Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 20 September 2016
Brooklyn, New York, Man Sentenced to One Year in Prison for Role in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to one year and one day in prison on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Anthony “T.J.” Hanks, 37, was convicted in November 2015 of one count of conspiracy to transport stolen property in interstate commerce and three counts of interstate transportation of stolen property; his cousin, Daniel “Tokyo” Gatson, 44, was also convicted of conspiracy to transport stolen property in interstate commerce and 11 counts of interstate transportation of stolen property. They were convicted following a three-week trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
The conspiracy, led by Gatson, was responsible for 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
Typically, Hanks, Gatson and others would identify homes in affluent residential neighborhoods and conduct surveillance of the target residences, looking for indications that no one was home.
Before robbing a target residence, they would cut wires running to and from the residence, including phone, cable, and alarm connections. Then, while wearing masks and gloves, they would forcibly break in to the target residence, usually by smashing through the front door, while a getaway driver remained nearby in a rented minivan, often maintaining contact with one of the burglars inside the target residence by cell phone.
In addition to the prison term, Judge Martini sentenced Hanks to three years of supervised release and ordered to pay $2.1 million in restitution. Gatson was sentenced in June 2016 to 25 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark.
Defense counsel:
Hanks: Peter S. Gordon Esq., Forest Hills, New York
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Bangor Man Sentenced to Three Years for Distributing CrackRead 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 Antonio Gordon, 32, of Bangor, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to three years in prison and three years of supervised release for distributing cocaine base, commonly known as “crack.”
According to Court records, on three occasions between December 2014 and January 2015, Gordon distributed a total of 19 grams of crack to a person cooperating with federal and state law enforcement authorities. The transactions took place in Bangor.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.
Aurora Cousins Sentenced to Lengthy Prison Terms for Conspiring to Provide Material Support to ISILRead the Press Release
CHICAGO — A federal judge in Chicago today imposed prison sentences of 30 years and 21 years for Aurora cousins who conspired to provide material support to a foreign terrorist organization.
U.S. District Judge John Z. Lee sentenced HASAN R. EDMONDS to 30 years, and JONAS M. EDMONDS to 21 years. The defendants are United States citizens and cousins from southwest suburban Aurora.
The sentencings were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
The cases were investigated by the Chicago Joint Terrorism Task Force, which is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. Significant assistance was provided by U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Illinois State Police, the Aurora Police Department and the Illinois National Guard.
The pair pleaded guilty in December 2015 to conspiring to provide material support to the Islamic State of Iraq and the Levant, a foreign terrorist organization commonly referred to as ISIL, ISIS, or the Islamic State. Hasan Edmonds, 24, also pleaded guilty to one count of attempting to provide material support to a foreign terrorist organization, while Jonas Edmonds, 31, pleaded guilty to an additional count of making a materially false statement to a law enforcement officer regarding an offense of international terrorism.
The cousins admitted in their plea agreements that they devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet. At the time the attack was planned, Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. The plot called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, and to give Jonas Edmonds a list of officers to kill.
Members of the Task Force arrested the cousins in March 2015 before an attack could be carried out.
“Had law enforcement not interceded, defendant’s attack could potentially have rivaled other ISIL-inspired attacks in Paris and California,” Mr. Jonas argued in the government’s sentencing memorandum in Jonas Edmonds’ case. “The impact of the attack – on National Guard members, their families, and this nation’s psyche – would have been devastating.”
In addition to the proposed attack on the National Guard base, the conspiracy also called for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself, according to Jonas Edmonds’ plea agreement.
Ashburn Man Pleads Guilty to International Identity Theft and Money Laundering ConspiracyRead the Press Release
ALEXANDRIA, Va. –Amit Chaudhry, 44, of Ashburn, pleaded guilty today to two counts of conspiracy to commit money laundering, one count of aggravated identity theft, and one count of conspiracy to commit visa fraud for his role and participation in a sophisticated and large-scale identity theft and credit card fraud conspiracy.
According to the court documents, Chaudhry is an Indian national who became a naturalized U.S. citizen in 2005. Beginning in 2011, the defendant was part of a large, international wire fraud and money laundering conspiracy that involved processing stolen credit card numbers and laundering the proceeds through hundreds of bank accounts. Some of these bank accounts were set up in the name of shell companies, which did no real business. This fraud and money laundering conspiracy was carried out in part by teams of individuals working together in India, the United States, Europe and elsewhere. Some members would obtain the personal identifying information of real people; other members would obtain the credit card information from actual credit card customers, such as of American Express, and yet others would be responsible for electronically processing the stolen credit card transactions. Chaudhry helped laundering the proceeds of the credit card fraud and assisting co-conspirators who would come to the United States from India to open bank accounts used to hold and receive fraud proceeds.
Chaudhry also helped conceal and launder proceeds from a fraud scheme that targeted customers seeking cheap travel, including airline tickets and hotel reservations. Chaudhry helped to promote the fraudulent travel websites, including through mass mailings to prospective customers. Other members of the conspiracy would hold themselves out as prospective travel agents to customers. Customers’ travel itineraries would be purchased with stolen credit cards, which often resulted in those reservations being canceled. The customer’s money would be held and transferred among bank accounts controlled by members of the conspiracy, including Chaudhry. There were more than 1,000 victims from this fraud, which used various sophisticated means to conceal the identities of the conspirators.
The amount of the fraudulent proceeds generated by the money laundering conspiracy was more than $25 million.
Chaudhry was also involved in a separate money laundering conspiracy with Jacqueline Green-Morris, who previously pleaded guilty to money laundering conspiracy. Chaudhry and Green-Morris came up with a fraudulent billing scheme, whereby Chaudhry would submit inflated and fraudulent invoices for IT training to ActioNet, a contractor based in Virginia. Green-Morris used her position as an ActioNet employee to pay these fraudulent invoices. Chaudhry and Green-Morris split the fraud proceeds, which totaled approximately $4.1 million between 2012 and June 2016.
From at least 2001 and through at least June 2016, Chaudhry and others conspired to commit visa fraud by submitting false and fraudulent H-1B visa applications by and through various entities that the Chaudhry and others owned and controlled, including Networkxchange, Technologyxchange, Secure Networks, and the Knowledge Center. The conspiracy involved the submission of false and fraudulent applications and supporting documentation to the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS). Some of these documents were signed using the name John King, a journalist who is CNN’s chief national correspondent.
Chaudhry faces a maximum penalty of 20 years in prison when sentenced on Jan. 19, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); and Bill A. Miller, Director of the Diplomatic Security Service (DSS) for the U.S. Department of State, made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-211.
Another meth mule pleads guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A California woman caught transporting a significant amount of crystal methamphetamine from California to West Virginia pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Rachel Arlene Garay, 18, of Indio, entered her guilty plea to interstate travel in furtherance of a drug crime.
Garay admitted that in March 2016, she and Danielle Dessaray Estrada, a codefendant, drove from Los Angeles to West Virginia with approximately five pounds of crystal methamphetamine. Garay also admitted that she maintained contact with codefendants Cesar Garcia and Rafael Garcia Serrato to find out instructions on where to deliver the drugs. Garay additionally admitted that on March 26, 2016, she and Estrada arrived in West Virginia and Garay removed the drugs from a hiding place in the vehicle and placed the drugs into a bag for delivery. Shortly after Garay moved the drugs, law enforcement officers in South Charleston stopped the vehicle and arrested Garay and Estrada. During the course of the arrest, law enforcement seized over 2,200 grams of methamphetamine which was later analyzed and had a substance purity level of 98%.
Garay faces up to five years in federal prison when she is sentenced on December 15, 2016.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating 14 defendants, including Garay. All of Garay’s codefendants are presumed innocent unless and until proven guilty in a court of law. Three other women who were used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, Kelly Newcomb, of Nevada, and Cara Linn Monasmith, also of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Estrada and Newcomb are scheduled to be sentenced on October 6, 2016. Monasmith is scheduled to be sentenced on November 8, 2016. Additionally, as part of this conspiracy, Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Daniel Ortiz-Rivera, a Mexican national, Velarian Sylvester Carter, of Beckley, Miguel Tafolla-Montoya, a Mexican national, and Brian Ashby, of Kanawha County, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine. Serrato and Garcia are scheduled to be sentenced on December 6, 2016. Ortiz-Rivera is scheduled to be sentenced on October 11, 2016. Carter is scheduled to be sentenced on October 13, 2016. Tafolla-Montoya is scheduled to be sentenced on December 8, 2016. Ashby is scheduled to be sentenced on December 13, 2016. Also, as part of this conspiracy, Marco Antonio Bojorquez-Rojas, a Mexican national, pleaded guilty to interstate travel in furtherance of a drug crime, and is scheduled to be sentenced on December 7, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Akron man indicted by federal grand jury in connection with Huntington overdosesRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio, man was indicted today in connection with a rash of overdoses in Huntington in August, announced United States Attorney Carol Casto. A federal grand jury sitting in Huntington indicted Bruce Lamar Griggs, 21, on one count of conspiracy to distribute heroin and fentanyl.
The indictment alleges that on or about August 15, 2016, at or near Huntington, Griggs, also known as “Benz,” conspired with others to distribute heroin and fentanyl. The indictment further alleges that serious injury resulted from the use of those drugs. A copy of the indictment, which is publicly available, is attached to this release.
Griggs has been in federal custody since his arrest in Ohio in late August on a federal criminal complaint. According to an affidavit submitted in support of the criminal complaint by Huntington Police Department (“HPD”) Sgt. Paul Hunter, the investigation of Griggs began August 15, 2016, when the HPD responded to a large number of overdoses in a short period of time in the area of St. Louis Avenue and Marcum Terrace. The affidavit states that one of the overdose victims identified the seller of the heroin as Griggs and that numerous others provided corroborating information linking the heroin to Griggs. The affidavit also states that surveillance video shows a person matching Griggs’ description engaging in activity indicative of hand-to-hand drug distribution in the Marcum Terrace area shortly before the overdoses began.
The investigation is being conducted by the HPD and the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
NOTE: The criminal complaint and the indictment in this case are only accusations. The defendant is presumed innocent unless and until proven guilty in a court proceeding.
-
Follow us on Twitter: SDWVNews
-
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, FBI Director James B. Comey, U.S. Attorney Preet Bharara of the Southern District of New York, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director-in-Charge William Sweeney of the FBI's New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI's Newark Field Office and Commissioner James O’Neill of the New York Police Department (NYPD) announced that Ahmad Khan Rahami, aka Ahmad Rahimi, has been charged in the U.S. District Court for the Southern District of New York and the U.S. District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on Sept. 17, 2016, and Sept. 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the U.S. Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the U.S. District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Assistant Attorney General Carlin and U.S. Attorneys Bharara and Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force.
The prosecution in the Southern District of New York is being handled by Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney and James M. Donnelly, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rahami Ahmad Khan NY Complaint
Rahami Ahmad Khan NJ Complaint
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman for the District of New Jersey, U.S. Attorney Preet Bharara for the Southern District of New York, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force. Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit. Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York, U.S. Attorney Paul J. Fishman for the District of New Jersey, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.
Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force. Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit. Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Monday 19 September 2016
Wichita Massage Parlor Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor pleaded guilty Monday in federal court to harboring a Chinese woman who worked as a prostitute, Acting U.S. Attorney Tom Beall said.
Samir F. Elias, 60, Wichita, Kan., pleaded guilty to one count of harboring an alien for financial gain and one count of importation of an alien for prostitution. In his plea, he admitted the crimes occurred while he was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central.
Elias employed a Chinese woman with the initials F.Y. He was aware that the woman, who was not lawfully in the United States, engaged in the sale of sexual relations at the massage parlor. He personally reviewed online forums discussing the sale of sexual relations at his business. He harbored her at his residence near Maple and 119th West in Wichita, driving her to work and home again. He collected money from her he knew to be the proceeds of prostitution.
An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Sentencing is set for Dec. 12. Both parties have agreed to recommend a sentence of time served followed by two years of supervised release.
Beall commended the Wichita Police Department, Homeland Security Investigations (HSI) and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Resident Pleads Guilty to Engaging in the Sale of American Black Bear PartsRead the Press Release
Vu Johnnie Nguyen of Virginia Beach, Virginia, pleaded guilty today in U.S. District Court in Asheville, North Carolina, to federal charges for unlawfully trafficking in American black bear gall bladders and other American black bear parts, the Justice Department announced. The conviction arose from a year-long investigation into Nguyen’s unlawful purchase, sale and transportation of American black bear parts from the Western District of North Carolina. Bear gall bladders and paws are often used in Asian traditional medicine markets.
“The American Black Bear is a beautiful sight to behold by hikers and campers in the Blue Ridge Mountains and elsewhere in North America, and we will not allow their parts, such as gall bladders, to be taken and sold,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “Black bears are a protected species under both U.S. and North Carolina laws and we will prosecute those who attempt to deal illegally in their parts."
“Nguyen repeatedly engaged in the illegal trafficking of American black bear gall bladders and other parts, a crime that is both reprehensible and a violation of federal and state laws,” said U.S. Attorney for the Western District of North Carolina Jill Westmoreland Rose. “The abundance of American black bears in western North Carolina mountains often attracts the attention of traffickers looking for a steady source of supply of bear parts to satisfy the ever growing demand in domestic and foreign black markets. Nguyen’s prosecution speaks to our commitment to protect our wildlife resources and to apply stringent punishment to those who ignore the law for profit.”
“When we think of the victims of wildlife trafficking, it’s elephants and rhinos in Africa, tigers in India and parrots in South America that usually come to mind; but there are many animals and plants here in the United States that are also repeatedly subjected to poaching for illegal international trade, including black bear,” said U.S. Fish and Wildlife Service Director Dan Ashe. “This case shows our continued commitment to bringing criminals who deprive our children of the chance to see these magnificent creatures to justice.”
Nguyen entered his guilty plea before U.S. District Court Judge Dennis Howell for the Western District of North Carolina —specifically, a felony charge under the Lacey Act. The Lacey Act is the federal law that makes it illegal to transport or sell wildlife taken, possessed, transported or sold in violation of state law. Animal parts, like American black bear gall bladders, paws, claws and meat are considered wildlife under both the Lacey Act and North Carolina law and under North Carolina law, it is illegal for anyone to possess for sale or buy any bear or bear parts.
According to the documents filed with the court, Nguyen illegally engaged in conduct that involved the sale and purchase and intent to sell 18 American black bear gall bladders, 16 American black bear claws, two American black bear paws and approximately 50 pounds of American black bear meat in 2014. Nguyen further admitted that on three separate occasions—Jan. 6, 2014, March 5, 2014, and Dec. 17, 2014—he knowingly transported or caused to be transported American black bear parts when he knew that they were sold in violation of North Carolina law.
Nguyen faces a maximum sentence of five years in prison and a $250,000 fine. As part of the agreement, he has agreed to publish a statement apologizing for his illegal conduct.
The case is prosecuted by the Justice Department’s Environmental Crimes Section Trial Attorney Shennie Patel and the U.S. Attorney’s Office for the Western District of North Carolina in Asheville. The case was investigated by the U. S. Fish and Wildlife Service’s Office of Law Enforcement and the North Carolina Wildlife Resources Commission Division of Law Enforcement.
United States Attorney Leaving OfficeRead the Press Release
HARRISBURG-United States Attorney Peter J. Smith, 75, of Camp Hill, Pennsylvania, has submitted his resignation and announced his retirement, effective October 1, 2016.
Mr. Smith is retiring after serving for more than six years as the chief federal law enforcement officer for the Middle District of Pennsylvania, which consists of 33 counties in central Pennsylvania and has offices in Harrisburg, Scranton and Williamsport. Mr. Smith was appointed United States Attorney for the Middle District of Pennsylvania by President Barack Obama in June 2010.
Born in Wilkes-Barre and a graduate of King’s College and Georgetown University Law School. Mr. Smith previously served as an Assistant United States Attorney in the Eastern District of Pennsylvania from 1976 to 1987, as Pennsylvania’s first Inspector General from 1987-1991 under Governor Robert P. Casey, Sr., and in the Pennsylvania Auditor General’s Office and Treasury Department under Senator Robert P. Casey, Jr. from 1997 to 2009. Mr. Smith served in the U.S. Navy between 1962-1966 and was honorably discharged with the rank of Lieutenant (J.G.).
As United States Attorney, Mr. Smith has directed major federal criminal and civil litigation: He oversaw the successful completion of significant public corruption cases, including two Luzerne County judges convicted in the “Kids for Cash” investigation, two Lackawanna County commissioners convicted in a “pay to play” scheme, a State Senator convicted for conspiracy to commit mail fraud and tax evasion, the Marketing Director of the State Liquor Control Board, convicted for taking bribes from vendors doing business with the LCB, and the continuing pay-to-play investigation related to Pennsylvania’s Treasury Department.
During Mr. Smith’s term, the office’s Criminal Division designed and implemented programs in furtherance of the Department of Justice “Smart on Crime” initiative. For example, the office has emphasized the prosecution of violent crime, gun crimes, and drug crimes by recidivists in high-crime areas within the district. Last year, 21 members of the violent “Southside” street gang based in York, Pennsylvania were convicted in a landmark RICO prosecution which culminated in a 7-week jury trial involving 12 gang members. Another “Smart on Crime” initiative initiated by the office under Mr. Smith is focused on the heroin and opioid abuse epidemic plaguing the nation and the district. The office has adopted a zero tolerance policy for prosecuting these cases but has also conducted various community outreach programs, including a Heroin and Opioid Abuse Symposium scheduled for today at the Central Penn College in Enola, Pennsylvania. These initiatives have been undertaken in close coordination with federal, state and local agencies including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Pennsylvania State Police, local police departments and District Attorneys.
In the area of white-collar crimes, the office continued its nationally recognized work as a leader in prosecuting cross-border advance fee/mass marketing fraud cases in coordination with the United States Postal Inspection Service. This decade-long project has been highlighted by the prosecution of approximately 40 Western Union and MoneyGram agents and the creation of a $100 million fund as part of a settlement agreement between the United States Department of Justice and MoneyGram. The fund is being used to reimburse hundreds of victims of fraud schemes in the District and throughout the country.
Smith’s term also saw the office’s successful prosecution of owners and operators of Schuylkill Products, who were convicted in the largest disadvantaged business enterprise fraud in the history of the U.S. Department of Transportation. The Penn National Race Track investigation has resulted in the conviction of trainers, veterinarians and track officials involved in the rigging of horse races. The office, working with the Internal Revenue Service, the U.S. Department of Housing and Urban Development, the Federal Bureau of Investigation and local law enforcement, completed the prosecution of the developer in the multi-million dollar Harrisburg Capital View fraud case.
The office’s Civil Division played the lead role in the effort by the Department of Justice to settle a long-term dispute between federal agencies and the Commonwealth of Pennsylvania related to Medicaid funds and managed care and nutrition assistance for aliens. As a result, the State agreed to a settlement which included a $48 million reimbursement to the federal government.
The office expanded its efforts and resources to address criminal and civil health care fraud and is working closely with the Drug Enforcement Administration and Pennsylvania state agencies to prosecute and penalize illegal diversion of prescription drugs.
Mr. Smith’s retirement plans include family time, travel and armchair oversight of the major league baseball post-season.
# # #
U.S. Attorney’s Office for the Eastern District of Tennessee Supports National Heroin and Opioid Awareness WeekRead the Press Release
KNOXVILLE, Tenn. - Attorney General Loretta Lynch has designated the week of September 19, 2016, as National Heroin and Opioid Awareness Week. Accordingly, a large number of U.S. Attorney’s offices, including the Eastern District of Tennessee, are joining with federal law enforcement, engaging local community partners, and collaborating with medical professionals and public health officials, to help combat this growing epidemic.
On August 2, 2016, the U.S. Attorney’s Office sponsored an Education and Prevention Summit to Combat Opioid Addiction in East Tennessee at the Bijou Theater in downtown Knoxville. Participants included representatives from the Appalachia High Intensity Drug Trafficking Area, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Knoxville City Mayor’s Office, Knox County Medical Examiner, Knoxville Police Department, Knox County District Attorney’s Office, Metro Drug Coalition, Tennessee Bureau of Investigation (TBI), and TBI Tennessee Dangerous Drug Task Force. The diverse group of attendees included medical professionals, pharmacists, health insurance providers, local, state and federal law enforcement and prosecutors, service providers, educational professionals and other local, state and federal officials.
In addition to panel discussions on the opioid addiction problems in east Tennessee and the law enforcement legislative and prosecutorial efforts to combat this growing problem, the summit highlighted the recent documentary Chasing the Dragon: The Life of an Opiate Addict, which was produced by the FBI and DEA to help educate students and young adults about the dangers of opioid addiction. The 45-minute film, whose title refers to the never-ending pursuit of the original or ultimate high, features stark first-person accounts told by individuals who have abused opioids or whose children have abused opioids, with tragic consequences.
By viewing the documentary and participating in the after-discussions, attendees of the east Tennessee summit now have the knowledge and ability to act as messengers within the entire district to promote the documentary to school officials and suggest joint events for students, parents and educators at which it is featured and discussed.
To further encourage this effort, the documentary was also shared with local, state and federal law enforcement at the recent 2016 Intelligence Analysis Sharing: A Candid Look at Community Policing and DOJ Smart on Crime Initiative for the Eastern District of Tennessee, held in Gatlinburg, August 8-9, 2016. Additionally, staff members of the U.S. Attorney’s Office were invited to bring their families for an airing and discussion of the documentary during an upcoming district-wide office training event.
The video, Chasing the Dragon: The Life of an Opiate Addict, can be found on either the FBI or DEA websites using the following links: https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction or https://www.dea.gov/media/chasing-dragon.shtml.
During recently held discussions, law enforcement representatives across the district agreed that the rise of heroin use and the abuse of prescription opioids in the United States is currently our biggest challenge to public health and safety. It threatens communities, families, and children. Talking points provided by the Department of Justice, which are attached to this release, provide additional confirmation of the heroin, fentanyl, and prescription drug problems in the United States.
Now is the time for the public, law enforcement, medical professionals, law enforcement and service providers and other community leaders to work together to halt this growing epidemic. Only through action can awareness of the dangers posed by the consumption of prescription opioids, and a growing trend of heroin and fentanyl use be raised.
U.S. Attorney Nancy Stallard Harr is committed to holding those responsible who are poisoning our communities with these highly addictive drugs. “The U.S. Attorney’s Office will continue to work together with law enforcement to prosecute federal offenses relating to the unlawful distribution of heroin, fentanyl, and prescription opioids,” stated U.S. Attorney Harr. She further added, “We will also work with local, state and federal leaders to help educate the public regarding he dangers involved with the improper use and abuse of these powerful substances.”
###
U.S. Attorney Polite Announces Training to Enhance Security in Local SchoolsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that the U.S. Attorney’s Office for the Eastern District of Louisiana – in collaboration with the U.S. Department of Homeland Security and the University of Findlay – will be co-hosting a free training session entitled “Crisis Management for School-Based Incidents” on Tuesday, September 20, 2016, from 8:00 am – 5:00 pm. Topics include:
-
Introduction to Incident Planning and Preparedness
-
Proactive Threat Mitigation
-
Incident Response
-
Incident Recovery
-
Vulnerability Assessments
-
Threat Assessment Management
-
Incident Defusing and Debriefing
-
Parent Reunification
-
Anniversaries, Memorials, “Copy-Cats”
WHO: Rural Police and Sheriff Departments, School Administrators, School Resource Officers,
Counselors, and others involved in school safety and security
WHEN: Tuesday, September 20, 2016 from 8:00 am – 5:00 pm
WHERE: U.S. Attorney’s Office for the Eastern District of Louisiana, 650 Poydras Street, Suite 1600,
Winters Conference Room
There is no registration fee for this event.
-
U.S. Attorney Parker to Participate in Prescription Town Hall in Keller, TexasRead the Press Release
DALLAS – U.S. Attorney John Parker, of the Northern District of Texas, will participate in a Prescription Town Hall meeting tomorrow evening, Tuesday, September 20, 2016, in Keller, Texas, concerning prescription drug abuse. Entitled, “When the Prescription Becomes the Problem,” the presentation will be facilitated by Dr. Don Teater, the Former Medical Advisor for the National Safety Council. The meeting is sponsored by Stay on Track Challenge of Tarrant County and the Keller Independent School District, and it is intended for all members of the Keller community. It will be held at the Keller Education Center, located at 350 Keller Parkway.
Dr. Teater will begin the Town Hall with an overview of the prescription opiate epidemic. U.S. Attorney Parker will then introduce a public service announcement (PSA) his office released earlier this year concerning the dangers of prescription drug abuse and ways parents can keep their children safe. Next, there will be a panel presentation by experts from the law enforcement community, including the Drug Enforcement Administration and the Keller Police Department, as well as representatives from various health and social services field.
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 will participate in hundreds of events highlighting the importance of prevention, enforcement and treatment.
U.S. Attorney Parker will also participate in a symposium on Thursday, September 22, 2016, also designed to raise awareness of the opiate epidemic. The day-long symposium, “When the Prescription Becomes the Problem: A Community Response to the Opiate Epidemic,” is intended to help mobilize community leaders and stakeholders to reduce opiate misuse and abuse in North Texas. It is being hosted by the Keller Stay on Track Coalition and is being held at the Hurst Conference Center, 1601 Campus Drive, from 7:30 a.m. to 4:30 p.m.
In addition to U.S. Attorney Parker, the Thursday’s symposium will feature national experts including Dr. Teater and award-winning journalist Sam Quinones, author of Dreamland: The True Tale of America’s Opiate Epidemic. Others participating in the symposium will include federal and state representatives who will discuss medical, prevention, and treatment perspectives.
Both events are being sponsored by the Keller Stay on Track Coalition, a program of Challenge of Tarrant County. It 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.
# # #
U.S. Attorney Invited to Speak at AGA’s Guam Professional Development ConferenceRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be speak at the Association of Government (AGA) 8th Biennial Guam Professional Development Conference held on September 12-14, 2016, at the Westin Resort Guam. The theme of the conference was “Tools, Trends, and Techniques in Today’s Financial Environment.”
U.S. Attorney Limtiaco’s presentation was on Cybersecurity Awareness. U.S. Attorney Limtiaco shared that cybersecurity is a top priority for the U.S. Government and that securing the nation’s networks and information from exploitation and damage requires improved information-sharing and enhanced coordination between the private and public sectors. To that end, the U.S. Department of Justice (DOJ) meets with companies like those in attendance at the conference to discuss the potential cybersecurity threats they face and what DOJ and its federal partners can do to help defend, respond, enforce, prevent and protect our community and our country. U.S. Attorney Limtiaco also discussed cybercrimes such as identity theft and other online fraud schemes and the importance of protecting one’s privacy on social media.
The training was attended by over 130 participants from Guam and our neighboring islands of Saipan, Northern Mariana Islands, Pohnpei, Federated States of Micronesia, the Republic of Palau and the Republic of the Marshall Islands.
Shown here are AGA Guam President-Elect Clariza Mae Roque, AGA National President Douglas A. Glenn, U.S. Attorney Alicia Limtiaco and AGA Guam President Yukari B. Hechanova U.S. Attorney Alicia Limtiaco addressing participants at the AGA 8th Bieenial Guam Professional Development ConferenceU.S. Attorney Deirdre M. Daly on the Opioid EpidemicRead the Press Release
The Perfect Storm
Twenty-three-year-old Louis Ahearn was not a heroin addict. Until shortly before his death earlier this year, the Derby resident had never used the drug. A dental procedure and a short search for relief from his pain led him to a local drug dealer who convinced him that heroin was a far cheaper alternative to prescription pills. Two weeks later, the same dealer gave Louis a free bag as payment for a ride. That bag turned out to contain pure fentanyl. Louis died. He was a gentle soul and the light of many lives. The young dealer who gave him the fentanyl is now serving a six-year term in federal prison, while Louis’s family still searches for answers, like so many other families across Connecticut who have experienced similar tragedies.
In 2012, 357 Connecticut residents died from accidental drug overdoses. Fentanyl played a part in only 14 of those deaths; heroin contributed to 195 of the overdose deaths. In 2016, the dynamics have radically changed for the worse. The Connecticut Office of the Chief Medical Examiner estimates that this year 888 people will die from overdoses, pure heroin will cause only 80 of those deaths, and fentanyl will play a role in a staggering 446 of them. In Connecticut, fentanyl is the largest single contributor to the dramatic rise in opioid-related overdose deaths. This potent and lethal chemical is present in much of the heroin sold on our streets.
This dramatic rise in the use of fentanyl as an additive -- and even replacement for heroin -- comes at a time when opioids are prescribed at high rates for everything from school sports injuries to dental procedures. High school students have easy access to legally prescribed opiates. A sibling is injured in a football game. A friend has his wisdom teeth pulled. A parent is recovering from surgery. A neighbor has chronic back pain. There is no question this medicine can be an excellent tool for pain management, but it is also highly addictive. Four out of five new heroin users started with prescription opioids. As young people abuse opiates, their source of legally prescribed pills inevitably disappears, and they are left to scramble for alternatives. The street price for a 40 milligram oxycodone pill is $40, whereas a street-level heroin dealer distributes individual bags for as little as $5. The teenager who began experimenting with his father’s prescribed Vicodin has now developed a heroin habit. And more and more often, this heroin is mixed with, or replaced by, fentanyl.
In February 2016, the U.S. Attorney’s Office and the Drug Enforcement Administration developed a statewide initiative to combat this epidemic. Together with local police departments, we are investigating overdose deaths across the state and targeting dealers who sell heroin and fentanyl. We have developed a statewide protocol for handling evidence in overdose cases. In the past six months, the DEA has investigated more than 70 overdose deaths in Bridgeport, Danbury, Derby, East Haddam, Greenwich, Groton, Manchester, Middlebury, Middlefield, Monroe, New Haven, New London, Newtown, North Haven, Norwalk, Norwich, Old Saybrook, Shelton, Stamford, Stonington, Torrington, Vernon, Waterford, West Hartford, West Haven, Weston, and Woodbridge. These investigations have resulted in the federal prosecution of over 40 dealers.
But prosecutions alone will never adequately address the underlying problem that increasing numbers of young people quietly are becoming addicted to opioids. Our Office has dedicated significant resources to awareness and prevention, focusing our efforts on high school students and their parents. Across the state, we have encouraged superintendents and principals to incorporate into their curricula the recently-created FBI/DEA documentary entitled Chasing the Dragon, which chronicles the experiences of individuals impacted by the opioid crisis.
President Obama has designated this week Prescription Opioid and Heroin Epidemic Awareness Week in recognition of those we have lost and those struggling with addiction, and in the hope of creating greater awareness throughout our nation of this devastating epidemic. This week and in the weeks to come, our prosecutors will present at schools throughout the state as part of our awareness campaign. This Wednesday, September 21 at 5:30 p.m. at Kennedy High School in Waterbury, we will hold an opioid awareness conference that will include a panel of doctors, and a panel of parents who have lost children to overdoses. Our goal is to educate parents, teachers and students about the consequences of opioid abuse. All are welcome to attend.
Deirdre M. Daly
U.S. Attorney, District of Connecticut
September 19, 2016Two Mexican Nationals Plead Guilty in Fraudulent Identification Document ConspiracyRead the Press Release
FRESNO, Calif. — Two Fresno residents pleaded guilty today to a scheme that involved the manufacture and sale of fraudulent identification documents, including fraudulent alien registration receipt cards and social security cards, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Francisco Javier Hidalgo-Flores, 25, pleaded guilty to conspiring to produce, transfer, possess, and sell false identification documents, and co‑defendant Lizet Amairani Ramirez-Zazueta, 26, pleaded guilty to transferring false identification documents.
According to the plea agreements, between June 2015 and June 17, 2016, Hidalgo-Flores manufactured fraudulent identification documents, including social security cards and alien registration receipt cards, for customers who placed orders and paid as much as $150 for a set of the fraudulent documents. Hidalgo-Flores and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators in Fresno and Madera Counties.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Hidalgo-Flores and Ramirez-Zazueta and four co-defendants were indicted for the scheme. Charges are pending against the remaining co-defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hidalgo-Flores and Ramirez-Zazueta are scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on December 12, 2016. Hidalgo-Flores faces a maximum statutory penalty of five years in prison and a $250,000 fine; Ramirez-Zazueta faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The United States Settles False Claims Act Case with Nursing Home Company to Settle Allegations of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
SAN FRANCISCO- North American Health Care, Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon, have agreed to pay a total of $30 million to resolve allegations that they violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary rehabilitation therapy services provided to residents at NAHC’s skilled nursing facilities (SNFs), announced United States Attorney Brian J. Stretch. Under the settlement agreement, NAHC will pay $28.5 million. Mr. Sorensen has agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000.
NAHC is a private, for-profit company headquartered in Orange County, California, that has service agreements to operate 35 SNFs, most of them in California, that provide inpatient rehabilitation services, including physical, occupational, and speech therapy. The United States contends that NAHC caused false claims to be submitted to Medicare and TRICARE for medically unnecessary rehabilitation therapy services provided to residents of the NAHC nursing homes, including keeping the residents at the SNFs longer than necessary. The United States alleged that this conduct occurred during the period from January 21, 2005 to October 31, 2009 for the 35 SNFs, and continued during the period of November 1, 2009 to December 3, 2011, for three of the SNFs located in the Northern District of California: Apple Valley Convalescent, Petaluma Care and Rehab, and Linda Mar Care Center.
The United States also contends that Mrs. Gelvezon, in her capacity as an officer of NAHC, contributed to this conduct by creating the improper billing scheme, and that Mr. Sorensen, in his capacity as a Chairman of the Board of NAHC, reinforced this scheme at the NSFs.
In addition to the monetary settlement, NAHC has also entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) which applies to all facilities managed by NAHC and requires an independent review organization to annually review therapy services billed to Medicare.
“This office is committed to safeguarding the federal health care programs and the patients who are enrolled in them. Skilled nursing facilities such as NAHC treat some of the most vulnerable patients in the health care system. These facilities, and the individuals who run them, must be held accountable when they provide treatment based on financial motivations instead of the patients’ needs,” said Brian J. Stretch, United States Attorney for the Northern District of California.
“Medicare patients and those insured by TRICARE are entitled to receive care necessary for their clinical needs and not the financial needs of their health providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Health care providers will be held accountable if they bill for unnecessary services or treatment.”
“Providing medically unnecessary services to this fragile population can be taxing both for the patient and the program,” said Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan. “Today’s settlement should send a message to others engaging in these schemes that we will pursue justice for our beneficiaries and the programs.”
Special Agent in Charge Chris Hendrickson, of the Defense Criminal Investigative Service (DCIS) Western Field Office, commented for TRICARE, “DCIS and our law enforcement partners will steadfastly pursue those who violate the public’s trust by corrupting the federal health care system, to include the Department of Defense TRICARE program. Health care fraud compromises the well-being of the general public and undermines the efforts of the Department of Defense to support our men and women in uniform.” TRICARE is a United States health benefit plan for uniformed personnel, retirees, their dependents and reserve components.
FBI Special Agent in Charge John F. Bennett said, “this settlement reinforces the FBI San Francisco Division’s commitment to working with our law enforcement partners to pursue those who seek to harm the integrity of our federal health care programs for personal gain. Programs such as TRICARE and Medicare are in place to treat and take care of members of our community including our servicemen, servicewomen and their loved ones and the elderly. We will not tolerate such a gross violation of public trust,” said Special Agent in Charge John F. Bennett.
Assistant United States Attorney Gioconda Molinari handled the case with the assistance of Paralegal Lucille Yee. This case is the result of an investigation by the U.S. Attorney’s Office, the Civil Division’s Commercial Litigation Branch of the U.S. Department of Justice, the Federal Bureau of Investigation, and HHS-OIG, and DCIS.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Taylor County Man Sentenced to 135 Months in Federal Prison for Enticing a Minor to engage in Sexual Activity with HimRead the Press Release
ABILENE, Texas — William David Harden, 65, formerly of Tye, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 135 months in federal prison, following his guilty plea in May 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Harden has been in custody since his arrest on a federal indictment in August 2015.
According to documents filed in the case, from approximately May to July 2015, Harden engaged in a cell phone texting relationship with a female minor, under age 17, in which he knowingly persuaded, induced, and enticed her to engage in sexual activity with him. Specifically, in early July 2015, Harden knowingly persuaded, induced, and enticed, and attempted to persuade, induce and entice this minor female to engage in sexual activity with him, suggesting to the minor female that by doing so, she could repay him for arranging to get a motel room where she could meet up with a friend.
At today’s sentencing hearing, Judge O’Connor also ordered that Harden forfeit his 2008 pickup truck that he used to transport this minor female and another minor to that motel.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
# # #
Taylor County Man Sentenced to 135 Months in Federal Prison for Enticing a Minor to Engage in Sexual Activity with HimRead the Press Release
ABILENE, Texas — William David Harden, 65, formerly of Tye, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 135 months in federal prison, following his guilty plea in May 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Harden has been in custody since his arrest on a federal indictment in August 2015.
According to documents filed in the case, from approximately May to July 2015, Harden engaged in a cell phone texting relationship with a female minor, under age 17, in which he knowingly persuaded, induced, and enticed her to engage in sexual activity with him. Specifically, in early July 2015, Harden knowingly persuaded, induced, and enticed, and attempted to persuade, induce and entice this minor female to engage in sexual activity with him, suggesting to the minor female that by doing so, she could repay him for arranging to get a motel room where she could meet up with a friend.
At today’s sentencing hearing, Judge O’Connor also ordered that Harden forfeit his 2008 pickup truck that he used to transport this minor female and another minor to that motel.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
# # #
Tahlequah Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that ASHLEY NOEL STEELE, age 30, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Information alleged that on or about December 12, 2015, within the Eastern District of Oklahoma, the defendant, ASHLEY NOEL STEELE, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 5 years or more than 40 years imprisonment, up to a $5,000,000 fine or both.
Assistant United States Attorney Christopher Wilson represented the United States.
Social Security Fraudster ConvictedRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that MITCHELL STERLING HOLMES, age 43, of Port Allen, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to making false statements to a Federal agency, in violation of Title 18, United States Code, Section 1001. The sentencing date has not yet been set.
During the guilty plea hearing, HOLMES admitted that, after being appointed as an authorized payee for Social Security Administration (SSA) benefits on behalf of his minor child, he submitted a required report to the SSA that falsely stated, among other things, that he used benefit payments paid to him on behalf of his minor child when, in fact, he did not use the payments for the care and support of said child. HOLMES admitted that, as a result of his false statements, he caused a loss to the SSA of almost $90,000.00.
U.S. Attorney Green stated: “Federal benefit programs are often critical to ensuring that children in need, the elderly, and those struck by disaster are afforded a safety net – a fact that the Baton Rouge region knows all too well after the recent flooding. Defrauding these programs, and by extension the taxpayers who pay for them, is outrageous and will not be tolerated. Fraudsters not only take money from the programs, but their actions threaten to distract from the programs’ positive results. My office will continue to work with the Social Security Administration’s Office of Inspector General and our other federal, state, and local law enforcement partners, to aggressively pursue such matters.”
Special Agent-in-Charge Robert G. Feldt of the Social Security Administration, Office of Inspector General, stated: “The Social Security Administration, Office of Inspector General, will continue to tirelessly investigate and bring to justice those that commit benefit fraud and misuse their position of trust to victimize children.”
This ongoing investigation is being conducted by the Dallas Field Division of the Social Security Administration’s Office of Inspector General and the United States Attorney’s Office for the Middle District of Louisiana. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Shiprock Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Matthew Yazzie, 27, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison followed by three years of supervised release for his conviction on assault charges.
Yazzie was arrested on Sept. 21, 2015, on a federal indictment charging him with assaulting two women and a man on June 13, 2015, in Indian Country in San Juan County, N.M. According to the indictment, the victims suffered serious bodily injuries as a result of the assaults.
On March 4, 2016, Yazzie pled guilty to the indictment without the benefit of a plea agreement. In its proffer of evidence, the United States indicated that Yazzie assaulted the victims by crashing the vehicle he was driving while under the influence of alcohol.
This case was investigated by the Farmington office of the FBI, the New Mexico State Police and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Saco Woman Pleads Guilty to EmbezzlementRead the Press Release
Contact: Rick Murphy
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced Ann Marie Williams, 52, of Saco, Maine, pleaded guilty today in U.S. District Court to embezzling funds from the City of Westbrook.
According to court records, between July of 2015 and April of this year, Williams embezzled $118,000 of cash tax receipts while employed as the City’s tax collector.
Williams faces up to ten years in prison, three years of supervised release and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation.
Rusk County Man Sentenced for Longview Bank RobberyRead the Press Release
TYLER, Texas – A 54-year-old Mt. Enterprise, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Patrick Terry Gilbert pleaded guilty on May 27, 2016 to armed bank robbery and was sentenced to 180 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 15, 2016. Gilbert was also ordered to pay restitution in the amount of $16,134.00.
According to information presented in court, on Oct. 23, 2015, Gilbert entered the Capital One Bank in Longview, Texas, dressed in dark clothing, wearing a “Scream” mask and armed with a short-barreled shotgun. Gilbert approached two bank tellers, pointed the shotgun at them and demanded all of their money. Gilbert took more than $15,000 from the tellers and left the bank. Several weeks later, Gilbert was arrested in Nacogdoches County, Texas. He was indicted by a federal grand jury in November 2015.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Longview Police Department, and the Nacogdoches County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Frank Coan.
Redding Woman Admits Stealing More Than $250K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that LISA LANDMAN, 48, of Redding, waived her right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, LANDMAN was the bookkeeper for a Connecticut company. Between November 2010 and November 2013, LANDMAN defrauded her employer by authorizing and initiating at least 33 wire transfers from the company’s business bank account into her own personal credit card account. In total, LANDMAN transferred more than $250,000 from the company’s account to her personal credit card account and used the funds for personal purchases including jewelry, clothing, vacations, spa treatments, fitness equipment and entertainment tickets.
When she is sentenced, LANDMAN faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. A sentencing date has not been scheduled.
This matter is being investigated by the U.S. Secret Service, the Stamford Police Department and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Prescription Opioid and Heroin Epidemic Awareness Week September 18-24, 2016Read the Press Release
In recognition of Prescription Opioid and Heroin Epidemic Awareness Week, the United States Attorney’s Office is hosting events across South Dakota. The community forums are designed to highlight a unique, realistic perspective on the impact of prescription drug and opioid abuse.
Each event will feature a screening of “Chasing the Dragon: The Life of an Opiate Addict” - a documentary film collaboratively produced by the Federal Bureau of Investigation and the Drug Enforcement Administration, in response to increasing prescription painkiller and opioid drug abuse across the nation.
Following each movie screening will be an interactive panel discussion. The movie is approximately 50 minutes in length. The events are as follows:
Sioux Falls:
Tuesday, September 20, 2016, at 6:30 PM
Kresge Recital Hall, Augustana University, located at 2120 S. Grange Avenue
Rapid City:
Wednesday, September 21, 2016, at 6 PM
Elks Theatre, located at 512 6th Street
Pierre:
Thursday, September 22, 2016, at 7:00 PM
T.F. Riggs High School Theater, located at 1010 E. Broadway Avenue
The film, which is designed to better educate students and young adults about the dangers of these drugs and the tragic consequences that often accompany addiction, debuted nationally in February 2016. According to data in the film, nearly 46,000 people die from drug use annually in the United States, and about half of those deaths are related to opiate drug abuse. At least 78 Americans die every day from an opioid overdose – it affects all ages, all socio-economic groups, all over the country, including South Dakota.
Individuals and community groups are encouraged to attend. The event is free and open to the public.
The President has officially proclaimed September 18-24 as Prescription Opioid and Heroin Epidemic Awareness Week. The Presidential Proclamation is attached.
For further information and resources on this topic, visit DEA’s website: https://getsmartaboutdrugs.com
Prescription Opioid and Heroin Epidemic Awareness Week EventsRead the Press Release
RALEIGH/GREENSBORO/CHARLOTTE – The United States Attorney’s Offices for the Eastern, Middle, and Western Districts of North Carolina, in partnership with the Drug Enforcement Administration and the Federal Bureau of Investigation, announce the formation of the Federal Opioid Reduction Alliance for North Carolina, a coordinated state-wide effort to address the increasing dangers posed to the residents of North Carolina by heroin and opiate distribution, abuse, and overdose. The Alliance will work together with State and local partners to increase awareness, prevention efforts, and prosecutions related to heroin and other opioids in North Carolina. By implementing the attached Strategic Initiative, the United States Attorneys’ Offices hope to complement existing efforts across the state and enhance the ability of law enforcement to keep our communities safe.
In conjunction with the announcement of the Alliance, the United States Attorneys’ Offices will hold several events in observance of Prescription Opioid and Heroin Epidemic Awareness Week, September 18-24, 2016.
Within the Eastern District:
-
September 20, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, and Federal Law Enforcement Agency heads within the Eastern District of North Carolina are welcome to attend.
-
September 22, 2016 - A Community Town Hall at the Pullen Park Community Center in Raleigh from 6:00 – 8:00 p.m. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
Within the Middle District:
-
September 20, 2016 - A Opiate Awareness Meeting at the Wesleyan Academy, Performing Arts Center, 1915 N. Centennial Ave., High Point, NC. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
-
September 22, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, State and Federal Law Enforcement Agency heads within the Middle District of North Carolina are welcome to attend.
Within the Western District:
-
September 19, 2016 – “We Are a Community United Against Heroin,” is a daylong heroin and opiate addiction awareness summit hosted by the U.S. Attorney’s Office in partnership with the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department, on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
-
Prescription Opioid and Heroin Epidemic Awareness Week EventsRead the Press Release
CHARLOTTE/RALEIGH/GREENSBORO – The United States Attorney’s Offices for the Western, Middle, and Eastern Districts of North Carolina, in partnership with the Drug Enforcement Administration and the Federal Bureau of Investigation, announce the formation of the Federal Opioid Reduction Alliance for North Carolina, a coordinated state-wide effort to address the increasing dangers posed to the residents of North Carolina by heroin and opiate distribution, abuse, and overdose. The Alliance will work together with State and local partners to increase awareness, prevention efforts, and prosecutions related to heroin and other opioids in North Carolina. By implementing the attached Strategic Initiative, the United States Attorneys’ Offices hope to complement existing efforts across the state and enhance the ability of law enforcement to keep our communities safe.
In conjunction with the announcement of the Alliance, the United States Attorneys’ Offices will hold several events in observance of Prescription Opioid and Heroin Epidemic Awareness Week, September 18-24, 2016.
Within the Western District:
-
September 19, 2016 – “We Are a Community United Against Heroin,” is a daylong heroin and opiate addiction awareness summit hosted by the U.S. Attorney’s Office in partnership with the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department, on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
Within the Eastern District:
-
September 20, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, and Federal Law Enforcement Agency heads within the Eastern District of North Carolina are welcome to attend.
-
September 22, 2016 - A Community Town Hall at the Pullen Park Community Center in Raleigh from 6:00 – 8:00 p.m. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
Within the Middle District:
-
September 20, 2016 - A Opiate Awareness Meeting at the Wesleyan Academy, Performing Arts Center, 1915 N. Centennial Ave., High Point, NC. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
-
September 22, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, State and Federal Law Enforcement Agency heads within the Middle District of North Carolina are welcome to attend.
-
Port Sulphur Oysterman Charged in $300,000 B.P. FraudRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that STEVE COLLINS TURNER, SR., age 73, of Port Sulphur, was charged Friday with mail fraud in connection with a false claim of $300,000 related to the BP Oil Spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. According to the Bill of Information, TURNER applied for an Emergency Advance Payment seeking $300,000 in damages for lost money because of the Deepwater Horizon Disaster by submitting false documentation. TURNER submitted false documents regarding oyster buying businesses showing he sold oysters to the businesses when he really did not.
If convicted, TURNER faces a possible maximum sentence of twenty years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, TURNER may be ordered to pay restitution.
The U.S. Attorney’s Office reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office praised the work of the Special Agents of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Pittsburgh Man Pleads Guilty to Fraud ChargesRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
Michael F. Schoedel, 26, Pittsburgh, PA pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from on or about March 1, 2014 to March 17, 2014, Schoedel falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but Schoedel did not provide any tickets.
Judge Fischer scheduled sentencing for February, 3, 2017 at 11:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Schoedel.
Oregon Man Sentenced to 18 Years in Prison for Receipt and Possession of Images of Child RapeRead the Press Release
A man originally from the State of Oregon was sentenced today in U.S. District Court in Seattle to 18 years in prison and lifetime supervised release for receipt and possession of child pornography, announced U.S. Attorney Annette L. Hayes. JOHN EVERETT KAMPH, 42, has a prior conviction in Oregon for the sexual molestation of a 6-year-old girl. That prior conviction results in a mandatory minimum fifteen-year prison term. U.S. District Judge James L. Robart imposed an 18-year sentence saying he “needs to protect the public from the defendant.”
According to records filed in the case, KAMPH came to the attention of law enforcement when his internet service provider linked KAMPH’s email account to the receipt of images of child sex abuse. When the Seattle Police Department executed a court-authorized search warrant on KAMPH’s electronic devices, they found more than 600 images of child sexual abuse. The investigation revealed that KAMPH had not produced those images, but he had produced a video using his dog to interact with young children. In what appears to be a Seattle park, KAMPH uses his dog to attract young children and positions dog treats and the camera in such a way that he focuses on the children’s underwear.
KAMPH was arrested in Seattle in September 2015. KAMPH had failed to register as a sex offender as required by law due to his 1997 conviction for sexual abuse of a minor. He had been living in an RV in the upper parking lot at Seattle’s Woodland Park and was working at a restaurant at the north end of Lake Union.
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.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Seattle Police Department’s Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.
Old Town Woman Sentenced to 5½ 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 Fern Dowling, 40, of Old Town, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 5½ years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute cocaine base, commonly known as “crack.”
According to court records, between January 2010 and August 2013, the defendant distributed 7.8 kilograms 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. 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.
North American Health Care Inc. to Pay $28.5 Million to Settle Claims for Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Chairman of the Board and Senior Vice President of Reimbursement Analysis to Pay an Additional $1.5 Million
North American Health Care Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon, have agreed to pay a total of $30 million to resolve allegations that they violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary rehabilitation therapy services provided to residents at NAHC’s skilled nursing facilities (SNFs), the Department of Justice announced today. Under the settlement agreement, NAHC has agreed to pay $28.5 million. Mr. Sorensen has agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000.
“Medicare patients and those insured by TRICARE are entitled to receive care necessary for their clinical needs and not the financial needs of their health providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Health care providers will be held accountable if they bill for unnecessary services or treatment.”
NAHC is a private, for-profit company headquartered in Orange County, California, that has service agreements to operate 35 SNFs, most of them in California. The SNFs provide inpatient rehabilitation services, including physical, occupational, and speech therapy, to patients. The United States contends that NAHC caused false claims to be submitted to Medicare and TRICARE, seeking payment for medically unnecessary rehabilitation therapy services provided to residents at the NAHC facilities.
The United States further contends that Gelvezon, in her capacity as an officer of NAHC, contributed to this conduct by creating the improper billing scheme. The government also contends that Sorensen, in his capacity as chairman of the board of NAHC, reinforced this scheme at the NAHC facilities. The United States contends that this conduct occurred during the period from Jan. 21, 2005, to Oct. 31, 2009, for all of the NAHC SNFs and continued during the period of Nov. 1, 2009, to Dec. 3, 2011, for three of the SNFs in the Northern District of California area.
“This office is committed to safeguarding the federal health care programs and the patients who are enrolled in them,” said U.S. Attorney Brian J. Stretch for the Northern District of California. “Skilled nursing facilities such as NAHC treat some of the most vulnerable patients in the health care system. These facilities, and the individuals who run them, will be held accountable when they provide treatment based on financial motivations instead of the patients’ needs.”
“Providing medically unnecessary services to this fragile population can be taxing both for the patient and the program,” said Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan. “Today’s settlement should send a message to others who may be engaging in these schemes that we will pursue justice for our beneficiaries and the programs.”
As part of this settlement, NAHC has also entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA applies to all facilities managed by NAHC and requires an independent review organization to annually review therapy services billed to Medicare.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.6 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, HHS-OIG and the FBI.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
New York Restaurant Entrepreneur Pleads Guilty to Ten-Year Investment Fraud Scheme and Tax EvasionRead the Press Release
Defendant Deceived Investors, Diverted Funds and Dodged Tax Obligations
A Watertown, New York, food and restaurant entrepreneur and franchisor pleaded guilty today to one count of wire fraud and one count of tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.
According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors, as well as a scheme to evade taxes and obstruct the Internal Revenue Service (IRS).
“Mr. Swartz used his business enterprises to steal from lenders, investors, and the United States, hiding behind an elaborate web of entities and financial transactions,” said Principal Deputy Assistant Attorney General Ciraolo. “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.”
“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian. “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”
“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office. “Mr. Swartz’s conviction serves as warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”
Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high interest rates and ownership interests in his companies. Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew would bounce. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.
As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain. Swartz misappropriated and diverted a substantial portion of the funds. Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds. Swartz purported to secure some of the notes with fictitious and forged rebate agreements.
Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income. Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses. He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017. Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes.
The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales. Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims. According to court documents, the number of victims may be in excess of 130.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Restaurant Entrepreneur Pleads Guilty to Ten-Year Investment Fraud Scheme and Tax EvasionRead the Press Release
WASHINGTON – A Watertown, New York food and restaurant entrepreneur and franchisor pleaded guilty today to one count of wire fraud and one count of tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Richard Hartunian for the Northern District of New York.
According to the criminal information and plea agreement filed with the U.S. District Court in Utica, New York, between 2005 and 2015, Christopher Swartz, 46, engaged in a promissory note scheme to defraud lenders and investors, as well as a scheme to evade taxes and obstruct the Internal Revenue Service (IRS).
“Mr. Swartz used his business enterprises to steal from lenders, investors, and the United States, hiding behind an elaborate web of entities and financial transactions,” said Principal Deputy Assistant Attorney General Ciraolo. “This case serves as clear notice that no one is above the law, and those individuals who seek to evade their tax obligations will face prosecution and incarceration, regardless of the complexity of their schemes or economic status.”
“The defendant’s wide-ranging, persistent, and lengthy fraud and tax evasion schemes cost investors and the IRS millions of dollars,” said U.S. Attorney Hartunian. “My office is pleased to be part of the efforts by the Tax Division and IRS-Criminal Investigation to hold him accountable for his brazen conduct.”
“As highly trained and experienced financial investigators, IRS special agents are particularly adept at tracing the flow of funds and uncovering hidden assets,” said Special Agent in Charge Shantelle P. Kitchen of IRS Criminal Investigation, New York Field Office. “Mr. Swartz’s conviction serves as warning to anyone who schemes to divert money from a business in order to conceal income and evade taxes.”
Swartz, using his multiple interests in various food and restaurant businesses, raised money by fraudulently inducing lenders with the promise of repayment at high interest rates and ownership interests in his companies. Swartz misappropriated and diverted funds received and when lenders and investors sought the return of their funds, Swartz attempted to lull them with false and fraudulent excuses, assurances, and partial payments, including payments by checks that he knew would bounce. Swartz also concealed his assets and income to avoid seizure and collection by lenders, investors, and judgment creditors, thereby attempting to prevent recovery of their funds.
As one part of the scheme, in 2009, Swartz used a promissory note and the offer of an equity interest in the Jreck Subs franchise to induce an investor group from New York City to provide $1.5 million in funds, including funds for the construction of new stores and the growth of the chain. Swartz misappropriated and diverted a substantial portion of the funds. Swartz then solicited additional loans from this same group, fraudulently inducing them with a series of additional promissory notes, which he failed to honor while misappropriating funds. Swartz purported to secure some of the notes with fictitious and forged rebate agreements.
Swartz admitted that between 2005 and 2015, he also engaged in a 10-year tax evasion scheme, filing false tax returns that understated his personal income. Swartz diverted money from business accounts and disguised these diversions in the company records as, among other things, loans and business expenses. He made extensive use of cash to diminish the traceability of funds and concealed his ownership of various assets using multiple entities and nominees. Swartz also falsified partnership tax returns and attempted to impede the IRS’s ability to collect employment taxes.
U.S. District Judge David N. Hurd scheduled sentencing for Jan. 19, 2017. Swartz faces a statutory maximum sentence of 20 years in prison for his conviction on the wire fraud count, and five years in prison on the tax evasion count, as well as a period of supervised release and monetary penalties. As a condition of the plea agreement, Swartz agreed to an order of restitution payable to any individuals and entities determined to be, at the time of sentencing, victims of his schemes.
The district court entered a preliminary order of forfeiture of assets, including forfeiture of Swartz’s interests in the Jreck Subs franchisor corporate business, which receives royalty payments from store owners based on a percentage of store sales. Under current law, if a final forfeiture order is entered, criminally forfeited assets may be used as a source of funds to pay restitution to victims. According to court documents, the number of victims may be in excess of 130.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Hartunian thanked special agents of IRS-Criminal Investigation and the FBI, and an IRS revenue agent, who conducted the investigation, as well as Assistant Chiefs John N. Kane, Jr. and Andrew Kameros, and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Navajo Man from Shiprock Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Harrison Cambridge, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 42 months in prison followed by 15 years of supervised release for his conviction on an abusive sexual contact charge. Cambridge will also be required to register as a sex offender after he completes his prison sentence.
Cambridge was arrested in Dec. 2015, on a criminal complaint alleging that he sexually abused a Navajo child under the age of 12 on Dec. 20, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Cambridge was indicted on Jan. 14, 2016, and charged with abusive sexual contact of a child under the age of 12. On March 31, 2016, Cambridge entered a guilty plea to the indictment.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 http://www.justice.gov/psc/.
National Prescription Opioid and Heroin Epidemic Awareness Week to Examine Oregon EpidemicRead the Press Release
PORTLAND, Ore. – On Wednesday, September 21, 2016, leaders from local, state, and federal law enforcement and public health agencies will co-host “Taking Stock,” a roundtable discussion examining Oregon’s prescription opioid and heroin epidemic.
“The Department of Justice plays a critical role in building community coalitions to fight this epidemic, said Billy J. Williams, United States Attorney for the District of Oregon. This country is facing a crisis of heroin and opioid overdose deaths. We cannot arrest our way out of an epidemic that is causing such preventable loss of life. We must work together in Oregon to save lives through innovative partnerships between public safety and health. This event is a step forward in our effort to support a coordinated response across all elements of government and the private sector to address not only drug enforcement, but also prevention and treatment.”
The U.S. Attorney’s Office, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), and the Oregon Department of Justice will meet with local law enforcement and public health leaders to discuss issues surrounding the crisis. Opening remarks will be provided by U.S. Attorney Williams and Oregon Attorney General Ellen Rosenblum. Participants will also have the opportunity to hear perspectives from the Oregon Medical Examiner’s Office, the Oregon High Intensity Drug Trafficking Area Program (HIDTA), the Tri-County Public Health Departments, Lines for Life, and the DEA.
The roundtable discussion will take place at the Oregon Department of Justice in Portland from 8:00AM to 12:00PM. Members of Oregon’s law enforcement and public health communities are invited to attend. For event information, please contact Suzanne Hayden, Assistant U.S. Attorney, at [email protected] or (503) 727-1000.
This event is being held in conjunction with the National Prescription Opioid and Heroin Epidemic Awareness Week to raise awareness of the growing epidemic of opioid and heroin abuse in the U.S. For more information, please visit http://go.usa.gov/xKwCG.
National Heroin & Opioid Awareness WeekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-As prescription opioids and heroin continue to take a tragic toll on too many Americans and their families, U.S. Attorney William J. Hochul Jr. joined with the Drug Enforcement Administration for the start of Prescription Opioid and Heroin Epidemic Awareness Week.
“Each year, more Americans die from a drug overdose than in traffic accidents,” said U.S. Attorney Hochul. “This epidemic continues to take a heartbreaking toll on our local community. “To date, there are 150 confirmed opioid-related deaths in Erie County and 74% of those deaths involved fentanyl.”
In 2014, over 27,000 lives were lost to heroin and opioids in the United States, and reports indicate that number increased in 2015 and this year. The largest number of deaths came from the abuse of prescription opioids, but the number of heroin deaths, including heroin laced with fentanyl, has increased dramatically over the last several years.
The Department of Justice has designated September 19-23, 2016 as Prescription Opioid and Heroin Epidemic Awareness Week. The fight against this deadly epidemic involves a three-pronged approach: prevention; enforcement; and treatment. The goal of enforcement is to reduce the supply of these deadly substances.
U.S. Attorney Hochul further stated “Here in Western New York, we work closely with our partners at all levels, federal, state and local.” “We have prosecuted street dealers, gang members who sell drugs, doctors and other health care professionals. But we cannot arrest our way out of the problem. We will continue to join forces with our community partners in the medical, public health, prevention and treatment fields until we loosen the grip of this deadly epidemic.”
U.S. Attorney Hochul encourages all in our community to:• Have meaningful conversations with your family about the dangers of heroin and opioid abuse, it can happen to anyone.
• Get involved in activities in the community against heroin and opioids.
• Contact law enforcement if you suspect drug-related activity in your neighborhood.
• If you have prescription opioids in your home, make sure they are safely locked away.To further raise awareness about this epidemic, on Thursday, September 22, 2016, the U.S. Attorney’s Office is partnering with the Better Business Bureau of Upstate NY to present “Opiates in the Workplace.”
This two-hour event is free and open to all businesses in WNY. Employers can learn how to recognize the signs of addiction and ways to assist employees.
For more information and to register, go to http://bbbupstateny.org/opiates-workplace-registration/.
Mexican Citizen Sentenced to over Two Years in Prison for Identity TheftRead the Press Release
A woman who stole the identity of a United States citizen was sentenced Friday to more than two years in federal prison.
Elida Yepez-Alvarez, age 32, a Mexican citizen illegally residing in Marshalltown, Iowa, received the prison term after a June 23, 2016, guilty plea to one count of misuse of a Social Security Number and one count of aggravated identity theft.
The evidence showed that Yepez-Alvarez was convicted in the United States District Court for the Southern District of Iowa in 2006 of illegally using the name and Social Security Number of a United States citizen to obtain employment in Marshalltown. In September 2008, an immigration court ordered Yepez-Alvarez to depart the United States by January 7, 2009, but she failed to leave the country as ordered. On November 3, 2014, Yepez-Alvarez illegally used the name and Social Security Number of a different United States citizen to obtain employment in Tama. On May 17, 2016, Yepez-Alvarez was arrested by immigration agents in Marshalltown. At that time, Yepez-Alvarez turned over to agents a Social Security card, a Missouri identification card bearing her photo, and a birth certificate all in the name of the U.S. citizen whose identity she knowingly used.
Yepez-Alvarez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Yepez-Alvarez was sentenced to 28 months imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Yepez-Alvarez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-37.
Follow us on Twitter @USAO_NDIA.
Media Advisory: Tackling the Opioid & Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office, in partnership with the Eastern Iowa Heroin Initiative, Mason City Police Department, Cerro Gordo Sheriff’s Office, Prairie Ridge Integrated Behavioral Healthcare, and Mason City Youth Task Force has scheduled a community event on September 21st to discuss the heroin epidemic making its way into Eastern Iowa and beyond. It is estimated that there are over 100 overdoses deaths each day, with more than three out of five overdose deaths involving opioids. The greater Mason City area and surrounding communities are not immune to this threat.
Viewed as a national challenge requiring a community solution, the meeting will bring the community together to exchange information and to discuss strategies to address the epidemic plaguing our state. A special showing of the FBI and DEA documentary, Chasing the Dragon: The Life of an Opiate Addict, will be shown. This 49-minute film presents a compilation of heart-wrenching first-person accounts by addicts and family members of addicts about their experiences. A “Call to Action” will be introduced to the community by the Eastern Iowa Heroin Initiative. Visit: www.faceboook.com/EasternIowaHeroinInitiative, to learn more.
A representative from the U.S. Attorney’s Office will be present. The event is open to the public.
Event Details
When: Wednesday, September 21, 2016
Where: The Music Man Square, 308 S. Pennsylvania Ave., Mason City, IA 50401
Time: Begins at 6:00 p.m., and ends at 8:00 p.m.
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected].
Manager in Timeshare Resale Fraud Scheme Sentenced to Nine Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Chima Edozie Aligwekwe (34, Orlando) to nine years in federal prison for conspiracy to commit mail fraud and wire fraud for his role as a manager in a timeshare resale fraud scheme. The Court also entered a money judgment against Aligwekwe in the amount of $704,326.55, which represents the total amount of money fraudulently obtained as a result of the scheme. Aligwekwe was found guilty by a jury on June 10, 2016.
According to testimony and evidence presented at trial and sentencing, Aligwekwe acted as a manager for a company named “Timeshare Title Services LLC” that operated in Orlando. Representatives of the company, known as “callers,” made unsolicited phone calls to timeshare owners throughout the country, falsely claiming that a buyer existed for their timeshares. The timeshare owners were told that buyers had deposited money into an escrow account for the purchase of their timeshares, and they received documents from the companies that appeared to be legitimate timeshare sales contracts. Ultimately, the timeshare owners were told to send advance fees to the companies to finalize the sales. Numerous timeshare owners made advance fee payments to the companies but received no services and their timeshares were never sold. Aligwekwe provided customer lead information for the timeshare owners and managed a team of “callers” for Timeshare Title Services LLC. In just a three-month period, more than $500,000 in timeshare owner payments were deposited into bank accounts for the two companies. During this period, Aligwekwe personally received over $120,000 from the victims of this fraud scheme.
On August 25, 2016, another participant in the scheme, Eugene Warren Brewington (34, Orlando) was also sentenced to nine years in federal prison.
This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Kara M. Wick.
Man Sentenced to 37 Months for Providing False Information During Firearm PurchaseRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced today that Nana Kofi Baffoe, 63, was sentenced to serve 37 months in prison following his conviction on two charges of making false statements related to the purchase of firearms.
Baffoe previously pleaded guilty on June 14, 2016. According to documents that were filed in United States District Court and statements in the plea proceeding, on February 4, 2015, Baffoe purchased two Ruger .45 caliber pistols from a federally licensed firearms dealer in Hudson, New Hampshire. In purchasing these handguns, Baffoe filled out a form stating that he resided at a location in Manchester, New Hampshire. A subsequent law enforcement investigation showed that this statement was false. At the time of the purchase, Baffoe was residing in Canada. He never resided at the address in Manchester. Under federal law, the firearms dealer could not have lawfully sold these handguns to Baffoe if he was not a resident of New Hampshire.
Baffoe, who also has used the name John A. Baffoe, is originally from Ghana, but is a citizen of Canada and the United States. He originally was arrested on May 26, 2015. According to an affidavit previously filed in federal court, Baffoe entered the United States from Canada at a border crossing on May 18, 2015. A few days later, he met with a firearms dealer in Nashua, New Hampshire and sought to purchase 100 handguns. However, he was arrested before that larger transaction could take place.
Baffoe was sentenced by Chief United States District Judge Joseph Laplante. After serving his prison sentence, Baffoe will be placed on supervised release for two years.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Manchester Police Department, Nashua Police Department, the New Hampshire State Police, the Office of Inspector General of the Social Security Administration, the U.S. Department of Commerce, Homeland Security Investigations, and the U.S. State Department. It was prosecuted by Assistant United States Attorney John J. Farley.
###
Major Narcotics Supplier for New Jersey Drug Trafficking Organization Sentenced to 25 Years in PrisonRead the Press Release
TRENTON, N.J. – A Jersey City, New Jersey, man was sentenced today to 300 months in prison for supplying heroin and cocaine to a large-scale drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 37, was previously convicted of four counts of an indictment charging him with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property. Shannon was convicted following a two-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Between March and May 2014, 21 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the 22 individuals charged, 21 have been convicted to date.
According to documents filed in this case and the evidence presented at trial:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey.
The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the packages to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged and prepared the narcotics for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms in furtherance of the drug trafficking conspiracy, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
In addition to the prison term, Judge Sheridan sentenced Shannon to five years of supervised released.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark; officers of the Brick Township Police Department, under the direction of Chief James Riccio: and officers of the Toms River Police Department, under the direction of Chief Mitchell A. Little, with the investigation leading to today’s verdict.
He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato.
He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, and Long Branch police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Edward Bertucio Esq., Eatontown, New Jersey
MEDIA ADVISORY-- DOJ Officials and Tribal Leaders to Discuss Impact of Heroin and Opioid Epidemic on New Mexico’s Tribal CommunitiesRead the Press Release
HOPE Initiative’s National Heroin and Opioid Awareness Week Event to be Held on September 20, 2016 at Indian Pueblo Cultural Center in Albuquerque
ALBUQUERQUE – The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, a partnership between the UNM Health Sciences Center and the U.S. Attorney’s Office, is hosting a series of education events during National Heroin and Opioid Awareness Week, Sept. 19-24, 2016. Bruce G. Ohr, Associate Deputy Attorney General and Director of DOJ’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, will participate in the HOPE Initiative’s events.
The HOPE Initiative’s Awareness Week events will include a listening session during which Justice Department officials will hear from tribal leaders from the New Mexico tribes most deeply affected by the national heroin and opioid epidemic. At 2:00 pm on Sept. 20, 2016, tribal leaders and police chiefs from the Eight Northern Indian Pueblos will meet with Associate Deputy Attorney General Ohr and U.S. Attorney Damon P. Martinez at the Indian Pueblo Cultural Center in Albuquerque, N.M., to discuss the devastating impact heroin and opioids have had on tribal communities in northern New Mexico. Indian Health Services (IHS) physicians who provide care to New Mexico's Native American population and medical professionals from the UNM Health Science Center who provide pain and addiction training to IHS providers throughout the country will participate in the discussion.
Tribal leaders, DOJ officials, and medical professionals from the UNM Health Sciences Center will be available to meet with the media at 3:30 p.m. at the Indian Pueblo Cultural Center following the listening session. Discussion details from this event will be posted to the NM HOPE Initiative website and available to the public at www.hopeinitiativenm.org.
WHO:
DOJ Officials, Tribal Leaders and UNM Medical Providers will be available to speak with the media at 3:30 pm following the listening session.
Participants in Listening Session (in formation)
Associate Deputy Attorney General Bruce G. Ohr
U.S. Attorney Damon P. Martinez
Gil Vigil, Executive Director Eight Northern Indian Pueblos, Inc.
Pojoaque Pueblo Governor Joseph Talachy
Santa Clara Pueblo Governor Michael Chavarria
Dr. Joanna G. Katzman, Director of the UNM Pain Clinic
Dr. Snehal R. Bhatt, UNM Psychiatry Center, Medical Director of Addictions and Substance Abuse Programs
Dr. Leonard Thomas, Acting Director and Chief Medical Officer, Albuquerque Area Office, Indian Health Services
Dr. Chris Fore, Director of IHS Telebehavioral Health Center of Excellence
Assistant Special Agent in Charge John Burge, BIA Office of Justice Services
Assistant Special Agent in Charge Louis Poitra, BIA Office of Justice Services
Police Chief Brenda Gonzalez, BIA Northern Pueblos Agency
Police Chief Travis LeBeaux, BIA Southern Pueblos Agency
Special Agent Craig, BIA Division of Drug Enforcement
FBI Supervisory Special Agent Benedict B. Bourgeois
Pojoaque Pueblo Tribal Police Chief Frank Rael
Santa Clara Pueblo Tribal Police Chief Roger Naranjo
WHAT:
Media Availability following DOJ Listening Session with Tribal Leaders
WHEN:
Tuesday, September 20, 2016 at 3:30 pm
WHERE:
Indian Pueblo Cultural Center
2401 12th Street NW, Albuquerque, NM
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Media may begin to arrive at 3:15 pm. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (cell), or [email protected].
NOTE: Reporters who cannot participate in the media availability but are interested in participating in telephone interviews conference should contact Alyssa Ferda. See contact information above.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Lansing, Michigan Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that THOMAS ZACHARY PETERS, age 32, of Lansing, Michigan, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3) and FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that from in or about November 2015, the exact date being unknown to the Grand Jury, until on or about June 1, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, THOMAS ZACHARY PETERS, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan, in Eaton County, on or about April 7, 2005, for the offense of Criminal Sexual Conduct-2nd Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
It further alleged that from in or about November 2015 until on or about June 1, 2016, in the Eastern District of Oklahoma, the defendant, THOMAS ZACHARY PETERS, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Michigan Department of Corrections, the Pittsburg County Sheriff’s Office, and the Unites States Marshal Service.
The statutory range of punishment for each count is not more than 10 years imprisonment, a fine of up to $250,000 or both.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the Unites States Marshal Service pending sentencing.
Assistant United States Attorney Edward Snow represented the United States.
La Joya Housing Authority Indicted in Bid Rigging SchemeRead the Press Release
McALLEN, Texas ‐ The executive director of the La Joya Housing Authority has been indicted along with another individual for wire fraud, announced U.S. Attorney Kenneth Magidson.
Juan Jose Garza, 48, and Armando Jimenez, 52, were arrested Friday. This morning, the two men made their initial appearances before U.S. Magistrate Judge Dorina Ramos.
Garza is the executive director of the La Joya Housing Authority. The indictment alleges that from July 2012 through March 2013, Garza and Jimenez engaged in bid rigging for construction contracts with the Alamo and Donna Housing Authorities. Garza and Jimenez allegedly submitted false bids so that Jimenez Construction would be awarded construction projects. Jimenez then falsely submitted invoices for work he claimed his construction company did, but that had been completed by subcontractors working for Garza, according to the charges.
If convicted, each faces up to 20 years in prison and a possible $250,000 maximum fine.
The Housing and Urban Development - Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
An indictment is merely an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
KC Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to his role in a bank fraud conspiracy in which he operated a flop house where he paid drug addicts for stolen identity information that was used to create counterfeit checks.
Tyler Sutton, 54, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit bank fraud, possession of counterfeit securities, possession of stolen mail, and identity theft. Sutton also pleaded guilty to two counts of aggravated identity theft.
Sutton was a property manager residing in the 400 block of Gladstone Boulevard in Kansas City, although he only paid rent for one month and was evicted in October 2014. He used the house to conduct his illegal business by operating it as a flop house where he offered cash and/or drugs to drug addicts who brought him stolen mail, identities, addresses, credit card numbers and bank account information. Sutton often allowed the addicts to stay at the residence.
Sutton also unlawfully obtained identity and account information belonging to other persons and businesses by stealing these items from businesses and from the mail. Sutton and co-conspirators used the stolen identity information to create counterfeit identifications and checks, which were cashed at retail stores and financial institutions.
Sutton did not usually create counterfeit identifications and checks himself, nor did he personally present counterfeit identifications and cash checks. Rather, he instructed others in the making and presenting of counterfeit identifications and checks, and shared the illegal proceeds with his co-conspirators. In this manner, Sutton attempted to insulate himself from liability.
Sutton admitted that the intended loss amount was $83,981.
Co-defendants Gary K. Keesler, 37, and Chad M. Mills, 28, both of Kansas City, Mo., and Christopher Hite, 33, of Windsor, Mo., have pleaded guilty to their roles in the conspiracy and have been sentenced.
Under federal statutes, Sutton is subject to a sentence of up to five years in federal prison without parole for the conspiracy, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Justice Department Settles with 30 Hop Restaurant and Bar in Iowa to Resolve Americans with Disabilities Act ViolationsRead the Press Release
The Justice Department filed a proposed consent decree today with 30 Hop restaurant and bar in Coralville, Iowa, resolving claims that the establishment violated the new construction requirements of Title III of the Americans with Disabilities Act (ADA).
The ADA requires newly constructed facilities to comply with the ADA Standards for Accessible Design. 30 Hop, which opened for business in 2014, is a newly constructed multi-story restaurant and bar with a rooftop patio. The department’s complaint alleges that 30 Hop does not provide an accessible route to the rooftop patio or lower level, has an inaccessible entrance, has no accessible dining tables and has inaccessible bathrooms.
“All newly constructed restaurants and bars must be readily accessible to and usable by individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend the owners of 30 Hop for cooperating with the Justice Department and for taking swift action to remedy the alleged ADA violations.”
Under the consent decree, which is subject to court approval, the owners of 30 Hop will, among other things, install an elevator between the ground floor and rooftop patio, install a platform lift between the ground floor and the lower level, provide accessible dining surfaces in each area of the restaurant and bar, provide closed risers on the staircase to the rooftop patio, increase the maneuvering clearance at the entrance door, bring the bathrooms into compliance with the ADA requirements for newly constructed facilities, pay a $17,500 civil penalty and pay $3,500 to compensate an individual with a disability who is not able to access the rooftop patio.
The agreement will last for two years. To learn more about the ADA, call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or visit www.ada.gov.
30 Hop Consent Decree