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Tuesday 13 December 2016
Vermont Physician Pays $76,000 to the United States to Resolve Allegations of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that physician Lynn E. Madsen, M.D., of Townshend, Vermont, has paid $76,000 to the United States to resolve allegations that she violated the federal False Claims Act, 31 U.S.C. § 3729, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which Dr. Madsen submitted the alleged false claims.
The United States contends that, from on or about November 1, 2013, to November 30, 2015, Dr. Madsen knowingly presented, or caused to be presented, hundreds of false claims for payment to the Medicare and Medicaid programs for trigger point injections (a pain management procedure) that were not reasonable and medically necessary and which did not comply with applicable Medicare and Medicaid laws, regulations, and program limitations. More specifically, the United States contends that the trigger point injections performed by Dr. Madsen consisted solely of saline or saline-based anthroposophic injectates that were devoid of any approved therapeutic agent and not considered reasonable and medically necessary under applicable Medicare and Medicaid laws, regulations, and program limitations.
The settlement announced today resolves the foregoing allegations without the need for litigation. Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Dr. Madsen, nor a concession by the United States that its claims were not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont and the Office of the Inspector General of the Department of Health and Human Services, with assistance from the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Ben Weathers-Lowin handled the matter on behalf of the United States. Dr. Madsen was represented by Ian P. Carleton of the law firm Sheehey, Furlong & Behm, P.C.
Two more admit guilt in Division of Highways pay-to-play schemeRead the Press Release
WHEELING, WEST VIRGINIA – Two more individuals pled guilty in federal court today for their role in the Division of Highways pay-to-play scheme, United States Attorney William J. Ihlenfeld, II, announced.
Mark Rudolph Whitt, 52, of Winfield, West Virginia, was the president and owner of Bayliss and Ramey, Inc., which was awarded the statewide signal maintenance contract in 2009. Whitt admitted today that he used the contract to funnel construction work to Dennis Corporation. He benefited financially for helping to conceal the illegal flow of funds from the Division of Highways to Dennis Corporation. He pled guilty to one count of “Wire Fraud Conspiracy.” He faces up to twenty years in prison and a fine of up to $250,000.
James Travis Miller, 40, of Hurricane, West Virginia, worked for the Division of Highways before leaving to work for Dennis Corporation. He admitted today that he delivered covert payments to Bruce Kenney in exchange for official actions that were done in favor of Dennis Corporation. He pled guilty to one count of “Conspiracy to Launder Monetary Instruments.” He faces up to twenty years in prison and a fine of up to $500,000.
Assistant U.S. Attorneys Jarod J. Douglas and Sarah W. Montoro prosecuted the case on behalf of the government. The case was investigated by the U.S. Attorney’s Public Corruption Unit, which includes the Federal Bureau of Investigation, the West Virginia Commission on Special Investigations, Internal Revenue Service-Criminal Investigation, and the West Virginia State Police.
Citizens with information regarding public corruption in their community are encouraged to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (855-982-3337), or to send an email to [email protected].
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Texas Sources of ICE Methamphetamine SentencedRead the Press Release
Abingdon, VIRGINIA – Two Texas sources of ICE methamphetamine—who supplied a local conspiracy with large quantities of the drug for multiple years—have been sentenced in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Today in District Court, Angel Soliz Jr., 37, Angel Soliz Sr., 57, both of Houston, Texas, both who previously pled guilty to a lesser-included count of conspiring to distribute and possess with the intent to distribute methamphetamine, were sentenced in District Court.
Soliz Jr. was sentenced today to 240 months in federal prison. Also today in District Court, Soliz Sr. was sentenced to 240 months in federal prison. As part of his previously entered guilty plea, Soliz Jr. agreed to forfeit more than $800,000 which was seized from his home in Texas.
According to evidence presented by prosecutors, the defendants admitted to being the source of much of the ICE methamphetamine that was sold in a multi-defendant conspiracy and which has resulted in more than a dozen federal convictions in U.S. District Court in Abingdon. Soliz Sr. and Soliz Jr. coordinated the supply of methamphetamine from Texas, while other co-defendants worked under them to help distribute the drugs. During the course of the conspiracy, various persons from Eastern Kentucky and Southwest Virginia would traveled to Texas to purchase methamphetamine and subsequently transport it back via interstate highways, avoiding law enforcement detection along the way. Once the ICE methamphetamine had arrived in Kentucky and Virginia, it would be distributed to others.
The investigation of the case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Drug Enforcement Administration; Virginia State Police; Kentucky State Police; Harris County, Texas Sherriff’s Office; and Russell County, Virginia Commonwealth’s Attorney’s Office. Special Assistant United States Attorney Kevin Jayne and Special Assistant United States Attorney and Russell County Commonwealth Attorney Brian Patton prosecuted the case for the United States.
Two More Albuquerque Residents Plead Guilty to Violating Federal Drug Trafficking and Firearms LawsRead the Press Release
ALBUQUERQUE – Two more Albuquerque residents pled guilty today in federal court to violating federal drug trafficking and firearms laws. Mike Jensen, 33, pled guilty to violating federal firearms laws, and Bernadette Aurora Tapia (Tapia), 48, pled guilty to a methamphetamine trafficking charge.
Jensen and Tapia were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Jensen was arrested in July 2016, on an indictment charging him with methamphetamine trafficking and firearms charges. The indictment was subsequently superseded on Aug. 9, 2016, to include a co-defendant, Michael Ryan Prost, 36. The superseding indictment charged Jensen and Prost with conspiring to distribute methamphetamine from May 9, 2016 through May 25, 2016, and distributing methamphetamine on May 9, 2016. Jensen was charged individually with possession of a stolen firearm and carrying a firearm in relation to a drug trafficking crime on May 9, 2016, and distributing methamphetamine on May 25, 2016. Today, Jensen pled guilty to carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Jensen admitted that on May 9, 2016, he possessed a firearm in relation to the distribution of more than 50 grams of methamphetamine.
Tapia and her co-defendants Gaspar Leal, 46, Brandon Candelaria, 21, and Candace Tapia, 21, were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County. Today, Tapia pled guilty to conspiracy and admitted that on June 8, 2016, she agreed with others to distribute methamphetamine to another person.
At sentencing, Jensen faces a statutory minimum penalty of five years in federal prison. Tapia faces a statutory minimum penalty of five years and a maximum of 40 years in federal prison. Both remain in custody pending sentencing hearings which have yet to be scheduled.
To date, 19 of the 104 defendants charged as a result of the ATF investigation have entered guilty pleas. The remaining defendants, including Jensen’s and Tapia’s co-defendants, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
These cases were investigated by the Albuquerque offices of ATF. The case against Jensen and Prost is being prosecuted by Assistant U.S. Attorney Edward Han, and the case against Tapia, Leal, Candelaria and Candace Tapia is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.
Two Boston Residents Plead Guilty to Selling Weapons Stolen from U.S. Army Facility in WorcesterRead the Press Release
BOSTON – Two individuals pleaded guilty today in U.S. District Court in Worcester in connection with the sale of machineguns and handguns stolen from the U.S. Armey Reserve Center in Worcester.
Tyrone James, 29, and Ashlee Bigsbee, 27, of Dorchester, pleaded guilty to conspiracy to possess, store and sell stolen firearms; the possession and sale of stolen firearms; and lying to federal agents. Tyrone James also pleaded guilty to being a convicted felon in possession of firearms. U.S. District Court Judge Timothy S. Hillman scheduled James’s sentencing for March 16, 2017, and Bigsbee’s sentencing for March 15, 2017.
On the night of Nov. 14, 2015, co-defendant James Morales broke into a weapons vault inside the Lincoln Stoddard United States Army Reserve Center on Lake Avenue North in Worcester and stole six M-4 Carbines and ten M-11 handguns.
On Nov. 18, 2015, Morales was located and arrested in Long Island, N.Y. Inside Morales’ vehicle, agents found four of the stolen M-4 Carbines and two of the stolen M-11 handguns. A fifth M-4 Carbine and two handguns were later turned in to the New York City Police Department by a concerned citizen. Upon Morales’s arrest he told law enforcement officers that Bigsbee and her boyfriend, who was later identified as James, had assisted him in selling the weapons.
Prior to travelling to New York, on the morning following the robbery, Morales visited Bigsbee and James at their home in Dorchester and proposed that they assist him with selling a number of the weapons he had stolen the night before. Bigsbee and James agreed to do so.
Bigsbee and James then contacted numerous individuals via text message offering to sell the firearms for well below the market and street value. Bigsbee and James’s phones were later found to contain text messages evidencing these efforts along with photographs which depicted: the stolen weapons lying on the kitchen table of their Dorchester apartment; Bigsbee holding one of the stolen M-11 handguns; and two of the stolen M-11 handguns lying on their bed. Through their efforts, Bigsbee and James arranged for Morales to sell a number of the handguns, and conducted the sales in their apartment on Nov. 15, 2015. In exchange for their assistance with selling the stolen weapons, Morales gave James and Bigsbee one of the M-4 Carbines. On the night of Nov. 15, 2015, or soon after, Bigsbee and/or James put the weapon in a duffle bag and brought it to the home of an acquaintance on Kingsdale Street in Dorchester who agreed to store the duffle bag.
During an interview on Nov. 20, 2015, Bigsbee and James lied to federal agents concerning their knowledge of the sale of the firearms. Following her arrest on Nov. 27, 2015, Bigsbee arranged to contact the acquaintance from Kingsdale Street asking him to leave the duffle bag outside on the sidewalk for police. Bigsbee then directed agents to Kingsdale Street, where the final M-4 Carbine was recovered from a duffle bag on the sidewalk.
The M-4 Carbine is a military weapon capable of firing a three bullet “burst” for each single pull of the trigger, which makes them machine guns under federal law.
The charges of being a felon in possession, possession of a machinegun, and possession of stolen weapons provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000 on each count. The charges of conspiracy to possess stolen weapons and making false statements provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard McKeon, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Boston Police Commissioner William Evans; Suffolk County Sheriff Steven W. Tompkins; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
Tennessee Man Pleads Guilty to Federal Offense for Confrontation with Law Enforcement at U.S. CapitolRead the Press Release
WASHINGTON – Larry Russell Dawson, 67, of Antioch, Tenn., pled guilty today to a federal offense stemming from a confrontation with law enforcement while he was being screened on March 28, 2016, at the United States Capitol Visitor Center, announced U.S. Attorney Channing D. Phillips and Matthew R. Verderosa, Chief of the U.S. Capitol Police.
Dawson pled guilty in the U.S. District Court for the District of Columbia to a federal charge of assaulting, resisting, or impeding officers while using a deadly or dangerous weapon.
The charge carries a statutory maximum of 20 years in prison, and potential financial penalties. Under federal sentencing guidelines, the charge carries a likely range of eight to 14 months in prison and a fine of up to $40,000. The Honorable James E. Boasberg scheduled sentencing for February 24, 2017.
Dawson has been in custody since his arrest on the day of the incident.
According to plea documents, on Monday, March 28, 2016, at about 2:37 p.m., Dawson entered the north security screening facility at the visitor center. He placed several personal items in a bowl in preparation for going through a metal detector. He then walked through a metal detector, which indicated the presence of metal at his waist level. Dawson was instructed to pass back through the detector, and metal again was detected.
A Capitol Police officer then ushered Dawson through the metal detector. In response to the officer’s request, Dawson spread his arms. The officer then scanned Dawson with a hand-held metal detector, which indicated the presence of metal in the area of Dawson’s right waistband. Suddenly, Dawson reached into the area of his waist with his right hand, and removed what appeared to be a black handgun. Dawson also raised his left hand between himself and the officer. The officer grabbed Dawson’s left upper arm. As Dawson moved away from the officer and to Dawson’s right, the officer placed the hand-held metal detector on Dawson’s torso. Dawson seized the hand-held metal detector from the officer and quickly moved further into the visitor center. While moving, he threw the hand-held metal detector onto the floor.
A few moments later, Dawson turned around, held the gun in his right hand, and pointed it at the officer who had screened him. Other Capitol Police officers ordered Dawson to drop the weapon and put his hands in the air. Dawson ignored their verbal commands and advanced toward the officer who had screened him, continuing to point the weapon. One of the other Capitol Police officers then shot Dawson. The entry doors into the screening facility as well as the doors leading into the Capitol Visitor Center were locked to contain the threat. Dawson was apprehended, searched, rendered first aid, and transported to a hospital.
The Metropolitan Police Department (MPD) Mobile Crime units recovered Dawson’s gun, a Daisy spring-loaded BB gun. In color, shape, weight, and other outward appearances, the gun resembled a semi-automatic handgun. Under federal law, an imitation gun, when used in circumstances such as those described in the plea documents, qualifies as a dangerous weapon.
At today’s proceedings, Dawson also pled guilty to a second charge arising from another matter. On October 22, 2015, Dawson was arrested after allegedly having disrupted Congress. He was charged in that case in the Superior Court of the District of Columbia with assaulting, resisting or interfering with a police officer and disorderly and disruptive conduct on U.S. Capitol grounds. He was released in that case with a court order to return for a hearing on December 8, 2015. Dawson failed to appear for that hearing. He pled guilty today to failing to appear in court, a District of Columbia offense that is punishable by up to 180 days in jail and a potential fine. Judge Boasberg also will sentence him on this charge on February 24, 2017.
In announcing the plea, U.S. Attorney Phillips and Chief Verderosa commended the work of those who investigated the case from the U.S. Capitol Police. They also expressed appreciation for the assistance provided by the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Special Assistant U.S. Attorneys Jacqueline Barkett and Nathan Charles. Finally, they commended the work of Assistant U.S. Attorney David Mudd, who is prosecuting the case.
Tampa Resident Indicted for Involvement with Tricare Health Care Fraud SchemeRead the Press Release
Tampa resident indicted in the Southern District of Florida for his involvement in Tricare health care fraud scheme, money laundering, and the misbranding of drugs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Miami Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, made the announcement.
Monty Ray Grow, 45, of Tampa, is charged by Indictment with conspiracy to defraud the United States and to pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371; health care fraud, in violation of Title 18, United States Code, Section 1347; receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(1)(A); payment of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(B); money laundering, in violation of Title 18, United States Code, Section 1957; and causing the misbranding of drugs while held for sale, in violation of Title 21, United States Code, Sections 331(k) and 331(a)(1).
According to allegations in the indictment, between September 2014 and June 2015, Grow received approximately $20 million in kickbacks from a Broward County, Florida compounding pharmacy in exchange for recruiting and referring patients that were covered by the Tricare health care insurance program. The Tricare program is responsible for providing medical coverage for military personnel, military retirees and military dependents worldwide. The Indictment further alleges that Grow and others defrauded Tricare by paying telemedicine companies to provide compounded medication prescriptions to the recruited patients without conducting any physical examination of the patients as required by law, and that these invalid prescriptions were issued without regard to the patients’ medical necessity. The Indictment alleges Grow laundered cash proceeds of the fraud and kickback schemes through purchases of real estate, luxury vehicles and securities.
An Indictment is merely an accusation and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Ferrer commended the investigative efforts of DCIS, HHS-OIG, FDA-OCI and U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. This case is being prosecuted by Assistant United States Attorneys Kevin J. Larsen and Jon Juenger.
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.
Superseding Indictment Returned Charging Naturalized U.S. Citizen with Procuring Her Naturalization UnlawfullyRead the Press Release
A federal grand jury has returned a superseding indictment against Rasmieh Yousef Odeh, 69, of Chicago on charges of procuring her naturalization unlawfully by failing to disclose that she had been convicted of participating in a terrorist bombing, announced United States Attorney Barbara L. McQuade
McQuade was joined in the announcement by Steve Francis, Acting Special Agent in Charge of Immigration and Customs Enforcement, Homeland Security Investigations.
The superseding indictment alleges that in 2004, Odeh obtained her naturalization contrary to law, in violation of 18 U.S.C. § 1425(a). Odeh previously was indicted on the same charge, and in 2014 was convicted. Following a remand by the Sixth Circuit Court of Appeals, the United States District Court in Detroit last week granted Odeh a new trial. The retrial will proceed based on the new indictment.
The new indictment does not add any additional charges, but alleges additional facts to support the charges. The original indictment charged that Odeh lied in seeking her naturalization as a United States citizen by failing to disclose that she had been arrested, charged, convicted and imprisoned in Israel, beginning in 1969, as a result of bombings of a supermarket and the British Consulate. The new indictment includes those allegations as well, but also alleges that Odeh, in seeking naturalization, also falsely answered two additional questions on her application form relating to her association with the Popular Front for the Liberation of Palestine, a designated terrorist organization.
The new indictment also alleges that Odeh was inadmissible at the time she arrived in the United States in 1995 because she “engaged in a terrorist activity” as that term is defined by law.
The maximum penalty upon conviction is 10 years imprisonment. A trial has been scheduled for January 10, 2017, in Detroit.
The indictment is merely a charge and is not any evidence of guilt. At trial, it will be the government’s burden to prove guilt beyond a reasonable doubt.
Supai Man Sentenced to 5 Years in Prison for RobberyRead the Press Release
PHOENIX– Yesterday, Taylor Nardo Paya, 20, a member of the Havasupai Tribe, was sentenced by U.S. District Judge Douglas L. Rayes to five years in prison followed by three years of supervised release. Paya had previously pleaded guilty to robbery.
The robbery occurred on the Havasupai Indian Reservation in December 2015. Paya assaulted the victim in the front yard of a residence before stealing a number of her personal effects.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. The prosecution was handled by Christine Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8233-PCT-DLR
RELEASE NUMBER: 2016-101_Paya
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Spokane, Washington Woman Sentenced to 60 Months in Federal Prison for Mail Theft, Identity Theft, and Bank FraudRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Souha Yazbek, age 27, of Spokane, Washington, was sentenced today as a result of her guilty pleas on September 9, 2016, to the charges of Possession of a Counterfeit Postal Key, Possession of Stolen Mail, Aggravated Identity Theft, and Conspiracy to Commit Bank Fraud.
Senior United States District Judge Justin L. Quackenbush sentenced Souha Yazbek to a total of sixty months in federal prison on the charges, to be followed by an additional sixty months of court supervision following her release from imprisonment.
According to information disclosed during the court proceedings, in February of 2016, Yazbek was arrested in Spokane for attempting to sell a stolen vehicle. At the time, law enforcement officers discovered Yazbek was in possession of a counterfeit U.S. Postal Service key that would allow her access to the back of large cluster-style mail boxes. Law enforcement officers were aware that mail theft had been occurring in the area, and obtained a search warrant for Yazbek’s residence. During the search of her residence officers located thousands of pieces of stolen mail, belonging to more than 900 Spokane residents. The subsequent investigation revealed that Yazbek and three co-conspirators had forged personal and business checks stolen from the mail and deposited them into their own bank accounts, as well as using stolen credit cards to make fraudulent purchases. Yazbek had also previously stolen the identity of a California resident, opened a bank account under that person’s identity, and obtained and used a credit card in that person’s name. The fraudulently purchased items included, for example, Hobby Lobby furniture, a mattress from the Davenport Hotel, and pairs of eyeglasses from Lens Crafters.
Judge Quackenbush imposed significant sentences in Yazbek’s three co-conspirators’ cases as well: co-conspirator Charice Unruh received a thirty-seven month term of imprisonment to be followed by five years of supervised release; co-conspirator Shawn Fitzgerald received a twenty-four month term to be followed by five years of supervised release; and co-conspirator Raquel Calloway received a fifteen-month term to be followed by five years of supervised release. At the sentencing hearings, Judge Quackenbush emphasized the criminal conduct widely affected the community and had significant emotional and financial impact on the victims. Judge Quackenbush also ordered a total of more than $50,000 in restitution be paid to the individual and business victims in the case.
Michael C. Ormsby said, “This case is yet another fine example of the great work that can be accomplished when state and federal law enforcement work together. I commend the Spokane County Sherriff’s Department and the U.S. Postal Inspection Service. Today’s sentence should serve as a warning to those who may consider stealing mail or using another person’s identity; such criminals will be actively and aggressively pursued by federal and state law enforcement officers.”
The investigation of this case was conducted by the U.S. Postal Inspection Service with the assistance of the Spokane County Sherriff’s Department. The case was prosecuted by Allyson Edwards, an Assistant United States Attorney for the Eastern District of Washington.
Spokane, Washington Man Sentenced to 15 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Hugh Allen Russell, age 31, of Spokane, Washington, was sentenced today after having previously pled guilty on September 15, 2016 to Receipt of Child Pornography. Senior United States District Court Judge Justin L. Quackenbush sentenced Russell to a fifteen-year term of imprisonment, to be followed a fifteen-year term of court supervision after he is released from federal prison. He will also be required to register as a sex offender upon release. Russell has a prior 2014 Washington State conviction for Possession of Depictions of Minors Engaged in Sexually Explicit Conduct, and was registering as a sex offender at the time he committed the offense of Receipt of Child Pornography.
According to information disclosed during the court proceedings, Dropbox reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded a video of child pornography to their Dropbox account. NCMEC referred the information to the Internet Crimes Against Children Task Force in Washington State. As a result, the Spokane Sheriff’s Office and the Federal Bureau of Investigation conducted an investigation and ultimately searched Russell’s cellular phone, pursuant to a warrant, and located images of child pornography on the device.
Michael C. Ormsby stated, "Prosecuting offenders with prior child pornography convictions is a priority of the United States Attorney's Office for the Eastern District of Washington. Cases of recidivists, like this one, will be prosecuted aggressively."
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Federal Bureau of Investigation in conjunction with the Spokane County Sheriff’s Office. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
Spokane Man Sentenced to 84 Months in Federal Prison for Possessing Body Armor, Firearm and AmmunitionRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Keith Bennett Gordon Studhorse, II, age 43, of Spokane, Washington, was sentenced today for being a previously convicted violent felon in possession of body armor and previously convicted felon in possession of a firearm and ammunition. Chief United States District Court Judge Thomas O. Rice sentenced Studhorse to an 84-month term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, the Bureau of Alcohol, Tobacco, Firearms and Explosives received information that Studhorse had body armor and a shotgun to sell. At the time, Studhorse had been previously convicted of attempted first degree murder, second degree manslaughter, riot-domestic violence and conspiracy to possess methamphetamine. As such, Studhorse was prohibited from possessing body armor, a firearm and ammunition. On January 12, 2016, using a confidential informant, the Spokane Resident Office of ATF conducted a controlled purchase of a Survival, Inc. ballistic level III vest, a Mossberg, model 500AT, 12-gauge shotgun, and approximately two-hundred-twenty-seven assorted rounds of 12-gauge ammunition from Studhorse in the public parking lot of a local retail business. Studhorse was charged in a two-count indictment with being a previously convicted violent felon in possession of body armor and previously convicted felon in possession of firearm and ammunition. He pled guilty to those crimes on September 8, 2016.
Michael C. Ormsby said, “Prosecuting firearms-related crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Previously convicted felons and violent felons should be aware that there are serious criminal penalties connected with possessing any firearm, ammunition and body armor and that this Office is committed to prosecuting aggressively firearm-related cases in the Eastern District of Washington.”
This case was investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
South Florida Resident Sentenced in Identity Theft Scheme Involving the Cashing of over $140,000 from Altered Tax Refund ChecksRead the Press Release
A South Florida resident was sentenced to 18 months in prison, to be followed by three years of supervised release for his involvement in an identity theft scheme involving the cashing of over $140,000 in altered tax refund checks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Contreas Faison, 44, previously pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, Faison agreed to restitution in the amount of $140,000.
According to court documents, in 2013 and 2014, Faison obtained U.S. Treasury tax refund checks that had been fraudulently altered so that the taxpayer's name did not appear on the check. Instead, the check contained the name of the defendant's company or the name of another bank account holder. Faison deposited these checks into bank accounts in his name or in the name of other people, and then Faison used the proceeds for his own benefit. In total, the defendant cashed over $140,000 from fifteen different altered U.S. Treasury tax refund checks that were stolen or otherwise fraudulently obtained.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant United States Attorney Vanessa S. Snyder.
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.
Sie Merriman Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
FORT WAYNE – The United States Attorney for the Northern District of Indiana, David Capp, announces that Sie Merriman, 36, of Fort Wayne, IN was sentenced before District Court Judge Theresa Springmann for being a felon in possession of a firearm.
Merriman was sentenced to 86 months’ imprisonment and 1 year supervised release.
According to documents filed in the case, in December 2015 Merriman knowingly possessed a firearm. Merriman has two previous convictions for forgery in the State of Missouri.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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San Bernardino Man Sentenced to 20 Years in Federal Prison for Producing Child Pornography involving 5-Year-OldRead the Press Release
LOS ANGELES – A San Bernardino man has been sentenced to 20 years in federal prison for production of child pornography, including sexually explicit pictures of a 5-year-old girl.
Jeremy Matthew Meyerett, 41, was sentenced yesterday by United States District Judge Virginia A. Phillips to spend the 240 months in prison. Following his release from custody, Meyerett will be on supervised release for 20 years.
Meyerett pleaded guilty in June to the production of child pornography in a case that arose from an undercover investigation by the Queensland (Australia) Police Service. According to court documents, Meyerett discussed sexually molesting a 5-year-old girl, and a subsequent search of an online account by federal law enforcement yielded child pornography depicting the young victim.
“Child exploitation offenses such as those prosecuted in these cases are a scourge on our community,” said United States Attorney Eileen M. Decker. “My office will continue to protect vulnerable child victims of these heinous crimes by seeking lengthy sentences, such as the one imposed this week, for these criminals.”
This case against Meyerett was the result of a joint investigation by the Riverside Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case was prosecuted by Special Assistant United States Attorney Teresa Beecham, a Riverside County deputy district attorney who is also a member of the Riverside County District Attorney’s Sexual Assault Felony Enforcement (SAFE) team. The Riverside County District Attorney’s Office dismissed a related state case against Meyerett in favor of federal prosecution.
Meyerett is one of a half-dozen men from the Inland Empire who recently have been in federal court on charges related to child pornography. Three other defendants received sentences of at least 10 years in prison.
“The lengthy sentences given to these defendants are a gratifying outcome for the HSI special agents who work tirelessly to identify child sexual predators and bring them to justice,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The sexual exploitation of children is a despicable crime and, as these sentences make clear, there are serious consequences for those convicted. HSI remains committed to working with our federal, state, and local law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”
In the other Inland Empire child exploitation cases:
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James Gregory O’Neill, 58, of Riverside, was sentenced on May 2 to 10 years in federal prison for his third conviction of possessing child pornography. When authorities discovered the pictures on O’Neill’s phone, he was on parole after being convicted in Riverside Superior Court of possessing matter depicting a minor in a sexual act, a crime that led to a two-year sentence. O’Neill had also been convicted in federal court in 2003 of distributing child pornography, a conviction that brought a 40-month prison sentence.
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Andrew Harrison Fowler, 26, of Perris, a convicted sex offender who was convicted of having sex with minors in San Diego Superior Court, pleaded guilty on April 18 to possession of child pornography, with some of the images depicting victims younger than 10. Fowler came to the attention of law enforcement after his employer discovered that he was distributing and possessing child pornography while using a computer at his job in Corona. Fowler was sentenced by Judge Phillips on June 27 to 12 years in federal prison and a lifetime of supervised release. Fowler was on parole in the San Diego case when he committed the offense in the federal case. This case was investigated by the Riverside County District Attorney’s Office Sexual Assault and Felony Enforcement/Internet Crimes Against Children Unit, which includes special agents with HSI.
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Anthony Michael Scotti, 22, of Murrieta, pleaded guilty on April 4 to possession of child pornography. Scotti, who was previously convicted in Riverside Superior court of distributing lewd material to a minor, admitted that he had images on an iPod that was seized by law enforcement last August, and that he used the Kik messaging app to distribute images of children engaged in sex acts with adults. In a plea agreement, Scotti also admitted that he used text messages to convince a 15-year-old girl in another state to take sexually explicit pictures and send them to him. United States District Judge Philip S. Gutierrez is scheduled to sentence Scotti on January 23, at which time the defendant faces a mandatory minimum sentence of 10 years in federal prison, and prosecutors have recommended a sentence of 14 years. This case was investigated by HSI.
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Angelo Harper Jr., 21, of Moreno Valley, was found guilty after a two-day bench trial on charges of advertising, distributing and possessing child pornography. Trial evidence included an explicit six-minute video depicting a man with a pre-pubescent boy, as well as evidence showing that Harper used the Messenger to access a chatroom for those interested in nepiophilia, which is a sexual interest in infants and toddlers. Harper “possessed 8,260 images and 520 videos of child pornography,” according to court documents. “This collection included violent depictions of the rape and assault of babies and toddlers.” Harper was sentenced in October by United States District Judge R. Gary Klausner to 235 months in federal prison. This case was investigated by HSI and the Riverside Sexual Assault Felony Enforcement Task Force.
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Nathan Charles Longino Barba, 21, of Rancho Cucamonga, pleaded guilty in August to possessing child pornography. Barba received images and videos depicting child pornography over the Internet. “Some of the images depicted children under two years old being used for sexual acts,” prosecutors said in court papers. “Other images of child pornography portrayed sadistic or masochistic sexual conduct involving the minor children.” Barba is scheduled to be sentenced by United States District Judge Virginia A. Phillips on January 30. Prosecutors have recommended a sentence of three years in federal prison. This case was investigated by FBI.
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Robbers Exiled to Federal Prison for Stealing Drugs and Money from PharmaciesRead the Press Release
Greenbelt, Maryland – On December 12, 2016, U.S. District Judge George J. Hazel sentenced Daunte Antonio Jones, age 27, of Oxon Hill, Maryland, to 150 months in prison, followed by five years of supervised release, and sentenced Ernest Ingram, Jr., age 32, of Washington D.C., to 87 months in prison, followed by three years of supervised release, for armed robberies of pharmacies.
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 Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to their plea agreements and information presented at their sentencings, from March 7, 2015 to June 6, 2016, Jones and Ingram conspired with Haleem White and others to rob small retail pharmacies of cash and prescription medication. In each robbery, the conspirators wore dark ski masks and one of the robbers brandished a handgun. Specifically, on April 11, 2015 Jones, Ingram, and White robbed a pharmacy on Annapolis Road in Hyattsville, Maryland, and on May 2, 2015, they robbed a pharmacy on Rhode Island Avenue in Beltsville, Maryland.
On March 7, 2015, Jones, White, and at least two other co-conspirators also robbed a pharmacy on Hamilton Street in Hyattsville. During the robbery, one of the co-conspirators pepper-sprayed two elderly customers in the face and threw both patrons to the ground. The robbers then escaped in a vehicle that was waiting for them outside. On June 6, 2016, Jones, White and another conspirator robbed a pharmacy on Greenbelt Road in Berwyn Heights, Maryland, again escaping in a waiting get-away car. As in each of the previous robberies, the conspirators stole prescription drugs, including oxycodone, and cash from the store. In the June 6th robbery, the conspirators also stole an employee’s handbag, which contained a cellular phone, credit cards, identification cards, and cash.
During their participation in the conspiracy, Jones, Ingram, and White stole prescription medication worth more than $20,000. The defendants admitted that they stole the prescription medications in order to sell the drugs, which they did.
Co-conspirator Haleem Celestial White, age 25, of Washington D.C. has pleaded guilty to his role in the robbery conspiracy and is scheduled to be sentenced on January 5, 2017.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and William D. Moomau, who prosecuted the case.
Rensselaer Man Pleads Guilty to Oxycodone ConspiracyRead the Press Release
ALBANY, NEW YORK – Justin M. Brooks, age 27, of Rensselaer, New York, pled guilty today to conspiring to distribute oxycodone.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Brooks faces up to 20 years in prison and 3 years of post-imprisonment supervised release when he is sentenced on April 10, 2017, by Senior U.S. District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his plea, Brooks admitted that from about November 2015 through January 2016, he obtained approximately 150 oxycodone tablets from a co-conspirator, for resale in the Northern District of New York.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman.
Postal Worker Charged with Stealing Money from MailRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. was indicted today by a federal grand jury in Johnstown on a charge of theft of mail matter by a postal employee, Acting United States Attorney Soo C. Song announced today.
The indictment named Ashlee R. Lodolinski, 28, of Johnstown, Pa., as the sole defendant.
According to the indictment presented to the court, on June 24, 2015, while an employee of the United States Postal Service, she unlawfully removed $147 from 53 pieces of mail, which were intended to be conveyed by the United States mail.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Plant City Man Sentenced to Four Years in Prison for Selling Stolen Medical RecordsRead the Press Release
Tampa, FL –U.S. District Judge Charlene Edwards Honeywell today sentenced Vickie Lorenzo Bryant (39, Plant City) to four years in federal prison for access device fraud and aggravated identity theft. He pleaded guilty on August 23, 2016.
According to court documents, in May 2016, Bryant contacted a government confidential informant (CI) and offered to sell the CI approximately 1,000 individuals’ personally identifiable information (PII), including names, dates of birth, and social security numbers, for $15,000 or $15 per identity. Bryant had previously sold stolen PII to the CI and knew that the CI had used the information to manufacture counterfeit credit cards and fake Florida driver licenses. The CI had also purchased cellphones using the identity theft victims’ credit. On June 9, 2016, and again on June 16, 2016, Bryant met with the CI in Tampa and sold him 957 different victims’ PII contained in printed medical records.
A review of the PII sold by Bryant revealed that it consisted of over 1,000 pages of printed medical records that agents traced to Rotech Healthcare, a medical device company that provides respiratory and sleep apnea services across the United States. All of the identity theft victims confirmed that they had received equipment (such as sleep apnea breathing machines) and/or services from Rotech, which has a billing center in Lakeland.
Bryant’s coconspirators, Fontella James and Sharmekia Young, the Rotech employees who allegedly stole the PII from their employer, were separately indicted on September 29, 2016, and charged with conspiracy, computer intrusion, and identity theft crimes.
This case was investigated by the United States Secret Service and the Florida Department of Law Enforcement as part of the Secret Service’s Financial Investigations Strike Team. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Pitt County Medicaid Biller Sentenced to 9 Years in Federal Prison for Participation in Medicaid Fraud ConspiracyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, DONNIE LEE PHILLIPS, II, 37, of Greenville, North Carolina, was sentenced to 108 months in federal prison and 3 years of supervised release following his prior guilty plea to Health Care Fraud Conspiracy and Aggravated Identity Theft. PHILLIPS was also ordered to make restitution of $5,722,364.09 to the victims of the offense, which included the North Carolina Medicaid program and a physician, whose name and identification number PHILLIPS and other conspirators used to commit the fraud. PHILLIPS was further ordered to forfeit certain proceeds of the fraud, including a truck, boat, and boat trailer.
PHILLIPS’s case is related to a prior health care fraud and money laundering case against Terry Lamont Speller, of Greenville. Speller was previously sentenced in March of this year to 20 years in federal prison for his role in the conspiracy.
According to the Criminal Information to which PHILLIPS pleaded guilty, as well as information provided at the sentencing hearing, between 2013 and 2015, PHILLIPS fraudulently billed the Medicaid program and Medicaid Managed Care Organizations for services that were not, in fact, provided by various outpatient behavioral health providers. PHILLIPS transmitted false billings on behalf of various individuals in the scheme and, in the process, fraudulently utilized the identities of more than 2000 minor children. Before being caught carrying out the fraud on audiotape by a confidential informant, PHILLIPS assisted participating providers to fraudulently acquire more than $5 Million. For his role in the scheme, PHILLIPS received around $300,000.
PHILLIPS was arrested on a warrant after investigators captured PHILLIPS on audiotape coordinating the billing fraud with another Medicaid provider. PHILLIPS later pleaded guilty to the charges of Conspiracy to Commit Health Care Fraud and Aggravated Identity Theft contained in the Criminal Information.
“When fraudsters like Donnie Lee Phillips bill Medicare and Medicaid for services never provided just to enrich themselves, the integrity of these taxpayer-funded health care programs is at risk," said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General. "The sentence handed down in this case is a warning that health care fraud will not be tolerated.”
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS- TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Owner of Costa Rican Call Center and Participants in Scam Sentenced to Prison for Roles in Sweepstakes Fraud Schemes Targeting ElderlyRead the Press Release
Three U.S. citizens were sentenced to prison today for their roles in sweepstakes fraud schemes to defraud hundreds of U.S. residents, many of them elderly, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Jeffrey Robert Bonner, 41, of Sacramento, California; and Frank M. Schiavone, 76, and Lewis E. Ricker, 65, both of Lutz, Florida, were sentenced by U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina to 180 months, 48 and 42 months in prison, respectively. Judge Conrad also ordered Bonner to pay $9,688,486.47 in restitution and to forfeit the same amount, and ordered Schiavone and Ricker to each pay $399,852.56 in restitution. Bonner, Schiavone and Ricker pleaded guilty to various counts of conspiracy to commit wire and mail fraud, wire fraud, conspiracy to commit money laundering and international money laundering, all in connection with separate Costa Rican telemarketing fraud schemes.
As part of his guilty plea, Bonner admitted that from approximately 2007 through February 2015, he owned a call center located in Costa Rica that placed phone calls to U.S. residents and falsely informed the potential victims that they had won a substantial cash prize in a “sweepstakes.” Schiavone and Ricker admitted that they worked for a different call center from approximately 2009 to 2015 that operated a nearly identical scheme. The victims, many of whom were elderly, were told that in order to receive the prize, they had to pay for a purported “refundable insurance fee.” Once they received victims’ money, Bonner, Schiavone, Ricker and other co-conspirators in their respective schemes contacted the victims again to tell them that their prize amount had increased and told the victims to pay new purported fees, duties and insurance to receive the larger sweepstakes prize. The defendants and their co-conspirators continued their attempts to collect additional money from victims until those victims either ran out of money or discovered the fraudulent nature of the scheme.
Schiavone and Ricker collected victim money sent to them in the United States and then routed the money to their co-conspirators in Costa Rica.
Bonner admitted that to mask that the fact he and his co-conspirators were calling from Costa Rica, they utilized voice over internet protocol (VoIP) phones that displayed a 202 area code to give the false impression that they were calling from Washington, D.C. Bonner and his co-conspirators often falsely claimed that they were calling on behalf of a U.S. federal agency to lure victims into a false sense of security. The victim loss associated with Bonner’s scheme is nearly $10 million.
The U.S. Postal Inspection Service, FBI, Internal Revenue Service-Criminal Investigation, Federal Trade Commission and Department of Homeland Security investigated the cases. Trial Attorneys Gustav Eyler and William Bowne of the Criminal Division’s Fraud Section are prosecuting the cases.
The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s sentencing is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Owner of Boston Cab Sentenced for Tax and Fraud OffensesRead the Press Release
BOSTON – Edward J. Tutunjian, who has owned and operated Boston Cab through his company, EJT Management, Inc., for more than four decades, was sentenced today in U.S. District Court in Boston for payroll tax evasion, employing illegal aliens and for failing to pay overtime wages.
Tutunjian, 67, of Belmont, was sentenced by U.S. District Court Judge Douglas P. Woodlock to 20 months of probation, 18 months of which must be spent at Coolidge House, a community correctional facility in Boston. Tutunjian was also ordered to pay a fine of at least $28,999 per year to cover the cost of his confinement, or up to 25% of his income over the 18-month period, whichever is greater. Tutunjian already has paid $1,391,012 in restitution to the IRS for taxes, interest and penalties, and an additional $699,717 to the U.S. Department of Labor for distribution to employees for unpaid overtime wages. Tutunjian’s company, EJT, was also placed on 20 months of probation for aiding and abetting EJT employees in fraudulently obtaining housing subsidies for which they were not entitled. EJT has paid restitution of $219,307 to the U.S. Department of Housing and Urban Development (HUD).
In August 2016, Tutunjian pleaded guilty to five counts of tax evasion, one count of employing illegal aliens and one count of violating the Fair Labor Standards Act for failing to pay overtime wages. EJT Management, Inc. pleaded guilty to aiding and abetting the theft of public money.
Since approximately 1972, Tutunjian and EJT have operated the Boston Cab taxicab business in the greater Boston area. By 2014, Tutunjian and EJT owned approximately 372 taxi medallions – a government license permitting a car to be used to transport passengers for hire – which they leased to drivers and for which Tutunjian and EJT received millions of dollars in gross revenues each year, mostly in cash. Although the taxi drivers were self-employed, Tutunjian and EJT directly employed mechanics, dispatchers, office workers and others. A number of those employees were undocumented aliens who, because of their immigration status, were not authorized to work in the United States.
Tutunjian concealed the size of the company’s payroll from the IRS, and thereby concealed the amount of federal employment taxes he and EJT would be responsible for paying. He did this by paying employees entirely or partially in cash and keeping such cash payments off the books. By doing this, he ensured there would be no record of cash payments that could be inspected by the IRS. Employees who were illegal aliens, and therefore not authorized to work in the United States, were paid entirely in cash. EJT did not issue W-2 forms to those employees and did not withhold or pay federal income tax, Social Security tax, or Medicare tax with regard to those illegal alien employees.
Other employees who were U.S. citizens or legal permanent resident aliens received their wages partly in cash and partly by check. Tutunjian filed quarterly employment tax returns for EJT, which did not include the amounts that had been paid in cash to EJT employees. In this way, EJT evaded, and aided and abetted its employees in evading, approximately $739,204 in taxes from 2009 to 2013.
Tutunjian also did not pay the required overtime rate to employees who worked more than 40 hours a week. To conceal this, Tutunjian required certain employees to punch in 40 or fewer hours per week on an electronic time clock whose information was sent to the outside payroll company that prepared the payroll checks and W-2s, even though those employees had actually worked more than 40 hours per week, in some instances 50 or 60 hours a week. Tutunjian paid those workers in cash for their overtime hours, at the regular-time rate rather than the required time-and-a-half.
A number of EJT’s employees were living in federally subsidized housing in Cambridge and elsewhere, some of which had waiting lists for prospective tenants. The amount of the federal housing subsidy, as well as the eligibility to live in the units, depended on the tenant’s income. HUD did not rely solely on a tenant’s statement of his/her income, but also compared it to the tenant’s W-2 wages and generally required employers, such as EJT to, provide written verification. From January 2009 to about May 2013, EJT aided certain employees in receiving housing benefits to which they were not entitled, by providing payroll information, including W-2s, which did not reflect the wages paid to these employees in cash. Additionally, during the same period, EJT provided certifications to the state agency administering the housing subsidy program, which falsely reported the income of certain employees to be only the amounts paid by check, but which did not include the wages paid in cash.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Acting Cambridge Police Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit prosecuted the case.
Olive Branch Man Sentenced to 50 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
OXFORD – Stephen Richard Lightman, 34, of Olive Branch, Mississippi, was sentenced by U.S. District Judge Neal B. Biggers, Jr., in Oxford, Mississippi on December 12, 2016, to serve 360 months in prison for production of child pornography, and 240 months in prison for distribution of child pornography. Lightman will serve the two sentences consecutively, totaling 50 years in prison.
Lightman will also serve a lifetime of supervised release following his incarceration and was ordered to pay $15,000 in restitution to victims of his offense. Lightman was remanded to the custody of the United States Marshals Service to await designation by the Federal Bureau of Prisons.
U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Christopher Freeze of the FBI’s Jackson, Mississippi Division, and Mississippi Attorney General Jim Hood made the announcement.
“The United States Attorney’s Office for the Northern District of Mississippi is committed to the protection of our children and we will vigorously prosecute those predators who seek to exploit and abuse them. Our office appreciates the hard work of all the federal, state, and local agencies that participated in this investigation,” said U.S. Attorney Adams.
“Criminals who produce and distribute child pornography violate the rights of our society’s most precious asset,” said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. “This case and sentence should send a strong message to those who participate in these nefarious activities that law enforcement in Mississippi is committed to seeking out, investigating and prosecuting those who prey on children.”
"After working with other AGs for the past 14 years and as a DA and assistant AG for 13 years prior to that, I have learned that law enforcement at the local, state and federal levels in Mississippi cooperate better than the vast majority in other states," Attorney General Jim Hood said. "We all make the best of the law enforcement assets we have. Our cooperative model in the investigation, arrest and prosecution of this child pornographer is a prime example. There is no U. S. Attorney's Office in America any better on child exploitation prosecutions than our Northern District Office."
On June 14, 2016, a federal grand jury returned a four count indictment charging Lightman with two counts of production of child pornography; one count of possession of child pornography and one count of distribution of child pornography. On August 1, 2016, Lightman pled guilty to Counts One and Four of the indictment, production of child pornography and distribution of child pornography.
The FBI Jackson Division’s Child Exploitation Task Force conducted the investigation, with assistance from the DeSoto County Sheriff’s Department. The task force is composed of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson.
O.C. Man Charged with Selling Pet Meds Without a Prescription, Some of Which Were Not Approved for Distribution in the United StatesRead the Press Release
LOS ANGELES – A Laguna Hills man was arrested this morning on charges that he used the internet to sell misbranded veterinary medications without a prescription.
Sean Gerson, 48, the owner of a business called Vaccination Services in Lake Forest, was taken into custody this morning by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Food and Drug Administration’s Office of Criminal Investigations, and the Environmental Protection Agency. Gerson is scheduled to make his initial appearance this afternoon in United States District Court in Los Angeles.
Gerson was arrested pursuant to a two-count criminal complaint filed on December 6. The complaint alleges that Gerson delivered into interstate commerce two misbranded drugs: Comfortis, an anti-flea medication, and ciprofloxacin, a powerful antibiotic commonly called “Cipro” that can be used in dogs and cats to treat skin, respiratory and urinary tract infections. The complaint, which contains one felony count and one misdemeanor count, alleges that the drugs were knowingly dispensed without a prescription.
The affidavit in support of the complaint alleges that Gerson sold Comfortis that was designed for the South African market and was not approved for distribution in the United States.
“Uncontrolled distribution of antibiotics and medication pose a threat to public safety, including the fostering of antibiotic resistant strains of bacteria,” said United States Attorney Eileen M. Decker. “The drugs involved in this case allegedly were distributed without the supervision of a licensed professional, which greatly increases the risk of unintended consequences beyond the animals taking the medication.”
According the affidavit, Gerson allegedly used several websites – including www.fleastuff.com, www.mydoghasfleas.xyz and www.fleaandtickstuff.com – to market prescription animal products to buyers without valid prescriptions, rendering the medications misbranded. Additionally, federal law prohibits the importation and sale of veterinary medicines that have not been approved by the FDA and EPA for use in this country.
In conjunction with Gerson’s arrest, federal investigators executed a search warrant at a Laguna Hills storage unit linked to Gerson, where they seized a variety of veterinary prescription products.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If he is convicted of two counts in the complaint, Gerson would face a statutory maximum sentence of four years in federal prison.
This week’s arrest marks the second time Gerson has been linked to the illegal sale of pet medications and products. He pleaded guilty in Harris County, Texas, in 2014 to state charges of delivery of a dangerous drug, specifically a prescription drug called Clenbuterol. According to the affidavit filed in connection with this week’s charges, following that conviction, Gerson agreed to work as a confidential informant for authorities, with the stipulation he could not sell animal prescription drug products.
The case against Gerson is being prosecuted by Assistant United States Attorney Joseph O. Johns, Chief of the Environmental and Community Safety Crimes Section.
North Carolina Man Charged with Sexual Exploitation of Joplin-Area ChildRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a North Carolina man has been charged in federal court with sexually assaulting a Joplin, Mo., area child in order to produce child pornography.
David Lee Perkins, 33, of North Carolina, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Monday, Dec. 12, 2016. Perkins remains in federal custody pending a detention hearing on Wednesday, Dec. 14, 2016.
According to an affidavit filed in support of the federal criminal complaint, police officers were dispatched to a Joplin hotel where Perkins was staying on Sunday, Dec. 11, 2016. Officers met a woman at the hotel who showed them an iPad that contained videos of Perkins molesting an 11-year-old victim, identified in court documents as “Jane Doe.” She told officers that she looked through the iPad while Perkins was out in the parking lot with Jane Doe and another minor, and discovered three videos of Perkins sexually abusing Jane Doe.
Officers entered Perkins’s hotel room and placed Perkins under arrest for child molestation. In an interview the following day, the affidavit says, Perkins told an officer that he had been sexually abusing Jane Doe for approximately one year, in various hotels and motels in Joplin. Perkins stated he used his iPad and iPhone to photograph and create videos of the sexual abuse.
According to the affidavit, investigators found three videos on Perkins’s iPad that depict Perkins engaged in sexually explicit conduct with Jane Doe.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New York Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Ahmed El Soury, 44, of Monmouth Junction, New Jersey, was indicted by a federal grand jury in Newark. The indictment charges El Soury with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. El Soury will be arraigned at a later date.
According to the indictment:
Between March 2011 and April 2013, El Soury allegedly received cash bribes totaling approximately $65,000 from BLS employees and associates. In February 2012, El Soury solicited and received an increase in his monthly bribe payments for having persuaded another health care provider to refer patient blood samples to BLS.
El Soury’s referrals generated approximately $650,000 in lab business for BLS.
The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
El Soury is the third physician to be indicted in connection with the BLS bribery scheme. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017 before U.S. District Judge William H. Walls.
The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Albert Dayan Esq., Kew Gardens, New York
New London Manufacturing Company to Pay $1 Million for Violating the Clean Water ActRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Robert Klee of the Connecticut Department of Energy and Environmental Protection announced that SHEFFIELD PHARMACEUTICALS, LLC, formerly known as Faria Limited, LLC, has entered into a deferred prosecution agreement with the government to resolve violations of the Clean Water Act.
In proceedings today before U.S. District Judge Alvin W. Thompson in Hartford, the government filed a criminal information charging SHEFFIELD PHARMACEUTICALS (“SHEFFIELD”) with violating the Clean Water Act. As part of a deferred prosecution agreement, SHEFFIELD is required to commit no criminal conduct, comply with all applicable environmental laws and regulations, and pay $1 million, most of which will support environmental conservation projects in coastal Connecticut. SHEFFIELD will make the payment in installments over a seven-year period. If SHEFFIELD fully complies with this agreement, the information will be dismissed.
The information and deferred prosecution agreement relate to the conduct of Thomas H. Faria, SHEFFIELD’s former president and chief executive officer, who pleaded guilty to a felony violation of the Clean Water Act on July 8, 2014. From at least April 2004 to May 2011, under Faria’s leadership, SHEFFIELD discharged polluted industrial wastewater from its New London factory into the municipal sewage system without the required permit and industrial wastewater treatment system. As a condition of his guilty plea, FARIA resigned from the company on March 7, 2014, and no longer has any role in its operations or management. On February 13, 2015, Judge Thompson sentenced Faria to three years of probation, a $30,000 fine, and 300 hours of community service.
According to court documents and statements made in court, the Clean Water Act requires that every company obtain a permit from the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) before it can discharge industrial wastewater to the public sewage system, commonly known as the publicly owned treatment works (“POTW”). Companies are also required, among other things, to test and monitor their industrial wastewater monthly to ensure that chemical levels in the wastewater do not exceed federal and state limitations.
SHEFFIELD has a factory at 170 Broad Street in New London that manufactures a wide range of over-the-counter pharmaceutical creams, ointments and toothpastes. From approximately 1986 to July 2011, SHEFFIELD discharged industrial wastewater from its New London manufacturing operations to the New London POTW without a permit and in violation of Connecticut’s approved pretreatment program. The New London POTW discharges to the Thames River in southeastern Connecticut. During this entire time period, SHEFFIELD lacked a pretreatment system at its factory to treat its industrial wastewater prior to discharge, performed no regular monitoring of its discharges of industrial wastewater, and submitted no monthly monitoring reports to the CT DEEP.
After becoming the company’s president and chief executive officer in April 2003, Faria learned through his own employees that SHEFFIELD was discharging pollutants in its industrial wastewater without the required permit. Faria also learned that in order to obtain a permit from CT DEEP, the company would have to install, at significant expense, a wastewater pretreatment system that would pretreat its industrial wastewater prior to discharging it to the New London POTW. Although Faria’s own employees urged him to make the financial investment to bring the company into compliance, he chose not to do so. Faria continued this illegal course even when four environmental consulting firms, which the company had hired, advised him that the discharge of industrial wastewater to the public sewage treatment system, without a pretreatment system and CT DEEP permit, is illegal.
On April 20, 2011, the CT DEEP conducted an unannounced inspection of SHEFFIELD. After finding that the company had no wastewater discharge permits, the CT DEEP inspector issued a Notice of Violation and cited the company for discharging manufacturing and laboratory wastewater without a permit. On or about May 27, 2011, SHEFFIELD submitted a permit application to CT DEEP. In July 2011, the company installed a wastewater pretreatment system at its factory to pretreat the pollutants contained in its industrial wastewater prior to its discharge to the New London POTW.
Currently led by a new management team, SHEFFIELD has remained compliant with the Clean Water Act. The company’s current chief executive officer, Jeffrey Davis, is a former SHEFFIELD manager who personally urged Faria to bring the company into compliance with the Clean Water Act as early as 2005. The company has also established a formal procedure to protect whistleblowers who come forward.
“Prior leadership at Sheffield took short cuts to save money by discharging polluted industrial wastewater into the public sewage system for years without the requisite treatment and regulatory permit,” said U.S. Attorney Daly. With today’s disposition and the former chief executive’s felony conviction in 2014, we are confident that such short-sighted decisions are a thing of the past at Sheffield. Simply put, sound environmental stewardship is good business for all companies and their employees. Sheffield has agreed to pay $1,000,000, which includes a $150,000 fine and $850,000 to fund beneficial environmental projects in coastal Connecticut. We thank our partners at the EPA and Connecticut’s Department of Energy and Environmental Protection for their outstanding partnership in this important prosecution.”
“This agreement demonstrates EPA’s commitment to protecting Connecticut’s environment and ensuring that all companies commit to the resources needed to keep pollutants from our systems,” said EPA Special Agent in Charge Amon. “EPA’s Criminal Investigation Division will continue to work closely with the U.S. Attorney’s Office and CT DEEP to achieve this.”
“We take compliance seriously and it is important that Mr. Faria was held accountable for disregarding and defying environmental laws,” said Commissioner Klee. “This action sends a strong message that ignoring environmental laws – and causing pollution of and damage to this state’s natural resources – carries significant consequences.”
This matter was investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case was prosecuted by Assistant U.S. Attorney Hal Chen and Special Assistant U.S. Attorney Peter Kenyon.
Navajo Man from Farmington Sentenced to Seventeen and a Half Years in Federal Prison for Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Ferguson Pierce, 52, an enrolled member of the Navajo Nation who resides in Farmington, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 210 months in prison followed by ten years of supervised release for his conviction on an aggravated sexual abuse charge. Pierce will also be required to register as a sex offender after he completes his prison sentence.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Pierce was arrested in Nov. 2015, on a criminal complaint alleging that he sexually assaulted and raped a Navajo woman in San Juan County, N.M., on the Navajo Indian Reservation, on July 6, 2015. Pierce was indicted on Aug. 25, 2015, and charged with aggravated sexual abuse.
On June 6, 2016, Pierce pled guilty to a felony information charging him with aggravated sexual abuse. In entering the guilty plea, Pierce admitted that on July 6, 2015, he forced his way into the victim’s residence and sexually assaulted the victim.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney David Adams prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man Pleads Guilty to Being Accessory After the Fact and Impeding Investigation of Murder in FruitlandRead the Press Release
ALBUQUERQUE – Maynard Shirley 37, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., pled guilty today in federal court in Albuquerque, N.M., to being an accessory after the fact and impeding an investigation into a murder and assault which occurred in Fruitland, N.M., on March 21, 2015. Under the terms of his plea agreement, Maynard Shirley will be sentenced to 42 months in prison followed by a term of supervised release to be determined by the court.
According to court filings, Maynard Shirley and his brothers Elijah Shirley, 31, and Michael Shirley, 32, were charged with murdering a Navajo man and assaulting the murder victim’s father. According to the criminal complaint, the defendants committed the crimes on March 21, 2015, in Fruitland, N.M., in San Juan County, N.M. Maynard Shirley, Elijah Shirley and Michael Shirley were indicted on April 14, 2015, and charged with killing one victim by stabbing him with a knife, and assaulting the second victim with a dangerous weapon and causing him to suffer serious bodily injury.
During today’s proceedings, Maynard Shirley pled guilty to a felony information charging him with being an accessory after the fact as to the offense of voluntary manslaughter. In entering the guilty plea, Maynard Shirley admitted that from March 21, 2015 through March 23, 2015, he aided Elijah Shirley despite knowledge that Elijah Shirley had committed the crime of voluntary manslaughter. Maynard Shirley admitted helping Elijah Shirley by transporting him, securing housing for him, and burning his vehicle.
Michael Shirley pled guilty on Sept. 21, 2016, to an information charging him with being an accessory after the fact. Under the terms of his plea agreement, Michael Shirley will be sentenced to 63 months in prison followed by a term of supervised release to be determined by the court.
Elijah Shirley entered a guilty plea on Sept. 21, 2016, to a felony information charging him with voluntary manslaughter, and admitted stabbing and killing the victim in the heat of passion. Under the terms of his plea agreement, Elijah Shirley will be sentenced to 121 months in prison followed by a term of supervised release to be determined by the court.
Maynard Shirley, Elijah Shirley and Michael Shirley all remain in custody pending sentencing hearings, which have yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Shiprock and Kayenta offices of the Navajo Nation Division of Public Safety, and are being prosecuted by Assistant U.S. Attorneys Niki Tapia-Brito and Nicholas Marshall.
Member of Large-Scale ATM Skimming Scheme Sentenced to 57 Months in Prison for Role in Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 31, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him conspiracy to commit bank fraud.
According to documents filed in this and other cases as well as statements made in court:
Mate participated as a high-level member of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions.
Afterwards, the stolen data was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Mate, Vintila and Radu, have been convicted. Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 30, remains at large.
In addition to the prison term, Judge Martini sentenced Mate to five years of supervised release and ordered him to pay restitution of $7,397,270.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field
Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the office’s Criminal Division.
Defense Counsel: Angelo Servidio Esq., Nutley, New Jersey
McAllen Man Sentenced for Attempting to Entice an Individual he Believed was a MinorRead the Press Release
McALLEN, Texas – A 25-year-old McAllen man has been ordered to federal prison for 10 years following his conviction of attempted enticement of a minor, announced U.S. Attorney Kenneth Magidson. Timinson Erin Jackson pleaded guilty Sept. 30, 2016.
Today, U.S. District Judge Randy Crane ordered he serve 120 months in prison to be immediately followed by five years of supervised during which time during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
From May 25, 2016, to June 3, 2016, Jackson engaged in online communications with a person he thought was a 12-year-old minor female. That individual was actually an undercover agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). During these conversations, which were mostly carried out via text messaging, Jackson attempted to persuade, induce and entice this “minor” into having sex with him.
On June 3, 2016, Jackson arranged to meet the individual at a park in McAllen. He was arrested upon his arrival. At that time, Jackson admitted he intended to have sex with an individual whom he believed was a 12-year old minor female.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Manhattan U.S. Attorney Announces Charges Against Six Individuals in International High-Yield Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent In Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), and Deirdre L. Fike, Assistant Director in Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging six defendants with conspiracy, wire fraud, impersonation of Federal Reserve Bank of New York (“New York Fed”) officials, money laundering, and other crimes in connection with a fraudulent high-yield investment scheme that resulted in the theft of over $50 million from investors in the United States and around the world.
Manhattan U.S. Attorney Preet Bharara said: “Edwards and his co-defendants allegedly concocted and carried out an audacious scam, promising investors exponential returns on investments they claimed were overseen by the New York Federal Reserve and backed by the U.S. government. In reality, it was all a lie; there was no government-backed program and no plan to invest, only an alleged plan to steal the investors’ money.”
HSI Special Agent in Charge Angel M. Melendez said: “Using forged and counterfeit Federal Reserve documents, these individuals allegedly orchestrated a complex international scheme that cost unwitting investors both here and abroad over $50 million dollars. This indictment shows the great length that criminals will go to steal the money of hard working individuals. HSI is up to the challenge to uncover these schemes and bring the participants to justice.”
FBI Assistant Director Deirdre L. Fike said: “The defendants in this case allegedly used complicated terminology and claimed to have international sophistication as they swindled their victims. Skilled investigators with the FBI and with the HSI will continue our joint efforts to mitigate the threat to capital markets around the world.”
According to the allegations contained in the Indictment[1]:
From at least June 2013 through August 2016, RIENZI EDWARDS, MICHAEL JACOBS, RUBY HANDLER-JACOBS, F.K. HO, LAWRENCE LESTER, and RACHEL GENDREAU orchestrated and executed a fraudulent high-yield investment program known as the “Cities Upliftment Program,” or CUP, which the defendants falsely told investors was operated by the New York Fed. The scheme was principally designed and operated by EDWARDS, with the assistance of JACOBS and HANDLER-JACOBS, and was marketed to investors around the world through brokers, including HO, LESTER, and GENDREAU.
The defendants pitched the CUP to investors as a highly exclusive, invitation-only, public-private investment partnership designed to raise capital and generate large returns through a purported “trading program” run by the New York Fed. The defendants promised investors that the CUP would generate extremely high returns on their investments, in some cases as much as $150 million for every $1 million invested. The defendants claimed that half of the returns would be used to help revitalize American cities recovering from the 2008 financial crisis, and that the other half would be returned to the investors at the rate of $1 million per day for 75 banking days. The defendants told numerous other lies to victims to convince them to invest, including that their funds would be held in a trust account established by the New York Fed and that CUP investments were risk-free because they were “guaranteed” by the United States government. In truth, and as the defendants well knew, the CUP was a complete scam.
One of the primary ways in which the defendants tricked victims into investing millions of dollars in the CUP scheme was the use of forged and counterfeit New York Fed documents. On numerous occasions, the defendants sent, or caused to be sent, investment contracts, guarantees, correspondence, and other CUP-related documents printed on what appeared to be New York Fed letterhead and bearing the names and purported signatures of New York Fed officials, including the president, certain board members, and other senior officials of the New York Fed. In addition, EDWARDS, JACOBS, and HO, with the assistance of HANDLER-JACOBS, pretended to be New York Fed officials during in-person meetings and phone calls with investors to convince them to invest in the CUP.
Instead of holding investors’ funds in the purported trust accounts as promised, the defendants simply stole the money. EDWARDS, JACOBS, and HANDLER-JACOBS caused the bulk of the funds to be laundered through various domestic and overseas bank accounts in Hong Kong, Barbados, the United Kingdom, and Sri Lanka held in the names of shell companies that they controlled. A portion of the proceeds was then kicked back to the brokers who had recruited the investors. Altogether, the defendants stole over $50 million from investors in the United States and several foreign countries.
* * *
JACOBS was arrested at Los Angeles International Airport in California on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Santa Ana, California, on December 12. HANDLER-JACOBS was arrested in Albuquerque, New Mexico, on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Albuquerque on December 12. LESTER was arrested in Mount Vernon, Washington, on December 12, 2016, and presented the same day in federal court before a U.S. Magistrate Judge in Seattle, Washington. GENDREAU was arrested on December 12, 2016, in Savanna, Illinois, and was presented in federal court before a U.S. Magistrate Judge in Rockford, Illinois, earlier today. EDWARDS and HO are currently at large.
The case is assigned to U.S. District Judge Paul G. Gardephe. Arraignment is scheduled for December 20, 2016, in federal court in Manhattan.
EDWARDS, 55, of Sri Lanka, JACOBS, 64, of Albuquerque, New Mexico, and HANDLER-JACOBS, 64, of Albuquerque, New Mexico are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison; one count of conducting monetary transactions in unlawful funds, which carries a maximum sentence of 10 years in prison; one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; one count of impersonating employees of the United States, which carries a maximum sentence of three years; and aggravated identity theft, which carries a maximum sentence of two years in prison.
HO, 80, of Singapore, LESTER, 71, of Mount Vernon, Washington, and GENDREAU, 46, of Savanna, Illinois, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; and one count of aggravated identity theft, which carries a maximum sentence of two years in prison. In addition, HO is charged with one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; and one count of impersonating employees of the United States, which carries a maximum sentence of three years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of HSI and the FBI. Mr. Bharara also thanked the Federal Reserve Bank of New York for its ongoing cooperation in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Rienzi Edwards indictment.pdf
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Charges Against Six Individuals in International High-Yield Investment Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent In Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), and Deirdre L. Fike, Assistant Director in Charge of the Los Angeles Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging six defendants with conspiracy, wire fraud, impersonation of Federal Reserve Bank of New York (“New York Fed”) officials, money laundering, and other crimes in connection with a fraudulent high-yield investment scheme that resulted in the theft of over $50 million from investors in the United States and around the world.
Manhattan U.S. Attorney Preet Bharara said: “Edwards and his co-defendants allegedly concocted and carried out an audacious scam, promising investors exponential returns on investments they claimed were overseen by the New York Federal Reserve and backed by the U.S. government. In reality, it was all a lie; there was no government-backed program and no plan to invest, only an alleged plan to steal the investors’ money.”
HSI Special Agent in Charge Angel M. Melendez said: “Using forged and counterfeit Federal Reserve documents, these individuals allegedly orchestrated a complex international scheme that cost unwitting investors both here and abroad over $50 million dollars. This indictment shows the great length that criminals will go to steal the money of hard working individuals. HSI is up to the challenge to uncover these schemes and bring the participants to justice.”
FBI Assistant Director Deirdre L. Fike said: “The defendants in this case allegedly used complicated terminology and claimed to have international sophistication as they swindled their victims. Skilled investigators with the FBI and with the HSI will continue our joint efforts to mitigate the threat to capital markets around the world.”
According to the allegations contained in the Indictment[1]:
From at least June 2013 through August 2016, RIENZI EDWARDS, MICHAEL JACOBS, RUBY HANDLER-JACOBS, F.K. HO, LAWRENCE LESTER, and RACHEL GENDREAU orchestrated and executed a fraudulent high-yield investment program known as the “Cities Upliftment Program,” or CUP, which the defendants falsely told investors was operated by the New York Fed. The scheme was principally designed and operated by EDWARDS, with the assistance of JACOBS and HANDLER-JACOBS, and was marketed to investors around the world through brokers, including HO, LESTER, and GENDREAU.
The defendants pitched the CUP to investors as a highly exclusive, invitation-only, public-private investment partnership designed to raise capital and generate large returns through a purported “trading program” run by the New York Fed. The defendants promised investors that the CUP would generate extremely high returns on their investments, in some cases as much as $150 million for every $1 million invested. The defendants claimed that half of the returns would be used to help revitalize American cities recovering from the 2008 financial crisis, and that the other half would be returned to the investors at the rate of $1 million per day for 75 banking days. The defendants told numerous other lies to victims to convince them to invest, including that their funds would be held in a trust account established by the New York Fed and that CUP investments were risk-free because they were “guaranteed” by the United States government. In truth, and as the defendants well knew, the CUP was a complete scam.
One of the primary ways in which the defendants tricked victims into investing millions of dollars in the CUP scheme was the use of forged and counterfeit New York Fed documents. On numerous occasions, the defendants sent, or caused to be sent, investment contracts, guarantees, correspondence, and other CUP-related documents printed on what appeared to be New York Fed letterhead and bearing the names and purported signatures of New York Fed officials, including the president, certain board members, and other senior officials of the New York Fed. In addition, EDWARDS, JACOBS, and HO, with the assistance of HANDLER-JACOBS, pretended to be New York Fed officials during in-person meetings and phone calls with investors to convince them to invest in the CUP.
Instead of holding investors’ funds in the purported trust accounts as promised, the defendants simply stole the money. EDWARDS, JACOBS, and HANDLER-JACOBS caused the bulk of the funds to be laundered through various domestic and overseas bank accounts in Hong Kong, Barbados, the United Kingdom, and Sri Lanka held in the names of shell companies that they controlled. A portion of the proceeds was then kicked back to the brokers who had recruited the investors. Altogether, the defendants stole over $50 million from investors in the United States and several foreign countries.
* * *
JACOBS was arrested at Los Angeles International Airport in California on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Santa Ana, California, on December 12. HANDLER-JACOBS was arrested in Albuquerque, New Mexico, on December 11, 2016, and was presented in federal court before a U.S. Magistrate Judge in Albuquerque on December 12. LESTER was arrested in Mount Vernon, Washington, on December 12, 2016, and presented the same day in federal court before a U.S. Magistrate Judge in Seattle, Washington. GENDREAU was arrested on December 12, 2016, in Savanna, Illinois, and was presented in federal court before a U.S. Magistrate Judge in Rockford, Illinois, earlier today. EDWARDS and HO are currently at large.
The case is assigned to U.S. District Judge Paul G. Gardephe. Arraignment is scheduled for December 20, 2016, in federal court in Manhattan.
EDWARDS, 55, of Sri Lanka, JACOBS, 64, of Albuquerque, New Mexico, and HANDLER-JACOBS, 64, of Albuquerque, New Mexico are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; one count of conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years in prison; one count of conducting monetary transactions in unlawful funds, which carries a maximum sentence of 10 years in prison; one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; one count of impersonating employees of the United States, which carries a maximum sentence of three years; and aggravated identity theft, which carries a maximum sentence of two years in prison.
HO, 80, of Singapore, LESTER, 71, of Mount Vernon, Washington, and GENDREAU, 46, of Savanna, Illinois, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 10 years in prison; and one count of aggravated identity theft, which carries a maximum sentence of two years in prison. In addition, HO is charged with one count of conspiracy to impersonate employees of the United States, which carries a maximum sentence of five years; and one count of impersonating employees of the United States, which carries a maximum sentence of three years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of HSI and the FBI. Mr. Bharara also thanked the Federal Reserve Bank of New York for its ongoing cooperation in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Managing Partner of Bulk Mail Firm Admits Defrauding U.S. Postal Service of Nearly $750KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Shelly Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service, today announced that ROBERT KUSS, 54, of Cheshire, waived his right to be indicted and pleaded guilty yesterday in Hartford federal court one count of mail fraud stemming from his role in a scheme to defraud the U.S. Postal Service of nearly $750,000.
According to court documents and statements made in court, KUSS is the managing partner of Creative Marketing Group, LLC (“CMG”), a mail service provider in the business of sending bulk mailings. CMG has a Permit Imprint bulk mailing permit (“PI permit”) that allows the company to print postage indicia directly onto an envelope rather that affix a postage stamp or a meter impression to each piece of mail (the printed postage indicia tend to be pink printings on the upper right hand corner of an envelope).
Generally, a PI permit holder has an account from which the USPS debits the appropriate postage charge for each bulk mailing. To utilize its PI permit, a mailer generally drops off its bulk mailing at the office that maintains its permit, known as a Business Mail Entry Unit (“BMEU”) – in this instance the Bristol (Conn.) Post Office. There, the mailing is examined and accepted by BMEU postal employees. The USPS then debits the mailer’s account the appropriate amount for postage.
To save money, a bulk mailer may also transport the bulk mailing itself to a destination USPS facility to obtain lower postage rates rather than simply deliver the bulk mailing to the appropriate BMEU. To do so, a mailer must bring both the bulk mailing and a form known as Postal Service Form 8125 (“PS 8125 Form”) to the BMEU for verification. Once verified, the BMEU personnel debit the mailer’s account and fill out the PS 8125 Form with information about the bulk mailing, including the mailer’s permit number, the total number of pieces of mail and the total mail weight. BMEU personnel also affix a USPS stamp to the form. The mailer then takes the bulk mailing and the PS 8125 Form to the destination USPS facility for delivery. A USPS employee at the destination facility reviews the bulk mailing and the form to ensure they match and for completeness before accepting the mailing and the PS 8125 Form.
Between approximately July 2014 and March 2016, KUSS brought bulk mailings to destination USPS facilities with fraudulent PS 8125 Forms. KUSS had filled out and stamped the forms to appear as though the bulk mailings had been brought to and verified by the BMEU in Bristol, and as though the USPS had appropriately debited his advanced deposit account. In fact, KUSS had not brought the bulk mailings to the BMEU, the BMEU had not verified the mailings, and the USPS had not debited his advanced deposit account.
KUSS delivered at least 125 bulk mailings to destination USPS facilities around the country pursuant to this scheme. As a result, he sent 3,260,183 pieces of mail without paying for postage, and the USPS lost $749,573.
The charge of mail fraud carries a maximum term of imprisonment of 20 years. KUSS is scheduled to be sentenced by U.S. District Judge Robert Chatigny on April 17, 2017.
This matter is being investigated by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and John H. Durham.
Man Sentenced for Trafficking Huge Amount of MethRead the Press Release
CORPUS CHRISTI, Texas – A California man has been ordered to prison following his conviction for his part in a conspiracy to traffic 132 kilograms of methamphetamine through South Texas, announced U.S. Attorney Kenneth Magidson. Deandre Bennett, 57, pleaded guilty March 29, 2016.
Today, Senior U.S. District Judge Hayden Head sentenced Bennett to 135 months in federal prison to be immediately followed by four years of supervised release.
Members of the Kingsville Specialized Crimes and Narcotics Task Force encountered Bennett on Dec. 2, 2015 while he was travelling Northbound on U.S. Highway 77. A search of the tractor-trailer he was operating revealed more than 132 kilograms of methamphetamine hidden inside wooden pallets. Bennett admitted the drugs were headed to Corpus Christi.
The charges were the result of a joint investigation by Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, Kingsville Specialized Crimes and Narcotics Task Force, Kleberg County District Attorney’s Office, Customs and Border Protection and the U.S. Marshals Service.
Assistant U.S. Attorney Brittany Jensen is prosecuting the case.
Man Arrested on Peace Bridge with FirearmRead the Press Release
BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jibreel Williams, age 27, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that in the early hours of December 11, 2016, Williams was stopped in a vehicle on the Peace Bridge while trying to re-enter the United States after visiting the duty-free shop. The firearm was recovered during a border search of the vehicle.
The defendant made an initial appearance yesterday before U.S. Magistrate Judge Michael J. Roemer. Jibreel Williams is being held for a detention hearing scheduled for today before U.S. Magistrate Judge Jeremiah J. McCarthy at 1:30 p.m.
The criminal complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lynchburg Man Pleads Guilty to Bankruptcy FraudRead the Press Release
LYNCHBURG, VIRGINIA – A Lynchburg man faces up to five years in prison after pleading guilty yesterday to a federal bankruptcy fraud charge, according to United States Attorney John P. Fishwick Jr.
Randall K. Falwell, 56, of Lynchburg, Va., waived his right to be indicted and pled guilty yesterday to a one count Information charging him with bankruptcy fraud. At sentencing, Falwell faces a maximum possible sentence of up to five years in prison and/or a fine of up to $250,000.
“The bankruptcy laws of the United States are designed to help those in need get out of debt and emerge from dire circumstances,” United States Attorney Fishwick said. “Bankruptcy fraud is a real crime with real circumstances and those who commit these offenses should be warned, if you lie in your bankruptcy proceedings, we will prosecute you.”
According to evidence presented at yesterday’s hearing by Special Assistant United States Attorney Kari Munro, Falwell, knowingly and fraudulently made a false statement under oath and in relation to a Chapter 13 bankruptcy proceeding. Specifically, Falwell falsely claimed that he owned partial interests in real property without disclosing to the bankruptcy trustee that he had sold the properties some months earlier.
The investigation of the case was conducted by United States Trustee’s Office. Assistant United States Attorney Jennie L. M. Waering and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Logan County man admits accepting kickbacks as an employee of a subsidiary of Arch CoalRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today for his role in a kickback scheme, announced United States Attorney Carol Casto. Chadwick Lusk, 35, of Davin, entered his guilty plea to honest services mail fraud.
Lusk admitted that while he was employed as a purchasing agent at the Mountain Laurel Mining Complex, he defrauded a wholly-owned subsidiary of Arch Coal, the Mingo Logan Coal Company, of its right to honest services by receiving illegal cash kickbacks in a crib block kickback scheme. Crib blocks are used to provide roof support in an underground mine. Beginning around September 2009 and continuing until at least March 2014, Gary L. Roeher, who owned CM Supply, Co., paid Lusk a portion of the profits for the crib blocks that the Mingo Logan Coal Company purchased from CM Supply to use at Mountain Laurel. Roeher usually paid Lusk 7.5% of the crib block sales price. Roeher estimates he paid Lusk approximately $230,000 in cash kickbacks as part of the scheme, and Lusk agreed to pay $230,000 in restitution as part of his plea agreement.
Lusk faces up to 20 years in federal prison when he is sentenced on February 3, 2017.
The FBI, the Criminal Investigation division of the IRS, the United States Postal Inspection Service, and the West Virginia State Police conducted the investigation. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
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Local Law Enforcement Officers Honored for Commitment to Drug Abuse PreventionRead the Press Release
Two local police officers are being honored this week by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for their commitment to reducing drug abuse in their communities. The recipients of the 2016 Enrique S. Camarena Award are Officer Al Fear of the Cedar Rapids Police Department and Officer Dustin Lindaman of the Waterloo Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipients have gone above and beyond the call of duty in pursuit of a drug-free community:
- Through his commitment to reducing drug abuse within both the Northern and Southern Districts of Iowa, Officer Al Fear is a worthy recipient of this distinguished award. Over the past year, Officer Fear developed a robust heroin prevention initiative aimed at educating addicts, health care professionals, educators, students, law enforcement officers, and the general public on the dangers of opioid and heroin abuse. Officer Fear is passionate about preventing the spread of opioid and heroin addiction and making a difference in the lives of individuals addicted to opioids and heroin.
- Through his commitment to educating middle school students and their families about the dangers of drug abuse, Officer Dustin Lindaman is a worthy recipient of this distinguished award. In his position as School Resource Officer for Waterloo Central Middle School, Officer Lindaman has the unique opportunity to build positive relationships with students, to serve as a role model, and to have important conversations with students at a critical time in their development. Through these conversations, Officer Lindaman emphasizes the detrimental impact that drug abuse has on the student and his or her family.
Kevin W. Techau, United States Attorney for the Northern District of Iowa commented on this year’s award recipients, stating, “The communities these officers serve are safer because of their hard work and dedication. They richly deserve the honor of receiving the Enrique S. Camarena award. Officer Lindaman’s work highlights the enormous value of the School Resource Officer program, which places police officers in schools around the state working on drug abuse prevention while promoting school safety. Through his tireless efforts, Officer Lindaman has established a high level of trust with Central students, serving as both a role model to students and an important source of education and information about the dangers of drug abuse. Officer Fear, in conjunction with both law enforcement and community efforts, has led a strong effort to prevent and combat the prescription drug abuse and heroin epidemic across Easten Iowa.”
Darin T. Thimmesch, the Assistant Special Agent in Charge for the DEA also commented on this year’s award, stating, “The DEA is committed to working with our law enforcement partners at all levels to reduce the availability and abuse of illicit drugs in the communities we serve. We are honored to be a part of this distinguished award presentation in memory of fallen DEA Special Agent Enrique S. Camarena. Special Agent Camerena gave his life fighting against the powerful drug cartels in Mexico while trying to protect the country he served from evils of drug distribution and abuse. This award exemplifies the outstanding investigative efforts of these law enforcement officers in disrupting the illegal activities of the drug trafficking organizations operating in and around the Iowa City and Cedar Rapids communities, as well as preventing the further distribution of these highly addictive, deadly drugs.”
The Enrique S. Camarena Award is presented each year during Red Ribbon Week. Red Ribbon Week is an alcohol, tobacco, and drug prevention awareness campaign observed annually in the United States.
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Local Businessman Pleads Guilty to Wire Fraud, Money Laundering as Part of Investment Fraud SchemeRead the Press Release
COLUMBUS, Ohio – John Richard Blazer, 70, of Marion, Ohio, pleaded guilty in U.S. District Court to wire fraud and money laundering as part of an investment fraud scheme.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to the Statement of Facts in this case, from approximately January 2011 until August 2013, Blazer owned and operated several businesses in central Ohio, including The Ohio Company and The Ohio Company Loan Fund. He was also a partner in The Ohio Heritage Fund.
Blazer recruited investors by promising them that their money would be invested in one of his businesses, or in a real estate fund to purchase and rehabilitate homes in central Ohio, or in a gold mining operation in Africa.
Rather than investing the victims’ funds, Blazer used the money to pay for personal expenses and to pay off previous investors.
In total, he received at least $1 million from approximately 21 victims.
Blazer pleaded guilty to one count each of wire fraud and money laundering. Each crime is punishable by up to 20 years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
Leader of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
Plea Calls for Prison Sentence of 10 to 12 years
NEWARK, N.J. – A leader of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, U.S. Attorney Paul J. Fishman announced.
Rajohn Wilson, a/k/a “1090,” 25, of Newark, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.
Rajohn Wilson, who served as a “five-star general” of Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He is a younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang. Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.
The plea agreement requires Wilson to be sentenced to 10 to 12 years in prison, minus time served in jail on a related case, and five years of supervised release. Sentencing is scheduled for March 23, 2017.
U.S. Attorney Fishman credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Anthony Mahajan of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Wilson: Howard Brownstein Esq., Union City, New Jersey
KC Man Sentenced for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing two firearms.
Leon D. Stinnett, 28, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to nine years and six months in federal prison without parole.
Stinnett had pleaded guilty to being a felon in possession of two firearms. Stinnett admitted that he was in possession of a Jimenez 9mm pistol and a Glock .40-caliber pistol on Nov. 2, 2013.
Stinnett, driving a 2003 Honda Accord, attempted to flee from police officers to elude arrest. He was found a short time later at a location that was under police surveillance. Stinnett was arrested and officers searched his vehicle. They found the loaded Jimenez 9mm pistol in the driver’s seat and the loaded Glock .40-caliber pistol in the trunk of the car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Stinnett has two prior felony convictions for burglary and a prior felony conviction for robbery.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Immigration-Related Discrimination Claim Against Utah Staffing AgencyRead the Press Release
The Justice Department reached an agreement today resolving claims that 1st Class Staffing LLC, a staffing company based in Orem, Utah, discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation conducted by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), found that 1st Class Staffing’s Fontana, California, office routinely requested that non-U.S. citizens, but not U.S. citizens, provide specific immigration documents to establish their authority to work. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present from the lists of acceptable documents to prove their work authorization. It is unlawful for an employer to limit an employee’s choice of documentation because of their citizenship, immigration status or national origin.
Under the terms of the settlement agreement, 1st Class must pay for lost wages to the charging party whose complaint initiated the department’s investigation; pay $17,600 in civil penalties to the United States; participate in department-provided training on the anti-discrimination provision of the INA and be subject to departmental monitoring.
“Employers must ensure that their human resources, hiring and recruitment staff understand and implement proper hiring practices to avoid violating anti-discrimination laws,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “We commend 1st Class for its cooperation and commitment to removing unnecessary and unlawful employment barriers.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
1st Class Staffing Settlement AgreementGeorgia Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that William Curtis Oliver, 52, of Dover-Foxcroft, Maine, and formerly of Dougherty County, Georgia, pleaded guilty today in U.S. District Court to failing to register as a sex offender. He was indicted on October 14, 2016.
Court records reveal that in November 2012, the defendant was convicted of child molestation in Georgia. As a result of his conviction, the defendant was required to register as a sex offender and keep his registration current. In December 2015, the defendant moved to Maine and lived and worked in Guilford and Dover-Foxcroft. He failed to notify the sex offender registry in Georgia that he left Georgia and did not register in Maine. He was arrested on September 15, 2016.
He faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Marshal’s Service and the Dover-Foxcroft Police Department.
Fries Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
Roanoke, VIRGINIA – A Fries woman, who conspired with others to distribute methamphetamine in and around the Hillsville and Galax regions of Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Bianca Victoria Aroche, 23, of Fries, Va., pled guilty today to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. At sentencing, Aroche faces a maximum possible penalty of up to 40 years in federal prison and a mandatory minimum sentence of five years in federal prison.
“We will continue to work to stop the flow of methamphetamine into our communities,” United States Attorney Fishwick said today. “Methamphetamine addiction ruins lives and those who traffic in this drug must be stopped.”
According to evidence presented to the court by Assistant United States Attorney Ashley B. Neese, Aroche, and others, distributed methamphetamine in and around Hillsville and Galax beginning around the spring of 2014 and continuing until at least August 2014.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Galax Police Department, the Carroll County Sheriff’s Office and the Grayson County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Four Central Texas Human Smugglers Sentenced to Federal Prison for Alien SmugglingRead the Press Release
Four central Texas human smugglers have been sentenced to federal prison for their role in an operation where the criminal network made in excess of $1 million dollars by smuggling individuals into the United States from various parts of the globe, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio.
The four appeared in Austin late Friday afternoon before United States District Judge Lee Yeakel and received the following sentences:
- Alfredo Torres-Alvarez, 31-year-old undocumented alien residing in Austin, sentenced to 57 months imprisonment;
- Elvira Murrillo-Angel, 32-year-old undocumented alien residing in Sandia, TX, sentenced to 27 months imprisonment;
- Delia Catalina Angel, 31-year-old Austin resident, sentenced to two years imprisonment; and,
- Norma Parra, 32-year-old Austin resident, sentenced to one year imprisonment.
All four defendants pleaded guilty to one count of conspiracy to transport undocumented aliens. Per their plea agreements, Torres agreed to forfeit $282,000 and Murillo agreed to forfeit $200,000 to the Government.
“These sentences clearly illustrate the serious consequences faced by those who attempt to make money by exploiting others,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Human smugglers view their clients as nothing more than a payday, and have no qualms about using threats and violence to collect their smuggling fees.”
According to court documents and statements at sentencing, Delia Catalina Angel was the cell leader of a vast human smuggling organization with connections in Mexico, San Antonio and Austin. The organization successfully smuggled hundreds of undocumented individuals from Mexico, Guatemala, and Honduras into the United States.
This investigation was conducted by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) with the assistance of ICE Enforcement and Removal Operations, Austin Police Department and Travis County Sheriff’s Office. Assistant U.S. Attorney Michael Galdo prosecuted this case.
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Former Santa Fe Pharmacist Pleads Guilty and is Sentenced for Conviction on Misdemeanor Charge of Dispensing Testostorone Without a PrescriptionRead the Press Release
ALBUQUERQUE – David Nunez of Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to the misdemeanor offense of dispensing a controlled substance, testosterone, without a prescription. Nunez was a licensed pharmacist and the owner of a pharmacy in Santa Fe at the time he committed the crime.
Immediately following the entry of the guilty plea, a U.S. Magistrate Judge sentenced Nunez under the terms of his plea agreement to a three-year term of probation during which he may not re-apply for a pharmacist license or a DEA registration to dispense controlled substances. Nunez also was ordered to perform 100 hours of community service during his probationary term.
Nunez was charged in Nov. 2015, in a criminal complaint with unlawfully dispensing testosterone without a prescription, possession of a controlled substance (testosterone) with intent to distribute, and conspiracy. According to the criminal complaint, in 2011, when Nunez was a licensed pharmacist and owner of a pharmacy in Santa Fe, he leased space in his pharmacy to another person (lessee) with the understanding that the lessee would use the space to compound bio-identical hormone replacement creams for distribution by the lessee’s own company. Nunez agreed to supervise the lessee’s compounding operations and permitted the lessee to use his DEA registration number to order testosterone, a controlled substance, for use in the lessee’s compounding operation.
During today’s change of plea hearing, Nunez pled guilty to a misdemeanor information charging him with the unlawful dispensing of a controlled substance without a prescription. In his plea agreement, Nunez admitted leasing space to the lessee for the purpose of compounding medications. Nunez further admitted that in May 2011, he received more than a kilogram of testosterone at his pharmacy which had been ordered by the lessee’s employees using Nunez’s DEA registration number. Nunez provided the testosterone to the lessee even though he did not process any specific prescriptions for any patients for the testosterone and was not aware of any specific prescriptions for the medication.
The New Mexico Board of Pharmacy suspended Nunez’s pharmacist license in June 2015 as the result of a separate investigation and he subsequently sold his pharmacy.
This case was investigated by the Tactical Diversion Squad of the DEA’s Albuquerque office, the Food and Drug Administration and the New Mexico Board of Pharmacy. The case was prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Former Resident of Nevada and Montana Pleads Guilty to Corruptly Interfering with the Tax LawsRead the Press Release
A former resident of Montana and Nevada pleaded guilty today to one count of corruptly interfering with the administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael W. Cotter for the District of Montana.
According to court documents, Steven D. Pjevach filed false and fraudulent income tax returns using personal identifying information, including individuals’ names and social security numbers obtained through posting false help-wanted advertisements on Craigslist. Pjevach also opened and caused to be opened, and used and caused to be used, bank accounts in other individuals’ names to receive the fraudulently obtained tax refunds. Pjevach provided false information to the individuals whose accounts he used regarding the reason he was using their accounts, and advised one individual to disregard correspondence from the bank regarding the account. Finally, Pjevach created false and fraudulent Forms W-2, which he attached to the fraudulent returns in an effort to deceive the Internal Revenue Service (IRS).
Sentencing is scheduled for March 23, 2017. Pjevach faces a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Chad C. Spraker, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Program Director of Supplemental Educational Services Provider to Detroit Public Schools Pleads Guilty to FraudRead the Press Release
The former program director of supplemental educational services provider, Priority: My Education pleaded guilty today to federal program fraud, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty today before United States District Judge Bernard A. Friedman was Theodore Thomas Pride, III, 37 of Detroit.
According to court records, between 2011 and 2012, Theodore Pride III, as resident agent and program director of Priority: My Education, a company that had been approved by the State of Michigan to provide supplemental educational services to eligible students in Michigan, obtained at least $684, 644 from DPS through a scheme in which he submitted fraudulent invoices for payment to DPS for tutorial services that were never rendered to DPS students.
United States Attorney Barbara L. McQuade said, "People who defraud a school system are effectively stealing educational opportunities from children."
Pride faces up to 10 years in prison and fines of up to $250,000 when he is sentenced on April 11, 2017 at 11:00 am.
This case was investigated by agents of the FBI. This case is being prosecuted by Assistant United States Attorney Dawn N. Ison.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Former Postal Worker Pleads Guilty to Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former U.S. Postal Service employee pleaded guilty in federal court today to stealing mail.
Shannon N. Hill, 22, of Lee’s Summit, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges her with stealing mail.
According to today’s plea agreement, Hill took cash and gift cards from mail addressed to 33 victims in Kansas City, Raytown, and Parkville, Mo., from April 1, 2015, to March 31, 2016. The loss to date is a total of $795. The thefts occurred at the Raytown Station, the Barry Woods Carrier Annex, the Hodge Park Station and the Parkville Post Office.
Under federal statutes, Hill is subject to a sentence of up to five years in federal prison without parole and must pay restitution to the victims. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Service-Office of Inspector General