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16 December 2016
Ringleaders of Million-Dollar Shipping Theft Scheme SentencedRead the Press Release
Memphis, TN – Two men have been sentenced for their roles in a lucrative shipping theft scheme that defrauded FedEx and wireless carriers of more than $1.8 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, Christopher T. Crawford, 32, of Memphis; and Jordan West, 28, of New York City; orchestrated a conspiracy to commit interstate shipping theft of wireless mobile devices from both Verizon and AT&T throughout 2013 and 2014. The mobile devices were being shipped to New York City and throughout the country by FedEx.
Crawford was employed with FedEx during a portion of the scheme’s duration. He used fraudulent FedEx corporate shipping accounts to print labels, which were used to over-label boxes of wireless devices. These boxes were diverted to West and other known and unknown co-conspirators in New York City and other areas through interstate commerce. Each box of merchandise contained thousands of dollars worth of Verizon and/or AT&T wireless mobile devices. West and other co-conspirators sold the mobile devices to third parties.
As part of the fraud, West sent thousands in U.S. currency via FedEx to Crawford for a share of the profits. Additionally, in mid-2013, Crawford contacted a FedEx vendor call center in Tucson, Arizona to set up a fraudulent corporate shipping meter account via his wireless mobile telephone.
Both defendants knew the wireless devices were stolen when they engaged in acts to perpetrate the crime. Ultimately, the interstate shipping theft scheme defrauded FedEx of more than $1.8 million.
On Thursday, December 15, 2016, Judge Fowlkes sentenced Crawford to 33 months in federal prison.
On Friday, December 16th, Judge Fowlkes sentenced West to 18 months in federal prison.
In addition to their sentences, Crawford and West will collectively be required to pay $1,812,226.08 in restitution.
This case was investigated by the United States Secret Service, Federal Bureau of Investigations, and Memphis Cargo Theft Task Force.
Assistant U.S. Attorneys Damon K. Griffin and Tony Arvin prosecuted this case on the government’s behalf.
Pittsford Man Pleads Guilty to Million Dollar Food Stamp Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Irving Feldman, 61, of Pittsford, NY, pleaded guilty to food stamp fraud before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant owned Upstate Fish, Inc. at 826 Joseph Avenue in Rochester, NY. Feldman was authorized to accept and redeem food stamps as the owner of Upstate Fish, Inc. Food stamp benefits are issued by the Food and Nutrition Service of the United States Department of Agriculture (“USDA”) and are distributed to recipients through the use of Electronic Benefit Transfer (“EBT”) cards. When purchasing certain eligible food items, the beneficiary provides the EBT card through an EBT terminal at the authorized retailer. This electronic transfer of benefits is initiated at the retailer’s terminal by deducting benefits from the beneficiary’s account and crediting the amount through an electronic transfer directly from the United States Treasury Department to the retailer’s designated bank account. A retailer is prohibited from exchanging cash for food stamps.
Between January 2010, and October 2015, the defendant illegally purchased food stamp benefits for less than half their full value for cash from eligible beneficiaries. Feldman engaged in approximately $1,227,063 of illegitimate transactions.
In addition, the defendant directed beneficiaries to purchase fish at other fish stores using their EBT card. The beneficiaries would then bring the fish to the defendant at Upstate Fish, Inc. and Feldman would provide cash to the beneficiaries in amounts less than the cost to purchase the fish. The loss amount from this additional scheme was approximately $202,620.
“Federal programs that provide services such as food stamp benefits are designed to assist those in our community who are most in need, they are not intended to line the pockets of greedy business owners.” said Acting U.S. Attorney Kennedy. “Our Office will continue to work closely with our law enforcement partners at all levels to cast a wide net to catch these fraudsters and thereby protect American taxpayers.”“This fish market owner was caught running a food stamp fraud scheme that was truly breathtaking in scale,” said New York State Inspector General Catherine Leahy Scott. “I will continue to work collaboratively with my law enforcement partners to help ensure that unscrupulous business owners will not illegitimately profit from government sponsored public benefit programs meant for those who are in the most need of financial assistance.”
The plea is the result of an investigation by the U.S. Department of Agriculture, Office of Inspector General, under the direction Special Agent in Charge William G. Squires Jr., the Rochester Police Department, Economic Crimes Division, under the direction of Chief Michael Ciminelli, the Monroe County Department of Social Services, under the direction of Corinda Crossdale, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero, and the New York State, Office of Inspector General, under the direction of Inspector General Catherine Leahy Scott.
Sentencing is scheduled for March 14, 2017, at 3:30 p.m. before Judge Geraci.
Pittsburgh Man Admits Role in Cross-Country Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, Acting United States Attorney Soo C. Song announced today.
Sidney Pinnix, 50, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Sidney Pinnix was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for April 4, 2017. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Sidney Pinnix.
Pearland man pleads guilty to using fake TWIC card to gain entrance into Westlake facilityRead the Press Release
LAKE CHARLES, La. – U.S. Attorney Stephanie A. Finley announced that a Texas man pleaded guilty Thursday to trying to use a fake TWIC card to enter a Westlake plant.
Jacob Charles Travis, 32, of Pearland, Texas, pleaded guilty before U.S. Magistrate Judge Kathleen Kay to one count of fraudulent possession or use of an official pass. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Travis attempted to enter a petrochemical plant in Westlake, La., using a fake Transportation Worker Identification Credential (TWIC card) on May 23 and 24 of 2016 to perform work as a sub-contractor. Security guards questioned the use of the card both times, and Travis left the premises before his TWIC card could be verified. Law enforcement agents questioned Travis on May 26, 2016, and he admitted to buying a fake TWIC card to gain entrance into the facility. The plant is a Transportation Security Act regulated facility and workers are required to present a TWIC card to enter.
Travis faces up to five years in prison, three years of supervised release and a $250,000 fine. A sentencing date of March 9, 2017 was set.
The U.S. Coast Guard Investigative Service conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Press AdvisoryRead the Press Release
BINGHAMTON, NEW YORK – United States Attorney Richard S. Hartunian, joined by FBI Special Agent in Charge Andrew W. Vale, will hold a news conference at noon on December 20, 2016 at the Federal Courthouse in Binghamton, New York, to discuss the sentencing of Bruce Kane.
Bruce Kane pled guilty on June 13, 2016 to conspiracy to commit wire fraud. He is scheduled to be sentenced on December 20, 2016 at 11:00 a.m. by Senior United States District Judge Thomas J. McAvoy.
Members of the media will be permitted to bring cameras and phones into the press conference; cameras and phones will not be permitted in the courtroom.
What: News Conference to Discuss the Sentencing of Bruce Kane
When: Tuesday, December 20, 2016 12:00 at Noon.
Where: Federal Courthouse (First Floor), 15 Henry Street, Binghamton, New York
Owner of Boston Forensic Accounting Firm Charged with Tax FraudRead the Press Release
BOSTON – The owner of a Boston forensic accounting firm was arrested today and charged with tax fraud.
James Carey, 49, a certified public accountant and owner of Carey & Company, was indicted on one count of filing a false federal tax return.
As alleged in the indictment, Carey & Company administered bank accounts on behalf of insurance companies into which the insurance companies and their clients could make deposits, and from which payments could be made on behalf of and to the insurance companies. In or about November 2009, a customer of one of the insurance companies sent Carey & Company a payment of $594,217 intended for the insurance company, but during the months that followed, Carey allegedly transferred almost all of that money out of the account and used it for his own purposes. The money Carey allegedly misappropriated from the insurance company was taxable income, and Carey failed to report this income on both his U.S. Individual Income Tax, Forms 1040, and U.S. Income Tax Returns for S Corporations, Forms 1120S, for 2009 and 2010.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit is prosecuting the case.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owner and Operator of Educational Management Companies Sentenced on Tax Fraud ChargesRead the Press Release
Steven Ingersoll of Traverse City, Michigan was sentenced yesterday in Bay City, Michigan, to 41 months in prison for federal tax convictions, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation and John K. Gauthier,
Acting Special Agent in Charge, Chicago Area Office U.S. Environmental Protection Agency Criminal Investigation Division.
Ingersoll was the former owner and operator of Smart Schools Management and Smart Schools, Inc., educational management companies that ran two charter schools in Michigan—one in Traverse City and one in Bay City. Ingersoll failed to accurately report and pay taxes on payments he received from his educational management companies.
On March 10, 2015, Ingersoll was convicted of one count of tax evasion for 2009, one count of tax evasion for 2010 and one count of conspiracy to defraud the IRS—along with his co-defendant Roy Bradley, Sr—with respect to 2011.
Roy Bradley, Sr., of Bay City was also convicted in December of 2014 of violations of the federal Clean Air Act, for directing workers to improperly remove asbestos during a school renovation project. In March of 2015, he was sentenced to 60 months on those convictions. He has not yet been sentenced on his tax related conviction.
United States Attorney McQuade said. “Business owners and others who cheat on their income taxes are free-riding on the backs of the rest of us who pay our taxes. We hope that a prison sentence will deter this kind of conduct.”
This case was investigated by agents of the IRS-CI and EPA-CID.
Oklahoma Man Sentenced to 25 Years in Federal Prison for Producing Sexually Explicit Images of Children He Met OnlineRead the Press Release
CHICAGO — An Oklahoma man has been sentenced to 25 years in federal prison for producing sexually explicit images of children with whom he communicated online.
In several online conversations in 2014 and 2015, TODD NOBLE persuaded three minor girls to take sexually explicit photographs and videos of themselves. He then convinced the girls to send the images to him via text message or online messaging service. Several of the images depicted the victims’ private areas.
Noble was arrested in April 2015 after the parents of one of the girls, who lived in Evanston, discovered the images on their child’s iPhone.
Noble, 51, of Lindsay, Okla., pleaded guilty earlier this year to one count of production of child pornography. U.S. District Judge Andrea R. Wood imposed the sentence Thursday in federal court in Chicago.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.
“Defendant preyed upon the most innocent and vulnerable of victims – children,” Assistant U.S. Attorney April M. Perry argued in the government’s sentencing memorandum. “Defendant invaded the sanctity of these girls’ homes, victimizing them when they were just yards away from their parents who believed that that their daughters were safe.”
The Evanston victim was eleven years old when Noble began communicating with her online. In numerous conversations over the course of several weeks, Noble asked her to take sexually explicit photos and videos of herself and send them to him. According to Noble’s plea agreement, in one conversation the girl told him she was “not so sure,” and that she had “never done it before.” Noble responded with instructions on how to make the images more sexually explicit, the plea agreement states.
Noble admitted in the plea agreement that he engaged in similar online conduct with minor girls from Texas and Oklahoma. Noble told those girls that he was a teenager, and he sent the Oklahoma victim a photograph of what appeared to be a teenage boy, the plea agreement states.
The government is represented by Ms. Perry.
Ohio man sentenced for unlawful possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Donaven J. White, 21, of Coshocton, Ohio, was sentenced in federal court today to 46 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
White, who had previously been convicted of felony offenses in Belmont County, Ohio, was discovered in possession of a .22 caliber revolver in April 2016. He pled guilty to one count of “Prohibited Person in Possession of a Firearm” in September 2016.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Oakdale Man Sentenced to Probation for Defrauding Prospective Homebuilders and InvestorsRead the Press Release
PITTSBURGH - A resident of Oakdale, Pennsylvania, has been sentenced in federal court to five years of probation, a $1,000 fine and ordered to pay $27,500 in restitution on his conviction of wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Thomas Slack, 67, of Oakdale, Pennsylvania.
According to information presented to the court, Slack engaged in a scheme to fraudulently obtain money from prospective home builders seeking financing through loan programs administered through the United States Department of Agriculture ("USDA") Rural Development offices. Slack was a member and director of the Great Falls Development Group, a company which falsely purported to be an established residential real estate developer and builder. Slack falsely represented to prospective home builders and investors that he was associated with the USDA's Rural Development loan programs and that he could underwrite and pre-qualify applicants for the loan programs. Slack's false representations induced prospective home builders and investors to send money to him, believing that he was actively engaged in building homes and securing financing for the homes through the USDA, when, in fact, he was not.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the U.S. Department of Agriculture Office of the Inspector General for the investigation leading to the successful prosecution of Slack.
North Carolina Man Sentenced to Prison for Tax Evasion and Possession of an Unregistered FirearmRead the Press Release
A Kings Mountain, North Carolina man, who set up straw companies to evade income taxes and used cash from his business to build an underground bunker, was sentenced today to 24 months in prison for tax evasion and possession of an unregistered firearm, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Jill Westmoreland Rose for the Western District of North Carolina.
According to documents filed with the court, Reuben T. DeHaan, 44, owned a holistic medicine business, which he operated out of his residence in Kings Mountain under the names Health Care Ministries International Inc. and Get Well Stay Well. DeHaan admitted that, with the help of others, including Richard H. Campbell Jr., he set up straw companies and opened bank accounts in the name of the straw companies to hide his income and assets from the Internal Revenue Service (IRS). DeHaan also admitted to dealing extensively in cash to evade the payment of income tax. During the years 2008 through 2014, DeHaan earned more than $2.7 million in gross receipts from his holistic medicine business, but failed to file income tax returns for those years and evaded approximately $678,000 in income taxes due and owing. DeHaan also admitted to possessing a short barrel rifle and two silencers that were not registered to him in the National Firearms Registration and Transfer Record. A court-ordered search of DeHaan’s residence revealed an underground bunker with an arsenal of weapons, including a Bushmaster pistol that was illegally modified into a short barrel rifle and two unregistered silencers.
Evidence presented at DeHaan’s detention hearing showed that he had been a supporter of the sovereign citizen’s movement and had renounced his U.S citizenship, carried different passports issued by the “World Government of World Citizens”—an Internet site that provides passports for a fee—and an international driving permit in lieu of a North Carolina driver’s license. He also claimed he was exempt from the payment of taxes because he was an ordained “medicine man” whose earnings were exempt from taxation.
“With today’s prison sentence, Reuben DeHaan pays the price for his criminal conduct, including his multi-year efforts to evade tax through long-debunked sovereign citizen tactics,” said Principal Deputy Assistant Attorney General Ciraolo. “These claims and schemes, including the concealment of income and assets through straw companies, have been repeatedly rejected by the courts, waste government resources, and undermine the public’s confidence in the fairness of the tax system. Those who use such schemes to violate our nation’s tax laws will be held accountable and face the full force of all applicable federal criminal and civil penalties.”
“DeHaan denounced his American citizenship yet benefited greatly from our economy through his ‘natural healing’ business, which netted over $2.7 million in gross receipts,” said U.S. Attorney Rose. “He also used his untaxed income to build an underground bunker containing an arsenal of assault weapons, including illegal weapons. But this self-described ‘medicine man’ was also a tax cheat, who used a number of tactics to avoid paying his fair share on those earnings. Tax fraudsters like DeHaan increase the tax burden on honest Americans.”
“Schemes to conceal and insulate wealth in order to evade income tax, such as those utilized by DeHaan, are unfair to every taxpayer who obeys the law and pays their fair share,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “There are not different rules for different people in our society. The public should know that IRS CI will do everything we can to hold individuals accountable to the same tax laws that they are subject to, ensuring that our tax system is fair to everyone.”
In August, DeHaan pleaded guilty to one count of tax evasion and one count of possession of an unregistered firearm. In addition to the prison term imposed, DeHaan was ordered to serve three years of supervised release and to pay $567,665 in restitution to the IRS and $110,449 to the state of North Carolina. Campbell pleaded guilty in August to conspiring to defraud the IRS and will be sentenced at a later date.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney Michael Savage and Trial Attorney Mara Strier of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Couple Sentenced to Prison for Tax and Bank Fraud Related to Their Online BusinessRead the Press Release
A Greensboro, North Carolina couple, who operated an online sales business, was sentenced to prison today for tax fraud and bank fraud charges, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
Daniel Balson, 51, and Renee Balson, 53, were sentenced to serve 27 months and 16 months in prison, respectively, by U.S. District Court Judge Catherine C. Eagles of the Middle District of North Carolina. According to court documents, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. Daniel Balson admitted selling stolen merchandise through SSO. Although SSO earned over $1 million in gross receipts during tax years 2005 through 2011, the Balsons failed to report the operation of SSO and its gross receipts on their individual income tax returns. The Balsons also failed to report the income from SSO on a bank application for a mortgage loan modification in 2011.
“Not only did Daniel Balson steal and sell merchandise, he failed to report this illegal income on his tax returns year after year, and he and his wife concealed the income when requesting that the bank forgive a portion of their mortgage debt,” said Principal Deputy Assistant Attorney General Ciraolo. “The clear message of today’s sentencings is that the price for such lies to the Internal Revenue Service (IRS) and a federally insured financial institution is time in jail.”
“While doing business from behind a computer may provide a sense of security or anonymity to individuals like Mr. and Mrs. Balson, it is inconsequential to us whether a criminal operates online or in a brick and mortar location,” said Chief Richard Weber of IRS-Criminal Investigation. “IRS special agents are skilled at investigating all types of tax and related financial crimes and today’s sentencing is a testament to that hard work and commitment.”
On Aug. 2, Daniel Balson pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application and Renee Balson pleaded guilty to one count of making a false statement on a loan application.
In addition to the term of prison imposed, Daniel Balson was ordered to serve five years of supervised release, to pay $244,128 in restitution to the IRS, and to pay, jointly and severally with Renee Balson $70,984 in restitution to Bank of America. Renee Balson was also ordered to serve five years of supervised release.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara A. Strier of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Orleans Man Sentenced for Conspiracy to Traffick HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILBERT CLARK, age 30, of New Orleans, was sentenced yesterday after previously pleading guilty to conspiracy to distribute and to possess with intent to distribute heroin.
U.S. District Judge Carl J. Barbier sentenced CLARK to 30 months imprisonment to be followed by 6 years of supervised release.
According to court records, CLARK was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015. This Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Brandon S. Long was in charge of the prosecution.
Minneapolis Man Convicted of Trafficking Three Girls for Commercial Sex and Producing Child Pornography of Two GirlsRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced the trial conviction of DEUVONTAY SHELBY CHARLES, 21, who was originally indicted on March 7, 2016, in the District of Minnesota, for sex trafficking three minor girls and for producing and receiving child pornography of two minor girls. The jury returned a guilty verdict on December 14, 2016, after a six-day trial before U.S. District Judge Joan N. Ericksen. A sentencing date has not yet been set.
“Deuvontay Charles is a predator,” said Assistant United States Attorney Laura M. Provinzino. “He targeted vulnerable girls to traffic for commercial sex and to use to produce sexually-explicit images. Over the course of trial, the jury heard from four brave girls. Their stories are difficult to hear and were even more difficult for these victims to recount. The United States Attorney’s Office thanks the victims who courageously testified at trial and the jury who rendered this just verdict.”
“This conviction highlights the dedication and commitment of our excellent investigative partners,” said Special Agent in Charge Alex Khu of Homeland Security Investigations - St. Paul. “HSI is extremely proud of the cooperation between HSI and Anoka County Sheriff’s Office and other federal, state and local law enforcement agencies working to put people like Mr. Charles behind bars.”
“I am very proud of the collaborative work done on this case,” said James Stuart, Anoka County Sheriff. “Let this be another warning to those who seek to victimize others in the name of greed. If you choose this evil path, we will find you and prosecute you to the fullest extent of the law. We have made that commitment to the victims, and to the communities that we proudly serve, and will be relentless in delivering on that promise.”
As proven at trial, a concerned mother reached out to the Anoka County Sheriff’s Office in July 2015 to report that DEUVONTAY CHARLES was recruiting her 17-year-old daughter to engage in prostitution. In the defendant’s private messages, he described how her daughter could “make money” and promised travel to Las Vegas and that “life will be smooth sailing.” He told her that he would provide condoms and protect her from the “clients.” CHARLES also instructed her to save his phone number as “Daddy.”
That initial report led to law enforcement identifying additional juvenile victims. A 14-year-old girl identified that CHARLES had requested sexually-explicit images of her. Between July 2 and July 4, 2015, eight images displaying the child’s genitals were sent online to CHARLES. As proven at trial, CHARLES also sent two pornography images of an adult female and instructed the 14-year-old victim to send pictures of herself in those similar sexual poses.
Another 14-year-old victim was identified who was trafficked by CHARLES and who CHARLES used to produce sexually-explicit images in July 2015. CHARLES asked the victim to make a video of herself engaged in sexual acts. CHARLES also recruited that victim to engage in prostitution activity for him, asking if she wanted “to make money.” When asked what he meant, CHARLES replied “sex.” Knowing she was only 14 years old, CHARLES responded that while she is “kinda young,” there would be a lot of money to make.
As proven at trial, CHARLES also sent messages to another 17-year-old victim about making “quick money.” On August 21, 2015, CHARLES picked up the victim in Blaine, Minnesota, posted her as an “escort” on backpage.com, and trafficked her through August 26, 2015. CHARLES made her available for commercial sex acts at a hotel in Bloomington, Minnesota, that he paid for in cash and registered under a different name. As proven at trial, CHARLES received money from the victim as a result of the sex acts that she engaged in.
As proven at trial, when he committed these offenses, CHARLES was required to register as a predatory offender based on a 2014 conviction in Dakota County for soliciting a child to engage in sexual conduct.
This case is the result of an investigation conducted by Homeland Security Investigations, the Minnesota Bureau of Criminal Apprehension, Anoka County Sheriff’s Office, Dakota County Community Corrections, and the St. Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorney Laura M. Provinzino.
Defendant Information:DEUVONTAY SHELBY CHARLES, 21
Minneapolis, Minn.Convicted: • Sex trafficking of a minor, three counts
• Sex trafficking by use of force, fraud and coercion, two counts
• Production of child pornography, 12 counts
• Receipt of child pornography, two counts
• Commission of felony offense involving a minor when required to register as a sex offender, one countMillstadt Individual Pleads Guilty to Structuring Financial TransactionsRead the Press Release
Dean R. Kreher, 51, of Millstadt, Illinois, entered a plea of guilty to an Information charging two counts of Structuring Financial Transactions to Avoid Currency Transaction Reports, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Dean R. Kreher faces a statutory maximum prison sentence of up to 10 years, a fine of up to $500,000, and up to 3 years’ supervised release. Sentencing is scheduled for March 24, 2017.
As part of the plea, Kreher admitted to structuring over $200,000 in cash financial transactions to avoid a cash transaction reporting requirement for a cash transaction that exceeds $10,000. As part of the plea Kreher admitted to using a number of business and corporate entities to structure including K&K Subs, Inc. and DRK Properties through various accounts at Scott Credit Union. Some of the funds went to Windoor, a window and door company in Belleville, IL that Kreher was a partner in.
The prosecution is the result of an investigation by the Internal Revenue Service/Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
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Middletown, New Jersey, Investment Manager Charged with Using Ponzi Scheme to Steal $5.3 MillionRead the Press Release
NEWARK, N.J. – An investment manager with an office in Middletown, New Jersey, will appear in federal court today to face charges that he fraudulently concealed investment losses and diverted at least $5.3 million in investor money for his personal use, U.S Attorney Paul J. Fishman announced.
Vincent P. Falci, 57, of Middletown, was charged with two counts of wire fraud and one count of securities fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint unsealed today:
Falci controlled a number of investment funds under the names “Saber Funds,” and “Vicor Tax Receivables LLP” (the Vicor Fund). In addition to touting his investment skill and experience, Falci concealed losses from investors and falsely told them that his funds were growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.
The Saber Funds were a collection of investment funds that Falci created and operated, starting in the late 1990s or early 2000s. Falci told investors that the Saber Funds were conservatively invested in securities such as tax liens and that the fund’s investments continued to show positive returns. In reality, Falci redirected investor money to a number of riskier ventures, such as day trading and real estate. Many of these investments lost money, which Falci concealed from the investors.
On Sept. 18, 2015, Falci entered into a consent order with the N.J. Bureau of Securities in which he admitted to violating New Jersey securities laws while operating the Saber Funds. Among other things, Falci admitted to misleading investors and paying himself and family members over $1 million between 2006 and 2009. The order required Falci to pay restitution of $6,742,697.57.
In order to pay the Saber Funds investors the gains he had promised, Falci stole money from the Vicor Fund, which he controlled through his management entity “Vidon Capital Partners LLC” (Vidon). Even after the September 2015 consent order required Falci to divest himself of his controlling interest in all funds and management entities, Falci continued to use his control of the Vicor Fund and Vidon bank accounts to steal money from the Vicor Fund.
Altogether, Falci allegedly stole $5.3 million from the Vicor Fund between January 2015 and May 2016. While most of that money was used to repay prior investors in the Saber Fund, Falci siphoned over $500,000 of investor money to enrich himself and family members.
Each charge in the complaint carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Relatedly, the N.J. Bureau of Securities will today file a motion to enforce the terms of the consent order entered in N.J. Superior Court on Sept. 18, 2015 between the N.J. Bureau of Securities and certain related entities and individuals based on many of the same facts alleged in today’s federal criminal complaint. For information on the motion, contact Lisa Coryell at 973-504-6510.
U.S. Attorney Fishman credited inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, with the investigation leading to today’s charges. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Bureau Chief Laura H. Posner, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joseph Sorrentino, Staten Island, New York.
MS-13 Gangster Sentenced to Life in Prison for 2014 MurderRead the Press Release
ALEXANDRIA, Va. – Douglas Duran Cerritos, 20, of Falls Church, was sentenced to life in prison today for his role in an MS-13 gang murder in Northern Virginia in 2014.
According to court records and evidence presented at trial, on March 29, 2014, Cerritos and six other gang members murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. The gang members lured the victim to Holmes Run Park and brutally killed him by stabbing him repeatedly in the back and the neck, ultimately severing his head. When they were done they buried him in a shallow grave in the park. Cerritos was their leader, and he both planned and directed the murder.
A total of 13 defendants were charged in this case for a series of three murders and one attempted murder that took place in Northern Virginia between October 2013 and June 2014. Of those, six defendants pleaded guilty prior to trial. Six went to trial and were convicted of all charges on May 9. Cerritos went to trial separately and was convicted on September 22. Each defendant convicted at trial was sentenced to a mandatory sentence of life in prison. Please see the table at the end of this press release for additional information on each defendant.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police Department; Earl L. Cook, Chief of Alexandria City Police Department; and Barry M. Barnard, Chief of Prince William County Police Department, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are 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. 1:14-cr-306.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Pedro Anthony Romero Cruz
30, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
30 years
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
Life sentence plus 20 years
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
22 years and 8 months
Juan Carlos Marquez Ayala
23, Falls Church
Murder in Aid of Racketeering
Life sentence
Omar Dejesus Castillo
27, Arlington
Two Counts of Murder in Aid of Racketeering
Two life sentences
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
Life sentence plus 15 years
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
Life sentence
Araely Santiago Villanueva
20, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
Life sentence
Jose Del Cid
20, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
26, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
Two life sentences plus 10 years
Genaro Sen Garcia
21, unknown
Murder in Aid of Racketeering
Life sentence
Justice Department Announces New Steps to Expand Vital Law Enforcement Data Collection InitiativesRead the Press Release
Today, the Department of Justice provided an update on its longstanding efforts concerning the nationwide collection of data on law enforcement interactions with civilians, including data related to the use of force by law enforcement officers. The update includes the submission of a report to Congress outlining its plan for collecting data mandated by the Death in Custody Reporting Act (DCRA), and the publication of a notice in the Federal Register on the details of the collection method going forward under the DCRA.
“I am incredibly proud of the work that this department has done, in collaboration with our state, local, tribal and federal partners, to expand and improve data collection,” said Attorney General Lynch. “This work is vital. It will allow the nation to have a more informed and robust dialogue regarding use of force; it will improve transparency; and it will help to build stronger bonds of trust between law enforcement and the people we serve. The Department of Justice will continue to work alongside our partners to build on these efforts and to create a nationwide data collection system that is useful and meaningful for law enforcement and communities alike.”
In 2014, Congress passed the DCRA, which requires states and federal law enforcement agencies to submit data to the department about civilians who died during interactions with law enforcement or in their custody, whether resulting from use or force or some other manner of death, such as suicide or natural causes, and authorized the Attorney General to penalize non-compliant states. The DCRA is consistent with the recommendation of the President’s Task Force on 21st Century Policing that law enforcement “collect, maintain and report data . . . on all officer involved shootings, whether fatal or nonfatal, as well as any in-custody death,” and the department is committed to heeding this call.
The department is seeking comment on the Federal Register submission from all interested parties, including local, state, tribal and federal law enforcement, civil rights organizations and other community stakeholders. After reviewing and addressing these comments, the department will issue a final proposal, and plans to begin the data collection program in 2017.
The DCRA also requires federal law enforcement agencies to report information on deaths that occur during interactions with federal law enforcement agencies or in their custody, beginning with Fiscal Year 2016 (FY2016) data. FY2016 ended Sept. 30, 2016. On Oct. 5, 2016, the Attorney General issued a memorandum to federal law enforcement agencies formally notifying them of their reporting obligations under the DCRA. The collection of the FY 2016 data has begun and will continue through March 2017. In addition to the report submitted to Congress today, the department expects to issue a statistical report in 2017.
The department continues to implement other, longstanding, data collection programs. The DCRA does not impose a reporting requirement for ¬non-lethal¬ uses of force by law enforcement. In the absence of a statutory mandate, and in an effort to close this gap, the department is partnering with local, state, tribal and federal law enforcement to provide a means for national data collection. In 2015, and in collaboration with local, state, tribal and federal law enforcement the FBI began work on a “National Use of Force Data Collection,” an online portal to collect use-of-force data from law enforcement agencies across the country. In October 2016, the FBI announced the proposed pilot program in the Federal Register, and it has received comments from interested parties. After addressing those comments, the FBI will issue a final proposal and plans to begin the pilot data collection program in early 2017. The pilot study participants are expected to include the largest state and local law enforcement agencies, as well as the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and U.S. Marshals Service.
The department also is pursuing the Police Data Initiative (PDI), which is a data transparency project led by the department’s Community Oriented Policing Services (COPS) Office. PDI encourages participating law enforcement agencies to collect and publicly release various datasets. The initiative now includes 130 law enforcement agencies that serve more than 44 million people across the country. As part of the Initiative, the COPS office is working on the development of two open data guidebooks. The first will be a primer on open data for law enforcement executives and municipal officials and will be released in the summer of 2017. The second guidebook will provide a more in-depth analysis on effectively producing, releasing and using open data and is scheduled to be released in the summer of 2018.
In addition to these efforts, the department continues to collect and analyze data in other ways. This week, the Bureau of Justice Statistics issued three reports: 1) Mortality in Local Jails, 2000-2014 -Statistical Tables, 2) Mortality in State Prisons, 2001-2014 - Statistical Tables, and 3) Arrest-Related Deaths Program Redesign Study, 2015–16: Preliminary Findings. These reports are available at www.bjs.gov.
Separately, the FBI released the 2015 National Incident-Based Reporting System (NIBRS) report this week. NIBRS, which will completely replace the traditional Summary Reporting System by Jan. 1, 2021, will provide a more robust and complete data set that will provide greater insight into crime reports throughout the country.
These initiatives demonstrate once again the department’s deep commitment to the ideals of the President’s Task Force. The department will continue to work with local, state, tribal and federal agencies to encourage and support data collection and transparency beyond these projects.Jackson County Loan Officer Pleads Guilty to Bank FraudRead the Press Release
PANAMA CITY, FLORIDA – Kevin R. Griffin, 43, of Alford, Florida, pled guilty yesterday to bank fraud. The plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Griffin was employed as a loan officer for the Bank of Bonifay, which later became the First Federal Bank of Florida. Between 2010 and 2012, Griffin used his position as a loan officer to give customers loans that were not documented with the bank. These loans were funded by embezzling money from other customers’ bank accounts without authorization. Griffin obtained loans for customers using other customers’ bank assets as collateral, without permission, and forging loan documents. Griffin also embezzled money from bank customers for his own personal benefit.
Griffin faces a maximum of 30 years in prison. Sentencing for this case is currently set for March 2, 2017.
This case resulted from an investigation by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. Assistant United States Attorney Alicia Kim is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Honduran Man Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that YAIR ROCHEZ-MARTINEZ, age 37, a citizen of Honduras, was sentenced yesterday after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Judge Lance M. Africk sentenced ROCHEZ-MARTINEZ to serve one year of incarceration, followed by one year of supervised release, and a $100 special assessment fee.
According to court documents, ROCHEZ-MARTINEZ was previously removed from the United States on December 27, 2013. He was later found in the Eastern District of Louisiana on May 22, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Harvey Man Pleads Guilty to Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER ORGERON, age 33, of Harvey, pled guilty yesterday to crimes involving the sexual exploitation of children.
According to court records, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography. On June 25, 2015, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations executed a federal search warrant at ORGERON’s Harvey home. Computer forensic agents located over 26,000 images and 612 videos depicting the sexual exploitation of minors on ORGERON’s computers.
ORGERON faces a mandatory minimum sentence of five years and a maximum penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing for March 16, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Hartford Man Pleads Guilty to Distributing Heroin, Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL GAMERO, 24, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to heroin distribution and firearm possession offenses.
The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.
GAMERO and Tacuri were arrested on April 21. On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash. At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash.
GAMERO pleaded guilty to one count of conspiracy to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years. Judge Shea scheduled sentencing for March 13, 2017.
On December 8, 2016, Tacuri, 19, formerly of Hartford, pleaded guilty to one count of conspiracy to distribute heroin. He is scheduled to be sentenced on March 6, 2017.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gooding Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Isaac Guadalupe Valdez-Cervantes, 42, of Gooding, Idaho, was sentenced yesterday to 72 months in prison, followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Valdez-Cervantes pleaded guilty to the charge on July 21, 2016.
According to the plea agreement, on February 25, 2016, law enforcement officers from the Gooding County Sheriff’s Office executed a search warrant for Valdez-Cervantes’ residence in Gooding, Idaho, where they located a one-gallon zip lock bag containing 446 grams of a methamphetamine mixture and substance, and glass pipes and digital scales.
The case was investigated by the Gooding County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Four Northern California Real Estate Investors Convicted of Rigging Bids at Public Foreclosure AuctionsRead the Press Release
A federal jury yesterday convicted four real estate investors for their roles in a conspiracy to rig bids at public real estate foreclosure auctions held in Alameda County, California, the Department of Justice announced.
After a two-week trial, the jury convicted Alvin Florida Jr., Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz of one count each of conspiring to rig bids at foreclosure auctions between May 2008 and December 2010. The four defendants were charged in an indictment returned by a federal grand jury in the Northern District of California on November 19, 2014.
The evidence at trial showed that the defendants conspired with others to rig bids to obtain hundreds of properties sold at foreclosure auctions in Alameda County. The conspirators designated the winning bidders to obtain selected properties at the public auctions, and negotiated payoffs amongst themselves in return for not competing. They then held second, private auctions at or near the courthouse steps where the public auctions were held, awarding the properties to conspirators who submitted the highest bids.
In addition to yesterday’s convictions, over fifty individuals have pleaded guilty to criminal charges as a result of the department’s ongoing antitrust investigations into bid rigging at public foreclosure auctions in Northern California. Indictments are pending against several other real estate investors who participated in the conspiracy.
These convictions are the latest charges filed by the department in its ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office, in connection with the president’s Financial Fraud Enforcement Task Force.
The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Former VA Podiatry Chief and Sunrise Shoes CEO Indicted for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment Thursday against Anthony Lazzarino, 66, former Chief of Podiatry for the VA’s Northern California Health Care System, and Peter Wong, 58, founder and CEO of Sunrise Shoes and Pedorthic Service, charging them with health care fraud, conspiracy to pay and receive kickbacks on medical referrals, and conspiracy to commit wire fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing the Veterans Health Administration for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino referred patients directly to Sunrise in violation of VA policy, and agreed with Wong to offer kickbacks in return for such referrals. Finally, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements and omissions to the VA regarding where the shoes were manufactured, in the course of applying for an estimated $59 million contract.
This case is the product of an investigation by the Department of Veterans Affairs, Office of Inspector General, the Department of Veterans Affairs Police Service, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Lazzarino and Wong face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for each of the two conspiracy counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former University of Maryland Graduate Student Sentenced in Federal Court for Fraudulently Obtaining Federal Grant Funds to Pay for Doctorate ProgramRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Jermaine Dory, age 25, of Woodbridge, Virginia, today to three years of probation including 50 hours of community service, for wire fraud arising from his federal felony conviction for a scheme to submit false documentation to the University of Maryland to obtain over $40,000 in grant funds intended for minority participants in a doctorate program. Judge Chuang also ordered Dory to pay $33,420.50 in restitution, the amount of the grant minus monies already paid by Dory. Dory pleaded guilty on July 18, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and the Inspector General Allison C. Lerner of the National Science Foundation, Office of Inspector General.
The National Science Foundation (NSF) funded the 2012-2014 Louis Stokes Alliances for Minority Participation (LSAMP) Bridge to the Doctorate Fellowship Program (Program) at the University of Maryland in College Park. In order to participate in the Program, an applicant must provide evidence of participation in an LSAMP undergraduate program and submit a nomination from the applicant’s undergraduate LSAMP director or faculty member.
According to his plea agreement, Dory applied to the Program and on September 3, 2013, emailed the University of Maryland a document he had created that falsely purported to verify that he had participated in the LSAMP undergraduate Summer Bridge program in the California State University system during the summer of 2010. The document included fraudulent letterhead from California State University, Fullerton, and a fraudulent signature for the actual LSAMP Bridge to Doctorate campus director at a California State University campus.
Relying on the false verification document Dory had submitted, Dory was approved to join the Program. Dory participated in the Program during the Fall 2013 and Spring 2014 semesters, for which the University of Maryland applied $40,490.30 of NSF grant funds to Dory’s student account to pay for tuition, fees and stipends. These NSF grant funds were not available to other potential program applicants who had not submitted false documentation.
During the summer of 2014, University of Maryland officials investigated Dory’s application. Dory’s participation in the Program was terminated in August 2014 upon discovery of the false documentation. The University of Maryland credited the grant funds back to the NSF and suffered the loss for payment to Dory of $40,490.30.
United States Attorney Rod J. Rosenstein commended the National Science Foundation - OIG for its work in the investigation and thanked Assistant U.S. Attorneys Joseph R. Baldwin and David I. Salem, who prosecuted the case.
Former Norman Attorney to Serve 30 Months in Prison for Defrauding ClientsRead the Press Release
Oklahoma City, Oklahoma – Today, DANE THOMAS WILSON, 61, of Oklahoma City, was sentenced by United States District Judge Timothy D. DeGuisti to serve 30 months in federal prison for using a wire fraud scheme to embezzle from the clients of his law practice and also for failing to file a tax return, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Wilson was charged by Information and pled guilty on February 24, 2016. Wilson admitted that from December 2010 through December 31, 2011, while he was a licensed attorney practicing in Norman, Oklahoma, he defrauded his clients by misappropriating funds that he received on their behalf from insurance companies and other payors. Wilson admitted that he deposited the funds he received for the benefit of his clients into a client trust account, and then wrote checks to himself, made cash withdrawals, or transferred money from the client trust account in amounts that exceeded the attorney’s fees that he was contractually entitled to receive from each client. He admitted that, as a result of his actions, some of his clients received no money or less money than they were due from the settlements or judgments he obtained on their behalf. Specifically, Wilson admitted that he caused First American Bank in Oklahoma to use interstate wire communications with the bank’s processor in Texas to withdraw $40,000 from his client trust account. He admitted that this money was fraudulently misappropriated from insurance settlement funds that rightfully belonged to Wilson’s client, R.F.
Wilson also admitted that he knowingly and willfully failed to file a federal income tax return with the Internal Revenue Service for the tax year of 2011.
A hearing will take place in January 2017 to determine the total amount of restitution that Wilson will be required pay to his former clients and to the IRS.
This case was investigated by the Norman Police Department, the Oklahoma State Bureau of Investigation, the Oklahoma Bar Association, the Federal Bureau of Investigation, and IRS-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former Employee at a National Medical Supply/Equipment Wholesaler Faces up to Three Years in Federal Prison for Scheme to Steal Medical Products and Sell Them to InternetRead the Press Release
DALLAS — A former Carrollton, Texas, resident who worked as a sales agent for a national medical supply/equipment wholesaler, appeared in federal court yesterday and pleaded guilty to his role in a scheme to steal and resell pre-retail medical products, announced U.S. Attorney John Parker of the Northern District of Texas.
Daniel Edward Shrout, 59, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of theft of medical product. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Shrout, who now resides in Oklahoma, must also forfeit medical equipment that law enforcement seized from him during the investigation. A sentencing date was not set.
According to plea documents filed in the case, prior to his offense, Shrout worked for a lengthy period of time for Company A, a national wholesale distributor of medical supplies and equipment to office-based physicians and long-term health care providers. Company A is located in the Northern District of Texas.
Beginning on approximately January 12, 2012, Shrout manipulated and exploited Company A’s customer accounts to create false purchases and divert pre-retail medical products. Shrout then resold the stolen product via mass marketing over internet sales websites through an entity he created, Signature Surgical Supply, LLC.
Shrout caused private carriers, including UPS, to deliver the stolen product to him at locations under his control in Allen, McKinney, and Plano, Texas. As a result of Shrout’s scheme, Company A suffered a $594,849 loss.
The case is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Former Bank Officers and Walton County Man Charged in Bank Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – Anthony J. Atkins, 51, of Eufaula, Alabama, Samuel D. Cobb, 37, of Destin, Florida, and Bruce A. Houle, 57, of Inlet Beach, Florida, have been arraigned in court after a federal grand jury returned a seven-count indictment charging them with conspiracy to commit bank fraud, false statements to a federally insured financial institution; bank fraud, and mail fraud affecting a financial institution. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges the following:
In 2008, Atkins, as the president of GulfSouth Private Bank, and Cobb, as a vice president of GulfSouth, devised a scheme to conceal that the bank had mortgage loans in default. As a part of the scheme, Atkins and Cobb solicited Houle, Mark W. Shoemaker, Michael Bradley Bowen, and William Blake Cody to take out loans in their names with the bank. To persuade Houle, Shoemaker, Bowen, and Cody to engage in the scheme, Atkins and Cobb told these individuals that the loans would be non-recourse, meaning that, if the men defaulted, GulfSouth would have no recourse against them.
Thereafter, Atkins and Cobb caused loans to be issued for approximately $3.8 million to the men they had solicited. As a part of the scheme, Atkins and Cobb caused U.S. Department of Housing and Urban Development Settlement Statement, Form HUD-1s (“HUD-1”) to be prepared in connection with the loans issued by GulfSouth to Houle, Shoemaker, Bowen, and Cody. The HUD-1s falsely stated that the men provided cash for their respective transactions, but the amounts listed as “cash from borrower” on the HUD-1s was actually money provided by GulfSouth. Further, according to the indictment, Atkins, Cobb, Houle, Shoemaker, Bowen, and Cody submitted fraudulent security agreements that falsely represented that Houle, Shoemaker, Bowen, and Cody were obligated to repay their respective loans. As a result of the scheme, it appeared that the loans were performing.
In September 2009, GulfSouth received $7,500,000 in Troubled Asset Relief Program (“TARP”) funds from the United States Treasury. Thereafter, Atkins and Cobb allowed the condominiums that were collateral for the mortgage loans to be sold in short sales, resulting in a loss to GulfSouth. Further, Atkins and Cobb allowed additional lines of credit that they caused to be issued to be charged off of GulfSouth Private Bank’s books and records.
This case resulted from a joint investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). Assistant United States Attorney Tiffany H. Eggers is prosecuting the case. The trial is scheduled for February 6, 2017.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Federal Prison Sentences Handed Down to Odessa La Familia Motorcycle Club Members for Cocaine Distribution Conspiracy in Permian BasinRead the Press Release
In Midland, eight Odessa LaFamila Motorcycle Club members have been sentenced to federal prison for their roles in a cocaine trafficking operation announced United States Attorney Richard L. Durbin, Jr. and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Yesterday afternoon, United States District Judge Robert A. Junell sentenced 31–year-old Ruben Rodriguez, Jr. and 23--year-old Nicholas Dominguez Rodriguez to 151 months and 120 months in federal prison, respectively. Judge Junell also ordered that Ruben Rodriguez, Jr., pay a $10,000 fine. Previously, Judge Junell sentenced six other defendants as follows:
- Paul Reyes Rodriguez, age 36, to 188 months in federal prison;
- Patrick Amalio Carrillo, age 27, to 120 months in federal prison and a fine of $5,000;
- Roy Christopher Rodriguez, age 28, to 120 months in federal prison and a fine of $5,000;
- Arturo Brandon Campos, age 24, to 57 months in federal prison and a fine of $5,000;
- Renato Souza Paz, age 32, to 60 months in federal prison; and,
- Ryan Frausto, age 30, to 33 months in federal prison and a fine of $5,000.
In addition to the prison terms, Judge Junell ordered that all of the defendants be placed on supervised release for a period of five years after completing their respective prison terms. The Government also received forfeiture of various criminal proceeds derived from the defendants’ scheme including: an Odessa residence in the 1600 block of Sam Houston Avenue, three motorcycles, two cars, and approximately $195,000 in U.S. Currency seized by authorities during this operation.
All of the defendants pleaded guilty to conspiracy to possess with intent to distribute cocaine. By pleading guilty, the defendants admitted participating in a scheme which resulted in the distribution of multi-kilogram quantities of cocaine between August 2014 and May 2016.
“The convictions and sentences of these La Familia Motorcycle Club members demonstrates the continued cooperation between the FBI and our federal, state and local partners to protect the citizens in the Midland/Odessa area,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force comprised of the Midland County Sheriff’s Office, Texas Department of Public Safety, Odessa Police Department, Midland Police Department, Ector County Sheriff’s Office. Agents with the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in this investigation. Assistant United States Attorney V. LaTawn Warsaw prosecuted this case on behalf of the Government.
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Federal Jury Convicts Armed Career CriminalRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Raimundo Hogan (42, Jacksonville) guilty of being a felon in possession of a firearm. Hogan, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing will be scheduled for early next year.
According to testimony presented at trial, on February 26, 2016, Hogan was a passenger in a car that was stopped for a seatbelt violation. Hogan fled from the car while holding a Glock pistol in his right hand. A patrol officer with the Jacksonville Sheriff’s Office and a civilian both observed Hogan with the pistol, which he threw and was recovered at the scene. After a short pursuit, Hogan was apprehended.
According to court documents and Florida Department of Corrections records, Hogan has prior convictions for armed robbery, aggravated assault, carjacking and possession of a firearm by a convicted felon. As such, he is prohibited from possessing a firearm and ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Fayette County Man Sentenced to More Than 12 Years for Unlawfully Possessing Large Amount of MethRead the Press Release
Memphis, TN – A Fayette County man has been sentenced to 151 months for unlawfully possessing a large amount of methamphetamine with intent to distribute it throughout West Tennessee. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between 2014 and 2015, Jonathan Bufford, 43, of Somerville, Tennessee, was involved in a large-scale drug trafficking organization responsible for distributing large amounts of meth in the rural areas of West Tennessee.
Bufford purchased distribution amounts of meth regularly from a source of supply in the Memphis area. After transporting the drugs to Fayette County, Bufford would hire couriers to drive the meth to other rural counties, to provide to various individuals for distribution.
In April 2015, the Fayette County Sheriff’s Office received an anonymous complaint that Bufford was selling drugs out of his Somerville home. Investigators executed a search warrant on Bufford’s home and recovered 108 grams of meth, three scales and three cell phones.
In September 2016, Bufford pleaded guilty before U.S. District Court Judge Samuel H. Mays Jr. to one count of unlawfully possessing with the intent to distribute and to distribute multiple grams of meth.
On Thursday, December 15, 2016, Judge Mays sentenced Bufford to 151 months in federal prison.
This case was investigated by the 25th District Attorney General’s Office and Fayette County Sheriff’s Office.
Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
Elkins man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dale Lee Sharp, 45, of Elkins, West Virginia, pled guilty today to illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Sharp, who was previously convicted of a felony offense in Randolph County, admitted to possessing a .380 caliber pistol, .270 caliber rifle, .30-30 caliber rifle, and a 12-gauge shotgun in February 2016. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dunkirk Man Pleads Guilty in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Jesus Pagan, 40, of Dunkirk, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and being a felon in possession of a firearm, before U.S. District Judge Elizabeth A. Wolford. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that David Jesus Pagan and co-defendant Rafael Burgos were the leaders of a drug trafficking organization that distributed illegal narcotics in the Dunkirk, NY area between 2013 and June 10, 2015. During that time, members distributed multiple kilograms of cocaine throughout the Dunkirk area.
Pagan was arrested in June of 2015 along with Burgos, Javier Pagan, Jr., Angel Pierluissi, Samuel Hernandez III, and Alvin Torres. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine, most of which was found in the defendant’s residence. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine. All defendants have been convicted.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Sentencing is scheduled for March 14, 2017, at 3:00 p.m. before Judge Wolford.
Drug Dealer Sentenced for Beating and Kidnapping Ex-GirlfriendRead the Press Release
ALEXANDRIA, Va. – Ahmad Sayed Hashimi, aka Jimmy Hashimi, of Woodbridge, was sentenced today to 25 years in prison for his role in beating and kidnapping his ex-girlfriend, in addition to leading drug distribution conspiracies.
Hashimi was indicted by a grand jury on four counts: 1) Conspiracy to Distribute Oxycodone; 2) Conspiracy to Distribute Cocaine; 3) Kidnapping; and 4) Interstate Domestic Violence. On September 29, after a three-day jury trial, he was convicted of all four counts.
According to court documents and evidence presented at trial, from approximately November 2009 through March 2015, Hashimi created and managed a wide ranging drug distribution scheme involving both powder cocaine and oxycodone obtained fraudulently from pharmacies. He distributed these drugs in Virginia, Maryland, and Washington, D.C. Hashimi’s drug distribution schemes involved at least 46.5 kilograms of powder cocaine and at least 30,000 30mg oxycodone pills, approximately 9,000 of which have been directly attributed to Hashimi. Ten co-conspirators have been convicted federally in connection with Hashimi’s drug schemes, and another 13 conspirators have been convicted in state courts.
According to court records and evidence presented at trial, Hashimi relied heavily on other people to distribute his drugs for him, believing that doing so insulated him from law enforcement attention. In the summer of 2011, Hashimi recruited his girlfriend, H.D., to begin assisting him with his cocaine scheme. Shortly thereafter, Hashimi concocted and pursued an opportunity to obtain oxycodone using fraudulent prescriptions passed at pharmacies. In connection with this scheme, Hashimi once again directed H.D. to act as a shield, recruiting runners to obtain pills from pharmacies, and obtaining and distributing the pills on his behalf. The money from the scheme was returned to and controlled by Hashimi.
According to court records and evidence presented at trial, throughout their relationship, Hashimi was extremely controlling of H.D., including regularly assaulting her by punching her in the head and face causing bruising and bleeding. On several occasions, neighbors called 911 as a result of hearing Hashimi beating H.D., which resulted in police responding to the home. On at least two occasions, H.D. had to go to the emergency room as a result of injuries sustained from beatings by Hashimi. Evidence at trial established that H.D. still has bony lumps on her forehead from being repeatedly hit there by Hashimi, and that she has lost partial hearing in one ear as a result of a particularly bad assault.
According to court records and evidence presented at trial, in the fall of 2013, the relationship between Hashimi and H.D. had further deteriorated. Shortly before Nov. 8, 2013, Hashimi became suspicious that H.D. had not returned to him all of the oxycodone pills he directed her to obtain from a pharmacy. This argument developed into a physical altercation in which Hashimi repeatedly punched and choked H.D. Ultimately, H.D. was able to flee the apartment, taking with her some of Hashimi’s cocaine prepared for resale. Upon discovering the theft of his cocaine, Hashimi began frantically looking for H.D. and vowing revenge.
According to court records and evidence presented at trial, a few days after the beating, Hashimi organized a group of five men and lured H.D. to a meeting place using a ruse. When H.D. arrived at the location for the meeting, Hashimi and the other men surrounded her vehicle with their cars to prevent her from leaving. The other men threatened the passengers that were with H.D. while Hashimi entered her vehicle and began violently beating her. One of the men Hashimi brought with him threatened to shoot one of the men in H.D.’s car for attempting to intervene on her behalf. Hashimi dragged H.D. from her vehicle into a getaway car. While one of the other men drove away, Hashimi continued to repeatedly punch H.D. in her head and face. Eventually, Hashimi’s getaway vehicle arrived at Hashimi’s own vehicle. Hashimi then dragged H.D. into the front passenger seat of his vehicle, and drove into the District of Columbia. During this time, H.D. was able to call 911, but Hashimi cut off the call and answered the call back, telling the dispatcher that there was no problem. He threatened to kill H.D. He continued to beat her as he drove. At a momentary stop at a red light in the District of Columbia, H.D. was able to run from the vehicle and escape to police assistance. The police took her to the emergency room in D.C. where she received medical treatment for her substantial injuries.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Sean M. Welsh prosecuted the case.
This case was investigated by the FBI, Fairfax County Police Department, Loudoun County Sheriff’s Office, Prince William County Police Department, Alexandria City Police Department, Arlington City Police Department, and the Montgomery County (Maryland) Police Department.
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-135.
District Man Sentenced to 24 Years in Prison for Killing Man After Home InvasionRead the Press Release
WASHINGTON – Joseph Jennings, Jr., 36, of Washington, D.C., was sentenced today to 24 years in prison for killing a man this year after breaking into his condominium in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Jennings pled guilty in October 2016, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. He was sentenced by the Honorable Michael Ryan. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, Jennings spent the early morning of Jan. 22, 2016 getting high at his residence in Southeast Washington. Later that morning, according to the government’s evidence, Jennings joined with two other men in a plan to break into a condominium in the 400 block of M Street NW and steal marijuana. At about 9:48 a.m., Jennings used an object to forcibly pry open the locked front door to the building. One of his accomplices waited nearby, while Jennings and the other man continued inside. As they attempted to gain entry to the unit through a sliding glass balcony door, the victim, Matthew Shevlin, fled out of the front door and began screaming for help.
Jennings chased Mr. Shevlin, and a struggle ensued before Mr. Shevlin got away. The other man, meanwhile, took a mason jar of marijuana from the apartment. Mr. Shevlin threw a flower pot at the man’s head and got into a second struggle with Jennings. During this struggle, Jennings shot Mr. Shevlin, 37, who later died of multiple gunshot wounds.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate James Brennan and Supervisory Paralegal Specialist Sharon Newman. Finally, he expressed appreciation for the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the matter.
Defendants Convicted for Roles in Methamphetamine Distribution Conspiracy Sentenced to Lengthy Federal Prison SentencesRead the Press Release
SAN ANGELO, Texas — This afternoon, Senior U.S. District Judge Sam R. Cummings sentenced seven defendants who were convicted earlier this year on various charges stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesse Huerra, 31, of San Angelo, was sentenced to life in federal prison. He was convicted at trial in September 2016 on one count each of possession with intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
Nancy Ann Flores, 41, of San Angelo, was sentenced to 15 months in federal prison. She pleaded guilty to one count of unlawful use of a communications facility.
Antonio N. Flores, 52, of San Angelo, was sentenced to 70 months in federal prison. He pleaded guilty to two counts of unlawful use of a communications facility.
Bruno Rudolfo Velasquez, 32, of San Angelo, was sentenced to 60 months in federal prison. He pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Joe Lopez, III, 33, of San Angelo, was sentenced to 125 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Jose G. Montez, 37, of San Angelo, was sentenced to 151 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Shayna Kaye McCann, 25, of Great Falls, Montana, was sentenced to 10 months in federal prison. She pleaded guilty to one count of misprision of a felony.
Most of the defendants have been in custody since their arrests on July 13, 2016, when numerous defendants were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. Twelve defendants are charged in the case.
The drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $5 million fine. A sentencing date has not been set.
Another defendant, Richard Jasso, 39, of San Angelo, was convicted at trial last month on one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole. A sentencing date has not been set.
One defendant, Silvia Prado, 36, of Austin, Texas, is scheduled to go on trial January 17, 2017. She is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Defendant Daniel Roy Lombrana, 29, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, with an enhancement for a prior conviction. He faces a statutory maximum of 10 years in federal prison and a $500,000 fine; sentencing is set for January 20, 2017. Defendant Adam Gabriel Castaneda, 30, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. He was sentenced earlier this month to 10 years in federal prison.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Defendant Senteced to 46 Months for Being A Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Robert Lyle Bertram, 51, of Shelby, Alabama, was sentenced today to 46 months of imprisonment by U.S. District Judge Kristi K. DuBose for being a felon in possession of a firearm. The judge ordered that Bertram undergo 3 years of supervised release upon completing his term of imprisonment and pay a $100 mandatory special assessment.
Bertram was indicted by a federal grand jury in February 2016 on one count of knowingly possessing a firearm as a felon. He was previously convicted of Promoting Prison Contraband, 2nd Degree, on September 20, 2007, in the Circuit Court of Elmore County, Alabama, and Robbery, 3rd Degree, on October 30, 2002, in the Circuit Court of Wilcox County, Alabama.
On January 10, 2015, Mobile County Sheriff’s Office Deputy Brannon Buettner was dispatched to the dead end of Apache Drive in Eight Mile, Alabama 36613, in reference to a vagrant that had been temporarily detained by off-duty Mobile Police Officer Tanner Whipkey. Upon arrival, Deputy Buettner spoke with Officer Whipkey as well as with two residents in the area, who advised that there had been several burglaries in the neighborhood and that they had went into the woods at the dead end of Apache Drive to look for possible suspects. The residents said they located a tent and called Officer Whipkey, who found Bertram in the area of the tent. Deputy Buettner determined that Bertram had a warrant for a parole violation for Robbery in the First Degree. Based on where Bertram and the tent were located, law enforcement determined that Bertram was trespassing on property belonging to Mobile County. Deputy Buettner found two guns in plain view inside the tent, a F.I.E. revolver and a Ruger revolver, as well as six .22 caliber bullets in Bertram’s front left pocket.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mobile Police Department, and the Mobile County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.Davenport Woman Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On December 14, 2016, Audra Sue Rowson, 43, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 50 months in prison for Conspiracy to Distribute Methamphetamine, announced United States Attorney Kevin E. VanderSchel. Rowson was ordered to serve three years of supervised release following her prison term and to pay $100 to the Crime Victims’ Fund.
Rowson pleaded guilty to Conspiracy to Distribute Methamphetamine on August 1, 2016. According to the plea agreement, Rowson conspired to distribute methamphetamine in the Davenport, Iowa, area from around January of 2014 and continuing until around March of 2016.
During that time, Rowson sold approximately 11.5 grams of methamphetamine to a confidential informant during the course of three controlled transactions. Law enforcement also executed a search warrant at Rowson’s Davenport residence where they located methamphetamine residue, drug ledgers, drug paraphernalia, and items consistent with the distribution of methamphetamine.
This matter was investigated by the Drug Enforcement Administration, the Scott County Sheriff’s Department, the Bettendorf Police Department, and the Quad City Metropolitan Enforcement Group. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Davenport Man Sentenced for Possessing a Molotov CocktailRead the Press Release
DAVENPORT, IA – On December 14, 2016, Theodore Cooke, 48, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison for Felon in Possession of an Unregistered Firearm, announced United States Attorney Kevin E. VanderSchel. Cooke was ordered to serve three years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Cooke pleaded guilty to Felon in Possession of an Unregistered Firearm on August 17, 2016. There was no plea agreement in the case. According to statements made by all parties during the sentencing hearing, Cooke was in possession of a Molotov cocktail on November 2, 2015. On that date, Cooke went to a Davenport residence to look for his girlfriend. After several attempts to get her outside, Cooke lit the Molotov cocktail on fire and threw it at a parked vehicle, causing the vehicle to start on fire. No one was injured during the incident. A Molotov cocktail is a destructive device under federal law and must be registered as a firearm. Cooke has two prior felony convictions in Scott County, Iowa; one for Burglary-First Degree, the other for Burglary-Second Degree. Cooke also has prior convictions for Assault with Injury, Simple Assault, Cruelty to Animals, and Assault.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Davenport Police Department, and Davenport Fire Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Davenport Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On December 14, 2016, Chad Allen Moens, 43, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 90 months in prison for Conspiracy to Distribute Methamphetamine, announced United States Attorney Kevin E. VanderSchel. Moens was ordered to serve three years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Moens pleaded guilty to Conspiracy to Distribute Methamphetamine on April 26, 2016. According to the plea agreement, Moens conspired with others to distribute methamphetamine in Davenport, Iowa, from June of 2014 to September of 2015. During that time, law enforcement used a confidential informant to purchase or attempt to purchase methamphetamine from Moens on four separate occasions.
In total, Moens provided or attempted to provide the confidential informant with approximately 190 grams of methamphetamine. Law enforcement also located approximately 55 grams of methamphetamine during a search warrant executed at Moens’ Silvis, Illinois, residence. According to statements made at Moens’ sentencing hearing, Moens traveled to Chicago, Illinois, and Omaha, Nebraska, to obtain methamphetamine, and then returned to the Davenport area to sell methamphetamine. Moens is responsible for conspiring to distribute nearly 900 grams of methamphetamine in the Davenport, Iowa, area.
This matter was investigated by the Drug Enforcement Administration, the Scott County Sheriff’s Department, the Bettendorf Police Department, and the Quad City Metropolitan Enforcement Group. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Dallas Woman Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution Conspiracy That Operated out of Pleasant Grove, Seagoville and Balch Springs Areas of DFW MetroplexRead the Press Release
DALLAS — A Dallas woman who, along with 18 co-defendants, was arrested in June 2016 in a joint operation led by the Dallas Police Department and the Texas Department of Public Safety, for their respective roles in a methamphetamine distribution conspiracy that operated out of the Pleasant Grove, Seagoville, and Balch Springs areas of the Dallas/Fort Worth metroplex, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Tina Connolly, 55, was sentenced by Chief U.S. District Judge Barbara M. G. Lynn to 240 months in federal prison. She pleaded guilty in October 2016 to one count of possession with intent to distribute methamphetamine. She has been in custody since her arrest in June.
According to documents filed in the case, Connolly admitted that on January 19, 2016, when law enforcement executed a search warrant for the hotel room where she was staying, officers located and seized distribution quantities of methamphetamine – approximately 298 grams, marijuana, heroin, and a firearm.
All of the 19 defendants indicted in the case have pleaded guilty to their respective roles in the conspiracy. Connolly is the first defendant to be sentenced in the case.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The case was investigated by the Dallas Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Corning Business Owner Sentenced on Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that the former owner and CEO of Cornerstone Homes, David Fleet, 52, of Corning, NY, who was convicted of mail fraud, was sentenced to three years probation and 100 hours of community service by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay approximately $88,000 in restitution to his victims.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Fleet owned a real estate business from 1997 to 2014 that ultimately came to be known as Cornerstone Homes. Cornerstone’s business involved the purchase, renovation and resale or renting of distressed homes.
In order to acquire the distressed homes, Fleet sold debentures to private investors promising annual rates of return of 8%-10%. Fleet thereafter caused Cornerstone to borrow approximately $25,000,000 from various banks, and to pledge the houses that had been acquired with private investor money as security for the bank loans.
By March 2010, Fleet knew that Cornerstone’s operating income was insufficient to pay its debt service to the banks and the private investors. The defendant also lost more than $2,000,000 in risky options trades. However, Fleet continued to solicit additional private investments without disclosing Cornerstone’s true financial picture, including the fact that he had more than $2,000,000 of Cornerstone’s capital. In March 2010, Fleet raised approximately $88,000 from approximately 13 investors based upon statements and representations that were materially misleading.
The sentencing is the result of an investigation by Inspectors of the United States Postal Inspection Service, acting under the direction of Inspector-In-Charge, Boston Division, Shelly Binkowski, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent in Charge Kathy A. Enstrom, New York Field Office.
Chico Man Pleads Guilty to Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Mark McLeod Wygant, 46, of Chico, pleaded guilty today to transportation of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellphone and hidden “spy cameras” that he had purchased for that purpose. He then transported those videos and photos from a location in Butte County to South Lake Tahoe. Wygant has been in custody since his arrest on January 29, 2015.
This case is the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Wygant is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on March 3, 2017. Wygant faces a minimum of five years and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Bullitt County Man Guilty of Enticing A Minor to Engage in Sexual ActivityRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty plea of a Bullitt County, Kentucky, man before District Judge David J. Hale, in United States District Court, on December 15, 2015, to a charge of enticing a minor to engage in sexual activity.
According to the plea agreement, and information presented in court, Jonathen Ray Howerton, 25, admitted to attempting to entice a 15-year-old girl to engage in sexual activity, on July 5, 2016. According to the agreement, Howerton was arrested without incident in the parking lot of a movie theater in eastern Jefferson County, which was the agreed upon location, to meet the 15-year-old. Unbeknownst to him, Howerton had been communicating with an Undercover agent from the Kentucky Attorney General’s Department of Criminal Investigation, who had assumed the persona of a 15-year-old female from Louisville. The contact began on June 22, 2016, when the UC used the online chat program, Omegle, to locate potential suspects who were attempting to meet underage children for sexual contact.
Following his arrest, and being advised of his constitutional rights, Howerton admitted that he had come to the location after meeting a 15-year-old girl online. He stated that he had communicated with the girl on both Omegle and KIK and that the smartphone on the front seat of his truck was the device he had used to communicate. Howerton confirmed that he intended to engage in sexual activity with the girl but qualified “only if she wanted to.” He acknowledged that 15 was younger than the age of consent in Kentucky.
Howerton remains in the custody of the United States Marshal Service awaiting sentencing before Judge Hale at a later time. The United States will ask for a ten year prison sentence followed by a ten year period of supervised release.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Kentucky Attorney General’s Department of Criminal Investigations conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Buffalo Man Pleads Guilty to Tonawanda Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Nicholas Graham, 45, of Buffalo, NY, pleaded guilty to bank robbery by use of a dangerous weapon before Chief U.S. District Judge Joseph P. Geraci, Jr. The charge carries a maximum penalty of 25 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael Adler, who is handling the case, stated that on January 8, 2016, the defendant aided and abetted two other individuals in a bank robbery at the Evans Bank located at 2800 Niagara Falls Boulevard in Tonawanda, New York. Graham drove the individuals to the bank in a 2007 Infiniti around 5:45 p.m. The defendant remained in the vehicle and acted as both the lookout and the getaway driver.
During the robbery, the two individuals were masked and wore nearly identical uniforms including dark tan jackets with hoods, dark colored baseball caps, dark colored masks, and tan pants. Once inside the bank, the masked individuals aimed BB guns, that appeared to be real pistols, at customers and employees, ordering them to get down so nobody would get hurt.
Following the robbery, law enforcement officers tracked the defendant and the two individuals to the Scottish Inn Motel on Niagara Falls Boulevard. Graham was detained at the motel. Officers found items at the motel including cash, clothing worn by the robbers, the BB guns, receipts for the purchase of the guns, and several identification cards.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold.
Sentencing is scheduled for April 20, 2016, at 10:00 a.m. before Judge Geraci.
Bucks County Judge, Lower Southampton Director of Public Safety, and Pennsylvania Deputy Constable Charged with Conspiracy and Money LaunderingRead the Press Release
John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 69, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania were charged in an Indictment,[1] unsealed earlier today, with one count of conspiracy to commit money laundering and three counts of money laundering, announced United States Attorney Zane David Memeger.
Waltman has been a Magisterial District Judge in Bucks County, Pennsylvania since 2011. Hoopes has been the Director of Public Safety in Lower Southampton, Pennsylvania since February 2016. In this position, Hoopes has authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in Doylestown, Pennsylvania. Rafferty has been a Deputy Constable in Bucks County since 1998. Rafferty controls Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011.
According to the Indictment, from June 2015 to November 2016, Waltman, Hoopes, and Rafferty conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud. Moreover, from June 2016 to August 2016, Waltman, Hoopes, and Rafferty laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.
If convicted, the defendants each face a maximum possible sentence of 80 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christian O. Dalmau, 31, of Bronx, NY, pleaded guilty to possession of a firearm by an unlawful user of a controlled substance, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on the night of January 5, 2014, Dalmau was the sole passenger in a GMC Yukon vehicle that was being driven by another individual when the Yukon was stopped by Buffalo Police officers in the vicinity of Bailey Avenue and Cloverdale Avenues. The Yukon contained a hydraulic hidden compartment or “trap” in its cargo area. Inside the trap was a Taurus, 9mm semi-automatic handgun loaded with 13 rounds of ammunition.
Also inside the trap in the Yukon were three foil packets that each contained eight oxycodone pills, pills which were consistent in appearance with other oxycodone pills Dalmau left in the backseat of the Buffalo Police car in which he had been placed. Dalmau admitted to being addicted to the pills.
In the plea agreement, the government reserved the right to attempt to establish at sentencing Dalmau’s suspected involvement in connection with a shooting homicide that happened on Newfield Street shortly before the January 5th stop. Dalmau reserved the right to contest the government’s position.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Buffalo Police Department, under the direction Chief Daniel Derenda, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for April 26, 2017, before Judge Arcara.
Boise Man Sentenced to 8 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – Raymond Joseph Pruneau, 52, of Boise Idaho, was sentenced yesterday in United States District Court to 97 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that Pruneau serve five years of supervised release and to forfeit $100,000 in drug proceeds.
According to evidence presented in court, Pruneau conspired with others to distribute large quantities of methamphetamine in the state of Idaho between October of 2015 and February of 2016. Pruneau arranged with co-conspirators for delivers of methamphetamine in Ada and Canyon Counties. Investigating officers discovered the conspiracy and were able to make several controlled purchases of methamphetamine from Pruneau and his co-conspirators. A search of his home on February 11, 2016, resulted in officers locating 824 grams of methamphetamine and 415 grams of cocaine.
Codefendant, John Paul Tate, 48, of Caldwell, Idaho, was sentenced on November 16, 2016, to 240 months in prison for his role in the conspiracy. Judge Lodge also ordered Tate to five years of supervised release and to forfeit $100,000 in drug proceeds. Tate plead guilty on August 17, 2016.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, and City County Narcotics Unit of Canyon County.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Battle Creek Hotel Owner Indicted for Lying to the US Department of Labor About Minimum Wage PaymentsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles announced today that Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, appeared in federal district court today to be arraigned on charges that stem from false statements he made to the Department of Labor during an investigation into violations of the minimum wage law.
On December 14, 2016, a federal grand jury charged Patel with falsely advising the U.S. Department of Labor that he had paid his employees as required by federal minimum wage rules, when in fact he had required the employees to return the money to him after being paid. Each charge carries a maximum possible sentence of five years in prison and other penalties. Patel was released on bond after being required to surrender his passport and be subject to electronic monitoring.
U.S. Attorney Miles stated, “There are good reasons why we have a minimum wage law. Workers have the right to a fair wage for a job well done. If an employer tries to cheat his employees out of paying the bare minimum wage permitted in this country, the Department of Labor will come calling to make him follow this law. If that same employer is so brazen that he then lies to the Department of Labor about repaying his employees, federal agents will come calling with an arrest warrant.”
Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the U.S. Department of Labor, Office of Inspector General, Homeland Security Investigations, and the Battle Creek Police Department. “An important mission of the Office of Inspector General is to investigate allegations relating to obstruction of U.S. Labor Department functions and investigations. We will continue to work with our law enforcement and intra-Agency partners to investigate these types of allegations," stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General. Steve Francis, Acting Special Agent in Charge for HSI Detroit stated “HSI will continue to use its broad jurisdiction to hold employers accountable. One of our primary investigative priorities is to ensure a level playing field for all businesses through our worksite enforcement strategy.”
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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