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10 January 2017
Pittsburgh Man Charged with Dealing Heroin and Fentanyl Resulting in Injury or DeathRead the Press Release
PITTSBURGH – Larry Malloy has been indicted by a federal grand jury in Pittsburgh for distributing Schedule I and Schedule II controlled substances, including heroin and fentanyl, resulting in serious bodily injury and death, Acting United States Attorney Soo C. Song announced today.
The indictment charges Malloy, 23, of Pittsburgh, Pa., with committing the following four crimes in Allegheny County between April 27, 2016, and June 2, 2016: (1) possession with intent to distribute and distribution of a Schedule I controlled substance and/or a Schedule II controlled substance on April 27, 2016, resulting in serious bodily injury or death, and (2) possession with intent to distribute and distribution of heroin and/or fentanyl on May 11, 2016, May 18, 2016, and June 2, 2016.
The law provides for a maximum total sentence of at least 20 years and up to life in prison and a fine of up to $4,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Allegheny County Police Department, the Verona Police Department, the Pennsylvania Attorney General’s Office, and the Allegheny County Medical Examiner’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Anthony Molinero, 70, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced Acting United States Attorney Louis D. Lappen. According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in May 2000 until March 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $150,999.
If convicted, the defendant faces a term of imprisonment, a 3‑year period of supervised release, restitution to the government of $150,999, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County, New Jersey, Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Salvatore Conte, 52, of Totowa, New Jersey, is charged by indictment with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Conte will be arraigned at a later date.
According to the indictment:
From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte periodically solicited, and received from the BLS employees and associates, monthly bribe payments in the form of sham rental, service agreement, and consultant payments. Conte’s referrals generated approximately $525,000 in lab business for BLS.
Conte is the fifth physician to be indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017.
The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Robert Baer Esq., Wayne, New Jersey
New York Man Sentenced to 13 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Justin Kaliebe, 22, of Babylon and Bay Shore, New York, was sentenced to 13 years in prison and 20 years of supervised release with special conditions (including computer monitoring, a prohibition on contact with jihadists, search conditions, mental health treatment and a curfew, among others) following his guilty plea on Feb. 8, 2013. Kaliebe pleaded guilty to both counts of a felony information, which charged him with attempting to provide material support to terrorists, in violation of 18 U.S.C. § 2339A(a), and attempting to provide material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively, AQAP), in violation of 18 U.S.C. § 2339B(a)(1).
The sentencing was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director-in-Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the New York City Police Department (NYPD).
"With this sentence, Justin Kaliebe is being held accountable for his attempt to travel overseas to join Al-Qaeda in the Arab Peninsula and engage in violent jihad," said Acting Assistant Attorney General McCord. "One of our highest priorities is to protect our country by identifying, disrupting and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations.”
“This case is a sobering reminder that the call to violent jihad can reach deep into our local communities. Even when given the opportunity to abandon his plan to join al-Qaeda, this defendant made clear his intentions to commit himself fully to terrorism,” stated U.S. Attorney Capers. “If not for the vigilance and commitment of our dedicated investigators, he might well have succeeded in empowering a dangerous enemy.” Mr. Capers expressed his sincere appreciation to all the members of the FBI’s Joint Terrorism Task Force (JTTF) and the NYPD Intelligence Division for their work on the investigation.
“Providing material support to terrorists is a serious crime that should have serious consequences. Today’s sentencing of Justin Kaliebe shows just that. Kaliebe set out to provide material support to Al-Qaeda in the Arabian Peninsula in 2013 by attempting to travel to Yemen, after making plans months in advance. He didn’t get past JFK thanks to the hard work of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division,” stated Assistant Director-in-Charge Sweeney.
“Kaliebe’s commitment to join al-Qaeda in the Arabian Peninsula was as alarming as it was sinister. And early in 2013, Kaliebe was arrested at John F. Kennedy airport trying to fulfill his dream of joining the jihad in Yemen. Thankfully, Kaliebe was met at the airport by NYPD detectives and FBI agents investigating his support of this terrorist group’s agenda. Thanks, as always, to those on the FBI-NYPD Joint Terrorism Task Force and at the U.S. Attorney’s Office in the Eastern District for their investigation of this case and many others,” stated Commissioner O’Neill.
According to the court filings, including sentencing memoranda, and evidence introduced during a sentencing hearing, Kaliebe attempted to travel from the U.S. to Yemen for the purpose of joining AQAP and waging violent jihad. During numerous meetings and recorded conversations and email correspondence with undercover law enforcement officers, Kaliebe explained that he had been searching for an opportunity to travel abroad and fight jihad for two years – long before Kaliebe first approached the undercover officers about his plans to join a terrorist group. Kaliebe repeatedly expressed his desire to travel to Yemen in order to join AQAP and to help carry out its violent extremist agenda.
Kaliebe also demonstrated extensive knowledge of terrorist organizations, including AQAP and al-Qaeda, and current and former leaders of those terrorist organizations. For example, Kaliebe referenced, and at times quoted, Anwar al-Awlaki, the now-deceased former member and senior leader of AQAP, as well as Omar Abdel Rahman (the “Blind Sheik”), Ayman al-Zawahiri, the current leader of al-Qaeda, and Usama Bin Laden. Further, Kaliebe demonstrated detailed knowledge of various terrorist attacks that were carried out by AQAP in Yemen, as well as other attacks carried out by al-Qaeda around the world.
According to a June 4, 2012, recorded conversation, which was admitted into evidence during the sentencing hearing, Kaliebe observed that “the crime that they would charge people like us with” was conspiracy “to kill, maim and kidnap in foreign countries,” a reference to a federal criminal statute that has previously been used to charge other individuals who departed or attempted to depart the U.S. in order to fight jihad abroad. Later, during that same conversation, Kaliebe stated that, once he arrived in Yemen, he expected to fight the “Yemeni army” and “those who are fighting against the Sharia of Allah . . . whether it’s the U.S. drones or the, their puppets, in the Yemeni army . . . or, who knows, if American agents or whatever, U.S. Special Forces . . . who they got over there.” When asked if he was afraid to die, Kaliebe responded “I wanna . . . . It’s what anyone would want, any believer would want.” During another recorded conversation described in the government’s sentencing memorandum, which took place on July 9, 2012, Kaliebe stated that he had been inspired by several sheiks, including “Sheik Usama,” “who showed how he could bring an entire nation to its knees.”
Beginning in approximately July 2012, Kaliebe saved money to finance his travel to Yemen, which he then used to apply for and purchase a U.S. passport, and to purchase an airline ticket to Oman, from where he intended to travel by land to Yemen. During a recorded meeting on July 30, 2012, Kaliebe stated that he was saving money “as a means to go to Yemen to fight jihad.”
On Dec. 26, 2012, Kaliebe sent an email in which he swore his loyalty to the leaders of AQAP and al-Qaeda, respectively, writing, “I pledge my loyalty, allegiance and fidelity to the Mujahedeen of Al-Qaa'idah in the Arabian Peninsula and its leaders, Shaykh Abu Baseer Nasir Al-Wuhayshi and Shaykh Ayman Al-Zawahiri, hafidhahum Allah! May Allah accept this from me and may he allow me to fight in his cause til the day that I leave this dunya [this world].”
On Jan. 8, 2013, Kaliebe reaffirmed his commitment to jihad, telling an NYPD Intelligence Division undercover officer, in a recorded conversation, which was also admitted into evidence during the sentencing hearing, that he understood “there’s a way out, but for me, the only way out is [martyrdom].” Additionally, Kaliebe paid homage to several terrorist leaders, telling the undercover law enforcement officer that: “[My] standard is Abu Dujana. [M]y standard is Abu Mus’ab Al-Zarqawi. My standard is Sheik Anwar Al-Awlaki and Sheik Usama, both who bore witness to the truth with their blood.”
Finally, Kaliebe stated, “Oh Allah, please allow me, please allow me and my brother…to fight jihad in your cause oh Allah. Oh Allah, please give us one of the two victories, victory on the ground or victory through [martyrdom.]”
On Jan. 21, 2013, Kaliebe’s efforts culminated in an attempt to board a flight to Muscat, Oman at John F. Kennedy Airport in Queens, New York. He was arrested at the airport by members of the FBI’s JTTF and the NYPD Intelligence Division. On Feb. 8, 2013, Kaliebe waived indictment and pleaded guilty to attempting to provide material support to AQAP and to attempting to provide material support to terrorists. Kaliebe’s co-conspirator, Marcos Alonso Zea, who also attempted to travel to Yemen to join AQAP. Once Zea’s own attempt failed, he assisted Kaliebe’s efforts to join the terrorist group. Zea was previously convicted and sentenced to 25 years in prison by the Honorable Sandra J. Feuerstein.
The government’s case is being prosecuted jointly by the National Security and Cybercrime Section, and the Long Island Criminal Section of the U.S. Attorney’s Office for the Eastern District of New York. Assistant U.S. Attorneys Seth D. DuCharme and John J. Durham for the Eastern District of New York are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
New Haven Man Sentenced to 57 Months in Prison for Role in Fraudulent Oxycodone Prescription RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEJANDRO PROSPER, also known as “Pun,” 36, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 57 months of imprisonment, followed by four years of supervised release, for his role in a scheme to distribute oxycodone that was obtained through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
PROSPER purchased large quantities of illegally-obtained oxycodone from Julian Cintron and David Thompson, and sold the pills, as well as other narcotics, to his own customers.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
On October 18, 2016, PROSPER pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
Eleven individuals have been charged as a result of the investigation.
Cintron and Thompson, both of New Haven, pleaded guilty and await sentencing.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
Mt. Vernon Woman Indicted for Meth, CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mt. Vernon, Mo., woman was indicted by a federal grand jury today for carrying large amounts of methamphetamine and cocaine from California en route to Springfield, Mo.
Rubi Espinoza, 26, of Mt. Vernon, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Espinoza on Jan. 3, 2017.
The federal indictment alleges that Espinoza was in possession of methamphetamine with the intent to distribute on Jan. 2, 2017. Espinoza is also charged with possessing cocaine with the intent to distribute on Jan. 2, 2017.
According to an affidavit that was filed in support of the original criminal complaint, a DEA task force officer saw Espinoza exit a bus from California on Jan. 2, 2017. Espinoza acted nervous and was constantly surveilling her surrounds, the affidavit says, and her hands were shaking vigorously when she was asked by the officer for her bus ticket and identification.
The officer searched Espinoza’s luggage, affidavit says, and found 10 packaged bundles, each of which contained approximately 1.1 pound of methamphetamine, for a total weight of 11 pounds or 4,989 grams of methamphetamine. The officer also found one bundle that contained approximately 1.1 pounds or 453 grams of cocaine.
According to the affidavit, Espinoza told the officer that she was traveling to Springfield, where she was to be met by unknown individuals who would take the methamphetamine and cocaine. Espinoza said that she had traveled to California for personal reasons and while there she communicated with a friend from high school. Her friend asked her if she wanted to make some money carrying methamphetamine back to Springfield.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the Drug Enforcement Administration’s Kansas City Interdiction Task Force.
Minnesota Man Indicted for Distributing Fentanyl Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Broussard, age 26, of Hopkins, Minnesota, appeared today before United States Magistrate Judge Karoline Mehalchick in Scranton to face charges that he distributed fentanyl, a Schedule I controlled substance, resulting in the death of another.
According to United States Attorney Bruce D. Brandler, Broussard was indicted on December 6, 2016 by a federal grand jury sitting in Scranton. Broussard was arrested on December 6, 2016, in the District of Minnesota and today he was ordered detained pending trial.
The case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, and the Department of Homeland Security. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 guilty 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 this offense is life imprisonment, a term of supervised release following imprisonment, and a $1,000,000 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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Mexican man charged for illegally re-entering the United StatesRead the Press Release
Abel Arturo Valdez-Parra, 35, of Mexico, was charged with illegal re-entry into the United States, said U.S. Attorney Carole S. Rendon.
Valdez-Parra was found in Ohio on Dec. 5, 2016, after having been removed from the U.S. in 2008, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigating agency in this case is the Bureau of Customs and Border Protection in Sandusky. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Massillon man indicted for trafficking cocaineRead the Press Release
A federal grand jury returned a one-count indictment charging Antonio Cuevas-Baltazar, 21, of Massillon with possession with the intent to distribute cocaine, said U.S. Attorney Carole S. Rendon.
Cuevas-Baltazar possessed with the intent to distribute more than 500 grams of cocaine on Jan. 2, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Ohio State Highway Patrol. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Marianna Man Sentenced to Prison in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that United States District Court Judge D. Price Marshall Jr., sentenced James E. Franklin, Jr., 34, of Marianna, to prison for his role in a widespread scheme to steal money intended for feeding children in low income areas.
Judge Marshall sentenced Franklin, who pleaded guilty to conspiring to commit wire fraud on September 16, 2016, to 24 months’ imprisonment, to be followed by two years of supervised release. He was also ordered to pay restitution in the amount of $380,055.36.
The United States Department of Agriculture (USDA) feeding programs in Arkansas are administered through the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding programs, and they are reimbursed for the eligible meals they serve.
Franklin is the fourth defendant sentenced who was charged with involvement in a scheme to fraudulently obtain these USDA program funds intended to feed children in low income areas. Eight others have pleaded guilty and are awaiting sentencing. Jacqueline Mills, Dorothy Harper, and Anthony Waits are scheduled for trial on March 27, 2017, before United States District Court Judge James M. Moody, Jr.
Franklin was a sponsor for a feeding program through an organization called "JL&N Outreach." Franklin had two approved feeding site locations, one in Hughes, Arkansas and the other in Brinkley, Arkansas. Franklin claimed that he fed as many as 244 children a day in Hughes and as many as 287 children a day in Brinkley. According to witnesses, no more than 10 children per day were fed in Brinkley and no more than 15 children per day were fed in Hughes.
Franklin was recruited by Anthony Waits. Waits’ wife, Gladys Waits, worked for DHS and approved Franklin’s application. Franklin paid Anthony Waits approximately 40% of the $380,055.36 Franklin received in the scheme.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris, Allison W. Bragg, and Cameron McCree.
If you are aware of any fraudulent activity regarding feeding programs, please email that information to [email protected].
Long Island Man Sentenced to 13 Years in Prison for Attempting to Join Al-Qaeda in the Arabian PeninsulaRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Justin Kaliebe, an American citizen and resident of Babylon and Bay Shore, New York, was sentenced to 13 years in prison and 20 years of supervised release with special conditions (including computer monitoring, a prohibition on contact with jihadists, search conditions, mental health treatment and a curfew, among others) following his February 8, 2013, guilty plea to both counts of a felony information, which charged him with attempting to provide material support to terrorists, in violation of 18 U.S.C. § 2339A(a), and attempting to provide material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula, also known as Ansar al-Sharia (collectively, AQAP), in violation of 18 U.S.C. § 2339B(a)(1).
The sentencing was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mary B. McCord; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
According to the court filings, including sentencing memoranda, and evidence introduced during a sentencing hearing, Kaliebe attempted to travel from the United States to Yemen for the purpose of joining AQAP and waging violent jihad. During numerous meetings and recorded conversations and email correspondence with undercover law enforcement officers, Kaliebe explained that he had been searching for an opportunity to travel abroad and fight jihad for two years – long before Kaliebe first approached the undercover officers about his plans to join a terrorist group. Kaliebe repeatedly expressed his desire to travel to Yemen in order to join AQAP and to help carry out its violent extremist agenda. Kaliebe also demonstrated extensive knowledge of terrorist organizations, including AQAP and al-Qaeda, and current and former leaders of those terrorist organizations. For example, Kaliebe referenced, and at times quoted, Anwar al-Awlaki, the now-deceased former member and senior leader of AQAP, as well as Omar Abdel Rahman (the “Blind Sheik”), Ayman al-Zawahiri, the current leader of al-Qaeda, and Usama Bin Laden. Further, Kaliebe demonstrated detailed knowledge of various terrorist attacks that were carried out by AQAP in Yemen, as well as other attacks carried out by al-Qaeda around the world.
According to a June 4, 2012 recorded conversation, which was admitted into evidence during the sentencing hearing, Kaliebe observed that “the crime that they would charge people like us with” was conspiracy “to kill, maim and kidnap in foreign countries,” a reference to a federal criminal statute that has previously been used to charge other individuals who departed or attempted to depart the United States in order to fight jihad abroad. Later, during that same conversation, Kaliebe stated that, once he arrived in Yemen, he expected to fight the “Yemeni army” and “those who are fighting against the Sharia of Allah . . . whether it’s the U.S. drones or the, their puppets, in the Yemeni army . . . or, who knows, if American agents or whatever, U.S. Special Forces . . . who they got over there.” When asked if he was afraid to die, Kaliebe responded “I wanna . . . . It’s what anyone would want, any believer would want.” During another recorded conversation described in the government’s sentencing memorandum, which took place on July 9, 2012, Kaliebe stated that he had been inspired by several sheiks, including “Sheik Usama,” “who showed how he could bring an entire nation to its knees.”
Beginning in approximately July 2012, Kaliebe saved money to finance his travel to Yemen, which he then used to apply for and purchase a United States passport, and to purchase an airline ticket to Oman, from where he intended to travel by land to Yemen. During a recorded meeting on July 30, 2012, Kaliebe stated that he was saving money “as a means to go to Yemen to fight jihad.”
On December 26, 2012, Kaliebe sent an email in which he swore his loyalty to the leaders of AQAP and al-Qaeda, respectively, writing, “I pledge my loyalty, allegiance and fidelity to the Mujahedeen of Al-Qaa'idah in the Arabian Peninsula and its leaders, Shaykh Abu Baseer Nasir Al-Wuhayshi and Shaykh Ayman Al-Zawahiri, hafidhahum Allah! May Allah accept this from me and may he allow me to fight in his cause til the day that I leave this dunya [this world].”
On January 18, 2013, Kaliebe reaffirmed his commitment to jihad, telling an NYPD Intelligence Division undercover officer, in a recorded conversation, which was also admitted into evidence during the sentencing hearing, that he understood “there’s a way out, but for me, the only way out is [martyrdom].” Additionally, Kaliebe paid homage to several terrorist leaders, telling the undercover law enforcement officer that:
[My] standard is Abu Dujana. [M]y standard is Abu Mus’ab Al-Zarqawi. My standard is Sheik Anwar Al-Awlaki and Sheik Usama, both who bore witness to the truth with their blood.
Finally, Kaliebe stated, “Oh Allah, please allow me, please allow me and my brother…to fight jihad in your cause oh Allah. Oh Allah, please give us one of the two victories, victory on the ground or victory through [martyrdom.]”
On January 21, 2013, Kaliebe’s efforts culminated in an attempt to board a flight to Muscat, Oman at John F. Kennedy Airport in Queens, New York. He was arrested at the airport by members of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division. Thereafter, on February 8, 2013, Kaliebe waived indictment and pled guilty to attempting to provide material support to AQAP and attempting to provide material support to terrorists. Kaliebe’s co-conspirator, Marcos Alonso Zea, who also attempted to travel to Yemen to join AQAP and, once his own attempt failed, assisted Kaliebe’s efforts to join the terrorist group, previously was convicted and sentenced to 25 years in prison by the Honorable Sandra J. Feuerstein.
“This case is a sobering reminder that the call to violent jihad can reach deep into our local communities. Even when given the opportunity to abandon his plan to join al-Qaeda, this defendant made clear his intentions to commit himself fully to terrorism,” stated U.S. Attorney Capers. “If not for the vigilance and commitment of our dedicated investigators, he might well have succeeded in empowering a dangerous enemy.” Mr. Capers expressed his sincere appreciation to all the members of the FBI’s Joint Terrorism Task Force and the New York City Police Department, Intelligence Division, for their work on the investigation.
“With this sentence, Justin Kaliebe is being held accountable for his attempt to travel overseas to join Al-Qaeda in the Arab Peninsula and engage in violent jihad,” said Acting Assistant Attorney General McCord. “One of our highest priorities is to protect our country by identifying, disrupting, and holding accountable those who provide or attempt to provide material support to designated foreign terrorist organizations.”
“Providing material support to terrorists is a serious crime that should have serious consequences. Today’s sentencing of Justin Kaliebe shows just that. Kaliebe set out to provide material support to Al-Qaeda in the Arabian Peninsula in 2013 by attempting to travel to Yemen, after making plans months in advance. He didn’t get past JFK thanks to the hard work of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division,” stated FBI Assistant Director-in-Charge Sweeney.
“Kaliebe’s commitment to join al-Qaeda in the Arabian Peninsula was as alarming as it was sinister. And early in 2013, Kaliebe was arrested at John F. Kennedy airport trying to fulfill his dream of joining the jihad in Yemen. Thankfully, Kaliebe was met at the airport by NYPD detectives and FBI agents investigating his support of this terrorist group’s agenda. Thanks, as always, to those on the FBI-NYPD Joint Terrorism Task Force and at the U.S. Attorney’s Office in the Eastern District for their investigation of this case and many others,” stated Police Commissioner O’Neill.
The government’s case is being prosecuted jointly by the Office’s National Security and Cybercrime Section and the Long Island Criminal Section. Assistant United States Attorneys Seth D. DuCharme and John J. Durham are in charge of the prosecution, with assistance provided by Trial Attorney Kelli Andrews of the National Security Division’s Counterterrorism Section.
The Defendant:
JUSTIN KALIEBE
Age: 22
Babylon and Bay Shore, New York
E.D.N.Y. Docket No. 13-072 (DRH)
Latin King Gang Member Sentenced to 14 Years’ Imprisonment on Drug and Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Latin King gang member Felix Dominguez-Rivera, age 38, of Lebanon, Pennsylvania, was sentenced to 168 months’ imprisonment on January 9, 2017, by United States District Court Judge John E., Jones, III, for distribution of cocaine and heroin and possession of a firearm.
Judge Jones also ordered Dominguez-Rivera to be placed on four years of supervised release following his prison sentence, and to pay $1,800 in fines and special assessments.
According to United States Attorney Bruce D. Brandler, Dominguez-Rivera, a career offender, distributed approximately 522 grams of heroin, which is equivalent to approximately 20,000 retail bags, and approximately 2,282 grams of cocaine base, also known as crack cocaine, between December of 2011 and August of 2013, in Lebanon County. At the time of his arrest on April 8, 2014, Dominguez-Rivera was in the possession of a loaded Keltec 9mm handgun with an obliterated serial number. As a convicted felon, he was prohibited from possessing firearms.
The case was investigated by the Drug Enforcement Administration, the Lebanon County Drug Task Force, Lebanon City Police Department, and the Cornwall Borough Police Department. Assistant United States Attorney Daryl F. Bloom and Nichole Eisenhart, Lebanon County First Assistant District Attorney, serving as Special Assistant United States Attorney, prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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Jury Convicts Alien SmugglerRead the Press Release
BROWNSVILLE, Texas – A federal jury sitting in Brownsville has convicted a 37-year-old undocumented alien from Oaxaca, Mexico, who had been living in Brownsville on immigration charges that led to death, announced U.S. Attorney Kenneth Magidson. The jury returned its verdicts against Galdino Jose Ruiz-Hernandez after a two-day trial.
Evidence presented at the trial showed that on April 24, 2015, Ruiz-Hernandez reported to Port of Brownsville authorities that a “friend” told him saw a female body floating in the Brownsville ship channel. Law enforcement located the body and noticed injuries. Ruiz-Hernandez was initially arrested for illegally re-entering the U.S. after having been previously deported and later charged with alien smuggling as well.
Investigators learned Ruiz-Hernandez had actually been guiding the female illegal alien at midnight in the water across the ship channel when they were struck by a Coast Guard boat. Evidence presented at trial showed he guided her on behalf of Gabriel Sanchez-Aburto, 46, who had taken him to Mexico to pick up the woman. Ruiz-Hernandez and the victim entered the U.S. illegally, walked to the Port of Brownsville ship channel and began crossing the water in darkness. While in the water, a Coast Guard boat struck them. The autopsy revealed the boat’s propeller caused the injuries that resulted in her death.
As part of the investigation, agents with Immigrations and Customs Enforcement’s Homeland Security Investigation (HSI) arrested Sanchez-Aburto on a warrant for the alien smuggling death incident on Oct. 27, 2015. He and others were in the process of smuggling other aliens at the time. Authorities found and detained seven undocumented aliens and arrested three brothers - Lazaro Comunidad-Hernandez, 48, Pablo Comunidad-Hernandez, 25, and Luciano Comunidad-Hernandez, 39, all from Puebla, Mexico.
The brothers were later sentenced to terms from 10-15 months and are expected to face deportation proceedings following their release from prison.
Sanchez-Aburto entered a guilty plea to both alien smuggling charges and his sentencing is scheduled for Feb. 6, 2017.
U.S. District Judge Hilda Tagle presided over the trial and set sentencing for Ruiz-Hernandez for April 10, 2017. At that time, he faces up to life imprisonment. He will remain in custody pending that hearing.
HSI conducted the investigation. Assistant U.S. Attorneys Oscar Ponce and Jason Corley are prosecuting the case.
Judges Sentences South Park Man to 3 Years in Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 39 months imprisonment, followed by 10 years of supervised release for the charge of Possession of Material Depicting the Sexual Exploitation of a Minor, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta Ambrose imposed the sentence on Kevin O’Connor, 51, of South Park, Pennsylvania.
According to information presented to the court, the court was advised that on or about April 27, 2016, O’Connor knowingly possessed images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of O’Connor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Johnstown Man Charged with Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The indictment named Daniel Culmer, 49, of Johnstown, Pa.
According to the indictment presented to the court, on June 7 and June 8, 2016, Culmer distributed less than 100 grams of heroin.
The law provides for a maximum sentence of 40 years in prison and a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Culmer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Guilty Plea to Federal Bribery Conspiracy by Man who Served as Prince George’s County Councilman and Maryland State DelegateRead the Press Release
Greenbelt, Maryland – Former Maryland Delegate and Prince George’s County Councilman William Alberto Campos-Escobar, age 42, of Hyattsville, Maryland, has pleaded guilty to federal charges for taking bribes related to the performance of his official duties. The guilty plea was entered under seal on January 5, 2017, and unsealed today.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Kareem Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
“This undercover investigation did not involve an isolated instance of misconduct,” said U.S. Attorney Rod J. Rosenstein. “It exposed a longstanding practice of giving away taxpayer money in exchange for bribes. This type of corruption can flourish when government officials exercise discretion without oversight.”
“A public servant must uphold public trust. You cannot use public service for your own personal gain,” said Special Agent Gordon B. Johnson of the FBI’s Baltimore Division. “Today’s plea announcement should send a clear signal that the FBI will vigorously investigate any public official who attempts to use their position to enrich themselves.”
“Rooting out public corruption remains one of the IRS-CI’s highest priorities. This investigation underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violate the public’s trust. If you commit a crime, status as a political leader will not protect you from federal prosecution," said Assistant Special Agent in Charge Kareem Carter.
Campos was elected as a Prince George’s County Councilman representing County District 2 in 2004 and served until he was elected as a Delegate to the Maryland General Assembly in 2014. Campos served as a state delegate until his resignation on September 10, 2015. While Campos served as County Councilman, Prince George’s County allowed each County Council member to award $100,000 in grant funds to non-profit service organizations of their choice.
According to Campos’ plea agreement, Campos conspired to solicit and accept bribes in exchange for favorable official actions. For example, on December 9, 2012, Campos and another suspect met with a cooperating witness to discuss moving the cooperator’s business to the County. They met again on December 21, 2012, and the cooperator gave Campos an envelope with $3,000 in cash. Campos told the cooperator to find a non-profit organization (NPO), and Campos would arrange a grant that the NPO could share with the cooperator. On February 6, 2013, the cooperator received a check for $5,000, made out to the NPO, with a note that the grant represented funds from District 2.
On July 12, 2013, Campos and the other suspect met with the cooperator to discuss other NPOs that Campos could use to funnel County grant funds to the source. Campos said that he was going on vacation and “could use an advance for my trip.” On July 22, 2013, the cooperator called Campos and proposed meeting to give Campos information about the NPOs the cooperator had lined up to receive County grant funds. The cooperator said that he also wanted to “take care” of Campos before his trip.
At a meeting on July 25, 2013, the cooperator gave Campos $3,000 in cash. On November 15, 2013, an undercover FBI employee (UCE) picked up a check for $5,000 in County grant funds made out to the UCE’s NPO. The UCE posed as a businessman who owned a property management company and wanted to expand his business into the County and the surrounding area.
Campos subsequently asked the UCE to make a $2,000 campaign contribution to the another candidate’s campaign. On January 7, 2014, at Campos’ request, the UCE attended a political fundraiser for the candidate. During the fundraiser, Campos asked the UCE to increase the contribution to $4,000. The UCE agreed to make a $2,000 contribution at the fundraiser and pay an additional $2,000 if Campos would support the UCE’s company obtaining a property management contract with a housing authority outside Maryland. Campos agreed.
On January 28, 2014, the UCE sent Campos a draft letter of support. Campos forwarded the letter to a County employee with instructions to put the letter on official County letterhead and send it back to the UCE, who received the letter by email that same day. On February 4, 2014, Campos and UCE met in Alexandria, Virginia, and the UCE gave Campos $2,000 in cash. Later, Campos and UCE had the following conversation:
Campos: I told you, you were a bad influence. [laughs]
UCE: Oh, man. You can always say no. You say no to me right now. You say no, you walk away.
Campos: I’m a mortal man – that’s the problem.At a meeting on April 4, 2014, the other suspect told the cooperator that Campos needed $10,000 to pay a campaign-related expense, and that Campos wanted the cooperator to pay in exchange for Campos arranging another grant to an NPO selected by the cooperator.
On April 9, 2014, the other suspect told the cooperator that Campos wanted to “hook the source up” with the developer of a new business in the County that would retain the cooperator’s services. The other suspect stated that the business owed Campos because Campos had obtained a tax benefit for the business. The cooperator gave the other suspect $3,000 in cash for Campos, which the other suspect gave to Campos later that day. At a meeting the next day, Campos agreed to provide money to the cooperator through an NPO associated with the UCE. Campos also said he was meeting with the developer and would tell the developer that Campos wanted the developer to work with the cooperator.
On April 17, 2014, the UCE gave Campos another $2,000 in cash.
Campos also admitted that he received bribe payments from numerous other individuals. For example, from 2011 through 2014, Campos received between $21,000 and $24,000 from two County business owners in exchange for giving approximately $325,000 in County grant money to entities controlled by those business owners
As part of his plea agreement, Campos will be required to forfeit and pay restitution of at least $340,000.
Campos faces a maximum sentence of five years in prison for the conspiracy, a maximum of 10 years in prison for bribery. U.S. District Judge Paula Xinis has scheduled sentencing for April 10, 2017.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince Georges County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and James A. Crowell IV, who are prosecuting the case.
Gladstone Man Indicted for Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was indicted by a federal grand jury today for his role in a conspiracy to distribute heroin.
Charles David Rowell, 57, of Gladstone, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Rowell on Dec. 19, 2016.
The federal indictment alleges that Rowell participated in a conspiracy to distribute one kilogram or more of heroin from Jan. 1 to Dec. 16, 2016. Rowell is also charged with one count of possessing heroin with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, Rowell was stopped by law enforcement officers on Dec. 16, 2016, for a turn signal violation near Northeast 74th Terrace and Northeast Shoal Creek Parkway in Kansas City, Mo. When officers searched the pickup truck Rowell was driving, they found a plastic bag containing seven clear plastic baggies inside a toolbox in the pickup truck. The seven plastic baggies had a combined weight of approximately 194 grams of heroin.
Today’s indictment also contains a forfeiture allegation, which would require Rowell to forfeit to the government any property derived from the proceeds of the drug-trafficking conspiracy, including $320,000 that was received from the unlawful distribution of heroin (based on a sale price of $2,000 per ounce of heroin and distribution of 160 ounces of heroin).
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Clay County Drug Task Force.
Four Individuals Charged for Alleged Involvement in Foreign Bribery Scheme Involving $800 Million International Real Estate DealRead the Press Release
Court documents were unsealed today charging four individuals for their roles in a scheme to pay $2.5 million in bribes to facilitate the $800 million sale of a commercial building in Vietnam to a Middle Eastern sovereign wealth fund.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“This alleged conduct proves the adage that there is truly no honor among thieves,” said Assistant Attorney General Caldwell. “The indictment alleges that two defendants wanted to bribe a government official; instead they were defrauded by their co-defendant. Today’s charges are another example of the Criminal Division’s commitment to rooting out all manner of corruption.”
“The father-son defendants, Ban Ki Sang and Joo Hyun Bahn, allegedly conspired to bribe a foreign official to close an $800 million deal for a 72-story skyscraper in Vietnam, a deal that would have led to a multimillion-dollar commission for the Manhattan real estate broker son and much needed capital for the father’s construction company in Korea,” said U.S. Attorney Bharara. “But these alleged schemers were themselves double-crossed, as the man who purportedly set up the bribery scheme, Malcolm Harris, took the bribe money and pocketed it. This alleged bribery and fraud scheme offends all who believe in honest and transparent business, and it stands as a reminder that those who bring international corruption to New York City, as alleged here, will face the scrutiny of American law enforcement.”
“When Ban, a senior executive at Landmark 72, realized the debts owed to his company’s creditors were mounting, he sought the support of his son Bahn, a broker for a real estate firm in Manhattan,” said Assistant Director in Charge Sweeney. “The plan was for Bahn to secure an investor for Landmark 72, and the brokerage agreement they entered into would ultimately secure Bahn a lucrative profit. But instead of lawfully obtaining financing for the deal, they allegedly entered into an illegal agreement with Harris to bribe a foreign official into purchasing the property. In the end, they were hoodwinked by their very own criminal activity.”
Joo Hyun Bahn, aka Dennis Bahn, 38, of Tenafly, New Jersey, and his father, Ban Ki Sang (Ban), 69, of Seoul, South Korea, are each charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), three counts of violating the FCPA, one count of conspiracy to commit money laundering and one count of money laundering. In addition, Bahn and Malcolm Harris, 52, of New York City, are each charged with one count of wire fraud, one count of conducting monetary transactions in illegal funds and aggravated identity theft. San Woo, aka John Woo, 35, of Edgewater, New Jersey, was charged separately by complaint with one count of conspiracy to violate the FCPA. Bahn was arrested in Tenafly earlier this morning, and Woo was arrested at JFK Airport. Bahn and Woo are expected to be presented later today before U.S. Magistrate Judge Kevin Nathaniel Fox of the Southern District of New York. Ban and Harris remain at large.
According to the indictment and the complaint, from in or about March 2013 through in or about May 2015, Ban was a senior executive at Keangnam Enterprises Co. Ltd. (Keangnam), a South Korean construction company that built and owned Landmark 72, a building complex in Hanoi, Vietnam. In early 2013, Keangnam was experiencing a liquidity crisis; the debts owed to the company’s creditors were maturing and Keangnam needed to raise capital. Ban allegedly convinced Keangnam to hire his son Bahn to secure an investor for Landmark 72. Thereafter, Keangnam entered into an exclusive brokerage agreement with Bahn, who worked as a broker at a commercial real estate firm in New York City, and his firm. Pursuant to the agreement, Bahn stood to earn a multimillion-dollar commission from Keangnam if he was successful in securing an investor.
Instead of obtaining financing through legitimate channels, Bahn and Ban allegedly conspired to pay bribes to a foreign official of a Middle Eastern country, in order to induce the official to use his influence to convince his country’s sovereign wealth fund to acquire Landmark 72 for approximately $800 million. Harris, who held himself out as an agent of the foreign official despite not actually having such a relationship, allegedly deceived Bahn and Ban by sending numerous emails that were purportedly sent by the foreign official. According to the indictment, in or about April 2014, Bahn and Ban agreed to pay, through Harris, $2.5 million in bribes to the official, including $500,000 upfront and $2 million upon the close of the sale of Landmark 72. Woo helped Bahn and Ban obtain the $500,000 that was used as the upfront bribe payment. Bahn and Ban arranged the transfer of the $500,000 to Harris for him to pay to the foreign official, unaware that Harris did not have the relationship he claimed with the foreign official. Instead, Harris stole the $500,000, spending the money on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
According to the indictment, over the course of 2014 and 2015, Keangnam’s liquidity crisis worsened. Believing that the planned bribery would result in the sale of Landmark 72, and not wanting to lose his commission, Bahn allegedly engaged in a fraudulent scheme to trick Keangnam and its creditors into believing the sovereign wealth fund was close to acquiring Landmark 72. In furtherance of the fraudulent scheme, Bahn repeatedly lied to Keangnam and its creditors about the status of the Landmark 72 deal, knowing that Keangnam and its creditors would rely upon the misrepresentations. In addition, Bahn forged emails from the foreign official and other documents to make the sale of Landmark 72 to the sovereign wealth fund appear imminent to Keangnam and its creditors. Ultimately, when the sale of Landmark 72 to the sovereign wealth fund failed to materialize, Keangnam was forced to enter court receivership in South Korea. Bahn is also alleged to have stolen approximately $225,000 of the $500,000 that Keangnam had advanced Bahn’s firm to cover brokerage expenses.
The charges contained in the indictment and the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
FBI’s New York Field Office International Corruption Squad investigated the case. The Department of Justice’s Office of International Affairs is providing assistance in this investigation. Trial Attorney Dennis R. Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Noble of the Southern District of New York’s Complex Frauds and Cybercrime Unit are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Four Individuals Charged in Foreign Bribery and Fraud Scheme Involving Potential $800 Million International Real Estate Deal for South Korean CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, Stephen Richardson, Assistant Director of the Criminal Investigative Division of the Federal Bureau of Investigation (“FBI”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the FBI, announced the unsealing of an Indictment charging JOO HYUN BAHN, a/k/a “Dennis Bahn” (“BAHN”), BAN KI SANG (“BAN”), and MALCOLM HARRIS (“HARRIS”) with violations of the Foreign Corrupt Practices Act (“FCPA”), money laundering, wire fraud, and aggravated identity theft, and the filing of a Complaint charging SANG WOO, a/k/a “John Woo,” with conspiracy to violate the FCPA. The defendants are charged with federal crimes arising out of a corrupt scheme to pay $2.5 million in bribes to a foreign official (“Foreign Official-1”) of a country in the Middle East (“Country-1”) in order to facilitate the sale by South Korean construction company Keangnam Enterprises Co., Ltd. (“Keangnam”) of a 72-story commercial building known as Landmark 72 in Hanoi, Vietnam, to Country-1’s sovereign wealth fund (the “Fund”) for $800 million.
Manhattan U.S. Attorney Preet Bharara said: “The father-son defendants, Ban Ki Sang and Joo Hyun Bahn, allegedly conspired to bribe a foreign official to close an $800 million deal for a 72-story skyscraper in Vietnam, a deal that would have led to a multimillion-dollar commission for the Manhattan real estate broker son and much needed capital for the father’s construction company in Korea. But these alleged schemers were themselves double-crossed, as the man who purportedly set up the bribery scheme, Malcolm Harris, took the bribe money and pocketed it. This alleged bribery and fraud scheme offends all who believe in honest and transparent business, and it stands as a reminder that those who bring international corruption to New York City, as alleged here, will face the scrutiny of American law enforcement.”
Assistant Attorney General Leslie R. Caldwell said: “This alleged conduct proves the adage that there is truly no honor among thieves. The indictment alleges that two defendants wanted to bribe a government official; instead they were defrauded by their co-defendant. Today’s charges are another example of the Criminal Division’s commitment to rooting out all manner of corruption.”
FBI Assistant Director Stephen Richardson said: “Accepting and offering bribes seriously threatens the integrity of a fair and competitive economic system here in the United States and abroad. This case is a testament to the commitment by the FBI and our dedicated International Corruption Squads to combatting foreign corruption that reaches our shores, and these arrests send a strong message that we will not relent in our efforts to uphold the law and hold everyone accountable to play by the same, fair rules.”
FBI Assistant Director William F. Sweeney Jr. said: “When Ban, a senior executive at Keangnam, realized the debts owed to his company’s creditors were mounting, he sought the support of his son Bahn, a broker for a real estate firm in Manhattan. The plan was for Bahn to secure an investor for Landmark 72, and the brokerage agreement they entered into would ultimately secure Bahn a lucrative profit. But instead of lawfully obtaining financing for the deal, they allegedly entered into an illegal agreement with Harris to bribe a foreign official into purchasing the property. In the end, they were hoodwinked by their very own criminal activity.”
According to the allegations contained in the Indictment and the Complaint[1]:
From in or about March 2013 through in or about May 2015, BAHN and his father BAN engaged in an international conspiracy to bribe Foreign Official-1 in connection with the attempted $800 million sale of a building complex in Hanoi, Vietnam, known as Landmark 72. During this time, BAN was a senior executive at Keangnam, a South Korean construction company that built and owned Landmark 72. In early 2013, Keangnam was experiencing a liquidity crisis. The debts owed to Keangnam’s creditors were maturing and the company needed to raise capital. BAN convinced Keangnam to hire his son BAHN, who worked as a broker at a commercial real estate firm in Manhattan, to secure an investor for Landmark 72. Thereafter, Keangnam entered into an exclusive brokerage agreement with BAHN and his firm. If BAHN were successful, he stood to earn a multimillion-dollar commission from Keangnam.
Instead of obtaining financing through legitimate channels, BAHN and BAN engaged in a corrupt scheme to pay bribes to Foreign Official-1, through HARRIS, who held himself out as an agent of Foreign Official-1, to induce Foreign Official-1 to use his influence to convince the Fund to acquire Landmark 72 for approximately $800 million. HARRIS sent BAHN numerous emails purportedly sent by Foreign Official-1 and bearing Foreign Official-1’s name. In or about April 2014, following communications with HARRIS, BAHN and BAN agreed to pay, through HARRIS, a $500,000 upfront bribe and a $2,000,000 bribe upon the close of the sale of Landmark 72 to Foreign Official-1 on behalf of Keangnam. WOO helped BAHN and BAN obtain the $500,000 that was ultimately used to pay the attempted upfront bribe. Unbeknownst to BAHN or BAN, however, HARRIS did not have the claimed relationship with Foreign Official-1 and did not intend to pay the bribe money to Foreign Official-1. Instead, HARRIS simply stole the $500,000 upfront bribe arranged by BAHN and BAN, which HARRIS then spent on lavish personal expenses, including rent for a luxury penthouse apartment in Williamsburg, Brooklyn.
Over approximately the next year, as the Landmark 72 deal showed no signs of actual progress, Keangnam’s liquidity crisis worsened. Believing that the upfront bribe that BAHN and BAN had arranged would eventually bear fruit, and not wanting to lose a potential multimillion-dollar commission, BAHN engaged in a fraudulent scheme to trick Keangnam and its creditors into believing the Fund was close to acquiring Landmark 72. BAHN also stole approximately $225,000 of the $500,000 that Keangnam had advanced BAHN’s firm to cover brokerage expenses. In furtherance of the fraudulent scheme, BAHN repeatedly lied to Keangnam and its creditors about the status of the Landmark 72 deal with the Fund, knowing that Keangnam and its creditors would rely upon the misrepresentations. In addition, BAHN forged emails from Foreign Official-1 and other documents to make the sale of Landmark 72 to the Fund appear imminent to Keangnam and its creditors. Ultimately, when the sale of Landmark 72 to the Fund failed to materialize, Keangnam was forced to enter court receivership in South Korea.
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BAHN was arrested in Tenafly, New Jersey, and WOO was arrested at John F. Kennedy Airport earlier this morning. BAHN and WOO are expected to be presented before U.S. Magistrate Judge Kevin Nathaniel Fox in federal court in Manhattan later today. BAN and HARRIS are currently at large.
The case against BAHN, BAN, and HARRIS is assigned to U.S. District Judge Edgardo Ramos.
BAHN, 38, of Tenafly, New Jersey, and BAN, 69, of Seoul, South Korea, are each charged with one count of conspiracy to violate the FCPA, which carries a maximum sentence of five years in prison; three counts of violating the FCPA, each of which carries a maximum sentence of five years in prison; and one count of conspiracy to commit money laundering and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. In addition, BAHN and HARRIS, 52, of New York, New York, are each charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conducting monetary transactions in illegal funds, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. WOO, 35, of Edgewater, New Jersey, is charged with one count of conspiracy to violate the FCPA, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the International Corruption Squad of the FBI’s New York Field Office. Mr. Bharara also thanked the Department of Justice’s Office of International Affairs for its ongoing assistance in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Daniel S. Noble and Trial Attorney Dennis R. Kihm of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and Complaint, and the description of the Indictment and Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Wife of Fugitive Chinese Official Pleads Guilty to Conspiring to Commit Immigration Fraud Related to EB-5 Investor VisaRead the Press Release
LOS ANGELES – The ex-wife of a former Chinese government official has pleaded guilty to charges that she conspired to fraudulently obtain visas to enter the United States through the immigrant investor program.
Shilan Zhao (趙世蘭), 53, of Newcastle, Washington, pleaded guilty yesterday to one count of conspiring with her ex-husband to commit immigration fraud by submitting false documents to federal authorities. As part of a plea agreement with prosecutors, Zhao agreed to cooperate with the government’s investigation into this matter.
Zhao and her ex-husband – Jianjun Qiao (喬建軍), also known as Feng Li, 53 – were charged in a federal grand jury indictment unsealed in March 2015. Qiao remains a fugitive who is being sought by federal authorities.
According to the indictment, Zhao and Qiao were divorced, but, in documents filed with U.S. immigration authorities, they falsely claimed to be married. The indictment also accused them of lying about the source of Zhao's investment in the U.S., an investment which was required under the EB-5 immigrant investor program to obtain U.S. immigrant visas.
Zhao pleaded guilty pursuant to a plea agreement in which she admitted that she submitted false documents, prepared or obtained by her ex-husband, to U.S. immigration authorities under penalty of perjury to support her immigration application. Those documents included a false marriage certificate and documents that purported to show the source of the money used for her investment.
“We will continue to fight fraud and abuse in our immigration system,” said United States Attorney Eileen M. Decker. “There is a lawful process that can be followed to obtain legal status in this nation. Those who attempt to undermine the system by fraud threaten our national security and compromise the attempts of other immigrants who follow the rules to lawfully gain entry to the United States.”
In her plea agreement, Zhao agrees that $25,000 used to pay her bond can be applied to any restitution or other monetary penalties ordered in this case. Additionally, she agreed to forfeit her interest in several parcels in Monterey Park; a house in Newcastle, Washington; and a condominium in Flushing, New York.
“Immigration benefit fraud is a serious crime,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Not only do schemes like this potentially rob deserving immigrants of benefits they rightfully deserve, they also create a security vulnerability that could be exploited by criminals and others who pose a danger to our community. HSI will aggressively target those who conspire to corrupt the integrity of America’s legal immigration system and put our nation’s security at risk in the process.”
“The EB-5 investor visa program requires all immigrant investors to accurately document the source of their funds in their application,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “IRS Criminal Investigation will take whatever steps are necessary to ensure that ill-gotten gains received in foreign countries are not fraudulently laundered through the United States financial system.”
Zhao pleaded guilty yesterday before United States District Judge Stephen V. Wilson, who scheduled a sentencing hearing for November 6. At sentencing, Zhao will face a statutory maximum penalty of five years in federal prison.
This case is the product of a joint investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and IRS - Criminal Investigation, which received assistance from U.S. Citizenship and Immigration Services. The Supreme People's Procuratorate and Ministry of Public Security of the People's Republic of China also provided assistance.
This case is being prosecuted by Assistant United States Attorney Vicki Chou of the Cyber and Intellectual Property Crimes Section and Assistant United States Attorney John J. Kucera of the Asset Forfeiture Section.
Former Suburban Middle School Teacher Sentenced to 13 Years for Possessing Child Pornography and Encouraging Underage Boys to Produce Sexually Explicit Images of ThemselvesRead the Press Release
CHICAGO — A former middle school teacher was sentenced today to 13 years in federal prison for accessing child pornography involving a prepubescent minor and encouraging minors to produce sexually explicit images of themselves.
JOHN C. VASTIS began communicating online with one of the victims in 2013. From the outset, the chats were sexually charged. For nearly a year Vastis encouraged the victim to record sexually explicit photos and videos of himself and transmit the images over the internet to Vastis. Several of the images depicted the victim’s private areas. Vastis also admitted in a plea agreement that he watched child pornography involving another victim and possessed images of a prepubescent boy performing a sex act on an adult male.
Vastis, 54, of Lakemoor, pleaded guilty last year to one count of accessing child pornography with the intent to view. U.S. District Judge John J. Tharp Jr. imposed the sentence in federal court in Chicago.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Lakemoor Police Department, Lake County State’s Attorney’s Office and the Buffalo Grove Police Department provided assistance in the case.
Vastis was arrested in August 2014. He previously worked as a teacher at Meridian Middle School in Aptakisic-Tripp District 102 in Buffalo Grove. The school district cooperated with the investigation, and there were no allegations of sexual exploitation of Vastis’ students.
The investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Victims of sexual exploitation are encouraged to call HSI’s toll-free tip line at (866) 347-2423, or logon to https://www.ice.gov/predator for further information.
The government was represented by Assistant U.S. Attorney Sarah Streicker.
Former Opa Locka City Commissioner Pleads Guilty to Participating in Corruption SchemeRead the Press Release
Former City of Opa Locka Commissioner Luis Santiago pled guilty today, before United States District Judge Kathleen M. Williams, for his participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a). Santiago is scheduled to be sentenced on March 30, 2017 at 10:00 a.m. before Judge Williams.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
“Today in open court, a former City Commissioner admitted that he betrayed the trust placed in him by the people of Opa Locka by abusing his authority to demand and obtain bribes from local individuals and businesses,” stated U.S. Attorney Wifredo Ferrer. “This type of public corruption by an elected official erodes the crucial bond between our public institutions and the communities that they serve. This latest prosecution, arising from the ongoing Opa Locka corruption investigation, again demonstrates the commitment of the U.S. Attorney’s Office and our law enforcement partners to holding accountable those public officials who engage in criminal activity.”
Santiago pled guilty to an Information and admitted to conspiring with former Opa Locka City Manager David Chiverton, former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka.
In exchange for the illegal payments, Santiago would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Santiago would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions.
Chiverton and Harris previously pled guilty. Chiverton was sentenced to 38 months in prison by United States District Judge Cecilia M. Altonaga, while Harris is awaiting sentencing before United States District Judge Beth Bloom.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Kimberly Selmore.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Founder and President of Tampa Start-Up Company Pleads Guilty to Wire FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Timothy Roberts (46, Missouri) has pleaded guilty to wire fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, Roberts was the founder, CEO, and Chairman of the Board of the now-defunct Savtira Corporation, Inc., a technology company that was headquartered in Ybor City. As CEO and Chairman of the Board, Roberts solicited investors for Savtira, had control over the company’s funds, and was responsible for overseeing the sale of its products to potential customers.
Starting in or around November 2010, Roberts and Terrance F. Taylor, Savtira’s CFO, devised and carried out a scheme to defraud and obtain money and property by making false promises and representations. In particular, they distributed and caused to be distributed to investors a draft valuation of the company that indicated Savtira was worth between $450 million and $540 million when, in fact, the company had little, if any, revenues. Roberts also failed to disclose to all investors that he had entered into a prior judgment with the United States Securities and Exchange Commission (SEC) for violating the securities laws of the United States. Roberts and Taylor also made false statements to investors about the use of investor funds, some of which were diverted by the defendants for personal use.
Roberts and Taylor were previously indicted for conspiracy to commit wire fraud and wire fraud. Taylor is currently set for trial in April 2017.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Federal Jury Sentences Dylann Storm Roof to DeathRead the Press Release
Contact Person: Lia Bantavani, [email protected], 704-277-4259
CHARLESTON, S.C. – U.S. Attorney Beth Drake of the District of South Carolina announced today that after three hours of deliberation, a federal jury in Charleston sentenced Dylann Storm Roof, 22, to death. On Dec. 15, 2016, the same jury had convicted Roof of 33 counts of federal hate crimes, obstruction of religious exercise, and firearms charges, for killing and attempting to kill African-American worshipers at Emanuel African Methodist Episcopal (AME) Church, also known as “Mother Emanuel.”
District Judge Richard M. Gergel of the District of South Carolina presided over the trial and will hold the formal sentencing on January 11, 2017, at 9:30 a.m.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division; Special Agent in Charge Alphonso Norris of the FBI’s Columbia Division; Chief Mark Keel of South Carolina’s Law Enforcement Division (SLED); and Chief Gregory G. Mullen of the Charleston Police Department join U.S. Attorney Drake in making today’s announcement.
“Motivated by racist hatred, Dylann Roof murdered and attempted to murder innocent African-American parishioners as they worshiped in the historic Mother Emanuel church,” said U.S. Attorney Drake. “But, contrary to Roof’s desire to sow the seeds of hate, his acts did not tear this community apart. Instead of agitating racial tensions as he had hoped, Roof’s deadly attack inside Mother Emanuel became an attack on all of us, and the community stood in solidarity. Now, following a trial, the jury has rendered a sentence that underscores the severity of his crimes. We here in the U.S. Attorney’s Office and the Department of Justice want to express our condolences to the victims and their loved ones, and to commend the dedication and hard work by the jury, the law enforcement officers that worked the case, the victim advocate team, and the court to ensure a fair and just process.”
“I would like to take this opportunity to highlight the outstanding cooperative effort of our FBI Special Agents and professional support staff; our local and state partners – the Charleston Police Department and the South Carolina Law Enforcement Division; and the United States Attorney’s Office, which began on the horrific night of June 17, 2015,” said Special Agent in Charge Norris. “Their excellent work has brought about, what we hope, is another step toward healing for the families of the victims and the Charleston community.”
Following the guilty verdict, the sentencing phase of the trial began on January 4, 2017. Today, the jury sentenced Roof to death on all eighteen capital counts, including nine counts of obstruction of exercise of religion resulting in death (one count for each victim killed in the attack), and nine counts of use of a firearm to commit murder during and in relation to his hate crimes and obstructions of religious exercise (one count for each of the nine victims).
In making today’s announcement, U.S. Attorney Drake also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshal’s Service; the Charleston County Sheriff’s Office; the Charleston Fire Department; the Shelby Police Department; and the Ninth Circuit Solicitor’s Office for their invaluable assistance over the course of the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Jay Richardson and Nathan Williams of the District of South Carolina, Deputy Chief Richard Burns of the Justice Department’s Capital Case Section and Special Litigation Counsel Stephen Curran and Trial Attorney Mary Hahn of the Justice Department’s Civil Rights Division.
Federal Grand Jury Indicts Man on Federal Drug Trafficking Charges for Attempting to Smuggle Heroin Wrapped in Christmas PaperRead the Press Release
Update:
LOS ANGELES – A Pico-Union resident was indicted today on federal drug trafficking charges for allegedly trying to smuggle at least one kilogram of heroin on a plane leaving Los Angeles International Airport. The heroin was wrapped in Christmas paper and concealed in checked luggage on a flight that was bound for Cincinnati, Ohio. A federal grand jury indicted James Mitchell on one count of possession with intent to distribute heroin.
While the indictment alleges more than one kilogram of heroin, authorities recovered approximately six kilograms of heroin from Mitchell’s luggage. The narcotics would have a street value of approximately $2.1 million in Ohio.
At the time of the narcotics seizure, Mitchell was an employee of Aero Port Services at LAX and had direct access to secure areas of the airport.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If he is convicted of the drug trafficking charge, Mitchell would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life.
Mitchell is scheduled to be arraigned on the indictment in United States District Court on January 18.
Original Release (Dec. 22, 2016):
Los Angeles Man Arrested on Federal Charges of Attempting to Smuggle Heroin Wrapped in Christmas Paper through LAX
LOS ANGELES – A Los Angeles man facing federal drug trafficking charges for allegedly trying to smuggle at least a kilogram of heroin on a plane leaving Los Angeles International Airport is scheduled to make his first court appearance this afternoon.
James Mitchell, 25, who resides in Pico-Union, was arrested yesterday by special agents with the Drug Enforcement Administration after prosecutors on Tuesday filed a criminal complaint in United States District Court.
The complaint specifically alleges that Mitchell attempted to smuggle approximately 2.15 pounds of heroin through a security checkpoint at LAX on December 10. At that date, Mitchell had checked in for a Frontier Airlines flight to Cincinnati, Ohio, only two days after purchasing a one-way ticket. Mitchell checked one article of luggage that “alerted to an unknown dense material” during an “image scan” by the Transportation Security Administration. An inspection of the bag revealed “six packages of a suspicious gray brittle concrete-like substance,” one of which later tested positive for heroin. The packages were wrapped in Christmas-themed paper.
TSA officials noted a “vinegar odor” emanating from one of the packages, which prompted Los Angeles World Airport (LAWA) police officers to seek assistance from a Hazardous Materials Unit. A portion of Terminal 3 was closed while personnel worked to detect and alleviate any potential chemical threat.
LAWA Police responding to the scene worked with Frontier Airlines in an attempt to locate Mitchell. When he answered a phone call from Frontier personnel, Mitchell told the gate agent he was in the restroom and not feeling well. At about this same time, airport surveillance cameras captured Mitchell exiting the terminal while speaking on a cell phone. Once outside, Mitchell removed a beanie cap from his head and changed his sweater, disappearing on foot in the lower terminal arrival area.
Investigators ultimately tracked Mitchell down at his Pico-Union residence, obtained an arrest warrant, and took him into custody without incident yesterday morning. After his arrest, investigators confirmed Mitchell is an employee of Aero Port Services at LAX and has direct access to secure areas of the airport.
“At a time when airlines are carrying loved ones across the country and the world, this defendant jeopardized passenger safety by attempting to use the system to traffic in dangerous drugs,” said United States Attorney Eileen M. Decker. “Interdicting drug shipments is part of the mission to protect our critical infrastructure, and criminals seeking to abuse that infrastructure will be punished.”
At this point, Mitchell is charged in relation to only one of the six packages recovered from his luggage. Authorities are in the process of testing the other five packages to confirm the presence of heroin. The total weight of all six packages was approximately 6.5 kilograms, which is more than 14 pounds.
The complaint charges Mitchell with conspiracy to possess with the intent to distribute heroin, and possession with the intent to distribute heroin. If he were to be convicted of those two counts, he would face a mandatory minimum term of five years in federal prison, and a statutory maximum sentence of 40 years.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting this investigation. The Task Force is charged with providing a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States, and throughout the world.
“Criminal organizations recruiting individuals with special access to commercial aircraft pose a serious threat to commercial aviation,” said DEA Special Agent in Charge Steve Comer. “Accordingly, we’re working with our law enforcement partners to mitigate this threat and aggressively prosecute individuals that could potentially exploit such access.”
In addition to the Drug Enforcement Administration, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The case against Mitchell is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Fairview Park man indicted for making threats against the President-ElectRead the Press Release
A grand jury returned an indictment charging Zachary Benson, 25, of Fairview Park, with one count of making threats against the President-Elect, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The indictment alleges that Benson threatened to take the life of, and inflict bodily harm to, the President-Elect of the United States, on November 9, 2016.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to his case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Karrie D. Howard, and was investigated by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
East Durham Man Sentenced to 72 Months on Child Pornography ConvictionsRead the Press Release
ALBANY, NEW YORK – Gregory Kurzajczyk, age 69, of East Durham, New York, was sentenced today to 72 months in prison for distributing and receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also ordered Kurzajczyk to serve a lifetime term of supervised release, to begin after his release from prison. Kurzajczyk will also have to register as a sex offender upon his release from prison.
As part of his guilty plea on September 2, 2016, Kurzajczyk admitted that between July 16, 2014 and January 19, 2015, he distributed child pornography images and videos through an Internet file-sharing application. Kurzajczyk also admitted to using the file-sharing application to download child pornography.
This case was investigated by Homeland Security Investigations (HSI) and the Colonie Police Department, with the assistance of the U.S. Secret Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Jose Ignacio Goris, 42, of Providence, convicted at trial for trafficking cocaine, has been sentenced to 60 months in federal prison. A federal court jury in Providence convicted Jose Ignacio Goris on January 14, 2016, of attempting to possess with the intent to distribute 500 grams or more of cocaine.
Goris was arrested on August 14, 2014, moments after he took custody of what he believed to be a kilogram of cocaine supplied to him at his request by a person he believed to be a drug trafficker. The purported drug trafficker was a DEA Task Force agent. The package was made to appear as if it contained a kilo of cocaine.
Goris’ sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to the government’s evidence presented at trial, beginning in early May 2014, Goris and two undercover drug task force agents, who posed as large-scale cocaine suppliers, engaged in a series of electronically recorded telephone conversations and meetings. Goris repeatedly represented to the agents that he had previously engaged in distributing large quantities of cocaine and that he was anxious to return to “work” trafficking cocaine.
On the afternoon of August 14, 2014, Goris and one of the agents met in a mall parking lot in Warwick, at which time Goris was shown what he believed to be two kilos of cocaine. The look-alike cocaine packages were hidden inside a secret compartment of the undercover agent’s vehicle. After examining the packages, Goris told the agent that he was leaving to get funds to purchase a kilo of the cocaine.
Later that day, Goris and the agent met inside a Cranston retail store and negotiated terms for the sale of the kilo of cocaine. After they reached agreement, the agent directed Goris to a vehicle in the store parking lot which he told Goris contained a bag with a kilo of cocaine. Goris was arrested by members of the Drug Task Force moments after he retrieved and took possession of the bag from the vehicle. Inside the bag was a package made to appear as if it was a kilo of cocaine.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police, and Central Falls, Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
Detroit-Area Neurosurgeon Sentenced to 235 Months in Prison for Role in $2.8 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area neurosurgeon was sentenced today to 235 months in prison for his role in $2.8 million health care fraud scheme in which he caused serious bodily harm to patients by performing unnecessary invasive spinal surgeries.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Service Office of Inspector General (HHS-OIG) Chicago Region, Special Agent in Charge Glenn R. Ferry of the HHS-OIG Los Angeles Region and Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Detroit Field Office made the announcement.
Aria O. Sabit M.D., 43, of Birmingham, Michigan, pleaded guilty to four counts of health care fraud, one count of conspiracy to commit health care fraud and one count of unlawful distribution of a controlled substance, resulting in losses to Medicare, Medicaid and various private insurance companies.
Sabit was a licensed neurosurgeon who owned and operated the Michigan Brain and Spine Physicians Group, which had various locations in the Eastern District of Michigan. In connection with his guilty plea, Sabit admitted that he derived significant profits by convincing patients to undergo spinal fusion surgeries with “instrumentation” (medical devices designed to stabilize and strengthen the spine) that he never performed and billed public and private healthcare benefit programs for those fraudulent services. Sabit further admitted that, in some instances, he operated on patients and dictated in his operative reports – which he knew would later be used to support fraudulent insurance claims – that he had performed spinal fusion with instrumentation, when he had not. Specifically, Sabit fraudulently billed public and private health care programs for instrumentation when, in fact, he used cortical bone dowels made of tissue. Sabit failed to render services in relation to lumbar and thoracic fusion surgeries, including in certain instances, billing for implants that were not provided.
Before moving to moving to Michigan, Sabit was a resident of Ventura, California, and a licensed neurosurgeon in California. Sabit admitted that, in approximately February 2010, while he was on the staff of a California hospital, he became involved with Apex Medical Technologies LLC (Apex), which was owned by another neurosurgeon and three non-physicians. In exchange for the opportunity to invest in Apex and share in its profits, Sabit agreed to convince his hospital to buy spinal implant devices from Apex and to use a substantial number Apex spinal implant devices in his surgical procedures. Sabit further admitted that he and Apex’s co-owners concealed Sabit’s involvement in Apex from the hospitals and surgical centers.
In connection with his guilty plea, Sabit admitted that the financial incentives provided to him by Apex and his co-conspirators caused him to use more spinal implant devices than were medically necessary to treat his patients in order to generate more sales revenue for Apex, which resulted in serious bodily injury to his patients. Sabit also admitted that, on a few occasions, the money he made from using Apex spinal implant devices motivated him either to refer patients for unnecessary spine surgeries or for more complex procedures that they did not need.
The FBI, HHS-OIG and ICE investigated the Michigan case. The FBI and HHS-OIG investigated the California case, which was subsequently transferred to the Eastern District of Michigan. The California case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. Trial Attorney Catherine K. Dick, formerly of the Criminal Division’s Fraud Section, is prosecuting the California case. Assistant U.S. Attorneys Regina R. McCullough and Philip A. Ross of the Eastern District of Michigan are prosecuting the Michigan case.
Sabit also is a defendant in two civil False Claims Act cases brought by the Justice Department in the Central District of California. These cases remain pending.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 3,000 defendants who collectively have billed the Medicare program for over $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jorge Ceballos-Ponce, 54, of Blair County, Pa.
According to the indictment presented to the court, on Nov. 16, 2016 Ceballos-Ponce, an alien who had been deported from the United States on Apr. 24, 2007, was found in Blair County, Pa. He had unlawfully reentered this Country without receiving permission to do so from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of twenty years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Denver Man Sentenced to Ten Years Imprisonment for Firing Gun in Parking Lot During Attempted CarjackingRead the Press Release
DENVER – Jeremy Lee Cabral, age 22, of Denver, Colorado, was sentenced today by U.S. District Judge R. Brooke Jackson to serve 120 months (10 years) in federal prison for discharging a firearm during a crime of violence, announced Acting U.S. Attorney Bob Troyer and FBI Special Agent in Charge Calvin Shivers announced. Following his prison sentence, Judge Jackson ordered the defendant to serve five years on supervised release. The defendant, in custody since his arrest on February 3, 2016, was remanded.
Cabral was initially charged in a criminal complaint on February 26, 2016 with one count of carjacking and one count of using a firearm. A federal grand jury charged him with two counts of carjacking and one count of using a firearm in an indictment returned on June 21, 2016.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, the defendant’s day of crime began when he crashed the car he was driving in Westminster on the morning of February 3, 2016. After fleeing from the scene of that accident, the defendant stole a car at gunpoint from a victim in the parking lot of a bookstore. The defendant used the stolen car until he got it got it stuck in a snowbank while trying to drive the wrong way into a carwash. He then strolled into a nearby video game store, retrieved his gun from an accomplice, and walked into the parking lot of a nearby grocery store. There, he showed his gun to a victim standing next to a car and demanded the keys. When the victim refused, explaining that a dog was in the car, the defendant repeated his demand and, when the victim ran away, fired his gun. The defendant and his accomplice fled into a residential neighborhood and were arrested while ringing the doorbell of a residence.
The accomplice, who pleaded guilty to aiding and abetting a carjacking, was sentenced in November 2016 to 40 months’ imprisonment and a term of supervised release.
The case was investigated by the FBI, the Rocky Mountain Safe Streets Task Force, and the City of Westminster Police Department.
The defendant is being prosecuted by Assistant United States Attorney Bryan D. Fields.
DeLand Man Sentenced to Six Years for Possessing Ethylone with Intent to DistributeRead the Press Release
Orlando, FL – U.S. District Judge Gregory A. Presnell today sentenced Jason Eric Phifer (33, DeLand) to six years in federal prison for possession with intent to distribute ethylone, commonly marketed as the street drug “Molly.” A federal jury found him guilty on September 14, 2016.
According to court documents, between January and May 2015, Phifer ordered four shipments of ethylone, totaling approximately 5.25 kilograms, from a supplier in China. In May 2015, agents discovered a shipment of 1.5 kilograms of ethylone that was destined for Phifer’s residence. On May 20, 2015, undercover agents made a controlled delivery of the ethylone to Phifer at his home. Immediately after the delivery, they executed a search warrant at the home and recovered the 1.5 kilograms of ethylone, and they also found additional quantities in Phifer’s bedroom. Phifer admitted to agents that he had received the ethylone so he could distribute it to customers throughout the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and Sean P. Shecter.
Dayton Men Plead Guilty to Dealing Heroin, Fentanyl that Resulted in User DeathsRead the Press Release
DAYTON – Antonio J. Spiva, 25, of Dayton, pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl that resulted in the death of at least two individuals. A co-defendant, Charles M. McBeath, 33, of Dayton, had pleaded guilty to the same last week.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Montgomery County Sheriff Phil Plummer, Dayton Police Chief Richard Biehl and other members of the Heroin Eradication Apprehension Team (HEAT) announced the plea that was entered into yesterday before U.S. District Judge Thomas M. Rose.
Both men were originally indicted by a federal grand jury in December 2015 and have remained in custody since. According to court documents, through late May 2015, McBeath and Spiva distributed heroin, fentanyl and crack cocaine while maintaining operations at residences located on E. Fifth Street, S. Torrence Street and S. Horton Street, all in Dayton. Their distribution of fentanyl resulted in the overdose death of two individuals and the non-fatal overdose of at least three others.
As part of Spiva’s plea agreement, all parties involved are recommending a sentence of 12 to 18 years in prison to the court. Likewise, the plea agreement for McBeath includes a recommended sentence of 10 to 18 years in prison. Those recommendations will be considered by a U.S. District Judge at sentencing hearings in April.
The HEAT initiative was announced in May 2015 and includes the U.S. Attorney’s Office, DEA, Dayton Police Department, Montgomery County Sheriff’s Office, Montgomery County Coroner’s Office, and the Miami Valley Regional Crime Laboratory. The intent of the task force is to prosecute heroin and fentanyl suppliers who contribute to both fatal and non-fatal overdoses in Montgomery County.
U.S. Attorney Glassman commended the investigation of this case by HEAT, and Assistant U.S. Attorneys Sheila G. Lafferty and Dominick S. Gerace, who are prosecuting the case.
Customs and Border Protection Officer Pleads Guilty to Bribery and Smuggling Aliens for Financial GainRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Lara A. Stingley (619)546-8403 or Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951
NEWS RELEASE SUMMARY – January 10, 2017
SAN DIEGO – U.S. Customs and Border Protection Officer Jose Luis Cota pleaded guilty in federal court today to bribery and alien smuggling, admitting that he accepted cash and sexual favors from smugglers in exchange for permitting them to bring undocumented aliens into the United States without inspection through Cota’s lane at the San Ysidro Port of Entry.
Miriam Juarez-Herrera and Gilberto Aguilar-Martinez, the two Mexican nationals working with Cota to commit these crimes, pleaded guilty last week.
Cota, a 15-year veteran with Customs and Border Protection, was arrested in September 2016 following an alien smuggling event with co-defendants Juarez-Herrera and Aguilar-Martinez. According to court documents, Cota confessed to his crimes at the time of his arrest.
The arrests of Cota, Juarez-Herrera and Aguilar-Martinez occurred after a lengthy investigation conducted by the Border Corruption Task Force (“BCTF”), which is composed of agents and officers working at the Federal Bureau of Investigation, Customs and Border Protection – Office of Professional Responsibility, Customs and Border Protection – Field Operations, and U.S. Border Patrol.
According to his plea agreement, Cota pleaded guilty to four separate crimes – three counts of bringing in unlawful aliens for financial gain and one count of bribery of a public official. In his agreement, Cota admitted that from at least November 2015 through September 2016, he conspired with Juarez-Herrera to smuggle and transport unlawful aliens from Mexico into the United States for financial gain – charging as much as $15,000 per person.
Cota and Juarez-Herrera had an agreement that as part of the criminal enterprise, Juarez-Herrera would locate and recruit undocumented aliens in Mexico who wanted to be smuggled into the United States. These undocumented aliens would then be smuggled through Cota’s vehicle primary lane at the San Ysidro, California Port of Entry.
Cota also agreed with Juarez-Herrera to obtain the highest smuggling fee from the undocumented aliens and to obtain fraudulent entry documents for the smuggling enterprise. Finally, Cota received bribes from Juarez-Herrera in the form of cash and sexual favors in exchange for permitting Juarez-Herrera and the undocumented aliens whom she smuggled to enter the United States without inspection through Cota’s primary vehicle inspection lane at the San Ysidro Port of Entry. Between November 2015 and September 2016, Cota admitted that he allowed Juarez-Herrera to successfully smuggle at least ten undocumented aliens from Mexico into the United States.
After Juarez-Herrera successfully crossed the undocumented aliens into the United States, Cota received his bribes, according to court documents. Following one event, Cota admitted to receiving $13,000 in cash for allowing two undocumented aliens to illegally enter the United States through his inspection lane. Cota agreed that the government could prove that he deposited more than $44,000 in cash bribes into his bank accounts at the time he was under investigation. In addition, federal agents seized more than $17,000 in cash bribes from Cota’s residence following a lawfully executed search warrant in September 2016. Pursuant to the terms of his plea agreement, all of this cash will be forfeited to the United States.
Acting United States Attorney Alana W. Robinson said, “This officer violated the public’s trust for his own personal benefit and financial gain, while risking our nation’s safety and security. Combatting this type of border corruption will remain one of our office’s highest priorities.” She also thanked the agents and officers working on the BCTF whose tireless work both uncovered this corruption and resulted in removing this corrupt official from our border security.
“The vast majority of CBP officers are highly skilled, hard-working professionals dedicated to our mission to protect the American public and we do not stand for those that would tarnish our badge,” said Pete Flores, Director of Field Operations in San Diego. “As in all corruption cases, we worked diligently alongside our law enforcement partners and I’m appreciative of the collaborative effort to bring Cota to justice.”
“This investigation was a collaborative effort among a number of federal law enforcement agencies and demonstrates our commitment to investigate DHS employees who choose to violate the core values they swore to uphold,” said Kathryn Butterfield, Special Agent in Charge for U.S. Customs and Border Protection, Office of Professional Responsibility, in San Diego. “Every CBP employee shares responsibility for promoting integrity and for meeting mission demands while sustaining the trust and confidence of the public we serve. An overwhelming majority of CBP employees do so on a daily basis by performing their duties with honor and distinction. However, like any preeminent law enforcement agency, we must be committed to identifying those who do not adhere to the highest standards of conduct. It’s a matter of personal and professional pride. DHS, Customs and Border Protection, Office of Professional Responsibility, will not tolerate those who tarnish the badge and the agency’s reputation.”
“Public corruption, which includes border corruption, is the number one criminal priority for the FBI because of the potential harm that actions, like Officer Cota’s actions, can have on our nation’s security,” commented FBI Special Agent in Charge Eric S. Birnbaum. “With this important mission, the San Diego Border Corruption Task Force will continue working with our law enforcement partners and combine our agencies’ resources to root out these corrupt actors.”
The San Diego FBI and the Border Corruption Task Force encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
A sentencing hearing for Cota has been scheduled for April 7, 2017 at 9:00 a.m. before U.S. District Judge Jeffrey T. Miller. Cota is currently out of custody on bond. Cota submitted a resignation letter to U.S. Customs and Border Protection effective today.
DEFENDANTS Criminal Case No. 16CR2280-JM
Jose Luis Cota Age: 50
SUMMARY OF CHARGES:
Counts 1-3 – Bringing in Unlawful Aliens for Financial Gain (8 U.S.C. § 1324(a)(2)(B)(ii))
Maximum Penalties: mandatory minimum of 3 years in prison for two or less aliens; mandatory minimum of 5 years in prison for three or more aliens; maximum sentence of 10 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
Count 5 – Receiving Bribe by Public Official (18 U.S.C. § 201)
Maximum Penalties: maximum sentence of 15 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
INVESTIGATING AGENCIES
The Border Corruption Task Force (BCTF) is composed of the Federal Bureau of Investigation, Customs and Border Protection – Office of Professional Responsibility, Customs and Border Protection – Field Operations, U.S. Border Patrol, Transportation Security Administration and Drug Enforcement Administration
Cockeysville Man Facing Federal Charges for Production and Distribution of Child Pornography in Sextortion CaseRead the Press Release
Baltimore, Maryland – Kevin Graham Conlon, age 30, of Cockeysville, Maryland, is facing federal charges for production of child pornography; and for receipt and distribution of child pornography, conspiracy to receive and distribute, and attempting to receive and distribute child pornography. The court documents allege that Conlon posed as an 18-year-old woman to obtain photos and videos of a minor victim engaged in sexually explicit conduct, then sent those photos and videos to others when the victim stopped sending photos and blocked his account.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the affidavit and exhibits filed in support of the criminal complaint, on August 8, 2016, the FBI received a complaint from the mother of a 16-year-old minor female concerning the minor’s online relationship with the Facebook user “xxx W” (W), described as an 18-year-old blond female. The complaint alleges that W is believed to be Conlon. According to the court documents, W and the victim frequently communicated over Facebook messenger. Over time, Conlon, posing as W, convinced the victim to take a nude pictures of herself and send them to W, assuring the victim that the photos were immediately deleted after being viewed.
After the victim blocked W on Facebook, Conlon allegedly opened several Facebook profiles in the victim’s name, and without her permission. These unauthorized accounts “friended” many of the victim’s friends and sent them the sexually explicit photos of the victim that were originally sent to W.
On January 6, 2017, search warrants were executed at Conlon’s home, on his vehicle and on his person. According to the affidavit, Investigators located Conlon’s cellular phone in his bedroom and images of the victim were found in the photo gallery on the phone, as well as in a Dropbox account associated with Conlon’s email address.
If convicted, Conlon faces a mandatory minimum sentence of 15 years and up to 30 years in prison for production of child pornography; and a mandatory minimum sentence of five years and up to 20 years in prison for receipt and distribution of child pornography. An initial appearance was held on January 9, 2017, in U.S. District Court in Baltimore. Conlon was ordered to be detained pending a detention hearing scheduled for Thursday, January 12, 2017, at 10:00 a.m. before U.S. Magistrate Judge Mark J. Coulson.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Cleveland Heights woman indicted for cocaine conspiracyRead the Press Release
A Cleveland Heights woman was indicted on cocaine trafficking charges, said U.S. Attorney Carole S. Rendon.
Rayvonna Taylor, 28, was indicted on one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine. This took place between August 2015 and May 2016, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the U.S. Postal Inspection Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Charged with Attempted Murder of U.S. Diplomat in MexicoRead the Press Release
ALEXANDRIA, Va. – Zia Zafar, 31, of Chino Hills, California, made his initial appearance here today after being charged with the attempted murder of a diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.
According to the criminal complaint, on January 6, Zafar disguised himself and followed a Vice Consul of the U.S. Consulate in Guadalajara through a parking garage to his vehicle. After the Vice Consul got into his car and drove towards the garage exit, Zafar allegedly shot him once in the chest and fled. The Vice Consul was taken to a local hospital, where he currently remains. Zafar was subsequently detained by Mexican authorities.
Zafar was deported from Mexico yesterday afternoon and arrived in the United States last night. He was immediately arrested and charged with attempted murder of an internationally protected person. Zafar faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Department of Justice gratefully acknowledges the government of Mexico, to include the Secretaría de Relaciones Exteriores, Procuraduria General de la Republica, Fiscalia del Estado de Jalisco and Instituto Nacional de Migracion for their extraordinary efforts, support and professionalism in responding to this incident.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office; and Bill A. Miller, Director of the U.S. Department of State’s Diplomatic Security Service (DSS), made the announcement after Zafar’s initial appearance before U.S. Magistrate Judge John F. Anderson. The case is being prosecuted by Assistant U.S. Attorney William M. Sloan, and Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section.
The FBI and DSS are investigating the case in close cooperation with Mexican authorities and with assistance from the Justice Department’s Office of International Affairs, DEA and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-mj-11.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Brea Man Who Operated Physical Therapy Clinics Sentenced to over 10 Years in Federal Prison in $3 Million Medicare Fraud SchemeRead the Press Release
SANTA ANA, California – A Brea man who operated rehabilitation clinics in Walnut, Torrance and Los Angeles and defrauded Medicare out of approximately $3 million by billing for unneeded or unnecessary services has been sentenced to 121 months in federal prison.
Simon Hong (who is also known as Seong Wook Hong), 55, was sentenced yesterday afternoon by United States District Judge David O. Carter. At the conclusion of the sentencing hearing, Judge Carter ordered Hong remanded into custody.
Hong was found guilty in October of eight counts of healthcare fraud, nine counts of illegal kickbacks related to healthcare referrals and two counts of aggravated identity theft.
Hong owned physical therapy clinics operated by companies called Hong’s Medical Management, Inc., CMH Practice Solution, and HK Practice and Solution, Inc. As part of the scheme, Hong recruited Medicare beneficiaries and provided uncovered services like massage and acupuncture for them. Even though the beneficiaries did not receive actual physical therapy, Hong’s co-conspirators billed Medicare for physical therapy, and then funneled 56 percent of the reimbursement funds back to Hong.
Through this scheme Hong and his co-conspirators billed Medicare from the spring of 2009 until November 2013 and received approximately $2,929,775 in reimbursements, of which Hong received approximately $1,640,674. During today’s sentencing hearing, Judge Carter ordered Hong to pay $2,929,775 in restitution.
“This defendant stole nearly $3 million in federal money earmarked for those with serious medical needs,” said United States Attorney Eileen M. Decker. “This lengthy sentence accurately reflects the scope of the harm caused by the defendant to American taxpayers and legitimate Medicare beneficiaries. My office will continue to bring prosecutions against criminals causing harm to federal programs.”
Hong is one of 10 defendants who were charged in 2015 and early 2016 for healthcare fraud related to physical therapy. Eight others have pled guilty, and one, David Y. Kim, 54, of Los Angeles, remains a fugitive. Those previously convicted in the investigation are:
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Joseff Sales, 39, of Buena Park, a co-owner and operator of Rehab Dynamics, who pleaded guilty to one count of healthcare fraud and one count of illegal kickbacks, and was sentenced last year to 51 months in prison;
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Danniel Goyena, 39, of Buena Park, a co-owner and operator of Rehab Dynamics, who pleaded guilty to two counts of healthcare fraud and was sentenced last year to 51 months in prison;
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Marlon Sonco, 39, of Sylmar, who pleaded guilty in June 2015 to conspiracy and is scheduled to be sentenced on January 23;
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Eddieson Legaspi, 40, of Lomita, an employee of Rehab Dynamics, pleaded guilty to conspiracy to commit healthcare fraud and also was sentenced yesterday to 15 months;
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Ohun Kwon, 50, of Fullerton, the owner/operator of E.K. Medical Management, which referred patients to Rehab Dynamics, pleaded guilty to conspiracy to commit healthcare fraud and was sentenced last year to 27 months in federal prison;
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Leovigildo Sayat, 39, of Torrance, an employee of RSG Rehab, pleaded guilty to conspiracy to commit health care fraud and was sentenced last year to two years in prison;
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Byong Chun “David” Min, 68, of Irvine, co-owner/operator of Glory Rehab Team, which operated as Dream Hospital in Orange County, who pleaded guilty to healthcare fraud and illegal kickbacks, also was sentenced yesterday to 45 months in prison; and
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Jason S. Min, 35, of Irvine, David Min’s son, who was the other owner/operator of Glory Rehab, pleaded guilty last year to obstruction of justice and is scheduled to be sentenced on February 6.
“Mr. Hong and his co-defendants spent years defrauding the Medicare system at the expense of taxpayers and legitimate healthcare recipients,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Agents and prosecutors worked very diligently on this case to identify and charge multiple defendants in order to hold them responsible for their actions.”
“Medicare provides legitimate health care services for millions of older Americans,” said Christian J. Schrank, HHS OIG Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Fraudulently billing the program for therapies never provided will cost Mr. Hong years in prison. As this sentencing shows, not just providers, but business owners who are partners in these schemes, will pay a price. Together with our law enforcement partners, we will pursue all those involved in stealing from the Medicare trust fund.”
In a separate case, Hong pleaded guilty last month to conspiracy to commit health care fraud in another scheme involving occupational and physical therapy services that were never provided to Medicare beneficiaries. Medicare suffered losses of approximately $2.4 million in relation to this scheme. Hong is scheduled to be sentenced in this case in Los Angeles federal court by United States District Judge George Wu on March 6.
“For almost six years since May 2009, [Hong] participated in or orchestrated schemes to defraud Medicare that led to at least $5.3 million in actual losses to Medicare and potentially over $20 million in intended losses to Medicare, a program that can hardly afford them,” prosecutors wrote in a sentencing memorandum filed in relation to today’s sentencing. “He directed numerous others in executing the schemes, perverting the legitimate physical therapy services process at every turn, from patient enrollment to billing to record keeping.”
The investigation in these cases was conducted by the FBI and HHS-OIG. The prosecutions are being handled by Assistant United States Attorneys Byron J. McLain and Sarah Heidel of the Major Frauds Section.
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Beaver County Residents Charged in Heroin and Fentanyl Trafficking SchemeRead the Press Release
PITTSBURGH – Six Beaver County residents have been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named:
- Samuel McCracken, 28, of New Brighton, Pennsylvania;
- Wayne McCracken, 31, of Ambridge, Pennsylvania;
- Jeffrey Rogers, 34, of Ambridge, Pennsylvania;
- Dorothy McCracken, 58, of Ambridge, Pennsylvania;
- Breanna Perdue, 23, of New Brighton, Pennsylvania; and
- Jazmine Sellers, 27, of Ambridge, Pennsylvania, as defendants.
According to the indictment, from in and around July 2016, and continuing thereafter to in and around December 2016, the defendants conspired with each other, and others both known and unknown, to distribute and possess with intent to distribute heroin and fentanyl.
For Samuel and Wayne McCracken, the law provides for a minimum sentence of a term of imprisonment of ten (10) years, and a maximum total sentence of a term of imprisonment for life and a fine not to exceed $10,000,000, or both. For Jeffrey Rogers, the law provides for a minimum sentence of a term of imprisonment of five (5) years, and a maximum total sentence of a term of imprisonment of not more than forty (40) years and a fine not to exceed $5,000,000, or both. For the remaining defendants, the law provides for a maximum total sentence of a term of imprisonment of not more than twenty (20) years, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Conor Lamb and Katherine A. King are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Pennsylvania Office of the Attorney General, Ambridge Police Department, New Brighton Police Department, Beaver Police Department, Aliquippa Police Department, Moon Township Police Department, Wilkinsburg Police Department, West Mifflin Police Department, Allegheny County Police Department, Duquesne Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Amherst Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daryl Vandermark, 45, of Amherst, NY, who was convicted of conspiracy to import into the United States Alpha-PVP, was sentenced to 12 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that in July of 2015, Vandermark conspired with co-defendant Judi Strong to import Alpha-PVP into the United States from China. Vandermark and Strong ordered the substance online and had it shipped in two FedEx Express Mail packages to Strong’s residence in Amherst. Federal law enforcement officers intercepted the packages and performed a controlled delivery to Strong at her residence where she accepted delivery of the two packages. The two packages contained approximately 178 grams of Alpha-PVP.
Strong was also convicted and sentenced to 12 months in prison.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Alaska Woman Pleads Guilty in New Mexico to Federal Narcotics Trafficking ChargeRead the Press Release
ALBUQUERQUE – Katrina Tiana Brown, 33, of Anchorage, Alaska, pled guilty today in federal court in Albuquerque, N.M., to a federal narcotics trafficking charge. Under the terms of her plea agreement, Brown will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
Brown was arrested in Dec. 2015, and charged by indictment with possession of phencyclidine (PCP) with intent to distribute on Feb. 8, 2013, in Bernalillo County, N.M.
During today’s proceedings, Brown pled guilty to a felony information charging her with possession of PCP with intent to distribute. In entering the guilty plea, Brown admitted that on Feb. 8, 2013, she possessed more than 100 grams of PCP while at the Greyhound Bus Station in Albuquerque. Brown acknowledged that she intended to distribute the PCP to others.
Brown remains in custody pending her sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
ADA Settlement Agreement Entered Between U.S. Attorney's Office and Two Local RestaurantsRead the Press Release
Kenyen R. Brown, United States Attorney for the Southern District of Alabama, announces the resolution of complaints against two local restaurants made by persons with disabilities who could not access the facilities. The United States Attorney’s Office recently entered into Settlement Agreements under the Americans with Disabilities Act with the owners and operators of Islanders Restaurant and Bar in Dauphin Island, Alabama, and Gambino’s Italian Grill in Fairhope, Alabama.
The United States Attorney’s Office, through its Civil Rights Enforcement Unit, opened its investigations in these matters after receiving complaints that people with mobility disabilities were unable to access the restaurants.
As a result of the settlements, Islanders Restaurant – which is elevated on stilts - has installed a lift to allow persons with mobility disabilities to enter the restaurant, added accessible parking and added an accessible unisex bathroom.
Gambino’s now has a new, unisex accessible bathroom and accessible parking. Accessible routes have been provided throughout the restaurant, including to the Bayview Dining Room and the courtyard. Accessible tables have been installed in the bar and courtyard.
The owners and operators also adopted policies which require providing dining assistance to persons who are deaf, hard of hearing, blind and deaf-blind, blind, and people with mobility disabilities. Service dog policies were adopted. Staff training is also required by the Settlement Agreements.
Mr. Brown states: “When notified of the federal investigation, the owners of Islander’s and Gambino’s chose to work collaboratively with our office to remedy the ADA violations by removing the barriers which prevented persons with disabilities from enjoying their restaurants. Not only is this required by law, but it’s also great for business. We commend these restauranteurs for their decisions and their wise investment. They have shown they are good corporate neighbors. With more than 55 million persons with disabilities in our country, the restaurants have the potential for much more business as well.”
These matters were handled for the United States Attorney’s Office by Assistant United States Attorney Holly L. Wiseman.
For more information, visit www.ada.gov or our office’s website at http://www.justice.gov/usao/als/civil/cre.html.” Any person with a disability who believes they have been discriminated against in the Southern District of Alabama may contact our office at 63 South Royal Street, Suite 600, Mobile, AL 36602, telephone us at 251.441.5845 or file a complaint with the U. S. Department of Justice, 950 Pennsylvania Avenue, NW, Civil Rights Division, Disability Rights Section, Washington, DC 20530.
9 January 2017
Williamsville Doctor Pleads Guilty to Prescription Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Yusuf Siddiqui, 72, of Williamsville, NY, pleaded guilty to obtaining controlled substances by fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that on October 13, 2016, the defendant, a physician licensed to practice medicine in the State of New York, wrote prescriptions for hydrocodone, a Schedule II controlled substance, and clonazepam, a Schedule IV controlled substance, to a patient that he had not examined. Siddiqui wrote the prescriptions with the expectation that he would receive a portion of the prescribed medication for his personal use. The defendant wrote the prescriptions at the request of the patient’s daughter whom Siddiqui knew was addicted to pain medication. The patient’s daughter was also a former employee of the defendant.
On October 13, 2016, Siddiqui picked the patient’s daughter up from her residence and gave her seven hydrocodone and seven clonazepam pills. Later that same day, the defendant drove the patient’s daughter to a pharmacy where she had the prescriptions filled. When the patient’s daughter returned to the car, Siddiqui asked her to return the hydrocodone pills that he had given her earlier in the day. The patient’s daughter asked the defendant if he wanted more pills and he responded, “Yes” and took 30 hydrocodone pills.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for April 24, 2017, at 10:00 a.m. before Judge Vilardo.
Volkswagen Executive Charged for Alleged Role in Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Oliver Schmidt, a Volkswagen (VW) engineer, was charged in a criminal complaint unsealed today for his alleged role in a nearly decade-long conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Assistant Attorney General John C. Cruden of the Environment and Natural Resources Division and U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan made the announcement.
Schmidt, 48, a resident of Germany, was charged with one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act. Schmidt was arrested on Jan. 7, 2017, in Miami and will make an initial appearance today, Jan. 9, 2017, at 2:00 p.m. EST before U.S. Magistrate Judge William C. Turnoff of the Southern District of Florida.
According to the complaint, Schmidt joined VW in or about 1997, and from 2012 to March 2015 was general manager for VW in Auburn Hills, Michigan, where he was primarily responsible for communicating and coordinating with U.S. regulatory agencies, including the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). In March 2015, Schmidt was promoted to principal deputy of a senior manager of VW and returned to VW headquarters in Wolfsburg, Germany, where he played a direct role in VW’s response to questions from U.S. regulators.
In about 2006, VW employees based in Germany in the engine development department started to design a new “EA 189” 2.0-liter diesel engine for sale in the United States. When employees realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they allegedly designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (the defeat device) in order to cheat the emissions tests.
As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the complaint affidavit. By the summer of 2015, U.S. regulators had discovered that VW diesel vehicles emitted substantially higher emissions when being driven on the road than when undergoing standard U.S. emissions tests and had repeatedly asked VW for an explanation of this discrepancy. The complaint alleges that Schmidt knew that the reason for this discrepancy was VW’s use of defeat device software. Nevertheless, in the summer of 2015, Schmidt allegedly agreed to travel to the United States to participate in direct conversations with U.S. regulators. According to the complaint, during in-person and teleconference meetings with U.S. regulators, Schmidt hid the existence of the defeat device from the U.S. regulators.
A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.
FBI’s Detroit Office and the EPA-Criminal Investigation Division are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney David Fuhr of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resource Division’s Environmental Crimes Section and White Collar Crime Unit Chief John K. Neal of the Eastern District of Michigan are prosecuting the case.
Schmidt ComplaintVermont Man Sentenced to 7 Months in Jail and 3 Years of Supervised Release for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on January 9, 2017, Christopher Calderon-Melendez, 31, of Essex Junction, Vermont, was sentenced to a prison sentence of time served. Calderon-Melendez had served approximately 7 months in jail awaiting disposition of his case. U.S. District Court Judge William K. Sessions III also ordered that Calderon-Melendez serve three years of supervised release after his prison term.
According to court records, between October and December of 2015, law enforcement conducted four controlled purchases of heroin from Calderon-Melendez at various locations in Chittenden County. Calderon-Melendez pled guilty to an indictment charging him for distributing heroin.
For his crime, Calderon-Melendez faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended Calderon-Melendez receive a prison term of between 6 and 12 months. In determining that a 7-month term was appropriate, Judge Sessions considered the severity of the offense, the harm heroin is causing to the community in Vermont, Calderon-Melendez’s relatively minor criminal record, and his history of opioid abuse.
United States Attorney Eric Miller commended the efforts of the Drug Enforcement Administration, the Burlington Police Department, the Essex Police Department, and the other law enforcement agencies that participated in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, the United States Attorney’s Office and its law enforcement partners will continue to disrupt the flow of heroin into Vermont and hold drug dealers accountable for their serious crimes against the community.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Calderon-Melendez is represented by Richard Bothfeld.
Two Plead Guilty to Credit Card Fraud and Identity TheftRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced that Elvis Barban Chavez, 45, and Dairon Julio Jimenez Roja, 26, both of Texas, pleaded guilty to identity theft and conspiracy to commit credit card fraud. A third individual, Franciso Tamayo Noguera, is scheduled for trial in February.
According to documents that were filed in United States District Court and statements made during the change of plea hearings, Roja, Chavez, and Noguera traveled from Austin, Texas to New Hampshire in late December 2015 and early January 2016. Once they arrived in New Hampshire, they began purchasing gift cards at various retail stores in the area, including the Sam’s Club store in Hudson, New Hampshire. The group obtained the credit card information for various individuals, including numerous New Hampshire residents, by downloading the information from a skimmer that was hidden in a gas pump at a store in Londonderry, New Hampshire. After downloading the information, the group used it at the self-checkout counters at the retail stores to purchase gift cards in the amount of $200. The total estimated loss is greater than $15,000.
On January 12, 2016, the Hudson Police Department were notified that the group was in the store purchasing gift cards. The police responded to the store and pursued the group into Tyngsborough, Massachusetts, where they were arrested by the Tyngsborough Police. Numerous cards and a skimming device were found in the vehicle.
A sentencing hearing for Mr. Chavez is scheduled for May 7, 2017. sentencing hearing for Mr. Roja is scheduled for May 9, 2017. Both defendants have entered into plea agreements with the United States which, if accepted by the court, provide for a prison sentence of 24 months and one day.
The case was investigated by the Hudson Police Department, the Londonderry Police Department, the Manchester Police Department, the Tyngsborough Police Department and the New Hampshire State Police Forensic Laboratory. Numerous other departments and the staffs at various Sam’s Club stores assisted in the investigation.
The public is reminded that Mr. Noguera is presumed innocent of the charges listed in the indictment.
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Two Indicted in $6.6 Million Health Care Fraud Against Horizon Blue Cross Blue Shield and Auto Workers UnionRead the Press Release
NEWARK, N.J. – A former union official and an insurance broker have been charged in connection with their roles in conspiring to defraud Horizon Blue Cross Blue Shield and the United Auto Workers (UAW) Local 2326 Health Care Plan of millions of dollars, U.S. Attorney Paul J. Fishman announced today.
Sergio Acosta, 66, of Passaic New Jersey, formerly the president of Local 2326, and Lawrence Ackerman, 53, of Old Tappan, New Jersey, were both indicted by a federal grand jury on one count each of conspiring to defraud Horizon Blue Cross Blue Shield and one count each of conspiring to defraud the union’s self-insured health care plan. An arraignment for both defendants will be scheduled at a later date.
According to the indictment:
Acosta was an employee of Local 2326 and was its president from 2002 to 2008. During this time, he was responsible for conducting the union’s operations as well as its benefits plan. In 2008, he became a representative and employee of the UAW International Union, yet continued to serve as the union’s trustee to the benefit plan.
Ackerman was the chief operating officer of Atlantic Business Associates ABA, Atlantic Medical Associates (AMA), AM Law, Atlantic International Group and Pro-Tech Automotive services. In actuality ABA and AMA were “shell” companies allegedly created by Ackerman, through which he marketed health insurance nationally to people who were not, in fact, employees of ABA and AMA. He used ABA and AMA to create the appearance of employment status for individuals who were improperly seeking health care coverage through the benefit plan.
Acosta and Ackerman allegedly conspired to defraud Horizon Blue Cross Blue Shield of $5.6 million by covering 700 to 800 ineligible participants recruited by Ackerman from across the country. After Horizon discovered the fraud and rescinded its coverage from Local 2326, Acosta allegedly permitted the same ineligible participants to continue being covered by the Local 2326 self-insured health care plan. After just five months, an additional $1 million in losses were incurred.
Each of the counts with which the defendants are charged carries a maximum penalty of 10 years in prison and a $250,000 fine.
The charges and accusations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael Mikulka; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay; and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel:
Ackerman: Robert Kipnees Esq., Roseland, New Jersey
Acosta, Alan Silber Esq., Roseland, New Jersey
Two Huntington men sentenced to federal prison for drug crimesRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to federal prison today for drug crimes, announced United States Attorney Carol Casto. Darnell Lamar Anderson, 37, was sentenced to four years and three months in prison for possession with intent to distribute methamphetamine. In a separate prosecution, Roger Page, 50, was sentenced to three years and a month in prison for conspiracy to distribute 500 grams or more of cocaine.
On April 14, 2016, officers with the Huntington FBI Drug Task Force were notified by a United States Postal Inspector that a package suspected of containing drugs was scheduled for delivery to a residence at 219 8th Avenue West in Huntington. Investigators secured a search warrant and the package was found to contain approximately 572 grams of methamphetamine. Investigators then conducted a controlled delivery of the package utilizing an undercover postal inspector. The postal inspector traveled to the residence where Anderson accepted delivery and took possession of the package.
In a separate drug prosecution, between October 2014 and February 25, 2016, Page, along with codefendant Jerrell Johnson, also of Huntington, used sources from North Carolina and Georgia to supply cocaine for sale in Huntington. The sources would travel from North Carolina and Georgia to deliver the drugs to both Johnson and Page. On the weekend of February 20, 2016, Johnson and Page met with the Georgia source in Huntington. Page received approximately one ounce of cocaine on that occasion. The Georgia source provided cocaine to Page on approximately five different occasions. The North Carolina source provided cocaine to Page on approximately two occasions. Johnson and Page worked together to arrange deliveries of cocaine, which were usually delivered to Johnson’s residence. Johnson was sentenced to five years in prison for a federal drug charge.
The Huntington FBI Drug Task Force, the Cabell County Sheriff’s Department, and the United States Postal Inspection Service conducted the investigation of Anderson. Assistant United States Attorney Joseph F. Adams is responsible for Anderson’s prosecution. The Page case was investigated by the Drug Enforcement Administration. Assistant United States Attorney R. Gregory McVey is in charge of the Page prosecution. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Texas Woman Pleads Guilty in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. – A Texas woman pleaded guilty Monday to selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said.
Michelle Reulet, 37, Montgomery, Texas, pleaded guilty to one count of conspiracy to commit mail fraud. Reulet and co-defendant Michael Myers owned a business in the Houston area called Bully Wholesale. They sold products that were purchased from co-defendants Tracy Picanso and Roy Ehrett in Olathe, Kan.
The products Reulet’s company sold designer drugs marketed under names such as Pump It, Head trip, Black Arts and Grave Digger. In her plea, Reulet admitted she knew buyers consumed her products to get high, despite labels making false claims that the products were safe and were not intended for human consumption. The products were marketed as incense, potpourri and shoe deodorizer. Their labels did not warn of possible harmful effects.
Reulet’s business had gross sales of more than $2 million.
Sentencing is set for April 17. Both parties have agreed to recommend a sentence of five years in federal prison and a civil forfeiture of almost $2 million.
Beall commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Texas Man Who Burglarized a Convenience Store in Waxahachie is Sentenced to 98 Months in Federal Prison on Firearm ConvictionRead the Press Release
DALLAS — Terry Bridgewater, 30, of Waco, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 98 months in federal prison, following his guilty plea in August 2016 to one count of felon in possession of a firearm, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Godbey ordered that Bridgewater serve that sentence consecutive to a 10-year state sentence he is currently serving for burglary.
According to documents filed in the case and information presented at his sentencing hearing today, Bridgewater, who has prior felony convictions for both assault and arson, was caught by officers with the Waxahachie Police Department on June 2, 2015, while burglarizing a convenience store in Waxahachie, Texas. At the time, Bridgewater was armed with a loaded Kel-Tec 9mm caliber pistol. While being transported to the police station following his arrest, Bridgewater told the arresting officer that he was lucky that he only had two rounds of ammunition in his pistol, because if he had had more ammunition, he would have engaged the officer in a gun battle. Bridgewater also admitted that he had just sold “on the streets” another pistol that he had obliterated the serial number.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waxahachie Police Department investigated the case. Assistant U.S. Attorney Keith Robinson prosecuted.
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