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22 November 2016
Sesser Man Sentenced for Bankruptcy FraudRead the Press Release
Earlier today, Scott L. Thompson, 45, of Sesser, IL, was sentenced in federal court in Benton, Illinois, on his bankruptcy fraud conviction, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The court sentenced Thompson to one year of probation and ordered him to pay a fine and special assessment totaling $800. Thompson was indicted on February 2, 2016, as part of an effort to crackdown on those who commit fraud during the course of bankruptcy proceedings in the U.S. Bankruptcy Court for the Southern District of Illinois.
"This case is part of our continuing efforts to prosecute those who use the Federal Bankruptcy Court system to defraud their creditors," Mr. Boyce explained.
The indictment charged Thompson with concealing assets in a bankruptcy case. When he pled guilty on June 15, 2016, Thompson admitted that he concealed from the Bankruptcy Court a $28,129 settlement he received for a worker’s compensation claim. Thompson also admitted that he concealed from the Bankruptcy Court his federal tax returns and failed to disclose those tax returns, as the Bankruptcy Court had ordered. Thompson’s chapter 13 bankruptcy case was filed and litigated in the United States Bankruptcy Court in Benton, Illinois.
"Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system," stated Nancy J. Gargula, U.S. Trustee for Southern Illinois, Central Illinois and Indiana (Region 10). "I am grateful to U.S. Attorney Donald Boyce and our law enforcement partners for their commitment to combating bankruptcy-related crimes, as demonstrated by today’s sentencing." The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
The charges resulted from a referral by the U.S. Trustee and the investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI") with assistance from members of the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case was prosecuted by Assistant United States Attorney Scott A. Verseman.
Serial Armed Robber Sentenced to 20 Years in Federal Prison for His Role in Four Armed RobberiesRead the Press Release
DALLAS —Devonte Aaron Dillard, 24, was sentenced yesterday by U.S. District Judge Sam A. Lindsay to serve a total of 240 months in federal prison for his role in committing several violent armed robberies in Dallas in 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Dillard pleaded guilty in July 2016 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence. Judge Lindsay sentenced him to 120 months on each of the two counts, to run consecutively.
Three of Dillard’s codefendants in the case, Colby Cole Ditto, 21, Tatiana Renee Sallie, 20, and Trenton Kyle Sirkel, 21, have pleaded guilty to their respective roles in the conspiracy and are awaiting sentencing. Lead defendant Michael Deshun Holland, Jr., 22, is currently set to go to trial February 6, 2017, before Judge Lindsay.
According to documents filed in the case, the five defendants discussed and planned with each other, among other thing, the robberies of convenience stores located in Mesquite and Garland, Texas.
On April 17, 2015, while Sallie waited in the car, Dillard and Holland entered the Chevron Food Mart on Highway 80 in Mesquite and brandished a firearm. Dillard shot the store employee while he and Holland robbed the store.
On May 8, 2015, Dillard, Holland, Ditto and Sirkel entered the 7-Eleven store on Interstate Highway 30 in Mesquite, brandished a firearm, and robbed the store.
On May 12, 2015, Dillard, Holland, Ditto and Sallie entered the 7-Eleven store on Gus Thomasson Road in Mesquite, brandished a firearm, struck an employee in the head with the firearm, and robbed the store.
That same night, Dillard, Holland, Ditto and Sallie went to the 7-Eleven store on Northwest Highway in Garland, brandished a firearm, assaulted a store employee, and robbed the store.
The case was investigated by Mesquite Police Department, Garland Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Jamie Hoxie and Keith Robinson are in charge of the prosecution.
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Second ECI Correctional Officer Pleads Guilty to Racketeering Conspiracy and Civil Rights ViolationRead the Press Release
Baltimore, Maryland – Correctional Officer Stephen Wise, age 34, of Pocomoke, Maryland, pleaded guilty today to his participation in a racketeering conspiracy operating at the Eastern Correctional Institution in Westover, Maryland. Wise also pleaded guilty to a civil rights violation, deprivation of rights under color of law, for participating in the stabbing of an inmate.
The 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; Postal Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service - Washington Division; Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and court documents, the Eastern Correctional Institution (ECI) is the largest state prison in Maryland, operating near Westover, in Somerset County, on Maryland’s Eastern Shore. During the conspiracy, Wise was a Correctional Officer (CO) at ECI.
Wise admitted that he accepted bribes from at least eight inmates to smuggle contraband into ECI, including narcotics, cell phones and tobacco. Wise generally charged approximately $500 per package of contraband he smuggled into ECI. Law enforcement intercepted multiple calls and texts in which Wise and the inmates discussed contraband, and arranged payment for contraband.
According to the plea agreement, Wise smuggled contraband in exchange for bribes for a co-defendant, who was a leader of the Dead Man Incorporated (DMI) prison gang at ECI. On July 31, 2016, Wise induced the DMI leader to arrange the assault of an inmate who had filed a complaint against Wise that caused Wise to be removed from the housing unit. At the time he was removed, Wise had been given approximately $1500 by the DMI leader for contraband that he had not yet brought into the unit. Wise told multiple inmates, including the co-defendant, that the inmate who filed the complaint had to be taken out of the unit before Wise could be reassigned there. Wise knew that if an inmate is physically assaulted he is removed from a housing unit for his own safety. On July 31, 2016, the inmate who filed the complaint was assaulted and stabbed by several inmates who were members of the Cripps prison gang, and who had been paid $500 to do so by Wise’s co-defendant.
Wise faces a maximum sentence of 20 years in prison for the racketeering conspiracy, and a maximum of 10 years in prison for deprivation of rights under color of law for his participation in the stabbing of an inmate. U.S. District Judge James K. Bredar has scheduled sentencing for Wise on February 17, 2017 a 10:00 a.m.
The U.S. Attorney expressed appreciation to Secretary Moyer whose staff initiated the ECI investigation and who has made the full resources of the DPSCS available to assist the three-year investigation. U.S. Attorney Rosenstein also recognized the efforts of the Maryland Prison Task Force which has brought together federal, state and local agencies in meetings to generate reforms in prison procedures and facilitate joint investigations of prison corruption and prison gangs. Mr. Rosenstein thanked the members of the Maryland Prison Task Force and the and other agencies who assisted in this investigation and prosecution.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service, Department of Public Safety and Correctional Services, the Baltimore Police Department and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leo J. Wise, Robert R. Harding, and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
San Francisco Resident Pleads Guilty to A String of Bank and Credit Union RobberiesRead the Press Release
SAN FRANCISCO – Yolanda Brown, AKA Yo-Yo, pleaded guilty in federal court in San Francisco late yesterday to five robberies of Bay Area banks and credit unions, the unlawful possession of a firearm, and distribution of methamphetamine, announced United States Attorney Brian Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder.
In pleading guilty, Brown, 48, of San Francisco, admitted to robbing the following banks and credit unions:
Date
Bank / Credit Union
Location
January 11, 2016
Wells Fargo
2055 Chestnut Street, San Francisco, CA
January 13, 2016
Patelco Credit Union
1358 Fairmont Drive, San Leandro, CA
February 19, 2016
Patelco Credit Union
1358 Fairmont Drive, San Leandro, CA
June 9, 2016
Citibank
2400 19th Avenue, San Francisco, CA
June 16, 2016
Wells Fargo
3365 Deer Valley Road, Antioch, CA
In her plea agreement, Brown also admitted to being a convicted felon in possession of a firearm and to possessing with intent to distribute and distributing more than fifty grams of methamphetamine.
On October 20, 2016, a federal grand jury formally indicted Brown for the robberies and unlawful possession of a firearm. The indictment charged her with five counts of bank or credit union robbery, in violation of 18 U.S.C. § 2113(a), and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Further, on September 15, 2015, Brown was indicted for distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1). Under the plea agreement, Brown pled guilty to all charges in both indictments.
Brown is currently in custody. Brown’s sentencing hearing is scheduled for February 27, 2017, at 2:30 PM before the Honorable Thelton E. Henderson, U.S. District Judge, in San Francisco. The maximum statutory penalties for each count of bank robbery is 20 years’ imprisonment, a fine of $250,000, and applicable restitution. The maximum statutory penalties for being a felon in possession of a firearm is 10 years’ imprisonment and a fine of $250,000. The maximum statutory penalties for possession with intent to distribute and distribution of 50 grams or more of actual methamphetamine is life in prison, a minimum prison term of ten years, and a fine of $10,000,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Scott D. Joiner is prosecuting the case with the assistance of Lance Libatique, Christine Tian, and Linda Love. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Francisco Police Department, the San Leandro Police Department, and the Antioch Police Department.
San Antonio Accountant Sentenced for Obstructing the IRSRead the Press Release
In San Antonio today, Richard Molina Soto, owner of RMS & Associates, was sentenced to federal prison for his role in corruptly obstructing the internal revenue laws by failing to pay over $280,000 to the Internal Revenue Service on behalf of his clients, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Appearing before United States District Judge David Alan Ezra, Soto was sentenced to 25 months in federal prison, ordered to pay $229,963.14 in restitution and will be placed on supervised release for a period of one year after completing his prison term.
On April 11, 2016, Soto appeared before United States Magistrate Judge Pamela Mathy, Soto pleaded guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws.
According to court records, from November 2009 to November 2011, Soto convinced his clients that he was a Certified Public Accountant who could prepare their income tax returns. Once the tax forms had been completed, Soto told his clients their balance due and provided them with the option of paying through RMS what they owed the IRS. Ultimately, Soto stole monies from clients who chose to pay through RMS. The total amount which Soto should have, but failed to pay to the IRS on behalf of his clients, was $282,107.01.
Soto will remain on bond pending designation to a federal prison facility.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation.
Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Rochester Man Sentenced for Sex Trafficking of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Harris Hickman, 33, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 188 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in March 2014, Hickman trafficked a 15-year-old minor by posting photographs of the minor in advertisements on Backpage.com., knowing the minor’s age and that the minor would be caused to engage in prostitution activity. Hickman also benefitted financially from the prostitution activities of the minor by getting part of the proceeds.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, under the direction of Special Agent in Charge Adam S. Cohen and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Rensselaer Felon Sentenced to 46 Months for Possessing a Single BulletRead the Press Release
ALBANY, NEW YORK – Tyron S. Jackson, age 28, of Rensselaer, New York, was sentenced yesterday to 46 months in prison, to be followed by 3 years of supervised release, after pleading guilty to unlawfully possessing a single bullet.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Senior U.S. District Judge Gary L. Sharpe cited the defendant’s criminal history, including a 2006 conviction for robbery in the first degree and a May 2016 conviction for unlawful possession of a firearm, in explaining why the 46-month sentence was warranted.
As part of his guilty plea on June 20, 2016, Jackson admitted to possessing a single 9 millimeter Luger bullet during a September 25, 2015 traffic stop conducted by the Niskayuna Police Department on Albany Street in Schenectady County. As a felon, he could not possess the Luger bullet.
This case was investigated by the ATF and the Niskayuna Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Randolph County Man Sentenced for Methamphetamine and Heroin OffensesRead the Press Release
On November 22, 2016, Franklin Scott Denault, a/k/a "Frankie D," 39, of Steeleville, was sentenced for methamphetamine and heroin offenses, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Deanault, who had previously pled guilty to a two-count indictment charging conspiracy to distribute methamphetamine and conspiracy to distribute heroin, was sentenced to 125 months imprisonment, 3 years supervised release, and fined $600.00. Evidence at the plea and sentencing hearings established that Denault was involved with others in distributing both heroin and methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Denault and others made multiple trips to St. Louis to obtain dealer amounts of heroin. Denault also distributed ice to numerous individuals. At sentencing, the judge found that Denault was responsible for the distribution of over 108 grams of ice and 43 grams of heroin. The offenses occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Ten co-defendants have previously been sentenced for their role in the drug conspiracies. One co-defendant has pled guilty and is awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County States Attorney’s Offices also assisted in the investigation.
President Obama Grants CommutationsRead the Press Release
Today, the President granted commutation of sentence to the following 79 individuals:
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Lawrence Daro Adams – Houston, TX
Offense: Possession with intent to distribute 500 grams or more of cocaine, aiding and abetting; Southern District of Texas
Sentence: 240 months' imprisonment; five years' supervised release; $5,000 fine (July 20, 2001)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Tyrone Allen – Lubbock, TX
Offense: Aiding and abetting possession with intent to distribute more than 50 grams of cocaine base; Western District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (March 25, 2003)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Anthony Arthur – Killeen, TX
Offense: Conspiracy to possess with intent to distribute at least 50 grams of "crack cocaine"; Western District of Texas
Sentence: 210 months' imprisonment; five years' supervised release; $1,000 fine (August 3, 2005)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Lisa Woods Ball – Sugar Grove, VA
Offense: Conspiracy to distribute more than 500 grams of methamphetamine; Western District of Virginia
Sentence: 240 months' imprisonment; 10 years' supervised release (March 3, 2009)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
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Curtis A. Beasley – Greer, SC
Offense: Conspiracy to possess with intent to distribute five grams or more but less than 50 grams of crack cocaine; possession with intent to distribute five grams or more of crack cocaine; District of South Carolina
Sentence: 408 months' imprisonment; eight years' supervised release (August 16, 2004)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Efrem Berry – Americus, GA
Offense: Possession with intent to distribute a detectable amount of cocaine; possession with intent to distribute less than 50 kilograms of marijuana; possession with intent to distribute a detectable amount of 3,4 methylenedioxymethamphetamine, aka MDMA; Middle District of Georgia
Sentence: 235 months' imprisonment; six years' supervised release (November 9, 2006)Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment.
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Albert Betemit – New York, NY
Offense: Conspiracy to distribute in excess of five kilograms of powder cocaine and 50 grams of cocaine base; possession with intent to distribute cocaine (three counts); distribution of cocaine; possession with intent to distribute in excess of 50 grams of cocaine base (two counts); distribution in excess of 50 grams of cocaine base (two counts); unlawful use of a communication facility; Eastern District of Virginia
Sentence: Life imprisonment; four years' supervised release (September 25, 1996)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
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Carroll Edgar Blevins, Jr. – Abingdon, VA
Offense: 1. Distribution of methamphetamine (two counts); Western District ofVirginia
2. Supervised release violation (possession of a firearm by a convicted felon (two counts)); Western District of Virginia
Sentence: 1. 188 months' imprisonment; six years’ supervised release (November 3,
2006)
2. 51 months' imprisonment (consecutive); one year's supervised release (November 3, 2006)
Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Kerwin Blount – New Haven, CT
Offense: Conspiracy to distribute cocaine and cocaine base; District of Connecticut
Sentence: 292 months' imprisonment; 10 years' supervised release (May 18, 2000)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Tramiere Broughton – Clinton, IA
Offense: Conspiracy to distribute cocaine base ("crack"); Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (October 3, 2002)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Thomas Brown – Miami, FL
Offense: Possession with intent to distribute at least five kilograms of cocaine; Southern District of Florida
Sentence: Life imprisonment (October 24, 1989)Commutation Grant: Prison sentence commuted to expire on November 22, 2017.
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Christopher Carlton Bryson – Davenport, IA
Offense: Conspiracy to distribute and to possess with intent to distribute heroin and marijuana, each a schedule I controlled substance, and cocaine and cocaine base ("crack"), each a schedule II controlled substance; money laundering; Southern District of Iowa
Sentence: 360 months' imprisonment; five years' supervised release (February 9, 2001)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Earl Cain – Springfield, MA
Offense: Conspiracy to possess with intent to distribute cocaine base; District of Massachusetts
Sentence: 262 months' imprisonment; five years' supervised release (February 15, 2001)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Christopher Michael Calloway – Hampton, VA
Offense: Possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime; Eastern District of Virginia
Sentence: 181 months' imprisonment; five years' supervised release (June 18, 2007); amended to 180 months' imprisonment (June 9, 2008)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Jermaine Lewis Carter – Davenport, IA
Offense: Conspiracy to distribute at least 50 grams of cocaine base; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (April 24, 2009)Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Jimmy Carter, Jr. – Montgomery, AL
Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine hydrochloride (two counts); possession of cocaine hydrochloride; possession with intent to distribute cocaine base; Middle District of Alabama
Sentence: 360 months' imprisonment; 10 years' supervised release (September 23, 2003)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Mark Clifton – Brooklyn, NY
Offense: Conspiracy to distribute and possession with intent to distribute cocaine base (crack); possession with intent to distribute cocaine base (crack) and aiding and abetting; Eastern District of North Carolina
Sentence: 360 months' imprisonment; 10 years' supervised release; $7,500 fine (May 28, 1997)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, and unpaid balance of $7,500 fine remitted, conditioned upon enrollment in residential drug treatment.
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Dewayne Damper – Fontana, CA
Offense: Possession with intent to distribute "crack" cocaine base; Southern District of Mississippi
Sentence: 360 months' imprisonment; eight years' supervised release; $4,500 fine (April 20, 1999); amended to 360 months' imprisonment; six years' supervised release; $4,500 fine (May 12, 2004)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Johnny Davis – Florence, SC
Offense: Conspiracy to possess with intent to distribute and distribution of five kilograms or more of cocaine and 50 grams or more of cocaine base, commonly known as crack cocaine; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (February 4, 2004)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Roy Edward Detreville, Jr. – Winter Garden, FL
Offense: Conspiracy to possess with intent to distribute 50 grams or more of crack cocaine; Middle District of Florida
Sentence: 262 months' imprisonment; five years' supervised release (February 8, 2005)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Luis Diaz – Winter Park, FL
Offense: Conspiracy to possess with intent to distribute heroin, and conspiracy to possess with intent to distribute cocaine hydrochloride; Middle District of Florida
Sentence: Life imprisonment; five years' supervised release (July 25, 1996); amended to 360 months' imprisonment (July 1, 2015)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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William Henry Dudley – Atlanta, GA
Offense: Conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing cocaine base; possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base; possession of a firearm by a convicted felon; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release; $1,000 fine (April 27, 2006)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Reginald Leon Edwards – Chatham, VA
Offense: Conspiracy to distribute 50 grams or more of cocaine base; possession of a firearm in furtherance of a drug trafficking crime; Western District of Virginia
Sentence: 181 months' imprisonment; five years' supervised release; $400 fine (August 3, 2007); amended to 180 months' imprisonment (October 22, 2008)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Timothy John Ehrmann – Minneapolis, MN
Offense: Conspiracy to distribute methamphetamine and ecstasy; aiding and abetting to distribute ecstasy (two counts); aiding and abetting to distribute methamphetamine (three counts); possession with intent to distribute methamphetamine; District of Minnesota
Sentence: 360 months' imprisonment; five years' supervised release (March 5, 2004); amended to 292 months' imprisonment (September 12, 2016)Commutation Grant: Prison sentence commuted to a term of 228 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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P.W. Ferguson – Columbia, SC
Offense: Conspiracy to possess with intent to distribute and distribution of 50 grams or more of cocaine base; possession with intent to distribute and distribution of a quantity of cocaine base, aiding and abetting; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (May 31, 2007)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Darryl D. Fields – Harvey, IL
Offense: Conspiracy to distribute 50 grams or more of crack cocaine; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (June 8, 2009)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Timothy Fields – Mesquite, TX
Offense: Conspiracy; possession with intent to distribute controlled substance, aiding and abetting (three counts); use and carry firearm during drug trafficking crime; Northern District of Texas
Sentence: Life plus 60 months' imprisonment; five years' supervised release (February 16, 1994)Commutation Grant: Prison sentence commuted to a term of 465 months' imprisonment.
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Tyris Ford – Philadelphia, PA
Offense: Conspiracy to distribute cocaine base ("crack"); distribution of cocaine base ("crack") or possession with intent to distribute cocaine base ("crack"); carrying a firearm during a drug trafficking crime; Eastern District of Pennsylvania
Sentence: 300 months' imprisonment; 10 years' supervised release (January 5, 2001)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Eric Cornell Foster – Bladensburg, MD
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; Eastern District of Michigan
Sentence: Life imprisonment (December 11, 2007)Commutation Grant: Prison sentence commuted to a term of 175 months' imprisonment.
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Osvaldo Richard Gonzalez – Sylmar, CA
Offense: Conspiracy to distribute methamphetamine; possession of firearm in furtherance of a drug trafficking offense; Southern District of Iowa
Sentence: 180 months' imprisonment; five years' supervised release (September 7, 2007)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Jamere Ireadus Hall – Kissimmee, FL
Offense: Possession with intent to distribute cocaine and cocaine base; felon in possession of firearm; District of Maryland
Sentence: 360 months' imprisonment; 10 years' supervised release (August 1, 2005)Commutation Grant: Prison sentence commuted to a term of 210 months' imprisonment.
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Avery Hardy – Smithville, GA
Offense: Possession with the intent to distribute more than 50 grams of crack cocaine; Middle District of Georgia
Sentence: Life imprisonment; 10 years' supervised release (January 12, 2006)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Donikki Hardy – Pacolet, SC
Offense: Possession with intent to distribute crack cocaine; District of South Carolina
Sentence: 480 months' imprisonment; five years' supervised release (November 26, 2002); amended to 300 months' imprisonment (October 28, 2008); amended to 299 months' imprisonment (February 5, 2014)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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William Crawford Hardy, III – Roanoke, VA
Offense: Distribute 50 grams or more of cocaine base; Western District of Virginia
Sentence: 240 months' imprisonment; 10 years' supervised release (February 7, 2006)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Robert Jeffrey Harris – Fort Walton Beach, FL
Offense: Conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute 50 grams or more of cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (December 12, 2006)Commutation Grant: Prison sentence commuted to a term of 210 months' imprisonment.
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Jeff Hendricks – Seagoville, TX
Offense: Conspiracy to possess with intent to distribute and to distribute more than 500 grams of methamphetamine; conspiracy to possess a List I chemical to manufacture methamphetamine; Northern District of Texas
Sentence: 360 months' imprisonment; five years' supervised release (May 9, 2002); amended to 324 months' imprisonment (April 1, 2016)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Warren Lavell Jackson – Port St. Lucie, FL
Offense: Possession with intent to distribute cocaine; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (March 7, 2000)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
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Timothy Johnson – Georgetown, SC
Offense: Conspiracy to possess with intent to distribute and distribution of cocaine base; possession with intent to distribute cocaine base; using and carrying a firearm during and in relation to a drug trafficking crime; District of South Carolina
Sentence: 180 months' imprisonment; five years' supervised release (February 28, 2006)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Paul Kinney – Anaheim, CA
Offense: Conspiracy to distribute and possess with the intent to distribute in excess of 500 grams of methamphetamine; Eastern District of Missouri
Sentence: 235 months' imprisonment; five years' supervised release (April 19, 2006); amended to 210 months' imprisonment (December 19, 2014)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Daniel Lee Larsen – West Valley City, UT
Offense: Possession of methamphetamine with intent to distribute; conspiracy or attempt to manufacture methamphetamine (two counts); establishment of a manufacture operation; possession of a listed chemical (two counts); possession of a firearm in furtherance of a drug trafficking offense; District of Utah
Sentence: 384 months' imprisonment; five years' supervised release; $2,000 restitution (January 7, 2002)Commutation Grant: Prison sentence commuted to a term of 270 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Darrius Lewis – McComb, MS
Offense: Conspiracy to distribute cocaine base; Southern District of Mississippi
Sentence: 262 months' imprisonment; three years' supervised release (May 20, 2005)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
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Robert Lum – Waimanalo, HI
Offense: Conspiracy to distribute and possess with intent to distribute in excess of 50 grams of methamphetamine; District of Hawaii
Sentence: 240 months' imprisonment; 10 years' supervised release (November 28, 2005)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Karliss Lyttle – St. Louis, MO
Offense: Conspiracy to distribute and possess with intent to distribute more than 50 grams of cocaine base; distribution of less than five grams of cocaine base (two counts); Southern District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release; $500 fine (April 22, 2004)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Ryan W. Magro – Dunstable, MA
Offense: Possession with intent to distribute a controlled substance; District of Massachusetts
Sentence: 180 months' imprisonment; three years' supervised release (May 22, 2007)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Orlando Keith McCord – Flint, MI
Offense: Possession with intent to distribute five grams or more of cocaine base; Eastern District of Michigan
Sentence: 180 months' imprisonment; eight years' supervised release (April 19, 2007)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Donna Sue McDaniel – Boyd, TX
Offense: Distribution of 219.6 grams of methamphetamine; Northern District of Texas
Sentence: 360 months' imprisonment; five years' supervised release (September 27, 1996)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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John E. McNeill – Washington, DC
Offense: Possession with intent to distribute 100 grams or more of phencyclidine, commonly known as PCP; conspiracy to distribute 100 grams or more of a mixture or substance containing a detectable amount of phencyclidine, commonly known as PCP; District of Kansas
Sentence: 240 months' imprisonment; 10 years' supervised release (February 23, 2004)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Frantz Michel – Brooklyn, NY
Offense: Conspiracy to possess with intent to distribute and to distribute heroin, cocaine, and cocaine base; Eastern District of Virginia
Sentence: Life imprisonment; five years' supervised release (January 31, 2003); amended to 300 months' imprisonment (November 1, 2011); amended to 235 months' imprisonment (November 2, 2015)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Vernard Mitchell – Washington, DC
Offense: Unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year; unlawful possession with intent to distribute five grams or more of cocaine base; unlawful possession with intent to distribute heroin; unlawful possession with intent to distribute cannabis; District of Columbia
Sentence: 262 months' imprisonment; five years' supervised release (March 30, 2007)Commutation Grant: Prison sentence commuted to a term of 210 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Robert L. Moffitt – Fort Worth, TX
Offense: Conspiracy to possess and distribute cocaine base; distribution of cocaine base; maintaining a drug-involved premises (two counts); Northern District of Texas
Sentence: 360 months' imprisonment; six years' supervised release (April 10, 2006); amended to 292 months' imprisonment (January 12, 2012)Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.
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Ward Everette Mohler – Linville, VA
Offense: Conspiracy to possess with intent to distribute and distribution of methamphetamine; distribution of Lysergic Acid Diethylamide (three counts); carry firearm during drug trafficking (two counts); possession of firearm by a convicted felon (two counts); distribution of methamphetamine (nine counts); Western District of Virginia
Sentence: 469 months' imprisonment; three years' supervised release (April 23, 1992); amended to 436 months' imprisonment (March 18, 2016)Commutation Grant: Prison sentence commuted to expire on December 22, 2016.
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Michael Toriano Morris – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute and distribute cocaine and cocaine base; Western District of North Carolina
Sentence: 360 months' imprisonment; five years' supervised release (August 19, 2004); amended to 292 months’ imprisonment (November 23, 2015)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Jerry Lee Mutchler – Riverton, IA
Offense: Conspiracy to manufacture and distribute methamphetamine; Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 4, 2005)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Victor Robert Nava, Sr. – Billings, MT
Offense: Conspiracy to distribute methamphetamine and marijuana; distribution of marijuana; possession of methamphetamine with intent to distribute; distribution of hydrocodone; possession of morphine with intent to distribute; possession of codeine with intent to distribute; District of Montana
Sentence: Life imprisonment; 10 years' supervised release (May 22, 2002)Commutation Grant: Prison sentence commuted to a term of 270 months' imprisonment.
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Cathy Lea Neal – Council Bluffs, IA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual (pure) methamphetamine; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised (September 24, 2009)Commutation Grant: Prison sentence commuted to expire on May 21, 2017.
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Jose Otero – Worcester, MA
Offense: Possession of cocaine with intent to distribute; District of Massachusetts
Sentence: 262 months' imprisonment; eight years' supervised release (June 29, 2006)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Tilman Rufus Partin – Frakes, KY
Offense: Conspiracy to distribute cocaine; possession with intent to distribute cocaine, aiding and abetting; Eastern District of Kentucky
Sentence: Life imprisonment; 10 years' supervised release (October 10, 1997)Commutation Grant: Prison sentence commuted to a term of 324 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Mario A. Powell – Kansas City, MO
Offense: Conspiracy to distribute 50 grams or more of "crack" cocaine; Western District of Missouri
Sentence: 240 months' imprisonment; 10 years' supervised release (April 16, 2009)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Roosevelt Terence Jerome Rayford – Sherman, TX
Offense: Conspiracy to manufacture, distribute, possess, or dispense cocaine base (crack) or marijuana; Eastern District of Texas
Sentence: 326 months' imprisonment; five years' supervised release; $2,000 fine (July 1, 2003); amended to 300 months’ imprisonment (April 29, 2004)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.
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Eddie James Reed – Albany, GA
Offense: Possession with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute five grams or more of cocaine base; Middle District of Georgia
Sentence: 262 months' imprisonment; five years' supervised release (February 28, 2008)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Jose Rodriguez – Camden, NJ
Offense: Conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin and more than 50 grams of cocaine base; District of New Jersey
Sentence: 360 months' imprisonment; five years' supervised release; $10,000 fine (April 27, 2006); amended to 235 months' imprisonment (August 28, 2015)Commutation Grant: Prison sentence commuted to expire on March 22, 2017 and unpaid balance of the $10,000 fine remitted.
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Cynthia Valdez Shank – Lansing, MI
Offense: Conspiracy to possess with intent to distribute and to distribute more than five kilograms of powder cocaine, 50 grams of cocaine base, and/or 1,000 kilograms of marijuana; possession with intent to distribute five kilograms or more of cocaine; possession with intent to distribute 50 grams or more of cocaine base (crack cocaine); possession with intent to distribute 40 pounds of marijuana; Western District of Michigan
Sentence: 180 months' imprisonment; five years' supervised release; $10,000 fine (February 29, 2008)Commutation Grant: Prison sentence commuted to expire on March 22, 2017, and unpaid balance of the $10,000 fine remitted.
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Artis Sherman – Allen, TX
Offense: Conspiracy in the possession with intent to distribute more than 50 grams of crack cocaine; Western District of Texas
Sentence: 300 months' imprisonment; 10 years' supervised release (November 30, 2007)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Carnell Smith – Hazel Crest, IL
Offense: 1. Conspiracy to distribute and possess with intent to distribute mixturescontaining cocaine; Northern District of Illinois
2. Possession of a prohibited object by a prison inmate; Eastern District of Arkansas
Sentence: 1. 262 months' imprisonment; five years’ supervised release (February 11, 2001)
2. Seven months' imprisonment (consecutive) (January 5, 2012)
Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Marco Strickland – Detroit, MI
Offense: Attempted possession with intent to distribute a controlled substance; Eastern District of Michigan
Sentence: Life imprisonment (October 24, 2007)Commutation Grant: Prison sentence commuted to 168 months' imprisonment.
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Tony Taylor – Dunn, NC
Offense: Conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base (crack); distribution and possession with intent to distribute more than five grams of cocaine base (crack) (five counts); distribution and possession with intent to distribute more than 50 grams of cocaine base (crack); Eastern District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (December 4, 2007)Commutation Grant: Prison sentence commuted to a term of 293 months' imprisonment.
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Deborah Theeler – Sioux City, IA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture and 50 grams or more of actual (pure) methamphetamine following two prior felony convictions; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (September 18, 2007)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Damarlon Cenaka Thomas – Saginaw, MI
Offense: Distribution of five grams or more of cocaine base; Eastern District of Michigan
Sentence: 230 months' imprisonment; eight years' supervised release (November 20, 2008)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Dexter Bert Tyson – Orlando, FL
Offense: Conspiracy to distribute and possess with intent to distribute a mixture containing cocaine base and a mixture containing cocaine; possession with intent to distribute a mixture containing cocaine base and cocaine, aiding and abetting; possession with intent to distribute a mixture containing cocaine, aiding and abetting (two counts); possession of a firearm with an obliterated serial number in furtherance of a drug trafficking crime, aiding and abetting; possession of a firearm with an obliterated serial number, aiding and abetting, felon in possession of a firearm; felon in possession of ammunition; District of Maryland
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (January 13, 2006)Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.
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Lavan Maurice Walker – Miami, FL
Offense: Possession with intent to distribute a detectable amount of heroin (two counts); possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; Southern District of Florida
Sentence: 420 months' imprisonment; six years' supervised release (March 9, 2004)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Jamie Warfield – Cape Girardeau, MO
Offense: Possession with intent to distribute cocaine base (two counts); possession of a firearm in furtherance of a drug trafficking crime; Eastern District of Missouri
Sentence: 180 months' imprisonment; eight years' supervised release (July 20, 2005)Commutation Grant: Prison sentence commuted to expire on May 21, 2017
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Lamar Webster – Concord, CA
Offense: Conspiracy to possess with intent to distribute methamphetamine; possession with intent to distribute methamphetamine; money laundering conspiracy; money laundering; District of Montana
Sentence: Life imprisonment (April 17, 2009)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Sterling Kenneth Westberry – Pensacola, FL
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (September 15, 1998)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Travis L. Wilken – Midvale, UT
Offense: Possession with intent to distribute five grams or more of actual methamphetamine; District of Utah
Sentence: 235 months' imprisonment; eight years' supervised release (February 2, 2006)Commutation Grant: Prison sentence commuted to expire on November 22, 2018, conditioned upon enrollment in residential drug treatment.
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Derrick Maurice Williams – Durham, NC
Offense: Possessed with intent to distribute cocaine base (crack); Middle District of North Carolina
Sentence: 262 months' imprisonment; five years' supervised release (November 2, 2000)Commutation Grant: Prison sentence commuted to expire on May 21, 2017.
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Jacobi Lamont Williams – Greensboro, NC
Offense: Distributed cocaine base (crack); Middle District of North Carolina
Sentence: 262 months' imprisonment; eight years' supervised release (August 24, 2006)Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.
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Nelson Williams – Hammond, LA
Offense: Possession with intent to distribute cocaine base (two counts); distribution of cocaine base; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon; Eastern District of Louisiana
Sentence: 240 months' imprisonment; eight years' supervised release (July 21, 2004)Commutation Grant: Prison sentence commuted to expire on March 22, 2017.
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Darvell D. York – Chicago, IL
Offense: Delivery of a controlled substance; Northern District of Illinois
Sentence: 360 months' imprisonment; 10 years' supervised release (January 8, 2007)Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
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Myron Young – Louisville, KY
Offense: Conspiracy to possess with intent to distribute cocaine base; Western District of KentuckySentence: Life imprisonment; 10 years' supervised release (July 20, 2010)
Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.
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Owner of Medical Equipment Provider Pleads Guilty to Collecting a Debt by Extortion and to Health Care Fraud ConspiracyRead the Press Release
Baltimore, Maryland –Harry Crawford, age 56, of Baltimore, Maryland, pleaded guilty today to collection of a debt by extortionate means from victim David Wutoh. Co-defendant Matthew Hightower, age 34, also of Baltimore, was convicted of extortion and the murder of David Wutoh on September 22, 2016, after a seven-day trial.
Crawford also pleaded guilty to conspiracy to commit health care fraud in connection with schemes to defraud Medicaid and other health benefit programs, and conspiracy to defraud the United States, for not reporting income from the health care fraud scheme on his taxes.
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; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, Crawford owned, and was President and CEO of RX Resources and Solutions (RXRS), a durable medical equipment provider located in Randallstown, Maryland. Beginning in 2012, co-defendant Matthew Hightower worked as a delivery driver for RXRS.
According to his plea agreement, in 2013 Crawford approached Hightower to facilitate a loan to Crawford’s longtime friend, David Wutoh. Wutoh promised Hightower an enormous rate of return. In exchange for $15,000 in cash, Wutoh would pay Hightower $20,000 within a short period of time. Crawford also loaned Wutoh at least $6,000 of his own money. Wutoh did not pay either man back the money he had borrowed, as a result, from May through September 2013, Crawford and Hightower used cellular telephones and electronic messaging to harass, threaten, and coerce Wutoh to repay the loans.
For example, according to the plea agreement, on June 7, 2013, Wutoh sent an electronic message to Crawford stating, “Battery dying.” Crawford responded, “You will be also. Stop playing with people’s money.” On September 13, 2013, Crawford sent an electronic message to Wutoh telling him to put him in his will. Wutoh responded to Crawford, “you are.” As of September 21, 2013, Wutoh had not repaid Crawford or Hightower all of the money he borrowed from them.
According to Crawford’s plea agreement, on the evening of September 21 and the early morning hours of September 22, 2013, Hightower traveled from West Baltimore to East Baltimore County in the area of Wutoh’s home. At about 2:50 a.m. on September 22, 2013, Wutoh was shot in the living room of his home, by an assailant who fired multiple shots through the front window. According to the plea agreement and evidence presented in court, moments later, Hightower answered a phone call on a phone registered registered in another person’s name. Records showed the phone was located in close proximity to the house where Wutoh was murdered.
During interviews conducted with Crawford by law enforcement officers investigating the murder, Crawford never disclosed Hightower’s outstanding loan to Wutoh, nor Crawford’s efforts to have Wutoh repay it. When asked directly whether Hightower had any reason to harm Wutoh, Crawford said, “No.”
Further, Crawford admitted that from 2010 through May 2014, he conspired with others to defraud Medicaid and other health benefit programs by having RXRS bill for supplies that were never provided, overcharge for materials actually delivered, and bill for supplies that were unneeded and had not been prescribed by a physician.
According to his plea agreement, Crawford and his co-conspirators used the personal identity information of clients to submit fraudulent claims to Medicaid and other health care benefits programs for disposable medical supplies that were not delivered to the beneficiary. In addition, Crawford and his co-conspirators delivered medical supplies to beneficiaries who did not need the supplies and whose physicians had not prescribed the supplies, even after the beneficiaries reported that they did not want or need the supplies. According to the plea agreement, a co-conspirator would sign or have someone else sign delivery tickets when deliveries had not actually taken place so that the records of RXRS would falsely document the delivery.
On February 4, 2014, federal agents executed a search warrant at RXRS and Crawford’s home. Agents recovered almost $60,000 in cash from a clothes bin beside the bed in Crawford’s room, and boxes of patient files from the house. From RXRS agents recovered emails documenting a criminal plan at the inception of RXRS, and fraudulent delivery tickets from December 2013 and January 2014.
An analysis of RXRS billing of Medicaid from 2007 through 2014 establishes that the loss to Medicaid just for incontinent supplies billed but not provided is approximately $1.2 million.
Finally, Crawford admitted that he conspired to defraud the United States by not reporting or paying taxes on the proceeds of the fraud. A review of bank records shows that Crawford used the proceeds of the fraud directly for the accounts of RXRS, using a significant portion of the proceeds for his personal benefit, including mortgage payments, personal travel, restaurants, and hosting social events. The IRS determined that Crawford owes $102,782.17 in federal taxes and $25,000 for state taxes for tax years 2010 through 2013.
Crawford faces a maximum sentence of 20 years in prison for collection of extension of credit by extortion. Crawford also faces a maximum penalty of 10 years in prison for health care fraud and a maximum of five years in prison for conspiracy to defraud the United States. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Hightower on November 30, 2016, at 10:00 a.m. Hightower remains detained. Judge Garbis scheduled sentencing for Crawford on March 28, 2016, at 11:30 a.m. Crawford is released under the supervision of U.S. Pretrial Services.
Hightower and co-defendant Elma Myles, age 52, of Baltimore, are scheduled to go to trial on charges related to the health care fraud scheme on January 23, 2017.
United States Attorney Rod J. Rosenstein commended the HHS-OIG, IRS, and Baltimore County Police Department for their work in the investigation, and thanked the Maryland Attorney General’s Office Medicaid Fraud Control Unit for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky, Judson T. Mihok, and Sandra Wilkinson, who are prosecuting the case.
Ohio Man Pleads Guilty to Hate Crime for Beating African-American StrangerRead the Press Release
Robert Paschalis, 25, of Toledo, Ohio, pleaded guilty today to a federal hate crime for beating an African-American stranger he saw on the street. Paschalis’s co-defendant, Charles Butler, pleaded guilty to the same crime on Nov. 9.
The plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
According to his guilty plea, on May 18, 2016, Paschalis and Butler drove past the victim, A.W., on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times. Paschalis admitted during his plea that the beating occurred because A.W. is African American.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted on Facebook that the attack was “in the name of the White Race.”
“Hate violence harms individuals and threatens the diversity of entire communities,” said Principal Deputy Assistant Attorney General Gupta. “This vicious attack on an African-American man simply going about the routines of daily life offends human decency. We cannot undo the harms inflicted, but these convictions help vindicate everyone’s right to live free from racial violence.”
“Northern Ohio is a mosaic of different races, ethnicities and backgrounds,” said U.S. Attorney Rendon. “This defendant tried to strike at the diversity we cherish by participating in an unprovoked attack based solely on the victim’s race. He is now likely headed to prison, while we will continue to work together to ensure that everyone’s civil rights are protected.”
“These individuals engaged in a violent assault against another person based on his race and are now being held accountable,” said Special Agent in Charge Anthony. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and the Lucas County, Ohio, Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Nahant Man Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – A Nahant man was charged yesterday in U.S. District Court in connection with failing to report a significant portion of his income on his federal tax returns from 2010 to 2013.
Andrew R. Bisignani, 70, was charged in an Information with four counts of filing false tax returns.
The Information alleges that, between 2010, 2011, 2012 and 2013, Bisignani collected rental income from three real properties in Revere, Mass. During the same years, Bisignani allegedly collected interest and loan income by making multiple, private, short-term loans which were secured by Massachusetts real estate. Bisignani allegedly underreported his total rental real estate income when submitting his individual tax returns to the IRS. He also underreported the interest income he received in connection with his private loans for 2010, 2011 and 2012.
The charging statute provides for a sentence of no greater than three years in prison, one year of supervised release and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mishawaka Man Sentenced to 120 Months’ ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Jesus C. Madrigal, 25, of Mishawaka, Indiana was sentenced before South Bend District Court Judge Jon. E. DeGuilio for possessing a firearm in furtherance of a drug trafficking offense.
Madrigal was sentenced to 120 months’ imprisonment and 2 years supervised release.
According to documents filed in this case, Madrigal entered a guilty plea for possession of cocaine. In March of 2016 Madrigal discharged a firearm at “would-be” robbers at his home in Mishawaka, Indiana to protect narcotics he had for sale.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosive and the South Bend Police Department. The case was handled by Assistant United States Attorney Frank E. Schaffer.
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Minnesota Business Owner Indicted for Stealing More Than $755,000 from Employee Pension PlanRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging WALLACE DAVID GREGERSON, 65, for operating an embezzlement scheme to defraud his employees and steal more than $755,000 from their pension plans. GREGERSON made an initial appearance today before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minn.
According to the indictment and documents filed in court, GREGERSON was the president and sole owner of Lighting Affiliates, Inc. (“Lighting Affiliates”), a Minnesota corporation that sold lighting fixtures and related products. The Lighting Affiliates 401(k) Profit Sharing Plan (the “Plan”) was established as an employee benefit for eligible employees’ retirement savings. The Plan was funded by three types of contributions: voluntary salary reduction 401(k) contributions the Lighting Affiliates employees had deducted from their paychecks; 401(k) matching contributions made by Lighting Affiliates; and profit sharing contributions made by Lighting Affiliates.
According to the indictment and documents filed in court, GREGERSON, who was the sole trustee of the Plan, used his position to withdraw funds from the Plan and deposit those funds into Lighting Affiliates bank accounts. Between February 2011 and July 2013, GREGERSON drained the profit sharing portion of the Plan by withdrawing a total of approximately $675,233.55, and drained his former employees’ individual 401(k) accounts by withdrawing a total of approximately $80,667.23.
According to the indictment and documents filed in court, as part of the scheme, GREGERSON persuaded the financial institutions holding the Plan’s assets to provide him with funds belonging to the Plan and its participants by making false representations. GREGERSON provided written statements falsely affirming that the funds would be re-invested in another qualified plan or that the withdrawals were at the employee’s request.
According to the indictment and documents filed in court, GREGERSON used the majority of the funds to either pay for Lighting Affiliates’ expenses or for personal expenses such as country club membership dues, sports tickets, clothing purchases, and tuition payments on behalf of his daughter.
The case is being prosecuted by Assistant United States Attorney Kimberly A. Svendsen.
This case is the result of an investigation conducted by the U.S. Department of Labor Employee Benefits Security Administration and the U.S. Department of Labor Office of the Inspector General.
Defendant Information:
WALLACE DAVID GREGERSON, 65
Plymouth, Minn.
Charges:
- Mail fraud, 6 counts
- Money laundering, 2 counts
- Theft and Embezzlement from Employee Plan, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Milwaukee Man Pleads Guilty to Sex Trafficking and Related CrimesRead the Press Release
Paul Carter, 46, of Milwaukee, pleaded guilty in the Eastern District of Wisconsin late yesterday to eight counts of sex trafficking by force, fraud or coercion and one count of conspiracy to commit forced labor and sex trafficking by force, fraud or coercion.
According to documents filed in court, from 2001 to 2013, the defendant used false promises of good earnings and a better life to recruit women and girls to dance at exotic dance clubs on Indian reservations in Northern Wisconsin. Carter then used a combination of physical violence, isolation, emotional manipulation, sexual assault and threats to harm the victims’ families to exert control over the victims and compel them to engage in commercial sex acts in Milwaukee, Northern Wisconsin and elsewhere for his profit.
According to the plea agreement, when Carter became angry at one victim for associating with another man, he used a heated wire hanger to brand a “P” on her buttock to demonstrate his ownership of her. Carter also admitted that when he heard another victim was considering leaving him, he put the barrel of a gun in her mouth and threatened to “blow her head off.” On another occasion described in plea documents, Carter, believing that a victim had hidden money from him, responded by searching her genitals and then forcing her to engage in sexual intercourse with him. As further admitted in plea documents, on another occasion Carter threw a victim to the ground and stepped on her head hard enough to break her tooth, and also required her to choose between two additional punishments: drowning or jumping out of a window.
“The repulsive crime of human trafficking offends the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division will vigorously and relentlessly prosecute those who prey upon, abuse and exploit vulnerable members of our society for their own financial benefit. And while no punishment can undo the egregious harms inflicted, we will work tirelessly to seek justice on behalf of victims and survivors of human trafficking.”
“Paul Carter preyed on women and children who found themselves in desperate situations; some were homeless, others had no one to turn to, and yet others had no money to survive,” said U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin. “He used violence, fear, isolation and coercion to make the victims commit commercial sex acts for his financial benefit. The Department of Justice, working with the Federal Human Trafficking Task Force, has been dedicated to investigating and prosecuting human traffickers so that victims can be free from this modern-day slavery. This prosecution reflects the Department of Justice’s commitment to protecting those who are most vulnerable and to prosecuting those who are responsible.”
Carter was charged in a superseding indictment returned on Oct. 12, 2016, and faces a possible sentence of 15 years to life in prison. The sentencing is scheduled for March 15, 2017. As part of the plea agreement, Carter will also be ordered to pay restitution to each of the seven victims identified in the indictment, in an amount to be determined at the time of sentencing.
This prosecution is the result of the joint investigation by the Eastern District of Wisconsin’s Human Trafficking Task Force and cooperative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the State of Wisconsin Department of Justice, the Milwaukee Police Department, the FBI, the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division’s Human Trafficking Prosecution Unit.
The case is being prosecuted by Assistant U.S. Attorneys Karine Moreno-Taxman and Laura Kwaterski of the Eastern District of Wisconsin and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Carter Plea AgreementMexican Man Pleads Guilty to Illegally Reentering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, N.H. –United States Attorney Emily Gray Rice announced that Gerardo Solis-Rojas, of Mexico, has pleaded guilty to reentering the United States after having been deported previously.
Solis-Rojas pleaded guilty before United States Chief District Judge Joseph Laplante to an Indictment that had been returned by the Grand Jury on August 24, 2016.
According to court filings and statements in Court, during an interview with a federal deportation officer, the defendant acknowledged that his name was Gerardo Solis and that he was a citizen of Mexico. The defendant also acknowledged that he was not in the United States legally. A subsequent records check ultimately determined that the defendant been deported to Mexico on six previous occasions.
At the time of the plea, a date and time for sentencing had not yet been set. Solis-Rojas faces likely deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Mescalero Apache Man Sentenced to Prison for Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Daniel Pete Valdez, 44, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 87 months in prison followed by five years of supervised release for his conviction on a sexual abuse charge. Valdez will be required to register as a sex offender after completing his prison sentence.
Valdez was arrested on Aug. 25, 2015, on a criminal complaint charging him with sexually assaulting a woman on June 20, 2014, on the Mescalero Apache Indian Reservation in Otero County., N.M. Valdez was subsequently indicted on Jan. 20, 2016, on a sexual abuse charge.
According to court documents, Valdez engaged in a sexual act with the victim while she was unconscious and physically incapable of declining participation in or communicating unwillingness to engage in the sexual act. On June 20, 2016, Valdez pled guilty without the benefit of a plea agreement.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Mass. Resident Detained for Allegedly Enticing a MinorRead the Press Release
PROVIDENCE – Rafael P. Leal, 38, of Boston, Mass., was ordered detained in federal custody in Rhode Island today on charges he allegedly traveled to Rhode Island to entice a minor child to engage in illicit sexual conduct, announced United States Attorney Peter F. Neronha, Bristol Police Chief Josue D. Canario and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
Leal was arrested earlier today at his Massachusetts residence by FBI agents on a federal arrest warrant issued with the filing of a federal criminal complaint in U.S. District Court in Providence charging Leal with interstate travel to engage in sexual activity with a minor and using means of interstate commerce to entice a minor to engage in sexual activity.
According to information presented to the court, it is alleged that the defendant used the Internet and text messages to entice a minor over a period of months to engage in sexual activity without the minor’s parents’ knowledge. It is alleged that the defendant crossed state lines on at least four occasions with the intent to engage in sexual conduct with a minor. It is alleged that the defendant sent gifts to the victim and directed the victim to conceal the activity.
A criminal complaint is merely an allegation 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.
Using means of interstate commerce (Internet) to entice a minor to engage in sexual activity is punishable by a statutory penalty of a mandatory minimum of 10 years up to life imprisonment; interstate travel to engage in sexual activity with a minor is punishable by a statutory penalty of up to 30 years imprisonment.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Maryland Felon Sentenced to Federal Prison for Illegal Possession of Firearms and AmmunitionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Curtis Portland Litten, age 54, of Huntingtown, Maryland, today to 21 months in prison, followed by three years of supervised release, for possession of firearms and ammunition by a convicted person. Litten pleaded guilty to that charge on September 1, 2016, and has been detained since his arrest on April 22, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Matthew R. Verderosa of the U.S. Capitol Police.
According to his plea agreement, from January 28 through March 24, 2016, Litten wrote and mailed at least nine cards and letters to the President of the United States and members of the United States Congress threatening harm to them and/or their family members. Fingerprint analysis of several of the cards identified latent fingerprints belonging to Litten.
In connection with the investigation into the identity of the sender of the threatening communications, a search warrant was executed at Litten’s home. Law enforcement seized envelopes and unsent greeting cards addressed to members of Congress and signed by Litten, computer printouts of addresses for elected officials, and reminders to write letters to elected officials. In addition, law enforcement seized: .22 caliber, .38 caliber, and .380 caliber pistols; a 12-gauge shotgun; a .410 bore shotgun; a .38 caliber blank firing revolver; 300 rounds of .22 caliber ammunition; 24 rounds of .380 caliber ammunition; four rounds of .410 caliber shotgun ammunition; and one 12-gauge shotgun shell.
As a result of a previous felony conviction, Litten was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein praised the ATF and U.S. Capitol Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jennifer R. Sykes and Thomas P. Windom, who prosecuted the case.
Many woman sentenced to 27 months in prison for possession of sawed-off shotgunRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a woman from Many was sentenced to 27 months in prison for possessing a short-barreled shotgun.
Christi Rene McPherson, 36, of Many, La., was sentenced by U.S. District Judge Dee D. Drell on one count of unlawful possession of a short-barreled shotgun. She was also sentenced to three years of supervised release and was ordered to pay a $1,000 fine. According to the July 26, 2016 guilty plea, after a physical altercation with her boyfriend, McPherson took a black bag from the boyfriend’s house in 2015 that contained firearms and other contraband. The Natchitoches Parish Sheriff’s Office contacted McPherson at a convenience store and found her to be in possession of the black containing a 12-gauge shotgun with a barrel less than 18 inches, five grenade simulators, a Kevlar vest and other firearms. McPherson was also found to be in possession of 3 grams of methamphetamine and 12 pills of Lorazepam. Federal law restricts the ownership of shotguns with barrels shorter than 18 inches long and requires that they be registered.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Natchitoches Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Man and Woman to Federal Prison for Meth ConspiracyRead the Press Release
A man and woman who conspired with each other and others to distribute methamphetamine were each sentenced to federal prison.
Elyaxel Vasquez, 31, and Ashley Shivers, 31, both from Fort Dodge, Iowa received the prison terms after guilty pleas to conspiracy to distribute methamphetamine.
At the guilty pleas, Vasquez and Shivers both admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the Fort Dodge, Iowa, area from about 2014 continuing through December 2015. Both were also involved in the distribution of methamphetamine to individuals cooperating with law enforcement.
Vasquez and Shivers were sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Vasquez was sentenced to 126 months’ imprisonment and Shivers was sentenced to 78 months’ imprisonment. A special assessment of $100 was imposed for each. They each must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Vasquez and Shivers are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Department of Narcotics Enforcement, Tri-County Drug Task Force, Webster County Drug Task Force, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR15-3047. Follow us on Twitter @USAO_NDIA.
Milwaukee Man Pleads Guilty to Sex Trafficking and Related CrimesRead the Press Release
WASHINGTON – Paul Carter, 46, of Milwaukee, pleaded guilty in the Eastern District of Wisconsin late yesterday to eight counts of sex trafficking by force, fraud or coercion and one count of conspiracy to commit forced labor and sex trafficking by force, fraud or coercion.
According to documents filed in court, from 2001 to 2013, the defendant used false promises of good earnings and a better life to recruit women and girls to dance at exotic dance clubs on Indian reservations in Northern Wisconsin. Carter then used a combination of physical violence, isolation, emotional manipulation, sexual assault and threats to harm the victims’ families to exert control over the victims and compel them to engage in commercial sex acts in Milwaukee, Northern Wisconsin and elsewhere for his profit.
According to the plea agreement, when Carter became angry at one victim for associating with another man, he used a heated wire hanger to brand a “P” on her buttock to demonstrate his ownership of her. Carter also admitted that when he heard another victim was considering leaving him, he put the barrel of a gun in her mouth and threatened to “blow her head off.” On another occasion described in plea documents, Carter, believing that a victim had hidden money from him, responded by searching her genitals and then forcing her to engage in sexual intercourse with him. As further admitted in plea documents, on another occasion Carter threw a victim to the ground and stepped on her head hard enough to break her tooth, and also required her to choose between two additional punishments: drowning or jumping out of a window.
“The repulsive crime of human trafficking offends the most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Civil Rights Division will vigorously and relentlessly prosecute those who prey upon, abuse and exploit vulnerable members of our society for their own financial benefit. And while no punishment can undo the egregious harms inflicted, we will work tirelessly to seek justice on behalf of victims and survivors of human trafficking.”
“Paul Carter preyed on women and children who found themselves in desperate situations; some were homeless, others had no one to turn to, and yet others had no money to survive,” said U.S. Attorney Gregory J. Haanstad of the Eastern District of Wisconsin. “He used violence, fear, isolation and coercion to make the victims commit commercial sex acts for his financial benefit. The Department of Justice, working with the Federal Human Trafficking Task Force, has been dedicated to investigating and prosecuting human traffickers so that victims can be free from this modern-day slavery. This prosecution reflects the Department of Justice’s commitment to protecting those who are most vulnerable and to prosecuting those who are responsible.”
Carter was charged in a superseding indictment returned on Oct. 12, 2016, and faces a possible sentence of 15 years to life in prison. The sentencing is scheduled for March 15, 2017. As part of the plea agreement, Carter will also be ordered to pay restitution to each of the seven victims identified in the indictment, in an amount to be determined at the time of sentencing.
This prosecution is the result of the joint investigation by the Eastern District of Wisconsin’s Human Trafficking Task Force and cooperative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the State of Wisconsin Department of Justice, the Milwaukee Police Department, the FBI, the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division’s Human Trafficking Prosecution Unit.
The case is being prosecuted by Assistant U.S. Attorneys Karine Moreno-Taxman and Laura Kwaterski of the Eastern District of Wisconsin and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
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Long Island Fisherman Indicted for Conspiracy and FraudRead the Press Release
WASHINGTON—A federal grand jury in Central Islip, New York, returned an indictment today charging Thomas Kokell, a fisherman from East Northport, New York, with conspiracy, mail fraud and falsification of federal records, the Justice Department announced.
The charges stem from a fraudulent scheme designed to cover up the illegal harvest of fluke that was purportedly taken under the National Oceanic and Atmospheric Administration’s (NOAA) Research Set-Aside Program. According to the indictment, the conspiracy between Kokell and a fish dealer, who previously pleaded guilty, involved the preparation and filing of dozens of false Fishing Vessel Trip Reports and electronic dealer reports. The conspiracy was alleged to have hidden the overharvest of approximately 196,000 pounds of fluke valued at over $400,000.
The defendant will be arraigned in Central Islip at a yet to be scheduled date. An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by agents of NOAA’s National Marine Fisheries Service. The case is being prosecuted by Christopher Hale and Brendan Selby of the Justice Department’s Environmental Crimes Section.
IndictmentLee's Summit Woman Pleads Guilty to $1.5 Million Embezzlement Schemes, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman pleaded guilty in federal court today to a series of embezzlement schemes totaling more than $1.5 million.
Patricia Webb, 44, of Lee’s Summit, pleaded guilty before U.S. District Judge Roseann Ketchmark to three counts of wire fraud and one count of aggravated identity theft. Webb has been in federal custody since her bond was revoked by the court for unrelated fraudulent conduct.
By pleading guilty today, Webb admitted that she embezzled at least $1,526,594 in total from Garmin International, Black and Veatch and TriStar Benefit Administrators.
Garmin Embezzlement Scheme
Webb admitted that she embezzled $1,255,175 million from Garmin while employed as a senior payroll specialist.
Webb caused Garmin to send 16 unauthorized Automated Clearing House payments (fund transfers, such as direct deposits and business-to-business payments) to her own business bank account (under the corporate name Beauty Within Me) from Feb. 24, 2012, to May 30, 2014. The payments were sent on behalf of then-current employees who were utilizing Garmin’s relocation program. Webb caused Garmin funds to be recorded to the in-transit employee’s W-2, under the code “P,” which was inflated to mask Webb’s embezzlement. After the clearing of the ACH payments, Webb would alter Garmin’s general ledger to reflect the fraudulent payments as “Relocation Expenses.”
Black and Veatch Embezzlement Scheme
Webb admitted that she embezzled $302,183 from Black and Veatch while employed as a global payroll manager. Webb was employed by Black and Veatch from January 2015 until March 4, 2016 and earned $90,000 per year. Webb facilitated unauthorized wire transfers and ACH transactions from the company’s payroll account to her Beauty Within Me business bank account.
An analysis of Webb’s bank account shows a large amount of spending at casinos and cash withdrawals at casinos.
TriStar Embezzlement Scheme
Webb admitted that she stole the identity of another employee while she was working at Garmin in order to embezzle $7,385 from TriStar Benefit Administrators, the company which managed Garmin’s healthcare savings accounts.
Webb used the personal identifiable information of another Garmin employee to create a flexible spending account without his knowledge or consent. Webb submitted a request for reimbursement to TriStar in the name of this employee on July 18, 2011. The request was for hospital treatment in the amount of $7,385 and the payment from TriStar was sent to Webb’s bank account.
Under federal statutes, Webb is subject to a sentence of up to 20 years in federal prison without parole on each count of wire fraud, plus a mandatory consecutive sentence of two years in federal prison for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Leader of Teenage Drug Smuggling Ring Pleads Guilty; Used Facebook to Coordinate Drug TraffickingRead the Press Release
Assistant U. S. Attorney Patrick J. Bumatay (619) 546-8450
NEWS RELEASE SUMMARY – May 31, 2016
SAN DIEGO – Roberto Torres Jr., 22, pleaded guilty in federal court today to leading a drug smuggling ring that used young adults and teenagers to smuggle vast quantities of methamphetamine into the United States.
Torres, a U.S. citizen, admitted that he and his co-conspirators recruited dozens of minors, some as young as 15 years old, from Imperial Valley, California high schools and elsewhere to transport narcotics from Mexico into the United States. Torres used Facebook, the social networking platform, to coordinate the drug trafficking activity with his young smugglers.
As part of his plea agreement, Torres agreed to a “use of a minor” enhancement under the U.S. Sentencing Guidelines, which will result in him receiving an elevated Guidelines sentencing range.
Several of Torres’ codefendants have already pleaded guilty to participating in the drug trafficking enterprise, including Genesis Flores De Anda, Hector Beltran-Garcia, Eleazar Sanchez-Aguilar, and Diana Carrillo.
Torres pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal. He will be sentenced on February 17, 2017 at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo. Torres faces up to life imprisonment, a mandatory minimum of ten years in prison, and a $10 million fine.
DEFENDANTS Case Number 15cr2503-CAB/15CR3143-CAB
Roberto Torres, Jr. Age: 22
Hector Beltran-Garcia Age: 22
Genesis Flores De Anda Age: 20
Diana Lizeth Carrillo Age: 21
Eleazar Sanchez-Aguilar Age: 39
SUMMARY OF CHARGES
Conspiracy to Import Methamphetamine– Title 21, U.S.C., Sections 952, 960, 963
AGENCY
Homeland Security Investigations
Justice Department Settles Immigration-Related Discrimination Claim Against Aldine Independent School DistrictRead the Press Release
The Justice Department announced today that it reached a settlement with the Aldine, Texas, Independent School District resolving allegations that the district discriminated against work-authorized non-citizens in violation of the Immigration and Nationality Act (INA). The district is the ninth largest school district in the state with an enrollment of almost 70,000 students.
The department’s investigation, conducted by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), found that Aldine required non-U.S. citizens, but not similarly-situated U.S. citizens, to present specific documents when reverifying their employment eligibility once their original documents expired. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands based on citizenship or national origin when verifying or reverifying an employee’s authorization to work. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present from the lists of acceptable documents to prove their work authorization, and employers cannot limit employees’ choice of documentation because of their citizenship or national origin.
“Employers must ensure that their human resources staff understand proper hiring practices,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The INA prohibits discrimination because of citizenship status and the Civil Rights Division continues to enforce this statute around the country to remind all employers of their compliance obligations as well as to vindicate the rights of employees.”
As part of the agreement, Aldine will revise its policies and procedures, pay a $140,000 civil penalty and implement a three-year program to train employees, students and students’ parents on the requirements of the INA’s anti-discrimination provision. Specifically, the training program, which will be developed by Aldine staff, will be focused on educating adult participants in Aldine’s parent literacy/English as a Second Language (ESL) classes, 12th grade students enrolled in certain classes and the school district’s employees.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral for a fee should contact OSC’s worker hotline for assistance.
Trial Attorney Richard Crespo of the Civil Rights Division handled this matter.
Aldine Settlement AgreementJustice Department Revises Regulations to Require Closed Movie Captioning and Audio Description for People with DisabilitiesRead the Press Release
The Justice Department today announced an Americans with Disabilities Act (ADA) Title III regulation to further clarify a public accommodation’s obligation to provide appropriate auxiliary aids and services for people with disabilities. The final rule provides that public accommodations that own, operate or lease movie theaters are required to provide closed movie captioning and audio description whenever showing a digital movie that is produced, distributed or otherwise made available with these features.
Title III of the ADA requires public accommodations to furnish appropriate auxiliary aids and services, where necessary, to ensure effective communication with people with disabilities, and the department has long held the position that captioning and audio description are auxiliary aids required by the ADA. Despite this obligation and the widespread availability of movies with these features, the department received numerous reports from the disability community indicating that neither closed movie captioning nor audio description is universally available at movie theaters across the United States.
The department initiated this rulemaking on June 10, 2010, with the publication of its Advance Notice of Proposed Rulemaking (ANPRM) and then published its Notice of Proposed Rulemaking (NPRM) on Aug. 1, 2014. In total, the department received over 1,500 comments on the ANPRM and the NPRM, including a comment on the NPRM that was jointly submitted by advocacy groups representing individuals with hearing disabilities and the movie theater industry. The department intends to publish the final rule in the Federal Register in the near future, and the rule will take effect 45 days after publication.
“The disability community and movie theater industry provided comprehensive insight on this important regulation,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department’s regulation establishes a nationally consistent standard and ensures that, in theaters across the country, people with hearing and vision disabilities can fully enjoy watching movies with their families and friends.”
The final rule requires movie theaters to have available and maintain the equipment necessary to provide closed movie captioning and audio description so that it is delivered to a movie patron’s seat and available only to that patron. Movie theaters are also required to notify the public about the availability of these features and have staff available to assist movie patrons with the equipment.
The requirements of this rule do not apply to any movie theater that shows analog movies exclusively. Additionally, the compliance limitations under Title III of the ADA apply to this rulemaking, and thus, the rule makes clear that movie theaters do not have to comply with the rule’s requirements if compliance would result in an undue burden or a fundamental alteration.
For more information about this rule or the ADA, please visit the department’s ADA website or call the ADA Information Line (1-800-514-0301, 1-800-514-3083, TTY). Once the final rule is published in the Federal Register, a copy will be available on the Federal Register’s website.
Final Rule Movie Captioning
Justice Department Files Suit Against Bernards Township, New Jersey, over Denial of Zoning Approval for MosqueRead the Press Release
The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns. The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.
The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”
“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” said U.S. Attorney Paul Fishman of the District of New Jersey. “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application. But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Bernards Township ComplaintJustice Department Files Suit Against Bernards Township, New Jersey, over Denial of Zoning Approval for MosqueRead the Press Release
NEWARK, N.J. – The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns. The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.
The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” U.S. Attorney for New Jersey Paul J. Fishman said. “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application. But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”
“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, said. “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the District of New Jersey Civil Rights Complaint Hotline at (855) 281-3339.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Jena man sentenced to 16 months in prison for illegal possession of silencersRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Jena man was sentenced Monday to 16 months in prison for possessing unregistered silencers, which he also constructed and sold.
Robert E. Durham, 34, of Jena, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of an unregistered firearm. He was also sentenced to three years of supervised release. According to the June 20, 2016 guilty plea, the defendant was recorded setting up a sale of silencers with an undercover ATF agent. They met on May 10, 2016 in Winnfield, La., and the undercover agent purchased three silencers. Law enforcement agents then searched Durham’s home on May 19, 2016. They found and seized silencers, homemade firearm suppressors, ammunition, tools and a drill press to make silencers, silencer parts, and packaged “solvent trap kits,” which are also used to make silencers. The silencers and silencer parts and kits are defined as firearms according to federal law and are required to be registered in the National Firearms Registration and Transfer Record. The illegal silencers Durham possessed were not registered.
The ATF and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Jamaican Resident Admits Role in Fake Lottery ScamRead the Press Release
NEWARK, N.J. – A resident of Jamaica, West Indies, today admitted swindling elderly residents of the United States by falsely telling them they had won millions of dollars in Jamaican lotteries, U.S. Attorney Paul J. Fishman announced.
Ricardo Reid, 31, pleaded before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to commit mail and wire fraud.
According to documents filed in this case and statements made in court:
From 2011 to 2016, Reid purchased mailing lists that contained addresses and other information of elderly individuals and then solicited these individuals by tricking them into believing they had won millions in lotteries and sweepstakes. He also told the elderly individuals that in order to redeem these fictitious winnings, they had to pay registration fees and other fees and taxes. Reid told the victims that the calls were from officials of the United States, such as the IRS, and from lottery or bank officials.
Reid admitted that he used aliases like “Robert Gates,” “Mr. Bogohazian,” and “Damien Boswel,” and used call forwarding and Voice Over Internet Protocol services to make and receive calls, masking his phone number and location.
The conspiracy county to which Reid pleaded guilty carries a maximum prison term of 20 years and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2017 .
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola; and inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Individual Arrested for Bulk Cash SmugglingRead the Press Release
San Juan, Puerto Rico– Máximo Paredes-Suárez was indicted for bulk cash smuggling and providing false statements to federal officials, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Customs and Border Protection (CBP) and Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) are in charge of the investigation.
On or about November 12, 2016, Máximo Paredes-Suárez, did knowingly conceal more than $10,000 in currency and other monetary instruments, to wit: sixty-two thousand three hundred eighty-six dollars ($62,386.00) in United States currency, in his luggage, and attempted to transport and transfer said U.S. currency and monetary instruments from the San Juan Luis Muñoz Marín International Airport, in the District of Puerto Rico, to the Dominican Republic.
According to the indictment, the defendant willfully and knowingly made materially false, fictitious, and fraudulent statements by stating to CBP and ICE-HSI AirTAT agents that he was not transporting any currency, at the San Juan Luis Muñoz Marín International Airport, San Juan, Puerto Rico. The statement and representation was false because, as Paredes-Suárez then and there knew, he had $62,386.00 in United States currency concealed in his luggage at the San Juan Luis Muñoz Marín International Airport.
This case is being prosecuted by Assistant U.S. Attorney Stuart Zander. The case was investigated by Customs and Border Protection officers and Homeland Security Investigations (HSI) Airport Investigations and Tactical Team (AirTAT).
The maximum penalties for these offenses are 10 years of imprisonment. An indictment is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until convicted through due process of law.
Honduran Man Sentenced After Pleading Guilty to Illegally Re-Entering the United States After Previous DeportationRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Salvador Lopez-Hernandez, of Honduras, was sentenced to 8 months in prison after pleading guilty, on August 16, 2016, to illegally re-entering the United States after having been previously deported.
Silva-Hernandez was arrested by Immigration and Customs Enforcement Deportation Officers on June 15, 2016, after they developed information that Lopez-Hernandez was present in the United States after having been deported on one previous occasion.
Silva-Hernandez faces likely deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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Hingham Man Charged with Defrauding InvestorsRead the Press Release
BOSTON – A Hingham man was arrested today and charged in U.S. District Court in Boston with defrauding neighbors and other acquaintances in a Ponzi scheme.
Stephen S. Eubanks, 47, of Hingham, Mass., was arrested on a complaint charging him with one count of wire fraud. Beginning in February 2010, Eubanks allegedly ran a hedge fund under the name Eubiquity Capital LLC, taking in approximately $529,000 in investor funds. Eubanks had previously worked as a registered broker with several large brokerage firms, but was terminated in the wake of customer complaints and other disciplinary issues. According to the complaint, in 2013 and 2014, Eubanks told two acquaintances that he was a registered financial advisor running a hedge fund affiliated with Goldman Sachs, TD Ameritrade, UBS Bank and Fidelity Investments. One client invested a total of $125,000 with Eubanks, while the other invested $20,000. A third person, living in Florida, invested $50,000 with Eubanks in 2013.
It is alleged that Eubanks invested some of his clients’ funds, but used a significant portion for personal expenses. Moreover, when asked for account statements summarizing the funds’ performance, Eubanks fabricated account statements, or used account statements from unrelated accounts, to deceive his clients into believing that their money had earned a healthy return. In some instances, Eubanks allegedly ran the fund as a Ponzi scheme, using money deposited with him by newer investors to pay “returns” due to earlier investors.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The Massachusetts Securities Division, which conducted an earlier civil investigation of Eubanks, provided significant assistance to the U.S. Attorney’s Office.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Andrew E. Lelling of Ortiz’s Economic Crimes Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Frewsburg Man Pleads Guilty to Health Care 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 Leo A. Kronert, Jr., 66, of Frewsburg, NY, pleaded guilty to healthcare fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant, then a full time teacher at Salamanca High School and a part time chiropractor in Salamanca, NY, submitted false claims for payment to Medicare and private insurance companies seeking reimbursement for health care services allegedly provided in connection with his chiropractic practice. The fraudulent claims totaled approximately $92,000, and included bills for patient visits on dates during which Kronert was travelling out of the area, and bills for an individual who did not reside in Western New York.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert.
Sentencing is scheduled for February 28, 2017, at 2:00 p.m. before Judge Vilardo.
Founder of Litigation Marketing Company Guilty of Multi-Million Dollar Securities FraudRead the Press Release
Assistant U.S. Attorneys Aaron P. Arnzen (619) 546-8384 and Billy Joe McLain 619-546-6762
NEWS RELEASE SUMMARY – November 22, 2016
SAN DIEGO – David Aldrich pleaded guilty in federal court today to defrauding investors through litigation marketing company PLCMGMT LLC dba Prometheus. Aldrich admitted that he conspired with James Catipay, who pleaded guilty on October 26, 2016, to lie to investors when convincing them to invest.
Specifically, Aldrich and Catipay falsely told investors that they could redeem their investments at any time; that funds were available to pay both redemptions and hefty returns; and that their investments were secured by enforceable liens. In reality, as Aldrich admitted, the investments were risky and unsecured and there was no existing source of funds to pay investor redemptions or returns.
According to his plea agreement, Aldrich and Catipay established Prometheus in 2013. They then devised a business plan and began soliciting investors. According to the business plan, Prometheus would use investor funds to pay for marketing efforts to recruit potential plaintiffs for tort actions against the manufacturers of prescription drugs and medical devices. Any proceeds from those tort actions would fund investor redemptions and returns.
To convince investors to entrust Prometheus with their funds, Aldrich and Catipay created marketing materials for prospective investors. The marketing materials falsely stated that the tort plaintiffs that Prometheus identified through its legal marketing would, as soon as the claims were filed, be entitled immediately to funds from legal actions that had already been settled and for which funds had been placed on escrow.
In fact, only 1% of the tort plaintiffs’ legal actions had been settled, and an overwhelming majority of the legal actions had not been litigated or successfully negotiated for settlement. The marketing materials also represented that investor funds, once received by Prometheus, were “100%” secured by a legally enforceable lien and that investors could redeem their investments on demand. The truth was that investor funds were never secured by a lien, and Prometheus had denied, and would continue to deny, a large majority of redemption demands received from investors.
In exchange for investing in a “Prepaid Forward Contract,” Prometheus promised to pay investors returns ranging from 100% to 300%, depending on the amount invested and the time horizon for the investment. Based on these lies, and during the time the Aldrich was associated with Prometheus, approximately 200 investors entrusted Prometheus with more than $8.5 million. Despite the defendant’s promises, Prometheus was only able to pay back approximately $300,000 of this amount. Most investors, many of them retirees, lost their entire investments.
United States Attorney Laura E. Duffy reminded investors to exercise appropriate caution when presented with unproven investments and promises of exorbitant returns. In a civil case filed by the Securities and Exchange Commission (SEC v. PLCMGMT LLC, et al., LACV16-02594-TJH), a District Court in the Central District of California has appointed a receiver to take control of Prometheus and recover investor funds.
“The FBI remains committed to uncovering fraud schemes that affect our community,” said FBI Special Agent in Charge Eric S. Birnbaum. “Today’s conviction is a reminder of the financial perils associated with high yield investment fraud scams.” If you believe you are a victim of or otherwise have information concerning an investment fraud scheme, you are encouraged to contact the FBI at 1-800-CALL-FBI.
Aldrich is scheduled to appear before District Judge John A. Houston on February 13, 2017 for sentencing.
DEFENDANT 16CR2688-JAH
David Aldrich Age: 43 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Securities Fraud, in violation of 18 U.S.C. § 371.
Maximum Penalties: 5 years’ imprisonment, a maximum $250,000 fine (or twice the gross gain or loss caused by the offense), $100 special assessment, restitution.
AGENCIES
Federal Bureau of Investigation
Securities and Exchange Commission
Former University Employee Sentenced for $781,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former University of Missouri employee was sentenced in federal court today for embezzling more than $781,000 from the school over a 13-year period.
Carla Rathmann, 55, of Mount Vernon, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to four years in federal prison without parole. The court also ordered Rathmann to pay $781,670 in restitution.
On June 6, 2016, Rathmann pleaded guilty to one count of mail fraud and one count of credit card fraud.
Rathmann embezzled a total of $781,670, primarily by submitting fake and fraudulent invoices and bills to the University of Missouri. Rathmann also admitted that she illegally used a university credit card for approximately $146,144 in personal expenses. Rathmann used the embezzled funds to gamble at area casinos, purchase expensive cars, buy high-end appliances for her home, pay for the remodeling of her home, take expensive vacations around the world with her husband, purchase other personal luxury items like a hot tub and a large above ground pool, and pay for many of the day-to-day bills associated with the maintenance of their home and care for her pets.
Rathmann was hired by the University of Missouri as an administrative officer at the Southwest Research Center, located in Mount Vernon, in January 2000. Her responsibilities included receiving bills, paying bills, various accounting duties, payroll, scheduling meetings and organizing staff at the Southwest Research Center. Rathmann was fired from her position in September 2015 after officials discovered that she had used her university credit card, also known as a “p-card,” to pay for personal expenses.
In 2005, Rathmann created and registered three shell companies with the Missouri Secretary of State’s Office. Rathmann admitted that these companies – R&R, R&R Argi and Garrett Farm and Oil – did not produce a single product or provide a service of any type. Either Rathmann or her husband were the owners and registered agents for these companies.
From Jan. 24, 2005, to June 18, 2014, Rathmann issued bills or invoices in the names of these shell companies to the University of Missouri for products or services ostensibly provided to the Southwest Research Center. In reality, none of these companies provided a single item or a service to the Southwest Research Center. The invoices or bills submitted by Rathmann to the University of Missouri for payment were entirely false and fraudulent.
On numerous occasions, Rathmann, in her capacity as an administrative employee for the University of Missouri at the Southwest Research Center, approved the fraudulent invoices and bills. After she approved the payments, the University of Missouri wrote checks to Rathmann’s fictitious companies, which were deposited into her bank account.
The University of Missouri paid Rathmann $570,521 for the products and services that in fact were never delivered or provided.
Shortly after she was hired, Rathmann was given a credit card to facilitate the purchasing of goods and services needed for the Southwest Research Center. Rathmann fraudulently used the credit card to make unauthorized personal purchases (i.e., her dog’s surgery, remodeling her home, dental expenses, propane for her home, gas for her vehicle and herbicide for her home).
The first unauthorized use of the credit card occurred on Feb. 19, 2002, when Rathmann’s credit card was used to pay Bolivar Insulation in the amount of $1,249. The last unauthorized use of the credit card was on Aug. 20, 2015, when Rathmann’s credit card was used to pay an invoice from Ozark Mountain Pest Control in the amount of $30. In between these purchases were numerous other personal purchases she made using the credit card that totaled approximately $146,144.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Missouri State Highway Patrol. The University of Missouri was instrumental in detecting the fraud, initiating the investigation and assisting law enforcement.
Former Major and Lt. Col. Convicted of Four-Year Fraud Against the Marine CorpsRead the Press Release
Assistant U.S. Attorneys Nicholas W. Pilchak (619) 546-9709 and C. Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – November 22, 2016
SAN DIEGO – A former major in the U.S. Marine Corps Reserves was convicted by a federal jury yesterday for participating in a four-year conspiracy to defraud the Marine Corps out of more than $205,000.
Jason H. Wild pretended to rent the home of his fellow officer, former reservist Lieutenant Colonel Michael K. Strom, in order to claim reimbursements from the Marines when called to active duty at Camp Pendleton. Strom, in turn, pretended to rent Wild’s home from Wild’s friend. Both men submitted phony lease agreements and rental receipts to support their false claims. In truth, each man owned his own home next to Camp Pendleton and never paid any of the claimed rent.
Following a three-day jury trial before U.S. District Judge Anthony Battaglia, the jury deliberated for about 35 minutes before finding Wild guilty of wire fraud and making false claims. Strom pleaded guilty on October 28, 2016 before Judge Battaglia, admitting the wire fraud conspiracy and two counts of false claims.
Wild owned his own home in Oceanside, California throughout the time he claimed rental benefits from the Marine Corps. Evidence at trial, including witness testimony, credit card statements, tax returns, and bank records, established that Wild lived in his Oceanside home throughout the period he falsely claimed to pay $38,442 to rent Strom’s home in Laguna Niguel, California.
Five months after Wild’s “rental” concluded, Strom was activated at Camp Pendleton and falsely claimed for two years to rent Wild’s Oceanside home from Wild’s friend. Although Strom told the Marine Corps he paid $98,736 to rent Wild’s home, the evidence at trial demonstrated that Strom lived in his own home in Laguna Niguel throughout the sham “lease” period.
Financial records, including a bank analysis performed by the Naval Audit Service, established at trial that neither defendant had paid a dollar of the claimed rent.
“Military service members who choose to defraud the armed forces deprive our nation—and their fellow soldiers—of the resources they need to complete their difficult mission,” said U.S. Attorney Laura E. Duffy. “This Office will continue to vigorously pursue fraudsters in or out of uniform who seek to enrich themselves by diverting taxpayer money from the men and women defending this country.”
Duffy commended the close coordination between the investigating agencies—the Department of Defense, Defense Criminal Investigative Service; the Naval Criminal Investigative Service; and the Department of Homeland Security, Office of the Inspector General—during the lengthy investigation of this case. The Internal Revenue Service also provided valuable assistance.
“The successful prosecution in this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, its law enforcement partners and the US Attorney's Office,” said Edward Denion, Assistant Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should serve as a deterrent to those who would put personal gain above their responsibility to American taxpayers and warfighters.”
“Yesterday’s guilty verdict should send a clear message that we intend to stop these types of fraudulent practices,” stated David Canez, Acting Special Agent in Charge for the U.S. Department of Homeland Security, Office of the Inspector General. “This office will be vigilant in seeking prosecution of any cases in which federal officials and their conspirators cross the line into criminal activity. DHS OIG and its law enforcement partners will continue to hold these shameless individuals accountable.”
“The guilty verdict of former U.S. Marine Corps Officer, Major Jason Wild, and related guilty plea of former Lieutenant Colonel Michael Strom demonstrates the Department of Defense's commitment to fight fraud, waste and abuse. This investigation exemplifies the dedication by the Defense Criminal Investigative Service and its law enforcement partners to identify and prosecute those individuals who seek to enrich themselves at the expense of the taxpayer,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service.
Wild was ordered to appear on February 21, 2017 at 9:00 a.m. for sentencing before Judge Battaglia. Strom was previously ordered to appear for his own sentencing on February 13, 2017.
DEFENDANT Case No. 15-cr-2771-AJB
Jason H. Wild 45 years old Oceanside, California
Michael K. Strom 48 years old Laguna Niguel, California
CHARGES
Wire Fraud Conspiracy - 18 U.S.C. § 1349
Maximum penalty: 20 years’ imprisonment and $250,000 fine
False Claim – 18 U.S.C. § 287
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Department of Defense, Defense Criminal Investigative Service
Naval Criminal Investigative Service
Department of Homeland Security, Office of the Inspector General
Former Edmond Property Manager Pleads Guilty to Defrauding Clients and Failure to Pay TaxesRead the Press Release
Oklahoma City, Oklahoma – Today, ANGELA RENEE RENEAU, from Oklahoma City, pled guilty to one count of wire fraud and one count of failure to file an income tax return, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Between 2010 and 2014, Reneau provided real estate management services to owners of commercial office buildings in the Edmond, Oklahoma, area through her business, Reneau Properties, LLC. At her plea hearing today, Reneau admitted to United States District Judge Vicki Miles-LaGrange that during this time period she made unauthorized transfers of her clients’ rent income funds into her Reneau Properties bank account and used those funds for her personal expenses. Specifically, she admitted that she caused Citizens Bank of Edmond, in Oklahoma, to use interstate wire communications with the bank’s processor, which is located out-of-state, to transfer $11,000 from the bank account of her client, 750 West Covell, LLC, into her Reneau Properties bank account. Reneau admitted that this transfer was not authorized by her client and that she used the funds for her personal expenses. In addition, Reneau also admitted that she knowingly and willfully failed to file a federal income tax return with the Internal Revenue Service for the tax year of 2014.
At sentencing, Reneau faces up to 20 years in prison and a $250,000 fine for the wire fraud charge and up to one year in prison and a $100,000 fine on the tax charge. A sentencing hearing will be set by the court in approximately 90 days.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations Division. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former DLT Worker Pleads Guilty to Theft, Computer Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), pleaded guilty in federal court in Providence today to conspiring to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
Sheku admitted that between June 2009 and February 2015, he used his position at DLT and his authorized access to DLT computer files to participate in a scheme to make unauthorized changes to benefit recipients’ files which resulted in the fraudulent disbursement of more than $508,000 of unemployment insurance benefits.
Sheku’s guilty plea before U.S. District Court Chief Judge William E. Smith is announced by United States Attorney Peter F. Neronha; Colonel Ann C. Assumpico, Acting Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
At the time of his guilty plea, Sheku admitted that he used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. As part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
It is alleged in court documents that the scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
Sheku is scheduled to be sentenced on February XX, 2017.
The matter continues to be investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training and the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former College Patrol Officer Pleads Guilty to Sending Sexually Explicit Images to MinorRead the Press Release
BOSTON – A former Massasoit Community College patrol officer and Somerset Police Department reserve officer pleaded guilty today in U.S. District Court in Boston in connection with attempting to send sexually explicit images and videos of himself to an underage girl.
Cliff Oliveira, 28, of Somerset, pleaded guilty today to one count of attempted transfer of obscene material to a minor. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Feb. 28, 2017.
In November 2015, law enforcement officers discovered that an unknown adult male (later identified as Oliveira) was using the screen name “samuricop” on Kik Messenger to engage in sexually explicit chats and send sexually explicit images to a 13-year-old girl in South Carolina. Undercover officers subsequently engaged samuricop on Kik Messenger using the persona of an underage girl named “Gabbi.”
For approximately a month and half, undercover officers communicated with samuricop – informing him that Gabbi was a 14-year-old, middle school classmate of the 13-year old minor victim. Samuricop asked Gabbi to call him “daddy” and went on to engage in sexually explicit conversations with her. On Jan. 13, 2016, samuricop used Kik Messenger to send several images and a video of himself masturbating to “Gabbi.”
During the course of the communications with the 13-year old victim and with the undercover officers (Gabbi) samuricop informed them that he worked as a police officer. He also repeatedly sent images of a police cruiser and a firearm. Investigators subsequently used those images as well as IP login information provided by Kik to identify Oliveira as the user of the samuricop account. At the time, Oliveira was working as a patrol officer for the Massasoit Community College Police Department and reserve officer for the Somerset Police Department.
The charge of attempted transfer of obscene material to a minor provides for a sentence of no greater than 10 years in prison, three years supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Greenville Country (South Carolina) Sheriff Steve Loftis, made the announcement today. Assistance with the investigation was also provided by the Somerset, Brockton, and Massasoit Community College Police Departments. Assistant U.S. Attorney Jordi de Llano of Ortiz’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Bullitt County, Kentucky, Sheriff’s Deputy Guilty of Money Laundering, Trafficking in Meth and MarijuanaRead the Press Release
Co-defendants admit to concealing the criminal activities from law enforcement
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty pleas of a former Bullitt County, Kentucky, Sheriff’s Deputy, to charges of trafficking in marijuana and methamphetamine and concealing the financial proceeds (money laundering). Two co-defendants admitted to concealing the criminal activities from law enforcement during a 15 month period.
Those pleading guilty in United States District Court on November 16, 2016, before United States District Judge David J. Hale, include Christopher Mattingly, former Bullitt County, Kentucky, Sheriff’s Deputy and co-defendants Ronald A. Shewmaker and Eddie Whitfill, both of Bullitt County. The defendants remain on bond. Co-defendant James F. Howard is scheduled for trial before Judge Hale on December 12, in Louisville, while Hector Renato Orozco Landa and Raymond Carillo remain at large. All three are charged with conspiracy to distribute marijuana and money laundering.
In court, Mattingly admitted that between March 2014 and June 2015, he conspired with the other named defendants to knowingly and intentionally distributing more than 1000 kilograms but less than 3000 kilograms of marijuana imported from California and distributed in the Western District of Kentucky and elsewhere. At trial, the United States would prove these facts by introducing recordings of conversations between the defendant and a co-conspirator, and between the defendant and a reliable confidential informant, wherein the defendant makes statements probative of knowledge and intent to distribute large quantities of marijuana.
Additionally, Mattingly admitted that between March 2014 and June 2015, he conspired with the other named defendants to conduct financial transactions with monetary proceeds derived from trafficking in marijuana, by depositing some proceeds in the bank and by using other proceeds to pay for marijuana shipments. The United States would prove these facts by introducing the defendant’s bank records and eliciting testimony from a reliable confidential informant.
Finally, Mattingly admitted that between February 2015 and June 2015, he conspired with other persons to knowingly and intentionally distributing more than 500 grams but less than 1.5 kilograms of a substance containing a detectable amount of methamphetamine. The United States would prove these facts by eliciting testimony from unindicted co-conspirators and from a reliable confidential informant.
Defendants Whitfield and Shewmaker admitted to concealing their knowledge of Mattingly’s illegal activities from law enforcement between March 2014 and June 2015.
Sentencing is scheduled before Judge Hale on February 8, 2017, in Louisville.
This case is being prosecuted by Assistant United States Attorney Larry E. Fentress and is being investigated by DEA and the Bullitt County, Kentucky Sheriff’s Department.
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Following Extradition of Two More International Cyber Criminals, U.S. Attorney's Office Formally Announces Creation of Cyber Crime UnitRead the Press Release
ATLANTA – Damilola Solomon Ibiwoye and Olayinka Olaniyi, citizens of Nigeria living in Kuala Lumpur, Malaysia, were extradited to the United States and arraigned in federal court in Atlanta on November 18, 2016, in connection with a series of alleged “phishing scams” that targeted colleges and universities across the country, including the Georgia Institute of Technology (“Georgia Tech”).
In connection with their arraignment, U.S. Attorney John Horn announced the creation of a Cybercrime Unit within the Atlanta U.S. Attorney’s Office Criminal Division. The new unit is designed to combat the growing threat of cybercrime in its many forms, such as “hacks” into private networks and theft of proprietary data; the creation and use of malware to harvest personal financial information and logins; and the operation of illicit marketplaces on the darknet. The cyber unit will operate within the office’s Financial Fraud & Cyber Crime Section and will be staffed with five highly-trained and experienced federal prosecutors dedicated to prosecuting cybercrime and assisting federal agencies in their cyber investigative efforts around the world.
“Our office holds a distinguished history of prosecuting some of the highest-profile cyber matters in the country, from the creators of the SpyEye and Citadel malware to the foreign nationals responsible for the hacks into RBS WorldPay, E*Trade, and other corporations,” said U.S. Attorney Horn. “And we have successfully ensured that some of these criminals, who believe themselves to be safe in the shadows of the darknet, are brought to justice in U.S. court. The creation of a dedicated Cyber Unit will build on this expertise to aggressively identify and investigate the newest directions in cybercrime whether committed by individuals, syndicates, or even state actors here or abroad.”
The U.S. Attorney’s Office for the Northern District of Georgia was one of 30 offices across the country that was recently allocated an additional Assistant U.S. Attorney position for the purpose of enhancing its cybercrime prosecution efforts. The awarding of this position reflects the office’s past success in combating cybercrime threats, as well as the need to enhance those efforts against new and emerging cyber threats.
The newly formed cyber unit will investigate and prosecute, among other things, computer hacking, intellectual property theft, and related offenses, including (a) the development or distribution of malware; (b) the theft of property or information from a protected computer, including personal identifying information, health records, financial information, intellectual property, trade secrets, and other sensitive information; (c) distributed denial of service (DDOS) attacks on web servers, and (d) computer intrusions that directly or indirectly impact national infrastructure and national security interests.
The unit will also focus on building and maintaining productive working relationships with the private sector, collaborating on cyber defense practices through one-on-one meetings, seminars, panels, task forces, and case interactions. Cyber prosecutors in the office already regularly participate in numerous speaking engagements each year, and will continue to do so as part of the cyber unit.
The indictment of Damilola Solomon Ibiwoye, 27, and Olayinka Olaniyi, 32, alleges that the defendants directed phishing emails to college and university employees. A “phishing scam” is the act of sending fraudulent emails that appear to come from legitimate enterprises for the purpose of acquiring personal information, including usernames and passwords. The alleged phishing scam targeted Georgia Tech and other colleges and universities in the United States. Once employees entered their login and password information, the defendants captured their personal information and used that information to change payroll direct deposit payment information and fraudulently directed payroll deposits into bank accounts they controlled. The FBI, with the assistance of Georgia Tech, and the Malaysian government, were able to determine that the defendants allegedly launched their phishing attacks while living in Kuala Lumpur, Malaysia. In total, the defendants and co-conspirators allegedly stole over $1 million dollars from over 25 colleges and universities in the United States.
“The arrests and subsequent extraditions of Ibiwoye and Olaniyi are the direct result of global cooperation among US and international law enforcement and the private sector. Individuals and groups targeting US institutions and citizens from abroad through cyber-attacks and spear phishing emails should no longer feel confident that they will remain anonymous and protected by geographic boundaries. These efforts demonstrate the FBI’s commitment to identifying and pursuing cyber criminals world-wide, and serves as a strong deterrent to others targeting American institutions and citizens through email phishing scams. This case should also serve as a reminder to the public to remain vigilant of the continued use of phishing emails seeking to steal their personal information,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office, stated.
The defendants were arraigned before U.S. Magistrate Judge Linda T. Walker on November 18, 2016. A federal grand jury in the Northern District of Georgia returned an indictment against Damilola Solomon Ibiwoye, 27, and Olayinka Olaniyi, 32, on December 15, 2015, on charges of conspiracy to commit wire fraud, computer fraud and aggravated identity theft. Both defendants have been in Malaysian custody since their arrests last year, pending completion of extradition proceedings.
Members of the public are reminded that the indictment referenced above only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey A. Brown is prosecuting the case.
If your company or clients wish to participate in future outreach efforts by the Cyber Unit concerning best practices, or for further information about this case, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Five Individuals Indicted for Involvement in Armed Robberies of Des Moines Businesses and Distribution of DilaudidRead the Press Release
Indictment alleges defendants participated in string of Git-N-Go robberies and used robbery proceeds to purchase and distribute controlled substances
DES MOINES, IA - On November 22, 2016, United States Attorney Kevin E. VanderSchel announced the return of an indictment stemming from an eight month investigation into a series of robberies occurring at businesses in Des Moines, Iowa. The indictment charges Alexander Ray Hamilton with Conspiracy to Interfere with Commerce by Robbery; Conspiracy to Distribute Dilaudid; fifteen counts of Interference with Commerce by Robbery; two counts of Distribution of a Controlled Substance; Attempted Interference with Interstate Commerce by Robbery; Bank Robbery; and Use of a Communication Facility to Facilitate Distribution of Dilaudid.
Sarah Victoria Coe is charged with Conspiracy to Interfere with Commerce by Robbery; Interference of Commerce by Robbery; and Bank Robbery.
Shelly Shannon Avery is charged with Conspiracy to Interfere with Commerce by Robbery; and two counts of Interference of Commerce by Robbery.
Chris Brian Avery is charged with Conspiracy to Interfere with Commerce by Robbery; Use of a Communication Facility to Facilitate Distribution of Dilaudid; and Interference with Commerce by Robbery.
Luke Martin, Jr. is charged with Conspiracy to Distribute Dilaudid and two counts of Distribution of Dilaudid.
The Indictment alleges Defendants Hamilton, Coe, Shelly Avery, and Chris Avery conspired from as early as March 21, 2016, to April 20, 2016, to interfere with commerce by robbery and to commit bank robbery. One or more of the defendants would identify locations to rob, which included various locations of Git-N-Go, Kum & Go, Hy-Vee, and U.S. Bank in Des Moines. As part of the conspiracy, one or more defendants would obtain transportation to and from the robbery, surveil the robbery locations, and ultimately commit the robbery. Defendant Hamilton used some of the proceeds of the robberies to purchase and distribute controlled substances.
An indictment is only an accusation, and the defendants are presumed innocent unless and until proven guilty.
The joint investigation was conducted by the Des Moines Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Attorney's Office for the Southern District of Iowa.
Federal Search Warrants ExecutedRead the Press Release
Council Bluffs, Iowa – On November 22, 2016, federal search warrants were executed at the following locations in Iowa and Nebraska:
• Two warrants executed on Tenth Avenue, Council Bluffs.
• Avenue B, Council Bluffs.
• South 19th Street, Council Bluffs.
• North 15th Street, Omaha.
• North 93rd Street, Omaha.
• Rees Street, Omaha.
• South 39th Street, Omaha.
• North 111th Plaza, Omaha.
• South 48th Street, Omaha.
The searches at these locations were official law enforcement actions involving agents and investigators from the Federal Bureau of Investigation Task Force. No other information or comments will be released until documents have been filed with the court as part of the public record.
Father and Son Plead Guilty to Drug Related Murder on the Hoopa Valley Indian ReservationRead the Press Release
SAN FRANCISCO – Rodney Vincent Ortiz and Vincent Rudy Ortiz (collectively, the defendants) pleaded guilty today in federal court today for their respective roles in the March 21, 2015, drug related shooting and murder on the Hoopa Valley Indian Reservation in Humboldt County, Calif., announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Richard Seeborg, U.S. District Judge.
According to the plea agreement, the defendants committed the shooting and murder following a dispute over a drug transaction that took place a week earlier. Vincent Ortiz, 27, of Willow Creek, Calif., admits he sold what was supposed to be a pound of marijuana to Victim 1, a resident and member of the reservation. When Victim 1 complained that the amount of marijuana was less than a pound, Vincent eventually traveled with his father, Rodney Ortiz, 54, to Victim 1’s residence to resolve the dispute. Rodney Ortiz admits he brought a loaded firearm to the residence; Vincent Ortiz admits he knew Rodney Ortiz brought the loaded firearm and that it was foreseeable his father would use the weapon to shoot Victim 1. When the defendants arrived at the residence, they encountered a group of people inside. An argument ensued between Victim 1 and Rodney Ortiz, resulting in Rodney Ortiz shooting Victim 1 and Victim 2 in the head. Rodney Ortiz then shot Victim 3 in the head and shoulder before fleeing the scene with his son, Vincent. Victim 1 died as a result of the shooting, but Victims 2 and 3 managed to survive. In his plea agreement, Vincent Ortiz admits he aided and abetted Rodney Ortiz’s use, carrying, and discharging of the firearm in furtherance of and in relation to the drug conspiracy and the resulting murder of Victim 1. Vincent Ortiz also acknowledges in his plea agreement that he reasonably could have foreseen the shootings of Victims 2 and 3.
A federal grand jury indicted the defendants on December 17, 2015. In the indictment, the defendants are charged with conspiracy to distribute and possess with intent to distribute marijuana, in violation of 21 U.S.C. § 846 and 841(a)(1) and (b)(1)(D), use of a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A) and 2; and use of a firearm during a drug trafficking crime causing murder, in violation of 18 U.S.C. § 924(j) and 2, obstruction of justice, in violation of 18 U.S.C. § 1512(a)(1)(C) and (k), and use of a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c). Pursuant to today’s plea agreement, the defendants both pleaded guilty to one count of use of a firearm during and in relation to a drug trafficking crime and one count of use of a firearm during a drug trafficking crime causing the murder of Victim 1.
The defendants are next scheduled to appear before Judge Seeborg on May 2, 2017, for a sentencing hearing. The maximum statutory penalties for use of a firearm during and in relation to a drug trafficking crime are life imprisonment, and a mandatory minimum term of 10 years imprisonment, to be imposed consecutive to any other term of imprisonment. The maximum statutory penalty for use of a firearm causing murder is life imprisonment. Each crime carries a maximum term of 5 years supervised release and a $250,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Kimberly Hopkins is prosecuting the case with the assistance of Lance Libatique and Jessica Meegan. The prosecution is the result of an investigation by the Humboldt County Sherriff’s Office, Humboldt County District Attorney’s Office, Eureka Police Department, and the Federal Bureau of Investigation.
Erie Man Pleads Guilty to Robbing BankRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney David J. Hickton announced today.
Eric S. Chadwick, 31, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on February 19, 2015, Chadwick and a co-defendant were involved in the robbery of $1,565 from the First National Bank, located at 3310 West 26th Street, Erie, Pennsylvania.
Judge Cercone scheduled sentencing for March 13, 2017. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Chadwick on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Chadwick.
El Paso Man Pleads Guilty to his Role in a Criminal EnterpriseRead the Press Release
In El Paso, 41-year-old Samuel Velasco Gurrola pleaded guilty to his role in the Velasco Criminal Enterprise (VCE) announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.
On Friday, November 18, 2016, appearing before United States District Judge David Briones, Gurrola pleaded guilty to one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity. As a result, Gurrola faces up to life in federal prison.
By pleading guilty Gurrola admitted that he conspired to possess with intent to distribute 1000 kilograms or more of marijuana; that he conspired to commit a kidnapping in a foreign country; and that while in the course of committing theft of property, and with intent to obtain and maintain control of the property, Gurrola threatened and placed a victim in fear of imminent bodily injury and death by exhibiting a firearm.
According to court records, VCE is responsible for large-volume drug trafficking, money laundering, international and cross-border kidnappings, extortion, robbery, and car theft, among other offenses. VCE operates across the United States in places such as Las Vegas, NV, New Mexico, North and South Carolina, California, and Texas. VCE also operates in Mexico and has its base of operations in El Paso.
Court records also reveal VCE is responsible for the international and multi-state distribution of marijuana, cocaine, and methamphetamine. Narcotics would be transported from Mexico into El Paso, and also into Deming and Lordsburg, NM, by VCE and then distributed to places like Dallas, TX, Las Vegas, NV, and North and South Carolina. VCE also is involved in laundering drug proceeds internationally and also nationally, through banks and other institutions. VCE is responsible for committing multiple kidnappings per month which were planned in El Paso, and then carried out in Juarez, Mexico, from the years of at least 2008 through 2013.
Prior to this plea, on October 17, 2016, jurors convicted Gurrola on another case of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire. According to evidence presented during a trial in 2008, Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Velasco Gurrola was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Velasco Gurrola wished to prevent Sagredo from testifying against him at the aggravated sexual assault trial.
Testimony during the 2016 trial revealed that Samuel Velasco Gurrola arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villarreal, Gurrola’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo was ambushed and murdered.
Gurrola’s sentencing in both cases is set for March 24, 2017. Gurrola has remained in federal custody since his arrest in February, 2015.
This investigation was conducted by the Drug Enforcement Administration and the Homeland Security Investigations, with assistance from the El Paso Police Department and the Federal Bureau of Investigation.
El Departamento de Justicia Resuelve Una Queja de Discriminación Relacionada con la Inmigración Contra el Distrito Escolar Independiente de AldineRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que había llegado a un acuerdo con el Distrito Escolar Independiente de Aldine, Texas que resuelve las acusaciones de que el distrito discriminaba contra inmigrantes autorizados para trabajar, en contravención de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). El distrito es el noveno distrito escolar más grande del estado, con una población estudiantil de casi 70.000 alumnos.
La investigación del Departamento de Justicia, llevada a cabo por la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés), determinó que Aldine obligaba a los que no eran ciudadanos estadounidenses, pero no a los ciudadanos estadounidenses en situaciones similares, que presentaran documentos específicos cuando re-verificaban su permiso de trabajar una vez que sus documentos originales vencían. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos debido a la nacionalidad u origen nacional de sus trabajadores al verificar o re-verificar el permiso de trabajar. Según la INA, todos los trabajadores, incluso los que no son ciudadanos estadounidenses, tienen el derecho de escoger cualquier documentación válida que deseen presentar de la Lista de Documentos Aceptables para comprobar su permiso de trabajar, y los empleadores no pueden limitar la selección de documentos que presenten los trabajadores debido a su ciudadanía u origen nacional.
“Los empleadores deben cerciorarse de que su personal de recursos humanos entiendan las prácticas correctas de contratación,” dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia. “La INA prohíbe la discriminación debido a la ciudadanía y la División de Derechos Civiles continúa haciendo cumplir esta ley por todo el país para recordar a todos los empleadores de sus obligaciones y para reivindicar los derechos de los empleados.”
Según los términos del acuerdo, Aldine revisará sus políticas y procedimientos, pagará una sanción civil de $140.000, e implementará un programa de tres años para capacitar a los empleados, estudiantes y a los padres de estudiantes respecto a la disposición antidiscriminatoria de la INA. Más específicamente, el programa de formación, será creado por el personal de Aldine y se concentrará en educar a los participantes adultos en clases de alfabetización para apoderados de Aldine y en clases de Inglés como segundo idioma (ESL, por sus siglas en inglés), a los alumnos de 12º año matriculados en ciertas clases y a los empleados del distrito.
La OSC es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, dicha ley prohíbe la discriminación debido a la nacionalidad u origen nacional al contratar, despedir, o reclutar o recomendar por comisión; prácticas injustas respecto a documentos; las represalias y la intimidación.
Para más información sobre las protecciones contra la discriminación en el empleo en las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para quienes tengan deficiencias auditivas); llame a la línea directa de la OSC para empleadores at 1-800-255-8155 (1-800-237-2515, TTY para quienes tengan deficiencias auditivas); inscríbase para un webinar gratis en www.justice.gov/crt/about/osc/webinars.php, escriba por correo electrónico a [email protected]; o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleados que crean que fueron sometidos a requisitos distintos respecto a documentación debido a su nacionalidad, estatus migratorio u origen nacional; o a discriminación debido a su ciudadanía, estatus migratorio u origen nacional en la contratación, despido, reclutamiento o recomendación por comisión deben comunicarse con la línea directa de la OSC para trabajadores para obtener ayuda.
El abogado litigante Richard Crespo de la División de Derechos Civiles se encargó de este caso.
El Departamento de Justicia Resuelve Una Queja de Discriminación Relacionada con la Inmigración Contra el Distrito Escolar Independiente de AldineRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que había llegado a un acuerdo con el Distrito Escolar Independiente de Aldine, Texas que resuelve las acusaciones de que el distrito discriminaba contra inmigrantes autorizados para trabajar, en contravención de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). El distrito es el noveno distrito escolar más grande del estado, con una población estudiantil de casi 70.000 alumnos.
La investigación del Departamento de Justicia, llevada a cabo por la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés), determinó que Aldine obligaba a los que no eran ciudadanos estadounidenses, pero no a los ciudadanos estadounidenses en situaciones similares, que presentaran documentos específicos cuando re-verificaban su permiso de trabajar una vez que sus documentos originales vencían. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos debido a la nacionalidad u origen nacional de sus trabajadores al verificar o re-verificar el permiso de trabajar. Según la INA, todos los trabajadores, incluso los que no son ciudadanos estadounidenses, tienen el derecho de escoger cualquier documentación válida que deseen presentar de la Lista de Documentos Aceptables para comprobar su permiso de trabajar, y los empleadores no pueden limitar la selección de documentos que presenten los trabajadores debido a su ciudadanía u origen nacional.
“Los empleadores deben cerciorarse de que su personal de recursos humanos entiendan las prácticas correctas de contratación,” dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia. “La INA prohíbe la discriminación debido a la ciudadanía y la División de Derechos Civiles continúa haciendo cumplir esta ley por todo el país para recordar a todos los empleadores de sus obligaciones y para reivindicar los derechos de los empleados.”
Según los términos del acuerdo, Aldine revisará sus políticas y procedimientos, pagará una sanción civil de $140.000, e implementará un programa de tres años para capacitar a los empleados, estudiantes y a los padres de estudiantes respecto a la disposición antidiscriminatoria de la INA. Más específicamente, el programa de formación, será creado por el personal de Aldine y se concentrará en educar a los participantes adultos en clases de alfabetización para apoderados de Aldine y en clases de Inglés como segundo idioma (ESL, por sus siglas en inglés), a los alumnos de 12º año matriculados en ciertas clases y a los empleados del distrito.
La OSC es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, dicha ley prohíbe la discriminación debido a la nacionalidad u origen nacional al contratar, despedir, o reclutar o recomendar por comisión; prácticas injustas respecto a documentos; las represalias y la intimidación.
Para más información sobre las protecciones contra la discriminación en el empleo en las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para quienes tengan deficiencias auditivas); llame a la línea directa de la OSC para empleadores at 1-800-255-8155 (1-800-237-2515, TTY para quienes tengan deficiencias auditivas); inscríbase para un webinar gratis en www.justice.gov/crt/about/osc/webinars.php, escriba por correo electrónico a [email protected]; o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleados que crean que fueron sometidos a requisitos distintos respecto a documentación debido a su nacionalidad, estatus migratorio u origen nacional; o a discriminación debido a su ciudadanía, estatus migratorio u origen nacional en la contratación, despido, reclutamiento o recomendación por comisión deben comunicarse con la línea directa de la OSC para trabajadores para obtener ayuda.
El abogado litigante Richard Crespo de la División de Derechos Civiles se encargó de este caso.