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9 December 2016
Hamburg Man Extradited from Vietnam on Fraud ChargesRead the Press Release
BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Michael Wilson, 29, formerly of Hamburg, NY, was successfully returned from Vietnam and arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy.
In December 2010, the defendant was named in a 47-count indictment charging wire fraud, money laundering, and conspiracy. The maximum penalty for each fraud count is 20 years in prison and a $250,000 fine. Each money laundering charge carries a penalty of up to 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen Jr., who is handling the criminal case, and Richard D. Kaufman, Chief of the U.S. Attorney’s Office’s Asset Forfeiture and Financial Litigation Unit, stated that the indictment accuses Wilson of attempting to defraud investors out of more than $8,000,000 between June 2008 and July 2009, and another $71,875 in July 2010. According to the indictment, the defendant created several fraudulent investment companies known collectively as “New Frontier,” including such names as “Phantom Holdings” and others, all purportedly located at 6553 Boston State Road in Hamburg, adjacent to his residence. Wilson thereafter induced individuals and companies to invest in financial instruments with complex sounding names, such as “leveraging agreements,” that promised high-yield earnings and returns.
The indictment also alleges that rather than investing clients’ money, the defendant spent it on a variety of personal items, including $2,500,000 for a down payment for Boston State Road properties, automobiles - including a Hummer, a Corvette, two Land Rovers, and a Mercedes ML 500 - artwork, and other items. In addition, in January 2009, Wilson paid $1,800 to hire an actor from a talent agency to portray a person using the name of his alias “George Possiodis,” which name and persona the defendant used during his scheme. The Government is seeking forfeiture of more than $3,000,000 that Wilson allegedly stole from investors and spent.
The indictment also alleges that in July 2010, Michael Wilson and his brother, William Wilson, conspired to receive two wire transfers totaling $71,875, which a client believed would be invested by “Zodiak Capital,” another one of Michael Wilson’s companies. $70,325 of the $71,875 never reached Michael or William Wilson because the government successfully froze and seized the money before it could be withdrawn from two accounts it had been wired into.
Wilson, a dual citizen of Canada, traveled to the Toronto area after learning he was under investigation. After being arrested in Canada in July 2013, Wilson was released on conditions and challenged extradition to the United States in Canadian Courts. Before his final appearance in Canadian Court, in February 2016, Wilson flew to Vietnam with his wife, mother, and three dogs. Wilson was arrested in Vietnam in June 2016, and has been detained in Vietnamese jail pending his removal to the United States.
“This case shows that we will literally travel across the globe in our pursuit of justice,” said Acting U.S. Attorney Kennedy. “I commend our law enforcement partners both at home and abroad for their cooperation and diligence in successfully apprehending an individual who went to tremendous lengths to avoid answering the charges filed against him.”The defendant was arraigned this afternoon before Judge McCarthy. Wilson is being held until a detention hearing scheduled for December 15, 2016, at 2:00 p.m.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent-in-Charge, the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge, New York Field Office, Kathy A. Enstrom, Toronto Police Service, Vietnam Ministry of Public Security, and other law enforcement partners, including LEGAT, Seoul, Korea, and the U.S. State Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Gun Thief Daniel Johnson Goes Back to Federal Prison for Violating SupervisionRead the Press Release
PITTSBURGH - A resident of New Kensington, Pa, has been sentenced in federal court for the third time, Acting United States Attorney Soo C. Song announced today.
According to information presented to the court, Daniel Johnson and several accomplices smashed the front window of the Jolar gun dealership in New Kensington on Dec. 14, 2009. and stole three AR-15 type assault rifles and 11 pistols. Agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation which resulted in the charges.
In 2011, Senior United States District Court Judge Alan Bloch originally sentenced Johnson to 24 months in federal prison and three years of supervision by the United States Probation Office.
Johnson later violated that period of supervision and was sentenced in 2014 by Judge Bloch to an additional ninemonths of imprisonment and 27 months of supervision.
While in a halfway house after serving the 2014 sentence, Johnson was arrested for selling heroin. At a hearing held on Dec. 8, 2016, Judge Bloch determined that the defendant’s heroin sale was a serious violation his supervision and sentenced the defendant to another 24 months of imprisonment, followed by 19 months of supervision.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the Office of the United States Attorney prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Pennsylvania Office of the Attorney General Task Force for the investigation leading to the third successful prosecution of Johnson. This task force is comprised of local police officers who work together to investigate drug crimes.
Georgia Man Sentenced for Two Counts of Making False StatementsRead the Press Release
SYRACUSE, NEW YORK – Anastasios Katzopoulos a/k/a Anastasios Alexander Hatzopoulos, 38, of Rising Fawn, Georgia, and formerly of North Syracuse, New York, was sentenced yesterday to time served, following two months of incarceration, after pleading guilty to making false statements in a passport application and making false statements to the Social Security Administration. The announcement was made by United States Attorney Richard S. Hartunian and John Grasso, Special Agent in Charge for the New York Field Division of the United States Social Security Administration, Office of Inspector General.
As part of his guilty plea Katzopoulos admitted that he was issued a social security number in 1993 and a United States passport in 2002. He further admitted that in June 2012, while living in North Syracuse, New York, he applied for and was issued a new social security number after stating that he had never previously been issued a social security number. The following month, Katzopoulos used the second social security number to apply for a United States passport, falsely stating that he had never previously applied for or been issued a United States passport.
In August 2016, Katzopoulos pled guilty before United States District Judge David N. Hurd. In addition to the two-month period of incarceration already served, Katzopoulos was sentenced to a term of supervised release for three (3) years, to complete eighty (80) hours of community service, and to pay a fine in the amount of $10,000.
This case was investigated by the United States Social Security Administration, Office of Inspector General and the United States Department of State, Diplomatic Security Service and was prosecuted by Assistant United States Attorneys Carina H. Schoenberger and Sahar L. Amandolare.
Gabonese National Pleads Guilty to Foreign Bribery SchemeRead the Press Release
Defendant Bribed High-Ranking Government Officials in Multiple African Countries to Obtain Uranium Concessions and Other Mining Rights for Himself and Others
The son of a former Prime Minister of Gabon pleaded guilty earlier today in federal court to conspiring to make corrupt payments to government officials in Africa in violation of the Foreign Corrupt Practices Act (FCPA).
Deputy Assistant Attorney General Sung-Hee Suh of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office and Acting Special Agent in Charge Ronald L. Whitsett of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York made the announcement.
Samuel Mebiame, 43, a Gabonese national, worked as a consultant to a mining company that was owned by a joint venture between Och-Ziff Capital Management Group LLC (Och-Ziff), a New York-based hedge fund management company, and an entity incorporated in Turks and Caicos. According to court documents, between at least 2007 and 2012, Mebiame worked as a “fixer” for the joint venture and conspired with others to pay bribes to high-level government officials in Chad and Niger in order to obtain business opportunities and mining rights for the joint venture in both of those countries. In addition, Mebiame paid bribes to high-level government officials in Guinea as an agent of the Turks and Caicos entity to obtain business opportunities and mining rights in that country.
In addition, according to court documents, the bribes paid by Mebiame to the high-ranking government officials were often masked through additional intermediaries or lawyers. In Niger, Mebiame paid more than $3 million in bribes to a high-ranking government official both directly and through intermediary agents, who were selected by the government official. Mebiame also made payments for luxury cars for that foreign official. In return, Mebiame obtained licenses for uranium concessions for the joint venture from the government of Niger. Similarly, in Chad, Mebiame bribed a high-ranking government official with cash payments and luxury foreign travel for the official and the official’s wife. In return, Mebiame obtained uranium concessions for the joint venture, including an asset which had been stripped from a French-owned company by the Chadian government at Mebiame’s urging. In Guinea, during a time when the conspirators were seeking to establish a state-owned mining company there, Mebiame made corrupt payments to gain special access to senior Guinean government officials. Mebiame provided the officials with cash and other benefits, including an S-Class Mercedes Benz vehicle and the use of private planes, in exchange for special access and confidential information.
On Sept. 29, 2016, in connection with the government’s investigation, Och-Ziff was charged pursuant to a criminal information with violations of the FCPA’s anti-bribery, books and records, and accounting controls violations for conduct in Libya and the Democratic Republic of Congo, and conduct in Chad and Niger connected to Mebiame’s conduct. Och-Ziff entered into a deferred prosecution agreement in connection with those charges. An Och-Ziff subsidiary company, OZ Africa Management GP LLC (OZ Africa), pleaded guilty to a one-count criminal information related to large-scale bribe payments in the Democratic Republic of Congo. OZ Africa is scheduled to be sentenced on March 29, 2017.
The FBI’s New York Field Office and IRS-CI New York are investigating the case. Assistant Chief Leo R. Tsao and Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys James P. Loonam, Jonathan P. Lax and David Pitluck of the Eastern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The U.S. Securities and Exchange Commission’s Boston Regional Office provided significant cooperation.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Mebiame Samuel Information Mebiame Samuel Plea AgreementGabonese National Pleads Guilty to Foreign Bribery SchemeRead the Press Release
Samuel Mebiame, a Gabonese national and the son of a former Prime Minister of Gabon, pleaded guilty earlier today in Brooklyn federal court, to conspiring to make corrupt payments to government officials in Africa, in violation of the Foreign Corrupt Practices Act (FCPA). Mebiame worked as a consultant to a joint venture between Och-Ziff Capital Management Group LLC, a New York-based hedge fund management company, and a Turks and Caicos incorporated entity. Mebiame paid bribes to high level government officials in Chad, Niger, and Guinea to obtain opportunities in the mining sectors in each of those countries. He faces up to five years’ imprisonment at the time of his sentencing.
The guilty plea was announced by U.S. Attorney Robert L. Capers of the Eastern District of New York; Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ronald L. Whitsett, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York.
According to court filings and facts presented during the plea proceeding, Mebiame worked as a “fixer” for the joint venture and conspired with others to pay bribes to foreign government officials to obtain rights to mineral concessions from government officials on behalf of the joint venture. Mebiame’s corrupt payments, made between at least 2007 and 2012, were directed to high-ranking government officials and were often masked through additional intermediaries or lawyers. In Niger, Mebiame paid more than $3 million in bribes to a high-ranking government official both directly and through the use of intermediary agents, who were selected by the government official. In addition, Mebiame made payments for luxury cars for the foreign official. In return, Mebiame obtained licenses for uranium concessions from the government of Niger for the joint venture. Similarly, in Chad, Mebiame paid cash bribes to a high-ranking government official and paid for luxury foreign travel for the official and the official’s wife. In return, Mebiame obtained uranium concessions for the joint venture, including an asset which had been stripped from a French-owned company by the Chadian government at Mebiame’s urging. In addition, during the conspirators’ efforts to establish a state-owned mining company in Guinea, Mebiame gained special access to government officials and confidential information by making corrupt payments and providing other benefits to senior government officials in Guinea, including an S-class Mercedes Benz sedan, the use of private planes, and cash. During the conspiracy, Mebiame repeatedly traveled to the United States, received payments to U.S. bank accounts, and sent e-mail communications from the United States to further the scheme. The communications included an e-mail between the conspirators which discussed a “bet” about what conduct would be sufficient to violate the FCPA.
Previously, on September 29, 2016, in connection with the government’s broader investigation, Och-Ziff was charged pursuant to a criminal information with violations of the FCPA’s anti-bribery, books and records, and accounting controls violations for conduct in Libya and the Democratic Republic of Congo, and conduct in Chad and Niger connected to Mebiame. Och-Ziff entered into a deferred prosecution agreement in connection with those charges. An Och-Ziff subsidiary company, OZ Africa Management GP, LLC, pleaded guilty to a one-count criminal information related to large-scale bribe payments in the Democratic Republic of Congo. Sentencing of OZ Africa Management GP, LLC has been scheduled for March 29, 2017.
The government’s case is being prosecuted by the U.S. Attorney’s Office Business and Securities Fraud Section, and the Foreign Corrupt Practices Act Unit of the Department of Justice, Fraud Section. Assistant United States Attorneys James P. Loonam, Jonathan P. Lax, and David Pitluck, Assistant Chief Leo R. Tsao and Trial Attorney James P. McDonald are in charge of the prosecution.
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The charges in this case were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Former bookkeeper sentenced in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler, announced today the sentencing of a former bookkeeper at Marine Industries Corporation (“MIC”). Alice Marie Casey, 45, of Jeffersonville, Indiana, was sentenced to two years’ imprisonment by U.S. District Judge Sarah Evans Barker following her conviction on three counts of access device fraud.
Alice Marie Casey served as the bookkeeper at MIC in Jeffersonville, Indiana, where she paid company credit card bills, issued company credit cards to new employees, destroyed and cancelled company credit cards of former employees and completed tasks associated with the company’s mail.
Casey opened several business credit card accounts under other employee’s names, including hers and the company CEO, without MIC’s knowledge, consent, or authorization and used the cards for her personal use. She made unauthorized purchases which included firearms, furniture, funeral arrangements, life insurance policies, electronics and theater tickets totaling over $105,000.
This investigation was a collaborative effort between the United States Secret Service and the Jeffersonville Police Department.
According to Assistant United States Attorney Kyle Sawa, who is prosecuting this case for the government, Casey must make restitution of over $105,000, serve three years of supervised release and perform community service.
Former Wayne County Surgeon Pleads Guilty to Tax EvasionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Robert Gorrell, Jr., age 66, of Wayne County, Pennsylvania, pleaded guilty today before United States District Court Judge Malachy E. Mannion in Scranton, to evading payment of his income taxes, pursuant to a plea agreement with the United States.
According to United States Attorney Bruce D. Brandler, Dr. Gorrell formerly worked for Wayne Memorial Hospital in Honesdale, Pennsylvania. During the plea hearing, he admitted to engaging in a years-long pattern of activities to avoid paying over $148,000 in tax. Among other things, he caused his tax preparer to file Form 1040 tax returns and Form 433-A collection statements that falsely claimed Dr. Gorrell paid for his own medical malpractice insurance. He also admitted that he forged documents from Wayne Memorial Hospital and from an insurance company to support those false claims. Dr. Gorrell further admitted to withholding from the IRS information about bank accounts under his control, and about his ownership of a Porsche Cayenne, to impede collection efforts.
The investigation was conducted by the Criminal Investigation Division of the IRS. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
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 this offense is five years of 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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Former Federal Employee Sentenced for Using Stolen Money Order Receipts in Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former federal employee has been sentenced in federal court for using stolen money order receipts in a fraud scheme to avoid paying his medical bills.
Byron G. Gorman, 52, of St. Joseph, Mo., was sentenced by U.S. District Judge Dean Whipple to four years in federal prison without parole. The court also ordered Gorman to pay $18,000 in restitution.
Gorman, who pleaded guilty on May 24, 2016, was employed as an information technology specialist for the U.S. Department of Agriculture's Office of Inspector General, assigned to the Heart of America Regional Computer Forensics Laboratory in Kansas City, Mo., where he was being trained to become a computer forensic examiner. Gorman was terminated from federal employment on June 22, 2015.
Gorman admitted that he used stolen money order receipts – taken by Gorman as he participated in a criminal investigation – as fraudulent evidence in court, both to defend himself against a lawsuit against him by his creditors and in his own lawsuit against his creditors.
Gorman was a defendant in a civil collection lawsuit in Buchanan County, Mo., in which a judgment had been entered against him and a garnishment of his wages had been ordered to recover monies owed on medical bills incurred at the Heartland Regional Medical Center in St. Joseph. On Sept. 28, 2012, Gorman’s creditors filed a second civil collection lawsuit against him in Buchanan County to recover monies owed on additional unpaid medical bills.
On May 22, 2012, Gorman participated in the execution of a federal search warrant at the offices of a private business in Kansas City, Kan. Gorman was there to search for computer-related evidence. He found and took five blank U.S. Postal Service money order receipts belonging to the private business and used them to facilitate the scheme to defraud Heartland Regional Medical Center.
Gorman used the stolen money order receipts and other fraudulent documents created as evidence in his defense. Gorman claimed that he had submitted postal money orders to his creditors, but the payments had not posted. As evidence, he provided the five stolen money order receipts, which were filled out to make it appear that money orders had been made out to Heartland Regional Medical Center, as well as a number of forged letters displaying the names and purported signatures of postal employees.
Gorman also used the stolen money order receipts and other fraudulent documents he created as evidence in a lawsuit he caused to be filed against his creditors. Gorman placed the names and forged signatures of the actual persons onto letters purporting to be from the U.S. Postal Service and the U.S. Federal Trade Commission onto two letters and two certified mail receipts as part of his wire fraud scheme.
As an examiner in training, Gorman did not perform any computer forensic examinations unless under the supervision of a fully certified Heart of America Regional Computer Forensic Laboratory (HARCFL) examiner.
Upon learning of the allegations regarding Gorman, the Heart of America Regional Computer Forensic Laboratory did a complete and thorough review of any cases which Gorman may have assisted in the examination of computer forensic evidence. No inconsistencies, errors or issues were noted with any evidence. The Heart of America Regional Computer Forensic Laboratory is a fully accredited laboratory facility following a strict protocol for the examination of evidence and the training protocol for examiners in training.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Department of Agriculture, Office of Inspector General – Office of Compliance and Integrity.
Former Detroit Public Schools Principal Convicted on Bribery ChargesRead the Press Release
A former Detroit Public Schools principal of was convicted at a jury trial today in an illegal bribery and kickback scheme, announced U.S. Attorney Barbara L. McQuade.
Joining McQuade in the announcement were David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
Josette Buendia, 51, of Garden City, Michigan, the principal at Bennett Elementary School, was found guilty on all three charges of conspiracy to commit bribery and bribery charges, ending a five-day jury trial before U.S. District Judge George Caram Steeh.
According to the evidence presented at trial, Buendia conspired with Norman Shy, 75, owner of Allstate Sales, a vendor of school supplies. From November 2011 through January 2015, Buendia knowingly certified and submitted fraudulent invoices to DPS, causing DPS to pay Shy for materials that the school did not receive, or that the school only received a portion of the materials. Invoiced supplies included supplemental teaching materials and raised line paper. In exchange, Shy paid bribes and kickbacks to Buendia in the form of gift cards and cash, using a portion of the payments he received from DPS from the fraudulent invoices. The bribes and kickback Buendia received totaled approximately $46,000.
Buendia faces up to five years in prison when she is sentenced on April 6, 2017, at 2:30 pm.
“This principal accepted bribes in exchange for shortchanging the school district,” McQuade said. “Regardless of what she did with the money, Detroit Public Schools and the students paid the price.”
“Today’s verdict reinforces the message we want everyone to understand as a result of the Detroit Public School's corruption investigation: Anyone who attempts to enrich oneself at the expense of school children will be prosecuted," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The FBI will continue to work with the Detroit Area Public Corruption Task Force and the U.S. Attorney’s Office to investigate and prosecute the misapplication of public funds intended to educate our kids.”
“Josette Buendia’s actions violated the trust and confidence of the parents and students of Bennett Elementary School,” said Special Agent in Charge Manny Muriel, IRS – Criminal Investigation. “Today’s verdict should send a loud and clear message that the community expects their hard earned tax dollars to be used to educate our children and not to line the pockets of school officials.”
This case was investigated by agents of the FBI and IRS-CI. This case is being prosecuted by Assistant United States Attorneys J. Michael Buckley and Frances Carlson.
The FBI Detroit Area Corruption Task Force (DACTF) is led by the FBI Detroit Field Office, and consists of Special Agents and law enforcement officers with the FBI Detroit; the Detroit Police Department; the Michigan State Police; the Michigan Attorney General’s Office; the Internal Revenue Service – Criminal Investigation Division; the U.S. Department of Housing and Urban Development–Office of Inspector General; the U.S. Environmental Protection Agency–Office of Inspector General; the U.S. Department of Transportation–Office of Inspector General; the U.S. Department of Homeland Security–Office of Inspector General; the U.S. Department of Education–Office of Inspector General; and the U.S. Department of Labor–Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Federal Jury Finds Stockton Man Guilty of Being a Felon in Possession of a Fully Automatic FirearmRead the Press Release
SACRAMENTO, Calif. — On Thursday, after a three-day trial, a federal jury found Antonio Nicholas Smith, 26, of Stockton, guilty of unlawfully possessing a firearm as a felon, U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge John A. Mendez.
According to evidence presented at trial, on March 6, 2016, Smith and another man were driving in the Bear Creek district in Stockton. A police officer tried to stop the car for a traffic violation, but the car failed to yield and instead led the officer on a high-speed chase through a residential area. The car lost control and crashed several blocks later. When it did, Smith fled from the passenger’s seat with a bag in his hands. Smith discarded the bag shortly afterwards and fled from the area. He was apprehended in a neighbor’s backyard several minutes later. Inside the bag, officers found a Glock 9mm pistol with a 50-round drum magazine attached. The gun was loaded with 43 rounds of ammunition and one live round in the chamber. Officers later determined that the gun had been modified to function in a fully automatic mode. Smith cannot lawfully possess firearms because he has previously been convicted of felony offenses.
This case is a product of an investigation by the Stockton Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Justin L. Lee is prosecuting the case.
Smith is scheduled to be sentenced by Judge Mendez on March 14, 2017. Smith faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Inmate Who is a Member of Mexican Mafia Sentenced to Life in Prison for First Degree Murder of Fellow Mexican Mafia Inmate at ADXRead the Press Release
DENVER – Richard Santiago, age 56, who was an inmate at the U.S. Administrative Maximum Prison (ADX) in Florence, Colorado, pled guilty yesterday to the first degree murder and murder by a life prisoner of a fellow ADX inmate before U.S. District Court Judge Robert E. Blackburn. Immediately after the guilty plea, Judge Blackburn sentenced Santiago to serve life in federal prison without the possibility of release. The guilty plea and sentencing were announced by Acting U.S. Attorney Bob Troyer and Federal Bureau of Investigation (FBI) Denver Division Special Agent in Charge Calvin A. Shivers. Santiago and co-defendant Silvestre Mayorqui Rivera were responsible for the murder of Manuel Torrez in 2005.
According to court documents, and evidence presented at Rivera’s trial, the three inmates, Rivera, Santiago and Torrez were all part of the Mexican Mafia. Torrez and Santiago arrived at ADX in 2000. Shortly after Rivera’s arrival, he, and Santiago murdered Torrez while the three were exercising in the recreation area that is part of the ADX’s general population unit. Specifically, on April 21, 2005, Rivera and Santiago stomped, kicked and punched Torrez until he was dead. Rivera was convicted of first degree murder following a jury trial, and was also sentenced to serve life in federal prison without the possibility of release.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorneys Valeria Spencer, Susan "Zeke" Knox, M.J. Menendez and Capital Case Section Trial Attorney Jeffrey Kahan.
Federal Inmate Pleads Guilty and Sentenced to Life in Prison for First Degree Murder of Fellow Mexican Mafia Inmate at Federal PrisonRead the Press Release
An inmate at the U.S. Administrative Maximum Prison (ADX) in Florence, Colorado, pleaded guilty to first degree murder and murder by a life prisoner of a fellow ADX inmate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Bob Troyer of the District of Colorado and Special Agent in Charge Calvin A. Shivers of the FBI’s Denver Division made the announcement.
Richard Santiago, 56, pleaded guilty yesterday before U.S. District Court Judge Robert E. Blackburn of the District of Colorado. Immediately after the guilty plea, Judge Blackburn sentenced Santiago to serve life in federal prison without the possibility of release.
According to Santiago’s plea agreement and evidence presented at the trial of co-defendant Silvestre Mayorqui Rivera, Santiago and Manuel Torrez were members and Rivera was an associate of the Mexican Mafia. Torrez and Santiago arrived at ADX in 2000. On April 21, 2005, shortly after Rivera’s arrival, he and Santiago murdered Torrez while the three were exercising in one of the ADX’s general population unit recreation areas by stomping, kicking and punching Torrez until he was dead.
Rivera was convicted of first degree murder following a jury trial and was also sentenced to serve life in federal prison without the possibility of release.
The FBI investigated the case. Trial Attorney Jeffrey Kahan of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Valeria Spencer, Susan Knox and M.J. Menendez of the District of Colorado prosecuted the case.
Federal Court of Appeals Holds that Otero County Resolution Authorizing Removal of Trees from Lincoln National Forest is UnconstitutionalRead the Press Release
ALBUQUERQUE – The U.S. Court of Appeals for the Tenth Circuit has upheld the October 2015 ruling of the U.S. District Court for the District of New Mexico that an Otero County resolution permitting the removal of trees from the Lincoln National Forest is unconstitutional because it violates the Supremacy Clause of the U.S. Constitution. The Court of Appeals also agreed that the New Mexico state statute on which the Otero County resolution relied was unconstitutional because it too violated the Supremacy Clause. Both the New Mexico state statute and the Otero County resolution have been invalidated.
The lawsuit was filed in Feb. 2012, by the Justice Department on behalf of the Forest Service, an agency of the U.S. Department of Agriculture, against the State of New Mexico and the Otero County Commission. At issue in the lawsuit was the alleged authority of the State and Otero County to assert control over federal lands without the consent of the federal government, and in conflict with federal laws governing those lands.
The state statute (N.M.S.A. § 4-36-11) was enacted in 2001 and purported to authorize counties to clear undergrowth and trees on National Forest System lands without the consent of the Forest Service. In May 2011, the Otero County Commission passed the resolution claiming power to remove alleged fire hazards from federal lands within the County without first complying with federal law. The County also announced plans to cut and remove trees from more than 60,000 acres of lands on the Lincoln National Forest, without approval from the Forest Service.
In October 2015, the District Court entered an order declaring that the New Mexico statute and Otero County resolution were preempted by federal law and thus were unconstitutional. The Otero County Commission appealed this decision to the Court of Appeals. The State of New Mexico did not appeal.
On December 8, 2016, the Court of Appeals unanimously rejected the Otero County Commission’s appeal, and affirmed the District Court’s decision in its entirety. The Court of Appeals found that binding Supreme Court case law establishes that the Property Clause of the U.S. Constitution gives the federal government complete power over federal property. Thus, while State and local governments can ordinarily exercise police powers over federal land within their boundaries, those powers must yield under the Supremacy Clause when they conflict with federal law under the Property Clause. The Court stated that “[w]hen different governments differ in their assessment of danger, one must prevail, and the Supremacy Clause says that in these circumstances it must be the United States.” The Court concluded that the Otero County resolution and New Mexico state statute were unconstitutional because they were inconsistent with Forest Service regulations governing National Forests under several federal statutes enacted by Congress.
Senior Litigation Counsel David C. Shilton and Senior Trial Attorney Andrew A. Smith of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Ruth F. Keegan of the U.S. Attorney’s Office for the District of New Mexico, represented the United States in this litigation. They were assisted by Nicholas L. Pino of the U.S. Department of Agriculture, Office of General Counsel.
Otero County OpinionFCI-Greenville Inmate Sentenced for Possession of ContrabandRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on December 9, 2016, Antonio M. Green, 27, an inmate at the Federal Correctional Institution located in Greenville, Illinois (FCI-Greenville), was sentenced for possession of contraband by a federal inmate. Green received eighteen months of imprisonment, to run consecutively to the term of imprisonment for which he is incarcerated. He also received an additional two years of supervised release, to run concurrently to the term of supervised release for which he is incarcerated. Green was also fined $200 and ordered to pay a $100 special assessment. Green has been detained since his arraignment on the Indictment on July 11, 2016.
The charge arose when, on April 4, 2016, a correctional officer performed a random shakedown of Green’s cell and found a seven inch, ice pick style weapon with a handle in his locker. Green admitted that the weapon was his, stating that he had it for his own protection. Federal inmates are prohibited from possessing weapons.
The case was investigated by the Bureau of Prisons’ Special Investigations Section. The case was assigned to Assistant United States Attorney Angela Scott
Executive Pleads Guilty to $10.5 Million Bank FraudRead the Press Release
RICHMOND, Va. – Michael P. Klekamp, 67, of Charlottesville, pleaded guilty today to charges of bank fraud that resulted in a $10.5 million loss to Fauquier Bank.
According to court documents, Klekamp was the President of Capitol Components and Millwork, Inc. (CCM), of Culpeper. CCM was involved in the manufacture, fabrication and distribution of architectural building material millwork items for mid to high-end residential and commercial buildings. To run its business, CCM drew money from a standard secured revolving line of credit line at Fauquier Bank. The credit line agreement required CCM to submit periodic reports to the Bank about the value of the underlying collateral, such as accounts receivable and inventory, and the creditworthiness of CCM.
According to court documents, Klekamp fraudulently maintained the credit line by misrepresenting the true financial condition of CCM and made a variety of false statements to the bank about the true amount and quality of the collateral of CCM. On Oct. 25, 2015, Klekamp submitted documents to the bank fraudulently stating there was approximately $17 million of total accounts receivable and inventory securing the bank’s $11.5 million credit line, while in actuality there was no more than $3.4 million of total accounts receivable and inventory. Contrary to the fake financial statements submitted to the bank, CCM was not able to repay the interest or principal amount of the loan, resulting in a loss of approximately $10.5 million as a result of the scheme.
Klekamp faces a maximum penalty of 30 years in prison when sentenced on March 24, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge Henry E. Hudson. The case was investigated by Richmond Division, Charlottesville Resident Agency of the FBI. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-141.
Essex County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Kirkland Smith, age 55, of Witherbee, New York, pled guilty today to six counts of possessing child pornography.
The announcement was made by U.S. Attorney Richard S. Hartunian; New York State Police Superintendent George P. Beach II; and James C. Spero, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office.
As part of his guilty plea, Smith admitted to possessing hundreds of videos and images of child pornography on a memory card seized from his car and on five hard drives seized from his home. Smith, who was previously convicted of second-degree child molestation in Rhode Island, also admitted that the child pornography involved prepubescent minors and minors under the age of 12.
On each count, Smith faces at least 10 years and up to 20 years in prison, a $250,000 fine, and a term of post-imprisonment supervised release of at least 5 years and up to life when he is sentenced on April 10, 2017 by Senior U.S. District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the New York State Police and Homeland Security Investigations (HSI), and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
El Dorado Hills Woman Sentenced to 2 Years in Prison for Tax Refund Conspiracy Involving More than $750,000 in Illegitimate RefundsRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Sherry Taggart, 57, of El Dorado Hills, today to two years in prison and ordered her to pay $757,412 in restitution for conspiring to file false claims and filing false claims, U.S. Attorney Phillip A. Talbert announced. Taggart pleaded guilty to the charges on September 23, 2016.
According to court documents in 2010, Taggart joined a scheme initiated in 2008 and operated by her co-conspirator, Barbara Antonucci, an unlicensed tax preparer, to obtain false refunds by preparing and filing false claims on behalf of clients with the IRS. Together, the two conspired to prepare and file hundreds of false claims with the IRS between June 2012 and March 2014, seeking refunds totaling approximately $1.4 million. As a result of the conspiracy, the IRS issued more than $757,000 in illegitimate refunds. In total, including the period in which Antonucci operated the scheme by herself, the IRS issued more than $1.8 million in illegitimate refunds from more than $2.5 million illegitimate claims filed during the scheme.
The fraudulent returns Taggart and Antonucci prepared and caused to be filed reported false wages and dependents for their clients and, in many cases, qualified the clients for the refundable Earned Income Credit (EIC) when the client’s true wages or family situation would have qualified the client for no credit or a lower credit. Most of the fraudulent returns listed wages associated with self-employment not documented by a Form W-2, such as “housekeeper.” The defendants obtained the names, social security numbers, and other personal identifying information of minors and falsely listed those minors as dependents on tax returns for clients who were unrelated to those minors. Taggart and Antonucci also filed false claims on their own behalf. They filed the false federal tax returns with the IRS through the mail and via the internet from Sacramento, Yuba and Placer Counties.
“As we approach tax filing season next month it is important that this sentence represents adverse consequences for those tax return preparers who file false tax returns for their clients,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “It is important for tax return preparers to follow the law and guidance set forth by IRS on preparing tax returns. It is also very important for taxpayers to review their tax return with their tax return preparer to verify it has been prepared correctly before it is filed with the IRS and ask questions when they do not understand what has been prepared.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex Identity Fraud Schemes and to protect the public and their personal information from theft.”
Taggart was ordered to surrender to begin serving her sentence on February 17, 2017. Antonucci was sentenced on December 2, 2016, to three and a half years in prison.
This case was the product of an investigation by the IRS‑Criminal Investigation, the United States Postal Inspection Service, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
District Man Sentenced to 7 1/2-Year Prison Term in Shooting of Off-Duty Security GuardRead the Press Release
WASHINGTON - Warren Bibbs, 34, of Washington, D.C., was sentenced today to a prison term of 90 months on charges involving the shooting of an off-duty security guard in Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Bibbs pled guilty in September 2016, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed and one count of threats. He was sentenced by the Honorable Chief Judge Robert E. Morin. After his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on May 2, 2016, at approximately 8:20 p.m., Bibbs went to the Columbia Heights apartment building where his girlfriend was staying with family members. Bibbs and his girlfriend had been arguing since the prior evening. While outside of the building, Bibbs threatened to come in and blow up the building.
As Bibbs was pacing up and down the sidewalk on 14th Street NW, he encountered an off-duty security guard who was on break. Bibbs pulled out a .38-caliber special revolver and shot the off-duty security guard at close range in his right shoulder. Bibbs was under the influence of K2 at the time of the offense. A lookout for the shooter was broadcast and Bibbs was located by police within hours with the loaded revolver on his person.
In announcing the sentence, U.S. Attorney Phillips commended the work performed by those who investigated the case from the Metropolitan Police Department. He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Donville Drummond and Victim/Witness Advocate Jennifer Clark. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Laura Crane, who investigated and prosecuted the matter.
District Man Sentenced to 42 1/2 Years in Prison for 2014 Slaying in Southeast WashingtonRead the Press Release
WASHINGTON – Gregory Green, 28, of Washington, D.C., was sentenced today to a prison term of 42 ½-years on charges stemming from the 2014 slaying of a man in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Green was found guilty by a jury in October 2016, following a trial in the Superior Court of the District of Columbia, of charges of first-degree felony murder while armed and robbery while armed. He was sentenced by the Honorable Milton C. Lee. Following completion of his prison term, Green is to be placed on five years of supervised release.
According to the government’s evidence, on March 29, 2014, shortly after midnight, the victim, Derrick Williams, returned from work to his home. After talking to his girlfriend for a few minutes, he left to go to buy something to drink. A short time later, a witness reported hearing gunshots in the area of the 1200 block of Eaton Place SE. The witness saw Green and another man standing over Mr. Williams, who was on the ground. Mr. Williams, 35, died almost instantly from one gunshot wound to the head. Green, wearing all black, went into Mr. Williams’s front pockets and then flipped the victim over before going into his back pockets. Green was arrested on April 2, 2014. No one else was arrested in the case.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI’s Cellular Analysis Survey Team. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels, Zekiah Wright, and Benjamin Kagan-Guthrie; Paralegal Supervisor Sharon Newman; Victim/Witness Advocate Marcia Rinker; Victim/Witness Services Coordinator Tonya Jones; Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Program Specialist Wanda Queen; Supervisory Victim/Witness Program Specialist Michael Hailey; Information Technology Specialist Leif Hickling; Criminal Investigator Mark Crawford; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Assistant U.S. Attorneys Chrisellen Kolb, John Mannarino and Stephen Rickard, and Intern James Haynes. Finally, they commended the work of Assistant U.S. Attorneys Adrienne Dedjinou and Charles Willoughby, Jr., who prosecuted the case.
Dearborn Resident Sentenced for Making False Statements to Federal Agents in Relation to a Terrorist InvestigationRead the Press Release
A 24-year old Dearborn man was sentenced yesterday to more than five years in prison for making false statements to federal agents in relation to a terrorist investigation, announced U.S. Attorney Barbara L. McQuade.
Joining in the announcement was David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division.
U.S. District Judge Gerald E. Rosen sentenced Mohammad Hassan Hamdan to 63 months in prison and ordered him deported from the United States to Lebanon upon completion of his sentence.
According to court records, on March 16, 2014, Hamdan attempted to fly to Lebanon and on to Syria to fight on behalf of Hizballah in the Syrian civil war. Before boarding an overseas flight to Lebanon, Hamdan was stopped by agents of the FBI. Hamdan admitted that he knew the United States had designated Hizballah a terrorist organization. He denied any plans to join Hizballah or to fight in Syria, instead stating that the purpose of his trip to Lebanon was to have dental work done. He later pleaded guilty and admitted that these statements were false.
"Supporting a terrorist organization anywhere in the world contributes to violent extremism and makes us all less safe," McQuade said.
This case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Ronald Waterstreet.
Clarksburg man pleads guilty to unlawful purchase of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Richard Slamick, 42, of Clarksburg, West Virginia pled guilty to unlawfully possessing a firearm in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Slamick pled guilty to one count of “False Statement During the Purchase of a Firearm.” He admitted to falsely representing that he was the actual buyer of a .380 caliber pistol when he was actually attempting to purchase the firearm on behalf of another person.
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Children of Deceased Beneficiaries Admit Stealing Almost $300,000 from Social SecurityRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – December 9, 2016
SAN DIEGO – Pamela Anita Thomas of Lemon Grove and Darla Ann Ausman, formerly of Henderson, Nevada, pleaded guilty in unrelated cases this week to stealing Social Security benefits intended for their parents who had died years earlier.
According to court documents, Thomas’ father began receiving Social Security retirement benefits via direct deposit into his bank account in 1998. Although her father died in November 2001, Thomas made no effort to notify the Social Security Administration that the beneficiary of these retirement benefits had passed away, or to cancel the direct deposit. Over more than a decade, Thomas allowed an additional $170,000 in benefits to be deposited into her deceased father’s bank account, and then repeatedly transferred the money for her own personal use.
Similarly, Ausman’s mother began receiving Social Security retirement benefits via direct deposit into her bank account in 1996, and died in May 2007. Ausman also failed to notify the Social Security Administration that the retirement benefits were no longer warranted, and allowed over $120,000 in benefits to continue to be deposited directly into her deceased mother’s bank account.
Both defendants admitted knowing that their respective parent’s Social Security retirement benefits should not have continued to be paid after their deaths.
“By collecting benefits that did not belong to them, these defendants took money away from those who need it most – elderly retirees, people with severe illnesses and widows and children of deceased wage earners,” said U.S. Attorney Laura Duffy. “This office will continue to investigate and prosecute fraud and waste in these important government programs.”
“The Social Security Administration’s Office of the Inspector General is committed to pursuing those who violate the public trust,” said Robb Stickley, the Special Agent in Charge of the San Francisco Field Division, which is responsible for Southern California. “We will continue to uphold the integrity of Social Security’s benefit programs, which are a lifeline for so many Americans and their families.”
As a part of their plea agreements, Thomas and Ausman agreed to repay all the money that they stole from the Social Security Administration, but each still faces up to ten years in prison and a fine of up to $250,000. Both were released on bail pending sentencing.
Thomas is scheduled to be sentenced on February 27, 2017, before U.S. District Court Judge Cynthia Bashant. Ausman is scheduled to be sentenced on February 17, 2017, before Chief U.S. District Judge Barry Ted Moskowitz.
DEFENDANT Case Number 16cr2811-BAS
Pamela Anita Thomas Lemon Grove, CA
DEFENDANT Case Number 16cr2831-BTM
Darla Ann Ausman Henderson, NV
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitutionINVESTIGATING AGENCY
Social Security Administration’s Office of Inspector General
Child Sex Trafficker Convicted at TrialRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Samuel Pratt, a/k/a “Promise,” age 34, of Gastonia, North Carolina, was found guilty on 8 counts related to sex trafficking, child pornography and firearm charges in federal court in Columbia. United States District Judge Terry L. Wooten of Columbia presided over the four-day trial and will impose sentence on Pratt after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at trial established that the defendant ran a prostitution business of both adults and juveniles, in South Carolina, North Carolina and New York. The trial opened a window into the seedy world of human trafficking in the Carolinas. Witnesses provided extensive testimony about the manipulation and abuse, as well as the inner-workings of the sex trafficking operation. Two of the victims were recruited at 14 and 17. This was the first jury verdict in South Carolina related to human trafficking. The defendant’s mother, Daphne Pratt, previously plead guilty to conspiracy to sex traffic children in the case.
Ms. Drake stated, “Sex traffickers prey on those in our society who are most vulnerable. This case is a great example of how law enforcement at the state and federal level, working together, can bring these predators to justice.”
The maximum penalty for five of the counts is life. The case was investigated by agents of the FBI, the ATF, and the US Marshals. Assistant United States Attorneys Jim May and Will Lewis of the Columbia office prosecuted the case.#####
Chief Financial Officer of Furniture Company Sentenced to Two Years in Prison for Accounting Fraud Against Bank, and Gas City, IndianaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that NORMAN D’SOUZA, the former chief financial officer and vice president of finance of a New Jersey-based furniture wholesaler and retailer (“Company-1”) and an Indiana-based furniture manufacturer affiliated with Company-1 (“Company-2”) (collectively, the “Companies”), was sentenced yesterday to two years in prison for orchestrating a fraudulent scheme to obtain $17 million in loans from a commercial bank based in New York, New York (the “Bank”), and $1 million in municipal loans from Gas City, Indiana (the “City”). D’SOUZA and his co-conspirators obtained this financing by making false statements and providing false and fraudulent documents concerning the Companies’ financial condition. D’SOUZA pled guilty on April 1, 2016, before U.S. District Judge Ronnie Abrams, who imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Norman D’Souza repeatedly misrepresented the financial condition of two companies to deceive a bank and a municipality into lending the companies millions of dollars. He will now spend time in a federal prison for his crimes.”
According to the allegations contained in the criminal information to which D’SOUZA pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
From 2011 until September 2014, Company-1, through D’SOUZA and others, fraudulently induced the Bank into lending Company-1 millions of dollars by repeatedly making false and misleading statements about Company-1’s financial condition. D’SOUZA falsely inflated Company-1’s sales and accounts receivable on “borrowing base certificates” and in financial statements that D’SOUZA provided to the Bank pursuant to loan agreements. D’SOUZA used those falsely inflated sales and accounts receivable to mislead the Bank about Company-1’s true financial performance, which enabled Company-1 to secure and draw down a $17 million revolving credit facility from the Bank. Company-1 ultimately defaulted on the loans issued by the Bank in September 2014. At that time, the outstanding balance of the loans was approximately $16.99 million.
Separately, in 2012, the City offered loans and other financial incentives to Company-2 in return for Company-2’s agreement to operate a furniture factory in the City and employ local residents. To secure this arrangement, among other things, D’SOUZA falsely inflated Company-2’s sales figures in financial statements provided to the City. The false financial statements misled the City about Company-2’s true financial performance and enabled Company-2 to secure and draw down more than $1 million in loans from the City. Company-2 ultimately defaulted on the loans issued by the City in September 2014, causing approximately 60 City residents to lose their jobs. At that time, the outstanding balance of the loans was $1 million.
* * *
In addition to his prison term, D’SOUZA, 50, of Monmouth Junction, New Jersey, was sentenced to two years of supervised release, and ordered to pay forfeiture and restitution, both in the amount of $12,256,871.48.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
Carroll County Man Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
ABINGDON, VIRGINIA – The former store manager of the Carroll County Cooperative pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to conspiring to defraud the Food and Drug Administration [FDA], United States Attorney John P. Fishwick Jr. announced.
Marlin Webb, 58, of Woodlawn, Va., waived his right to be indicted and pled guilty today to a one count Information charging him with conspiracy to defraud the Food and Drug Administration.
“Law Enforcement will continue to be vigilant in ensuring all substances sold are done legally and in-line with FDA standards,” United States Attorney Fishwick said today. “We are proud to team with the FDA to bring charges in this important case.”
“To protect the public, the administration of prescription veterinary drugs to food-producing animals must be carefully monitored and requires the involvement of a veterinarian, among other requirements. When individuals attempt to circumvent these protections, they risk harming the public health,” said Mark A. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue to pursue and bring to justice those who ignore the law.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Randy Ramseyer, Marlin was the store manager at the Carroll County Cooperative, through which he illegally obtained, stored, sold and caused to be shipped veterinary prescription drugs. Federal regulation of prescription veterinary drugs are not primarily to protect animals from the potential harms of prescription drugs, but are to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Accordingly, veterinary prescription drugs must stay within the controlled chain of distribution to ensure the drugs’ safety and efficacy. Marlin obtained and distributed prescription veterinary drugs outside of the controlled chain.
Sentencing is scheduled for March 30 at 11:00 a.m. in Abingdon. Webb faces a maximum sentence of five years in prison and a fine of $250,000. As part of the plea agreement, Webb paid $125,000 in forfeiture and other payments.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Canadian Man Sentenced for Unlawful ReentryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Arthur Hugh Stephen Knox, 58, of Canada, who was convicted of attempted unlawful reentry into the Untied States, was sentenced to time served (three months) by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that on September 11, 2016, Knox, a citizen of Canada, attempted to enter the United States at the Rainbow Bridge Point of Entry. A Customs and Border Protection database check revealed that the defendant had multiple prior convictions in the United States, including three convictions for felony drug possession. As a result of his criminal record, in July 2007, a United States Immigration Judge ordered Knox to be removed from the United States and to be prohibited from reentering for a period of 10 years.
The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey.
Canadian Man Charged with Unlawful Reentry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Donald T. Johnson, 34, of Peterborough, Ontario, Canada, was arrested in Canton, New York, and charged by criminal complaint yesterday with unlawful reentry of a removed alien, announced United States Attorney Richard S. Hartunian. Johnson made his initial appearance yesterday before United States Magistrate Judge David E. Peebles and was ordered detained pending further proceedings in the case. The criminal complaint alleges that Johnson, a Canadian citizen, unlawfully reentered the United States after having been deported in 2011.
The charge filed against Johnson carries a maximum sentence of 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by United States Border Patrol, and is being prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
California Man Sentenced to 80 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Raymond Carter, 73 of Rancho Cordova, Calif., was sentenced today to 80 months in prison on a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Carter pled guilty in September 2016, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, Carter will be placed on 10 years of supervised release. He also will be required to register as a sex offender for 25 years upon his release from prison.
According to the government's evidence, on May 6, 2016, Carter began communicating with an undercover officer with the FBI's Child Exploitation Task Force who purported to have access to a juvenile. Carter then began a series of text message conversations with the undercover officer in which he indicated that he would be traveling to Washington, D.C. As their conversations continued, he arranged to meet on May 10, 2016. When he arrived at a pre-arranged meeting place in Washington, D.C., he was arrested. He has been in custody ever since.
During his conversations with the undercover officer, according to the government’s evidence, Carter made reference to a previous arrest that led to his conviction in another federal child exploitation case. In that case, which was filed in the Eastern District of California, Carter was sentenced in 2005 to a three-year prison term and ordered to register as a sex offender.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Interim Chief Newsham praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Businessman Pleads Guilty to More Than $4.6 Million Wire Fraud SchemeRead the Press Release
DALLAS — Wesley Michael Woodyard, 65, most recently of Dallas, appeared in federal court this afternoon and pleaded guilty, before U.S. District Judge Sidney A. Fitzwater, to one count of wire fraud stemming from his scheme to defraud Ace European Insurance Company (ACE) of more than $4.6 million from approximately 2002 through 2013. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Woodyard, who has been in custody since his arrest in June 2016, faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. He could also be ordered to pay restitution. Sentencing is set for March 24, 2017.
According to documents filed in the case, from 1993 through 2015, Woodyard was the sole owner and operator of Ringler Associates of North Texas, Incorporated (RANT). From approximately 2002 through 2013, Woodyard devised and engaged in a fraud scheme in which he engaged in a pattern of deceitful conduct and false representations to fraudulently induce representatives of Ace European Insurance Company (ACE), a large insurance company located in London, England, to send approximately $4,674,258 to bank accounts that Woodyard controlled. ACE initially sent these funds to companies acting as a third party administrator; they then transferred the ACE funds to Woodyard.
Woodyard concealed his theft of ACE funds from the Ringler Insurance Agency (RIA). The fraud scheme allowed Woodyard to fraudulently retain commission funds earned by RIA. Woodyard repeatedly stole ACE funds, totaling approximately $4,674,258, that were wired from London. ACE intended Woodyard to honestly use these funds to purchase annuities for the benefit of many insurance claimants. However, as charged in the indictment, as part of the scheme to defraud ACE, Woodyard caused ACE to make 11 wire transfers to banks in the United States; these funds were later wired to bank accounts in Texas.
Woodyard falsely represented to ACE, as well as to third party administrators Roger Rich and Company and Vanbreda International, that he intended to lawfully use all funds received from ACE to purchase several life insurance annuity contracts from Metropolitan Life, Incorporated or some other legitimate insurance company. Woodyard caused ACE funds to be sent from Roger Rich and Company and Vanbreda directly to RANT, rather than to the annuity provider, thus denying RIA its earned commission for the transaction.
Woodyard fraudulently concealed from ACE and others that he unlawfully used the majority of ACE funds of his own personal financial benefit. He admitted he concealed the theft because he knew that ACE would never agree to send him approximately $4,674,258 in ACE funds if ACE knew he intended to steal the funds.
Out of the $4,674,258 in funds Woodyard fraudulently obtained, Woodyard paid out approximately $857,626 to beneficiaries, resulting in a net financial gain to Woodyard of $3,816,632.
The Federal Bureau of Investigation is in charge of the investigation. The prosecution is being handled by Assistant U.S. Attorney David Jarvis.
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Buffalo Man Charged with Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Joshua Butler, 42, of Buffalo, NY, was charged by criminal complaint with possession of child pornography subsequent to a prior conviction. The charge carries a minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on April 13, 2016, Butler was convicted in state court of one count of Promoting a Sexual Performance by a Child, and subsequently sentenced to 10 years probation. On July 19, 2016, an Erie County Probation Officer searched Butler’s residence in accordance with the terms of his probation. The probation officer recovered one cellular phone with internet capabilities which Butler was prohibited from having. A forensic examination determined that the cellular phone contained over 300 images of child pornography, some of which depicted children under the age of 12 as well as images of violence.
The defendant made an initial appearance this afternoon before Magistrate Judge Jeremiah J. McCarthy. Butler is being held in state court for a probation violation.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Berkeley County man sentenced for stalking ex-girlfriendRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Glenn Bartley, 56, of Inwood, West Virginia, was sentenced to 71 months in prison for multiple federal stalking charges, United States Attorney William J. Ihlenfeld, II, announced.
Bartley was found guilty by a jury following a three-day trial in April 2016. Evidence presented at trial indicated that he harassed his former girlfriend by mailing indecent photographs of her to others. He was found guilty of three counts of “Stalking” and one count of “Interstate Violation of a Protective Order.”
Assistant U.S. Attorneys Michael Stein and Sarah Montoro prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. District Judge Irene M. Keeley presided.
Baltimore Man Pleads Guilty to Distributing HeroinRead the Press Release
Baltimore, Maryland – Lamar Vinson Kaintuck, age 28, of Baltimore, pleaded guilty today to distribution of heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Calvert County Sheriff Mike Evans; Harford County Sheriff Jeffrey R. Gahler; Chief James W. Johnson of the Baltimore County Police Department; and Maryland Attorney General Brian E. Frosh.
According to his plea agreement, on September 26, 2015, members of the Calvert County Sheriff’s Office responded to the scene of a fatal heroin overdose. Investigation of the death determined that the victim had obtained communicated with “Chris,” concerning purchasing heroin prior to his fatal overdose. Investigators reviewed cell site information which indicated that the victim and “Chris” met up just prior to the victim’s overdose and death. The phone for “Chris” was linked to Lamar Vinson Kaintuck by a confidential source who also identified him by photo array.
Kaintuck was arrested on May 16, 2016, and law enforcement recovered a cell phone during a search of Kaintuck. The cell phone was assigned the same number used by the heroin overdose victim to purchase heroin. A search of the cell phone revealed numerous drug related messages. Kaintuck admits that he supplied the victim with heroin just prior to the victim’s fatal overdose.
Kaintuck and the government have agreed to recommend that Kaintuck be sentenced to between five and 12 years in prison, followed by three years of supervised release. The Court is under no obligation to accept this recommendation and will make the final decision as to the appropriate sentence. U.S. District Judge James K. Bredar has scheduled sentencing for March 21, 2017.
United States Attorney Rod J. Rosenstein commended the DEA, Calvert County Sheriff’s Office, Harford County Sheriff’s Office, Baltimore County Police Department, and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Keri L. Borzilleri, on detail from the Maryland Attorney General’s Office, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Atlanta Women Sentenced to Prison for Possessing Marijuana with Intent to DistributeRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced on December 8, 2016, Noelle Bishopel, 27, and Sierra Wimberly, 26, both of Atlanta, Georgia, for possessing with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez sentenced Wimberly to two months’ incarceration, two years of supervised release, 300 hours of community service and a $100 special assessment. Judge Gomez sentenced Bishopel to four months’ incarceration, two years of supervised release, 300 hours of community service and a special assessment of $100.
According to court records, on April 6, 2016, at the Cyril E. King Airport, St. Thomas, Virgin Islands, U.S. Customs and Border Protection officers detected narcotics in checked bags belonging to Wimberly and Bishopel, who had arrived on a Delta Airlines flight from Atlanta. They were both taken to secondary inspection where their checked bags were further examined. CBP officers seized approximately 4.9 kilograms of marijuana from Wimberly’s bag, and 9.45 kilograms of marijuana from Bishopel’s bag.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Everard Potter.
Ambulance Company Owner and Brother Convicted in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Two brothers have been convicted on charges of conspiracy to commit health care fraud, health care fraud and money laundering, announced U.S. Attorney Kenneth Magidson.
Kevin Olufemi Davies, 29, and his brother Melvin Olusola Davies, 28, owned and operated KMD Healthcare Services Inc. (KMD) from their home in a gated townhouse community in Houston. As part of their guilty pleas, they admitted they used stand-in emergency medical technicians (EMT) who were not employees or affiliated with KMD to pass the state inspection necessary for enrollment in the Medicare program.
Medicare and Medicaid only pay for medically necessary ambulance services in vehicles designed and equipped to respond to medical emergencies and for patients who cannot be safely transported by any other means of transportation. Medicare also requires two individuals to staff ambulance transports, including at least one licensed EMT.
The brothers admitted that KMD transported Medicare beneficiaries in private passenger vans and that only one EMT was present. The EMTs wrote up ambulance “run sheets” even though the Medicare beneficiaries did not travel by ambulance and did not need ambulance services. The individuals transported were not bed bound, could walk and routinely used non-ambulance transport in their daily activities. One patient even walked to her own therapy session, but KMD billed Medicare $51,952 for her ambulance transportation.
The brothers admitted they paid a Houston physician $500 per medical necessity order in order to bill Medicare.
KMD billed Medicare, Medicaid and Tricare (another government health program) approximately $6,293,108 in false and fraudulent claims for ambulance services that were not provided and not medically necessary. They received at least $2,201,137 from Medicare, $219,924 from Medicaid and $16,735.29 from Tricare as payment for those claims.
The brothers have agreed to forfeit vehicles they purchased with the fraudulent health care proceeds, including a 2010 Porsche Panamera and a 2012 Mercedes Benz CLS. They have also agreed to pay full restitution to the health care programs.
U.S. District Judge Lynn Hughes accepted the pleas today and has set sentencing for March 13, 2017. At that time, the Davies face up to 10 years in federal prison on each count of conviction as well as a possible $250,000 fine. Both defendants have been in federal custody since their arrest on May 25, 2016, where they will remain pending that hearing.
The FBI, IRS – Criminal Investigation, Texas Office of the Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Albuquerque Resident Pleads Guilty to Violating Federal Drug Trafficking LawsRead the Press Release
ALBUQUERQUE – Shawn Anthony Burns, 31, of Albuquerque, N.M., pled guilty today in federal court to violating federal drug trafficking laws under a plea agreement with the U.S. Attorney’s Office.
Burns was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Burns was arrested in July 2016, on an indictment charging him with distributing crack cocaine on April 19, 2016, April 20, 2016, and April 29, 2016, in Bernalillo County. The indictment included forfeiture provisions requiring Burns to forfeit approximately $4,000 to the United States.
During today’s hearing, Burns pled guilty to distributing crack cocaine and admitted that on April 29, 2016, he distributed 28 grams and more of crack cocaine. At sentencing, Burns faces a statutory minimum penalty of five years and a maximum penalty of 40 years in prison. A sentencing hearing has yet to be scheduled
To date, 17 of the 104 defendants charged as a result of the ATF investigation have entered guilty pleas. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF and DEA and is being prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Albuquerque Man Sentenced to 18 Years for Armed Robbery of Walmart StoreRead the Press Release
ALBUQUERQUE – Raymond Castillo, 27, of Albuquerque, N.M., was sentenced yesterday in federal court to 18 years in prison for violating the Hobbs Act by participating in the armed robbery of a Walmart store in Albuquerque in Oct. 2014. Castillo will be on supervised release for three years after completing his prison sentence.
Castillo was arrested on Dec. 12, 2014, on a criminal complaint charging him with conspiring to rob a business involved in interstate commerce at gunpoint in violation of the Hobbs Act. The criminal complaint charged Castillo and a co-conspirator with the armed robbery of convenience store located at 1111 Lomas Blvd. NW in Albuquerque on Dec. 7, 2014. The complaint further alleged that the co-conspirator, who was wearing a hooded sweatshirt and a bandana that covered his face, shot and injured the store clerk during the robbery, and that Castillo drove the co-conspirator away from the scene of the robbery.
On Jan. 21, 2015, Castillo and five co-defendants were charged with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Castillo and five other Albuquerque residents, Reyes Lujan, 27, Daniel Maestas, 36, Johnny Ramirez, 31, Frank Gallegos, 31, and Henry Lujan, 23, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
The indictment was superseded in May 2015, by adding a new defendant, Reynaldo Marquez, 26, of Albuquerque, and two new counts. One of the new counts charged Castillo and Marquez with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County on Dec. 7, 2014. The other charged Marquez with discharging a firearm during that robbery.
On Aug. 2, 2016, Castillo pled guilty to Count 2 of the third superseding indictment charging him with violating the Hobbs Act. In entering the guilty plea, Castillo admitted that on Oct. 29, 2014, he and his co-defendants robbed a Walmart store by threatening the Walmart employees with a firearm.
Castillo’s six co-defendants previously have entered guilty pleas. Reyes Lujan was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release, Gallegos was sentenced on Sept. 8, 2016, to 71 months in prison followed by three years of supervised release, Ramirez was sentenced on Oct. 6, 2016, to 71 months in prison followed by three years of supervised release, and Reynaldo Marquez was sentenced on Dec. 1, 2016, to 120 months in prison followed by five years of supervised release. The two remaining co-defendants are in custody pending their sentencing hearings.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
18 Facing Charges Related to Health Care Fraud and Prescription Pill Distribution RingRead the Press Release
PITTSBURGH – Eighteen individuals have been charged in 13 indictments for their role in a large-scale health care fraud and prescription pill distribution scheme, Acting United States Attorney Soo C. Song announced today. The separate, but related, indictments, returned Tuesday and unsealed today, charge the defendants with drug distribution, health care fraud and conspiracy to commit health care fraud. The indictments allege that the defendants obtained prescription painkillers paid for by government-funded health care programs and then sold their pills for cash. The buyers then redistributed the pills to addicts.
The grand jury returned an 11-count superseding indictment charging the following six defendants:
Mark Coleman, 37, of Pittsburgh, Pa.; Jeremiah Davidson, 60, of Pittsburgh, Pa.; Kavon Dawkins, 23, of Clinton Twp., Michigan; Tevina Harris, 22, of Pittsburgh, Pa.; Nicole Miller, 29, of formerly Pittsburgh, Pa. and currently incarcerated; and
William Richardson, formerly Pittsburgh, Pa., 15212 and currently incarcerated.According to the superseding indictment, Coleman, Davidson, Dawkins, Harris, Miller and Richardson conspired to distribute oxycodone and oxymorphone from August 2014 to June 2016. Harris and Richardson are charged with possession with intent to distribute oxymorphone on August 6, 2014 and August 14, 2014; and with possession with intent to distribute oxycodone on August 12, 2014. Davidson is charged with conspiracy to defraud UPMC Health Plan by selling prescription medications he obtained for himself. Richardson is charged with conspiracy to defraud health care benefit programs from March 2016 to May 2016 by obtaining, through false pretenses, prescription medication prescribed for others and paid for by their health care plans. The indictment also charges Richardson with defrauding UPMC Health Plan, Envision Rx Plus, and Gateway Health by receiving prescription medications for himself and selling them, and for paying individuals for prescription medications issued in their names and selling their medications. Richardson is also charged with possession with intent to distribute oxycodone and oxymorphone on August 15, 2014. The indictment further alleges that on August 15, 2014, Richardson was in possession of six firearms in furtherance of a drug trafficking crime. Finally, the indictment alleges Richardson, a convicted felon who has 11 prior convictions for crimes punishable by more than a year in prison, illegally possessed five firearms on August 15, 2014. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
A five-count indictment charges Angela Vernon, 65, of Pittsburgh, Pa., with defrauding UPMC Health Plan and conspiracy to possess with intent to distribute and distribution of oxycodone.
A four-count indictment charges Antoinette Adair, 48, of Pittsburgh, Pa., with defrauding Envision Insurance Company and conspiracy to distribute oxycodone and oxymorphone.
A four-count indictment charges James Roberson, 61, of Pittsburgh, Pa., with defrauding UPMC Health Plan and conspiracy to possess with intent to distribute and distribution of oxycodone and oxymorphone.
A three-count indictment charges Jacqueline Bauer, 33, of Gibsonia, Pa., with defrauding UPMC Health Plan and conspiracy to distribute oxycodone and oxymorphone.
A three-count indictment charges Mildred Rainey, 60, of Pittsburgh, Pa., with conspiracy to defraud health care insurance companies and possession with intent to distribute oxycodone.
A three-count indictment charges Marion Randolph, 62, of Pittsburgh, Pa., with defrauding Aetna, Inc. and possession with intent to distribute oxycodone.
A two-count indictment charges Teresa Bernardi, 54, of Pittsburgh, Pa., with conspiracy to defraud health care insurance companies and possession with intent to distribute oxycodone.
A two-count indictment charges Donna Swigart, 53, of Ford City, Pa., with defrauding Gateway Health and conspiracy to possess with intent to distribute oxycodone.
A two-count indictment charges Jeannette Smith, 53, of Ford City, with defrauding Gateway Health and conspiracy to possess with intent to distribute oxycodone.
A two-count indictment charges John Zurich, 40, of North Versailles, Pa., with conspiracy to possess with intent to distribute oxycodone and possession of a firearm by an unlawful user of controlled substances.
A one-count indictment charges Jennifer Troy, 40, of Gibsonia, Pa., with conspiracy to possess with intent to distribute oxycodone and oxymorphone.
A one-count indictment charges Chani Watkins, 25, of Coraopolis, Pa., with conspiracy with intent to distribute oxycodone and oxymorphone.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation and the Drug Enforcement Administration conducted the investigation that led to the prosecution of these defendants.
8 December 2016
Windermere Man Sentenced to 25 Years for Receipt, Distribution, and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Rodolfo Martinez Rodriguez (61, Windermere) to 25 years in federal prison for receipt, distribution, and possession of child pornography. The Court also imposed a life term of supervised release. He pleaded guilty on September 21, 2016.
According to the plea agreement, Rodriguez, acting under the user name “michael_modeling,” used Instagram to entice children into producing sexually explicit images and videos that he then distributed to other children. Rodriguez engaged in communications with girls as young as 9, while he portrayed himself to be either a male or female between the ages of 10 and 17. Rodriquez admitted that he had engaged in this conduct for a span of two years, and stated that he did not think that asking for and receiving child pornography from children over the Internet caused any harm to the children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Williamsport Man Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dominique Lassiter, age 26, of Williamsport, Pennsylvania, was indicted by a federal grand jury for drug trafficking and possession of firearms by a felon.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Lassiter distributed heroin in Williamsport in September and October 2016. After an investigation by the Lycoming County Narcotics Enforcement Unit, a search of Lassiter’s apartment uncovered a 9mm pistol, 12-gauge shotgun, .308 caliber rifle, heroin packaged for distribution, bulk heroin and cocaine, and items commonly used in drug trafficking such as digital scales and empty packets identical to the filled packets seized.
The charges stem from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Williamsport Bureau of Police, and the Lycoming County District Attorney’s Narcotics Enforcement Unit. The case is assigned to Geoffrey MacArthur for prosecution.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of 3 years’ supervised release following imprisonment, and a $1 million dollar 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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Westerly Resident Sentenced for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE – Normand Asselin, 41, of Westerly, was sentenced today to 87 months in federal prison for possessing and distributing child pornography, announced United States Attorney Peter F. Neronha and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Asselin to serve 10 years supervised release upon completion of his prison term. Asselin pleaded guilty on September 23, 2016, as charged in a federal indictment, to one count of distribution of child pornography and one count of possession of child pornography.
According to information presented to the court, in May 2015, Google security personnel reported to the National Center for Missing and Exploited Children that on March 18, 2015, images of child pornography were uploaded via email from an Internet Protocol (IP address) belonging to Normand Asselin. The information was forwarded to Rhode Island State Police. On May 15, 2015, Rhode Island State Police executed a court authorized search of Asselin’s Google email account which revealed that Asselin was sending and receiving images and video of child pornography.
On June 3, 2015, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) task force a executed court authorized arrest warrant for Asselin and a court authorized search of his residence. A forensic preview of a laptop belonging to Asselin revealed the existence of images and videos of child pornography. A further forensic examination of the laptop revealed approximately 1,250 images and approximately 70 videos of child pornography.
Asselin has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The Rhode Island ICAC task force is comprised of members of the Rhode Island State Police Computer Crimes Unit along with detectives from the Bristol, Coventry, Jamestown, Middletown, North Kingstown, Pawtucket, Portsmouth, Warwick, and Woonsocket Police Departments, and agents from Homeland Security Investigations, United States Naval Criminal Investigative Service and United States Postal Inspection Services.
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Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
West Hartford Man Sentenced to 45 Months in Prison for Distributing Crack, Heroin and FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EROS DIAZ, also known as “Red,” 21, of West Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 45 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine, heroin and fentanyl. Judge Covello also ordered DIAZ to perform 100 hours of community service while on supervised release.
According to court documents and statements made in court, in the spring of 2015, the DEA’s Hartford Task Force received information that DIAZ was selling narcotics in the Hartford area. Between May 2015 and June 2016, an undercover agent conducted 17 controlled purchases of crack cocaine and heroin from DIAZ and his associates. Prior to each of the controlled purchases, the undercover agent arranged to purchase narcotics by calling or texting DIAZ. DIAZ then directed the agent to travel to different locations in Hartford to complete the transaction. DIAZ either personally conducted the hand-to-hand exchange of narcotics with the agent, or would send an associate to complete the transaction.
Subsequent laboratory testing of the narcotics that were purchased revealed that some of the bags of purported heroin also contained fentanyl and acetyl fentanyl, and, in some instances, contained fentanyl and acetyl fentanyl and no heroin at all.
At the time of the drug sales, DIAZ was released on a $750,000 bond after being arrested in May 2015 on first degree assault and other charges related to a shooting that occurred in March 2015. The charges are pending in state court.
DIAZ has been detained since his arrest on June 7, 2016. On September 16, 2016, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack”), heroin, fentanyl and acetyl fentanyl.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Wethersfield and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Wahoo Man Sentenced for Filing a False Tax ReturnRead the Press Release
United States Attorney Deborah R. Gilg announced that Kent Jay Trembly, 61, of Wahoo, Nebraska., was sentenced today in Lincoln, Nebraska, to 2 years of probation, including 6 months of house arrest by United States Senior District Judge Richard G. Kopf, for filing a false tax return with the Internal Revenue Service. In addition to his probation sentence, Trembly was required to pay $110,374.58 in restitution to the Internal Revenue Service.
In February, 2009, Trembly filed a Form 1040 for the year 2006 with the Internal Revenue Service. That return was verified and signed by Trembly with a written declaration that it was made under the penalties of perjury. The Form 1040 signed by Trembly failed to indicate Schedule C income and gross receipts from his business activity, involving legal, veterinarian, supplement sales, and/or investment broker businesses, during the calendar tax year of 2006. This omission resulted in Trembly failing to report gross receipts of $1,110,982.77 and resulted in a reduction of business income of approximately $188,611 and a determined tax loss to the United States of approximately $50,507.
Additionally, Trembly filed a Form 1040 for the tax year 2007, which also failed to indicate Schedule C income and gross receipts on that tax return. That failure resulted in a reduction of business income of approximately $203,493.56 and a determined tax loss to the Unites States, of approximately $59,867.58.
“No matter what the source of income, all income is taxable,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy.”
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
This case was investigated by the Internal Revenue Service.
United States Attorney and Rensselaer County Host Meeting on Opioid Drug AddictionRead the Press Release
ALBANY, NEW YORK - On Monday, December 12th, the United States Attorney’s Office for the Northern District of New York is partnering with anti-heroin groups across Rensselaer County to host a presentation on heroin, opiates and other drugs, and their effect on human physiology-
“Understanding Heroin, Addiction and the Brain”
Guest Speaker, Michael Nerney
Monday, Dec. 12th, 7 – 9 PM
McDonough Sports Complex
Hudson Valley Community College“The explosion of prescription opioid drug abuse and heroin is a nationwide issue with terrible local consequences. Given the recent report from the U.S. Surgeon General that more people now use prescription opioids than use tobacco, it is no longer a matter of if opiate or heroin addition will affect someone you know, it’s when,” said United States Attorney Richard S. Hartunian. “Education and prevention are essential elements to combatting this epidemic. My office has partnered with six communities across the Northern District of New York to host this presentation and we will continue to work with community groups, law enforcement agencies and local government to combat this scourge,” said the U.S. Attorney.
Joining the U.S. Attorney’s Office in offering this presentation are Rensselaer County Executive Kathleen Jimino and the Rensselaer County Heroin Coalition, the Nopiates – Say No to Opiates – Coalition, the Troy Drug Free Community Coalition, the RADAR – Rensselaer Area Drug Awareness Reality Coalition, and the New York National Guard Counterdrug Task Force.
“Heroin and opioid addiction is devastating to those inflicted as well as to the person’s family and friends. Sadly, even those committed to breaking the chains of heroin addiction find the struggle difficult to overcome making it imperative to redouble our efforts to prevent addiction and support efforts to assist those seeking or in recovery. Additionally, I want to commend United States Attorney Richard S. Hartunian for his leadership on this issue as well as all of our partners in the Rensselaer County Heroin Coalition for their continued dedication,” stated Rensselaer County Executive Kathleen M. Jimino.
The December 12th evening event will include featured speaker Michael Nerney, the former director of the Training Institute of Narcotic and Drug Research in New York City. Mr. Nerney has been a national consultant on adolescent chemical dependency and addiction and has over thirty-seven years of experience in the field of substance abuse and prevention. His area of expertise includes psycho-pharmacology, adolescent chemical dependency, relapse prevention, heroin and prescription opioids. Mr. Nerney has also been a consultant to the federal Office of Substance Abuse Prevention, New York State Education Department, New York State Division of Probation and Correctional Alternatives, New York State Division of Criminal Justice Services, and two television networks. He has been featured on 20/20, a primetime news magazine television show.
The United States Attorney’s Office for the Northern District of New York has partnered with local groups to present programs featuring Michael Nerney in Plattsburgh through their Substance Abuse Prevention and Recovery of Clinton County, Mohawk Valley Community College with the Oneida County Sheriff, Massena High School Freshman Academy, and the St. Regis Mohawk Tribe Alcohol/Chemical Dependency Prevention Program. Two more presentations are slated with the Broome Opioid Abuse Council and the Jefferson County Community College in December.
Community showings of the 47-minute film, “Chasing the Dragon: The Life of an Opiate Addict,” a United States Department of Justice sponsored documentary, are scheduled in each of these areas as a follow-up meeting and discussion. The purpose of bringing communities together on opiate addiction is to –
- create an urgent awareness of the opiate/heroin epidemic,
- start the discussions people need to have on the issue,
- alter the stigma of addiction by bringing it into the open,
- stress that prevention is essential,
- declare that recovery is possible, and
- build unity in addressing the opiate/heroin epidemic.
For further information on how to schedule a “Chasing the Dragon” documentary showing in your community, call the U.S. Attorney’s Office at 518-431-0247.
Two members of Indiana family plead guilty to pain pill conspiracyRead the Press Release
CHARLESTON, W.Va. – Two members of a family from Indiana pleaded guilty today to an oxycodone conspiracy, announced United States Attorney Carol Casto. Steven Jurick, 57, of Valparaiso, and his mother-in-law, Linda Vannatter, 74, of Hammond, entered their guilty pleas to conspiracy to distribute oxycodone.
Jurick and Vannatter admitted to conspiring with each other from approximately January 2016 until April 13, 2016, to provide oxycodone to an individual who distributed the pain pills in Logan County. That individual contacted either Jurick or Vannatter on several occasions and met with either or both of them in Indiana to obtain oxycodone. Vannatter admitted that on March 15, 2016, she sold 231 thirty milligram and 17 twenty milligram oxycodone pills to that individual, who on that occasion was acting as a confidential informant. Jurick admitted that on April 13, 2016, he sold 150 thirty milligram oxycodone pills to that individual, who on that occasion was again acting as a confidential informant. The drug deals both took place in Indiana.
Jurick and Vannatter each face up to 20 years in federal prison when they are sentenced on March 15, 2017.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Sentenced on Federal Drug ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A second defendant in a local drug conspiracy which was responsible for dealing significant quantities of extremely pure methamphetamine, was sentenced today in the United States District Court for the Western District Court in Charlottesville, United States Attorney John P. Fishwick Jr. announced.
Ramon Gabriel Jr. of North Carolina previously pled guilty to one count of conspiring to distribute and possess with the intent to distribute methamphetamine. Today in District Court, Gabriel was sentenced to 42 months in federal prison to be followed by three years of supervised release. Gabriel was also ordered to pay a fine of $500.
A co-defendant in the case, David Valencia, 27, of Madison Heights, Va., was convicted of one count of conspiring to distribute and possess with the intent to distribute methamphetamine in June 2016. In September 2016, Valencia was sentenced to 38 months in federal prison, three years of supervised release and also ordered to pay a fine of $500.
“Methamphetamine trafficking continues to be a growing threat throughout the Western District of Virginia,” United States Attorney Fishwick said today. “We will continue to work with our partners in law enforcement to slow the influx of this deadly and addictive substance into Virginia.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Jefferson Area Drug Enforcement Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Two Head to Prison for Firearms TraffickingRead the Press Release
McALLEN, Texas – Two McAllen men have been sentenced to federal prison for their roles in the trafficking of firearms, announced U.S. Attorney Kenneth Magidson.
Dimas Rodriguez, 44, pleaded guilty June 29, 2016, admitting to being a felon in possession of a firearm, while Jose Gertrudis Partida, 71, pleaded guilty Aug. 31, 2016, admitting he transferred a firearm to a felon.
Following a hearing this morning, U.S. District Judge Micaela Alvarez ordered Rodriguez and Partida to serve 70 and 30 months in prison, respectively. During the hearing, Partida asked the court for a lower sentence due to his elderly age, lack of criminal record and his prior military service, which included the awarding of a Bronze Star. However, the government argued that a strong sentence was warranted due to his involvement in providing multiple firearms to individuals who either actually exported or represented to export firearms into Mexico for use by the Gulf Cartel and his involvement in drug trafficking-related activities.
In handing down the sentence, the court noted the troublesome connection with an offense involving both drugs and guns and stated that Partida’s sentence would also serve as a deterrent to those, whether young or old, who are contemplating such criminal actions. Partida will also serve two years of supervised release following his prison term and will be required to pay a $30,000 fine.
On Dec. 2, 2015, Partida provided Rodriguez with three semi-automatic firearms. Rodriquez then sold them to an individual who planned to provide the weapons to Gulf Cartel members. At the time Partida transferred the firearms to Rodriguez, he knew Rodriguez had been convicted of the felony offense of possession with intent to deliver a controlled substance and, therefore, prohibited from possessing firearms.
Rodriguez has been and remains in federal custody. Partida was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined at a later date.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County High Intensity Drug Trafficking Area Task Force. Assistant U.S. Attorney Roberto Lopez Jr. prosecuted the case.
Trio Sentenced for Roles in Interstate Vehicle Theft RingRead the Press Release
DAYTON, Ohio – Three individuals were sentenced in U.S. District Court yesterday for their roles in an interstate vehicle theft ring.
Merle Jay Lunsford, 57, of Dayton was sentenced to 60 months in prison. Shane Lunsford, 34, of Dayton, was sentenced to 24 months in prison. Joshua Jenkins, 22, of Milan, Indiana, was sentenced to time served. All three defendants were ordered to pay nearly $55,000 in restitution jointly.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division and Montgomery County Sheriff Phil Plummer announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, from at least June until December 2015, the trio would steal vehicles in Southern Ohio or Northern Kentucky and sell them across the state border for profit. The defendants possessed stolen vehicles, additional license plates from stolen vehicles, lock-picking tools, a firearm, heroin, methamphetamine and fentanyl.
All three defendants pleaded guilty to conspiracy to transport stolen vehicles across state lines. Merle Jay Lunsford also pleaded guilty to one count of receipt, possession and sale of a stolen vehicle which had crossed a state boundary and one count of being a felon in possession of a firearm.
Lunsford possessed a firearm after having been convicted of five previous felonies ranging in date from 1983 until 2003 and including offenses such as aggravated robbery and aggravated drug trafficking.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and Montgomery County Sheriff’s Office, as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.
Toledo man indicted for having 11 pounds of cocaineRead the Press Release
A Toledo man was indicted for having more than 11 pounds of cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Leroy L. Hooker, 47, was indicted on one count of possession with intent to distribute more than five kilograms of cocaine.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation in Toledo. The case is being handled by Assistant United States Attorneys Thomas P. Weldon and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three sentenced to prison for $3 million fraud involving Cleveland home health companyRead the Press Release
Three people were sentenced to prison for their roles in a $3 million conspiracy involving a home health service company with offices in Cleveland to defraud government insurance programs by billing for services not provided, law enforcement officials said.
George Epps, 43, of Cleveland, was sentenced to 46 months in prison.
Abdulazis Warsame, 51, of Cleveland, was sentenced to 37 months in prison.
Amir Ahmed, 51, of Columbus, was sentenced to 27 months in prison.
All three worked for Lifeline Home Health Services, which was incorporated in 2006 and had an office at 12200 Fairhill Road in Cleveland.
The defendants and others conspired between 2009 to 2013 to defraud Medicaid by submitting false documentation to become an accredited home healthcare provider, forging documents to make it appear doctors had approved specific plans of care, fabricating and billing for home health visits that had not taken place. Ahmed also recruited patients by offering cash kickbacks in exchange for becoming patients of Lifeline, according to court documents.
Collectively, they received payment for more than $3 million in fraudulent claims, according to court documents.
“These defendants stole millions of dollars from the public,” U.S. Attorney Carole S. Rendon said. “They have earned their time in prison. We will continue to work collaboratively to protect taxpayers and programs receiving federal dollars.”
“The sentencing of these defendants should send a message to illegitimate providers of home health services that the OIG and our law enforcement partners are actively engaged in identifying, exposing, and holding accountable those who choose to attack the Medicaid and Medicare programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to dedicate resources to combat fraud in the area of home health services to protect those patients who truly need these services, and to preserve vital taxpayer dollars.”
“These defendants orchestrated a multi-million dollar conspiracy to defraud Ohio Medicaid and live off of taxpayer dollars that they were never entitled to receive,” said Attorney General Mike DeWine. “Their conduct was egregious, and it is something that authorities with my office are trained to identify, investigate, and prosecute. I’m pleased that prison time and restitution was ordered in this case because this behavior will not be tolerated in Ohio.”
This case was prosecuted by Assistant U.S. Attorney Michael L. Collyer following an investigation by the Department of Health and Human Service’s Office of Inspector General, the FBI and the Ohio Attorney General’s Medicaid Fraud Control Unit.
Third U.S.-China High-Level Joint Dialogue on Cybercrime and Related IssuesRead the Press Release
Joint Summary of Outcomes
Yesterday, Attorney General Loretta E. Lynch and Department of Homeland Security Secretary Jeh Johnson, together with Chinese State Councilor and Minister of the Ministry of Public Security Guo Shengkun, co-chaired the third U.S.-China High-Level Joint Dialogue on Cybercrime and Related Issues. The dialogue aims to review the timeliness and quality of responses to requests for information and assistance with respect to cybercrime or other malicious cyber activities and to enhance pragmatic bilateral cooperation with regard to cybercrime, network protection and other related issues.
Both sides endorse the establishment of the dialogue mechanism as beneficial to bilateral communication and enhanced cooperation, and believe that further solidifying, developing and maintaining the dialogue mechanism and continuing to strengthen bilateral cooperation in cybersecurity is beneficial to mutual interests.
The outcomes of the third dialogue are listed as below:
1. Combatting Cybercrime and Cyber-Enabled Crime. Both sides re-commit to cooperate on the investigation of cyber crimes and malicious cyber activities emanating from China or the United States and to refrain from cyber-enabled theft of intellectual property with the intent of providing competitive advantages to companies or commercial sectors. To that end, both sides:
- Plan to continue the mechanism of the “Status Report on U.S./China Cybercrime Cases” to evaluate the effectiveness of case cooperation.
- Affirm that both sides intend to focus cooperation on hacking and cyber-enabled fraud cases, share cybercrime-related leads and information with each other in a timely manner, and determine priority cases for continued law enforcement cooperation. Both sides intend to continue cooperation on cases involving online distribution of child pornography. Both sides seek to expand cyber-enabled crime cooperation to counter Darkweb marketplaces’ illicit sale of synthetic drugs and firearms.
- Seek to provide concrete and timely updates on cases brought within the ambit of the dialogue.
- Exchanged views on existing channels of multilateral cooperation, and intend to continue exchanges regarding this topic.
2. Network Protection. Both sides acknowledged the network protection seminar held in August 2016 in China, and believe that enhancing network protection is beneficial to both sides. Both sides suggest holding regular network protection working-level meetings, either remotely or in-person, the next of which should be planned for 2017. Both sides seek to promote the protection of our respective networks through multiple methods. To that end, both sides:
- Plan to enhance network hygiene by promoting the cleaning and patching of malware infections in our respective networks and promoting best network protection practices.
- Propose to engage in regular reciprocal sharing of malicious IP addresses, malware samples, analytic products, and other network protection information, and to develop standard operating procedures to guide network protection cooperation.
- Seek to assess the effectiveness of information shared and provide substantive feedback to each side regarding the utility of that information.
- Plan to provide Principals with regular summaries of network protection cooperation.
- Intend to continue discussion on future cooperation concerning cybersecurity of critical infrastructure, and to provide timely assistance on cybersecurity incidents impacting critical infrastructure.
- Intend to hold, as early as possible in 2017, a U.S.-China government and technology company roundtable to discuss cybersecurity issues of mutual concern.
3. Misuse of Technology and Communications to Facilitate Violent Terrorist Activities. Both sides acknowledged the seminar on misuse of technology and communications to facilitate violent acts of terrorism held in November 2016 in China, and decided to continue cooperation on information sharing in countering the use of the Internet for terrorist and other criminal purposes. Both sides will consider holding a second seminar in 2017.
4. Hotline Mechanism. Both sides welcomed the launch of the U.S.-China Cybercrime and Related Issues Hotline Mechanism, and decided to continue to use the hotline in accordance with the Work Plan. Both sides will conduct routine review of the use of the hotline.
5. Dialogue Continuity. Both sides recommend that the dialogue continue to be held each year, and that the fourth dialogue occur in 2017.