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30 January 2017
Kansas Man Sentenced to 52 Months for Exporting Firearms to Overseas Purchasers Using Hidden Marketplace WebsiteRead the Press Release
A Kansas man was sentenced today to 52 months in prison for his role in a scheme involving the illegal export of firearms from the United States using a hidden online marketplace, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Tom Beall of the District of Kansas.
Michael Andrew Ryan, aka Brad Jones and GunRunner, 36, of Manhattan, Kansas, previously pleaded guilty to six counts of exporting and attempting to export firearms illegally from the United States to individuals located in other countries on June 6, 2016, and was remanded into custody on Oct. 6, 2016. In addition to imposing today’s prison sentence, U.S. District Judge Daniel D. Crabtree of the District of Kansas ordered Ryan to forfeit all firearms and ammunition seized by law enforcement during the investigation.
In connection with his plea, Ryan admitted that he used the hidden internet marketplace Black Market Reloaded, a website hosted on the Tor network where users can traffic anonymously in illegal drugs and other illegal goods, to unlawfully export or attempt to export firearms from the United States to Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; Victoria, Australia. These goods included dozens of firearms, including pistols, revolvers, UZIs and Glocks, some from which the manufacturer’s serial numbers had been removed, altered or obliterated, as well as magazines and hundreds of rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division investigated the case with assistance from ATF’s National Investigative Division; U.S. Customs and Border Protection; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Manhattan and Riley County, Kansas, Police Departments. Assistant U.S. Attorney Greg Hough of the District of Kansas and Senior Counsel Marie-Flore Johnson of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Jalil Ibn Ameer Aziz Pleaded Guilty to Conspiracy to Provide Material Support and Resources to A Designated Foreign Terrorist Organization and Transmitting A Communication Containing A Threat to InjureRead the Press Release
HARRISBURG – Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI's Philadelphia Division announced today that Jalil Ibn Ameer Aziz, age 20, a U.S. citizen and resident of Harrisburg, Pennsylvania, pleaded guilty today before Chief United States District Court Judge Christopher C. Conner to conspiracy to provide material support and resources to a designated foreign terrorist organization and transmitting a communication containing a threat to injure.
According to U.S. Attorney Bruce D. Brandler, on December 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization (Counts 1 and 2). A superseding indictment was returned on May 18, 2016, which added Solicitation to Commit a crime of violence (Count 3) and transmitting a communication containing a threat to injure (Count 4).
According to the superseding indictment, from July 2014 to December 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment also alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. service members to followers and viewers of his Twitter account. The communication also contained threats to injure the service members, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz pledged his allegiance to the leader of ISIL and used at least 71 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a tactical/military style backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified straight edge knife, a thumb drive, medication, flashlights, a toothbrush, sunflower seeds, a lighter, nail clippers, fingerless gloves, a pocket watch and a black balaclava, which is like a ski mask and similar to those worn by ISIL supporters.
“Jalil Ibn Ameer Aziz conspired to provide material support to ISIL by aiding individuals in their pursuit of traveling overseas to join the designated foreign terrorist organization and by using social media to propagate ISIL’s threats to injure U.S. service members,” said Acting Assistant Attorney General McCord. “The National Security Division’s highest priority is counterterrorism, and we will remain vigilant in our efforts to hold accountable those who seek to provide material support to foreign terrorist organizations and threaten members of our military.”
United States Attorney Bruce D. Brandler said, “The security of the American people is the highest priority for our office and the Department of Justice. While we cannot eliminate terrorism completely, we can bring to justice those responsible for providing material support and resources to terrorist groups and for spreading hate and destruction in our communities and abroad. Thankfully, the defendant’s activities were disrupted by the FBI and the Joint Terrorism Task Force and justice will be served in this case.”
"As evidenced here, ISIL loyalists need not travel to the field of battle to threaten lives and do harm," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "An American citizen provided material support to terrorists from American soil, while enjoying all the rights and privileges scorned by ISIL. We are gratified that Mr. Aziz is being brought to justice for these acts."
The case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. Assistant United States Attorney Daryl F. Bloom and Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty provided in the statute for Count 1, Conspiracy to Provide Material Support and Resources to a Designated Foreign Terrorist Organization, is 20 years’ imprisonment, a $250,000 fine, a term of supervised release of up to life and a $100 special assessment. The maximum penalty for Count 4, Transmitting a Communication Containing a Threat to Injure, is five years’ imprisonment, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Jacksonville Man Who Buried His Dead Mother in Her Backyard so He Could Steal Her Social Security and Pension Benefits Sentenced to over Five Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Brian Lee Adams (57, Jacksonville) to five years and four months in federal prison for theft of government property and aggravated identity theft. As part of the sentence, the Court also entered a money judgment in the amount of $33,292.36, the proceeds of the offenses. Adams pleaded guilty on October 31, 2016.
According to court documents, Adams’s mother died in an unknown manner some time before July 4, 2014. To conceal her death and to ensure that he could continue to receive her social security and pension benefits, Adams buried his mother in the backyard of her residence in Green Cove Springs, Florida. He received and used those benefits until authorities received a tip and discovered his mother’s body in June 2015.
This case was investigated by the Social Security Administration – Office of the Inspector General, the United States Secret Service, the Department of Health and Human Services – Office of Inspector General, the Florida Department of Law Enforcement, and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Imperial, Pa., Woman Charged with Distributing and Possessing Child PornographyRead the Press Release
PITTSBURGH – A resident of Imperial, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of distribution and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
The five-count indictment, returned on January 24 and unsealed today, named Kaitlin Plascjak, 29, of Imperial, Pennsylvania as the sole defendant.
According to the indictment, on or about May 5, 2016, May 8, 2016 and June 28, 2016, Plascjak distributed images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about August 18, 2016, Plascjak knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 80 years in prison, a fine of $1,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Allegheny County District Attorney’s Office and the Allegheny County Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Human Trafficking Fugitive on ICE’s Top 10 List Extradited to United States from MexicoRead the Press Release
Raul Granados-Rendon, who had been on ICE’s most wanted list since 2010, was arrested in September 2016 in Mexico, following a joint investigation between ICE’s Homeland Security Investigations (HSI) Mexico City, HSI New York and the Mexican Federal Police. He was extradited to the United States on Friday and he was arraigned Saturday, at the federal courthouse in Brooklyn, on a 21-count indictment charging him with racketeering and racketeering conspiracy involving predicate acts of sex trafficking by force, fraud and coercion; sex trafficking of minors; interstate prostitution; alien smuggling and related offenses. Granados-Rendon was ordered detained by U.S. Magistrate Judge Arlene Lindsay.
The extradition and indictment was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York.
The extradition, the latest chapter in our multi-year case against the Granados sex trafficking organization, again demonstrates our resolve to seek justice for victims of modern day slavery. We will not rest until those who seek to profit from the forced slavery of others are brought to justice,” stated United States Attorney Capers.
“We at HSI can think of no better way to end Human Trafficking Awareness month than with the extradition of Raul Granados-Rendon, who has been on our most wanted list for numerous crimes including sex trafficking,” said Special Agent-in-Charge Melendez of HSI New York. “This individual is just one of many who allegedly helped run a sex trafficking organization that was responsible for smuggling numerous women into the United States where they were forced to work as prostitutes against their will. We will not rest until all of these individuals face the justice they deserve.”
As set forth in extradition affidavits and other court papers, between October 1998 and June 2011, members of the Granados sex trafficking organization, including Raul Granados-Rendon and others, illegally smuggled young women into the United States where they were forced to work as prostitutes in New York City and elsewhere in the United States. The organization collected profits from the victims’ activities. When victims refused to work or resisted, members of the organization beat and sexually assaulted them, and threatened the victims’ family members in Mexico, including the victims’ children.
HSI special agents have identified and rescued over 20 additional victims – all Mexican nationals – and arrested over a dozen additional traffickers or smugglers, all members or associates of the Granados family. Several victims were sexually assaulted by their traffickers, while others were physically assaulted. All the victims said the traffickers threatened to harm their family members.
To date, 13 members of the Granados organization have been indicted in the Eastern District of New York on sex trafficking charges. Raul Granados-Rendon was the last fugitive to be arrested and extradited to face the charges.
In announcing the extradition and arraignment, U.S. Attorney Capers commended the HSI’s New York Office, the HSI Mexico Attaché Office and the Department of Justice’s Office of International Affairs, the State Department, and the New York City Police Department for their assistance and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, he faces a maximum sentence of life in prison.
Since 2009, the Department of Justice and HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the U.S.-Mexico border, bringing human traffickers to justice, reuniting victims with their children and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of more than 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers. The extraditions in this case are the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 70 defendants in sex trafficking cases and provided assistance to more than 135 victims, including 39 minors. In addition, through the Eastern District of New York’s anti-trafficking program, 18 children have been reunited with their victim-mothers.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Taryn Merkl and Jennifer M. Sasso are in charge of the prosecution.
The Defendant:
RAUL GRANADOS RENDON
Age: 30
Tenancingo, Mexico
E.D.N.Y. Docket No. 11-CR-557
Hartford Crack Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on January 27, 2017, EDUARDO ZAYAS, also known as “Za,” 38, of East Hartford, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for possessing crack cocaine and a firearm.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
On May 15, 2015, Hartford Police arrested ZAYAS after he traveled to a parking lot to meet his drug supplier who was in possession of approximately 320 grams of crack. A subsequent search of an apartment on New Britain Avenue in Hartford that was connected to ZAYAS revealed a .25 caliber handgun, a magazine with four live .25 caliber rounds, approximately 52 grams of crack, items used to process and package narcotics, and $4,120 in cash.
ZAYAS has been detained since his federal arrest on June 15, 2015. On May 5, 2016, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”).
Judge Bolden also ordered ZAYAS to forfeit a 2005 Acura RL, a 2002 GMC Denali, and the cash that was seized at the time of his arrest in May 2015.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Glocester Restaurant Owner Convicted on Federal Arson, Wire Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence on Friday convicted Daniel E. Saad, 51, of Spencer, Mass., of devising and executing a scheme to burn down his Glocester, R.I., restaurant, Snow’s Clam Box Restaurant and Pub, and then attempting to collect on an insurance policy worth nearly one million dollars.
The jury convicted Saad on one count of arson, one count of use of fire to commit wire fraud, and two counts of wire fraud. The jury found that Saad set fire to his business shortly after 5:00 a.m. on November 30, 2014, and then initiated insurance claims via email later the same day and on the following day.
According to the government’s evidence presented during a three-week trial, Saad, who owed banks, private lenders and venders nearly $2.5 million dollars, entered the building through an unlocked rear door, spread gasoline in and around a bar area and ignited the gasoline before fleeing the building. A woman who was residing in an apartment above the restaurant reported the fire after fleeing from the building.
Saad’s conviction is announced by United States Attorney Peter F. Neronha; Mickey Leadingham, Special Agent in Charge of the Boston Field Division of ATF; Ann C. Assumpico, Superintendent of the Rhode Island State Police; Rhode Island State Fire Marshal John Chartier; and Glocester Police Chief Joseph S. DelPrete.
United States Attorney Peter F. Neronha commented, “Acts of arson pose a tremendous public safety threat, to the public generally and to first responders. This case is no exception. That this defendant would deliberately burn a building he owned to the ground, with his tenant living in the building and present at the time, demonstrates his utter disregard for the safety of others. He now faces at least a decade in federal prison for this behavior. Every day is well-deserved.”
According to the government’s evidence, during interviews with law enforcement, Saad on two occasions told investigators he was at his home in Massachusetts when the fire occurred. During a subsequent interview he told investigators that he was at his estranged wife’s home in Webster, Mass. On two occasions during interviews with state and federal investigators, Saad’s wife corroborated Saad’s account. However, after being summoned to appear before a federal grand jury and again when testifying during Daniel Saad’s trial, she changed her story and admitted that Daniel Saad had asked her to provide an alibi for him for the night of the fire. She testified that he was not with her that night.
Cellular data collected and analyzed by law enforcement placed Saad’s cellphone in very close proximity to his restaurant at the time the fire began.
Saad, who had been free on unsecured bond since his arrest on March 31, 2016, was ordered detained in federal custody following the return of the jury’s guilty verdicts. Saad is scheduled to be sentenced on April 27, 2017, by U.S. District Court Judge John J. McConnell, Jr., who presided over the trial.
Arson and wire fraud are punishable by statutory penalties of up to 20 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years; use of fire to commit wire fraud is punishable by statutory minimum mandatory penalty of 10 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years.
The matter was investigated by ATF, Glocester Police Department, Rhode Island State Fire Marshal’s Office and Rhode Island State Police.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island Department of Attorney General and the FBI’s Cellular Analysis Survey Team for their assistance in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Pepperell Man Who Fled to Canada on Snowmobile Pleads Guilty to Bankruptcy FraudRead the Press Release
BOSTON – A former Pepperell man pleaded guilty today in U.S. District Court in Worcester in connection with concealing $3–$4 million in his bankruptcy filings.
Cyril Gordon Lunn, 68, pleaded guilty today to concealing assets from his bankruptcy creditors and making a false statement under the penalty of perjury in one of his bankruptcy schedules. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 3, 2017.
From 1985 until 2001, Lunn was the owner of CY Realty Corporation, a construction and land development business in Pepperell. 1998 to September 2001, Lunn transferred a variety of assets belonging to CY Realty and himself, including $3-$4 million in cash, from the United States to Canada, where he deposited some or all of the funds in safe deposit boxes. In the fall of 2001, Lunn filed for bankruptcy for CY Realty and himself; however, he failed to disclose in either bankruptcy case the asset transfers, including the millions in cash. Lunn’s actions were discovered after he testified about the asset transfers during a 2004 Canadian civil lawsuit. In March 2005, Lunn rented a snowmobile in Maine and fled across the border into Canada where he remained a fugitive until he was extradited from Canada in 2016.
Lunn also pleaded guilty to making a false statement in one of his bankruptcy filings by falsely stating that he had closed all safe deposit boxes by September 2001, when in fact, he had failed to disclose a safe deposit box that he had opened at the Granite Bank in New Hampshire, and which he continued to access after the bankruptcy filing.
The charging statutes provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit is prosecuting the case.
Former Belleville Resident Sentenced for Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on January 27, 2017, Eric M. Swancutt, 39, formerly of Belleville, IL, was sentenced for Receipt of Child Pornography and Possession of Prepubescent Child Pornography. Swancutt was sentenced to a term of imprisonment of 97 months on each count, to run concurrently, to be followed by a 10 year term of supervised release on each count, also to run concurrently. Swancutt was also ordered to a pay a fine of $300 and a $300 special assessment. Swancutt had been in custody since his arraignment on June 24, 2016.
The charges arose when, on October 23, 2015, a Compaq Presario laptop computer was seized from the residence that Swancutt previously shared with other individuals in Belleville. A forensic review of the laptop computer revealed that it contained image and/or video files of child pornography, many of which were of prepubescent children. The forensic review also revealed that on or about July 18, and August 19, 2015, the defendant received image and/or video files of child pornography, including, but not limited to, the video files charged in the Indictment, via the Internet.
On June 21, 2016, Swancutt provided a voluntary statement in which he admitted accessing and viewing child pornography. Swancutt also admitted viewing the child pornography on the
laptop computer, and that he had downloaded the child pornography while living in the Belleville residence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 Aresources.@
The case was investigated by the Belleville Police Department and the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
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Former Alburgh Selectboard Member and His Wife Sentenced to JailRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that former Alburgh Selectman, Bernard Savage, and his wife, Patricia Savage, both of Alburgh, were sentenced today in the United States District Court in Burlington. U.S. District Court Judge William K. Sessions III sentenced Bernard Savage, 57, to 15 months in prison, and Patricia Savage, 57, to one month in prison. Bernard was also ordered to forfeit $75,000.00 to the government, required to pay a fine of $5000.00 and will be subject to a three-year term of supervised release upon completion of his sentence. Judge Sessions ordered Patricia to start serving her sentence immediately. The Court ordered Bernard to surrender to the Bureau of Prisons on March 7, 2017, to begin serving his sentence.
According to court documents, in August 2014, the Vermont Drug Task Force began an investigation into Bernard Savage for his involvement in distributing powder cocaine and oxycodone. In connection with that investigation, a confidential informant working with the Task Force participated in seven controlled purchases of either oxycodone or powder cocaine from Bernard and/or his wife Patricia. Bernard’s interactions with the CI were recorded and during one meeting, Bernard made statements such as: “I deal coke, I deal pills, I deal pot. I do all that shit.” “I bet you I’ve pumped out about twenty-five hundred pills in the last two weeks.” “I got pills. I got coke, I got pot. I got everything you want. I’m like a walking drugstore.”
On July 1, 2015, law enforcement executed a search warrant at the Savage residence in Alburgh which recovered, among other things, 103 firearms, cocaine, a variety of opiate pills (oxycodone, morphine, hydrocodone and percocet), marijuana, approximately $20,000 in cash, scales, various cell phones, and the remnants of a meth lab. On September 10, 2015, a grand jury sitting in Burlington indicted Savage with conspiracy to distribute oxycodone and cocaine, five counts of distribution of oxycodone and/or cocaine and a count of being a user of a controlled substance in possession of a firearm. The same grand jury later charged Bernard and Patricia with conspiracy to distribute oxycodone and cocaine, distribution of oxycodone and/or cocaine and possession of a firearm by a user of a controlled substance. On April 25, 2016, Savage entered into a plea agreement with the government in which he agreed to plead guilty to conspiracy to distribute cocaine and oxycodone, and agreed to immediate entry of a preliminary order of forfeiture for a money judgment of $75,000, as property constituting or derived from the proceeds obtained as a result of his drug trafficking.
The case was investigated by the DEA, Vermont Drug Task Force and the FBI.
Bernard Savage is represented by Karen Shingler. Patricia Savage is represented by Norman Blais. The United States is represented by Wendy Fuller.
Former Aide at a Prince George’s County Elementary School Pleads Guilty to 15 Counts of Production of Child PornographyRead the Press Release
Greenbelt, Maryland –Deonte Carraway, age 22, of Glenarden, Maryland, pleaded guilty today to 15 counts of sexual exploitation of a minor to produce child pornography, involving 12 minor victims ranging in age from nine to 13 years old.
The guilty plea was 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; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Deonte Carraway abused at least 12 child victims,” said U.S. Attorney Rod J. Rosenstein. “Fortunately, an alert relative checked a child’s smartphone, found an inappropriate photo and called the police. That call may have prevented more children from being abused.”
“I am extremely proud of the collaborative effort put forth by the FBI Maryland Child Exploitation Task Force in order to ensure this defendant was brought to justice and will no longer be able to terrorize or threaten children again,” said Special Agent Gordon B. Johnson of the FBI’s Baltimore Division. “Knowing the defendant will serve the next 60-100 years in federal prison, signals that the FBI and our partners will not tolerate such behavior. Our community just got a lot safer today.”
“Carraway violated the public’s trust by putting himself in a position to harm children. One of the worst crimes a person can commit is when the victim is an innocent child. I am particularly pleased by the collaboration between the Prince George’s County Police department, the Federal Bureau of Investigation, the United States Attorney’s Office, and the Prince George’s County State’s Attorney’s Office in bringing him to justice,” said Prince George’s County Police Chief Hank P. Stawinski.
“I would like to thank the U.S. Attorney’s Office for their efforts that have ensured that Mr. Carraway is being held accountable for his actions,” Alsobrooks said. “I also want to thank them for the continued collaboration with our office as we work towards our prosecution of Mr. Carraway, which will commence following the conclusion of his case in federal court.”
According his plea agreement, between September 2015 and February 2016, Carraway was an unpaid Dedicated Assistant at a Prince George’s County elementary school. Prior to becoming a Dedicated Assistant, Carraway served as a paid teacher’s assistant at the elementary school since 2014. Carraway also directed a children’s choir at a Prince George’s County church. Through these roles, Carraway gained the trust of parents who entrusted their children to Carraway’s care in their residences.
Carraway admitted that between at least October 2015 and February 2016, he engaged in sex acts with children between the ages of nine and 11 years old, using a cellular phone to record the sexual acts. Carraway also directed the children to engage in sex acts with each other, recording those acts on cellular phones, as well. Carraway directed the children to record sexual acts and provided the victims with cellular phones to use for that purpose. Carraway reached out to minor males and encouraged them to provide Carraway with images and videos of children engaged in sexually explicit conduct. Carraway also sent his child victims images of himself exposing his penis and engaging in sexually explicit conduct, as well as images of other children engaged in such acts. Carraway admitted that he founded a club with children and requested that children who wanted to join the club send Carraway sexually explicit images of themselves via cell phone messenger applications.
Carraway and the government have agreed that if the Court accepts the plea agreement Carraway will be sentenced to between 60 and 100 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for June 5, 2017 at 9:30 a.m. Carraway has been detained since his arrest on February 5, 2016. Related charges filed in Prince George’s County Circuit Court are still pending.
The case was investigated by the FBI Maryland Child Exploitation Task Force (MCETF) and the Prince George’s County Police Department. The task force was created in 2010 to combat sex crimes involving children and is made up of members from ten state and federal law enforcement agencies.
The 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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner, who are prosecuting the case.
Final Defendant Pleads Guilty in Rutherford County JailCigs InvestigationRead the Press Release
John Vanderveer, 59, of Marietta, Georgia, pleaded guilty today in United States District Court to federal charges of obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
Vanderveer was indicted in May 2016 along with his nephew, Robert Arnold, the former Sheriff of Rutherford County and former Chief Administrative Deputy, Joe L. Russell II, for their roles in the formation and operation of JailCigs, LLC. The indictment alleged that the defendants enriched themselves by selling electronic cigarettes, through JailCigs, LLC, to inmates at the Rutherford County jail, while concealing and misrepresenting Arnold and Russell’s ownership of the business, and paying Arnold commission payments that were in fact owed to Rutherford County.
In the hearing before Chief U.S. District Judge Kevin H. Sharp, Vanderveer admitted that he, along with Robert Arnold and Joe Russell II, formed JailCigs, LLC on October 3, 2013, and created a business plan wherein they would sell electronic cigarettes to inmates confined to the Rutherford County Jail and market the products to other jails throughout the country. Vanderveer also admitted that he later told the Tennessee sales representative for JailCigs to destroy her commission sheets so the company could provide fraudulent versions that would show the payments going to her, rather than to Sheriff Arnold. Vanderveer also admitted that he received $49, 545.50 from the sale of JailCigs to inmates at the Rutherford County Jail.
Under the terms of the plea agreement, the recommended guideline range is 18-24 months in prison. Vanderveer will also pay restitution to Rutherford County in the amount of $52,500. Vanderveer will be sentenced on May 19, 2017.
Arnold and Russell have pleaded guilty to wire fraud, honest services fraud, and extortion under color of official right and are awaiting sentencing.
This case was investigated by the Tennessee Bureau of Investigation and the FBI. Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee and Trial Attorney Mark Cipolletti of the Department of Justice’s Public Integrity Section are prosecuting the case.
Final Defendant Pleads Guilty in Massive Conspiracy to Commit Tax Fraud in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN —Today, Acting United States Attorney Andrew Birge announced that Diallo Dotson, formerly of Battle Creek, Michigan, entered a plea of guilty in federal district court to conspiring with Derrick J. Gibson to file false and fraudulent federal income tax returns with the Internal Revenue Service.
In February 2016, a federal grand jury returned an Indictment charging 34 defendants with federal conspiracy for their roles in a conspiracy to defraud the Internal Revenue Service through the filing of false federal income tax returns claiming more than $22 million in false and fraudulent federal income tax refunds. A multi-year joint investigation led by the Internal Revenue Service, Veterans Affairs – Office of the Inspector General, United States Postal Inspection Service, the Bureau of Alcohol Tobacco and Firearms, Department of Homeland Security, Battle Creek Police Department, Albion Police Department, Calhoun County Sheriff’s Department, and Michigan State Police resulted in the federal charges.
The Indictment alleged that the defendants utilized other individuals’ personal identification information -- obtained in part from patients and employees of the Battle Creek Veterans Affairs Medical Center and from inmates of the Michigan Department of Corrections -- to file false tax returns. To date, 33 of the 34 defendants charged with connspiring to defraud the Internal Revenue Service have entered pleas of guilty. One defendant, Romell Bolden, was dismissed from the indictment when his mother, co-defendant Simone Watkins, admitted that she and Derrick Gibson filed the false federal income tax returns in his name.
DERRICK J. GIBSON
Plea of Guilty on August 16, 2016
Sentenced on January 6, 2017 to 120 months in prison and restitution of $16,000,000CHARMICA GRIFFIN
Plea of Guilty on October 4, 2016
Scheduled for sentencing on February 8, 2017STEPHANIE T. BAKER
Plea of Guilty on October 7, 2016
Scheduled for sentencing on February 16, 2017LATIA M. WILLIAMS, former employee of Battle Creek Veterans Affairs Medical Center
Plea of Guilty on November 18, 2016
Scheduled for sentencing on April 13, 2017ALVIN E. STEPHENSON II, former employee of Battle Creek Veterans Affairs Medical Center
Plea of Guilty on November 21, 2016
Scheduled for sentencing on April 13, 2017SANDRIA M. BLAKLEY, former employee of Battle Creek Veterans Affairs Medical Center
Plea of Guilty on November 29, 2016
Scheduled for sentencing on April 20, 2017EDWARD WARDEN, JR.
Plea of Guilty on May 4, 2016
Sentenced on October 31, 2016, to 30 months in prison and restitution of $110,004CHANEL MCLENNEY
Plea of Guilty on December 7, 2016
Scheduled for sentencing on April 27, 2017DARWIN GIBSON
Plea of Guilty on November 4, 2016
Scheduled for sentencing on April 3, 2017BOBBY CRABTREE , Michigan Department of Corrections inmate
Plea of Guilty on May 17, 2016
Sentenced on October 11, 2016, to 30 months in prison consecutive to State sentences already being served and restitution of $24,205DEQYNN GIBSON
Plea of Guilty on October 26, 2016
Scheduled for sentencing on March 7, 2017DARRIEN GIBSON
Plea of Guilty on October 24, 2016
Scheduled for sentencing on March 7, 2017ROCHELLE R. VELASQUEZ
Plea of Guilty on July 11, 2016
Sentenced on November 16, 2016, to 2 years of probation and restitution of $69,156SCHERRIE P. MCNUTT
Plea of Guilty on April 26, 2016
Sentenced on October 11, 2016, to 18 months in prison and restitution of $188,398DEVOINE GIBSON
Plea of Guilty on November 14, 2016
Scheduled for sentencing on April 10, 2017PRENTIS H. GIBSON
Plea of Guilty on October 11, 2016
Scheduled for sentencing on February 16, 2017LAMONT JOYNER
Plea of Guilty on November 28, 2016
Scheduled for sentencing on April 27, 2017SHAMEIKA N. CARR
Plea of Guilty on November 29, 2016
Scheduled for sentencing on May 3, 2017CHARLEETA CORK
Plea of Guilty on December 8, 2016
Scheduled for sentencing on May 15, 2017KEITH CORK
Plea of Guilty on November 29, 2016
Scheduled for sentencing on May 3, 2017MAIYA R. JACKSON
Plea of Guilty on July 22, 2016
Sentenced on October 19, 2016, to time served (4 months and 3 days)SHAWN MCKNIGHT, Michigan Department of Corrections inmate
Plea of Guilty on May 13, 2016
Sentenced on October 5, 2016, to 12 months in prison consecutive to State sentences already being servedDAVID HAYMER, Michigan Department of Corrections inmate
Plea of Guilty on March 25, 2016
Sentenced on October 5, 2016, to 18 months in prison consecutive to State sentences already being served and restitution of $34,684DIALLO DOTSON
Plea of Guilty on January 27, 2017
Scheduled for sentencing on May 22, 2017ROMELL BOLDEN
Dismissed from indictmentLABRISHA PORTER
Plea of Guilty on November 1, 2016
Scheduled for sentencing on March 16, 2017KYPREE TAYLOR
Plea of Guilty on November 10, 2016
Scheduled for sentencing on April 3, 2017ROSEMARY BOYD
Plea of Guilty on October 5, 2016
Scheduled for sentencing on February 9, 2017PATRICIA RIDDLE-MCCLINTON
Plea of Guilty on December 7, 2016
Scheduled for sentencing on May 1, 2017JOSEPH JEREMY JOHNSON, Michigan Department of Corrections inmate
Plea of Guilty on June 2, 2016
Sentenced on October 31, 2016, to 24 months in prison consecutive to State sentences already being served and restitution of $34,644KISHA N. EVANS
Plea of Guilty on November 14, 2016
Scheduled for sentencing on April 10, 2017RASHALL FORD
Plea of Guilty on November 2, 2016
Scheduled for sentencing on March 16, 2017SIMONE WATKINS
Plea of Guilty on January 26, 2017
Scheduled for sentencing on May 25, 2017ROMARO CARSWELL
Plea of Guilty on November 30, 2016
Scheduled for sentencing on April 20, 2017Acting United States Attorney Birge stated, “This conspiracy involved a wide array of individuals, including three federal employees, who believed that they could steal money from the Internal Revenue Service over a period of years with impunity. But they found out that the Internal Revenue Service is very good at finding those who use the tax system to steal from the government and that my office will hold them responsible.”
This case was prosecuted by Assistant United States Attorney B. Rene Shekmer.
END
Federal Prosecutors Charge Birmingham CPA in $11 Million EmbezzlementRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a Birmingham man in connection with an $11 million embezzlement scheme from a Shelby County scrap metal brokerage company where he was the chief financial officer, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger Stanton.
In a five-count information filed in U.S. District Court, the U.S. Attorney’s Office charged THOMAS L. HINSON JR., 69, with five counts of wire fraud for depositing checks stolen from Strickland Trading Inc., where he worked as CFO, into the account of Strickland Trading Company, LLC, a company Hinson formed for the purpose of perpetrating his scheme.
The five wire fraud counts represent five of the more than 225 checks totaling more than $11.2 million that were intended for Strickland Trading Inc., but which Hinson deposited into his Strickland Trading Company, LLC, account, between April 2007 and April 2016, according to the information. The defendant used the money he embezzled from Strickland Trading Inc. over the years to pay expenses and purchase real estate, automobiles, and other assets for himself, his family and friends.
In conjunction with the charges, prosecutors filed a plea agreement with Hinson in which he acknowledges the embezzlement and agrees to plead guilty to the fraud charges. He also agrees to pay restitution of $11.2 million and to forfeit his interest in properties in Huntsville, Birmingham, Virginia Beach, Va., Lutz. Fla., and Sevierville, Tenn.
According to the court documents, Hinson conducted his scheme as follows:
Hinson was a certified public accountant in private practice who worked for Strickland Trading Inc. from 1991 to April 2016. In 2000, he began working as Strickland Trading Inc.’s CFO. In April 2007, Hinson filed documents with the State of Alabama creating Strickland Trading Company, LLC, and provided the name and address of a friend in Madison County as its organizer so he could conceal his own association with the new company.
Using the similarity in the names of the two companies, Hinson took checks mailed to Strickland Trading Inc. by its customers and deposited the checks into his Strickland Trading Company, LLC, account for his personal use. He made false entries in the financial records of Strickland Trading Inc., prepared false financial statements and made other false representations to Strickland Trading Inc. corporate officers to conceal his embezzlement.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney George Martin is prosecuting.
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Fairport Man Pleads Guilty to Violating the Lacey ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Collalto, 50, of Fairport, NY, pleaded guilty to four violations of the Lacey Act (interstate transport or receipt of illegally taken wildlife) and was sentenced to four years probation, 300 hours of community service and ordered to pay a $5,000 fine by U.S. District Judge Charles J. Siragusa.
According to Assistant U.S. Attorneys Craig R. Gestring and Tiffany H. Lee, who handled the case, the defendant was a reptile enthusiast and collector who maintained a collection of snakes in his residence. In order to augment and improve his snake collection, Collalto would sometimes trade, barter, buy, or sell snakes and collect snakes in the wild and bring them back to his residence. The defendant’s conviction involves four specific incidents: • Between April 30, 2011, and June 15, 2011, the defendant traveled from his home in Fairport to a large, regional reptile show and exhibition in Hamburg, Pennsylvania. Through a trade, Collalto received one Northern pine snake, a threatened species under New Jersey law which was taken illegally under the laws of New Jersey.
• Between May 1, 2011, and June 1, 2011, the defendant drove from Fairport to southern New Jersey and collected one gravid corn snake, an endangered species under New Jersey law.
• Between December 1, 2011, and December 20, 2011, Collalto received three California mountain kingsnakes, shipped by commercial parcel delivery service, that came from a supplier in Oregon. The snakes were collected illegally in Oregon.
• Between June 1, 2012, and July 1, 2012, the defendant drove from Fairport to southern New Jersey and collected one gravid Coastal Plains milk snake, a species of special concern under New Jersey law.The plea and sentencing are the result of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent-in-Charge, Northeast Region.
Executor of Estate Pleads Guilty to Fraud in Sale of CondoRead the Press Release
TOPEKA, KAN. B A Wabaunsee County woman who was the executor of her mother’s estate pleaded guilty Monday to fraud in the sale a South Padre Island condo, U.S. Attorney Tom Beall said.
Julie D. Woodland, 55, Maple Hill, Kan., pleaded guilty to one count of interstate transportation of funds obtained by fraud. In her plea, she admitted she served as trustee of trusts set up by her parents, Stephen W. Dibble and Elaine R. Dibble. It was her parents’ intent that proceeds of the trusts be shared equally among Woodland and her siblings, Lance A. Dibble and Stan Dibble. Woodland also was executor of her mother’s estate.
Woodland sold a condo in Texas belonging to the trust for $270,000. She distributed half the proceeds to her brother, Stan Dibble, and she kept the rest. Her brother, Lance Dibble, requested an accounting of the trust funds, but she refused to provide the information.
Sentencing is set for May 8. She faces up to 10 years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Errol Woman Convicted of Making False Statements to the U.S. Department of AgricultureRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that on January 26, 2017, a jury found Suzanne Brown, age 51, of Errol, New Hampshire, guilty of twelve counts of making a material false statement to a federal agency in violation of Title 18, United States Code, Section 1001(a)(2), after a five-day trial in the United States District Court for the District of New Hampshire.
The trial began on Wednesday, January 18, 2017 and ended with the jury’s verdict on January 26, 2017. The guilty verdict means that the jury found that on twelve occasions Brown made false statements and representations in documents submitted to the United States Department of Agriculture (“USDA”). Brown, acting as Executive Director of the New Hampshire Institute of Agriculture and Forestry (“NHIAF”), submitted documents certifying that NHIAF had paid thousands of dollars to employees for services rendered. These statements were made in order to draw down funds from a USDA Rural Business Enterprise Grant. The statements were false because NHIAF had not paid the employees for their services. In nine of the twelve submissions to the USDA, Brown created fraudulent invoices purportedly prepared by one or more employees outlining the services they performed and money they were owed.
Brown’s sentencing before United States District Court Chief Judge Joseph N. LaPlante is scheduled for May 11, 2017.
The case was investigated by the United States Department of Agriculture Office of Inspector General and was prosecuted by Assistant United States Attorneys Seth Aframe and Georgiana Konesky. Former Assistant United States Attorney Nick Abramson previously was involved in the matter.
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Eagle Butte Woman Charged with Theft from Indian Tribal OrganizationRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Theft from Indian Tribal Organization.
Shanon LeCompte, a/k/a Shanon Morgan, age 41, was indicted on January 19, 2017. She appeared before U.S. Magistrate Judge Mark A. Moreno on January 24, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 31, 2016, and October 22, 2016, LeCompte willfully and knowingly stole, embezzled and converted to her own use money and funds belonging to an Indian Tribal Organization, the Lakota Thrift Mart, in an amount greater than $1,000.
The charge is merely an accusation and LeCompte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
LeCompte was released on bond pending trial. A trial date has not been set.
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Dover Man Sentenced for Role in Interstate ProstitutionRead the Press Release
CONCORD, N.H. – Edmond A. Mitchell, 37, of Dover, New Hampshire, was sentenced to 52 months in prison in United States District Court for the District of New Hampshire for his role in interstate prostitution, announced United States Attorney Emily Gray Rice.
According to court records and statements in court, on August 29, 2014, Mitchell was involved in bringing two women from New Hampshire to Portland, Maine, to engage in prostitution. Mitchell arranged for a third party to drive him and the two women to Portland, Maine, and Mitchell rented two hotel rooms in Portland, Maine. The women posted ads on Backpage.com offering “escort services” in the Portland, Maine, area and they provided some or all of the proceeds from their prostitution activities in Maine to Mitchell.
On September 15, 2016, Mitchell pleaded guilty to aiding and abetting transportation for prostitution.
This case was investigated by Homeland Security Investigations of the Department of Homeland Security and the Hampton, New Hampshire, Police Department. It was prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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District of Columbia Man Sentenced to 20 Months in Prison for Committing Environmental CrimeRead the Press Release
James Powers, 59, of Falls Church, Va., was sentenced today to 20 months in prison to be followed by 36 months of supervised release after earlier pleading guilty to violating the Clean Air Act for his role in a scheme to improperly remove asbestos from a historic building in the District of Columbia.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips of the District of Columbia.
Powers pleaded guilty on September 7, 2016, to a charge of failure to remove asbestos prior to renovation. He was sentenced by the Honorable Amy Berman Jackson. Powers was also sentenced to perform 250 hours of community service.
Asbestos, a once-popular fireproofing insulation, is now known to cause lung cancer, asbestosis and mesothelioma in people who inhale the fibers released when asbestos is disturbed. Congress has determined that there is no safe level of exposure to asbestos. The Clean Air Act requires that renovation in asbestos-containing properties follow specific protocols designed to safely remove asbestos from the property prior to any renovation or demolition activity, so as not to expose workers to the risk of deadly respiratory diseases.The development project at issue involved renovating the historic Friendship House, located at 619 D Street SE in Washington, D.C., into condominiums, a development known as the Maples. According to a statement of offense submitted as part of the guilty plea, in March 2010, Powers formed a partnership with a local real estate development firm to purchase and renovate the property. An asbestos survey of the property documented asbestos throughout the property, including in floor tiles, wall board and pipe insulation.
After the survey, the partnership received bids from licensed professional asbestos abatement and renovation firms in the area. Despite knowing that the building contained asbestos, Powers hired Larry Miller, 59, of Palmetto, Georgia, a general contractor from Atlanta with no training, certification, or experience in asbestos abatement, to conduct interior demolition and renovation of the building. The written contract with Miller specifically excluded removal of asbestos from the property. Powers told Miller that the asbestos would be abated by another contractor after Miller’s work and did not fully inform Miller about the extent of asbestos in the property. Powers represented to his partners that a qualified entity would conduct appropriate asbestos abatement at the property. He e-mailed them a proposed asbestos abatement contract from a corporation that, unbeknownst to his partners, was simply an alter-ego for Powers.
During the period between August 2011 and October 2011, according to the statement of offense, Miller and his crew of workers conducted interior demolition at the Maples, without any asbestos abatement having occurred as required under the Clean Air Act. Powers also contracted with a waste disposal company to haul construction debris from the Maples off-site. Powers failed to inform the waste disposal company that the construction debris contained asbestos and the debris was not taken to a site qualified to receive asbestos waste.
Even after an inspection by local environmental authorities revealed asbestos in the building, Powers had Miller and his crew members proceed with demolition. Over the course of the project, the workers disturbed substantial quantities of asbestos, exposing themselves to a substantial risk of serious illness later in life.
Miller pleaded guilty on Nov. 19, 2015, to one count of negligent endangerment under the Clean Air Act. He is awaiting sentencing in the U.S. District Court for the District of Columbia. The charge carries a maximum sentence of not more than one year of imprisonment, a fine of up to $100,000 and a term of supervised release and/or probation.
After the acts described in the statement of offense, a licensed asbestos abatement firm conducted abatement at the Maples. The District of Columbia Department of the Environment subsequently conducted inspections and found the property to be free of all asbestos-containing materials.
U.S. Attorney Phillips acknowledged the efforts of those who investigated the case, as well as Trial Attorney Cassandra J. Barnum and Paralegal Specialist Cynthia Longmire of the Environmental Crimes Section and those who worked on the case at the U.S. Attorney’s Office, including Paralegal Specialist Christopher Toms, former Paralegal Specialists Krishawn Graham, Kaitlyn Krueger, and John Lowell, and former Assistant U.S. Attorney Jonathan Hooks and Assistant U.S. Attorneys Virginia Cheatham and Zia Faruqui.
District Man Pleads Guilty to Armed Burglary at Gallaudet University KitchenRead the Press Release
WASHINGTON - Donald Williams, 26, of Washington, D.C. pled guilty today to forcing his way at gunpoint into the kitchen of the food service department at Gallaudet University, where he used to work, and ordering employees to turn over money kept in a safe, U.S. Attorney Channing D. Phillips announced.
Two of the victims, who are deaf, helped identify him as the gunman.
Williams pled guilty in the Superior Court of the District of Columbia to a charge of first-degree burglary while armed. He is to be sentenced on March 23, 2017 by the Honorable Danya A. Dayson. The charge carries a statutory minimum of five years in prison. Under the Court’s voluntary sentencing guidelines, Williams faces a potential range of 102 to 192 months in prison.
According to the government’s evidence, in the late afternoon of Oct. 22, 2016, Williams entered his former place of employment, the food service department on the campus of Gallaudet University, in the 800 block of Florida Avenue NE. Upon entry, he pointed a gun at two female employees and forced them into the rear of the kitchen. He forced one of the two victims into a storage room and the other, who is deaf, into a back office space that contained a safe that held daily deposits. He pointed a gun at the latter victim and motioned for her to open the safe. When she refused, he struck her upon the head with the gun, causing a laceration.
Williams left the office and approached a third female employee, who was located in a different area of the kitchen and was unaware that a robbery was taking place; this employee is also deaf. Williams pointed his gun at her, grabbed her by the shirt, forced her into the office with the other victim, and directed her to open the safe. Once she opened the safe, she and the other victim handed money to Williams, who then fled the scene.
During their interviews with members of the Metropolitan Police Department (MPD), the two victims who were directed to open the safe indicated that their assailant reminded them of their former colleague, Williams, who had been fired from Gallaudet University a few weeks before the crime. Although their assailant had a mask covering his face, the victims stated that his build, skin complexion, leanness, mannerisms, and gait were consistent with the defendant’s, whom they had worked with regularly for more than a year.
During their investigation, MPD located surveillance video footage depicting a vehicle similar to the defendant’s enter a parking garage on campus around the time of the crime. The video also depicted a male, wearing clothing identical to the look-out description, exit the vehicle and walk toward the building where the robbery occurred. MPD also recovered video from the defendant’s cell phone showing him dumping a large amount of cash into a bathroom sink bundled with red bands consistent with the description given by the victims. Williams recorded the cell phone video approximately three and a half hours after the crime. Finally, a black mask consistent with the mask described by the victims as the one worn by the assailant was found at the scene and was swabbed for DNA. Subsequent testing revealed the presence of Williams’s DNA on it. Williams was arrested on Dec. 20, 2016.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work performed by the Forensic Biology Unit of the District of Columbia Department of Forensic Sciences as well as Sorensen Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Shana Fulton and Tamika Griffin; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Diana Lim, Katina Adams-Washington, and LaJune Thames, all of the Victim/Witness Assistance Unit; Supervisory Paralegal Supervisor Darline Douglas; Lead Paralegal Specialist Lynda Randolph, and Paralegal Specialist Benjamin Kagan-Guthrie.
Finally, he commended the work of Assistant U.S. Attorney Vanessa Goodwin, who investigated and prosecuted the case.
Detroit man sentenced to federal prison for heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who conspired with others to distribute heroin in Mason County between 2013 and 2014 was sentenced today to three years and nine months in federal prison, announced United States Attorney Carol Casto. Anthony D. Latham, 25, previously pleaded guilty to conspiracy to distribute heroin.
Between January 2013 and July 21, 2014, Latham conspired with other individuals to distribute heroin in the Point Pleasant area of Mason County. During the conspiracy, Latham and others would frequently transport heroin from Columbus and Chillicothe to a residence in Gallipolis, where they would store and prepare the heroin for distribution. Members of the conspiracy would then distribute the heroin to customers in Gallipolis and to customers who traveled from Point Pleasant. Latham and others also frequently traveled to Point Pleasant, where they used various residences to conduct distributions. Latham admitted that he was responsible for distributing up to 700 grams of heroin during the conspiracy.
The Drug Enforcement Administration Task Force, which includes the Putnam County Sheriff’s Department and the Gallia-Meigs County, Ohio, Major Crimes Task Force, conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Detroit man pleads guilty to federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Jimmy Cheatham, also known as “Shoe,” 25, entered his guilty plea to possession with intent to distribute heroin.
On August 16, 2016, Cheatham was arrested on an active federal warrant for conspiracy to distribute heroin. In a search incident to arrest, agents with the Huntington FBI Drug Task Force located approximately 6 grams of heroin concealed on his person. Agents also located approximately $1,800 in cash, which represented the proceeds from heroin sales. The arrest stemmed from an investigation of Cheatham and others which began in 2015.
Cheatham admitted that on August 5, 2015, he sold over 16 grams of heroin to a confidential informant working for the Task Force. The drug deal took place at 1826 Old 16th Street Road, where the informant exchanged $2,000 for the heroin. In a July 9, 2015, search of 126 Olive Street in Huntington, Task Force agents located Cheatham and two of his co-conspirators inside the residence. Agents recovered $6,314 in cash, along with an AR-15 style firearm concealed in the attic.
Cheatham faces up to 20 years in federal prison when he is sentenced on May 1, 2017.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney R. Gregory McVey is responsible for the prosecution. Chief United States District Judge Robert C. Chambers presided over the plea hearing.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Denison Man Sentenced to over 20 Years for Distributing MethamphetamineRead the Press Release
An Iowa man who distributed significant quantities of ice methamphetamine was sentenced today to more than 20 years in federal prison.
Armando Castillo Valerio, 50, from Denison, Iowa, received the prison term after a June 22, 2016, jury verdict finding him guilty of conspiring to distribute methamphetamine.
Evidence at trial showed Valerio was responsible for distributing ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa. Valerio received ice methamphetamine from multiple sources, including some who were located out of state. Once he obtained methamphetamine from his sources of supply, Valerio distributed it to a network of individuals. Multiple witnesses testified at trial to receiving methamphetamine from defendant.
Valerio was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Valerio was sentenced to 262 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Valerio is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2050.
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Corpus Christi Man Gets 27 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old man has been ordered to federal prison following his conviction of sexual exploitation of a child, announced U.S. Attorney Kenneth Magidson. Edward Lopez Jr. pleaded guilty Oct. 17, 2016.
Today, Senior U.S. District Judge John D. Rainey took into consideration the testimony of a psychologist and the nature of the crime committed against the most vulnerable, an eight-year-old child, and handed Lopez a sentence of 326 months in federal prison. Additional information was also presented today, including a letter the victim had written to Lopez which was read in open court. In handing down the sentence, Judge Rainey stated that the crime Lopez committed was, indeed, a heinous crime. Lopez was further ordered to serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous sex offender prohibitions designed to restrict his access to children. He will also be ordered to register as a sex offender.
Lopez came to the attention of law enforcement after authorities learned of the sexual assault of a minor female child. The child was identified and confirmed the abuse and Lopez was identified as the perpetrator.
Authorities executed a search warrant at Lopez’s residence and seized several electronic media storage devices. Forensic examination of his cellular telephone resulted in the discovery of a video of the minor female child involved in sexually explicit conduct with the Lopez. Photographs of a minor female child involved in sexually explicit conduct were also found on his cellular telephone.
Lopez was arrested on the federal charges in February 2016 and has been in federal custody since that time where he will remain pending
transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Corpus Christi Police Department’s Internet Crimes Against Children Task Force conducted the investigation.
This case, prosecuted by Assistant U.S. Attorneys Elsa Salinas and Brittany Jensen, 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."
Connecticut U.S. Attorney’s Office Collects More Than $792 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
New Haven - U.S. Attorney Deirdre M. Daly today announced that the U.S. Attorney’s Office for the District of Connecticut collected $792,906,133.31 in criminal and civil actions in Fiscal Year 2016. Of this amount, $783,664,236.82 was collected in criminal actions and $9,241,896.49 was collected in civil actions.
This year’s recovery is particularly large as a result of a single criminal fine in the amount of $772,290,000 paid by Alstom S.A., a French power and transportation company that has a U.S. subsidiary with headquarters in Connecticut. This Office in collaboration with the Criminal Division of the Department of Justice prosecuted Alstom for violations of the Foreign Corrupt Practices Act.
The Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. This amount in collections represents more than five times the approximately $2.93 billion of the Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“This past fiscal year, our Office’s dedicated attorneys and staff helped to recover over $792 million,” said U.S. Attorney Daly. “We are gratified that these funds are returned directly to victims of crime, provide needed services for these victims and fund ongoing federal, state and local law enforcement efforts. One of our primary missions is to seek justice for victims, remove ill-gotten gains from wrongdoers and protect the integrity of important government programs.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s office in Connecticut, working with partner agencies and divisions, collected $5,375,890 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
For more information about the U.S. Attorney’s Office for the District of Connecticut, please visit www.justice.gov/ct.
Columbus Doctor to Plead Guilty to Running Medical Center as Drug Premises, Tax ChargesRead the Press Release
COLUMBUS, Ohio – Today the government unsealed a plea agreement with the owner and operator of Columbus Southern Medical Center, which provided unlawful prescriptions of controlled substances to addicts throughout the Midwest and who engaged in a series of schemes to evade more than $3.5 million in taxes.
Kevin B. Lake, 50, of New Albany, Ohio, pleaded guilty to drug, tax and fraud charges and agreed to the forfeiture of what remains from the $29 million in seized funds earned from the clinic’s illegal activities, after restitution is paid from the funds.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division; Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Agency (DEA); Troy N. Stemen, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; James Vanderberg, Special Agent in Charge, U.S. Department of Labor Office of the Inspector General; Joe Rivers, Regional Director of the U.S. Department of Labor Employee Benefits Security Administration; Ohio Attorney General Mike DeWine; Ohio Bureau of Workers’ Compensation Administrator/CEO Sarah Morrison and Columbus Police Chief Kim Jacobs announced the plea that is scheduled to be entered into today at 2pm before U.S. District Judge Michael H. Watson.
According to court documents, Lake owned and managed Columbus Southern Medical Center through one or more corporate or trust entities which he used to insulate himself from the illegal drug trafficking being conducted at the clinic.
In the filed plea document, he admitted that between 2006 and 2013, he knew doctors and staff at the 2912 South High Street clinic prescribed controlled substances to patients without a legitimate medical purpose. During that time, hundreds of patients showed up daily – 85 percent of whom were returning patients – to receive prescriptions of oxycodone, hydrocodone and Xanax. The percentage of patients who were prescribed these controlled substances rose each year, jumping from nearly 60 percent in 2004 to nearly 92 percent in 2009 and 2010.
Lake agreed to plead guilty to maintaining the clinic as a drug premises. He also admitted that he exclusively controlled all of the proceeds generated by the illegal activity being conducted by the doctors, physician assistants and staff at the clinic, which was more than $38 million in payments for patient visits. He admitted to engaging in more than $20 million in money laundering transactions with these illegal drug proceeds.
The doctor also agreed to plead guilty to tax evasion on his personal income tax returns and admitted to filing fraudulent tax returns for his corporations and trusts. He paid himself more than $90,000 in 2010 through 2013 from the clinic entities, which he did not report as income, but instead disguised as phony rental payments ostensibly for use of his personal residence for corporate retreats. He also took inflated charitable contribution deductions on his individual income tax returns. In addition, Lake admitted causing the filing of corporate tax returns that falsely claimed inflated depreciation deductions for nearly $7.4 million in so-called “equipment” purchases by his corporations from his trust for tax years 2005 through 2011. He also admitted to falsely reporting these purchases as capital gains on his trust tax returns rather than as ordinary income, thereby securing a much lower tax rate. Lake’s tax crimes caused a tax loss of more than $3.5 million.
After the DEA first appeared at the clinic in June 2010, Lake took several steps to separate himself from the drug premises; he stopped paying himself a salary, and instead filed a fraudulent claim for disability payments from his two disability insurers. The insurance companies ultimately denied his claims, and only paid out $18,000. Lake also sold the clinic’s remaining stock to employees through an Employee Stock Ownership Plan (ESOP) for the inflated price of $14 million.
After the ESOP sale, and the denial of his fraudulent disability claim, Lake fraudulently filed for and collected unemployment benefits, stealing more than $20,000 in government funds.
Finally, the doctor admitted to defrauding the Bureau of Workers’ Compensation by having employees upcode office visits in order to bill for higher level medical services in addition to those provided by physician assistants as if they were provided by physicians, causing a loss of more than $260,000.
As part of the plea agreement, and due to Lake’s cooperation in the government’s investigation, the parties involved recommended to the court that Lake receive a sentence of 60 months in prison. Judge Watson will consider the recommended sentence at a sentencing hearing that has yet to be scheduled.
“At the same time Dr. Lake was running his medical center as an illegal drug premises, he took every opportunity to cheat the U.S. Treasury out of millions of dollars in taxes," said Acting Deputy Assistant Attorney General Goldberg. "As the income tax filing season begins, Lake’s guilty plea is a stark reminder of what awaits those filing false returns -- no matter their profession, income level or the complexity of their scheme.”
"For seven years, Kevin Lake operated Columbus Southern Medical Center as a pill mill," said U.S. Attorney Glassman. "He got rich by feeding the addictions of hundreds and hundreds of people. Thanks to the thorough investigation of federal, state, and local law enforcement agencies, however, Lake has agreed to plead guilty to drug, tax, and fraud charges, forfeit his ill-gotten gains, and serve time in federal prison for his misdeeds."
“Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country.” Special Agent in Charge Timothy J. Plancon said. “Kevin Lake abused his position of trust and jeopardized the lives of many individuals, by conspiring with others to illegally prescribe controlled substances that ended up being consumed throughout Ohio and the surrounding states. This investigation uncovered the elaborate lengths that Lake undertook to conceal his illegal profits, and the seizure of $29 million from Lake is indicative of the scope of his illegal activity. Lake’s guilty plea should serve as a warning to all medical professionals that if you prescribe medicine for personal gain, you will be prosecuted to the fullest extent of the law. This investigation was a success thanks to the outstanding investigative work by all of our federal, state, and local law enforcement partners.”
“Dr. Lake’s conduct detailed in this case is egregious and had such a negative impact on our community,” said Troy N. Stemen, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "This is an important victory for the citizens of Central Ohio. Dr. Lake not only fueled the prescription drug problem in Central Ohio, but he supported addiction in several parts of the country. As a result of this joint investigative effort, the government has seized a significant portion of the illegal proceeds through asset forfeiture, and Dr. Lake is faced with having to pay back taxes with interest and steep penalties.”
“The Office of Inspector General congratulates the U.S. Attorney’s Office and all of the investigators on this important case. The OIG will continue to work with our law enforcement partners to investigate unemployment insurance fraud and employee retirement plan fraud schemes, “stated James Vanderberg, Special Agent in Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
“There is no doubt that today’s opiate epidemic is due in large part to the overprescribing of prescription pain medication across this state. This defendant preyed on those battling addiction in an effort to make millions from their suffering,” said Ohio Attorney General Mike DeWine. “An incredible amount of hard work went into investigating and prosecuting this case. Because of this team effort, this pill mill operation has been shut down.”
“We place trust in our healthcare professionals to provide quality treatment that improves the health of injured workers,” said BWC Administrator/CEO Sarah Morrison. “We’re pleased to do our part to address the problem of prescription drug abuse in Ohio, as well as put an end to Dr. Lake’s fraudulent billing scheme.”
“It is through the hard work of the investigators and the cooperation of agencies at the federal, state, and local level that led to the successful investigation and prosecution of this pill mill,” Columbus Police Deputy Chief Michael Woods said.
Three co-defendants have pleaded guilty as part of this case. Dr. Terry Dragash was sentenced in October 2014 to one year in prison for conspiracy to distribute drugs as a result of his conduct in prescribing at the clinic. Dr. David Rath pleaded guilty to a similar conspiracy charge. And in December 2015, Karen Climer – another employee of Lake’s – pleaded guilty to conspiracy and was sentenced to six months in prison after the government revealed she was cooperating in the investigation into Lake.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Glassman commended the investigation of this case by the DEA Tactical Diversion Squad – including the Ohio Attorney General’s Bureau of Criminal Investigation (BCI) and Columbus Division of Police – IRS Criminal Investigation, Ohio Bureau of Workers’ Compensation, Department of Labor OIG and Employee Benefits Security Administration, Central Ohio Drug Enforcement Task Force, Franklin County Sheriff’s Office, Ohio State Board of Pharmacy and the State Medical Board of Ohio, as well as Assistant United States Attorney Kenneth F. Affeldt and Department of Justice Tax Division Trial Attorneys Richard M. Rolwing and Carl F. Brooker, who are representing the United States in this case.
Citizen of Mexico Pleads Guilty to Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALBERTO SILVA-GARCIA, 42, a citizen of Mexico recently residing in Norwalk, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of illegal reentry of a removed alien.
According to court documents and statements made in court, SILVA-GARCIA was deported from the U.S. to his native Mexico in March 1999 after sustaining a domestic violence conviction in California. Between March 1999 and April 2004, SILVA-GARCIA was encountered multiple times in California by immigration agents, twice while in custody following his apprehension and conviction for controlled substance violations, and on several other occasions following his apprehension at the U.S. border for falsely claiming U.S. citizenship. On 11 documented occasions, SILVA-GARCIA was removed to Mexico by foot.
In August 2009, SILVA-GARCIA was arrested for motor vehicle offenses in Norwalk. He was subsequently charged with illegal reentry in U.S. District Court in Connecticut and was sentenced to 12 months of imprisonment. In December 2010, SILVA-GARCIA was again removed to Mexico.
SILVA-GARCIA illegally reentered the U.S. and, in March 2015, was charged with larceny and burglary offenses in superior court in Norwalk. The charges stemmed from a crime spree involving the theft of construction tools and equipment from job sites and parked construction vehicles. He pleaded guilty and was sentenced to three years of incarceration.
SILVA-GARCIA has been detained in ICE custody since October 2016.
Judge Meyer scheduled sentencing for April 25, 2017, at which time SILVA-GARCIA faces a maximum term of imprisonment of 10 years.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE). The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Bronx, New York, Man Sentenced to Four Years in Prison for Role in Conspiracy to Possess with Intent to Distribute 22 Kilograms of Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a conspiracy to possess with intent to distribute 22 kilograms of heroin in New Jersey, U.S. Attorney Paul J. Fishman announced.
Edwin Alamo Jr., 22, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor-trailer, occupied by Sauro D. Estevez-Figueredo and Alberto Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Emmanuel Gonzalez and Alamo drove to the tractor-trailer and left with a suitcase given to them by Mora. Later, Porfirio Peralta-Nunez arrived at the tractor-trailer with two empty bags and left shortly afterwards with the bags filled.
Subsequent traffic stops allegedly revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Additional quantities of narcotics were allegedly found in Peralta-Nunez’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl remaining at the tractor-trailer.
Alamo admitted that he went to Clifton to pick up narcotics from a tractor-trailer and that he obtained a suitcase containing approximately 22 kilograms of heroin.
In addition to the prison term, Judge Sheridan sentenced Alamo to three years of supervised release.
Co-defendants Mora and Gonzalez have pleaded guilty; Gonzalez was sentenced to 120 months in prison and Mora is awaiting sentencing. Charges and allegations pending against Peralta-Nunez and Estevez-Figueredo are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Meredith Williams of the Narcotics/OCDETF unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender
Bossier City woman, Minden man sentenced for smuggling methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City woman and a Minden man were sentenced last week for attempting to smuggle more than a pound of methamphetamine into Louisiana from Texas.
Rustin J. Stein, 30, of Bossier City, La., and James Lee Adkins, 30, of Minden, La., were sentenced Friday to 51 months and 87 months in prison respectively by U.S. District Judge Elizabeth E. Foote on one count of conspiracy to distribute methamphetamine. They were also sentenced to three years of supervised release. According to the guilty pleas, the defendants were traveling on February 8, 2016 near mile marker 2 on Interstate 20 when a state trooper conducted a traffic stop. State police searched the vehicle, and one pound of methamphetamine was found in the right rear door. Adkins also had a small baggie of methamphetamine in his front pants pocket, and Stein had a small amount of methamphetamine in her purse. Stein admitted to traveling to Dallas with Adkins to buy methamphetamine from a source for $5,000 and planned to split the cost of the drugs and the trip.
The DEA and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Belleville Man Sentenced for Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on January 27, 2017, Michael H. McDaniel, 37, Belleville, IL, was sentenced for Receipt of Child Pornography and Possession of Prepubescent Child Pornography. McDaniel was sentenced to 97 months’ imprisonment on each count, to run concurrently, to be followed by a 10-year term of supervised release on each count, also to run concurrently. McDaniel was also ordered to pay a $200 special assessment. In addition, McDaniel paid $1,000 in restitution to one of the victims identified in the child pornography he collected and distributed. McDaniel was remanded to the custody of the United States Marshals Service when the hearing ended.
The charges arose when, on April 6, 2016, several electronic devices, including a Hewlett Packard computer and a Hewlett Packard laptop, were seized from the residence in which Michael H. McDaniel resided with other individuals and from McDaniel’s place of employment. On that same date, McDaniel provided a voluntary statement in which he admitted first viewing child pornography in February 2014, and claimed that he last viewed it around April 5, 2015. McDaniel also admitted downloading child pornography, but said that the other individuals who lived at the residence did not know that he did so and did not view it with him. McDaniel said that there would be child pornography on the work laptop and the desktop computer seized from his
residence.
A forensic review of both computers revealed that both contained child pornography, and that many of the images were of prepubescent children. The forensic review also revealed that, between on or about April 3 and April 6, 2015, the defendant received image and/or video files of child pornography via the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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 Aresources.@
The case was investigated by the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
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Atlanta Man Sentenced to 11 Years in Prison for Armed Carjacking at a College Park Gas StationRead the Press Release
ATLANTA - Dontrail Xavier Roundtree has been sentenced to 11 years, nine months in prison for an armed carjacking in College Park, Georgia, last year. Roundtree stole a car at gunpoint at a gas station, led police on a high-speed chase, tried to flee after crashing the stolen vehicle, and then fought with police officers trying to take him into custody.
“Roundtree victimized an innocent citizen and placed the lives of other citizens and police officers in danger when he led police on a high-speed chase,” said U. S. Attorney John Horn. “The public can rest easier knowing that law enforcement put an end to Roundtree’s crime spree.”
“The sentence that Roundtree received represents the seriousness of his crime, and this is just another example of ATF’s commitment in combating violent crime to protect our communities,” said ATF Special Agent in Charge Wayne Dixie.
According to U.S. Attorney Horn, the charges and other information presented in court: On January 26, 2016, Roundtree approached a patron at a gas station in College Park, pulled a .45 caliber semi-automatic pistol and demanded the victim’s car keys. Roundtree then fled in the victim’s car. After a witness called 911, a College Park Police Officer attempted to pull Roundtree over in the stolen vehicle. Roundtree then sped off.
A chase ensued on I-285 with speeds approaching 130 miles per hour. Roundtree finally crashed the car into a ditch upon exiting the interstate, and then ran while being pursued on foot by officers. Once apprehended, he was combative and kicked one officer as the officers tried to place him in custody.
Dontrail Xavier Roundtree, 24, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 11 years, nine months in prison to be followed by five years of supervised release. Roundtree was convicted of these charges on November 7, 2016, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Associate of Wildboys Gang Pleads Guilty to Attempted MurderRead the Press Release
An associate of the Wildboys street gang in South Carolina has pleaded guilty to attempted murder in aid of racketeering for his role in a gang-related shooting.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Brian Manigo, aka B-Nasty, 25, of Green Pond, South Carolina, pleaded guilty today to attempted murder in aid of racketeering activity. Sentencing will be set before U.S. District Court Judge Richard M. Gergel of South Carolina.According to admissions made in connection with his plea, Manigo was an associate in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. The defendant further admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
As part of his plea agreement, Manigo admitted his involvement in a shooting on May 14, 2011, at a car wash in Walterboro. Another Wildboys associate drove the vehicle, allowing Manigo to shoot multiple times at an associate of the rival Cowboys gang in retaliation for an earlier shooting. One individual was struck by the gunfire and sustained serious bodily injury.
Manigo and other alleged members or associates of the Wildboys were charged in an indictment with attempted murder in aid of racketeering and firearms offenses on Feb. 9, 2016.
Separately, also on Feb. 9, 2016, nine members and associates of the Cowboys gang were charged in an indictment with racketeering conspiracy, attempted murder in aid of racketeering, and firearms offenses. The indictment further alleges that, for a period of time, the Cowboys were aligned with the Wildboys. To date, multiple members and associates of the Cowboys have pleaded guilty to charges in the indictment, including racketeering conspiracy and attempted murder in aid of racketeering.An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.
Associate of Wild Boys Gang Pleads Guilty to Attempted MurderRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
WASHINGTON – An associate of the Wildboys street gang in South Carolina has pleaded guilty to attempted murder in aid of racketeering for his role in a gang-related shooting.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Brian Manigo, aka B-Nasty, 25, of Green Pond, South Carolina, pleaded guilty today to attempted murder in aid of racketeering activity. Sentencing will be set before U.S. District Court Judge Richard M. Gergel of South Carolina.According to admissions made in connection with his plea, Manigo was an associate in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. The defendant further admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
As part of his plea agreement, Manigo admitted his involvement in a shooting on May 14, 2011, at a car wash in Walterboro. Another Wildboys associate drove the vehicle, allowing Manigo to shoot multiple times at an associate of the rival Cowboys gang in retaliation for an earlier shooting. One individual was struck by the gunfire and sustained serious bodily injury.
Manigo and other alleged members or associates of the Wildboys were charged in an indictment with attempted murder in aid of racketeering and firearms offenses on Feb. 9, 2016.
Separately, also on Feb. 9, 2016, nine members and associates of the Cowboys gang were charged in an indictment with racketeering conspiracy, attempted murder in aid of racketeering, and firearms offenses. The indictment further alleges that, for a period of time, the Cowboys were aligned with the Wildboys. To date, multiple members and associates of the Cowboys have pleaded guilty to charges in the indictment, including racketeering conspiracy and attempted murder in aid of racketeering.An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.
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Arizona Man Convicted in Manhattan Federal Court for Material Support to ISISRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that AHMED MOHAMMED EL GAMMAL, a resident of Arizona, was convicted today of multiple terrorism offenses in connection with his efforts to help Samy El-Goarany join and train with the Islamic State of Iraq and the Levant, a/k/a the Islamic State of Iraq and al-Sham, a/k/a the Islamic State of Iraq and Syria (“ISIS”), a designated foreign terrorist organization. EL GAMMAL was convicted of providing and conspiring to provide material support to ISIS, aiding and abetting the receipt of military-type training from ISIS, and conspiring to receive such training. EL GAMMAL was convicted following a three-week jury trial presided over by U.S. District Judge Edgardo Ramos.
U.S. Attorney Preet Bharara said: “Once again, we have shown that terrorists and terrorist enablers can be brought to justice fairly, openly, and swiftly in the crown jewel of our justice system – civilian courts. Today, a jury in federal court in Manhattan convicted Ahmed Mohammed El Gammal of material support of terrorism. To grow their brand of hate-filled violence and radicalization, terrorist organizations like ISIS need facilitators and promoters around the world. And the jury found today that Ahmed Mohammed El Gammal was one such terrorist facilitator. An Ambassador for ISIS right here in America, El Gammal actively touted and glamorized ISIS online, ultimately recruiting and helping a New York college student travel to an ISIS camp in Syria for military training. That New Yorker died waging jihad, and for El Gammal’s active role in sending him down that trail to terror, he now stands convicted of federal terrorism crimes.”
According to documents publicly filed in this case and evidence presented at trial:
Beginning in at least April 2014, EL GAMMAL was an outspoken supporter on social media of ISIS and ISIS’s Caliphate, or Islamic government, in Syria. Among other things, EL GAMMAL announced that he was with “[t]he State of Iraq and the Levant,” referring to ISIS; celebrated ISIS’s achievements in battle and announcement of the establishment of a Caliphate; proclaimed that he “support[s] jihad everywhere”; and declared that “[b]eheadings have a magical effect.” EL GAMMAL additionally announced that “[i]f Daesh [i.e., ISIS] gets to Egypt, I will go join them, so I can torture the Egyptians, and whip them.”
As of at least August 2014, a 24-year-old New York City resident named Samy El-Goarany began to express his support for ISIS on social media as well. On August 14, 2014, El-Goarany heard that EL GAMMAL had made comments supportive of ISIS. Minutes later, El-Goarany contacted EL GAMMAL and they communicated via an encrypted communications platform. Less than an hour after this online conversation, EL GAMMAL sent El-Goarany a documentary on life in the Islamic State that outlined the type of training ISIS provides. Over the next several months, EL GAMMAL and El-Goarany continued corresponding over the Internet, although EL GAMMAL and El-Goarany deleted almost all of these exchanges.
In the midst of these communications, in October 2014, EL GAMMAL traveled to New York City, where El-Goarany was enrolled in college, and met with El-Goarany. During this October 2014 trip, EL GAMMAL provided El-Goarany with the phone number for EL GAMMAL’s contact in Turkey, Ateia Aboualala, who would be responsible for helping El-Goarany travel from Turkey across the border to ISIS in Syria. While in New York City, EL GAMMAL also contacted Aboualala in Turkey regarding El-Goarany’s plans to travel. EL GAMMAL later provided El-Goarany with social media contact information for Aboualala. Thereafter, in a coded conversation, EL GAMMAL assured Aboualala that he had vetted El-Goarany and El-Goarany could be trusted.
In late January 2015, El-Goarany left New York City for Istanbul, Turkey. Upon arriving in Turkey, El-Goarany immediately reached out to Aboualala. While El-Goarany was in Turkey, EL GAMMAL continued to communicate with El-Goarany over the Internet, providing advice on traveling toward Syria and on meeting with Aboualala. After arriving in Syria, El-Goarany received religious training and advanced military-type training from ISIS throughout 2015. On May 7, 2015, in the midst of his training with ISIS, El-Goarany reported to EL GAMMAL that “everything [was] going according to plan.” A few months later, on July 16, 2015, El-Goarany wrote to EL GAMMAL: “Life has changed a lot for me at this new job but I love it and I don’t regret taking up the offer,” and “May God reward you with goodness,” to which EL GAMMAL responded, “Great.”
In May 2015, El-Goarany’s father traveled to Turkey and met with Aboualala, in an attempt to locate his son. Upon learning of this, EL GAMMAL instructed Aboualala, “Don’t ever ever mention me. Not even my name[,]” and urged Aboualala not to meet with El-Goarany’s father. On May 5, 2015, Aboualala reported back to EL GAMMAL, assuring EL GAMMAL that, when Aboualala met up with El-Goarany’s father, “I covered up for you.”
In coded messages in mid-2015, EL GAMMAL reached out to El-Goarany to inquire about the possibility of his (EL GAMMAL’s) traveling to ISIS in Syria. On July 13, 2015, El-Goarany, again in a coded message, responded that he needed to ask his “supervisors at work first,” but commented that “it’s risky because the parking lot these days is going under a lot of renovation, especially in the north side,” alluding to military operations occurring in northern Syria at the time.
On November 23, 2015, El-Goarany’s brother received a message from a member of ISIS with an attached letter from El-Goarany. The letter read: “if you’re reading this then know that I’ve been killed in battle and am now with our Lord, inshaAllah. Remember what I told you . . . we will win this war one day, this war between Iman (Belief) and Kufr (Disbelief) between Good and Evil. . . .”
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EL GAMMAL, 44, of Avondale, Arizona, was convicted of one count of providing material support to a designated foreign terrorist organization and one count of conspiring to provide material support to a designated foreign terrorist organization, each of which carries a maximum sentence of 20 years in prison; one count of receiving military-type training from a designated foreign terrorist organization, which carries a mandatory sentence of 10 years in prison or a fine; and one count of conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Ramos. A sentencing date has not yet been set.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the U.S. Attorney’s Office for the District of Arizona, and the Phoenix Field Office of the FBI for their assistance.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Negar Tekeei, Brendan F. Quigley, and Andrew J. DeFilippis are in charge of the prosecution, with assistance from Trial Attorney Ranganath Manthripragada of the Counterterrorism Section.
Albuquerque Felon Facing Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Moses Hernandez, 35, of Albuquerque, N.M., with violating federal firearms laws by unlawfully possessing a firearm and ammunition. Hernandez was remanded into federal custody pending trial which has yet to be scheduled.
Hernandez was arrested on Jan. 26, 2017, on a criminal complaint charging him with being a felon in possession of a firearm in Bernalillo County, N.M. According to the complaint, Hernandez was arrested on Jan. 26, 2017, after Hernandez allegedly discharged a firearm in the direction of Albuquerque Police Department (APD) officers. According to the complaint, Moses was prohibited from possessing firearms or ammunition because of his previous felony convictions for aggravated assault with a deadly weapon and two convictions for possession of a controlled substance.
If convicted of the charge in the criminal complaint, Hernandez faces maximum penalty of ten years in federal prison. If the court determines that Hernandez is an armed career criminal, he would face an enhanced penalty of not less than 15 years of imprisonment. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the APD. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part 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 work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Acting Attorney General Boente Issues Guidance to Department on Executive OrderRead the Press Release
Dana J. Boente, who was appointed this evening to serve as acting Attorney General, tonight issued the following guidance to the men and women of the department:
On January 30, 2017, Acting Attorney General Sally Q. Yates issued a memorandum barring Department of Justice Attorney’s from presenting arguments in defense of the President’s January 27, 2017, Executive Order entitled “Protecting the Nation from Foreign Terrorist Entry Into the United States.” At approximately 9:00 p.m., I was asked by the President to serve in the capacity of Acting Attorney General. After having dedicated the last thirty-three years of my life to this Department, I am humbled and incredibly honored to serve as Acting Attorney General. Based upon the Office of Legal Counsel’s analysis, which found the Executive Order both lawful on its face and properly drafted, I hereby rescind former Acting Attorney General Sally Q. Yates January 30, 2017, guidance and direct the men and women of the Department of Justice to do our sworn duty and to defend the lawful orders of our President.
Prior to this appointment, Boente had been serving as the U.S. Attorney for the Eastern District of Virginia since his confirmation by the U.S. Senate on Dec. 15, 2015. Boente was appointed by the Attorney General in December 2012 to serve as the U.S. Attorney for the Eastern District of Louisiana, a position he held until September 2013. Boente began his career with the Justice Department in 1984 with the Tax Division, and in January 2001 he became an Assistant U.S. Attorney in the Fraud Unit of the Eastern District of Virginia.
From 2005 to 2007, Boente served as the Principal Deputy Assistant Attorney General of the Tax Division. Following his service with the Tax Division, he returned to the Eastern District of Virginia when he was selected as the First Assistant U.S. Attorney. He served as acting U.S. Attorney for that office from October 2008 through September 2009 and from Sept. 23, 2013 until his Senate confirmation.
28 January 2017
Sioux Falls Man Sentenced for Prostitution TransportationRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Transportation for Prostitution was sentenced on January 23, 2017 by U.S. District Judge Karen E. Schreier.
Eric Sims, age 47, was sentenced to 21 months in custody, with 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Sims was indicted for Sex Trafficking Conspiracy by a federal grand jury on October 6, 2015. He pled guilty to Transportation for Prostitution on October 20, 2016.
Sims aided and abetted individuals engaging in acts of prostitution in Sioux Falls by providing them a place to stay while they pursued prostitution activities. Co-defendant Michael Dickey transported a female from Minnesota to South Dakota for the purpose of engaging in prostitution. Dickey posted advertisements on Backpage.com and received some of the proceeds from the commercial sex acts. Dickey was sentenced on August 29, 2016, to 30 months of incarceration for his participation in the prostitution activity.
This case was investigated by the Federal Bureau of Investigation, and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Sims was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Firearm PossessionRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm.
Mason Hamm, 20, was indicted on December 20, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on January 20, 2017. He pleaded not guilty to the charge.
The penalty upon conviction is up to 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hamm unlawfully possessing a firearm suppressor, also known as a silencer. The charge is merely an accusation and Hamm is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and South Dakota Game, Fish, and Parks. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Hamm was released pending trial. A trial date has not been set.
Pukwana Man Charged with Operating a Motor Vehicle Under the Influence of Alcohol Causing Serious Bodily Injury to a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pukwana, South Dakota, man has been indicted by a federal grand jury for Operating a Motor Vehicle Under the Influence of Alcohol Causing Serious Bodily Injury to a Minor.
Wesley Paul Miller, age 40, was indicted on January 19, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 23, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 5, 2016, Miller, while being in actual physical control of a vehicle and under the influence of an alcoholic beverage, drove over a minor child, causing serious bodily injury.
The charge is merely an accusation and Miller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Miller was released on bond pending trial. A trial date has not been set.
Mitchell Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mitchell, South Dakota, man convicted of Abusive Sexual Contact was sentenced on January 23, 2017, by U.S. District Judge Karen E. Schreier.
Brent Allen Silk, Jr., age 26, was sentenced to 36 months in custody, followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Silk pled guilty to a Superseding Information for Abusive Sexual Contact on October 24, 2016.
On the night of May 12, 2015, Silk and others were drinking at a home just east of Lake Andes, on the Yankton Sioux Reservation. Later in the night, Silk was in a van and had sexual contact with an intoxicated female adult who was incapable of appraising the nature of the conduct.
This case was investigated by the Yankton Sioux Tribe Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Silk was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on January 23, 2017, by U.S. District Judge Roberto A. Lange.
Jeremiah Jay Swalley, age 34, was sentenced to 21 months in custody, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Swalley was indicted by a federal grand jury on March 22, 2016. He pled guilty to a Superseding Information on October 24, 2016.
The conviction stemmed from an incident that occurred in July 2015, wherein Swalley sexually abused a 12-year-old girl.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson prosecuted the case.
Swalley was immediately turned over to the custody of the U.S. Marshals Service.
Hot Springs Man Sentenced for RobberyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hot Springs, South Dakota, man convicted of Interference with Commerce by Robbery, and Use and Brandishing of a Firearm During the Commission of a Crime of Violence was sentenced on January 20, 2017, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ronald William Swallow, age 51, was sentenced to 10 years of imprisonment, 5 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund and $27,006.66 in restitution.
Swallow was charged on February 23, 2016. The conviction stems from Swallow robbing at gunpoint employees of three Rapid City casinos; East St. Pat’s Casino, Joker’s Casino, and Uncle Sam’s Casino.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and & Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Swallow was immediately turned over to the custody of the U.S. Marshals Service.
Cherry Creek Man Sentenced for Sexual Contact with a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man convicted of Sexual Contact with a Minor was sentenced on January 23, 2017, by U.S. District Judge Roberto A. Lange.
Sylvan Larrabee, age 24, was sentenced to 24 months in custody, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Larrabee was indicted by a federal grand jury on March 25, 2016. He pled guilty on October 24, 2016.
The conviction stems from an incident on May 28, 2015, when the victim went to Larrabee’s residence in Dupree. The two of them had consensual sexual intercourse twice that day. Prior to the consensual sexual intercourse, Larrabee was aware that the victim was only 14 years of age. Some of his friends had warned him about her being too young. The victim’s mother had also confronted Larrabee, asking him to leave her daughter alone.
This case was investigated by the Cheyenne Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Larrabee was immediately turned over to the custody of the U.S. Marshals Service.
Bismarck, North Dakota Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
United States Attorney Randolph J. Seiler announced that Michael David Rivera, age 29, of Bismarck, North Dakota, appeared before U.S. District Judge Ralph R. Erickson on January 26, 2017, in Fargo, North Dakota, and made his initial appearance, and pled guilty to the Indictment that charged him with Receipt of Images Depicting the Sexual Exploitation of Minors.
The maximum penalty upon conviction is a mandatory minimum of 5 years up to 20 years of imprisonment and/or a $250,000 fine, at least 5 years up to life of supervised release, a $100 special assessment to the federal crime victims fund, and a $5,000 assessment to the domestic trafficking victims’ fund, unless the sentencing court finds the Defendant to be indigent. Restitution may also be ordered.
Rivera was indicted by a North Dakota grand jury on October 6, 2016. The South Dakota U.S. Attorney’s Office, District of South Dakota, is prosecuting the case after the U.S. Attorney’s Office, District of North Dakota, recused itself from the matter.
The charge stems from the following facts:
In June 2016, Bismarck and other North Dakota state and federal law enforcement officers began to learn that Rivera, at the time a Deputy U.S. Marshal who worked at the federal courthouse in Bismarck, had been surreptitiously recording a variety of women, including juveniles, while they were in fitting rooms or in other parts of area stores. Some of the surreptitious recordings captured women and minors in various stages of undress. Officers received search warrants to search Rivera’s Bismarck apartment, his vehicle parked at the federal courthouse in Bismarck, and his person, and to particularly look at any digital or computer media found at those locations. At his apartment, officers seized a computer that was password protected. Rivera was arrested on state charges related to the surreptitious recording of the adult and juvenile females, which are separately pending in district court in the State of North Dakota, County of Burleigh.
Officers searched Rivera’s computer, and found downloaded videos and images, including 36 or more pictures of child pornography and 52 or more videos of child pornography. A review of some of the downloaded videos, as a brief sample, included the sexual abuse of children, including children in the age range of 6 to 11. About 52 child pornography files, including mostly videos, were found in a user directory for "Michael" on Rivera’s computer.
Officers’ searches of the computer also revealed artifacts in bookmarks, cache records, web history, and web visits. Some of those internet artifacts are commonly associated with child pornography and voyeur search artifacts. Internet access logs on the computer indicate some of the materials were received and accessed by Rivera between April 2016 and June 2016, in the District of North Dakota. The internet was used by Rivera to access visual depictions of minors engaging in sexually explicit conduct.
The investigation was conducted by the Department of Homeland Security Homeland Security Investigations, the Bismarck Police Department, and the North Dakota Crime Bureau’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Tim Maher is prosecuting the case on behalf of the U.S. Attorney General and U.S. Attorney Randolph J. Seiler.
Based upon the request of the parties, Rivera was remanded to the custody of North Dakota state authorities, pending his January 30, 2017 jury trial on state charges. The federal sentencing date has been set for April 18, 2017.
27 January 2017
Woman Convicted by Jury in Manhattan Federal Court of Impersonating A Federal OfficialRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”), announced today that SANDRA ZONGO, a/k/a “Sandra Nelson,” a/k/a “Akiwa Gizzel,” was convicted today by a jury of impersonating an officer or employee of the United States, passing fictitious government obligations, wire fraud, and attempting to commit wire fraud in seeking benefits from the Human Resources Administration. ZONGO was convicted following a nine-day trial in Manhattan before U.S. District Judge Kimba M. Wood.
U.S. Attorney Preet Bharara said: “Today, a unanimous jury convicted Sandro Zongo of posing as a federal government employee and using fake documents to steal hundreds of thousands of dollars in goods and services from her victims. Claiming she was a Commissioner for a made-up organization with ties to the United Nations, Zongo defrauded hotels, restaurants and other vendors with fake invoices and went as far as defraud a charity for military veterans.”
Special Agent in Charge David Beach said: “The Secret Service places a priority on investigating criminals, who prey on the residents of this city and their businesses through deceit and false solicitations for real charities. Working with our partners with the NYPD to arrest these criminals and deter others from committing similar schemes, the Secret Service pursues complex crimes with significant community impact.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
In October 2014, the United States Secret Service began investigating ZONGO, who had been holding herself out as the “Deputy Commissioner” of the “Office of the Commissioner.” The “Office of the Commissioner” purported to be an “Intergovernmental Organization” and claimed to be funded by the federal government in doing work with the United Nations. In fact, the organization was not federally funded and had no affiliation with the United Nations. While purporting to be a “Deputy Commissioner,” ZONGO obtained hundreds of thousands of dollars in goods and services from hotels, restaurants, and other Manhattan vendors using fake government purchase orders, certificates of indebtedness, and other fraudulent documents. Among other things, ZONGO defrauded a charity holding an event designed to benefit injured veterans of $150,000.
While ZONGO was claiming to be the “Deputy Commissioner of Foreign Affairs,” she also submitted fraudulent documents to the Human Resources Administration in her application for housing benefits, including letters in which she claimed to be an “intern.”
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ZONGO, 47, of New York, New York, was convicted of one count of passing fictitious obligations, which carries a maximum sentence of 25 years in prison; one count of impersonating an official or employee of the United States government, which carries a maximum sentence of three years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of attempted wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the United States Secret Service, and thanked the Criminal Investigators of the Southern District New York, the New York City Police Department, the Human Resources Administration, the United States Postal Service–Office of Inspector General, as well as the United States Postal Inspection Service.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jessica Fender, Kiersten Fletcher, Janis Echenberg, and Christopher DiMase are in charge of the prosecution; paralegal specialist Jenny Satinover provided additional support.
Williamson County Man Sentenced for Methamphetamine OffenseRead the Press Release
On January 24, 2017, and January 26, 2017, Blake R. Gordon, 35, of Marion, was sentenced to a total of 216 months’ in federal prison for methamphetamine violations, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On January 24, 2017, Gordon, who had previously pled guilty to a one-count indictment charging him with conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 180 months’ incarceration, 10 years’ supervised release, and was fined $500.00. At sentencing, the district court found that Gordon was responsible for the distribution of approximately 170 grams of "ice." Ice is methamphetamine which has a purity level of at least 80%. The offense occurred between August 2015 and December 15, 2015, in Williamson County. Gordon was classified as a Career Offender, based on multiple prior felony drug convictions.
At the time of Gordon’s 2015 methamphetamine offense, he was on supervised release for a 2006 federal conviction for conspiracy to manufacture more than 500 grams of methamphetamine. On January 26, 2017, Gordon’s supervised release was revoked and he was sentenced to an additional 36 months’ imprisonment. The judge ordered that the 36 month sentence be served consecutive to the previously imposed 180 month term.
Co-defendant Shara L. Peyton, a/k/a "Shara Smothers," 39, of Marion, was previously sentenced to 60 months’ imprisonment for her role in the methamphetamine conspiracy.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration. The Herrin Police Department also assisted in the investigation.
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United States Attorney Hosts Meeting with South Carolina Criminal Justice Academy and the Deaf & Hard of Hearing Community to Plan TrainingRead the Press Release
Contact Person: Rob Sneed (843) 266-1600
Columbia, South Carolina---- United States Attorney Beth Drake stated today that the United States Attorney’s Office is working to uphold the commitments in the Americans with Disabilities Act (ADA). This week, the U.S. Attorney’s Office hosted a meeting that included the Department of Justice Community Relations Service, the South Carolina Criminal Justice Academy and the Deaf and Hard of Hearing community to coordinate training for law enforcement on practical ways to communicate and serve the hard of hearing and deaf community.
U.S. Attorney Drake stated that, “Twenty-six years ago, Congress passed, and President George H. W. Bush signed, the ADA, ushering in a new era of civil rights for people with disabilities in this country.” She further stated that the U.S. Attorney’s Office in collaboration with the Department of Justice Civil Rights Division enforces the ADA to ensure that people with disabilities can live, work, learn, vote, and play in their own communities – free from discrimination and able to participate in the mainstream of American life. Title II of the ADA has an Effective Communications requirement, where certain public entities, including law enforcement, must take appropriate steps to ensure that communications with individuals with disabilities are “as effective” as communications with others. This includes providing appropriate auxiliary aids and services where necessary.
Attending the meeting were: two members of the South Carolina Association of the Deaf: Anita Steichen-McDaniel, Executive Director and Joy Hill, Administrative Assistant; Roger C. Williams, who is the Director of Services for the Deaf and Hard of Hearing at the South Carolina Department of Mental Health; Walter Atkinson, who is a Senior Conciliation Specialist with the Department of Justice Community Relations Service; and Wayne C. Harris, a senior training official at the South Carolina Criminal Justice Academy. Also attending from the U.S. Attorney’s Office were U.S. Attorney Beth Drake, Civil Division Chief Barbara Bowens, Affirmative Civil Rights Coordinator Rob Sneed, Criminal Civil Rights coordinator Alyssa Richardson, and Law Enforcement Coordinator Becky Plyer.
The group discussed issues facing South Carolina’s Deaf and Hard of Hearing community when interacting with law enforcement. They also discussed training programs and opportunities for law enforcement through the South Carolina Criminal Justice Academy. The South Carolina Criminal Justice Academy, the SC Association of the Deaf, and the South Carolina Department of Mental Health were eager to partner in the immediate future in additional training for law enforcement in order to enhance communication between law enforcement and persons who are deaf or hard of hearing.
According to U.S. Attorney Beth Drake, collaborative efforts such as this are a “win-win” situation for South Carolina. The Deaf and Hard of Hearing community can impart invaluable training and experience to law enforcement; and the law enforcement community will be better prepared to protect and serve persons hard of hearing or deaf. “The South Carolina Criminal Justice Academy does terrific work with the resources it has to prepare our officers for the challenges on the streets. This meeting this week is just another example of how the Criminal Justice Academy leans in to the real life challenges that officers face on the street. Every dollar spent in training our officers at the CJA saves lives.”
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Two Individuals Arrested and Charged in Manhattan Federal Court with Securities and Wire Fraud for Participating in A Multimillion-Dollar Ponzi SchemeRead the Press Release
Joon H. Kim, the Deputy United States Attorney for the Southern District of New York, and William F. Sweeney, Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that STEVEN SIMMONS and JOSEPH MELI were arrested this morning on conspiracy, securities fraud, and wire fraud charges stemming from their participation in a scheme to defraud investors and provide those fraud proceeds to earlier investors in a hedge fund (the “Hedge Fund”). MELI is also charged with wire fraud in connection with a related fraudulent scheme in which MELI solicited investments through false representations that MELI had entered into an agreement to purchase tickets to a particular Broadway show (the “Show”), which MELI could then resell for a profit.
SIMMONS and MELI are expected to be presented today in Magistrate Court before the Honorable James C. Francis IV.
Deputy U.S. Attorney Joon H. Kim said: “As alleged, while soliciting funds from investors for legitimate-sounding investments, Steven Simmons and Joseph Meli were in fact running Ponzi schemes. Meli allegedly made up out of whole cloth purported deals to buy Broadway tickets that he could later sell at a profit. But as alleged, Meli was just robbing Peter to pay Paul. Thanks to the work of the FBI, the curtain has fallen on Simmons and Meli's alleged fraud scheme.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “When fraudsters think they’re going to get away with scheming investors out of money, they tend to forget that at some point the money will run out. It’s the way a Ponzi scheme ends. At some point, the original investors will want to see returns on their investments, and they’re going to demand an explanation as to why there isn’t any money. The men arrested in this case even allegedly joked about the scheme, calling it a ‘shell game.’ This should serve as a warning to others playing the same games, at some point, the FBI and our law enforcement partners will discover the fraud and will make sure the criminals behind it are held accountable.”
According to the Complaint unsealed today in Manhattan federal court[1]:
Beginning in at least November 2015 through in or about January 2017, SIMMONS and MELI solicited investments by falsely representing to the investors that their funds would be used for legitimate, specified, investment purposes. SIMMONS represented that investor funds would be invested in securities by the Hedge Fund and MELI represented that investor funds would be used to purchase a large number of tickets for the Show which would then be resold by MELI for a profit. In fact, SIMMONS and MELI failed to invest the investor monies as promised, but rather used the money, in a Ponzi-like fashion, to fund the repayment of earlier investors in the Hedge Fund whose redemption requests could not be forestalled, and diverted investor monies to their own use.
Among other false and misleading statements, SIMMONS told one investor (“Victim Entity-1”) that its funds would be placed by the Hedge Fund with a highly successful group of portfolio managers, and provided performance information for these portfolio managers. In truth and in fact, SIMMONS solicited those investment funds from Victim Entity-1 for the purpose of repaying an earlier investor in the Hedge Fund that had demanded the return of its investment. Most of Victim Entity-1’s funds were, within minutes of their receipt by the Hedge Fund, wired to the earlier investor. The following day, $50,000 was wired by the Hedge Fund to an account controlled by SIMMONS. In a later consensually recorded conversation with a cooperating witness (the “CW”), SIMMONS expressed concern that Victim Entity-1 would contact the portfolio managers with whom it believed its funds were invested and learn that “there’s no . . . money.”
MELI also solicited at least three investors in a separate business run by MELI by falsely representing that he had entered into an agreement with the producer of the Show under which MELI would purchase a large number of tickets to the Show and then resell those tickets at a profit. MELI promised these investors a share in these profits. In truth and in fact, MELI had not entered into an agreement to purchase tickets to the Show but rather diverted investor money to his own personal use, including spending more than $200,000 at a luxury car dealership, and used investor monies to repay earlier investors in both his own Ponzi-like ticket resale scheme and the Hedge Fund. In later consensually recorded conversations with the CW, MELI discussed his “fraudulent ticket deal” and described playing a “shell game” with investor monies.
* * *
SIMMONS, 48, of Wilton, Connecticut, and MELI, 42, of Manhattan, were arrested this morning. SIMMONS is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud. MELI is charged with one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and two counts of wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case 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. Kim praised the work of the FBI and thanked the Securities and Exchange Commission for its assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Individuals Plead Guilty in $55 Million Health Care Fraud Scheme at Two Brooklyn Medical ClinicsRead the Press Release
Three individuals pleaded guilty this week in connection with a health care fraud scheme involving two Brooklyn, New York clinics that caused approximately $55 million in false and fraudulent claims to Medicare and Medicaid.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Regional Office, Acting Special Agent in Charge Kathy A. Enstrom of Internal Revenue Service Criminal Investigation’s (IRS-CI) New York Office and Medicaid Inspector General Dennis Rosen of New York State Office of Medicaid Inspector General (OMIG), made the announcement.
Olga Proskurovsky, 49, and Yuriy Omelchenko, 49, both of Brooklyn, New York, each pleaded guilty to one count of conspiracy to commit health care fraud. Pursuant to their plea agreements, the defendants agreed to forfeiture money judgments in the amount of $17,216,687. Isak Aharanov, 42, of Brooklyn, New York, also pleaded guilty to two counts of conspiracy to commit money laundering and one count of conspiracy to defraud the United States. The defendants pleaded guilty before U.S. District Judge Roslynn R. Mauskopf of the Eastern District of New York.
According to the defendants’ admissions made as part of the plea agreements, Proskurovsky served as a medical biller and Omelchenko worked as a therapist manager at Prime Care on the Bay LLC (Prime Care) and Bensonhurst Mega Medical Care P.C. (Bensonhurst). The defendants admitted that they assisted in a scheme to defraud the Medicare and Medicaid programs in which patients subjected themselves to medically unnecessary health services, including physical and occupational therapy, provided by unlicensed staff. To conceal the scheme, Proskurovsky and Omelchenko admitted that occupational and physical therapists falsified patient charts and medical billing documents.
As part of his plea agreement, Aharanov admitted that he and co-conspirators paid patients in order to induce them to come to Prime Care, Bensonhurst and Total Rehab and Physical Therapy P.C. Aharanov further admitted that he used a bank account opened in the name of one of his companies to launder funds and generate the cash needed to make these illegal kickback payments.
Fifteen other individuals have pleaded guilty in connection with the scheme.
HHS-OIG, IRS-CI and the New York State OMIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. Trial Attorneys A. Brendan Stewart and Richard A. Powers of the Fraud Section and Assistant U.S. Attorney F. Turner Buford of the Eastern District of New York, formerly a Fraud Section trial attorney, prosecuted the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.