Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 18 October 2016
Johnstown Woman Facing Federal Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The indictment named Patricia Ann Hawes, 52, of Johnstown, Pa.
According to the indictment presented to the court, on May 11, 2016, Hawes distributed less than 500 grams of cocaine. Likewise, between April 22, 2016 and June 7, 2016, Hawes maintained her residence for the purpose of distributing and using heroin and cocaine.
The law provides for a maximum sentence of 40 years in prison and a fine of $1,500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Hawes.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indictment: Salina Man Produced Child PornographyRead the Press Release
WICHITA, KAN. – A federal grand jury returned an indictment here Tuesday charging a Salina man with producing and distributing child pornography, Acting U.S. Attorney Tom Beall said.
Michael N. Rodenbeek, 53, Salina, Kan., is charged with three counts of producing child pornography, one count of distributing child pornography, one count of possessing child pornography, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in June, July, August and September, 2016, in Saline and Sedgwick counties.
A complaint filed in the case alleges a Wichita police detective accessed a file sharing network to download child pornography from Rodenbeek’s computer. Investigators learned that on June 18, 2016, Rodenbeek used an iPhone to record a 9-year-old girl and on July 19, 2016, he used an iPhone to record a 10-year-old girl.
If convicted, he faces a penalty of not less than 15 years and not more than 30 years on each count of production, not less than five years and not more than 20 years on the distribution count, up to 20 years on the possession count, and up to 10 years on the firearm charge. The Wichita Police Department, Homeland Security Investigations and the Internet Crimes Against Children Task Force investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Brett Nolan Cico, 31, St. Francis, Kan., is charged with two counts of producing child pornography and two counts of committing a felony involving a minor while registered as a sex offender.
The indictment alleges that on Jan. 15, 2016, he took pictures of a 14-year-old girl and a 14-year-old boy. The crimes are alleged to have occurred in Sherman County, Kan.
If convicted, he faces a penalty of not less than 15 years and not more than 30 years on each count of production, and 10 years to be served consecutively on each of the other counts. Immigration and Customs Enforcement and Homeland Security Investigations investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Kevin Michael Hamill, 28, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Sept. 3, 2016, in Kingman County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $2 million. The Kingman Police Department investigated. Special Assistant U.S. Attorney Kimberley Rodebaugh is prosecuting.
James Ray Lawson, 54, Louisville, Ky., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Sept. 15, 2016, in Ellis County, Kan.,
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on the methamphetamine count, and up to five years and a fine up to $250,000 on the marijuana count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberley Rodebaugh is prosecuting.
Arturo Rodriguez-Martinez, 53, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 23, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations Investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jose Manuel Arriaga-Guillen, 24, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 27, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations Investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Gabriel Lemus-Miranda, 36, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 18, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations Investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Heroin Dealer Sold Fentanyl Causing One Death and Multiple OverdosesRead the Press Release
ALEXANDRIA, Va. – Darnell Lee Washington, aka “Dale,” 26, of Leesburg, pleaded guilty today to charges related to his distribution of heroin and fentanyl.
According to the statement of facts filed with the plea agreement, between late 2015 and February 2016, Washington regularly distributed heroin he obtained from his source of supply to customers in Leesburg, and elsewhere. Washington distributed heroin from a house on South Street in Leesburg, and stored digital scales, packaging material and other paraphernalia in the house. On Feb. 1, 2016, Washington distributed a controlled substance, which turned out to be fentanyl, causing multiple overdoses, including a fatal overdose of which the victim died from acute fentanyl poisoning.
Washington was indicted by a federal grand jury on August 17, and has agreed to accept a binding sentence of 15 years in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Gregory C. Brown, Chief of Leesburg Police Department, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Mary K. Daly and Special Assistant U.S. Attorney Lena Munasifi are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-110.
Grove City Man Pleads Guilty to Distributing Heroin and Money LaunderingRead the Press Release
COLUMBUS, Ohio – Roman Hernandez, 39, of Grove City, pleaded guilty in U.S. District Court to possession with the intent to distribute heroin and to one count of money laundering. The plea agreement calls for a total custodial sentence of between 51 and 63 months’ imprisonment, to be followed by 3 years of supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott and other members of Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force announced the guilty plea entered before Senior U.S. District Judge James L. Graham. The HIDTA Task Force is operated as part of Ohio Attorney General Mike DeWine’s Ohio Organized Crime Investigations Commission.
According to court documents, this joint investigation revealed through surveillance, financial records, cooperating witnesses, and other investigative techniques, that between March 2013 and April 2013 Hernandez was involved in the sale of heroin.
On April 9, 2013 a search warrant was executed at 3260 Norwood Street, Columbus, Ohio. This was a home being rented by Hernandez and his girlfriend.
Before the search warrant was executed, Hernandez was observed driving away from the residence in his Cadillac Escalade. The vehicle was stopped by law enforcement and Hernandez admitted that between January 2013 and April 9, 2013 he had possessed with intent to distribute and distributed heroin. He acknowledged that proceeds from the sale of heroin would be located at his residence at 3260 Norwood Street, Columbus, Ohio.
During the course of the search warrant investigators seized in excess of $55,000 in U.S. currency. Investigators also found financial records and closing documents where Hernandez and his girlfriend had purchased a piece of real property located at 4870 Manitoba Road, Columbus, Ohio on April 2, 2013 for $70,000. The property had been purchased with cash.
Hernandez’s portion of the purchase price was $26,000. The funds had been withdrawn from his checking account in the form of a cashier’s check. The investigation documented that the funds used by Hernandez to purchase the property at 4870 Manitoba Road were proceeds he derived from sale of narcotics.
In addition, Hernandez agreed to forfeit a Cobra, Model M-11, 9mm handgun and a Sig Sauer, Model P250, 9mm handgun.
“The harm inflicted by heroin is matched only by the profit potential for those who sell it. Today’s guilty plea is the culmination of a lengthy effort in which IRS-CI worked with its law enforcement partners to disrupt the flow of money -- the lifeblood that allows drug dealers to proliferate,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This is an important victory for the citizens of Central Ohio. This individual not only fueled the drug problem in Central Ohio, but he supported addiction in several parts of the country.”
U.S. Attorney Glassman commended the investigation of this case by the Central Ohio HIDTA Task Force, and Assistant U.S. Attorney Timothy Prichard, who is prosecuting the case.
Fort Worth Man Sentenced to 172 Months in Federal Prison for Kidnapping and Enticing Two Teenage Girls to Engage in Sexual ActivityRead the Press Release
ABILENE, Texas — A Fort Worth, Texas, resident, Robert Blaine Harris, 50, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 172 months in federal prison, following his guilty plea in July 2016 to an indictment charging one count of enticement of a minor and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
Harris has been in custody since his arrest in January 2016
According to documents filed in the case, beginning in December 2015, Harris engaged in a relationship with a minor, Jane Doe 1, using Skout, an online dating application. Harris persuaded, induced, and enticed Jane Doe 1 and another 13-year-old female, Jane Doe 2, to engage in sexual activity.
On January 2, 2016, Harris acknowledged in a message that he knew both girls were “underage and I could get in really big trouble and that would ruin my life.” In the early morning hours of January 2, 2016, Harris traveled to Abilene and picked up the two 13-year-old females and transported them to his residence in Fort Worth to engage in sexual activity. The two juvenile females were recovered by law enforcement at Harris’ residence on January 9, 2016, after Harris called the Fort Worth police.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), San Angelo Police Department, Abilene Police Department and Fort Worth Police Department investigated the case. Assistant U.S. Attorney Juanita Fielden was in charge of the prosecution.
# # #
Former Stockton Woman Indicted with Others in Two Fraud ConspiraciesRead the Press Release
SACRAMENTO, Calif. — On Thursday, October 13, 2016, a federal grand jury returned two indictments charging Kioni Dogan, 36, of Las Vegas and formerly of Stockton, with a total of 21 fraud counts related to claims for unemployment benefits and tax refunds, Acting U.S. Attorney Phillip A. Talbert announced.
The unemployment fraud indictment, charges Dogan, along with Gloria Harris, 56, of Stockton, and Lavonda Bailey, 34, of Las Vegas, with one count of conspiracy to commit mail fraud. It also charges Dogan with 15 counts of mail fraud. According to court documents, Dogan operated a “fictitious employer” scheme. Dogan created an employer with the California Employment Development Department (EDD) that was fictitious and did not conduct any business. Dogan then caused the submission of information to the EDD falsely indicating that various persons were employed by the fictitious entity. Dogan subsequently filed unemployment claims in the names of the fake employees. Harris and Bailey are among the individuals who collected the fraudulent benefits, both in their own names and in the names of other fake employees. The total loss to the California EDD is alleged to be over $2 million.
This is the third indictment returned as a result of the unemployment fraud investigation. On September 15, 2016, Herbert Alexander, 69, of Stockton was charged with unemployment fraud. On December 30, 2015, Deborah Hollimon of Stockton and West Memphis, Arkansas, was charged with unemployment fraud and identity theft.
The tax fraud indictment charges Dogan and Antonia L. Brasley, 47, of Stockton, with one count of conspiracy to submit false claims for tax refunds. It also charges Dogan with four individual counts of submitting false claims. According to court documents, from May 2011 through April 2012, Dogan and Brasley participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information from family, friends, and others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the returns regarding income, withholding from income, and gambling losses, with fraudulent supporting tax forms known as W2-Gs. Dogan is also charged with making false claims in connection with four returns filed in January 2012, each seeking thousands of dollars in tax refunds.
The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Jared C. Dolan is prosecuting the case. The tax fraud case was the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.
If convicted of the unemployment benefits fraud, Dogan, Harris, and Bailey face a maximum statutory penalty of 20 years in prison and a $250,000 fine as to each count. If convicted in the tax fraud case of conspiracy to submit false claims, Dogan and Bralsey each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted on the tax-related false claims counts, Dogan faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Felon Pleads Guilty to Possession of a Firearm in a School ZoneRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH JACKSON, age 24, of New Orleans, pled guilty as charged to an Indictment charging one count of being a felon in possession of a firearm and ammunition and one count of possession of a firearm in a school zone.
According to court records, on March 9, 2016, JACKSON fired several shots from a firearm towards a red vehicle at the intersection of North Villere Street and Pauger Streets, where the Homer A. Plessy Community School is located. When he was arrested, JACKSON gave a statement admitting that he had shot at two individuals inside of the red car on that day.
JACKSON faces up to ten years imprisonment for the felon-in-possession charge and up to five years imprisonment for the school zone charge. U.S. District Judge Jay C. Zainey scheduled sentencing for January 24, 2017.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Dustin and Rowland designated as District Election Officers for November electionRead the Press Release
U.S. Attorney Carole S. Rendon announced that Assistant United States Attorneys Ava Dustin and Ann Rowland will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.
Rowland has been appointed to serve as the District Election Officer in the eastern division for the Northern District of Ohio while Dustin will serve as the election officer in the western division. In that capacity, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” Rendon said. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Dustin and Rowland will be on duty in this District while the polls are open.
Rowland can be reached at 216-622-3847 while Dustin can be reached at 419-241-0767.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI field office can be reached by the public at 216-522-1400.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Rendon said: “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
District Man Sentenced to 4 1/2-Year Prison Term for Recent Shoot-Out in Northeast WashingtonRead the Press Release
WASHINGTON – Leroy Robinson, 32, of Washington, D.C., was sentenced today to 54 months in prison after earlier pleading guilty to charges stemming from a recent shoot-out that took place in broad daylight in Northeast Washington, announced U.S. Attorney Channing D. Phillips.
Robinson pled guilty in July 2016, in the Superior Court of the District of Columbia, to charges of assault with a dangerous weapon and unlawful possession of a firearm. He was sentenced by the Honorable Neil E. Kravitz. Upon completion of his prison term, Robinson will be placed on three years of supervised release.
In entering his guilty plea, Robinson admitted to being an initial aggressor in a shoot-out that occurred in broad daylight on the morning of June 1, 2016. According to the evidence, at approximately 9:45 a.m., Robinson and an unknown suspect exchanged gunfire with a group of individuals in the 1300 block of Brentwood Road NE. Surveillance video shows Robinson and the unknown suspect firing gunshots in the direction of two parked cars. The video further shows the muzzle flash of Robinson’s firearm moments after an innocent civilian entered into one of these cars. As a result of the gunshots, the side and rear windows of the civilian’s car were destroyed. Numerous gunshots also struck the front driver’s side and rear of the civilian’s vehicle, which was riddled with bullets. Amazingly, none of these bullets struck the civilian.
Robinson was struck by a bullet and crawled away from the scene. When law enforcement arrived, they saw him in a grassy area across from the area of the shooting, suffering from a gunshot wound. Law enforcement also found an empty gun holster on his waistband.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorneys Tamika Griffin Moses and Richard Barker, who investigated and prosecuted the case.
Dickenson County Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
ABINGDON, VIRGINIA – A Virginia man, who was required to register as a convicted sex offender upon moving to the Commonwealth from Arizona but failed to do so, pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Ray Merrill Stapleton, 65, of Dickenson County, Virginia, pled guilty yesterday in District Court to one count of failing to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) after having traveled in interstate commerce. Stapleton will be sentenced on January 9, 2017.
“SORNA is an important tool for law enforcement to ensure the safety of our communities,” United States Attorney Fishwick said today. “Mr. Stapleton knew his requirements under the law and failed to comply, for that he has been held justly accountable.”
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Randy Ramseyer, Stapleton was convicted in Pima County, Arizona on June 26, 1988 that consequently resulted in his requirement to register as a sex offender. Stapleton acknowledged his obligation to comply with Arizona, and other states’ registration requirements to register, should he choose to move. Officials in Arizona last recorded contact with Stapleton in September 2010 and recently contacted the Virginia State Police and the United States Marshals Service to follow-up on an investigative lead about the whereabouts of Stapleton. The defendant was ultimately located living in Dickenson County, Virginia, where he was arrested and charged with failing to register.
The investigation of the case was conducted by the Virginia State Police and the United States Marshals Service. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Deer Lodge Prison Guard Sentenced for Accepting BribesRead the Press Release
HELENA – Martin Reap, 25, of Deer Lodge, Montana, was sentenced to 20 months’ imprisonment, five years’ supervised release, and a $100 special assessment by United States District Court Judge Sam Haddon on Tuesday, October, 2016 for accepting bribes while working as a correctional officer at the Montana State Prison. The charge stemmed from a scheme whereby Reap smuggled contraband—including controlled substances and tobacco—to inmates at the prison in exchange for bribes.
The charge against Reap was the result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections-Division of Investigations, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations. Criminal Chief Assistant United States Attorney Joseph Thaggard and Assistant United States Attorney Jeffrey Starnes prosecuted the case.
“This is an important case aimed at rooting out public corruption and ensuring that correctional officers carry out their obligation to ensure the safety of the community, rather than seeking personal enrichment from those they are entrusted to guard,” said United States attorney for the District of Montana Michael Cotter. “This investigation represents the best of interagency cooperation. Multiple federal and state entities worked together seamlessly to find and root out corruption at the Montana State Prison.”
This case was prosecuted by Assistant United States Attorney Joe Thaggard and investigated by the Federal Bureau of Investigation, the United States Postal Inspector, the Montana Department of Corrections, Montana State Prison Warden Leroy Kirkegard and his staff, and the Montana Division of Criminal Investigations.
Court Shuts Down South Florida Tax Return PreparerRead the Press Release
Today, a federal court in West Palm Beach, Florida permanently barred Renel Herard, individually and doing business as Herard Tax Services and Herard Security & Training Inc., from preparing federal tax returns for others. In addition to enjoining Herard from preparing, filing or assisting in the preparation or filing of federal tax returns, amended returns, or any other related documents, the court ordered Herard to publish, at his own expense, notice of the injunction for 14 consecutive days in The Palm Beach Post and Radio Vision Nouvelle (WPOM 1600 AM) and to prominently post a copy of the final injunction in the front window of the defendants’ offices until April 30, 2017. The court also ordered Herard to turn over to the United States a list of all customers for whom Herard or his businesses prepared returns after Jan. 1, 2015, and to provide a copy of the injunction order to anyone with whom Herard worked to prepare or file tax returns for others.
On Feb. 26, the government filed suit against Herard and alleged that returns prepared by Herard and his businesses have unlawfully understated customers’ income tax liabilities by creating or inflating deductions or fabricating business losses for non-existent businesses and have overstated refunds by falsely claiming tax credits, including education credits, fuel tax credits and medical and child care expenses for ineligible taxpayers who did not incur qualified expenses. The government alleged that, beginning with returns he prepared for the 2014 tax year, Herard prepared returns that falsely claimed the Premium Tax Credit, a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace aka the Exchange, by claiming it for customers who did not purchase health insurance through the Exchange.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Charged with Possession of AmmunitionRead the Press Release
Marquise Bell, 25, of Philadelphia, Pennsylvania was charged today by Indictment[1] with possession of ammunition by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years imprisonment.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Construction Company Partner Pleads Guilty to Evading Taxes on More Than $1 MillionRead the Press Release
PANAMA CITY, FLORIDA –Patrick Shawn Kelley, 54, of Panama City Beach, has pled guilty to two counts of tax evasion. The plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between 2009 and 2011, Kelley was a partner in American Construction Logistics and Services (ACLS), a construction company that performed work for the U.S. Government in Afghanistan. During his guilty plea on October 14, Kelley admitted that he failed to file tax returns for the 2009, 2010, and 2011 tax years on income consisting of $1,167,025.32 in wages, ACLS funds used for personal expenditures, and cash wired to Kelley’s wife from ACLS employees. In total, Kelley never paid the IRS $210,397 in taxes due and owing for the unreported income.
During the years 2010 and 2011, in an effort to conceal his income from the IRS, and without the knowledge or consent of his business partners, Kelley made significant personal expenditures directly from the ACLS bank account. The expenditures included $320,550 for the purchase of his personal residence in Panama City Beach; $156,000 for an ownership interest in a motorcycle shop; $44,000 for the purchase of a boat; $10,393 for the purchase of a Jeep Wrangler; and a $9,500 loan to a friend. Kelley also diverted funds totaling $353,520.37 from the ACLS corporate bank account to his personal bank accounts, and directed Afghan employees to wire cash to his wife.
For each count of tax evasion, Kelley faces a maximum of five years in prison, a total fine of $250,000, and an order of restitution. Sentencing is scheduled for January 13, 2017, at 2:00 p.m., at the United States Courthouse in Panama City.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction. Assistant United States Attorney Stephen M. Kunz is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Compton Man Sentenced to More Than Ten Years in Prison for Illegal Firearm and Methamphetamine SalesRead the Press Release
LOS ANGELES – A Compton man has been sentenced to more than ten years in federal prison for illegal methamphetamine and firearms sales.
Luis Rodriguez Jr., 29, was sentenced on Monday to 121 months in federal prison by United States District Judge R. Gary Klausner. Rodriguez pled guilty earlier this year to distribution of methamphetamine and illegal firearm sales without a license.
Rodriguez pled guilty to selling methamphetamine and three firearms to a Bureau of Alcohol, Tobacco, Firearms and Explosives confidential informant on multiple occasions. The firearms included a Smith & Wesson, Model 66 .357 caliber Magnum revolver, a Ceska Zbrojovka (CZ) Model CZ 52 7.62mm caliber Tokarev rifle, a Ruger Model 22/45 MK III .22 caliber pistol, which had been reported stolen in Texas, and a Colt Model 1911 U.S. Army .45 caliber pistol.
Rodriguez obtained the firearms from his sister and co-defendant, Laura Salas, who was sentenced on April 25, 2016 to 120 months’ imprisonment for her participation in the crimes. The government stated in its sentencing position that, for one of the firearms transaction, a young boy who appeared to be Salas’s son handled the firearm.
“The actions of this defendant were intended to place dangerous drugs and guns on the streets,” said United States Attorney Eileen M. Decker. “Having illegal drugs and guns readily available contributes to violence in our community. This case is an example of my office’s commitment to curbing violent crime by eliminating its sources.”
Rodriguez was one of eight defendants charged last year with various counts of distributing methamphetamine, distributing methamphetamine in a premises with children, selling firearms without a license, being a felon in possession of firearms and ammunition, and possessing an unregistered firearm.
“This investigation served the most vulnerable victims of firearm and drug crimes,” said ATF Special Agent in Charge Eric D. Harden. “The challenge of reducing gun violence in our communities today and for future generations is much greater when the underground market is a family business.”
The investigation into Rodriguez was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant United States Attorneys Aron Ketchel of the Violent and Organized Crime Section and Eddie Jauregui of the General Crimes Section.
Colorado and Illinois Men Sentenced to Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
WASHINGTON – Two members and administrators of a highly sophisticated, global enterprise dedicated to the sexual exploitation of children were sentenced to prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Brian W. Davis, 51, of Farmer City, Illinois, was sentenced to 360 months in prison for engaging in a child exploitation enterprise and two counts of production of child pornography, along with a lifetime term of supervised release. David Delalio, 38, of Longmont, Colorado, was sentenced to 210 months in prison for engaging in a child exploitation enterprise and a 15-year term of supervised release. U.S. District Judge Colin S. Bruce of the Central District of Illinois imposed the sentences yesterday and also ordered Davis to pay $164,000 in restitution and a $55,000 fine. Davis pleaded guilty on July 15, 2015 and has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 8, 2014. Delalio pleaded guilty on July 20, 2015.
“Child predators seek out online forums on anonymous networks, like the one that Davis and Delalio operated, so that they can commit vile crimes without getting caught,” said Assistant Attorney General Caldwell. “But the sentencing of the leaders of this forum—along with the recent sentencings of three of their co-defendants—should give other online predators pause. While identifying and apprehending these criminals is difficult, it is not impossible, and we will use every legal authority we have to root out these predators and protect children from harm.”
“We must protect our children, if we wish to have a decent society," said U.S. Attorney Lewis. “So we must investigate and prosecute those who use our children for sexual enjoyment, and those who facilitate this abuse.”
According to the government’s sentencing memoranda, Davis and Delalio acted as members and co-administrators of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. As of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership, including numerous child pornography producers who were actively abusing children, according to the government’s memorandum. In addition, the sentencing memo shows that site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor anonymity network and elaborate file encryption.
The sentencing memos also state that Davis was the co-administrator of an exclusive “Producers” section of the website, where he acted as a gatekeeper and actively recruited and advised other members on how to sexually abuse minors and produce child pornography for the website. Davis’s contributions to the website and his own produced materials focused predominantly on a sexual interest in infants and toddlers. Davis also sexually assaulted and produced child pornography involving numerous minors who were entrusted to his care while he was employed by a child care facility in Champaign County, Illinois.
Delalio and Davis were the fourth and fifth members, respectively, to be sentenced for their involvement in the Tor-network based enterprise. On July 15, 2016, Jason Gmoser was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively. On Sept. 2, 2016, Dakota Martin was sentenced to serve 20 years in prison to be followed by 25 years of supervised release for engaging in a child exploitation enterprise and production of child pornography. On March 14, 2016, Andrew Hoff was sentenced to serve 17.5 years in prison to be followed by 20 years of supervised release for engaging in a child exploitation enterprise.
The FBI’s Springfield Field Office and Violent Crimes Against Children Section’s Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Colorado and Illinois Men Sentenced to Prison for Engaging in Child Exploitation EnterpriseRead the Press Release
Three Others Previously Sentenced to Prison for Illicit Activity on Child Pornography Website Based on Tor Network
Two members and administrators of a highly sophisticated, global enterprise dedicated to the sexual exploitation of children were sentenced to prison, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division.
Brian W. Davis, 51, of Farmer City, Illinois, was sentenced to 360 months in prison for engaging in a child exploitation enterprise and two counts of production of child pornography, along with a lifetime term of supervised release. David Delalio, 38, of Longmont, Colorado, was sentenced to 210 months in prison for engaging in a child exploitation enterprise and a 15-year term of supervised release. U.S. District Judge Colin S. Bruce of the Central District of Illinois imposed the sentences yesterday and also ordered Davis to pay $164,000 in restitution and a $55,000 fine. Davis pleaded guilty on July 15, 2015 and has remained in the custody of the U.S. Marshals Service since his arrest on Oct. 8, 2014. Delalio pleaded guilty on July 20, 2015.
“Child predators seek out online forums on anonymous networks, like the one that Davis and Delalio operated, so that they can commit vile crimes without getting caught,” said Assistant Attorney General Caldwell. “But the sentencing of the leaders of this forum—along with the recent sentencings of three of their co-defendants—should give other online predators pause. While identifying and apprehending these criminals is difficult, it is not impossible, and we will use every legal authority we have to root out these predators and protect children from harm.”
“We must protect our children, if we wish to have a decent society," said U.S. Attorney Lewis. “So we must investigate and prosecute those who use our children for sexual enjoyment, and those who facilitate this abuse.”
According to the government’s sentencing memoranda, Davis and Delalio acted as members and co-administrators of a highly-sophisticated global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the Tor anonymity network, through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. As of July 2014, the website hosted nearly 30,000 members, who were required to share illicit child pornography images in order to gain and keep membership, including numerous child pornography producers who were actively abusing children, according to the government’s memorandum. In addition, the sentencing memo shows that site members employed advanced technological means in order to undermine law enforcement’s attempts to identify them, including the use of a hidden service on the Tor anonymity network and elaborate file encryption.
The sentencing memos also state that Davis was the co-administrator of an exclusive “Producers” section of the website, where he acted as a gatekeeper and actively recruited and advised other members on how to sexually abuse minors and produce child pornography for the website. Davis’s contributions to the website and his own produced materials focused predominantly on a sexual interest in infants and toddlers. Davis also sexually assaulted and produced child pornography involving numerous minors who were entrusted to his care while he was employed by a child care facility in Champaign County, Illinois.
Delalio and Davis were the fourth and fifth members, respectively, to be sentenced for their involvement in the Tor-network based enterprise. On July 15, 2016, Jason Gmoser was sentenced to serve life in prison for engaging in a child exploitation enterprise. Gmoser was also sentenced to 30 years and 20 years to be served concurrent to the life sentence for conspiring to advertise and conspiring to distribute child pornography, respectively. On Sept. 2, 2016, Dakota Martin was sentenced to serve 20 years in prison to be followed by 25 years of supervised release for engaging in a child exploitation enterprise and production of child pornography. On March 14, 2016, Andrew Hoff was sentenced to serve 17.5 years in prison to be followed by 20 years of supervised release for engaging in a child exploitation enterprise.
The FBI’s Springfield Field Office and Violent Crimes Against Children Section’s Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Acting Assistant Deputy Chief Keith Becker and Trial Attorney Elly Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clearfield County Man Charged with Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Houtzdale, Pa. was indicted today by a federal grand jury in Johnstown on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
The indictment named Ellis D. Passmore, Jr., 44, of Houtzdale, Pa., as the sole defendant.
According to the indictment presented to the court, on Aug. 29, 2015, he received material depicting the sexual exploitation of a minor and on Oct. 5, 2015, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Pennsylvania State Police, Clearfield Barracks, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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.
Chesapeake Fire Lieutenant Pleads Guilty to Online Coercion and Enticement of MinorsRead the Press Release
NORFOLK, Va. – Thomas W. Almberg, 50, of Virginia Beach, pleaded guilty today to charges of coercing and enticing a minor to engage in illegal sexual activity.
According to the statement of facts filed with the plea agreement, Almberg, a lieutenant in the Chesapeake Fire Department, frequented several social media sites looking for teenage girls to chat with. In January, he met a 15-year-old boy pretending to be a 16-year-old girl on the interactive video game Clash of Clans, and the two began chatting and text messaging. Over the next two months, the two exchanged over 8,000 text messages and the conversations quickly grew to be sexually graphic. In April, Almberg met a 16-year-old girl on a different mobile chat application and their conversations quickly became sexual in nature, including the exchange of sexually explicit photographs. In May 2016, Almberg traveled to this victim’s workplace in North Carolina and propositioned her for sex. She declined, he left, and was taken into custody shortly thereafter.
Almberg was charged by criminal information on October 12, and faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison when sentenced on January 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; Col. K.L. Wright, Chesapeake Chief of Police; and Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after the plea was accepted by U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney V. Kathleen Dougherty 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. 2:16cr136.
CEO, CFO and VP Convicted in Nationwide Worker's Compensation Fraud SchemeRead the Press Release
HOUSTON - Several officials with Team Work Ready (TWR) have been convicted of conspiracy, health care fraud, wire fraud and money laundering, announced U.S. Attorney Kenneth Magidson. TWR had clinics in five states including Federal Work Ready in Houston, Alamo Work Ready in San Antonio and Bayou Work Ready in New Orleans, Louisiana.
The federal jury deliberated for 14 hours following a 16-day trial before convicting CEO Jeffrey Eugene Rose Sr., 54, chief financial officer Pamela Annette Rose, 55, along with the clinic’s vice president of operations Frankie Lee Sanders, 55. The verdicts were returned late yesterday.
Today, the same jury heard evidence on forfeiture matters and returned a special verdict forfeiting $220,807, an annuity contract and real property.
During the criminal trial, the jury heard testimony from 38 witnesses including former patients of TWR clinics, former employees of TWR clinics, various experts and special agents from the U.S. Postal Service - Office of Inspector General (USPS-OIG) and IRS - Criminal Investigation (CI). According to testimony, TWR submitted approximately $9.6 million in false and fraudulent claims from four of its clinics for physical therapy services that were not provided. The claims were submitted under the Federal Employees Compensation Act (FECA) health care benefit program which is administered by the Department of Labor - Office of Worker’s Compensation Program (DOL-OWCP).
DOL-OWCP's chief fiscal officer explained to the jury at the start of the trial that FECA does not pay for professional services performed by unlicensed aides which is why DOL-OWCP requires the enrollment of all licensed professionals providing services to injured federal employees, including copies of professional licenses. He testified that the FECA program only considers chiropractors as physicians when they treat spinal subluxation. Otherwise, chiropractors are considered equivalent to physical therapists and may provide physical therapy under the direction of, and as prescribed by, a medical doctor. Specifically, in relation to this case, the DOL-OWCP would not have paid millions of dollars for the physical therapy services billed by TWR if they had known that the services were not provided as described in the claims submitted to DOL-OWCP.
The claims TWR submitted falsely and fraudulently described skilled one-on-one physical therapy services provided by a licensed chiropractor. Patients from four TWR clinics testified that they did not receive the one-on-one physical therapy services paid for by DOL-OWCP under FECA. Rather, they stated that they exercised independently on treadmills, bicycles and elliptical machines with the Nintendo Wii game and with other pieces of exercise equipment. The San Antonio clinic also had an electronic massage chair for patients. One patient from Houston testified that she felt that some of the exercises she was asked to do had nothing to do with her carpal tunnel wrist injury, specifically the treadmill. Another patient from the San Antonio clinic testified that unlicensed staff told him to do exercises on both of his arms, although he only injured his left elbow and to use the electronic massage chair and the treadmill for his injury.
The jury also heard testimony from 11 former TWR employees, including unlicensed therapy technicians from the Houston and New Orleans clinics, a case manager and two licensed chiropractors. The employees reported 30 – 60 patients a day at the Houston clinic and said there were times when they did not know what the patients were doing in the main treatment area because they were busy in the back doing massages, electrical stimulation treatments and ultrasound treatments. The employees testified that they did not perform all the one-on-one services documented on patient treatment notes and admitted they frequently completed the patient treatment notes at the end of the day by following a “cheat sheet” and asking each other and the patients what activities had been done. Patients at the New Orleans clinic were instructed to go back to the therapy room to begin doing exercises by themselves. Various individuals described the treatment as “like a gym.”
The jury also heard from two federal agents who went undercover as “injured federal employees” at the Houston and New Orleans clinics. The jury watched portions of video recordings covertly made by the undercover agents that showed patients independently exercising and receiving care from unlicensed and obviously untrained staff.
One of the licensed chiropractors testified that she began covertly recording meetings with the defendants in December 2012. The jury heard several of the recordings, including one in which the defendants tried to coerce the chiropractor to order medically unnecessary treatment so TWR could make a profit.
TWR's former chief operating officer (COO) testified about a phone call he received from CFO Rose on July 11, 2013 - the day federal agents executed search warrants at TWR clinics in Houston and New Orleans. The COO said CFO Rose instructed him to meet her and CEO Rose at a local Chase bank where they moved money out of the TWR accounts to hide it from the federal government. An IRS-CI special agent traced the $700,000 transferred out of TWR bank accounts, into a transportation company account owned by Mr. and Mrs. Rose and then out of that account via a cashier’s check in the name of two “shell” businesses not associated with TWR but also owned by Mr. and Mrs. Rose.
Sanders and Jeffrey Rose have been in custody where they will remain pending sentencing, set for January 2017. Pamela Rose was permitted to remain on bond.
The possible punishment for a conviction of conspiracy to commit health care fraud, health care fraud and engaging in a monetary transaction in criminally derived property is up to 10 years in federal prison and a $250,000 fine. They also face a maximum of 20 years in prison for the wire fraud and money laundering convictions.
This case was the result of a joint investigation with the USPS - OIG, DOL - OIG, IRS - CI, Department of Veterans Affairs - OIG, and Department of Homeland Security - OIG. Assistant United States Attorneys (AUSA) Julie Redlinger and Daniel Rodriguez prosecuted the case. AUSA Kristine Rollinson handled the forfeiture matters.
Boise Man Sentenced to Eight Years in Federal Prison for Drug Charge and Illegal Gun PossessionRead the Press Release
BOISE – Jeffery Anthony Arguello, 47, of Boise, Idaho, was sentenced today to 105 months for possession of a controlled substance with intent to distribute and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also sentenced Arguello to five years supervised release. Arguello pleaded guilty to the charges on August 2, 2016.
According to the plea agreement, Arguello admitted that on December 17, 2015, he knowingly possessed 61 grams of methamphetamine with the intent to distribute it to another person. Law enforcement located a 16 gauge Winchester shotgun, Model 12, in in the closet of Arguello’s bedroom. Under the mattress where Arguello was laying, law enforcement found a loaded JPC .40 caliber pistol, with one round in the chamber. Arguello admitted he knowingly possessed the JPC pistol. In the bedroom, investigators found another loaded magazine for the same firearm and a digital scale. Arguello was prohibited from possessing a firearm due to a previous felony conviction for providing false information in acquisition of a firearm.
The case was investigated by the Boise Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Meridian Police Department.
Belle Glade Man Sentenced to Prison for Federal Drug and Firearm OffensesRead the Press Release
A Belle Glade man was sentenced yesterday to 20 years in federal prison for drug and firearm offenses.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Brandt Schenken, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
David G. Trevino, 38, of Belle Glade, was sentenced by U.S. District Senior Judge Daniel T.K. Hurley to 240 months in federal prison, to be followed by ten years of supervised release. Trevino was prosecuted under the federal Armed Career Criminal Act (ACCA), which provides for an enhanced sentence for persons with at least three prior felony convictions for violent felonies or serious drug trafficking crimes.
In April 2016, a federal trial jury convicted Trevino of possessing a firearm during a drug trafficking offense, possession of cocaine with intent to distribute, obstruction of justice, and being a felon in possession of a firearm. According to the court record, including evidence presented at trial, in June 2013, PBSO deputies were on patrol in Pahokee, Palm Beach County, Florida and observed a large quantity of marijuana packaged for sale and partially concealed on the floor of Trevino's 700 series BMW, which was parked outside a local nightclub. When deputies attempted to make contact with Trevino, he fled on foot and discarded a loaded revolver on the ground. A deputy deployed his taser when Trevino failed to comply with orders to stop. During the course of the investigation, law enforcement recovered the loaded firearm, 49.3 grams of marijuana, and $3,896.
According to the court record, during a separate incident in November 2013, PBSO deputies were on patrol in Belle Glade, when they stopped a suspicious vehicle in the rear of a local business, in an area plagued by drug trafficking. As deputies approached the vehicle, Trevino, the sole occupant, threw two paper bags out of the driver’s side window that contained cocaine and marijuana packaged for sale. Trevino then drove off, fleeing the area.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of the ATF and PBSO. The case was prosecuted by Assistant U.S. Attorney John McMillan and Special Assistant U.S. Attorney Aaron Papero from the Palm Beach County State Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bedford Man Indicted on Prescription Drug ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa. was indicted today by a federal grand jury in Johnstown on charges of conspiracy to distribute possess with intent to distribute and distribution of quantities of Schedule IV controlled substances, United States Attorney David J. Hickton announced today.
The indictment named Damaris Rispoli, age 55, Bedford, Pa., as the sole defendant.
According to the indictment presented to the court, from in and around Aug. 2014, to on or about May 20, 2015, Rispoli conspired with another to distribute and possess with intent to distribute quantities of Tramadol, Zolpidem, Clonazepam, Lorazepam, and Carisoprodol, and on or about May 20, 2015, Rispoli possessed with intent to distribute Carisoprodol, and distributed quantities of Tramadol, Zolpidem, Clonazepam, and Lorazepam.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Area’s Second Annual “Day of National Concern” Addresses Young People and ViolenceRead the Press Release
CEDAR RAPIDS, IOWA – Local middle and high school students are joining thousands of others from around the country this week in pledging to do their part to end gun violence. The United States Attorney’s Office for the Northern District of Iowa, the Cedar Rapids and Marion Police Departments, and the Linn County Sheriff’s Office are partnering with about 10 local middle and high schools to promote discussion of the impact of violence on youth in observance of the 20th annual Day of National Concern.
The Day of National Concern was established in 1996 through a Presidential Proclamation and Unanimous Senate Resolution. The cornerstone of the initiative is the signing of a pledge in which students promise to never use a gun or violence to settle a personal dispute and to use their influence to keep their friends from doing the same. Nationwide, the pledge is often combined with school assemblies, homeroom activities, guest speakers, rallies, essay and poetry contests, displays of art work publicizing the toll of gun violence, and the beginning of many conversations about gun violence between students and adults.
Locally, many schools are inviting guest speakers to talk with students, having students submit written reflections about gun violence in the form of a poem, song, or short story, or hosting a lunch with the United States Attorney. Several Assistant United States Attorneys and other local law enforcement officials will attend and speak at many of the events.
Kevin W. Techau, U.S. Attorney for the Northern District of Iowa, stated, “We are proud to partner with the Cedar Rapids and Marion Police Departments, Linn County Sheriff’s Office, and the Cedar Rapids, Marion, and College Community schools in the second Iowa observation of the Day of National Concern. The NO Gun pledge and the discussion it generates in our area schools will have a positive impact in our community. The Cedar Rapids and Marion area students are to be commended for taking the positive step of saying no to guns in schools.”
Follow us on Twitter @USAO_NDIA.
Altoona Woman Charged with Credit Card Fraud and Identity TheftRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa. was indicted today by a federal grand jury in Johnstown on charges of access device fraud and identify theft, United States Attorney David J. Hickton announced today.
The indictment named Paula Moore, 63, of Altoona, Pa., as the sole defendant.
According to the indictment presented to the court, from on or about Sept. 7, 2012, to on or about July 16, 2014, Moore knowingly, with intent to defraud, used unauthorized devices, namely credit cards, to obtain various household and electronic items, aggregating more than $1,000, and on Sept. 7, 2012, Moore knowingly used the identification of another person to access credit card information.
The law provides for a maximum total sentence of 122 years in prison, a fine of $3,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Abingdon Man Sentenced to 14 Years in Federal Prison for Cocaine Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced William Frederick Cornish, age 52, of Abingdon, Maryland, today to 14 years in federal prison, followed by five years of supervised release for conspiracy to possess with intent to distribute cocaine.
The sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; Anne Arundel County Police Chief Tim Altomare; Chief Michael A. Pristoop of the Annapolis Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Richard McLaughlin of the Laurel Police Department; Harford County Sheriff Jeffrey R. Gahler; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to his plea agreement and court documents, in August 2015, DEA received information about a group that was trafficking large amounts of cocaine into Maryland and using a warehouse on Golden Ring Road in Baltimore. Investigation showed that the business using that location, KMKJ Trucking, LLC, had been evicted by July 31, 2015. The investigation subsequently identified a warehouse on Hammonds Ferry Road in Linthicum Heights, Maryland, as the new location being used by the group.
According to the plea agreement, on April 6, 2016, a tractor trailer with the KMKJ logo arrived at the Hammonds Ferry Road warehouse and backed up to the rear bay door of the unit. Investigators observed items being unloaded from the tractor trailer into the warehouse. A short time later, law enforcement observed a van traveling around the parking lot and warehouse building, conducting counter-surveillance to determine if law enforcement was in the area.
On the evening of April 8, 2016, investigators saw Cornish’s co-conspirators arrive at the Linthicum Heights warehouse. One of the co-conspirators then left in a black Honda, followed by a silver F-150 pickup truck. After a conversation on a nearby street between the drivers of the Honda and the pickup truck, they returned to the warehouse. The co-conspirator got out of his car and went into the warehouse and the F-150 entered the warehouse through the bay door, which was then closed. A few minutes later, the bay door re-opened and the F-150 drove out of the warehouse. The truck, driven Cornish, was stopped by law enforcement shortly after leaving the warehouse area. A narcotics detection dog was brought to the scene. The dog scanned the truck resulting in a positive response for the presence of illegal drugs. Law enforcement recovered 31 kilograms of cocaine from a box in the back seat of the truck. Law enforcement also stopped Cornish’s co-conspirators as they left the warehouse.
Search warrants were obtained and executed at the warehouse and at the residences of Cornish and his co-conspirators. Law enforcement recovered three large duffel bags in the basement of one of the homes containing approximately $2.4 million in cash, vacuum sealed in plastic bags marked with the amount of cash on the outside of each plastic bag. Investigators also recovered a drug/money ledger in the home documenting just over $2.4 million in receipts from the sale of illegal drugs. From Cornish’s home, law enforcement recovered a money counter, colored rubber bands, latex gloves and a digital scale, typically used in the narcotics trade to count and package money and to weigh drugs prior to distribution. Investigators also recovered a radio frequency detector that is commonly used by drug traffickers to “sweep” cars, people, and other items for hidden transmitters and electronic devices that are often used by law enforcement while investigating the distribution of illegal drugs.
The 31 kilograms of cocaine recovered from Cornish’s truck have a wholesale value in Baltimore of approximately $1 million.
United States Attorney Rod J. Rosenstein commended DEA, the Maryland Transportation Authority Police, Baltimore Police Department, Baltimore County Police Department, Anne Arundel County Police Department, Annapolis Police Department, Maryland State Police, Laurel Police Department, Harford County Task Force, and IRS Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.
Monday 17 October 2016
Woman Formerly Residing in Maryland Pleads Guilty to Conspiracy to Commit Money Laundering in Connection with International Lottery Fraud SchemeRead the Press Release
Samaiyah Sharron Armistead, who currently resides in Las Vegas, Nevada, pleaded guilty today in the U.S. District Court for the District of Maryland to one count of conspiracy to commit money laundering, the Department of Justice announced. The money laundering was part of an international lottery fraud scheme involving co-conspirators in Florida and Jamaica.
As part of her guilty plea, Armistead agreed that had the case gone to trial, the United States would have proved beyond a reasonable doubt that in February 2014, she received $7,500 in cash at the direction of a co-conspirator and then deposited most of that money into two bank accounts controlled by the co-conspirator. In addition, Armistead received $32,500 in cash on April 22, 2014, at a pickup point in Berlin, Maryland, where she was scheduled to meet a victim of a lottery scheme. Instead, Armistead was arrested by police at the pickup point after being handed the money by an undercover officer.
“The Justice Department is committed to combatting international lottery fraud schemes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Conspiring to launder money is a serious crime because it hides other criminal activity and its success encourages fraudsters to continue their schemes. The Justice Department will continue to prosecute those who seek to conceal criminal activity through money laundering.”
An information charging Armistead with conspiracy to commit money laundering was filed on Sept. 7. According to the charging document, Armistead agreed with other persons to knowingly conduct a financial transaction that involved the proceeds of unlawful activity, knowing that the property involved in the transaction represented the proceeds of some form of unlawful activity and knowing that the transaction was designed to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity. The government was not required to prove that Armistead knew the details of the fraud, but the government did need to establish that Armistead believed the money was connected to an illegal activity.
In this case, the money was proceeds of a fraudulent lottery fraud scheme, involving a co-conspirator in the United States and another in Jamaica. As part of the scheme, a victim was falsely told that she had won a multi-million dollar lottery prize. To collect the prize, the victim was fraudulently instructed to pay taxes and other up-front fees. The victim then sent money to various individuals, including the $40,000 that Armistead ultimately received.
“The US Postal Inspection Service is dedicated as part of it mission to ensure that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Antonio J. Gomez of the Miami Division. “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who fall prey to these schemes so that the U.S. mail isn't used in furtherance of them.”
“This investigation is another example of the importance of state, federal and local law enforcement coordination to identify and dismantle a complex and cross-border criminal enterprise,” said Maryland State Police Superintendent Colonel William Pallozzi. “The dedicated efforts of troopers, federal agents and prosecutors, deputies, and local police officers ended an illegal operation.”
Armistead faces a statutory maximum sentence of 20 years in prison and a fine of $500,000 when she is sentenced on Dec. 22 at 2 p.m.
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Rod J. Rosenstein for the District of Maryland commended the investigation by the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and the Maryland State Police. The case was prosecuted by Trial Attorney David A. Frank and Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Evan T. Shea.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Maryland, visit its website at. https://www.justice.gov/usao-md.
Wichita Man Sentenced in Gas Station RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to six years in federal for robbing two Wichita gas stations, Acting U.S. Attorney Tom Beall said.
Demon L. Anderson, 27, Wichita, Kan., pleaded guilty to two counts of robbing a commercial establishment. In his plea, he admitted that on Dec. 4, 2015, he and a co-defendant robbed a Valero gas station at 248 S. Hillside in Wichita. They entered the store while the clerk was outside and began taking cash and cigarettes. When the clerk returned, the co-defendant pointed a .40 caliber handgun at the clerk and the defendants fled the store.
Later that same night, the defendants tried to rob a Petro America gas station at 2838 W. Central in Wichita. The defendants did not know that a police officer had set up surveillance on the store and called for backup when he saw the defendants enter. The defendants were arrested at the scene.
In July, co-defendant Roy E. Walls-Guiden of Wichita, Kan., was sentenced Tuesday to 188 months in federal prison.
Beall commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Haris Qamar, 26, of Burke, Virginia, pleaded guilty today to attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Division, after the charges were unsealed.
“Mr. Qamar attempted to help ISIL encourage lone wolf attacks in our nation’s capital,” said U.S. Attorney Boente. “Ensuring the safety of our community is the top priority of my office, and we will continue to work with our law enforcement partners to locate, identify and prosecute those who choose to engage in terrorist activities.”
“This case demonstrates the reach terrorist organizations have through social media and the threat that they pose to our national security,” said Assistant Director in Charge Abbate. “When Qamar could not travel overseas he attempted to assist ISIL’s propaganda campaign for the purpose of inspiring loan wolf attacks in the Washington, D.C. area. Qamar operated over numerous social media accounts where he proselytized ISIL’s message and praised the terrorist group when they committed gruesome acts. Today’s plea is the result of the hard work of the FBI’s Joint Terrorism Task Force working around the clock to protect this country from those who seek to do us harm.”
According to the statement of facts filed with the plea agreement, on May 26, Qamar and the FBI confidential witness (CW) discussed ISIL’s need for photos of possible targets in and around Washington, D.C., for use in a video that ISIL purportedly was making to encourage lone-wolf attacks in the Washington, D.C., area. Qamar offered the CW ideas of where to take these photographs, including the Pentagon and numerous landmarks in Arlington and Washington, D.C., which could be targeted for terrorist attacks.
On June 3, a conversation was audio and video recorded when the CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar said “bye bye DC, stupid ass kufar, kill’em all.” Qamar and the CW met again on June 10 and drove to a location in Arlington to take additional photos for the ISIL video.
According to the statement of facts, during numerous conversations with the CW, Qamar expressed his interest and excitement in the extreme violence ISIL is known for. Qamar said he loved the bodies, blood and beheadings, and he recalled watching a video of a Kurdish individual being slaughtered, and liked the cracking sound made when the individual’s spinal cord was torn. On several occasions, Qamar said he could slaughter someone and described how he would do it. Qamar also stated he admired lone-wolf attackers because they love Islam so much that they are willing to die as martyrs for Islam. In the same conversation, Qamar and the CW discussed suicide bombings. The CW said he did not believe in suicide bombings, but Qamar responded “I believe in it 100 percent.”
According to the statement of facts, on Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar told the CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. On Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
According to the statement of facts, on Sept. 25, 2015, Qamar told the CW that he tried to join the ISIL in 2014, and he purchased a plane ticket from Newark, New Jersey, to Istanbul, Turkey. However, Qamar did not show up for the flight because his parents prevented him from going by taking away his passport. Qamar said his parents threatened to notify law enforcement and said he fought with his father and called his father a traitor to Islam. On Nov. 18, 2015, the CW asked Qamar whether he would join ISIL if Qamar’s father gave him back his passport, and, in response, Qamar said if that happened, “I’m done, I leave.”
Qamar faces a maximum penalty of 20 years in prison when sentenced on Jan. 6, 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.
Assistant U.S. Attorney Gordon D. Kromberg of the Eastern District of Virginia is prosecuting the case with assistance from the National Security Division’s Counterterrorism Section.
Virginia Immigration Attorney Admits Visa Fraud, Obstruction of JusticeRead the Press Release
NEWARK, N.J. – An immigration attorney for two information technology companies today admitted that she submitted phony documents and obstructed a federal investigation as part of a scheme that fraudulently obtained foreign worker visas, U.S. Attorney Paul J. Fishman announced.
Sunila Dutt, 39, of Ashburn, Virginia, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with conspiracy to commit visa fraud and obstruct justice.
According to the information:
SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. The U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS), approves and processes applications for residency within the United States, and the U.S. Department of Labor (USDOL) is responsible for the enforcement of labor regulations, including immigration-related employment standards and worker protections.
Dutt and other conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to USCIS, the conspirators falsely represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the H-1B visas. Contrary to these representations and in violation of the H-1B program, the conspirators paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems.
In some instances, false payroll records were generated to create the appearance that the foreign workers were paid full-time wages. The conspirators required workers to pay SCM Data and MMC Systems their gross wages in cash. In exchange, the companies would issue payroll checks to the foreign workers in a smaller amount. The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for the companies. Once USDOL launched an audit of SCM Data and MMC Systems, the conspirators provided fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working in order to conceal the fact that they were not paid during those time periods as required by federal law.
Dutt admitted that she submitted, or caused to be submitted, one or more filings to USCIS falsely representing the companies would employ foreign workers for in-house positions when no such positions existed. Dutt also admitted that on Oct. 16, 2014, MMC Systems, through her, and at the overall direction of the owner of both companies, submitted an I-129 Petition to USCIS to extend the H-1B visa status of a person referred to in the information as “Individual 1.”
In January 2015, MMC Systems stopped paying Individual 1 on a third-party contract. Dutt admitted that on Jan. 30, 2015, she told Individual 1 to falsely tell a person, whom she believed to be a USCIS employee, that Individual 1 had been living with a friend in Virginia or at a MMC Systems guesthouse. Dutt further admitted that on Feb. 2, 2015, she sent an e-mail to Individual 1 containing false information to be given to the USCIS employee as fictitious proof that Individual 1 resided at a MMC Systems guesthouse in January 2015.
Dutt faces a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 6, 2017.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense Counsel: Mitchell Epner, Esq.
Three Individuals Plead Guilty to Conspiracy Regarding Postal Money OrdersRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that ADRIAN VINCENT CROSS, age 52, and LONETTA NICHOLE CROSS, age 44, both of Poteau, Oklahoma, and LADAUGHNA JEAN DUXBURY, age 54, of Shady Point, Oklahoma, pled guilty to CONSPIRACY TO STEAL, POSSESS AND UTTER STOLEN UNITED STATES POSTAL MONEY ORDERS, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about December 24, 2015, and continuing thereafter until on or about January 13, 2016, DUXBURY, along with Co-Conspirators CROSS and CROSS in the Eastern District of Oklahoma and elsewhere, knowingly and willfully agreed and conspired against the United States to steal, possess and utter and pass United States Postal Service Money Order Forms.
Charges arose from an investigation by the Pocola Police Department, Shady Point Police Department, Leflore County Sheriff’s Office, and the United States Postal Service.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentencing reports. Sentencings will be scheduled following their completions.
Assistant United States Attorney Kristin Harrington represented the United States.
Texas Woman Pleads Guilty to Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Killeen, Texas woman has pleaded guilty in federal court to her role in a tax fraud scheme.
Kalena Latoya Winston, 39, of Killeen, pleaded guilty before U.S. District Judge Beth Phillips on Thursday, Oct. 13, 2016.
Winston operated a return preparation scheme for tax years 2011 and 2012. Winston solicited clients who lived in Colorado, Kansas and Tennessee, and prepared and submitted the returns electronically. Most of the false returns were filed with the IRS service center in Kansas City, Mo.
Winston’s main practice was to include false Schedule C businesses on her clients’ returns in order to increase the amount of the refunds by qualifying them for, or maximizing, the Earned Income Tax Credit. Winston also occasionally claimed false dependents on the tax returns. On two occasions, Winston used the personal identifying information the client provided her for the 2010 tax year in order to file a return without that client’s knowledge or permission for the following tax year.
Winston received debit cards containing the tax refunds from the false returns. Instead of listing her clients’ address on the returns, Winston listed the addresses of her co-conspirators so that she could maintain control over the refunds.
According to the plea agreement, the total intended tax loss for the charged conduct is $70,570. The IRS calculates the tax loss attributable to the relevant conduct to be approximately $200,000.
Under federal statutes, Winston is subject to a sentence of up to 10 years in federal prison without parole. 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. A sentencing hearing is scheduled on March 14, 2017.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Sitka Couple Sentenced for Drug ConspiracyRead the Press Release
Anchorage, Alaska - United States Attorney Karen L. Loeffler announced today that on October 17, 2016, Luke Roderick Lowe and Marguarite Jean Keicher, both residents of Sitka, Alaska were sentenced in federal court in Juneau for their role in a drug trafficking conspiracy to distribute methamphetamine in Ketchikan, Alaska.
Lowe, 38, and Keicher, 39 were each sentenced by Chief United States District Court Judge Timothy M. Burgess to 120 months of imprisonment and five years of supervised release for their roles in the drug conspiracy and forfeited $1,524.00 in U.S. Currency and firearms involved in the offense. Lowe has been in federal custody since May 1, 2015, and Keicher has been in federal custody since April 22, 2015.
According to information presented to the court by Assistant United States Attorney Jack S. Schmidt, the defendants had moved to Ketchikan from Sitka, Alaska and began distributing methamphetamine from various sources who had obtained the drugs from the Lower 48 using various drug trafficking methods. After the methamphetamine was delivered to Ketchikan, the defendant distributed the drugs to others for subsequent distribution. During the investigation, the defendants’ residence was searched and law enforcement found a total of 72.9 grams of actual methamphetamine and a number of loaded firearms, specifically two semi-auto handguns located in the defendant’s backpacks, a revolver, and assault style rifle located in the defendant’s bedroom in their residence.
Prior to imposing sentence, Judge Burgess indicated the seriousness of the offense and the need to provided treatment as reasons for the sentence.
Ms. Loeffler commended the Drug Enforcement Agency (DEA), Federal Bureau of Investigation and the Ketchikan Police Department-Drug Unit for the investigation leading to the successful prosecution of the above listed defendants.
Sharon Man Sentenced for Tobacco Tax Fraud and Money LaunderingRead the Press Release
BOSTON – A Sharon man was sentenced today in U.S. District Court in Boston in connection with illegally selling tobacco products and laundering the proceeds.
Muhammad Saleem Iqbal, 53, was sentenced by U.S. District Court Judge William G. Young to 42 months in prison, two years of supervised release and restitution of $28,027,946. The Court also ordered forfeiture of hundreds of thousands of dollars in tobacco products and over $150,000 belonging to Iqbal and the tax-evading wholesale tobacco business in which he engaged. In May, 2016, he pleaded guilty to conspiring to defraud Massachusetts of wholesale tobacco taxes and to filing a false personal income tax return.
Iqbal and a business partner operated a wholesale business under the name “Pick N Dip,” in Norwood that sold tobacco products, including cigars and smokeless tobacco (such as snuff and chewing tobacco), as well as other non-tobacco items, to convenience stores, gas stations and other retail businesses. Under state law, smokeless tobacco wholesalers must file an excise tax form monthly and pay a 210% excise tax on smokeless tobacco brought into Massachusetts. Cigar wholesalers must file an excise tax form quarterly and must pay a 40% excise tax on cigars brought into Massachusetts.
In order to evade tobacco taxes, beginning around 2010, Iqbal and his business partner repeatedly purchased tens of thousands of dollars at a time worth of smokeless tobacco and cigars in Pennsylvania where no taxes are imposed for these tobacco products. They then arranged to have these tobacco products covertly transported to Massachusetts for resale, without filing the records required by Massachusetts state law and federal law, and without paying excise taxes.
At the direction of Iqbal and his business partner, their employees repeatedly engaged in large cash transactions in order to conceal and disguise the nature, location, source, ownership and control of the proceeds of their illegal tobacco business and to avoid transaction reporting requirements under federal and state law. Their employees also transported more than $50,000 in cash at a time from Massachusetts to Pennsylvania where the money was used to purchase additional untaxed smokeless tobacco and cigars.
One of Iqbal’s co-defendants, Kaleem Ahmad, is scheduled to be sentenced tomorrow.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the U.S. Department of State, Boston Field Office, made the announcement today. Valuable assistance was also provided by the Massachusetts Department of Revenue. Assistant U.S. Attorneys Stephen P. Heymann of Ortiz’s Economic Crimes Unit and Doreen Rachel, Chief of Ortiz’s Asset Forfeiture Unit, handled the case.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Charles Nunez, 47, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Nunez will be sentenced to ten years in prison. He also will be ordered to forfeit $70,000 in drug proceeds and five firearms to the United States.
Nunez was arrested on March 12, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute, carrying a firearm in relation to a drug trafficking crime and being a felon in possession of a firearm on March 12, 2016, in Chaves County, N.M. According to the complaint, on March 12, 2016, the Chaves County Metro Narcotics Task Force executed search warrants on Nunez, his residence and his vehicle, and seized approximately five pounds of methamphetamine, firearms, a large amount of cash, drug paraphernalia, and a police radio scanner.
During today’s proceedings, Nunez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Nunez admitted that on March 12, 2016, agents seized approximately five pounds of methamphetamine and several firearms from his residence. Nunez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the Chaves County Metro Narcotics Task Force. Assistant U.S. Attorney Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Romania Extradites Alleged Leader of "ItalianMafiaBrussels" Drug Trafficking Organization to Colorado for ProsecutionRead the Press Release
DENVER – Filip Lucian Simion, 23, was extradited from Romania to Denver, Colorado so he can face drug trafficking and money laundering charges, Acting United States Attorney Bob Troyer, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Division Special Agent in Charge David Thompson and the Denver Division U.S. Postal Inspector in Charge Craig Goldberg announced. On May 5, 2016, Simion was indicted, along with three others, for importation of controlled substances and money laundering. The defendant made his initial appearance today before U.S. Magistrate Judge Kristen L. Mix. Co-defendant Leonardo Cristea, 25, arrived in the District of Colorado pursuant to an extradition order from Romania on July 29, 2016.
The investigation, which was initiated in July of 2013, resulted in numerous seizures of kilogram quantities of MDMA (3,4 methylenedioxymethamphetamine, a Schedule I controlled substance commonly known as Ecstasy) intended for importation into the United States via the mail from various countries in Europe. The organization operated online as the Darknet vendor “ItalianMafiaBrussels” or “IMB” and used encrypted email and TOR-based online black markets, such as the now defunct Silk Road and Silk Road 2.0, to sell the MDMA, primarily to United States and Canadian customers. The organization accepted payment for the drugs only in bitcoin. In 2014 and 2015, several defendants were charged and convicted in the District of Colorado for distribution of MDMA sourced by the organization.
On May 3, 2016, in a joint U.S./European enforcement action, law enforcement dismantled the ItalianMafiaBrussels Drug Trafficking Organization (DTO), arresting ten defendants during early morning raids in Bruges, Belgium and surrounding areas. The extradited defendants, Filip Lucian Simion and Leonardo Cristea, were arrested simultaneously in Bucharest, Romania. The remaining defendants, including two of the defendants named in the U.S. indictment, will be prosecuted in Belgium.
The nine count indictment charges defendants Leonardo Cristea, Ymran Djavatkhanov, Andy Nestor, and Filip Lucian Simion with conspiracies to distribute and import into the United States controlled substances, in violation of Title 21, United States Code, Sections 846 and 963. The defendants are also charged with substantive counts of importation of controlled substances and aiding and abetting, in violation of Title 21, United States Code, Section 952(a), and Title 18, United States Code, Section 2. In addition, Filip Lucian Simion is charged in several counts of distribution of controlled substances by means of the Internet, in violation of Title 21, United States Code, Section 841(h)(1)(A) and conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h).
If convicted on any of the counts charged, Filip Lucian Simion and Leonardo Cristea face a maximum possible penalty of 20 years’ imprisonment. The defendants’ criminal history and the amount or weight of the drugs being imported are factors a judge will consider at sentencing.
This case was investigated by the Denver Illicit Digital Economy Working Group, comprised of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Internal Revenue Service, in partnership with the Romanian Central Anti-Narcotics Unit in Bucharest, Romania, and the Belgian Federal Judicial Police, East Flanders Drug Unit in Dendermonde, Belgium. Other United States and international agencies assisting the working group in this investigation included: the Boulder County Drug Task Force, the Arapahoe County Sheriff’s Office, the Boulder County District Attorney’s Office, U.S. Customs and Border Protection offices nationwide, the Department of Justice Office of International Affairs, ATF Atlanta, DEA Chicago, Europol, and Eurojust.
The case is being prosecuted by Assistant U.S. Attorney and Digital Currency Crimes Coordinator Michele R. Korver
The charges contained in the Indictment are allegations, and the defendants named are presumed innocent unless and until proven guilty.
Randolph Man Pleads Guilty to Bank RobberiesRead the Press Release
BOSTON – A Randolph man pleaded guilty today in U.S. District Court in Boston to two bank robberies.
Gary S. Judge, 37, pleaded guilty to two counts of bank robbery before U.S. District Court Judge Richard G. Stearns who scheduled sentencing for Jan. 18, 2017.
On July 28, 2014, an individual, later determined to be Judge, entered a branch of the Century Bank in Braintree carrying a shoe box. He handed the teller a demand note that stated “PUT THE MONEY IN THE BOX NOW, $20’S $50’S AND $100’S. The teller handed Judge $5,622 in cash and Judge exited the bank. After law enforcement officers arrived and interviewed the tellers, details regarding the robbery were immediately disseminated on various law enforcement and public social media sites.
On Aug. 11, 2014, an individual, later determined to be Judge, entered a Milton branch of Citizens Bank carrying a shoe box and handed the teller a note that read, “PUT THE MONEY IN THE BOX NOW!!!$100’s, $50’s, AND $20’s. The teller handed Judge $670 in cash, which he put in the shoe box, and exited the bank. Included in the currency given to Judge was a red dye pack. A bank customer observed red smoke emanating from the shoe box as Judge drove away in a Chrysler SUV with Massachusetts license plates.
A few weeks later, law enforcement officers received a tip that Judge might have been involved in the robberies. A recent picture of Judge matched bank surveillance photographs from the Braintree and Milton robberies and it was also learned that Judge’s wife owned a Chrysler SUV matching the description from the Milton robbery.
Judge was arrested on Dec. 30, 2014 and admitted to robbing the banks.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. The Milton and Braintree Police Department assisted with the investigation. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit is prosecuting the case.
Philadelphia Man Charged with Theft of Government FundsRead the Press Release
Kenneth Duffy, 64, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information[1], the defendant received retirement benefits intended for his mother, after his mother’s death in January 1997 until his fraud was discovered in August 2016. The defendant’s alleged actions resulted in a loss to the government of approximately $235,995.
If convicted, the defendant faces a substantial period of incarceration, a 3‑year period of supervised release, restitution to the government of $235,995, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
[1] An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Navy Veteran Convicted of Making False Statement to Receive Disability Benefit PaymentsRead the Press Release
Edmond Deslatte, 46, of Murfreesboro, Tenn., pleaded guilty Friday to making a false statement to a federal agent in connection with an investigation into his disability benefits payments, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a plea hearing before U.S. District Court Judge Aleta A. Trauger, Deslatte admitted making a false statement during an April 2011 interview with a special agent with the U.S. Department of Veterans Affairs (“VA”) Office of Inspector General (“OIG”). At the time of the April 2011 interview, Deslatte was receiving 100% disability benefit payments from the VA, although he had been working full-time. At his plea hearing, Deslatte admitted that, during his April 2011 interview, he falsely represented to the VA-OIG agent that medication prescribed for his medical condition had rendered him disabled and unable to work. Deslatte further admitted that he had not been taking the medication as he had represented to the VA-OIG agent.
According to Deslatte, he made the misrepresentations in an effort to continue receiving disability benefit payments from the VA. In May 2014 a VA physician determined that Deslatte did not suffer from the medical condition that had supposedly rendered him disabled, and the VA subsequently terminated Deslatte’s disability payments. The intended loss associated with Deslatte’s misrepresentations to the VA was approximately $148,000.
Deslatte faces up to 5 years in prison and a fine of up to $250,000. Deslatte will be sentenced by Judge Trauger on January 19, 2017. Deslatte’s sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the VA Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Nation’s Largest Nursing Home Pharmacy to Pay over $28 Million to Settle Kickback AllegationsRead the Press Release
The nation’s largest nursing home pharmacy, Omnicare Inc., has agreed to pay $28.125 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients. CVS Health Corporation, which is headquartered in Rhode Island, acquired Ohio-based Omnicare in 2015, approximately six years after Omnicare ended the conduct that gave rise to the settlement.
“Every day, elderly nursing home residents suffering from dementia rely on the independent judgment of our nation’s healthcare professionals for their personal care and their medical treatment,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”
Nursing homes rely on consultant pharmacists, such as those employed by Omnicare, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents. The settlement announced today resolves allegations that Omnicare solicited and received kickbacks from Abbott in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to elderly nursing home residents.
According to the government’s complaint, Omnicare disguised the kickbacks it received from Abbott in a variety of ways. Abbott allegedly made payments to Omnicare described as “grants” and “educational funding,” even though their true purpose was to induce Omnicare to recommend Depakote. For example, Omnicare allegedly solicited substantial contributions from Abbott and other pharmaceutical manufacturers to its “Re*View” program. Although Omnicare claimed that Re*View was a “health management” and “educational” program, the complaint alleges that it was simply a means by which Omnicare solicited kickbacks from pharmaceutical manufacturers in exchange for increasing the utilization of their drugs on elderly nursing home residents. In internal documents, Omnicare allegedly referred to Re*View as its “one extra script per patient” program. The complaint also alleges that Omnicare entered into agreements with Abbott by which Omnicare was entitled to increasing levels of rebates from Abbott based on the number of nursing home residents serviced and the amount of Depakote prescribed per resident. Finally, the complaint alleges that Abbott funded Omnicare management meetings on Amelia Island, Florida, offered tickets to sporting events to Omnicare management and made other payments to local Omnicare pharmacies.
In May 2012, the United States, numerous states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including Omnicare and PharMerica Corp. In October 2015, PharMerica agreed to pay $9.25 million to the United States and numerous states to resolve civil liability under the False Claims Act for the alleged kickbacks from Abbott. The settlement announced today resolves Omnicare’s role in that alleged kickback scheme.
“This settlement ensures that some of the most vulnerable amongst us, those suffering from dementia, are provided with the level of care they deserve,” said U.S. Attorney John P. Fishwick Jr. for the Western District of Virginia. “Families and loved ones who make the difficult decision to place those they care about into a nursing home must do so with the confidence that medical decisions are being made with the interests of the patient in mind, not big drug companies.”
Approximately $20.3 million of the settlement will go to the United States, while $7.8 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement. The Medicaid program is jointly funded by the federal and state governments.
“It is disturbing that any health care corporation would pay kickbacks that corrupt the professional medical decision making process in order to pad their profits,” said Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of Inspector General (HHS OIG). “These practices are unacceptable and will not be tolerated.”
The settlement with Omnicare announced today, together with the prior settlements with Abbott and PharMerica, resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case in May 2014. The United States filed a complaint-in-intervention against Omnicare in December 2014. As part of today’s resolution, McCoyd will receive $3 million from the federal share of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.”
This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Virginia, HHS-OIG, the Office of the Attorney General for the Commonwealth of Virginia and the National Association of Medicaid Fraud Control Units.
The cases are captioned United States ex rel. Spetter v. Abbott Labs., et al., Case No. 10-cv-00006 (W.D. Va.) and United States ex rel. McCoyd v. Abbott Labs., et al., Case No. 07-cv-00081 (W.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Miami University Agrees to Overhaul Critical Technologies to Settle Disability Discrimination LawsuitRead the Press Release
CINCINNATI – The U.S. Justice Department filed a proposed consent decree today to resolve allegations that Miami University in Oxford, Ohio, violated the Americans with Disabilities Act (ADA) by using inaccessible classroom and other technologies.
Under the consent decree, which is pending court approval, Miami will make significant improvements to ensure that technologies across all its campuses are accessible to individuals with disabilities and will pay $25,000 to compensate individuals with disabilities. The agreement also requires reforms to Miami University’s technology procurement practices. These improvements will benefit all current and future Miami University students with disabilities.
As part of the consent decree, Miami University will, among other things:
- ensure that its web content and learning management systems conform with Web Content Accessibility Guidelines 2.0 AA standards;
- meet with every student who has a disability for which he or she requires assistive technologies or curricular materials in alternate formats, and their instructors, every semester to develop an accessibility plan; and
- procure web technology or software that best meets various accessibility standards.
“Technology in the classroom and across campus provides the backbone for full and equal participation in college life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will ensure that students with disabilities can access and receive the full benefit of 21st century technology in higher education.”
“The courage of the students who participated in the United States’ investigation led to this broad agreement that touches the lives of all Miami students with disabilities,” said U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio. “This agreement between the Justice Department and Miami University will ensure full access to technology that is crucial to academic success.”
The Justice Department intervened in this case, Dudley v. Miami University, which was originally brought by a single student. The intervention expanded the case to ensure comprehensive relief under Title II of the ADA for all Miami University students with disabilities. In the complaint, the department alleged that Miami University uses technologies in its programs, services and activities that are inaccessible to individuals with disabilities, including current and former students who have vision, hearing or learning disabilities.
The department further alleged that Miami University failed to make these technologies accessible and otherwise failed to ensure that individuals with disabilities could interact with Miami University’s websites and access course assignments, textbooks and other materials on an equal basis with students who do not have disabilities. These failures deprived current and former students and others with disabilities an equal opportunity to participate in and benefit from all of Miami University’s educational opportunities.
For more information or for a copy of the consent decree, please visit the department’s ADA website at www.ada.gov. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Miami University Agrees to Overhaul Critical Technologies to Settle Disability Discrimination LawsuitRead the Press Release
The Justice Department filed a proposed consent decree today to resolve allegations that Miami University in Oxford, Ohio, violated the Americans with Disabilities Act (ADA) by using inaccessible classroom and other technologies.
Under the consent decree, which is pending court approval, Miami University will make significant improvements to ensure that technologies across all its campuses are accessible to individuals with disabilities and will pay $25,000 to compensate individuals with disabilities. The agreement also requires reforms to Miami University’s technology procurement practices. These improvements will benefit all current and future Miami University students with disabilities.
As part of the consent decree, Miami University will, among other things:
- ensure that its web content and learning management systems conform with Web Content Accessibility Guidelines 2.0 AA standards;
- meet with every student who has a disability for which he or she requires assistive technologies or curricular materials in alternate formats, and their instructors, every semester to develop an accessibility plan; and
- procure web technology or software that best meets various accessibility standards.
“Technology in the classroom and across campus provides the backbone for full and equal participation in college life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will ensure that students with disabilities can access and receive the full benefit of 21st century technology in higher education.”
“The courage of the students who participated in the United States’ investigation led to this broad agreement that touches the lives of Miami University students with disabilities,” said U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio. “This agreement between the Justice Department and Miami University will ensure full access to technology that is crucial to academic success.”
The Justice Department intervened in this case, Dudley v. Miami University, which was originally brought by a single student. The intervention expanded the case to ensure comprehensive relief under Title II of the ADA for all Miami University students with disabilities. In the complaint, the department alleged that Miami University uses technologies in its programs, services and activities that are inaccessible to individuals with disabilities, including current and former students who have vision, hearing or learning disabilities.
The department further alleged that Miami University failed to make these technologies accessible and otherwise failed to ensure that individuals with disabilities could interact with Miami University’s websites and access course assignments, textbooks and other materials on an equal basis with students who do not have disabilities. These failures deprived current and former students and others with disabilities an equal opportunity to participate in and benefit from all of Miami University’s educational opportunities.
For more information or for a copy of the consent decree, please visit the department’s ADA website at www.ada.gov. Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD).
Miami University
Merced Man Sentenced to 2 Years in Prison for Growing Marijuana in Sierra National ForestRead the Press Release
FRESNO, Calif. — Emmanuel Castrejon Cardenas, 36, of Merced, was sentenced Monday by U.S. District Judge Lawrence J. O'Neill to two years in prison for conspiracy to cultivate 50 or more marijuana plants, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, individuals transporting large amounts of irrigation and other gardening equipment in the Sierra National Forest in the area of Providence Creek in Fresno County were caught on cameras set up by the U.S. Forest Service to monitor mountain lions. An investigation led agents to a large-scale, multi-plot marijuana cultivation site
On September 7, 2015, Cardenas was arrested after he delivered supplies for the clandestine marijuana cultivation site. The next day, law enforcement agents entered the site, eradicated a large number of marijuana plants, and found another individual, Apolinar Duarte, 36, who possessed a firearm. On May 16, 2016, Cardenas and Duarte pleaded guilty. Duarte was sentenced to five years in prison by Judge O’Neill on August 8, 2016.
This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Vincenza Rabenn prosecuted the case.
Maryland Man Indicted with Attempting to Provide Material Support to ISILRead the Press Release
A federal grand jury charged Nelash Mohamed Das, 24, a citizen of Bangladesh residing in Landover Hills, Maryland, with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office.
The indictment alleges that from October 2015 to Sept. 30, 2016, Das knowingly attempted to provide material support and resources to a foreign terrorist organization, namely ISIL. Further, the indictment alleges that Das knew that ISIL is a designated foreign terrorist organization and engages in terrorist activity.
According to court documents ISIL members and supporters have posted identifying information about U.S. military personnel in hopes that those inspired by ISIL would carry out attacks against them. Das allegedly planned to kill a U.S. military member in support of ISIL.
If convicted, Das faces a maximum sentence of 20 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein and Acting Assistant Attorney General McCord commended the FBI’s Joint Terrorism Task Force for its work on the investigation and thanked the prosecutors that are handling the matter.
Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Haris Qamar, 26, of Burke, pleaded guilty today to attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
“Mr. Qamar attempted to help ISIL encourage lone wolf attacks in our nation’s capital,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Ensuring the safety of our community is the top priority of my office, and we will continue to work with our law enforcement partners to locate, identify and prosecute those who choose to engage in terrorist activities.”
“This case demonstrates the reach terrorist organizations have through social media and the threat that they pose to our national security,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “When Qamar could not travel overseas he attempted to assist ISIL’s propaganda campaign for the purpose of inspiring lone wolf attacks in the Washington, D.C. area. Qamar operated over numerous social media accounts where he proselytized ISIL’s message and praised the terrorist group when they committed gruesome acts. Today’s plea is the result of the hard work of the FBI’s Joint Terrorism Task Force working around the clock to protect this country from those who seek to do us harm.”
According to the statement of facts filed with the plea agreement, on May 26, Qamar and FBI confidential witness (CW) discussed ISIL’s need of photos of possible targets in and around Washington, D.C., for use in a video that ISIL was purportedly making to encourage lone wolf attacks in the Washington, D.C., area. Qamar offered CW ideas of where to take these photographs, including the Pentagon and numerous landmarks in Arlington and Washington, D.C., which could be targeted for terrorist attacks. On June 3, a conversation was audio and video recorded when CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar said “bye bye DC, stupid ass kufar, kill’em all”. Qamar and CW met again on June 10 and drove to a location in Arlington to take additional photos for the ISIL video.
According to statement of facts, during numerous conversations with CW, Qamar expressed his interest and excitement in the extreme violence ISIL is known for. Qamar said he loved the bodies, blood and beheadings, and he recalled watching a video of a Kurdish individual being slaughtered, and liked the cracking sound made when the individual’s spinal cord was torn. On several occasions Qamar said he could slaughter someone and described how he would do it. Qamar also stated that he admired lone wolf attackers because they love Islam so much that they are willing to die as martyrs for Islam and in the same conversation, Qamar and CW discussed suicide bombings. CW said that he did not believe in suicide bombings, but Qamar responded “I believe in it 100 percent.”
According to statement of facts, on Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar told CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. On Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
According to statement of facts, additionally, on Sept. 25, 2015, Qamar told CW that he tried to join the ISIL in 2014, and purchased a plane ticket from Newark, New Jersey to Istanbul, Turkey. However, Qamar did not show up for the flight as his parents prevented him from going by controlling his passport. Qamar said his parents threatened to notify law enforcement and said that he fought with his father and called his father a traitor to Islam. On Nov. 18, 2015, CW asked Qamar if his father gave him back his passport would he go and join ISIL, and in response, Qamar said if that happened, “I’m done, I leave.”
Qamar faces a maximum penalty of 20 years in prison when sentenced on Jan. 6, 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 Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Division, made the announcement after the charges were unsealed. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case with assistance from the National Security Division’s Counterterrorism Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-300.
Man Believed to Have Placed Improvised Explosive Device in Nederland Shopping Complex ArrestedRead the Press Release
DENVER – David Michael Ansberry, born in 1952, originally from California, was arrested over the weekend in Chicago, Illinois, in connection with the placing of an improvised explosive device in a shopping area in Nederland, Colorado, the FBI, Boulder County Sheriff’s Office (BCSO), the Nederland Police Department, the Boulder County District Attorney’s Office and ATF announced. Ansberry made his initial appearance in Chicago yesterday and will be brought to Colorado to face the charge.
Ansberry, who was identified as the person allegedly placing the device following an intensive investigation by law enforcement, has been charged with attempted destruction of a building or property by means of fire or explosive. If convicted, Ansberry faces not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine.
The investigation is ongoing, but authorities believe based upon the information discovered to date that this was an isolated incident. If members of the public believe they have information regarding this incident they are asked to call the FBI at 303-629-7171.
“Thanks to the tireless work of this team of law enforcement professionals, a man who is charged with placing a dangerous device in a public place is in custody,” said Acting U.S. Attorney Bob Troyer. “The FBI, Boulder County Sheriff’s Office, the Nederland Police Department, and the ATF pulled together, dismantled this explosive device, and tracked down the man who allegedly made and placed it. Outstanding work all around.”
This case was investigated by the FBI, the Boulder County Sheriff’s Office, the Nederland Police Department, and ATF. Substantial assistance was provided by the Boulder County District Attorney’s Office. Ansberry is being prosecuted by Assistant U.S. Attorney Gregory Holloway and Trial Attorney Mara Kohn with the Counter Terrorism Section of the National Security Division.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Lanham Man Sentenced to over Seven Years in Federal Prison for Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – On October 14, 2016, U.S. District Judge George L. Russell III sentenced Junaidu Saljan Savage, a/k/a James Kamara, age 30, of Lanham, Maryland, to 87 months in prison, followed by five years of supervised release, for conspiring to commit bank fraud and for aggravated identity theft arising from a scheme to defraud a bank by using account holders’ personal information to take over their accounts. Judge Russell also ordered Savage to pay restitution of $36,400. A federal jury convicted Savage on March 15, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Brian Ebert of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to testimony at his six-day trial, from January 1, 2012 through April 2012, Savage conspired with Jayad Zainab Ester Conteh, Paul Anthony Williams and others to defraud a bank. Conteh, a bank teller, looked up bank account holder information on the computer system without authorization and disclosed the account holders’ personal identifying information to Savage and other co-conspirators. Using that information, Savage would call the bank pretending to be the account holder, change certain account information and order checks on the compromised account to be delivered by overnight mail. Savage and other co-conspirators would obtain those checks, including by intercepting the checks upon delivery at the actual account holders’ addresses. Wilson cashed the checks at bank branches in Maryland.
Trial evidence showed that as a result of the conspiracy at least seven bank account holders’ accounts were improperly accessed, with intended losses of more than $120,000.
Jayad Zainab Ester Conteh, age 24, of Glenarden, Maryland, was convicted after trial and sentenced to 64 months in prison for conspiring to commit bank fraud, bank fraud, aggravated identity theft and unauthorized access to a computer to obtain banking information. Judge Russell also entered an order that Conteh pay $36,400 in restitution to the victim bank and forfeit $36,400.
According to court documents and trial testimony, in July 2014, after Conteh had reported to prison to begin serving her sentence, Savage went to visit her relatives. An audio and video recording of the meeting revealed that Savage told Conteh’s relatives that he was involved in her criminal conduct and would pay the restitution ordered by the Court. In late August 2014, Savage’s girlfriend provided $6,000 in cash to a relative of Conteh as partial payment of Conteh’s restitution.
Co-conspirator Paul Anthony Wilson, a/k/a Anthony Johnson, age 53, of Washington, D.C., was arrested while attempting to cash a check on the account of one of the victims. Wilson pleaded guilty to his role in the conspiracy and was sentenced to 39 months in prison.
Today’s announcement is part of the efforts undertaken 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’s 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.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas P. Windom and Ray D. McKenzie, who prosecuted the case.
Kentucky veteran sentenced to two years in prison after federal jury found him guilty of defrauding the Veterans Health AdministrationRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced today to two years in federal prison and ordered to pay $789,472 in restitution for defrauding the Veterans Health Administration, announced United States Attorney Carol Casto. Phillip M. Henderson, 51, of Olive Hill, was previously found guilty by a federal jury sitting in Huntington following a five-day jury trial. The jury required only an hour of deliberations before finding Henderson guilty.
Henderson served in the United States Army from 1983 to 1986. After he was discharged, Henderson filed multiple claims for benefits with the United States Department of Veterans Affairs (VA). In 1995, Henderson received a diagnosis from the VA of Retinitis Pigmentosa, an inherited and degenerative eye disease which can lead to total blindness. After this diagnosis, Henderson continued to undergo VA eye examinations through 2013, during which time VA medical staff continued to conduct tests to determine the extent of his vision loss. The results of these tests relied significantly, if not completely, on Henderson’s cooperation and accurate reporting of his vision levels.
Witnesses for the United States, including four medical doctors, testified that Henderson falsely responded to the vision testing and significantly misrepresented his vision loss. Witnesses further testified that Henderson pretended he could barely read the letters on the eye charts and pretended that his peripheral vision was severely reduced. As part of his scheme to defraud the VA, Henderson did not reveal that he had a Kentucky driver’s license and that he could and did drive.
Henderson received the maximum disability and healthcare benefits he could get for his claimed disability and vision loss. VA benefits representatives testified that from 1996 to 2015, Henderson received approximately $697,000 in disability compensation. In addition to this monthly monetary compensation, Henderson also received an $11,000 grant to purchase an automobile in 2006, which was intended for another person to drive Henderson, and another $10,000 grant towards the installation of an in-ground swimming pool, which was intended for his exercise and to maintain his well-being as a blind veteran. Furthermore, Henderson received the maximum healthcare benefits possible for him and his family based upon his claimed diagnosis and vision loss. During the same time period, Henderson received the highest priority in getting medical treatment from the VA, free medical and dental services, free prescriptions, reimbursement for travel from his home in Kentucky to the VA Medical Center in Huntington for medical appointments, free training for the blind in Connecticut and Alabama for extended periods of time, and free equipment designed to assist the blind, such as canes, computers, talking telephones, and night vision goggles.
The United States Department of Veterans Affairs – Office of Inspector General, Pittsburgh Resident Agency, and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorneys Eumi Choi and Jennifer Rada Herrald handled the prosecution and tried the case before a federal jury. Chief United States District Judge Robert C. Chambers imposed the sentence.
- Follow us on Twitter: SDWVNews
Kearney Man Sentenced to 11 months Incarceration for Selling Misbranded Drugs over the InternetRead the Press Release
United States Attorney Deborah R. Gilg announced that Paul D. Martin, 46, of Kearney, Nebraska, was sentenced on October 17, 2016, to 11 months incarceration by United States District Judge Laurie Smith Camp, for selling misbranded products containing ingredients that increased the risk of cancer. Martin was indicted after FDA Investigators learned that he continued selling foreign products with banned ingredients after being warned that doing so was illegal. The sales occurred over the Internet and through the US mail. Martin pled to one count each of Delivery of Misbranded Drugs, Mail Fraud, and Wire Fraud.
“Selling purported dietary supplements drugs that contain undeclared drug ingredients places the public’s health at risk,” said Acting Special Agent in Charge Spencer E. Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “Our office will continue to target our resources to ensure that medicines for U.S. consumers are safe, effective, and properly labeled.”
After serving his 11 month sentence, Martin will be required to serve a Term of Supervised Release of 2 years.
This case was the result of an investigation by the Department of Health and Human Service, Food and Drug Administration.
Justice Department Settles Immigration-Related Discrimination Claim Against American Cleaning CompanyRead the Press Release
The Justice Department reached a settlement today with American Cleaning Company (ACC) resolving claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA). ACC is a maintenance and janitorial company based in Brighton, Massachusetts.
The department’s investigation found that from at least Jan. 15, 2009, until at least Sept. 30, 2015, ACC routinely required workers who are not U.S. citizens to produce specific documents for the Form I-9 and E-Verify processes, whereas U.S. citizens were permitted to choose whatever valid documentation they wished to prove their work authorization. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present to prove their work authorization. It is unlawful for an employer to limit employees’ choice of documentation because of their citizenship or immigration status.
Under the terms of the settlement agreement, ACC will pay $195,000 in civil penalties, train its human resources staff on the anti-discrimination provision of the INA and review and revise its policies and procedures to conform to the requirements of the INA’s anti-discrimination provision.
“Federal law prohibits discrimination against workers based on their citizenship or immigration status, including during the employment eligibility verification process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This Civil Rights Division will continue to protect the rights of lawful, authorized workers to do their jobs without facing discriminatory barriers.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
American Cleaning Company Settlement Agreement