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22 December 2016
Sentencings for December 19 - December 21, 2016Read the Press Release
Travis James Stevenson, 33, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 21, 2016, for being a felon in possession of a firearm. Stevenson was arrested in Laramie, Wyoming. He received 30 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Laramie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lizandro Pelico-Sontay, 30, of Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 21, 2016, for illegal re-entry of a previously deported alien into the United States. Pelico-Sontay was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Juan De Dios Guerrero-Villanueva, 34, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 19, 2016, for illegal re-entry of a previously deported alien into the United States. Guerrero-Villanueva was arrested in Cheyenne, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
San Francisco, New York, and Granite Bay Residents Charged in Bid-Rigging Conspiracy Involving Government ContractsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against John Brewer, 47, of San Francisco; Brent Vinch, 47, of Manorville, New York; and Loraine Dixon, 55, of Granite Bay, charging them with a bid-rigging conspiracy involving state contracts, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Brewer and Vinch were the owners of and senior executives for a company called Expert Network Consultants, which submitted bids to the State of California for various government contracts. From 2008 through early 2012, it is alleged that Brewer, Vinch and Dixon conspired with each other and others to rig the State’s competitive bidding process by creating inflated bids for submission by co-conspirators to state contracting agencies in an effort to ensure that Expert Network Consultants received the contracts.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Attorney General’s Office. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich are prosecuting the case.
If convicted, Brewer, Vinch, and Dixon face a maximum statutory penalty of 10 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sacramento Man Charged with Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Mark Corum, 60, of Sacramento, was arraigned today in Sacramento on an indictment charging him with distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According court documents, on June 23, 2016, Corum transmitted images of prepubescent children engaged in sexually explicit conduct to another person via the internet.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
Corum is in custody and is scheduled to appear before U.S. District Judge Kimberly J. Mueller on January 25, 2017 at 9:00 a.m.
If convicted, Corum faces a maximum statutory penalty of 20 years in prison and a maximum statutory fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Rochester Man Pleads Guilty to Smuggling Contraband into JailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Hoeub Chan, 35, of Rochester, NY, pleaded guilty to smuggling narcotics into jail, before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that Chan was sentenced to federal prison in January of 2016, following his conviction for conspiracy to commit mail fraud. After being taken into custody, law enforcement officers discovered that the defendant smuggled Oxycodone and Dextroamphetamine into his place of incarceration in the seams of his shirt, socks, and hidden in his shoes. Chan made multiple false statements in which he denied possessing any contraband to Deputy United States Marshals while being processed.
Chan’s incarceration stemmed from his conviction for conspiring to commit mail fraud for engaging in a scheme with others to defraud Rochester Electric and Gas by re-routing closed account payments. As a result of that scheme, the defendant obtained over $72,000, which he was ordered to repay.
Today’s plea is the culmination of an investigation conducted by the United States Marshals Service, under the direction of Marshal Charles Salina.
Sentencing is scheduled for April 5, 2017, at 3:30 p.m. before Judge Geraci.
Repeat Drug Trafficker Sentenced to 17 Years in Postal StingRead the Press Release
PHILADELPHIA – Angel Catalino Ivostraza-Torres, 53, of North Philadelphia, PA, was sentenced today to 204 months in federal prison in connection with an undercover investigation conducted by the U.S. Postal Inspection Service. Ivostraza-Torres pleaded guilty on August 11, 2016, to attempted possession with intent to distribute 500 grams or more of cocaine.
During the investigation, Ivostraza-Torres was caught transporting a U.S. mail package that had contained nearly a kilogram of cocaine hidden inside of a printer. Ivostraza-Torres delivered the package to an auto detailing business located in the Fairhill section of Philadelphia before being arrested by postal inspectors. A laboratory test confirmed that the net weight of the cocaine that had been inside the package was 991 grams. Prior to his arrest in this case, Ivostraza-Torres had been convicted of drug trafficking four other times.
In addition to the prison term of 17 years, U.S. District Court Judge Mitchell S. Goldberg ordered 8 years of supervised release.
This case was investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Jerome M. Maiatico and Clare Putnam Pozos
Providence Resident Admits to Possessing Child PornographyRead the Press Release
PROVIDENCE – David A. Skally, 57, of Providence, pleaded guilty in federal court in Providence on Tuesday to possession & access with the intent to view child pornography, announced United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England; and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
According to information presented to the court, in September 2015, the HSI Child Exploitation Unit became involved in an ongoing child pornography investigation into multiple individuals, believed to be residing across the United States as well as abroad, who are members of an Internet-based bulletin board. Users of the bulletin board were provided a link to a file sharing site from which child pornography could be accessed, viewed and downloaded.
In January 2016 and March 2016, the United States District Court for the District of Columbia issued orders directing the file sharing site to disclose certain records and other information relating to a list of unique links that contained child pornography files. In response to that order, the file sharing site produced business records which included information connected to the downloading of the child pornography files. These records showed, among other things, that child pornography, including sexually explicit images of prepubescent girls, were downloaded using an IP address associated with the Skally’s Providence residence.
A court authorized search of the defendant’s computers at his residence in June 2016 by members of HSI and the Rhode Island State Police Internet Crimes Against Children Task Force resulted in the discovery of child pornography. A further forensic examination of the computers resulted in the discovery of approximately 284 videos and 418 images of child pornography.
Skally, who was released to home confinement following his guilty plea on Tuesday, is scheduled to be sentenced by Chief Judge William E. Smith on March 9, 2017.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Point Arena Couple Indicted for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Tion Makeise Foster, 21, and Monica Merlin Morales, 25, both of Point Arena, charging them with sex trafficking a minor and conspiracy to traffic a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, the defendants transported a 16-year-old female victim to various places in the Eastern District of California and the Bay Area in August 2016 so that she could engage in commercial sex acts for their financial benefit. They subsequently conspired to traffic her again in November and December.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Yuba County Sheriff’s Office. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
If convicted, Foster and Morales face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Philadelphia Man Charged with Intent to DistributeRead the Press Release
Eddie Baez, 31 of Philadelphia, Pennsylvania, was charged today by Indictment with one count of possession with intent to distribute 500 grams or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine within 1000 feet of a playground and one count of attempt to possess with intent to distribute 500 grams or more of cocaine, all in violation of Title 21, United States Code, Sections 841(b)(1)(B), 846, and 860, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum of 120 years imprisonment, a mandatory minimum of 5 years imprisonment, a period of supervised release, a $10 million dollar fine, and a $200 special assessment.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Priya De Souza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Assaulting A Postal Service EmployeeRead the Press Release
Kenneth Stalling, age 34, of Philadelphia, Pennsylvania, was charged today by indictment[1] with one count of assaulting a federal employee, that is a United States Postal Service employee while he was engaged in his official duties, on or about October 19, 2016, in Philadelphia, Pennsylvania, announced United States Attorney Zane David Memeger.
If convicted of all counts, Stalling faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, three years’ supervised release, and a $100 special assessment.
This case has been investigated by the United States Postal Inspection Service, and the Philadelphia Police Department. The case has been assigned to Assistant United States Attorney Thomas M. Zaleski.
[1]An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist Admits Illegally Distributing Oxycodone from Medford, New Jersey ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist today admitted his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Paul J. Fishman announced.
David Goldfield, 58, of Medford Lakes, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count 1 of an indictment charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone.
The guilty plea comes just six weeks after Goldfield and Michael Ludwikowski, 44, of Medford, were arrested on Nov. 14, 2016.
According to documents filed in this case and statements made in court:
Goldfield was employed by Ludwikowski at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.
Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.
Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.
On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.
When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.
The conspiracy charge and each substantive count of illegal distribution and dispensing of oxycodone charge to which Goldfield pleaded guilty carry a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 31, 2017.
The allegations against Ludwikowski are merely accusations, and he is innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz and Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Gilbert J. Scutti, Esq.
Palm Beach County Sheriff’s Deputy Arrested for His Role in an Identity Theft SchemeRead the Press Release
A Palm Beach County Sheriff’s deputy was arrested yesterday for his role in an identity theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Sean Scheller, Chief, Town of Lantana Police Department, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
Frantz Felisma, 42, of Boynton Beach, a deputy with the Palm Beach County Sheriff’s Office, was arrested on a federal criminal complaint, which charged him with participating in an identity theft scheme, in violation of Title 18, United States Code, Sections 1028A (Aggravated Identity Theft); 1029(a)(2) (Access Device Fraud); 1030(a)(4) (Access of a Protected Computer in Furtherance of a Fraud); and 1029(b)(2) (Conspiracy to Commit Identity Theft).
As alleged in the criminal complaint, over the span of approximately 18 months, Deputy Felisma used his police department issued laptop computer to access a law enforcement database in order to obtain personal identification information belonging to numerous individuals. Felisma sold this information to his co-conspirator, who then used the identities of at least 15 of these victims to set up credit card and bank accounts, stealing tens of thousands of dollars in the names of the victims.
Felisma made his initial appearance today before U.S. Magistrate Judge William Matthewman. A pre-trial detention hearing is scheduled for Wednesday, December 28, 2016 at 10 a.m.
If convicted, Felisma faces a mandatory minimum of two years’ imprisonment, to run consecutive to any other term of imprisonment imposed, as to the aggravated identity theft charge; a maximum of ten years’ imprisonment as to the access device fraud charge; and a maximum of five years’ imprisonment as to each of the access of a protected computer in furtherance of a fraud and conspiracy to commit identity theft charges.
Mr. Ferrer commended the investigative efforts of ICE-HSI, Lantana Police Department, IRS-CI and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Lauren Jorgensen and Rinku Tribuiani.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Owner of Harrisburg Healthcare Services Firm Sentenced for False Statements, Money Laundering and Identity TheftRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Rose Umana, age 49, of Mechanicsburg, Pennsylvania, was sentenced on December 21, 2016, by United States District Court Judge Sylvia H. Rambo to 36 months in prison for making false statements relating to health care matters, engaging in monetary transactions involving criminally-derived property, and identity theft.
According to United States Attorney Bruce D. Brandler, between January 2012 and January 2014, Umana, the owner and operator of Vision Healthcare Services, Inc., Harrisburg, Pennsylvania, created false identification documents and fictitious occupational licenses for workers. In executing the scheme, Umana then (1) submitted bills to Medicaid for medical services not provided by the workers, (2) billed Medicaid for services provided by someone other than the person claimed to be the provider, and (3) billed Medicaid for services not provided or provided by someone not qualified to provide the service.
Medicaid is the joint federal–state program that provides health care and nursing home coverage to low asset/income individuals. Medicaid in Pennsylvania is administered by the Department of Human Services. Vision Healthcare Services, Inc., is a medical staffing company and home care services provider servicing Dauphin, Cumberland, Perry and York Counties and has been enrolled under Medicaid since 2006.
The total loss resulting from Umana’s conduct was $1,184,224. In addition to the three- year-term of imprisonment, Judge Rambo also ordered Umana to pay $1,184,224 in restitution and ordered the forfeiture of $656,421. Judge Rambo ordered Umana to report to the Bureau of Prisons on January 23, 2017.
The case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services; Internal Revenue Service Criminal Investigations; and, the Medicaid Fraud Control Section of the Pennsylvania Office of Attorney General. Special Assistant U.S. Attorney Heather M. Albright of the Pennsylvania Attorney General’s Office, and Assistant U.S. Attorney Joseph J. Terz prosecuted the case.
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Oregon US Attorney's Office Collects over $19 Million in Civil and Criminal Actions in Fiscal Year 2016Read the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced today that the District of Oregon collected $19.1 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $7.5 million was collected in criminal actions and $11.5 million was collected in civil actions.
Additionally, the District of Oregon worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $306,163 in cases pursued jointly. Finally, the District of Oregon, working with partner agencies and divisions, collected $2.39 million in asset forfeiture actions. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. These collections represent more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The District of Oregon’s Asset Recovery and Money Laundering Division is dedicated to holding accountable those who seek to profit from illegal activities across the state and beyond,” said U.S. Attorney Williams. “Civil and criminal collections demonstrate the significant return on investment that federal law enforcement programs deliver. In fact, our 2016 collections are nearly twice that of our annual operating budget. I want to thank the hardworking public servants in our Asset Recovery and Money Laundering Division” continued Williams, “for their deep commitment to aggressively pursuing financial compensation for victims of crimes, and for protecting government programs from financial exploitation and abuse.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and assistance programs.
The District of Oregon Financial Litigation Unit’s (FLU) efforts to collect restitution for victims of crimes involves regular review of a defendant’s changing financial circumstances and ability to pay. When defendants resist efforts to set up a voluntary and reasonable payment schedule, the FLU pursues wage garnishment, bank accounts, and retirement accounts; depositions; and the seizure and sale of real estate that can be applied to the defendant’s debt.
One example of the district’s recent restitution collection efforts was in the case of U.S.v. Carol Landesman, a Gresham, Oregon psychologist who created false invoices to send to a Catholic diocese for counseling services she did not actually provide. The defendant was ordered to pay restitution in the amount of $113,770, all of which was paid in full at sentencing. Not all cases result in such swift collections, however, and the FLU often spends years pursuing restitution payments from defendants who attempt to hide assets and evade their obligations to fully repay their victims.
One such example of a case requiring ongoing collection efforts over the past year is in the case of U.S. v. Pavel Tokar, who was sentenced in 2006 for fraud and ordered to pay over $90,000 in restitution. After ten years, the defendant had paid less than $10,000 back to his victims. After reviewing several questionable property transactions and scheduling the defendant’s spouse for a deposition to more fully probe the defendant’s financial circumstances, the defendant paid the remaining $81,000 balance in full to avoid further collection efforts.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
The single largest civil collection over the past year came from the office’s resolution of a civil fraud case against Holiday Corporation, which operated senior living facilities throughout the country. The investigation, which was prompted by allegations brought by former employees, revealed improper receipt by Holiday of veteran’s benefit payments for care that was not provided, and for care to ineligible veterans. For example, it revealed that Holiday Corporation had falsified information indicating that veterans were entitled to benefits for assistance with their daily living, when in fact those funds were actually paid to Holiday for rent. The settlement agreement included collection of $8.86 million from Holiday.
In another example of civil collections, the U.S. Attorney’s Office and the Oregon State Department of Justice worked jointly to resolve both civil and criminal matters against Tran Pharmacy and its owner for billing Medicare and Medicaid for prescriptions that were filled with generic fish oil capsules. As part of the settlement, the defendant paid over $800,000 to federal and state agencies. One final example includes a civil fraud case against Skamania Public Utility District, which was accused of overstating power line miles to the Bonneville Power Administration (BPA), thereby causing BPA to provide Skamania with a greater discount on its power costs than Skamania was entitled to receive. As part of its settlement, Skamania paid $725,236 to the government.
Oklahoma Consultant Charged with Defrauding Real Estate Developers of More Than $1.5 MillionRead the Press Release
BROOKLYN, N.Y. – Stephen Holsey, a senior consultant to Strategic Development Corporation (SDC), an Oklahoma corporation, was arrested yesterday on charges of wire fraud conspiracy in connection with a more than $1.5 million “advance fee” scheme. Essentially, Holsey and his co-conspirators offered loans through SDC to developers who were looking to finance large-scale construction projects, in exchange for a ten-percent fee, even though SDC lacked the necessary funds to finance these projects. Holsey’s initial appearance for removal proceedings to the Eastern District of New York took place yesterday before United States Magistrate Judge Steven P. Shreder at the United States Courthouse, 101 North 5th Street, Muskogee, Oklahoma.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (FBI).
“As alleged, the defendant and his co-conspirators used lies and deceit to induce unsuspecting real estate developers in need of financing for their projects to pay more than $1.5 million in fees in exchange for loans that conspirators knew they could never finance,” stated United States Attorney Capers. “We are committed to holding accountable fraudsters who seek to prey on businesses for personal gain.” Mr. Capers extended his appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
“In a time when new construction projects meant potential jobs and employment for many, the subjects in this case allegedly dangled that prospect in front of companies so they could finance their lavish lifestyles. Fraud and theft take on many forms, and the FBI and our partners are focused on finding these crimes wherever scammers try to hide them,” stated FBI Assistant Director-in-Charge Sweeney.
According to the complaint unsealed yesterday, between May 2010 and March 2012, Holsey and his co-conspirators offered loans through SDC to developers to finance large-scale construction projects. Specifically, Holsey and his co-conspirators told developers that: (i) SDC had funds available to provide financing for the developers’ projects in exchange for a fee, payable in advance, of ten percent of the loan amount; (ii) the ten-percent fee would be placed in an attorney escrow account until the loan closed; and (iii) the ten-percent fee would be refunded if SDC did not fund the project. Contrary to these representations: (i) SDC did not have the funds necessary to provide financing for the developers’ projects; (ii) the ten-perfect fees were transferred almost immediately, prior to the loan closings, from the attorney escrow account to accounts controlled by Holsey and his co-conspirators; and (iii) despite the lack of funding, the fees were not refunded to the developers and the developers’ associates when SDC did not fund the projects. In sum, Holsey and his co-conspirators collected approximately $1.5 million in the form of fees and investments from approximately 15 individuals and corporate entities and used those funds to, among other things, pay for personal living expenses and funnel money to other businesses owned or controlled by Holsey and his co-conspirators.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Holsey faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Tyler Smith is responsible for the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
STEPHEN HOLSEY
Age: 69
Beggs, OklahomaE.D.N.Y. Docket No. 16-M-1113
North Suburban Man Charged with Fraud in Connection with Ponzi-Type Scheme That Swindled Elderly InvestorsRead the Press Release
CHICAGO — A north suburban man defrauded more than a dozen clients, some of whom were elderly and had pledged their retirement savings, in a Ponzi-type scheme that netted him at least $1 million, according to a criminal complaint filed in federal court in Chicago.
RICHARD K. BOOY, the founder of Principal Financial Strategies LLC and the now-defunct Safe Financial Strategies Inc., used the promise of no-risk investments and guaranteed returns to persuade at least 15 clients to hand over at least $1 million, the complaint states. Although Booy claimed to be affiliated with the widely known investment firm Principal Financial Group, he had no actual relationship with the firm and was not authorized to invest client funds with it. Instead of investing the funds as promised to clients, Booy used the victims’ money to cover personal expenses, including credit card debt and purchases at Best Buy and DirecTV, and to pay earlier investors through Ponzi-type payments, the complaint states.
The complaint was filed Wednesday in U.S. District Court in Chicago. It charges Booy, 48, of Vernon Hills, with one count of mail fraud. He is scheduled to make an initial appearance today at 3:00 p.m. before U.S. Magistrate Judge M. David Weisman.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; E.C. Woodson, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration; and Tanya Solov, Director of the Illinois Securities Department of the Illinois Secretary of State.
The complaint alleges that the fraud scheme began in approximately June 2014 and remained ongoing as of this month. Most of Booy’s victims are elderly, and some paid him their entire life savings or funds from retirement accounts, the complaint states. The victims include a Chicago pastor, a retired painter, a retired government worker, and an individual who suffers from Parkinson’s Disease. Booy often met personally with the victims in their homes, misrepresenting to them that their investments were guaranteed to return a profit, the complaint states.
Booy continued his investment scheme even after Principal Financial Group in September obtained a temporary restraining order against him that led to a court-authorized seizure of his computer and other evidence from Booy’s home, according to the complaint.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mail fraud carries a maximum sentence of 20 years in prison. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew Ebert.
North Hills Man Produced Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, Acting United States Attorney Soo C. Song announced today.
Travis Glies, age 38, of Allison Park, Pennsylvania, pleaded guilty before United States District Judge Mark R. Hornak .
In connection with the guilty plea, from January of 2016 to February of 2016, Glies produced visual depictions of the sexual exploitation of a minor. Judge Hornak scheduled sentencing for April 25, 2017.
The law provides for a mandatory minimum sentence of 15 years and a maximum sentence of 30 years for the production of child pornography. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the Allegheny County Police Department conducted the investigation leading to the prosecution of Glies.
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.
New Jersey Resident Charged with Sex Assault on AirplaneRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man appeared in federal court today to face charges that he sexually abused a woman on a flight from India to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Ganesh Parkar, 40, of Windsor, New Jersey, was charged by criminal complaint with one count of abusive sexual contact on an airplane. Parkar, who is an Indian citizen, had his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $50,000 unsecured bond, home detention with electronic monitoring and surrender of his passport and all travel documents.
According to the complaint:
While on a Dec. 21, 2016, Air India flight from Mumbai to Newark, Parkar moved from his ticketed seat in the business class section of the plane to the economy class section and sat next to a female passenger seated in a center row. When the woman fell asleep, Parkar placed his hand on her breast without her consent.
The abusive sexual contact charge carries a statutory maximum of up to two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola; and the Port Authority Police Department of New York-New Jersey, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Criminal Division in Newark.
New Haven Man Sentenced to More Than 8 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ELIO DELIMA, also known as “Victor Cuevas” and “Ely,” 39, of New Haven, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 105 months of imprisonment, followed by four years of supervised release, for supplying heroin to a New Haven-based drug trafficking ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin from DELIMA and others, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
DELIMA has been detained since his arrest on July 15, 2015. On September 15, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
New Haven Man Sentenced to Additional Prison Time for Violating Conditions of Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALPHONZO DIXON, also known as “Fonz,” 29, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment for violating his conditions of supervised release that followed a 2014 conviction for drug and firearm offenses.
DIXON was originally charged as a result of an FBI New Haven Safe Streets Task Force, New Haven Police Department and Connecticut State Police investigation into drug distribution and related violence being committed by members and associates of the Grape Street Crips in New Haven. He subsequently pleaded guilty to possession of a firearm by a previously convicted felon and conspiracy to possess with intent to distribute crack cocaine.
On April 7, 2014, DIXON, who had been detained since March 26, 2012, was sentenced to 46 months of imprisonment, followed by three years of supervised release. He was released from prison on December 31, 2015.
On September 17, 2016, DIXON and another individual physically assaulted a man at a convenience store in New Haven.
Judge Underhill ordered DIXON to serve 22 months of supervised release when he released from federal custody.
This case was prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Anthony E. Kaplan.
New Haven Man Sentenced to 7 Years for Committing 6 Bank Robberies in Connecticut and New YorkRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN CRUZ, 38, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for committing six bank robberies in Connecticut and New York last year.
According to court documents and statements made in court, CRUZ robbed the Santander Bank at 215 Grand Avenue in New Haven on October 15, 2015; the Wells Fargo Bank at 205 Church Street in New Haven on October 20, November 7 and November 21, 2015; the Bank of America at 157 Church Street in New Haven on November 9, 2015, and the Citizens Bank at 10 North Pearl Street in Albany, N.Y., on November 20, 2015. CRUZ stole a total of approximately $18,830 during the robbery spree.
CRUZ was arrested on November 21, 2015, in Chicopee, Mass. On September 22, 2016, he pleaded guilty to one count of bank robbery. He has been detained since his arrest.
This investigation was conducted by the Federal Bureau of Investigation and the New Haven Police Department, with the assistance of the U.S. Marshals Service, Chicopee (Mass.) Police Department and Albany (N.Y.) Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Middle District of Florida Brings over 100 Project Safe Childhood ProsecutionsRead the Press Release
Tampa, Florida - U.S. Attorney A. Lee Bentley, III announces today that the Middle District of Florida has charged more than 100 defendants in Fiscal Year 2016 as part of the Department of Justice’s Project Safe Childhood (PSC) Initiative. Since 2006, this nationwide initiative has collectively marshaled federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and identify and rescue victims of abuse. In each of the 94 U.S. Attorney’s Offices throughout the country, an Assistant United States Attorney serves as a Project Safe Childhood Coordinator, dedicated to working with law enforcement to investigate and prosecute these cases. During the 10 years the program has existed, the Middle District of Florida has charged more than 950 defendants with child exploitation offenses.
“From the beginning of Project Safe Childhood, the United States Attorney's Office for the Middle District of Florida has aggressively prosecuted sexual predators who seek to use the Internet to harm and exploit children,” stated U.S. Attorney Bentley. “Working closely with our federal, state, and local law enforcement partners, we will continue to make the prosecution of these cases a top priority.”
From October 1, 2015, through September 30, 2016, the U.S. Attorney’s Office for the Middle District of Florida, with the close assistance of local, state, and federal agencies, brought charges against 103 defendants for child exploitation offenses. The charges in those cases vary by defendant, but include attempted enticement of a minor to engage in sexual activity; production, distribution, possession and/or receipt of child pornography; and child sex trafficking. These cases (see case summaries) were brought by each of the five offices in the district. The press releases for those cases, and other PSC cases, can be found on our district website.
Project Safe Childhood cases in the Middle District of Florida are investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, the United States Secret Service, the United States Postal Inspection Service, the United States Marshals Service, and the Florida Department of Law Enforcement. The cases profiled in this release were investigated by those agencies, along with the Brevard County Sheriff’s Office, the Cape Coral Police Department, the Clay County Sheriff’s Office, the Cleburne (TX) Police Department, the Cocoa Police Department, the Columbia County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Lee County Sheriff’s Office, the Metropolitan Bureau of Investigation, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, the St. Augustine Beach Police Department, the St. Johns County Sheriff’s Office, and the Volusia County Sheriff’s Office.
These cases were coordinated by the Middle District of Florida’s Project Safe Childhood Coordinator Assistant United States Attorney D. Rodney Brown. Assistant United States Attorneys Robert E. Bodnar, Jr., Emily C. L. Chang, Vincent S. Chiu, Tiffany L. Cummins, Christina R. Downes, Karen L. Gable, Daniel George, William S. Hamilton, Stacie B. Harris, Rachel K. Jones, Amanda Kaiser, Kelly S. Karase, Jennifer L. Peresie, Andrew C. Searle, Ilianys Rivera Miranda, and Yolande G. Viacava prosecuted the cases.
For more information about the cases profiled in this release and other Project Safe Childhood cases throughout the Middle District of Florida, please visit our website. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Project Safe Childhood Case Summaries
Fort Myers
Yaisel Rodriguez (25, Cape Coral) was sentenced to 20 years in federal prison for production of child pornography. While agents from the FBI were executing a search warrant at his home, Rodriguez disclosed that he had recently ended a two-year relationship with a minor. A forensic examination of his computer revealed videos of the minor victim engaged in sexually explicit conduct.
Travis John Jenner (38, Naples) was sentenced to 5½ years in federal prison for distribution of child pornography. Jenner had befriended a minor online and, during a two-year period, received pornographic images of the child. Jenner subsequently distributed child pornography to an undercover detective in a group chat room. As part of his sentence, Jenner was ordered to pay $51,376 in restitution to his victim.
Jacksonville
Michael Eugene Williams (59, Jacksonville) has been charged with production of child pornography, sex trafficking of a child, advertising for child pornography, and transporting child pornography. According to court documents, in July 2016, the Jacksonville Sheriff’s Office executed a search warrant at Williams’s residence after receiving information that he was uploading child pornography for sharing. A forensic examination of devices seized from the residence revealed that he had been texting with a woman in Texas who was producing pornographic images of her 3-year-old daughter and sending them to Williams in exchange for money. If convicted, Williams faces a minimum mandatory penalty of 15 years, up to life, in federal prison.
Justin Laurence McKinley (49, Jacksonville) pleaded guilty to sending notices over the Internet soliciting the live molestation of children for online viewing. According to court documents, the FBI was investigating a website where individuals in a foreign country molested young children for the purpose of broadcasting live streaming “sex shows” to online viewers who paid a fee. McKinley was identified as a customer. Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers totaling $31,415 to the individuals who molested children in these “sex shows.” He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison.
Leonard Leland Walters (44, Green Cove Springs) pleaded guilty to three counts of production of child pornography and one count of transportation of child pornography. Walters had bragged to an undercover officer he met online that he was regularly having sexual intercourse with a 15-year-old. Walters offered to assist the undercover officer with sexually abusing the undercover officer’s fictitious 14-year-old “niece,” and he distributed an image of child pornography to the undercover officer. Walters faces a minimum mandatory penalty of 15 years, up to 30 years, on each production count and a minimum mandatory penalty of 5 years, up to 20 years, for the transportation count. His sentencing is set for February 1, 2017.Kyle Adam Kirby (35, Live Oak) was arrested at the Live Oak Police Department (LOPD), where he was employed as an officer. According to court documents, law enforcement officers executed a federal search warrant at Kirby’s residence based on an online child pornography investigation. That same morning, the LOPD Police Chief authorized the agents to inspect and search the computer in the patrol car used by Kirby. A forensic examination revealed that it contained at least 87 thumbnail images that either depicted minor children engaged in sexually explicit conduct or that had titles indicative of child pornography or child exploitation. If convicted, Kirby faces a minimum mandatory penalty of 15 years, up to 40 years, in federal prison.
Jon Christopher Stoune (45, St. Johns) was sentenced to 17½ years in federal prison for attempted online enticement of a minor child to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. Stoune had engaged in a series of text conversations with a person he believed to be a 14-year old child but was actually a detective with the St. Johns County Sheriff’s Office. During the conversations, Stoune discussed in detail his desire to have sex with the “child,” engage in sadomasochistic activity, and obtain pornographic pictures of the “child.” Stoune ultimately drove to St. Augustine Beach to meet the “child” for sex and was arrested. He had a digital camera and several sex toys and condoms concealed in his pants pocket. A search of his vehicle revealed a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity.
Ocala
Alan Kenneth Thompson, Jr. (33, Crystal River) was sentenced to 11 years and 4 months in federal prison for distribution of child pornography. After determining Thompson had been using a mobile application to post and receive multiple images of child pornography, federal agents tracked the activity to Thompson’s residence and executed a search warrant. The devices seized from the residence contained more than 4,500 images and 84 video files of child pornography. Thompson told agents that he recently had begun to take non-pornographic photographs of neighborhood children without their knowledge, including more than 3,000 images of a minor girl.
William Edward Spencer (57, Yalaha) pleaded guilty to possession of child pornography. After identifying multiple images of child pornography hosted on the Internet, federal agents traced the activity to Spencer’s residence and executed a search warrant. The devices seized from the home contained more than 2,000 images and 140 video files of child pornography. Spencer admitted to receiving and distributing child pornography, and he now faces up to 10 years in federal prison. His sentencing is set for January 19, 2017.
Orlando
Joshua Adam Tatro (24, Merritt Island) was sentenced to 350 years in federal prison for production, receipt, and possession of child pornography. On nine separate occasions, Tatro had produced images and videos depicting him sexually abusing a three-year-old child. He also had used a messaging app to send and receive images depicting child pornography and had uploaded images to an online account that he maintained.
Dane Gillis (59, Leesburg) was sentenced to 30 years and 5 months in federal prison for attempting to entice a minor to engage in sexual activity, soliciting an undercover federal agent to commit kidnapping, and transmitting interstate commerce threats to kidnap and injure a former co-worker. Gillis had posted an ad on Craigslist stating, “Looking for a guy or group who r into extremely taboo scenes. Hi risk and reward for the right sadistic Pervert.” An undercover agent responded to the ad and stated that he was the father of an 11-year-old daughter. Gillis communicated with the agent through email and text for two weeks and made arrangements to have sex with the “child.” He also solicited the agent to help him kidnap and rape a former co-worker. He was arrested after attempting to meet the “father and child.”
Kennedy Harris, Jr. (23, Cocoa) was convicted by a jury of sex trafficking a child and production of child pornography. Harris had taken in his victim, a 16-year old girl, after she ran away from home. He then took sexually suggestive photographs of her and advertised her for sex on Backpage.com. Harris also enticed the teen to engage in sexually explicit conduct for the purpose photographing her. Over the course of approximately two weeks, the victim had sex with up to eight men per day, giving the money she received to Harris. In exchange for her sex acts, Harris gave the victim crack cocaine nearly every day. Harris is facing a minimum mandatory penalty of 15 years, up to life, in federal prison. Sentencing is set for January 9, 2017.
Timothy Michael Sedlak (43, Ocoee) was sentenced to 42 years in federal prison for production and possession of child pornography. Sedlak had taken photographs of himself sexually abusing a small child on two separate occasions. The first incident took place in 2009, when the victim was a year old, and the second incident took place in 2011, when the same victim was three years old. The images of Sedlak abusing the victim were discovered when United States Secret Service agents executed a search warrant on Sedlak’s home as part of an unrelated computer intrusion investigation. In addition to the images of the victim, agents discovered hundreds of images of child pornography on Sedlak’s computers.
Luis Serrano (24, Orlando) was sentenced to 20 years in federal prison for production of child pornography. Serrano had befriended a minor victim on a chat website when she was 13 years old and, during the next two years, persuaded and directed her to engage in sexual activity during live video chats that he recorded. Serrano also persuaded the child to record herself engaging in sex acts and send the images to him. When the victim was 16 years old, Serrano convinced her to meet him in person to engage in sex acts, and he took explicit photographs of the conduct. Serrano distributed the pornographic images of the victim to between five and ten individuals.
Ricky Delano Sheppard (59, Melbourne), a former Spessard Holland Elementary School principal, was sentenced to 6 ½ years in federal prison for receiving child pornography. In June 2016, agents had executed a search warrant at Sheppard’s residence. A forensic examination of his computer media revealed thousands of images depicting child pornography, the majority of which depicted young boys, including toddlers, engaging in sexual acts.
Tampa
Alysia N. Algere a/k/a “Coco” (29, Tampa) was sentenced to 15 years in federal prison for sex trafficking three minors. Algere had recruited two minor boys and a minor girl, who were between 14 and 16 years old, to engage in commercial sex acts. She took sexually explicit photos of the minors and posted advertisements on the Internet selling them for sex.
Maurice Williams (26, Tampa) and his brother, Antawan Hudson (31, Tampa), were sentenced to 40 years in federal prison and 30 years in federal prison, respectively, for sex trafficking minors. Williams had conspired with Hudson to traffic underage girls by fraud, force, and coercion in the commercial sex trade. The brothers worked together to post online prostitution ads for the victims and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments.
Larry Urwiler (68, Dunedin) has pleaded guilty to enticement of a minor. According to court documents, Urwiler responded to an advertisement posted on Craigslist where an undercover agent posed as a mother of the 13-year-old girl. Urwiler texted the “mother” and indicated that he would engage in sexual activities with the “child” and teach the “child” about oral sex. Urwiler ultimately drove to Lee County to meet the "child." He brought lubricant to engage in sexual activity and a teddy bear for the child. He is facing a minimum mandatory penalty of 10 years, up to life, in federal prison.Jorge Valencia (43, St. Petersburg) was sentenced to 12 years and 11 months in federal prison for receiving child pornography and attempting to entice a minor. An undercover FBI task force officer had discovered that Valencia was sharing child pornography using an online file-sharing program. A search warrant was executed at his residence and several of his electronic devices were seized. The forensic analyses revealed that Valencia had been using a phone messaging app since at least 2012 to chat with individuals he believed to be under the age of 18 for the purpose of soliciting sexually explicit pictures from them. A large collection of child pornography, including numerous videos and images depicting children under the age of 12, were also found on his devices.
Mexican Citizen Pleads Guilty to Illegal ReentryRead 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 Jose Maria Agustin, 43, a native and citizen of Mexico, most recently of Elba, NY, pleaded guilty to reentry after deportation subsequent to an aggravated felony conviction (Rape), before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that in 2009, the defendant was convicted in California of Forcible Rape and Assault with a Deadly Weapon and sentenced to five years in prison. After serving his prison sentence, Agustin was removed from the United States to Mexico by U.S. Immigration and Customs Enforcement. As a result of this conviction, the defendant was permanently barred from returning to the United States.
In December of 2015, Agustin was found working in the United States. The defendant was doing so without having permission to reenter the United States and without employment authorization. In addition, Agustin was required to register as a sex offender in California and had not registered as a sex offender in New York State.
The plea is the result of an investigation by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Michael Phillips, Buffalo Field Office Director and the Genesee County Sheriff’s Office, under the direction of Sheriff Gary Maha.
Sentencing is scheduled for April 4, 2017 at 10 a.m. before Judge Vilardo.
Manhattan U.S. Attorney Announces $30 Million Settlement with Total Call Mobile for Defrauding Government Program Offering Discounted Mobile Phone Services to Low-Income ConsumersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Travis LeBlanc, Federal Communications Commission (“FCC”) Enforcement Bureau Chief, announced today a $30 million settlement of a civil fraud lawsuit against TOTAL CALL MOBILE, LLC (“TOTAL CALL”), for defrauding the Lifeline Program, a federal government subsidy program that offers discounted mobile phone services to eligible low-income consumers. TOTAL CALL, based in Gardena, California, has enrolled Lifeline subscribers in 19 states and territories. The United States’ Complaint alleges that Total Call, with the knowledge and involvement of its affiliate, co-defendant LOCUS TELECOMMUNICATIONS, LLC, and their shared corporate parent, co-defendant KDDI AMERICA, INC., knowingly submitted false claims for federal payments by seeking reimbursement for consumers who did not meet Lifeline eligibility requirements. As part of the settlement, TOTAL CALL admitted and accepted responsibility for conduct alleged in the Complaint, including seeking reimbursement for tens of thousands of ineligible consumers, and agreed to no longer participate in the Lifeline Program. The payment also resolves an administrative investigation conducted by the FCC, and the FCC has entered into a separate administrative agreement with TOTAL CALL as part of this global settlement.
Manhattan U.S. Attorney Preet Bharara said: “By routinely looking the other way while its sales agents repeatedly engaged in obvious fraud, Total Call Mobile undermined the goals and depleted the resources of a federal subsidy program designed to provide discounted phone services to low-income individuals. While it certified its compliance with FCC rules, Total Call enrolled and claimed federal payments for tens of thousands of consumers who did not qualify for the program.”
FCC Enforcement Bureau Chief Travis LeBlanc said: “We have no toleration for fraud. This unprecedented $30 million settlement along with a permanent ban from the Lifeline Program affirms our commitment to pursue the strongest sanctions for those who defraud or abuse the Universal Service program. We thank our partners at the Department of Justice for working with us to make sure that companies that commit fraud are held accountable to the fullest extent of the law.”
To be eligible for the Lifeline Program, a consumer must have income that is at or below 135% of the Federal Poverty Guidelines or participate in one of a number of specified federal, state, or Tribal assistance programs. Eligible Telecommunications Carriers (“ETCs”), such as TOTAL CALL, receive monthly federal payments for providing discounted phone services to qualified consumers. As a condition of receiving these payments, an ETC must comply with regulations established by the FCC, which, among other things, require the implementation of policies and procedures for ensuring that enrolled subscribers are eligible for the program and that households do not receive more than one Lifeline phone. ETCs must certify their compliance with Lifeline rules as part of an annual reporting requirement and with each monthly request for payment.
As alleged in the Complaint filed in Manhattan federal court:
TOTAL CALL relied primarily on in-person sales events to enroll consumers in the Lifeline Program. The company contracted with “master agents,” who in turn hired “field agents” to engage in face-to-face marketing at public events and spaces. These field agents were expected to enter electronically a consumer’s demographic information and capture images of the consumer’s proof of identification and proof of eligibility for the Lifeline Program (e.g., Medicaid card, food stamp card). TOTAL CALL had access to the information entered by the field agents.
TOTAL CALL, with the knowledge and involvement of the other defendants, engaged in a widespread practice of seeking federal reimbursement for consumers who did not meet Lifeline’s eligibility requirements. TOTAL CALL field agents employed a range of fraudulent enrollment practices, including repeatedly using the same eligibility proof to enroll multiple consumers, tampering with identification or eligibility proof documentation, intentionally altering the way consumer information was input so as to avoid the detection of duplicate subscriber enrollments, and submitting false consumer addresses and social security numbers. Although TOTAL CALL’s managers were notified that high volume field agents were engaging in blatantly fraudulent enrollment practices, TOTAL CALL continued to approve and seek federal reimbursement for consumers enrolled by these agents.
In addition, defendants failed to implement effective procedures and systems for preventing the enrollment of duplicate or otherwise ineligible Lifeline subscribers. In many instances, even a cursory review of the submitted information and documentation or a straightforward search of the existing customer database would have shown that an application was faulty and should be denied. However, to maximize enrollments and meet its aggressive sales targets, TOTAL CALL approved applications with little or no scrutiny, and then submitted grossly inflated reimbursement requests with false certifications of compliance with Lifeline rules.
Today, U.S. District Court Judge Jed S. Rakoff approved a settlement stipulation to resolve the Government’s claims against the defendants. Under the settlement, defendants are required to pay approximately $22.54 million to the United States, and to forego payment of approximately $7.46 million in Lifeline reimbursements claimed by TOTAL CALL but held by the Government pursuant to a prior FCC Order. Further, TOTAL CALL has agreed to cease providing Lifeline services by December 31, 2016, and not to participate in the Lifeline Program in the future.
As part of the settlement, TOTAL CALL admits, acknowledges, and accepts responsibility for the following conduct:
- TOTAL CALL failed to implement effective policies and procedures to ensure the eligibility of the subscribers for whom TOTAL CALL requested reimbursement for Lifeline discounts, as required by Lifeline rules.
- For much of the period from September 2012 to May 2016, defendants allocated insufficient staff and resources to verifying the eligibility of Lifeline subscribers, and failed to adequately screen and train the field agents.
- Hundreds of TOTAL CALL field agents engaged in fraudulent practices to enroll consumers who were duplicate subscribers or who were otherwise not eligible for the Lifeline Program. TOTAL CALL failed to put in place effective mechanisms to oversee the conduct of field agents and detect and prevent field agent abuses.
- Certain field agents repeatedly used the same benefit program eligibility proof to enroll multiple consumers. Agents frequently enrolled several different individuals by submitting an image of the same improperly obtained program eligibility card or, in some instances, a fake program eligibility card.
- Certain field agents slightly altered the way in which a subscriber’s demographic information was input to avoid having TOTAL CALL identify the application as a duplicate.
- Certain field agents tampered with identification or program eligibility cards, and intentionally transmitted blurry or partial images of the documentation, to try to conceal the fact that the information on the documentation did not match the subscriber’s actual name or the other information on the Lifeline application.
- Certain field agents provided their own signature, printed their own name, or wrote a straight or curvy line where the prospective subscriber’s signature was supposed to appear on Lifeline applications.
- Certain field agents submitted false consumer addresses and social security numbers to enroll duplicate or otherwise ineligible subscribers.
- At the time that TOTAL CALL submitted many of its monthly remittance requests, TOTAL CALL knew that its policies and procedures for reviewing Lifeline applications, verifying consumer eligibility, conducting duplicate checks, and detecting duplicate subscribers were deficient.
- TOTAL CALL sought and received reimbursement for tens of thousands of consumers who did not meet the Lifeline eligibility requirements.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Bharara thanks the FCC’s Office of Inspector General and the FCC’s Enforcement Bureau for their investigative efforts and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jeffrey K. Powell and Jessica Jean Hu are in charge of the case.
- TOTAL CALL failed to implement effective policies and procedures to ensure the eligibility of the subscribers for whom TOTAL CALL requested reimbursement for Lifeline discounts, as required by Lifeline rules.
Los Angeles Man Arrested on Federal Charges of Attempting to Smuggle Heroin Wrapped in Christmas Paper through LAXRead the Press Release
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.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on December 21, 2016, Mykael Thomas Pierce, also known as Michael Thomas Pope, 47, of Lincoln, was sentenced to 11 years and eight months, (140 months), in prison for his role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between January of 2013, and July of 2015. Information obtained by law enforcement indicated that Pierce was responsible for the distribution of at least 500 grams, (approximately 18 ounces) of methamphetamine during that time. Pierce was contacted by Lincoln Police officers on four occasions between January and July of 2015, and on each occasion, he was found in possession of small amounts of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Brownsville, Brooklyn-Based Gang Sentenced to Life in Prison Following His Conviction of Racketeering, Murder in Aid of Racketeering, and Other ChargesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Paul Rivera, a leader of a Brownsville-based gang, was sentenced to life in prison, plus a consecutive sentence of 20 years, following his conviction after trial in June 2015 on charges of racketeering, murder, sex trafficking, narcotics trafficking, money laundering, and witness tampering. These charges arose out of the defendant’s participation in and leadership of a gang known as “Together Forever” or the rap group “TF Mafia” (also referred to as “TF”) that for many years engaged in criminal activity in areas including the Brownsville neighborhood of Brooklyn, New York, an area victimized by a high rate of gang and drug related violent crime.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“With this sentence, I hope that victims of Rivera’s crimes will have some sense of closure,” stated United States Attorney Capers. “The defendant’s involvement in violent gang activity, including drug trafficking, the prostitution of young women and girls, and a senseless murder, was a scourge on the community. This case again demonstrates our Office’s unwavering commitment to investigate and prosecute those who perpetrate such crimes.” Mr. Capers extended his thanks to the Internal Revenue Service – Criminal Investigation, New York City Police Department, the Pennsylvania State Police, the New Jersey State Police, and the United States Attorney’s Office for the Middle District of Pennsylvania, for their assistance in the investigation and prosecution of this case.
FBI Assistant Director-in-Charge Sweeney stated, “The sum of crimes the suspect committed in this investigation are proof of his complete disregard for obeying the laws governing everyone else. His goal was money and power, and he used intimidation, threats and even murder to assert his dominance over others. His victims and the communities he operated in can breathe a sigh of relief that he will spend the rest of his life in federal prison.”
As proven at trial, TF has operated in various neighborhoods of Brooklyn well as in other parts of New York and in Pennsylvania since the 1980s. In connection with his leadership of TF, Rivera killed Robert Barber in the summer of 2011 because he and others in the gang perceived Barber, who was a member of a rival gang, as a threat to TF’s control of narcotics sales in Brownsville. On the evening of August 22, 2011, Rivera observed Barber walking outside the tattoo shop run by Rivera, which was located at 361 Sutter Avenue in Brownsville. Rivera took a firearm that had been supplied by another member of TF, stood in the entrance to the tattoo shop, and shot Barber once, killing him. Rivera later was paid, in the form of money and heroin, for the murder by a fellow TF member.
The jury also found the defendant guilty of interstate prostitution and sex trafficking, including sex trafficking by force, fraud, or coercion, and sex trafficking of one or more minors, which activities were committed as part of TF’s illegal activities. At trial, two victims testified about their involvement with TF, including one victim who became involved with TF when she was 14 years old, and another who testified that she began working as a prostitute for the defendants when she was 15 years old.
The counts of conviction also included narcotics trafficking conspiracy, involving cocaine base, heroin, cocaine, and marijuana, and firearms offenses, including use of a firearm to cause the death of Robert Barber, as well as witness tampering and attempted obstruction of justice related to Rivera’s efforts to convince a witness to cease cooperating with the government.
The government’s case is being prosecuted by Assistant United States Attorneys Taryn Merkl, Alixandra Smith, and Michael Robotti.
The Defendants: PAUL RIVERA
Age: 49
Brooklyn, NYE.D.N.Y. Docket No. 13-149 (KAM)
Las Cruces Man Pleads Guilty to Participating in Doña Ana County Cocaine Trafficking RingRead the Press Release
ALBUQUERQUE – Juan Velazquez, 26, of Las Cruces, N.M., pled guilty today in federal court in Las Cruces, N.M., to distributing cocaine and participating in a conspiracy to distribute cocaine in Doña Ana County, N.M.
Velazquez was arrested in Sept. 2016, on an indictment alleging cocaine trafficking charges. The 18-count indictment is the result of a six-month investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, targeting a drug trafficking organization allegedly led by Joel Ibarra-Torres, 46, a Mexican national, that allegedly distributed cocaine in Doña Ana County.
The indictment alleged that Ibarra-Torres and seven co-conspirators, including several members of Ibarra-Torres’ family, participated in a cocaine trafficking conspiracy that existed from at least March 31, 2016 until Sept. 20, 2016. The indictment also alleged that Ibarra-Torres and two of his co-defendants participated in an international money laundering conspiracy. It also charged certain of the defendants with substantive cocaine trafficking offenses and with using telephones to facilitate their drug trafficking activity. The indictment included forfeiture provisions that seek the forfeiture of at least $31,620, constituting proceeds of the defendants’ alleged criminal activities, to the United States.
During today’s proceedings, Velazquez pled guilty to Count 1 of the indictment charging him with conspiracy to distribute cocaine and Counts 3, 5 and 8 of the indictment charging him with distributing cocaine. Velazquez admitted that from March 31, 2016 through Sept. 20, 2016, he agreed with his co-defendants to distribute cocaine. In entering the guilty plea, Velazquez admitted engaging in the following illegal conduct:
- On July 14, 2016, Velazquez arranged for a courier to pick up five ¼ kilogram packages of cocaine in El Paso, Texas, and deliver the drugs to him in Las Cruces;
- On July 25, 2016, Velazquez paid $10,000 to a source of supply in Mexico for cocaine he previously obtained from the source;
- On Aug. 25, 2016, Velasquez arranged for a courier to pick up six ¼ kilogram packages of cocaine in El Paso, and deliver the drugs to him in Las Cruces; and
- Velazquez distributed 250 gram quantities of cocaine to an individual working with law enforcement on the following three dates: June 8, 2016, July 14, 2016, and Aug. 25, 2016.
At sentencing, Velazquez faces a statutory mandatory minimum of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
On Dec. 20, 2016, Joel Ibarra, Jr., 21, of Sunland Park, N.M., pled guilty to Count 1 of the indictment charging him with conspiracy to distribute cocaine and Count 2 of the indictment charging him with money laundering. In entering the guilty plea, Ibarra admitted that from June 2016 through Sept. 20, 2016, he agreed with his co-defendants to distribute between 500 grams and 2 kilograms of cocaine which was smuggled into the United States from Mexico in ¼ kilogram packages and then delivered to other individuals. Ibarra further admitted that on Aug. 3, 2016, he transported $3,582 in drug proceeds through the Port of Entry in El Paso to deliver to the source of supply in Mexico. Under the terms of his plea agreement, Ibarra will be sentenced to 27 months in prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
On Dec. 19, 2016, Gabriela Castro, 24, a legal permanent resident from El Paso, pled guilty to Count 1 of the indictment charging her with conspiracy to distribute cocaine. In entering the guilty plea, Castro admitted that on Aug. 26, 2016, she attempted to smuggle approximately 250 grams of cocaine into the United States from Mexico in exchange for payment. At sentencing, Castro faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
The remaining co-defendants, with the exception of Ibarra-Torres, who has yet to be arrested and is considered a fugitive, have entered pleas of not guilty pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation leading to the indictment was conducted by the Las Cruces office of the DEA, the U.S. Border Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Terri J. Abernathy and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch office.
Kenmore Woman Sentenced on Gun 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 Lauren Frey, 57, of Kenmore, NY, who pleaded guilty to being a felon-in-possession of a firearm, was sentenced to time served (19 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that on May 26, 2015, the Kenmore Police Department received a tip about an alleged murder for hire plan. On May 27, 2015, Kenmore Police, with the assistance of the East Aurora Police Department, identified the victims and made them aware of the potential murder-for-hire plot. The victims included the ex-husband and his current wife of Frey’s co-defendant Deborah Arno.
On May 28, 2015, a search warrant was executed at Frey’s who was solicited by Arno to carry out the murders. Officers seized a number of items including multiple letters from Arno to Frye, photos of the intended victims, a diagram of their residence and a schedule of their activities. In one letter written by Arno to Frye, Arno stated “I am enclosing $6000. I will give you an additional $14,000 upon completion. A total of $20,000. A man, his description and address enclosed, is to be eliminated or hurt. He lives with 2 other people. Both expendable (if there is an accident).”
During the search of Frye’s residence, officers also seized two cellular telephones and three shotguns. The cellular telephones revealed extensive text messaging between Arno and Frye. Arno repeatedly implored Frye to get the murder done. In a series of text messages exchanged on May 24, 2015, Arno, using cryptic texts, inquired as to when Frye’s “friends” were going to commit the murder. Frye responded: “There suppose to get a hold of me today I want it done no bullshit.” Arno, using the nickname “Chickie,” responded: “Last day before everything changes! I need it done or else I am going to talk to them myself.” Frye responded: “That’s fine I told them today was the deadline or its gonna get harder.” Arno responded: “What is the big deal! 8 MONTHS! Today! Do it yourself I don’t give a (expletive).”
Deborah Arno was convicted and is scheduled to be sentenced on March 8, 2017.
Today’s sentencing is the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer, the East Aurora Police Department, under the direction of Chief Ronald Krowka, and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Jefferson County Man Sentenced for Firearm and Heroin OffensesRead the Press Release
On December 21, 2016, L C Richardson, a/k/a "L.C. Richardson," 38, of Mt. Vernon, was sentenced to federal prison for firearm and heroin offenses, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
Richardson, who had previously pled guilty to a three-count indictment charging one count of Unlawful Distribution of Heroin and two counts of Unlawful Possession of a Firearm by a Felon, was sentenced to 235 months imprisonment, 3 years supervised release, and was fined $900.00.
The offenses occurred on January 22, 2016, and January 25, 2016, in Mt. Vernon. Richardson received an enhanced sentence based on his classification as an Armed Career Criminal.
At the time of the offenses, Richardson was on supervised release for a 1998 federal conviction for conspiracy to distribute crack cocaine. The District Court revoked Richardson’s supervised release on the prior drug case and sentenced him to an additional term of 15 months imprisonment. The District Court ordered that Richardson’s two sentences be served consecutively, for a total term of 250 months imprisonment.
The investigation was conducted by the Jefferson County Sheriff’s Office, Mt. Vernon Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Jefferson County States Attorney’s Offices also assisted in the investigation.
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Illinois Man Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, and Chief Vincent DeMaio of the Clinton Police Department, announced that a federal grand jury in Bridgeport returned an indictment today charging ARTURO CASTRO, 52, of Wilmette, Illinois, with multiple child exploitation offenses.
As alleged in court documents and statements made in court, in approximately December 2013, CASTRO began communicating with a 15-year-old female in Connecticut through “Chess with Friends,” and online app. Using the app’s chat option, CASTRO asked the minor victim to send him naked photographs of herself, and subsequently enticed the minor victim to create videos depicting the minor victim engaged in sexually explicit conduct and send those videos to CASTRO. In March 2014, CASTRO traveled from Illinois to Connecticut and engaged in illicit sexual activity with the minor victim.
The indictment charges CASTRO with one count of coercion and enticement of a minor to engage in sexual activity, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; one count of travel in interstate commerce with intent to engage in illicit sexual activity with a minor, an offense that carries a maximum term of imprisonment of 30 years; and one count of receipt of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
CASTRO was arrested on December 13, 2016, in Wilmette, Illinois. In a detention hearing earlier today in U.S. District Court for the Northern District of Illinois, in Chicago, CASTRO was detained pending trial and ordered removed to the District of Connecticut.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations in New Haven and Chicago, and the Clinton (Conn.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Grand Jury Indicts Man for Sex Trafficking of Children, Production of Child Pornography and Drug ChargesRead the Press Release
NORFOLK, Va. – Joshua Manuel Treat, 20, of Elizabeth City, North Carolina, was indicted by a federal grand jury today on charges of sex trafficking of children, use of interstate commerce in furtherance of prostitution, production of child pornography, and distribution of drugs to a person under 21 years old.
According to the allegations in the indictment and other court documents, from September 26 to October 12, Treat posted Jane Doe, a 14-year-old girl, on an Internet website and advertised her for prostitution. In order to make Jane Doe more amenable to prostitution, Treat would administer heroin with a needle prior to Jane Doe’s appointments with customers.
Treat faces a maximum penalty of life 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the indictment was returned by the grand jury. Assistant U.S. Attorney Elizabeth Yusi is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-172.
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.
Gang Member Who Executed Man for Violating Mexican Mafia Rules Related to Drug Sales Sentenced to 24 Years in Federal PrisonRead the Press Release
LOS ANGELES – An El Sereno man and former 18th Street gang member has been sentenced to 24 years in federal prison after pleading guilty to a federal drug trafficking offense and admitting he murdered a man who had failed to pay “taxes” to the Mexican Mafia.
Eddie “Criminal” Garcia, 39, was sentenced on Monday by United States District Judge Michael W. Fitzgerald. Following the completion of the 288-month prison term, Garcia will serve eight years of supervised release.
During Monday’s sentencing hearing, Judge Fitzgerald said it was “difficult to imagine a more egregious crime in federal court” and that the defendant had “stolen hope” from the victim’s family.
Garcia pleaded guilty last year to participating in a conspiracy to distribute methamphetamine in a case that targeted the San Gabriel Valley-based Puente-13 gang. In addition to participating in drug trafficking activities that included collecting “taxes” or “rent” on behalf of the Mexican Mafia member who controlled Puente-13, Garcia admitted that he murdered another gang member who failed to make those extortion payments.
“This defendant killed another human being in cold blood to further his own criminal credentials and to further his drug trafficking career,” said United States Attorney Eileen M. Decker. “While he may have believed he could get away with murder, the hard work and dedication of law enforcement and prosecutors in my office ensured that he was held accountable. This case is a stark reminder of the devastating impact of gang violence on our community and the severe consequences that will result from participating in those criminal enterprises."
In a plea agreement with prosecutors, Garcia admitted that in 2006 he and two members of Puente-13 lured another gang member to an apartment complex, where Garcia executed the victim with a bullet to the head. Garcia was acting at the behest of leaders of Puente-13, who targeted the victim, a Valinda man named David Dragna, because Dragna was suspected of taking drug money that was intended for the Mexican Mafia.
At Monday’s sentencing, Dragna’s sister lamented the loss of her “best friend and the person who taught her how to ride a bike, drive a car, and went on [her] first date as a chaperone.” She described the devastation the murder caused her family who, for the past decade, had been desperately waiting for the day that they would see justice be done.
The Dragna murder was unsolved prior to a federal racketeering indictment that was unsealed in June 2010.
Two members of Puente-13 pleaded guilty to participating in Dragna’s murder. Angel “Smiley” Torres was sentenced to 186 months in prison, and Steven “Flaco” Nunez is currently serving a 10-year prison term.
The Mexican Mafia member who controlled the Puente-13 gang and his brother were sentenced to life in federal prison after being convicted at trial for their roles in leading a wide-ranging Puente-13 drug and murder conspiracy.
The investigation into the Puente-13 criminal enterprise and the murder of Dragna was conducted by the Drug Enforcement Administration and the Los Angeles County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Mack E. Jenkins of the Public Corruption and Civil Rights Section.
Former Portland Couple Pleads Guilty to Fraud and False Statement ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Marat Muslimov, 30, and Dziyana (Diana) Biruk, 29, both of Bronx, New York and formerly of Portland, Maine, pleaded guilty yesterday in U.S. District Court to charges arising out of sham marriages. Muslimov pleaded guilty to marriage and visa fraud conspiracies and making false statements to a government agency. Biruk pleaded guilty to visa fraud and making false statements to a government agency.
According to court records, from about September 2010 until about August 2011, Muslimov, a Russian citizen, conspired with a U.S. citizen to enter into a sham marriage so that he could become a lawful permanent resident (“LPR”), or green card holder. To that end, Muslimov submitted false documents and lied under oath to immigration authorities about his marriage to the U.S. citizen. Muslimov also falsely claimed to be living with the U.S. citizen, as husband and wife, in Portland, when, in fact, he and Biruk were living as a couple in Portland.
In June 2012, Biruk, a citizen of Belarus, made false statements in immigration documents on the basis of her sham marriage to another U.S. citizen so that she could become an LPR. Biruk falsely claimed that she and the U.S. citizen were living together, as husband and wife, in Hollis, Maine when, in fact, she was living with Muslimov in Portland.
Biruk faces up to 10 years in prison and a $250,000 fine on the visa fraud charge. The remaining charges against both defendants carry penalties of up to five years in prison and a $250,000 fine. Both will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of State, Diplomatic Security Service.
Fairfield Man Indicted on Child Pornography ChargesRead the Press Release
CINCINNATI – A federal grand jury has charged Richard Jay Sharp, 53, previously of Fairfield, Ohio, with one count of production and two counts of possession of child pornography in an indictment returned in Cincinnati.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Steve Francis, Acting Special Agent in Charge, U.S. Homeland Security Investigations, announced the indictment returned yesterday.
The indictment alleges that Sharp distributed child pornography in June 2015 and possessed pornography of children under the age of 12 in October 2015. Sharp allegedly sent the explicit material through Internet links in a conversation with undercover investigators and is also alleged to have downloaded child pornography on a work laptop with a thumb drive.
Distribution of child pornography is punishable by a range of five to 20 years in prison. Possession of child pornography carries a maximum potential sentence of 10 years for each count.
U.S. Attorney Glassman commended the investigation of this case by the Australian Federal Police and HSI, and Assistant United States Attorney Timothy D. Oakley, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you believe you have information related to Sharp’s alleged conduct, please contact Homeland Security Investigations at 866-347-2423.
Eight Loiza Boys Gang Members Plead Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Oneil Quinones, 31, Jorge Quinones, 39, Edwin Sanchez, 31, Angel Sanchez, 49, Raul Ramirez Vargas, 43, and Miguel Manso, 46, all of Buffalo, NY, and Jose Rivera, 35, of Niagara Falls, NY, pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin before Senior U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and $10,000,000 fine. In addition, Ellis Colon, 32, of Buffalo, pleaded guilty to misprision of a felony and faces up to three years in prison.Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the defendants were members of a gang known as the Loiza Boys which has been distributing heroin and cocaine on Buffalo’s West Side since at least 2006.
The defendants were charged in 2013 along with co-conspirators Oscar Romero and Josbel Garcia following a long term investigation that involved the interception of telephone calls of the defendants and the use of undercover drug purchases from some of those charged. During the investigation, law enforcement officers seized over 450 grams of heroin, three firearms, and over $70,000 in U.S. currency.
Oscar Romero has also been convicted and is scheduled to be sentenced on March 15, 2017. Josbel Garcia is scheduled to go to trial on January 3, 2017. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the culmination of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.The defendants are scheduled to be sentenced in March and April of 2017, all before Judge Skretny.
Eastern District of California U.S. Attorney’s Office Collects $49 Million and an Additional $3 Billion in Joint Efforts with the Justice Department in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
SACRAMENTO, Calif. —Phillip A. Talbert, U.S. Attorney for the Eastern District of California, announced today that his office collected $49 million in criminal and civil enforcement actions in Fiscal Year 2016 (the 12 months ending September 30, 2016), and an additional $3 billion in cases pursued jointly with other U.S. Attorney’s Offices and components of the U.S. Department of Justice.
“Our office is committed to aggressively pursuing monetary compensation in both criminal and civil matters from those who cause harm to the public,” said U.S. Attorney Talbert. “Each year we collect more money for victims and taxpayers than it costs to operate our office. This year’s financial recoveries are no different, and they reflect the strength of our commitment to ensuring that the public does not bear the costs of those who commit criminal and civil violations in our district.”
The office’s largest civil collections were from affirmative civil enforcement cases in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.
Multiple major recoveries arose from allegations of procurement fraud and grant fraud. Menlo Worldwide Services LLC, Con-way Inc. and their subsidiaries Estes Forwarding Worldwide LLC and Estes Express Lines, paid $13 million to resolve allegations under the False Claims Act that they overcharged the government in part by billing the cost of moving freight by air when it was actually shipped by ground. Bard College paid $4 million to resolve allegations of False Claims Act violations regarding the receipt and disbursement of federal student aid funds. E&A Protective Services-Bravo LLC and Eris Security Inc. paid $340,000, plus all net proceeds from the liquidation of their assets, to resolve allegations that they submitted false claims in connection with a contract to provide armed security guard services at IRS facilities in Fresno, California and Ogden, Utah.
Mary’s Gone Crackers Inc., a natural food company based in Gridley, paid $1.5 million and agreed to establish a corporate compliance program following an investigation into potential criminal violations of federal immigration laws.
The office also had multiple major recoveries arising from investigations of health care fraud and Controlled Substances Act violations. In June, Marshall Medical Center paid $5.5 million to settle allegations that it violated the False Claims Act through billing improprieties. CRC Health Group paid $1 million to settle claims that it violated the Controlled Substances Act. An oncologist and his wife who was theoffice administrator paid $300,000 to settle allegations that they improperly billed Medicare for chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor. The owner of the Script Life Pharmacy in Clovis paid $200,000 to settle civil claims for multiple violations of the Controlled Substances Act.
The office collected over $7.5 million this year for damages caused by wildfires in the Eastern District of California.
By far, the largest recovery through joint efforts with other arms of the Justice Department was $2.96 billion paid by Goldman Sachs Group Inc. in settlement of claims arising from Goldman’s marketing, underwriting, issuing, and selling residential mortgage-backed securities in the years leading up to the financial crisis.
In addition, working with partner law enforcement agencies, the office collected over $11 million in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The office also worked with the department’s other litigating divisions to enforce and collect criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in Fiscal Year 2016. Those collections are more than five times the appropriated budget for all 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period (approximately $2.93 billion).
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the Department remains committed to the well-being of our people and our nation.”
Derrell Lee of Atlanta Sentenced to 32 Months for Aggravated Identity Theft and Bank Fraud Involving TD Bank Branches in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Derrell Lee, 25, of Atlanta, Georgia, was sentenced today for his role in a scheme to defraud TD Bank through the cashing or attempted cashing of fraudulent checks in Vermont using the stolen personal information and bank account information of other TD Bank customers. Sitting in Brattleboro, Senior U.S. District Judge J. Garvan Murtha sentenced Lee to 32 months in prison followed by two years of supervised release.
According to court records, in August 2015, law enforcement determined that Kirsta Dixon, a teller at an Atlantic City, New Jersey TD Bank branch, had provided account information for approximately 34 customers to Laurel Wells in exchange for compensation. Subsequent to the misappropriation of the customer account information, Derrell Lee cashed or attempted to cash approximately $33,000 in fraudulent checks in New York State and Vermont. On each occasion, Lee used the names and account information associated with the compromised information from Dixon.
Between August 8 and August 13, 2015, Lee entered eight different TD Bank branches, wearing a distinctive purple suit and passing himself off as someone else in an attempt to cash checks for thousands of dollars. On August 8, 2015, Lee successfully cashed a $4700 check in Fishkill, New York; on the same date he tried unsuccessfully to cash a $4500 check in South Hills, New York. On August 12, 2015, Lee cashed a $4700 check in Montpelier, Vermont; he cashed a $4800 check in Woodstock, Vermont; attempted to cash a $4800 check in Waterbury, Vermont; and attempted to cash another $4700 check in Barre, Vermont. On August 13, 2015, Lee cashed a check under another name in Richmond, Vermont for $4800. Law enforcement arrested Lee later that day after he attempted to cash a $4800 check at the TD Bank in Williston, Vermont. At the time of his arrest, Lee had a check made out to one of the compromised accountholders in New Jersey, a withdrawal slip, a New Jersey driver’s license containing Lee’s photo and the accountholder’s identifying information, and a Capital One credit card in the accountholder’s name. The license and credit card were both determined to be fraudulent. Fingerprint analysis determined that both Lee and Wells had contact with the withdrawal slip.
Several Vermont State’s Attorney’s Offices initially charged Lee for his offenses at each of the banks. Lee posted bond in his state cases in August 2015, but was arrested in January 2016 on a warrant for failure to appear for court proceedings.
On January 29, 2016, Lee was charged federally with bank fraud and aggravated identity theft. On June 22, 2016, he pled guilty to both crimes, the latter requiring a mandatory two-year prison term consecutive to his sentence on the bank fraud charge. Criminal cases are pending against Kirsta Dixon and Laurel Wells in the Superior Court of New Jersey.
This matter was investigated by the U.S. Secret Service, with the assistance of the Williston, Richmond, Waterbury, Montpelier, Barre, Woodstock, and Atlantic City, New Jersey Police Departments. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Mr. Lee was represented by David L. McColgin of the Federal Defender’s Office in Burlington, Vermont.
Connecticut Man Sentenced to Two Years in Prison for Conspiracy to Obstruct Justice and Money Laundering in Connection with Scheme to Hide Assets from Two Federal Courts and the SECRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROBERT A. OLINS was sentenced yesterday to two years in prison for conspiracy to obstruct justice and money laundering. The charges relate to OLINS’s scheme to hide his assets – including his multimillion-dollar art and antiques collection (the “Art and Antiques Collection”), which was subject to liquidation to satisfy a $3.3 million disgorgement judgment entered by a federal court in California – from federal courts in New York and California, in connection with an enforcement proceeding brought by the Securities and Exchange Commission (the “SEC”), and to launder the money derived from the scheme. OLINS pled guilty on June 10, 2016, and was sentenced yesterday by United States District Judge Jesse M. Furman.
U.S. Attorney Preet Bharara said: “Robert Olins deceived and hid assets from two federal courts, a court-appointed receiver, and the SEC. He repeatedly lied to the court, and, rather than satisfy court judgments as required, he used the proceeds to pay for personal luxuries.”
According to the Indictment and statements made during yesterday’s court proceedings:
On February 25, 2011, a federal district court in California (the “California Court”) entered a judgment against OLINS, ordering him to pay disgorgement to the SEC in the amount of $3.3 million (the “Disgorgement Order”). On July 27, 2011, the SEC filed an action in federal court in the Southern District of New York (the “New York Court”) registering the Disgorgement Order and requesting the appointment of a receiver to liquidate the Art and Antiques Collection and to apply the proceeds of such liquidation toward the Disgorgement Order. On May 29, 2012, the New York Court issued an order (the “Receiver Order”) appointing American Bank and Trust Company (“AB&T”) as Receiver, as AB&T had a first and prior security interest in the Art and Antiques Collection. The Receiver Order prohibited OLINS, as well as any other person or entity with “possession, custody, or control” of any item from the Art and Antiques Collection, from engaging in any form of side deal, self-help, set-off, or transaction not approved by the New York Court.
From August 2011 through August 2015, OLINS engaged in a conspiracy to obstruct the administration of justice in the New York Court and the California Court, by, among other misrepresentations, making false statements in order to mislead those courts concerning OLINS’s financial condition, and to fraudulently obtain court approval for certain transactions concerning the Art and Antiques Collection. OLINS then received approximately $657,000 from the sale of items in the Art & Antiques Collection that should have gone to the SEC and AB&T, and instead used the proceeds for his own purposes, including to make payments toward the purchase of additional antiques, including a $695,000 set of antique wall brackets. In June 2012, OLINS directed that certain monies he derived from the scheme be wired to a bank account in the Isle of Man, for the purpose of promoting his unlawful conduct of hiding his assets from the Courts, the SEC, and AB&T. Once the money was received in the Isle of Man, OLINS then directed that the money be transferred back into the United States and used it to pay personal expenses. OLINS then purposely concealed his receipt of the $657,000 from the California Court, by not including it on a financial affidavit he was required to file with that court.
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In addition to the prison sentence, OLINS, 60, was sentenced to two years of supervised release. The Court further ordered that OLINS forfeit $160,000 and his interest in the antique wall brackets, and pay $657,000 in restitution to the Receiver.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the United States Postal Inspection Service, and thanked the SEC for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Christine I. Magdo and Andrea M. Griswold are in charge of the prosecution.
Clear Channel Outdoor and Fairway Media Group Required to Divest Billboards in Order to Complete Asset Swap TransactionRead the Press Release
The Department of Justice announced today that it will require Clear Channel Outdoor Holdings, Inc. and Fairway Media Group, LLC to divest billboards in Atlanta and Indianapolis in order to proceed with their $150 million swap of outdoor advertising assets located in multiple U.S. markets.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia challenging the proposed transaction, and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department said that without the required divestitures, advertisers who purchase outdoor advertising on billboards located in the Atlanta and Indianapolis metropolitan markets would likely face higher prices and lower quality services.
“The loss of competition between Clear Channel and Fairway as a result of the proposed transaction would have led to higher prices for advertisers who rely on billboards to reach consumers located within the Atlanta and Indianapolis metropolitan markets,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that advertisers will continue to enjoy the benefits of competition when they seek to place advertisements on billboards in these areas.”
According to the department’s complaint, Clear Channel and Fairway own and operate billboards in the Atlanta and Indianapolis metropolitan areas that are located in close proximity to each other and therefore constitute attractive competitive alternatives for advertisers seeking to reach consumers in these areas. The proposed swap transaction, in which Clear Channel would acquire Fairway billboards in Atlanta in exchange for Clear Channel billboards in Indianapolis and certain other areas, would eliminate substantial head-to-head competition between Clear Channel and Fairway for the business of local and national advertisers seeking to reach customers within the Atlanta and Indianapolis metropolitan markets, resulting in higher prices and lower quality services to these advertisers.
Under the terms of the proposed settlement, Clear Channel and Fairway must divest 13 billboard structures in Indianapolis to Circle City Outdoor, LLC, and 44 billboard structures in Atlanta to Link Media Georgia, LLC.
Clear Channel is a Delaware corporation with its headquarters in San Antonio, Texas. Clear Channel is one of the largest outdoor advertising companies in the United States and reported consolidated revenues of $2.8 billion in 2015.
Fairway is a Delaware limited liability company with its headquarters Duncan, South Carolina. Fairway owns and operates outdoor advertising displays in 15 states. Fairway had revenues of approximately $110 million in 2015.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Acting Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Clear Channel Asset Preservation Stipulation & Order
Clear Channel Complaint
Clear Channel Competitive Impact Statement
Clear Channel Explanation
Clear Channel Proposed Final Judgement
Buffalo Man Pleads Guilty to 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 Terrance Williams, 45, of Buffalo, NY, pleaded guilty to obtaining controlled substances through fraud, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of four years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between December 2013 and April 2015, co-defendant Brandon Coburn, a licensed nurse practitioner who is legally authorized to prescribe controlled substances, provided fraudulent Fentanyl prescriptions to Williams and nine other co-defendants. Those prescriptions, however, were not used for a legitimate medical purposes and instead were filled by Williams and others and sold on the street in the Buffalo area. Willaims filled a total of 28 prescriptions including oxycodone, oxymorphone and fentanyl.
Williams is the second of the 11 defendants charged in this investigation to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division.
Sentencing is scheduled for April 24, 2017, before Judge Arcara.
Armed Career Criminal Sentenced to 15 Years on Federal Firearms ChargeRead the Press Release
HARRISBURG – The United States Attorney's Office for the Middle District of Pennsylvania announced that Reginald Barton, age 30, of Harrisburg, Pennsylvania was sentenced today to 15 years’ imprisonment by Chief United States District Court Judge Christopher C. Conner for possessing a firearm as a convicted felon.
According to United States Attorney Bruce D. Brandler, Barton pleaded guilty to possession of a firearm by a convicted felon in July 2016, as a result of a traffic stop in Harrisburg where Barton fled on foot from the police, fired one shot and then tossed the gun, a .22 caliber EIG revolver. Officers from the Harrisburg Bureau of Police caught Barton after a brief foot chase, recovered the firearm and determined that Barton possessed it after having previously been convicted of several felony offenses. As a result of his prior convictions, Barton was determined to be an armed career criminal subject to a minimum mandatory 15-year term of imprisonment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Bureau of Police. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was 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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Airline Pilot Who Held Global Entry Card Admits Smuggling $195,736 Cash Through Newark AirportRead the Press Release
NEWARK, N.J. – A United States commercial airline pilot who held a U.S Customs and Border Protection (CBP) Global Entry Card today admitted smuggling $195,736 in undeclared currency into the country at Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.
Anthony Warner, 55, of Dallas, Texas, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with bulk cash smuggling.
According documents filed in this case and statements made in court:
Global Entry is a CBP program that allows expedited clearance upon arrival in the United States for pre-approved travelers who have been determined to be low-risk. Pre-approval must be completed before enrollment, and the process includes a background check and an in-person interview. At airports, program members proceed to Global Entry kiosks, present their machine-readable passport or U.S. permanent resident card, place their fingers on the scanner for fingerprint verification, and complete a Customs verification. The kiosk issues the traveler a transaction receipt and directs the traveler to baggage claim and the exit.
When Warner arrived at Newark Liberty International Airport on Jan. 10, 2016, the Global Entry computer system was not functioning, so he presented his customs declaration to a CBP officer. CBP’s screening determined that he was carrying a laptop-style bag that contained $195,736 in United States currency wrapped in newspaper. He also had 10 rings, four sets of earrings, and other assorted jewelry of undetermined value.
Warner’s possession of currency was contrary to the statements in his customs declaration and verbal statements that he made to CBP. Because of this, Warner was arrested by special agents of Immigration and Customs Enforcement’s Homeland Security Investigations.
The charge to which Warner pleaded guilty carries a maximum punishment of five years in prison and forfeiture of all property involved in the offense. In his plea agreement, Warner agreed to forfeit the $195,736 in undeclared U.S. currency. Sentencing is scheduled for April 18, 2017.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, and U.S. Customs and Border Protection, under the leadership of Robert E. Perez, Director, New York Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit in Newark.
Defense counsel: Steven Altman and Jeffrey Altman Esqs., New Brunswick, New Jersey
21 December 2016
Zwolle man pleads guilty to methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced that a Zwolle man pleaded guilty Monday to possessing with intent to distribute methamphetamine and possessing multiple firearms.
Heath Meshell, 33, of Zwolle, La., pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime. The plea will become final when accepted by U.S. District Judge Elizabeth E. Foote. According to the guilty plea, law enforcement agents searched Meshell’s home on April 12, 2016. The agents found more than 1,700 grams of methamphetamine, a small number of prescription pills, digital scales and $1,585. They also found a 9 mm rifle, 9 mm pistol, a 410 shotgun and assorted rounds of ammunition.
Meshell faces 10 years to life in prison and a $10 million fine for the drug count and not less than five years and a $250,000 fine for the firearms count. He also faces at least five years of supervised release and forfeiture of the firearms and cash seized in the case. A sentencing date of February 20, 2017 was set.
The ATF and the DEA conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Worcester Woman Sentenced for Stealing IdentitiesRead the Press Release
BOSTON – A Worcester woman was sentenced yesterday in U.S. District Court in Worcester in connection with filing false tax returns.
Lydia Torres, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison, one year of supervised release and ordered to pay restitution of $393,093 to the Internal Revenue Service. In August 2016, Torres pleaded guilty to conspiracy to file false claims and identity theft
Beginning around 2010 and 2011, Torres received lists of personal identifying information including, among other things, the names and social security numbers of real people, many of whom resided in Puerto Rico. In addition, she received copies of Puerto Rican tax withholding statements, Social Security cards and Puerto Rican identification cards. Torres used this information to prepare false tax returns in the names of these individuals – making it appear as though the individuals resided and worked in one of the fifty states. In some cases, Torres inserted false dependents on the tax returns to increase the amount of the fraudulent tax refund. She also used this personal identifying information to prepare and file false and fraudulent tax returns that included false Schedule C businesses. Torres submitted these false tax returns to the Internal Revenue Service in order to obtain false tax refund checks. In total, Torres submitted false returns seeking refunds in the amount of approximately $764,000, and the IRS paid out $393,093. Torres received a portion of those funds for her part in the fraud. At least 130 victims had their identities stolen in connection with this scheme.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Karin M. Bell, Chief of Ortiz’s Worcester Branch Office, prosecuted the case.
Wilkes-Barre Man Indicted for Computer HackingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Justin Bodnar, age 27, of Wilkes-Barre, Pennsylvania, was indicted on December 20, 2016, by a federal grand jury for intentionally accessing protected computers without authorization.
According to United States Attorney Bruce D. Brandler, the indictment charges Bodnar with an incident in 2013 in which Bodnar allegedly hacked a computer and thereby obtained the e-mails of another individual which he then attempted to sell. The indictment also charges Bodnar with causing intentional damage to a computer stemming from multiple incidents in 2012 in which Bodnar allegedly hacked the computers of his former employer and caused damage to those computers.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Waterville Man Sentenced to 10 Months for Selling Counterfeit CoinsRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mwashuma M. Sithole, 32, of Waterville, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 months in prison and three years of supervised release for selling counterfeit coins. He pleaded guilty to the crime on May 9, 2016.
Court records show that the defendant began ordering counterfeit Morgan dollars online in May 2014. The Morgan dollar is a United States dollar coin minted from 1878 to 1904 and then again in 1921. The coins that the defendant ordered and received were offered as counterfeits and made in China. The defendant paid about $2 for each coin. The coins resembled genuine Morgan dollars in appearance, design, and weight.
From 2013 thought 2015, the defendant sold and pawned about $12,000 worth of counterfeit Morgan dollars. He knew that the coins were counterfeit but told the buyers that the coins were genuine Morgan dollars. He sold and pawned coins in Augusta, Newport, Farmington, Lewiston, and South Portland. Law enforcement officers executed a warrant at the defendant’s residence on January 22, 2015. They seized about 1200 counterfeit Morgan coins that belonged to the defendant.
The investigation was conducted by the Augusta, Waterville, Auburn, Lewiston, South Portland and Newport Police Departments; the Franklin County Sheriff’s Office; the Maine State Police, and the U.S. Secret Service.
Waterford Man Charged with Child Exploitation OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RICHARD BRUNO, 46, of Waterford, with one count of attempted enticement of a minor to engage in illegal sexual activity, and one count of production of child pornography.
The indictment alleges that, from April 8, 2016 to May 5, 2016, BRUNO used a cellular phone and internet-based messaging and photograph sharing services to attempt to entice a minor under 18 years of age to engage in sexual activity. The indictment further alleges that, from November 2015 through May 2016, BRUNO enticed or coerced a minor to engage in sexually explicit conduct for the purpose of producing a video depiction of such conduct.
If convicted, BRUNO faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life for attempted enticement of a minor, and a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life for production of child pornography.
BRUNO has been on in state custody since May 19, 2016, when he was arrested on related state charges.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police and New London Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
To report cases of child exploitation, please visit www.cybertipline.com.
United States Attorney’s Office Recovers over $85,000,000 in Fiscal Year 2016Read 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 the Western District of New York Office recovered in Fiscal Year (FY) 2016, $85,638,249 as a result of wide‐ranging efforts in criminal, civil and asset forfeiture cases. As a result, $5,307,448 was given to victims of crime in the past year, while $2,066,693 was provided as aid to state and local law enforcement agency partners who worked hand in hand with the office on criminal cases, and more than $3,326,000 was collected in fines. As part of an effort to combat fraud, waste, and abuse directed against the government, the Office collected $74,053,099 in affirmative civil enforcement actions, which include proceedings involving health care fraud, government fraud, foreclosures, and more.
As Acting U.S. Attorney Kennedy characterized it, “while our Office is dedicated to the pursuit of justice at all costs, the fact that our Office took in $85,638,249—an amount which represents more than eight-and-a-half times the amount of money it took to operate our entire Office for the year—shows that we are doing so in what by any measure must be considered a remarkably efficient and cost-effective manner. Considering the fact that our Office employs about 108 people, our total recoveries equate to each employee in the Office individually recovering about $800,000.00 on behalf of the government, I’d say the American public is getting an astounding return on its investment. Not only did we succeed in recovering all of this money for the American taxpayers civilly, we did so while discharging, in the same exemplary manner, our obligation to enforce the criminal laws of the United States and to protect its citizens.”
Kennedy further noted that over the past seven years, the United States Attorney’s Office for the Western District of New York has recovered and returned to victims, taxpayers and police agencies more than $407,000,000:
Fiscal Year 2010: $31,800,000
Fiscal Year 2011: $29,300,000
Fiscal Year 2012: $53,600,000
Fiscal Year 2013: $94,220,000
Fiscal Year 2014: $25,000,000
Fiscal Year 2015: $88,000,000
Fiscal Year 2016: $85,600,000In addition to recovering funds, a total of 80 dangerous firearms and 30 firearm clips, along with ammunition were forfeited in FY 2016 as instrumentalities of criminal conduct in drug and violent gang cases, while 28 computers and electronic media devices—most related to child exploitation cases—were also forfeited.
“From big banks that originated and underwrote federally insured mortgage loans knowing that the borrowers failed to meet certain requirements, to defense contractors who supplied the military with counter-measure flares that used unapproved components, and from drug dealers, to unscrupulous businesspersons, to child predators,” Kennedy said, “our employees worked tirelessly, with our partners in law enforcement, to search high and low for those who sought to divert public funds or misuse property for their personal benefit.” Kennedy specifically credited the work done by his Office’s Asset Forfeiture and Financial Litigation Unit, under the leadership of Chief Richard D. Kaufman and AUSA Kevin D. Robinson, and his Office’s Affirmative Civil Enforcement Unit, under the leadership of Civil Chief Mary Pat Fleming and AUSA Kathleen A. Lynch.
For further information, the United States Attorneys’ Annual Statistical Reports can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.
United States Announces Settlement of Safe Drinking Water Act Violations at New York State ParksRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, announced today the filing of a complaint against the State of New York; New York State Office of Parks, Recreation and Historic Preservation (“OPRHP”); and the Palisades Interstate Park Commission (“Commission”). A Consent Judgment has been lodged to resolve the allegations in the complaint that Defendants failed to close Large Capacity Cesspools located in New York State parks in violation of the Safe Drinking Water Act.
The complaint alleges that the Defendants violated the Safe Drinking Water Act (“SDWA”) in their continued ownership and operation of 54 Large Capacity Cesspools (“Prohibited LCCs”) at various New York State parks for years beyond the SDWA regulatory deadline by which they were required to close them. LCCs are cesspools that receive untreated sanitary waste, including human excreta, which have an open bottom or perforated sides, and have the capacity to serve 20 or more persons a day. Such untreated waste is high in harmful nutrients, such as nitrogen, that can compromise ground and surface water quality. Nutrient pollution of the ground and surface waters in and surrounding Suffolk County is a longstanding problem that threatens the area’s water quality and ecosystem.
Congress enacted the SDWA to protect the nation’s drinking water sources, including the regulation of Large Capacity Cesspools to prevent them from contaminating underground sources of drinking water. Under the SDWA regulations, owners and operators of LCCs were required to close them by April 5, 2005. The Complaint alleges that Defendants failed to close the Prohibited LCCs by April 5, 2005, and that the Prohibited LCCs, primarily located at Defendants’ comfort stations, continued to operate after April 5, 2005. The majority of the Prohibited LCCs are located in Defendants’ parks on Long Island.
Many of our area’s public water systems rely on underground sources of water for their supply. Underground injection wells, including cesspools, pose a risk to the public because they can contaminate underground drinking water sources and the public water systems that use those sources. Thirty-six of the Prohibited LCCs are above the Nassau/Suffolk County Sole Source Aquifer, which supplies most of the drinking water for the population of Long Island. Nine of the Prohibited LCCs, which are located in Broome and Orange Counties, are above the Clinton Street-Ballpark and the Ramapo Sole Source Aquifers, which supply most of the drinking water for the populations of the Broome and Orange County areas.
Under the Consent Judgment, Defendants will close the Prohibited LCCs or convert them to lawful non-LCC uses by July 2019. The estimated cost of these measures is $8,800,000. Most of the Long Island Prohibited LCCs will be closed by September 2017 and the remaining Prohibited LCCs on Long Island will be closed by September 2018. Defendants have already implemented certain measures to achieve compliance with the SDWA, including closing six of the Prohibited LCCs and submitting closure plans for 29 of the remaining Prohibited LCCs. The Consent Judgment also requires Defendants to pay a $150,000 civil penalty.
In addition, under the terms of the settlement, Defendants will undertake Supplemental Environmental Projects with a total estimated value of $1,020,000 that are intended to reduce the quantity of nutrients harmful to water quality, including nitrogen, from entering the local groundwater at seven of Defendants’ Long Island parks. At Robert Moses State Park, Sunken Meadow State Park, Wildwood State Park, and Caumsett State Historic Park, Defendants will install urine separation systems that divert the collected urine to a wastewater treatment facility for treatment, rather than discharging it into the ground. At Connetquot River State Park Preserve and Hallock State Park, Defendants will install nitrogen reducing technology for sanitary waste. At Captree State Park, Defendants will: (1) install a constructed wetland for sanitary waste treatment to benefit the Main Comfort Station and Restaurant, (2) install green technology site improvements for stormwater treatment, and (3) retrofit the existing stormwater drainage facilities with a bioretention system.
“The United States brought this action to remedy long-standing violations of the Safe Drinking Water Act and to protect New York’s drinking water from harmful nutrient pollution that poses a risk both to public health and the natural environment,” said United States Attorney Capers. “This office will continue to vigorously enforce violations of the Safe Drinking Water Act to protect the public from contamination of its water supply.”
"Public parks and water pollution don't go together," said EPA Regional Administrator Judith A. Enck. "After years of being out of compliance with federal law, New York State will finally close the numerous cesspools found in state parks, helping protect groundwater from nitrogen and other pollutants."
The action is entitled United States v. State of New York, et al., Civil
Action No. 2:16-CV-6989 (Wexler, J.), (Shields, M.J.). Following a 30-day public comment period and review of any comments received, the United States will determine whether to move the Court to enter the consent judgment.
Assistant United States Attorney Matthew Silverman is in charge of the litigation, with assistance from Lauren Fischer, Assistant Regional Counsel, Water and General Law Branch, EPA Region 2, Nicole Kraft, Section Chief, Water Compliance Branch, EPA Region 2, and Lisa Kim Pelcyger, Environmental Engineer, Water Compliance Branch, EPA Region 2.
UH Professor Convicted in Relation to Massive Synthetic Narcotics CaseRead the Press Release
HOUSTON – A 37-year-old resident of Sugar Land has entered a guilty plea to aiding and abetting an unlicensed money transmitting business, announced U.S. Attorney Kenneth Magidson.
Law enforcement identified Omar Al Nasser during a multi-year, multi-agency federal investigation into one of the largest synthetic cannabinoid trafficking enterprises in the country. The investigation revealed Al Nasser was as an associate of one of the primary distributors of synthetic cannabinoids in the Southern District of Texas. As part of his plea today, Al Nasser admitted he was paid to wire more than $200,000 in U.S. currency from a bank in the United States to accounts in the country of Jordan.
Al Nasser has a doctoral degree in business administration with an emphasis in finance which he earned from the University of Texas-Pan America in 2009. He is listed as an associate professor of finance in the University of Houston system.
U.S. District Judge Gray Miller accepted the guilty plea and set sentencing for Feb. 16, 2017. At that time, Al Nasser faces up to five years in prison and a possible $250,000 fine.
The Drug Enforcement Administration and Houston Police Department conducted the investigation along with the Bureau of Alcohol, Tobacco, Firearms and Explosives and Internal Revenue Service – Criminal Investigation with the assistance of the U.S. Postal Inspection Service, Conroe Police Department, sheriff’s offices in Harris and Polk counties, Texas Alcoholic Beverage Commission and the Montgomery County District Attorney’s Office. Assistant U.S. Attorneys John Jocher and Nancy Herrera are prosecuting the case.