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Friday 28 October 2016
Loomis Man Sentenced to over 2 Years in Prison for Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Aleksandr Kuzmenko, 33, of Loomis, was sentenced today by United States District Judge Garland E. Burrell Jr. to two years and three months in prison and ordered to pay $573,332 in restitution to the IRS for conspiracy to defraud the United States, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Kuzmenko worked as a tax preparer at VK Tax Services in Citrus Heights in 2009. Between February 2009 and November 2009, Kuzmenko conspired with others to file approximately 90 fraudulent tax returns with the Internal Revenue Service. The tax returns fraudulently claimed the First-Time Homebuyer Credit, which was worth as much as $7,500. The refunds for the fraudulent claims were electronically deposited into various bank accounts controlled by Kuzmenko’s co-defendants. The fraudulent claims totaled approximately $695,724, of which the IRS paid approximately $573,000.
This case was the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case.
Co-defendants Peter Kuzmenko and Valeriy Nikitchuk have pleaded guilty to conspiring to defraud the United States and they are currently scheduled to be sentenced on December 2, 2016. Co-defendant Arsen Muhtarov has entered a plea of not guilty. The charges against him are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leader of Baltimore County Heroin Distribution Organization Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Adrian Spence, a/k/a “AJ,” and “SP,” age 28, of Baltimore, Maryland, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin. Judge Bennett also entered an order requiring Spence to forfeit $26,320 seized from his residence during the execution of a search warrant.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, law enforcement began an investigation into a drug conspiracy involving the distribution of heroin in the Baltimore Metropolitan area. The investigation revealed that Adrian Spence was a leader of a heroin distribution ring in Baltimore County. Evidence revealed numerous calls in which Spence: coordinated drug sales in and around the Baltimore County area; directed his codefendant to “start stomping on it” and “crushing it down,” referring to cutting the heroin for a subsequent sale; and attempted to secure sources of heroin for later re-sale. On July 31, 2015, law enforcement executed a search warrant at Spence’s residence and recovered: $26,320 in cash; cellular phones; and other items.
Spence admitted that the amount of heroin reasonably foreseeable to him in, and in furtherance of, this conspiracy amounts to between one and three kilograms of heroin. Spence also admitted that he was an organizer and leader of a drug trafficking organization of more than five individuals.
United States Attorney Rod J. Rosenstein praised HSI-Baltimore, the ATF, Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorneys’ Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Jason D. Medinger, Christina Hoffman, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Lake County Man Sentenced to Life in Prison Plus 10 Years for Shooting and Killing Store Clerk During RobberyRead the Press Release
OAKLAND –Jonathan Mota was sentenced today to life in prison plus 10 years for murder caused by a firearm; Hobbs Act robbery; and use and carry of a firearm during and in relation to that robbery, announced Acting U.S. Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The charges stemmed from the murder of Forrest Seagrave during the robbery of a convenience store in 2013.
On July 6, 2016, following a four-week jury trial before the Honorable Jon S. Tigar, U.S. District Judge, a federal jury convicted Mota, 34, of Lake County, Calif., of charges arising from the convenience store robbery. Evidence at trial showed that on January 18, 2013, Mota, a convicted felon, parked a stolen vehicle in the vicinity of the Mount Konocti Gas & Mart in Kelseyville, Calif., to rob it. Mota left a passenger in the vehicle and wore a hoodie, ski mask, baggy jeans, and gloves in an attempt to hide his identity. Store clerk Forrest Seagrave was mopping up and preparing to end his shift when Mota arrived brandishing a silver handgun. Seagrave did not know Mota was armed when Seagrave attempted to interrupt the robbery. Mota shot Seagrave in the neck, causing Seagrave to bleed to death on the floor of the convenience store. Video footage from the store cameras showed Mota stepping over Seagrave’s body to grab the money from the cash register.
On June 27, 2013, a federal grand jury indicted Mota and charged him with Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a); use and carry of a firearm during and in relation to the Hobbs Act robbery, in violation of Title 18 U.S.C. § 924(c); and use of the firearm resulting in murder, in violation of 18 U.S.C. § 924(j). On July 6, 2016, the jury convicted Mota of all three counts in the indictment.
Today’s sentence was handed down by Judge Tigar.
Assistant United States Attorneys Damali Taylor and Sarah Hawkins prosecuted the case, with assistance from Kurt Kosek. The prosecution is the result of an investigation led by the ATF and the Lake County Sheriff’s Office.
Jamaican National Arrested in Alleged Scheme to Defraud Elderly Illinois CoupleRead the Press Release
Ricardo Fredrick Smith a/k/a “Rickey Ricardo Smith” a/k/a “Ricky”, 38, from St. James Parish, Jamaica, has been charged with Mail Fraud, Conspiracy to Commit Mail Fraud, and Money Laundering. The charges are contained in a Complaint unsealed today in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about October 2015, Smith was working at a local lawn care company in the Cedar Rapids area and opened a bank account at a local financial institution. A week later he allegedly added a co-conspirator to the account as a joint owner. The co-conspirator then allegedly deposited $13,000 into this joint account by means of a check drawn on an account of an elderly Illinois woman. Smith and the co-conspirator allegedly received the $13,000 through a mail fraud scheme in which they were allegedly participating. In the following weeks, Smith and the co-conspirator allegedly made a series of cash withdrawals from the account.
If convicted on all charges, Smith faces a possible maximum sentence of 60 years’ imprisonment, a $750,000 fine or not more than twice the gross gain or twice the gross loss from the offenses, whichever is greater, $300 in special assessments, and 3 years of supervised release following any imprisonment.
Smith appeared today in federal court in Cedar Rapids and was held without bond. Smith’s next appearance for a detention hearing is on November 2, 2016, at 4:30 p.m., in Cedar Rapids.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-mj-265.
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Jacksonville Man Indicted for Promoting, Managing, Establishing, and Carrying on Prostitution BusinessRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging John R. Biggerstaff (39, Jacksonville) with using a facility of interstate commerce to promote, manage, establish, and carry on a prostitution business. If convicted on all counts, he faces a maximum penalty of five years in federal prison.
According to the indictment, between June 30, 2016 and July 31, 2016, Biggerstaff promoted, managed, established, and carried on a business enterprise that involved prostitution, in violation of applicable Florida laws. The indictment alleges that Biggerstaff used a facility of interstate commerce, a cellphone, to commit the offenses.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office Integrity Unit. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
Jack Weichman Defendants Entered Pleas of Guilty TodayRead the Press Release
HAMMOND – United States Attorney David A. Capp announced that all defendants in the United States v. Weichman case entered guilty pleas today before Chief Judge Philip Simon.
The following entered pleas of guilty:
- Jack Weichman, 64, of Dyer, Indiana –two counts of bank fraud, one count of concealment of assets, one count of wire fraud and one count of filing a false tax return.
- Ari Weichman, 36, of Schererville, Indiana-one count of bank fraud
- James Schaefer, 66, of Lowell, Indiana-one count of bank fraud
- William Bercaw, 69, of Munster, Indiana-one count of wire fraud
According to documents in this case, Jack Weichman, a local accountant and business owner, has entered guilty pleas to two counts of bank fraud, one count of concealing assets during a bankruptcy, one count of wire fraud, and one count of filing a false federal income tax return. Weichman, the owner of an accounting practice that bears his name, Weichman & Associates, as well as a medical billing operation known as MMDS, stole $10,000 from one of his physician clients during a bank fraud scheme that saw at least $660,000 illegally removed from that client’s account. Weichman also admitted hiding an almost $2 million dollar tax debt to the IRS from another bank at a time when he was seeking to renew a loan from that bank. Weichman also admitted hiding hundreds of thousands of dollars from his bankruptcy creditors in January 2011, and removing $95,000 from a client’s retirement fund on April 25, 2012, by having one of his employees pretend to be the client during a phone call to the retirement fund. Finally, Weichman acknowledged that he failed to report to the IRS at least $100,000 in income.
Weichman’s employee, William Bercaw, entered his own guilty plea to one count of wire fraud relating to the $95,000 illegally removed from a client’s retirement fund account on April 25, 2012.
Another Weichman employee, James Schaefer, along with Weichman’s son Ari Weichman, entered separate guilty pleas to a one count information charging them with providing false information to US Bancorp in an effort to secure a loan for Jack Weichman’s business, MMDS, by representing to US Bancorp that Ari Weichman was the owner and president of MMDS.
Sentencing for all defendants is set for January 27, 2017.
This case was investigated by the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General and Internal Revenue Service-Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Diane L. Berkowitz and Maria N. Lerner.
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Investigation into the Death of Mikhail Lesin Has ClosedRead the Press Release
Manner of Death Determined an Accident
The Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia, with assistance from the FBI, have concluded a comprehensive investigation into the death last year of Mikhail Lesin, 57, a Russian political figure, media executive and adviser to Vladimir Putin, the President of Russia. As a result of the almost year-long investigation, the Chief Medical Examiner of the District of Columbia has amended Lesin’s manner of death from “undetermined” to “accident” with acute ethanol intoxication as a contributory cause of death. The investigation has now been closed.
Based on evidence gathered during the investigation, Lesin entered his room at the Dupont Circle Hotel for the final time at about 10:48 a.m., on Wednesday, Nov. 4, 2015, after days of excessive consumption of alcohol. Based on the evidence, including video footage and witness interviews, Lesin entered his hotel room on the morning of Wednesday, Nov. 4, 2015, after days of excessive consumption of alcohol and sustained the injuries that resulted in his death while alone in his hotel room. He was found dead late on Thursday morning, Nov. 5, 2015.
After review of the video footage and new evidence developed from the investigation, the Chief Medical Examiner has determined that Lesin died as a result of blunt force injuries to his head, with contributing causes being blunt force injuries of the neck, torso, upper extremities and lower extremities, which were induced by falls, with acute ethanol intoxication.
Investigation into the Death of Mikhail Lesin Has Closed; Manner of Death Determined an AccidentRead the Press Release
WASHINGTON - The Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia, with assistance from the FBI, have concluded a comprehensive investigation into the death last year of Mikhail Lesin, a Russian political figure, media executive, and adviser to Vladimir Putin, the President of Russia. As a result of the almost year-long investigation, the Chief Medical Examiner of the District of Columbia has amended Mr. Lesin’s manner of death from “undetermined” to “accident” with acute ethanol intoxication as a contributory cause of death. The investigation has now been closed.
Based on evidence gathered during the investigation, Mr. Lesin, 57, entered his room at the Dupont Circle Hotel for the final time at about 10:48 a.m., on Wednesday, November 4, 2015, after days of excessive consumption of alcohol. Based on the evidence, including video footage and witness interviews, Mr. Lesin entered his hotel room on the morning of Wednesday, November 4, 2015, after days of excessive consumption of alcohol and sustained the injuries that resulted in his death while alone in his hotel room. He was found dead late on Thursday morning, November 5, 2015.
After review of the video footage and new evidence developed from the investigation, the Chief Medical Examiner has determined that Mr. Lesin died as a result of blunt force injuries to his head, with contributing causes being blunt force injuries of the neck, torso, upper extremities, and lower extremities, which were induced by falls, with acute ethanol intoxication.
Indiana Man Pleads Guilty to Distributing Information on ExplosivesRead the Press Release
Marlonn Hicks, 30, of Crown Point, Indiana, pleaded guilty to distributing information regarding the manufacture and use of explosives, with the intent that the information be used for and in furtherance of a crime of violence.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney David Capp of the Northern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office announced the charges.
According to the documents in this case, Hicks allegedly communicated online with multiple individuals who were cooperating with the government. During these communications, Hicks allegedly expressed a desire to travel to territory under the control of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Within days of the Orlando, Florida terrorist attack, Hicks indicated that he would likely die in the U.S. and subsequently discussed the means by which he planned to carry out an attack within the U.S. During one of these online communications, Hicks sent a government source a document containing detailed instructions on how to make explosives. When Hicks sent the document to the government source, Hicks believed that the government source was a like-minded individual who would use the document and instructions to conduct an attack within the U.S. using explosives. Hicks intended the attack to be carried out in the name of ISIL and in support of ISIL.
The case was investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the National Security Division’s Counterterrorism Section and the U.S. Attorney’s Office of the District of Indiana.
Indiana Man Pleads Guilty to Distributing Information on ExplosivesRead the Press Release
WASHINGTON – Marlonn Hicks, 30, of Crown Point, Indiana, pleaded guilty to distributing information regarding the manufacture and use of explosives, with the intent that the information be used for and in furtherance of a crime of violence before a U.S. Magistrate Judge. The Magistrate Judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney David Capp of the Northern District of Indiana and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office announced the charges.
According to the documents in this case, Hicks allegedly communicated online with multiple individuals who were cooperating with the government. During these communications, Hicks allegedly expressed a desire to travel to territory under the control of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Within days of the Orlando, Florida terrorist attack, Hicks indicated that he would likely die in the U.S. and subsequently discussed the means by which he planned to carry out an attack within the U.S. During one of these online communications, Hicks sent a government source a document containing detailed instructions on how to make explosives. When Hicks sent the document to the government source, Hicks believed that the government source was a like-minded individual who would use the document and instructions to conduct an attack within the United States using explosives. Hicks intended the attack to be carried out in the name of ISIL and in support of ISIL.
The case was investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force. The case is being prosecuted by the National Security Division’s Counterterrorism Section and the U.S. Attorney’s Office of the District of Indiana.
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16-1268
IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Haverhill Resident Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Franklyn Morillo, 41, of Haverhill, Massachusetts, pleaded guilty today to conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine. Morillo appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in court and statements in the plea proceeding, Morillo admitted that he and others participated in the distribution of cocaine and oxycodone pills in Massachusetts and New Hampshire. Over $18,000 in cash and a quantity of cocaine were seized from his residence in Haverhill during the execution of a search warrant in August of 2015. Morillo was arrested on October 1, 2015. A quantity of oxycodone pills and over $2,000 in cash were recovered from his residence at the time of his arrest.
A sentencing hearing has been scheduled for March 7, 2017.
Morillo is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possess with intent to distribute, controlled substances. The other defendants are: Mara Morillo, 41, of Haverhill, Massachusetts; Juan Rojas, 32, of Haverhill, Massachusetts; Justin Bartimus, 35, formerly of Methuen, Massachusetts; Jorge Medina, 25, of Haverhill, Massachusetts; and Michael Lally, 28, of Salem, New Hampshire.
Rojas also was charged with possession of a firearm in furtherance of a drug trafficking crime. He is further charged in a separate indictment with conspiracy to possess a firearm in furtherance of a crime of violence.
Lally, Bartimus, and Mara Morillo have pleaded guilty and are awaiting sentencing. Medina and Rojas are awaiting trial.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department, the Methuen, Massachusetts Police Department, and the Massachusetts State Police. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Harrisburg Police Officer Charged with Theft of Money That Was Evidence in A Criminal CaseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Harrisburg Police Officer was charged by way of a criminal complaint with theft of money that belonged to a federal agency and removing property to prevent its seizure.
According to United States Attorney Bruce D. Brandler, the criminal complaint alleges that Sean Cornick, age 44, of Harrisburg, a Corporal with the Harrisburg Bureau of Police, stole money from an evidence locker which he believed was property seized in a drug investigation. Cornick was allegedly videotaped taking money out of the locker. An inventory later confirmed money was missing from the locker.
The charges against Cornick resulted from an internal investigation by the Harrisburg Bureau of Police that was referred to the Federal Bureau of Investigation, and the Pennsylvania State Police. Assistant United States Attorney Eric Pfisterer, Deputy Chief of the Criminal Division, is prosecuting the case.
Cornick appeared before United States Magistrate Judge Susan E. Schwab yesterday and was released under conditions that he post a $10,000 signature bond, restrict his travel to the Middle District of Pennsylvania, surrender his passport, have no contact with potential witnesses, and not possess a firearm.
United States Attorney Bruce D. Brandler stated, “It is always a sad day when fellow law enforcement officers are alleged to have broken the laws they have sworn to uphold. Our office takes these matters very seriously and we greatly appreciate the assistance and cooperation of the Harrisburg Police Department and Pennsylvania State Police in conducting this investigation.”
Special Agent in Charge of the FBI's Philadelphia Division, Michael T. Harpster, said "When an officer who took an oath to protect and serve crosses the line, as alleged here, it's an affront to all those in law enforcement who carry out their sworn duties with integrity. Public corruption is insidious, corroding people's faith in the system. For that reason, it continues to be a top FBI priority."
Major David E. Relph, Director, Bureau of Criminal Investigation, Pennsylvania State Police, said, “It is a sad day for law enforcement when an officer crosses the line into criminal conduct. It is crucial that a complete and thorough investigation is conducted to maintain the public confidence in law enforcement. Cooperation between agencies is critical in cases like this. We appreciate the hard work of our federal, state and local law enforcement partners in this investigation.”
Criminal complaints 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 removal of property to prevent seizure is five years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Theft of Federal Funds under $1,000 is punishable by up to one-year imprisonment. 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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Franklinville Man Sentenced on Gun Charge; Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Salvatore Faliero, 53, of Franklinville, NY, who was convicted of being a felon in possession of a firearm, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny. In addition, the defendant was sentenced to 15 months in prison (to be served concurrently to the 12 month sentence on the gun charge), for violation of supervised release. Faliero was on federal supervised release following a 2009 conviction of accessory after the fact when he was arrested on the gun charge.
According to Assistant U.S. Attorneys Michael J. Adler and Thomas S. Duszkiewiz, who handled the case, on November 29, 2015, New York State Troopers began investigating a complaint that the defendant was shooting a firearm from his vehicle.
• One witness stated that Faliero admitted to him that he had shot a gun.
• Another witness stated that on December 1, 2015, he saw the defendant put a gun into his vehicle.
• On December 3, 2015, troopers received another report of the defendant using a firearm.Soon after this third complaint, troopers observed the defendant driving his red Honda CRV and stopped the vehicle. Troopers discovered a loaded Marlin, Model 336W, 30-30 caliber lever action rifle on the back seat of the vehicle. Ammunition for the firearm was found on the center console. Faliero admitted that he had been using the rifle.
In September 1985, the defendant was convicted in state court of Attempted Criminal Possession of a Controlled Substance. In October 1998, Faliero was convicted in Cattaraugus County Court of Attempted Burglary followed by his 2009 federal conviction. As a result, the defendant is prohibited from legally possessing a firearm.The sentencing is the culmination of an investigation by the New York State Police, under the direction of Major Steven Nigrelli and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict.
Fort Myers Man Receives 30 Years in Prison for Dealing HeroinRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Poster Chappell has sentenced Norris Williams (45, Fort Myers) to 30 years in federal prison for three counts of possession with intent to distribute heroin, and one count of attempting to possess with intent to distribute one kilogram or more of heroin. Williams was found guilty by a federal jury on April 8, 2016.
According to the trial evidence, Williams, a nine-time convicted felon, sold heroin to an undercover officer on several dates, specifically November 18, 2014; December 17, 2014; and February 11, 2015. In addition, he attempted to purchase a one-kilogram brick of heroin from an undercover officer on October 20, 2015. The attempted purchase occurred after Williams negotiated to receive the kilogram for a price of $75,000, with $50,000 cash up front, and a promise to pay the balance at a later date. Williams met the undercover officer at a parking lot and handed the officer $49,900 in a shoe box to complete the transaction.
This case was investigated by Drug Enforcement Administration, with assistance from the Cape Coral Police Department and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charles Schmitz.
Former Las Vegas Man Sentenced to 16+ Years in Prison for Sex TraffickingRead the Press Release
A 34-year-old former Las Vegas man was sentenced today in U.S. District Court in Seattle to 198 months in prison and ten years of supervised release for sex trafficking involving juveniles and adults, announced U.S. Attorney Annette L. Hayes. ROBERT RYAN POWELL was convicted of two counts of transportation of a juvenile with intent to engage in prostitution, and one count of sex trafficking an adult victim by force, fraud and coercion. POWELL was convicted following a seven-day trial in June 2016. At sentencing U.S. District Judge Richard A. Jones said, “You were a predator of young women, whether teen-agers or adults…. Pimping was your chosen lifestyle…. Today you ask for compassion when you failed to demonstrate any compassion for your victims.”
“This defendant preyed on vulnerable teens and adult women, callously exploiting them for his financial gain,” said U.S. Attorney Annette L. Hayes. “Without hesitation, he used violence and threats to control them. The lengthy prison sentence imposed today sends a clear message and will ensure that others will not fall victim to his predatory ways.”
According to records filed in the case and testimony at trial, between January 2014 and January 2015, POWELL used force, fraud and coercion to keep an adult female working for him as a prostitute as he transported her across various western states including Nevada, Arizona, New Mexico, Utah, Colorado, South Dakota, Idaho and Washington. POWELL used physical and emotional abuse to keep the woman working as a prostitute and supplying him with all of her earnings.
In August 2014, POWELL recruited two juveniles in the Seattle area to work for him as prostitutes. POWELL transported the two juveniles from Washington to San Jose, California, where he forced them to work as prostitutes and provide him with their earnings. He then abandoned them in San Jose, where the girls were recovered by law enforcement. POWELL was arrested in January 2015 in Rapid City, South Dakota where he was sex trafficking two adult women. He was returned to Western Washington for prosecution.
POWELL used Backpage.com to advertise the adult female for prostitution dates and used Backpage.com and other social media sites to recruit his victims to work for him as prostitutes.
POWELL was previously convicted in 2007 of Attempted Pandering in Clark County, Nevada, and in 2009 of Assault with a Deadly Weapon in Orange County, California.
Judge Jones set a January 2017 hearing to determine the amount of restitution POWELL will be required to pay to his victims.
The case was investigated by the Seattle Police Department and the FBI’s Child Exploitation Task Force, with investigative assistance provided by the San Jose Police Department, Rapid City Police Department, the South Dakota Criminal Investigations Division, the Las Vegas Metropolitan Police Department, Orange Police Department, and the Los Angeles Police Department. The case was prosecuted by Assistant United States Attorneys Kate Crisham and Amy Jaquette.
Former CEO Sentenced for Bribery and Fraud Scheme Involving Red Light Camera ContractsRead the Press Release
COLUMBUS, OHIO -- A former CEO of a traffic light enforcement camera vendor was sentenced today to 14 months in prison for her role in a multi-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
Karen L. Finley, 57, of Cave Creek, Arizona, was sentenced today before U.S. District Judge Michael H. Watson of the Southern District of Ohio. She pleaded guilty on June 19, 2015, to one count of conspiracy to commit federal programs bribery and honest services wire and mail fraud. Finley cooperated with the government’s investigation against John Raphael, an Ohio lobbyist, who pleaded guilty to one count of violating the Hobbs Act for his involvement in the scheme. On June 8, 2016, Raphael was sentenced to serve 15 months in prison.
From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company. During this time, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus, Ohio, and Cincinnati through Raphael, a consultant retained by the company. Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions through Raphael with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a red light camera enforcement contract with the city of Columbus. Finley also admitted that she and her co-conspirators concealed the true nature and source of the payments by Raphael and the company’s payment of false invoices for “consulting services,” which funds Raphael then provided to the campaigns of the elected public officials.
The FBI’s Cincinnati Field Office, Columbus Resident Agency, investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio prosecuted the case.
Former "Living the Dream" Executive Director Sentenced in Fraud SchemeRead the Press Release
Wendy Askins, 55, of Red Boiling Springs, former Executive Director for the Upper Cumberland Development District (UCDD), was sentenced today by U.S. District Judge Aleta A. Trauger to 18 months in prison, followed by two years of supervised release, for misusing the organization’s funds, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Judge Trauger also ordered Askins to pay $233,000 in restitution.
Askins was previously charged in a 12-count superseding indictment charging conspiracy, bank fraud, embezzlement, and making false statements. Askins pleaded guilty on August 30, 2016, to theft of Federal program funds.
The fraudulent scheme was carried out from March 2010 through February 2012. During that period, Askins purchased a property outside of Cookeville, Tennessee which she named Living the Dream. Askins used funds belonging to UCDD and its sister agencies, including the Cumberland Regional Development Corporation (CRDC) and the Cumberland Area Investment Corporation (CAIC), to renovate the home. Living the Dream was to serve as an assisted living facility for senior citizens, however, Askins and her daughter moved into the property and made luxurious upgrades to their residential wings.
Askins also set up a company called L.A. Management to operate the senior living facility. In order to hide her wrongdoing, Askins directed employees to falsify the minutes of the board of director’s meetings. At other times, Askins lied about the circumstances of the fake board minutes.
According to court documents, Askins carried out the scheme with co-defendant Larry Webb, who previously pleaded guilty on August 17, 2015. Webb is scheduled to be sentenced on November 14, 2016.
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Commerce, Office of Inspector General; the U.S. Health and Human Services, Office of Inspector General; and the U.S. Housing and Urban Development, Office of Inspector General. The United States was represented by Assistant U.S. Attorneys Stephanie N. Toussaint and William F. Abely.
Florida Telemarketer Sentenced for Role in Multimillion Dollar ScamRead the Press Release
This morning, in Federal Court in East St. Louis, IL, Aston Lloyd Davis, 32, of Orlando, FL, was sentenced to 18 months in prison for his role in the National Solutions timeshare re-sale fraud scheme, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Davis had pled guilty on June 15, 2016, to a charge of conspiring to commit mail and wire fraud.
Davis was a telemarketer for National Solutions and related companies located in Orlando, Florida. National Solutions defrauded consumers using various fictitious business names, including Bluescape Timeshares International, Country Wide Timeshares, Countrywide Timeshares MA, Landmark Timeshares, Propertys Direct, Quicksale Propertys, Sun Property Networks, Sun Property’s, Universal Propertys, VIM Timeshares, Propertys DRK, Quick Sale Advisers, Quick Sale International, City Resorts, Resort Advisers, American Timeshares, Exit Week, and Resort Advisors International.
National Solutions and the related companies targeted owners of timeshares throughout the United States and Canada. Telemarketers working for National Solutions, including Davis, made telemarketing calls to timeshare owners. During these calls, the telemarketers falsely represented that they had located buyers who were interested in purchasing the victims’ timeshares. To complete the transaction, however, the telemarketers told the victims that they had to pay a fee of approximately $2,000 to National Solutions. There were no buyers interested in purchasing the timeshares, and the victims lost the $2,000 fees that they paid. The telemarketers earned a commission for each fraudulent sale they made.
In various court filings related to the National Solutions scam, the government has alleged that the overall scam bilked over 2,500 consumers out of at least $6 million, including eight victims in the Southern District of Illinois.
In addition to the 18 month prison sentence, the court also ordered Davis to pay $52,637.56 in restitution to the victims of his crime. After he is released from prison, Davis will be required to serve a five year period of supervised release.
The Federal Trade Commission ("FTC") investigated the National Solutions businesses and brought a civil complaint in the United States District Court for the Middle District of Florida in Orlando. Pursuant to a court order in that case, on July 13, 2011, the FTC seized the offices and records of National Solutions.
This prosecution is one of nearly one-hundred timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Service. The prosecution of this case was handled by Assistant United States Attorneys Bruce Reppert and Scott Verseman.
Federal Jury Convicts Charlotte Insurance & Financial Executive of Filing False Tax Returns and Obstruction of Grand Jury InvestigationRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted Patrick Emanuel Sutherland, 48, of Charlotte, of filing false tax returns and obstructing a federal grand jury investigation charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and evidence presented at trial, from at least 2007 to 2015, Sutherland was an actuary, and the owner and operator of numerous companies in the insurance and financial industries. Between 2007 and 2010, Sutherland engaged in an elaborate scheme to conceal a substantial amount of income. Trial evidence established that Sutherland filed false tax returns with the IRS which underreported business receipts and personal income of approximately $2 million in income received from an offshore bank account in Bermuda, as well as from domestic sources. For example, according to the evidence, despite receiving substantial income for the relevant time period, Sutherland reported a combined income of approximately $276,697, and paid less than a mere $10,000 in total federal income taxes. During the same four-year period, Sutherland’s lifestyle and expenditures for personal living expenses far exceeded his total income reported on his individual tax returns, including over $80,000 in private school tuition for his daughter and high end jewelry purchases.
According to evidence presented at trial, witness testimony and filed court documents, to conceal the fraud, Sutherland falsely claimed that international wires to his domestic bank accounts were loans from his sister’s company. In reality, most of these funds were insurance commissions due to Sutherland or were funds obtained from a brokerage account in Bermuda which Sutherland controlled.
Trial evidence established that Sutherland worked with offshore insurance companies and some of his commissions had to be paid to an offshore intermediary. Sutherland used his Bermuda-based shell company, Steward Technology Services Limited (STS) to funnel personal and business funds to Sutherland’s U.S. bank accounts. On numerous occasions, Sutherland mischaracterized the wire transfers from STS’s bank account in Bermuda to Sutherland’s various domestic accounts as capital contributions and loans.
Evidence presented at trial demonstrated that on several occasions between June 2012 and September 2012, Sutherland sought to obstruct a federal investigation by providing fraudulent documents, including records of sham loans and documents purportedly reflecting his lack of control over his foreign business bank account in Bermuda.
The federal jury delivered the guilty verdict following a five-day trial. Sutherland is currently released on bond. The penalty for filing a false tax return is a maximum term of three years in prison and a $250,000 fine per count. The obstruction of official proceedings charge carries a maximum term of 20 years in prison and a $250,000 fine.
IRS-CI led the investigation. Assistant United States Attorneys Jenny G. Sugar and Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Judge Finds Davon Lymon Guilty of Unlawfully Possessing a Firearm on Oct. 21, 2015Read the Press Release
ALBUQUERQUE – This morning Chief U.S. District Judge M. Christina Armijo returned a guilty verdict against Davon Lymon, 35, of Albuquerque, N.M., on a felon in possession of a firearm and ammunition charge based on evidence presented during a two-day bench trial on Oct. 24 and 25, 2016. More specifically, the Chief Judge found Lymon guilty on Count 4 of a four-count indictment, which charged Lymon with unlawfully possessing a firearm and ammunition on Oct. 21, 2015, the day on which Lymon allegedly shot Officer Daniel Webster of the Albuquerque Police Department (APD). Officer Webster died on Oct. 29, 2015, as a result of injuries he sustained during the shooting.
In announcing the guilty verdict against Lymon, U.S. Attorney Damon P. Martinez said, “The U.S. Attorney’s Office is prosecuting Davon Lymon because as a community, we cannot and will not tolerate violence against law enforcement officers. Those who seek to harm the courageous men and women who put their lives on the line to safeguard us and protect our communities are, by definition, the ‘worst of the worst’ offenders. The entire law enforcement community – federal, state, county, local and tribal – is committed to working collaboratively to thoroughly and completely investigate and prosecute individuals like Lymon to the fullest extent of the law.”
“Officer Daniel Webster embodies every sense of the word ‘hero.’ He served his nation as a soldier, his community as a dedicated officer, and his family as a loving husband and devoted father,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “I hope that today’s guilty verdict provides a measure of comfort to his family and resonates as a beacon to the community he served.”
“On behalf of the Albuquerque Police Department and together with the greater Albuquerque Community, we thank the U.S. Attorney’s Office and the prosecutors for their exceptional work in this case,” said APD Chief Gorden E. Eden, Jr. “Officer Dan Webster was our hero, a true public servant with compassion for our community. Today’s verdict is significant as it takes us one step closer to justice for Officer Webster, Michelle and the family.”
The U.S. Attorney’s Office is prosecuting Lymon, a prior felon with convictions for voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud, and forgery, in two federal cases.
In this case (the firearms case), Lymon was charged in a four-count indictment with three counts of being a felon in possession of a firearm and one count of unlawfully possessing a stolen firearm in Bernalillo County. Counts 1 and 2 charge Lymon with unlawfully possessing a firearm on May 27, 2015, and Count 3 charges Lymon with unlawfully possessing a stolen firearm in late May 2015. Count 4 – the charge on which Lymon was found guilty today – charged Lymon with unlawfully possessing a firearm and ammunition on Oct. 21, 2015.
Lymon entered a not guilty plea to the charges in the firearms case, and the Court severed Counts 1, 2 and 3 from Count 4 for the purposes of trial. A trial date on Counts 1 through 3 has yet to be scheduled. The public is reminded that charges in indictments are merely accusations, and defendants are presumed innocent unless found guilty in a court of law. The statutory maximum penalty for a conviction on each of the four counts in the firearms case is ten years in federal prison.
In the other federal case (the heroin trafficking case), Lymon was charged with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm on Oct. 2, 2015, in Bernalillo County, N.M. Lymon pled guilty to the three charges in the heroin trafficking case on May 9, 2016. The guilty plea was entered without the benefit of a plea agreement. At his sentencing hearing, which has not been scheduled, Lymon faces a statutory maximum penalty of 20 years in prison on the two heroin trafficking charges and ten years on the firearms charge.
The Albuquerque office of ATF and APD investigated the firearms case, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA.
Assistant U.S. Attorneys Jacob A. Wishard and Kimberly A. Brawley are prosecuting the two federal cases against Lymon as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Lymon VerdictFayez Sarofim to Pay $720,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit yesterday in U.S. District Court in Washington, D.C., against Fayez Sarofim for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Kinder Morgan Inc., in 2001, 2006 and 2012, and Kemper Corporation in 2007. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Sarofim has agreed to pay a $720,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the 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 Daniel P. Ducore, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Sarofim CIS
Sarofim Complaint
Sarofim Explanation
Sarofim PFJ
Sarofim Stipulation
Fairmont, WV man sentenced for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kyle Kuroski, 24, of Fairmont, West Virginia, was sentenced to 70 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Kuroski, who was previously convicted of “Possession with Intent to Deliver Cocaine” in state court in West Virginia, was discovered to be in possession of a .45 caliber pistol last year in Marion County. Kuroski pled guilty in June 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fairmont Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Dorchester Man Sentenced to 28 Years in Prison for Attempting to Kill Suspected Federal WitnessRead the Press Release
BOSTON – A Dorchester man was sentenced late yesterday on charges of tampering with a witness by attempting to kill him.
“Mr. Casanova attempted to take a man’s life in order to ensure his silence,” said United States Attorney Carmen M. Ortiz. “Witness tampering not only impacts a criminal case, it shakes the very core of our justice system. Witnesses play a critical role in the government’s ability to hold criminals accountable and often times bring closure to victims. This sentence demonstrates the strength of the legal system to hold violent individuals accountable for their crimes.”
“Attempting to coerce the legal system through intimidation and murder has very serious consequences, as Mr. Casanova is now finding out,” said Matthew Etre, Special Agent in Charge of HSI Boston. “Thankfully Mr. Casanova’s attempt to silence what he thought was a federal witness to the criminal activities of this notorious gang failed. HSI remains vigilant and will continue to work with our law enforcement partners to track down criminals such as this and protect those who come forward to assist law enforcement.”
Jaquan Casanova a/k/a “Cass,” “Joffe,” “Joffy,” and “Joffy Joe,” 24, was sentenced by U.S. District Court Judge Denise J. Casper to 28 years in prison and five years of supervised release. In June 2016, he was convicted by a federal jury following a seven-day trial of tampering with a witness by attempting to kill him and lying to a federal agent about his involvement in a sex trafficking ring.
On April 30, 2013, Casanova shot Darian Thomson (“Bo”) in the head at close range to prevent him from communicating with federal law enforcement officers. Casanova was a member of a multi-state criminal organization led by Raymond Jeffreys that was involved in sex trafficking, drug trafficking, and fraudulent check cashing. In March 2013, Thomson was indicted on federal sex trafficking charges while in custody in New Jersey on unrelated state charges. In April 2013, Thomson was released and returned to Boston, where Casanova attempted to kill him. Jeffreys and other members of the criminal organization erroneously believed that Thomson had been released as a result of his cooperation with federal law enforcement, and that he would continue to provide information about their criminal activities.
From 2006 to May 2014, Jeffreys and other members of his organization trafficked women and minor girls in Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Pennsylvania, New Jersey, New York, Maryland, Nevada, Georgia, Florida and California. Jeffreys targeted vulnerable girls and women, including those who were poor and homeless, drug addicted, and those who were already working as prostitutes. Jeffreys used a variety of techniques to persuade and manipulate the women, including making promises about providing for them and their children, and then only doing so if the women performed acts of prostitution. He also used a variety of techniques to control the girls and women, including threatening that he would kill them. Jeffreys also taught other men how to engage in sex trafficking and worked with other men as “pimp partners” or “p partners” to share resources, such as car rides, hotel rooms, and payment for online advertisements.
On May 19, 2016, Jeffreys was sentenced to 30 years in prison after pleading guilty to sex trafficking and conspiring to tamper with a witness by attempting to kill him.
U.S. Attorney Ortiz; SAC Etre; and Boston Police Commissioner William Evans, made the announcement. The case was investigated by Homeland Security Investigations, the Boston Police Department’s Human Trafficking and Homicide Units and the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorneys Amy Harman Burkart and David D’Addio of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney David S. Bradley from the Suffolk County D.A.’s Office.
Detroit-Area Home Health Care Agency Owner Sentenced to 30 Years in Prison for $33 Million Medicare Fraud SchemeRead the Press Release
The owner of several Detroit home health care companies was sentenced today to 360 months in prison for his role in a Medicare fraud scheme that caused approximately $33 million in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Zafar Mehmood, 50, of Ypsilanti, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered Mehmood to pay $40,488,106.98 in restitution. Forfeiture will be determined at a hearing on Nov. 7, 2016. On July 27, 2015, Mehmood was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, one count of conspiracy to commit money laundering, two counts of money laundering and two counts of obstruction of justice.
According to evidence presented at trial, from 2006 through 2011, Mehmood participated in a scheme in which he obtained patients by paying cash kickbacks to recruiters, who in turn paid cash to patients to induce them to sign up for home health care with Mehmood’s companies: Access Care Home Care Inc., Patient Care Home Care Inc., Hands On Healing Home Care Inc. and All State Home Care Inc. The evidence also showed that he paid kickbacks to physicians to refer patients to the companies for unnecessary home health care services.
In addition, trial evidence showed that Mehmood and his co-conspirators falsified records to make it appear as if the patients qualified for and received the services for which Medicare paid over $33 million during the course of the conspiracy. Mehmood used a co-conspirator to launder the proceeds of the fraud through shell companies under Mehmood’s control, according to trial evidence.
Trial evidence also demonstrated that while visiting an HHS-OIG facility during pretrial release to review evidence with his attorney, Mehmood stole incriminating documents that law enforcement authorities had seized during the execution of search warrants at Mehmood’s companies. Law enforcement agents subsequently recovered the missing documents in a search of Mehmood’s jail cell.
A co-defendant, Badar Ahmadani, was also convicted at trial of one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks. Ahmadani is scheduled to be sentenced on Nov. 7, 2016.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Niall M. O’Donnell and A. Brendan Stewart prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Cincinnati Man Convicted of Distribution of Fentanyl Causing Serious Bodily InjuryRead the Press Release
COVINGTON, Ky. — A Cincinnati man will serve 25 years in federal prison, after admitting in federal court that he distributed fentanyl to an individual in northern Kentucky, who overdosed, but survived after receiving medical treatment.
On Thursday, during the fourth day of trial, held in Covington, Antoine Dudley, 32, pleaded guilty to distributing a controlled substance that caused serious bodily injury. U.S. District Judge Amul Thapar accepted a binding plea agreement that will require Dudley to serve 25 years in prison and 15 years of supervised release. He is scheduled to be sentenced on December 1, 2016; and he must serve at least 85 percent of his prison sentence. Dudley also agreed to forfeit money and two cellular phones seized at the time of his arrest.
“The increasing use of naloxone saves lives that would otherwise be lost to drug overdoses,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Happily, that was the case here, but the severe penalty for selling drugs that result in an overdose applies, even if the victim survives. We intend to use every tool available to us in order to combat Kentucky’s opioid epidemic-including the mandatory sentence of 20 to life in cases such as this one.”
According to testimony at trial, Dudley regularly sold both heroin and fentanyl, to multiple customers throughout northern Kentucky, during a period of time between September 1, 2014 and his arrest on May 8, 2015. Evidence showed that he distributed fentanyl, in Kenton County, on November 21, 2014 that caused the user to overdose and stop breathing. Paramedics of the Covington Fire Department responded to the call and were able to revive the victim of the overdose through the administration of naloxone (Narcan). The victim has made a full recovery, but evidence showed that she would have died if not for the actions of the responding paramedics.
Dudley was on trial for conspiracy to distribute heroin and fentanyl and related distribution offenses. Dudley was initially charged in September of 2015.
Dudley was prosecuted under the U.S. Attorney’s Office Overdose Prosecution Initiative, which has become an important tool in the battle against the heroin and opioid epidemic.
For more information visit https://www.justice.gov/usao-edky/pr/united-states-attorneys-office-announces-successful-results-overdose-prosecution
U.S. Attorney Harvey, and Jennifer Moore, Acting Special Agent in Charge, Federal Bureau of Investigation, jointly announced the conviction.
The investigation was conducted by the F.B.I. Safe Streets Task Force and the Covington Police Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Career Criminal Sentenced to 30 Years for Heroin and Gun CrimesRead the Press Release
RICHMOND, Va. – Elbrendel Edwards, 42, of Richmond, was sentenced today to 30 years in prison for possession with intent to distribute heroin and possession of firearms by a convicted felon.
Edwards pleaded guilty on July 22. According to court documents, Edwards distributed approximately 12 kilograms of cocaine and approximately 6 kilograms of heroin into the Richmond community in the one-year period leading up to his April 18 arrest. Court documents also indicate that some of the heroin Edwards distributed led to multiple overdoses. In addition to distributing multi-kilogram quantities of cocaine and heroin, Edwards was in possession of three firearms: A Smith and Wesson semi-automatic handgun; a Taurus .22 caliber revolver which he traded for with heroin; and a Raven Arms .25 caliber semi-automatic handgun. In April law enforcement agents executed a search warrant at two residences used by Edwards and recovered heroin, drug packaging materials, and the three firearms.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Thierry Dupuis, Chesterfield County Police Department, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-64.
Authorities Make Multiple Arrests in Large Narcotics Trafficking and Money Laundering ConspiracyRead the Press Release
LAREDO, Texas – A total of 18 defendants have been taken into custody in Laredo, San Antonio and other areas of the country on charges involving cocaine, methamphetamine, heroin and fentanyl, announced U.S. Attorney Kenneth Magidson.
Those taken into custody include Antonio Romero Jr., 29, of Laredo, who has been identified as the head of the drug trafficking cell which operated out of Orlando, Florida. He was taken into custody in Orlando where he made his initial appearance and ordered detained pending further criminal proceedings in Laredo. His wife, Olinda Romero, 29, of Mexico, was also arrested in Orlando under on money laundering charges. Authorities also arrested Loreto Castaneda Macedo, 37, of Mexico, and Francisco Javier Salazar Diaz, 58, of Mexico, in Ft. Lauderdale, Florida.
In South Texas, authorities arrested 12 others who will make their initial appearances before U.S. Magistrate Judge Guillermo R. Garcia on Monday, Oct. 31, 2016. Those persons include Nora Arlette Romero, 37, Tito Garcia, 44, Oscar N. Mancillas, 26, Karina Mancillas-Rubio, 28, Jason Aguilar Blake, 29, Jesus Miguel Torres, 30, Daniel Laurel, 31, Hector Ortiz, 22, Stephanie Ozuna, 26, Maria Lilia Ozuna, 61, Oscar Mancillas Santos, 56, and Olga Calzado de Mancillas, 54.
Two others - Luis Felipe Santos Alejandro, 29, and Dennis Alvarez Boquin, 32, were arrested in Santa Monica, California, and Atlanta, Georgia, respectively.
The defendants are alleged members of a drug and money laundering organization and are charged with various to include engaging in a continuing criminal enterprise, conspiracy to possess with intent to distribute multi kilograms quantities of cocaine, methamphetamine, heroin and fentanyl, conspiracy to launder drug proceeds and numerous other money laundering violations.
The indictments charge the defendants with engaging in a conspiracy to distribute cocaine, methamphetamine, heroin and fentanyl through the use of the U.S. Postal Service or other means such as Federal Express. They allegedly used various U.S. bank accounts to transfer drug proceeds from U.S. distribution hub cities to U.S. cities along the Mexican border, including Laredo, and to places outside the United States, such as Mexico, Ecuador and Peru.
In addition to the criminal charges, the indictments seek to forfeit all property, real and personal, involved in the offenses and all property traceable to such property to include but not limited to approximately $5 million in U.S. currency. In conjunction with the arrests, authorities seized at least 28 vehicles as property derived from drug proceeds.
The charges are the culmination of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Tres Equis spearheaded by the Drug Enforcement Administration (DEA) with assistance of IRS – Criminal Investigation. Agencies also lending support to the investigation and arrests include the U.S. Marshals Service, Laredo Police Department, sheriff’s offices in Webb and Zapata Counties, Webb County District Attorney’s Office, U.S. Border Patrol and the Texas Department of Public Safety.
Assistant U.S. Attorney Graciela R. Lindberg is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
Defendants are presumed innocent unless and until convicted through due process of law.
Ashland Cardiologist Convicted of Health Care FraudRead the Press Release
COVINGTON, Ky. — A federal jury has found a cardiologist from Ashland, Ky., guilty of charges that he fraudulently billed Medicare, Medicaid, and private insurers for invasive heart procedures that were medically unnecessary.
On Thursday afternoon, Richard E. Paulus was found guilty of health care fraud and making false statements relating to health care matters, following a seven-week trial. According to evidence presented at trial, from 2008 to 2013, Paulus performed numerous invasive heart procedures on patients who did not need them. In order to justify these unnecessary procedures, Paulus falsified patients’ medical records, to exaggerate their medical condition and to make it appear that the heart procedures were necessary and qualified for payment.
Specifically, Paulus was convicted of placing unnecessary coronary stents and performing unnecessary diagnostic catheterizations in patients. Medicare, Medicaid, and private insurers will only reimburse for medically necessary procedures. Under medical standards of care, government and private insurers generally reimburse medical providers who place coronary stents in patients whose arteries are at least 70 percent blocked plus symptoms. According to the evidence, Paulus placed stents in over seventy patients whose blockages were significantly less than 70 percent – in some cases very little blockage at all; but Paulus recorded them at or near 70 percent in the records, in order to get paid for the procedures. Ten cardiologists testified on behalf of the United States. These medically unnecessary procedures were performed during his tenure at King’s Daughters Medical Center in Ashland.
“All of us rely on our healthcare providers to make treatment decisions based solely on medical considerations, untainted by financial considerations,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. The jury determined that Dr. Paulus dishonored this fundamental duty to many of his patients in order to defraud federal healthcare programs. This is entirely unacceptable conduct, particularly in relation to invasive medical procedures, and justice has been served in this case. The overwhelming majority of healthcare providers put the best interest of their patients first; the failure to do so in this matter demands accountability. This victory is a milestone in an investigation spanning several years – the citizens of the United States have been well-served by our extraordinary trial team, law enforcement partners, and all of our staff who contributed to this result.”
From 2006 to 2012, Paulus billed Medicare for more heart procedures than any other cardiologist in Kentucky and was number 5 in the nation in terms of amount paid by Medicare for stent procedures.
In May of 2014, King’s Daughters Medical Center agreed to pay the U.S. Government $40.9 million to resolve civil allegations that it made millions of dollars by falsely billing federal health care programs for performing medically unnecessary heart procedures on patients.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Jennifer Moore, Acting Special Agent in Charge, FBI; and Derrick Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region; and Andy Beshear, Kentucky Attorney General, jointly announced the verdict.
The investigation was conducted by FBI and the Department of Health and Human Services, and the Kentucky Office of Attorney General-Medicaid Fraud and Abuse Control Unit. Assistant United States Attorneys Andrew Sparks and Kate Smith prosecuted the case on behalf of the federal government. Paulus is scheduled to be sentenced on April 25, 2017. He faces a maximum of 20 years for health care fraud and up to five years for making false statements.
Arlington Man Pleads to Guilty Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – James Jeffrey Schroeder, 50, of Arlington, a former teacher’s assistant at Sharyland High School in Mission, Texas, pleaded guilty today to charges of receiving and downloading child pornography.
According to the statement of facts filed with the plea agreement, from approximately 1997 to August 2015, Schroeder received and downloaded child pornography from the internet and from a family member. A forensic review of Schroeder’s electronic media revealed over 83,000 images and 400 videos of child pornography. Many of the images and videos were sadistic or masochistic in nature and depicted scenes of violence.
Schroeder faces a maximum penalty of 20 years in prison when sentenced on Feb 2, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-242.
Amherst Woman Sentenced for Conspiracy to Import Alpha-PVPRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Judi Strong, 43, of Amherst, NY, who was convicted of conspiracy to import Alpha-PVP, a Schedule I controlled substance, was sentenced to 12 months in prison by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that in July 2015, Strong conspired with a co-defendant to import Alpha-PVP into the United States from China. The defendant ordered the substance on-line and had it shipped in two FedEx Express Mail packages to her residence in Amherst. Federal law enforcement officers intercepted the packages and performed a controlled delivery to Strong at her residence where she accepted delivery of the two packages. The two packages contained approximately 178 grams of Alpha-PVP.
The sentencing is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Albert Einstein Healthcare Network and Einstein Practice Plan Agree to Settlement of Voluntary DisclosureRead the Press Release
The United States announces that it has settled allegations under the False Claims Act with Albert Einstein Healthcare Network and the Einstein Practice Plan for improperly billing Medicare for services submitted on behalf of a cardiologist. The Einstein defendants voluntarily disclosed the allegations and have agreed to pay $968,418.60 to resolve the matter. The cardiologist no longer works for the Einstein defendants.
According to the self-disclosure and the investigation that followed, between October 15, 2010 and January 9, 2012, bills were submitted to Medicare for services performed by the cardiologist which the United States alleges were not medically necessary or lacked sufficient documentation, resulting in overpayments to Einstein. The United States alleges that false claims were submitted to the government. After it discovered the problem, the Einstein defendants took corrective action to resolve the improper payments, and disclosed the matter to the United States Attorney’s Office.
This matter was handled by Department Health and Human Services Office of the Inspector General, including Attorney Katherine Matos, and Assistant United States Attorney Susan Dein Bricklin and Auditor George Niedzwicki.
Thursday 27 October 2016
Zuni Pueblo Man Pleads Guilty to Domestic Assault by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Vander Tsethlikai, 53, a member and resident of Zuni Pueblo, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a domestic assault by a habitual offender charge. Under the terms of his plea agreement, Tsethlikai will be sentenced to 18 months in federal prison followed by a term of supervised release to be determined by the court.
Tsethlikai was arrested on Jan. 6, 2016, on an indictment charging him with assault of an intimate partner by a habitual offender. According to the indictment, Tsethlikai committed the offense on July 13, 2015, on Zuni Pueblo in McKinley County, N.M. Tsethlikai was charged as a habitual offender based on his two prior domestic violence convictions in Zuni Pueblo Tribal Court. Zuni Pueblo Tribal Court records reflect that Tsethlikai’s prior convictions occurred in 2010 and 2014.
During today’s proceedings, Tsethlikai pled guilty to the indictment and admitted that on July 13, 2015, he assaulted the victim, his intimate partner, causing her to suffer lacerations above the right eye and on the right ear. He also acknowledged his two prior tribal court convictions. Tsethlikai was remanded into custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Zuni Pueblo Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Yonkers Man Sentenced in White Plains Federal Court to More Than 22 Years in Prison for Kidnapping and Sex Trafficking A 19-Year-Old VictimRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CLYDEDORO GRAHAM was sentenced in White Plains federal court to 270 months in prison for kidnapping a 19-year-old victim (the “Victim”), conspiring to engage in sex trafficking of the Victim, and attempting to engage in sex trafficking of the Victim. CLYDEDORO GRAHAM was convicted in November 2015 after a seven-day jury trial before United States District Judge Nelson S. Román, who imposed today’s sentence.
U.S. Attorney Preet Bharara stated: “Clydedoro Graham orchestrated a horrifying plot to lure a 19-year-old woman to his apartment, hold her against her will, and coerce her—through repeated sexual assault and other physical and psychological pressure—to work as a prostitute for him. A unanimous jury convicted him of kidnapping and sex trafficking, and today, the Court imposed a significant sentence that reflects the viciousness of the defendant’s crimes.”
According to the allegations in the Complaint and Superseding Indictment filed in federal court, and the evidence presented at trial:
On the evening of June 16, 2014, CLYDEDORO GRAHAM was at his apartment in Yonkers, New York, (the “Apartment”) with his girlfriend and accomplice, Alisa Papp. His cousin, Kevin Graham, and his friend, Hector Garcia, were also present. As Papp, Kevin Graham, and Garcia knew, CLYDEDORO GRAHAM was a “pimp.” That night, the four co-conspirators agreed to lure a prostitute to the Apartment for the purpose of forcing her to work for them.
CLYDEDORO GRAHAM was the leader of this scheme. Using his cellphone, he went to Backpage.com, a website where prostitutes post advertisements. He trolled through the advertisements searching for a target, and eventually decided on the Victim. Kevin Graham called the Victim and led her to believe, falsely, that he wanted to hire her for a prostitution “date.”
When the Victim arrived, the co-conspirators were lying in wait. Papp served as the lookout, making sure the Victim did not arrive with anyone else. Kevin Graham met her outside and led her into the Apartment, while CLYDEDORO GRAHAM and Garcia hid inside. Once inside the Apartment – and at the direction of CLYDEDORO GRAHAM – the co-conspirators took away the Victim’s purse and phone, removed the battery from her phone, and told her that she was there to work as a prostitute for them. The Victim asked repeatedly to leave, but CLYDEDORO GRAHAM and his accomplices refused.
The co-conspirators told the Victim that she had no choice but to have sex with each of the men. She refused and asked again to go home. CLYDEDORO GRAHAM said she could give it up or they would “take it.” CLYDEDORO GRAHAM, Kevin Graham, and Hector Garcia took turns having sex with the Victim, against her will.
Later that night, Kevin Graham and Garcia left the Apartment. For the next two days and two nights, CLYDEDORO GRAHAM and Papp held the Victim captive in the Apartment. Among other coercive measures, CLYDEDORO GRAHAM removed the doorknob from the interior side of the Apartment’s front door to prevent the Victim from escaping. He then made plans to bring the Victim out onto the streets of Yonkers to prostitute her for his own benefit.
CLYDEDORO GRAHAM’s scheme unraveled on June 18, 2014, when two Yonkers police officers arrived at the Apartment after receiving a tip from individuals who had been searching for the Victim. The officers demanded to speak with the Victim, immediately determined that she was being held against her will, and brought her to safety.
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In addition to the prison sentence, CLYDEDORO GRAHAM, 28, of Yonkers, New York, was sentenced to three years of supervised release.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the New York City Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Douglas Zolkind and Kathryn Martin are in charge of the prosecution.
Winchester Woman Sentenced to 10 Years in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jaclyn Hilow, age 29, of Winchester, New Hampshire was sentenced by United States District Judge Joseph A. DiClerico, Jr., to 120 months in federal prison. Hilow previously had pleaded guilty to conspiracy to distribute one kilogram or more of heroin.
Court records show that after a lengthy investigation, law enforcement determined that Hilow was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 29, of Richmond, New Hampshire. Hilow distributed heroin for Gould to numerous individuals in and around Keene. On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin after search warrants executed at his Richmond, New Hampshire residence and another residence utilized by Gould to store narcotics on March 10, 2015 resulted in the seizure of over a kilogram of heroin, a large quantity of cocaine, prescription pills, currency, and 14 firearms.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire by continuing to target drug trafficking organizations who are responsible for the importation of large quantities of heroin into New Hampshire from source cities such as Lawrence, Massachusetts.” stated United States Attorney Emily Gray Rice.
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis prosecuted the case.
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Williamsport Man Charged with Firearms and Drug OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 25, 2016, a federal grand jury in Scranton charged Damontray Taylor, age, 30, a resident of Williamsport, Pennsylvania, with firearms and drug offenses.
According to United States Attorney Bruce D. Brandler, the indictment charges Taylor with possessing the controlled substances in February of 2016, with the intent to distribute the drugs in the Williamsport area. Taylor was also charged with possession of three firearms in furtherance of his drug activities, and a separate felony charge for possessing firearms as a convicted felon.
The investigation was conducted the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as the Lycoming County Narcotics Enforcement Unit. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law include 20 years of imprisonment for possessing with intent to distribute cocaine, 10 years of imprisonment for felon in possession of a firearm, a five year mandatory term of imprisonment for possessing a firearm in furtherance of a drug crime, a term of supervised release following imprisonment, and a fine. If convicted of possessing a firearm 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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William Anthony Hoffa Sentenced to Serve 25 Years in Prison for Receiving, Distributing, and Possessing Child PornographyRead the Press Release
GREENEVILLE, Tenn. – William Anthony Hoffa, 29, of Newport and Morristown, Tenn., was sentenced on Oct. 24, 2016, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 300 months in federal prison. Hoffa was also ordered to remain under supervised release by the U.S. Probation Office for the remainder of his life, comply with special sex offender conditions of supervised release, register with state sex offender registries, and pay $100 special assessment.
Hoffa pleaded guilty in July 2016 to receiving, distributing, and possessing child pornography while he resided at different locations in Morristown, Tenn. According to the plea agreement on file with U.S. District Court, he committed these offenses by electronic mail on different dates in 2014 from both an apartment in Morristown and a rented home. When he was arrested in June 2014, Hoffa possessed additional child pornography stored on his mobile telephone, including 312 still images and four videos of child pornography.
The charges against Hoffa were the result of an investigation by the Morristown Police Department. Assistant U.S. Attorney Helen Smith, represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Wichita Man Pleads Guilty to Federal Sex Trafficking ChargesRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty Thursday to federal sex trafficking charges, Acting U.S. Attorney Tom Beall said.
Gerald L. Brown, Jr., 30, Wichita, Kan., pleaded guilty to one count of sex trafficking of a minor and one count of sex trafficking of an adult by force.
In his plea, he admitted that in June 2015 he recruited a 17-year-old girl to engage in sex acts advertised on an adult Web site. He transported her from Kansas to Oklahoma and Texas to engage in prostitution. In July 2015 he and the girl were stopped for a traffic violation and the girl was taken into state custody.
Brown returned to Kansas, where he recruited an adult female to engage in prostitution. He threatened to strike her and use violent force to coerce her to cooperate in prostitution.
Sentencing is set for Jan. 26. Both parties have agreed to recommend a sentence of 180 months in federal prison. Beall commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Wichita Man Charged in Armed Robbery at Convenience StoreRead the Press Release
WICHITA, KAN. – A Wichita man was charged in federal court here Thursday with an armed robbery at a convenience store on the west side of the city, Acting U.S. Attorney Tom Beall said.
Quincy D. Hadley, 36, Wichita, is charged with one count of robbing a commercial business, one count of brandishing a firearm during the robbery and one count of unlawfully possessing a firearm following a felony conviction.
A criminal complaint filed in the case alleges Hadley was wearing a ski mask and brandishing a .40 caliber High Point pistol when he entered the Presto Circle K at 4414 W. Maple in Wichita and pointed a gun at the clerk. After demanding and receiving cash he said he wanted cigarettes. When the clerk gave him bargain cigarettes he said he wanted name brand cigarettes. After receiving cartons of Marlboro and Camel cigarettes, he fled the store.
An officer responding to the 911 call found him changing clothes in a parked car and arrested him. When police asked why he was partly unclothed, he said he was watching pornography on his phone.
If convicted he faces a penalty of up to 20 years and a fine up to $250,000 on the robbery count, not less than seven years and a fine up to $250,000 on the brandishing charge, and up to 10 years and a fine up to $250,000 on the other count. The Wichita Police Department investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
United States Attorney’s Office Names District Election OfficerRead the Press Release
HARRISBURG - United States Attorney Bruce D. Brandler announced today that Assistant United States Attorney (AUSA) Eric Pfisterer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Pfisterer has been appointed to serve as the District Election Officer (DEO) for the Middle District of Pennsylvania, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Brandler said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Brandler stated that AUSA/DEO Pfisterer will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (717) 221-4482.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (717) 232-8686.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Brandler said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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U.S. Attorney’s Office-Jefferson County Reach ADA SettlementRead the Press Release
The U.S. Attorney’s Office for the Northern District of Alabama today announced a settlement with Jefferson County under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids, and for individuals who are blind or have vision impairments.
“The right to vote is the foundation of our democracy,” said U.S. Attorney Joyce White Vance. “With today’s agreement, Jefferson County makes a commitment to ensure that persons with disabilities have equal opportunities to exercise their right to vote in person at their assigned polling place, just like their neighbors.”
Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program. The ADA requires public entities, such as Jefferson County, to select and use polling places that are accessible. Jefferson County is working collaboratively with the U.S. Attorney’s Office to make all polling places accessible. Under the terms of the settlement agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate, to ensure accessibility on Election Day.
Those interested in finding out more about the ADA can access the ADA website at www.ada.gov. To make complaints about potential civil-rights violations, including complaints about discrimination based on race, religion, sex, gender, sexual orientation, disability, or veteran status, please call or e-mail the U.S. Attorney’s Office Civil Rights Intake Specialist at (205)244-2178 or [email protected]. To file a written complaint, mail the complaint to the U.S. Attorney’s Office for the Northern District of Alabama, 1801 Fourth Avenue North, Birmingham, AL 35203.
Please find attached below a press release on the office’s settlement agreement with Jefferson County, as well as the agreement, itself.
U.S. Attorney for Idaho Names Election Day ContactsRead the Press Release
BOISE – United States Attorney Wendy J. Olson announced today that Assistants United States Attorney (AUSAs) Jack Haycock, Ray Patricco and Nancy Cook will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSAs Haycock, Patricco and Cook have been appointed to serve as District Election Officers for the District of Idaho, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Olson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
“The franchise is the cornerstone of American democracy,” said Olson. “We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Olson stated that AUSAs Haycock, Patricco and Cook will be on duty while the polls are open. They can be reached by the public at the following telephone numbers:
(208) 251-0589 in Pocatello for AUSA Haycock; (208) 334-9118 in Boise for AUSA Patricco or (208) 676-7346 in Coeur d’Alene for AUSA Cook. In addition, complaints related to violence, threats of violence or intimidating at a polling place should be reported first to local police authorities by calling 911.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Boise FBI Supervisory Agent Douglas Hart can be reached by the public at (208) 344-7843 and Coeur d’Alene FBI Supervisory Agent Richard Collodi can be reached by the public at (208) 664-5128.
Complaints about ballot access problems or discrimination can be made to AUSA Jessica Gunder at 208-488-2346 or directly to the Civil Rights Division’s Voting Section in Washington, D.C. at 1-800-253-3931 or (202) 307-2767.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” said Olson. “It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney Hickton Appoints District Election Officer to Oversee Complaints Relating to November 2016 ElectionsRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that Assistant United States Attorney Shanicka L. Kennedy has been appointed to serve as the District Election Officer (DEO) for the Western District of Pennsylvania. In that capacity AUSA Kennedy is responsible for overseeing the District’s handling of complaints of voting rights abuses and election fraud in consultation with Justice Department Headquarters in Washington, D.C.
United States Attorney Hickton said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring misconduct and discrimination at the polls and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney David Hickton stated that AUSA/DEO Shanicka Kennedywill be on duty in Western Pennsylvania while the polls are open. She can be reached by the public at the following telephone number: (412) 894-7516.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election misconduct on Election Day. The local FBI field office can be reached by the public at (412) 432-4000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Hickton said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about interference with the vitally important right to vote make that information available immediately to the U.S. Attorney’s Office, the FBI, or the Civil Rights Division.”
U. S. Attorney Appoints Election Day Officer, Utah Joins Justice Department Efforts to Protect Right to Vote and Prosecute Ballot FraudRead the Press Release
SALT LAKE CITY – In anticipation of the upcoming general elections, United States Attorney John W. Huber announced today that Assistant U.S. Attorney Lake Dishman will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day program for the Nov. 8, 2016, general election. Dishman has been appointed to serve as Election Officer for the District of Utah. In that capacity, he will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with the Justice Department in Washington, D.C.
"Although Utah has a history of conducting problem-free elections, we want to make sure residents of Utah know that reports of fraud or abuse will be taken seriously," Huber said today. “Election fraud and voting rights abuses dilute the worth of votes honestly cast. They also corrupt the essence of our representative form of government. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to the U.S. Attorney’s Office, the FBI, or the Department of Justice.”
Dishman will be available Nov. 8 to respond to complaints of election fraud or voting rights abuses and to ensure that any complaints are directed to the right place. Dishman can be reached by the public at 801-325-1409 while the polls are open.
In addition, the FBI in Salt Lake City will have special agents available throughout the day to receive allegations of election fraud and other election abuses on Election Day. The FBI can be reached at 801-579-1400.
Complaints about ballot access problems or discrimination can also be made directly to the Department of Justice’s Civil Rights Division’s Voting Section in Washington, D.C., at 1-800-253-3931 or 202-307-2767. Complaints related to violence, threats of violence, or intimidation at a polling place should be immediately reported to local authorities by calling 911. They should also be reported to federal authorities.
The administration of the election process is primarily a state rather than a federal function. States have the power to establish the place, time, and manner for holding elections. The Department of Justice, however, plays an important role in deterring election fraud and discrimination at the polls. The Justice Department's Criminal and Civil Rights Divisions enforce specific federal laws that help to ensure that all qualified voters have an opportunity to cast their ballots and have them counted.
The Department of Justice’s Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
Mistakes by election administrators, violations of state laws governing how elections are to be conducted, the accuracy of campaign literature, campaigning too closely to voting locations, the process by which candidates qualify for ballot status and events that occur in the course of political campaigns generally are not appropriate for federal prosecution, although such matters may violate state election laws.
Anyone with questions about local voting procedures should call their county clerk’s office.
Two Hot Springs Men Sentenced to Total of 14 Years in Federal Prison for Drug and Firearms ChargesRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Nicholas Smith, age 33 of Hot Springs, was sentenced today to 120 months in federal prison followed by three (3) years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense. Steven Brown, age 35 of Hot Springs, was sentenced to 48 months in federal prison followed by two years of supervised release on one count of Felon in Possession of a Firearm. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
Nicholas Smith: According to court documents, in August, 2015, members of the 18th Judicial East Drug Task Force arranged and conducted two controlled purchases of methamphetamine from Smith at his residence. On September 10, 2015, officers with the Garland County SWAT team executed a search warrant on Smith’s residence, finding 34 grams of methamphetamine, 11 firearms including a sawed-off shotgun, a large amount of cash, and other drug paraphernalia. After waiving his Miranda rights, Smith admitted to selling on average 2 pounds of methamphetamine per week to over 40 customers in the Hot Springs area, and that many of the firearms recovered from his home were received in trades for drugs. Smith was indicted by the federal grand jury on September 16, 2015, and pleaded guilty on May 13, 2016.
Steven Brown: According to court documents, on May 6, 2015, officers with the Garland County Sheriff’s Office located Brown riding in the passenger seat of a vehicle in the Hot Springs area. Officers apprehended Brown on outstanding warrants and conducted a search of the vehicle, finding a small amount of methamphetamine, ammunition, and a stolen Springfield 9mm pistol wedged in Brown’s seat. Due to Brown’s prior felony convictions, he was charged with Felon in Possession of a Firearm. Brown was indicted by a federal grand jury on September 16, 2015, and pleaded guilty on May 13, 2016.
“Keeping drugs and weapons out of the hands of criminals in our communities remains a priority for HSI”, said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Together with our law enforcement partners we will continue to target these criminal elements and bring them to justice.” Parmer is the Special Agent in Charge of the New Orleans field office with responsibility for Arkansas, Alabama, Louisiana, Mississippi, and Tennessee.
These cases were investigated by Homeland Security Investigations (HSI), 18th East Judicial Drug Task Force, Alcohol Tobacco, and Firearms, and the Garland County Sheriff’s Office. Assistant United States Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Charged in Manhattan Federal Court with Conspiring to Traffic in Counterfeit GoodsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel M. Melendez, Special Agent in Charge of New York, U.S. Immigration and Customs Enforcement (“ICE”) Homeland Security Investigations (“HSI”), Robert E. Perez, Director, Field Operations New York, U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced charges today against two individuals for conspiring to traffic in counterfeit goods. DAYE DONG and HONGYU CHEN are charged with importing counterfeit goods from China into the United States with the intent to distribute and sell the counterfeit products to retailers in New York City and elsewhere. The defendants were arrested today and will be presented before U.S. Magistrate Judge Kevin Nathaniel Fox later this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “These defendants allegedly sold counterfeit goods, fueling consumers’ desire for low prices on high end products. But the cheap prices come at a high price for legitimate businesses. Protection of intellectual property remains an important priority for my office and for our partners at CBP, ICE, and the NYPD.”
HSI Special Agent in Charge Angel M. Melendez said: “People wrongly assume intellectual property theft is a victimless crime. The reality is, individuals like those charged today are allegedly robbing from law abiding merchants and from the legitimate companies that manufacture these items. Brand-name knockoffs are not a harmless way to beat the system.”
CBP Director Robert E. Perez said: “U. S. Customs and Border Protection is proud of the expertise we provide in support of investigations that result in the takedown of criminal enterprises. It is through interagency partnerships and collaborative efforts, like the one leading to today's arrests, that law enforcement successfully combats today's criminal organizations.”
NYPD Commissioner James P. O’Neill said: “This sale of conterfeit merchandise is a scheme that is old as crime itself. Today’s arrests led by Homeland Security and Immigration and Customs Enforcement ensures consumers have confidence in the products they purchase.”
According to the allegations in the Complaint[1]:
From March 2012 to October 2016, DONG and CHEN, who are married, imported counterfeit luxury and designer brand goods into the United States from China. DONG and CHEN stored the imported counterfeit goods in two warehouses with the intent to transfer the goods to retailers in New York City, including a Manhattan retail store operated by CHEN, and elsewhere. On October 27, 2016, federal and New York City law enforcement officers conducted a search of DONG and CHEN’s residence, warehouses, and retail store, and found more than 30,000 pieces of counterfeit goods, including handbags and wallets, for various luxury and designer brands.
DONG, 49, and CHEN, 48, of Bayside, New York, are both charged with one count of conspiring to traffic in counterfeit goods, and one count of trafficking in counterfeit goods. Each count carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the U.S. Department of Homeland Security, Homeland Security Investigations. He also thanked the New York Police Department for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jonathan E. Rebold is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Broward Residents Sentenced to 12 and 11 Years in Prison in Stolen Identity Tax Fraud Scheme Involving the Personal Identifying Information of Deceased IndividualsRead the Press Release
Two Broward County residents were sentenced to 12 and 11 years in prison for their participation in a stolen identity tax fraud scheme involving the personal identifying information of deceased individuals.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Maurice Exavier, 36, of Lauderhill, was sentenced to 145 months in prison, to be followed by three years of supervised release. Carline Maurice, 36, was sentenced to 132 months in prison, to be followed by three years of supervised release. The defendants were ordered to pay joint and several restitution in the amount of $1,265,611. Exavier and Maurice were previously convicted by a trial jury of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, one count of conspiracy to commit identity fraud, in violation of Title 18, United States Code, Section 1028(f), fifteen counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, Exavier and Maurice acquired and used the names, dates of birth, and Social Security numbers of deceased individuals to file false tax returns with the IRS that contained fraudulent claims for refunds. Exavier and Maurice sought payment of the refunds as Refund Anticipation Checks (RACs), checks issued by a bank for the amount of a claimed refund minus deductions for tax preparation and other service fees, if applicable. The RACs were then printed locally at a tax preparation company where a particular defendant had access or control. The refund checks were then deposited into a bank account controlled by defendants Exavier and Maurice so the funds could be used for the personal benefit and use of the conspirators.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Karen E. Rochlin.
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.
Twenty-Four Defendants Facing Federal Drug Charges for Transporting Heroin and Cocaine to Chicago Aboard Amtrak TrainsRead the Press Release
CHICAGO — Federal charges unsealed today accused 24 individuals of various drug offenses for allegedly using Amtrak trains to transport heroin and cocaine to Chicago from California.
One of the defendants is an Amtrak employee who allegedly stole a package of cocaine upon arrival at Chicago’s Union Station.
Authorities uncovered the alleged drug trafficking through a multi-year investigation dubbed Operation Derailed. During the course of the probe and other closely related enforcement actions, authorities confiscated more than 60 kilograms of cocaine, more than 30 kilograms of heroin, a kilogram of fentanyl, five handguns, two rifles, and more than $1.8 million in cash. The charges seek forfeiture of approximately $9.3 million in illegal profits.
The indictments and complaints allege that wholesale quantities of heroin and cocaine were obtained from traffickers in Mexico and southern California, and transported from Los Angeles to Chicago aboard Amtrak’s commercial train line, Amtrak Express. Some of the drugs were concealed in automobile parts and pool filters, according to the charges. The drugs were picked up at Chicago’s Union Station and sold throughout the Chicago area, with some of the profits laundered back to southern California.
Several of the defendants were arrested this week. Arraignments and initial appearances in federal court in Chicago have not yet been scheduled.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division. Substantial assistance was provided by the Amtrak Inspector General’s Office and the Amtrak Police Department.
The investigation was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
“Our Office is working harder than ever with the DEA and other federal, state and local law enforcement partners to stop the flow of dangerous narcotics and opioids into Chicago,” said U.S. Attorney Fardon. “We will continue to aggressively investigate and prosecute the drug traffickers responsible for bringing these drugs into our communities.”
"Too many families are forever scarred by heroin,” said Special Agent in Charge Wichern. “I'm proud of the work done by these agents, officers and prosecutors who worked tirelessly to achieve these results, and I’m confident that with our continued partnership we will have increasing success."
“When IRS Criminal Investigation gets involved, the drug dealer's profits get derailed," said Special Agent in Charge Robnett. “IRS Criminal Investigation is committed to providing the resources and working together with the DEA and the United States Attorney's Office to fight the war on drugs. IRS CI brings and will continue to bring our money laundering expertise to disrupt and dismantle the trafficking of drugs into our communities.”
In U.S.A. v. Roque et al, 15 CR 485, 12 defendants were indicted for conspiracy to possess with the intent to distribute controlled substances: EDGAR ROQUE, 30, of Paramount, Calif.; RICHARD ROQUE, 32, of Paramount, Calif.; ANGELICA CERVANTES, 31, of Chicago; JUAN J. CERVANTES, 30, of Chicago; IVAN DIAZ, 26, of Downey, Calif.; PHILLIP DIAZ, 26, of Paramount, Calif.; MARTELL JACKSON, 33, of Chicago; ANTHONY KOON, 55, of Pueblo, Colo.; JOSÉ ANTONIO MIRELES, JR., 31, of Paramount, Calif.; JORGE LUIS OCHOA-CANELA, 36, of Paramount, Calif.; OMAR RAMIREZ, 24, of Compton, Calif.; and GERARDO SANCHEZ, 23, of Los Angeles, Calif. A 13th defendant, JESUS VALENCIA, 34, of Chicago, is charged in the indictment with attempting to possess with the intent to distribute a controlled substance. The indictment seeks forfeiture of approximately $5 million in cash.
In U.S.A. v. Aragon Contreras et al, 15 CR 447, six defendants were indicted for conspiracy to possess with the intent to distribute controlled substances, and conspiracy to commit money laundering: MANUEL ARAGON CONTRERAS, 32, of Paramount, Calif.; CESAR CARRILLO, 24, of South Gate, Calif.; EDUARDO FRANCO, 30, of Pico Rivera, Calif.; JOSE DAVILA, 33, of Pico Rivera, Calif.; RAFAEL COLLAZO, 22, of Paramount, Calif.; and BRIAN RIOS, 23, of Long Beach, Calif. The indictment seeks forfeiture of approximately $4.3 million in cash.
According to the charges, some of the defendants also transported the narcotics via FedEx from the Los Angeles area to hotels and other locations in Chicago. In the Amtrak shipments, some of the defendants placed GPS tracking devices inside parcels to allow them to monitor the narcotics as the packages travelled aboard trains to Chicago.
One of the packages containing cocaine was allegedly stolen by an Amtrak employee when it arrived in Chicago’s Union Station on July 31, 2014. The Amtrak employee, ROY J. GRIFFIN, 45, of Calumet City, and an acquaintance, DANIEL DOUGLAS, 43, of Blue Island, were indicted in U.S.A. v. Griffin et al, 15 CR 484, with theft of goods from a railroad car and possession with the intent to distribute a controlled substance.
Three defendants were charged in individual criminal complaints. ROY W. BURRIS, 36, of Hawaiian Gardens, Calif., was charged with possession with the intent to distribute cocaine. Authorities seized more than $144,000 in cash and five kilograms of cocaine after Burris allegedly sold the drugs to a buyer in the Los Angeles area on March 30, 2016, according to the complaint. STEVEN MENDOZA, 24, of Lynwood, Calif., was charged with conspiracy to possess a controlled substance with intent to distribute. Mendoza travelled to Chicago’s Union Station on at least four occasions in 2015 to pick up packages containing narcotics, according to the complaint. JULIO ANDRADE, 35, of Paramount, Calif., was charged with conspiracy to possess a controlled substance with intent to distribute. Andrade picked up a package of narcotics at Chicago’s Union Station in July 2014, according to the complaint.
The public is reminded that indictments and complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Assistant U.S. Attorneys Paul Tzur and Kavitha Babu are representing the government in Roque et al and Griffin et al, and Mr. Tzur is representing the government in the cases against Burris and Mendoza. Assistant U.S. Attorney Sean J.B. Franzblau represents the government in Aragon Contreras et al, and the case against Andrade.
Twenty-Five Indicted Federally in and Around Sampson County for Drug and Firearm ChargesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces a 49-count criminal indictment for Conspiracy to Distribute Controlled Substances, Continuing Criminal Enterprise, Money Laundering, and Firearm offenses arising out of a Title III wiretap investigation in Sampson County. The following defendants were indicted:
- Antonio Kevin McKoy, 30, of Garland, NC
- James Daniel McKoy, 51, of Garland, NC
- Bryant Douglas Carr, 37, of Roseboro, NC
- Andrekia Jolanda Parker, 23, of Garland, NC
- Anthony Lee Barnes, Jr., 30, of Turkey, NC
- Tony Chevallier, 30, of Turkey, NC
- Jafa McKoy, 37, of Roseboro, NC
- Deames Frederick Henry, 36, of Garland, NC
- Earl Jeffrey Melvin, 38, of Roseboro, NC
- Darryl Clifton McKoy, 34, of Garland, NC
- Jabarr Ryeheine Rudolph, 37, of Clinton, NC
- Brandon O’Brian Smith, 31, of Elizabethtown, NC
- William Darrell Garner, 38, of Fayetteville, NC
- Craig Anthony Melvin, 25, of Raleigh, NC
- Braylynn Spencer, 24, Garland, NC
- Greg Bright, 31, of Turkey, NC
- Bryan Derrick Carr, 31, of Rose Hill, NC
- Ryan Eric Carr, 30, of Clinton, NC
- Donald Ray Garner, 43, of Clinton, NC
- Derrick Tyrone Ingram, 33, Roseboro, NC
- Derrell Eugene Wilson, 55, of Warsaw, NC
- David Fitzgerald Williams, 35, of Garland, NC
- Robert Antonio Parker, 30, of Clinton, NC
- Harry Thomas Oates, Jr., 48, of Dudley, NC
- Russell Condell Bell, Jr., 26, of Roseboro, NC
The indictment alleges that the defendants were part of a violent drug trafficking organization operating in and around Sampson County.
The charges and allegations contained in the Indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is a federal Organized Crime Drug Enforcement Task Force (OCDETF) criminal matter being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sampson County Sheriff’s Office, Internal Revenue Service Criminal Investigation, Jacksonville Police Department, Onslow County Sheriff’s Office, New Hanover County Sheriff’s Office, U.S. Probation Office, the North Carolina State Bureau of Investigation and the North Carolina Departments of Revenue and Emergency Management.
Tuna Vessel Operator Convicted of Federal Offenses for Oil Discharges in American SamoaRead the Press Release
WASHINGTON – An American tuna fishing company that regularly unloaded its catch in American Samoa, was convicted and sentenced today for discharging oil into the South Pacific and for maintaining false records, announced Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips for the District of Columbia. The company, Pacific Breeze Fisheries LLC, owned the Fishing Vessel F/V Pacific Breeze, a tuna purse seiner that was responsible for the pollution.
Pacific Breeze Fisheries admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters off American Samoa without the use of required pollution prevention equipment. These discharges occurred on at least two occasions, in 2014 and 2015, before the vessel brought fish to a cannery in the port of Pago Pago, American Samoa.
The company further admitted that between October 2013 and July 2015, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The U.S. Coast Guard relies on such records to determine whether vessels are illegally dumping oil at sea. As a result, tons of oil sludge, waste oil and oily bilge water that were produced by the vessel remain unaccounted for.
The company pleaded guilty before U.S. District Court Judge Tanya S. Chutkan for the District of Columbia to four felony violations of the Act to Prevent Pollution from Ships, for failing to accurately maintain an Oil Record Book and for illegally discharging oily bilge water into the South Pacific. Under the terms of the plea agreement, the company will pay a $1.6 million fine, in addition to a community service payment of $400,000 for use in the National Marine Sanctuary of American Samoa. Though Pacific Breeze Fisheries does not currently manage any active fishing vessels, the company also agreed to implement an extensive environmental compliance plan in the event it resumes operations.
On Oct. 25, Jeon Seon Han, the former Chief Engineer of the F/V Pacific Breeze, pleaded guilty in the District of Hawaii for his role in obstructing the U.S. Coast Guard inspection of the vessel in American Samoa in 2015. Han admitted to lying to U.S. Coast Guard inspectors about the disposal of sludge and to ordering the disassembly of an illegal discharge system before the inspection. Sentencing for Han is scheduled for February 2017.
The case against Pacific Breeze Fisheries was investigated by U.S. Coast Guard personnel in American Samoa, Honolulu, Hawaii, and the District of Columbia. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson and Trial Attorney Brendan Selby of the Environmental Crimes Section and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney’s Office for the District of Columbia.
Tuna Vessel Operator Convicted for Oil Discharges Off American SamoaRead the Press Release
An American tuna fishing company that regularly unloaded its catch in American Samoa, was convicted and sentenced today for discharging oil into the South Pacific and for maintaining false records, announced Assistant Attorney General John C. Cruden of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Channing D. Phillips for the District of Columbia. The company, Pacific Breeze Fisheries LLC, owned the Fishing Vessel F/V Pacific Breeze, a tuna purse seiner that was responsible for the pollution.
Pacific Breeze Fisheries admitted that its engineers failed to document the illegal dumping of oily bilge water into the waters off American Samoa without the use of required pollution prevention equipment. These discharges occurred on at least two occasions, in 2014 and 2015, before the vessel brought fish to a cannery in the port of Pago Pago, American Samoa.
The company further admitted that between October 2013 and July 2015, senior engineers regularly failed to accurately record the transfer and disposal of oil waste in the vessel’s Oil Record Book. The U.S. Coast Guard relies on such records to determine whether vessels are illegally dumping oil at sea. As a result, tons of oil sludge, waste oil and oily bilge water that were produced by the vessel remain unaccounted for.
The company pleaded guilty before U.S. District Court Judge Tanya S. Chutkan for the District of Columbia to four felony violations of the Act to Prevent Pollution from Ships, for failing to accurately maintain an Oil Record Book and for illegally discharging oily bilge water into the South Pacific. Under the terms of the plea agreement, the company will pay a $1.6 million fine, in addition to a community service payment of $400,000 for use in the National Marine Sanctuary of American Samoa. Though Pacific Breeze Fisheries does not currently manage any active fishing vessels, the company also agreed to implement an extensive environmental compliance plan in the event it resumes operations.
On Oct. 25, Jeon Seon Han, the former Chief Engineer of the F/V Pacific Breeze, pleaded guilty in the District of Hawaii for his role in obstructing the U.S. Coast Guard inspection of the vessel in American Samoa in 2015. Han admitted to lying to U.S. Coast Guard inspectors about the disposal of sludge and to ordering the disassembly of an illegal discharge system before the inspection. Sentencing for Han is scheduled for February 2017.
The case against Pacific Breeze Fisheries was investigated by U.S. Coast Guard personnel in American Samoa, Honolulu, Hawaii, and the District of Columbia. The case was prosecuted by Senior Trial Attorney Kenneth E. Nelson and Trial Attorney Brendan Selby of the Environmental Crimes Section and Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney’s Office for the District of Columbia.