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Wednesday 16 November 2016
Twelve Men Charged in ‘ATM Skimming’ Conspiracy Targeting Multiple New Jersey Bank LocationsRead the Press Release
NEWARK, N.J. – Twelve men were charged as part of a scheme that used secret card-reading devices and pinhole cameras installed on PNC and Bank of America ATMs to steal at least $428,581, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Criminal Division announced today.
Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, a/k/a “Marcel Enescu Cismas,” 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, of Glendale; Stefan Dumitru, 28, of Astoria, New York; 39, an unidentified defendant known as “Zoltan Nagy,” 39 of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Vasilica Adrian Hanganu, 35, of Bayside; Florian Calin Crainic, 46, of Des Plaines, Illinois; Gabriel Mares, 43, of College Point, New York; and his brother Florin Mares, 48, of College Point, are each charged by complaint with one count of conspiracy to commit bank fraud.
All of the defendants were arrested yesterday and this morning, with the exception of Nagy, who is still at large. Those who were apprehended, with the exception of Crainic, appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Crainic was scheduled to appear today in Illinois federal court.
According to the complaint:
The scheme, which was allegedly led by Rusu, sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey. The “skimming” equipment included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.
The conspirators then transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts. For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.
The conspirators are alleged to have stolen at least $428,581 from Bank of America.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola in Newark, as well as the U.S. Secret Service’s Boston and New York field offices and the East Longmeadow, Cambridge, and Medford, Massachusetts, police departments with the investigation. They also thanked the Middlesex County, Massachusetts, DA’s office; the U.S. Attorney’s Office of the Eastern District of New York and the U.S. Attorney’s Office, District of Massachusetts Springfield Division, as well as the Bank of America Security and Fraud Section, the PNC Bank Security Division and TD Bank, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Twelve Individuals Charged in ATM Skimming ConspiracyRead the Press Release
Twelve individuals were charged with allegedly executing a scheme to defraud customers of Bank of America and PNC Bank through conduct known as “ATM skimming,” according to complaints that were unsealed following the arrest of the majority of the defendants, announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey
Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, aka Marcel Enescu Cismas, 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, also of Glendale; Stefan Dumitru, 28, of Astoria, New York; an unidentified defendant, known as Zoltan Nagy, 39, of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Gabriel Mares, 43, of College Point, New York; Florian Calin Crainic, 46, of Des Plaines, Illinois; Florin Mares, 48, also of College Point; and Vasilica Adrian Hanganu, 35, also of Bayside, are each charged by complaint with one count of conspiracy to commit bank fraud. All of the defendants have been arrested, with the exception of Nagy, who remains at large.
According to the complaint, the co-conspirators – led by Rusu – sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the co-conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey. The “skimming” equipment allegedly included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards. The co-conspirators allegedly transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts using various means. For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.
The co-conspirators are alleged to have stolen at least $428,000 from Bank of America customers in New Jersey.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston and New York Field Offices; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section, PNC Bank Security Division and TD Bank. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kelly Graves of the District of New Jersey are prosecuting the case.
Three Sentenced for Armed Robbery, Killing of Store ClerkRead the Press Release
ABINGDON, VIRGINIA – Three people who went on an armed robbery spree that ended with the killing of a store clerk in Mt. Airy, North Carolina in 2012, were sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Previously, Joshua Robert Berry, 32, of Bluewell, Virginia, pled guilty to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person. Yesterday in District Court, Joshua Berry was sentenced to 734 months in federal prison.
Two others involved in the crime spree, Emmanuel William Foster, 27, of Bluewell, Virginia, previously pled guilty to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person. Yesterday in District Court, Foster was sentenced to 749 months in federal prison.
Sarah Looney Berry, 28, of Bluewell, Virginia, previously pled guilty to one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person. Yesterday Sarah Berry was sentenced to 412 months in federal prison for her role in the conspiracy.
“These three individuals acted in a violent and irresponsible manner that ultimately robbed a man of his life,” United States Attorney Fishwick said today. “The sentences imposed today righteously punish these three for the manner in which they terrorized a community for well over a month while they committed violent armed robbery after violent armed robbery. I am glad to see justice done here today.”
According to evidence presented at previous hearings by First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee, Joshua Beery, Foster, and Sarah Berry, conspired to commit a series of armed robberies in Virginia, West Virginia and North Carolina from April 2012 through May 2012.
Joshua Berry previously admitted that on April 29, 2012, he and Foster robbed the Marquee Cinema in Wytheville, Virginia. Both men carried firearms during the robbery and were wearing black hoodies with bandanas covering their faces. Joshua Berry said they entered the business with their weapons drawn and ordered the manager to empty the registers. When they were told there was no money in the registers, Joshua Berry and Foster took the manager, and another employee, into a back room and told them to open a safe. As the manager was having trouble opening the safe, Foster put his handgun to the manager’s head and threatened to kill him if the other employee did not get the safe open. The manager was able to open the safe, which contained $4,317. Video from a nearby Wal-Mart showed a dark colored, four-door sedan, matching a vehicle commonly operated, at that time, by Sarah Berry, waiting in the parking lot behind the theater. Sarah Berry admitted in federal court to driving Joshua Berry and Foster away from the robbery in the sedan.
Joshua Berry also admitted that on May 21, 2012 he and Foster robbed the Abingdon Cinemall. The two men once again entered the business wearing black hoodies, but this time wore full-face masks and sunglasses and once again had guns drawn. When the manager observed the men entering the business, she ran to her office, one of the men saw her and chased her. Foster and Joshua Berry robbed the cash registers of the business and left with approximately $200 in cash. Video surveillance from Abingdon High School, which is located nearby, showed a pick-up truck waiting behind the business with its lights on during the robbery. Sarah Berry admitted to using her father’s pick-up truck during the robbery to drive Foster and Joshua Berry away from the scene.
On May 25, 2012, at approximately 11:50 p.m., Joshua Berry and Foster entered Eddie’s Zip Foods in Mt. Airy, North Carolina. The store owner, Donald Arnder, and his employee, Gerardo Rojas, were reviewing the days’ receipts and getting ready to close the store at midnight. The two men entered the store with Joshua Berry carrying a rifle and Foster carrying a handgun. Joshua Berry admitted today that he and Foster entered the store and that Foster and Arnder, who had a .38 caliber revolver, exchanged gunfire. Foster shot Arnder twice with a .9 mm handgun, once in the arm and once in the abdomen. Arnder died at the scene. During the exchange, Foster was shot once. After Joshua Berry carried Foster to Sarah Berry’s waiting car, the two brought Foster to a nearby residence and tried to remove the bullet themselves. When they could not get the bullet out, they took Foster to a hospital in Bland, Virginia for treatment. Foster was eventually transferred to a trauma center in Roanoke, Virginia for treatment.
The investigation of the case was conducted by the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mt. Airy, North Carolina, Police Department, the Abingdon Police Department, the Wytheville Police Department and the Bluefield, West Virginia Police Department. First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Tax Defier Sentenced for $1 Million Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Peculiar, Mo., man associated with “sovereign citizens” groups was sentenced in federal court today for tax evasion totaling nearly $1 million over the past decade.
Harold R. Stanley, 62, of Peculiar, was sentenced by U.S. District Judge Roseann Ketchmark to five years in federal prison without parole. Today’s sentencing includes a sentencing enhancement for obstruction of justice. Stanley was taken into custody at the conclusion of today’s hearing.
On June 2, 2016, Stanley was found guilty at trial of one count of tax evasion and one count of endeavoring to obstruct and impede the due administration of the internal revenue laws. Evidence submitted during the trial established that Stanley had a substantial income but deliberately and willfully refused to pay any federal income tax.
Stanley, an electrical engineer, was hired by companies as a consultant and received $971,604 from self-employment from 2005 to 2009 as an independent contractor. According to court documents, Stanley is a tax defier who failed to file any tax returns for 2005 and 2006. Stanley has participated in “sovereign citizens” groups that believe the federal income tax system is voluntary and that they do not have to pay their fair share in taxes.
For tax years 2007 through 2009, Stanley filed substantially correct returns but left the tax line entry blank and failed to submit any payment. According to court documents, Stanley has not filed a tax return for tax years 2010 through 2015.
The total criminal tax loss, including relevant conduct, for 2005 through 2015 totals $980,025. Stanley was convicted at trial of evading taxes from 2005 through 2009. During that time, Stanley had taxable income of $686,829; the criminal tax loss for 2005 through 2009 is $259,900. In sentencing Stanley today, the court also considered his tax evasion from 2010 through 2015 as relevant conduct.
Court documents also cite several actions taken by Stanley that constituted a willful attempt to obstruct the administration of justice in this case.
Stanley submitted fake money orders for payment to the Internal Revenue Service, returned documents to the Internal Revenue Service claiming that the tax assessments were satisfied because they were “Accepted for Value,” filled out payment vouchers with his name in all capital letters but didn’t submit payment and submitted a false criminal referral to IRS – Criminal Investigation.
After his arrest, Stanley filed a civil suit against the Commissioner of Internal Revenue, an employee of the IRS, and an Assistant United States Attorney. On July 22, 2016, the District Court dismissed the case with prejudice. The court wrote that “by filing his complaint in this court, Mr. Stanley attempted to throw a wrench into his criminal proceedings in the Western District of Missouri and re-present the same arguments that he had previously and unsuccessfully litigated in other federal courts including the United States Tax Court, the Western District of Missouri, and the Eighth Circuit Court of Appeals.”
On June 9, 2016, after the verdict in this case, a claim for damages was filed on behalf of Stanley, alleging that “Chief Magistrate Judge Sarah W. Hayes, Judge Roseann A. Ketchmark & District Attorney Paul Becker trying to collect an IRS debt in violation of 18 USC section 8 and when the 26 CFR states its voluntary and a civil action not criminal.” The claim for damages alleges personal injury in the amount of $55 million.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
South Bend Woman Sentenced to 78 Months’ ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Barbara West, 33, of South Bend, Indiana was sentenced before South Bend District Court Judge Jon. E. DeGuilio for possession with intent to distribute and distribution of methamphetamine.
West was sentenced to 78 months’ imprisonment and 3 years supervised release.
According to documents filed in this case, on multiple occasions, West sold methamphetamine to undercover officers from her residence on Kenilworth Road in South Bend. During the execution of a search warrant, officers found multiple drugs, drug paraphernalia along with money and several firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department The case was handled by Assistant United States Attorney Kenneth M. Hays.
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Seminary Man Pleads Guilty to Drug ChargeRead the Press Release
Jackson, Miss – Elijah Moore, 76, from Seminary, Mississippi, pleaded guilty on November 15, 2016, before U.S. Senior District Judge David C. Bramlette III, to possession of more than 100 kilograms of marijuana with the intent to distribute, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Moore admitted to possessing the marijuana in the tractor trailer he was operating when he was stopped for running a stop sign on Exit 15 off Highway 20 in Warren County, Mississippi on August 8, 2015. He will be sentenced on February 7, 2017 and faces a maximum penalty of 40 years in prison and a $5 million fine.
This case was investigated by the Federal Bureau of Investigation, Mississippi Bureau of Narcotics, Mississippi Highway Patrol and the Hattiesburg Police Department. It is being prosecuted by Assistant U.S. Attorney Jerry Rushing.
Schuylkill County Man Charged with Attempted Enticement of A Minor for Sex and Transporting Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian Tate, age 34, of Gordon, Pennsylvania, was indicted on November 15, 2016, for attempting to entice a minor to engage in illegal sexual activity and transporting child pornography.
According to United States Attorney Bruce D. Brandler, the indictment alleges that between October 17, 2016 and November 9, 2016, Tate used the internet to attempt to persuade and entice a minor to engage in illegal sexual activity, and during that same time period transported child pornography by any means, including by computer.
If convicted, Tate faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison for the attempted enticement of a minor charge, and a mandatory minimum sentence of five years in prison and a potential maximum sentence of 20 years in prison for transporting child pornography.
The case was investigated by Homeland Security Investigations, United States Postal Inspectors, and the Pennsylvania State Police. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute 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."
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 these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. 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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Sacramento Man Sentenced to 10 Years in Prison for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Albert Lee Mitchell, 69, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to 10 years in prison to be followed by a lifetime of supervised release, for receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
A federal jury found Mitchell guilty after a five-day trial in June 2016. According to evidence presented at trial, on November 5, 2012, agents executed at a search warrant at Mitchell’s residence after they identified an IP address located there offering files of child pornography. At the time of the search, dozens of images of suspected child pornography were set to be downloaded from a file-sharing network on Mitchell’s computer. Mitchell admitted to ownership of the computer and to being its sole user. A forensic review of the computer and other devices found in Mitchell’s home office revealed a collection of thousands of depictions of child pornography.
Mitchell obstructed justice by lying under oath at trial and trying to blame a former friend for his crime. To bolster his defense, Mitchell testified about a computer password that he alleged his friend had stolen. Mitchell presented a defense suggesting that the password had then been found in a box containing his friend’s belongings.
“Not only did the defendant have no regard for his victims, but he also blatantly disrespected the judicial system. The sentence that was handed down was well deserved,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “HSI continues to work diligently with our law enforcement partners to pursue sexual predators who take advantage of innocent children.”
At sentencing, Judge Mueller found that Mitchell committed a serious crime and compounded it by presenting a perjured defense at trial. She commented that Mitchell had a right to go to trial, but that he “didn’t have the right to obstruct justice,” which she noted was a “significant aggravating factor.” Judge Mueller also found that the images had been carefully catalogued and arranged, indicating an “obsessive interaction” with the images.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Audrey B. Hemesath and Josh F. Sigal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rochester Man Pleads Guilty to Assaulting A Federal Court Security OfficerRead 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 Swyn B. Nelson, 48, of Rochester, NY, pleaded guilty to assault on a federal officer, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 8 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that, in the morning on October 5, 2016, a federal Court Security Officer was stationed inside the front entrance of the Kenneth B. Keating Federal Building, 100 State Street, Rochester, New York. At that time, he was performing his official duties, which included controlling access to the building, assisting in screening individuals entering the building for any prohibited items (including cameras, cell phones, weapons and explosives) and directing such individuals through a walk-through metal detector. Court Security Officers are employed by a private company pursuant to a security contract with the United States Marshal’s Service. Pursuant to the contract, Court Security Officers are responsible for, among other things, entrance control, roving patrol, stationary post assignments, and escort duties at the Kenneth B. Keating Federal Building.
Later in the morning on October 5, 2016, the defendant entered the front entrance of the Kenneth B. Keating Federal Building to report to the United States Probation Office. When the Court Security Officer asked for photo identification, the defendant threw his wallet and personal items into a tray in such a way that it caused some of the items to bounce out of the tray. The defendant stated that he was at the building to report to his Probation Officer. The defendant was asked to wait before entering the walk-through metal detector. The defendant did not comply with this order. As a result, the defendant was asked to walk through the metal detector a second time. The defendant did so and his personal items were then returned to him. At that time, the defendant raised his voice, stating “I want to shout at you,” and then walked aggressively toward the Court Security Officer in a restricted area (which is marked off by stanchions, rope and a table). The Court Security Officer ordered the defendant out of the restricted area. The defendant then charged at the Court Security Officer and struck the Court Security Officer on the right side of the head with a closed fist.
The plea is the result of an investigation by the United States Marshal’s Service, under the direction of United States Marshal Charles Salina.Sentencing is scheduled for December 20, 2016, at 3:00 p.m., before Judge Larimer.
Retired Wichita Police Lt. Sentenced for Embezzlement, Mail FraudRead the Press Release
WICHITA, KAN. - A retired Wichita police lieutenant Wednesday was sentenced to two years on probation for filing false documents so he would be paid for providing armed engagement training for law enforcement officers, U.S. Attorney Tom Beall said. He also was ordered to pay $56,400 in restitution.
Kevin P. Vaughn, 52, Wichita, Kan., who retired in March 2015 after 28 years with the Wichita Police Department, pleaded guilty to one count of embezzlement of public funds and one count of mail fraud.
In his plea, Vaughn admitted he falsified reports to make it appear his company, Red Mist Tactical, had completed all of 15 eight-hour classes as the company’s contract required. The money for the training came from a grant by the U.S. Department of Homeland Security/Federal Emergency Management Agency (DHS/FEMA) to the Kansas Highway Patrol and the North Central Regional Planning Commission.
Vaughn admitted he:
- Falsely reported conducting training in McPherson, Kan., on May 27 and May 28, 2015. In fact, the training sessions took place on June 3 and 4, 2015, after the deadline in the contract for the training to be completed. He forged officers’ signatures on sign-up sheets.
- Falsely reported conducting eight hours of training on May 22, 2015, during the Wichita Police Department Ladies Range Day. In fact, the training lasted four hours and it was not approved by the police department.
- Falsely reported offering training in Sumner County on April 27 and May 1, 2015. In fact, there was no training on those days.
- Falsely reported offering training in Sumner County on April 20, 21, 22, 23 and 24, 2015. In fact, there was no training on those days.
Beall commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Retired Fulton County Jailer and Contract Suppliers Charged with Kickbacks Tied to 3.3 Million Construction Project on Fulton County Detention CenterRead the Press Release
Jailer allegedly received kickbacks totaling $175,000 from contractors
PADUCAH, Ky. – United States Attorney John E. Kuhn, Jr., joined by Kentucky Attorney General Andy Beshear, and FBI Special Agent in Charge Amy S. Hess, announced charges today against retired Fulton County Kentucky Jailer Ricky Parnell and four contractors, who performed work on the $3.3 million 2015 Fulton County Detention Center expansion, for their roles in a conspiracy to defraud Fulton County citizens, through kickbacks and inflated costs associated with the project.
Ricky D. Parnell, 59, of Hickman, Kentucky; Ronald D. Armstrong, 60, of Dresden, Tennessee; Jimmy Boyd, 56, of South Fulton, Tennessee; Michael Homra, 79, of Fulton, Kentucky; and Daniel C. Larcom, 42, of Union City, Tennessee were charged by grand jury indictment on November 15, 2016 with Honest Services Fraud and multiple counts of Wire Fraud. The defendants were arraigned in United States District Court in Paducah, before Magistrate Judge Lanny King.
According to the indictment, between April 2015 and August 2016, Parnell, who served as the Fulton County Jailer from 1990 until earlier this year, used his official position to enrich himself by soliciting and accepting gifts and payments from defendants Armstrong, Boyd, Homra and Larcom, in exchange for influencing the Fulton County Fiscal Court to award the defendants contracts on the project.
Parnell allegedly directed Armstrong, Boyd, Homra and Larcom to intentionally overcharge Fulton County for services and supplies provided as part of jail projects. Parnell would then present the inflated invoices and contracts to the Fulton County treasurer for payment to the defendants and their respective companies. In turn, the defendant contractors would use the excess proceeds to pay kickbacks, in the form of both cash and checks, to Parnell. According to the indictment, Parnell received at least $175,000 in money and other things of value.
In addition, defendants Armstrong, Boyd, Homra, and Larcom allegedly took steps to cover up their activities and dealings with Parnell, including using cash to provide Parnell with kickbacks, structuring withdrawals from banks to use for these kickbacks, and creating false and inflated invoices for services and materials in order to satisfy the cash kickbacks allegedly demanded by Parnell.
If convicted at trial, the defendants could be sentenced to no more than 20 years in prison per count, pay a $250,000 fine for each count, and be sentenced to serve a three-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute Bonner and is being investigated by the Kentucky Attorney General’s Office and the Federal Bureau of Investigation (FBI).
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
U.S. Attorney John Kuhn and Attorney General Andy Beshear (rt) announce federal charges in PaducahPreviously-Convicted Embezzler Sentenced to 18 Months in Prison for Shirking Restitution ObligationsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Daniel Lawrence Broton, age 56, of Sparta, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 18 months in prison for lying on a financial affidavit submitted to the U.S. Attorney’s Office to aid in the collection of a restitution judgment against Broton from a 2006 criminal case. In addition to his prison term, Broton was sentenced to two years of supervised release and ordered to pay a mandatory special assessment of $100.
Broton was formerly the financial comptroller and the chief financial officer of the Little River Band of Ottawa Indians. In 2005, Broton was charged with, and pled guilty to, defrauding the Little River Band of Ottawa Indians of $500,000 in construction funds devoted to their casino project. He was sentenced for this offense in 2006 by U.S. District Judge Robert Holmes Bell to three years in prison, three years of supervised release, $508,392.28 in restitution, a forfeiture money judgment of $500,000, and a mandatory special assessment of $400.
In 2009, after completing his sentence and receiving early discharge from supervised release, Broton started a rustic furniture making company called Backwoods Casual. Backwoods Casual created furniture and home décor suitable for cabins and lakefront homes using cedar logs. In 2013, the U.S. Attorney’s Office sent a financial affidavit to Broton to obtain information about his post-release financial status to assist with the collection of his outstanding restitution debt and criminal monetary penalties. Since his release, Broton had not paid a dime. Broton returned the financial affidavit to the U.S. Attorney’s Office and claimed to have no employment, no occupation, and no income. In fact, Broton started his business at least by 2011, was earning income, and had the capacity to make payments towards his restitution debt. He completed and returned a second affidavit in 2015 and similarly lied about his financial condition to continue to avoid paying restitution. On March 31, 2016, a federal grand jury indicted Broton for making false statements. Broton pled guilty to the offense on July 14, 2016.
In announcing the sentence, U.S. District Judge Janet T. Neff recognized Broton’s education and professional history as an accountant. She noted that his false statements were “not an accident” but rather a calculated means to keep his income and avoid paying restitution on his prior criminal judgment. The 18-month prison sentence was the maximum suggested sentence under the U.S. Sentencing Guidelines.
U.S. Attorney Miles stated: “The U.S. Attorney’s Office relies on financial affidavits to obtain an accurate picture of a defendant’s post-release financial condition to aid its post-judgment debt collection efforts. Broton’s sentence should serve as a warning to all defendants who consider making false statements on financial affidavits to the U.S. Attorney’s Office to avoid payment on their criminal monetary obligations. It re-victimizes victims, undermines the court’s judgment, and you will be prosecuted.”
“Today’s sentencing is a direct result of the excellent partnership between the IRS Criminal Investigation and the U.S. Attorney’s Office,” said Manny Muriel, Special Agent in Charge, IRS Criminal Investigation. “This sentence should serve as a deterrent to those who attempt to evade payment of their court-imposed restitution.”
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Joel S. Fauson.
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Preston County man charged with illegal acquisition of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury sitting in Martinsburg, West Virginia, returned an indictment charging Cory Jean Gainey, 24, of Reedsville, West Virginia, with illegally acquiring a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In October 2015, Gainey allegedly provided a false statement to a licensed firearms dealer stating that he was the actual purchaser of the firearm when in fact he was buying it for another individual.
Gainey was charged with one count of “Conspiracy to Provide a False Statement During the Purchase of a Firearm” and one count of “False Statement During the Purchase of a Firearm.” He faces up to ten years in prison and a fine up to $250,000 for each count. 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 Traci M. Cook is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Monongalia County Sheriff’s Department, and the Morgantown Police Department is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Port Sulphur Oysterman Pleads Guilty to $300,000 B.P. FraudRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that STEVE COLLINS TURNER, SR., age 73, of Port Sulphur, pled guilty to mail fraud in connection with a false claim of $300,000 related to the BP Oil Spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. According to the Bill of Information, TURNER applied for an Emergency Advance Payment seeking $300,000 in damages for lost money because of the Deepwater Horizon Disaster by submitting false documentation. TURNER submitted false documents regarding oyster buying businesses showing he sold oysters to the businesses when he really did not.
TURNER faces a possible maximum sentence of twenty years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, TURNER may be ordered to pay restitution. U.S. District Judge Susie Morgan set sentencing for February 22, 2017.
The U.S. Attorney’s Office praised the work of the Special Agents of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Pocahontas County man charged with illegal possession of a firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury sitting in Martinsburg, West Virginia, returned an indictment charging Archie Ray Arbogast, 40, of Dunmore, West Virginia, with illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Arbogast, who had previously been convicted of the felony offense “Possession of Material Use in the Manufacture of Methamphetamine” in federal court in the Northern District of West Virginia, was allegedly found in possession of a .22 caliber rifle, in Pendleton County, West Virginia in May 2016.
Arbogast was charged with one count of “Unlawful Possession of Firearm.” He faces up to ten years in prison and a fine up to $250,000 for each count. 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 is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, and the West Virginia State Police is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Plummer Man Pleads to Theft and Possession of Stolen FirearmsRead the Press Release
COEUR D’ALENE – Kyle Eugene Goddard, 28, of Plummer, Idaho, pleaded guilty today to theft of firearms from a licensed dealer’s inventory and possession of stolen firearms, U.S. Attorney Wendy J. Olson announced. Goddard was indicted by a federal grand jury in Coeur d'Alene on August 16, 2016.
According to Goddard’s admissions at the plea hearing, on July 23, 2016, he stole two firearms, a Taurus 709 Slim 9mm and a Springfield Armory XD 40, from Bargain Barn located in Plummer, Idaho.
The charges of possession of stolen firearm and theft of firearms from a licensed dealer’s inventory are each punishable by up to 10 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing is set for March 7, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d'Alene.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Parkersburg man sentenced to federal prison for possessing child pornographyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years in federal prison for possessing over 600 images of child pornography, announced United States Attorney Carol Casto. John Leslie Hess, 64, previously pleaded guilty to possession of child pornography. After completing his prison term, he will be on federal supervised release for 10 years, the first of which will be served on home confinement. Hess will also be required to register as a sex offender.
Hess admitted that on March 2, 2015, he possessed images of prepubescent minors engaged in sexual acts. The images were contained on his personal computers and multiple media devices found at his residence in Parkersburg. The investigation revealed that Hess was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
The FBI, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Overdose Investigation Leads to Heroin Distribution Charge against Waterbury ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that TEDDY STUART LOPEZ, JR., also known as “Chico” and “Junior,” 20, of Waterbury, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute and distribution of heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents or statements made during court proceedings, on May 10, 2016, North Haven Police and emergency medical personnel responded to a report of an unresponsive man on the Hartford Turnpike in North Haven. The 23-year-old man, who had a history of substance abuse, was transported to the hospital where he later died. The victim’s family later turned over to law enforcement a wax fold of heroin. The investigation revealed that the victim most likely purchased heroin from LOPEZ in Waterbury earlier that day.
Between July 5 and July 8, 2016, investigators made two controlled purchases of heroin from LOPEZ.
LOPEZ was arrested on July 19, 2016. At the time of his arrest, LOPEZ possessed four bundles of heroin. A subsequent search of LOPEZ’s residence revealed 15 bundles of heroin, $1,600 in cash, a grinder, a digital scale, cutting agents, cellular telephones, and drug packaging material.
LOPEZ is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on February 18, 2017, at which time he faces a maximum term of imprisonment of 20 years.
LOPEZ is released on bond and residing in Rhode Island pending sentencing.
This matter is being investigated by the DEA’s New Haven Task Force, which includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby, and Meriden Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Oklahoma City Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ROBERT LEROY CRAWLEY, age 37, of Oklahoma City, Oklahoma, was sentenced to 120 months imprisonment for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1).
The Indictment alleged that on or about October 20, 2015, within the Eastern District of Oklahoma, the defendant, ROBERT LEROY CRAWLEY, 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 charges arose from an investigation by the Hugo Police Department, and the Federal Bureau of Investigation.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Ohio Man Pleads Guilty to Stealing $144k from a Montgomery Masons ChapterRead the Press Release
Montgomery, Alabama– Arthur Lee Campbell, III (55), from Mount Hope, Ohio, pled guilty to a charge of bank theft, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. At the time of the charge, Campbell was residing in Autauga County, Alabama.
The charges stemmed from an investigation that revealed Campbell stole approximately $144,700.00 belonging to the Montgomery Chapter #22 of the Royal Arch Masons of the State of Alabama. According to court documents, Campbell was serving as Secretary for the organization and he was authorized to handle the financial affairs of the Chapter. After being entrusted with this authority, Campbell began stealing the funds.
Evidence shows that he made two cash withdrawals that totaled around $8684.00, and deposited two checks written from the Chapter’s account into his own personal bank account that together totaled $136,000.00. Additional evidence indicated that Campbell used the money to pay personal expenses and obligations associated with his gambling activities.
The maximum punishment for this charge is 10 years imprisonment, a fine of $250,000, and restitution to the victim. Sentencing is scheduled for February 17, 2017.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Robert Randolph Neeley and Curtis Ivy, Jr.
North Suburban Businessman Sentenced to Nine Months in Federal Prison for Failing to Pay Taxes on Cash ReceiptsRead the Press Release
CHICAGO — A north suburban man who operated a manufacturing business in Wisconsin was sentenced to nine months in federal prison for failing to pay taxes on more than $2.3 million in cash receipts.
HERBERT C. WATTS, the owner and president of Branko Perforating FWD Inc., of Bristol, Wisc., failed to report cash receipts as income on his taxes for the calendar years 2009 to 2014. During those years, Branko received more than $2.3 million in cash from the sale of scrap metal to a Cicero-based company. The scrap sales were not reported in Branko’s business records, and the cash income was concealed from accountants who prepared tax returns for Watts and the company.
The case is part an ongoing investigation of cash transactions in the local scrap metal industry that has resulted in several other convictions.
Watts, 70, of Grayslake, pleaded guilty earlier this year to filing a false tax return. In addition to the nine-month prison term, U.S. District Judge John Robert Blakey on Tuesday fined Watts $10,000. Prior to sentencing, Watts paid the taxes he owed to the federal government and the state of Illinois.
“Defendant’s conduct was little more than repetitive evasion motivated by greed,” Assistant U.S. Attorney Patrick King argued in the government’s sentencing memorandum. “Evasion feeds on itself, reducing respect for the integrity of the tax system and leading to more cheating.”
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Nine Twin Cities Men Sentenced for Providing Material Support to ISILRead the Press Release
Nine men were sentenced this week in U.S. District Court in Minneapolis for conspiring to provide material support to ISIL. GULED OMAR, 22, was sentenced today to 35 years in prison. MOHAMED FARAH, was sentenced to 30 years in prison. ABDIRAHMAN DAUD, 22, was sentenced to 30 years in prison.
The announcement was made by United States Attorney for the District of Minnesota Andrew M. Luger, FBI Special Agent in Charge of the Minneapolis Division Richard T. Thornton, and Acting Assistant Attorney General for National Security Mary B. McCord.
“ISIL remains one of the most dangerous terror organizations in the world,” said United States Attorney Luger. “The defendants sentenced today remind us that this ideology ruins the lives of those who ascribe to it. Omar, Daud and Farah will spend the next several decades in prison because of their unbreakable desire to kill on behalf of ISIL. I commend the agents and officers of the FBI-led JTTF for continuing to keep Minnesotans safe.”
“The sentences handed down today reflect the true gravity of the defendants' crimes to betray their country, travel overseas, and ultimately join a terrorist organization dedicated to the murder of innocent people,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “We hope these sentences will serve as a strong message that those who support terrorism will face justice. The FBI, through our Joint Terrorism Task Force, remains dedicated to working with our community partners to disrupt threats posed by ISIL and their supporters.”
“This case -- culminating in the sentencings of nine young men in the last three days -- demonstrates our commitment to disrupting those who would conspire to travel to Syria to fight with ISIL,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority, and we will continue to work to stem the flow of foreign fighters abroad and to bring to justice those who seek to provide material support to designated foreign terrorist organizations.”
As proven at trial, between May 2014 and their arrests on April 19, 2015, these three defendants and their co-conspirators made multiple attempts to join ISIL in Syria. In May 2014, defendant OMAR and two other members of the conspiracy made an attempt to join ISIL by traveling across the United States – Mexico border near San Diego. This planned failed when members of defendant OMAR’s family prevented his travel.
Defendant OMAR again attempted to join ISIL in Syria on November 6, 2014, by first flying from Minneapolis/St. Paul International Airport to San Diego, California. Again, defendant OMAR planned to cross the United States – Mexico border near San Diego and travel onward to Syria to join ISIL. Before he could board the flight in Minnesota, OMAR was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, OMAR intended to use federal financial aid provided to him by the United States Department of Education to attend college.
Also in November 2014, defendant FARAH was one of four co-conspirators to take a Greyhound bus to New York City and attempt to board a flight to Europe. Defendant FARAH’s ultimate destination was Syria, where he planned to join and fight with ISIL. Federal agents in New York prevented defendant FARAH and his three co-conspirators from traveling.
In April 2015, defendants DAUD and FARAH drove from Minneapolis to San Diego, Calif., where they intended to purchase fake passports, cross the border into Mexico, travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Eleven Minnesotans have been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and two, ABDI NUR and MOHAMED ROBLE, joined ISIL in Syria.
This case is the result of an investigation conducted by members of the FBI-led Joint Terrorism Task Force (JTTF). The JTTF includes members from the following departments: the United States Marshals Service, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department, St. Paul Police Department, Ramsey County Sheriff’s Office, Hennepin County Sheriff’s Office, Federal Air Marshals Service, Customs and Border Protection, Department of Defense, Immigration and Customs Enforcement, Minneapolis Police Department, Burnsville Police Department, Department of State, the Airport Police, Criminal Investigation Division of the IRS, and the FBI.
This case was prosecuted by Assistant U.S. Attorneys Andrew Winter, John Docherty and Julie Allyn, with assistance from the Department of Justice National Security Division’s Counterterrorism Section.
Defendant Information:
GULED ALI OMAR, 22
Minneapolis, Minn.
Convicted:
- Conspiracy to Murder Outside the United States, 1 count
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
- Attempted Financial Aid Fraud, 1 count
Sentenced:
- 35 years in prison
- Supervised release for a term of life
MOHAMED ABDIHAMID FARAH, 22
Minneapolis, Minn.
Convicted:
- Conspiracy to Murder Outside the United States, 1 count
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 2 counts
- Perjury, 1 count
- False Statement, 1 count
Sentenced:
- 30 years in prison
- Supervised release for a term of life
ABDIRAHMAN YASIN DAUD, 22
Minneapolis, Minn.
Convicted:
- Conspiracy to Murder Outside the United States, 1 count
- Conspiracy to Provide Material Support to a Designated Foreign Terrorist Organization (the Islamic State of Iraq and the Levant), 1 count
- Attempting to Provide Material Support to a Designated Foreign Terrorist Organization, 1 count
Sentenced:
- 30 years in prison
- Supervised release for a term of life
###
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Nine Minnesota Men Sentenced for Providing Material Support to ISILRead the Press Release
The last three of nine men were sentenced this week in U.S. District Court in Minneapolis for conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and for conspiracy to murder outside the U.S.
Guled Omar, 22, of Minneapolis, Minnesota, was charged with one additional count of attempting to provide material support to a designated foreign terrorist organization and one count of attempted financial aid fraud. Omar was sentenced to 35 years in prison. Mohamed Abdhihamid Farah, 22, of Minneapolis was charged with one additional count of attempting to provide material support to a designated foreign terrorist organization, one count of perjury and one count of making a false statement. Farah was sentenced to 30 years in prison. Abdirahman Yasin Daud, 22, of Minneapolis was sentenced to 30 years in prison. All three defendants were also sentenced to lifetime supervised release.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Andrew M. Luger for the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division.
“This case -- culminating in the sentencings of nine young men in the last three days -- demonstrates our commitment to disrupting those who would conspire to travel to Syria to fight with ISIL,” said Acting Assistant Attorney General McCord. “Counterterrorism is the National Security Division’s highest priority and we will continue to work to stem the flow of foreign fighters abroad and to bring to justice those who seek to provide material support to designated foreign terrorist organizations.”
“ISIL remains one of the most dangerous terror organizations in the world,” said U.S. Attorney Luger. “The defendants sentenced today remind us that this ideology ruins the lives of those who ascribe to it. Omar, Daud and Farah will spend the next several decades in prison because of their unbreakable desire to kill on behalf of ISIL. I commend the agents and officers of the FBI-led Joint Terrorism Task Force (JTTF) for continuing to keep Minnesotans safe.”
“The sentences handed down today reflect the true gravity of the defendants’ crimes to betray their country, travel overseas and ultimately join a terrorist organization dedicated to the murder of innocent people,” said Special Agent in Charge Thornton. “We hope these sentences will serve as a strong message that those who support terrorism will face justice. The FBI, through our Joint Terrorism Task Force, remains dedicated to working with our community partners to disrupt threats posed by ISIL and their supporters.”
As proven at trial, between May 2014 and their arrests on April 19, 2015, these three defendants and their co-conspirators made multiple attempts to join ISIL in Syria. In May 2014, defendant Omar and two other members of the conspiracy made an attempt to join ISIL by traveling across the U.S. – Mexico border near San Diego. This planned failed when members of defendant Omar’s family prevented his travel.
Omar again attempted to join ISIL in Syria on Nov. 6, 2014, by first flying from the Minneapolis/St. Paul International Airport in Minneapolis to San Diego, California. Again, defendant Omar planned to cross the United States – Mexico border near San Diego and travel onward to Syria to join ISIL. Before he could board the flight in Minnesota, Omar was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, Omar intended to use federal financial aid provided to him by the U.S. Department of Education to attend college.
Also in November 2014, Farah was one of four co-conspirators to take a Greyhound bus to New York, New York, and attempt to board a flight to Europe. Farah’s ultimate destination was Syria, where he planned to join and fight with ISIL. Federal agents in New York prevented defendant Farah and his three co-conspirators from traveling.
In April 2015, Daud and Farah drove from Minneapolis to San Diego, where they intended to purchase fake passports, cross the border into Mexico and travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Eleven Minnesotans have been charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and two, Abdi Nur and Mohamed Roble, joined ISIL in Syria.
This case is the result of an investigation conducted by members of the FBI-led JTTF. JTTF includes members from the following departments: the U.S. Marshals Service, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department in Minnesota, St. Paul Police Department in Minnesota, Ramsey County Sheriff’s Office in Minnesota, Hennepin County Sheriff’s Office in Minnesota, Federal Air Marshals Service, Customs and Border Protection, Department of Defense, Immigration and Customs Enforcement, Minneapolis Police Department, Burnsville Police Department in Minnesota, Department of State, the Airport Police, IRS-Criminal Investigation Division and the FBI.
This case was prosecuted by Assistant U.S. Attorneys Andrew Winter, John Docherty and Julie Allyn of the District of Minnesota, with assistance from the National Security Division’s Counterterrorism Section.
New Carlisle Man Sentenced for Producing, Distributing Images of Child RapeRead the Press Release
DAYTON, OHIO – James Edward Risner, III, 34, of New Carlisle, Ohio, was sentenced in U.S. District Court to 480 months in prison for production and distribution of child pornography.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Clark County Sheriff Gene A. Kelly and Clark County Prosecutor D. Andrew Wilson announced the sentence handed down yesterday by U.S. District Judge Timothy S. Black.
According to the statement of facts in this case, Risner engaged in various sexual activities on multiple occasions with a 7-year-old female who was in his care. Risner photographed the sexual activities, ultimately creating nearly 70 digital pornographic photographs, and posted them online to at least one website.
Risner pleaded guilty on September 8 to one count of production and one count of distribution.
Risner was sentenced this morning to 15 years to life in prison on related child rape charges in Clark County Common Pleas Court. As part of his plea agreement, Risner will serve his local sentence concurrently with his federal one. He was also sentenced to a lifetime of supervised release.
“Actions like Risner’s extensive manipulation of this child victim result in lifelong and devastating physical, psychological, and emotional suffering,” U.S. Attorney Glassman said.
U.S. Attorney Glassman commended the cooperative investigation by the Clark County Sheriff’s Office and FBI, as well as Assistant United States Attorney Dwight K. Keller and Special Assistant United States Attorney Amy M. Smith who are representing the United States in this case.
Nevada Woman Indicted for Evading Payment of Trust Fund Recovery PenaltiesRead the Press Release
Concealed Personal Funds and Assets from IRS Collection Efforts
A Las Vegas, Nevada resident was charged by a superseding indictment today in the District of Nevada for attempted tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the superseding indictment, Maria Larkin aka Maria Bella-Larkin, owned and operated Five Star Home Health Care Inc. (FSHHC) from 1996 through 2009 and was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from employees’ wages. The tax withheld is referred to as “trust fund tax” because the employer holds those funds in trust until the amounts are paid over to the Internal Revenue Service (IRS) on behalf of the employee. If a responsible person willfully fails to pay over trust fund taxes, the IRS may impose a penalty equal to the amount of the trust fund taxes on the responsible person. This penalty is known as the trust fund recovery penalty.
The superseding indictment alleges that from 2004 through 2009, FSHHC failed to pay over the tax withheld from its employees’ wages and, as a result, the IRS assessed trust fund recovery penalties against Larkin equal to the amount withheld and not paid over.
According to the superseding indictment, Larkin willfully attempted to evade and defeat the payment of the trust fund recovery penalties assessed against her by concealing and attempting to conceal from the IRS her access to personal funds and assets. Specifically, the superseding indictment alleges that Larkin purchased a home in the name of a nominee, engaged in currency transactions with financial institutions in amounts less than $10,000 to prevent the filing of currency transaction reports, changed the name of her business and placed the business in the name of a nominee, and provided false information to the IRS regarding her ability to pay the trust fund recovery penalties.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division, and Assistant U.S. Attorneys Cristina Silva and Alexandra Michael, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Navajo Man Sentenced to 12 Years for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Gary John Bedoni, 60, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced today in federal court in Albuquerque, N.M., to 144 months in prison for his voluntary manslaughter conviction. Bedoni will be on supervised release for three years following his prison sentence.
Bedoni was arrested on Feb. 10, 2016, on a criminal complaint charging him with assaulting a woman resulting in serious bodily injury on Jan. 31, 2016, on the Navajo Indian Reservation in San Juan County, N.M. According to the criminal complaint, Bedoni caused the victim to suffer a fractured neck, spinal cord trauma, bruising to her chest and arms, and the victim was unable to move her arms or legs.
Bedoni was subsequently indicted on March 8, 2016, and charged with second degree murder of the victim in San Juan County.
On July 21, 2016, Bedoni entered a guilty plea to a felony information charging him with voluntary manslaughter. In entering the guilty plea, Bedoni admitted that on the night of January 31, 2016, he pushed the victim down some steps causing her to sustain broken vertebrae and spinal cord trauma. Bedoni acknowledged that the victim died from complications of those injuries on February 20, 2016.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorneys David Adams and Nicholas Marshall prosecuted the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man Pleads Guilty to Discharging a Firearm During Crime of ViolenceRead the Press Release
ALBUQUERQUE – Norman Yazzie, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to using and discharging a firearm during a crime of violence. Under the terms of his plea agreement, Yazzie will be sentenced to ten years in prison followed by a term of supervised release to be determined by the court.
Yazzie was arrested in May 2016, on a criminal complaint charging him with assault and firearms offenses on April 29, 2016, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Yazzie shot the victim with a rifle in the forehead and the knee resulting in serious bodily injury.
Yazzie was subsequently indicted on May 24, 2016, and charged with assault with a dangerous weapon, a rifle, with intent to do bodily harm, assault resulting in serious bodily injury and using and discharging a firearm during a crime of violence. According to the indictment, the offenses took place on April 29, 2016 in San Juan County.
During today’s proceedings, Yazzie pled guilty to discharging a firearm during a crime of violence. In entering the guilty plea, Yazzie admitted that on April 29, 2016, he shot the victim in the head and knee with a rifle. A sentencing hearing has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
National Community Policing WeekRead the Press Release
On September 30, 2016, President Barack Obama proclaimed October 2-8, 2016 as National Community Policing Week. On October 3, 2016, the Department of Justice announced the designation of October 2-8, 2016 as National Community Policing Week, the first ever designation by the Justice Department, and an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual respect between law enforcement and citizens.
In response to the Department of Justice’s designation of Oct. 3-7, 2016, as National Community Policing Week, U.S. Attorney Alicia Limtiaco for the Districts of Guam and the Northern Mariana Islands (NMI), announced that proclamations by the Governor of Guam Eddie Calvo and the Governor of the NMI Ralph Torres were held and a legislative resolution by Senator Frank Aguon, Jr., in Guam was presented designating October 3-7, 2016, as National Community Policing Week.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that law enforcement are sworn to protect and serve. At the heart of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of our neighborhoods, our villages, and in our islands where we live and work.
Community policing is about strengthening the relationship between law enforcement and our community, to foster dialogue, and promote and increase trust, mutual respect and understanding among our law enforcement and community members in our shared efforts to build stronger, safer and more just communities for our families, for our children and for all persons making Guam and the NMI their home.
In July 2014, the U.S. Attorney’s Office organized and held a ceremony commemorating the 50th Anniversary of the Civil Rights Act of 1964 and spoke about the Department of Justice’s commitment to diversity and inclusion, and promoting and protecting equal opportunity and the civil rights of all protected classes. Shortly thereafter and in response to issued raised by our Lesbian Gay Bisexual and Transgender (LGBT) community, our LGBT Community Coalition was formed. In our efforts to be inclusive, the Coalition expanded to include those persons who identify as Queer or Questioning (Q) and those who are Intersex (I), and is now known as our LGBTQI Community Coalition.
FIRST-EVER ROUNDTABLE MEETING OF LGBTQI COMMUNITY COALITION AND LAW ENFORCEMENT/GOVERNMENT AGENCIES
First-Ever Roundtable Meeting of LGBTQI Community and Law Enforcement/Government AgenciesIn commemoration of National Community Policing Week and in response to the call to action to engage our law enforcement and community in dialogue to strengthen our relationship and build trust, U.S. Attorney Limtiaco invited our LGBTQI Community Coalition, law enforcement and government agencies to participate in a roundtable meeting to build upon our collaborative efforts to address and be responsive to the needs and issued faced by our LGBTQI community, law enforcement and government agencies, including identifying and responding to hate crimes; developing a network of reliable resources and support services; and engaging in crime prevention efforts, so that by working together we improve the overall quality of life for everyone.
On Guam, a roundtable meeting with the LGBTQI Community Coalition, law enforcement and government agencies was held in October 2016. This was the first time a roundtable meeting was held for the purpose of engaging stakeholders in a dialogue and discussion of the issues and concerns affecting our LGBTQI community.
LGBTQI leaders and members of Guam’s Alternative Lifestyle Association (GALA) and ISA Guam were invited to participate. GALA is a community based organization that exists to strengthen the quality of life for gay, lesbian, bisexual and transgendered persons, their families and friends through Support, Education, & Advocacy. GALA upholds a society that embraces social diversity through love and respect for all. ISA Guam is an organization dedicated to supporting and advocating for LGBT equality, specifically Guam’s LGBT community and supporters.
Law Enforcement, government agencies, and organizations in attendance were the U.S. Attorney’s Office, Guam Airport Security Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Guam Department of Corrections, Guam Department of Labor, Guam Department of Public Health and Social Services, Guam Department of Youth Affairs, Federal Bureau of Investigation (FBI), Guam Customs and Quarantine Agency, Guam Department of Education, Guam Police Department, Guam Department of Revenue and Taxation, Guam Fire Department, Guam National Guard, Guam Port Authority Police, Marianas Regional Fusion Center/Guam Homeland Security, Office of Senator Benjamin Cruz, 33rd Guam Legislature, Office of Senator Nerissa Underwood, 33rd Guam Legislature, Guam Family Law Office, Transportation Security Administration, U.S. Department of Labor, and U.S. Passport Office.
In the NMI, the roundtable meeting with the LGBTQI Community Coalition, law enforcement and government agencies was held in November 2016. This was also the first time a roundtable meeting was held in the NMI for the purpose of engaging stakeholders in a dialogue and discussion of the issues and concerns affecting our LGBTQI community.
Law Enforcement, government agencies, and organizations in attendance were the U.S. Attorney’s Office, NMI Ports Police, ATF, NMI Department of Finance, NMI Department of Corrections, NMI Department of Labor, NMI Department of Public Health and Social Services, NMI Department of Youth Services, FBI, NMI Department of Finance/Division of Customs, NMI Department of Public Safety, NMI Department of Finance/Division of Revenue and Taxation, U.S. Department of Homeland Security/Customs and Border Protection (CBP), and Transportation Security Administration.
LGBTQI leaders and members of PRIDE Marianas in the NMI and GALA Guam were invited to participate. PRIDE Marianas is a new non-profit LGBT organization in the NMI established to celebrate the diversity of LGBT individuals in the NMI and promote awareness and understanding of LGBT issues.
The roundtable meetings in Guam and the NMI were well-received by all participants with positive comments about the importance of increasing and improving the dialogue with and strengthening support of the LGBTQI community. There were over 50 participants in attendance in Guam and over 20 participants in the NMI.
COMMEMORATING NATIONAL COMMUNITY POLICING WEEK
Proclamation Signing in Guam for National Community Policing Week with Lt. Governor Raymond Tenorio, Chief of Police Jose Cruz and his staff, U.S. Attorney Alicia Limtiaco, staff members of the U.S. Attorney’s Office: AUSA Stephen Leon Guerrero, Victim Witness/Law Enforcement Coordinator Salome Blas, Secretary to U.S. Attorney Carmelleta San Nicolas, FLU Legal Assistant Michelle Perez and Legal Assistant Noreen Davis, Senator Frank Blas Aguon, Jr., Fire Chief Joey San Nicolas, Deputy U.S. Marshal John San Nicolas, TSA Assistant Federal Security Director-Law Enforcement Tyron Guillory and TSA Deputy Assistant Federal Security Director Robert Cochran, HSI RAC Shaun Harris, Guam Customs and Quarantine Agency Acting Chief Darlene Merfalen, and other law enforcement officers U.S. Attorney Alicia Limtiaco with Senator Frank Blas Aguon, Jr. at the Resolution Reading in Guam for National Community Policing Week U.S. Attorney Alicia Limtiaco with NMI Department of Public Safety Commissioner Robert Guerrero and Governor of the NMI Ralph Torres at the Proclamation Signing for National Community Policing WeekROUNDTABLE MEETING OF LGBTQI COMMUNITY COALITION AND LAW ENFORCEMENT/GOVERNMENT AGENCIES
Roundtable Meeting with Guam LGBTQI Community Coalition, Law Enforcement and Government Agency Heads Roundtable Meeting with Guam LGBTQI Community Coalition, Law Enforcement and Government Agency Heads Roundtable Meeting with NMI LGBTQI Community Coalition, Law Enforcement, and Government Agency HeadsNambe Pueblo Man Pleads Guilty to Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Anthony Nieto, 29, an enrolled member of Nambe Pueblo who resides in Zuni, N.M., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Nieto will be sentenced to 24 months in prison followed by a term of supervised release to be determined by the court.
Nieto was arrested on June 21, 2016, on an indictment charging him with assaulting his intimate partner and causing her to suffer serious bodily injury. According to the indictment, Nieto committed the crime on Aug. 16, 2015, in Nambe Pueblo in Santa Fe County, N.M.
During today’s proceedings, Nieto pled guilty to the indictment and admitted assaulting the victim on Aug. 16, 2015, by striking and kicking her, and causing her to suffer serious bodily injury. More specifically, Nieto admitted that the victim sustained bruising on her face, arms and lower extremities as a result of the assault.
Nieto has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the FBI office in Santa Fe and the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney David Adams.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Monroe County Man Faces Additional Charges of Sex Trafficking and Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton returned a superseding indictment on November 15, 2016, charging Thurman Stanley, age 39, of East Stroudsburg, with four new counts of sex trafficking by force and coercion, two new counts of attempted sex trafficking, and a new drug trafficking charge, conspiracy to commit sex trafficking by force and coercion, and three counts of interstate transportation of others for purposes of prostitution.
According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Stanley forced and coerced several females to engage in prostitution in Monroe County and elsewhere, transported females from Pennsylvania to New York, Iowa, and North Dakota to engage in prostitution, and trafficked in illegal drugs.
The superseding indictment alleges that Stanley and/or his co-conspirators used social network sites to recruit females for prostitution; used cell phones to post ads on adult escort websites to solicit customers; rented hotel and motel rooms in Monroe County and elsewhere for purposes of prostitution; provided heroin and other illegal drugs to the prostitutes; and used force, threats, and coercion to carry out prostitution activities. The indictment alleges that the conduct occurred between December 2013 and December 2015.
If convicted of the charges, Stanley faces a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison for each of the sex trafficking charges, up to 10 years in prison on each of the interstate prostitution charges, and up to 20 years in prison on the drug trafficking charge
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and Bismarck, North Dakota detectives. Assistant U.S. Attorney Francis P. Sempa 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 is life imprisonment, a term of supervised release following imprisonment, and a fine. 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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Miami-Dade County, Florida, Man Charged with Conspiracy to Commit Health Care FraudRead the Press Release
NEWARK, N.J. – A Florida man has been charged in connection with his role in establishing fake medical facilities in New Jersey and billing insurance companies for services that were never performed, U.S. Attorney Paul J. Fishman announced.
Eduardo Arango Chong, 21, of Hialeah, Florida, was arrested Nov. 15, 2016, and will appear today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. He was charged by complaint, along with Osmaro Ruiz, 31, of Homestead, Florida, with one count of conspiracy to commit health care fraud. Ruiz remains at large. Another conspirator, Raymel Betancourt, 25, was charged with healthcare fraud in a separate complaint in June 2015.
According to the complaint:
From September 2014 through June 26, 2015, the defendants allegedly established fictitious health service providers in Union County, New Jersey, and elsewhere. These “phantom providers” repeatedly submitted false claims to insurance companies for medical services, including injections and physical therapy services, that were never actually performed. They allegedly submitted claims for more than $6 million and the insurance companies paid hundreds of thousands of dollars to the phantom providers.
The defendants allegedly recruited people with legitimate health insurance policies from real companies, offering them money in exchange for allowing the phantom providers to use this information.
The fake providers also used health insurance information for individuals who were not aware that fraudulent claims were being submitted on their behalf. The conspirators logged on to an electronic healthcare network used by medical practices to check patient insurance coverage. They used valid member IDs and then entered a series of consecutive potential member IDs until one of the numbers was linked to someone with a valid health insurance plan and accepted by the network.
Checks and proceeds issued by the insurance companies were cashed or deposited into bank accounts established by the conspirators.
The counts of conspiracy to commit health care fraud with which the defendants are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the Criminal Division.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The charges and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Mescalero Apache Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Michael Ellis Treas-Baca, 31, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to a sexual abuse charge. Under the terms of his plea agreement, Treas-Baca will be sentenced to 78 months in prison followed by a term of supervised release to be determined by the court. Treas-Baca will also be required to register as a sex offender when he completes his prison sentence.
Treas-Baca was arrested on April 7, 2016, on a criminal complaint charging him with sexually abusing a Mescalero Apache woman on Sept. 13, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M.
During today’s proceedings, Treas-Baca pled guilty to a felony information charging him with sexual abuse. In entering the guilty plea, Treas-Baca admitted that on Sept. 13, 2016, he sexually abused the victim while the victim was unconscious and physically incapable of declining participating in the sexual act. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Paul Raymond Garcia, 19, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty today in federal court in Las Cruces, N.M., to an involuntary manslaughter charge.
Garcia was arrested in Jan. 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Garcia killed a Mescalero Apache woman when he crashed his vehicle on March 23, 2015, on the Mescalero Apache Indian Reservation in Otero County, N.M. At the time of the crash, Garcia was driving under the influence of alcohol. Garcia was subsequently indicted on the same charge on June 22, 2016.
During today’s proceedings, Garcia pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Garcia acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maryland Man Sentenced to Six Years in Prison for Burglaries in Northwest WashingtonRead the Press Release
WASHINGTON – Dana Dixon, 26, of Silver Spring, Md., was sentenced today to six years in prison for a pair of burglaries carried out in the middle of the day in Northwest Washington in September 2014, U.S. Attorney Channing D. Phillips announced.
Dixon pled guilty in September 2016, in the Superior Court of the District of Columbia, to two counts of second-degree burglary. He was sentenced by the Honorable Zoe Bush. Upon completion of his prison term, Dixon will be placed on three years of supervised release. He also is required to pay restitution to the victims in the amount of $7,284.
According to the government’s evidence, Dixon committed two separate burglaries in Northwest Washington on Sept. 18, 2014. First, Dixon, with two accomplices, Ramone Laird and Emmanuel Sumo, broke into an apartment in the 2900 block of Adams Mill Road NW with a crowbar, stole electronics, cash, and clothing, and in the process ransacked the apartment and damaged the front door. Dixon and his accomplices attempted to enter another apartment inside the building, but were unsuccessful when they could not breach the door with their crowbar.
After leaving the building, Dixon, with his accomplices, broke into another apartment that same day in the 1800 block of Columbia Road NW, and again stole items from inside, ransacked the apartment, and damaged the front door. In response to a 911 call, officers from the Metropolitan Police Department (MPD) apprehended Laird running from the residence with the stolen property from the second burglary in his possession. Sumo and Dixon successfully fled from the police. The police recovered surveillance video showing Dixon, Laird, and Sumo at both apartment complexes prior to the burglaries taking place.
Laird and Sumo, both 22 and both from Silver Spring, Md., were previously sentenced to prison terms for their roles in the burglaries. At the time of his arrest, Dixon was serving a sentence in Maryland after having been convicted of gun offenses.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Metropolitan Police Department’s Third District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Sharon Newman, Paralegal Specialist Allison Daniels and Assistant U.S. Attorneys Christopher Macchiaroli and David Misler, who prosecuted the matter.
Manhattan U.S. Attorney Charges 10 Defendants in Conspiracy to Smuggle Aliens into New York CityRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), today announced the unsealing of an Indictment and a Complaint, which together charge a total of 10 defendants with conspiring to conceal, harbor, and shield from detection, and move and transport, illegal aliens across the Mexico-United States border and into the New York City area. Seven defendants were taken into custody today; three defendants remain at large. The six defendants who were arrested in Texas will be presented and arraigned before United States Magistrate Judges in the Southern and Western Districts of Texas; one of the defendants, CARLOS SANTANA, was arrested in Brooklyn, New York, and will be presented before U.S. Magistrate Judge Gabriel W. Gorenstein later today.
As alleged in the Indictment and Complaint unsealed today in Manhattan federal court[1]:
United States v. Maria del Carmen Vasquez et al., 16 Cr. 708
From in or about June 2015 up to and including about October 2016, MARIA DEL CARMEN VASQUEZ, JORGE VASQUEZ-RAMIREZ, JUAN JOSE JIMENEZ BRAVO, MAYTE ZUNIGA BRACHO, ENARDYS FERNANDEZ, CARLOS SANTANA, JORGE GONZALEZ, and ELSA GUADALUPE DURAN conspired to conceal, harbor, and shield from detection, and move and transport, aliens in knowing and reckless disregard of the fact that the aliens had come to, entered, and remained in the United States in violation of law.
During the course of the conspiracy, the defendants each performed various overt acts in furtherance of the conspiracy, including traveling from Texas through the Southern District of New York to transport aliens and to pick up money, making hotel arrangements for aliens, and renting cars for use in transporting aliens to New York City. Certain defendants also attempted to transport aliens across the United States-Mexico border and into Texas.
United States v. Luis Batista Casola et al., 16 Mag. 7320
Similarly, in or about July 2016, LUIS BATISTA CASOLA and YOENDRIS BATISTA MATOS conspired to conceal, harbor, and shield from detection, and move and transport, aliens in knowing and reckless disregard of the fact that the aliens had come to, entered, and remained in the United States in violation of law. During the course of the conspiracy, the defendants accepted money from aliens in exchange for arranging the aliens’ transport from Texas to New York City and other locations in and around the United States.
* * *
Each defendant in United States v. Vasquez, et al. and United States v. Casola et al. faces a maximum term of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
A chart containing the names, ages, and residence information of the defendants who were arrested today is attached.
Mr. Bharara praised the outstanding investigative work of HSI, and expressed gratitude for the coordinated efforts of the Homeland Security Investigation Offices in Laredo, McAllen, San Antonio, and Austin, Texas; as well as the HSI Attaché offices in the Dominican Republic and Mexico, Customs and Border Patrol, and the Department of Homeland Security’s Joint Task Force – Investigations. Mr. Bharara also thanked the U.S. Attorney’s Offices in the Southern and Western Districts of Texas for their assistance and support of the investigation. Mr. Bharara also expressed appreciation for the assistance provided by the Dominican Republic and Mexico; in particular, he recognized the efforts of the Procuraduría General de la República and the Transnational Criminal Investigative Units of the National Police.
These cases are being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Benet Kearney, Frank Balsamello, and Jessica Fender are in charge of the prosecutions.
The charges contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
US v. Maria del Carmen Vasquez et al. indictment.pdf US v. Casola complaint.pdf United States v. Maria del Carmen Vasquez, et al.
NAME
AGE
RESIDENCE
MARIA DEL CARMEN VASQUEZ
41
San Antonio, TX
JORGE VASQUEZ-RAMIREZ
39
San Antonio, TX
JUAN JOSE JIMENEZ BRAVO, a/k/a “Juan Carlos”
34
Laredo, TX
MAYTE ZUNIGA BRACHO
36
McAllen, TX
ENARDYS FERNANDEZ
42
Round Rock, TX
CARLOS SANTANA
42
Brooklyn
JORGE GONZALEZ, a/k/a “Jorgito,” a/k/a “Barbie”
46
Laredo, TX
ELSA GUADALUPE DURAN, a/k/a “Elsa Cruz”
48
Laredo, TX
United States v. Luis Batista Casola et al.
NAME
AGE
RESIDENCE
LUIS BATISTA CASOLA, a/k/a “Cuba,”
48
Laredo, TX
YOENDRIS BATISTA MATOS
28
Laredo, TX
[1] As the introductory phase signifies, the entirety of the texts of the Indictment and Complaint, and the descriptions of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Resident Sentenced for Bank RobberyRead the Press Release
CONCORD, N.H. – Andrew Michael Dufresne, a 44-year-old Manchester resident, was sentenced on Tuesday to serve 63 months in prison for robbing the People’s United Bank at 1750 Elm Street in Manchester, announced United States Attorney Emily Gray Rice.
According to court records and statements in court, on April 9, 2014, Cook entered the federally-insured bank and handed a note to a bank teller that stated, “GIVE ME THE MONEY.” Dufresne then reached into the teller’s cash drawer and took several bundles of bills and fled the bank. Bank alarms were activated and the Manchester Police Department released a statement concerning the robbery, including surveillance photos of the defendant. Shortly thereafter, the police received phone calls from individuals who identified Dufresne as the robber.
The defendant was arrested on April 11, 2014, in Methuen after crashing a stolen car in that city. He was prosecuted in Massachusetts on charges unrelated to the bank robbery and is currently incarcerated on those charges. The defendant, who pleaded guilty on June 29, 2016, will serve his federal sentence after completing his current period of incarceration.
This case was investigated by the Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
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Louisiana Man Pleads Guilty to Conspiring to Sell Devices to Cheat Vehicle Emissions TestsRead the Press Release
SYRACUSE, NEW YORK – Darren Kattan 31, of Baton Rouge, Louisiana, pled guilty today in Federal Court in Syracuse to one felony count of conspiracy to commit mail fraud in connection with a violation of the Clean Air Act, announced United States Attorney Richard S. Hartunian, and Vernesa Jones-Allen, Special Agent in Charge, EPA-CID, New York Area Office. Kattan will be sentenced by Senior District Judge Norman A. Mordue on March 16, 2017.
In pleading guilty, Kattan admitted that between 2010 and 2013 he designed, built, and sold “simulator devices” which were programmed to fraudulently by-pass motor vehicle emissions inspection tests. In total, members of the conspiracy distributed one hundred and seventy (170) of the simulator devices throughout the United States. Kattan was arrested by Special Agents of the Environmental Protection Agency-Criminal Investigation Division (“EPA-CID”) during a sting operation in Louisiana after he provided the source codes for his devices in exchange for a $10,000 payment.
The charge to which Kattan pled guilty carries a maximum sentence of up to five (5) years in prison, a term of supervised release of up to three (3) years and a fine of up to $250,000.
This case is being investigated by EPA-CID, the New York State Department of Environmental Conservation, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry and Senior Trial Attorney Todd Gleason, United States Department of Justice, Environmental Crimes Section.
Long Island Radiology Company, Zwanger-Pesiri Inc., Pleads Guilty to Federal Health Care Fraud Charges and Agrees to Pay $2.4 Million in Criminal ForfeitureRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Zwanger-Pesiri Inc., a Long Island radiology company, pleaded guilty to two counts of health care fraud for illegally performing and billing for procedures that had not been ordered by treating physicians. After accepting the guilty plea, United States District Court Judge Joanna Seybert approved a settlement with the United States and the State of New York in which Zwanger-Pesiri agreed to forfeit $2.4 million in the criminal case and pay $8,153,727 million to resolve civil liability arising from its fraudulent practices.
The announcement was made by Robert L. Capers, U.S. Attorney for the Eastern District of New York, Scott J. Lampert, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Eric Schneiderman, New York State Attorney General.
As part of the plea agreement and criminal settlement, Zwanger-Pesiri pled guilty to a criminal information charging the company with illegally engaging in schemes to fraudulently obtain reimbursements from Medicare and Medicaid by “bundling” the tests it performed, such that when a patient’s treating physician ordered one test to be performed, Zwanger-Pesiri would automatically perform a related but unordered test. For example, between July 2009 and February 2014, when patients were referred to Zwanger-Pesiri for either a dual energy X-ray absorptiometry (DXA) bone scan or a vertebral fracture assessment (LVA), Zwanger-Pesiri would perform both tests. Similarly, between January 2008 and February 2014, when female patients were referred to Zwanger-Pesiri for either a pelvic or transvaginal ultrasound, Zwanger-Pesiri would perform both tests.
As part of the civil settlement with the United States and State of New York, Zwanger Pesiri agreed to pay $6,921,490.80 to the United States and $1,232,236.20 to New York State to resolve allegations set forth in a qui tam complaint filed by Donna Geraci and Linda Gibb. Under federal and state False Claims Act statutes, a private individual who has uncovered fraud against the government may file a suit in federal court on behalf of the United States and the State of New York. If the United States and the State are successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery. In addition to resolving civil liability arising from the conduct described in the criminal information, the civil settlement resolves allegations that Zwanger-Pesiri fraudulently billed Medicare and Medicaid programs for procedures performed or supervised by physicians who were not properly credentialed with Medicare and Medicaid programs, or which were performed at an unauthorized practice location.
Finally, as part of the global settlement, Zwanger-Pesiri agreed to enter into a Corporate Integrity Agreement with HHS-OIG that will govern its future conduct and ensure careful oversight of its billing practices.
“Zwanger-Pesiri illegally pursued corporate profits at the expense of federal and state health care providers and taxpayers. Today’s guilty plea and approximate $10.5 million global settlement demonstrates our vigilance in bringing to justice those who put profits first and health care second,” said United States Attorney Capers. Mr. Capers expressed his appreciation to HHS-OIG, the FBI, and the State of New York Attorney General’s Office.
“Zwanger-Pesiri, like all health care providers, must be held to a high standard of ethical behavior,” said Special Agent in Charge Lambert of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region. “Corporate greed must never be a part of medical decision making. HHS-OIG and our law enforcement partners are committed to protecting patient care, and the federally funded health care programs intended for the nation’s most vulnerable citizens.”
“This case reminds us of a growing epidemic that exploits private and public insurers and the people they insure. Health care fraud is often mistaken for a victimless crime, but it victimizes insurers directly and the insured and others indirectly. Those who employ these schemes will most certainly be brought to justice,” said FBI Assistant Director-in-Charge Sweeney.
“These defendants knowingly overbilled Medicaid by millions, draining the program of important resources meant to help some of our most vulnerable individuals,” said Attorney General Schneiderman. “I thank our partners in law enforcement for helping us protect New York taxpayer dollars against fraud and waste. We will continue to vigilantly guard the integrity of Medicaid, and will punish those who steal from our state.”
The federal criminal case was prosecuted by Assistant United States Attorney Lara Treinis Gatz, and its civil claims were litigated by Assistant United States Attorney Robert W. Schumacher. The State of New York’s civil claims were litigated by Carolyn T. Ellis, Chief, Civil Enforcement Division, Medicaid Fraud Control Unit, Office of the Attorney General.
Local Woman Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Deborah Pierce, St. Louis, Missouri, was indicted today for embezzling more than $380,000 from a joint educational venture between her employer, Webster University, and a Chinese government cultural agency.
According to the indictment, Pierce was appointed the director of the Confucius Institute at Webster University and was entrusted with the oversight of the Institute’s funding, which came mainly from Webster University and the People’s Republic of China. According to the indictment, in September 2013, Pierce established a separate, unauthorized bank account over which she had sole control and directed the funds of the Confucius Institute through it.
Between September 2013 and June 2016, it is alleged that Pierce diverted more than $380,000 to herself from the Institute’s funds by writing checks to cash, checks to herself and paying various personal bills and accounts and those of her family members.
If convicted of mail fraud, Pierce faces a term of imprisonment of up to 20 years, a fine of up to $250,000 or both. Restitution to the victims is mandatory, and the government is seeking to forfeit a money judgment for all of the embezzled funds.
The case was investigated by the FBI and the U.S. Postal Inspection Service with assistance from Webster University. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Lewis County man pleads guilty to using excessive forceRead the Press Release
ELKINS, WEST VIRGINIA – Hunter Lane Barrett, 21, of Weston, West Virginia pled guilty to using excessive force, United States Attorney William J. Ihlenfeld, II, announced.
Barrett, a former correctional officer, pled guilty to two counts of “Deprivation of Rights Under Color of Law.” He admitted to using excessive force against an incarcerated individual while he was employed as a correctional officer at the Tygart Valley Regional Jail.
He faces up to one year in prison and a fine of up to $100,000 for each count. 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 Sarah W. Montoro and Department of Justice Trial Attorney Olimpia Michel prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Las Vegas Woman Indicted for Evading Payment of Trust Fund Recovery PenaltiesRead the Press Release
Las Vegas, Nev. - A Las Vegas, Nevada resident was charged by a superseding indictment today in the District of Nevada for attempted tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the superseding indictment, Maria Larkin aka Maria Bella-Larkin, owned and operated Five Star Home Health Care Inc. (FSHHC) from 1996 through 2009 and was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from employees’ wages. The tax withheld is referred to as “trust fund tax” because the employer holds those funds in trust until the amounts are paid over to the Internal Revenue Service (IRS) on behalf of the employee. If a responsible person willfully fails to pay over trust fund taxes, the IRS may impose a penalty equal to the amount of the trust fund taxes on the responsible person. This penalty is known as the trust fund recovery penalty.
The superseding indictment alleges that from 2004 through 2009, FSHHC failed to pay over the tax withheld from its employees’ wages and, as a result, the IRS assessed trust fund recovery penalties against Larkin equal to the amount withheld and not paid over.
According to the superseding indictment, Larkin willfully attempted to evade and defeat the payment of the trust fund recovery penalties assessed against her by concealing and attempting to conceal from the IRS her access to personal funds and assets. Specifically, the superseding indictment alleges that Larkin purchased a home in the name of a nominee, engaged in currency transactions with financial institutions in amounts less than $10,000 to prevent the filing of currency transaction reports, changed the name of her business and placed the business in the name of a nominee, and provided false information to the IRS regarding her ability to pay the trust fund recovery penalties.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division, and Assistant U.S. Attorneys Cristina Silva and Alexandra Michael, 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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Kansas City, Kan., Woman Charged with Setting Fires as Diversion for ShopliftingRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., woman was charged in federal court Wednesday with setting fires as diversions while she was shoplifting at three separate grocery stores, U.S. Attorney Tom Beall said.
Tahmekah D. Henson, 40, Kansas City, Kan., is charged with three counts of arson. The fires are alleged to have been set at the following locations.
-- Save A Lot, 2815 State Avenue, Kansas City, Kan., Nov. 5, 2016.
-- Save A Lot, 2102 Metropolitan, Kansas City, Kan., Nov. 5, 2016.
-- Happy Foods, 5420 Leavenworth Road, Kansas City, Kan., Nov. 5, 2016.
Documents filed in the case allege Henson set fires in store aisles so she could leave the stores with shoplifted meats during the confusion. In each case there were customers and employees in the stores.
If convicted, she faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was wounded in a shoot-out with police officers was sentenced in federal court today for illegally possessing a firearm.
Cahlan A. Clay, 28, of Kansas City, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole, which is the maximum statutory penalty for this offense.
On May 10, 2016, Clay was found guilty at trial of being a felon in possession of a firearm.
According to trial testimony, two uniformed Kansas City police officers who were heading home from their off-duty shift nearby, heard multiple gunshots from the area of the Club Luna nightclub, 1520 Grand Ave., at approximately 2:45 a.m. on Sept. 23, 2012. Officers saw a crowd of people running away from the parking lot south of 1520 Grand. The officers pushed through the crowd, and when they got to the parking lot, Clay was standing there with a gun in his hand. He saw the officers, raised his gun, pointed it at them, and fired a round in their direction. One of the officers saw a muzzle flash but was unable to return fire because of the people running in his direction.
Clay began running south on Grand Avenue with the officer in pursuit. Clay turned and pointed the gun in the officer’s direction a second time and the officer returned fire, hitting Clay in the leg. Clay fell when he reached the corner of 16th and Grand.
As the officer turned the corner at 16th and Grand, he found Clay, who had been shot twice, sitting on the ground and leaning against a building. Clay had a Jimenez Arms 9mm handgun in his hand, which he pointed at the officer. Clay complied after being told to drop the gun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Clay has a prior felony conviction for aggravated battery.
This case was prosecuted by Assistant U.S. Attorney Patrick Edwards and Special Assistant U.S. Attorney Courtney R. Pratten. It was investigated by the Kansas City, Mo., Police Department.
Justice Department Sues to Block EnergySolutions’ Acquisition of Waste Control SpecialistsRead the Press Release
Merger Would Eliminate Significant Head-to-Head Competition that Has Led to Lower Prices and Better Service for Customers in 36 States Seeking to Dispose of Low Level Radioactive Waste
The Department of Justice filed a civil antitrust lawsuit today seeking to block EnergySolutions’ proposed $367 million acquisition of Waste Control Specialists – a transaction that would combine the two most significant competitors for the disposal of low level radioactive waste (LLRW) available to commercial customers in 36 states, the District of Columbia and Puerto Rico.
According to the lawsuit filed in the U.S. District Court for the District of Delaware, the transaction would deny commercial generators of LLRW – from universities and hospitals working on life-saving treatments to nuclear facilities producing 20 percent of the electricity in the United States – the benefits of vigorous competition that has led to significantly lower prices, better service and innovation in recent years.
“Since opening its LLRW disposal facility in 2012, Waste Control Specialists has provided EnergySolutions the only real competition it has ever faced,” said Acting Assistant Attorney General Renata Hesse of the department’s Antitrust Division. “This competition has allowed customers to extract better prices and to receive better and more innovative service in the LLRW disposal industry. If consummated, EnergySolutions’ proposed acquisition of Waste Control Specialists would make EnergySolutions the only option for customers in nearly 40 states. And this at a time when projects worth billions of dollars are set to be awarded in the coming years.”
LLRW is the radioactive byproduct of nuclear power generation, scientific research and certain medical treatments. LLRW includes such items as personal protective clothing, tools, water purification filters and resins, hardware from nuclear power plants, and equipment from medical and research institutions. LLRW may only be disposed of in a facility licensed by, or pursuant to an exemption provided by, the Nuclear Regulatory Commission (NRC) or a state acting under an agreement with the NRC. LLRW disposal is an essential service for operating nuclear reactors, research laboratories and medical facilities. Additionally, LLRW disposal is a requirement for the safe decommissioning of such facilities when they reach the end of their useful lives.
According to the department’s complaint, EnergySolutions and Waste Control Specialists are the only two significant competitors providing LLRW disposal services to commercial customers in 36 states, the District of Columbia and Puerto Rico. After nearly two decades of development, Waste Control Specialists became the only new licensed commercial LLRW disposal facility to open since EnergySolutions, and provided EnergySolutions’ only true competition. That competition has led to increased innovation and lower prices for customers. EnergySolutions’ acquisition of Waste Control Specialists would eliminate that competition, with no likelihood of new entry to fill the void.
EnergySolutions Inc. is a Delaware corporation headquartered in Salt Lake City, Utah, and is a wholly-owned subsidiary of Rockwell Holdco Inc., also a Delaware corporation. EnergySolutions is the leading company providing a full range of services related to the disposal of LLRW and the decommissioning of nuclear reactors. In 2015, EnergySolutions’ U.S. revenues from LLRW disposal were approximately $112 million.
Waste Control Specialists LLC is a Delaware limited liability company headquartered in Dallas, Texas, and is a wholly-owned subsidiary of Andrews County Holdings Inc., a Delaware corporation. It operates the only LLRW disposal facility that is licensed to accept all types of LLRW from 36 states, Puerto Rico and the District of Columbia. In 2015, Waste Control Specialists’ revenues were approximately $45 million.
EnergySolutions Complaint
Jury Finds Former Labette Banker Guilty in Embezzlement CaseRead the Press Release
WICHITA, KAN. – A jury today found a former Labette, Kan., banker guilty on federal charges in an embezzlement case, U.S. Attorney Tom Beall said.
Keith L. Shaffer, 61, Altamont, Kan., was convicted on the following charges:
Count one: Misapplication of bank funds.
Count four: Wire fraud
Count five: Misappropriation of insurance funds
Counts six, seven and eight: Making a false statement on a federal tax return
Count two was dismissed before trial. He was acquitted on count three.
During trial, prosecutors presented evidence that while Shaffer was a bank employee he diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer was managing a bank subsidiary called Labette Insurance Company. He was a salaried employee of the bank and all commissions paid on sales by Labette Insurance belonged to the bank. As part of the scheme he submitted false information to the bank and to the Internal Revenue Service.
Sentencing is set for Feb. 6. He faces the following potential penalties:
Counts one: Up to 30 years in federal prison and a fine up to $1 million on each count.
Count four: Up to 20 years and a fine up to $250,000.
Count five: Up to 10 years and a fine up to $250,000.
Counts six, seven and eight: Up to three years and a fine up to $25,000 on each count.
Beall commended the Internal Revenue Service, FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Isleta Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Juan Larry Lujan, 63, a member and resident of Isleta Pueblo, N.M., pled guilty today in federal court in Santa Fe, N.M., to an abusive sexual contact charge.
Lujan was arrested in Feb. 2016, on an indictment charging with sexually abusing a child under the age of 12, on the Isleta Pueblo in Valencia County, N.M.
During today’s proceedings, Lujan pled guilty to a felony information charging him with abusive sexual contact. In entering the guilty plea, Lujan admitted sexually abusing a child under the age of 12 sometime between Nov. 30, 2011 through Nov. 30, 2013.
At sentencing, Lujan faces a maximum penalty of life in prison. He will also be required to register as a sex offender. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
Inmate Charged with Assault and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnny Biggs, age 37, inmate at United States Penitentiary, Canaan, was indicted on November 15, 2016, by a federal grand jury for possession of a dangerous weapon and possession of contraband.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Biggs attacked another inmate with a weapon fashioned from a padlock tied to a sock. The victim suffered multiple lacerations to his head, face, and back.
The case was investigated by the Federal Bureau of Investigation and officers at USP Canaan. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
Indictments 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 assault offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Idaho Man Sentenced for Distribution of Meth Resulting in DeathRead the Press Release
GREAT FALLS – Thomas Joseph Wehner Jr., 40, of Moyie Springs, Idaho, was sentenced today to serve 210 months in prison and 6 years on supervised release for distribution of methamphetamine resulting in death. The charges stemmed from a six-count indictment in February of this year. Wehner entered a guilty plea to the single count in August. U.S. District Court Judge Brian Morris issued the sentence.
Had the case proceeded to trial, the United States was prepared to prove that on September 22, 2015, deputies in Boundary County, Idaho, responded to a report of a business burglary. The business owner told authorities that chainsaws, gold, numerous firearms, and his truck had been stolen during the preceding night. The business owner told authorities two days later that he had visited Wehner’s home to discuss a business issue and observed a chainsaw he believed to be one of the ones stolen in the partially opened trunk of a car.
On September 30, 2015, Meagher and Broadwater County deputies, along with Montana Highway Patrol Officers, responded to a high speed pursuit between White Sulphur Springs and Townsend. The driver eventually stopped and law enforcement identified the vehicle as belonging to Wehner, although he was not in the vehicle when it was stopped. Through communication with Boundary County deputies, Montana law enforcement determined that the vehicle contained one of the firearms that had been reported stolen, and that Wehner had at one point been in the vehicle.
The morning of October 1, Great Falls police officers were dispatched to a report of a dead male. The deceased victim’s wife told law enforcement that Wehner had shown up at her house the previous evening with several water bottles of what he said was “pure dope.” The defendant and the victim proceeded to drink out of one of the bottles and the victim became agitated and died sometime during the early morning. One of the recovered water bottles was sent to the DEA lab for testing and was determined to contain a half gram of methamphetamine with a purity of 100%. An autopsy revealed that the victim had died after ingesting a lethal amount of methamphetamine.
Almost simultaneously, Judith Basin County deputies responded to a call from a woman in Hobson, MT. She said that the defendant had shown up at her home that morning driving a rental vehicle. He was behaving erratically and stated that there was a dead body lying on the ground in Great Falls. She later called the authorities again to inform them that Wehner was at a nearby bank. Detectives found him at the bank, and Wehner agreed to accompany them to the police station to be interviewed. In Wehner’s rented vehicle, detectives found hydrocodone pills, a black suitcase with two water bottles and a ziplock bag that contained methamphetamine. Wehner admitted that he had provided the methamphetamine to the victim and had intended to provide him with some of the drug to sell. He also admitted to the Idaho burglary.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Department, along with the Drug Enforcement Agency, The Montana Highway Patrol, the Meagher, Broadwater, Judith Basin, and Cascade County Sheriff’s Offices, and the Boundary County, Idaho Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica Betley.
High-Ranking Ms-13 Member Sentenced to 13 Years in PrisonRead the Press Release
NEWARK, N.J. – A high-ranking member of the international street gang “Mara Salvatrucha” (also known as MS-13) was sentenced today to 13 years in prison for participating in a racketeering conspiracy, which included acts of extortion, drug distribution, and conspiracy to commit murder, U.S. Attorney Paul J. Fishman announced today.
Joel Antonio Cortez, a/k/a “Pee Wee,” 42, who is currently serving a state prison sentence in California, was sentenced today by U.S. District Court Judge Stanley R. Chesler to 156 months in prison. Cortez previously pleaded guilty to one count of racketeering conspiracy.
According to documents filed in this case and statements made in court:
Cortez and Amilcar Romero, a/k/a “Chi Chi,” 47, served as the top deputies to Jose Juan Rodriguez-Juarez, 34, the alleged leader of MS-13’s “national program,” which was an effort to bring all local MS-13 sets, or “cliques,” operating in the United States under a single, cohesive leadership structure.
By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the east coast of the United States to join the national program. Both are also alleged to have ordered acts of violence, including Cortez’s authorization of a November 2013 murder plot in Hudson County. Law enforcement learned of the murder plot during the course of the investigation and arrested the New Jersey-based conspirators before it could be completed. Cortez and Romero also ordered east coast-based gang members to collect money on behalf of the gang by force and violence.
In addition, Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.
Cortez is currently serving a 22-year prison sentence imposed in California State court in 2004 for second-degree robbery. Cortez’s federal sentence will run concurrently with his state sentence.
Romero previously pleaded guilty to one count of racketeering conspiracy. He was sentenced by Judge Chesler to five years in prison, which will be served consecutively to a 44-year prison sentence imposed by California state court in 1997 for attempted murder.
Rodriguez-Juarez pleaded guilty to one count of racketeering conspiracy and one count of conspiracy to distribute controlled substances. He has yet to be sentenced.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its assistance.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S Attorney’s Office Criminal Division in Newark.
Defense counsel:
Cortez: Howard B. Brownstein, Esq., Union City, New Jersey
Romero: John P. McDonald Esq., Somerville, New Jersey
Rodriguez-Juarez: E. Alexander Jardines, Esq., Union City, New Jersey
High-Level International Drug Trafficker Sentenced to 16 Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO GRIMALDO age 34, a citizen of Mexico, was sentenced today after previously pleading guilty to conspiracy to possess and distribute 5 kilograms or more of cocaine. GRIMALDO’s organization distributed more than one-thousand kilograms of cocaine throughout United States, to include Jackson, Mississippi, Pensacola, Florida, New York City, New York, and Houma, Louisiana.
U.S. District Judge Sarah S. Vance sentenced GRIMALDO to serve 195 months incarceration, to be followed by 5 years of supervised release.
According to court documents, in September 2009, Drug Enforcement Administration Agents seized cocaine hydrochloride in Houma and in April of 2010, the Drug Enforcement Administration conducted a controlled purchase of cocaine hydrochloride from a co-conspirator in Beaumont, Texas.
GRIMALDO was extradited from Mexico in July 2014, based on a warrant from the Eastern District of Louisiana. EFRAIN GRIMALDO, co-defendant and the brother of SERGIO GRIMALDO, was convicted of the same offense following a jury trial and was sentenced to 405 months imprisonment. SERGIO GRIMALDO was also affiliated with NOE JUAREZ, the former Houston Police Officer who was convicted by a federal jury on drug and firearm charges and was sentenced to 365 months imprisonment.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration New Orleans Office, DEA Houston HIDTA Task Force, Terrebonne Parish Sheriff’s Office, Louisiana State Police Troop C, Houma Police Department and Lafourche Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys John F. Murphy and Theodore R. Carter III were in charge of the prosecution.