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25 January 2017
Disbarred Winter Park Attorney Pleads Guilty to Defrauding Clients and Banks of $2.7 MillionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Julie W. Kronhaus (52, Winter Park) has pleaded guilty to two counts of wire fraud and one count of bank fraud. She faces a maximum penalty of 20 years in federal prison for the wire fraud count and up to 30 years’ imprisonment for the bank fraud count. A sentencing date has not yet been set.
According to the plea agreement, from June 2009 to February 17, 2015, Kronhaus, who was a licensed attorney and Certified Public Accountant in Florida, defrauded her clients and banks of approximately $2.7 million. As part of her practice, Kronhaus would act as a trustee for her clients and also hold their money in various bank accounts depending on the purpose of trust. Instead of using the funds for the purpose intended by her clients, Kronhaus would divert the money into her law firm’s bank accounts and pay for her personal expenses.
In addition, Kronhaus engaged in a check kiting scheme where she would write checks with accounts that had insufficient funds. She would deposit the worthless checks into her trust account at another bank to give the appearance that there were sufficient funds in the account. She then issued checks from her trust account to her clients, taking advantage of the bank’s float time.
This case was investigated by the Seminole Financial Crimes Task Force and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.
Dewey Man Pleads Guilty to $8.2 Million K2 ConspiracyRead the Press Release
TULSA, OKLAHOMA – U.S. Attorney Danny C. Williams, Sr., announced today that John Ray James of Dewey, pleaded guilty before United States District Judge Claire V. Egan to his role in a conspiracy related to the purchase and sale of $8.2 million of synthetic cannabinoids, also known as K2, at three retail smoke shops in Tulsa, Owasso and Claremore.
At his change of plea hearing, James admitted that, from October 2011 to October 2014, he purchased for resale products falsely labeled as “potpourri,” “aromatherapy,” and “not for human consumption” which he knew contained synthetic drugs that customers purchased for human consumption.
“Synthetic drugs are a serious health threat that is especially dangerous to the young people of our communities,” said U.S. Attorney Williams. “These synthetic drugs are sold with harmless sounding names to impressionable youth who are typically unaware of the harmful chemicals they are ingesting. The chemicals in these drugs imported from China and Hong Kong are not approved for human consumption and have led to psychotic episodes, seizures and even death.”
IRS-CI Assistant Special Agent in Charge for the Dallas Field Office, Kelly Carpenter, stated, “Synthetic drugs represent a serious public health problem and are generally marketed toward teens and young adults. The consumption of these illegal substances endangers young people around the country and can result in serious health issues, including death. IRS-CI is committed to working with our law enforcement partners to protect the public and to dismantle the drug organizations that promote the use of these toxic chemicals for their own financial gain.”
DEA Assistant Special Agent in Charge Richard Salter stated, “The successful conclusion of this investigation represents what can be achieved when law enforcement, the medical community, educators and concerned parents come together for the welfare of our children. Synthetic cannabinoids are unpredictably dangerous and can be deadly.”
James will face a maximum penalty of five years in prison and a $250,000 fine. In addition, James agreed to the forfeiture of seized funds in the amount $1.7 million.
The investigation is part of the Organized Crime Drug Enforcement Task Force (OCDETF) and High Intensity Drug Trafficking Area (HIDTA) programs led by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation and the Bureau of Indian Affairs. The case is being prosecuted by Assistant United States Attorney Catherine J. Depew.
Dallas, Texas Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CHAD ANTHONY COX, age 27, of Dallas, Texas, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both; and to POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 60 months imprisonment consecutive to any other sentence imposed.
The Indictment alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about October 6, 2016, within the Eastern District of Oklahoma, the Defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Chickasaw Nation Tribal Police, the Bureau of Indian Affairs, and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Dallas County Man Sentenced for Jacksonville Bank BurglaryRead the Press Release
TYLER, Texas – A 33-year-old Dallas man has been sentenced to federal prison for burglarizing a bank in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Calvin Lee Browning pleaded guilty on Aug. 23, 2016, to bank burglary and was sentenced to 42 months in federal prison by U.S. Fifth Circuit Court of Appeals Judge Catharina Haynes. Browning was also ordered to pay restitution in the amount of $58,376.75.
According to information presented in court, on Feb. 9, 2016, Browning and three others broke into the Jacksonville branch of Austin Bank early in the morning before the bank had opened for business. Three of the individuals were dropped off at the bank while the other waited nearby with a getaway car. After disabling the bank’s surveillance cameras and security system, the defendants stole more than $30,000 from the bank’s automated teller machine cash drawers. They then left the bank, returned to the getaway car and left the area. A local patrol unit attempted a traffic stop and a high speed chase ensued. During the chase, all four men bailed out of the vehicle and attempted to flee on foot. One individual was apprehended at the scene and the others were arrested later
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Frank Coan.
Court Authorizes Service of John Doe Summons Seeking the Identities of U.S. Taxpayers Who Have Used Debit Cards in Furtherance of Tax EvasionRead the Press Release
Today a federal court in Montana unsealed an order authorizing the Internal Revenue Service (IRS) to serve a John Doe summons on Michael Behr of Bozeman, Montana, seeking information about U.S. taxpayers who may hold offshore accounts established by Sovereign Management & Legal LTD (SML), a Panamanian entity. Specifically, the IRS is seeking records of U.S. taxpayers who, during the years 2005 to 2016, had been issued a “Sovereign Gold Card” debit card that could be used to access the funds in those accounts in such a manner as to evade their obligations under internal revenue laws. The IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown.
U.S. taxpayers seeking to hide their offshore assets often utilize the services of offshore trusts and corporate service providers that open bank accounts, create corporations and other entities, and serve as nominee officers. In its petition seeking the issuance of the John Doe summons, the United States alleges that SML advertises various “packages” to allow taxpayers to hide their assets offshore. These packages include corporations owned by other entities (to include fake charitable foundations), all held in the name of nominee officers provided by SML. SML then opens bank accounts for these entities and provides debit cards in the name of the nominee to the taxpayer. By using such cards, taxpayers seek to access their offshore funds without revealing their identities. U.S. District Court Judge Brian Morris found that there is a reasonable basis for believing that U.S. taxpayers may be using the Sovereign Gold Card to violate federal tax laws.
“The Department of Justice and the IRS are committed to stopping the use of foreign bank accounts to evade U.S. tax laws,” said Acting Assistant Attorney General David A. Hubbert, head of the Justice Department’s Tax Division. “This John Doe summons is yet another example of how we are using all available tools to identify, investigate and hold accountable those who cheat our nation’s tax system by hiding money offshore, as well as those individuals and entities facilitating U.S. taxpayers engaged in this conduct. The time to come forward and come into compliance is running short, and those who continue to violate U.S. tax and reporting laws will pay a heavy price.”
“In seeking this John Doe summons, the IRS wants to ensure that certain pre-paid payment card users are meeting their responsibilities to properly pay their taxes,” said IRS Commissioner John Koskinen. “We are taking this step as part of our longstanding efforts against the use of secret offshore accounts. This action will help ensure that pre-paid cards aren’t being inappropriately used to repatriate hidden income and avoid taxes.”
This case is part of an ongoing effort to stop U.S. taxpayers from using offshore financial accounts as a way to evade federal tax laws. The Justice Department previously obtained a similar order from the U.S. District Court for the Southern District of New York, authorizing issuance of eight separate John Doe summonses on bank and other entities for information related to SML and its customers in the United States. The evidence submitted in this request to issue a John Doe summons was built in part on information provided in response to the earlier summons.
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to report a foreign account can result in a penalty of up to 50 percent of the amount in the account at the time of the violation. U.S. taxpayers are reminded that the IRS currently has in place an Offshore Voluntary Disclosure Program where U.S. taxpayers can come forward and disclose their offshore accounts and income. For more details, please go to the IRS’s website: www.irs.gov/uac/2012-Offshore-Voluntary-Disclosure-Program or https://www.irs.gov/individuals/international-taxpayers/options-available-for-u-s-taxpayers-with-undisclosed-foreign-financial-assets.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Columbia Tax Preparer Sentenced for Fraud Scheme, Failure to pay TaxesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., tax preparer was sentenced in federal court today for defrauding his clients and failing to pay his personal income taxes, which totaled nearly $300,000.
David Lee Keithley, 63, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to two years in federal prison without parole. The court also ordered Keithley to pay $291,041 in restitution to his victims. Keithley must surrender on March 10, 2017, to begin serving his sentence.
On Aug. 2, 2016, Keithley pleaded guilty to one count of assisting in the filing of a false income tax return and one count of failing to file an income tax return.
Keithley owned and operated Keithley and Associates, offering tax preparation and payroll tax services in Columbia. Keithley was hired by his clients to prepare the proper tax returns as well as make the tax deposits to the government. After accepting funds from his clients, however, Keithley failed to make the clients’ tax deposits to the government. Instead, Keithley admitted, he used the money for his own personal benefit. When clients contacted Keithley after receiving letters from the IRS indicating these returns had not been filed or taxes had not been paid, he told his clients he would contact the IRS to correct it. The total amount of these misappropriated funds is $120,354.
Keithley also admitted that he willfully failed to file federal income tax returns for tax years 2009 through 2013. The total amount of tax owed by Keithley to the IRS for those years is $148,423. In addition, Keithley owes the state of Missouri $22,264 for state income taxes due for the years 2009-2013.
The total loss caused by Keithley’s criminal conduct is $291,041.
According to court documents, Keithley has a lengthy criminal history of theft and fraud, including three state felony convictions that involved, among other crimes, thefts from business clients and stealing funds that were supposed to be used for a client’s tax payment.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Columbia Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Jordan Daniel Smith, 23, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to four years and nine months in federal prison without parole.
On July 5, 2016, Smith pleaded guilty to being a felon in possession of a firearm. Smith admitted that he was in possession of a Sig Sauer 9mm pistol and ammunition on Oct. 6, 2015.
Smith was arrested after he fled from Columbia police officers on Oct. 6, 2015. Smith, who was driving a 2000 Lincoln LS, was stopped for a traffic violation. When a police detective approached and instructed him to turn off his vehicle, Smith refused and sped away. Smith ran a stop sign, passed another car and drove at speeds between 70-80 mph on Columbia surface streets. Eventually Smith stopped again and was arrested.
A private citizen found the loaded handgun lying on the street along the route of the car chase.
The court found that Smith possessed the firearm in connection with another felony offense. Officers found a scale with cocaine residue in the center console of the car that Smith was driving. Officers also found marijuana and crumbs of cocaine in the vehicle.
Smith pleaded guilty in state court to resisting arrest by fleeing-creating a substantial risk of serious injury and was sentenced to four years’ custody on Aug. 22, 2016.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smith has prior felony convictions for assault and armed criminal action.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Colorado Springs Man Who Used Identity of Internet Crimes Against Children Officer Sentenced to 30 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
DENVER – Brandon Tyler Hill, age 31, of Colorado Springs, Colorado, was sentenced on January 19, 2017 by U.S. District Court Judge R. Brooke Jackson to serve 360 months (30 years) in federal prison, followed by a lifetime of supervision for transportation of child pornography, Acting U.S. Attorney Bob Troyer, Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department, and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Denver Division Acting Special Agent in Charge John Eisert announced.
On May 6, 2015, a federal grand jury returned an Indictment charging Brandon Tyler Hill, of Colorado Springs, and Rhiannon Carnahan, of Woodland Park, Colorado, with child pornography related charges. Prior to the indictment, Hill and Carnahan were charged via Criminal Complaints. Hill pled guilty to an Information charging three counts of transportation of child pornography on March 31, 2016. Carnahan has pled guilty to child pornography charges and is scheduled to be sentenced on February 21, 2017.
According to court documents, the Colorado Springs Police Department initiated an investigation after a civilian witness reached out to law enforcement to report that Hill had sent unwanted child pornography images via email and was being extorted to produce more child pornography images. As part of the investigation, it was determined that the defendant utilized numerous identities, including that of an ICAC police officer, to extort the civilian witness to produce child pornography. The investigation revealed that Hill was also communicating online with co-defendant Rhiannon Carnahan, who he learned had access to a child who was 3 years old when the offense conduct began. Hill made numerous and repeated requests for images and videos depicting the 3 year old engaged in sexually explicit conduct. Hill also used various pseudonyms, including the identity of an ICAC police officer, to communicate with Carnahan. During the course of the communications and in response to Hill’s requests for child pornography depicting the 3 year old, Carnahan took sexually explicit images and videos of the child with her cell phone and sent them to Hill. Hill has a prior conviction for Criminal Attempt to Commit Sexual Exploitation of a Child in El Paso County, Colorado.
“This defendant earned his way to a 30-year sentence: he preyed on our most innocent and most vulnerable, and he pretended to be a cop at times while doing it,” said Acting U.S. Attorney Bob Troyer.
“This is a serious crime, and thanks to our officers and resources, the Colorado Internet Crimes Against Children (ICAC), working with law enforcement partners, were able to investigate and apprehend this individual,” ICAC Commander and Colorado Springs Police Department Lieutenant Christina Sheppard said. “This defendant is going to prison for a long time thanks to the work of law enforcement and civilians, and in partnership with the U.S. Attorney’s Office. This is an important fight to protect our children.”
“Our HSI special agents work closely with other law enforcement agencies to identify, investigate, and present for prosecution anyone who engages in producing, distributing or possessing child pornography,” said John Eisert, special agent in charge of HSI Denver. “The federal penalties for these heinous crimes against children are appropriately severe, as this 30-year prison sentence demonstrates.”
This case was investigated by the Colorado Springs Police Department and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), with support provided by the Woodland Park Police Department.
Hill was prosecuted by Assistant U.S. Attorney Alecia Riewerts, Project Safe Childhood Coordinator.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colin Chisholm Pleads Guilty to Stealing More Than $2 Million from Investors in Television Network StartupRead the Press Release
United States Attorney Andrew M. Luger announced the guilty plea of COLIN ALEXANDER CHISHOLM, 67, for stealing more than $2.1 million from investors by lying to them about an investment in a purported television network startup. The defendant pleaded guilty yesterday before U.S. District Chief Judge John R. Tunheim in Minneapolis, Minn.
“Colin Chisholm is now facing the consequences for his long trail of lies as he ripped people off,” said Minnesota Commerce Commissioner Mike Rothman. “Chisholm lied to prospective investors about his personal and professional background. But most damaging for his victims, he lied about what he was doing with the money they had entrusted to him. Stopping this investment scam and bringing this white-collar criminal to justice demonstrate the strong partnership between the Commerce Fraud Bureau and federal authorities.”
“The U.S. Postal Inspection Service will continue to protect the integrity of the US Mail and aggressively investigate individuals such as Colin Chisholm who use the mail to defraud individuals or businesses of money and property,” said Craig Goldberg, Inspector in Charge of the Denver Division of the United States Postal Inspection Service, which covers Minnesota.
According to the defendant’s guilty plea, since 2004, CHISHOM used The Caribbean Television Network, Inc., (TCN) an entity he formed purportedly to broadcast satellite television throughout the Caribbean, to solicit funds from investors. Throughout the scheme, CHISHOLM told investors that TCN was on the verge of securing between $20 million and $100 million in funding to begin broadcasting, and that their investment would be used as interim financing for TCN.
According to the defendant’s guilty plea, as part of his scheme to obtain money from potential investors, CHISHOLM lied to them about the progress and viability of the main funding sources for TCN.
According to documents filed in court, CHISHOLM also lied to investors about his personal background. He told some investors that he was the grandson of Hugh J. Chisholm, Jr., and the son of William Chisholm, of the Oxford Paper Company. In falsely claiming this family lineage, CHISHOLM gave the false impression that he came from considerable family wealth. CHISHOLM also claimed to be a Scottish Chieftain of the Clan Chisholm and claimed to have close personal ties to members of the Bush family, specifically to Prescott S. Bush, Jr., the deceased brother of former President George H.W. Bush. CHISHOLM further claimed to provide scholarships to Bowdoin College, where Hugh J. Chisholm, Jr., received an honorary degree.
According to his guilty plea, CHISHOLM also lied about his professional background, most notably making the claim to potential investors that he had worked as Vice President for Turner Program Services, to have a relationship with Ted Turner, and to have participated in the development and launch of CNN and CNN Headline News, including writing the business plan for CNN.
According to his guilty plea, CHISOLM stole a total of more than $2.1 million from at least 38 investors.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau and the United States Postal Inspection Service.
The U.S. Attorney’s Office thanked the Hennepin County Attorney’s Office for its substantial assistance in this case.
This case is being prosecuted by Assistant United States Attorney Lola Velazquez-Aguilu.
Defendant Information:COLIN ALEXANDER CHISHOLM, 67
Minneapolis, Minn.Convicted: • Mail fraud, 1 count
Cockeysville Man Facing Federal Indictment for Production and Receipt of Child Pornography and for CyberstalkingRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment late on January 24, 2017, charging Kevin Graham Conlon, age 30, of Cockeysville, Maryland, with: production of child pornography; receipt of child pornography; and cyberstalking.
The indictment 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; and Chief James W. Johnson of the Baltimore County Police Department.
According to the indictment and court documents Conlon posed as an 18-year-old woman to obtain photos and videos of a minor victim engaged in sexually explicit conduct. Further, the indictment alleges that from April 13, 2016 through January 6, 2017, Conlon used electronic communication, including the internet and Facebook, to intentionally injure, harass, and cause substantial emotional distress to the victim and the victim’s family. Court documents allege that Conlon opened several Facebook profiles in the victim’s name, without her permission. These unauthorized accounts “friended” many of the victim’s friends and sent them the sexually explicit photos of the victim.
If convicted, Conlon faces a mandatory minimum sentence of 15 years and up to 30 years in prison for production of child pornography; a mandatory minimum sentence of five years and up to 20 years in prison for receipt of child pornography; and five years in prison for cyberstalking. Conlon is detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. 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 and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Co-owner of Chicago Medical Transport Company Sentenced to Five Years in Prison for Overbilling Illinois Medicaid $4.7 MillionRead the Press Release
SPRINGFIELD, Ill. – A Chicago man has been sentenced to five years in prison for fraudulent overbilling an estimated $4.7 million to Illinois’ Medicaid program for non-emergency medical transport. Gregory D. Toran, 68, of Hazel Crest, Ill., was also ordered to pay $4.7 million in restitution. U.S. District Judge Sue E. Myerscough, who sentenced Toran on Jan. 23, allowed Toran to remain on bond until the federal Bureau of Prisons directs him to self-report to a prison facility to begin his prison sentence.
Toran owned IBT Transportation, LLC., a non-emergency medical transport company, with Tina Kimbrough, 44, of Berwyn, Ill. In August, Kimbrough was sentenced to 30 months in prison for her role in the scheme. Kimbrough previously pled guilty to participating in the conspiracy with Toran. Kimbrough was also ordered to pay $4 million restitution, due jointly and severally with Toran.
As a result of the scheme, IBT fraudulently overbilled the state’s Medicaid program by an estimated $4.7 million for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven. During the period of the conspiracy, from December 2005 to June 2011, IBT billed and was paid claims totaling approximately $7.3 million.
The court found that IBT billed for deceased individuals and individuals who were not transported because they were in the hospital and billed based on dates individuals were approved for transportation, whether they rode or not. At times, IBT billed for more riders than it could physically transport. Further, the court found that although the handbook mileage rules were straightforward that transportation providers could only bill mileage for the first rider, Toran directed billers to incorrectly bill for mileage - from not billing mileage at all, to billing mileage for all riders, and later, every fourth rider.
The charges were investigated by the Illinois State Police Medicaid Fraud Control Bureau; the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers Illinois’ Medicaid program, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass prosecuted the case.
Clinical Psychologist and Owner of Psychological Services Centers Convicted in $25 Million Psychological Testing Scheme Carried Out Through Eight Companies in Four Gulf Coast StatesRead the Press Release
WASHINGTON –Two owners of psychological services companies, one of whom was a clinical psychologist, were convicted yesterday for their involvement in a $25.2 million Medicare fraud scheme carried out through eight companies at nursing homes in four states in the Southeastern United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcment.
Rodney Hesson, Psy.D, 47, of Slidell, Louisiana, licensed clinical psychologist and owner of Nursing Home Psychological Service of Louisiana LLC, Nursing Home Psychological Service of Mississippi LLC, Nursing Home Psychological Services of Florida LLC and Nursing Home Psychological Service of Alabama LLC (collectively NHPS), and Gertrude Parker, 63, of Slidell, Louisiana, owner of Psychological Care Services of Louisiana, Psychological Care Services of Mississippi, Psychological Care Services of Alabama and Psychological Care Services of Florida (collectively PCS), were convicted following a seven-day jury trial in the Eastern District of Lousiana. They were each convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to make false statements related to health care matters. The jury verdict included a money judgment of $8,956,278, as well as forfeiture of Hesson’s home and at least $525,629 in seized currency. A sentencing hearing for both defendants is set for May 4, 2017, before U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to evidence presented at trial, the defendants’ companies contracted with nursing homes in Alabama, Florida, Lousiana and Mississippi to allow NHPS and PCS clinical psychologists to provide psychological services to nursing home residents. Hesson and Parker caused these companies to bill Medicare for hours of psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent. Medicare paid more than $13.5 million on the fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Senior Litigiation Counsel John Michelich and Trial Attorneys Katherine Raut and Katherine Payerle of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
Clinical Psychologist and Owner of Psychological Services Centers Convicted in $25 Million Psychological Testing Scheme Carried Out Through Eight Companies in Four Gulf Coast StatesRead the Press Release
Two owners of psychological services companies, one of whom was a clinical psychologist, were convicted yesterday for their involvement in a $25.2 million Medicare fraud scheme carried out through eight companies at nursing homes in four states in the Southeastern United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.
Rodney Hesson, Psy.D, 47, of Slidell, Louisiana, licensed clinical psychologist and owner of Nursing Home Psychological Service of Louisiana LLC, Nursing Home Psychological Service of Mississippi LLC, Nursing Home Psychological Services of Florida LLC and Nursing Home Psychological Service of Alabama LLC (collectively NHPS), and Gertrude Parker, 63, of Slidell, Louisiana, owner of Psychological Care Services of Louisiana, Psychological Care Services of Mississippi, Psychological Care Services of Alabama and Psychological Care Services of Florida (collectively PCS), were convicted following a seven-day jury trial in the Eastern District of Louisiana. They were each convicted of one count of conspiracy to commit health care fraud and one count of conspiracy to make false statements related to health care matters. The jury verdict included a money judgment of $8,956,278, as well as forfeiture of Hesson’s home and at least $525,629 in seized currency. A sentencing hearing for both defendants is set for May 4, 2017, before U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to evidence presented at trial, the defendants’ companies contracted with nursing homes in Alabama, Florida, Louisiana and Mississippi to allow NHPS and PCS clinical psychologists to provide psychological services to nursing home residents. Hesson and Parker caused these companies to bill Medicare for hours of psychological testing services that these nursing home residents did not need or in some instances did not receive. Between 2009 and 2015, NHPS and PCS submitted over $25.2 million in claims to Medicare, a significant amount of these claims being fraudulent. Medicare paid more than $13.5 million on the fraudulent claims.
The FBI and HHS-OIG investigated the case, which was brought by the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Senior Litigation Counsel John Michelich and Trial Attorneys Katherine Raut and Katherine Payerle of the Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Clarion Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
A man who produced child pornography pled guilty today in federal court in Cedar Rapids.
Skyler Wyatt, age 25, from Clarion, Iowa, was convicted of one count of sexual exploitation of a child. At the plea hearing, Wyatt admitted that, in 2016, he knowingly used a child to produce child pornography.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Wyatt remains in custody of the United States Marshal pending sentencing. Wyatt faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, $250,000 in fines, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Wright County Sheriff’s Office and the Webster County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-3045.
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Citizen of Togo Admits Misusing PassportRead the Press Release
ALBANY, NEW YORK – Koffi Roudolphe Sewoul, age 40, of Lome, Togo, pled guilty today to misuse of a passport.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
Sewoul admitted that on October 15, 2016, he attempted to enter the United States at the Champlain Port of Entry using his brother’s United States passport. Sewoul had successfully used the passport to travel from Togo to Accra, Ghana, on October 12, 2016 and then from Ghana to Montreal, Quebec, on October 13, 2016.
As a result of his conviction, Sewoul faces up to 10 years in prison and a fine of up to $250,000 when he is sentenced by U.S. Senior District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by United States Customs and Border Protection and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Charlotte Pimp Sentenced to 40 Years for Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Kenwaniee Vontorian Tate, 41, of Charlotte, to 40 years in prison for sex trafficking of a minor, sex trafficking by fraud, force and committing sex trafficking of a minor while being required to register as a sex offender, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Tate was also ordered to serve a lifetime under court supervision, to register as a sex offender, and to pay $42,100 as restitution to the victim of sex trafficking.
U.S. Attorney Rose is joined making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
In making today’s announcement U.S. Attorney Rose stated, “Tate preyed upon a vulnerable young girl, lured her into a world of sex and violence and exploited her in the worst possible way. Sex trafficking and victimizing minors for financial gain is a reprehensible crime. My office will continue to work closely with our law enforcement partners to identify and prosecute sex traffickers who profit from prostituting minors.”
“Human traffickers strip victims of their humanity; treating them as little more than pieces of meat to generate cash,” said Special Agent in Charge Annan “The depravity of the subject in this particular case reaches its lowest form, by forcing underage girls into this dark underworld of abuse and victimization; the public should breathe a sigh of relief that this dangerous criminal is now safely behind bars.”
According to filed documents, statements at today’s sentencing hearing and evidence presented at Tate’s trial, between September 2014 and February 2015, Tate caused and forced a minor female to engage in prostitution. Tate met the victim when she was a 15-year-old runaway and became her pimp shortly after they met. Tate and the minor victim moved from hotel to hotel while she worked as a prostitute. Testimony at trial established that Tate controlled all of the profits from the prostitution of the minor victim and used it to support himself. He also controlled the victim, who Tate required to follow his rules and to ask for his permission to do anything. Tate advertised the minor victim for sex on an Internet website and arranged sexual encounters for her.
Testimony at trial also revealed that while she the was prostituting for him, Tate physically abused the minor victim. Specifically, Tate slapped the minor victim, punched her in the face, pulled her hair, threw her to the ground, and slammed her head into the wall when she did not do as Tate instructed. Testimony at trial also established that Tate was careful to only hit the victim in the face one time because visible bruises affected her ability to make money as a prostitute. Trial evidence showed that the sex trafficking came to an end when CMPD officers arrested Tate on February 17, 2015, while looking for a different missing minor and found the victim hiding in Tate’s hotel room closet.
Trial evidence also established that at the time that Tate caused the minor victim to engage in prostitution, Tate was registered as a sex offender in North Carolina based upon previous state convictions in Minnesota for criminal sexual conduct. Tate was also convicted previously in Minnesota federal court for conspiracy to commit sex trafficking of a minor for his involvement in a sex trafficking ring, whose members transported adult and juvenile females from Minnesota to Las Vegas, Nevada, to engage in commercial sex acts. The judge in that case ordered Tate to serve a 16-month sentence.
Tate has been in federal custody since his arrest in November 2015. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by HSI and CMPD. Assistant U.S. Attorney Kimlani M. Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
California Man Sentenced to 37 Years for Attempted Bank Robbery, Discharging FirearmRead the Press Release
Jackson, TN – A California man who shot a woman twice during an attempted bank robbery has been sentenced to more than three decades in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
"Dominic Williams’ greed and reckless disregard for human life led him to shoot a law-abiding citizen and attempt to rob a federal bank," said U.S. Attorney Stanton. "This stern sentence is a clear reminder that individuals who decide to commit violent acts in our community will face severe consequences."
According to information presented in court, Dominic Williams, 37, of Los Angeles, California, snuck into the carport of Pamela Janeice Frisbee on the morning of March 18, 2015. Frisbee, a manager of a BancorpSouth bank, was at her home in Humboldt, Tennessee, preparing to leave for her job. When she exited her house and walked to the carport to get into her car, Williams was hiding in front of the vehicle with a Glock .40 caliber pistol. He stood up and pointed the gun at Frisbee before asking her if "she wanted to die today?"
Williams forced Frisbee into the driver’s seat of her vehicle at gunpoint and demanded that she drive to BancorpSouth. Once at the bank, Williams forced her to open the doors — the establishment had not yet opened — and the two went inside. He had her disable an alarm, and demanded she obtain money from the tellers’ drawers. The victim responded there was no money in the drawers. Williams then demanded that she open vaults in the bank to obtain money. When the victim told him that she was unable to open the vaults, he fired multiple shots at her, striking her in the chest and arm. Frisbee subsequently fell to the ground and played dead. Williams then shot and kicked out the back windows of the bank and fled.
Independent witnesses and bank employees notified the Humboldt Police Department (HPD) of the incident. After arriving on the scene, HPD’s chief of police observed Williams stripping clothing off into a dumpster a block from the bank. The police chief was able to arrest him, and the Federal Bureau of Investigation (FBI) was notified.
After Frisbee was airlifted to a Memphis hospital, FBI investigators responded. Williams was advised of his Miranda rights which he agreed to waive. He provided a recorded statement, informing FBI agents of where he hid his firearm and admitted that he attempted to rob the BancorpSouth bank. FBI agents subsequently recovered the .40 caliber pistol used in the crime. And clothing consistent with witness descriptions of the robber was recovered, as well as a mask and a roll of duct tape.
Frisbee was able to testify in federal court that she was kidnapped, forced against her will, assaulted, and that a firearm was discharged inside the bank.
"This sentence should send a resounding message that violent crimes will not be tolerated, and that law enforcement will not rest until the offenders are caught, prosecuted and held accountable for their actions," said Assistant Special Agent in Charge Jeremy N. Baker of the Memphis Field Office of the FBI. "I commend the Humboldt Police Department for their immediate response to identify and arrest this bank robber, and the professionalism and partnership of all involved throughout the investigation to bring him to justice."
Humboldt Police Chief Rob Ellis said: "I am grateful that our victim is doing well after such a horrendous act committed against her. I pray this gives her some closure and wish her all the best after what she has overcome. I also appreciate the help from the FBI, Gibson County Sheriff's Department, 28th Judicial Drug Task Force, Humboldt Fire Department, Gibson County EmergencyMedical Services, Humboldt Area Rescue Squad, and all others that assisted during the incident."
In August 2016, Williams pleaded guilty before U.S. District Judge J. Daniel Breen to single counts of attempted bank robbery, possession of a firearm during a crime of violence, and felony possession of a firearm.
On Wednesday, January 25, 2017, Judge Breen sentenced Williams to 444 months in federal prison. He will also be required to pay $66,719 in restitution.
This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the HPD.
Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.
California Drug Trafficker Sentenced to Federal PrisonRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on January 25, 2017, Francisco Torrez, 35, Carson, Cali., was sentenced before US District Judge Ralph R. Erickson to serve 20 years in prison after pleading guilty to Possession with Intent to Distribute a Controlled Substance. Judge Erickson also sentenced Torrez to serve five years of supervised release, and to pay a $100 special assessment to the Crime Victim’s Fund.
On February 26, 2016, the North Dakota Highway Patrol pulled over a vehicle driven by Torrez near Mapleton, North Dakota. A search of Torrez’s vehicle by the North Dakota Highway Patrol uncovered 17.8 pounds of methamphetamine and a large sum of cash. Upon further investigation it was determined that Torrez was working as a courier transporting methamphetamine from Las Vegas to Minneapolis.
This case was investigated by the North Dakota Highway Patrol Department.
Assistant US Attorney Jennifer Puhl prosecuted the case.
Brooklyn Man Charged with Hobbs Act Robbery of Convenience Store in BrownsvilleRead the Press Release
Denzell Oglesby was arrested today on a criminal complaint filed in federal court in the Eastern District of New York, charging him with the armed robbery of a convenience store in Brooklyn. Oglesby was arrested earlier today while being held in state custody, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Ashan M. Benedict, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As detailed in the complaint and as captured on the store’s surveillance camera, Oglesby entered the convenience store with a co-conspirator, who remains at-large. Oglesby pointed a firearm at the convenience store clerk, jumped over the store counter, and forced the store clerk to the floor. Oglesby’s co-conspirator struck and wrestled with the store clerk, while Oglesby stole cash proceeds and other items from the store. As the store clerk continued to resist the robbery, Oglesby repeatedly struck the store clerk in the head with the firearm before he and his co-conspirator fled.
“As alleged, the defendant engaged in a violent gun-point robbery and brutally beat the store clerk. Such wanton violence will not be tolerated,” stated United States Attorney Capers. “The defendant will now be held to account for his crime.” Mr. Capers expressed his grateful appreciation to the ATF and NYPD who are responsible for leading the investigation.
“Oglesby is alleged to have engaged in a brutal act of violence which undermines the safety and security of the people working and residing in the Brownsville section of Brooklyn,” stated ATF Special Agent in Charge Benedict. “The ATF Special Agents and NYPD
Detectives assigned to the SPARTA Task Force are targeting the most violent offenders for prosecution in Federal court. Today’s arrest should serve as a clear warning to those who would engage in an armed robbery that the full force of law enforcement resources may be brought to bear against you.”
“This crime was as brazen as it was brutal. We have no tolerance for this type of violence in our city. I want to thank the detectives, agents, and prosecutors for their thoroughness in ensuring that the defendant is held account for his actions, as alleged in the complaint,” stated NYPD Commissioner O’Neill.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a minimum of seven years in prison.
The government’s case is being prosecuted by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorney Andrew C. Gilman is in charge of the prosecution.
The Defendant:
DENZELL OGLESBY
Age: 23
Brooklyn, New York
Bayview/Hunter’s Point Tax Shop Owner Sentenced to Prison for Tax FraudRead the Press Release
SAN FRANCISCO – Josiah Larkin was sentenced to 37 months in prison and was ordered to pay $184,798 in restitution for filing, and conspiring to file, false federal income tax returns announced United States Attorney Brian J. Stretch and Assistant Special Agent in Charge IRS Criminal Investigation, Tyrone W. Blanchette. The sentence was handed down today by the Honorable Susan Illston, United States District Judge, after a six-day trial in September of 2016.
Evidence at trial showed that Larkin, 40, of San Francisco, set up an unauthorized franchise, Colbert Ball Tax, on Third Street in the Bayview/Hunter’s Point neighborhood of San Francisco. Larkin opened the tax shop on December 15, 2012, ten days before Christmas, and advertised “Get Up to $600- Even if Unemployed, On SSA or SSI.” Larkin filed false tax returns reporting that taxpayers with $0 income had paid $4,000 in qualified education expenses to attend college. This combination of $0 income and $4,000 in qualified education expenses resulted in a $1,000 tax refund based on the American Opportunity Tax Credit (“AOTC”). Larkin took approximately half of the $1,000 tax refund and gave the remaining half to his clients. On September 15, 2016, the jury convicted Larkin of one count of conspiring to file false tax returns, in violation of 18 U.S.C. § 286, and seven counts of filing false tax returns, in violation of 18 U.S.C. § 287.
“Today’s 37-month sentence should be a clear reminder that tax cheats who defraud the federal government wind up in jail,” said U.S. Attorney Stretch.
“With his storefront and neon sign, Josiah Larkin appeared to operate a legitimate tax business,” said Assistant Special Agent in Charge Blanchette. “In reality, he targeted vulnerable individuals with the promise of cash just days before Christmas. He filed false federal refund claims and kept half. IRS, Criminal Investigation will continue to aggressively pursue those who file false tax returns to claim refunds for which they are not entitled.”
In addition to the prison term and restitution, Judge Illston ordered the defendant to serve three years of supervised release. The defendant will begin serving the sentence on April 28, 2017.
Assistant U.S. Attorneys Cynthia Stier and Laurie Kloster Gray prosecuted the case. The prosecution is the result of an investigation by the Internal Revenue Service.
Armed Carjacking Defendant Sentenced on Federal ChartsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Curtis Pugh of Mobile, Alabama was sentenced to 11 years and 9 months by Chief United States District Court Judge William H. Steele. Miller pled guilty to the charge of Carjacking, and Brandishing a Firearm During and in Relation to a Crime of Violence in October of 2016. Pugh participated with 2 other codefendants in a carjacking that occurred on September 27, 2015.
On or about September 27, 2015, Curtis Pugh and two codefendants drove to the Forest Hill Apartments in Mobile, Alabama, in a Mazda sedan where they waited for the victim to walk to his car.
When the victim left his apartment to walk to his vehicle, a maroon Chevy Tahoe,Pugh’s codefendant, armed with a firearm, approached the victim from the rear and pointed a semi-automatic handgun in the victim’s face and asked him “what you got?” The gunman forced the victim into the passenger side of the Tahoe as the gunman positioned himself in the driver’s seat.
The gunman carjacked the victim’s car and drove off with the victim still inside. Curtis Pugh and one other codefendant follow behind in the Mazda, to a remote location in Prichard, Alabama.
Once in Prichard, the victim was forced out of the Tahoe and placed into the trunk of the Mazda. Curtis Pugh and his two codefendants, with the victim in the trunk, drove to an abandoned house where the victim was removed from the trunk and forced to contact his wife. Curtis Pugh and the two codefendants demanded $50,000.00 ransom be paid for the safe return of their male victim.
Chief United States District Court Judge William H. Steele sentenced Williams to serve five years of supervised release at the conclusion of his imprisonment.
Carjacking is a violation of Title 18, United States Code § 2119 and is punishable by a maximum term of imprisonment of 15 years.
Brandishing a Firearm During and in Relation to a Crime of Violence is a violation Title 18, United States Code § 924(c)(1)(A)(ii), and carries a minimum sentence of 7 years to life, to be served consecutively to any sentence on the related carjacking charge in this case.
This case was referred for prosecution by Special Agent David Kowalski, of the Federal Bureau of Investigation, Mobile Field Office, in conjunction with the Mobile Police Department. The case was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Christopher Baugh.
Albuquerque Resident Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE - Jesus Ramirez, 26, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by unlawfully possessing a firearm.
Ramirez and his co-defendants Richard Porras, 30, and Jonathan Griego, 27, both of Albuquerque, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Ramirez, Griego and Porras were arrested in Aug. 2016, on separate criminal complaints charging them with drug trafficking and firearms offenses. The three were subsequently charged together in a nine-count indictment filed on Aug. 9, 2016. The indictment charged Porras and Griego with conspiracy and possession of methamphetamine with intent to distribute. It also charged Porras with distributing methamphetamine on three occasions, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm; and Ramirez with possession of methamphetamine and heroin with intent to distribute, carrying a firearm in relation to a drug trafficking crime, and being a felon in possession of a firearm.
During today’s proceedings, Ramirez pled guilty to carrying a firearm in relation to a drug trafficking crime. In entering the guilty plea, Ramirez admitted that on Aug. 4, 2016, he carried and used a firearm in furtherance of a drug trafficking crime. Ramirez further admitted that he was carrying a firearm loaded with ammunition while in the process of distributing methamphetamine and heroin. At sentencing, Ramirez faces a statutory mandatory minimum penalty of five years in prison. A sentencing hearing has yet to be scheduled.
To date, 23 of the 104 defendants have entered guilty pleas and one been sentenced. The remaining defendants including Porras and Griego, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case.
Albion Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Ridder, 45, of Albion, NY, was arrested and charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Stephanie O. Lamarque and Aaron J. Mango, who are handling the case, stated that according to the complaint, on September 3, 2016, two Medina, NY, residents found a Samsung Centura smart phone in the trash in front of 726 South Main Street, the former residence of the defendant. The following day, one of the individuals who found the phone charged it, began searching through it, and opened the Facebook application which automatically connected to Facebook account of the Ridder. The phone also had pictures on it of individuals that the person knew as well as 75 images of young boys in various states of dress (bathing suits, underwear, etc.). Some pictures contained naked images of different boys. The individuals who found the phone turned the phone into the Village of Medina Police Department.
Further review of the phone and its contents by law enforcement officers uncovered a Facebook Messenger conversation that took place between Ridder and another individual. During the conversation the defendant wrote "I seen a few boys already at bout 10-12 with nice 1il butts and bulge in shorts mmmmm." The conversation spanned a period of several days during which the two continued to discuss prepubescent boys.
Officers also discovered another Facebook Messenger conversation between the defendant and second individual. During that conversation, Ridder wrote, "I see boys all the time wishing I could love one (guy tht is) lol...I c very cute lil boys all the time at walmart.”
On October 18, 2016, an undercover officer logged into a Facebook account and contacted the defendant through Messenger. During the conversation, the defendant advised that he lived in Albion, NY and stated, when describing himself to the officer, wrote, "im very down to earth... very open minded...biggest fantasy is to be with a bf laying on a blanket nude in the woods." The officer replied, "sounds like boy scout retreat." The defendant wrote back, "I been a boy scout... and yes... had a friend in it tht we messed around in our tent.. .I was 13 he was 12." The officerE replied, "that's wild, you ever still think about that now." Ridder then wrote, "Ya... I wish I can have tht chance again with a bf." As the conversation continued, the defendant told the officer, "Im a ped just like you. I know exactly how u get or feel...These laws... I hate them."
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer. Ridder is being held pending a detention hearing on February 1, 2017 at 11:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Medina Police Department, under the direction of Chief Chad Kenward.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
6 Defendants Sentenced in Racketeering, Murder CaseRead the Press Release
COLUMBUS, Ohio – Six of 19 defendants to be sentenced in a gang-related racketeering and murder case received their sentences this week in U.S. District Court.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the sentences handed down by U.S. District Judge Algenon Marbley.
Johnathan Holt, 24, of Columbus, was sentenced to life in prison with no chance of parole, plus an additional 25 years. He was convicted on all counts by a United States District Court jury following trial in December 2016.
Holt was the final of 20 individuals who were indicted in October 2014 in a racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery. Of the 20 total defendants, five others were convicted at trial, 13 pleaded guilty and one has died.
Holt’s specific charges include murder in aid of racketeering and murder through the use of a firearm during and in relation to a drug trafficking crime.
“Johnathan Holt earned every minute of the life sentence that he received today,” U.S. Attorney Glassman said. “For anyone starting down the road that Holt and his co-defendants traveled, I hope these sentences will make them think twice and take another path.”
The five other defendants sentenced this week all pleaded guilty to racketeering and/or murder charges. They include:
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Ismael Bowers – sentenced to 14 years.
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Tommy Coates – sentenced to 7 years.
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Joseph Hill – sentenced to 18 years.
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Freddie Johnson – sentenced to 10 years.
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Chris Warton – sentenced to 18 years.
Robert Wilson and Troy Patterson are scheduled to be sentenced tomorrow. Wilson pleaded guilty to racketeering conspiracy, and Patterson pleaded guilty to murder in aid of racketeering.
U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are representing the United States in this and the related cases.
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24 January 2017
Woman Who Defrauded IRS of $336,926 Sentenced to 24 Months in PrisonRead the Press Release
BOISE – Mary Galan, 66, of Twin Falls, Idaho, was sentenced today in United States District Court to 24 months in prison, followed by three years of supervised release, for the crime of conspiracy to defraud the United States, namely the Internal Revenue Service (“IRS”), U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Galan to forfeit and pay restitution of $336,926 to the IRS. Galan pleaded guilty to one-count of conspiracy on October 19, 2016.
“This prosecution and sentence send the clear message that those who defraud the federal government by claiming tax credits to which they are not entitled will be swiftly and surely brought to justice,” said Olson. “This defendant’s scheme cheated all taxpayers, and therefore all Americans.”
According to the plea agreement, since approximately 2006, Galan owned and operated Galan Accounting in Twin Falls, Idaho, which prepared tax returns for clients. Beginning in or about 2013 and continuing through in or about 2015, Galan conspired to defraud the IRS in its collection of her clients’ income taxes. She did so by claiming education credits on clients’ tax returns, through the American Opportunity Credit, knowing that the clients did not pay qualified higher education expenses for an eligible student, and thereby, did not qualify to claim the credit.
As set forth in the plea agreement, for tax years 2012 through 2014, Galan and her co-conspirators prepared 187 tax returns for 165 taxpayer clients claiming $342,901 in education credits from the College of Southern Idaho. These returns claimed $787,630 in qualified expenses from the school. Records from the College of Southern Idaho show that, of the $787,630 in qualified expenses claimed, only $8,905 in qualified expenses for only six students were actually paid. These payments would have legitimately generated $5,975 in education credits, not $342,901, for a tax loss of $336,926.
According to the plea agreement, before claiming the education credits on their taxpayer clients' behalf, Galan did not ask taxpayer clients if they were paying for education or for documentation supporting the credits. Rather, Galan merely asked taxpayer clients' if they had children of college age. For some taxpayer clients, Galan prepared tax returns directing the IRS to deposit refunds - belonging to taxpayer clients - into personal bank accounts belonging to Galan and her co-conspirators. In total, Galan received direct deposits of taxpayer client refunds of $219,490.
“Tax return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate,” said Steven Osborne, Special Agent in Charge, IRS-Criminal Investigation for the state of Idaho. "Our special agents use their investigative and financial expertise to detect and hold accountable abusive tax return preparers who falsely tell taxpayers they are eligible for tax credits that they are not entitled to receive.”
The case was investigated by the Internal Revenue Service, Criminal Investigation.
Today's announcement is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Wagoner Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that AARON EMIL WEEDEN, age 37, of Wagoner, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both.
The Indictment alleged that on or about November 13, 2016, in the Eastern District of Oklahoma, the Defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Wagoner Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Kristin Harrington represented the United States.
UB Student Sentenced on Drug Importation ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Adam Brzozowski, 23, of Queens, NY, who was convicted of conspiracy to import alprazolam, was sentenced to time served (approximately six months) and one year of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that Brzozowski and co-defendants Zhe Wang, and Kevin Szura, all UB students, imported shipments of pills or “bars” containing alprazolam, which is commonly known as Xanax, from Canada to Amherst, NY. In March 2016, law enforcement agents intercepted two packages addressed to Brzozowski that each contained nearly 3,000 Xanax bars. Wang and Szura ordered the drugs on dark net marketplaces via payment in bitcoins. The conspirators are estimated to have unlawfully imported upwards of 80,000 bars over the course of a year, which they largely sold locally.
Wang was convicted and sentenced to 24 months in prison. Szura has been convicted and is awaiting sentencing.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
U.S. Marshals Arrest Jefferson County Man for Sex Trafficking of a MinorRead the Press Release
BIRMINGHAM – U.S. Marshals late last week arrested a Jefferson County man on a charge of sex trafficking of a minor, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
Marshals arrested TORRVEZ LEMARCUS CALDWELL, 22, on Thursday in Birmingham on one count of sex trafficking of a minor in 2015. A federal grand jury indicted Caldwell on the charge in April. He appeared before U.S. Magistrate Judge John Ott today for arraignment on the charge against him. He remains in custody.
Caldwell’s arrest comes during National Slavery and Human Trafficking Prevention Month.
The maximum penalty for sex trafficking a minor is life in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Xavier O. Carter is prosecuting.
Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Two men plead guilty to illegal possession of a firearm chargesRead the Press Release
ELKINS, WEST VIRGINIA – Two men convicted for illegally possessing firearms, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Eric Wilson, 29, of Coalton, West Virginia, pled guilty to one count of “Unlawful Possession of Firearm by Drug Addict.” He admitted to possessing a .32 caliber revolver in May 2016.
Joseph Wayne Shipman, 43, of Buckhannon, West Virginia, pled guilty to one count of “Unlawful Possession of a Firearm.” Shipman, who had previously been convicted of a felony offense in Upshur County, is prohibited from possessing a firearm. He admitted to possessing multiple firearms in December 2016 in Upshur County, West Virginia.
They each face up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated the Wilson case and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the Shipman case.
U.S. Magistrate Judge Michael John Aloi presided.
Two Indicted in Sweeping Mortgage Fraud InvestigationsRead the Press Release
PROVIDENCE, R.I. – A 14-count federal indictment filed in U.S. District Court in Providence charges two individuals, Hasan Hussain, 55, of Princeton, N.J., and Ricardo Abreu, 50, of Cranston, R.I., with allegedly participating in a conspiracy to defraud financial institutions, investors and financially distressed homeowners of at least 14 properties in Providence, Pawtucket and Cranston of fees, rental income, mortgage payment funds, property ownership and/or proceeds from the sale of their properties.
United States Attorney Peter F. Neronha announced today that this indictment represents the latest charges brought in a wide-ranging series of on-going federal criminal investigations into mortgage fraud in Rhode Island. The investigations are being conducted by the United States Attorney’s Office, the FBI, the U.S. Department of Housing and Urban Development Office of Inspector General, the U.S. Secret Service and the Rhode Island State Police Financial Crimes Unit.
To date, 10 individuals have been charged in U.S. District Court in Providence.
United States Attorney Peter F. Neronha commented, “Today’s defendants join their cohorts in facing charges for allegedly manipulating the mortgage lending process in a whole variety of ways. As alleged in the Indictment, the defendants used more than a dozen properties to advance their scheme to defraud, and in some instances, used a single property to defraud and victimize multiple people and entities. As alleged, their creativity was exceeded only by their greed, but their scheme, however complicated, has now been unraveled by law enforcement. The kind of schemes alleged here raise the cost of mortgage lending for all Rhode Islanders, and are therefore deserving of our most concerted law enforcement efforts.”
Joining United States Attorney Peter F. Neronha in announcing an indictment which charges Hasan Hussain with one (1) count of conspiracy, five (5) counts of wire fraud and eight (8) counts of aggravated identity theft; and Ricard Abreu with one (1) count of conspiracy and two (2) counts of wire fraud are Harold H. Shaw, Special Agent in Charge of the Boston Division of the FBI; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Brian Deck, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
It is alleged that Hasan Hussain, through his various enterprises, with the assistance of employee and co-conspirator Ricardo Abreu, offered distressed homeowners loan modification, property management and property short sales services for a fee. Instead, it is alleged, the defendants conspired to fraudulently steal those funds, and to acquire and sell at least fourteen properties owned by distressed homeowners, many of whom are not fluent in English.
It is alleged that as part of the scheme, Hussain instructed distressed homeowners to vacate their properties while he worked to acquire loan modifications or short sales on their behalf. After taking control of the properties, Hussain not only pocketed fees and mortgage payments provided by the homeowners, he rented out some of the properties and pocketed rental payments without the owners’ knowledge.
It is also alleged that as part of the scheme, Hussain and Abreu acquired the properties in short sales and then solicited investors to purchase these properties at much higher prices thereby earning substantial profit. It is alleged that Abreu and others damaged the properties in order to reduce their appraised value prior to a bank inspection. Investors were promised investment opportunities that would require no down payment. It is alleged that the defendants caused false mortgage applications and other documentation to be filed to lending institutions for conventional bank and FHA mortgage loans for the buyers. Some of the documentation contained the names and personal identifying information of individuals who were unaware that their information was being used.
Hasan Hussain is scheduled to be arraigned in U.S. District Court on January 27, 2016. Ricardo Abreu was arraigned before U.S. District Court Magistrate Judge Patricia A. Sullivan on January 20, 2017, and released on unsecured bond.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Other cases charged in federal court as a result of the mortgage fraud investigations include:
A 22-count federal indictment returned in December 2015, which alleged that between 2007 and 2014, a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. It was also alleged that as part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. It was further alleged that, in some instances, thousands of dollars were fraudulently obtained by misrepresenting on a Housing and Urban Development form the amount of funds due or to be paid to parties involved in a transaction;
In September 2015, a former mortgage loan originator was convicted of conspiracy to commit bank fraud by participating in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to be deceased; and
In July 2015, a real estate appraiser whose licensed had expired, but who continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of two licensed appraisers without his permission or knowledge, was convicted of making false statements on a loan application.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Associates of Wildboys Gang Plead Guilty to Charges Involving Attempted MurderRead the Press Release
Two associates of the Wildboys street gang in South Carolina have pleaded guilty to attempted murder in aid of racketeering for their roles in gang-related shootings.
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.
Joshua Manigault, aka J-Rizzle and Rizzle Back, 30, and Damien Robinson, aka Sacked Up, 20, 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 the pleas, Manigault and Robinson were associates in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. Manigault and Robinson admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
Further, as part of their plea agreements, Manigault and Robinson admitted their involvement in a drive-by shooting in Walterboro on April 7, 2015. Robinson drove past a residence where members of the rival Dooley Hill gang were believed to reside while Manigault and another associate of the Wildboys fired multiple shots. One individual inside the home was hit by the gunfire and sustained serious bodily injury.
Manigault and Robinson 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.
Two Associates of Wildboys Gang Plead Guilty to Charges Involving Attempted MurderRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
WASHINGTON – Two associates of the Wildboys street gang in South Carolina have pleaded guilty to attempted murder in aid of racketeering for their roles in gang-related shootings.
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.
Joshua Manigault, aka J-Rizzle and Rizzle Back, 30, and Damien Robinson, aka Sacked Up, 20, 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 the pleas, Manigault and Robinson were associates in the Wildboys, a violent criminal street gang based in South Carolina, with members operating in various South Carolina cities, including Summerville and Walterboro. Manigault and Robinson admitted that Wildboys members and associates have committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
Further, as part of their plea agreements, Manigault and Robinson admitted their involvement in a drive-by shooting in Walterboro on April 7, 2015. Robinson drove past a residence where members of the rival Dooley Hill gang were believed to reside while Manigault and another associate of the Wildboys fired multiple shots. One individual inside the home was hit by the gunfire and sustained serious bodily injury.
Manigault and Robinson 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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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Tennessee man sentenced for multiple bank robberies in Indiana, Missouri and GeorgiaRead the Press Release
Implied to the tellers in all three that he had a gun
PRESS RELEASE
Evansville – United States Attorney Josh J. Minkler, announced today that Heath B. Clark, 44, of Pleasant View, Tennessee, was sentenced to 100 months (over eight years) in prison by U.S. District Judge Richard L. Young following his guilty plea to the bank robberies of the Woodforest National Bank in Evansville, Indiana; the Bank of Bolivar in Springfield, Missouri; and the Fifth Third Bank in Kennesaw, Georgia. The case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force, the United States Marshals Service and the Evansville, Indiana, Police Department.
On March 9, 2015, Clark walked into Fifth Third Bank located inside a Kroger grocery store in Kennesaw, Georgia and passed the teller a note that stated, “You are being robbed. I have a gun.” Clark then told the teller, “If you don’t empty your drawer I’m going to shoot you” and “You have six seconds to empty your drawer before I shoot you.” The teller stated that Clark never showed her a gun, but she believed he had one. The teller gave Clark the money from her drawer, and Clark left the bank. Clark robbed approximately $11,515 from the bank.
On March 19, 2015, Clark entered the Woodforest National Bank located inside the eastside Evansville Walmart. Clark handed a note to the bank manager which stated, “Don’t hit the [expletive] alarm.” The manager stated that Clark did not show or say he had a gun but he held his hand in his pocket insinuating that he had one. Clark then told the manager, “Give me all the money.” While waiting for the manager to put money into a bag, Clark unknowingly dropped a Tennessee Driver’s License and a green dot Gold Visa Debit card on the bank floor. The ID was for Heath Brent Clark, and the picture on the ID card matched the appearance of Clark. The manager gave Clark money from his drawer, and Clark left the bank with his ID card on the floor of the bank. Clark robbed approximately $830 from the bank.
On March 23, 2015, Clark entered the Bank of Bolivar located in Springfield, Missouri and handed the bank teller a note that said, “Don’t hit the alarm or I will [expletive] kill you.” The teller complied with Clark’s threats and gave him all of the cash from her drawer. Clark robbed approximately $8,610 from the bank.
On March 24, 2015, the United States Marshals Service located Clark at a casino in Robinsonville, Mississippi. Clark had over $2,000 cash in his possession at the time of arrest.
All three banks were insured by the Federal Deposit Insurance Corporation.
According to Assistant United States Attorney Kyle M. Sawa, who prosecuted the case for the government, Clark must make full restitution to the banks and serve three years of supervised release following his release from prison.
Superseding Indictment Filed in Skimming Device CaseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeshua Paonessa-Velez, age 25, and Luis E. Arochom age 39, both of York City, Pennsylvania, were indicted on January 18, 2017, by a federal grand jury on a second superseding indictment charging them with bank fraud and identity theft.
The indictment was unsealed following Arochom’s arrest and arraignment on January 20, 2017, before U.S. District Magistrate Judge Martin C. Carlson. Arocho was ordered detained. Paonessa-Velez’s arraignment is tentatively scheduled for January 31, 2017.
According to United States Attorney Bruce D. Brandler, the first superseding indictment in May 2015, also brought charges against Arturo Meireles-Candel, age 34, of York City. That superseding indictment charged that Paoness-Velez and Meirels-Candel worked together and devised a scheme to obtain money from Adams County National Bank and Jersey Shore State Bank by placing “skimming” devices on the banks’ ATMs, capturing identification information of the bank customers using those ATMs, and either loading that information onto access devices and making purchases with those access devices, or making direct cash withdrawals out of customer accounts. The superseding indictment also charged both Paonessa-Velez and Meireles-Candel with sixteen counts of aggravated identity theft for stealing means of identification of sixteen of the banks’ customers. Meireles-Candel pleaded guilty to charges in the Superseding Indictment in exchange for no new charges being filed against him.
The new charges brought today by the grand jury in a second superseding indictment add additional instances of bank fraud and aggravated identity theft discovered by investigators and also an additional alleged participant in the scheme. The new charges include allegations of fraudulent activity at Member’s First Federal Credit Union in Hershey and Mechanicsburg, Santander Bank in Spring Grove and York, Centric Bank in Linglestown, Fulton Bank in Hershey, and Jonestown Bank and Trust in Lebanon.
The Adams County National Bank and the retail establishments where the defendants allegedly made the purchases using the stolen identities cooperated in the investigation. The bank reimbursed all of the affected customers for the losses to their accounts.
The case was investigated by the United States Secret Service, the Southwestern Regional (York) Police Department, the Pennsylvania State Police, Derry Township Police Department, and Lower Paxton Police Department. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the bank fraud offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The penalty for aggravated identity theft is 2 years of imprisonment consecutive to any sentence imposed for the underlying bank fraud offense. 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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Spirit Lake Man Sentenced to Federal Prison for 2nd Degree MurderRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on Jan. 24, 2017, Dallas Wayne Thundershield, 36, Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson to serve the rest of his natural life in prison and serve 5 years of supervised release. Judge Erickson also ordered that Thundershield pay a special assessment of $400 to the Crime Victims’ Fund, and to pay restitution in the amount of $150,032.19 which he left open for 60 days. On October 26, 2016, a federal jury found that Thundershield guilty of 2nd Degree Murder, Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury following a six-day trial.
On April 9, 2016, Thundershield and a female companion accepted a ride with Elvis Demarce and Richard Demarce on the Spirit Lake Indian Reservation. After driving around with the couple on numerous errands in the local area, an argument began between Thundershield and Elvis Demarce. Within a few moments of time, Thundershield had stabbed Elvis Demarce multiple times in the torso, and mortally wounded Richard Demarce with a single stab wound to the chest, piercing his heart. The female companion became alarmed and called the police four times while these events were happening to report the stabbing but hung up each time in fear of being detected by Thundershield.
Thundershield left the bodies on the side of the road and drove Elvis Demarce’s vehicle to a residence near Hamar, ND, where he had been staying. In the early morning hours of April 10, 2016, while at the same residence, Thundershield assaulted his female companion; as a result of that assault, she received substantial bodily injury. Police were called to that residence and Thundershield was arrested without further incident.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs-Fort Totten, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorneys Janice Morley and Matthew Greenley prosecuted the case.
Rochester Man Sentenced to Life in Prison Plus 10 Years for Conviction of Narcotics and Firearms Offenses in A Case Involving Two MurdersRead 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 Angelo Ocasio, 42, of Rochester, NY was sentenced to life in prison plus 10 years for his involvement in a violent drug trafficking conspiracy and for his involvement in a shooting and murder of Meosha Harmon at 137 Cameron Street in July 2009.
According to Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, Ocasio was charged along with 10 other defendants in connection with a long-term and violent narcotics trafficking ring in the City of Rochester headed by James Kendrick and his brother Pablo "Paul" Plaza. Angelo Ocasio distributed drugs for the organization, but his principal role was that of enforcer who used violence against rival drug dealers, disloyal workers and any other who posed a danger to the conspiracy or its members. In late July 2009, Ocasio and one of his coconspirators Damion Colabatistto went to 137 Cameron Street looking to murder a rival drug dealer at that location. When someone came to an upstairs window of the residence, Ocasio and Colabatistto fired a total of approximately 11 shots at the person. As it turned out, the person at the window was Meosha Harmon who had moved into the residence after the targeted drug dealer had moved out. Harmon, who was 21 years at the time of her death and the mother of two young children, died as a result of gunshot wounds to her head.
In addition to Ocasio, nine of his co-defendants have also been convicted of multiple drug distribution and firearms offenses. Five defendants, in addition to Ocasio, have been convicted in connection with three other murders committed by members of the conspiracy. Francisco Santos was murdered in October 1998, his body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County, N.Y. The second murder charged was that of their relative Ryan Cooper between May and July 1999. Cooper’s body has never been found. Finally, Jose Troche was murdered on January 14, 2010, in Rochester. After a six-week trial, James Kendrick was found guilty of various narcotics and firearms offenses and of the murders of Francisco Santos and of Ryan Cooper and sentenced to life in prison plus 30 years. Pablo Plaza was found guilty for the murder of Ryan Cooper and sentenced to life in prison plus 10 years. In sentencing both defendants, Judge Geraci found that they were also responsible for the murder of Jose Troche.
The sentencing of Ocasio is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Man Convicted of Drug Trafficking and Gun Possession OffensesRead 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 Ian D. Goolsby, 40, of Rochester, NY, was convicted after a jury trial of possession of heroin with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm and ammunition as a previously convicted felon, possession of a firearm with removed, altered and obliterated serial number, and unlawful possession of a controlled substance. The charges carry a maximum penalty of life in prison and a $2,000,000 fine.
Assistant U.S. Attorneys Charles E. Moynihan and Craig R. Gestring, who handled the prosecution of the case, stated that on March 11, 2015, an Elmira Police Department officer conducted a traffic stop of the vehicle Goolsby was driving. When speaking to the defendant, the officer smelled marijuana coming from the car and asked Goolsby about the odor. The defendant said that it was on his clothes and that he smoked it earlier. The officer asked Goolsby to exit the vehicle and, after some discussion, he complied. A passenger was also asked to exit the vehicle. Officers searched the car and found a small amount of plant material, which was later determined to be marijuana, between the passenger seat and passenger door, as well as on the driver’s side of the car. A brown Nike shoe box was also found on the passenger side floor, inside of which was a Ruger, Model P90, .45 caliber semi-automatic pistol. The serial number had been removed or obliterated. Officers also found a magazine loaded with six .45 caliber rounds of ammunition with the handgun.
A further search of the vehicle uncovered a black insulated bag containing white, uncooked rice. Inside of this, they found 41 small wax-coated envelopes containing a white powdery substance with a stamp saying "dead man walking." A forensic chemist from the New York State Police Southern Tier Satellite Crime Laboratory examined one of the envelopes and concluded the white substance inside was heroin.
The trial verdict is the result of an investigation by Elmira Police Department, under the direction of Chief Joseph Kane and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.Sentencing is scheduled for April 24, 2017, at 9:30 a.m. before Judge Charles J. Siragusa, who presided over the trial of the case.
Randolph County man pleads guilty to possession of illegal explosive materialRead the Press Release
ELKINS, WEST VIRGINIA – Brian Scott Mayle, 37, of Coalton, West Virginia, pled guilty to possessing an illegal explosive material, Acting United States Attorney Betsy Steinfeld Jividen, announced.
In July 2016, Mayle who is not a licensee or permittee, received and transported C4 explosive material in Randolph County. He was convicted on one count of “Receipt and Transfer of Explosive Material without a License.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Prince Georges County Felon Exiled to 12 Years in Federal Prison for Armed Robbery and Gun OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Oswaldo Jariel Bonilla, age 29, of Adelphi, Maryland, today to 12 years in prison, followed by three years of supervised release, for conspiracy to commit an armed commercial robbery, attempted armed robbery, and being a felon in possession of a firearm. Judge Chuang also ordered Bonilla to pay restitution of $1,038.99 to the company he attempted to rob.
The sentence 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 Stephen E. Walker of the Edmonston Police Department; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, Bonilla conspired to rob a towing business. Late on January 5, 2016, Bonilla and an accomplice went to the business with the intent to rob it. Bonilla was armed with a loaded .45 caliber silver revolver. Bonilla and the accomplice first attempted to sneak into the rear door of the facility, but it was locked. An employee who was in the building heard the activity and opened it to look outside. Bonilla and the accomplice attempted to rush inside, but the employee managed to close and lock the door and scramble to a phone.
Bonilla ran to the front door of the towing company and kicked in the door. Bonilla pointed the revolver at the employee’s head and demanded to know where the cash registers and safe were located. The employee told Bonilla that there were no cash registers or safe, but Bonilla did not believe the employee. Bonilla then forced the employee at gunpoint to escort him throughout the facility looking for the safe and other valuables, as well as tools that Bonilla could use to break into a safe. Bonilla used a “smartwatch” to call his accomplice and told the accomplice to join him by coming in the front door. However, when Bonilla and the employee reached the main office they saw the accomplice running away. Bonilla then ran from the towing business, still brandishing the firearm.
Another towing company employee, who was driving toward the towing business, saw Bonilla and his accomplice running away and followed them. Bonilla realized the second employee was following them and shot his revolver. Moments later, a marked Edmonston Police Department cruiser arrived on the scene with lights and siren activated. Bonilla then shot the revolver a second time in the direction of the police cruiser and the second employee.
Bonilla was arrested several blocks away while attempting to break into a residence. In an attempt to conceal evidence of his crime, Bonilla covertly swallowed two bullets. However, Bonilla became afraid that the bullets might discharge in his stomach and asked to be taken to the hospital. While in the hospital, Bonilla wrote a note on a tea bag asking his girlfriend to remove firearms and ammunition from his residence. Bonilla gave the note to a nurse and asked her to call his girlfriend to convey the message, but the nurse gave the note to police. Police subsequently searched the area where Bonilla was arrested and located clothing Bonilla work during the robbery as well as the revolver, which contained two spent rounds and several live rounds.
Bonilla had previous felony convictions, including a 2009 robbery conviction in Prince George’s County Circuit Court, and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the FBI, Edmonston Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Thomas M. Sullivan, who prosecuted the case.
Penn Yan Man Convicted by A Federal Jury of Gun and Witness Tampering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury convicted James E. Sandford, III, 28, of Penn Yan, NY, of possessing a stolen firearm, being a felon in possession of a firearm, and witness tampering. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Brett Harvey and Frank Sherman, who handled the trial, stated that the defendant was initially arraigned on a criminal complaint in the Western District of New York on June 4, 2015. Subsequent to his arrest on the federal charges, Sandford attempted to intimidate and threaten a suspected witness against him by shouting to that individual: “I’m not going to be in jail long. I will see you on the outside you snitch,” with the intent to influence, delay or prevent the testimony of that suspected witness in the prosecution of defendant.
Eventually, Sandford was charged in a superseding indictment which alleged that he distributed synthetic cannabinoids (designer drugs) between July 2014 and March 24, 2015, in the Penn Yan area. He was further charged with distributing such substances— and controlled substance analogues, which are designed to mimic the effects of controlled substances—both to individuals under the age of 21 and within 1000 feet of St. Michael’s School, a private elementary school in Penn Yan. In addition, the superseding indictment alleged that on February 22, 2015, the defendant traded synthetic cannabinoids to a minor in exchange for a stolen Savage .410 double barrel shotgun. At the time, the defendant had two prior felony convictions preventing him from legally possessing a gun. Finally, the superseding indictment also charged him with witness tampering related to his statements to the suspected witness.
With the defendant contending that he did not know the substances he was distributing were illegal, the jury failed to reach a verdict on the drug charges against him. The jury did, however, convict him of the two firearms charges and the witness tampering charge against him.
The guilty verdicts are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Penn Yan Police Department, under the direction of Chief Mark Hulse; the Yates County Sheriff’s Department, under the direction of Ronald Spike; and the Yates County District Attorney’s Office, under the direction of Valerie Gardner.
PENNSYLVANIA Man Pleads Guilty IN FALSE TAX REFUND SCHEMERead the Press Release
WASHINGTON – A Pennsylvania man pleaded guilty today to conspiring to defraud the United States and to aiding and abetting the filing of false claims for tax refunds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Shamback Francois, 27, engaged in a scheme to fraudulently obtain income tax refunds through the filing of false returns using stolen personal identifying information. At least one of Francois’s co-conspirators electronically filed the false tax returns, which directed that the fraudulently claimed refunds be deposited into a bank account in the name of Shamback Tax. Francois did not have a tax preparation service, but had opened up the account in order to facilitate the crime. Francois withdrew funds from this account to pay his co-conspirators. As part of the plea, Francois admitted to causing a loss of $425,841.14.
Francois is scheduled to be sentenced on April 18 before U.S. District Court Judge John R. Padova. Francois faces a statutory maximum sentence of 10 years in prison for the conspiracy count and a statutory maximum sentence of five years in prison for the false claims count. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of Internal Revenue Service-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Oakdale woman pleads guilty to bribery charge at federal prisonRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that an Oakdale woman pleaded guilty last week to receiving bribes for smuggling cell phones and tobacco into the Federal Correctional Institution at Oakdale.
Billie A. Holmes, 55, of Oakdale, La., pleaded guilty January 17, 2017 before U.S. Magistrate Judge Kathleen Kay to one count of bribery of a public official. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Holmes worked as an education contractor for FCI Oakdale. From September 2014 to May 2015, an inmate paid Holmes thousands of dollars to smuggle cell phones and tobacco into the prison. In January of 2015, another inmate informed law enforcement that he had been approached by an inmate who offered to sell him a cell phone for $1,600. Upon further investigation, it was learned that Holmes worked with an inmate to smuggle contraband into the prison. During the investigation, Holmes was recorded making plans to smuggle in a cell phone. Financial records also showed $4,200 in wire transfers to Holmes between November 2014 and December 2014.
Holmes faces not more than 15 years in prison, not more than three years of supervised release and a $250,000 fine. A sentencing date of April 21, 2017 was set.
The U.S. Department of Justice-Office of Inspector General investigated the case. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Nurse Practitioner from Santa Fe Sentenced to Probation for Unlawful Possession of Controlled SubstancesRead the Press Release
ALBUQUERQUE – Nicole Renee Broderson, 45, of Santa Fe, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to two years of probation for the misdemeanor offense of unlawfully dispensing controlled substances. Broderson also was ordered to pay a $1,000 fine. As a result of this conviction, Broderson’s nurse practitioner’s license was suspended until May 2017, and she was required to forfeit her license to prescribe controlled substances.
Broderson was charged on Sept. 19, 2016, in a misdemeanor information with possession of “Ritalin” and hydrocodone from Jan. 2012 through April 2013, in Santa Fe County, N.M.
According to court documents, Broderson is a certified Nurse Practitioner who has been registered as a mid-level practitioner with the DEA since Oct. 2011, and is authorized to prescribe Schedule II, III, and IV controlled substances. From 2011 to 2013, Broderson practiced as a psychiatric nurse in Santa Fe, initially under the supervision of medical doctors. In mid-2012, Broderson began practicing as a solo-practitioner doing business as Broderson Psychiatric Services.
On Sept. 19, 2016, Broderson pled guilty to the misdemeanor information. In entering the guilty plea, Broderson admitted that from Jan. 2012 through April 2013, she issued to certain patients multiple, often overlapping prescriptions for “Ritalin” and hydrocodone that significantly exceeded the medically recommended dosages. Broderson further admitted instructing those patients to deliver the “Ritalin” and hydrocodone to her. Broderson admitted that prescribing, retaining, and possessing “Ritalin” and hydrocodone in this manner exceeded any legitimate medical purpose and was outside of the usual course of professional practice.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Timothy S. Vasquez as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
New York Woman Sentenced to Prison for Operating Unemployment Benefits Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THERESA A. FREEMAN, 65, last residing in Yonkers, N.Y., was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for defrauding unemployment insurance programs in a “fictitious employer scheme.”
According to court documents and statements made in court, FREEMAN filed incorporation paperwork with the State of Connecticut for “Tribal Organic Products,” which she claimed was an internet business that she operated from an address in Trumbull, Connecticut. The business was, in fact, a fictitious company that did not engage in any business activity. In December 2012, FREEMAN’s son, Sean E. Montiero, filed a claim with the Connecticut Department of Labor for unemployment insurance benefits, claiming that he was laid off from Tribal Organic Products. Between January 2013 and July 2013, Montiero received approximately $13,474 in unemployment insurance benefits from the State of Connecticut.
The investigation revealed that FREEMAN also operated similar fictitious employer schemes that defrauded both the Pennsylvania Department of Labor and Industries and the North Carolina Department of Commerce, Division of Employment Security of $16,253 and $14,136, respectively.
Judge Arterton ordered FREEMAN to pay restitution in the amount of $43,863.
FREEMAN has been detained since her arrest on May 5, 2016. On September 20, 2016, she pleaded guilty to one count of conspiracy to commit wire fraud.
FREEMAN has a prior federal conviction in the District of South Carolina for mail fraud stemming from similar conduct. In that case, she was found to have committed the same unemployment benefits fraud offense in South Carolina, Connecticut, Hawaii, Florida and New York, and was sentenced to 15 months of imprisonment.
Montiero has pleaded guilty and awaits sentencing.
This investigation was conducted by the U.S. Department of Labor – Office of Inspector General; Connecticut Department of Labor; Office of the Chief State’s Attorney; Pennsylvania Department of Labor and Industries; North Carolina Department of Commerce, Division of Employment Security; and the Yonkers Police Department.
This case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Navy Chief Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – Sterlin D. Williams, 38, of Virginia Beach, pleaded guilty today to production of child pornography.
According to the statement of facts filed with the plea agreement, Williams admitted that he created a video of himself engaged in sexual activity with a child under the age of 12 years old during the summer of 2015.
Williams was indicted by a federal grand jury on Nov. 17, 2016, and faces a maximum penalty of 30 years in prison when sentenced on April 27. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Maureen Evans, Special Agent in Charge, NCIS Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Henry Coke Morgan. Special Assistant U.S. Attorney Alyssa K. Nichol is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-161.
Navajo Man Sentenced to 240 Months in Federal Prison for Second Degree MurderRead the Press Release
PHOENIX – Yesterday, Derrick Haskan, of Kayenta, Ariz. and a member of the Navajo Indian Nation, was sentenced by U.S. District Judge Steven P. Logan to 240 months in prison, followed by five years of supervised release. Haskan had previously pleaded guilty to second degree murder.
The case involved Hasken crashing his truck into a vehicle traveling in the opposite direction. Hasken had a blood alcohol content of over .20 and was driving in excess of 85 MPH, without any braking action, 2 seconds prior to impact. Hasken killed two people in the vehicle as a result of his conduct, both victims were also members of the Navajo Indian Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8092-PCT-SPL
RELEASE NUMBER: 2017-005_Hasken
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Navajo Brothers from Kirtland Sentenced to Prison for Roles in March 2015 MurderRead the Press Release
ALBUQUERQUE – Two brothers, both enrolled members of the Navajo Nation who reside in Kirtland, N.M., were sentenced today in federal court in Albuquerque, N.M., for convictions arising out of the March 21, 2015 murder of a Navajo man. Elijah Shirley, 31, was sentenced to 121 months in prison followed by three years of supervised release, and Michael Shirley, 32, was sentenced to 63 months in prison followed by three years of supervised release.
According to court filings, Elijah Shirley, Michael Shirley, and their brother Maynard Shirley, 38, were charged with murdering a Navajo man and assaulting the murder victim’s father. The defendants committed the crimes on March 21, 2015, in Fruitland, N.M., in San Juan County, N.M. The three men were indicted on April 14, 2015, and charged with killing the victim by stabbing him with a knife, and assaulting the victim’s father with a dangerous weapon and causing him to suffer serious bodily injury.
Elijah Shirley entered a guilty plea on Sept. 21, 2016, to a felony information charging him with voluntary manslaughter, and admitted stabbing and killing the victim in the heat of passion. On that same day, Michael Shirley pled guilty to a felony information charging him with being an accessory after the fact, and admitted that after they killed the victim, he assisted Elijah Shirley by burning a BMW vehicle and Maynard Shirley by helping him secure housing and transportation.
Maynard Shirley pled guilty on Dec. 13, 2016, to a felony information charging him with being an accessory after the fact to the offense of voluntary manslaughter. Under the terms of his plea agreement, Maynard Shirley will be sentenced to 42 months in prison followed by a term of supervised release to be determined by the court. Maynard Shirley remains in custody pending a sentencing hearing, which is scheduled for Feb. 13, 2017.
The case was investigated by the Farmington office of the FBI and the Shiprock and Kayenta offices of the Navajo Nation Division of Public Safety, and are being prosecuted by Assistant U.S. Attorneys Niki Tapia-Brito and Nicholas Marshall.
NYC Pair Pleads Guilty for Their Role in Mortgage Scheme Against Flaherty FundingRead 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 Angelo Loissaint, 42, and Jennifer Johnson, 41, both of West Babylon, NY, pleaded guilty to conspiring to commit mail and wire fraud before U.S. District Elizabeth A. Wolford for their role in a mortgage fraud scheme that victimized Flaherty Funding, a mortgage company located in Rochester, NY.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendants worked together to prepare false mortgage applications in the names of straw buyers and used fraudulent supporting documents. Loissant and Johnson worked together with another individual, against whom charges remain pending, to concoct the scheme to obtain mortgage loans from Flaherty Funding using fraudulent information. As a result of the scam, the defendants successfully obtained approximately $1,200,000 in loans, and sought an additional $900,000 for loans that ultimately did not close.
Sentencing for Loussaint and Johnson is scheduled for July 12, 2017, at 2:00 p.m., both before Judge Wolford.
Today’s pleas are the culmination of efforts by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Shelly Binkowski; the United States Postal Inspection Service, New York Division; and the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge.
Murfreesboro Woman Sentenced to Prison for Stealing Identities to File False Tax ReturnsRead the Press Release
Melinda Boisseau, 37, of Murfreesboro, Tenn, was sentenced on January 19, 2017, to two years in prison, followed by two years of supervised release, for filing false tax returns in the names of other individuals, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Boisseau pleaded guilty on May 10, 2016 to charges of aggravated identity theft and filing false claims in tax returns. Boisseau was also ordered to pay restitution to the IRS in the amount of $53,289.
According to the statement of facts, between June 2010 through February 2011, Boisseau used stolen personal identification information, along with fake employer and wage information, to file as many as 66 fraudulent tax returns.
This case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
Missoula Man Pleads Guilty to Sex Trafficking and RacketeeringRead the Press Release
MISSOULA – Roam Savage Chandler, 22, of Missoula, Montana, pleaded guilty today in Missoula federal court to sex trafficking of a minor and racketeering charges. He faces a mandatory prison sentence of 10 years to life in prison for the trafficking count and up to five years for the racketeering charge. U.S. District Court Judge Donald W. Molloy presided over the change of plea and set sentencing for May 11, 2017 in Missoula.
In court documents, federal prosecutor Cyndee Peterson stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in May of 2016, law enforcement personnel interviewed a 17-year old female who stated that Chandler was her boyfriend and had the idea to make money from her participation in commercial sex acts. She stated that in early May of 2016, she engaged in multiple acts of commercial sex in different Missoula hotels and motels. She also said that Chandler had posted ads promoting commercial sex with her on the website backpage.com. She told law enforcement personnel that Chandler knew she was 17 years old. Chandler’s knowledge of her age was verified by another witness. Law enforcement personnel obtained hotel/motel records verifying the stays and records of the backpage.com advertisements.
An adult female witness stated that Chandler had similarly suggested that she engage in commercial sex acts and that she had in fact done so. Just as he had done with the 17-year-old, Chandler promoted the adult female online and received proceeds from her acts of
prostitution. Law enforcement personnel also obtained records substantiating the witness’ statements.
This case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the Montana Regional Violent Crime Task Force, the FBI, the Missoula Police Department, and the Missoula County Sheriff’s Office.