayes’ residence believing that Mr. Hayes was not at home. Wallace was armed with a 9mm caliber firearm. Chambers possessed a crowbar. After a few minutes, Chambers forced entry into Mr. Hayes’ residence with the crowbar.
Wallace and Chambers entered the residence. Mr. Hayes was not present at that time. Among other things, Wallace entered Mr. Hayes’ bedroom to search for items to take. As Wallace searched, Mr. Hayes returned home and made entry into his bedroom from a separate door. When Mr. Hayes stepped inside, Wallace removed his firearm. Wallace shot Mr. Hayes once. Mr. Hayes was struck by the bullet and died from his injuries. Wallace’s firearm jammed after that first shot. No struggle occurred between Mr. Hayes and Wallace at any time. Wallace ran from and exited the residence after shooting Mr. Hayes. Wallace and Chambers, who had been in a separate part of the residence at the time of the shooting, drove away from the scene.
In the hours and day(s) following the murder of Mr. Hayes, Wallace discarded some of the clothing worn by him at the time of the murder, as well as the firearm used.
Wallace’s sentence comes in connection with the on-going coordinated effort to address the commission of homicides in the City of St. Louis between United States Attorney Richard Callahan’s office, the St. Louis Circuit Attorney’s Office, the St. Louis Metropolitan Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Squirrel Hill Restaurant, Owner Plead Guilty to Unfair Labor PracticesRead the Press Release
PITTSBURGH – The owner of Sun Penang, Inc., a Pittsburgh restaurant, pleaded guilty Tuesday in federal court to charges of falsifying, concealing, or covering up by trick, scheme, or device a material fact, and on behalf of the business ofwillfully violating the Fair Labor Standard Act, Acting United States Attorney Soo C. Song announced today.
Hsiao Yen Wu, a/k/a Sophia Wu, age 40, of Pittsburgh, Pa and Sun Penang, Inc., located at 5829 Forbes Avenue, Pittsburgh, PA 15217 pleaded guilty to three counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that after Sun Penang had agreed to pay back wage payments, Wu represented that Sun Penang had issued all back wage payments checks and provided faxed copies of these checks to the Department of Labor. However, Wu knew that the employees were not paid back wage payments because these employees were required either to deposit the checks into Wu's personal bank account or to work without pay until Sun Penang recouped the wages. Sun Penang failed to pay minimum wages and overtime pay to their employees from January 1, 2013 to December 31, 2013.
Judge Ambrose scheduled sentencing for April 25, 2017 at 10 a.m.
With respect to Wu, the law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. With respect to Sun Penang, the law provides for a maximum fine of $20,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Department of Labor, Office of Inspector General conducted the investigation that led to the prosecution of Wu and Sun Penang, Inc.
South Bend Man Sentenced to 528 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Lindani Mzembe, 32, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr. for kidnapping, making a ransom demand, discharging a firearm during a crime of violence and being felon in possession of a firearm.
Mzembe was sentenced to 528 months imprisonment and 1 year supervised release.
According to documents filed in this case, Mzembe and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual and demanded a ransom for that individual’s release. A firearm was discharged, hitting the victim, during the kidnapping. Two co-defendants, Ivan Brazier and Derek Fields were convicted in separate trials of kidnapping, extortion, being a felon in possession of a firearm, and use of a firearm in a crime of violence. Derek Fields is scheduled to be sentenced on February 22, 2017.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.
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Shawnee Woman Sentenced to Serve 14 Months in Prison for Covering up Manslaughter on Indian LandRead the Press Release
Oklahoma City, Oklahoma – Anne Marie Johnson, 38, of Shawnee, Oklahoma, was sentenced yesterday by United States District Court Judge Vicki Miles-LaGrange to serve 14 months in federal prison for misprision of a felony for her role in the manslaughter of Marshall Scott Dent committed on Indian land, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to court records and information from court proceedings, George Edmond Walker, 39, of Shawnee, and Marshall Scott Dent met on December 23, 2013. During an altercation between the two men, Walker killed Dent on Sac and Fox Nation land near Shawnee, Oklahoma. Dent was reported missing on December 24, 2013. Investigators later determined that Walker buried Dent’s body on Sac and Fox land, where Johnson lived, near Shawnee in an attempt to hide the crime. Later, Walker dug up the body and moved it to another parcel of Sac and Fox land near Meeker, Oklahoma, where he buried Dent’s body again. During the investigation, law enforcement obtained information on the location of the body, where it was later recovered by the FBI’s evidence response team.
On September 13, 2016, Johnson pled guilty to misprision of a felony because she had knowledge about the killing but failed to report it to law enforcement. Yesterday, Johnson was sentenced to serve 14 months in federal prison, to be followed by 12 months of supervised release.
On August 22, 2016, Walker pled guilty to voluntary manslaughter and unlawful removal of a dead body. Last month, Judge Miles-LaGrange sentenced Walker to serve 240 months in federal prison to be followed by three years of supervised release. That sentence was ordered to be served consecutive to a 40-year sentence Walker is currently serving for his conviction of assault and battery with a dangerous weapon in Pottawatomie County.
This case was investigated by the Sac and Fox Nation Police Department, Shawnee Police Department, Pottawatomie County Sheriff’s Office, Pottawatomie County District Attorney’s Office, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Arvo Q. Mikkanen, Ashley Altshuler, and Lori Hines.
Scio Woman Pleads Guilty in Meth ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elizabeth J. Schreiber, 37, of Scio, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, a mixture and substance containing methamphetamine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and late 2014, the defendant conspired to manufacture and distribute methamphetamine. Schreiber, in an effort to avoid restrictions on purchasing significant quantities of products containing pseudoephedrine—an integral ingredient in the methamphetamine manufacturing process, purchased only small quantities of such products at local pharmacies. The practice is referred to as “smurfing.”
A total of 12 people have been arrested as part of this conspiracy, Schreiber is the seventh defendant to be convicted.
The conviction is the culmination of an investigation on the part of: the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Division; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for April 6, 2017, before Judge Vilardo.Sandy Springs Podiatrist and Office Manager charged with Illegal Distribution of Fentanyl, Oxycodone, and Other DrugsRead the Press Release
ATLANTA – Dr. Arnita Avery-Kelly, a licensed podiatrist, and Brenda Lewis, Avery-Kelly’s office manager, have been arraigned on federal charges of illegal distribution of opioid pain killers and other drugs at clinic locations purporting to provide podiatric care in Sandy Springs, and Lithonia, Georgia. Dr. Avery-Kelly and Ms. Lewis were indicted by a federal grand jury on December 21, 2016.
“Dr. Avery-Kelly was trusted to provide appropriate medical care to her patients,” said U. S. Attorney John Horn. “Instead, with the assistance of Ms. Lewis, she allegedly prescribed addictive opioids without any legitimate medical need. Addiction to powerful prescription opioids unfortunately continues to take a daily toll on many members of our community.”
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division commented on the case, “It is sad commentary when persons in the medical community abuse their positions of trust to hide behind the veil of legitimacy to commit criminal acts. The reckless distribution of pharmaceuticals results in addiction and death. Many thanks to the men and women in law enforcement who made this case a success.”
“Health care fraud and the abuse of prescription medications are increasing threats to our local communities,” said Derrick L. Jackson, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS-OIG continues to focus resources on those who divert prescription medication for profit and abuse. Our criminal investigators will continue to work with our law enforcement partners to bring the responsible individuals to justice.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Dr. Arnita Avery-Kelly is a licensed podiatrist, which means she is permitted to evaluate and treat the foot and leg. A nearly three-year federal investigation began after the Georgia Drug & Narcotics Agency (GDNA) visited Dr. Avery-Kelly in November 2013, and February 2014, to discuss high volume, high dosage prescriptions she had written for opioids. The indictment alleges that despite GDNA’s warnings, Dr. Avery-Kelly, with the assistance of office manager, Brenda Lewis, continued to prescribe large volumes of controlled substances without a legitimate medical need and outside the scope of a podiatric practice.
For example, during a nine-month period between December 2014 through August 2015, Dr. Avery-Kelly allegedly prescribed over 116,500 oxycodone 30mg pills, 41,800 hydromorphone 8mg pills, and 400 fentanyl patches. In April 2016, agents with the DEA and HHS executed a federal search warrant at Dr. Avery-Kelly’s office in Sandy Springs. At that time, Dr. Avery-Kelly voluntarily surrendered her DEA registration that permitted her to prescribe controlled substances.
Dr. Arnita Avery-Kelly, 54, and Brenda Lewis, 55, both of Atlanta, Georgia, were arraigned before U.S. Magistrate Judges Russell G. Vineyard and Catherine M. Salinas, respectively.
Avery-Kelly and Ms. Lewis are both charged with conspiring to distribute controlled substances outside the usual course of professional medical practice and for no legitimate medical purpose from November 2013 to December 2015. The drugs allegedly supplied include oxycodone, hydromorphone, fentanyl, hydrocodone, phentermine, alprazolam, and promethazine with codeine. Avery-Kelly is also charged with two counts of maintaining a podiatry clinic – first in Lithonia and later in Sandy Springs – for the purpose of illegally distributing drugs. Finally, Avery-Kelly is charged with fifty-seven individual counts of illegal drug distribution for specific prescriptions written to three separate customers. Ms. Lewis is charged with aiding and abetting Avery-Kelly for eight of those prescriptions.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the DEA and HHS, with valuable assistance provided by the Georgia Drug & Narcotics Agency, Georgia State Patrol, and the Sandy Springs Police Department.
Assistant United States Attorneys Jennifer Whitfield and Michael Brown are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Sacramento Man Sentenced to over 7 Years in Prison for False Tax Return Claims and Identity Theft ChargesRead the Press Release
SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS for mail fraud, conspiracy to submit false claims, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. Windom and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.
“The false tax refund scheme perpetrated by Lejohn Windom and other co-conspirators victimized hundreds of taxpayers and stole over one million dollars from all American taxpayers,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “With the April 18 tax deadline approaching, it is important taxpayers know IRS-Criminal Investigation and our law enforcement partners are actively combating identity theft involving their personal information used to file false tax returns. The sentence imposed today by the court sets a clear example that tax fraud does not pay.”
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Co-defendants Tracy Hartway and Audrey Johnson have pleaded guilty and are scheduled for sentencing on January 12, 2017, and January 26, 2017 respectively. Co-defendant Lejohn Windon Jr. is scheduled for a status hearing on January 12, 2017. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Prior Felon from Carlsbad Sentenced to Federal Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Travis Hayslip, 34, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 30 months in prison followed by three years of supervised release for violating the federal firearms laws when he ignited the fire that destroyed the Quality Inn Hotel in Carlsbad on March 9, 2016. Hayslip also was ordered to pay $2.4 million in restitution to Choice Hotels for the damage he caused to the hotel.
Hayslip was arrested on March 31, 2016, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on a federal arson charge. According to the criminal complaint, on March 9, 2016, a fire was ignited and caused more than $2 million in damages to the Quality Inn, a hotel that was under construction at 4106 National Parks Highway in Carlsbad in Eddy County, N.M. The complaint alleged that Hayslip walked through a part of the hotel that was under construction and lit a piece of debris with a lighter. Hayslip subsequently was indicted on April 26, 2016, on the charge of maliciously damaging and destroying the hotel by means of a fire.
On June 29, 2016, Hayslip pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Hayslip admitted that on March 16, 2016, in Eddy County, he possessed a firearm despite his prior felony conviction for theft in Arizona. Hayslip also acknowledged that he was responsible for the arson that occurred on March 9, 2016, at Choice Hotels in Carlsbad, and was therefore liable for $2.4 million in damages caused by the fire.
Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case which was investigated by Special Agents from the Las Cruces office and the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and members of ATF’s National Response Team who worked jointly with the Carlsbad Fire Department, the Carlsbad Police Department, the Pecos Valley Drug Task Force, the Office of New Mexico Fire Marshal, the Office of the New Mexico State Fire Investigator, and Gilbert Police Department K9 Handler, to follow leads, investigate the fire scene, interview witnesses and suspects, and analyze available surveillance footage.
ATF’s National Response Team is composed of veteran special agents having post blast and fire origin-and-cause expertise; forensic chemists; explosives enforcement officers; fire protection engineers; accelerant detection canines; intelligence support; and audit support. The team also has technical, legal, and intelligence advisors and a fleet of fully equipped response vehicles strategically located throughout the United States to provide logistical support. The National Response Team, federal, state and local investigators work together to reconstruct the scene, identify the seat of the blast or origin of the fire, and determine the cause. In the case of bombings and arson fires, NRT members gather evidence to support criminal prosecutions.
Prior Felon from Artesia Pleads Guilty to Violating Federal Firearms and Drug Trafficking LawsRead the Press Release
ALBUQUERQUE – Ronald Troy Bettencourt, 55, of Artesia, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms and drug trafficking laws.
Bettencourt was arrested on Sept. 1, 2015, on an indictment charging him with being a felon in possession of firearms and ammunition on Jan. 23, 2014; distributing methamphetamine on Jan. 23, 2014; and being a felon in possession of explosives on March 18, 2014. According to the indictment, Bettencourt committed the crimes in Eddy County, N.M. At the time, Bettencourt was prohibited from possessing firearms, ammunition or explosives because he previously had been convicted of conspiracy to possess a controlled substance, embezzlement, and fraud.
During today’s proceedings, Bettencourt pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Bettencourt faces a statutory maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Maria Y. Armijo is prosecuting the case.
Prince George’s County Liquor Board Officials and Business Owners Charged in Federal Bribery ConspiracyRead the Press Release
Greenbelt, Maryland – Prince George’s County Liquor Board officials, David Dae Sok Son, age 40, of Bowie, Maryland, and Anuj Sud, age 39, of Hyattsville, Maryland, and Prince George’s County business owners, Young Jung Paig, age 62, of Beltsville, Maryland, and Shin Ja Lee, age 55, of Landover, Maryland, are charged by criminal complaints with a bribery conspiracy. The defendants allegedly conspired to engage in bribery in order to influence public officials in the performance of their official duties in Prince George’s County. Son, Paig, and Lee are also charged with a bribery conspiracy to influence the State of Maryland.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“The defendants allegedly paid cash bribes to state and local officials in Prince George’s County in return for favorable action concerning liquor licenses,” said U.S. Attorney Rod J. Rosenstein. “Our government is not supposed to work that way.”
“Public corruption is a betrayal of trust and erodes the very core of the government's purpose to serve the people,” said Special Agent Gordon B. Johnson of the FBI's Baltimore Division.
Son currently is Director of the Prince George’s County Board of License Commissioners (Liquor Board). Son previously was a Commissioner on the Liquor Board from 2005 through 2014. During the 2015 Maryland legislative session, Son served as a liaison for the Prince George’s County Senate delegation. He returned to the Liquor Board later in 2015 as its Director.
Sud is a current Liquor Board Commissioner and has been a licensed attorney in Maryland since 2005, with offices in College Park.
Paig is the owner of Central Avenue Restaurant & Liquor Store and the resident agent of Weeping Willow, Inc.; and Lee is the owner of Palmer Liquor Store and the resident agent of Multi-Bil, Inc. Both stores are located in Prince George’s County, Maryland.
Son, Paig, and Lee
The affidavit filed in support of the criminal complaint alleges that Son solicited and facilitated bribes, from lobbyists and business owners, including from Paig and Lee. The bribes ranged from $1,000 to $5,000. From 2012 to 2013, Son facilitated three bribe payments to an elected official, for assistance in moving the source’s business to Prince George’s County, and to obtain County grants controlled by the elected official.
Beginning in 2015, Son solicited and facilitated bribe payments from lobbyists and business owners who were interested in the “Sunday Sales Bill,” which established up to 100 Sunday liquor sales permits in Prince George’s County. The bribes were intended to influence public officials in the performance of their official duties. For example, in 2015, Son had asked the elected official to assist in passing the Sunday Sales bill by talking to one of his colleagues about the bill; both subsequently voted in favor of the bill. On April 22, 2015, after the passage of the bill, Son arranged a lunch with the elected official, with Paig and Lee. During the lunch, Son told the elected official to meet Paig in the men’s bathroom, saying that Paig is “…going to hook you up.” In the men’s bathroom, Paig handed the elected official an envelope containing a total of $4,000 cash. On October 19, 2015, Son received a $4,000 bribe payment from a lobbyist for his assistance in ensuring that the lobbyist’s clients received Sunday Sales licenses.
Lee and Paig subsequently talked to Son about getting beneficial legislation introduced related to the Sunday Sales bill and indicated that they would be willing to pay $50,000 to make that happen. Son spoke with a second elected official who agreed to introduce legislation. On November 10, 2015, Son arranged for Paig and Lee to meet with the second elected official so they could make a “down payment.” After the meeting, law enforcement observed Paig and the second elected official get into the elected official’s car, while Lee and Son waited in the parking lot. Shortly after Paig got out of the car, the elected official drove directly to a bank in the same shopping center. Bank surveillance video shows the elected official pulling a stack of cash out of his right pocket and handing it to the teller, then doing the same from his left pocket. Bank records show that the elected official deposited a total of $4,000.
Sud
According to the affidavit filed in support of Sud’s criminal complaint, in September 2015, Sud solicited bribes from a lobbyist in exchange for Sud’s assistance with liquor board matters. At a subsequent meeting, Sud and the lobbyist discussed Sud voting favorably in two upcoming hearings concerning the lobbyist’s clients, in exchange for money. The lobbyist advised that the hearings would take place on December 2 and December 15, 2015. At each of the hearings, Sud took favorable action on behalf of the lobbyist’s client. Following each hearing, the lobbyist met with Sud and gave Sud $1,000 cash for Sud’s assistance. Similarly, on November 30, 2016, Sud received a $1,000 bribe payment in exchange for taking favorable action on behalf of the lobbyist’s client.
If convicted, Son, Sud, Paig and Lee all face a maximum sentence of five years in prison for the conspiracy, and a maximum of ten years in prison for bribery. Initial appearances are scheduled before U.S. Magistrate Judge Charles B. Day in U.S. District Court in Greenbelt, 6500 Cherrywood Lane, for Son and Sud beginning at 1:30 p.m., and for Lee and Paig beginning at 3:15 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and James A. Crowell IV, who are prosecuting the case.
Philadelphia Man Pleads to Fraud Conspiracy Involving Tax and Other Financial CrimesRead the Press Release
Louis Lappen, Acting United States Attorney for the Eastern District of Pennsylvania, announced today that Zaki M. Bey, 38, of Philadelphia pleaded guilty to one count of conspiracy to commit loan fraud and bank fraud, one count of conspiracy to defraud the Internal Revenue Service, and one count of conspiracy to commit wire fraud.
to court documents, Bey conspired with others to prepare fraudulent mortgage applications to obtain thirteen properties located in the Germantown section of Philadelphia and in New Jersey. Bey and the co-conspirators also furnished fraudulent payroll account documents, paystubs and financial statements to defraud financial institutions and lenders. In 2007 and 2008, Bey was responsible in securing more than $2 million in residential loans on properties purchased in the names of straw buyers. With the assistance of others, Bey would receive a payout for purported construction expenses ranging from $17,864.26 to $60,000 at the closing of each settlement. Bey was not completing any construction on these properties. In total, Bey obtained total settlement proceeds for construction costs of $435,074.26.
filed false tax returns for 2007, 2008, 2009 and 2010 claiming false withholding payments and false Forms 1099-OID (“Original Issue Discount”) income for his company, Natural Home Builders. was successful in receiving a false tax refund from the IRS in the amount of $148,296 for tax year 2009. In 2012, after assessed a deficiency, BEY mailed checks to the Internal Revenue Service from a closed bank account in an attempt to repay the fraudulent tax refund. also assisted another individual in filing a falsely amended tax return with the IRS that included false withholding taxes and Form 1099-OID income.
Beginning in 2010 to 2013, Bey and others submitted fraudulent auto loan applications and furnished fraudulent payroll documents, paystubs and financial statements to automobile dealerships located in Philadelphia and New Jersey. Bey was able to obtain at least 7 automobiles purchased through straw buyers.
maximum penalty under federal law is 45 years of imprisonment, 5 years of supervised release, $1,500,000 fine and a $300 special assessment fee.
case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney James Pavlock.
Pain Clinic Owner Pleads Guilty to Conspiracy to Illegally Dispense Opiod MedicineRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH KNIGHT, age 67, of Jefferson, pled guilty today to conspiracy to dispense quantities of oxycodone and hydrocodone outside the scope of the medical practice.
According to court documents, the Drug Enforcement Administration conducted controlled purchases of opioid medicine from Axcess Medical Clinic, Inc., located in New Orleans.
KNIGHT faces a maximum sentence of 5 years imprisonment and a fine of up to $250,000. U.S. District Judge Nannette Jolivette Brown set sentencing for April 20, 2017. Additionally, a total of $39,999.44 was forfeited in this investigation.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration New Orleans Office and the Internal Revenue Service, Gulfport, Mississippi in investigating this matter. Assistant U.S. Attorneys John F. Murphy and Bill McSherry are in charge of the prosecution.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Orlando Man Charged with Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Leone Alfano La Cava (59, Orlando) with 17 counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count.
According to the indictment, La Cava orchestrated an international real estate investment scheme that defrauded at least 40 investors out of more than $4 million. He solicited individuals in Italy to purchase real estate in Orange County that he claimed would generate guaranteed rental income. He used falsified deeds and loan documents to convince investors that they were purchasing property owned by La Cava or one of his entities, Orlando Trust Investment Properties, Inc., or Golden Investment, Inc. In fact, those properties did not exist, were never owned by La Cava or one of his entities, or had already been sold to another investor. La Cava used portions of the funds sent by investors for his own personal use.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Roger Handberg and Nathan W. Hill.
Oklahoma City Mother and Son Plead Guilty to Defrauding Medicaid Out of Nearly $770,000Read the Press Release
Oklahoma City, Oklahoma – DEBORAH A. GRAY, 60, and KEITH B. GRAY, II, 26, both of Oklahoma City, each pled guilty yesterday to three counts of health care fraud in connection with submitting false claims to Medicaid for behavioral health counseling services, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma, and Scott Pruitt, Attorney General for the State of Oklahoma.
On July 6, 2016, Deborah Gray and Keith Gray were indicted on 151 counts of health care fraud. The Indictment alleged that from October 2011 through May 2014, Deborah Gray owned and operated a business called DAG Counseling Services, PLLC. DAG Counseling held itself out as providing behavioral health counseling services to Medicaid-eligible children. It is alleged that Keith Gray was employed by DAG Counseling. It was alleged that the Grays devised and executed three schemes to defraud Medicaid through DAG Counseling. First, it is alleged that the Grays submitted or caused to be submitted to Medicaid claims for "targeted case management services" for periods of time when the children were actually being transported between home or school and the DAG Counseling offices, in violation of Medicaid regulations. Second, it was alleged that the Grays submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that exceeded the billing maximum of 90 minutes per child per day, in violation of Medicaid regulations. Finally, it was alleged that the Grays submitted or caused to be submitted to Medicaid claims for one-on-one "psychosocial rehabilitation services" that (a) were not actually provided, or (b) were actually provided in groups of two or more children, or (c) were provided for less time than was billed to Medicaid.
Deborah Gray and Keith Gray each admitted to one count of executing each of the three schemes. As part of their plea, the Grays agreed to pay restitution to Medicaid in the amount of $769,578.38.
At sentencing, the Grays face up to 10 years in prison, three years of supervised release, and a $250,000 fine on each count. A sentencing date will be set by the court in approximately 90 days. Reference is made to the Indictment and other public filings for further information.
Medicaid is funded jointly by the federal government and the State of Oklahoma, and administered by the Oklahoma Health Care Authority. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation and the Oklahoma Attorney General’s Office Medicaid Fraud Control Unit. It is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Mexican National Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Massiel Segoviano-Fierro, 25, a Mexican national illegally residing in the United States, was sentenced today in federal court in Albuquerque, N.M., to 50 months in prison for his methamphetamine trafficking conviction. Segoviano-Fierro will be deported after he completes his prison sentence.
Segoviano-Fierro and his co-defendant Juan Carlos Nieblas-Ruelas, 28, also a Mexican national illegally residing in the United States, were arrested in Nov. 2015, and were charged by criminal complaint with conspiracy and possession of methamphetamine with intent to distribute on Nov. 23, 2015, in Bernalillo Country N.M. The two men were arrested after they attempted to sell approximately ten pounds of methamphetamine to an undercover law enforcement agent.
On Feb. 22, 2016, Segoviano-Fierro pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Segoviano-Fierro admitted that on Nov. 23, 2015, in Bernalillo County, he attempted to sell methamphetamine to an individual who unbeknownst to him was an undercover law enforcement agent. Segoviano-Fierro further admitted that he collaborated with Nieblas-Ruelas to obtain approximately ten pounds of methamphetamine to sell and distribute in Albuquerque.
On Jan. 22, 2016, Nieblas-Ruelas pled guilty to a similar felony information and admitted that on Nov. 23, 2015, he provided methamphetamine to Segoviano-Fierro knowing that Segoviano-Fierro intended to sell it to another person. Nieblas-Ruelas was sentenced on Nov. 1, 2016, to 72 months in prison and will be deported following his prison sentence.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Mexican National Sentenced to Federal Prison Term for Trafficking Methamphetamine on Navajo ReservationRead the Press Release
ALBUQUERQUE – Luis Rangel Arce, 45, a Mexican national unlawfully in the United States, was sentenced today in federal court in Albuquerque, N.M., to 87 months in prison for his methamphetamine trafficking conviction. Luis Rangel Arce will be deported after he completes his prison sentence.
Luis Rangel Arce and his co-defendants Miguel Rangel Arce, 36, and Rogelio Santiago Quiroa-Valdez also Mexican nationals, were amongst eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash, and a vehicle during the investigation.
Luis Rangel Arce, Miguel Rangel Arce, and Quiroa-Valdez were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016.
On Aug. 30, 2016, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy, and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer. At sentencing, Miguel Rangel Arce faces a statutory minimum penalty of ten years and a maximum of life in prison.
Quiroa-Valdez also pled guilty on Aug. 30, 2016, and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer. At sentencing Quiroa-Valdez faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
Miguel Rangel Arce and Quiroa-Valdez remain in custody pending sentencing hearings, which have yet to be scheduled. They will be deported after completing their prison sentences.
The other five defendants were charged with methamphetamine trafficking charges in four other indictments. One has pled guilty and was sentenced on Sept. 27, 2016. Three have entered guilty pleas and are awaiting sentencing. The other two defendants have entered not guilty pleas and are awaiting trial. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARIO FUENTES-VELASQUEZ, age 29, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, FUENTES-VELASQUEZ was previously removed from the United States on August 29, 2013. FUENTES-VELASQUEZ was later found in the Eastern District of Louisiana on September 7, 2016, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
FUENTES-VELASQUEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Court Eldon E. Fallon set sentencing for March 16, 2017.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Lynn Tax Preparer Sentenced for Tax and Identity FraudRead the Press Release
BOSTON – A Lynn tax preparer was sentenced today in U.S. District Court in Boston in connection with a scheme to file fraudulent tax returns and pocket the excess refunds she fabricated.
Claudia Carredano, 46, was sentenced by U.S. District Court Judge George A. O’Toole, Jr. to 30 months in prison, three years of supervised release and ordered to pay restitution of $320,760 and forfeiture. In March 2016, she pleaded guilty to one count of wire fraud and one count of identity theft.
Carredano co-owned Maya Multi Services, a tax return preparation business operating on the North Shore. From 2008 to 2011, Carredano devised and executed a scheme to defraud the Internal Revenue Service by filing false tax returns on behalf of her clients. To do this, Carredano filed dozens of false tax returns for her clients that included fraudulent dependents—real people who were not the dependents of her clients—intended to increase the tax refund amount, generally without her clients’ knowledge. Carredano then directed the inflated portion of the refunds to be deposited into her bank account. In order to conceal the scheme, Carredano gave her clients versions of their tax returns that did not reflect the fraudulent dependents and sought smaller refunds than the returns she actually filed with the IRS.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was investigated with the cooperation of the Massachusetts Department of Revenue. Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit prosecuted the case.
Lebanon Car Dealer Sentenced for Odometer Rollback Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., automobile dealer was sentenced in federal court today for a mail fraud scheme in which he sold dozens of vehicles with fraudulent titles that greatly underreported the actual mileage of the vehicles.
Kenneth W. Smith, 62, of Lebanon, was sentenced by U.S. District Judge M. Douglas Harpool to 18 months in federal prison without parole. The court also ordered Smith to pay a $50,000 fine.
Smith, who operated Cars Unlimited in Lebanon, pleaded guilty to mail fraud on June 21, 2016.
When Cars Unlimited bought used cars at auction, the titles would show the correct mileage. Smith admitted that, instead of filing those titles with the state of Missouri, he requested replacement titles that showed a lower mileage. Smith could then sell the vehicle at a higher price. When investigators executed a search warrant at the business, they found instrument clusters used to replace odometers in vehicles.
Smith obtained fraudulent replacement titles for dozens of vehicles that were sold by Cars Unlimited between February 2010 and Nov. 7, 2011. Smith (operating through Cars Unlimited) applied for and received 54 replacement titles from the state, each of which underreported the vehicle’s actual mileage. Smith resold these 54 vehicles at auto auctions using the fraudulent replacement titles. These 54 vehicles were sold for an aggregate total of approximately $346,450.
When Smith purchased vehicles (through Cars Unlimited) at auto auctions, the vehicle titles he received showed each vehicle's actual mileage. After purchasing a vehicle, Smith submitted an "Application for Missouri Title and License" seeking a replacement title for the vehicle. Although he sought a replacement title, he in fact possessed the original title for the vehicle. In each of those instances, Smith forged the signatures of the previous owner of the vehicle. The state of Missouri prepared a replacement title that was mailed to Smith at Cars Unlimited.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Missouri Department of Revenue, Compliance and Investigation Bureau.
Las Vegas Oxy Ring Leader Sentenced to 72 Months in PrisonRead the Press Release
COLUMBUS, Ohio – Sukita M Williams, 44, of Las Vegas and Hilliard, Ohio, was sentenced in U.S. District Court to 72 months in prison for her role in an Oxycodone ring between Las Vegas and Columbus.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Michael H. Watson.
Williams is one of six defendants to be sentenced in this case on charges of conspiracy to possess with intent to distribute Oxycodone and/or conspiracy to commit money laundering. They include:
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Danny R. Williams, 30, of Las Vegas, who was sentenced in July to 90 months in prison;
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Dontonyo Courtney, 22, of Columbus, who was sentenced in August to 33 months in prison;
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Alfred David James, Sr., 36, of Columbus, who was sentenced in September to 30 months in prison;
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Joquline D. Harris, 29, of Columbus, who was sentenced in September to five years of probation; and
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Rashod D. Todd, 29, of Columbus, who was sentenced in October to 70 months in prison.
Two defendants have yet to be sentenced in this case. Tiauna Castro, 28, of Las Vegas, pleaded guilty in September to conspiracy to commit money laundering and is scheduled to be sentenced on July 12, 2017.
Larissa Harris-Patterson, 46, of Las Vegas, pleaded guilty in November to charges of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Her sentencing is yet to be scheduled.
According to court documents, between 2012 and November 2015, Sukita Williams, Danny Williams and Rashod Todd conspired to import, possess and distribute Oxycodone from Las Vegas. Sukita and Danny Williams each personally went to physicians to obtain fraudulent prescriptions for Oxycodone and arranged for other members of the conspiracy to do the same. The trio also used middlemen to obtain Oxycodone. Once they obtained bulk amounts of Oxycodone, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
The three attempted to conceal their illicit proceeds by depositing money into others’ bank accounts. In addition, these cash deposits funded the purchase of airline tickets that enabled couriers to transport Oxycodone to Columbus and to transport bulk amounts of cash back to them in Las Vegas.
Joquline Harris conducted financial transactions to funnel the proceeds of the illegal distribution of Oxycodone through two separate Ohio bank accounts opened by Sukita Williams, to bank accounts owned by Sukita Williams in Las Vegas. Harris further used the money in these accounts and other illicit drug proceeds from Sukita Williams to purchase airline tickets for members of the drug ring and make payments on a vehicle used in the operation.
Tiauna Castro deposited proceeds from the illegal sale of Oxycodone to a bank account in Columbus that was held in the name of a front business. The account was actually controlled by someone Castro knew was trafficking illegally obtained pills from Las Vegas to Columbus.
Harris-Patterson went to physicians to obtain fraudulent prescriptions for Oxycodone and arranged for other members of the conspiracy to do the same. She also used middlemen to obtain Oxycodone. Once she obtained bulk amounts of the drug, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
“This is an important victory for the citizens of Columbus,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “These individuals not only fueled the drug problem in Central Ohio, but they supported addiction in several parts of the country. The harm inflicted by these drugs is matched only by the profit potential for those who sell them.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Deputy Criminal Chief Michael J. Hunter, who is representing the United States in these cases.
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Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Ernesto Marquez Muniz, 31, of Las Cruces, N.M., pled guilty today in federal court to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Muniz was arrested on Sept. 15, 2016, on a criminal complaint alleging methamphetamine trafficking and firearms charges. According to the complaint, on May 24, 2016, Muniz sold approximately seven grams of methamphetamine and a handgun and ammunition to an undercover law enforcement agent in Dona Ana County, N.M. At the time, Muniz was prohibited from possessing firearms or ammunition because of his prior felony conviction for distributing cocaine in the Western District of Texas in 2010.
During today’s proceedings, Muniz pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Muniz admitted that on May 24, 2016, he sold methamphetamine and a gun to undercover law enforcement agents in the parking lot of a motel in Las Cruces.
At sentencing, Muniz faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office.
KC Restaurant Owner Sentenced for $566,000 Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Mo., restaurant was sentenced in federal court today for filing a false tax return as part of a scheme to avoid paying more than $566,000 in corporate taxes.
Roger Geisler, 68, of Lenexa, Kan., was sentenced by U.S. District Judge Dean Whipple to two years in federal prison without parole. The court also ordered Geisler to pay $566,128 in restitution to the IRS.
Geisler has owned and operated two restaurants in Kansas City, Mo. – Domo Sushi bar and Grill in the Brookside area and Matsu Japanese Restaurant (from 1980 to 2010) in the Westport area.
On April 7, 2016, Geisler pleaded guilty to filing a false tax return. Geisler admitted that, for tax years 2007, 2008 and 2009, he signed and submitted corporate returns for his company, Lee’s Pacific Foods, that underreported his restaurants’ gross receipts. The total unreported income for those tax years totaled $2,297,013. As a result of Geisler’s omissions, the amount of tax due and owing totaled $402,860.
In addition to the 2007 to 2009 income taxes, Geisler admitted that he failed to report and pay over employment taxes from 2007 to 2010. A conservative calculation of employment tax due totals $163,268, bringing the total loss from the overall scheme to $566,128.
Geisler also admitted that he did not file individual tax returns for 2007 through 2010.
After Geisler was contacted by the IRS, his accountant asked him how he thought he would get away with not reporting business income and payroll taxes. Geisler responded “I thought I would be dead before they caught on.”
Geisler spent at least $156,988 in business funds on personal expenses, including a home in Lenexa and a 2004 Lexus SUV. Geisler admitted he has a large gambling problem and gambled extensively at area casinos. For example, he gambled $159,706 in 2007 (at Argosy and Isle of Capri.) In 2010, Geisler gambled $290,175 at the 7th Street Casino.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Iowa Home Health Company and Its President Agree to Pay $1,000,000 to Resolve Allegations They Sought Reimbursement for Inappropriate CostsRead the Press Release
Ultimate Nursing Services of Iowa, Inc., and its president, Steven Tucker Anderson, have agreed to pay $1,000,000 to settle allegations they violated the False Claims Act.
The allegations relate to cost reports submitted by Ultimate Nursing for the period beginning January 1, 2011, and ending June 30, 2013. During this period, the company received payment for services to Medicaid beneficiaries in part through the submission of cost reports reflecting the costs associated with the provision of services and patient care. The government alleged that Ultimate Nursing’s cost reports for this period improperly resulted in payment for non-reimbursable travel and entertainment expenses and for non-reimbursable costs associated with services provided to Ultimate Nursing by other entities owned by Anderson or a family member.
“We will continue to use every resource available to ensure that all Iowa health care providers play by the same rules and that government money intended to pay for health care for Medicaid or Medicare beneficiaries is spent only for its intended purpose,” said United States Attorney Kevin W. Techau. “We also recognize the cooperation we received from the company and its president from the onset of this investigation and appreciate their willingness to work with us to address the issues raised by the investigation.”
The investigation was conducted in conjunction with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Huntsville Man Sentenced to Three Years in Prison for Bank Fraud and Identity TheftRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Huntsville man to three years in prison and ordered him to forfeit $79,619 for his scheme to steal and counterfeit business checks in 2014, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
U.S. District Judge Sharon Lovelace Blackburn sentenced BERNARD EUGENE MCKINNEY II, 29, on five bank fraud and two aggravated identity theft charges. A federal jury convicted McKinney on the charges in August. He must report to prison Feb. 6.
According to the government’s sentencing memorandum, evidence at trial showed that McKinney’s scheme involved recruiting various friends and acquaintances to cash fraudulent checks around the Huntsville area. The scheme defrauded BBVA Compass Bank of $79,619 in a series of transactions over several days. “The actions of the Defendant were not a ‘one-time’ mistake, but a well-developed plan and scheme in which the Defendant had to make a conscience decision to act each time a fraudulent check was cashed. He involved five other people in the scheme,” the sentencing memorandum said.
Trial evidence showed that McKinney, with the help of his recruits, counterfeited legitimate business checks that had been stolen from the U.S. mail, changed the payee names to himself or others, and then cashed the checks at Compass Bank branches in north Alabama. McKinney also forged the signature of the person who signed the original checks, which he used to manufacture the counterfeits.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes prosecuted.
Haverhill Resident Pleads Guilty to Drug Conspiracy and Gun Conspiracy ChargesRead the Press Release
Concord, N.H. – United States Attorney Emily Gray Rice announced that Juan Rojas, 32, of Haverhill, Massachusetts, pleaded guilty today to (1) conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine and (2) conspiracy to possess a firearm in furtherance of a crime of violence. Rojas appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in court and statements in the plea proceeding, Rojas admitted that he and others participated in the distribution of cocaine and oxycodone pills in Massachusetts and New Hampshire. During a court-authorized wiretap investigation, law enforcement officers intercepted calls in which Rojas obtained quantities of oxycodone and cocaine, which he then supplied to others, including Franklyn and Mara Morillo. The Morillos then arranged to distribute the drugs to customers. Rojas was arrested on August 18, 2015, and approximately 110 grams of cocaine were recovered from a vehicle he was operating.
During the wiretap investigation, officers also intercepted calls indicating that Rojas and another individual (Oscar Rosario) were planning to rob a drug dealer. Intercepted calls showed that Rosario traveled from New Hampshire to Haverhill, Massachusetts, where he obtained a firearm from Rojas. A law enforcement officer later stopped Rosario and recovered the firearm before it could be used to commit the robbery.
A sentencing hearing has been scheduled for May 10, 2017.
Rojas is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possess with intent to distribute, controlled substances. The other defendants are: Mara Morillo, 41, of Haverhill, Massachusetts; Franklyn Morillo, 41, of Haverhill, Massachusetts; Jorge Medina, 25, of Haverhill, Massachusetts; Justin Bartimus, 35, formerly of Methuen, Massachusetts; and Michael Lally, 28, of Salem, New Hampshire. All of the other defendants have pleaded guilty and are awaiting sentencing.
Rojas and Rosario were charged in a separate indictment with conspiracy to possess a firearm in furtherance of a crime of violence. Rosario previously pleaded guilty and is awaiting sentencing.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department, the Methuen, Massachusetts Police Department, and the Massachusetts State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Harmony Couple Sentenced for Cocaine Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Eugene Moulton, 67, and Antoinette Perreault, 48, both of Harmony, Maine, were sentenced today in U.S. District Court by Judge Jon D. Levy for conspiring to distribute cocaine. Moulton was sentenced to three years in prison and three years of supervised release. Perreault was sentenced to 20 months in prison and three years of supervised release. Both pleaded guilty on July 20, 2016.
According to court records, the defendants participated for about three years in a conspiracy run by Roger Belanger and his daughter, Kelli Mujo, that existed between January 2002 and November 2014, to acquire cocaine in Rhode Island and distribute it in the Dexter area. The defendants acquired cocaine from Mujo and distributed it in the Harmony area. Moulton also traded cocaine for stolen property. On August 19, 2016, Belanger and Mujo were convicted following a jury trial and await sentencing.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office, the Piscataquis County Sheriff’s Office, and the Maine State Police.
Granite Bay Property Investor Sentenced to over 2 Years in Prison for Investment Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — John Stuart Hill, 33, of Granite Bay, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years and three months in prison and ordered to pay $1.4 million in restitution to eight victims for wire fraud and mail fraud in connection with a real estate investment scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 9, 2011, and April 2013, Hill, acting under the business name Granite Bay Investment Partners (GBIP), solicited and received money from investors who intended that their money would be used to purchase, rehabilitate, and resell residential properties in the Sacramento area. In reality, Hill used the money for his own personal expenses, made false accounting entries on statements he sent to his investors, and misrepresented the purchase and resale prices of the properties in question. In some cases, the properties that Hill alleged his investors to be rehabilitating had never been purchased by Hill or GBIP. In other cases, multiple investors were told that they were partners on the same property in order to increase the amount invested to far above the purchase and rehabilitation costs.
According to court documents, Hill received at least $1.9 million from investors, only $600,000 of which was ever returned, leaving at least $1.3 million unaccounted for. On September 29, 2016, Hill pleaded guilty to wire fraud and mail fraud.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris prosecuted the case.
Four More Conspirators Sentenced as Part of Methamphetamine TakedownRead the Press Release
Abingdon, VIRGINIA – Four more defendants who were part of a conspiracy that trafficked methamphetamine into and around Virginia and Kentucky were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced. To date, 14 of the 15 defendants charged with being part of the conspiracy have been convicted and sentenced to federal prison terms for the role in the criminal activity.
Julio Cesar Ortiz, 28, of Norcross, Ga., previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute 500 grams of methamphetamine. Today in District Court, Ortiz was sentenced to 148 months in federal prison.
Lloyd Steven Knuckles, 42, of Middlesboro, Kentucky, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine. Today in District Court, Knuckles was sentenced to 84 months in federal prison.
Ralph Marlow, 59, of Lafollette, Tenn., previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute methamphetamine and one count of possessing a firearm in furtherance of a drug trafficking crime. Today in District Court, Marlow was sentenced to 123 months in federal prison.
Robert Christopher Rainey, 62, of Sycamore, Ga., previously pled guilty to one of conspiring to possess with the intent to distribute and distribute 500 grams or more of methamphetamine. Today in District Court, Rainey was sentenced to 156 months in federal prison.
“This prosecution dismantled a major methamphetamine operation and made our community safer,” United States Attorney Fishwick said today. “I am thankful for the hard work our partners in law enforcement put in to making this righteous case.”
To date, 14 of the 15 individuals charged with being part of the conspiracy have been convicted and sentenced to federal prison time.
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesboro, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Four Individuals Charged with Importing Steroids from China and Selling them over the InternetRead the Press Release
BOSTON – Four individuals in three states were arrested yesterday in connection with a nation-wide internet steroid distribution business in which raw steroids imported from China were processed and prepared in Florida, and then ordered over the Internet by, and mailed to, customers across the nation. In a series of arrests and searches conducted early yesterday morning, more than 600,000 dosage units of raw steroids, a tableting machine, steroid packaging and shipping materials, approximately $20,000 in cash and several computers were seized. Pursuant to a federal seizure warrant, agents also seized the website ustraininggear.com.
The following defendants were arrested and charged in a criminal complaint in Massachusetts:
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Mark Lopilato, 53, of Sanger, Texas, was charged with distribution of steroids, a Schedule III controlled substance; conspiracy to distribute steroids, a Schedule III controlled substance; importation of a controlled substance; use of a communications facility in the commission of a narcotics offense; and dispensing a controlled substance by means of the internet;
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Rhonda Fulton, 50, of Palm Bay, Fla., was charged with distribution of steroids, a Schedule III controlled substance; conspiracy to distribute steroids, a schedule III controlled substance; use of a communications facility in the commission of a narcotics offense; and dispensing a controlled substance by means of the internet;
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Michael Fulton, 45, of 1208 Palm Bay, Fla., was charged with conspiracy to distribute steroids, a Schedule III controlled substance; importation of a controlled substance; and use of a communications facility in the commission of a narcotics offense;
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Michael Lopilato, 59, of Salem, N.H., was charged with conspiracy to distribute steroids, a Schedule III controlled substance; use of a communications facility in the commission of a narcotics offense; and dispensing a controlled substance by means of the internet.
According to the complaint, from January 2016 to September 2016, an undercover agent purchased steroids over the internet from the website ustraininggear.com, a website that advertises and sells numerous types of steroids. The website provided instructions on how to place orders and pay for steroids, and further provided an email address operated by Mark Lopilato to place orders.
According to court documents, customers ordered steroids from Mark Lopilato who forwarded the orders by email to Rhonda Fulton and Michael Fulton in Florida. Michael Fulton processed and prepared raw steroids according to the customers’ orders, and Rhonda Fulton packaged and mailed them. Mark Lopilato and the Fultons allegedly ordered the raw steroids from China over the internet, then paid for and received the raw steroids by mail. Mark Lopilato paid Rhonda and Michael Fulton for the preparation, packaging and mailing of the steroids to customers, and also paid Michael Lopilato, his brother, to maintain and operate the website.
The charges of conspiracy to distribute steroids, distribution of steroids, importation of a controlled substance, and dispensing controlled substances by means of the internet each provides for a sentence of no more than 10 years in prison, a lifetime of supervised release and a fine of $500,000. The charge of use of a communications facility in commission of a narcotics offense provides for a sentence of no greater than four years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Christopher F. Bator of Ortiz’s Narcotics and Money Laundering Unit is prosecuting the case.
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Founder of Fake Prison Charity sentenced for stealing Prisoner Identities, Claiming Millions of Dollars in false Tax RefundsRead the Press Release
ATLANTA - Qadir Shabazz, a/k/a Deangelo Moore, a/k/a Deangelo Muhammad, has been sentenced to a prison term of 23 years, one month for running a massive, multi-state fraud scheme in which he operated a fake prison charity that stole thousands of prisoners’ identities to apply for millions of dollars in fraudulent income tax refund dollars. Shabazz was found guilty of 33 felony counts following a jury trial in January 2016.
“Shabazz preyed upon prisoners that he promised to help, all in an effort to steal millions from the government,” said U. S. Attorney John Horn. “He thought he could go undetected by using the identities of prisoners, who would not notice tax irregularities, with no regard for the false hope he created for them through his bogus charity. Shabazz will now have an opportunity to better understand the situation of the prisoners he victimized.”
“Misusing his position of trust at Indigent Inmate, Qadir Shabazz stole the identities of unsuspecting prisoners and filed false tax returns in their names,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. Today, Mr. Shabazz is held accountable for his criminal actions.”
Paul D. Mezzanotte, Acting U.S. Postal Inspector in Charge of the Charlotte Division stated, “This is a great example of a law enforcement partnership that worked together to unravel a sophisticated Identity Theft scheme that stole prisoner’s identities for personal financial gain. The U.S. Postal Inspection Service will continue to be vigilant in disrupting criminal organizations who illegally utilize the nation’s mail system.”
“I commend all of the law enforcement personnel in Pennsylvania and around the country that helped to bring down this well-organized identity theft and tax fraud scam,” said Pennsylvania Department of Revenue Secretary Eileen McNulty. “Qadir Shabazz took advantage of prisoners through this multi-state conspiracy and he victimized all of us by stealing tax dollars.”
According to U.S. Attorney Horn, the charges and other information presented in court: In 2009, Qadir Shabazz started a fraudulent prison charity called Indigent Inmate. The supposed purpose of Indigent Inmate was to provide religious literature and financial assistance to prisoners serving time in state prisons around the country. Shabazz’s employees at Indigent Inmate mailed out thousands of applications for assistance to prisons around the country, and Indigent Inmate received thousands of completed applications back through the mail. Notably, the applications required the prisoners applying for assistance to provide their name, date of birth, and Social Security Number.
Various inmates testified at trial that they had sent their information to Indigent Inmate because they hoped they would get some type of assistance while they were incarcerated. One prisoner hoped Indigent Inmate would send him stamps so he could write letters to his parents while another hoped he would get religious materials. Once Shabazz was in possession of this identifying information from the prisoners, he and his co-conspirators filed thousands of fraudulent income tax returns in the names of those prisoners between 2010 and 2012. In total, the tax returns requested over $12,000,000 in fraudulent tax refunds.
Notably, the tax returns would list as the home address of the alleged person filing the tax return, addresses that Shabazz or one of his associates controlled in the Atlanta, Georgia, Chattanooga, Tennessee, or Pittsburgh, Pennsylvania areas. The tax refunds would typically be sent to one of these addresses in the form of prepaid debit cards or checks. For instance, from 2010 through 2012, 668 tax returns in the names of Indigent Inmate applicants were filed listing the home address as the same small house located in the Atlanta area.
Qadir Shabazz, a/k/a Deangelo Moore, a/k/a Deangelo Muhammad, 41, of Atlanta, Georgia, was sentenced by United States District Judge Timothy C. Batten Sr. to serve 23 years, one month in prison, followed by five years of supervised release. Shabazz was ordered to pay $1,680,299 in restitution to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation and United States Postal Inspection Service. The Office of the Attorney General for the Commonwealth of Pennsylvania and the Office of Pennsylvania Department of Revenue, Bureau of Criminal Tax Investigations uncovered this scheme and launched a separate state investigation.
Assistant United States Attorneys Thomas J. Krepp and Mary L. Webb are prosecuting 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.
Former Tribal Officials and Employees Charged with Embezzling $6 Million from Paskenta Band of Nomlaki IndiansRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 69-count indictment today against John A. Crosby, 53, of Redding; Ines S. Crosby, 73, of Orland; and Leslie A. Lohse, 62, of Glenn County, charging them with conspiracy to embezzle tribal funds, embezzlement of tribal funds, false statements to federal agents, and tax charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, John Crosby, Ines Crosby, and Leslie Lohse were officers and employees of the Paskenta Band of Nomlaki Indians in Tehama and Glenn Counties. The Tribe obtained substantial revenues from the operation of the Rolling Hills Casino located on tribal land. Between January 2009 and May 2014, the defendants, who had access to tribal funds, used that money for their own personal expenses. They sought to conceal the embezzlement, including creating a false line-of-credit document and remotely accessing the Tribe’s computers to destroy evidence.
According to the indictment, in June 2015 during the investigation, each defendant falsely stated to a federal agent that they had received a $5 million line of credit from the Tribe. Further, John Crosby and Leslie Lohse submitted tax returns that omitted the embezzled funds. For her part, Ines Crosby failed to file any tax returns. It is estimated that the defendants embezzled at least $6 million in tribal funds.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Todd A. Pickles and Matthew M. Yelovich are prosecuting the case.
If convicted, each of the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine on the charge of falsifying a document in a federal investigation. The maximum statutory penalty for each count of conspiracy, embezzling, and making a false statement to a government agent is five years in prison and a $250,000 fine. The maximum statutory penalty for filing a false tax return is three years in prison and a $25,000 fine, and one year in prison and a $25,000 fine for failure to file a tax return. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Torrington Resident Admits Role in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARIO PASCUAL AQUINO, 36, formerly of Torrington, pleaded guilty today in Hartford federal court to one count of theft of public money stemming from his role in a stolen identity tax refund fraud scheme.
According to court documents and statements made in court, AQUINO was involved in a conspiracy to fraudulently obtain U.S. Treasury tax refund checks made payable to individuals other than themselves, whose personal identifying information was stolen by co-conspirators. Typically, the individuals whose identities were stolen were citizens of Puerto Rico.
Between October 2011 and March 2013, AQUINO cashed approximately $650,000 worth of fraudulently-obtained tax refund checks at a check cashing store in Torrington. He also opened his own check cashing store in Hartford, Mega Money Transfers, and, in 2011 and 2012, proceeded to cash more than 300 fraudulently-obtained refund checks valued at a total of $750,926 through that store. Finally, Aquino sold six fraudulently-obtained refund checks valued at a total of $60,929 to an undercover agent. He also provided the undercover agent with a fraudulent Connecticut driver license in the name of an identity theft victim.
AQUINO is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 6, 2017, at which time he faces a maximum term of imprisonment of 10 years, a fine of up to approximately $2.9 million, and an order of restitution.
AQUINO, who most recently resided in Pasadena, Texas, has been detained since his arrest on May 31, 2016.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations, U.S. Postal Inspection Service, Waterbury Police Department, Hartford Police Department and Pasadena (Tex.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Former Springfield Business Owner Indicted for Alleged Medicaid Fraud SchemeRead the Press Release
SPRINGFIELD, Ill. – A Springfield man whose business supplied incontinence products to Medicaid recipients made his initial appearance in federal court today on charges that he defrauded Illinois’ Medicaid program of more than $500,000. Kevin W. Schaul, 51, of the 3500 block of Tamarak Dr., appeared before U.S. Magistrate Judge Tom Schanzle-Haskins. Trial has been scheduled for Mar. 7, 2017, before U.S. District Judge Sue E. Myerscough. Schaul was released on his own recognizance with conditions.
According to the indictment, Schaul owned and operated Childrite Medical Supply, Inc., from a residence at 201 N. Natchez Trace. Childrite, registered as a corporation in May 2009, supplied incontinence products such as diapers, pull-ups and underpads, to recipients of Medicaid. The corporation was involuntarily dissolved on or about Oct. 10, 2014.
The indictment alleges that from August 2009 through at least September 2013, Schaul repeatedly submitted and caused false claims to be submitted to the Illinois Department of Healthcare and Family Services for delivery of incontinence products. Childrite allegedly represented that the products had been delivered to Medicaid recipients, specifically to special-needs adults and children, when he knew no products were delivered or not delivered in the amount claimed. During the period of the alleged scheme, Childrite submitted more than 19,000 claims for 4,000,000 units, measured as one unit equivalent to one diaper, pull-up, underpad, etc., provided. As a result of the claims submitted, Medicaid paid Childrite approximately $2.3 million.
The indictment alleges that Schaul used the fraudulent Medicaid payments for his personal use, including for clothing, food, entertainment, fuel, travel, mortgage payments and payments to a family member. The indictment estimates the amount of loss to the Medicaid program as more than $500,000.
If convicted, the maximum statutory penalty for each count of health care fraud (five counts) is up to 10 years in prison and fines of up to $250,000.
The charges are the result of investigation by the Illinois State Police Medicaid Fraud Control Bureau and the U.S. Department of Health and Human Services, Office of Inspector General. The Illinois Department of Healthcare and Family Services, Office of Inspector General provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Selmer Police Department Lieutenant Sentenced for Accessing Child PornographyRead the Press Release
Jackson, TN – A former Selmer Police Department lieutenant has been sentenced to 30 months in federal prison for accessing child pornography on a hidden website. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Tony O. Miller, 36, of Finger, Tennessee, was a member of a website dedicated to sharing child pornography. Miller used special technology to access it regularly between early January and March 2015. The website could not be found using traditional search engines, like Google or Bing; members had to use special technology designed to conceal their identity in order to access it. Images of minor children engaging in sexual activity with adults were featured on the website. Some of the minors were under 12 years of age.
An undercover investigation conducted by the Federal Bureau of Investigation (FBI) identified users of a website set up for the purposes of sharing child pornography. Visitors to the website could view, download, and comment on other users' material, as well as upload their own. Miller was identified as one of the website’s users.
At the time of the aforementioned conduct, Miller was a lieutenant with the Selmer Police Department and studying to become a lawyer.
Miller admitted that he used the Internet and work-issued digital devices to access the website and view child pornography. He also admitted to using technology to try to hide his criminal activity.
In September 2016, Miller pleaded guilty before Chief U.S. District Judge J. Daniel Breen to one count of accessing with intent to view child pornography.
On Thursday, January 05, 2017, the Court heard testimony that Miller destroyed evidence during law enforcement’s investigation into the case. Judge Breen subsequently sentenced Miller to 30 months in federal prison.
This case was investigated by the FBI, with assistance from the FBI Major Case Coordination Unit in Linthicum, Maryland, and the Selmer Police Department.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who believes they may have information about related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Nurse Sentenced for ID Theft and Bank FraudRead the Press Release
RICHMOND, Va. – Capri M. Williams, 26, of Richmond, was sentenced today to three years in prison for identity theft and bank fraud crimes related to her stealing personal identifying information (PII) of hundreds of patients while employed at Commonwealth Primary Care (CPC), Inc., in Richmond. Williams was also sentenced to three years of supervised release and ordered to pay $34,906.15 in restitution to the victims of her crimes.
Williams pleaded guilty on June 24, 2016. According to the statement of facts filed with the plea agreement, in February 2015, Williams was employed as a licensed practical nurse by CPC, and had access to PII of patients at CPC. On Feb. 11, 2015, Williams accessed the PII of a patient who had received care at CPC. That same day, Williams used the patient’s name, date of birth, and Social Security number to apply for a credit card with Citibank. The application was approved and Williams eventually used the account to issue a balance transfer check made out to her for $4,500. After receiving the check, she deposited it into an account in her name.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Heather H. Mansfield and David V. Harbach, II prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-76.
Former Newspaper Publisher, Mortgage Broker, Title Agent and Others Charged in $10 Million Mortgage Fraud SchemeRead the Press Release
A former newspaper publisher, mortgage broker, title agent and other individuals are charged federally for their participation in a $10 million mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marco Laureti, 45, of Sunny Isles Beach, and Felix Mostelac, 44, of Miami Beach, are charged by Indictment with one count of conspiracy to commit wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349 and multiple counts of wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1343 (Case No. 16-60340-CR-ZLOCH). Michelle Cabrera, 48, of Miami Lakes, and Pedro Melian, 39, of Hialeah, are charged by criminal Information with one count of conspiracy to commit wire fraud affecting a financial institution (Case No. 16-60354-CR-DIMITROULEAS), If convicted, each defendant faces up to thirty years? imprisonment on each charged count.
According to court documents, defendants Laureti, Mostelac, Cabrera and Melian were involved with a $10 million mortgage fraud scheme. Laureti was a former newspaper publisher and owner of Laureti Publishing Company, in addition to being a licensed real estate sales associate and mortgage broker. Mostelac was Laureti’s associate and also the owner of several companies. Cabrera owned Florida Elite Title & Escrow in Davie and served as the title agent for these transactions. Melian also owned several companies.
According to court documents, the defendants engaged in a fraud scheme involving a condominium complex located at 45 Hendricks Isle in Fort Lauderdale. Defendants Laureti, Mostelac and Melian made false and fraudulent statements to a financial institution on loan applications and closing statements for the multi-million dollar condominiums. Once the loans were approved, defendant Cabrera, at Laureti’s direction, diverted the loan proceeds to fund the cash the borrower was expected to bring to the property’s closing, as well as diverting additional monies from the loan proceeds to various companies owned by Laureti and Mostelac. Furthermore, according to court documents, Laureti and Mostelac utilized the same scheme on the loan applications and closing statements to purchase their own multi-million dollar residential properties in Miami Beach, in addition to Laureti directing Cabrera to divert funds. The defendants’ scheme defrauded the financial institution of approximately $10 million.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An Indictment and a criminal Information merely contain allegations and every defendant is presumed innocent unless and until proven guilty 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.
Former Miami-Dade County Aviation Department Procurement Employee Charged in Bribery SchemeRead the Press Release
A former employee in the Procurement Section of the Miami-Dade County Aviation Department has been charged with accepting bribery payments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Glenwood Pla, 50, of Miami, a former procurement specialist for the Miami-Dade County Aviation Department, was charged in a criminal Information with bribery in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. If convicted, Pla faces a statutory maximum term of 5 years’ imprisonment and a fine up to $250,000. Pla had his initial appearance today before U.S. Magistrate Judge Barry L. Garber.
- set forth in the charging document, Pla was employed in the procurement section of the Aviation Department, creating and sending RFQs for lighting products requested by the Aviation Department to a qualified pool of vendors. Pla collected and tallied the bids and declared the lowest responsive bidder on the RFQs. A co-conspirator owned companies that provided, among other items, lighting products and services to the Aviation Department. The co-conspirator sought contracts for the installation of lighting products for his companies and sought contracts for the sale of lighting products on behalf of a second co-conspirator.
Beginning in or about 2011, Pla would notify one of the co-conspirators that RFQ’s were being issued for lighting products, and the second co-conspirator would then bid on the sale of the lighting products and was awarded a number of the contracts.
From in or about 2011 and continuing through in or about 2015, Pla accepted and received in excess of $35,000 in U.S. currency, which the defendant knew was paid to him with the intent to influence and reward Pla for utilizing his official position to favor his two co-conspirators.
Mr. Ferrer commended the investigative efforts of the FBI in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
- criminal Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty 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.
Former Miami-Dade County Aviation Department Division Director Sentenced to 7 Years Imprisonment for $5,000,000 Fraud and Kickback SchemeRead the Press Release
A former Division Director of the Miami-Dade County Aviation Department was sentenced to seven year’s imprisonment for his involvement in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
- The public has a right to expect that officials who oversee local government agencies are ethical, trustworthy, responsible, and represent the best interests of the community,” stated U.S. Attorney Wifredo Ferrer. “The United States Attorney’s Office for the Southern District of Florida and our law enforcement partners will continue to identify for prosecution those individuals who choose to betray the public’s trust and steal funds for their own illicit personal gain.”
“Corrupt officials are on notice – breach the public’s trust through stealing or accepting bribes in the course of their official duties and they will be vigorously investigated,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
Ivan Valdes, 46, of Miami, was sentenced to 7 year’s imprisonment, ordered to pay $5,247,539 in restitution, and must serve 3 years of supervised release after having previously pled guilty to a one-count criminal Information charging him with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666.
According to the court record, including a stipulated statement of facts, Valdes, a former Miami-Dade County Aviation Department Division Director was involved in a $5,000,000 fraud and kickback scheme. During in or about 2010, Valdes arranged with a co-conspirator to request that the Miami-Dade County Aviation Department purchase light fixtures for the Miami International Airport, in exchange for Valdes being paid a share of the proceeds. Between 2010 and 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of over 9,000 LED light fixtures which cost Miami-Dade County millions of dollars. Valdes was paid in cash by a co-conspirator, with whom he split approximately $2 million in fraudulent proceeds from the scheme. Valdes used some of the fraudulent proceeds to pay an employee in the procurement section of the Miami-Dade County Aviation Department, who assisted with the fraud.
On two occasions, Valdes instructed a co-conspirator to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. The co-conspirator bid and won the contracts. As a result, Valdes and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to the Miami-Dade County Aviation Department.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. This case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Ellsworth Man Sentenced to 78 Months for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Contact: Jody Mullis, Andrew McCormack
Assistant United States Attorneys
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey Barnard, 53, of Ellsworth, Maine, was sentenced yesterday in U.S. District Court by Judge John A. Woodcock, Jr. to 78 months in prison and three years of supervised release for being a felon in possession of a firearm and ammunition. The defendant pleaded guilty to the charge on June 7, 2016.According to court records, on May 31, 2014, Barnard barricaded himself in his camper with a .22-caliber semi-automatic rifle and ammunition beginning a 14-hour stand-off with police. During the stand-off, Barnard fired the weapon and proclaimed that “this is war.” Near the end of the standoff, Barnard emerged from his camper holding his rifle. Despite commands to put the rifle down, Barnard raised and pointed the rifle in the direction of the police officers. Barnard was prohibited from possessing the firearm and ammunition because he had been previously convicted of state felony offenses in California and Maine and of being a felon in possession of a firearm in U.S. District Court in Maine.
In imposing the sentence, Judge Woodcock said that “short of an actual injury or death from use of a firearm, this type of possession is the most serious and egregious imaginable.”
The investigation was conducted by the Maine State Police; the Ellsworth and Bangor Police Departments; the Maine Attorney General’s Office; the Maine State Police Crime Laboratory; and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
Duncanville Resident Sentenced to 55 Months in Federal Prison After Failing to Register as a Sex OffenderRead the Press Release
DALLAS — A man residing in Duncanville, Texas, who admitted failing to register as a sex offender, Colby Levell Styles, 36, was sentenced by U.S. District Judge Jane J. Boyle to 55 months in federal prison and 10 years of supervised release, a sentence higher than that recommended by the advisory U.S. Sentencing Guidelines, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in October 2005, Styles, a former resident of Georgia, was convicted of aggravated assault with intent to rape in the Superior Court of Fulton County, Georgia. Around February 2, 2016, and continuing to April 8, 2016, Styles traveled to Texas, where he knowingly failed to register as a sex offender and update a registration, as required by the Sex Offender Registration and Notification Act.
According to information presented at his sentencing hearing, since being released from his aggravated assault with intent to rape conviction, Styles had been convicted twice in Georgia for failing to register as a sex offender. Shortly after being released from custody, Styles moved from Georgia to Texas. At the time of his arrest in April, Styles was living in an apartment complex in Duncanville, next to an elementary school. Prior to his arrest, Styles had been questioned by local police in connection with an unrelated incident, at which time Styles gave the police a fake name to avoid being detected as an unregistered sex offender.
The case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jamie Hoxie was in charge of the prosecution.
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Drug Dealer Who Shot at Police Officers Sentenced to 17 YearsRead the Press Release
NEWPORT NEWS, Va. – Stefon I. Malone, 25, of Newport News, was sentenced today to 17 years in prison for various drug and gun crimes related to his involvement in drug trafficking conspiracy operating in Newport News.
Specifically, Malone was sentenced to 84 months for participating in a conspiracy to possess with intent to distribute and distribution of cocaine base, and 120 months for discharging a firearm in furtherance of a drug trafficking crime.
Malone pleaded guilty on June 21, 2016. According to court documents, Malone participated in a drug trafficking conspiracy in which he distributed cocaine base and provided security for a drug trafficking operation. On Feb. 28, 2013, Newport News Police officers executed a search warrant at a rooming house on Chestnut Avenue in Newport News where officers had received information about individuals with drugs and firearms. Malone fired his Glock 9mm pistol multiple times, striking one officer in his ballistic vest and striking a second police officer’s ballistic shield. Both officers survived without serious injury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Washington Field Division; and Richard Myers, Chief of Newport News Police Department, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Robert E. Bradenham II 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. 4:15-cr-65.