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Thursday 1 September 2016
Five Reserve Men Charged with Gun and Drug Charges, and Retaliation against a WitnessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TROY KENDRICK, JR., age 33, GARRICK JONES, age 37, TRAVIS CARTER, age 37, MICHAEL SANDERS, age 34, and RESHAD FRANK, age 38, all of Reserve, were charged today in a nine-count Indictment.
According to the Indictment, KENDRICK, JONES, CARTER, SANDERS, and FRANK conspired to distribute cocaine base (“crack”). KENDRICK, JONES, and CARTER were also charged with distribution of crack. If convicted of the charge of conspiracy to distribute crack, KENDRICK, JONES, and CARTER face a term of imprisonment of at least five and up to forty years, a fine of $5,000,000, and at least four years of supervised release following any term of imprisonment, while SANDERS and FRANK face a term of imprisonment of up to twenty years, a fine of $1,000,000, and at least three years of supervised release following any term of imprisonment.
JONES and CARTER were also charged with retaliating against a witness for information provided to law enforcement relating to the commission of a federal offense. If convicted of that charge, each defendant faces a term of imprisonment of up to twenty years, a fine of $250,000, and three years of supervised release following any term of imprisonment.
KENDRICK and JONES, each of whom had previously been convicted of felonies, were also both charged with illegal possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime, all of which occurred on August 17, 2016. KENDRICK possessed an FN Herstal, model Five-Seven, pistol, a Lorcin, model L380, .380 caliber pistol, a Taurus, model PT140, .40 caliber pistol, a Ruger, model SR45, .45 caliber pistol, and a Magnum Research, Inc., model Desert Eagle, .44 caliber pistol. JONES possessed a Smith and Wesson .38 caliber pistol. If convicted of these gun charges, each defendant faces a minimum term of imprisonment of at least five years, which must run consecutive to any other sentence, and a maximum term of life imprisonment, a fine of $250,000, and three years of supervised release following any term of imprisonment.
“This Indictment is an example of our region's outstanding cooperation across local, state, and federal law enforcement,” stated U.S. Attorney Polite. “Collectively, we are committed to stopping drug trafficking and the violence that often accompanies it.”
“The wreckage caused by drugs and violence affects everyone, not just in large cities, but also in small towns and rural areas like the city of Reserve and St. John the Baptist Parish,” stated DEA Special Agent in Charge Stephen G. Azzam. “No matter the amounts of drugs they sell, drug dealers breed crime in our neighborhoods and are a danger to our children. The arrests in this investigation demonstrate to the citizens of St. John the Baptist Parish that federal, state, and local law enforcement can come together and accomplish great things. It should also serve as a warning to drug dealers in communities throughout Louisiana that your illegal and destructive actions will not be tolerated.”
“St. John Sheriff’s Office Special Operations Division and the DEA conducted an extensive investigation of a group of individuals from St. John Parish that were involved in narcotics trafficking and illegal weapon possession,” stated Sheriff Mike Tregre. “As Sheriff of St. John Parish I am committed to using all available resources necessary to try to prevent any further loss of life. I want to thank the DEA for their time, assistance, and resources with helping take all of these weapons off the street. It feels good knowing that we probably saved a life with this joint effort and that we as a team are committed to getting more illegal guns off the streets of St. John Parish as other investigations are currently underway.”
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration and the St. John the Baptist Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Federal Jury Convicts Two North Texas Men in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a one-day trial before U.S. District Judge Reed C. O’Connor, a federal jury deliberated ninety minutes yesterday to convict Juan Pasillas, 37, of Fort Worth, Texas, and Antonio Ballesteros 26, of Terrell, Texas, for their roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
The government presented evidence at trial that included numerous wire intercepts in Spanish, video recordings, and testimony from law enforcement that Pasillas and Ballesteros conspired to traffic large amounts of methamphetamine in the Fort Worth area. They regularly purchased large amounts of methamphetamine for distribution from a supplier in southeast Fort Worth.
Each was convicted on one count of conspiracy to possess with intent to distribute more than 500 grams of methamphetamine. The statutory penalty for that offense is not less than 10 years and up to life in prison and a $10 million fine. Sentencing is set for December 12, 2016, before Judge O’Connor.
The Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Megan Fahey, Mark Nichols and Shawn Smith are prosecuting.
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El Departamento de Justicia Colabora con México para Combatir la Discriminación en el EmpleoRead the Press Release
mexico_memorandum_de_entendimiento.pdfWASHINGTON – El Departamento de Justicia y el Ministerio de Asuntos Exteriores de los Estados Unidos Mexicanos establecieron una asociación formal hoy para proteger a trabajadores de discriminación por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Jefa de la División de Derechos Civiles del Departamento de Justicia, y el Embajador de México Carlos Sada firmaron un Memorándum de Entendimiento (MOU, por sus siglas en inglés) entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés), de la División.
Como parte del MOU, la OSC y el gobierno mexicano colaborarán para educar a trabajadores acerca de sus derechos laborales y proveerles los recursos necesarios para proteger tales derechos. Asimismo, el MOU busca promover la formación de empleadores en lo que se refiere a sus obligaciones en virtud de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), la que prohíbe la discriminación laboral por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU establece lo siguiente:
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La OSC brindará capacitación al personal consular mexicano acerca de la disposición antidiscriminatoria de la INA, participará en eventos organizados por los consulados mexicanos para educar a trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.
- Por su parte, la embajada establecerá un sistema para referir demandas de discriminación recibidas en la embajada y sus consulados a la OSC.
“La ayuda que el gobierno mexicano extiende al Departamento de Justicia para asegurar que los trabajadores conozcan sus derechos y las protecciones que la ley ofrece hace que este desempeñe un papel crítico en el proceso,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta. “México ha tomado las riendas de la Semana de Derechos Laborales al garantizar que trabajadores en México, así como por todo el mundo, conozcan sus derechos en el lugar de trabajo y sepan cómo acceder a apoyo y ayuda. Estoy muy agradecida a nuestros homólogos mexicanos por su asociación colaborativa en nuestra misión compartida de empoderar a trabajadores y combatir la discriminación.”
Durante el último año, el Departamento también ha formado asociaciones formales con Ecuador y El Salvador con el fin de empoderar y educar a individuos de dichas naciones que cuenten con autorización para trabajar.
La OSC es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación. Aparte de su trabajo de ejecución, la OSC informa al público de sus derechos y responsabilidades al amparo de la disposición antidiscriminatoria de la INA.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite la página web de la OSC.
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Company Owner Pleads Guilty to Bank FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that CARL D. WRIGHT, age 46, of Greenwell Springs, Louisiana, pled guilty yesterday before Senior U.S. District Judge James J. Brady to one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and to four counts of making false statements to financial institutions, in violation of Title 18, United States Code, Section 1014. As a result of his convictions, WRIGHT faces a potential prison term as well as restitution to the victim-banks.
WRIGHT operated a company called Nevada Systems, Inc., which was in the business of renovating distressed residential properties. From 2004 until 2010, WRIGHT executed a scheme to defraud several banks in the Baton Rouge area. WRIGHT obtained loan proceeds from multiple banks by submitting loan applications that contained numerous materially false statements and information. WRIGHT’s loan applications were accompanied by fictitious tax returns that WRIGHT had his tax preparer create on his behalf and presented to the banks as proof of income. The fictitious returns contained inflated income figures and were never filed with the Internal Revenue Service. WRIGHT and his companies fraudulently obtained approximately $2.5 million from several banks.
U.S. Attorney Green stated, “In working with the Federal Bureau of Investigation in this and other cases, our office will continue to aggressively pursue individuals who defraud our banks and financial institutions. Holding individuals accountable for their actions is crucial to halting fraud and to serving as a deterrent to anyone inclined to engage in similar wrongdoing.”
This investigation was handled by the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys J. Brady Casey and Peter Smyczek.
Charleston Restaurant Owner Sentenced to Prison for Making a False Statement to the Department of LaborRead the Press Release
Contact Person: Dean Secor (843) 727-4381
Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Jose Jamie Villalpando, a/k/a “Jamie Villapondo,” age 48, of Charleston, owner of Senor Tequila Restaurants in Charleston, was sentenced on Friday in federal court in Charleston, South Carolina, for False Statement, a violation of 18 U.S.C. § 1001(a)(1). United States District Judge David C. Norton of Charleston sentenced Villalpando to five (5) months imprisonment, three (3) years of supervised release, and payment of a $100 special assessment. Judge Norton also ordered Villalpando to pay restitution to the U.S. Department of Labor, Wage and Hour Division in the amount of $76,575.92.
Evidence presented at the change of plea hearing established that the Wage & Hour Division (WHD) of the Department of Labor (DOL) began an investigation into whether Senor Tequila Mexican Restaurants (Senor Tequila) was paying its employees proper minimum wage and overtime pay in compliance with the Fair Labor Standards Act. The investigation found that Senor Tequila had failed to pay seven of its employees a total of approximately $106,103.05 in minimum wage and overtime pay for the period of July 28, 2008 to July 19, 2010.
Villalpando agreed to pay the back wages. However, instead of paying all of the back wages he devised and executed a scheme in 2011 in an attempt to deceive WHD investigators and avoid the payment of back wages owed to three of the employees in the amount of $76,575.92.
Villalpando executed the scheme by writing “Senor Tequila” back wages paychecks to the three employees. Villalpando then took those employees to the bank used by Senor Tequila and helped them set up accounts (one employee already had an account at the bank). Villalpando then had the three employees deposit the back wages paychecks into their respective bank accounts. Over the next several weeks, Villalpando had the three employees withdraw the amounts of the back wages paychecks from their accounts in increments and give the money back to him. Villalpando then mailed letters to WHD stating that he paid the three employees, and he attached copies of the cancelled back wages paychecks in an attempt to show that he had in fact paid the employees.
Acting U.S. Attorney Drake stated the maximum penalty for False Statement is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Department of Labor-Office of Inspector General. Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
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Cedar Rapids Man Sentenced to over 12 years in Prison for Drug Crime Committed on Supervised ReleaseRead the Press Release
A Cedar Rapids man on federal supervised release was sentenced yesterday to more than 12 years in federal prison for possessing more than 35 grams of “ice” methamphetamine with the intent to distribute.
Pablo Ortega, age 40, from Cedar Rapids, Iowa, received a total prison sentence of 147 months’ after a March 24, 2016, guilty plea to possession with intent to deliver more than 5 grams of pure methamphetamine, which was further supported by his admission at yesterday’s hearing that he had violated the conditions of his supervised release by committing a new crime. Ortega had been released from federal prison in December of 2014, after serving a 188 month prison term for another federal drug trafficking crime.
At his guilty plea, Ortega admitted he was on supervised release beginning in December 2014, and was subject to having his residence searched by federal probation officers. On November 6, 2015, when the United States Probation Office conducted a search of his residence they found over 35 grams of “ice” methamphetamine, which is highly pure methamphetamine.
Ortega was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. For the violation of his supervised release, Ortega was sentenced to 60 months’ imprisonment. For the new drug crime, Ortega was sentenced to 87 months’ imprisonment to be served consecutively with the other term of imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and investigated by the United States Probation Office, Cedar Rapids Police Department, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl under file numbers are CR 00-3020 and CR 16-0010. Follow us on Twitter @USAO_NDIA.
Cedar Rapids Man Pleads Guilty to Enticement of MinorsRead the Press Release
A former school bus attendant who enticed three minors pled guilty today in federal court in Cedar Rapids.
Tyler Konigsmark, age 20, of Cedar Rapids, was convicted of one count of enticement of minors. At the plea hearing and in a plea agreement, Konigsmark admitted that, between April and May of this year, he used Snapchat and his iPhone to request sexually explicit images from three girls, age 12, 13, and 14, who rode on school buses where he was an attendant. He also admitted that, on two occasions, he had sexual intercourse with the 12-year-old girl after he used Snapchat and his cell phone to arrange meetings with her.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Konigsmark remains in custody of the United States Marshal pending sentencing. Konigsmark faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-57.
Follow us on Twitter @USAO_NDIA.
Brooklyn Men Sentenced for Intending to Sell Crack and Heroin in PlattsburghRead the Press Release
SYRACUSE, NEW YORK –Jawan Long, age 32, and Lance Harper, age 24, both of Brooklyn, New York, were sentenced today for possessing crack and heroin with the intent to distribute the drugs.
Senior U.S. District Judge Noman A. Mordue sentenced Long to 40 months of imprisonment, to be followed by a 3-year term of post-imprisonment supervised release, and sentenced Harper to 33 months of imprisonment, to be followed by a 6-year term of supervised release.
The announcement was made by United States Attorney Richard S. Hartunian; New York State Police Superintendent (NYSP) George P. Beach II; and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
On April 1, 2016, Long and Harper travelled by bus from New York City to Plattsburgh while in possession of crack and heroin, and were arrested by the NYSP and DEA when they arrived at the Plattsburgh bus station. Long had 39 grams of crack in his underwear. Harper had 22 grams of crack and 8 grams of heroin in his underwear. The two men intended to sell the crack and heroin in the Plattsburgh area.
This case was investigated by the New York State Police and U.S. Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Brockton Man Pleads Guilty to Sex TraffickingRead the Press Release
BOSTON – A Brockton man pleaded guilty today in U.S. District Court in Boston to sex trafficking charges.
Kwamaine J. Wells, 27, pleaded guilty to four counts of transportation of an individual with intent to engage in prostitution and one count of conspiracy to transport an individual for prostitution. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 1, 2016.
Between April 2013 and February 2014, Wells transported four women between Maine, Massachusetts and New York with the intent that they engage in prostitution, and used force and threats to coerce two of the women to engage in prostitution. Wells also allegedly conspired with a co-defendant to transport women between Massachusetts, New Jersey and New York with the intent that they engage in prostitution.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Divison, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Miranda Hooker and Leah Foley of Ortiz’s Civil Rights Enforcement Team.
Boise Man Sentenced to Seven Years in Federal Prison for Illegal Gun PossessionRead the Press Release
BOISE – Joshua David Gibson, 32, of Boise, Idaho, was sentenced yesterday in United States District Court for possession of a firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge sentenced Gibson to 90 months in prison followed by 3 years supervised release. Gibson pleaded guilty to the charge on June 28, 2016.
According to the plea agreement, Gibson admitted that on January 12, 2016, he possessed eleven firearms. Gibson knew some of the firearms were stolen. Gibson sold all eleven of the firearms, the magazines, and the rounds of ammunition to undercover law enforcement. Gibson was prohibited from possessing a firearm due to a previous felony conviction for burglary.
The case was investigated by the Ada County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Federal Bureau of Investigation (FBI).
Baton Rouge Resident Sentenced for Stealing Federal Dollars in Fraudulent Tax Refund SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that on Wednesday, August 31, 2016, LAGUARDIA COSTON, age 29, of Baton Rouge, Louisiana, was sentenced by Senior U.S. District Judge James J. Brady to theft of government funds, in violation of Title 18, United States Code, Section 641. During a December 2015 guilty plea hearing, COSTON admitted to preparing and filing numerous fraudulent tax returns using stolen personal identifiers, such as names and social security numbers, of 73 separate victims, and, in doing so, stole $102,000 in tax refunds from the U.S. Treasury.
After hearing evidence during the sentencing hearing, Judge Brady sentenced COSTON to a term of imprisonment of 33 months, a term of supervision after release from prison of 3 years, forfeiture of $102,000, and restitution to the U.S. Treasury of $102,000. After serving the adjudged term of imprisonment, COSTON will be supervised by the U.S. Probation Office to ensure that she abides by certain conditions imposed by Judge Brady designed to ensure that she embarks on a crime-free path.
U.S. Attorney Green stated: “This case exemplifies the importance of our office working in concert with the Internal Revenue Service Criminal Investigation Division (IRS-CI) to ensure that individuals who use the stolen identities of others and defraud the United States face the justice they deserve. We look forward to continuing our work with IRS-CI and other investigative agencies in the fight to deter both ongoing criminal conduct along with similar criminal conduct considered by others.”
Special Agent-in-Charge of Internal Revenue Service Criminal Investigation, Jerome R. McDuffie, stated: “This sentence is a stern reminder that participation in refund fraud schemes does not pay and those who do so will be held accountable. Ms. Coston used 73 stolen identities to file false tax returns and obtain refunds for personal gain. Identity theft is an on-going problem and IRS-CI will continue to vigorously investigate those engaged in these illegal activities, and work with the United States Attorney's Office to aggressively protect innocent taxpayers and preserve the integrity of our tax system.”
This matter has been investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Augusta County Woman Sentenced for Failing to Register as Sex OffenderRead the Press Release
ROANOKE, VIRGINIA – A previous convicted sex offender, who due to her previous criminal conduct was required to register as a sex offender, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke for failing to maintain her sex offender registration, United States Attorney John P. Fishwick Jr. announced.
Kimberly Ann Avery, 53, of Augusta County, previously pled guilty to one count of failing to register as a previously convicted sex offender. Today in District Court Avery was sentenced to 15 months in federal prison and five years of supervised release thereafter.
“When individuals fail to comply with the Sex Offender Registration and Notification Act they will be held accountable,” United States Attorney Fishwick said today. “SORNA is an important tool for law enforcement and our community that ensures our friends and neighbors are kept informed and safe.”
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Avery was aware that she was required to register as a sex offender under SORNA and had, on two separate occasions in 2011 and 2015, completed Virginia Sex Offender and Crimes Against Minors Registration Forms.
However, on September 29, 2015, a probation officer prepared a major violation report for Avery, citing multiple probation violations, including having contact with minor children, using illegal drugs and absconding from state probation. The report further stated that Avery failed to report for a scheduled appointment and that her whereabouts were unknown.
On November 4, 2015, investigators with the United States Marshals Service in the Southern District of Texas located Avery and conducted and interview with Avery, during which she stated she was tired of being labeled a monster and that she absconded because she wanted to live a normal life.
On November 5, 2015, investigators interviewed GT, a friend of Avery. GT admitted to knowing Avery for 30 years and further admitted that he knew Avery was a convicted sex offender and said Avery had picked him up from Connecticut, that they had traveled to California and then to Texas. GT stated that Avery did not register as a sex offender because she knew she would be arrested if she did. GT also stated that Avery wanted to abscond because she was not the monster she was being made out to be.
The investigation of the case was conducted by the United States Marshals Service and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Albuquerque Man Pleads Guilty to Discharging a Firearm During the Armed Robbery of a Convenience StoreRead the Press Release
ALBUQUERQUE – Reynaldo Marquez, 26, of Albuquerque, N.M., pled guilty today in federal court to discharging a firearm during a crime of violence. Under the terms of his plea agreement, the parties will recommend that Marquez be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Marquez was charged in a seven-count superseding indictment that was filed on May 28, 2015. The superseding indicted added Marquez as a new defendant and two new counts to a five-count indictment previously filed on Jan. 21, 2015. The original indictment charged six Albuquerque residents – Raymond Castillo, 27, Castillo, Daniel Maestas, 36, Johnny Ramirez, 31, Frank Gallegos, 31, Reyes Lujan, 27, and Henry Lujan, 23, with conspiracy, commercial armed robbery and firearms charges.
The superseding indictment charged the original six defendants with conspiracy to violate the Hobbs Act, and with interfering with interstate commerce by robbing a Wal-Mart Store located in Bernalillo County, N.M., on Oct. 29, 2014. It also charged Castillo with discharging a firearm during the robbery of the Wal-Mart store; Maestas with using and carrying a firearm during that robbery; and Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery. The two new charges in the superseding indictment charged Marquez and Castillo with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County, N.M., on Dec. 7, 2014, and Marquez with discharging a firearm during the robbery of the 7-11 convenience store on Dec. 7, 2015.
During today’s proceedings, Marquez pled guilty to Count 7 of the superseding indictment charging him with discharging a firearm during and in relation to a crime of violence. In entering the guilty plea, Marquez admitted discharging a firearm during a robbery that occurred on Dec. 7, 2014, he. Marquez remains in custody pending a sentencing hearing, which has yet to be scheduled.
Marquez’s six co-defendants previously have entered guilty pleas. Reyes Lujan was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release. The five remaining co-defendants are in custody pending their sentencing hearings.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Wednesday 31 August 2016
Westminster Man Sentenced for Orchestrating a Scheme to Defraud ClientsRead the Press Release
DENVER – Timothy J. Tucker, age 53, of Westminster, Colorado, was sentenced on August 30, 2016 by U.S. District Court Judge Christine M. Arguello to serve 78 months in federal prison for wire fraud and money laundering, Acting United States Attorney Bob Troyer, Federal Bureau of Investigation Acting Special Agent in Charge Calvin Shivers, and IRS Criminal Investigation Acting Special Agent in Charge Kareem Carter announced. Following his prison sentence, Tucker was ordered to serve 3 years on supervised release. Tucker was also ordered by Judge Arguello to pay $1,614,302.87 in restitution to the victims.
According to the facts contained in the indictment and plea agreement, beginning in February 2010 and continuing until late 2013, Tucker devised a scheme to defraud by obtaining advanced fees from individuals and entities who were seeking multimillion-dollar loans. During the course of the scheme, Tucker operated Assured Venture Group (“AVG”) and The Financial Group, LLC (“TFG”), which purported to be in the business of finding funding for multimillion-dollar loans for investment projects through the issuance of corporate bonds.
Tucker told people and entities seeking multimillion-dollar loans that they were required to pay AVG/TFG fees in advance of AVG/TFG performing work to find funding for the requested loans and that the fees would be spent only on underwriting, due diligence, and closing costs related to the requested loans. For some of these loans, Tucker promised that the advanced fees would be placed in an escrow account to falsely reassure the people and entities seeking the multi-million dollar loans that the advanced fees would be spent on only underwriting, due diligence, and closing costs related to the requested loan, as promised.
Between February 2010 and March 2013, AVG/TFG was paid over $1.8 million in fees on twenty-two different projects, both by individuals and entities. Tucker did not secure funding for any of the projects and did not return any fees on twenty of twenty-two projects. The majority of the fees received by AVG/TFG were used for things unrelated to the requested loans, including Tucker’s other businesses.
"We have very sophisticated agents and prosecutors in this federal district," Troyer said. "This is rank theft, and it will be punished."
“Illegal activity involving the investment industry has brought financial ruin to many Americans. Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money,” said Acting Special Agent in Charge Kareem Carter, IRS – Criminal Investigation, Denver Field Office. “Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
This case was investigated by agents with the Federal Bureau of Investigation (FBI) and the Internal Revenue Service – Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Pegeen Rhyne and Special Assistant United States Attorney Daniel E. Burrows.
Victor Martinez-Lopez Sentenced to 294 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Victor H. Martinez-Lopez, 39, of Vandalia, Michigan was sentenced before Judge Jon E. DeGuilio, for distribution of methamphetamine.
Martinez-Lopez was sentenced to 294 months’ imprisonment and 6 years of supervised release.
According to court proceedings, Martinez-Lopez made multiple trips across the United States to transport methamphetamine to Northern Indiana. The court determined that the total amount of methamphetamine he transported and sold exceeded 45 kilograms.
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.
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United States Settles False Claims Act Allegations Against Coastal Spine and Pain for $7.4 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Physicians Group Services, P.A., doing business as Coastal Spine and Pain (“Coastal”), has agreed to pay $7.4 million to the government to resolve allegations that Coastal violated the False Claims Act by performing medically unnecessary drug screening procedures.
The settlement relates to Coastal’s use of “Quantitative Drug Tests,” or tests that identify and count particles of illicit drugs in patients’ urine. The use of quantitative drug tests – tests that are very specific and also very expensive – is appropriate only if there is reason to doubt the more general and cheaper qualitative drug test screens. The government contends that Coastal appropriately performed qualitative drug tests for its patients. However, the United States contends that, regardless of the result of the less expense qualitative test, Coastal performed and billed for quantitative drug tests for all patients. The government contends this was medically unnecessary, as there was no reason to question or further confirm previous qualitative urine drug testing screens.
“The United States Attorney’s Office is committed to taking the steps necessary to protect Medicare, TRICARE, and other federal health care programs from fraud,” said U.S. Attorney Bentley. “When health care practitioners conduct medical tests, they must only bill for them when it is appropriate and medically necessary. We will vigorously pursue providers that perform tests indiscriminately, regardless of need.”
This case was developed through the proactive review of claims data. Coastal was a statistical outlier in terms of billing for quantitative drug test screens. In fact, in each and every instance that Coastal billed for a qualitative drug test screen, it also billed for a quantitative drug test screen. This statistical outlier prompted questioning and investigation by the Department of Justice.
“New and expanded uses of data analytics to identify suspicious billing patterns, such as in this case, are providing law enforcement agencies with powerful investigative tools to combat fraud and abuse in federal health care programs,” said HHS OIG SAC Shimon Richmond. “Medicare should only be paying for medical tests to improve the health of beneficiaries, not the profit margins of unscrupulous physicians. Today’s settlement should serve as notice to others that fraud will be vigorously pursued.”
This civil 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 more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.
This matter was investigated with assistance from the Department of Health and Human Services Office of Inspector General (HHS/OIG) and the Defense Criminal Investigative Service (DCIS). It was prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Two Greenbrier County dealers headed to federal prison for drug crimesRead the Press Release
BECKLEY, W.Va. – Two Greenbrier County men were sentenced to prison today for federal drug crimes, announced United States Attorney Carol Casto. Willie Keaton Goodson III, 22, of Ronceverte, was sentenced to seven years in federal prison for distribution of oxymorphone. In a separate prosecution, James Michael Payne, 63, of Frankford, was sentenced to a year and four months in federal prison for distribution of heroin.
Goodson admitted that on October 22, 2015, he distributed oxymorphone pills at his Ronceverte residence to a confidential informant working with law enforcement. Goodson further admitted that he distributed oxymorphone pills on three other occasions. During the course of the investigation, authorities seized large quantities of oxymorphone, oxycodone, and heroin from Goodson’s residence and from property near his residence. Law enforcement also seized over $100,000 cash that Goodson forfeited to the state of West Virginia. Officers additionally seized firearms that Goodson admitted he possessed while selling drugs.
In a separate drug prosecution, Payne admitted that on August 21, 2015, he distributed six stamps, or packets, of heroin to a confidential informant cooperating with law enforcement authorities. The drug deal took place in the Fairlea area of Greenbrier County. Payne also admitted that he distributed a total of approximately 100 stamps of heroin during August and September of 2015.
The investigations were conducted by the Greenbrier Valley Drug and Violent Crime Task Force and the Greenbrier County Sheriff’s Department. Assistant United States Attorney John File handled the prosecutions. United States District Judge Irene C. Berger imposed the sentences.
These prosecutions were brought as part of the Greenbrier Valley Heroin and Pill Initiative, 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.
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Three Plead Guilty to Robbery of Carolina CashersRead the Press Release
Contact Person: Jamie Schoen (864) 282-2100
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Greenville, South Carolina---- Acting United States Attorney Beth Drake stated that yesterday Mark Betancourt, age 31, of Greenville, SC; Juan Betancourt, age 23, of Greenville, SC; and Joseph Sansosti, age 23, of Simpsonville, SC, entered guilty pleas in federal court in Greenville, to one count Hobbs Act Robbery, a violation of 18 U.S.C. § 1951(a), one count Conspiracy to Commit Hobbs Act Robbery, a violation of 18 U.S.C. § 1951(a), and one count Brandishing a Firearm in Furtherance of a Crime of Violence, a violation of 18 U.S.C. § 924(c).
Senior United States District Judge Henry M. Herlong, Jr., of Greenville accepted the guilty pleas and will impose sentence after he has reviewed the presentence reports which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Mark Betancourt, Juan Betancourt, and Joseph Sansosti robbed Carolina Cashers on May 23, 2015. That morning, Joseph Sansosti and Juan Betancourt pushed their way into the business. Sansosti then grabbed an employee, placing her in a headlock, and pressed a gun to her head. Sansosti demanded money from the employee, which the robbers placed in a bag held by Juan Betancourt. The two men then ran out of the store to the getaway car, which was driven by Mark Betancourt.
Acting United States Attorney Drake stated the maximum penalty for Hobbs Act Robbery and Conspiracy to Commit Hobbs Act Robbery is imprisonment for 20 years and/or a fine of $250,000.00, and the maximum penalty for Brandishing a Firearm in Furtherance of a Crime of Violence is imprisonment for not less than seven (7) years consecutive to any other sentence, up to a maximum of Life.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greenville County Sheriff’s Office. Assistant United States Attorney Jamie Lea Schoen of the Greenville office is prosecuting the case.
Three Charged in Puerto Rico Based Identity Theft RingRead the Press Release
Luz Ramos-Correa, 39, of Landisville, PA, Marta Ruiz-Correa, 28, of Penuelas, Puerto Rico, and Julian Ruiz-Acosta, 58, of Penuelas, Puerto Rico, were charged by indictment, unsealed today, with conspiracy and fraudulent transfer of an identification document, and Luz Ramos-Correa was further charged with aggravated identity theft and fraudulent possession of five or more identification documents, announced United States Attorney Zane David Memeger. According to the indictment, the defendants – all family members – fraudulently obtained birth certificates and U.S. Social Security cards belonging to U.S. citizens residing in Puerto Rico, and then sold these identification documents for profit to buyers in Pennsylvania and Puerto Rico.
If convicted of all charges, Luz Ramos Correa faces a mandatory minimum term of two years in prison, a maximum statutory sentence of eighty-two years’ incarceration, a fine of up to $1,500,000, a special assessment of $700, and three years of supervised release; Marta Ruiz-Correa and Julian Ruiz-Acosta each face a maximum statutory sentence of twenty years’ incarceration, a fine of up to $500,000, a special assessment of $200, and three years of supervised release.
The case was investigated by Homeland Security Investigations, the Pennsylvania State Police, the United States Postal Inspection Service, the Philadelphia Police Department, and the Pennsylvania Department of Transportation. It is being prosecuted by Assistant United States Attorney James A. Petkun.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Preparation Business Owner, Return Preparer and Office Manager Plead Guilty to Conspiring to File False Claims for RefundRead the Press Release
Caused Loss of More Than $9 Million
A Pollock Pines, California, woman who owned a tax return preparation business and two of her employees, pleaded guilty to charges related to filing more than 250 false claims for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.
Teresa Marty, 56, the owner of Advanced Financial Services (AFS), a Placerville, California, tax return preparation business, pleaded guilty today to conspiring to file false claims for refund and conspiring to defraud the Internal Revenue Service (IRS). On Aug. 24, Pamela Harris, Marty’s office manager, and Rebecca Bandera-Marty, a California certified tax return preparer, also pleaded guilty to one count of conspiring to file false claims. Marty, Harris and Bandera-Marty were indicted in June 2013 along with two other co-defendant clients, Charles and Victoria Tingler. The Tinglers pleaded guilty to filing false claims in the spring of 2015 and will be sentenced in November.
“Income tax returns are not a vehicle to siphon public funds for personal benefit,” said Principal Deputy Assistant Attorney General Ciraolo. “Those individuals, like Teresa Marty, Pamela Harris and Rebecca Bandera-Marty, who promote and facilitate these types of refund fraud schemes should know that the department, along with its partners in law enforcement, are committed to investigating and prosecuting such abuses.”
Marty, Harris and Bandera-Marty admitted that they conspired to file false individual income tax returns claiming more than $60 million in false federal income tax refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive sizable tax refunds by filing tax returns with IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported an amount equal to the clients’ debts as income and the same amount as income tax withheld, resulting in significant income tax refunds to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty also admitted that she and the Tinglers, with the help of Harris, filed multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the defendants owed the IRS as a result of participating in the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens that were filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also engaged a commercial collection agency to collect one of the three false liens that Charles Tingler filed against an IRS revenue officer in the amount of $500,000.
“From her office in the Sierra Foothills, Marty traveled around the country to promote a preposterous theory that taxpayers could somehow use IRS forms to claim refunds based on their own private debts,” said Acting U.S. Attorney Talbert. “As Marty, Harris, Bandera-Marty and others have now admitted, this was just a criminal scheme to make false claims to loot the U.S. Treasury. I’m proud of the government employees who worked diligently to put an end to this even after criminal schemers retaliated against them personally.”
“The defendants used their knowledge to exploit vulnerabilities in the tax system,” said Special Agent in Charge Michael T. Batdorf for IRS-Criminal Investigation. “Marty and her co-defendants recruited clients for their tax fraud scheme by falsely representing that they could eliminate their debts and legally receive sizable tax refunds by submitting tax returns with IRS Forms 1099-OID. Taxpayers should not be taken in by false descriptions of the law or misrepresentations of the facts. As the old adage goes - if it sounds too good to be true, it probably is.”
“Tax preparers who file false returns with the IRS are not only violating the law and stealing from taxpayers, but violating the trust placed in them by their clients,” said Special Agent in Charge Rod Ammari for the Treasury Inspector General for Tax Administration. “When these same tax preparers then file fraudulent and illegal liens against IRS employees, with the intent to intimidate them from doing their jobs, their actions are doubly heinous.”
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing the false claims for refund prepared by Marty and AFS.
Marty is scheduled to be sentenced on Jan. 4, 2017. She faces a maximum sentence of 15 years in prison, a term of supervised release and monetary penalties. Bandera-Marty is scheduled to be sentenced on Nov. 16, and Harris is scheduled to be sentenced on Jan. 4, 2017. They each face a maximum sentence of 10 years in prison, a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Stratos Pleads Guilty to Multimillion Dollar FraudRead the Press Release
SACRAMENTO, Calif. — Troy David Stratos, 50, formerly of Los Angeles pleaded guilty today to 11 counts of wire and mail fraud, two counts of money laundering, and one count of obstruction of justice, Acting U.S. Attorney Phillip A. Talbert announced.
According to the factual basis read in court today, between August 2005 and September 2007, Stratos devised and executed a scheme to defraud the victim of money and property. He told her that he was wealthy and successful, and that, among other things, he had made substantial money from oil investments. Stratos promised that he would help manage the victim’s portion of the proceeds from her recent divorce, including real property in her name and cash assets. Stratos told her that she needed to create a trust allowing Stratos to have access and control over her assets and the trust.
According to court documents, Stratos falsely represented that he would invest the divorce proceeds overseas, including in Dubai and in the United Arab Emirates, where the proceeds would earn a high rate of return. Stratos also falsely represented that he would pay for her expenses from his own money because her money was purportedly invested overseas.
Stratos admitted today that he never invested any money overseas as he promised. Instead, he diverted substantial sums of money from the trust for his own personal use. He also used portions of the money to pay the woman=s expenses, misrepresenting to her that he was spending his own money to pay for her expenses.
With respect to two money laundering counts, on January 2, 2007, and on January 26, 2007, Stratos withdrew $25,000 from Granite TN Trust Bank of America account in Granite Bay, California. The money was proceeds from his scheme to defraud the victim, and Stratos knew that these were proceeds of the fraud.
Further, with respect to the obstruction of justice count, between February 2007 and April 2007, Stratos was informed of a grand jury subpoena that his bookkeeper had received requiring the production of various financial records relating to Stratos, including documents relating to Stratos’ spending the victim’s money in casinos in Las Vegas. Stratos instructed the bookkeeper to not provide some of the records. In April 2010, the FBI executed a search warrant for a storage locker maintained by Stratos and located the records covered by the grand jury subpoena that were withheld at the direction of Stratos.
Stratos was arrested on December 20, 2011, and has been in custody since that time. On May 19, 2015, a federal jury in Sacramento found Stratos guilty of four counts of wire fraud and two counts of money laundering, in a separate scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan are prosecuting the case.
Stratos is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on all counts of conviction — from today’s guilty plea and the jury trial — on November 17, 2016. The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud for each count. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property, and the maximum statutory penalty for obstruction of justice is 10 years in prison and a $250,000 fine. The actual sentence, 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.
Steelworkers Union Financial Secretary Charged with Embezzling Union FundsRead the Press Release
PITTSBURGH - An Ohio resident has been indicted by a federal grand jury in Pittsburgh on a charge of Embezzlement from a Labor Union, United States Attorney David J. Hickton announced today.
The one-count indictment named Marchelle Harvey, 57, of Palestine, Ohio as the sole defendant.
According to the indictment, from November 2013 through June 2014, Harvey, who held the position of Financial Secretary for the Steelworkers Local 67-T Labor Union located in Beaver County, Pennsylvania, stole in excess of $10,000 of union funds.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The United States Department of Labor, Office of Labor – Management Standards, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Albans man sentenced to 10 years in federal prison for gun crimesRead the Press Release
CHARLESTON, W.Va. – A St. Albans man was sentenced today to a total of 10 years in federal prison, followed by 5 years of supervised release, for two gun crimes, announced United States Attorney Carol Casto. Christopher Ayash, 47, previously pleaded guilty to possession of a firearm with an obliterated serial number and to possession of six firearms in furtherance of a federal drug trafficking crime. Ayash received five years on each charge, to be served consecutively, and was also ordered to pay a $25,000 fine. Additionally, as part of his plea agreement, Ayash agreed to forfeit $300,000 to the United States. He also agreed to demolish a strip club he owned in St. Albans and to transfer the property to Kanawha County.
Ayash admitted that he arranged for the illegal shipment of drugs, including oxycodone and coca leaves, a precursor used to manufacture cocaine, through the mail to West Virginia. On October 7, 2015, a federal search warrant was executed at Ayash’s St. Albans residence and law enforcement discovered a secret room hidden behind a fireplace. The secret room housed a laboratory set up by Ayash to manufacture cocaine and other controlled substances. Law enforcement seized over 60 firearms from the residence, including fully automatic weapons, silencers, and a handgun with an obliterated serial number. Ayash admitted that he possessed six of the firearms in furtherance of his drug trafficking crimes.
The investigation was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of several other law enforcement agencies. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. 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 illegal drugs in communities across the Southern District.
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South Charleston man pleads guilty to federal gun chargeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man caught with a loaded gun and drugs after a car chase pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Steven Eugene Adkins, 37, pleaded guilty to being a felon in possession of a firearm.
Adkins admitted that on January 14, 2016, he possessed a loaded Smith & Wesson Model 22A-1 pistol. Adkins was prohibited under federal law from possessing any firearm because of two previous convictions in Kanawha County Circuit Court for possession with intent to deliver marijuana. At the time Adkins possessed the handgun, Adkins additionally admitted that he ran a red light in St. Albans. In response, a St. Albans Police Department patrol officer attempted a traffic stop. Adkins further admitted that he did not attempt to stop, and during the course of the subsequent chase, he exceeded the speed limit, passed vehicles despite the double yellow line, and drove the wrong way on a one-way street. The car chase ended in Nitro and Adkins admitted that he exited the vehicle and was apprehended after a brief foot chase. Law enforcement recovered the gun, methamphetamine, and marijuana from Adkins. Officers also seized 40 knives and a machete from the vehicle.
Adkins faces up to 10 years in federal prison when he is sentenced on December 14, 2016.
The investigation was conducted by the St. Albans Police Department, the Metropolitan Drug Enforcement Network Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the West Virginia State Police and the South Charleston Police Department. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, 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 illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Sierra County Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Ruben David Martinez, III, 29, of Truth or Consequences, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Martinez was arrested in May 2016, and charged by criminal complaint with possession of methamphetamine and heroin with intent to distribute on May 16, 2016, in Sierra County, N.M. According to the criminal complaint, Martinez threw plastic bags containing more than 40 grams of methamphetamine and 9.22 grams of heroin from his vehicle as he fled from law enforcement officers who were attempting to execute a traffic stop on his vehicle for a traffic violation. After the officers apprehended Martinez, they executed a search warrant on his vehicle and residence and seized 69.8 grams of methamphetamine, pills, multiple cellular phones, cash and drug paraphernalia.
During yesterday’s change of plea hearing, Martinez pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Martinez admitted that on May 16, 2016, he possessed approximately 49 grams of methamphetamine when Sierra County Sheriff’s Office deputies initiated a traffic stop and later arrested him. Martinez further admitted that he intended to distribute the methamphetamine to other people.
At sentencing, Martinez faces a maximum penalty of 20 years in prison. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of Homeland Security Investigations, the New Mexico State Police and the Sierra County Sheriff’s Office. Assistant U.S. Attorney Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Sex Offender Sentenced to 33 Months for Failure to Register in GloversvilleRead the Press Release
ALBANY, NEW YORK – James Newland, age 31, was sentenced today to serve 33 months in prison and 5 years of post-imprisonment supervised release for failing to update his sex offender registration.
The announcement was made by United States Attorney Richard S. Hartunian and United States Marshal David McNulty.
Newland pled guilty on March 2, 2016, admitting to moving to Gloversville, New York, from California, without updating his sex offender registration. The Sex Offender Registration and Notification Act (“SORNA”) requires a convicted sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, North East Region; the United States Marshals New York/New Jersey Regional Fugitive Task Force; the Johnston Police Department; and the Gloversville Police Department. The case was prosecuted by Assistant United States Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Puerto Rico Man Sentenced to 126 Months in Prison for Drug Conspiracy ChargeRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Jose Luis Ponce-Pagan, 36, of Puerto Rico, to 126 months’ imprisonment and five years’ supervised release for conspiracy to possess cocaine with the intent to distribute, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Ponce-Pagan to pay a $100 special assessment and perform 300 hours of community service.
On March 29, 2016, Ponce-Pagan pleaded guilty to conspiracy to possess cocaine with the intent to distribute. According to the plea agreement filed with the court, between August 30, 2015, and September 3, 2015, Ponce-Pagan and at least one other person arranged to purchase approximately 100 kilograms of cocaine on St. Thomas, Virgin Islands, for distribution in Puerto Rico.
This case was investigated by the U.S. Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Placerville Tax Preparation Business Owner Pleads Guilty to Conspiring to File False Claims for RefundRead the Press Release
SACRAMENTO, Calif. - A Pollock Pines woman, who owned a tax return preparation business, and two of her employees pleaded guilty to charges related to filing more than 250 false claims for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.
Teresa Marty, 56, the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business, pleaded guilty today to conspiring to file false claims for refund and conspiring to defraud the Internal Revenue Service (IRS). On August 24, Pamela Harris, Marty’s office manager, and Rebecca Bandera-Marty, a California certified tax return preparer, pleaded guilty to one count of conspiring to file false claims. Marty, Harris and Bandera-Marty were indicted in June 2013 along with two other co-defendants, Charles and Victoria Tingler. The Tinglers, who were clients, pleaded guilty to filing false claims in the spring of 2015 and will be sentenced in November.
“Income tax returns are not a vehicle to siphon public funds for personal benefit,” said Principal Deputy Assistant Attorney General Ciraolo. “Those individuals, like Teresa Marty, Pamela Harris and Rebecca Bandera-Marty, who promote and facilitate these types of refund fraud schemes should know that the department, along with its partners in law enforcement, are committed to investigating and prosecuting such abuses.”
Marty, Harris and Bandera-Marty admitted that they conspired to file false individual income tax returns claiming more than $60 million in false federal income tax refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive sizable tax refunds by filing tax returns with IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported an amount equal to the clients’ debts as income and the same amount as income tax withheld, resulting in significant income tax refunds to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.
Marty also admitted that she and the Tinglers, with the help of Harris, filed multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the defendants owed the IRS as a result of participating in the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens that were filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also engaged a commercial collection agency to collect one of the three false liens that Charles Tingler filed against an IRS revenue officer for $500,000.
“From her office in the Sierra Foothills, Marty traveled around the country to promote a preposterous theory that taxpayers could somehow use IRS forms to claim refunds based on their own private debts,” said Acting U.S. Attorney Talbert. “As Marty, Harris, Bandera-Marty and others have now admitted, this was just a criminal scheme to make false claims to loot the U.S. Treasury. I’m proud of the government employees who worked diligently to put an end to this even after criminal schemers retaliated against them personally.”
“The defendants used their knowledge to exploit vulnerabilities in the tax system,” said Special Agent in Charge Michael T. Batdorf for IRS-Criminal Investigation. “Marty and her co-defendants recruited clients for their tax fraud scheme by falsely representing that they could eliminate their debts and legally receive sizable tax refunds by submitting tax returns with IRS Forms 1099-OID. Taxpayers should not be taken in by false descriptions of the law or misrepresentations of the facts. As the old adage goes - if it sounds too good to be true, it probably is.”
“Tax preparers who file false returns with the IRS are not only violating the law and stealing from taxpayers, but violating the trust placed in them by their clients,” said Special Agent in Charge Rod Ammari for the Treasury Inspector General for Tax Administration. “When these same tax preparers then file fraudulent and illegal liens against IRS employees, with the intent to intimidate them from doing their jobs, their actions are doubly heinous.”
Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing the false claims for refund prepared by Marty and AFS.
Marty is scheduled to be sentenced on January 4, 2017. She faces a maximum sentence of 15 years in prison, a term of supervised release and monetary penalties. Bandera-Marty is scheduled to be sentenced on November 16, 2016, and Harris is scheduled to be sentenced on January 4, 2017. They each face a maximum sentence of 10 years in prison, a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Talbert commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.
Pike County Woman Indicted for Heroin Distribution Resulting in DeathRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that yesterday a federal grand jury in Scranton indicted a Pike County woman charging her with drug distribution resulting in death.
According to United States Attorney Peter Smith, the Indictment alleges that between September 3, 2015 and September 4, 2015, Brittany Ann Banscher, age 21, of Hawley, Pennsylvania, knowingly and intentionally possessed with intent to distribute and distributed heroin, a Schedule I controlled substance, resulting in the death of another person. Banscher is also charged in a separate count with possession with intent to distribute heroin on or about September 21, 2015.
The charges stem from a joint investigation by the Drug Enforcement Administration (DEA), the Scranton Police Department, and the Pennsylvania State Police. Prosecution is assigned to United States Attorney Michelle Olshefski.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. In this case, the maximum penalty under the federal statute for drug distribution resulting in death is life imprisonment and a $1,000,000 fine. The maximum penalty for possession with intent to distribute a controlled substance is 20 years’ imprisonment and a $1,000,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Pennsylvania man pleads guilty to heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Keith Derwin Freeman, 43, of Bethlehem, Pennsylvania, pled guilty to heroin distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Freeman admitted to selling heroin in Berkeley County, West Virginia in September 2015. He faces up to twenty years in prison and a fine up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Owner of Homewood Telemarketing Company Convicted of Taking Illegal Kickbacks for Referring Patients to Home Health AgenciesRead the Press Release
CHICAGO — A federal jury has convicted the head of a Homewood telemarketing company of pocketing illegal kickbacks in exchange for referring patients to home health care agencies.
As the owner of Serenity Marketing Inc., which did business as Serenity Living, SUNDAE WILLIAMS used unsolicited phone calls to recruit patients, including Medicare beneficiaries, for home health care services. Williams then referred those patients to several Chicago-area nursing agencies in exchange for payments on a per-patient basis.
After a five-day trial in federal court in Chicago, the jury on Tuesday convicted Williams, 47, of South Holland, on one count of conspiracy to solicit and receive remuneration in return for the referral of Medicare patients, and six counts of soliciting and receiving remuneration in return for the referral of Medicare patients. Each count is punishable by up to five years in prison.
Williams is the latest defendant convicted in the federal investigation. The prior convictions include JAMES ADEMIJU, a nurse from Matteson who operated two suburban nursing agencies; Dr. ALAN NEWMAN, one of the doctors at Suburban Home Physicians, which did business as Doctor at Home; and DIANA JOCELYN GUMILA, a nurse and manager of Suburban Home Physicians.
The investigation is being carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team, a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
Evidence at Williams’ trial revealed that Serenity employees were trained to cold-call Medicare beneficiaries and convince them to accept home health services. If a Medicare beneficiary expressed interest, Serenity employees obtained the beneficiary’s personal information, including their Medicare number, and provided it to certain home health agencies that had agreed to pay Serenity for such referrals.
Ademiju pleaded guilty earlier this year to billing for unnecessary services and making illegal payments for patient referrals. He testified at Williams’ trial that some of his illegal payments were made to Serenity. Ademiju also admitted in his plea agreement that he sent some of the patients he had illegally obtained from Serenity to home-physician companies, including Suburban Home Physicians, based on his belief that physicians at those companies would order home health services even if the patients did not qualify for them. Ademiju is awaiting sentencing.
Dr. Newman pleaded guilty earlier this year to falsely certifying patients for nursing services even when he knew that patients did not qualify for such care. He admitted causing approximately $2.6 million in losses to Medicare. Newman is awaiting sentencing.
Gumila, who was convicted after a jury trial in April, directed employees to provide in-home services to patients she knew were not in need of it, and to certify patients for home-health services even when the patients did not qualify for it. Gumila directed her employees to bill the treatment at the most complicated levels, thus inflating the costs incurred by Medicare, even though the visits were typically routine and did not qualify for the elevated billing. Gumila was sentenced last month to six years in prison.
Williams’ conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Kristie Osswald, Special Agent-in-Charge of the Chicago Office of the Railroad Retirement Board Office of the Inspector General.
The government is represented in the Williams case by Assistant U.S. Attorneys Stephen Chahn Lee and Cornelius Vandenberg.
One Sentenced for Role in Analogue Distribution ConspiracyRead the Press Release
ABINGDON, VIRGINIA – One more member of a 22-member conspiracy that brought a controlled substance analogue into Southwest Virginia from as far away as China was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Ryan Richard Potter, 27, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 4.5 kilograms of alpha-PVP, a controlled substance analogue, was sentenced today to 66 months in prison.
“In many instances the abuse of synthetic substances is more addictive and more dangerous than that of illegal street drugs,” United States Attorney Fishwick said today. “We are grateful to the cooperative law enforcement effort that put an end to this conspiracy and slowed the flow of this substance into Southwest Virgnina.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, Potter, and other members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Numerous Texas “Mexikan” Mafia Members Arrested in Coastal Bend Round-upRead the Press Release
CORPUS CHRISTI, Texas – A total of 19 people are charged in a six-count indictment, some of whom are alleged members of the Texas “Mexikan” Mafia (TMM) and charged with conspiring to violate the Racketeer Influence Corrupt Organization (RICO) statute, announced U.S. Attorney Kenneth Magidson.
A federal grand jury in Corpus Christi returned the indictment Aug. 24, 2016. It was unsealed as each defendant was taken into custody. Those arrested today include Corpus Christi residents Rogelio Ramirez, 33, Pedro Gonzales, 41, Jose Mireles, 33, and Gilberto Garcia, 36; Jose Jesus Toledo, 41, and Abelardo Pena, 48, both of Victoria; Sinton residents Roman Jose Zapata II, 33, and Doroteo Gonzales III, 36; Gregory resident Juan Felipe Bazan, 45; Ruben Saenz, 37, Eusebio Castillo, 36, and Bruce Lee Cisneros, 40, of Port Lavaca, Taft and Robstown, respectively; Ingelside resident April Diane Petruska, 34; and Syliva Rodriguez Walton, 53, and Daisy Cruz Ortiz, 27, both of Aransas Pass. Brownsville resident Jorge Luis Gracia, 36, was also taken into custody today in Beaumont. David Joe Maseda Jr., 37, of Houston was arrested yesterday. David Gonzales, 35, of Aransas Pass, was already in custody on unrelated charges.
Authorities also conducted searches at a variety of these locations, including Bazan’s Gregory residence among others.
With the exception of Maseda and Gracia, who are expected to make initial appearances this afternoon in Houston and Beaumont, respectively, all are expected in Corpus Christi federal court at 2:00 p.m. before U.S. Magistrate Judge B. Janice Ellington.
The last defendant - Robert Anthony Trevino, 51, of Victoria - is also charged but not in custody. He is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact Crime Stoppers at 713-222-TIPS or the Houston office of the FBI at 713-693-5000. Crime Stoppers of Houston is offering up to $5000 for information that leads to an arrest.
All but Walton, Petruska, Ortiz, and Gonzales III are charged as being associated with the TMM, an alleged criminal enterprise, from Nov. 1, 2013, through May 30, 2014.
The indictment alleges the TMM was created in the Texas prison system in 1984. The TMM started as a group of inmates trying to become aware of their cultural heritage. As it grew, the TMM rapidly moved away from its innocent roots to become involved in extortion, narcotic trafficking and murder, both inside and outside of the Texas prison system, according to the indictment. Members of the TMM are referred to as “carnales,” or “merecidos.” The indictment details how TMM members are governed by a strict code of conduct that is enforceable by serious bodily injury or death. Every member must be willing to lose his life and take a life whenever called upon.
The indictment alleges the TMM has a constitution that discusses many different aspects of the organization. The constitution states that the TMM is a criminal organization that deals in drugs, assassination contracts, prostitution, robbery and firearms. The TMM constitution states that 10 percent of the profits from any member’s business or interest shall be contributed to the organization. This is referred to as “the dime.”
The primary source of income of the TMM allegedly comes from collection of “the dime,” collected from members, prospective members and sympathizers. TMM members and prospective members allegedly often earn their income by threatening individuals with harm if the individuals do not pay the TMM member for protection from other threats. The indictment alleges TMM members and prospective members earn their income by extorting others who traffic in illegal drugs. TMM members, prospective member, and sympathizers also earn their income by trafficking in illegal drugs, according to the charges. The illegal drugs are allegedly distributed by the enterprise, which includes heroin, methamphetamine and cocaine.
If convicted of the RICO conspiracy, these defendants face a up to 20 years in federal prison and a possible $250,000 fine.
The remaining counts allege specific drug and firearms charges. Maseda, Walton, Petruska and Ortiz are charged with conspiracy to possess with intent to distribute cocaine base (crack cocaine), for which they face a minimum of five and up to 40 years in prison and a maximum $5 million fine.
Maseda and Gracia are charged with conspiring to possess with intent to distribute cocaine, while Zapata and Gonzales III allegedly conspired to possess cocaine and methamphetamine with the intent to distribute. They all face a maximum of 20 years and a possible $1 million fine.
The final two counts charge Cisneros with possessing heroin and cocaine with intent to distribute, which also carries the same maximum of 20-year-prison term, and for being a felon in possession of a firearm for which he faces another 10 years imprisonment.
Multiple law enforcement agencies conducted the investigation and executed the arrests – FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; U.S. Marshals Service; Texas Department of Public Safety; Customs and Border Protection; Victoria County Sheriff’s Office; and police departments in Corpus Christi, Port of Corpus Christi, Victoria, Portland, Aransas Pass and Ingleside. Assistant U.S. Attorney Michael Hess is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
North Miami Check Casher Convicted at Trial for Cashing over $11 Million in Fraudulent Tax Refund ChecksRead the Press Release
A North Miami check casher was convicted by a federal jury for cashing over $11 million in fraudulent tax refund checks obtained from the filing of stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Junior Jean Baptiste, 36 of North Miami, Florida, was convicted on charges of conspiracy to commit money laundering, money laundering, possession of five or more false identification documents, theft of government money, and aggravated identity theft.
Sentencing is scheduled before U.S. District Judge Jose Martinez on October 31, 2016 at 1:30 p.m. Baptiste faces possible terms of imprisonment of up to twenty years each for the conspiracy to commit money laundering and money laundering counts, up to ten years each for the theft of government money counts, up to five years each for the false identification documents counts, and a consecutive sentence of two years each on the aggravated identity theft counts.
According to the evidence presented in court, from 2009 to 2011, the defendant operated a check cashing store called Surveillance Masters LLC in North Miami, Florida. During this period, trial evidence demonstrated that the defendant knowingly cashed over $11 million from over 2,000 fraudulent tax refund checks that had been issued in the names of dead people, disabled people, and other people who do not typically file tax returns. Furthermore, trial evidence showed that the defendant typically took a fee of half of the value of the checks and made false identification documents for his files. Trial evidence demonstrated that, in connection with the cashing of these fraudulent checks, the defendant possessed over 900 false driver’s licenses, work permits, and green cards.
Finally, the evidence at trial showed that the defendant used the fraudulently obtained funds for, among other things, a cargo ship, multiple vehicles, and rights to an album of a prominent hip-hop artist.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Michael B. Nadler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Carolina Man Pleads Guilty to Tax Evasion and Possession of an Unregistered FirearmRead the Press Release
A Kings Mountain, North Carolina, man, who set up straw companies to evade income taxes and used cash from his business to build an underground bunker, pleaded guilty today to tax evasion and possession of an unregistered firearm, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose for the Western District of North Carolina.
According to documents filed with the court, Reuben T. DeHaan ,44, owned a holistic medicine business, which he operated out of his residence in Kings Mountain under the names Health Care Ministries International Inc. and Get Well Stay Well. DeHaan admitted that, with the help of others, he set up straw companies and opened bank accounts in the name of the straw companies to hide his income and assets from the Internal Revenue Service (IRS). DeHaan also admitted to dealing extensively in cash to evade the payment of income tax. During the years 2008 through 2014, DeHaan earned more than $2.7 million in gross receipts from his holistic medicine business, but failed to file income tax returns for those years and evaded approximately $740,000 in income taxes due and owing.
In addition to the tax evasion charge, DeHaan also admitted to possessing a short barrel rifle and two silencers that were not registered to him in the National Firearms Registration and Transfer Record.
A sentencing date has not yet been scheduled. DeHaan faces a statutory maximum sentence of five years in prison for the tax evasion charge and ten years in prison for the unregistered firearm charge, as well as a term of supervised release, and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael Savage and Trial Attorney Mara Strier 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.
Muscatine Man Sentenced to Prison for Felon in Possession of Stolen Firearms ChargeRead the Press Release
DAVENPORT, IA – On August 29, 2016, Adam Randal Shouse, 31, of Muscatine, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 72 months in prison for felon in possession of a firearm and possession of a stolen firearm, announced United States Attorney Kevin E. VanderSchel. Shouse was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Shouse pleaded guilty to felon in possession of a firearm and possession of a stolen firearm on October 27, 2015. According to the plea agreement, on February 23, 2015, officers were notified of a burglary in Bennett, Cedar County, Iowa, where a safe containing approximately fifteen firearms was stolen. The safe was taken to a residence in Moscow, Iowa, where it was cut open and the guns were divided among the participants, including Shouse.
On March 3, 2015, officers conducted a search warrant at Shouse’s residence located in Muscatine, Iowa. Officers located five stolen firearms in the residence. Shouse has a felony conviction for Possession with Intent to Deliver in 2003.
This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Michigan man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Culver, 26, of Eastpointe, Michigan, was sentenced today to 60 months in prison for distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Culver previously admitted to the sale of heroin in November of 2015 in Monongalia County.
Assistant United States Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Miami Student Sentenced for Cyberstalking on Facebook and InstagramRead the Press Release
A Miami student was sentenced yesterday for cyberstalking on Facebook and Instagram.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Kassandra Cruz, 23, of Miami, Florida, was sentenced by U.S. District Judge Frederico A. Moreno to 22 months in prison, followed by three years of supervised release, a $100 special assessment, and $2,178.32 in restitution, stemming from her conviction on one count of cyberstalking, in violation of Title 18, United States Code, Section 2261(A)(2)(B).
According to court documents, beginning in June 2015, victim “S.B.” received a “friend” request from Cruz on her Instagram and Facebook accounts. In an effort to gain “S.B.’s” friendship, Cruz created a false persona on her Instagram account wherein she portrayed herself as a male who was an active duty U.S. Marine. Under that ruse, “S.B.” accepted the friend request.
From late June 2015 until September 2015, Cruz, posing as Giovanni, “liked” and commented on pictures “S.B.” posted on both her Instagram and Facebook accounts. However, when “S.B.” noticed that Cruz had begun “following” and “liking” all of her friends pages and posts, she became suspicious and “blocked” and “unfollowed” Cruz from her social media accounts.
As a result, Cruz threatened that “S.B.” would face repercussions at her job and with her family if she did not comply, and specifically threatened to expose “S.B.’s” past via social media. The threats to “S.B.” persisted from Cruz on social media and later via text messaging, and Cruz ultimately demanded on multiple occasions $100,000 in exchange for no further contact, adding that she “knew where “S.B.’s family lived and they should watch their backs because someone would be heading to…to deal with them.” In total, “S.B.” received over 900 unwanted calls and text messages since the beginning of 2016, and the extortionate and threatening messages continued until late April 2016. Ultimately, Cruz was arrested and taken into custody during a pre-arranged meeting in Miami.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced to 77 Months in Prison for Participating in A Conspiracy to Burglarize A Kentucky Cigarette WarehouseRead the Press Release
Ordered to pay $1,486,164.45 in restitution for theft of cigarettes from Leitchfield, Kentucky warehouse
Owensboro, KY – A Miami resident from Cuba, was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley Jr., to 77 months in prison and ordered to pay restitution of $1,486,164.45 - for conspiracy and theft charges stemming from the defendant’s participation in a warehouse burglary in Leitchfield, Kentucky, announced United States Attorney John E. Kuhn, Jr.
Amuary Villa, 41, admitted to his role in stealing nearly $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March 2011, and that he and others possessed the stolen cigarettes (which constitute an interstate and foreign shipment of property valued at over $1,000) with the intent to convert the property to their own use.
During the theft, Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system, and loaded the stolen goods into a stolen tractor trailer. Specifically, between March 18, 2011, to March 20, 2011, defendant Camilo Rodriguez-Hernandez allegedly rented three hotel rooms in Elizabethtown, Kentucky, where the co-conspirators, who traveled to Kentucky from Miami, Florida, resided during the burglary and theft. Between March 19, 2011, and March 20, 2011, Amuary Villa, Ivan Romero (a/k/a El Negro), Amed Villa (charged separately), and other co-conspirators unloaded a stolen tractor trailer and loaded it with cigarettes. Defendant Romero admitted to providing transportation for the stolen cigarettes and driving them to the New Jersey/New York area. Defendant Villa admitted to “casing” the warehouse location, cutting a hole in the warehouse roof, then entering the warehouse and disabling the alarm system.
Amuary Villa will serve the 77 month prison term consecutive to a 140 month sentence from the Southern District of Florida and the District of Connecticut, for his role in the theft of approximately $90 million in pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Connecticut.
Romero, also a legal permanent resident from Cuba who last resided in Miami, will finish serving a six-year state sentence from Florida, before being transferred to federal custody to serve 57 months. Ahmed Villa, the defendant’s brother, pleaded guilty in the District of Connecticut to charges stemming from the $90 million in pharmaceuticals stolen from the Eli Lilly Company warehouse and storage facility in Enfield, Conn., and several other warehouse thefts including the Coremark Cigarette Warehouse in Leitchfield. Co-defendant Camillo Rodriguez Hernandez has a trial pending in the Western District of Kentucky. Restitution will be paid to Coremark and the insurance company for Coremark.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and the investigation of the Kentucky theft is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the U.S. Drug Enforcement Administration (DEA), Leitchfield and Elizabethtown Police Departments, and New Jersey and Kentucky State Police Departments.
Mexican Nationals Plead Guilty to Federal Charges Arising Out of Methamphetamine Trafficking on Navajo ReservationRead the Press Release
ALBUQUERQUE – Mexican nationals, Miguel Rangel Arce, 36, and Rogelio Santiago Quiroa-Valdez, 25, pled guilty yesterday in federal court in Albuquerque, N.M., to methamphetamine trafficking charges. Their co-defendant, Luis Rangel Arce, 44, also a Mexican national, entered a guilty plea in the case last week.
The defendants were amongst the eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash and a vehicle during the operation.
Miguel Rangel Arce, Quiroa-Valdez and Luis Rangel Arce were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
During yesterday’s proceedings, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer. At sentencing, Miguel Rangel Arce faces a statutory minimum penalty of ten years and a maximum of life in prison.
Quiroa-Valdez pled guilty to distribution of methamphetamine and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer. At sentencing Quiroa-Valdez faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016. At sentencing, Luis Rangel Arce faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
The three defendants remain in custody pending sentencing hearings, which have yet to be scheduled. They will be deported after completing their prison sentences.
The other five defendants were charged with methamphetamine trafficking charges in four other indictments. One has entered a guilty plea and is awaiting sentencing. The other four defendants have entered not guilty pleas and are awaiting trial. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Meriden Man Admits to Engaging in Sexual Acts with Minors, Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. IRVIN, 64, of Meriden, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of production of child pornography.
According to court documents and statements made in court, on multiple occasions between approximately 2012 and August 2015, IRVIN engaged in sexual acts with two males who were under the age of 18. IRVIN installed and operated a video camera and a digital video recording device at his residence to record the sexual activity.
On September 8, 2015, law enforcement officers conducted a search of IRVIN’s residence and seized several computers, hard drives, electronic storage media and the digital video recording device.
IRVIN has been detained since his arrest on September 18, 2015.
Judge Underhill scheduled sentencing for November 23, 2016, at which time IRVIN faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
IRVIN also is charged with related state offenses.
This matter is being investigated by the Meriden Police Department, Homeland Security Investigations and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Maryland MS-13 Member Pleads Guilty to Federal Racketeering Conspiracy, Attempted Murder in Aid of Racketeering, and Discharging a Firearm During a Crime of ViolenceRead the Press Release
Greenbelt, Maryland –Francisco Zamora-Flores, age 25, of Silver Spring, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, attempted murder in aid of racketeering, and using, carrying, and discharging a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Douglas Holland of the Hyattsville Police Department.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement and court documents, from about 2014, Zamora-Flores was a member of the Normandie Clique of MS-13. MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.
Zamora-Flores admitted that on July 30, 2014, he and four other members of MS-13 and the Normandie Clique were advised that three rival gang members had harassed and tried to steal the bike of a person who was a friend of MS-13. One of the co-conspirators drove Zamora-Flores and the other MS-13 members to the area of 30th Avenue in Hyattsville, where they saw three individuals walking north on the street. Zamora-Flores admitted that he and another MS-13 member shot two of the individuals. One victim was shot seven times, with wounds to his upper torso, right arm, and face. The other victim had a gunshot wound to his right side.
Eleven .380 caliber shell casings fired from two different handguns were collected at the scene of the shooting. A firearms examiner determined that five of the shell casings were fired from the same gun used at other crime scenes including: murders that occurred on November 11, 2012 and February 28, 2013, in the Hyattsville area; an attempted murder that occurred on that on March 28, 2014, in Laurel, Maryland; and a murder that occurred on November 30, 2013 in Frederick, Maryland. The other six shell casings were fired from another .380 caliber firearm that was recovered in Montgomery County, Maryland, on October 5, 2014.
Zamora-Flores faces a maximum sentence of life in prison for the racketeering conspiracy; a maximum of 10 years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison, consecutive to any other sentence imposed, and up to life in prison for discharging a firearm during a crime of violence. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 9, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, Hyattsville Police Department, and Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, and HSI Baltimore’s Operation Community Shield Task Force for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.
Man Involved in Shooting Death of His Father Sentenced to PrisonRead the Press Release
An Iowa man who illegally possessed firearms was sentenced today to more than three years in federal prison.
Dale Edward White, 25, from Nashua, Iowa, received the prison term after a April 27, 2016, guilty plea to possession of a firearm and ammunition as a prohibited person. White was prohibited from possessing firearms and ammunition because of his illegal drug use.
Evidence during the proceedings showed that on January 2, 2016, police responded to White’s residence after receiving a 911 call regarding a shooting. Prior to the call, White and his father were handling a .22 caliber rifle in the living room of the residence they shared. The firearm was loaded with .22 caliber ammunition. During the handling of the firearm, the firearm accidently discharged, striking White’s father who eventually passed away as a result of this injury.
During the investigation, police seized 49 firearms from White’s residence. These firearms included handguns, shotguns, and rifles. Police also seized evidence consistent with drug use. At the time he possessed these firearms, White was a user of methamphetamine and marijuana.
White was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. White was sentenced to 47 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Iowa Division of Criminal Investigation, the Nashua Police Department, the Chickasaw County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-2013.
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Louisville Felon Convicted at Trial for His Role in A String of Armed Robberies in Metro LouisvilleRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the conviction yesterday, of a violent felon for his role in a string of armed robberies in Metro Louisville. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by the U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“This conviction will ensure that Jescell Whittle, a violent offender, who threatened businesses and customers with deadly force, will be off our streets and behind bars for a long time,” Stated U.S. Attorney John Kuhn. “Project Recoil, our law enforcement partnership, is working to identify and successfully prosecute the most dangerous offenders in our community and this conviction is an example of how well our partnership is working.”
Jescell Whittle was convicted of the obstruction of interstate commerce through robbery of two businesses, and using a firearm in connection with the two robberies following a six-day trial before Chief Judge Joseph H. McKinley, Jr. Sentencing is scheduled for December 6, 2016, in Louisville.
This successful prosecution has resulted in the sentencing of four co-defendants, to lengthy prison sentences, for their roles in the armed robberies of two Cricket Wirelesses and three convenience stores in Metro Louisville.
Co-defendants James Gore, Jr. was sentenced to serve 72 months in prison followed by a three year period of supervised release, Tony Trumbo, Jr. was sentenced to serve a combined 255 months in prison followed by a three year period of supervised release for their roles in the armed robberies of three businesses located in Jefferson County, Kentucky. Both were sentenced on July 9, 2015.
Gore previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery of two businesses. Trumbo previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery, attempted robbery of three businesses, and aiding and abetting the discharge of a firearm during a robbery.
According to the plea agreement, Gore admitted to robbing a Thorntons, with several other individuals, located at 4516 Poplar Level Road on October 30, 2012, and to robbing a Speedway, with several other individuals, located on 3030 Taylor Boulevard on October 31, 2012. Surveillance video taken from the Thorntons robbery shows Gore brandishing two firearms during the robbery.
In a separate plea agreement, defendant Trumbo admitted to attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, along with other individuals, on October 23, 2012. Surveillance video taken from the store shows Trumbo along with an accomplice who was brandishing a firearm, attempting to rob the store. Trumbo also admitted to being one of several people to rob the Thorntons located at 4516 Poplar Level Road, on October 30, 2012. Trumbo further admitted to being one of several people to rob the Speedway located at 3030 Taylor Boulevard on October 31, 2012. During the course of that robbery, Whittle shot a Speedway customer in the back causing serious bodily injury.
Co-defendant Dahntel Newsome pleaded guilty to multiple charges on September 9, 2015, and was sentenced to 243 months in prison. Newsome admitted to being the getaway driver during the robbery by his co-defendants of the Crickett Wireless store on Cane Run Road. He further admitted to being the getaway driver during the robbery of the Cricket Wireless Store on West Broadway in Louisville, and admitted to using a handgun and threatening to shoot the clerk in the foot during the robbery of the JC Cigarette Outlet located on Crums Lane and driving the getaway vehicle.
This case is being prosecuted by Assistant United States Attorneys A. Spencer McKiness and Rob Bonar, and was investigated by the Louisville Metro Police Department.
Lewis County Couple Plead Guilty to Social Security Fraud ChargesRead the Press Release
St. Louis, MO – Michael Allen Clow, Maywood, MO, pled guilty to multiple charges involving his concealment of his employment while collecting disability payments. From 2001 through 2012, Clow received approximately $273,634 in Social Security Administration (SSA) disability insurance benefits as a result of this illegal scheme.
According to court documents, in 1999, Michael Allen Clow submitted an application for disability insurance benefits with the Social Security Administration (SSA) stating that he was unable to work due to chronic low back pain. In his application he agreed to notify the SSA if his medical condition improved so that he could work or if he went to work as an employee or a self-employed person. He began receiving benefits that year. During 2001 Clow began working with his father building homes. In 2002, he and his wife, Laura Clow, went into business together and started a construction business called C & M Construction. From 2002 to 2012 Clow worked for C & M Construction providing manual labor. During this time he filed reports to SSA claiming he was still unable to work.
While Michael Clow received payments from SSA, his wife, Laura Clow, assisted in the fraud by placing the business in her name, and falsely claimed that he was disabled and unable to bend over, do house and yard work and general daily activities.
Michael Clow pled guilty to one count of conspiracy to commit theft of government property, one count of concealment and two counts of making false statements to the Social Security Administration. He appeared before United States District Judge Catherine D. Perry. Sentencing has been set for December 9, 2016.
Laura Clow pled guilty to one count of conspiracy to commit theft of government property before United States Magistrate Judge John Bodenhausen. Her sentencing has also been set for December 9th.
The conspiracy charge carries a maximum penalty of one year in prison and/or fines up to $100,000. Each of the other charges carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.
Leader of Heroin Conspiracy Sentenced to over 12 Years in PrisonRead the Press Release
PORTLAND, Ore. – On Tuesday, August 30, 2016, U.S. District Judge Robert E. Jones sentenced Christopher Guillen-Robles to 151 months in prison followed by five years of supervised release, and entered a money judgment of $150,000 against the defendant. The sentencing followed the defendant’s earlier guilty pleas to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to commit money laundering.
Agents of the U.S. Drug Enforcement Administration (DEA) and other partner agencies arrested Guillen-Robles and over 20 co-defendants in February 2015 after an investigation which began in mid-2014. Through a complex investigation, involving a lengthy set of wiretaps, agents determined that Guillen-Robles led a drug trafficking group that was importing black tar heroin from the state of Nayarit in Mexico to the Portland area and then distributing it to other cells operating in Oregon. The group was also involved in significant money laundering through bulk cash smuggling, wire transfers, and bank deposits, with the cash proceeds of heroin distribution eventually going to Mexico. The investigation involved several large seizures of heroin and cash.
U.S. Attorney Billy J. Williams said, “This case demonstrates the sophistication and means by which Nayarit-based enterprises have flooded the Portland area with black tar heroin and the immense monetary profits involved in their illegal drug activity. It comes at a time when Oregon and the rest of the United States are experiencing an epidemic of opiate addiction, abuse, and overdose deaths. The sentence recognizes the seriousness of this activity and the importance of the investigation and prosecution.”
The investigation was led by DEA Portland with significant contributions made by the drug teams of the Portland Police Bureau Drugs and Vice Division, Clackamas County Interagency Task Force, Westside Interagency Narcotics Team, and U.S. Department of Homeland Security.
The case was prosecuted by Assistant U.S. Attorneys Thomas H. Edmonds and Steven T. Mygrant.
Kalamazoo Man, Kevonte McNeely, Sentenced to Five Years in Federal Prison for Possessing A FirearmRead the Press Release
McNeely had one of the 21 firearms stolen from Outpost Guns, in Sturgis, Michigan, on November 12, 2015.
GRAND RAPIDS, MICHIGAN — Kevonte Derome McNeely, age 24, of Kalamazoo, Michigan, was sentenced to five years in federal prison following his conviction for unlawful possession of a firearm as a felon, U.S. Attorney Patrick A. Miles, Jr., announced. In addition to the 60-month prison term, U.S. District Court Chief Judge Robert J. Jonker imposed a fine of $1,200 and a three-year term of supervised release, which will begin when McNeely is released from prison.
McNeely pled guilty on April 19, 2016, to knowingly possessing a firearm as a felon on November 16, 2015. The firearm McNeely had in his possession was an assault rifle, similar to an AK-47, which was stolen from Outpost Guns, in Sturgis, Michigan, on November 12, 2015. In total, 21 firearms were stolen that day from the store. A joint investigation involving the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kalamazoo Department of Public Safety, and the Sturgis Police Department revealed that, within a few days of the theft, the stolen firearms were transported from Sturgis to Kalamazoo and sold to multiple buyers. Five of the 21 stolen firearms have been recovered by law enforcement. The investigation is ongoing with respect to other subjects involved in trafficking or possessing the stolen firearms.
Kevonte McNeely is the first to be sentenced of six defendants who have been charged federally, to date, in connection with the firearms stolen from Outpost Guns. Jorel Gefferard, of Sturgis, was indicted in a separate case that charges him with the theft of the firearms, unlawful possession of one or more firearms as a felon, and possessing, concealing, and storing the stolen firearms following the Outpost Guns theft. Kevonte McNeely’s brother, Keondre McNeely, also of Kalamazoo, was indicted in the same case as Gefferard, along with a third individual, Roscoe Manns, of Sturgis, for receiving, possessing, concealing, and storing the stolen firearms following the theft. Keondre McNeely is considered a fugitive and remains at large; the District Court issued a warrant for his arrest. Two other Kalamazoo men, Ronald Eugene Dafney, and Kenneth Parnell Williams, were indicted in separate cases for unlawfully possessing as felons one or more of the firearms that were among the 21 stolen from Outpost Guns. All of these other cases remain pending. The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
"This case demonstrates how quickly a significant number of firearms can be stolen, moved, and sold, often landing in the hands of people who cannot legally purchase firearms because of prior felony convictions, thereby placing members of our communities at risk," said U.S. Attorney Patrick Miles. The U.S. Attorney’s Office works closely with the ATF to investigate, identify, and prosecute individuals involved in trafficking stolen firearms.
"Thefts from Federal Firearm Licensees will always be one of our highest priorities," said ATF Special Agent in Charge Robin Shoemaker. "Firearms in the hands of those who should not have them presents a public safety issue, and threatens the safety of our communities. ATF will continue to work with our partners to aggressively follow the gun to recover those firearms and put those individuals behind bars."
Assistant U.S. Attorney Kate Zell prosecuted the case.
END
KC Man Indicted for Assaulting Mail Carrier with a FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for assaulting a mail carrier with a firearm.
Timothy LaBlance, 52, of Kansas City, was charged in an indictment returned today by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that LaBlance used a firearm to assault a mail carrier with the U.S. Postal Service on Oct. 10, 2015, while the mail carrier was engaged in the performance of his duties.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the U.S. Postal Inspectors Service.
Justice Department Sues to Block Deere’s Acquisition of Precision PlantingRead the Press Release
Acquisition Would Eliminate Deere’s Only Effective Competitor in High-Speed Precision Planting Systems Market
The Department of Justice filed a civil antitrust lawsuit today seeking to block Deere & Company’s proposed acquisition of Precision Planting LLC from Monsanto Company in order to preserve competition in the market for high-speed precision planting systems in the United States.
The Antitrust Division’s lawsuit alleges that the transaction would combine the only two significant U.S. providers of high-speed precision planting systems – technology that is designed to allow farmers to plant crops accurately at higher speeds. The acquisition would deny farmers throughout the country the benefits of competition that has spurred innovation, improved quality and lowered prices. The department filed its lawsuit in the U.S. District Court for the Northern District of Illinois.
“High-speed precision planting technology holds out the promise of improved yields for American farmers by enabling them to plant crops more accurately at higher speeds,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Precision Planting has been a key innovator in high-speed precision planting and Deere’s only significant competitor in developing and selling these technologies. If this deal were allowed to proceed, Deere would dominate the market for high-speed precision planting systems and be able to raise prices and slow innovation at the expense of American farmers who rely on these systems.”
High-speed precision planting is an innovative technology that enables farmers to plant corn, soybeans and other row crops at up to twice the speed of a conventional planter without sacrificing accuracy. Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields. As a result, Deere and Precision Planting view high-speed precision planting as “revolutionary technology” that represents a “True Gamechanger for Agriculture” and expect it to become the industry standard in the coming years.
According to the department’s complaint, Deere and Precision Planting are the only two effective competitors in high-speed precision planting, conservatively accounting for at least 86 percent of the market. Deere and Precision Planting both introduced their respective high-speed planting systems in 2014, after years of research and development. The complaint details how the intense head-to-head competition between Deere and Precision Planting since that time has directly benefitted farmers through aggressive discounts and promotions, lower prices and innovative product offerings. The complaint alleges that Deere’s proposed acquisition of the company it has described as its “number one competitor” would allow it to control nearly every method through which American farmers can acquire effective high-speed precision planting systems and provide it with the ability to set prices, output, quality and product features without the constraints of market competition.
Deere & Company, a Delaware corporation headquartered in Moline, Illinois, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system. In 2015, Deere’s U.S. sales for planter-related equipment were approximately $900 million.
Precision Planting LLC is a Delaware limited liability company headquartered in Tremont, Illinois. It is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system. In 2015, Precision Planting’s U.S. sales for planter-related equipment were approximately $100 million.
Monsanto Company is a Delaware corporation headquartered in St. Louis, Missouri. Monsanto is a leading global provider of agricultural products and is the ultimate parent company of Precision Planting LLC.
Deere-Monsanto Complaint
Justice Department Files Sexual Harassment Lawsuit Against Two St. Louis LandlordsRead the Press Release
The Justice Department filed a lawsuit today against two St. Louis landlords, Hezekiah and Jameseva Webb, alleging that they violated the Fair Housing Act by subjecting female tenants in their rental properties to sexual harassment and retaliation.
The lawsuit, which arose from a U.S. Department of Housing and Urban Development (HUD) complaint, was filed in the U.S. District Court for the Eastern District of Missouri. It alleges that Hezekiah Webb, who served as property manager for the Webbs’ rental properties, sexually harassed female tenants at their properties. The complaint alleges that such harassment included conditioning housing or housing benefits on female tenants’ agreement to engage in sexual acts; coercing female tenants to engage in unwelcome sexual acts; subjecting female tenants to unwanted sexual touching and other unwanted sexual acts; making unwelcome sexual comments and advances to female tenants and taking adverse actions against female residents when they refused the sexual advances.
“No woman should ever suffer from threats, violence or harassment in her home,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department works vigorously to enforce the Fair Housing Act by vindicating the civil rights of tenants so that all people can live in their homes and feel safe, protected and free.”
“Unwanted sexual advances or harassment make it impossible for a woman to feel safe in her home,” said Gustavo F. Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Department of Justice to protect women from this type of unlawful treatment.”
The suit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination at one of the Webbs’ properties, or elsewhere, can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Webb Complaint