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Thursday 22 September 2016
Vero Beach Couple Pleads Guilty to Importing Controlled Substances, “Bath Salts” and “Molly,” from ChinaRead the Press Release
This week, a Vero Beach husband and wife pleaded guilty to conspiracy to import controlled substances, commonly referred to as “bath salts” and “molly,” from China into the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
On September 19, 2016, Julius Andrew Reason, III, 32, from Vero Beach, pled guilty to conspiracy to import a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, §§ 952(a) and 963; and conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, §§ 846 and 841(a)(1).
On September 21, 2016, Julius Reason’s wife, Venteria Leanet Reason, 28, also from Vero Beach, pled guilty to conspiracy to import a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, §§ 952(a) and 963.
On March 28, 2016, codefendant Nathasha Thames, 28, also from Vero Beach, pled guilty to conspiracy to import a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, §§ 952(a) and 963; and conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, §§ 846 and 841(a)(1); and possession with intent to distribute a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, § 841(a)(1).
The defendants face a maximum statutory penalty of twenty years in prison and a lifetime of supervised release. The defendants are scheduled to be sentenced on December 8, 2016, before U.S. District Court Judge Robin L. Rosenberg.
According to Court records, in January of 2016, U.S. Customs and Border Protection (CBP) officers conducted a border search of an international mail parcel shipped from Shanghai, China, destined for a U.S. Post Office (P.O.) Box located in Vero Beach, Florida, and found the parcel to contain approximately one kilogram of Dibutylone HCI, a synthetic cathinone, a/k/a “bath salts,” a schedule I controlled substance. USPIS records showed that Thames had applied and paid for the P.O. Box. On January 14, 2016, Julius Reason contacted the Vero Beach Post Office, inquiring about the whereabouts of two parcels. On January 15, 2016, Julius Reason was notified that his packages were ready for pickup. Thames then visited the post office and picked up the packages, before meeting Julius Reason and turning over the parcels. When Julius Reason saw law enforcement he fled from the scene, throwing both parcels.
During the course of the investigation, law enforcement seized items including, a loaded 9mm firearm from Julius Reason’s vehicle and electronic devices, wire transfer records, Chinese chemical company business cards, and $10,168.00 in U.S. currency from his residences.
The investigation further revealed that between June 2014 and January 2016, Julius reason and his wife Venteria Reason sent wire transfers to China exceeding $59,000. Julius Reason, Venteria Reason, and Thames, exchanged communications with Chinese chemical company representatives discussing prices and ordering synthetic cathinones, including Dibutylone and Ethylone, Schedule I controlled substances. The defendants also communicated by text message regarding the local delivery and sales of another controlled substance, commonly referred to as “molly.”
Between June 2014, and January 18, 2016, at least 20 parcels were shipped from China to U.S. P.O. Boxes and addresses linked to Reason and Venteria Reason, in the Southern District of Florida. Five of those parcels were seized by law enforcement and thirteen parcels were delivered.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the USPIS and DEA. Mr. Ferrer also thanked the Indian River Sheriff’s Office for their assistance with this matter. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney’s Office Hosts Roundtable Discussion on Heroin and Opioid Abuse AwarenessRead the Press Release
Savannah, GA – The United States Attorney’s Office for the Southern District of Georgia partnered with Dismas Charities, Savannah to host a roundtable discussion on heroin and opioid abuse. This event was part of the Department of Justice’s inaugural National Heroin and Opioid Awareness Week, taking place September 19-23, 2016. In attendance were representatives of Savannah-Chatham Metropolitan Police Department, Memorial Health University, Recovery Place, Inc., Assisted Recovery Center of Georgia, the DEA and Chatham County Counter Narcotics Team.
Heroin overdoses nationally have risen 224 percent between 2007 and 2013. On an average day, 78 people will die from an opioid-related death. Dr. Jay Goldstein, the chief ER physician at Memorial University Health Center, spoke of the significant surge in opioid dependency that emergency room doctors are encountering on the front lines. The heroin and opioid crisis is hitting close to home. Diane Diver, Clinical Director of Recovery Place, shared that between 2012 and 2014, Chatham County experienced a higher percentage of opioid related overdoes than metro Atlanta.
United States Attorney Edward J. Tarver said, “There has been a significant spike in heroin abuse as a result of prescription opioid addiction. Some people are legitimate patients with a valid prescription and others simply get the drugs illegally from friends, family members and dealers. The Department of Justice is focusing on a threefold approach to combat this epidemic head on: preventing further tragedies by raising awareness, focusing on enforcement priorities by highlighting best practices and improving resources for treatment.”
Community partners, medical professionals and local and federal law enforcement agencies are working together to implement tangible solutions in Chatham County. The goal of this roundtable was to bring community awareness to the dangers of the drug abuse that is devastating families here and across the country. For more information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
U.S. Postal Employee Charged with Viewing Child Pornography on Work ComputersRead the Press Release
BOSTON – A United States Postal Service employee was charged today in U.S. District Court in Worcester in connection with viewing child pornography on USPS computers.
Stephen Mantha, 62, of Spencer, was charged in a complaint with possession of child pornography and accessing with intent to view child pornography. Mantha was arrested yesterday and detained pending a detention hearing scheduled for Sept. 27, 2016.
As alleged in court documents, beginning in August 2015, USPS Office of Inspector General investigators were alerted to suspicious Internet searches being conducted by Mantha on a computer at the Shrewsbury processing and distribution center where he worked as an electronic technician. A subsequent investigation revealed that Mantha was utilizing the USPS computer to search for, and view, images of child pornography on the Internet.
On Sept. 21, 2016, a search warrant executed at Mantha’s residence recovered computers, DVDs/CDs, an external hard drive, and over a dozen thumb drives. A preliminary, on-scene, forensic review of three of the thumb drives revealed images of child pornography.
The charging statutes provide for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Eileen Neff, Special Agent in Charge of the United States Postal Service, Office of Inspector General; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; David Darrin, Chief of the Spencer Police Department, and James Hester, Jr., Chief of the Shrewsbury Police Department, made the announcement today. The case is being prosecuted by Mark Grady of Ortiz’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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/.
U.S. Attorney's Office and One Safe Place Hold Smart on Crime Conference in Arlington, TexasRead the Press Release
DALLAS – The U.S. Attorney’s Office for the Northern District of Texas and the Safe City Commission, which provides programing and services as One Safe Place in Fort Worth, Texas, is hosting a Smart on Crime-Connecting Resources Conference today in Arlington, Texas, at the Mac Bernd Professional Development Center, announced U.S. Attorney John Parker, of the Northern District of Texas.
Deputy Criminal Chief Assistant U.S. Attorney Alex Lewis, of the Northern District of Texas, and Ken Shetter, President of One Safe Place, opened this conference this morning. Other presenters at the conference included experts from various agencies and organizations who spoke on various aspects of the five principles of Smart on Crime.
At the direction of the Attorney General in 2013, the Justice Department launched a comprehensive review of the criminal justice system to identify reforms that would ensure laws are more fairy enforced and – in an era of reduced budgets – more efficiently. Smart on Crime is a series of directives to U.S. Attorney Offices across the nation designed to redirect efforts and assets toward more measure, individualized examinations of both the crime and the criminal.
The five principles of Smart on Crime are: 1) prioritize prosecutions to focus on most serious cases; 2) reform sentencing to eliminate unfair disparities and reduce overburdened prisons; 3) pursue alternatives to incarceration for low-level, non-violent crimes; 4) improve reentry to curb repeat offenses and re-victimizations; and 5) improve reentry to curb repeat offenses and re-victimization.
This Smart on Crime conference brought together representatives from multiple federal, state, and local agencies who are involved in the fight against violent crime so they may develop strong relationships and engage in robust information sharing so that common goals can be achieved.
For more information about Smart on Crime, go to https://www.justice.gov/ag/attorney-generals-smart-crime-initiative
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U.S. Attorney's Heroin and Opioid Task Force recognized with Attorney General's AwardRead the Press Release
The U.S. Attorney’s Heroin and Opioid Task Force will be honored later this year with the Attorney General’s Award, the highest honor given by the Justice Department.
The Task Force will receive the Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety. This award recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes the significant contributions of citizens and organizations that have assisted the Department in the accomplishment of these programs.
The U.S. Attorney’s Heroin and Opioid Task Force was established in 2013 to address the region’s expanding epidemic. The group brings together a diverse group of stakeholders, including law enforcement, the medical community, people in recovery, treatment professionals, judges, public health professionals, educators and others. It focuses on solutions from four perspectives: law enforcement; education and prevention; healthcare policy; and treatment.
Successes to which members of the group have contributed include: working to make Narcan more readily available; presentations to tens of thousands of parents, students and other members of the community at hundreds of town hall meetings and schools; increased training for doctors and other medical professionals about the dangers of opioids; the creation of a heroin-involved death investigation team that treats overdoses as crime scenes, with the goal of filing enhanced criminal charges for dealers when appropriate; and working to increase the availability of drug treatment, among others.
“It is easy to become discouraged about the wave of death and pain that opioids and heroin bring to our community,” said U.S. Attorney Carole Rendon, who chairs the Task Force. “But I know the incredible efforts of all the members of this team make a difference on a daily basis. This approach has become a national model and I know, through hard work, dedication and persistence, we will eventually overcome this threat.”
This comprehensive approach has served as a model and is being replicated by several U.S. Attorney’s Offices around the country.
Members of the Task Force include the Cleveland Clinic, the Cuyahoga County Sheriff’s Department, MetroHealth Medical Center, Cuyahoga County Common Pleas Court, the Cuyahoga County Prosecutor’s Office, the Ohio Attorney General, Orca House, WKYC Channel 3, the Cleveland Division of Police, the DEA, the FBI, the Ohio State Medical Board, the Ohio State Pharmacy Board, the Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, University Hospitals, the ADAMHS Board and others.
While scores of people have made significant contributions to this effort, the number of people who can be individually honored is capped at 15. Those people are:
- Philip Angelo, Cuyahoga County Sheriff’s Department
- Vincent Caraffi, Cuyahoga County Board of Health
- Todd DeKatch, Supervisory Special Agent, Federal Bureau of Investigation
- Dr. Thomas Gilson, Cuyahoga County Medical Examiner
- Gary Gingell, Commander, Cleveland Division of Police
- Dr. Jason Jerry, Cleveland Clinic
- Aaron Marks, member of the recovery community
- Keith Martin, Resident Agent in Charge, Drug Enforcement Administration
- Judge David Matia, Cuyahoga County Court of Common Pleas
- Dr. Joan Papp, MetroHealth Medical Center
- Joseph M. Pinjuh, U.S. Attorney’s Office
- Hugh Shannon, Cuyahoga County Medical Examiner’s Office
- Judge Joan Synenberg, Cuyahoga County Court of Common Pleas
- Craig A. Tame, U.S. Attorney’s Office
- Mike Tobin, U.S. Attorney’s Office
The Attorney General’s Award Ceremony will be held on Thursday, November 10, 2016, at 1:30 p.m. at DAR Constitution Hall, 1776 D Street, NW, Washington, DC, 20006.
U.S. Attorney Parker to Participate in Keller Coalition Symposium to Raise Awareness, Change in Opiate EpidemicRead the Press Release
DALLAS – U.S. Attorney John Parker, of the Northern District of Texas, will participate in a symposium tomorrow, September 22, 2016, entitled, “When the Prescription Becomes the Problem: A Community Response to the Opiate Epidemic,” which is intended to mobilize community leaders and stakeholders to reduce opiate misuse and abuse in North Texas. Keller Stay on Track Coalition is hosting the symposium that is being held at the Hurst Conference Center, 1601 Campus Drive, in Hurst, Texas, from 7:30 a.m. to 4:30 p.m.
National experts, including award-winning journalist Sam Quinones, author of Dreamland: The True Tale of America’s Opiate Epidemic, will address the heroin and opioid overdose death crisis in the U.S. Other experts include, Dr. Don Teater, Medical Advisor for the National Safety Council; Leonard Campanello, Chief of the Gloucester, Massachusetts Police Department; and Dr. Kelly J. Clark, President Elect of the American Society of Addiction Medicine and Chief Medical Officer of Cleanslate Centers. Others participating in the symposium will include federal and state representatives who will discuss medical, prevention, and treatment perspectives
Of particular note, at noon tomorrow, U.S. Attorney John Parker will introduce Chasing the Dragon: The Life of an Opiate Addict, which is being featured as a lunchtime video documentary. The film, a joint production by the Drug Enforcement Administration and the Federal Bureau of Investigation, chronicles the ways drug abuse devastates the lives of users and their families.
Throughout the day, additional resources will be available from various sponsors including JP Health Systems, the Drug Enforcement Administration, Texas Health Harris Methodist Hospital Fort Worth, MHMR Tarrant County, Enterhealth Ranch, Mesa Spring/Innovations, Starlite Recovery and Safe Communities America - Fort Worth.
Prescription drug abuse has long been a priority of the administration, and last week, President Obama proclaimed September 18-24, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. Throughout the week, officials with the Department of Justice throughout the country are participating in hundreds of events highlighting the importance of prevention, enforcement and treatment.
The Keller Stay on Track Coalition, a program of Challenge of Tarrant County, brings Keller community leaders and stakeholders together to address substance abuse prevention priorities, including prescription drug misuse and abuse in adolescents and young adults, underage drinking and binge drinking.
For more information about tomorrow’s symposium, go to http://challengetc.org/
Two Men Indicted for Series of Armed Robberies and Brandishing a Short-Barreled ShotgunRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two men were indicted by a federal grand jury in Anchorage for multiple armed robberies including the armed robbery of Wells Fargo Bank on Aug. 18, 2016.
Kaleem Tikori Fredericks, 23, of Anchorage, and Calel Calvis Alexis Crofford, 23, of Dallas, Texas, were charged in an eight-count indictment that includes charges of armed bank robbery, brandishing a firearm during a crime of violence, conspiracy to commit interference with commerce by robbery, and interference with commerce by robbery, together with three forfeiture allegations.
According to the indictment, Fredericks and Crofford were armed with a short-barreled shotgun and a BB gun, which they used to intimidate bank personnel and customers, and obtained over $25,000 in bank funds during the robbery of Wells Fargo Bank on Aug. 18, 2016. In the week prior, Fredericks and Crofford had conspired to commit a series of armed robberies in Anchorage to include several liquor stores, a gas station, and on the morning of Aug. 18, they also robbed a jewelry store. Fredericks’ phone revealed internet searches for “mountain view robbery,” “how to rob banks,” “how to sell diamonds for cash,” and “anchorage for sale ‘guns.’”
The series of robberies as alleged in the indictment are as follows:
- Aug. 11, 2016 – Fredericks and Crofford robbed the Captain Sparrow Liquor Store located at 1100 W. Benson Boulevard, using a short-barreled shotgun;
- Aug. 14, 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 525 W. Fireweed Lane, using a short-barreled shotgun;
- Aug. 15, 2016 – Fredericks and Crofford robbed the Tesoro Gas Station located at 545 Muldoon Road, using a short-barreled shotgun;
- Aug. 15. 2016 – Fredericks and Crofford robbed the Brown Jug Liquor Store located at 119 Klevin Street, using a short-barreled shotgun;
- Aug. 18, 2016 – Fredericks and Crofford robbed the Jewelry World kiosk at the Dimond Center Mall; and
- Aug. 18, 2016 – Fredericks and Crofford robbed Wells Fargo Bank, using a short-barreled shotgun and a BB gun.
The investigation revealed that on Aug. 18, Fredericks and Crofford drove to Girdwood, Alaska, and disposed of the short-barreled shotgun, a backpack, and some of the clothes worn during the armed robberies. On that same day, they had purchased airline tickets and traveled to the Ted Stevens International Airport together in order to flee to St. Thomas, Virgin Islands.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum sentence for the armed bank robbery of up to 25 years in prison, a fine of up to $250,000, or both, plus an additional 35 years on the gun charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
U.S. Attorney Loeffler commended the FBI, ATF, and APD, who conducted the investigation, as well as the Anchorage Airport Police for their assistance, leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Jackson Residents Face Federal Drug ChargesRead the Press Release
Jackson, Miss – Rodney Nelson a/k/a Rodney Davis, 38, of Jackson, and Bennie Evans, 32, of Jackson, have been charged in a federal indictment with certain controlled substances violations, announced U.S. Attorney Gregory K. Davis and Assistant Special Agent in Charge Daniel Comeaux of the DEA Jackson District Office. The indictment is the result of a two-year investigation by the federal Organized Crime and Drug Enforcement Task Force (OCDETF) in this district.
Rodney Nelson is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride cocaine base, a/k/a "crack", two counts of possession with intent to distribute cocaine hydrochloride, four counts of possession with intent to distribute 28 grams or more of cocaine base, a/k/a "crack", one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute PCP, and one count of carrying a firearm during a drug trafficking crime. If convicted, he faces a maximum sentence of 305 years in prison and over $30 million in fines.
Bennie Evans is charged with one count of conspiracy to possess with intent to distribute PCP, and one count of possession with intent to distribute PCP. If convicted, he faces a maximum sentence of 40 years in prison and a $2 million fine.
The case is scheduled for trial before U.S. District Judge Daniel P. Jordan on November 8, 2016.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the U.S. Marshals Service, Federal Bureau of Investigation, Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, Flowood Police Department, Bureau of Customs and Border Patrol, and the DEA Houston Field Division. It is being prosecuted by Assistant United States Attorney Jerry L. Rushing.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Two Eagle Butte Women Charged with Possession and Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that two Eagle Butte, South Dakota, women have been indicted by a federal grand jury for nine counts of Distribution of a Controlled Substance, Distribution of a Controlled Substance, and Aiding and Abetting.
Marla Cook, a/k/a Marlarae Danielle Iron Lightning, age 39, and Merlina Rose Marrowbone, age 31, were indicted on July 19, 2016. Both appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March and June of 2016, Cook knowingly and intentionally possessed and distributed methamphetamine, a Scheduled II controlled substance, on six different occasions. The Indictment further alleges that between September of 2015 and June of 2016, Marrowbone knowingly and intentionally possessed and distributed methamphetamine on four different occasions.
The charges are merely accusations and Cook and Marrowbone are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Cook and Marrowbone were released on bond pending trial. Trial has been set for November 8, 2016.
Tijuana Man Indicted for Smuggling Almost 6,000 Pills Containing Ultra-Deadly Fentanyl; Officials Troubled by TrendRead the Press Release
Assistant U. S. Attorneys Kevin Mokhtari (619) 546-8402 Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – September 22, 2016
SAN DIEGO – A Tijuana man was arraigned this morning in federal court on charges that he smuggled into the United States almost 6,000 pills containing the ultra-deadly drug fentanyl in a case that signals an alarming trend.
In recent weeks, law enforcement officials have become increasingly concerned over the number of fentanyl seizures at the Ports of Entry by Customs and Border Protection Officers and at the United States Border Patrol checkpoints. When fentanyl, a Schedule II synthetic opioid painkiller, is produced in clandestine laboratories, it can be 100 times more potent than morphine. Exposure to even a trace amount of fentanyl through inhalation or absorption through the skin can be fatal.
In federal court in San Diego today, defendant Jose Arturo Acevedo, 35, of Tijuana, Mexico, was arraigned before U.S. Magistrate Judge William V. Gallo. Acevedo was indicted by a federal grand jury Wednesday on multiple counts related to the smuggling of 5,857 pills containing fentanyl, 55 pounds of methamphetamine, 24 pounds of cocaine, and 12 pounds of heroin. His next court appearance is scheduled for October 24, 2016 at 2 p.m. before U.S. District Judge Cynthia A. Bashant.
The blue pills had markings and the physical dimension of oxycodone, but the Drug Enforcement Administration lab determined that they contained fentanyl. Acevedo was charged with four counts of importation of a controlled substance, in violation of 21, United States Code, Section 952 and 960. According to the complaint originally filed in the case, Acevedo entered the San Ysidro Port of Entry on July 19, 2016, in his vehicle that contained 24 packages of drugs concealed in a speaker box lying on the floor of the vehicle behind the front seats near the passenger door.
In the last two weeks, there have been three additional law enforcement seizures of fentanyl in powder form by Border officials.
On September 9, 2016, defendant Philip Randolph Lilien, 64, a Denver resident living temporarily in Mexico at the time of the offense, was charged with smuggling 19 pounds of fentanyl and 20 pounds of heroin through the San Ysidro Port of Entry. He was apprehended by Customs and Border Protection Officers. According to charging documents, the CBP officers found 11 packages of drugs which were concealed in a spare tire located inside the cargo area of Lilien’s vehicle. He is scheduled to appear in court for a preliminary hearing on September 22, 2016, before U.S. Magistrate Judge Bernard Skomal. Lilien is currently charged with importation of controlled substances, in violation of Title 21, United States Code, Sections 952 and 960.
On September 12, 2016, defendant David Martinez-Carrillo, age 26, of Mexico, was arrested at the United States Border Patrol checkpoint in Pine Valley after agents found 18 pounds of fentanyl and eight pounds of methamphetamine in his vehicle. Martinez-Carrillo has been charged with possession of controlled substances with intent to distribute, in violation of Title 21, United States Code, Section 841(a)(1). He is set for a preliminary hearing on October 11, 2016 before U.S. Magistrate Judge Jill L. Burkhardt.
And most recently, on September 16, 2016, Arturo Torres-Carballo, 28, from El Centro, California, and Erik Alejandro Dominguez, 23, of Mexico, were arrested near the United States Border Patrol checkpoint on Highway 86. According to charging documents, Border Patrol Agents found 33 pounds of fentanyl concealed in 13 packages located in a secret compartment under the rear speaker area of the vehicle. On September 19, 2016, the defendants appeared in court for arraignment on a felony charge of possession with intent to distribute, in violation of 21 United States Code, Section 841(a)(1). They are set for a preliminary hearing on September 29, 2016 before U.S. Magistrate Judge Peter C. Lewis in El Centro, California.
“We are extremely troubled by the number of fentanyl seizures we’ve seen recently,” said U.S. Attorney Laura Duffy. “Drug users, listen up! This is life or death. If you are buying painkillers on the street and not the pharmacy, your drugs might contain fentanyl, and even miniscule amounts of fentanyl can have devastating consequences for those who abuse it or literally even touch it. The extreme danger of fentanyl cannot be overstated.”
“Drug users seeking illicit prescription pills on the street can no longer be sure that they are getting a pharmaceutical product and may be getting fentanyl instead,” said DEA San Diego Special Agent in Charge William Sherman. “Fentanyl is not a better high, it is a potential death sentence.”
“Fentanyl has clearly become a growing epidemic,” said Chief Patrol Agent Richard A. Barlow, of the U.S. Border Patrol, San Diego Sector. “The hazard that it poses is deeply concerning and for that reason, it must be aggressively addressed by the law enforcement community.”
“Fentanyl has increasingly infiltrated our community, imposing a serious and harmful threat as it becomes more common and easily accessible,” said Dave Shaw, special agent in charge for ICE Homeland Security Investigations in San Diego. “Our agents are working closely with local law enforcement partners to identify the criminals responsible and cut off the channels that support this arising threat.”
Last year, the Drug Enforcement Administration released a nationwide public health alert on fentanyl. Fentanyl is anywhere from 25 to 50 times more potent than heroin. The drug and its analogues are being produced to a large extent in China. DEA investigations reveal that the Mexican drug cartels, including Sinaloa, are purchasing fentanyl directly from China and producing fentanyl from precursors sourced from China.
In some parts of the country, heroin is being spiked with fentanyl or being replaced by fentanyl. There are a number of reasons why, but it mainly comes down to economics. Fentanyl generates greater profits than heroin.
DEFENDANTS
Jose Arturo Acevedo Age 35 Mexico Criminal Case No. 16CR2167
Philip Randolph Lilien Age 64 Denver, CO Criminal Case No. 16MJ2825
David Martinez-Carrillo Age 26 Mexico Criminal Case No. 16MJ2857
Arturo Torres-Carballo Age 28 El Centro, CA Criminal Case No. 16MJ8788
Erik Alejandro Dominguez Age 23 Mexico Criminal Case No. 16MJ8788
SUMMARY OF CHARGES
Possession with Intent to Distribute Controlled Substances (21 U.S.C. 841(a)(1)
Importation of Controlled Substances (21 U.S.C. 952 and 960)
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Customs and Border Protection
U.S. Border Patrol
Drug Enforcement Administration
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Charged in Multi-Count Federal Drug IndictmentRead the Press Release
Jackson, Miss – Teofila Sanchez-Chavez, 30, of Houston, Texas, Jose Christian Nunez-Belmonte, 32, of Byram, and Marcus Shelby, 34, of Jackson, have been charged in a federal indictment with conspiracy to possess with intent to distribute cocaine hydrochloride and possession with intent to distribute 500 grams or more of cocaine hydrochloride, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Stephen G. Azzam of the DEA New Orleans Field Division. The indictment is the result of a two-year investigation by the federal Organized Crime and Drug Enforcement Task Force (OCDETF) in this district.
Teofila Sanchez-Chavez, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride, and one count of possession with intent to distribute 500 grams or more of cocaine hydrochloride.
Jose Christian Nunez-Belmonte, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride, one count of attempt to possess with intent to distribute 500 grams or more of cocaine hydrochloride, and one count of possession with intent to distribute 500 grams or more of cocaine hydrochloride.
Marcus Shelby, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride, and one count of possession with intent to distribute 500 grams or more of cocaine hydrochloride.
The case is scheduled for trial before U.S. District Judge Daniel P. Jordan on November 8, 2016. If convicted, the defendants face a maximum sentence of 40 years in prison and a
$5 million fine per count.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the U.S. Marshals Service, Federal Bureau of Investigation, Customs and Border Patrol, DEA Houston Field Division, Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, and the Flowood Police Department. It is being prosecuted by Assistant United States Attorney Jerry L. Rushing.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Tennessee Corporation and Employees Sentenced for BriberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Herschell Becker, John Becker a/k/a Jack Becker, and ADA Station Communication, Inc. were sentenced in federal court yesterday by U.S. District Judge Sharon L. Gleason, for bribing a public official.
Herschell Becker, 49, of Grandview, Tennessee, was sentenced to four years in prison, three years supervised release, and ordered to pay a fine of $150,000. Jack Becker, 54, of Crossville, Tennessee, was sentenced to two years in prison, three years supervised release, and ordered to pay a fine of $30,000. ADA Station Communication, Inc. was sentenced to five years’ probation with a special condition that the company fund and implement an Ethics and Compliance Program including hiring an independent third-party auditor, and ordered to pay a fine of $1 million.
On Aug. 27, 2015, ADA Station Communication, Inc. and Herschell Becker pled guilty to three counts of bribing a public official, and on Sept. 3, 2015, a federal jury convicted Jack Becker of the same conduct. The offenses occurred in June and August 2014.
ADA Station Communication, Inc. is a telecommunications company based in Crossville, Tennessee, which specializes in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video and data networks. Herschell Becker has been the Vice President and 50 percent owner of ADA Station Communication since 1995. Jack Becker, Herschell Becker’s brother, has been an employee of ADA Station Communication since approximately 2003.
According to court documents and trial testimony, ADA Station Communication was awarded subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. On June 18, 2014, Herschell Becker and Jack Becker offered a United States Air Force official $10,000 to accept their deficient work as complete. The Air Force official promptly reported the bribe to law enforcement. Between Aug. 22 and 28, 2014, the Beckers offered and ultimately delivered a $5,000 bribe to the Air Force official to accept their most recent round of deficient work. On Aug. 28, 2014, Herschell Becker texted the Air Force official that if he could help them win the bid for the upcoming work next year, it would be well worth his while. The court concluded that the loss intended to be caused by the bribery was $850,000.
In sentencing the defendants, Judge Gleason pointed out the need to deter others from committing bribery. Judge Gleason noted that when things go wrong, “you don’t try to bribe officials.”
U.S. Attorney Loeffler commended the actions of the Air Force official and investigators. She noted that “corruption in public contracting and public works will not be tolerated at any level.” This case was investigated by the Air Force Office of Special Investigations. The case was prosecuted by Assistant U.S. Attorney Yvonne Lamoureux.
Stonington Man Sentenced to Seven Years for Arson of a Lobster BoatRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jeremy Eaton, 39, of Stonington, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to seven years in prison and three years of supervised release for arson of a lobster boat. He pled guilty to the charge on March 11, 2016.
Court records reveal that on the evening of April 16, 2014, Eaton walked to Stonington Harbor, removed gasoline cans from a skiff docked in the harbor and then used a small boat to transport himself and the gas cans to a fiberglass lobster boat which was moored in the harbor. Eaton then emptied the cans of gasoline into the lobster boat and started a fire which destroyed the boat. Eaton later admitted to others that he had burned the boat.
In imposing the seven-year sentence, Judge Woodcock remarked, “To destroy a lobsterman’s boat is to destroy his livelihood.”
The investigation was conducted by the Maine State Fire Marshal’s Office and the U.S. Coast Guard.
Sterling Man Pleads Guilty to Smuggling Weapons to BoliviaRead the Press Release
ALEXANDRIA, Va. – Joan Manuel Ramirez Lema, 40, of Sterling, pleaded guilty today to charges related to smuggling guns from the United States to Bolivia.
According to the statement of facts filed with the plea agreement, from Jan. 2010 to Aug. 2015, Ramirez Lema smuggled more than 80 firearms from the United States to Bolivia. Ramirez Lema, a U.S. citizen, shipped used vehicles with multiple firearms hidden in door panels. In a statement to Homeland Security Investigations Special Agents, Ramirez Lema said he shipped merchandise and cars to Bolivia via freight forwarding companies in Baltimore, Maryland and Newark, New Jersey. He stated that he usually purchased between two and three guns a month and bought most of the guns in Leesburg and Sterling.
Ramirez Lema faces a maximum penalty of 10 years in prison when sentenced on Jan. 6, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Washington Field Division, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Ronald L. Walutes, Jr. is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-206.
St. Francis Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Craig Edward Valandra, age 34, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about June 20, 2016, at St. Francis, Valandra, having previously been convicted of a felony, knowingly possessed a firearm.
The charge is merely an accusation and Valandra is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Valandra was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for November 15, 2016.
Springfield Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jeffery Robinson, 40, of Springfield, Nebraska, was sentenced on September 22, 2016, in Lincoln, Nebraska, to 6 years in prison by Senior United States District Judge Richard G. Kopf, for possession of child pornography. After serving his prison term, Robinson will be on supervised release for 5 years and must register as a sex offender.
On March 3, 2015, while reviewing data for Peer-to-Peer investigations, an Investigator with the Nebraska Attorney General’s Office observed an IP address making known child pornography files available for sharing. On March 25, 2015, the Investigator’s computer made a direct connection with this same IP address and downloaded several digital files. The Investigator viewed these files and found that one video file depicted a minor engaged in sexually explicit conduct. Further investigation determined the physical location of the internet service to be in Springfield, Sarpy County, Nebraska, and the subscriber as Jeffery Robinson.
On May 4, 2015, a search warrant was executed at Robinson’s home. Investigators performed an on-scene preview of one of Robinson’s computers. The examination revealed multiple child pornography images and videos, and the IP address matched-up with what the Investigator had earlier observed through his online investigation. Seized from the location were two (2) computers, two (2) flash drives, one (1) SanDisk micro SD card, two external (2) hard drives, twenty-one (21) CD/DVDs, and one (1) Kindle Fire. A forensic examination was completed on the seized computer equipment. More than 31,000 “files of interest” related to past child pornography investigations were found on the computer equipment, including files which depicted minors engaged in sexually explicit conduct, including prepubescent minors or minors who had not attained 12 years of age.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska Attorney General’s Office.
Six Individuals Charged for Their Roles in International Money Laundering and Drug Trafficking ConspiraciesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John S. Comer, Special Agent in Charge of the Los Angeles Division of the U.S. Drug Enforcement Administration (“DEA”), announced today an Indictment charging ALEJANDRO JAVIER RODRIGUEZ-JIMENEZ, JESUS RODRIGUEZ-JIMENEZ, ELOY CARDENAS-MORENO, SERGIO URBINA, LEOBARDO TAMEZ, and MARCO CORONADO with conspiring to commit money laundering. ALEJANDRO JAVIER RORDIGUEZ-JIMENEZ, JESUS RODRIGUEZ-JIMENEZ, ELOY CARDENAS-MORENO, and MARCO CORONADO were also charged with conspiring to distribute narcotics. ALEJANDRO JAVIER RODRIGUEZ-JIMENEZ, JESUS RODRIUGUEZ-JIMENEZ, and MARCO CORONADO were further charged with substantive money laundering counts. JESUS RODRIGUEZ-JIMENEZ, SERGIO URBINA, LEOBARDO TAMEZ, and MARCO CORONADO were all previously arrested on criminal complaints in, respectively, Las Vegas; Orlando; McAllen, Texas; and Houston, Texas. The case is assigned to U.S. District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants established a shadow banking system, with stash houses in a number of American cities where co-conspirators received proceeds of hundreds of kilograms of cocaine and heroin, and then laundered them through accounts in North and Central America, Europe, and Asia. This Office, along with all of our federal partners, is committed to stanching the flow of illegal drugs into the United States and shutting down the financial networks that fuel the trade.”
DEA SAC John S. Comer said, “The complexity and scale of operations allegedly consummated by this money laundering organization are immense – hundreds of millions of drug dollars remitted across six continents on behalf of the World’s most violent drug cartels. The investigation led by our office in Las Vegas reflects DEA’s resolve and reach; working with our international, state and local partners, we will cripple these global organizations no matter where they’re based.”
According to the allegations in the Indictment[1], the previously filed criminal complaints against the defendants, and statements made in Court:
The Investigation
Since July 2013, the DEA has been investigating an international drug trafficking and money laundering organization (the “Organization”) involved in trafficking hundreds of kilograms of cocaine and heroin, among other narcotics, and laundering narcotics proceeds through a variety of methods including through one or more seemingly “legitimate” corporations under their control. The Organization has ties to Panama, Mexico, Italy, Spain, and the United States, among other locations, and its members are believed to include each of the defendants.
This prosecution is connected to the prosecution of Roberto Ponce-Rocha, a large-scale international narcotics trafficker based in Central and South America, who used various methods, including commercial shipments, drivers, and couriers to move narcotics around the world, and to import narcotics into the United States. Ponce-Rocha is among four individuals charged in a superseding indictment captioned United States v. Ponce-Rocha, 16 Cr. 30 (JMF) unsealed in the Southern District of New York on May 25, 2016.
ALEJANDRO JAVIER RODRIGUEZ-JIMENEZ ran a number of business in Las Vegas, Nevada, including a LED screens business that he used as a front to facilitate money laundering transactions and to ship narcotics in connection with Ponce-Rocha. Together with his brother, JESUS RODRIGUEZ-JIMENEZ, who was based in Monterrey, Mexico, ALEJANDRO JAVIER RODRIGUEZ-JIMENEZ directed their associates, including ELOY CARDENAS-MORENO, to set up stash houses in various cities throughout the United States, including Atlanta and Philadelphia, in order to receive drug proceeds from criminal clients who wanted those proceeds funneled into the international banking system. MARCO CORONADO, SERGIO URBINA, and LEOBARDO TAMEZ each participated in cash money pick-ups in, among other places, New York City and Atlanta, receiving cash from narcotics traffickers and, as directed by the RODRIGUEZ-JIMENEZ brothers, bringing that cash to co-conspirators with directions to wire it to shell accounts in Mexico, Hong Kong, and Italy, among other places.
In this way, the Organization laundered hundreds of millions of dollars through the international banking system, and facilitated the distribution of hundreds of kilograms of cocaine and heroin, among other narcotics.
* * *
A chart containing the charges and maximum penalties for the defendants is attached.
Mr. Bharara praised the DEA and the Las Vegas Office of the Internal Revenue Service, Criminal Investigation, for their work in the investigation. Mr. Bharara also expressed his appreciation to La Comisión Nacional de Seguridad – Policía Federal, and La Unidad de Inteligencia Financiera, Mexican law enforcement agencies who assisted in the investigation.
This case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Andrew C. Adams and Noah Falk are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Rodriguez-Jimenez, Et al.
COUNT(S)
CHARGE
DEFENDANT(S)
MAXIMUM PENALTIES[2]
ONE
Conspiracy to Commit Money Laundering
Alejandro Javier Rodriguez-Jimenez,
Jesus Rodriguez-Jimenez,
Eloy Cardenas-Moreno,
Sergio Urbina,
Leonardo Tamez,
Marco Coronado
20 years in prison; fine of the greatest of $500,000 or twice the value of the property involved in the transaction
TWO
Conspiracy to Distribute Narcotics
Alejandro Javier Rodriguez-Jimenez,
Jesus Rodriguez-Jimenez,
Eloy Cardenas-Moreno,
Marco Coronado
Life in prison; with a ten-year mandatory minimum prison sentence; $10,000,000 fine
THREE AND FOUR
Money Laundering
Alejandro Javier Rodriguez-Jimenez,
Jesus Rodriguez-Jimenez,
Marco Coronado
20 years in prison; fine of the greatest of $500,000 or twice the value of the property involved in the transaction
FIVE THROUGH SEVEN
Money Laundering
Jesus Rodriguez-Jimenez, Marco Coronado
20 years in prison; fine of the greatest of $500,000 or twice the value of the property involved in the transaction
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the Court.
Six Indicted on Federal Drug ChargesRead the Press Release
Jackson, Miss – Six individuals have been indicted on federal drug conspiracy charges, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Stephen G. Azzam of the DEA New Orleans Field Division. The indictment is the result of a two- year investigation by the federal Organized Crime and Drug Enforcement Task Force (OCDETF) in this district.
Patrick Holiday, 38, of Jackson, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride. If convicted, he faces a maximum sentence of 40 years in prison and a $5 million fine.
Antwaine Rhodes, 30, of Jackson, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride and more than 280 grams of cocaine base, three counts of possession with intent to distribute cocaine hydrochloride, and one count of possession with intent to distribute cocaine base, a/k/a "crack". If convicted, he faces a maximum sentence of life in prison and a $10 million fine.
Merwyn Bankston, 44, of Jackson, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride and more than 280 grams of cocaine base, and two counts of possession with intent to distribute cocaine hydrochloride. If convicted, he faces a maximum sentence of life in prison and a $10 million fine.
Quincy King, 40, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base, one count of possession with intent to distribute cocaine hydrochloride, and one count of possession with intent to distribute cocaine base, a/k/a "crack". If convicted, he faces a maximum sentence of 20 years in prison and a $1 million fine per count.
Zaria Franco, 27, of Houston, Texas, is charged with one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine hydrochloride. If convicted, she faces a maximum sentence of 40 years in prison and a $5 million fine.
Jose Christian Nunez-Belemontes, 32, of Byram, is charged with one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine hydrochloride. If convicted, he faces a maximum sentence of 40 years in prison and a $5 million fine.
The case is scheduled for trial before U.S. District Judge Daniel P. Jordan on November 8, 2016.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the U.S. Marshals Service, Federal Bureau ofInvestigation,Customs and Border Patrol, DEA Houston Field Division, Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department,and the Flowood Police Department. It is being prosecuted by Assistant United States Attorney Jerry L. Rushing.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Sex Offender Indicted for Failure to RegisterRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 21, a federal grand jury charged a Harrisburg man with failure to register as a sex offender.
According to United States Attorney Peter Smith, Kirk Daniel White, age 31, formerly of Lycoming County and more recently of Havre de Grace, Maryland, was charged in a one-count Indictment with failing to update his registration as a convicted sex offender as required by law.
The charges stem from an investigation conducted by the Pennsylvania State Police and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for failure to register as a sex offender is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Seven Indicted on Federal Drug ChargesRead the Press Release
Jackson, Miss – Seven individuals have been charged in a multi-count federal drug indictment charging conspiracy and possession with the intent to distribute cocaine hydrochloride, commonly known as cocaine "powder", and cocaine base, commonly known as "crack", announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Stephen G. Azzam of the DEA New Orleans Field Division. The indictment is the result of a two-year investigation by the federal Organized Crime and Drug Enforcement Task Force (OCDETF) in this district.
Leon Brown, 50, of Canton, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and two counts of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
Shredewrick Anderson, 41, of Richland, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and one count of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
Timothy Perkins, 53, of Sealy, Texas, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and two counts of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
Charlie Lee Martin, 53, of Jackson, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and two counts of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
Peter Gregory, 39, of Utica, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and one count of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
Antwaine Rhodes, 31, of Jackson, is charged with one count of conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base, one count of possession with intent to distribute more than 500 grams of cocaine hydrochloride, one count of possession with intent to distribute more than 28 grams of cocaine base, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Rudolph Walker, 55, of Jackson, is charged with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine hydrochloride, and one count of possession with intent to distribute more than 500 grams of cocaine hydrochloride.
The case is scheduled for trial before U.S. District Judge Daniel P. Jordan, III, on November 8, 2016. If convicted on all offenses:
• Leon Brown, Timothy Perkins, and Charlie Lee Martin each face a maximum sentence of 120 years in prison and $15 million fine;
• Shredewrick Anderson, Peter Gregory, and Rudolph Walker each face a maximum sentence of 80 years in prison and a $10 million fine; and
• Antwaine Rhodes faces a maximum sentence of life in prison and over $15 million in fines.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives with assistance from the U.S. Marshals Service, Federal Bureau of Investigation, Customs and Border Patrol, DEA Houston Field Division, Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, and the Flowood Police Department. It is being prosecuted by Assistant United States Attorney Jerry L. Rushing.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
September Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 11 indictments charging 15 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Jesus Bueno-Hernandez, a/k/a Picho, a/k/a Jesus Bueno-Sicairo, age 39, of Grand Island; Alejandro Heras-Real, a/k/a Baboso, age 26; and Karla Marrufo, age 24, of Grand Island are charged in a 7-count Indictment. Count I of the Indictment charges Heras-Real with distribution of 50 grams or more of a mixture containing methamphetamine on or about July 25, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Bueno-Hernandez and Heras-Real with distribution of 50 grams of more of a mixture of methamphetamine on or about August 3, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Bueno-Hernandez with distribution of 50 grams or more of a mixture of methamphetamine on or about August 11, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Marrufo with distribution of a mixture of methamphetamine on or about August 11, 2016. The maximum possibility penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Counts V and VI of the Indictment charge Bueno-Hernandez with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about August 18, 2016. The maximum possibility penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count VII of the Indictment charges Marrufo with possession with intent to distribute a mixture of methamphetamine on or about August 18, 2016. The maximum possibility penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Timothy Caruso, a/k/a Timothy Edwards, age 40, of Omaha, is charged with failure to register as a sex offender. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Moises Figueroa Garcia, age 39, of Council Bluffs and Jose Arreola-Saucedo, age 30, of Compton, California are charged in a 6-count Indictment. Count I of the Indictment charges Garcia and Arreola-Saucedo with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine beginning on or about February 4, 2016, and continuing to on or about April 22, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Arreola-Saucedo with possession with intent to distribution 500 grams or more of a mixture of methamphetamine on or about April 22, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Arreola-Saucedo with possession with intent to distribute 100 grams or more of mixture containing heroin on or about April 22, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Garcia with attempted possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about April 22, 2016. The maximum possibility penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count V of the Indictment charges Garcia with attempted possession with intent to distribute 100 grams or more of a mixture containing heroin on or about April 22, 2016. The maximum possibility penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment. Count VI of the Indictment charges Garcia with illegal reentry after deportation on or about April 22, 2016. The maximum possibility penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Aaron Garcia, age 26, of Elgrove, Illinois, is charged with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about July 12, 2016. The maximum possibility penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment.
* Gabino Huerta-Navarrete, age 51, of Carter Lake, Iowa, is charged with illegal reentry after deportation after a felony conviction on or about September 7, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Aaron Jensen, age 29, of Sioux City, Iowa, is charged with Domestic Assault by Habitual Offender in Indian County on or about September 1, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marco Jimenez Fernandez, age 31, and Margarita Robles-Aguirre, age 40 are charged with possession with intent to distribute a mixture containing cocaine on or about June 1, 2016. The maximum possibility penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Jill Little, age 43, of Omaha is charged in a four-count Indictment. Counts I-IV of the Indictment charge Little with distribution of a mixture containing methamphetamine on or about March 28, 2016, on or about April 15, 2016, on or about April 28, 2016 and on or about May 23, 2016. The maximum possibility penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment for each count.
* Deyvi Eden Martinez Yos, age 23, of Lincoln, is charged with illegal reentry after deportation on or about September 1, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* German Omar Palma Elvir, age 48, of Omaha, is charged with illegal reentry after deportation after 3 or more misdemeanor convictions on or about January 27, 2016. The maximum possible penalty if convicted is10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* John H. Todd, age 64, is charged with influencing a federal official by threat on or about August 4, 2016. The maximum possible penalty if convicted is10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Scrap Metal Business Owner Indicted for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a scrap metal business in Kansas City, Mo., that primarily operated on a cash bases has been indicted by a federal grand jury for tax evasion.
Joseph Lee Scott Deardorff, 31, of Kansas City, was charged in a four-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Sept. 20, 2016. That indictment was unsealed and made public upon Deardorff’s arrest and initial court appearance.
Deardorff owns and operates Total Recovery and Recycling, LLC, which is in the business of buying and selling scrap metal and scrap vehicles. The indictment alleges that Deardorff took a series of steps to willfully and intentionally evade payment of taxes and to hide assets from the Internal Revenue Service.
During the calendar years 2010 to 2012, the indictment says, Deardorff, received $497,543 in taxable income from 2010 to 2012. Deardorff owed $172,574 in taxes on that income, but willfully and knowingly failed to file accurate tax returns.
Deardorff allegedly attempted to conceal his assets from the Internal Revenue Service. Deardorff cashed approximately $740,547 of the $743,225 worth of checks he received from the sale of scrap vehicles and scrap metal in calendar year 2010, the indictment says. Deardorff cashed the $740,547 checks at multiple gas stations and check cashers throughout the metro area. In 2011 Deardorff allegedly cashed $731,656 of the $736,070 worth of checks received from sales, and in 2012 he allegedly cashed $452,663 of the $453,625 worth of checks he received. All total, for the years 2010 through 2012, Deardorff cashed checks for $1,924,867 of the $1,932,919 of his total receipts.
According to the indictments, when Deardorff sold scrap vehicles and metal, he requested the checks he received be under $1,500 so they would be easier to cash at multiple gas stations and check cashing businesses. Approximately 99 percent of checks made payable to Deardorff or his business from the scrap metal companies were in dollar amounts of $1,500 or less. Deardorff did not deposit into a bank account, the indictment says, but cashed approximately 90 percent of the checks from the scrap metal businesses.
Deardorff allegedly purchased, with cash, all of the scrap vehicles and scrap metal he processed for sale from 2010 through 2012. Deardorff allegedly cashed the checks he received from the sale of scrap vehicles and scrap metal then purchased, with cash, additional scrap vehicles and scrap metal in an effort to hide the money he received from the sale of vehicles and metal from the Internal Revenue Service.
Deardorff also used cash from the sale of scrap vehicles and scrap metal to purchase multiple properties for business and investment purposes, the indictment says, multiple Corvettes for investment purposes, and high-end GPS units, speakers, CD players, and DVD players for his tow trucks.
According to the indictment, Deardorff paid all of his employees in cash from 2010 to 2012. Deardorff allegedly failed to file Forms W2 for any of his employees from 2010 to 2012. The contract labor costs in this matter which were unreported were approximately $172,800.
The federal indictment charges Deardorff with one count of attempting to interfere with the administration of internal revenue laws and three counts of tax evasion.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by IRS-Criminal Investigation.
Savannah Gang Leader Sentenced to 262 Months in Federal PrisonRead the Press Release
SAVANNAH, GA: Shavar Spence, a/k/a “Veezy,” 32, of Savannah, Georgia, was sentenced earlier this week by Chief U.S. District Judge Lisa Godbey Wood to serve 262 months in federal prison for trafficking drugs and unlawfully possessing firearms. After Spence completes his nearly 22-year prison term, he will be supervised by the United States Probation Office for an additional five years. Parole has been abolished in the federal system.
According to the evidence presented at sentencing, Spence was the leader of the “Clock Gang Muzik Group 12:30” (CGMG), an armed drug trafficking organization that operated in two locations within the Cuyler Brownsville neighborhood in Savannah. The CGMG was organized, worn CGMG gang clothing, and was armed with firearms during drug transactions. After conducting undercover purchases of drugs from members of CGMG, law enforcement executed search warrants at the locations where CGMG operated in Cuyler Brownsville. Law enforcement seized crack cocaine, marijuana, MDMA, ammunition, military ballistic vests and five firearms, including a Kel-Tec, Model Sub 2000, .40 caliber semiautomatic rifle. Disturbing evidence presented at sentencing indicated that a toddler was allowed to handle a firearm that appeared to be the Kel-Tec, semiautomatic rifle. At sentencing, the Court noted that Spence was the leader of a dangerous and highly organized gang that was attempting to train a new generation.
U.S. Attorney Edward Tarver said, “It is deeply troubling that in 2016 this defendant led an organization that taught African American children how to engage in violent crime and criminal drug activity. There should be no doubt that if you’re involved in criminal gang activity, pushing poison in our streets, or illegally possessing and using firearms, you should expect to serve a very long sentence in a federal prison. We will continue to work with our federal and local law enforcement partners to end gang violence and criminal drug sales in Savannah.”
This case was investigated by the ATF and the Savannah-Chatham Metropolitan Police Department. The U.S. Attorney’s Office prosecuted Spence and other members of the CGMG as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences.
Assistant United States Attorney Tania D. Groover prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Francisco Residents Sentenced for Robbery and Assault with A Dangerous Weapon in the PresidioRead the Press Release
SAN FRANCISCO – Tiffany Smith was sentenced today to 60 months in prison and ordered to pay $8,946 in restitution for robbery and assault with a dangerous weapon, announced United States Attorney Brian Stretch and United States Park Police Chief Robert MacLean. Smith’s co-defendant, Daron McClinton of San Francisco, was sentenced one week ago to 63 months in prison and also ordered to pay $8,946 in restitution for the same crimes. The sentences, imposed by the Honorable William H. Orrick, U.S. District Judge, followed guilty pleas entered by the defendants earlier this year.
According to the plea agreements, Smith and McClinton admitted that on Saturday October 3, 2015, they were at the Palace of Fine Arts when they spotted their victim, a professional photographer, and followed him to the Presidio. The defendants confronted the photographer after he parked his car and began unloading his equipment. Smith pointed what appeared to be a gun at the victim and demanded the victim’s property. When the victim did not comply, both Smith and McClinton repeatedly struck the victim in his head with dangerous weapons until he relinquished the equipment. The defendants then fled with the property.
The defendants were indicted by a federal grand jury on October 29, 2015. They were charged with robbery on federal land, in violation of 18 U.S.C. § 2111; conspiracy to commit robbery, in violation of 18 U.S.C. § 371; and assault with a dangerous weapon on federal land, in violation of 18 U.S.C. § 113(a)(3). Smith pleaded guilty to the charges on July 7, 2016, and McClinton pleaded guilty to the charges on May 5, 2016.
In addition to the prison terms and restitution, Judge Orrick sentenced Smith and McClinton each to three-year terms of supervised release. The defendants were both immediately remanded to custody after sentencing.
Special Assistant U.S. Attorney William J. Edelman prosecuted the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the U.S. Park Police.
Rosebud Man Sentenced for Simple AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man charged with Simple Assault pled guilty and was sentenced on September 16, 2016, by U.S. Magistrate Judge Mark A. Moreno.
James Edward Brasure, age 42, was sentenced to seven days in custody, and a $10 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on February 4, 2016, when Brasure assaulted his wife by grabbing her by the shoulder, hitting her head on the closet door, and hitting her in the mouth. The responding officer observed swelling on the victim’s forehead and blood on her lip.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Carrie G. Sanderson.
Brasure was remanded to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Operating a Motor Vehicle Under the Influence of Alcohol with a Minor PresentRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Operating a Motor Vehicle Under the Influence of Alcohol with a Minor Present in the Motor Vehicle was sentenced on September 16, 2016, by U.S. Magistrate Judge Mark A. Moreno.
Colton Poorman, age 36, was sentenced to 1 year in custody, 1 year of supervised release, and a special assessment of $25 to the Federal Crime Victims Fund.
Poorman was indicted by a federal grand jury on March 15, 2016. He pled guilty on July 22, 2016.
The conviction stemmed from an incident on the morning of October 11, 2015. Poorman was drinking alcoholic beverages and at approximately 10:00 AM, he told his girlfriend to ride with him in a vehicle. Poorman also wanted to take his child, age 2, with him in the vehicle. His girlfriend advised him not to drink alcohol and not to drive after drinking. Nonetheless, Poorman’s girlfriend and the child went with him in the vehicle. His girlfriend held the child while Poorman drove from Mission to Rosebud, and he picked up three additional passengers. He drove to the All Stop Gas Station in Rosebud, where he parked the vehicle. At no time was his child placed in a child safety restraint.
An officer with the Rosebud Sioux Tribe Law Enforcement Services arrested Poorman at the All Stop for driving while intoxicated, and he was taken to the Adult Correctional Facility in Rosebud.
At the time of his arrest, Poorman was on federal supervised release for a non-related felony conviction.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Poorman was immediately turned over to the custody of the U.S. Marshals Service.
Romanian National Sentenced to Three Years in Prison for Role in Computer Hacking SchemeRead the Press Release
NEWARK, N.J. – A Romanian citizen was sentenced today to 36 months in prison for orchestrating an international hacking scheme targeting retailers, security companies, medical offices and individuals in the United States, U.S. Attorney Paul J. Fishman announced.
Mircea-Ilie Ispasoiu, 31, of Drobeta-Turnu Severin, Romania, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One and Count Seven of an indictment charging him with wire fraud and aggravated identity theft. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2011 through February 2014, Ispasoiu was employed as computer systems administrator at a large financial institution in Romania. Ispasoiu’s scheme involved hacking networks belonging to retailers, security companies, medical offices and individuals in order to steal user names and passwords, personal identifiers and credit and debit card data. Ispasoiu also gained access to a computer at a large security company that ran background checks on job applicants. Ispasoiu stole the applicants’ personal identifying information, including their fingerprints.
In addition to the prison term, Judge McNulty sentenced Ispasoiu to three years of supervised release and ordered him to pay restitution of $907,204.88.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentence. U.S. Attorney Fishman also thanked the Justice Department’s Office of International Affairs in Washington, as well as the Prosecutor’s Office attached to the High Court of Cassation and Justice in Romania and its law enforcement partners, for their support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Rockland Woman Sentenced to over Nine Years for Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jackie Madore, 46, of Rockland was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 110 months in prison and three years of supervised release for conspiring to distribute and possess with the intent to cocaine base, commonly known as “crack.”
According to court records, between January 2010 and August 2013, the defendant conspired to distribute almost a kilogram of crack in Penobscot County and elsewhere. She sold half-gram bags for $50 and gram bags for $100. She transferred the proceeds of her sales to her source of supply in the New Haven, Connecticut area and got cash and crack in exchange. The crack was transported from Connecticut to the Bangor area by other conspirators. Members of the conspiracy from New Haven included members of the Red Side Guerilla Brims, a violent street gang affiliated with the Almighty Blood Nation, a national street gang.
The case was investigated by the Maine Drug Enforcement Agency and the New Haven, Connecticut Office of Bureau of Alcohol, Tobacco, Firearms and Explosives, and the City of New Haven Department of Police Services.
Rockford Man Sentenced to over 15 Years for Firearm OffensesRead the Press Release
ROCKFORD — A Rockford man was sentenced in federal court by U.S. District Court Judge Philip G. Reinhard for his role in a conspiracy to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition, and other firearms offenses.
TEOVANNI CUNNINGHAM, 31, was sentenced Tuesday to a total of 188 months in federal prison, followed by three years of supervised release. Cunningham also was ordered to pay restitution to victims of the conspiracy.
Cunningham pleaded guilty on May 31, 2016, to conspiring to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition; receiving, possessing, concealing, and storing stolen firearms and ammunition; and illegally possessing firearms and ammunition as a felon. In a written plea agreement, Cunningham admitted that he conspired with codefendants, MICHAEL SCHAFFER, 34, and MICHAEL TAPIA, 25, of Belvidere, Ill., to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition. Cunningham admitted that, on Dec. 31, 2012, he and Tapia broke into a residence in Rockton, Ill., and stole over 21 firearms and hundreds of rounds of ammunition from the residence. The plea agreement states that Cunningham learned about the firearm collection from Schaffer, who showed Cunningham where the residence was located and informed Cunningham when the residents would be away from home. Cunningham admitted that he and Tapia later sold or disposed of stolen firearms and ammunition to individuals in northern Illinois. Cunningham also admitted that he transferred four of the stolen firearms to codefendant DARRELL REED, 28, of Byron, Ill., and he gave firearms to Schaffer for Schaffer’s part in the conspiracy.
Schaffer pleaded guilty on June 3, 2016, to conspiring to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition, and Reed pleaded guilty on June 15, 2016, to receiving, possessing, concealing, storing, selling, and disposing of stolen firearms. Tapia was found guilty by a federal jury on August 25, 2016, of conspiracy to receive, possess, conceal, store, sell, and dispose of stolen firearms and ammunition, and other firearms offenses. Sentencing is scheduled for Reed on Oct. 14, 2016, at 9:30 a.m., and for Tapia on Dec. 14, 2016, at 9:00 a.m.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery A. Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The Federal Bureau of Investigation, Winnebago County Sheriff’s Department, Rockton Police Department and Rockford Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Talia Bucci and Michael D. Love.
Real Estate Investor Charged in 14-Count Indictment Alleging Bank and Mail Fraud, Money LaunderingRead the Press Release
Memphis, TN – A real estate investor has been charged in a 14-count indictment that alleges he defrauded three banks and a mortgage lending business. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Thomas L. Boyd, 43, of Memphis, Tennessee, owned a real estate agency, Wonderful Properties, LLC. Between April 2006 and September 2014, Boyd, aided and abetted by others, allegedly engaged in a scheme to defraud Regions Bank, Bank of America, First Tennessee Bank, and Oak Tree Funding.
Boyd allegedly made false statements in connection with mortgage loan applications for persons who were financing the purchase of properties from his company. In many instances, the defendant failed to disclose to lenders on HUD-1 settlement sheets that he was paying a portion of the loan proceeds to the borrowers.
Boyd's alleged scheme caused the lenders to disburse approximately $653,000 in loan proceeds.
On Thursday, September 22, Boyd was arrested and had his initial appearance in federal court before U.S. Magistrate Judge Tu M. Pham.
Boyd is being charged with eight counts of bank fraud, two counts of mail fraud, and four counts of money laundering. Each count of bank fraud carries a penalty of up to 30 years in federal prison and a fine of up to $1 million; each count of mail fraud carries a penalty of up to 20 years and a fine of up to $250,000; and each count of money laundering carries a penalty of up to 10 years and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation; Federal Housing Finance Agency - Office of Inspector General; Department of Housing and Urban Development - Office of Inspector General; U.S. Postal Inspection Service; and IRS-Criminal Investigation.
Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Prior Felon from Valencia County Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Johnny Sanchez, 39, of Los Lunas, N.M., was sentenced today in federal court in Albuquerque, N.M., to 72 months in prison followed by three years of supervised release for being a felon in possession of a firearm.
Sanchez was arrested on Sept. 9, 2014, on a federal indictment charging him with being a felon in possession of a firearm and possession of a stolen firearm. The indictment alleged that the crimes took place on May 29, 2013, in Valencia County, N.M.
On June 22, 2016, Sanchez pled guilty to the felon in possession of a firearm charge. In entering the guilty plea, Sanchez admitted that he was prohibited from possessing firearms on May 29, 2013, because of his previous felony convictions for aggravated battery with a deadly weapon and being a felon in possession of a firearm. Sanchez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Lunas Police Department with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo prosecuted the case.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 21, a federal grand jury in Harrisburg charged Jose Miguel Francisco with illegal re-entry into the United States by a previously deported alien. Francisco, age 30, was previously deported from the United States in 2011.
This matter was investigated by the Department of Homeland Security, Immigration and Customs Enforcement. Prosecution has been assigned to Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Press Conference Advisory: Thursday, September 22, 2016, at 12:00 p.m.Read the Press Release
There will be a press conference today at noon to announce public corruption charges against nine defendants, including Joseph Percoco, the former Executive Deputy Secretary to the Governor, and Alain Kaloyeros, the President of SUNY Polytechnic Institute, for their roles in two bribery and fraud schemes in connection with the award of hundreds of millions of dollars in New York State contracts and other official state actions. Relevant charging documents are attached.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
Adam Cohen, Special Agent-in-Charge of the Buffalo Field Office of the Federal Bureau of Investigation
Shantelle P. Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division
WHAT:
Press Conference
WHEN:
Thursday, September 22, 2016 at 12:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza, New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
Portland Metro Event Aimed to Build Relationships and Trust Between Public Safety and Community LeadersRead the Press Release
TIGARD, Ore. – On Thursday, September 22, 2016, leaders from public safety agencies and civil society organizations from across the Portland metropolitan area met to discuss barriers to building community trust and identify strategies for overcoming these challenges. The one-day summit was held at the Muslim Educational Trust (MET) in Tigard.
The event was the culmination of efforts by a diverse steering committee, established with the core purpose of developing trust and relationships in our communities amidst heightened tension and political rhetoric.
“The erosion of public trust in police, prosecutors, and judges within our judicial system poses a significant impediment to community trust, as well as the safety of community members and our law enforcement partners across the nation,” said Billy J. Williams, United States Attorney for the District of Oregon. “Oregon is not immune to the issues that create and perpetuate this lack of trust. This event is another step forward in building these critical relationships and ensuring the safety of all Oregon communities, and the law enforcement personnel who serve honorably to protect us.”
A series of panel discussions featured representatives from public safety and civil society organizations from across the region, including the Urban League of Portland, Latino Network, Unite Oregon, Catholic Charities of Portland, Portland Police Bureau, Washington County District Attorney’s Office, Washington County Sheriff’s Office, and U.S. Immigration and Customs Enforcement. Opening remarks were provided by MET President Wajdi Said and Washington County Sheriff Pat Garrett. The event’s keynote speaker was Dr. Shariff Abdullah, founder and president of the Commonway Institute.
For more information about the event, please contact MET Director of Public Relations Rania Ayoub at [email protected], Washington County Sheriff Pat Garrett at [email protected], or Assistant U.S. Attorney Suzanne Hayden at [email protected].
Physical Therapist Pleads Guilty to Obstruction and Tax Fraud ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIELLE FAUX, 48, of Weston, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of obstruction of a federal audit, and one count of making false statement on a federal income tax return.
According to court documents and statements made in court, FAUX owns and operates Danielle Faux PT, LLC, a physical therapy clinic located at 27 Lois Street in Norwalk. In August 2009, a contractor for the Medicare program conducting an audit of FAUX’s physical therapy practice contacted FAUX and requested records of 40 claims for physical therapy that FAUX had submitted to Medicare. The requested records included appropriate documentation to support the services billed, including the physical therapy progress notes, physical therapy flow sheet/activity sheets, and any additional documentation verifying medical necessity for the physical therapy procedures. Because no patient progress notes or similar records existed that would support many of the Medicare claims, FAUX instructed a physical therapist working for her to create detailed notes in the patient files that were requested in the audit, and FAUX similarly created such records.
As part of her plea, FAUX also admitted that from 2008 through 2011, she skimmed checks and cash proceeds from her physical therapy practice and did not declare the skimmed proceeds on her federal income tax returns. Through this conduct, FAUX avoided paying $77,640 in taxes over the four-year period.
Judge Underhill scheduled sentencing for December 15, 2016, at which time FAUX faces a maximum term of term of imprisonment of five years and a fine of up to $250,000 on the obstruction count, and a maximum term of imprisonment of three years and a fine of up to $100,000 on the tax count.
This matter is being investigated by the Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of the Inspector General, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
Pharmacy robber sentenced in federal courtRead the Press Release
Stole prescription pain pills at gunpoint
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today the sentencing of an Indianapolis man for robbing a Southside CVS Pharmacy. Anthony Jackson, 19, was sentenced to 111 months (over nine years), by U.S. District Judge Jane Magnus-Stinson.
“Pharmacy robberies not only put the employees and patrons of the store at risk but introduce dangerous opioid prescription drugs into our community,” said Minkler. “Those pills contribute to addiction, violence and other social issues that negatively affect public safety.”
On October 14, 2015, Jackson entered the CVS Pharmacy at 3705 Kentucky Av. in Indianapolis armed with a 9mm handgun. He robbed the pharmacy and fled out the emergency exit door. He was quickly apprehended by members of the IMPD Commercial Robbery Unit and FBI agents who were nearby as part of an on-going investigation.
In total, 3649 Oxycodone pills, 512 Alprazolam pills, 548 Hydrocodone pills, 107 Morphine pills and other controlled substances were taken from the pharmacy and recovered.
“In 2015, Marion County was the epicenter for pharmacy robberies in Indiana,” said IMPD Chief Troy Riggs. “We will continue to work with our federal partners, including the U.S. Attorney’s Office, to vigorously purse federal charges against those committing these violent crimes. Successful prosecution of these cases at the federal level should serve as a deterrent to those targeting pharmacies in our city.”
According to Senior Litigation Counsel Bradley A. Blackington who prosecuted this case for the government, Jackson must serve three years of supervised release following his term of imprisonment.
Papillion Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on September 22, 2016, Casey Eugene Knudsen, 22, of Papillion, was sentenced to 10 years (120 months) in prison for his involvement in a conspiracy to distribute and possess with intent to distribute 500 grams or more of a substance containing methamphetamine between July of 2014 and January of 2016. Following the prison term, Knudsen will serve five years on supervised release.
Information obtained by law enforcement indicated that Knudsen was responsible for the distribution of at least 5 kilograms (11 pounds) of methamphetamine in the Lincoln and Omaha areas. On January 5, 2016, Omaha Police officers executed a search warrant at an Omaha business, owned in part by Knudsen, and found approximately 17 grams of methamphetamine, items commonly used in drug distribution, and several firearms.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Omaha Police Department and the Sarpy County Sheriff’s Department.
Online Seller of Counterfeit Luxury Items Sentenced to Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced David Joseph Gruber (53, Jacksonville Beach) to 30 months in federal prison for conspiracy to traffic in counterfeit goods, conspiracy to commit money laundering, and failure to appear. The Court also ordered him to forfeit three pieces of real property located in Jacksonville, which are traceable to proceeds of the offenses. Further, the U.S. Immigration and Customs Enforcement has administratively forfeited $42,217.94 from accounts held by Gruber, which were further proceeds of his offenses. Gruber pleaded guilty in March 2016.
According to court documents, from at least as early as April 2007 through March 2014, Gruber, aka “China Dave,” owned and operated a website through which he and his wife sold goods and products bearing counterfeit trademarks owned by Burberry, Gucci, Louis Vuitton, Chanel, Juicy Couture, Rolex, Hermes, Dolce & Gabbana, Versace, Tiffany & Co., Prada, Coach, Breitling, Nike, and Fifth & Pacific Companies. The products included handbags, watches, shoes, and clothing. Gruber purchased several pieces of real property with proceeds from his trafficking in counterfeit goods.
"These crimes impact our economy and businesses," said Susan L. McCormick, special agent in charge of HSI Tampa. "HSI special agents work relentlessly to protect intellectual property rights."
Gruber’s wife, Xiao Ling Liu, aka Shally Gruber, was also charged for her role in this case. She remains a fugitive.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Oklahoma City Man Pleads Guilty to Firearm Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUSTIN RAY BAILEY, age 36, of Oklahoma City, Oklahoma, pled guilty to POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years of imprisonment or more than Life, up to a $250,000.00 fine or both.
The Indictment alleged that on or about June 27, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess a firearm, which had been shipped and transported in interstate commerce, in furtherance of a drug trafficking crime.
The charges arose from an investigation by the Sallisaw Police Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. Sentencing will be scheduled upon its completion. The defendant will remain in the custody of the United States Marshals Service, pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
North Carolina man sentenced to 63 months in prison for possession of child pornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a North Carolina man was sentenced Wednesday to 63 months in prison for possessing a sexually explicit image of a Lafayette minor.
Eric Teague, 48, of Granite Falls, N.C., was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of child pornography. He was also sentenced to three years of supervised release and must register as a sex offender. According to the June 23, 2016 guilty plea, Teague contacted a minor in the Lafayette area through a social media site online. The defendant received a sexually explicit image from the minor in January of 2015 and was later found in possession of the image.
Homeland Security Investigations investigated the case. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Nine Defendants, Including Joseph Percoco, Former Executive Deputy Secretary to the Governor, and Alain Kaloyeros, President of Suny Polytechnic Institute, Charged with Federal Corruption and Fraud OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Adam Cohen, Special Agent-in-Charge of the Buffalo Field Office of the Federal Bureau of Investigation (“FBI”), and Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a Complaint charging eight defendants with federal public corruption offenses, including JOSEPH PERCOCO, the former Executive Deputy Secretary to the Governor of the State of New York, and ALAIN KALOYEROS, the President of SUNY Polytechnic Institute (“SUNY Poly”). The charges arise from two separate but overlapping schemes involving bribery, corruption, and fraud in the award of hundreds of millions of dollars in New York State contracts and other official state actions.
In the first scheme, PERCOCO is charged with soliciting and accepting more than $315,000 in bribes in return for taking official state action to benefit an energy company (the “Energy Company”) and a Syracuse-based real estate developer (the “Syracuse Developer”). As part of this scheme, PETER GALBRAITH KELLY JR., an executive at the Energy Company, and STEVEN AIELLO and JOSEPH GERARDI, executives at the Syracuse Developer, are charged with orchestrating the payment of bribes to PERCOCO.
In the second scheme, AIELLO and GERARDI, along with LOUIS CIMINELLI, MICHAEL LAIPPLE, and KEVIN SCHULER, who are executives at a Buffalo-based development company (the “Buffalo Developer”), are charged with paying hundreds of thousands of dollars in bribes to TODD HOWE, a consultant hired by KALOYEROS to help administer the state’s “Buffalo Billion” initiative and related programs. As the charges allege, in exchange for the bribe payments, HOWE and KALOYEROS secretly rigged the bids on lucrative state-funded contracts to ensure that the Syracuse Developer and the Buffalo Developer would win the contracts.
All eight defendants charged in the Complaint were arrested this morning. PERCOCO, KELLY, and KALOYEROS are scheduled to be presented later today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court. AIELLO and GERARDI are scheduled to appear later today in federal court in Syracuse. CIMINELLI, LAIPPLE, and SCHULER are scheduled to appear later today in federal court in Buffalo.
Also unsealed today is the guilty plea of TODD HOWE in connection with his participation in both corruption schemes described above. HOWE pled guilty pursuant to an Information before U.S. District Judge Richard M. Berman on September 20, 2016, and is cooperating with the Government.
U.S. Attorney Preet Bharara said: “Today’s charges shine a light on yet another sordid side of the show-me-the money culture that has so plagued Albany. As alleged, Joseph Percoco, the former Executive Deputy Secretary to the Governor, was on the take. And pervasive corruption and fraud allegedly infected signature state development projects like the Buffalo Billion program. The bids allegedly were rigged, the results preordained; companies got rich and the public got bamboozled. As alleged in the Complaint, it turns out the state legislature does not have a monopoly on crass corruption in New York.”
FBI Special Agent-in-Charge Adam Cohen said: “These arrests speak volumes to those who, as alleged in the complaint, arrogantly took what was not theirs and who acted without morals and ignored ethics. Each of them allegedly broke the law because they chose greed, and, as a result, personally tarnished an historic opportunity. Their alleged behavior compromised the integrity of government and impeded the promise of liberty. We cannot say it often enough: It is the expectation of the public that government officials are not in their positions to self-deal or to serve their personal interests.”
IRS-CI SAC Shantelle P. Kitchen said: “The honest taxpayer’s confidence in the tax system depends on everyone paying their fair share, regardless of their occupation, wealth or prominence – or their public office or public position. IRS Criminal Investigation takes allegations of public corruption by public officials and public employees very seriously, and we are always ready to contribute to an investigation when the allegation has a financial component.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
The PERCOCO Bribery Scheme
In the first scheme alleged in the Complaint, PERCOCO, who served as the Executive Deputy Secretary to the Governor between January 2012 and mid-2014, and again in 2015, is charged with abusing his official position and extensive influence within the Executive Branch of New York State (the “State”) by seeking and accepting bribe payments from executives at companies that were seeking benefits and business from the State, in exchange for PERCOCO’s use of his official authority and influence to benefit those companies.
PERCOCO solicited the bribe payments from two clients of HOWE –the Energy Company and the Syracuse Developer – both of which had retained HOWE as a consultant to help them obtain official State action. In email correspondence between HOWE and PERCOCO obtained through judicially-authorized search warrants, PERCOCO and HOWE referred to the bribe payments as “ziti,” a reference to a term for money used by the characters in the television show “The Sopranos.”
Bribes from KELLY and the Energy Company
The bribes paid to PERCOCO from the Energy Company were orchestrated by KELLY, the head of external affairs and government relations for the Energy Company. Kelly conspired with PERCOCO and HOWE to funnel more than $287,000 in bribe payments from the Energy Company to PERCOCO and PERCOCO’s wife in exchange for PERCOCO’s official assistance for the Energy Company on an as-needed basis.
As alleged in the Complaint: (a) State action was critical to the Energy Company’s business; (b) starting as early as 2010, KELLY provided personal benefits to PERCOCO, including expensive meals and a Hamptons fishing trip, in an effort to cultivate access to PERCOCO; (c) in response to KELLY’s requests for official State assistance, PERCOCO, who was experiencing financial difficulties at the time, requested that the Energy Company hire his then-unemployed wife; (d) in or around the end of 2012, KELLY caused the Energy Company to create a position for PERCOCO’s wife that paid approximately $90,000 per year while requiring PERCOCO’s wife to do little work. In exchange for these payments, PERCOCO agreed to use his official position and influence, and did in fact use his official position and influence, to help the Energy Company with specific State matters as the opportunities arose. Among other things, PERCOCO agreed to use his official position and influence to assist the Energy Company’s efforts to obtain (i) a valuable agreement from the State allowing the Energy Company to buy lower-cost emissions credits in New York for a power plant proposed to be built in New Jersey and (ii) a lucrative long-term power purchase agreement (the “PPA”) with the State guaranteeing a buyer for the power to be produced at a power plant proposed to be built in New York, which was expected to save the Energy Company approximately $100 million in development costs.
The Energy Company’s payments to PERCOCO’s wife were concealed in various ways to hide their true source. KELLY ran the monthly payments to PERCOCO and his wife through a consultant who worked for the Energy Company in order to disguise the source of the payments. KELLY also made sure that PERCOCO’s wife’s photograph and full name were not included in promotional materials for the Energy Company, and he falsely told his superiors at the Energy Company – on two separate occasions – that PERCOCO had obtained an ethics opinion from the Governor’s Office approving of PERCOCO’s wife’s employment with the Energy Company, when in fact no such opinion existed. For his part, PERCOCO concealed the criminal scheme by failing to include the Energy Company as the source of payments on his State-mandated financial disclosure forms.
Bribes from AIELLO, GERARDI, and the Syracuse Developer
Beginning in early 2014, PERCOCO was also paid bribes totaling approximately $35,000 from the Syracuse Developer. These bribe payments were orchestrated by AIELLO, the president of the Syracuse Developer, and GERARDI, its general counsel. AIELLO and GERARDI arranged for the payment of these bribes in exchange for PERCOCO’s official assistance for the Syracuse Developer on an as-needed basis.
Specifically, PERCOCO agreed to, and did, take official action for the benefit of the Syracuse Developer to (a) reverse an adverse decision by the Empire State Development Corporation (“ESD”), which is the State’s main economic development agency, that would have required the Syracuse Developer to enter into a costly labor peace agreement, (b) free up a backlog of more than $14 million in State funds that had already been awarded to the Syracuse Developer but were delayed in payment, and (c) secure a substantial pay raise for AIELLO’s son, who worked in the Executive Chamber.
To disguise the nature and source of the bribe payments, the Syracuse Developer’s bribes to PERCOCO were funneled through bank accounts and a shell company set up by HOWE.
The “Buffalo Billion” Fraud and Bribery Scheme
The second scheme alleged in the Complaint involves bribery, corruption, and fraud in the award of contracts under the “Buffalo Billion” initiative and similar programs. In that scheme, executives at two companies, one of which was the Syracuse Developer, conspired with KALOYEROS and HOWE to deceive Fort Schuyler Management Corporation (“Fort Schuyler”), a State-funded entity charged with awarding State contracts worth hundreds of millions of dollars, by secretly rigging the bidding process so that the contracts would be awarded to those two companies.
KALOYEROS, who oversaw the application process for many of the State grants awarded under the Buffalo Billion and similar programs, retained HOWE to assist with developing the projects and identifying developers for those projects. HOWE in turn solicited and received bribe and gratuity payments from (a) the Syracuse Developer, facilitated by AIELLO and GERARDI, when the Syracuse Developer was seeking State development grants for projects in Syracuse, New York, and (b) the Buffalo Developer, facilitated by LOUIS CIMINELLI, MICHAEL LAIPPLE, and KEVIN SCHULER, when the Buffalo Developer was seeking State development grants for projects in Buffalo, New York. In exchange for the bribe payments, HOWE worked with KALOYEROS to deceive Fort Schuyler by secretly tailoring the required qualifications for those development deals so that the Syracuse Developer and the Buffalo Developer would be awarded the contracts, in Syracuse and Buffalo respectively, without any meaningful competition, while falsely representing to Fort Schuyler that the bidding process was fair, open, and competitive.
More specifically, in or about October 2013, Fort Schuyler issued requests for proposals (“RFPs”) to solicit bids from interested and qualified developers for the Syracuse and Buffalo projects. KALOYEROS, with HOWE’s assistance, oversaw the drafting of the RFPs and, unbeknownst to Fort Schuyler, KALOYEROS and HOWE secretly solicited from AIELLO, GERARDI, CIMINELLI, LAIPPLE, and SCHULER qualifications of the Syracuse Developer and Buffalo Developer to put in the RFPs so that the RFPs would request qualifications specifically held by those companies. For example, the Syracuse RFP requested the use of specific project management software used by the Syracuse Developer. After HOWE emailed GERARDI and AIELLO a draft of the Syracuse RFP approximately two weeks before its public issuance, GERARDI sent back to HOWE and AIELLO a handwritten mark-up of the draft RFP, on which GERARDI had, among other things, underlined the software names and wrote “too telegraphed?? I would leave out these specific programs.” For its part, the Buffalo RFP, as initially issued, required 50 years of experience by a local developer – a qualification touted by the Buffalo Developer in promotion materials provided to KALOYEROS. This requirement was later changed and claimed to be a “typographical error.” The Buffalo Developer also was provided internal State documents to use in its submission.
False Statements by Aiello and Gerardi
On or about June 21, 2016, AIELLO and GERARDI were voluntarily interviewed by law enforcement agents conducting the investigation in this case. As alleged in the Complaint, both AIELLO and GERARDI made false statements during their respective interviews. Specifically, they both denied (i) hiring or making payments to PERCOCO and (ii) being asked by HOWE to make any campaign contributions to the Governor. GERARDI further claimed that his handwritten edits and suggestions on the early nonpublic draft of the RFP were intended not to help the Syracuse Developer win the RFP, but to ensure that a broader, more open RFP was created so more companies could compete to be SUNY Poly’s preferred developer in Syracuse. As alleged in the Complaint, those statements were false.
A chart containing the names, ages, residences, charges, and maximum penalties for the defendants is attached. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
U.S. Attorney Bharara praised the work of the FBI and Internal Revenue Service-Criminal Investigation, which jointly conducted this investigation with investigators from the U.S. Attorney’s Office. Mr. Bharara also recognized the New York State Attorney General’s Office, which This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Janis Echenberg, Robert Boone, David Zhou, and Matthew Podolsky are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Joseph Percoco, et al. 16 Mag, 6005
DEFENDANT
AGE
RESIDENCE
CHARGE(S)
MAXIMUM SENTENCE(S)
JOSEPH PERCOCO
47
South Salem, NY
Conspiracy to Commit Extortion Under the Color of Official Right,
18 U.S.C. § 1951 (Count One)
Extortion Under the Color of Official Right,
18 U.S.C. § 1951 (Counts Two and Three)
Conspiracy to Commit Honest Services Fraud, 18 U.S.C. § 1349 (Count Four)
Solicitation of Bribes and Gratuities,
18 U.S.C. § 666 (Counts Five and Six)
20 years
20 years
20 years
10 years (on each count)
ALAIN KALOYEROS
60
Slingerlands, NY
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
20 years
PETER GALBRAITH KELLY, JR.
53
Canterbury, CT
Conspiracy to Commit Honest Services Fraud, 18 U.S.C. § 1349 (Count Four)
Payment of Bribes and Gratuities,
18 U.S.C. § 666 (Count Seven)
20 years
10 years
STEVEN AIELLO
58
Fayetteville, NY
Conspiracy to Commit Honest Services Fraud, 18 U.S.C. § 1349 (Count Four)
Payment of Bribes and Gratuities,
18 U.S.C. § 666 (Counts Eight and Ten)
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
False Statements to Federal Officers,
18 U.S.C. § 1001 (Count Twelve)
20 years
10 years (on each count)
20 years
5 years
JOSEPH GERARDI
57
Fayetteville, NY
Conspiracy to Commit Honest Services Fraud, 18 U.S.C. § 1349 (Count Four)
Payment of Bribes and Gratuities,
18 U.S.C. § 666 (Counts Eight and Ten)
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
False Statements to Federal Officers,
18 U.S.C. § 1001 (Count Twelve)
20 years
10 years (on each count)
20 years
5 years
LOUIS CIMINELLI
61
Buffalo, NY
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
Payment of Bribes and Gratuities,
18 U.S.C. § 666 (Count Eleven)
20 years
10 years
MICHAEL LAIPPLE
51
Orchard Park, NY
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
Payment of Bribes and Gratuities,
18 U.S.C. § 666 (Count Eleven)
20 years
10 years
KEVIN SCHULER
45
North Tonawanda, NY
Conspiracy to Commit Wire Fraud,
18 U.S.C. § 1349 (Count Nine)
Payment of Bribe and Gratuities,
18 U.S.C. § 666 (Count Eleven)
20 years
10 years
United States v. Todd Howe (Information)
TODD HOWE
56
Washington, DC
Conspiracy to Commit Honest Services Fraud,
18 U.S.C. § 1349 (Count One)
Conspiracy to Commit Extortion Under the Color of Official Right,
18 U.S.C. § 1951 (Count Two)
Extortion Under the Color of Official Right,
18 U.S.C. § 1951 (Count Three)
Conspiracy to Commit Wire Fraud
Wire Fraud,
18 U.S.C. § 1349 (Count Four)
Wire Fraud,
18 U.S.C. § 1343 (Counts Five and Seven)
Conspiracy to Commit Bribery,
18 U.S.C. § 371 (Count Six)
Tax Fraud
26 U.S.C. § 7201 (Count Eight)
20 years
20 years
20 years
20 years
20 years (on each count)
5 years
5 years
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Newport News Man Pleads Guilty to Five Hampton Roads RobberiesRead the Press Release
NEWPORT NEWS, Va. – Sylvester Lipscombe, 48, of Newport News, pleaded guilty today to charges related to five commercial robberies in Suffolk, Hampton, and Newport News in 2015.
According to the statement of facts filed with the plea agreement, Lipscombe completed multiple robberies from Sept. 29 to Dec. 28, 2015, including:
- Burger King in Suffolk, Sept. 29, 2015
- Krispy Kreme in Hampton, Oct. 18, 2015
- Hampton Health Mart in Hampton, Dec. 1, 2015
- CheckSmart in Hampton, Dec. 4, 2015
- Metro PCS in Newport News, Dec. 23, 2015
Lipscombe was indicted by a federal grand jury on May 9, and faces a maximum penalty of 20 years in prison for each robbery when sentenced on Feb. 3, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Richard W. Myers, Chief of Newport News Police; Terry L. Sult, Chief of Hampton Police Division; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Lawrence Leonard. Special Assistant U.S. Attorney Amy E. Cross is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-40.
New Orleans Man Pleads Guilty to Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELRONE MOORE, age 38, of New Orleans, pled guilty today to two counts of distribution of heroin.
According to court documents, in the fall of 2015, a Jefferson Parish Sheriff’s Office detective conducted controlled undercover purchases of heroin from MOORE. On October 14, 2015, the undercover detective met with MOORE in Kenner, buying approximately half of an ounce of heroin from MOORE. On November 12, 2015, the undercover detective again met with MOORE in Kenner and conducted a second controlled undercover purchase, buying approximately one ounce of heroin from MOORE. Both of the hand-to-hand transactions took place in the undercover detective’s vehicle and were captured on that vehicle’s audio and video recording system.
MOORE faces a sentence of up to 20 years imprisonment, at least 3 years of supervised release, a fine of up to $1,000,000, and a mandatory special assessment of $100. U.S. District Court Judge Nannette Jolivette Brown will sentence MOORE on January 12, 2017.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
New Haven Man Admits Committing 6 Bank Robberies in Connecticut and New YorkRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JUAN CRUZ, 38, of New Haven, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of bank robbery and admitted that he committed a total of six bank robberies in Connecticut and New York last year.
According to court documents and statements made in court, CRUZ robbed the Santander Bank at 215 Grand Avenue in New Haven on October 15, 2015; the Wells Fargo Bank at 205 Church Street in New Haven on October 20, November 7 and November 21, 2015; the Bank of America at 157 Church Street in New Haven on November 9, 2015, and the Citizens Bank at 10 North Pearl Street in Albany, N.Y., on November 20, 2015. CRUZ stole a total of approximately $18,830 during the robbery spree.
CRUZ was arrested on November 21, 2015, in Chicopee, Mass. He has been detained since his arrest.
Judge Meyer scheduled sentencing for December 20, 2016, at which time CRUZ faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the Federal Bureau of Investigation and the New Haven Police Department, with the assistance of the U.S. Marshals Service, Chicopee (Mass.) Police Department and Albany (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Mission Man Charged with Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder, Using and Carrying a Firearm During and In Relation to a Crime of Violence, and Witness Tampering.
Jacob McCloskey, age 18, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 7, 2016, in Todd County, South Dakota, McCloskey shot another individual with a rifle and corruptly persuaded two witnesses to lie about the circumstances of the shooting.
The charges are merely accusations and McCloskey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
McCloskey was released on bond pending trial. Trial has been set for November 15, 2016.
Media Advisory: Rail Safety Week’s List of ActivitiesRead the Press Release
CEDAR RAPIDS, IA – Cedar Rapids Mayor Ron Corbett proclaimed the week of September 26, 2016 as Rail Safety Week. The attached Proclamation encourages all citizens to participate in activities to reduce crossing crashes and pedestrian/railroad trespass incidents during the week and throughout the year.
U.S. Attorney Kevin W. Techau will be present at the Monday morning event. Joining him will be rail safety experts, representatives from the Iowa Department of Transportation, Iowa Operation Lifesaver, and the Cedar Rapids Police Department.
Media Opportunities
Monday, September 26, 10:00 a.m.
- Crash Vehicle Display – Cedar Rapids Central Fire Station, 713 1st Ave. S.E.
- Interview Opportunities – press release will be provided
Wednesday, September 28, 10:00 a.m. to 6:00 p.m.
- Rail Display – Downtown Cedar Rapids Public Library
- Iowa Operation Lifesaver’s Francis Edeker – present all day
Thursday, September 29, 9:00 a.m. (CRANDIC); 1:00 p.m. (Canadian National)
- Officer on the Train—Media invited to ride along. Train cab space is limited. Contact the following by noon Wednesday to reserve a time:
- Elaine Duvall, CRANDIC (319) 786-3696
- Tom Skinner, Canadian National, (319) 236-9284
- Operation Life Saver Presentation, 2:30 p.m.
- Downtown Cedar Rapids Public Library
Follow us on Twitter @USAO_NDIA
- Crash Vehicle Display – Cedar Rapids Central Fire Station, 713 1st Ave. S.E.
Maurice Dimitrie Moore Found Guilty of Counts 2 and 3 and Not Guilty of Count 1 by Jury TrialRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Maurice Dimitrie Moore, 28, of Indianapolis, Indiana was found guilty of Counts 2 and 3, making false statements to ATF, after a three-day jury trial. He was found not guilty of Count 1, providing a firearm to a felon.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorneys Jennifer Chang and Dean Lanter.
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Man Sentenced to 60 Months for Possessing Firearm in Furtherance of Drug TraffickingRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Sean Miller, 28, was sentenced to serve 60 months in prison following his conviction on a charge of possessing a firearm in furtherance of a drug trafficking crime.
Miller previously pleaded guilty on June 20, 2016. According to documents that were filed in United States District Court and statements in the plea proceeding, Miller was arrested after the New Hampshire Attorney General’s Drug Task Force (NHAFDTF) and Keene Police department executed a search warrant at Miller’s former Keene residence, during which a Mossberg 12-gauge shotgun was seized in conjunction with drug records, hypodermic needles and a digital scale. On four prior occasions in May and June, 2015, Miller sold quantities of heroin to a NHAGDTF Confidential Informant at Miller’s residence. Under federal law, it is unlawful to possess a firearm to protect one’s drug trafficking activities or the location from which one distributes narcotics.
Miller was sentenced by United States District Judge Joseph A. DiClerico. After serving his prison sentence, Miller will be placed on supervised release for three years.
This case was investigated by the NHAGDTF and the Keene Police Department. It was prosecuted by Assistant United States Attorney Jennifer Cole Davis.
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Man Pleads Guilty to Conspiring to Commit Acts of Terrorism to Support ISILRead the Press Release
BOSTON – Nicholas Rovinski pleaded guilty today in U.S. District Court in Boston in connection with providing material support to the Islamic State of Iraq and the Levant (ISIL).
Nicholas Alexander Rovinski a/k/a Nuh Amriki a/k/a Nuh Andalusi, 25, of Warwick, R.I., pleaded guilty to conspiring with David Daoud Wright and Usaamah Abdullah Rahim (now deceased) to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization and conspiracy to commit acts of terrorism transcending national boundaries. U.S. District Court Judge William G. Young scheduled sentencing for March 23, 2016.
Rovinski and Wright were charged with conspiring with each other, known and unknown conspirators, and Rahim, Wright’s uncle, to provide material support to ISIL and commit acts of terrorism that transcended national boundaries. On June 2, 2015, Rahim was shot and killed after he confronted and threatened law enforcement officers in Roslindale, Mass. Wright remains in custody pending trial.
At today’s hearing, Rovinski admitted among other things, that beginning in December 2014, he began talking with Wright about their mutual desire to support ISIL and how they could provide assistance to that terrorist organization. By April 2015, Rovinski, Wright, and Rahim had agreed to commit attacks and kill persons inside the United States – acts which they believed would support ISIL’s objectives. Their attack plans included the beheading of a New York woman whom ISIL had identified for murder through a “fatwah” or religious decree, to its supporters. In May 2015, Junaid Hussain, an ISIL member in Syria, had directly communicated instructions to Rahim regarding the murder of the New York victim, in which the three men were to play a critical role. On June 2, 2015, Rahim confided in Wright that he could not wait until July 4, 2015, as originally planned, to go after their target, and instead wanted to go operational that day. Rahim told Wright that he wanted to go after the “boys in blue” (a slang term used to describe police officers) in Massachusetts and Wright encouraged Rahim to attack police and become a martyr. Less than two hours after this call, Rahim was shot and killed after confronting law enforcement officers.
On June 11, 2015, Rovinski was arrested for conspiring to provide material support to ISIL but his arrest did not deter his commitment to ISIL. Even after being arrested, Rovinski sought to continue the attacks he had planned with Wright and Rahim, writing letters to Wright from prison discussing ways to take down the United States government and decapitate non-believers.
The charge of conspiracy to provide material support to a designated foreign terrorist organization provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of conspiracy to commit acts of terrorism transcending national boundaries (in which the defendants intended to kill or maim persons in the United States) provides for a maximum sentence of a life in prison, a lifetime 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; John P. Carlin, Assistant Attorney General for the Justice Department’s National Security Division; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation made the announcement today. This case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit and Trial Attorney Gregory R. Gonzalez of the National Security Division’s Counterterrorism Section.
This investigation was conducted by the Boston Joint Terrorism Task Force and the Rhode Island Joint Terrorism Task Force with critical assistance from the Boston Police Department, the Boston Regional Intelligence Center, the Massachusetts State Police, the Commonwealth Fusion Center, the Everett Police Department, Homeland Security Investigations, Rhode Island State Police, the Warwick R.I. Police Department, the Rhode Island Fusion Center, the Naval Criminal Investigative Service and member agencies of the JTTF.
Los Angeles Jury Convicts Medical Clinic Owner for Health Care Fraud and Tax FraudRead the Press Release
A federal jury in Los Angeles convicted the owner of a medical clinic for his role in a health care fraud scheme and for filing false income tax returns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office, Acting Special Agent in Charge Anthony J. Orlando of Internal Revenue Service Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Agent in Charge Scott Rezendes of the Office of Personnel Management Office of Inspector General (OPM-OIG) Field Operations made the announcement.
Michael Huynh, 66, of Northridge, California, was convicted on Sept. 21, 2016, of one count of conspiracy to commit health care fraud and 11 counts of filing false tax returns after a seven-day trial before U.S. District Judge Otis D. Wright II of the Central District of California. Huynh will be sentenced on Jan. 30, 2017.
Evidence introduced at trial showed that Huynh, the office manager and part-owner of a medical clinic, provided false prescriptions to a pharmacist and co-conspirator, Farhad N. Dany Sharim, who submitted false claims to insurance companies for drugs that were never dispensed. Once Sharim received payments from the insurance companies, he paid Huynh for the false prescriptions. Trial evidence showed that between January 2004 and November 2009, Huynh received 82 checks from Sharim totaling over $1.1 million. Evidence at trial also demonstrated that Huynh filed false federal tax returns for tax years 2007 through 2011 that underreported the medical clinic’s gross receipts and sales on the corporate tax returns and total income on the individual tax returns. Trial evidence showed underreported income of over $1.6 million.
Sharim pleaded guilty to one count of conspiracy to commit health care fraud on Nov. 18, 2013 and will be sentenced on Dec. 5, 2016.
The FBI, IRS-CI and OPM-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California. Fraud Section Trial Attorney Alexis Gregorian and Assistant United States Attorney Steven Arkow prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.