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29 November 2016
Dual Iranian-American Citizen Convicted in Manhattan Federal Court of Conspiring and Attempting to Acquire Surface-To-Air Missiles and Other Items for the Government of IranRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that REZA OLANGIAN, a dual citizen of the United States and Iran, was found guilty of conspiring and attempting to send surface-to-air missiles (“SAMs”) and military aircraft parts to the Government of Iran. OLANGIAN was arrested in Estonia on October 10, 2012, pursuant to a U.S. request for his provisional arrest, and he was extradited to the United States on March 26, 2013. OLANGIAN was convicted after a two-week jury trial before U.S. District Judge Loretta A. Preska.
According to the evidence presented during the trial:
In 2008, OLANGIAN worked with Iranian officials to obtain approximately 375 SAMs for use by the Iranian government. Ultimately, that missile deal was unsuccessful.
Beginning in early 2012, OLANGIAN worked to negotiate another, separate missile deal, this time with a confidential source (the “CS”), who was working with the Drug Enforcement Administration (“DEA”) and who purported to be a weapons and aircraft broker. From his base of operations in Tehran, and from approximately May 2012 through October 2012, OLANGIAN arranged for the purchase of “IGLA-S” SAMs and various aircraft components. During covertly recorded meetings in May 2012, and in subsequent recorded conversations and e-mails with the CS, OLANGIAN described in detail his plans for procuring the SAMs and aircraft parts and then smuggling them over land into Iran, from Afghanistan or from another neighboring country. OLANGIAN also expressed his interest in purchasing numerous other types of weapons and military parts for the Iranian government, including the so-called “S-300” missile defense system and Russian-made naval vessels.
OLANGIAN’s 2012 negotiations included his participation in a videoconference with the CS, during which OLANGIAN remotely inspected a missile that the CS presented as a sample of the larger quantity of the SAMs that OLANGIAN sought to purchase. After inspecting the sample missile and inquiring about its specifications, OLANGIAN stated that he would want “at least 200 . . . minimum 200” of such SAMs. In his communications with the CS, OLANGIAN also indicated that he was arranging for a missile expert to inspect and test the SAMs.
At the same time that he was negotiating with the CS, OLANGIAN was also working with other individuals, both inside and outside Iran, to acquire numerous other items for the Iranian government and Iran-based entities. For example, OLANGIAN worked with individuals and entities in China, Russia, and Europe to acquire commercial aircraft for use by Iranian airlines. In one of these commercial aircraft deals, OLANGIAN and his coconspirators planned to purchase aircraft for $80 million and sell them to an Iranian company for $110 million.
During October 2012, OLANGIAN traveled to Estonia in connection with the SAMs deal and in anticipation of later traveling to Russia in connection with one of the aircraft deals. He was arrested in Estonia, and following his arrest, he was interviewed by U.S. law enforcement agents. OLANGIAN stated, among other things, that he had been working with Iranian government officials, that the SAMs he had arranged to purchase were being obtained for the Iranian government, and that the aircraft parts he attempted to acquire were to be used in Iranian military aircraft.
OLANGIAN was extradited to the United States on March 26, 2013.
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OLANGIAN, 56, was found guilty of all four counts of the Indictment. Counts One and Two charged him with conspiring to acquire and transfer surface-to-air missile systems and attempting to acquire and transfer surface-to-air missile systems. Counts Three and Four charged him with conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and attempting to violate IEEPA.
OLANGIAN faces a mandatory minimum sentence of 25 years in prison and a maximum sentence of life in prison on each of Counts One and Two, and a maximum sentence of 20 years in prison on each of Counts Three and Four. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for March 13, 2017, at 4:30 p.m., before Judge Preska.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit. Mr. Bharara also thanked the DEA’s Copenhagen Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley and Shane T. Stansbury are in charge of the prosecution.
Department of Justice Highlights Competitive Benefits of Telehealth ServicesRead the Press Release
The Department of Justice’s Antitrust Division today submitted a statement describing how Michigan Senate Bill 753 (H-1) has the potential to enhance competition and promote greater use of telehealth services for the benefit of patients and consumers. The department encourages lawmakers to consider the competitive effects of legislation while recognizing the critical importance of patient health and safety, noting that consumers benefit when it is possible to expand the ways available to them to access health care. This is possible by enacting legislation that only maintains those restrictions on telehealth services that are necessary, for example, to address safety concerns, to improve the public health or to protect against fraud.
“Consumers benefit when innovative technologies further competition to deliver convenient and affordable quality health care,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Telehealth, when used consistent with patient health and safety, has the potential to improve not just access to certain types of health care, but also the cost of that care. Better access and lower health care costs are especially important, as consumers may forego or delay care if it is inconvenient or costly to obtain.”
The statement is in response to a request from Michigan State Senator Peter MacGregor for views on the possible competitive effects of SB 753. SB 753 would add “telehealth” to the Michigan Public Health Code, provide for flexibility in how patients must provide consent for telehealth treatments and allow authorized health professionals to prescribe drugs that are non-controlled substances through telehealth services. By addressing a broader range of telehealth services and by not imposing unnecessary burdens on telehealth providers and consumers, SB 753 can encourage competitive benefits through further entry and innovation in the market and greater access to services appropriately provided through telehealth.
Michigan Telehealth Letter
Department of Justice Files Statement of Interest in South Carolina Statewide School-to-Prison Pipeline CaseRead the Press Release
The Justice Department filed a statement of interest late yesterday in the case of Kenny et al. v. Wilson et al. articulating the United States’ position that laws invoked to charge juveniles must include clear standards to ensure that they are enforced consistently and free from discrimination. In the filing, the department explains that vague statues enforced arbitrarily contribute to the “school-to-prison pipeline,” the cycle of harsh school discipline that brings young people into the justice system and disproportionately affects, among others, students of color and students with disabilities.
In Kenny, a case before the U.S. District Court for the District of South Carolina, a proposed class of students and a non-profit youth services organization allege that two state laws – the disturbing schools statute and the disorderly conduct statute – are unconstitutionally vague. As a consequence, plaintiffs assert, the laws do not provide students with notice of what conduct is criminally prohibited and they lead to arbitrary and discriminatory enforcement.
“The criminalization of everyday and ordinary childhood behavior under imprecise statutes can have disastrous and discriminatory consequences,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Laws must provide officers with sufficient guidance to distinguish between innocent and delinquent conduct and ensure that all children receive the full protections of our Constitution. We must remain vigilant to ensure law enforcement practices do not unnecessarily remove children from the classroom and place them in a pipeline to prison.”
In the filing, the department explains that “significant racial disparities in the enforcement of a criminal statute may indicate that the statute is unconstitutionally vague” in violation of the due process clause of the 14th Amendment. Laws that lack clear standards and do not provide sufficient guidance to law enforcement can lead to arbitrary or discriminatory enforcement. In Kenny, the plaintiffs allege that African-American students are nearly four times more likely to be referred for criminal “disturbing schools” charges than white students and that the disparity is even starker in certain counties. Plaintiffs further allege that such racial disparities in the school context are not explained by differences in behavior across racial groups.
In Kenny, the plaintiffs also allege that enforcement of the two state statutes drives large numbers of young people into the juvenile and criminal justice systems, criminalizes common youthful behavior, likely results in disparities on the basis of disability and subjects students to punishment that is not proportionate to the charged misconduct.
The department’s statement of interest also provides examples from the department’s juvenile justice and law enforcement experience to illustrate the link between vague standards and unconstitutional practices. The brief represents one of the department’s many efforts in recent years to address the school-to-prison pipeline.
Kenny et al. v. Wilson et al. was filed in August 2016. The court will hold a hearing on all pending motions on Dec. 8, 2016.
Kenny v. Wilson SOIDallas Man Who Admitted Role in AAFES Jewelry Theft Scheme is Sentenced to 17 Months in Federal prisonRead the Press Release
DALLAS — Arthur Lee Hightower, II, a Dallas man who was on the lam for more than seven months following his indictment in May 2015 for his role in a jewelry theft scheme that targeted the Army and Air Force Exchange Services (AAFES), was sentenced today, following his guilty plea in February 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Hightower II, 56, was sentenced to 17 months in federal prison by U.S. District Judge Sam A. Lindsay. He was also ordered to pay $47,740 in restitution.
In May 2015, Hightower and his former wife, Jessie Faye Hightower, a/k/a “Jessie Faye Lewis,” 55, of Balch Springs, Texas, and their two sons, Arthur Lee Hightower III, 34, of Lancaster, Texas, and Travoine Lee Hightower, 31, of Dallas, were charged in a federal indictment with felony offenses stemming from a scheme which began with Hightower II stealing 70 wedding ring sets valued at nearly $100,000 from AAFES. Jessie Fay Hightower and Arthur Lee Hightower III each pleaded guilty to one count of conspiracy to receive stolen government property (stolen ring sets) and were sentenced to 18-month and 24-month terms of probation, respectively. Travoine Lee Hightower pleaded guilty to one count of receiving stolen government property and was sentenced to a one-year term of probation.
According to plea documents filed in the case, Hightower II worked as a truck driver, and part of his duties included delivering AAFES merchandise to the AAFES offices in Dallas. On approximately October 3, 2014, Hightower II, who was responsible for safeguarding the merchandise, did not deliver all of the AAFES merchandise instead, he stole approximately 70 wedding ring sets from AAFES.
Hightower II admitted he gave several of the wedding ring sets to his co-defendant family members so they could pawn the stolen jewelry to obtain cash.
The case was investigated by agents of the Defense Criminal Investigative Service and the Air Force Office of Special Investigations. Assistant U.S. Attorney David Jarvis prosecuted.
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Dallas Man Sentenced to 60 Months in Federal Prison for Role in Enterprise That Promoted Prostitution at Various Hotels in DallasRead the Press Release
DALLAS — Mecose Mendale Shorter, 32, was sentenced today by U.S. District Judge David C. Godbey to 60 months in federal prison for engaging in an enterprise that promoted prostitution at various hotels in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
Shorter pleaded guilty to one count of using a facility of interstate commerce in aid or a racketeering enterprise. Shorter’s co-defendants, Kenneth Laray White, 27, and his brother, Damion Kentrell White, 25, were sentenced earlier this year to 326 months and 240 months, respectively, in federal prison. Each pleaded guilty to one count of using a facility of interstate commerce in aid of a racketeering enterprise and one firearm offense.
According to documents filed in the case, from approximately July 4, 2013, to July 22, 2013, Mecose Shorter, Damion White, and Kenneth White engaged in an enterprise that promoted prostitution in various hotels in Dallas. In early July 2013, Damion and Kenneth White recruited a mentally challenged 18-year-old girl to work for them in the prostitution enterprise. While Shorter had contact with the 18-year-old girl on various occasions, during this time period, he was engaged in the unlawful activity of promoting prostitution of another female, Jane Doe.
Shorter admitted he used facilities of interstate or foreign commerce, namely a cell phone and hotel rooms, with the intent to promote, manage, establish, carry on, and/or facilitate Jane Doe’s involvement in commercial sex acts. Shorter further admitted he received payments from Jane Doe for engaging in commercial sex acts.
Damion and Kenneth White knew their victim since she was 15 years old. When she was age 18, they devised a plan to recruit her to engage in commercial sex acts for them by taking advantage of her diminished mental capacity. In late June 2013, Damion White established a friendship with the victim, and then, in early July of 2013, he used false pretenses to convince her to leave her home with him.
That night, Kenneth and Damion White drove the victim to a motel in Dallas where Damion White had rented a room. Kenneth White used his cell phone to take provocative photos of the victim that they later used in advertisements they posted on backpage.com. They deprived her of food and prevented her from leaving the room to encourage her to engage in commercial sex acts for them. Kenneth White had sex with the victim, and the victim eventually engaged in commercial sex acts and provided the money she earned to Kenneth White. Kenneth and Damion White used the Internet and a cell phone to coordinate the victim’s commercial sex acts with potential customers.
Later, Kenneth and Damion White moved the victim to another motel in Dallas where they continued to compel her to engage in commercial acts during the latter part of July 2013. Officers with the Dallas Police Department rescued the victim from this motel on July 22, 2013.
The North Texas Trafficking Taskforce, including the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department, investigated. Assistant U.S. Attorney Cara Foos Pierce prosecuted the case.
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Colorado Woman Arrested in DAPL Protest Charged with Possession of a Firearm or Ammunition by a FelonRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on November 28, 2016, Redfawn Fallis, age 37, of Colorado, appeared in Federal Court in Bismarck, North Dakota. Fallis was charged by a criminal Complaint with Possession of a Firearm or Ammunition by a Previously Convicted Felon. Fallis appeared before Magistrate Charles Miller and was detained after waiving her right to a hearing on detention.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. (ATFE)
The criminal Complaint is attached. The Complaint is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Buffalo Woman Pleads Guilty to Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U. S. Attorney James P. Kennedy, Jr. announced today that Brittaney Ridgeway, 27, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, fentanyl before U.S. District Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that during the course of the conspiracy, the defendant and her boyfriend, Dellsean Hamilton, sold heroin and fentanyl in the Buffalo and Cheektowaga areas. On March 25, 2015, Cheektowaga Police officers recovered $2,315 in cash and 145 envelopes containing almost four grams of fentanyl following a traffic stop of a vehicle in which Ridgeway and Hamilton were riding.
Subsequent investigation determined that Hamilton was a large volume heroin supplier in Buffalo and the surrounding area and Ridgeway assisted him in the distribution of the heroin. Hamilton was arrested on January 11, 2016, also on distribution charges. Following Hamilton’s arrest, law enforcement officers learned that Ridgeway continued to distribute heroin. Officers made controlled purchases of heroin from Ridgeway on February 4 and February 11, 2016.
The plea is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for March 20, 2017, at 12:30 p.m. before Judge Arcara.
Bronx Man Pleads Guilty to Producing Child Pornography Relating to His Sexual Exploitation of MinorsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID KEITH, a/k/a “David Wright,” a/k/a “David Lee Keith,” a/k/a “David Lee,” a/k/a “Lee David,” pled guilty this afternoon before U.S. District Judge Alison J. Nathan in Manhattan federal court to five counts stemming from his sexual exploitation of minors, related child pornography offenses, and making false statements to a federal agent concerning his abuse of children.
Manhattan U.S. Attorney Preet Bharara said: “Through lies and trickery, David Keith lured a minor girl into his vehicle and then sexually abused her, videotaping his sick assault and exploitation. Protecting children from predators like Keith remains a critical priority for law enforcement, and we hope the victims here will take some measure of comfort in knowing that Keith has admitted to and been convicted of his abominable crimes.”
According to the Indictment, publicly filed documents, and statements made in court:
On at least one occasion in 2013, KEITH produced child pornography during his sexual abuse of a child. On October 13, 2013, KEITH approached three girls, approximately 12 to 14 years old, on the street, presented himself as part of the entertainment industry, and encouraged the girls to model for him. KEITH induced one of the girls to enter his vehicle, where he video recorded, among other things, himself engaging in forcible sexual conduct with her. KEITH threatened the victim not to tell anyone and told her that he had been watching her.
Just one day earlier, on or about October 12, 2013, KEITH, lured a young girl, approximately 8 to 9 years old, into his vehicle where he tricked her into removing some of her clothing and video recorded her exposed genitals.
In addition, for a period of at least two years, KEITH downloaded and possessed images and videos of child pornography.
During the investigation, KEITH made statements to federal agents, claiming he had an alibi for October 12 and 13. Those statements were proven false.
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KEITH, 39, of the Bronx, New York, was arrested on November 17, 2015, in the Bronx, New York, and has been in federal custody since. KEITH pled guilty today to two counts of sexual exploitation of a child, each of which carries a maximum penalty of 50 years in prison, one count of receipt of child pornography, which carries a maximum penalty of 40 years in prison, one count of possession of child pornography, which carries a maximum penalty of 20 years in prison, and one count of making false statements involving sexual abuse of children, which carries a maximum penalty of eight years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KEITH is scheduled to be sentenced by Judge Nathan on March 10, 2017, at 1:00 p.m.
Mr. Bharara praised the extraordinary efforts of the FBI, and thanked the New York City Police Department Special Victims Unit and the Town of Poughkeepsie Police Department for invaluable assistance in the investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Matthew Podolsky and Stephen Ritchin are in charge of the prosecution.
Broken Arrow Woman Pleads Guilty to Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that THERESA JO DAVIS, age 62, of Broken Arrow, Oklahoma, pled guilty to MONEY LAUNDERING CONSPIRACY, in violation of Title 18, United States Code, Section 1956(h), punishable by not more than 20 years imprisonment, and up to a $500,000.00 fine or both.
The Superseding Indictment alleged that beginning in or about December 2013, and continuing until in or about April 2016, the Defendant conspired with others, to conduct financial transactions affecting interstate commerce and involving the proceeds of unlawful activity by depositing large sums of United States Currency knowing that the transactions were designed to conceal the nature and source of the proceeds of unlawful activity and while knowing that the currency involved in the transactions represented proceeds of unlawful activity.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Bridgeport Man Sentenced to More Than 10 Years in Federal Prison for Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DERRICK GILLIAM, 30, of Bridgeport, was sentenced today by Chief U.S. District Judge Janet C. Hall in Bridgeport to 121 months of imprisonment, followed by three years of supervised release, for participating in an armed robbery spree in 2014.
According to court documents and statements made in court, on April 26, 2014, GILLIAM, Lancelot Supersad and others committed an armed robbery of the CVS Pharmacy on Grasmere Avenue in Fairfield, stealing approximately $2,376. On May 3, 2014, GILLIAM, Supersad and others attempted an armed robbery of the Mobil Gas station on Noble Avenue in Bridgeport. On May 10, 2014, GILLIAM, Supersad and others committed an armed robbery of a Webster Bank branch on Main Street in Bridgeport, stealing approximately $4,170. On June 1, 2014, GILLIAM, Supersad and others committed an armed robbery of a Pizza Hut on Boston Avenue in Bridgeport, stealing approximately $250. On June 26, 2014, GILLIAM, Supersad, Anthony Santiago and others committed an armed robbery of the Residence Inn on Bridgeport Avenue in Shelton, stealing approximately $200. On July 2, 2014, GILLIAM, Supersad, Santiago and others attempted an armed robbery of the Sikorsky Financial Credit Union on Oronoque Lane in Stratford. Also on July 2, 2014, GILLIAM, Supersad, Santiago and others committed an armed robbery of the TD Bank located on Post Road East in Westport.
GILLIAM brandished and pointed what appeared to be a handgun at employees during each of the seven robberies.
Chief Judge Hall ordered GILLIAM to pay $12,100 in restitution.
GILLIAM has been detained since his arrest on July 3, 2014. On July 28, 2016, he pleaded guilty to one count of conspiracy to affect commerce by robbery.
Supersad and Santiago pleaded guilty to the same charge and await sentencing.
This investigation was conducted by the Federal Bureau of Investigation and the Westport, Shelton, Fairfield, Stratford and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Avi M. Perry.
Baltic Woman Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Baltic, South Dakota, woman convicted of her part in a methamphetamine distribution conspiracy was sentenced on November 28, 2016, by U.S. District Judge Karen E. Schreier.
Tammy Hodgin, age 42, was sentenced to 130 months in custody, to be followed by 5 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Hodgin was indicted for Conspiracy to Distribute 500 Grams or More of Methamphetamine by a federal grand jury on May 10, 2016. She pled guilty on September 6, 2016.
Hodgin was part of a group of people who began working together in July 2015 to distribute methamphetamine in South Dakota and elsewhere. Hodgin distributed methamphetamine she received from coconspirators. On three occasions in July and August, 2015, she sold methamphetamine to confidential sources in Minnehaha County, South Dakota.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Hodgin was immediately turned over to the custody of the U.S. Marshals Service.
Assisted Living Facility Manager Pleads Guilty to Stealing Elderly Residents’ Identities to Obtain Credit CardsRead the Press Release
Baltimore, Maryland –Salah Eldean Sood, age 35, of Lutherville, Maryland, pleaded guilty late on November 28, 2016, to bank fraud and aggravated identity theft, arising from a scheme to open credit card accounts using the stolen identity information of elderly persons who were in Sood’s care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division (SSA).
According to his plea agreement, Sood managed Holland Manor Eldercare. In June 2015, P.J., a resident of Holland Manor, was transported to a local hospital. Baltimore County Fire Department personnel noted that conditions in the facility were unsanitary and that P.J.’s injuries were potentially indicative of a lack of proper medical care. P.J. died two days later. Maryland health officials revoked the Assisted Living Program License of Holland Manor Eldercare on September 25, 2015. On December 3, 2015, Baltimore County Fire Department and Baltimore County Police Department personnel responded to a fire alarm at Holland Manor and located two residents inside the facility without any staff present. An 80 year-old male resident, W.C., informed responders that no caretaker was generally present at the facility overnight. The second resident was restrained in a bed in a second floor bedroom, comatose, and unable to communicate. Responders were initially unable to reach Sood on his cell phone. Sood eventually responded to their calls, but refused to provide information as to his whereabouts.
Further investigation revealed that from July 2014 to January 2016, Sood opened credit card accounts at a bank using the names, dates of birth, and social security numbers of three elderly persons who resided at the assisted living facility, including P.J. and W.C. Sood submitted the applications electronically, using Holland Manor’s address as the home address. Sood obtained six credit cards in the names of the residents. Sood added himself as an authorized user on those accounts and made over $74,000 in purchases using the accounts.
As part of his plea agreement, Sood will be required to pay restitution in the full amount of the victims’ losses, $74,753.24.
Sood and the government have agreed that at the time of sentencing they will recommend a sentence of 48 to 52 months in prison to be served concurrent to the state sentence imposed in his Baltimore County Circuit court case. U.S. District Judge Marvin J. Garbis has scheduled sentencing for March 30, 2017 at 10:00 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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 commended HHS, the Baltimore County Police Department, Baltimore County State’s Attorney’s Office and SSA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lauren E. Perry and Roann Nichols, who are prosecuting the case.
Arkansas Resident Sentenced to Twenty Years in Federal Prison for Distributing Crack CocaineRead the Press Release
GREENEVILLE, Tenn. – On Nov. 29. 2016, Billy Ray Allen, a.k.a. Grill, 42, of Widener, Ark., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 240 months in federal prison. Following his prison term, he will be on supervised release for ten years. There is no parole in the federal system.
Allen pleaded guilty in August 2016 to a conspiracy to distribute 280 grams or more of crack cocaine and money laundering. He was the leader of a drug trafficking organization, involving 10 individuals, which obtained powder cocaine in Forrest City, Ark., then transported it to Kingsport, Tenn., where it was “cooked” into crack cocaine and distributed in the Tri-Cities. Allen admitted to being conservatively responsible for distributing between 2.8 and 8.4 kilograms (6 to 18.5 pounds) of crack cocaine. He also utilized the proceeds from the sale of crack cocaine to buy vehicles and real estate, all of which were placed in the names of third parties in an effort to conceal his ownership from authorities. Allen faced a minimum mandatory sentence of 20 years in prison as a result of trafficking in at least 280 or more grams of crack cocaine.
Agencies involved in this investigation included the Second Judicial District Drug Task Force, Kingsport Police Department, Sullivan County Sheriff’s Office, Bristol Police Department, Tennessee Bureau of Investigation, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service, and Drug Enforcement Administration. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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28 November 2016
Waterbury Grocery Store Worker Pleads Guilty to Illegal Use of Food Stamp BenefitsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CARLOS MONARCA-GONZALEZ, 40, of Waterbury, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents, MONARCA worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MONARCA and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
MONARCA has been detained since his arrest on August 18, 2016. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on March 1, 2017, at which time he faces a maximum term of imprisonment of five years, a fine of up to $250,000 fine and restitution.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Waldorf Man Admits Committing Two Bank Robberies in Less Than a WeekRead the Press Release
Greenbelt, Maryland – Joshua Francisco Miranda, age 29, of Waldorf, Maryland, admitted committing two bank robberies in March 2016.
Today’s guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on March 23 and March 29, 2016, Miranda robbed banks in Accokeek and Fort Washington, Maryland, respectively. In each robbery Miranda entered the bank and gave the teller a note demanding $5,000. The note also threatened that Miranda had a bomb which he would detonate if the teller did not comply with his demand. Surveillance footage and witness testimony showed that in each robbery Miranda had a wire coming out of one of his shirt sleeves. Miranda stole a total of $7,800 from the two banks. According to his plea agreement, Miranda will be required to pay restitution in that amount.
Miranda and the government have agreed that if the Court accepts the plea agreement Miranda will be sentenced to between seven and eight years in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for March 14, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.
Upstate New York Woman Admits Stealing $3.1 Million from Cargill Inc.Read the Press Release
Employee Caused Minnesota Company $25 Million in Losses
A Greene County, New York, woman pleaded guilty today to stealing at least $3.1 million from Cargill Inc. (Cargill) over 10 years and causing at least $25 million in losses. The woman was an accounting manager at Cargill, the country’s largest privately held corporation, based in Minnetonka, Minnesota.
The announcement was made by U.S. Attorney Richard S. Hartunian of the Northern District of New York; Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division; and Special Agent in Charge Shantelle P. Kitchen of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
Diane Backis, 50, of Athens, New York, pleaded guilty to mail fraud and filing a false income tax return. Backis was responsible for accounting functions in Albany related to Cargill’s grain operations, including creating customer contracts, generating and mailing invoices, and receiving and processing customer payments. As part of her plea, Backis admitted that she defrauded Cargill while working in its Port of Albany facility, which receives, stores and sells grain products.
“Ms. Backis stole millions of dollars from her employer in a decade-long scheme to enrich herself so she could live beyond her means,” said U.S. Attorney Hartunian. “She stole money by diverting customer payments to her personal bank accounts and sold grain products for millions less than her employer paid, causing enormous financial losses. Her guilty plea today sends a strong message that crime does not pay.”
“Ms. Backis repeatedly victimized her employer,” said FBI Special Agent in Charge Vale. “This kind of fraud is a sinister act that involves not only criminality but a willingness to cause Cargill, Inc. millions in losses. The FBI will continue to work together with its law enforcement partners to ensure people like Ms. Backis are held accountable.”
“This investigation demonstrates the resolve of the government to investigate and prosecute financial crimes,” said IRS-CI Special Agent in Charge Kitchen. “Ms. Backis stole millions of dollars from Cargill, Inc. for a 10-year period, while committing tax fraud in the process. Today, she is held accountable for the financial harm she inflicted on Cargill Inc. and the law-abiding American taxpayer.”
As part of her plea, Backis admitted that she stole hundreds of customer payments sent to Cargill totaling at least $3,115,610 and deposited them into her personal bank accounts. Backis also regularly created fraudulent invoices and mailed them to Cargill’s customers. The fraudulent invoices charged Cargill’s customers prices substantially less than what Cargill paid to acquire the grain products, causing Cargill significant financial losses. The fraudulent invoices also directed Cargill’s customers to send payment directly to Backis, thereby bypassing Cargill’s corporate controls. To hide her activities, Backis made false entries into Cargill’s accounting software to make it appear that customers were paying prices higher than those in her fraudulent invoices and that customers owed Cargill millions of dollars for delivered grain products, only to reverse those false entries. As a result, Cargill lost at least $25 million.
Backis also admitted that she filed a false 2015 individual income tax return because she declared only $61,208 in total income and omitted over $450,000 in additional taxable income she received by stealing customer payments intended for Cargill in 2015.
Backis faces up to 20 years in prison, a three-year term of supervised release and a fine of up to $250,000 when she is sentenced on March 28, 2017 by U.S. District Judge Mae A. D’Agostino in Albany. As part of her guilty plea, Backis has agreed to pay Cargill at least $3.5 million in restitution and to forfeiture of her house in Athens, an investment brokerage account, and her Cargill pension benefits.
A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers in the Northern District of New York.
U.S. Attorney’s Office and FBI to Host Eighth Annual Cyber Crime Prevention SymposiumRead the Press Release
LOS ANGELES – The United States Attorney’s Office, the FBI, and a coalition of law enforcement agencies and community groups will host the 8th Annual Cyber Crime Prevention Symposium tomorrow. The day-long seminar for more than 400 educators, parents, and middle and high school students is being held at the California Endowment in Los Angeles.
The Symposium will address a wide range of Internet-related security and safety issues with speakers conducting discussions on topics that include child exploitation, cyber bullying, the implications of digital communication on health, digital reputation, navigating peer pressure, social media, cyber abuse, Internet dangers and sextortion, among other topics. This year features a youth presentation on Snapchat and special celebrity guests from Disney television programs will make a special surprise appearance during the lunch break.
“Internet and social media use has become a fundamental element of our daily lives. Whether it is for educational or recreational use, it is essential that everyone – especially young people – have skills to stay safe in cyberspace,” said United States Attorney Eileen M. Decker. “This Symposium will assist the most vulnerable among us, and those who care for them, in designing and implementing strategies that will help protect them from online dangers.”
“Education is key to empowering children to take control of their cyber citizenship and do their part to protect themselves and their peers from those who would do them harm via the internet,” said Deirdre L. Fike, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This Symposium affords the FBI and our law enforcement partners direct access to students, parents, and educators to discuss the dangers of sextortionists, cyberbullies, and fraudsters our children face online. We are all partners in the fight to keep kids safe in cyberspace.”
Student teams from each of the schools attending this year’s Symposium will also be invited to participate in the 6th Annual Cyber Safety Challenge. This contest asks attending students to develop a cyber safety program at their respective schools in order to educate the entire student body on the various risks associated with cyber crime. The contest promotes good cyber etiquette by challenging students to engage in creating the cyber safety programs. Students participating in this challenge will have their contest entries judged by a panel of experts, and the winning school will be publicized in May 2017.
“With just a touch of a screen or a click of a mouse, our children can be the targets of bullies and predators," said Los Angeles City Attorney Mike Feuer. "My Office is proud to partner with law enforcement, educators, parents and students to keep our children safe by addressing the very serious threats posed by online predators and cyber bullies."
Organized under the aegis of the Inter-Agency Council on Child Abuse and Neglect (ICAN), law enforcement agencies participating in tomorrow’s conference include the United States Attorney’s Office, the Federal Bureau of Investigation, the Los Angeles City Attorney’s Office, the Los Angeles County Sheriff’s Department, and the Los Angeles Police Department Internet Crimes Against Children Task Force (ICAC).
“Children who are growing up in this high tech age are being targeted by online predators at an alarmingly high rate,” said Deanne Tilton Durfee, Executive Director for the ICAN. “Each year, this Symposium will provide participants with resources and tools to help children learn how to protect themselves and be safe in the cyber world, while enjoying all of the benefits of the fast-growing technologies.”
The Cyber Crime Prevention Symposium is hosted this year by the Archdiocese of Los Angeles, and the planning committee also includes participation by the Los Angeles County Office of Education, Santa Monica-UCLA Medical Center, the Anti-Defamation League, Fox Entertainment Group, the Walt Disney Company, and Warner Bros. Entertainment.
“I’m a firm believer that knowledge is power,” said Dr. Heather Banis, victim’s assistance coordinator for the Archdiocese of Los Angeles. “The Cyber Crime Prevention Symposium helps our students be ‘in the know,’ empowering them to stay safe online.”
U. S. Attorney Alicia Limtiaco Invited to Speak at the Pacific Islands Law Officers Network (Pilon) Meeting in Pohnpei, Federated States of MicronesiaRead the Press Release
ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to participate at the Pacific Islands Law Officers Network (PILON) Meeting in Pohnpei, Federated States of Micronesia, on October 25-28, 2016. PILON is a network of senior public law officers from Pacific Island countries, including Australia and New Zealand, which focuses on common legal issues within the Pacific region. PILON was established in 1982 and holds meetings annually. Member countries of PILON are Australia, the Cook Islands, the Federated States of Micronesia, Fiji, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, the Pitcairn Islands, the Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.
U.S. Attorney Limtiaco gave presentations on, “An Overview of Sex Crime Investigations & Prosecutions,” Cybercrime Awareness, and “A Pacific Regional Response to Combat Human Trafficking.”
U.S. Attorney Limtiaco discussed strategies and approaches regarding the preparation and prosecution of sexual assault cases, including child sexual abuse and exploitation cases, domestic and family violence and child physical abuse cases.
U.S. Attorney Limtiaco spoke about cybersecurity as a top priority for the U.S. Government and the critical need to secure the nation’s networks and information from exploitation and damage. She also discussed cybercrimes such as identity theft and other online fraud schemes and the importance of protecting one’s privacy on social media.
U.S. Attorney Limtiaco shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort of the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State, Office to Monitor and Combat Trafficking in Persons; the U.S. Department of Labor; the U.S. Department of Interior, Office of Insular Affairs; the Guam HTTF; the NMI HTIC; and other community partners. U.S. Attorney Limtiaco also elaborated on the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region.
The Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders. The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.
The PILON workshop was attended by representatives from the countries of Australia, Cook Islands, Republic of Kiribati, Nauru, New Zealand, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.
Group picture taken at the PILON Meeting. U.S. Attorney Alicia Limtiaco is seated in the top row, fourth from the left.Two indicted for defrauding investors out of nearly $600,000Read the Press Release
Two people were indicted by a federal grand jury for their roles in a nearly $600,000 financial fraud, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office
Andrea M. Trgovcich, 50, of Youngstown, and Bertrand J. Gray, aka Bert Gray, 52, of Cleveland, were indicted on charges of securities fraud and bank fraud.
Trgovcich is charged with inducing the investment of $578,859 in a business venture known as Wellness Integrated Network LLC (WIN). WIN was intended to develop and market a software application that would integrate diet, fitness, exercise routines, health monitoring, etc., to business employee wellness plans and insurance companies, according to the indictment.
Investors were promised that their money would be used to develop and market the software product. Trgovcich is alleged to have diverted much of the money to personal use. No software application was ever developed or marketed. Gray joined WIN as chief financial officer in 2012, and is alleged to have raised investor funds through the use of false documents and statements, according to the indictment.
Trgovcich is also charged with six counts of bank fraud for withdrawing investor funds from federally-insured banks under false pretenses, according to the indictment.
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Youngstown Resident Agency of the Federal Bureau of Investigation. The case was presented by Assistant U.S. Attorneys James V. Moroney and Carmen Henderson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Men Given Multi-Year Prison Sentences for Scheme to Rob Drug Dealers at GunpointRead the Press Release
CAMDEN, N.J. – Two New Jersey men were sentenced to prison today for their roles in a conspiracy to rob a drug stash house of multiple kilograms of cocaine that they believed would be stored at the location, U.S. Attorney Paul J. Fishman announced.
Robert Smith, a/k/a “Born,” 43, of Trenton, New Jersey, and Derrick Adams, a/k/a “Little D,” 30, of Florence and Willingboro, New Jersey, were sentenced today by U.S. District Judge Noel L. Hillman to 360 and 120 months in prison, respectively.
Following a one-week jury trial in April 2016, Smith was convicted of conspiracy to commit robbery, conspiracy to distribute five or more kilograms of cocaine, possessing a firearm in connection with a crime of violence and a drug trafficking crime, and possessing a firearm as a previously-convicted felon. Adams pleaded guilty in November 2015 to conspiracy to commit robbery and conspiracy to distribute five or more kilograms of cocaine.
According to documents filed in this case and the evidence admitted at trial:
In January 2014, the conspirators planned a gunpoint robbery of a drug stash house in order to steal kilograms of cocaine from dealers at the location. During the investigation, Smith was recorded discussing his willingness, if necessary, to kill the occupants of the stash house. Smith and Adams, in text message conversations and recorded communications, discussed their plan to rob the stash house while posing as law enforcement.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Smith, Adams, and four other conspirators when they arrived at a meeting location in Maple Shade, New Jersey, on Jan. 30, 2014. After searching the conspirators and their vehicles, the agents recovered five firearms – including a sawed-off shotgun and two stolen handguns – as well as numerous rounds of ammunition, a ballistics vest, masks, gloves, and zip ties.
In addition to the prison terms, Judge Hillman also ordered Smith and Adams to each serve five years of supervised release.
Three other conspirators, Daquon Basnight, 25, Jamiil McFarlane, 24, and Morris Muse, 36, all of Trenton, New Jersey, were previously sentenced before Judge Hillman. A sixth conspirator, Sean Forman, 43, of Willingboro, New Jersey, awaits sentencing.
U.S. Attorney Fishman credited special agents with the ATF Camden Field Office, under the direction of Special Agent in Charge George P. Belsky in Newark, with the investigation leading to today’s sentences. He also thanked the Drug Enforcement Administration (DEA) Maple Shade Field Office, as well as the Burlington City and Burlington Township police departments, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Howard Wiener of the U.S. Attorney’s Office Criminal Division in Camden.
Two Fresno Residents Sentenced for Manufacturing and Selling Fraudulent Identification DocumentsRead the Press Release
FRESNO, Calif. — Francisco Javier Hidalgo-Flores, 25, of Fresno, was sentenced today by Chief United States District Judge Lawrence J. O’Neill to 15 months in prison for conspiracy to produce and sell false identification documents, U.S. Attorney Phillip A. Talbert announced. Co-defendant Lizet Amairani Ramirez-Zazueta, 26, also of Fresno, was sentenced to time served for selling false identification documents. Both defendants have been in custody since their arrest on June 16, 2016.
According to court documents, Hidalgo-Flores manufactured fraudulent identification documents, including social security cards and alien registration receipt cards, for customers who placed orders and paid as much as $150 for a set of the fraudulent documents. Hidalgo-Flores and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
“Counterfeit document traffickers will provide anyone with false documents for the right price,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “This poses a potential national security threat and opens the door for imposters to steal identities and wreak havoc on innocent victims” lives.”
On June 16, 2016, Hidalgo-Flores and Ramirez-Zazueta were arrested along with four other co-defendants for the scheme. Co-defendant Veronica Rosales-Capitaine is scheduled to be sentenced on December 19, 2016; charges are pending against the remaining co-defendants. The pending charges are only allegations; the remaining co‑defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Former L.A. Sheriff’s Deputies Sentenced to Federal Prison for Violating Civil Rights of Jail Inmate who was BeatenRead the Press Release
LOS ANGELES – Two former deputies with the Los Angeles Sheriff’s Department were ordered today to serve time in federal prison for violating the civil rights of a mentally ill jail inmate who was beaten, kicked and pepper sprayed after showing disrespect to a jail employee at the Twin Towers Correctional Facility.
Bryan Brunsting, 32, and Jason Branum (also known as Jason Johnson), 36, were sentenced this morning by United States District Judge George W. Wu. Brunsting received a 21-month prison term, while Branum was sentenced to five months in custody.
Brunsting and Branum each were found guilty in May of three felony counts related to the unprovoked attack on the inmate on March 22, 2010, and subsequent cover-up. Following the trial, federal prosecutors reached an agreement with Brunsting in which he admitted his role in another use-of-force incident on August 20, 2009 at Twin Towers.
Writing about Brunsting in a sentencing memorandum filed with the court, prosecutors said, “Both incidents show that defendant’s need for ‘respect’ from inmates was above anyone’s need for justice.”
The evidence presented during a one-week trial in United States District Court showed that Brunsting and Branum assaulted the victim in the 2010 incident after the inmate verbally showed disrespect to a civilian Sheriff’s Department employee. Brunsting, who was a training officer assigned to a rookie deputy who had just started working at the jail, told his trainee that they were going to “teach him a lesson.”
Brunsting, Branum and the rookie deputy brought the victim out of the visiting area and directed him to a locked hallway without any surveillance cameras. Once in the hallway, the inmate realized he was going to be assaulted and began to run. The victim was tackled. Brunsting and Branum then beat the victim with fists, kicked him in the genitals and sprayed him in the eyes with pepper spray. Once other deputies arrived, they instructed the rookie deputy to handcuff the victim before he was led away for medical treatment.
After the beating, Brunsting, Branum and the rookie deputy met to coordinate and falsify their stories. The rookie deputy testified that he was told what to say and how to write his report. As prosecutors argued at trial, the reports submitted by Brunsting and the rookie were strikingly similar, and were written to justify the use of force by falsely claiming that the victim had attempted to punch the rookie.
“Both defendants engaged in a vicious, premeditated assault on an inmate,” said United States Attorney Eileen M. Decker. “Deputy Brunsting’s conduct was even more egregious given that he was involved in the abuse of a second inmate, and he was training new deputies on how to violate inmates’ civil rights and get away with it. These defendants tarnished all law enforcement with their conduct, undermining the outstanding work by the vast majority of officers in the Los Angeles Sheriff’s Department and the nation.”
Brunsting and Branum were found guilty of conspiracy to violate civil rights, deprivation of civil rights with bodily injury, and falsification of records for preparing reports that tried to justify their use of force against the victim.
The case against Brunsting and Branum is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of today’s guilty verdicts, 20 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges.
The case against Brunsting and Branum was prosecuted by Assistant United States Attorneys Brandon D. Fox and Lindsey Greer Dotson of the Public Corruption and Civil Rights Section.
Three Mahoning County men face firearms chargesRead the Press Release
Three Mahoning County men face federal firearms charges, U.S Attorney Carole S. Rendon said.
Indicted are: James M. Simmons, 32, of Youngstown, Ricky Paige, 30, of Boardman, and Michael Williams, 32, of Youngstown. Their cases are not related.
Simmons possessed a Ruger, model P95, 9mm pistol, on Feb. 3, 2016, after having been previously convicted of burglary, possession of cocaine, and failure to comply with order or signal of police officer, all in the Mahoning County Court of Common Pleas, according to the indictment
Paige possessed a Norinco, model SKS, 7.62mm rifle on Dec. 15, 2015 and a Ruger, model P95, 9mm pistol on March 24, 2016, despite previous convictions for robbery, aggravated robbery and burglary in Mahoning County Court of Common Pleas, according to the indictment.
Williams is charged possessing with the intent to distribute narcotics and being a felon in possession of a firearm.
Williams possessed with the intent to distribute cocaine, crack cocaine, heroin, tramadol, alprazolam and clonazepam on or about July 1, 2016, according to the indictment.
He also possessed a Norinco, model MAK 90 Sporter, 7.62mm rifle, on July 7, 2016, despite previous convictions for aggravated assault and cocaine trafficking in the Summit County Court of Common Pleas, according to the indictment.
All three cases are being prosecuted by Assistant U.S. Attorney David M. Toepfer following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Additional Men Plead Guilty for Illegally Harvesting and Selling American EelsRead the Press Release
Today, three individuals pleaded guilty in federal district court in Charleston, South Carolina, to trafficking more than $740,000 worth of juvenile American eels aka “elvers” or “glass eels,” in violation of the Lacey Act. Harry Wertan, Jr., Mark Weihe and Jay James each pleaded guilty to selling or transporting elvers in interstate commerce, which they had harvested illegally, or knew had been harvested illegally, in South Carolina.
The pleas were the result of “Operation Broken Glass,” a multi-jurisdiction U.S. Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels. To date, the investigation has resulted in guilty pleas for ten individuals whose combined conduct resulted in the illegal trafficking of more than $2.6 million worth of elvers.
The guilty pleas were announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Beth Drake for the District of South Carolina, and Director Dan Ashe of the USFWS.
“We will not allow the rivers of the United States to be the poaching grounds for international seafood markets,” said Assistant Attorney General Cruden. “The American eel is an important but limited natural and economic resource that must be protected. Trafficking only undercuts the toil and honest efforts of those who obey the law.”
“This case underscores the role U.S. citizens often play in wildlife trafficking and demonstrates that this deadly trade does not solely impact large, charismatic mammals in distant countries,” said Director Dan Ashe for USFWS. “U.S. Fish and Wildlife Service law enforcement agents work tirelessly to save wildlife from the threat traffickers pose here at home, and together with the Department of Justice, bring these individuals to justice for their illegal activities.”
Eels are highly valued in east Asia for human consumption. Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels. As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.
American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents. They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water. Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food. Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.
Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but three states: Maine, South Carolina and Florida. Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Although Florida does not have specific elver-related regulations, the limited population of elvers in Florida waters makes commercial eel fishing impossible.
“This investigation is an outstanding example of the dedication and ingenuity shown by multiple agencies working together to expose and curtail the illegal trade of American eels,” said Special Agent-in-Charge Luis Santiago Southeast Region for USFWS. “Today’s pleas are a success in our collective efforts to conserve and protect an important American fishery.”
“Today’s pleas in the illegal trade of American Eels are a tremendous step in preserving this important fishery,” said Colonel Chisolm Frampton for the South Carolina Department of Natural Resources, Law Enforcement Division. “A multitude of state and federal agencies did outstanding work to bring this case to successful conclusion.”
The offenses in the case are felonies under the Lacey Act, each carrying a maximum penalty of five years’ incarceration, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.
Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department and the Atlantic States Marine Fisheries Commission.
The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller and Assistant U.S. Attorney Rhett DeHart.
Tampa Bay Man Sentenced to Federal Prison for Tax EvasionRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Steven Headden Young (55, St. Petersburg) to 21 months in federal prison for tax evasion. He was also ordered to make restitution to the Internal Revenue Service in the amount of $509,455, and to file his corrected tax returns for tax years 2007 through 2011.
According to court documents, Young evaded a substantial portion of his personal federal income taxes for the years 2007 through 2011 by falsifying expenses to negate his income. Young, who prepared and filed his own tax returns, created bogus business expenditures and deducted them from his Schedule C income. He provided the IRS with a false lease agreement and false invoices between his real estate company and a sham corporation, purportedly based in the Dominican Republic.
Young also falsely filed as head-of-household (HOH) to take advantage of the tax benefits of the HOH filing status when he was indeed married. HOH provides for less taxes and higher credits than when filing as single, married and filing jointly, or married and filing separately. Young made false statements to the IRS about his marital status, claiming he was single, when he was married and living with his wife.
Young also interfered with the IRS audit and tax assessment of his personal federal income taxes by attempting to intercept third-party records that had been subpoenaed by the IRS from Bank of America (BOA). Young fabricated a letter from the IRS to BOA in an attempt to redirect bank records that had been intended for the IRS to another address, which had been opened by Young in the name of an IRS employee.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Treasury Inspector General for Tax Administration. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Summit County man indicted for firearms, nearly 80 pounds of cocaineRead the Press Release
A five-count indictment was filed in federal court charging a Summit County man for illegally possessing firearms and nearly 80 pounds of cocaine, law enforcement officials said
Jerry J. Davis, Jr., 35, of New Franklin, was indicted on two counts of possession with the intent to distribute cocaine, two counts of possession of a firearm in furtherance of a drug trafficking offense and one count of being felon in possession of a firearm.
Ohio State Highway Patrol troopers and officers from Akron Police Department executed a traffic stop of Davis in Akron on Nov. 1. Davis initially stopped but then drove away, leading the officers on a high-speed chase. Davis crashed his car into a light pole and then ran from officers. He was arrested after he jumped from a bridge, falling 30 feet to the ground, according to court documents.
Officers recovered nearly 11 kilograms of cocaine and a loaded Glock .40-caliber handgun from Davis’s vehicle, according to court documents.
Later that day, investigators from the Summit County Drug Unit, Akron Police Department, DEA and FBI executed a search warrant on Davis, Jr.’s house in New Franklin. They recovered approximately 25 kilograms of cocaine, a Glock .40 model 30 handgun, a Springfield .45-caliber handgun, ammunition and approximately $67,658 in cash, according to court documents.
Davis is forbidden by law from having a firearm because of numerous felony convictions, including for sexual battery, heroin possession and other crimes, according to court documents.
“This investigation is a great example of law enforcement working together to get drugs and guns off the streets,” said U.S. Attorney Carole S. Rendon.
“Our working relationships with our state, local and federal partners continue to benefit the City of Akron in successes such as this,” said Akron Police Chief James Nice.
“The seizure of 36 kilograms is significant and is an indication that cocaine abuse continues to plague society,” said Timothy Plancon, Special Agent in Charge of DEA’s Detroit Office, which oversees Ohio. “Halting the activities of a large-scale, gun-toting, cocaine trafficker is a victory for the citizens of Akron and the surrounding communities, and was achieved thanks to the significant communication and cooperation of all of the local, state and federal law enforcement agencies involved.”
This investigation was conducted by the Akron Police Department Narcotics Unit and the DEA, along with the Ohio State Highway Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorney Aaron P. Howell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Stockton Man Sentenced to 21 Months in Prison for Staging Car Accidents in a Scheme to Defraud Insurance CompaniesRead the Press Release
FRESNO, Calif. — Cristopher Santiago Sanchez-Becerra, 32, of Stockton, was sentenced today to 21 months in prison in connection with his role in a conspiracy to stage car accidents in order to defraud insurance companies, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2011 until August 2014, Sanchez-Becerra conspired with at least six other individuals to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. As part of the scheme, the defendants would often offer to repair the recruited individual’s vehicle at automobile repair shops that Sanchez-Becerra or a co-defendant owned, usually with less-than-complete repair work, and for a fee that was less than the payment from the insurance company. In all, Sanchez-Becerra caused at least $210,000 in false insurance claims to be paid as a result of the conspiracy to defraud.
In each staged accident, Sanchez-Becerra and other defendants utilized two or three vehicles and caused about $5,000 to $10,000 in damage to each vehicle. After each staged collision, the defendants submitted cover stories to the insurer that concealed the true cause of the accident. The cover story would commonly use aliases, false identities, and false addresses when describing the defendants. The defendants also used different vehicles in the staged collisions. They were able to do this by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles. The defendants did this to avoid scrutiny by the insurer that reviewed the false claims. The defendants repeated the scheme in dozens of crashes by recruiting other individuals to participate in the staged collisions. These individuals would allow their vehicles to be damaged and would submit their own claim for damages. In many instances, false claims were submitted to the recruited individual’s insurance company.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
Co-defendants Victor Hugo Soriano-Villafan, 26, of Modesto, and Alfonso Apu, 47, of Modesto, have pleaded guilty and are awaiting sentencing. Charges are pending against co‑defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Liobigildo Vargas, 46, of Turlock; and Juan Marquez Cadenas, 30, of Patterson. The charges against them are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
St. Albans man pleads guilty to conspiracy to obtain pain pills by fraudRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Kenneth Dale White, Jr., 31, entered his guilty plea to conspiracy to obtain controlled substances by misrepresentation, fraud, forgery, deception, and subterfuge.
White admitted that prior to April 2015, he came into possession of a pre-printed prescription pad belonging to a local doctor. Between April 12, 2015, and May 7, 2015, White and a codefendant recruited other individuals to fraudulently obtain pain pills. The recruited individuals were directed by White or the codefendant to go to pharmacies in the Kanawha County area to obtain oxycodone and Xanax by presenting fraudulent and forged prescriptions to the pharmacies. The recruited individuals would be paid cash to fill the fraudulent prescription or be allowed to keep a small amount of the pain pills fraudulently obtained. The remaining pills were returned to White or the codefendant.
White faces up to four years in federal prison when he is sentenced on March 6, 2017.
The case against White was investigated by the Dunbar Police Department, the South Charleston Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Schenectady Man Sentenced to 125 Months for Firearm OffenseRead the Press Release
ALBANY, NEW YORK – John Coffin, aka “Body,” age 47, of Schenectady, New York, was sentenced today to 125 months in prison, to be followed by 5 years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
As part of his August 4 guilty plea, Coffin admitted that he possessed a loaded 9 millimeter rifle at his home in Schenectady, and that he used that firearm to protect the drugs and cash – which were drug proceeds – he kept at his home. In imposing sentence, Senior United States District Judge Gary L. Sharpe described Coffin’s criminal history as “absolutely abysmal” and noted his “absolute penchant for drugs and guns.”This case was investigated by the FBI, the New York State Police, and the Schenectady Police Department. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
San Jose Gang Leader Sentenced to 15 Years in Prison for Racketeering Conspiracy, Drug Trafficking, and Use of FirearmsRead the Press Release
SAN JOSE – Jesus Armendariz was sentenced today to 15 years in prison based on his conviction on charges of racketeering conspiracy, distribution of crystal methamphetamine, and use of a firearm, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was imposed by the Honorable Edward J. Davila, U.S. District Judge, and represents the twelfth conviction resulting from a proactive operation by the FBI’s Santa Clara County Violent Gang Task Force targeting gang members committing violent crimes and selling methamphetamine in San Jose.
The sentence follows a guilty plea entered July 28, 2016. According to the plea agreement, Armendariz admitted being a Sureño gang member from at least January of 2009 to at least January of 2014. Armendariz acknowledged performing the functions of a gang leader and liaison for the Mexican Mafia prison gang to Sureño gangs in San Jose, including the Sur Santos Pride (SSP) gang. The SSP gang committed acts of violence, including murder, attempted murder, and robbery, for the benefit of the gang. Like other Sureño gangs in San Jose, SSP pledged their loyalty to the Mexican Mafia prison gang and followed its directives.
Armendariz admitted that he conspired with SSP members (as well as other Sureño gangs) to carry out the violent precepts of the Mexican Mafia through a pattern of criminal racketeering activity. Armendariz acknowledged that part of his role was to fuel the Sureño gang members with guns and crystal methamphetamine provided by the Mexican Mafia. The defendant also collected money from each Sureño gang in San Jose on behalf of the Mexican Mafia, sent that money on to the Mexican Mafia, and provided the Sureño gangs in San Jose with the directives of the Mexican Mafia relating to narcotics trafficking, gang operations, and other instructions to further the criminal goals of the Mexican Mafia prison gang.
Armendariz’s tattoo shop was raided by the FBI on January 30, 2014. At that time, the FBI recovered over 700 grams (net/actual weight) of crystal methamphetamine, three handguns, and an AR-15 semi-automatic rifle.
Armendariz was among 27 Sureño gang members in San Jose indicted on March 18, 2014, with various charges, including Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy, in violation of 18 U.S.C. § 1962(d); Violent Crime in Aid of Racketeering (VICAR) Murder Conspiracy, in violation of 18 U.S.C. § 1959(a)(5); VICAR Murder and Attempted Murder, in violation of 18 U.S.C. § 1959(a)(1) and (a)(5); distribution of crystal methamphetamine, in violation of 21 U.S.C. §§ 846 and 841; and using and possessing firearms, in violation of 18 U.S.C. §§ 922 and 924(c). Pursuant to his plea agreement, Armendariz pleaded guilty to one count each of racketeering conspiracy; use of a firearm in relation to a crime of violence; and conspiracy to distribute and possess with intent to distribute 50 grams and more of methamphetamine.
In addition to the prison term, Judge Davila also ordered defendant to serve 5 years of supervised release and pay a $300 special assessment. Defendant currently is in custody and will begin serving his sentence immediately.
The investigation leading to the indictment was part of the FBI’s crackdown on Sureño gangs in Santa Clara County. Eleven of the other charged defendants already have been sentenced as reflected in the chart below. Five other defendants are scheduled to be sentenced in the next two months. Six defendants are pending trial set for May 2017, and a status conference is scheduled for December 15, 2016.
Defendant
Charges
Sentence
JOSE DAVID SANCHEZ a/k/a “Joker”
Distribution of Methamphetamine
Sentenced on 10/21/14 to 77 months in prison
JUAN CHAVEZ
a/k/a “Dukester”
Distribution of Methamphetamine
Sentenced on 10/30/14 to 77 months in prison
ANDY LAMB LOPEZ a/k/a “Solo”
Felon in Possession of Firearm
Sentenced on 2/23/15 to 45 months in prison
MIGUEL MIRANDA
a/k/a “Payaso”
Distribution of Methamphetamine
Sentenced on 2/23/15 to 120 months in prison
MARIO GUERRERO
a/k/a “Lil Junior”
Distribution of Methamphetamine
Sentenced on 8/27/15 to 85 months in prison
FRANCISCO RAMIREZ a/k/a “Cisco”
Distribution of Methamphetamine
Sentenced on 11/2/15 to 46 months in prison
JORGE RODRIGUEZ a/k/a “Brownie”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 2/1/16 to 160 months in prison
RICARDO MONTOYA
a/k/a “Necio”
RICO Conspiracy and VICAR Attempted Murder
Sentenced on 5/16/16 to 108 months in prison
JOSE MORENO
a/k/a “Lil Chocolate”
RICO Conspiracy and Use of a Firearm
Sentenced on 8/4/16 to 160 months in prison
MARCOS LOMELI
a/k/a “Cookie”
RICO Conspiracy and Use of a Firearm
Sentenced on 9/26/16 to 127 months in prison
FERNANDO CRUZ
a/k/a “Nano”
RICO Conspiracy
Sentenced on 11/10/16 to 87 months in prison
FRANCISCO FONSECA
a/k/a “Griffo”
RICO Conspiracy, Distribution of Methamphetamine, Felon in Possession of a Firearm
Sentencing Scheduled for 12/12/16
DANIEL CORTEZ
a/k/a “Lil Temper”
RICO Conspiracy
Sentencing Scheduled for 12/18/16
FELIX HERNANDEZ CRISTOBAL a/k/a “Pato”
RICO Conspiracy
Sentencing Scheduled for 12/19/16
BENITO CANALES
a/k/a “Dopey”
RICO Conspiracy
Sentencing Scheduled for 12/20/16
DENNIS SANDOVAL
a/k/a “Criminal”
VICAR Attempted Murder
Sentencing Scheduled for 1/9/17
Assistant United States Attorneys Stephen Meyer, Cynthia Frey, and Amie Rooney are prosecuting the case. The case is the result of an investigation by the FBI.
Sacramento Landlord Pays $75,000 to Settle “Section 8” False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Phillip A. Talbert announced today the resolution of federal False Claims Act allegations against Leatha Henderson for allegedly submitting false claims in connection with her participation as a landlord in the federal housing subsidy program.
The Housing Choice Voucher Program was enacted to assist low-income families in obtaining decent, safe, sanitary and affordable housing. The United States Department of Housing and Urban Development (HUD) administers the program through annual contribution contracts with local public housing agencies such as the Sacramento Housing & Redevelopment Agency (SHRA). This program is more commonly known as “Section 8.” Regulations implementing the Section 8 program provide that participating low-income tenants pay 30 to 40 percent of their adjusted monthly income toward their rent and utilities, and the federally funded program pays the balance.
Henderson contracted with SHRA in order to participate in the Section 8 program and receive government payments for her Sacramento rental property between June 2007 and May 2013. Under the terms of this Housing Assistance Payment Contract (HAP Contract), the United States paid between 62 and 68 percent of the rental rate stated in the HAP Contract (Federal Share), and the tenant paid the remaining 32 to 38 percent (Tenant Share). The HAP Contract restricted Henderson from charging rent to the tenant in excess of the Tenant Share as designated by SHRA based on the tenant’s income. Today’s settlement resolves allegations that Henderson falsely certified compliance with this rental payment restriction and fraudulently collected rental payments from both the United States and the tenant during the term of the tenancy.
“Charging in excess of the agreed tenant rate frustrates a primary goal of this important program: to provide affordable housing to low-income families,” said United States Attorney Talbert. “Landlords participating in the Section 8 program will be strictly held to their obligations under the governing regulations.”
“A landlord’s participation in the Section 8 program is voluntary,” said HUD Regional Administrator Jon Gresley. “When they choose to participate, they agree to fulfill certain responsibilities, including charging tenants no more than what they must pay in rent so that their homes remain affordable. HUD will continue upholding this standard, as it safeguards the program’s integrity and secures the public’s trust.”
The allegations resolved by the settlement were first raised in a lawsuit filed against Henderson under the qui tam, or whistleblower, provisions of the False Claims Act by Sondra Madden, the tenant involved in the subject Section 8 tenancy. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $13,500 of the recovery.
This case was the product of an investigation by HUD’s Office of Inspector General. Assistant United States Attorney Catherine J. Swann handled the case with the assistance of Ji Yoo, an attorney with HUD’s Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Ryan Kyle Charged with Federal Hate Crime for Subway Platform AssaultRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that a criminal Information has been filed in federal court in Pittsburgh charging Ryan Kyle with a hate crime based on the victim’s race. This is the first federal hate crime filed in Western Pennsylvania since the enactment of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act of 2009.
The one-count Information named Ryan Kyle, 22, formerly of Baldwin Borough, Pennsylvania, and presently incarcerated.
According to the Information filed with the court, on or about May 30, 2015, in the Western District of Pennsylvania, Ryan Kyle did willfully cause bodily injury to K.L. because of the actual and perceived race and color of K. L.
Evidence previously introduced in state court established that Kyle, who is white, assaulted Kevin Lockett, a then-53-year-old African-American man, at the Wood Street T Station in downtown Pittsburgh on May 30, 2015. The assault was captured on Port Authority video and occurred following a Kenny Chesney concert at Heinz Field.
U.S. Attorney Hickton stated, “The anticipated plea in this case ensures that Ryan Kyle is held fully accountable for a federal hate crime that carries a significant sentence, highlights the racial motivation for the offense, and demonstrates the federal government’s commitment to prosecuting racially-motivated crimes.”
United States Attorney General Loretta Lynch certified the filing of the charge in the public interest and necessary to secure substantial justice. By law, federal prosecutors must obtain a written certification by the Attorney General or his designee before a hate crime prosecution may be undertaken.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Port Authority Police Department conducted the investigation leading to the filing of charges in this case.
A criminal Information is an accusation.
A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.
Pakistani Man Sentenced for Visa FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Naeem Maqbool, 46, a citizen of Pakistan and resident of Canada, who was convicted of visa fraud, was sentenced to time served by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on September 6, 2016, at the Peace Bridge Port of Entry, the defendant presented a Pakistani passport which contained a United States non-immigrant visitor visa that had been secured by fraud. Maqbool, a commercial air pilot who had previously been denied visas on multiple occasions, was granted the visa after providing false information on that visa application. The defendant wanted to work in the United States and lied so that United States authorities would not find out about his prior visa denials. Maqbool was also in possession of a counterfeit Pakistani passport that was a high quality copy of an expired passport that had been altered to conceal travel to the Middle East.
The sentencing is the result of an investigation by United States Customs and Border Protection, under the direction of Rose Hilmey, Director of Field Operations.
Owner of Sham ‘Veteran-Owned’ Company Ordered to Forfeit $6.7 MillionRead the Press Release
BOSTON – A previously convicted Chelmsford man has been ordered to forfeit more than $6.7 million in connection with his June 2016 conviction for recruiting veterans as figurehead owners of a construction company in order to receive specialized government contracts.
On Wednesday, Nov. 23, 2016, David Gorski, 51, was order by U.S. District Court Judge F. Dennis Saylor to forfeit $6,756,205 following a forfeiture trial. In June 2016 a federal jury convicted Gorski of conspiring to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (SDVOSB) Program, and four counts of wire fraud. In September 2016, he was sentenced to 30 months in prison, one year of supervised release and ordered to pay a $1 million fine.
Following Gorski’s conviction, the government sought forfeiture of $6.4 million, representing the gross proceeds Gorski received as a result of his fraud scheme, which Gorski contested. During the forfeiture trial, the government proved that it was entitled to the gross proceeds resulting from Gorski’s criminal conduct, including compensation he received from Legion Construction Inc., (“Legion”) from 2006 to 2015. The forfeiture included compensation Kimberly Gorski, Gorski’s wife, received from Legion from 2007 to 2009. The Court found that Kimberly Gorski did not work at Legion during that time period and the compensation she received was merely a mechanism Gorski used to increase his own income.
United States Attorney Carmen M. Ortiz; Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge of the General Services Administration, Office of the Inspector General, Office of Investigations; Kevin Kupperbusch, Special Agent in Charge of the Small Business Administration, Office of the Inspector General, Investigations Division; Michael D. Conner, Regional Agent in Charge of the U.S. Army Criminal Investigation Command; and Leo Lamont, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office. The case was prosecuted by Assistant U.S. Attorney William F. Bloomer of Ortiz’s Public Corruption Unit and Doreen M. Rachal, Chief of Ortiz’s Asset Forfeiture Unit.
Orono Woman Pleads Guilty to Maintaining a Drug-Involved PremisesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Amy Hakola, 42, of Orono, Maine pleaded guilty today in U.S. District Court to allowing her residence to be used as a place to use powder cocaine and to distribute cocaine base, commonly known as “crack.”
According to court records, between about January 2010 and August 2013, the defendant allowed her Orono residence to be used by Jermain Mitchell and others from New Haven, Connecticut to distribute crack. Although the drug deals did not occur in her residence, Hakola was aware that digital scales, packaging materials and drugs were stored in her residence. She was aware that men staying at her residence repeatedly left the residence to conduct transactions with people who pulled up outside the residence. On occasion, she drove the men from her residence to different locations in the Bangor area so that they could deliver drugs. She also knew that Mitchell did not have regular employment, yet regularly had large amounts of cash some of which he paid to her for rent and household expenses. Finally, Mitchell and the other men shared powder cocaine with her that was used in the residence.
The defendant faces up to 20 years in prison, a $500,000 fine and three years of supervised release.
The case was investigated by the Maine Drug Enforcement Agency; the New Haven Office of Bureau of Alcohol, Tobacco, Firearms and Explosives; and the New Haven Police Department.
Ohio man pleads guilty to federal gun crimeRead the Press Release
HUNTINGTON, W.Va. – An Ohio man pled guilty today in the United States District Court in Huntington to a federal firearm charge, announced United States Attorney Carol Casto. Stephen W. Whitt, age 30, of Scottown, pled guilty to being a felon in possession of a firearm. On June 21, 2014, Whitt pawned a Marlin Model 60, .22 caliber rifle at Tri-State Pawn and Jewelry, located on 29th Street in Huntington in exchange for 50.00. On June 22 and June 30, 2014, Whitt also pawned three other rifles at Tri-State Pawn and Jewelry – a Marlin Model .30-30 rifle, a Glenfield Model 60 .22 rifle, and an Old Colony single shot 12-gauge shotgun.
Prior to pawning the firearms, Whitt had been convicted of two counts of entering without breaking in the Circuit Court of Cabell County and was prohibited from possessing firearms. United States District Court Chief Judge Robert C. Chambers presided over the plea hearing. Whitt faces up to 10 years’ imprisonment and up to a $250,000 fine when he is sentenced on March 13, 2017.
North Carolina Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
The Justice Department announced that today in federal court, James Ralph Craddock, 71, of Manns Harbor, North Carolina, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a special agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that during the North Carolina 20-day ocean trawl season in January/February 2010, Craddock, then Captain of the 74-foot commercial fishing vessel Capt Ralph, harvested over 12,000 pounds of Atlantic Striped Bass. Further analyses revealed that between Feb. 1, 2010, and Feb. 4, 2010, Craddock, harvested 1,750 pounds of Atlantic Striped Bass from the EEZ, with an estimated fair-market retail price of approximately $14,000, which he sold to a dealer in Wanchese, North Carolina. Craddock sent an e-mail to another vessel through the Capt Ralph’s vessel monitoring system and admitted to catching the Atlantic Striped Bass south of Buoy No. 8. Bodie Island Lighted Buoy No. 8 is located 6.5 nautical miles from shore, in the EEZ. The vessel monitoring system data from the Capt Ralph further corroborated the illegal harvesting of the fish. Craddock then made false statements to NOAA, concealing the true location of the harvest in his federal vessel trip reports.
“Fishing for striped bass in federal waters in violation of this longstanding and well-known moratorium has the potential to seriously impact this iconic species, to the detriment of the many honest commercial and recreational anglers who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who fail to respect laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing will be enforced vigorously.”
A sentencing hearing has been scheduled for March 27, 2017, term of court. Craddock faces a maximum sentence of five years in prison and a $250,000 fine.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Trial Attorneys Shennie Patel and Joel La Bissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section and Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina.
North Carolina Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, JAMES RALPH CRADDOCK,71, of Manns Harbor, North Carolina, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that during the North Carolina 20-day ocean trawl season in January/February 2010, CRADDOCK, then Captain of the 74-foot commercial fishing vessel Capt Ralph, harvested over 12,000 pounds of Atlantic Striped Bass. Further analyses revealed that between February 1, 2010, and February 4, 2010, CRADDOCK, harvested 1,750 pounds of Atlantic Striped Bass from the EEZ, with an estimated fair-market retail price of approximately $14,000, which he sold to a dealer in Wanchese, North Carolina. CRADDOCK sent an e-mail to another vessel through the Capt Ralph’s vessel monitoring system and admitted to catching the Atlantic Striped Bass south of Buoy No. 8. Bodie Island Lighted Buoy No. 8 is located 6.5 nautical miles from shore, in the EEZ. The vessel monitoring system data from the Capt Ralph further corroborated the illegal harvesting of the fish. CRADDOCK then made false statements to NOAA, concealing the true location of the harvest in his federal vessel trip reports.
“Fishing for striped bass in federal waters in violation of this longstanding and well-known moratorium has the potential to seriously impact this iconic species, to the detriment of the many honest commercial and recreational fishers who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who fail to respect laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing will be enforced vigorously.”
A sentencing hearing has been scheduled for March 27, 2017, term of court. CRADDOCK faces a maximum sentence of five years in prison and a $250,000 fine.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina and Trial Attorneys Shennie Patel and Joel La Bissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Niagara Falls Man Arrested, Charged with Cocaine and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Julias Hall, 31, of Niagara Falls, NY, was arrested and charged by criminal complaint with possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. The charges carry a minimum penalty of five years in prison, a maximum penalty of life, and a $1,000,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that on November 10, 2016, a search warrant was executed at the defendant’s house on 38th Street in Niagara Falls. Police officers recovered a loaded .22 caliber pistol, ammunition, and approximately 50 grams of suspected cocaine.
The defendant made an initial appearance today before the U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing scheduled for December 1, 2016, at 11:00 a.m.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division, and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New Haven Man Sentenced to 9 Years in Federal Prison for Distributing Heroin and CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL COLON, also known as “Paul Kane,” 28, of New Haven, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by five years of supervised release, for distributing heroin and crack cocaine.
According to court documents and statements made in court, COLON and Shawn Miller operated a New Haven area narcotics distribution ring. The investigation revealed that members of the ring took orders over a cellphone from drug customers in several shoreline communities for quantities of heroin and crack cocaine, and then delivered the drugs by car.
On June 29, 2016, COLON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin and cocaine base (“crack cocaine”). He is detained.
Miller, of Hamden, pleaded guilty to the same charge and, on November 1, 2016, was sentenced to 90 months of imprisonment.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force in cooperation with the Drug Enforcement Administration and the New Haven, West Haven, Milford, Hamden and other local police departments, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia.
New Haven Man Sentenced to 7 Years in Prison for Role in Fraudulent Oxycodone Prescription SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAYMOND MORALES, also known as “Freddy,” 33, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by three years of supervised release, for his role in a scheme to obtain oxycodone through fraudulent prescriptions.
According to court documents and statements made in court, in 2012, members of the Drug Enforcement Administration’s New Haven Tactical Diversion Squad began an investigation into a drug trafficking organization that manufactured fraudulent prescriptions for oxycodone and distributed the drug in the greater New Haven area. As part of the conspiracy, members of organization obtained the personal identifying information of medical practitioners and used the information to create fraudulent prescriptions. Conspiracy members also purchased legitimate prescriptions for oxycodone from individuals. The organization then used individuals, or “runners,” to fill the fraudulent prescriptions at pharmacies throughout Connecticut. Once a runner provided his or her personal information to a member of the organization, the runner’s information was kept on file and used to create other fraudulent prescriptions.
MORALES recruited runners to fill fraudulent prescriptions. The investigation also revealed that he had a close associate who was employed as a pharmacy technician at a pharmacy in New Haven and assisted MORALES in filling the fake prescriptions.
The investigation revealed that, between February 2013 and September 2015, the organization stole the personal identifying information of more than 50 doctors and medical professionals and fraudulently obtained more than 80,000 oxycodone pills. Investigators identified more than 800 fraudulent prescriptions passed by members of the organization using more than 270 different “patient” names.
Nearly all of the runners employed by the conspiracy held state-sponsored medical insurance, so the costs of the prescriptions were billed to Medicaid. Members of the drug trafficking organization then sold the oxycodone for $20 to $30 per 30 milligram pill.
On June 16, 2016, MORALES pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone.
Eleven individuals have been charged as a result of the investigation.
The DEA Tactical Diversion Squad includes members from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Amy C. Brown and Robert M. Spector.
New Hampshire Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Felix Wilson, 35, of Portsmouth, NH, pleaded guilty to possession of a firearm by a convicted felon, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that on August 22, 2013, while riding a bicycle on East Ferry Street in Buffalo, the defendant carried a .22 caliber revolver on his person. In May 2011, Wilson was convicted of Attempted Robbery in the Second Degree in Erie County Supreme Court and is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Sentencing is scheduled for March 9, 2017, at 1:00 p.m. before Judge Arcara.
Navajo Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Larry Lee Emerson, Jr., 36, an enrolled member of the Navajo Nation who resides in Toadlena, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Emerson was arrested in Aug. 2016, on a criminal complaint charging him with assaulting a Navajo Nation police officer with a Special Law Enforcement Commission card on July 6, 2016, in San Juan County, N.M. According to the complaint, Emerson assaulted the officer while the officer was attempting to arrest him.
Emerson was indicted on Aug. 23, 2016, and charged with assaulting a federal officer who was engaged in the performance of his official duties. During today’s proceedings, Emerson pled guilty to the indictment without the benefit of a plea agreement.
Emerson has been in custody since his arrest, and remains detained pending a sentencing hearing, which has not yet been scheduled. At sentencing, Emerson faces a maximum penalty of 20 years in federal prison.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Manhattan U.S. Attorney Announces the Appointment of Criminal Division ChiefRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the appointment of Lisa Zornberg as Chief of the Office’s Criminal Division.
Ms. Zornberg returns to the Office from the law firm of Lankler, Siffert & Wohl LLP, where she was a partner representing individuals and entities in white collar criminal, complex civil, and regulatory matters. Ms. Zornberg was previously an Assistant United States Attorney in the Office for 14 years, from 1998 to 2012, serving in both the Civil and Criminal Divisions and rising to supervisory ranks in each division. From 2011 to 2012, Ms. Zornberg was chief of the Complex Frauds Unit in the Criminal Division, and from 2004 to 2005, she was Deputy Chief of Appeals in the Civil Division. Ms. Zornberg graduated magna cum laude from Harvard College in 1991 and cum laude from Harvard Law School in 1994. Upon graduation from law school, Ms. Zornberg served as a law clerk to then United States District Judge for the Southern District of New York and now United States Supreme Court Justice Sonia Sotomayor.
In making the appointment, Manhattan U.S Attorney Preet Bharara said: “I am extremely pleased and excited that Lisa Zornberg will be returning to public service as Chief of the Office’s Criminal Division. Lisa was an outstanding AUSA during her prior tour in the Office and has since become an accomplished criminal defense lawyer. I am confident that with her intellect, energy and vision, Lisa will be a terrific Criminal Division Chief. I welcome Lisa’s return, and I thank Joan Loughnane, the Office’s Chief Counsel, who on top of her regular duties has served exceptionally as the Acting Chief of the Criminal Division over the past few weeks.”
Long Beach Man Sentenced to 4 Years in Federal Prison for Misusing Bankruptcy Courts to Operate a Foreclosure Rescue SchemeRead the Press Release
LOS ANGELES – A Long Beach man was sentenced today to four years in federal prison in relation to a mortgage rescue scheme that brought in nearly $3 million from fees from distressed homeowners.
Karl Robinson, 52, was sentenced today by United States District Judge Manuel L. Real, who also ordered the defendant to pay a $10,000 fine.
Robinson pleaded guilty in August to one count of bankruptcy fraud in connection with a five-year scheme he operated under his own name and companies with names such as “Stay In Your Home Today,” “21st Century Development” and “Genesis Ventures Corporation.”
Robinson solicited clients who were facing foreclosure with false promises that he could save their homes. Instead of providing legitimate services to his clients, Robinson filed hundreds of fraudulent bankruptcy petitions that delayed foreclosure and eviction proceedings.
As part of the scheme, Robinson filed falsified grant deeds with county recorders and other fake documents in state court eviction proceedings to make it appear that fictional debtors held interests in the distressed properties. In a plea agreement filed in federal court, Robinson admitted that he misused notary stamps of other individuals in order to fake signatures on legal documents and that he charged distressed homeowners additional fees if they wanted to unwind fake filings.
“This scheme was never about providing assistance to distressed homeowners,” said United States Attorney Eileen M. Decker. “It was about lying to distressed homeowners and collecting fees based on false promises. This defendant abused the bankruptcy system and stole identities to perpetrate his fraudulent scheme.”
The criminal case against Robinson is the result of an investigation by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of the Inspector General (FHFA-OIG).
“Mr. Robinson lured homeowners with empty promises and used his ties to a church to gain their trust and steal their hard-earned money,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI and our partners with the FHFA-OIG and the U.S Attorney's Office will continue to combat schemes that manipulate government rules and target victims faced with losing their homes.”
“Karl Robinson selfishly preyed on the misfortune of others and as a result has been sentenced to prison,” said Leslie P. DeMarco, Special Agent in Charge of FHFA-OIG’s Western Region. “He now has ample time to reflect on his behavior. FHFA-OIG will continue to work with our law enforcement partners to prevent more innocent victims from falling prey to similar schemes and to protect the housing market.”
The case against Robinson was prosecuted by Special Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Local Man Sentenced on Cocaine, Gun ChargesRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who previously pled guilty to a federal drug and gun charges, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Michael Jamal Tucker pled guilty in August 2016 to one count of conspiring to possess with the intent to distribute and to distribute cocaine and cocaine base and one count of being a previously convicted felon illegally in possession of a firearm. Today in District Court, Tucker was sentenced to 133 months in federal prison.
“We must continue to be vigilant in not only prosecuting those individuals who distribute illicit drugs but also by supporting proven and effective treatment and prevention programs,” United States Attorney Fishwick said today.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, the Pulaski County Sheriff’s Office and the Pulaski Police Department. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Largo Drug Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Rolando Oneal Thorpe, age 32, of Largo, Maryland, today to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Danny L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; and Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division.
According to his plea agreement, between September and November 2013, during an investigation of narcotics trafficking, Thorpe was overheard by law enforcement discussing with Marvin Taaff the various types of marijuana that Thorpe was distributing in Maryland. On November 22, 2013, a search warrant was executed at Thorpe’s residence. Law enforcement recovered 12 large ziplock bags containing over five kilograms of marijuana; a scale with drug residue; drug packaging materials; approximately $6,413 in cash; a 10mm handgun, with one round in the chamber and 14 rounds in the magazine; a 27 round capacity ammunition magazine, loaded with 23 rounds of 45 caliber ammunition; and a black laser site for a handgun. Thorpe was at home during the search and admitted that everything found in the apartment belonged to him.
Marvin Taaff, age 29, of Takoma Park, Maryland, was sentenced on June 9, 2016, to 140 months in prison, followed by five years of supervised release, for conspiring to possess with intent to distribute five kilograms or more of cocaine, cocaine base and 100 kilograms or more of marijuana.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department, and Maryland National Capital Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston, Lindsay Eyler Kaplan, and Menaka Kalaskar, who prosecuted the case.
Jamaican Man Pleads Guilty to Conspiracy to Commit FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Corey Buddle, 25, of Brooklyn, NY, pleaded guilty to conspiracy to commit mail and wire fraud before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that the defendant, along with co-conspirators from Jamaica, defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, an elderly man from the Rochester, NY area, was told numerous times in phone calls to send packages of cash to the defendant’s address in Brooklyn, NY. As a result, between May 20 and July 18, 2011, he sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to Buddle.Another victim, an elderly resident of Missouri, was directed to deposit money into Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Buddle’s accounts from July 11, 2012, through April 4, 2013. After April 4, 2013, the victim from Missouri was directed to send cash to the defendant’s residence, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. Some of the money deposited into Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third elderly victim, who lives in Florida, lost $37,000 by wiring the money into Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. This victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes. None of the victims received anything as a result of their “winnings.”
The guilty plea is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero.
Sentencing is scheduled for March 17, 2017, at 12:30 p.m. before Judge Arcara.
Iowa Cancer Clinic and Oncologist to Pay More Than $176,000 to Settle False Claims Act Allegations They Recklessly Billed for Cancer Drugs That Were Unapproved, Misbranded, or Counterfeit and Improperly Upcoded Office Visit ClaimsRead the Press Release
The Hematology and Oncology Center of Iowa, P.C., located in Clive, Iowa, and its only corporate officer, Dr. Magdy Elsawy, have agreed to pay $176,460 to settle allegations that they violated the False Claims Act by submitting false billings for cancer drugs that were not approved, misbranded, or counterfeit, and by submitting office visit claims for visits that were either medically unnecessary or were upcoded to reflect more complex encounters than what actually happened.
The allegations concerning the unapproved, misbranded, or counterfeit cancer drugs relate to drugs the clinic was alleged to have purchased from Medical Device King from February 1, 2012, through June 30, 2012. Earlier this year, on June 2, 2016, the president of Medical Device King, William Scully, was sentenced to 60 months’ imprisonment after a jury found him guilty of 64 felonies for mail and wire fraud, violations of the Food Drug & Cosmetic Act, unlicensed wholesale distribution of prescription drugs, and multiple related conspiracy charges.
“The Northern District of Iowa United States Attorney office is committed to protecting the Medicare program and the taxpayers who help fund it. This settlement will help ensure that our federal health care programs are utilized properly so they continue to serve those who need them most,” said United States Attorney Kevin W. Techau. “Health care providers who cut corners will be held responsible.”
“U.S. consumers and patients rely on the FDA to ensure that the medicines they take are safe and effective; the public’s health is at risk when unapproved, misbranded or counterfeit drugs enter the marketplace,” said Spencer E. Morrison, Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to direct our efforts to protecting the public’s health.”
This investigation was led by the Food and Drug Administration and conducted jointly with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Greene County Woman Admits Stealing $3.1 Million from Cargill, Inc.Read the Press Release
ALBANY, NEW YORK – A Greene County, New York, woman pled guilty today to stealing at least $3.1 million from Cargill, Inc. (“Cargill”) over 10 years and causing at least $25 million in losses. The woman was an accounting manager at Cargill, the country’s largest privately held corporation, based in Minnetonka, Minnesota.
The announcement was made by U.S. Attorney Richard S. Hartunian; Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division; and Special Agent in Charge Shantelle P. Kitchen of Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office.
Diane Backis, age 50, of Athens, New York, pled guilty to mail fraud and filing a false income tax return. Backis was responsible for accounting functions related to Cargill’s grain operations in Albany, including creating customer contracts, generating and mailing invoices, and receiving and processing customer payments. As part of her plea, Backis admitted that she defrauded Cargill while working in its Port of Albany facility, which receives, stores, and sells grain products.
U.S. Attorney Richard S. Hartunian said, “Ms. Backis stole millions of dollars from her employer in a decade-long scheme to enrich herself so she could live beyond her means. She stole money by diverting customer payments to her personal bank accounts and sold grain products for millions less than her employer paid, causing enormous financial losses. Her guilty plea today sends a strong message that crime does not pay.”
FBI Special Agent-in-Charge Andrew W. Vale said, “Ms. Backis repeatedly victimized her employer. This kind of fraud is a sinister act that involves not only criminality but a willingness to cause Cargill, Inc. millions in losses. The FBI will continue to work together with its law enforcement partners to ensure people like Ms. Backis are held accountable.”
IRS-CI Special Agent-in-Charge Shantelle P. Kitchen said, “This investigation demonstrates the resolve of the government to investigate and prosecute financial crimes. Ms. Backis stole millions of dollars from Cargill, Inc. for a 10-year period, while committing tax fraud in the process. Today, she is held accountable for the financial harm she inflicted on Cargill, Inc. and the law-abiding American taxpayer.”
As part of her plea, Backis admitted that she stole hundreds of customer payments sent to Cargill totaling at least $3,115,610 and deposited them into her personal bank accounts. Backis also regularly created fraudulent invoices and mailed them to Cargill’s customers. The fraudulent invoices charged Cargill’s customers prices substantially less than what Cargill paid to acquire the grain products, causing Cargill significant financial losses. The fraudulent invoices also directed Cargill’s customers to send payment directly to Backis, thereby bypassing Cargill’s corporate controls. To hide her activities, Backis made false entries into Cargill’s accounting software to make it appear that customers were paying prices higher than those in her fraudulent invoices, and that customers owed Cargill millions of dollars for delivered grain products, only to reverse those false entries. As a result, Cargill lost at least $25 million.
Backis also admitted that she filed a false 2015 individual income tax return because she declared only $61,208 in total income and omitted over $450,000 in additional taxable income she received by stealing customer payments intended for Cargill in 2015.
Backis faces up to 20 years in prison, a 3-year term of supervised release, and a fine of up to $250,000 when she is sentenced on March 28, 2017 by U.S. District Judge Mae A. D’Agostino. As part of her guilty plea, Backis has agreed to pay Cargill at least $3.5 million in restitution, and to forfeiture of her house in Athens, an investment brokerage account, and her Cargill pension benefits. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.