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15 December 2016
New Zealand Man Convicted of Conspiracy to Export Sensitive Parts to ChinaRead the Press Release
A resident of New Zealand who traveled to Seattle in April 2016 to take possession of export-restricted parts designed for missile and space applications was convicted late yesterday in U.S. District Court in Seattle of two federal felonies related to the scheme, announced U.S. Attorney Annette L. Hayes. The jury deliberated about three hours before finding WILLIAM ALI, 38, guilty of conspiracy to violate the Arms Export Control Act and attempting to violate the Act. U.S. District Judge Thomas S. Zilly scheduled ALI’s sentencing hearing for March 16, 2017. ALI remains in federal custody pending sentencing.
According to records in the case and testimony presented at the two-day trial, ALI emailed several companies and distributors in April 2015 about purchasing certain accelerometers that are designed for use in spacecraft and missile navigation. These accelerometers cannot be exported from the United States without a license from the U.S. State Department, which Ali did not have. The Department of Homeland Security learned of Ali’s inquiries and began an investigation.
Over the next year, ALI communicated by phone and email with a Homeland Security undercover agent and with a person in China known in his emails as “Michael.” Michael was the person seeking the accelerometers, as well as certain gyroscopes that are designed for military use. ALI was working to find a way to purchase the devices and transport them secretly to Michael in China. In multiple emails, ALI made clear that he was aware that export of the accelerometers and gyroscopes was illegal. ALI sent the undercover agent nearly $25,000 for the devices – money he got from Michael. ALI traveled to Seattle and met with the undercover agent on April 16, 2016, at a downtown hotel. Shortly after ALI took possession of the devices he was arrested. ALI had with him an airline ticket to Hong Kong and a visa to travel to China.
The conspiracy count is punishable by up to five years in prison and a $250,000 fine. Attempt to violate the Export Control Act is punishable by up to 20 years in prison and a $1 million fine. These are the maximum sentences allowed by law. Judge Zilly will determine the appropriate sentence based on a number of factors including the background and circumstances of the defendant.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Thomas Woods and Rebecca Cohen.
New Town Man Found Guilty of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on December 14, 2016, Derick Colin Wilkinson, 26, New Town, ND, was convicted by a federal jury on charges of Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Evidence presented at trial showed that, during the early morning hours of April 26, 2016, Derrick Wilkinson assaulted an Indian male outside of a bar located on the Fort Berthold Indian Reservation. Wilkinson struck the victim multiple times in the face with his hands and stomped on the then-unconscious victim’s head approximately six times with his boots. Subsequent to the assault, and in order to avoid arrest, Wilkinson fled from the bar with his girlfriend and hid in the crawlspace of his friend’s house. As a result of Derick Wilkinson’s assault, the victim was rendered unconscious, required intubation to assist his breathing, and suffered nasal and orbital fractures.
Sentencing for Derick Wilkinson has been scheduled for March 20, 2017, in Bismarck, ND.
This case was investigated by the Federal Bureau of Investigation and Three Affiliated Tribes Police Department.
Assistant US Attorney Jonathan O’Konek and Special Assistant US Attorney Dawn Deitz prosecuted the case.
New Orleans Man Sentenced to 78 Months in Prison for Credit Card FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLIFF DURIO, age 25, of New Orleans, was sentenced today after previously pleading guilty to a one-count Indictment charging him with fraud in connection with access devices.
U.S. District Judge Lance M. Africk sentenced DURIO to 78 months in prison and 3 years of supervised release, and ordered him to pay over $35,000 in restitution to the victims of his fraud.
According to court documents, DURIO knowingly and with intent to defraud, possessed numerous counterfeit and unauthorized access devices, including credit cards and gift cards. DURIO was arrested at the New Orleans Airport after TSA screeners, while investigating a suspicious object in his luggage, discovered a bundle of over 500 credit cards. The cards were encoded and embossed with stolen accounts numbers, several of which had reported fraud. In total, DURIO was found with 46 gift cards with an aggregate value of $7,000, as well as 738 fraudulent credit cards with a total credit limit of over $4.3 million.
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
New Haven Man Pleads Guilty to CarjackingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELBERT LLORENS, 24, of New Haven, pleaded guilty today before U.S. Magistrate Judge Robert A. Richardson in Hartford to a federal carjacking offense.
According to court documents and statements made in court, on January 1, 2016, two men from out of state who were driving a rented 2015 Volkswagen Passat were victims of an armed carjacking in the vicinity of Hobart Street and Myrtle Street in Meriden. The victims reported that they had stopped to ask an individual, later identified as Kyle Valentine, for directions to a gas station. Valentine told the victims to follow his car, which they did. After traveling a few minutes, Valentine’s car stopped and LLORRENS pointed a handgun at one of the victims who was sitting in the passenger seat of the car, opened the door and stated “I want everything.” The victims exited the car and LLORRENS and Valentine stole their wallets and cell phones and then drove away in the Passat.
In pleading guilty, LLORRENS also admitted that, on January 3, 2016, he committed armed robberies of a gas station in East Haven and a gas station in New Haven; on January 4, 2016, he attempted to rob a convenience store in Milford; and, on January 5, 2016, he used a firearm and threats of violence to steal a 2006 Chevy Cobalt and a wallet from a victim in New Haven.
LLORRENS was arrested by New Haven Police shortly after the January 5 carjacking.
LLORRENS pleaded guilty to one count of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 25 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 15, 2017. LLORRENS has been detained since his arrest.
Valentine, 25, of New Haven, pleaded guilty to the same charge on August 11, 2016. He awaits sentencing, and also is detained.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Namibia Man Charged in Wire Fraud CaseRead the Press Release
Karl Christian Loibenbock, a/k/a “Karl Christian Loibenboeck,” a/k/a “Christian Bock,” of Windhoek, Namibia, was charged today by Indictment[1] with one count of wire fraud, announced United States Attorney Zane David Memeger.
According to the Indictment, from September 2013 to November 9, 2016, Loibenbock falsely represented that he procured and sold high-quality rough diamonds from Angola that were not certified as required by the Kimberley Process. In reality, Loibenbock was attempting to pass off topaz stones – which Loibenbock procured in Namibia – as rough diamonds to defraud a United States customer. On November 7, 2016, Loibenbock traveled from Namibia to the United States to complete the sale of approximately 100 carats of purported rough diamonds in his attempt to defraud the United States customer out of approximately $250,000.
Launched in 2003, the Kimberley Process is an international initiative to prevent rough diamonds from being used to finance civil wars in diamond-producing countries. The Kimberley Process controls trade in rough diamonds between participating countries through domestic implementation of a certification scheme that makes the trade more transparent and secure. According to the Kimberley Process, rough diamonds must be shipped in sealed containers and exported with a Kimberley Process Certificate that certifies that the rough diamonds have not benefited rebel movements.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the United Kingdom’s National Crime Agency, and is being prosecuted by Assistant United States Attorney Vineet Gauri.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
More than 44 Pounds of Meth Seized, 19 Arrested in Connection with Southsound Drug Distribution RingRead the Press Release
An investigation begun by the Drug Enforcement Administration and the West Sound Narcotics Enforcement Team in February 2014 resulted today in the arrest of 19 people with ties to a methamphetamine distribution ring, announced U.S. Attorney Annette L. Hayes. Law enforcement served 24 search warrants on locations in Washington and Arizona in connection with the case. More than 20 vehicles were searched in connection with the investigation. Today alone law enforcement seized more than 44 pounds of methamphetamine, more than 50 firearms, and more than $50,000 in cash.
Previous seizures associated with this drug ring include more than 5 pounds of meth and more than $28,000.
Those arrested today in the Western District of Washington will make their initial appearances today and tomorrow in U.S. District Court in Tacoma at 2:30 p.m. Those charged in the indictment include:
JOSE ERNESTO MOZEQUEDA VASQUEZ, 34. of Chehalis, Washington
JESUS BELTRAN, 34, of Phoenix, Arizona
ANTONIO DE LA MORA, 41, of Centralia, Washington
JUAN SALUD GARCIA ALMANZA, 30 of Centralia, Washington
VIOLETTA ROSALIA GUADARRAMA, 32 of Centralia, Washington
ERNESTO LUNA VASQUEZ, 44 of Kelso, Washington
MARIA CENTENO GALLEGOS, 37 of Chehalis, Washington
COLLIN MESINAS, 28 of Olympia, Washington
AUNDREA LYNN NATINS, 41 of Port Orchard, Washington
WILLIAM HAGMANN, 54 of Shelton, Washington
JON DANIEL BROWNFIELD, 58 of Shelton, Washington
KIMBERLY BROOKE GRAY, 36 of Port Orchard, Washington
REBECCA SUE GODSALVE, 52 of Bremerton, Washington
MARK AGNEW, 51 of Gig Harbor, Washington
ISAELA PACHECO CENTENO, 22 of Poulsbo, Washington
TERESA GOOS, 55 of Hoodsport, Washington
DEREK JOHNSON, 29 of Gig Harbor, Washington
KAREN KENMIR, 55 of Shelton, Washington
A nineteenth defendant, GERARDO ENRIQUE FLORES, 26, of Chula Vista, California, was arrested in California and will make his initial appearance on a criminal complaint in the Southern District of California.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
Today’s searches and arrests were led by the Drug Enforcement Administration (DEA) in Washington, Arizona, and California, and involved officers from the West Sound Narcotics Enforcement Team (WESTNET), Tahoma Narcotics Enforcement Team (TNET), Lewis County Sheriff’s Office Joint Narcotics Enforcement Team (JNET), Vancouver Police Department, Grays Harbor County Drug Task Force, Cowlitz County Sheriff’s Office, Thurston Narcotics Team (TNT), Lakewood Police Department, Washington State Patrol, Shelton Police Department, Mason County Sheriff’s Office, Kitsap County Sheriff’s Office, Olympic Peninsula Narcotics Enforcement Team (OPNET), Pierce County Sheriff’s Office, Bremerton Police Department, King County Sheriff’s Office, Valley Narcotics Enforcement Team (VNET), and the Lakewood Police Department.
The case is being prosecuted by Assistant United States Attorneys Marci L. Ellsworth and C. Andrew Colasurdo.
Mecklenburg Co. Man Facing Federal Charges in Connection with $19 Million Investment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A Mecklenburg Co. man is facing federal charges in connection with an investment scheme that defrauded 100 victims of $19 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned a criminal indictment against Richard Wyatt Davis, Jr., a.k.a. Rich Davis, 40, on Tuesday, December 13, 2016, charging him with one count of wire fraud, two counts of securities fraud, and three counts of tax evasion. The indictment was unsealed today following Davis’s arrest by law enforcement.
U.S. Attorney Jill Westmoreland Rose is joined in making today’s announcement by Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division and Michael C. Daniels, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to allegations contained in the indictment:
From approximately 2005 and continuing through in or about 2016, Davis defrauded more than 100 investors of more than $19 million by inducing his victims to invest in fraudulent investment funds controlled by him, including the DCG Commercial Fund I and DCG Real Assets, as well as other fraudulent investment vehicles (collectively, Davis Entities). In order to recruit his victim-investors, Davis made false misrepresentations regarding his credentials, including his educational background and about being a Registered Financial Consultant. Davis also purported to victim-investors that his fraudulent investment vehicles were low risk investments involving real estate, precious metals, and natural resources and touted the investments as a safe alternative to the stock market. Davis also falsely assured victim-investors that their investments were growing in value. For example, Davis falsely represented to a number of investors that Davis Entities transactions had received an average net internal rate of return of 32% percent, which was not true. As a result of his many lies and falsehoods, Davis’s investors frequently rolled over their entire retirement savings into entities controlled by the defendant.
Davis generally targeted investors residing in and around Charlotte, N.C. His clients included professional athletes and individuals who were recruited through Davis’s church. Davis also spoke at events for “preppers” and survivalists, thereby targeting victim-investors who were fearful of the stock market and the banking system. Davis preyed upon these investors’ fears of traditional financial markets and took advantage of their trust into someone who shared their religious views.
Contrary to promises made to his investors, in reality Davis invested none of the victims’ money. Rather, Davis transferred the majority of the victims’ funds to other entities he controlled, and used some of the money to make Ponzi-style payments to earlier investors in an effort to conceal and prolong the scheme. Davis also diverted victim-investors’ money to support his personal lifestyle, including to pay for his and his then wife’s personal credit cards, mortgage payments, nannies, a groundskeeper, a personal chef, vehicles, significant cash withdrawals, payments to family members, and to pay for large administrative and overhead expenses that did not increase value for investors.
To avoid fulfilling victim withdrawals requests, Davis provided numerous excuses, including that the victims’ money was unavailable because the funds were tied up in investments with specific maturity periods. Davis also falsely advised victims that they needed to invest additional funds in order to secure the return to their original investment. Davis was also frequently evasive or failed to report to investors’ inquiries about the status of their investments, and even threatened to discontinue managing the investments if investors asked for too much information.
The indictment also alleges that Davis filed false tax returns for 2009 and 2011 which reflected negative total income. Davis also failed to file individual income tax returns for 2010 and 2012. During the same time period, Davis submitted various financial statements to banks and courts, claiming his annual income was anywhere between $385,000 and upwards of $1.5 million.
Davis had his initial appearance today before U.S. Magistrate Judge David Keesler. Davis was ordered to remain in custody until his detention hearing, which was scheduled for December 20, 2016.
The wire fraud charge carries a maximum prison term of 30 years and a $1 million fine. The securities fraud charge carries a maximum prison term of 20 years and a $250,000 fine per count. And the maximum prison term for the tax evasion charge is five years and a $250,000 fine per count.
All the charges contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the U.S. Secret Service and the IRS for leading the joint investigation.
Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.In June 2016, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint against Davis. Without admitting or denying the allegations, Davis has entered into a partial settlement with the SEC, which bars him from any further sale of securities in a pooled investment vehicle, as well as from future violations of antifraud and securities registration provisions of the federal securities laws. Davis is also required to cooperate with a court-appointed receiver. See https://www.sec.gov/litigation/litreleases/2016/lr23554.htm
Maryland U.S. Attorney’s Office Collects over $46.9 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2016Read the Press Release
Baltimore, Maryland – U.S. Attorney Rod J. Rosenstein announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2016 in the District of Maryland reached $46,916,648.14. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
Attorney General Loretta Lynch announced today that the Justice Department collected $15.3 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The more than $15 billion in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions of the Department of Justice in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Rod J. Rosenstein. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland in FY 2016 collected $11,503,001.30 in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines and felony assessments.
The statistics show that the $35,413,646.84 collected in civil actions in Maryland, include affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws, and debts collected on behalf of several federal agencies, including the U.S. Small Business Administration, U.S. Environmental Protection Agency, U.S. Department of Health and Human Services, and the Drug Enforcement Administration. These cases include the successful resolution of investigations against PNC Bank, N.A. and Foundation Health Services, Inc., two environmental enforcement actions against Arkema, Inc. and Westvaco and the case of United States ex rel. Coyle v. Paradigm Spine. Additionally, the District of Maryland collected civil penalties under the Controlled Substances Act on behalf of the Drug Enforcement Administration from its investigations of CVS Pharmacy, Inc., Value Drug, Inc. and Drug City Pharmacy, Inc.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,635,010.69 in cases pursued jointly with these offices. Of this amount $3,526 was collected in criminal actions and $7,631,484.69 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the Department of Health and Human Services, Department of Defense and the Department of Education
The U.S. Attorneys’ offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, labor and controlled substance laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition, the U.S. Attorney’s Office for the District of Maryland, working with partner agencies and divisions, collected $8,078,5856 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the internet at: http://www.justice.gov/usao/reading_room/foiamanuals.html.
Mansfield Man Pleads Guilty to Threatening President of the United StatesRead the Press Release
BOSTON – A Mansfield man pleaded guilty today in U.S. District Court in Boston in connection with posting online threats to the President of the United States.
Andrew J. O’Keefe, 31, pleaded guilty before U.S. District Court Judge George A. O’Toole, Jr., who scheduled sentencing for March 16, 2017.
On May 13, 2015, an individual, later determined to be O’Keefe, posted a threat on an FBI website stating that he planned to kill President Barack Obama. On May 15, 2015, officers attempted to interview O’Keefe regarding the posting; however, O’Keefe refused to speak with them outside of his residence. A search warrant executed at O’Keefe’s home and vehicle resulted in the recovery of over 100 weapons including swords, double-edged knives, hatchets, spears, an air gun, and two laptop computers. O’Keefe was arrested on state charges and later charged federally.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit is prosecuting the case.
Man Alleged to be ‘Buckeye Bandit’ Charged with 7 more Armed RobberiesRead the Press Release
COLUMBUS – A federal grand jury indicted Ikechi W. Emeaghara, 27, of Columbus, today in a superseding indictment charging him with seven additional armed bank robberies. He was indicted on one other count of armed bank robbery on November 10.
Emeaghara is alleged to be the armed robber dubbed as the “Buckeye Bandit” by law enforcement. Investigation continues on at least 20 other robberies in central Ohio.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Zach Scott; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the superseding indictment returned today.
According to public court documents, Emeaghara allegedly brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:
- October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
- November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus
- December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
- July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*
- January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
- April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
- March 17, 2016 at the First Merit Bank on East Powell Road in Powell
- October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)
* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.
Armed bank robbery is a crime punishable by up to 25 years in prison. Armed robbery including forcing one or more persons to accompany the defendant without their consent is punishable by at least 10 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.
A federal indictment merely contains allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Lead defendant in LaSalle street kidnapping sentenced in federal courtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler, announced today the sentencing of a Detroit, Michigan, man, for his leadership role in an Indianapolis kidnapping conspiracy. John Thomas a/k/a Jay, 40, was sentenced to life imprisonment without parole by U.S. District Chief Judge Richard L. Young following his conviction in September 2016, of two counts of kidnapping and one count of conspiracy to commit kidnapping.
“Mr. Thomas is a career criminal with previous convictions in Detroit for home invasions and drug trafficking,” said Minkler. “When Thomas came to Indianapolis to kidnap two children, law enforcement ensured that his career would come to an end-permanently. Thomas will not sell any more drugs, he will not break into anyone’s home, and will not kidnap any more children. We have the hard working officers of the IMPD and Special Agents of the FBI and USMS to thank for that.”
Testimony in court indicated that Thomas was a drug dealer from Detroit. On February 28, 2015, Thomas’ former girlfriend (Individual A) stole a large quantity of narcotics and narcotics proceeds and traveled to Indianapolis with her minor child. Between February 28, 2015, and March 2, 2015, Thomas and members of his conspiracy traveled to Indianapolis in search of Individual A.
On March 2, 2015, members of the conspiracy conducted a home invasion on LaSalle Street in Indianapolis and kidnapped Individual A’s minor siblings, and transported them to Detroit and Kentucky, holding them for ransom. They used a hood to prevent one victim from identifying members of the conspiracy and used zip-ties to prevent his escape. They later cut the victim’s fingers to compel him to reveal the location of Individual A, and the narcotics and narcotics proceeds taken from Thomas. Both victims were returned safely following Thomas’ arrest.
FBI Special Agent in Charge, W. Jay Abbott said, “The swift and safe return of the victims and apprehension of the subjects was the result of the cooperative efforts of Federal, State and Local law enforcement agencies.”
Five other co-conspirators have pleaded guilty and were sentenced to:
Alaa Al-Salehi, a/k/a Big Boi, 24, 132 months
April Sandell, 27, 120 months
Bernando Reeves, a/k/a C-Note, 22, 72 months
Mohammed Karkash a/k/a MJ, 24, 36 months
Ali Hussain Ashore, 28, 18 months
Assistant United States Attorneys Tiffany J. McCormick and Jeffrey D. Preston, prosecuted this case for the government.
Kenner Man Pleads Guilty to Conspiracy to Commit Access Device FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN PAUL PIERRE, age 29, of Kenner, pled guilty today to conspiracy to commit access device fraud.
According to court documents, PIERRE’s co-conspirator, RYAN CLAVERIE, worked as a waiter in a restaurant in Metairie. During the course of his employment, CLAVERIE routinely handled the credit and debit cards of restaurant patrons. CLAVERIE had a credit card “skimmer” that extracted customer account information from the magnetic strip on the back of a credit card and a bank debit card and logged it for later download to a computer.
PIERRE and his co-conspirators used the captured electronic account information contained on the magnetic strips of these valid cards in order to manufacture and produce counterfeit credit cards with which to fraudulently obtain things of value for their own personal gain at several retail stores and establishments in the metropolitan New Orleans area.
PIERRE faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Mary Ann Vial Lemmon set sentencing for March 16, 2017.
U.S. Attorney Polite praised the work of the United States Secret Service, New Orleans Field Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office and the Kenner Police Department for investigating this matter. Assistant United States Attorney Loan AMimi@ Nguyen is in charge of the prosecution.
Justice Department Opens Investigations of Orange County, California, District Attorney’s Office and Sheriff’s DepartmentRead the Press Release
The Justice Department today opened a civil pattern-or-practice investigation into the Orange County District Attorney’s Office and the Orange County Sheriff’s Department, pursuant to the Violent Crime Control and Law Enforcement Act of 1994.
The investigation will focus on allegations that the district attorney’s office and the sheriff’s department systematically used jailhouse informants to elicit incriminating statements from specific inmates who had been charged and were represented by counsel, in violation of the Sixth Amendment. Additionally, the investigation will seek to determine whether the district attorney’s office committed systematic violations of defendants’ 14th Amendment due process rights under Brady v. Maryland, a 1963 Supreme Court case, by failing to disclose promises of leniency that would have substantially undermined the credibility of the informants’ trial testimony.
Orange County District Attorney Tony Rackauckas requested that the Justice Department review his office’s informant policies and practices and offered unfettered access to documents and personnel.
“A systematic failure to protect the right to counsel and to a fair trial makes criminal proceedings fundamentally unfair and diminishes the public’s faith in the integrity of the justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Our investigation will examine the facts and evidence to determine whether the district attorney’s office and sheriff’s department engaged in a pattern or practice of violating these rights. We are grateful to District Attorney Rackauckas for the unrestricted access he has offered to provide.”
“We appreciate the District Attorney's invitation to review his office's policies and practices, along with his assurance of unfettered access to documents and personnel in his office,” said U.S. Attorney Eileen Decker of the Central District of California. “We are confident that this investigation, and the cooperation being offered by the Orange County District Attorney's Office, will help restore public confidence in the integrity of the Orange County criminal justice system.”
Attorneys from the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Central District of California are jointly conducting this investigation. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the Central District of California, please visit https://www.justice.gov/usao/district/cdca.
Justice Department Opens Investigation of Orange County District Attorney’s Office and Sheriff’s DepartmentRead the Press Release
LOS ANGELES – The Justice Department today opened a civil pattern-or-practice investigation into the Orange County District Attorney’s Office and the Orange County Sheriff’s Department, pursuant to the Violent Crime Control and Law Enforcement Act of 1994.
The investigation will focus on allegations that the district attorney’s office and the sheriff’s department systematically used jailhouse informants to elicit incriminating statements from specific inmates who had been charged and were represented by counsel, in violation of the Sixth Amendment. Additionally, the investigation will seek to determine whether the district attorney’s office committed systematic violations of defendants’ 14th Amendment due process rights under Brady v. Maryland, a 1963 Supreme Court case, by failing to disclose promises of leniency that would have substantially undermined the credibility of the informants’ trial testimony.
Orange County District Attorney Tony Rackauckas requested that the Justice Department review his office’s informant policies and practices and offered unfettered access to documents and personnel.
“We appreciate the district attorney's invitation to review his office's policies and practices, along with his assurance of unfettered access to documents and personnel in his office,” said United States Attorney Eileen M. Decker. “We are confident that this investigation, and the cooperation being offered by the Orange County District Attorney's Office, will help restore public confidence in the integrity of the Orange County criminal justice system.”
“A systematic failure to protect the right to counsel and to a fair trial makes criminal proceedings fundamentally unfair and diminishes the public’s faith in the integrity of the justice system,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Our investigation will examine the facts and evidence to determine whether the District Attorney’s Office and Sheriff’s Department engaged in a pattern or practice of violating these rights. We are grateful to District Attorney Rackauckas for the unrestricted access he has offered to provide.”
Attorneys from the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Central District of California are jointly conducting this investigation. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the Central District of California, please visit https://www.justice.gov/usao/district/cdca.
Justice Department Files Suit Against Sterling Heights, Michigan, over Denial of Zoning Approval for a MosqueRead the Press Release
The Justice Department filed a lawsuit today against Sterling Heights, Michigan, alleging that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied special land use approval to allow the American Islamic Community Center Inc. (AICC) to build a mosque on five adjoining parcels of land located in the city.
The complaint, filed in the U.S. District Court of the Eastern District of Michigan, alleges that Sterling Heights discriminated against the AICC on the basis of religion when it refused to approve the land use request to allow the AICC to build a mosque. It further alleges that the denial imposed a substantial burden on the AICC’s religious exercise. The AICC, currently located in Madison Heights, Michigan, sought to build in Sterling Heights because the location is more convenient for its members and its current space has become inadequate for its religious, educational and social needs. The complaint alleges that its current facility is overcrowded during important religious observances and lacks space for educational activities, youth activities and special events.
“The Constitution protects the rights of religious communities to create the institutions and physical spaces they need to observe and practice their faith free from discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to aggressively protect the rights of all communities to live, pray and worship free from religious discrimination and substantial burdens in local land use decisions.”
“The law prohibits the government from discriminating on the basis of religion or imposing a substantial burden on the exercise of religion when making land use decisions,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We are alleging that Sterling Heights discriminated against the American Islamic Community Center on the basis of religion and placed a substantial burden on the community’s ability to exercise its religion by denying approval to build a mosque. We filed this lawsuit to protect the rights of all of our citizens to freely practice their religion and have a place to gather with members of their community.”
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
The case was brought by the department’s Civil Rights Division and the U.S. Attorney’s Office of the Eastern District of Michigan.
RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at (313) 226-9151 or [email protected].
More information about RLUIPA, including a report on the department’s enforcement, may be found at www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act.
Sterling Heights ComplaintJury Finds Alma Man Guilty of Drug Trafficking and Firearms ViolationRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Hurl Lemmon, age 43 of Alma, Arkansas, was found guilty on one count of Conspiracy to Distribute More than 500 grams of Methamphetamine and one count of Felon in Possession of a Firearm following a two and one-half day jury trial. The Honorable Chief Judge P.K. Holmes, III presided over the trial in the United States District Court in Fort Smith.
According to evidence presented at the trial, Lemmon and others were involved in a conspiracy to distribute approximately 50 pounds of methamphetamine that were seized by law enforcement in Potter County, Texas in January 2016. Lemmon’s conviction for being a felon in possession of a firearm was based on the seizure of 7 firearms by law enforcement during search warrant conducted at Lemmon’s residence in Alma, Arkansas on March 29, 2016.
Lemmon will be sentenced at a later date as determined by the court. The penalty for Conspiracy to Distribute more than 500 grams of Methamphetamine is not less than 10 years or not more than life imprisonment, not more than $10,000,000 fine, or both. The maximum sentence for Felon in Possession of a Firearm is not more than 10 years imprisonment, not more than $250,000 fine, or both.
This case was investigated by the Drug Enforcement Administration, the Department of Homeland Security, the Internal Revenue Service-Criminal Investigation Division, the Bureau of Alcohol, Tobacco and Firearms, the Potter County, Texas Sheriff’s Office, the Crawford County Sheriff’s Office, the Sebastian County Sheriff’s Office, the Bernalillio County, New Mexico Sheriff’s Office, the Fort Smith Police Department, and the 12th/21st Judicial District Drug Task Force.
Assistant United States Attorney Aaron Jennen and Co-Counsel, Assistant United States Attorney Candace Taylor, prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Jerome Man Sentenced to 30 Months in Prison for Possession of Child PornographyRead the Press Release
BOISE – Casey Gibson, 23, of Jerome was sentenced today in United States District Court to 30 months in prison followed by five years of supervised release for possession of child pornography, U.S. Attorney Wendy J. Olson announced. Gibson pleaded guilty on August 30, 2016.
According to the plea agreement, an electronic device at Gibson’s residence in Jerome accessed a website based in Russia that contained child pornography, and made postings offering to trade images of child pornography. In July of 2015, agents with the Department of Homeland Security, with assistance from the Twin Falls County Sheriff’s Office, contacted Gibson at his residence. Gibson gave agents consent to search his phone and e-mail accounts. Agents discovered evidence that Gibson used his e-mail account to receive, distribute, and possess images of child pornography. During a voluntary interview, Gibson admitted to receiving and viewing images of child pornography in his e-mail account. Agents discovered 11 images of child pornography, and 1 video containing child pornography, including images of prepubescent minors under the age of 12.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Twin Falls County Sheriff’s Office and the Jerome County Sheriff’s Office, and 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.”
Jefferson Parish Woman Sentenced for Bank FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACY NICHELSON, age 43, a resident of Metairie, was sentenced today for defrauding a local business.
U.S. District Court Judge Carl J. Barbier sentenced NICHELSON to 12 months plus 1-day incarceration to be followed by 3 years of supervised release. Additionally, NICHELSON was ordered to pay $16,418 in restitution to the banks she defrauded.
According to court documents, NICHELSON worked as an assistant of rental management for a New Orleans real estate business. From June 2012 until July 2013, NICHELSON embezzled $16,418 from her employer. NICHELSON issued approximately 13 unauthorized checks to herself and others by forging the signature of the business’s owner.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and Jefferson Parish Sherriff’s Office who assisted with the investigation. Assistant United States Attorney Julia K. Evans was in charge of the prosecution.
Jefferson County Jail Supervisor Found Guilty of providing Prisoner with Cell PhoneRead the Press Release
BEAUMONT, Texas – A jury has found a 43-year-old Beaumont, Texas man guilty of federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Donald Roy Kelly was found guilty by a jury of providing a prison inmate with a prohibited object and bribery of a public official following a three-day trial before U.S. District Judge Marcia Crone. The jury reached its verdict around 6:30 pm on Dec. 14, 2016.
According to information presented in court, Kelly was an evening shift supervisory corrections officer at the LaSalle Unit (downtown Jefferson County jail) in late 2014 and early 2015. Juan Saenz-Tamez, then leader of the Gulf Cartel was brought to the LaSalle Unit pending his trial for federal drug trafficking offenses in October 2014. Once at the LaSalle Unit and in the custody of Kelly, Saenz-Tamez was approached by Kelly and corruptly offered a cell phone to the inmate in exchange for money. Kelly engaged other individuals to assist him in the scheme. A cell phone was purchased by another individual and given to Kelly who provided it to Saenz-Tamez. Additionally, fast food was brought into the LaSalle Unit at Kelly’s direction for Saenz-Tamez. Saenz-Tamez had individuals attempt money transfers to Kelly in payment for his corrupt acts. Ultimately the cell phone was seized from Saenz-Tamez on Jan. 3, 2015. Kelly was indicted by a federal grand jury in April 2016.
Under federal statutes, Kelly faces up to 15 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, and the Drug Enforcement Administration. This case was prosecuted by Assistant U.S. Attorneys John Craft and Christopher T. Tortorice.
James Maxwell a/k/a "Sonny Spoon" Pleads Guilty to Narcotics ChargesRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces that James Maxwell a/k/a “Sonny Spoon”, age 43, of Macon, Georgia, entered a plea of guilty on December 15, 2016 to counts one and two of a Superseding Information charging him with possession with intent to distribute marijuana before the Honorable Marc. T. Treadwell, U.S. District Court Judge, in Macon, Georgia.
As a part of his plea agreement, Mr. Maxwell admitted that between January 13, 2014, and October 31, 2014, Ira Christopher Jackson and James Maxwell, a/k/a "Sonny Spoon" operated a multi-state distribution network in which kilograms of marijuana were purchased from sources of supply in Texas and California. Once purchased, the marijuana was mailed via the United States Postal Service to coconspirators working in Macon, Georgia and other locations. Individuals working for Jackson and Maxwell accepted the packages and held them until they were sold to drug dealers in Macon and other locations in the district.
Also during the investigation, proceeds from the drug sales were seized directly from Mr. Maxwell in October 2014 in Taylor County, Georgia. Agents learned that Mr. Maxwell was going to Texas to meet with Mr. Jackson with a large amount of cash to pay for marijuana. Law enforcement officers in Butler, Georgia stopped the limousine hired by Mr. Maxwell to drive him to Texas. During a search of the limousine, officers seized $184,980.00 in cash from him.
On October 17, 2014, Mr. Maxwell was provided with approximately nineteen (19) pounds of marijuana. The drugs were taken to Mr. Maxwell's studio located at 4546 Columbus Road in Macon where he later distributed the drugs to others who came to the studio to obtain the drugs.
On October 31, 2014, agents executed a search at a co-conspirator’s residence in Macon, Georgia. Mr. Maxwell's van was parked next to the house and a subsequent of the van uncovered additional nineteen (19) pounds of marijuana.
Sentencing for Mr. Maxwell was set for April 12, 2017 at 9:00 am in Macon. He faces a maximum sentence of five (5) years in prison, a maximum fine of $250,000, or both, on each count.
“This is not the first time Mr. Maxwell has been in federal court on drug violations,” said United States Attorney Peterman. “In 2007 Mr. Maxwell, a/k/a “Sonny Spoon” of “Dirty Bird” fame, was sentenced for drug and gun violations. Upon his release from prison he professed to the public to be a man who had learned his lesson and put his past behind him, speaking frequently to youth groups and civic organizations. It is very disappointing that a man of his talent, given the opportunity to atone and start over that he was, returned to a life of crime.”
The case was investigated by the U.S. Drug Enforcement Administration, United States Postal Inspection Service, U.S. Homeland Security Investigations and Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Charles L. Calhoun, Elizabeth Howard and Tamara A. Jarrett are prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Jamaican National Arrested in Connection with Fraudulent Lottery Scheme Based in JamaicaRead the Press Release
A 33-year-old woman was arrested yesterday in Boca Raton, Florida, following her eight-count indictment by a grand jury in the Western District of North Carolina, the Department of Justice announced.
Shashana Stacyann Smith, a Jamaican citizen residing in Florida, was charged with conspiracy to commit mail and wire fraud and seven counts of wire fraud in connection with a fraudulent lottery scheme based in Jamaica. Smith’s initial court appearance is today at 10:00 a.m. EST in U.S. District Court in the Southern District of Florida.
As alleged in the indictment, Smith participated in a conspiracy to defraud Americans and induce them to send thousands of dollars to Smith and others in the United States and Jamaica. Victims were contacted and falsely informed that they had won a lottery. They were instructed to send money for so-called fees in order to receive their prize, and were contacted repeatedly with additional requests to pay money. Victims never received any lottery winnings.
“International schemes with phony promises of large lottery winnings continue to target unsuspecting Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “These international lottery schemes frequently use co-conspirators in this country to perpetuate the fraud. The Department of Justice will continue to prosecute those who participate in these international based schemes.”
Beginning in late 2015, Smith is alleged to have joined a conspiracy to commit mail and wire fraud, and to have committed wire fraud in furtherance of the conspiracy. According to the indictment, Smith received victims’ money in the United States, kept a percentage of the money for her own benefit, and sent the rest of the victims’ money to recipients in Jamaica and the United States. The indictment further alleges that Smith transported thousands of dollars in cash to Jamaica on multiple occasions, and gave the cash to a co-conspirator there. If convicted of conspiracy, Smith faces a statutory maximum term of 20 years in prison, a possible fine, and mandatory restitution. If convicted of wire fraud, she faces a statutory maximum term of 20 years in prison on each count.
“The Postal Inspection Service is dedicated to protecting Americans from fraudsters, whether they are committing the fraud from within the United States or abroad,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “We will continue to work with the Department of Justice to fight these lottery schemes, educate the public, and bring the offenders to justice.”
This indictment is part of the Department of Justice’s effort working with federal and other law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.
Iowa Businessman Sentenced to More Than a Year in Prison for Failing to Pay Employment TaxesRead the Press Release
A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.
Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa. In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees. From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863. After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.
On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.
“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo. “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”
“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau. “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes. This sentence shows that failing to do so is criminal and there will be consequences.”
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act. Sentencing is scheduled for March 23, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman of the Tax Division, who prosecuted the case.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2002.
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Iowa Businessman Sentenced to More Than a Year in Prison for Failing to Pay Employment TaxesRead the Press Release
A Forest City, Iowa businessman was sentenced to 13 months in prison yesterday in federal court for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kevin W. Techau for the Northern District of Iowa.
Darrell Smith, 60, was the president and general partner of Energae, which was a minority investor in Permeate Refining LLC., an ethanol-production business in Hopkinton, Iowa. In his position at Energae, Smith had significant control over the finances of Permeate and was responsible for paying over to the Internal Revenue Service (IRS) the employment tax on behalf of Permeate’s employees. From the first quarter of 2011 through the third quarter of 2012, Smith failed to pay over $502,863. After Smith discovered that a subordinate employee had made some payments to the IRS, Smith stopped that employee from making further payments.
On June 22, Smith pleaded guilty to one count of failing to pay employment taxes. In addition to the term of prison imposed, Smith was also ordered to serve two years of supervised release.
“Willful failure to comply with employment tax obligations is a crime,” said Principal Deputy Assistant Attorney General Ciraolo. “Darrell Smith’s jail sentence sends the clear message that the Department will work to ensure that withholdings due to the United States are in fact paid to the Treasury and that honest employers are given the opportunity to compete on a level playing field.”
“Mr. Smith’s failure to pay employment taxes for over a year was an attempt to dodge his obligations to his employees and to the United States,” said U.S. Attorney Techau. “Our system and our citizens depend upon employers like Mr. Smith to be honest and pay what they owe in employment taxes. This sentence shows that failing to do so is criminal and there will be consequences.”
Smith’s co-defendant Randy Less pleaded guilty on June 14 to failing to pay employment taxes and violating the Clean Water Act. Sentencing is scheduled for March 23, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Techau thanked special agents of IRS-Criminal Investigation, FBI, the U.S. Postal Inspection Service and the U.S. Environmental Protection Agency, who conducted the investigation, and Assistant U.S. Attorney Tim Vavricek of the Northern District of Iowa and Trial Attorney Matthew Hoffman 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.
Illegal Alien Sentenced for Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SALVADOR ACOSTA-SALAS, age 34, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment charging him with possession of a firearm by an illegal alien.
U.S. District Judge Carl J. Barbier sentenced ACOSTA-SALAS to seven months’ imprisonment and one year supervised release following imprisonment. Following completion of his sentence, ACOSTA-SALAS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on July 30, 2016, ACOSTA-SALAS was stopped by the Mandeville Police Department for driving over the speed limit. ACOSTA-SALAS exited his truck and produced a Mexican identification card but did not have a driver’s license. The officer asked ACOSTA-SALAS if he had any weapons on him or in the vehicle. ACOSTA-SALAS advised that he had a pistol in the center console of the truck. The officer entered the cab of the truck and retrieved a Taurus Model PT 111 Pro, 9 mm semi-automatic pistol bearing serial number TDO85685. The officer also found two Taurus magazines loaded with ammunition. ACOSTA-SALAS illegally entered the United States prior to July 30, 2016, and had no pending status adjustments with the Citizenship and Immigration Services.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement - Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Mandeville Police Department in investigated this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Hartford Man Charged with Distributing Heroin Involved in Overdose of East Haddam ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HECTOR RAUL CINTRON, also known as “G” and “Big G,” 22, of Hartford, was arrested today on a federal criminal complaint charging him distributing heroin.
The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Following his arrest, CINTRON appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was ordered detained.
As alleged in court documents, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that Kerry Scanlan, of Avon, arranged to purchase heroin from CINTRON in Hartford. On March 18, 2016, the victim drove to Avon, picked up Scanlan and then drove to Hartford to purchase heroin from CINTRON.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
It is further alleged that, on two occasions in November 2016, CINTRON sold approximately 200 bags of heroin to an individual working with law enforcement.
The complaint charges CINTRON with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
Scanlan was arrested on the same charge on August 9, 2016.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, Connecticut State Police Statewide Narcotics Task Force East and East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Hamilton Man Sentenced to 212 Months for Transportation of A MinorRead the Press Release
United States Attorney for the Middle District of Georgia G.F. Peterman, III announced Rickey Goodwin, age 43, of Hamilton, Georgia was sentenced December 12, 2016 to 212 months imprisonment for transportation of a minor by the Honorable Clay D. Land, United States District Court Judge, in Columbus, Georgia. Mr. Goodwin pled guilty to Count Four of the indictment on August 3, 2016.
On September 21, 2014 a 16-year-old ran away from the home of her legal guardian in Alabama to Panama City Beach, FL to engage in prostitution with her biological mother. The teen was with Mr. Goodwin, a convicted felon on parole. A Facebook entry by Mr. Goodwin stated he was on his way to Birmingham “to pick up a lil care package.” Several ads on Backpage.com and other sites commonly used for prostitution depicted the runaway. In October 2014, the Columbus Police Department was informed that Mr. Goodwin and the teen were believed to be in Columbus, Georgia, involved in prostitution. On October 13, 2014, the Columbus Police Department traced the cell phone number on Backpage to Mr. Goodwin.
“The acts for which Mr. Goodwin stands convicted are truly loathsome,” United States Attorney G.F. Peterman, III said. “Without question he deserves the full measure of the sentence imposed upon him.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Crawford Seals prosecuted this case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fresno County Man Indicted for Weapons ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Michael Mathison, 26, of Selma, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, a Fresno police officer assigned to the Fresno County Probation Adult Compliance Team arrested Mathison after an encounter in late November. According to the complaint, Mathison attempted to flee when the officer approached him and allegedly threw a gun into a nearby yard. After officers caught Mathison, they searched the yard and found a firearm. Mathison is prohibited by law from possessing a firearm because he has previously been convicted of multiple felonies.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno County Probation Adult Compliance Team, and the Fresno Police Department. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
If convicted, Mathison faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Free Night at the Movies for Individuals with Disabilities, Especially the HearingRead the Press Release
BACKGOUND: The purpose of this event is to celebrate and promote the remediation work done by Caribbean Cinemas of the V.I., Inc. to comply with the Americans with Disabilities Act (“ADA”). By working with the U.S. Attorney’s Office to eliminate access barriers for individuals with disabilities, the theatres are now more accessible for the entire Virgin Islands community. Caribbean Cinemas has implemented these improvements under the ADA:
(1) increasing the amount of accessible seating;
(2) making restrooms accessible;
(3) providing assisted-listening systems for the hearing impaired; and
(4) providing closed-caption systems for the hearing impaired.
On August 6, 2010, the U.S. Attorney’s Office for the District of the Virgin Islands initiated an investigation under Title III of the Americans with Disabilities Act of 1990, as amended, and the Department of Justice’s implementing regulations regarding the accessibility of Caribbean Cinemas’ St. Thomas location. As a result of this investigation, Caribbean Cinemas agreed to remedy potential violations of the ADA. In November 2015, a site visit confirmed that Caribbean Cinemas’ renovations complied with the ADA, and in December 2015 its assisted-listening and closed-caption systems were tested.
The U.S. Attorney’s Office, along with the Disability Rights Center of the Virgin Islands, the Deaf Advocates Society, the Virgin Islands Association for Independent Living, and Caribbean Cinemas, invite persons with disabilities, especially hearing-impaired individuals, to attend a free showing where they will have the opportunity to use accessible devices and enjoy the full movie-going experience with other members of the community. This event is fully sponsored by Caribbean Cinemas, whose cooperation was instrumental in bringing this matter to a just resolution.
Former Senior Executive from Universal Forest Products Sentenced in White Plains Federal Court to 50 Months in Prison for Fraudulent Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT LEES, a former senior executive of Universal Forest Products, Inc. (“UFP”), was sentenced today by U.S. District Judge Kenneth M. Karas to 50 months in prison for conspiracy, mail fraud, money laundering, and making false statements in a loan application. LEES was found guilty by a jury on May 20, 2016, after a seven-day trial before Judge Karas.
Manhattan U.S. Attorney Preet Bharara said: “Robert Lees, a senior executive at Universal Forest Products, defrauded both HUD and a mortgage lender, causing millions of dollars in losses. With the jury verdict earlier this year and today’s sentence, Lees has been held accountable for his crimes.”
The evidence at trial proved that, in 2009, Michael Barnett, a real-estate developer, hired JK Scanlan Company, Inc. (“Scanlan”), to be the general contractor on Vineyard Commons, a senior housing community in Ulster County. In 2009, Scanlan entered into falsely inflated contracts with Shawnlee Construction, LLC (“Shawnlee”), a subsidiary of UFP for which LEES had responsibility, to be the subcontractor on Vineyard Commons responsible for framing and rough carpentry.
In 2009, a private lender (the “Mortgagor”), agreed to provide financing to Vineyard Commons, which financing would be insured by HUD. The Mortgagor and the borrower agreed that the proceeds would be disbursed incrementally after the borrower submitted draw requests based upon its completion of phases of the project.
On January 19, 2009, Shawnlee provided Scanlan a final bid to supply labor and materials for Vineyard Commons. In March and April 2009, representatives of UFP – including LEES – Shawnlee, and Scanlan entered into an agreement by which UFP and Shawnlee agreed to provide labor and materials in an amount approximately $865,000 greater than the final bid. LEES and others intended for the approximately $865,000 difference between the final bid and the inflated contract price to be returned to Barnett as a kickback, and further intended that the Mortgagor would unwittingly finance the kickback by disbursing HUD-insured funds on the basis of inflated draw requests.
In early 2009, Scanlan’s owner agreed to provide Barnett and Vineyard Commons with a million-dollar loan. In order to obtain this loan, Barnett informally pledged the anticipated $865,000 kickback to Scanlan’s owner as collateral.
In June 2009, Barnett needed additional funds in order to secure HUD-insured financing from the Mortgagor. UFP provided a $650,000 letter of credit to the Mortgagor. Barnett informally pledged the anticipated approximately $865,000 kickback to UFP as collateral, even though it was already pledged to Scanlan’s owner.
On July 2, 2009, Barnett and others provided HUD with a written estimate of the cost of Shawnlee’s work (the “Final Framing Price”) that exceeded Shawnlee and UFP’s actual price for labor and materials by approximately $865,000.
Beginning in July 2009, and continuing until January 2012, Barnett and Scanlan submitted contractor’s requisitions (the “Contractor Requisitions”) on forms provided by HUD to the Mortgagor, which the Mortgagor then sent to HUD. These Contractor Requisitions included a certification by a representative of Scanlan that “all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.” Each of these forms set forth the Final Framing Price as the actual cost of rough carpentry. Each month, the Mortgagor disbursed HUD-insured funds on the basis of the Contractor Requisitions. UFP set aside the “extra” from the Shawnlee/Scanlan contract in an accrual account falsely labeled as a rebate accrual.
In January 2010, LEES agreed with Barnett to pay Scanlan’s owner $200,000, which payment they understood would be guaranteed by part of Barnett’s interest in the approximately $865,000 difference between the contract price and the actual price for labor and materials provided by Shawnlee and UFP. Barnett sought this payment, and LEES agreed to make this payment, as a partial payment of Barnett’s obligation to Scanlan’s owner. LEES arranged for UFP to send a $200,000 check to a company controlled by Barnett that was not involved in the development of Vineyard Commons – which would then pass the money on to Scanlan’s owner. On January 15, 2010, UFP issued a check for $200,000 to Barnett’s company and mailed it from Michigan to Barnett in Dutchess County, New York.
On January 20, 2010, Barnett sent to Scanlan’s owner in Massachusetts a $200,000 check that he drew on the account into which Barnett had deposited the check he received from UFP.
Later in 2010, Barnett sought a $5 million loan from UFP. Among other incentives, Barnett offered to surrender the remainder of his kickback to UFP, allowing UFP to take that money into its own profit. With LEES’S encouragement, UFP issued the loan to Barnett.
The developer of Vineyard Commons defaulted on the loan after the project failed. HUD assumed the loan and sold the project, losing $28 million.
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In addition to the prison sentence, LEES, 62, of Lititz, Pennsylvania, was sentenced to three years of supervised release. Judge Karas also ordered LEES to forfeit $865,000 in ill-gotten gains and to pay $865,000 in restitution.
LEES’s co-defendants have been convicted. Barnett pled guilty on January 19, 2016, to conspiracy, and was sentenced by Judge Karas on October 26, 2016, to 37 months in prison. DiCello pled guilty on April 20, 2016, to conspiracy, mail fraud, money laundering, and making false statements in a loan application, and is scheduled to be sentenced by Judge Karas on January 19, 2017.
Mr. Bharara praised the outstanding efforts of HUD-Office of Inspector General.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael D. Maimin, James McMahon, and Won S. Shin are in charge of the prosecution.
Former Police Officer Indicted for Attempting to Support ISILRead the Press Release
ALEXANDRIA, Va. – Nicholas Young, 37, of Fairfax, who was formerly employed as a police officer with the Metro Transit Police Department, was indicted today by a federal grand jury on charges of attempting to provide material support to a designated foreign terrorist organization and obstruction of justice.
According to allegations in the indictment, between on or about Dec. 3, 2015, and on or about July 28, 2016, Young attempted to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL). The material support and resources that Young attempted to provide included, but was not limited to: Protection of ISIL personnel from capture or harm by attempting to mislead the FBI as to what Young believed to be his friend’s travel to Syria to join ISIL; and the provision of gift cards for ISIL.
According to allegations in the indictment, between on or about Dec. 3, 2015, and Dec. 5, 2015, Young attempted to obstruct and impede an official proceeding. In specific, Young believed an associate of his, who was actually an FBI confidential human source (CHS), had successfully joined ISIL in late 2014. During an FBI interview, Young was told the FBI was investigating the attempt of his associate (the CHS) to join ISIL. Nevertheless, in an attempt to thwart the prosecution of the CHS and himself, Young attempted to deceive investigators as to the destination and purpose of the CHS’ travel.
According to allegations in the indictment, on or about Nov. 20, 2014, Young attempted to obstruct, influence, and impede an official proceeding of the Grand Jury by sending a text message to the CHS’ cell phone in order to make it falsely appear to the FBI that the CHS had left the United States to go on vacation in Turkey. In actuality, Young believed the CHS had gone to Turkey and then to Syria in order to join and fight for ISIL.
Young faces a maximum penalty of 60 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
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 the indictment was returned. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and John T. Gibbs, and Trial Attorney David P. Cora of the National Security Division.
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-265.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Executive Director of Sequoyah Fund, Inc. Sentenced to 27 Months for EmbezzlementRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today the former Executive Director of the Sequoyah Fund, Inc. to 27 months in prison for embezzling more than half a million dollars from the fund, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Nell Cooper Leatherwood, 57, of Bryson City, N.C., was also ordered to serve three years under court supervision, and to pay a $5,000 assessment and $545,707.50 as restitution.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
“As the Executive Director of the Sequoyah Fund, Nell Leatherwood was tasked with supporting the economic development of businesses on the Qualla Boundary and providing much-needed financial services to its underserved populations. Instead, she repeatedly misused her access to the fund’s accounts and diverted its limited resources for personal expenses, taking careful steps to cover up her theft. My office will continue to work with our law enforcement partners to investigate and prosecute public servants who use their positions of power for their own enrichment,” said U.S. Attorney Rose.
According to filed court documents and today’s sentencing hearing, beginning in February 2006 through November 2013, Leatherwood was the Executive Director of the Sequoyah Fund, Inc. (SFI), a Tribal entity established to fulfill the commercial serving needs of small businesses operating on the Qualla Boundary. SFI receives funding in the form of grants from the Eastern Band of Cherokee Indians and the federal government. According to court records, SFI maintained corporate bank accounts, including checking accounts and a credit card account. Court records show that, as Executive Director, Leatherwood had access to checks and a credit card associated with these accounts and she was permitted to use the corporate credit card for business-related expenses, only. However, Leatherwood did not have the authority to endorse the SFI corporate checks, which required the signature of two board members.
Court records indicate that from about January 2010 to about November 2013, Leatherwood misused the corporate SFI credit card to pay for personal expenses. These credit card bills were later paid using SFI funds without the SFI board’s knowledge of the nature of the expenditures. Leatherwood also previously admitted to embezzling SFI funds by issuing herself checks linked to the corporate SFI bank account. From about December 2012 to about November 2013, Leatherwood wrote approximately 47 checks to herself, forging board members’ signatures on the checks, which she then cashed and deposited for her personal use. Over the course of approximately four years, court records show that Leatherwood embezzled approximately $65,000 by forging SFI checks.
Leatherwood pleaded guilty in June 2016 to one count of embezzlement from an Indian tribal organization; one count of theft concerning programs receiving federal funds; one count of access device fraud; and forty-seven counts of making, uttering, and possessing forged securities.
Leatherwood will be ordered to report to the Federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose commended the FBI for leading the investigation and the USDA-OIG for their assistance in the case. U.S. Attorney Rose thanked the Sequoyah Fund for their assistance throughout the investigation.
U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Former Business Owner Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Yahya A. Abdelhadi, 34, of Mobile, Alabama, was sentenced in federal court this afternoon. Abdelhadi is the former owner of the American Supermarket, a location where Mobile County sheriff’s deputies made controlled buys of “Spice,” or synthetic marijuana, during 2014. Following the undercover investigation, Abdelhadi and others were arrested on federal charges involving the distribution of controlled substance analogues and controlled substances, and money laundering. Abdelhadi pled guilty to three counts of conspiracy—conspiracy to distribute controlled substances, conspiracy to distribute controlled substance analogues, and conspiracy to launder drug money—in April of 2015.
United States District Court Judge Callie V. S. Granade imposed a sentence of 72 months on each count, and ordered that the sentences run concurrently. She also ordered that Abdelhadi will commence a three-year term of supervised release when he is discharged from incarceration. Judge Granade did not impose a fine but ordered that Abdelhadi pay $300 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Army Contracting Official Sentenced to Prison for Filing False Tax ReturnRead the Press Release
BIRMINGHAM – A federal judge on Tuesday sentenced a former contracting official for the U.S. Army at Redstone Arsenal in Huntsville to five months in prison and five months’ home confinement for filing a false income tax return, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge Madeline H. Haikala sentenced WILLIS EPPS, 61, on one count of filing a false tax return. A federal jury convicted Epps on the charge in June. Judge Haikala ordered Epps’ home detention as a condition of the year of supervised release she imposed following his prison sentence. She also ordered Epps to pay $16,470 in restitution to the IRS.
Before Epps’ retirement in January 2013, he was a high-level contracting official assigned to Army Contracting Command-Redstone. Beginning in 2010, Epps provided contracting support to the Army’s Non-Standard Rotary Wing Aircraft office and was named its director of contracts.
The jury convicted Epps of willfully filing an IRS tax return for 2013 that he knew was false. According to the evidence, Epps knowingly omitted $56,250 in income when he filed a return stating his joint taxable income for 2013 was $182,541.
The facts leading to the IRS-CI investigation of Epps arose during a separate multi-agency investigation into the Army’s NSRWA. Those investigating agencies were the Special Inspector General for Afghanistan Reconstruction, Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command and the FBI.
Assistant U.S. Attorneys Ramona C. Albin and Henry Cornelius prosecuted the case.
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Former Rockford Union Local President Sentenced to Federal PrisonRead the Press Release
ROCKFORD — A former union local president was sentenced today by U.S. District Judge Philip G. Reinhard to federal prison for embezzling from the union.
DAVID FLEURY, 50, of Rockford, was sentenced to two years in federal prison, to be followed by three years of supervised release. Fleury was also ordered to pay full restitution of $318,036 to Local 6 of the International Union of Bricklayers and Allied Craftworkers. Judge Reinhard granted the government’s request that it use funds in Fleury’s retirement account to pay restitution. Fleury had pleaded guilty on August 9, 2016, to embezzlement.
Fleury was the president of Local 6 from 2009 until 2015. In his written plea agreement, Fleury admitted that between January 2011 and May 2015, he embezzled over $250,000 from Local 6. He did so, according to the plea agreement, by having additional salary checks paid to him, using a union credit card for his personal expenses, siphoning off union dues that had been paid in cash, and using his union credit card to pay for travel expenses related to various union funds and keeping the reimbursements he received from those funds. Fleury admitted to using the embezzled monies to pay for personal expenses, including vacations and gambling at casinos. Fleury also admitted to signing false reports with the United States Department of Labor.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Purcell, District Director of the Chicago office of the United States Department of Labor – Office of Labor-Management Standards.
The government was represented by Assistant U.S. Attorney John G. McKenzie.
Forest Laboratories and Forest Pharmaceuticals to Pay $38 million to Resolve Kickback Allegations Under the False Claims ActRead the Press Release
Forest Laboratories LLC, located in New York, New York, and its subsidiary, Forest Pharmaceuticals Inc., have agreed to pay $38 million to resolve allegations that they violated the False Claims Act by paying kickbacks to induce physicians to prescribe the drugs Bystolic®, Savella®, and Namenda®, the Department of Justice announced today.
“Kickback schemes undermine the integrity of medical decisions and increase the costs of health care for everyone,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Such schemes are particularly of concern when they are designed to influence drug prescriptions, and the Department of Justice will vigorously pursue companies that subvert the law at the public’s expense.”
The settlement resolves allegations that Forest violated the Anti-Kickback Statute, which prohibits the payment of remuneration to induce referrals of items or services covered by federal health care programs, by providing payments and meals to certain physicians in connection with speaker programs about Bystolic®, Savella®, or Namenda® between Jan. 1, 2008 and Dec. 31, 2011. The United States contends that the payments and meals were intended as improper inducements because Forest provided these benefits even when the programs were cancelled (and Forest provided no evidence of a bona fide reason for the cancellation), when no licensed health care professionals attended the programs, when the same attendees had attended multiple programs over a short period of time, or when the meals associated with the programs exceeded Forest’s internal cost limitations.
As a result of today’s $38 million settlement, the federal government will receive $35.5 million and state Medicaid programs will receive $2.5 million. The Medicaid program is funded jointly by the state and federal governments.
“We are committed to protecting federally funded healthcare programs from fraud, and this settlement reflects that commitment,” said U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “We are particularly concerned with ensuring that drugs are prescribed based on patients’ needs and not on the personal financial interests of drug manufacturers or prescribing physicians.”
“Quality and patient safety must be the driving factors in the medical decision making process,” said Special Agent in Charge Lamont Pugh III of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) – Chicago Regional Office. “Attempting to sway physicians to deviate from those core values with illegal inducements, as alleged in this lawsuit, debilitates their unbiased medical judgment at the expense of patients and taxpayers.”
The settlement resolves allegations filed in a lawsuit by former Forest employee Kurt Kroening, in federal court in Milwaukee, Wisconsin. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Mr. Kroening will receive approximately $7.8 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.1 billion through False Claims Act cases, with more than $19.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Wisconsin, with assistance from the HHS Office of the Inspector General, the HHS Office of Counsel to the Inspector General, the Office of the General Counsel for the Defense Health Agency, the National Association of Medicaid Fraud Control Units, and the FBI.
The case is captioned United States ex rel. Kroening v. Forest Pharmaceuticals, Inc., et al., Case No. 12-CV-366. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Five Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that five previously deported aliens were indicted separately on December 14, 2016, by a federal grand jury in Harrisburg on illegal re-entry charges.
According to United States Attorney Bruce D. Brandler, Yunny Javier Aplicano-Gutierrez, age 30, a citizen of Honduras, was previously deported from the United States to Honduras in August 2009. He is alleged to have illegally reentered the United States sometime after August 2009 and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
Octavio Martinez-Calzada, age 44, of Mexico, was previously deported from the United States to Mexico in May 2003. He is alleged to have illegally reentered the United States sometime after May 2003 and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
Eduardo Jurado-Morales, age 34, of Guatemala, was previously deported from the United States to Guatemala in April 2008. He is alleged to have illegally reentered the United States sometime after April 2008 and was found in the United States in York County after eluding examination or inspection by immigration officers.
The maximum penalty under federal law for Aplicano-Gutierrez, Martinez-Calzada and Jurado-Morales’s offenses are two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Lorenzo Hernandez-Aguilar, age 33, of Mexico, Hernandez-Aguilar was previously deported from the United States to Mexico in June 2016. He is alleged to have illegally reentered the United States sometime after June 2016 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers. In 2015, he was convicted in the Franklin County Court of Common Pleas of Driving Under the Influence of Alcohol, an offense which subjects him to enhanced penalties in the current case.
Luis Lopez, age 24, of Mexico, was previously deported from the United States to Mexico in February 2012. He is alleged to have illegally reentered the United States sometime after February 2012 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers. In 2011, he was convicted in the Franklin County Court of Common Pleas of Interference with Custody of Children, an offense which subjects him to enhanced penalties in the current case.
The maximum penalty under federal law for Hernandez-Aguilar and Lopez’s offenses are ten years of imprisonment, a term of supervised release following imprisonment, and a fine.
The cases were investigated by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Special Assistant United States Attorney Brian G. McDonnell is prosecuting the cases.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fentanyl and Heroin Sold on Dark Web MarketplaceRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned an indictment today against Emil Vladimirov Babadjov, 31, of San Francisco, charging him with distributing fentanyl and heroin, United States Attorney Phillip A. Talbert announced. Babadjov was arrested and made his initial court appearance on December 14, 2016, in San Francisco.
According to the complaint filed on December 9, 2016, Babadjov, using the vendor names “Blime-Sub” and “BTH-Overdose,” was a heroin, fentanyl, and methamphetamine distributor on the dark web marketplace AlphaBay. The reverse order of the word “Blime” is “Emil B.” Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin.
According to the complaint, Babadjov accepted orders for heroin, fentanyl, and methamphetamine on AlphaBay, and then mailed the narcotics from a post office in San Francisco to customers throughout the United States. Babadjov received payment for the narcotics in Bitcoin. On October 20, 2016, law enforcement made an undercover purchase of heroin from “Blime-Sub,” which was delivered to a post office box in the Eastern District of California. The parcel contained a mixture of fentanyl and heroin.
This case is a product of an investigation by the Central California Darknet Strike Force, an inter-agency task force dedicated to combating the use of dark web marketplaces and digital currency to distribute narcotics and launder money. The lead agency on this case was the Drug Enforcement Administration, with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation, and the U.S. Postal Inspection Service. Assistant United States Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.
Additionally, this case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, Babadjov faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Federal and State Authorities Arrest 15 in Central Texas Area Methamphetamine Distribution RingRead the Press Release
This morning, federal, state and local authorities arrested 15 individuals, including ringleaders Corey Jefferson and Talmage Sedberry, for their roles in a methamphetamine distribution ring operating in the Central Texas area announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Temple Police Chief Floyd O. Mitchell.
A federal indictment unsealed today in Waco charges all 15 defendants with one count of conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine. The defendants are alleged to be involved in a scheme since January of this year to distribute methamphetamine throughout Bell, Coryell, McLennan, and Limestone counties. The defendants are:
NAME AGE RESIDENCE AMOUNT STATUTORY MAX PENALTY
Corey Damont Jefferson 39 Temple more than 500 grams 10 years to life imprisonment
Talmage Curry Sedberry 34 Waco more than 500 grams 10 years to life imprisonment
Elgin Rayton Campbell 30 Mexia more than 500 grams 10 years to life imprisonment
Cesar Alfred Cazares-Rodriguez 30 Dallas more than 500 grams 10 years to life imprisonment
Martin Paul De-La-Rosa 29 Waco more than 500 grams 10 years to life imprisonment
Leroy Wildman 33 Temple more than 50 grams 5-40 years imprisonment
Billy Edward Sedberry 35 Gatesville more than 50 grams 5-40 years imprisonment
Aaron Sedberry 34 Waco more than 50 grams 5-40 years imprisonment
Marisela Garza 31 Waco more than 50 grams 5-40 years imprisonment
Larry Darnell Branch 43 Waco more than 50 grams 5-40 years imprisonment
James Edward Patterson 30 Waco more than 50 grams 5-40 years imprisonment
Juandell Laron McCorkle 34 Temple more than 50 grams 5-40 years imprisonment
Timothy Lama Jackson 31 Waco more than 50 grams 5-40 years imprisonment
Karmon Patterson 32 Waco more than 50 grams 5-40 years imprisonment
Aphtan Daniella Ochoa 27 Waco less than 50 grams up to 20 years imprisonment
All of the defendants remain in federal custody pending detention hearings next week in Waco before United States Magistrate Judge Jeffrey C. Manske.
This case resulted from an investigation conducted by the Federal Bureau of Investigation and the Temple Police Department Office together with the Drug Enforcement Administration, Texas Department of Public Safety, Killeen Police Department and the Mexia Police Department. Assistant United States Attorney Stephanie Smith-Burris is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Federal Grand Jury Indicts Three for Possessing Stolen MailRead the Press Release
DALLAS — A federal grand jury has indicted three Dallas-area residents for possessing stolen mail, announced U.S. Attorney John Parker of the Northern District of Texas.
Onetta Lashuan McDaniel, 35, and Brandon Michael Wickware, 30, are each charged with three counts of possessing stolen mail; Curtis Edward Freeman, 27, is charged with one count. McDaniel and Freeman remain on bond, with conditions. Following a detention hearing this week for Wickware, U.S. Magistrate Judge Paul D. Stickney ordered that he remain in federal custody pending trial. A trial date of February 13, 2016, before U.S. District Judge Ed Kinkeade, is set.
“The arrest of McDaniel, Freeman and Wickware underscores the commitment of the U.S. Postal Inspection Service to ensure the public’s trust in the Postal Service, its brand and the U.S. mail,” said Ralph A. Key, Acting Inspector in Charge, Fort Worth Division. “I’d like to thank the Postal Inspectors and the U.S. Attorney assigned to the case for their hard work and dedication in this investigation.”
The indictment alleges that on May 26, 2016, McDaniel and Wickware possessed Chase Bank personal checks and a Texas License to Carry a Handgun identification that had been stolen from mail receptacles.
The indictment also alleges that on November 17, 2016, McDaniel possessed a Kohl’s credit card that had been stolen from a mail receptacle. It also alleges that on November 22, 2016, Wickware and Freeman possessed a Texas Department of Public Safety first class letter that had been stolen from a mail receptacle.
According to testimony presented at detention hearings, the investigation revealed video of McDaniel breaking into six to eight panel mailboxes at apartment complexes in the Uptown/Dallas area. Wickware and Freeman were also identified stealing mail from apartment complexes. On November 22, 2016, U.S. Postal Inspectors trailed Wickware and Freeman as they broke into panel mailboxes at apartment complexes in Uptown and Downtown Dallas. When inspectors then attempted to stop their vehicle, they threw mail from their car onto the roadway.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for each count of possession of stolen U.S. mail is five years in federal prison and a $250,000 fine.
The investigation is being led by the U.S. Postal Inspection Service with assistance from the Dallas Police Department. Special Assistant U.S. Attorney Jennifer Bray is in charge of the prosecution.
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Federal Fugitive Sentenced to 20 Years in Federal Prison on Firearm ChargesRead the Press Release
ROCKFORD — A Belvidere man was sentenced Wednesday on firearms charges by U.S. District Judge Philip G. Reinhard.
MICHAEL TAPIA, 26, was sentenced to a total of 20 years in federal prison and to three years of supervised release following imprisonment. Tapia did not appear at the sentencing and was sentenced in absentia after Judge Reinhard found that Tapia was knowingly and voluntarily absent.
On Aug. 25, 2016, following a four-day jury trial, Tapia was found guilty of one count of conspiring to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition; one count of receiving, possessing, concealing, and storing stolen firearms and ammunition; and one count of illegally possessing firearms and ammunition as a convicted felon.
Three other area men who were also charged in the case previously pleaded guilty to firearm charges: TEOVANNI CUNNINGHAM, 32, of Rockford, MICHAEL SCHAFFER, 34, and DARRELL REED, 28, both of Byron.
According to the indictment and evidence at trial, on Dec. 31, 2012, Tapia and Cunningham broke into a residence in northern Illinois and stole over 21 firearms and ammunition. Tapia and Cunningham later transferred some of the stolen firearms to their co-defendants and stored some of the firearms at other locations.
Cunningham pleaded guilty on May 31, 2016, to conspiring to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition; receiving, possessing, concealing, and storing stolen firearms and ammunition; and illegally possessing firearms and ammunition as a felon. Cunningham was sentenced on Sept. 20, 2016, to a total of 188 months in federal prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $12,723.99.
Reed pleaded guilty on June 15, 2016, to receiving, possessing, concealing, storing, selling, and disposing of stolen firearms, and was sentenced on Oct. 17, 2016, to one year and one day in federal prison, to be followed by 3 years of supervised release, and ordered to pay restitution in the amount of $750.00.
Schaffer pleaded guilty on June 3, 2016, to conspiring to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition. Schaffer has not yet been sentenced.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and George Lauder, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The Federal Bureau of Investigation, Winnebago County Sheriff’s Department, Rockton Police Department and Rockford Police Department assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Talia Bucci and Michael D. Love.
Etna Man Sentenced to 15 Years for Heroin ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Don Grace, 54, of Etna, Maine, was sentenced Tuesday in U.S. District Court by Judge John A. Woodcock, Jr. to 15 years in prison and eight years of supervised release for conspiring to distribute heroin. He pled guilty on May 4, 2016.
According to court records, between August 2015 and January 2016, Grace conspired to distribute more than 100 grams of heroin. Grace and others obtained large quantities of heroin on a weekly basis from an out of state source of supply and distributed it throughout Central Maine. On January 25, 2016, agents arrested Grace and seized 3,300 bags of heroin from the vehicle in which he was traveling and 1,500 bags of heroin from his Etna residence.
Grace had been federally prosecuted 5 times in 2004, 2007 and 2009 for felony drug offenses and for violating the terms of his supervised release. Judge Woodcock noted that, in his 13 years on the bench, Grace was the only defendant who he had to sentence on five occasions.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine State Police and was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Eight Individuals Sentenced for Trafficking MethamphetamineRead the Press Release
Five men and three women responsible for distributing hundreds of pounds of methamphetamine were sentenced earlier this week to various federal prison terms.
Donita Urban, 47, from Evansdale, Iowa, received a 98-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Scott Mathews, 52, from Marshalltown, Iowa, received a 70-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Brian Swartz, 49, from Waterloo, Iowa, received a 132-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Rogelio Avalos-Sanchez, 23, from Marshalltown, Iowa, received a 59-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Jennifer Mares-Flores, 21, from Marshalltown, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Miguel Mendoza, 26, from Hampton, Iowa, received a 78-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Alvaro Hernandez, 31, from Marshalltown, Iowa, received a 113-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Frances Gasca, 26, from Lompoc, California, received a 103-month term of imprisonment after pleading guilty to conspiracy to distribute methamphetamine.
Evidence at the guilty pleas and other court proceedings showed that in the Spring of 2013, Mario Murillo Mora began building a drug trafficking organization responsible for distributing multiple pounds of ice methamphetamine, a highly pure, crystalized form of methamphetamine, throughout Northern Iowa. The various members of the organization distributed at least 250 pounds of ice methamphetamine. Murillo Mora recruited various individuals, including some of the individuals sentenced this week, to assist with transporting, storing, and distributing ice methamphetamine, as well as collecting money and wiring drug proceeds back to the sources of the ice methamphetamine. Other individuals obtained ice methamphetamine from Murillo Mora in pound to multiple pound quantities for redistribution to a network of retail level customers. The organization brought the methamphetamine to Marshalltown from Mexico and California concealed in vehicles. Once in Marshalltown, the methamphetamine was broken down and repackaged for further distribution.
All defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. A special assessment of $100 was imposed on all defendants and they must also each serve a three to five-year term of supervised release after the prison term. There is no parole in the federal system.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement; the Mid-Iowa Task Force, comprised of the Marshalltown Police Department, Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Grundy County Sheriff’s Office, Hardin County Sheriff’s Office, Iowa Falls Police Department, Eldora Police Department and the Dysart Police Department; and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department, LaPorte City Police Department, Hudson Police Department, Evansdale Police Department, University of Northern Iowa Police Department, Waverly Police Department and the Bremer County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-cr-2037.
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Eastern District of North Carolina United States Attorney’s Office Collects $8,476,074.72 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that they collected $8,476,074.72 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016. Of this amount, $3,313,619.45 was collected in criminal actions and $5,162,455.27 was collected in civil actions.
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $72,417,597.68 in cases pursued jointly with these offices. Of this amount, $10,437.68 was collected in criminal actions and $72,407,160.00 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Loretta E. Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
EDNC United States Attorney John Stuart Bruce stated: “Our office is proud of its record in collecting money owed to United States and, by extension, American taxpayers. This includes criminal fines, civil judgments, and restitution to crime victims. This record reflects the hard work and professionalism of our attorneys and staff, especially our Financial Litigation Unit.”
The largest single collection action handled by the Eastern District of North Carolina involved illegal Medicare billing by Tuomey hospital in Sumter South Carolina. After two trials and two appeals, it was determined that Tuomey violated the Stark law and the False Claims Act; and the Court awarded a judgment in the amount of $237 million. After it became evident that the hospital could not pay the entire judgment, the Eastern District of North Carolina collected $72.4 million from the hospital to resolve the case
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $2,302,748 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
East Boston Woman Pleads Guilty to Defrauding Social SecurityRead the Press Release
BOSTON – An East Boston woman pleaded guilty today in U.S. District Court in Boston to fraudulently obtaining over $50,000 in Social Security benefits.
Patricia Grifoni, 53, pleaded guilty today to Social Security fraud before U.S. District Court Senior Judge Mark L. Wolf who scheduled sentencing for March 10, 2017.
In 1993, Grifoni began receiving Social Security Supplemental Security Income disability benefits on behalf of her disabled daughter. These benefits are based, in part, on the financial need of the family with whom the child lives. Beginning in 1995, Grifoni told Social Security that her husband no longer lived with her. Therefore, the Social Security Administration did not include her husband’s income when calculating her daughter’s benefits. In reality, Grifoni’s husband lived in the same household as Grifoni and their daughter since at least 2005, and his income would have made their daughter financially ineligible to receive benefits from 2005 to 2011. As a result, Grifoni illegally collected $51,530 in benefits on her daughter’s behalf.
The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit is prosecuting the case.
Dominican Man Charged with Illegal Reentry After DeportationRead the Press Release
Daniel Acosta-Domiguez, a.k.a. “Daniel Acosta,” a.k.a. “Jonathan Amador-Alvarez,” 33, of Philadelphia, PA, was charged today by Indictment1 with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 18, 2016, Jorge-Jimenez, an alien, and native and citizen of the Dominican Republic, was found in the United States after having been deported from the United States on or about May 21, 2013.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Homeland Security Investigations (“HSI”) and Enforcement and Removal Operations (“ERO”) of Immigration and Customs Enforcement (“ICE”), and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
1 An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
District of Kansas U.S. Attorney Collects $6.1 Million in Civil and Criminal ActionsRead the Press Release
TOPEKA, KAN. - U.S. Attorney Tom Beall announced today that the District of Kansas collected more than $6.1 million in criminal cases and civil actions in federal fiscal year 2016. Of this amount, $3.7 million was collected in criminal actions and $2.4 million was collected in civil actions.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
District Man Sentenced to Prison Term for Shooting at Man Outside Carry-Out RestaurantRead the Press Release
WASHINGTON - Tyarn Thompson, 37, of Washington, D.C., was sentenced today to six years in prison on charges stemming from a shooting last spring outside a Southeast Washington carry-out restaurant, U.S. Attorney Channing D. Phillips announced.
Thompson pled guilty in September 2016, in the Superior Court of the District of Columbia, to one count of assault with intent to kill. The plea, which was contingent upon the Court’s approval, called for a prison term of four to six years. The Honorable Florence Pan accepted the plea today and sentenced Thompson accordingly. Following his prison term, Thompson will be placed on three years of supervised release.
According to the government’s evidence, on May 12, 2016, at approximately 11:40 a.m., Thompson encountered the victim at a carry-out restaurant in the 2900 block of Naylor Road SE. Thompson then confronted the victim regarding a fight they had earlier in the week over the victim’s girlfriend. As the victim was leaving the restaurant, Thompson approached him, brandished a gun, and fired several shots at him as the victim tried to run away. The victim stumbled and fell and Thompson fired additional shots. The victim’s sweatshirt was grazed by one of the bullets Thompson fired. Thompson then fled the scene before officers arrived.
Officers with the Metropolitan Police Department (MPD) identified Thompson as the shooter and an arrest warrant was issued on May 13, 2016. Thompson has been in custody since his arrest on June 6, 2016. As part of his plea, Thompson admitted to shooting at the victim and placing a call the day beforehand informing a witness that he intended to kill the victim.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Elsa Maltese and Lu Lan; Supervisor Security Specialist Michael Hailey; and Paralegal Specialist Tiffany Jones. Finally, he acknowledged the efforts of Assistant U.S. Attorney Sumit Mallick, who investigated and prosecuted the case.
District Man Sentenced to 33 Months in Prison for Home Invasion in Northwest WashingtonRead the Press Release
WASHINGTON – Tremaine McDowell, 34, of Washington, D.C., was sentenced today to a 33-month prison term on charges stemming from a home invasion that took place earlier this year in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
McDowell was found guilty by a jury in October 2016 of second-degree burglary and felony credit card fraud. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced today by the Honorable Zoe Bush. Upon completion of his prison term, he will be placed on one year of probation.
According to the government’s evidence, at about 3:30 a.m. on March 13, 2016, the victim went to sleep in his apartment in the 800 block of Quincy Street NW. He left his door unlocked. The victim woke about 8 a.m. to find that two laptops were missing from his apartment and three debit cards had been taken from his wallet.
The victim reported the burglary to the Metropolitan Police Department (MPD), and as police were investigating, he began receiving fraud alerts from his banks. As it turned out, his three debit cards were used nearby, between 8 and 9 a.m. at a 7-Eleven, a Safeway, and at the Georgia Avenue / Petworth Metro Station. Security footage from each location showed the same person, in a red jacket, making purchases using the victim’s debit cards. At Safeway, the man also used a Safeway Rewards card, in the name of Tremaine McDowell, along with the victim’s debit card.
Several days later, a 7-Eleven employee notified detectives that he had seen the purchaser again, and when MPD detectives canvassed, they saw McDowell outside the Safeway. Detectives approached and spoke with him, ultimately putting him under arrest. McDowell was found to be in possession of a key fob that was used to access the victim’s apartment building on the night of the burglary, and key fob records specifically indicate that the fob was used to access the victim’s floor about two hours before the first debit card transaction took place.
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 expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Tommy Miller and Litigation Technology Specialist Ron Royal. Finally, he commended the work of Assistant U.S. Attorneys Sonali Patel and Michael Romano, who prosecuted the case.
Dauphin County Man Convicted of Drug Trafficking and Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Khalid Fahide Carter, age 22, of Harrisburg, was convicted by a federal jury of distribution of crack cocaine, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking. The three-day trial was held before Chief United States District Court Judge Christopher C. Conner in Harrisburg.
According to United States Attorney Bruce D. Brandler, the jury returned the verdict after less than two hours of deliberation. The jury found that Carter distributed cocaine base, also known as crack cocaine, and possessed a .40 caliber semi-automatic handgun in furtherance of a drug trafficking crime on January 12, 2016.
This case was investigated by the Federal Bureau of Investigation Capital City Safe Streets Task Force, the Harrisburg Bureau of Police, and the Pennsylvania Office of the Attorney General. Assistant United States Attorneys Daryl F. Bloom and Chelsea Schinnour prosecuted the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for drug trafficking is 20 years of imprisonment and for possession of a firearm in furtherance of drug trafficking is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Crossett Man Sentenced to 68 Months in Prison and to Pay $456,000 Restitution for Wire Fraud and Money LaunderingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Kenneth W. Atkins, age 56, of Crossett, Arkansas, was sentenced today to 68 months in federal prison followed by three years of supervised release on one count of Conspiracy to Commit Wire Fraud and three counts of Money Laundering. Atkins was ordered to pay restitution in the amount of $456,000. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
Atkins was found guilty in October, 2015 after a seven (7) day jury trial. According to evidence presented in the trial, from on or about January 2011 through on or about March 2012, Atkins conspired with another person to commit wire fraud against Georgia Pacific.
This case was investigated by the United States Secret Service and the Arkansas State Police. Assistant United States Attorneys’ Jonathan Ross, Ben Wulff and David Ferguson prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov