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14 October 2016
Former Coach USA Inc. Executive Pleads Guilty to Attempting to Obstruct JusticeRead the Press Release
A former executive of Coach USA Inc. was criminally charged with obstructing justice and pleaded guilty today for concealing and attempting to destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of the litigation, the Department of Justice announced.
Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc., admitted to directing his subordinates to conceal and destroy documentary materials relevant to the investigation and providing false and misleading statements to Coach’s investigators, and the Antitrust Division, according to court documents filed in this case in the U.S. District Court for the Southern District of New York. Additionally, according to court documents, Groen admitted to denying the existence of backup practices and procedures during a deposition taken as part of the litigation.
“Simply put, executives who obstruct Antitrust Division investigations will be vigorously prosecuted,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “It is critical that the division has access to all relevant information to evaluate the potential harm to consumers of the conduct we investigate, and Groen’s actions in this case denied the division that access.”
“With today’s guilty plea, Mr. Groen took responsibility for concealing and destroying documents in a civil antitrust investigation and then lying about it,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office. “The FBI continues to work together with our partners to protect the integrity of our judicial system and ensure that those who make false and misleading statements under oath are held accountable criminally.”
The civil litigation, which was filed in the United States District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach USA Inc.’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. On November 17, 2015, the district court entered a Final Judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division's lawsuit.
Groen Information
This investigation into obstruction of justice is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.Federal jury finds Lafayette man guilty of possessing a firearm after felony convictionRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a federal jury found a Lafayette man guilty Thursday of possessing a handgun after being convicted of a felony.
Damion Hamilton, 32, of Lafayette, was found guilty of one count of possession of a firearm by a convicted felon. United States District Judge Donald E. Walter presided over the trial, which started Tuesday and ended Thursday with the jury returning the guilty verdict after deliberating for approximately three hours. Evidence admitted at trial revealed that a traffic stop was conducted on a vehicle Hamilton was driving on January 19, 2016. A search of the vehicle was conducted, and a gun safe was found on the vehicle’s back seat. The safe was later opened, and a FNS-40 .40 caliber pistol and ammunition were found. In addition to DNA evidence, the pistol’s loaded magazine also had Hamilton’s fingerprints on it.
Hamilton faces up to 10 years in prison, three years of supervised release, forfeiture of the weapon seized and a $250,000 fine. Sentencing will be set at a later date.
“Those prohibited from carrying firearms because of a prior felony will be prosecuted to the fullest extent of the law,” Finley stated. “In this case, it took the work of federal and local law enforcement to bring this defendant to justice. These collaborations further our work to keep firearms out of the hands of criminals and protect our community.”
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and Lafayette Police Department investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and Kelly P. Uebinger are prosecuting the case.
Fairfield Doctor Pleads Guilty to Illegally Prescribing OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL BELLOFIORE, M.D., 56, of Trumbull, pleaded guilty yesterday in Hartford federal court to one count of issuing unlawful prescriptions for oxycodone.
“Medical practitioners play a critical role in battling the epidemic of opioid abuse that we are experiencing,” said U.S. Attorney Daly. “The strict rules associated with prescribing controlled substances are in place for a reason: to help ensure that these highly-addictive narcotics aren’t abused or illegally diverted. Those who knowingly prescribe opiates in violation of federal law will be prosecuted.”
According to court documents and statements made in court, BELLOFIORE is a physician with an office in Fairfield. Two of BELLOFIORE’s longtime patients were a married couple who lived in Connecticut until approximately 2011, when they relocated to Florida.
BELLOFIORE knew that, prior to moving to Florida, the couple had unlawfully obtained forged prescriptions for opioid medications from BELLOFIORE’s former medical assistant and, as a result, he should have been aware of the possibility that the couple was abusing or diverting their medications.
After moving to Florida, the couple traveled to Connecticut approximately twice per year, during which visits they scheduled medical appointments with BELLOFIORE. At the conclusion of each appointment, BELLOFIORE provided the couple with approximately six months of predated prescriptions, including prescriptions for Oxycodone, to last until their next appointment.
At times, the couple was unable to travel to Connecticut to see BELLOFIORE and obtain their prescriptions in person, in which case BELLOFIORE left the predated prescriptions for a friend or relative of the couple to pick up from BELLOFIORE’s office. It was BELLOFIORE’s understanding that the friend or relative would fill the prescriptions each month at a pharmacy in Connecticut and mail the medications to the couple in Florida.
In approximately February 2016, BELLOFIORE provided a stack of prescriptions to a friend of the married couple. The prescriptions, which were improperly dated to make it appear that they were issued at monthly intervals after February 2016, authorized the couple to receive thousands of pills of oxycodone and Percocet, a medication containing oxycodone. BELLOFIORE also failed to include on the prescriptions the couple’s address in Florida, which might have alerted a pharmacist filling the prescriptions in Connecticut to the possibility that the medications were being abused or diverted.
The couple subsequently diverted a significant amount of their medications for profit by arranging through a middleman for street-level resale of the pills in and around Waterbury.
The Controlled Substances Act prohibits physicians from dispensing any Schedule II controlled substance, including oxycodone, without a valid written prescription. The prescription must be “dated as of, and signed on, the day when issued” and “bear the full name and address of the patient.” A practitioner also may not issue multiple prescriptions at any single time authorizing a patient to receive more than a 90-day supply of a Schedule II controlled substance.
BELLOFIORE is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on January 11, 2016, at which time he faces a maximum term of imprisonment of one year and a fine of up to $100,000.
BELLOFIORE was released pending sentencing. As a condition of his release, he is prohibited from writing prescriptions for controlled substances.
This investigation is being conducted by the DEA’s New Haven Tactical Diversion Squad, which includes officers from the Bristol, Greenwich, Hamden, Milford, New Haven, Shelton, Vernon and Wilton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Eleven Defendants Charged with Bank Fraud for Maxing Out Fraudulently Obtained Credit CardsRead the Press Release
CHICAGO — Eleven people fraudulently obtained multiple credit cards and quickly maxed out the credit limits, with no intention of ever paying back the balance, according to an indictment unsealed in federal court in Chicago.
The defendants applied for the credit cards online, using false employment and income information to secure approval and bolster the credit limits, according to the indictment. Upon receipt of the cards, the defendants purchased goods and services, and quickly reached the maximum credit limits to obtain as much money as possible from the financial institutions who issued the cards, the indictment states. Some of the defendants later filed for bankruptcy in order to discharge the debts they had charged to the credit cards. The scam began in April 2010 and continued until at least October 2015, according to the indictment.
The indictment states that several of the defendants also created phony corporations and linked mobile payment accounts to them. Fictitious purchases were then made through the bogus corporations, creating charges that were reimbursed by the credit card issuers, the indictment states.
Charged with one count of bank fraud are GABRIEL CWYNAR, 37, of Chicago; IZABELA KAPUSCIAK, also known as “Izabela Cwynar,” 39, of Chicago; JAROSLAW WYSOCKI, 48, of Schaumburg; BARTOSZ POZNIAK, 42, of Mount Prospect; JOLANTA WYSOCKA, 50, of Schaumburg; MONIKA SZCZUREK, 36, of Lombard; MARCIN CYCHOWSKI; 41, of Addison; DANIEL NOGA, also known as “Daniel Terlecki,” 41, or Des Plaines; FRANCISZEK BYSTRON, 37, of Park Ridge; ARTHUR RADOLINSKI, 32, of Lisle; and ELZBIETA BUCZEK, 37, of Bensenville.
The eleven-count indictment was returned Sept. 29, 2016, and ordered unsealed yesterday. It seeks forfeiture of at least $1.3 million.
The defendants pleaded not guilty during arraignments yesterday before U.S. Magistrate Judge Young B. Kim. A status hearing is scheduled for Dec. 1, 2016, before U.S. District Judge James B. Zagel.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of bank fraud is punishable by up to 30 years in prison and a $1 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Timothy J. Chapman and Kavitha Babu.
IndictmentEast St. Louis Man Sentenced for Heroin OffensesRead the Press Release
On Friday, October 14, 2016, Urechan D. Brown, age 39, of East St. Louis, IL., received a sentence of 60 months’ imprisonment (5 years) in federal prison for Conspiracy to Distribute Heroin in Excess of 100 grams (just under 4 oz.). Brown was also sentenced to concurrent 60 month sentences for Distribution of Heroin, and Possession with Intent to Distribute Heroin. When released from prison, Brown will have to serve a term of 4 years on supervised release, as well.
Brown pled guilty to the three federal charges on June 3, 2016. At his change of plea hearing, Brown admitted that he and co-defendant Kelvin B. Hughes had distributed over 100 grams of heroin in East St. Louis between June 2014 and August 2015. On September 8, 2016, Brown’s nephew and co-defendant Kelvin Hughes was also sentenced to 60 months’ imprisonment.
Brown has been continuously confined in federal custody since his arrest in August 2015.
The investigation which resulted in Brown’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA); the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois (MEGSI); and by the Clinton County, IL Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
District Man Pleads Guilty to Charges in Shooting and Assault in Downtown WashingtonRead the Press Release
WASHINGTON – Ryan Matthews, 28, of Washington, D.C., pled guilty today to charges stemming from an incident in which he shot one person and assaulted two others last month in downtown Washington, U.S. Attorney Channing D. Phillips announced.
Matthews pled guilty in the Superior Court of the District of Columbia to one count of assault with intent to kill, one count of possession of a firearm during a crime of violence, and two counts of assault. The Honorable Michael Ryan scheduled sentencing for Dec. 16, 2016.
According to the government’s evidence, on Sept. 10, 2016, at about 3:15 a.m., Matthews approached a complete stranger in the 1300 block of Connecticut Avenue NW and punched him in the abdomen; the victim fell to the ground. Two of the victim’s friends, who were standing nearby, confronted Matthews and asked why he had punched their friend. At this point, Matthews said words to the effect of, “Do you want a piece, too?” and swung at one of the men with his fist, striking him in the neck. A man who was nearby approached Matthews to ask about what happened and Matthews declared words to the effect of, “I guess you want to fight, too.”
Matthews then beckoned the man to approach him, and the man told Matthews to come to him instead. At this point, Matthews drew a semi-automatic pistol, walked toward the man, and shot him once at close range in the right side of the chest. Other individuals, who were nearby at the time of the shooting, pursued Matthews and flagged down police officers. Matthews, meanwhile, discarded his shirt as he ran away and threw his gun into a dumpster in an alley off 18th Street NW. Police apprehended him and recovered the weapon. The shooting victim was taken to a hospital and is continuing to recover from his injuries.
In announcing the plea, U.S. Attorney Phillips commended the work of those who responded to the crime and investigated the case from the Metropolitan Police Department’s Second District. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Diana Lim and Assistant U.S. Attorney Michael J. Romano, who investigated and prosecuted the matter.
Disbarred Attorney Indicted in Mortgage Modification SchemeRead the Press Release
SANTA ANA, California – A disbarred California attorney was arrested this morning on federal charges of running a mortgage modification scheme that defrauded more than 75 distressed homeowners in Orange County by inducing them to pay more than $1.4 million for services he never provided.
Moses S. Hall, 60, a resident of Blackwood, New Jersey, who formerly had a law practice in Fullerton, was arrested without incident this morning at his residence after being indicted this week on fraud and tax offenses.
According to the 16-count indictment returned Wednesday by a federal grand jury, Hall operated his mortgage modification scheme from 2008 until 2012 through his law offices, as well as businesses called “Salva Casas” and “Loan Modifications of America.” The indictment alleges that Hall told distressed homeowners to stop making their mortgage payments, and instead direct their monthly mortgage payments to him, purportedly so he could use that money to negotiate with the banks. Instead, as detailed in the indictment, Hall used the victims’ money for himself.
The indictment alleges that Hall concealed from victims that he was using their money to pay for personal expenses and that he was a previously convicted felon who had served years in state prison in New Jersey prior to being admitted as an attorney in California.
Over the course of the fraudulent scheme, more than 75 victims were cheated out of more than $1 million, and some subsequently lost their homes. One married couple entrusted Hall with $400,000 to help them modify their mortgages. According to the indictment, Hall spent that $400,000 on personal expenses in only six months. That couple subsequently lost their home to foreclosure.
As further alleged in the indictment, Hall withdrew more than $1 million in cash from the bank accounts into which the victims’ payments had been deposited. Hall allegedly wrote checks to himself and his daughter, and used $25,000 cash to purchase a Mercedes Benz.
“This defendant allegedly used his position as a licensed attorney to persuade victims that he could help them with their financial problems,” said United States Attorney Eileen M. Decker. “Instead of working for his clients, the defendant simply pocketed their money to fund an extravagant lifestyle. He has lost his license to practice law, and now he faces a significant prison term for the alleged crimes.”
Hall is also charged with interfering with the administration of the tax laws. Hall allegedly failed to file tax returns for the years 2008 through 2012, thereby failing to report more than $1 million in income. Hall was further charged with failing to report more than $400,000 in income for 2009 by failing to file a federal tax return for that year. Moreover, the indictment alleges that when Hall was interviewed in December 2015, he lied to IRS Special Agents about his use of that money.
“As set forth in today’s indictment, Mr. Hall allegedly preyed on struggling and trusting homeowners, literally stealing the American Dream out from under them,” said Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “IRS CI, along with our federal law enforcement partners, remains committed to investigating and prosecuting those who commit mortgage fraud and line their pockets with profits from these schemes.”
“Schemes like this have heartbreaking consequences for the victims and we need to make it clear in no uncertain terms that this kind of criminal activity will not be tolerated,” said David Prince, acting special agent in charge for HSI Los Angeles. “HSI will continue to work closely with its federal, state, and local law enforcement partners to aggressively target those who, motivated by greed, engage in activities that harm consumers and undermine the integrity of our financial system.”
According to the California State Bar, Hall was disbarred in 2012 for “misconduct in three loan modification matters.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
Hall is expected to make his initial court appearance this afternoon in United States District Court for the District of New Jersey.
If convicted of the 16 charges in the Indictment – one count of mail fraud, 13 counts of wire fraud, and the two tax charges – Hall would face a statutory maximum penalty of 284 years in federal prison.
This investigation was conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Secret Service. The State Bar of California, Office of Chief Trial Counsel, provided assistance during the investigation.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting the case.
Dead Man Inc. Member Sentenced to 15 Years in Federal Prison for Retaliating Against a Federal WitnessRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Anthony E. Alascio, age 31, formerly of Baltimore, Maryland, today to 15 years in federal prison, followed by three years of supervised release, for retaliating against a witness who had testified in a federal criminal trial involving Dead Man Inc. (DMI).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Secretary Stephen T. Moyer of the Maryland Department of Public Safety and Correctional Services.
“We have zero tolerance for any efforts to intimidate or retaliate against witnesses,” said U.S. Attorney Rod J. Rosenstein.
On November 26, 2013, Alascio was an inmate at the Chesapeake Detention Facility (CDF) in Baltimore, awaiting trial in federal court on charges stemming from a December 28, 2012 armed robbery of a pharmacy in case number ELH-13-0153 (Robbery Case).
According to his plea agreement, Alascio was a member of Dead Man, Incorporated (DMI), a criminal gang founded in Maryland prisons in the 1990s. On November 26, 2013, during a series of recorded telephone call made from CDF, Alascio informed several individuals that he would soon be going into secure detention because of something he was about to do.
Later that day, Alascio assaulted another inmate at CDF using a sock filled with batteries and dominoes that had been taped together. The victim was seriously injured, including serious bleeding, lacerations that required stitches, and bruising. The victim was admitted to a nearby hospital for treatment and discharged two days later.
During the assault, Alascio called the victim a “snitch.” The assault was captured on video and the weapon was later found in Alascio’s cell. In a letter written in detention later that evening, Alascio admitted to beating the victim. Alascio referred to the victim as a “RAT” and stated that the victim “told on my peoples so he got what he deserved.”
Several weeks before the assault, the victim testified in the federal trial of Jose Morales. Evidence introduced at the Morales trial established that Morales paid DMI to murder Robert Long. Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at that trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long. Morales was sentenced to life in prison on December 9, 2013. The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
On December 23, 2013, Alascio pled guilty to robbery in the Robbery Case and was sentenced on March 28, 2014 to 135 months in federal prison. J udge Titus ordered that today’s sentence will be served consecutive to the sentence in the Robbery Case.
Earlier this year a federal grand jury indicted Troy Allen Lucas a/k/a “Troy Madron,” age 47, of Baltimore, Maryland on charges arising from the murder-for-hire of Robert Long. Lucas, an alleged DMI gang member, is scheduled to go to trial in September 2017.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police, ATF and Maryland Department of Public Safety and Correctional Services for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Coram Man Sentenced for Illegal Gun Dealing and ManufactureRead the Press Release
MISSOULA – John Stewart Davis, 71, of Coram, Montana was sentenced yesterday to 48 months in prison and three years’ supervised release for dealing in firearms without a license and making and transferring a machinegun. Chief District Court Judge Dana L. Christensen issued the sentence.
Davis was charged by indictment and pleaded guilty to three counts on June 20, 2016. In documents filed with the court, Assistant U.S. Attorney Paulette Stewart stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Davis dealt in firearms without a license and that he made and transferred a machinegun that was not registered. He also sold firearms to out of state residents. Davis had been dealing firearms without a license for 25 years, although only the years 2013-2015 were listed in the indictment.
Undercover law enforcement officers purchased weapons from Mr. Davis on multiple occasions at gun shows and at Davis’ shop in northwest Montana. Some of these purchases were regular firearms, some were machineguns, and some sales were to out of state residents. Davis told agents that he made a machinegun and showed them how it worked. Further, the agents observed that a room in his shop had a workbench, tools, and machines for gunsmithing, and that firearms and firearms parts were on the work bench. Davis also obliterated the serial numbers from some of the firearms so they could not be traced back to him. Many of these sales occurred without paperwork.
The case was prosecuted by Assistant U.S. Attorney Paulette Stewart and investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Montana Division of Criminal Investigation, and the Royal Canadian Mounted Police.
Colorado's U.S. Attorney's Office Honors Community PolicingRead the Press Release
DENVER – In honor of National Community Policing Week, and in a show of support for the Community Policing concept, members of Colorado’s U.S. Attorney’s Office, led by Acting U.S. Attorney Bob Troyer, organized and participated in events throughout the state during the past two weeks.
The Colorado U.S. Attorney’s Office was host to Deputy Attorney General Sally Yates, who came to Denver to participate in the Denver Justice Forum. The Forum was an opportunity for many different community leaders to voice their concerns about policing practices. It also provided law enforcement with a chance to address misconceptions. The work of the Forum participants continues as the group will meet again to develop specific strategies to build relationships between community representatives and law enforcement.
Another Community Policing project initiated by the U.S. Attorney’s Office was the “Protecting Houses of Worship” or the PHOW program. This program provides training to security-minded individuals who are responsible for protecting their places of worship, whether it be a church, mosque, synagogue or other faith-based facility. To date, the U.S. Attorney’s Office has hosted nearly a dozen PHOW trainings across much of Colorado.
In addition, multiple representatives from the Colorado U.S. Attorney’s Office, both staff and attorneys, have participated in a number of community based programs in Denver and Aurora, including GRID (Gang Reduction Initiative Denver) and GREAT (Gang Resistance Education and Training). U.S. Attorney’s Office employees have also been teaching community policing related lessons at Gilpin Elementary in Northeast Denver as part of the Project LEAD Program (Legal Education And Decision Making). Project LEAD is program that teaches students about law and the criminal justice system as well as how to make good decisions and stay away from situations that could result in bad decisions. At the end of the program students will then participate in a mock-trial. Finally, representatives from the office attended five “Coffee with a Cop” events this week in locations throughout Metro Denver.
The Department of Justice recently announced awarding a number of grants, including a grant to hire Community Policing Officers. In Colorado the Pueblo Police Department was awarded $875,000 for the COPS Hiring Program. The Department has also dedicated grant money to improve responses to violence, including officer shootings.
“Engaging the community and developing lasting, meaningful relationships with law enforcement is critical to the residents of Denver, as well as to all Coloradoans,” said Acting U.S. Attorney Bob Troyer. “The Justice Forum was an excellent leap toward the goal of restoring trust, removing barriers, and establishing a lasting long-term positive relationship between the police and the community.”
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Loretta E. Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Cleburne, Texas, Man Sentenced to Six Months in Federal Prison for Aiming a Laser Pointer at HelicopterRead the Press Release
DALLAS — Austin Lawrence Siferd, 24, of Cleburne, Texas, was sentenced last week by U.S. District Judge David C. Godbey to six months in federal prison, announced John Parker, U.S. Attorney for the Northern District of Texas.
Siferd pleaded guilty earlier this year to an indictment charging one count of aiming a laser pointer at an aircraft.
According to documents filed in the case, in July 2015, Siferd knowingly aimed the beam of a laser at a Texas Department of Public Safety (DPS) helicopter. Siferd aimed the laser at the helicopter while the helicopter was flying overhead. DPS was responding to reports that several commercial airlines had been hit with a laser in the same area that evening.
The FBI, Texas DPS and Johnson County Sheriff’s Office investigated. Assistant U.S. Attorney Mark Penley prosecuted.
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Buffalo Man Sentenced for Production, Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Paul F. Archambault, Jr., 29, of Buffalo, NY, who was convicted following a jury trial of production, receipt and possession of child pornography, was sentenced to 30 years in prison by U.S. District Judge Richard J. Arcara. The 30 year sentence will be served consecutive to a seven year sentence the defendant received in the Northern District of New York for failing to register as a sex offender and a violation of supervised release.
Assistant U.S. Attorneys Aaron J. Mango and Scott S. Allen, Jr., who handled the prosecution of the case, stated that in August 2012, the defendant contacted a minor victim via MeetMe.com, a social networking website. Archambault later enticed that minor victim to engage in sexually explicit conduct for the purpose of producing visual depictions. The defendant was also found guilty of two counts of receipt of child pornography for images he obtained from the minor victim via email, and one count of possessing child pornography on a SD card, located within one of the defendant’s two cellular phones.
Archambault was previously convicted of possessing child pornography in the Northern District of New York in 2009.
The sentencing is the result of an investigation on the part of Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the United States Marshals Service, under the direction of Charles Salina.
Buffalo Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jose Cisneros, 31, of Blasdell, NY, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in August 2015, the Blasdell Police Department alerted the FBI about a 13 year old female (victim 1) engaging in sexually explicit conversations using the Kik application and text messages with an individual later identified as Cisneros. During their communications, the defendant and victim 1 exchanged graphic photos.
During an interview with the FBI, the mother of Cisneros’s two children told agents that she found a phone belonging to the defendant which contained a sexual text conversation. The woman confronted Cisneros which resulted in an argument that led to police responding to the residence.
The plea is the culmination of an investigation by Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen.
Sentencing is scheduled for February 10, 2016 at 1:30 p.m. before Judge Arcara.
Baltimore Man Pleads Guilty to Damaging Property of a Reproductive Health Services FacilityRead the Press Release
Travis Reynolds, 21, of Baltimore, pleaded guilty today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.
The charge stems from incidents that occurred late in the evening on Feb. 24, 2016, and early in the morning on Feb. 25, 2016, when Reynolds and another man decided to vandalize a Baltimore area women’s health care clinic. Reynolds spray-painted the words “Baby Killer,” “Kill Baby Here” and other graphic messages across the building where the clinic is located.
During his guilty plea before U.S. Magistrate Judge Beth Gesner of the District of Maryland, Reynolds admitted that he vandalized the clinic because it offered abortion services. At the time of his arrest, Reynolds admitted to police that he defaced the clinic’s doors, walls and windows because he thought that it would deter women from using the clinic.
“The Justice Department will continue to aggressively enforce the FACE Act, which makes it a crime to intentionally damage a clinic because it offers reproductive health services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “While people have a First Amendment right to peacefully express their views, they do not have a right to vandalize clinics in the hopes of deterring women from receiving lawful services that those facilities provide.”
The case was investigated by the FBI and the Baltimore County Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.
Reynolds Plea AgreementAlabama Man Sentenced to Prison for His Role in Stealing Identities from His EmployerRead the Press Release
A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company. The warehouse contained employees’ Forms W-4. Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander. Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns.
Fearson pleaded guilty to one count of aggravated identity theft in July. Following his prison term, Fearson will serve six months of supervised release. In March, Alexander was sentenced to 111 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Alabama Man Sentenced to Prison for His Role in Stealing Identities from His EmployerRead the Press Release
WASHINGTON - A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company. The warehouse contained employees’ Forms W-4. Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander. Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns.
Fearson pleaded guilty to one count of aggravated identity theft in July. Following his prison term, Fearson will serve six months of supervised release. In March, Alexander was sentenced to 111 months in prison.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Accountant Pleads Guilty to Stealing $3.5 Million from EmployerRead the Press Release
BOSTON – A former accountant for an investment advising company pleaded guilty today in U.S. District Court in Boston in connection with a fraud scheme in which he stole more than $3.5 million from his employer.
Gary Tiffany II, 32, pleaded guilty to two counts of wire fraud and one count of monetary transactions in property derived from specified unlawful activity. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Jan. 16, 2017.
Tiffany was responsible for maintaining his employer’s checkbook and making electronic payments on the company’s account to vendors and for office expenses and reimbursements. He was also responsible for downloading monthly bank statements and emailing them to his supervisor to be used to reconcile his employer’s accounts. From about April 2011 through November 2015, Tiffany made wire transfers totaling more than $3 million from his employer’s accounts to his personal accounts, and he forged signatures on about 46 checks payable to himself totaling about $456,000. Tiffany concealed his scheme by making false entries in his employer’s electronic accounting system and altering bank statements he obtained online before forwarding them to his supervisor. Tiffany obtained a total of about $3,557,304 from his employer’s accounts, nearly all of which he used for his own benefit.
The wire fraud statute provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, and restitution. The monetary transactions statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation Boston Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit is prosecuting the case.
13 October 2016
Williamson man sentenced to federal prison for escaping halfway houseRead the Press Release
CHARLESTON, W.Va. – A Williamson man was sentenced to a year in prison for escape, announced United States Attorney Carol Casto. Damien Bagut, 37, previously pleaded guilty to escaping from a halfway house where he was serving a sentence for distribution of cocaine.
Bagut admitted that he was transferred to Dismas Charities in St. Albans to complete the remainder of his sentence in a residential halfway house. On November 28, 2015, Bagut left the halfway house with permission to attend his work shift. He failed to report to his job, however, and did not return to the halfway house. He was apprehended by law enforcement in Williamson on January 14, 2016, and he was incarcerated for the remainder of his sentence.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Gabriele Wohl is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This is the third case this year for escaping from a halfway house prosecuted by the United States Attorney’s Office. The permissions granted to residents of halfway houses are designed to make transitions from federal prison back into society successful. These cases are part of an effort by the U.S. Attorney’s Office to deter those serving the remainder of their prison sentences in halfway houses from unlawfully abandoning this transition period before their sentences are complete.
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Valdosta Dentist Enters Guilty Plea to Health Care FraudRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Dr. Stanley B. Marable, DDS, age 55, a dentist from Valdosta, Georgia, pled guilty in United States District Court in Valdosta, Georgia to one count of Health Care Fraud. Dr. Marable faces a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and up to three years of supervised release.
Facts stipulated in the written plea agreement show the following:
Dr. Marable was a general practice dentist in Valdosta who treated some patients whose claims were reimbursed through Medicaid payments from the State of Georgia. In 2012, at the request of the Georgia Department of Community Health, Division of Medical Assistance (DCH), an audit was performed by the Georgia Department of Audits and Accounts (DOOA). During the audit, several billing irregularities were discovered. Further investigation by the Georgia Medicaid Fraud Control Unit revealed that from January 2011 through September 30, 2013, Dr. Marable had was paid for 3,145 claims for the extraction of teeth and received Medicaid payments for these extractions totally more than $789,000.00. The investigation of the claims, however, revealed that Dr. Marable had not extracted the teeth from many of the patients for whom claims of reimbursement had been submitted. Several patients had never had any teeth extracted including one individual who did not even know Dr. Marable was a dentist.
U.S. Attorney Peterman stated: "Dr. Marable violated not only the trust placed in him as a practitioner of the healing arts, he blatantly lied to and stole from the tax paying public solely for his personal enrichment. His fraud was uncovered through diligent investigation by the Georgia Attorney General's Office – Medicaid Fraud Control Unit and the Georgia Department of Community Health – Office of Inspector General. The resulting prosecution is an excellent example of what can be accomplished through state and federal cooperation."
"Dr. Marable's actions are inexcusable and clearly warranted the actions taken," said Georgia Attorney General Sam Olens. "My office continues to combat Medicaid fraud, waste, and abuse through prosecutions like these."
As part of his plea agreement, Dr. Marable has agreed to pay a total of $789,841.00 in restitution to the Georgia Medicaid Program.
Sentencing for Dr. Marable has been scheduled for February 8, 2017.
The case was investigated by the Georgia Medicare Fraud Control Unit and Georgia Department of Community Health – Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Sonja Profit and Tamara Jarrett and Georgia Assistant Attorney General James Mooney.
For additional information please contact Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2603.
Union, Missouri, Man Charged with Impersonating a Federal AgentRead the Press Release
St. Louis, MO – Timothy Rosselli, aka Timothy Rossell, aka Austyn Gardner, aka Austyn Labella, Union, Missouri, was arrested today on a federal arrest warrant charging him with impersonating a federal agent.
According to the criminal complaint filed in United States District Court yesterday, Rosselli had been living with a girlfriend in the Union, Missouri, area and holding himself out as a Deputy United States Marshal named Austyn Gardner. When Rosselli left his Union residence suddenly on October 9, his girlfriend called the local police who, with the help of the U.S. Marshals Service, quickly determined Rosselli’s identification and other USMS paraphernalia where counterfeit and fraudulent.
The investigation soon identified a second girlfriend in Ft. Myers, Florida. This second girlfriend knew Rosselli as "Austyn Labella," a deputy United States Marshal for whom she had purchased two sports cars, including a white Lamborghini. This second girlfriend directed investigators to Effingham, Illinois, where Effingham police located him attempting to purchase a bus ticket. Rosselli had explained to the second girlfriend that the Lamborghini had blown a tire and he needed alternate transportation.
Rosselli appeared in court this morning in St. Louis. The government has sought Rosselli’s detention pending trial. Rosselli has numerous prior convictions for fraud and deceit and is wanted on parole violations in Missouri courts and in his native state of Pennsylvania. If convicted of impersonation of a federal officer, Rosselli faces up to three years imprisonment, a fine of up to $250,000 or both. Restitution to any victims of his deception will also be sought.
Rosselli is suspected of deceiving others into believing he was a federal officer. Anyone with information on Rosselli or any of his aliases is requested to contact the U.S. Marshals Service – Investigations Bureau at 314-539-2040.
This case was investigated by the United States Marshals Service with assistance from the Union (Missouri) Police Department and the Effingham (Illinois) Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
U.S. Navy Lieutenant Commander Pleads Guilty in Expanding Bribery and Fraud InvestigationRead the Press Release
A U.S. Navy lieutenant commander pleaded guilty today to a bribery charge in federal court and admitted to accepting cash, luxury hotels and prostitutes from a foreign defense contractor in exchange for proprietary Navy information.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director Dermot O’Reilly of the Department of Defense’s (DoD) Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Gentry Debord, 41, who is based in Singapore, pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal of the Southern District of California. He is scheduled to be sentenced on Jan. 13, 2017.
In pleading guilty, Debord, who served in several logistical and supply positions in the Western Pacific, admitted that he instructed Glenn Defense Marina Asia (GDMA) executives to inflate their invoices to the Navy to cover the cost of various illicit gifts provided to him. From November 2007 to January 2013, Debord provided former GDMA CEO Leonard Glenn Francis and others with internal and proprietary U.S. Navy information. This information included inside Navy information about competitors’ bids and information about an investigation into GDMA’s billing practices. Debord also admitted to misusing his position and influence in the Navy to advocate for and advance GDMA’s interests, including by approving inflated invoices for services never rendered that he directed Francis to submit.
According to admissions made in connection with his plea, as part of this conspiracy, Debord, Francis and others attempted to conceal the bribes given to Debord as well as the nature and extent of his relationship with Francis. This was done by, for example, using coded language in communications referring to prostitutes as “cheesecake” or “bodyguards.” Debord also requested that GDMA executives provide him with an apartment for a port visit.
In addition, Debord admitted to asking a GDMA executive to provide him with three hotel rooms, two cell phones, a van and 2,000 Singapore dollars. Debord instructed the executive to recover the value of these items by inflating the amount that GDMA would invoice the U.S. Navy for potable water and trash removal service for the U.S.S. Essex port visit to Singapore, which GDMA proceeded to do.
So far, a total of 16 individuals have been charged in connection with the GDMA corruption and fraud investigation. Of those, 11 are current or former U.S. Navy officials, including Debord, Admiral Robert Gilbeau, Captain (ret.) Michael Brooks, Commander Bobby Pitts, Captain Daniel Dusek, Commander Michael Misiewicz, Lt. Commander Todd Malaki, Commander Jose Luis Sanchez, Petty Officer First Class Daniel Layug, Naval Criminal Investigative Service Supervisory Special Agent John Beliveau and Paul Simpkins, a former DoD civilian employee who oversaw contracting in Singapore.
Gilbeau, Dusek, Misiewicz, Malaki, Beliveau, Sanchez, Layug and Simpkins have pleaded guilty. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; and on April 29, 2016, Misiewicz was sentenced to 78 months in prison and to pay a fine of $100,000 and to pay $95,000 in restitution to the Navy. Beliveau is scheduled to be sentenced tomorrow; and Gilbeau, Sanchez and Simpkins also await sentencing. Brooks and Pitts were charged in May 2016 and their cases are pending.
Also charged are five GDMA executives: Francis, Alex Wisidagama, Ed Aruffo, Neil Peterson and Linda Raja. Wisidagama has pleaded guilty and was sentenced on March 18, 2016, to 63 months in prison and $34.8 million in restitution to the Navy. Francis and Aruffo have pleaded guilty and await sentencing; Peterson’s and Raja’s cases are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until they are found guilty beyond a reasonable doubt in a court of law.
DCIS, NCIS and the Defense Contract Audit Agency are investigating the case. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Attorney's Office to honor excellence in law enforcement and victim supportRead the Press Release
CHARLESTON, W.Va. – United States Attorney Carol Casto will honor more than 60 law enforcement officers, victim advocates, and community leaders during the 2016 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony on Friday, October 14, 2016, at 2:00 p.m. at the Robert C. Byrd United States Courthouse in Charleston.
During the ceremony, U.S. Attorney Casto will present awards for outstanding law enforcement work on major cases involving drug crime, violent crime, white collar crime and child exploitation. Other awards include Law Enforcement Agency of the Year, Outstanding Criminal Justice Partner, Outstanding Community-Police Partnership Initiative, Outstanding Child Advocacy Center, and West Virginia Crime Victim Service Awards.
The annual awards ceremony, hosted by the U.S. Attorney’s Office for the Southern District of West Virginia, recognizes exemplary service of federal, state, and local law enforcement officers, as well as victim advocates, criminal justice professionals, and others who have made significant contributions on behalf of the criminal justice system.
WHO:
- United States Attorney Carol Casto, joined by representatives from the law enforcement community, crime victim advocates, and others
WHAT:
- 2016 U.S. Attorney’s Law Enforcement and Victim Assistance Awards Ceremony
WHEN:
- Friday, October 14, 2016, at 2:00 p.m.
WHERE:
- Robert C. Byrd United States Courthouse – Fifth Floor
- 300 Virginia Street, East
- Charleston, WV 25301
*Please be advised that cameras and other recording devices will be permitted on the fifth floor of the Courthouse for the ceremony only.
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U.S. Attorney's Office Concludes Investigation into Death of Alonzo Smith at Southeast Washington Apartment BuildingRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or local charges against two Special Police Officers involved in a confrontation at an apartment building in Southeast Washington that ended with the death of 27-year-old Alonzo Smith.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the November 1, 2015, incident, which included interviews of more than two dozen civilian and law enforcement witnesses, and consultations with the Chief Medical Examiner, Deputy Medical Examiner, and Chief Toxicologist at the Office of the Chief Medical Examiner for the District of Columbia. The investigation also included the review of autopsy and toxicology reports; body-worn camera footage which depicts part of the incident; 911 calls and radio transmissions; Mobile Crime reports and photographs; physical evidence recovered on the scene, at the hospital, and from Mr. Smith’s vehicle; DNA, fingerprint and drug evidence recovered on the scene and from Mr. Smith’s vehicle; and cellphone and cell site data.
After this review, the U.S. Attorney’s Office concluded that the evidence is insufficient to prove beyond a reasonable doubt that the Special Police Officers violated Mr. Smith’s civil rights by using excessive force or that they possessed the requisite criminal intent at the time of the events. Rather, the evidence shows that Mr. Smith suffered a sudden cardiac incident that resulted in death. At the time, Mr. Smith was under the influence of a significant amount of cocaine and was being restrained by the Special Police Officers, both of which may have contributed to the cardiac incident. While the Medical Examiner listed the manner of death forensically as “homicide,” reflecting that the conduct of another person may have contributed to Mr. Smith’s death, a manner of death determination is insufficient, in and of itself, to establish that another person is criminally responsible for an individual’s death.
According to the evidence, on November 1, 2015, at approximately 2:25 a.m., Mr. Smith arrived at the Marbury Plaza apartment complex, in the 2300 block of Good Hope Road SE, to visit a friend in a high-rise building that is part of the complex. After parking his vehicle in the 2300 block of Good Hope Road, Mr. Smith went to the friend’s apartment. Between 3:10 and 3:30 a.m., Mr. Smith abruptly left the building, apparently returning to his car. At approximately 3:30 a.m., one of the Special Police Officers saw Mr. Smith run out from the building entrance towards the grassy area in front of the high-rise. Mr. Smith, who was wearing pants but no shoes or shirt, hid in the bushes; got up and hid behind the “Marbury Plaza” sign; lay down on the ground; and ran back towards the front of the building. There was nobody near Mr. Smith. The Special Police Officer radioed a second Special Police officer for assistance.
Mr. Smith then ran towards the rear parking lot of the nearby three-story garden apartments, and the Special Police Officers followed, walking approximately 50 feet behind Mr. Smith, who was yelling “help, help.” Mr. Smith continued to run through the rear parking lot to the walkway next to the garden apartment building at 2312 Good Hope Road, and then to the front parking lot while continuing to yell “help.” Between 3:30 a.m. and 4:00 a.m., multiple civilian witnesses from inside 2312 Good Hope Road and from the high-rise apartment building across the street saw Mr. Smith running around outside, shirtless and shoeless, and heard him yelling for help. Some witnesses reported hearing Mr. Smith yelling “they’re trying to kill me,” while another witness reported hearing Mr. Smith yelling “she’s trying to kill me.” None of the witnesses, however, reported that anyone was chasing or assaulting Mr. Smith or that the Special Police Officers were doing anything other than walking, at a distance, behind him. There is also no evidence that the Special Police Officers ever caught up to, or assaulted, Mr. Smith while he was on the grounds of the Marbury Plaza apartment complex outside of 2312 Good Hope Road.
At 4:02 a.m., a resident of the high-rise building reported seeing Mr. Smith running around outside, and then running into 2312 Good Hope Road, with nobody behind him. According to multiple residents of 2312 Good Hope Road, once inside, Mr. Smith started banging on their doors and yelling “help.” Because the residents believed Mr. Smith was on drugs, none of the residents opened their doors. One resident saw Mr. Smith trying to climb the interior fire escape ladder that leads to the roof.
At approximately 4:03 a.m., one of the Special Police Officers entered 2312 Good Hope Road and saw Mr. Smith on the top floor of the building. Two residents reported hearing a voice calmly telling Mr. Smith to come down from the ladder and to “calm down.” Mr. Smith then tried to jump past the Special Police Officer and/or over the railing. The Special Police Officer grabbed Mr. Smith in a bear hug-type move, pivoted, and put Mr. Smith onto the floor on the staircase landing that is one flight up from the ground level. The other Special Police Officer arrived after Mr. Smith was on the landing. While Mr. Smith remained on his stomach, the Special Police Officers attempted to handcuff Mr. Smith, who was using his left hand to grip the staircase and pull himself forward. The Special Police Officers ultimately utilized two sets of handcuffs to secure Mr. Smith. There is no evidence that during this interaction with Mr. Smith, either Special Police Officer punched, kicked, or otherwise struck Mr. Smith, and no resident reported hearing any sounds of a struggle in the hallway.
At 4:05 a.m., two MPD officers arrived and ran into the building. Both MPD officers were equipped with body worn cameras, which were activated. Mr. Smith was lying on his stomach on the staircase landing one flight up, handcuffed behind his back. One of the Special Police Officers was kneeling by, and occasionally on, Mr. Smith’s lower back, while the other Special Police Office was holding Mr. Smith’s head down. As reported to the MPD dispatcher, Mr. Smith was conscious and breathing at that time. The Special Police Officers informed the MPD officers that they believed that Mr. Smith was under the influence of PCP. Upon being told that Mr. Smith was under the influence of PCP, one of the MPD officers ran back outside to the cruiser to get shackles for Mr. Smith’s legs to further secure Mr. Smith in case of a drug-induced violent outburst. The other MPD officer remained with Mr. Smith and the two Special Police Officers. After the shackles were placed on Mr. Smith’s ankles, and approximately one minute after the MPD officers’ arrival, the officers realized that Mr. Smith had stopped moving and making sounds, although he still had a pulse. As one MPD officer again updated the dispatcher, the other MPD officer began administering CPR, which continued until the 4:11 a.m. arrival of the first personnel from the District of Columbia Fire and Emergency Medical Services Department. After several minutes of rendering medical attention to Mr. Smith and finding no vital signs, EMS personnel transported Mr. Smith to United Medical Center where, at 5:08 a.m., Mr. Smith was pronounced dead.
The Office of the Chief Medical Examiner performed the autopsy and concluded that the cause of Mr. Smith’s death was “sudden cardiac death complicating acute cocaine toxicity while restrained” with a contributing factor of “compression of torso,” and that the manner of death was homicide. There were no injuries to any of Mr. Smith’s vital organs, to include his heart; no signs of trauma to Mr. Smith’s spine, neck, or brain; no broken bones; and no injuries to Mr. Smith’s face, teeth, oral cavity, chest, or genitalia. The autopsy report further revealed that Mr. Smith had “blunt force injuries” that were described as abrasions, contusions and subcutaneous hemorrhages on his head (a 3/16th superficial abrasion), neck (a hemorrhage caused by medical intervention); torso (minor contusions and abrasions, and a deep muscular hemorrhage on his back); and extremities (minor abrasions or hemorrhages on his shoulders, elbows, forearm, wrists, and feet). Finally, a comprehensive toxicology screening revealed that Mr. Smith had THC, which is the active ingredient in marijuana, and an exceedingly high amount of cocaine in his blood. Cocaine intoxication can produce reactions similar to that normally associated with PCP, to include hallucinations, an increase in body temperature, and erratic behavior.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two New Yorkers Indicted on Heroin ChargesRead the Press Release
PITTSBURGH - Two residents of New York have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Oct. 11, named:
- Habys Omar Meran, 30; and
- Juan Wilquin Hernandez-Bourdier, 35.
According to the indictment presented to the court, on Jan. 26, 2016 the defendants possessed one kilogram or more of heroin with the intent to distribute it, and were part of a conspiracy to distribute the heroin.
The law provides for maximum total sentence ranging from not less than 10 years and up to life in prison, and a fine of $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of each defendant.
Assistant United States Attorney Ross E. Lenhardt, of the Violent Crimes Section, is prosecuting this case on behalf of the government.
The Department of Homeland Security and the Pennsylvania State Police 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.
Two Hudson County, New Jersey, Ms-13 Gang Members Charged with Conspiring to Kill Suspected InformantRead the Press Release
NEWARK, N.J. – Two Hudson County, New Jersey, men appeared in federal court today to face charges that they conspired to kill a gang member who was suspected of cooperating with law enforcement, U.S. Attorney Paul J. Fishman announced.
Juan Pablo Escalante-Melgar, a/k/a “Humilde,” 27, and Elmer Cruz-Diaz, a/k/a “Locote,” 28, both of Union City, New Jersey, were previously indicted on one count of conspiring to kill an individual to prevent them from communicating with a law enforcement officer. Escalante-Melgar and Cruz-Diaz were arraigned this afternoon before U.S. District Judge Claire C. Cecchi and were detained without bail. They were originally taken into custody on Sept. 3, 2015, on immigration charges.
According to documents filed in this case and statements made in court:
Escalante-Melgar and Cruz-Diaz are members of the international street gang Mara Salvatrucha, commonly known as “MS-13.” Multiple sub-sets, or “cliques,” of MS-13 operate in Hudson County, including Pinos Locos Salvatrucha (Pinos clique) and Hudson Locotes Salvatrucha (Hudson Locotes clique). Escalante-Melgar was the “First Word,” or leader, of the Pinos clique; Cruz-Diaz was the First Word of the Hudson Locotes clique.
MS-13’s rules strictly prohibit cooperating with law enforcement, and it is well understood within the gang that police informants will be punished by death. The process of obtaining authorization to kill a disobedient gang member is known as “green-lighting.” Obtaining a “green-light” typically requires the authorization of a clique leader and, in some cases, approval from gang leaders in California or El Salvador. When preparing to kill disloyal or disobedient gang members, MS-13 often assigns gang members to follow the targeted individuals to learn their patterns and movements, enabling the gang to carry out the murders at opportune times without alerting law enforcement.
On Aug. 11, 2015, law enforcement intercepted a telephone call between a high-ranking MS-13 member in El Salvador (Gang Leader 1), Escalante-Melgar, and another MS-13 member. Gang Leader-1 told Escalante-Melgar and the other MS-13 member that they needed to kill three individuals, including Victim 1, a member of the Hudson Locotes clique who was suspected of cooperating with law enforcement.
Four days later, law enforcement intercepted a telephone call between Cruz-Diaz and another MS-13 member in which Cruz-Diaz confirmed that senior MS-13 members in El Salvador had authorized a green-light on Victim 1, and went on to state that the gang would assign members of another MS-13 clique to “watch” Victim 1 in preparation for the killing. Cruz-Diaz told the other gang member, “the only thing left to do is to just do it.”
On Aug. 16, 2015, Escalante-Melgar spoke by telephone with another MS-13 member and confirmed that four individuals, including Victim 1, had been green-lighted. Escalante-Melgar explained to the other MS-13 member that the gang would take its time carrying out the murders in order to prevent gang members from being arrested.
On Aug. 31, 2015, Cruz-Diaz and Escalante-Melgar had separate telephone conversations with another member of MS-13, during which the MS-13 member informed Cruz-Diaz and Escalante-Melgar that he had seen Victim 1 on the street in Union City. Cruz-Diaz ordered the MS-13 member to follow Victim 1 to see what time Victim 1 left and returned home. Cruz-Diaz also informed the caller that another MS-13 member had been assigned to follow Victim 1. Escalante-Melgar acknowledged the information and instructed the caller to contact Escalante-Melgar with developments.
The conspiracy charge carries a maximum potential penalty of life in prison and a $250,000 fine.
The charge and allegations made in court documents are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, and ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, the Union City Police Department, and the West New York Police Department for their work on the case.
The government is represented by Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark as well as Trial Attorney Matthew Hoff with the Justice Department Criminal Division’s Organized Crime and Gang Section.
Defense counsel:
Escalante-Melgar: Frederick R. Dunne III Esq., Kearny, New Jersey
Cruz-Diaz: Perry Primavera Esq., Hackensack, New Jersey
Three Springdale Residents Sentenced to Total of 17 Years in Federal Prison for Drug OffensesRead the Press Release
Fayetteville - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Cinthia Banegas-Ruiz, age 23, was sentenced to 46 months in federal prison followed by 3 years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing this week in the United States District Court in Fayetteville.
According to court documents, in January of 2015, the Drug Enforcement Administration, in conjunction with the U.S. Postal Inspection Service, and local law enforcement agencies, began investigating a drug trafficking organization operating out of the Springdale and Rogers areas of Arkansas. On November 10, 2015, law enforcement received information that Jose Lepe, a co-defendant of Banegas-Ruiz, would be traveling to Texas to pick up methamphetamine and bring it back to the Western District of Arkansas where it would be distributed.
Agents conducted surveillance of the vehicle as the vehicle travelled to the Dallas, Texas area and then returned to the Western District of Arkansas. Law enforcement officers stopped the vehicle on Interstate 49 as it traveled northbound, in the Western District of Arkansas. Jose Lepe was identified as the driver of the vehicle and Banegas-Ruiz was seated in the backseat next to her two-year-old daughter. Upon a search of the vehicle, a Ziploc bag containing 106 grams of actual methamphetamine was located between the backseat and a speaker box, in an area only accessible by folding down the backseat in the area where Banagas-Ruiz and her child were seated.
Banagas-Ruiz provided a recorded statement to police, after waiving her Miranda rights. She admitted that she went to Dallas thinking that the purpose of the trip was to drop of money owed for drugs and she agreed that bringing her daughter along made them look less suspicious to law enforcement. An analysis of Banegas-Ruiz’s text messages revealed further communications relating to the distribution of methamphetamine.
A federal Grand Jury issued an Indictment for Banegas-Ruiz, Jose Lepe, and Rigoberto Benavidez on January 27, 2016. Banegas-Ruiz pleaded guilty on May 13, 2016.
Benavidez and Jose Lepe were both sentenced after pleading guilty to charges related to the distribution of methamphetamine. On July 11, 2016, Rigoberto Benavidez, age 26, was sentenced to 100 months imprisonment, followed by 3 years supervised release. And, on August 23, 2016, Jose Lepe, age 25, was sentenced to 63 months imprisonment followed by 3 years supervised release.
“Methamphetamine brings chaos into the lives of those who are addicted to or live around it,” stated Matthew Barden, DEA Assistant Special Agent in Charge of the Little Rock District Office. “Cinthia Banegas-Ruiz’ sentencing should be a warning to anyone thinking of polluting our communities with this addictive substance, especially those who endanger children in the process. DEA, along with our law enforcement partners are committed to investigating anybody that participates in the distribution of methamphetamine and other illegal and dangerous narcotics.”
This case was investigated by the Drug Enforcement Administration, U.S. Postal Inspection Service, Rogers Police Department, Springdale Police Department, and Arkansas State Police. Assistant United States Attorney Kimberly Davis Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three More Men Sentenced to Prison for Roles in Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that within the past two weeks, three additional men were sentenced to prison for their roles in a large stolen property ring that operated in the Metro East and other locations. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to 15 months in prison. Yesterday, Russell J. Witt, 34, of Mount Clemens, MI, was sentenced to 12 months in prison.
The charges against all three men arose from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. The indictment alleges that the leader of this fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, operated a large stolen property ring. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers
to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico. Parmeley lived in Mexico at that time and controlled the fraud ring from that country. The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft.
At his sentencing hearing last week, the court found that Flora performed a variety of jobs for the conspiracy over a three-year period, including purchasing several loads of the stolen property, storing other loads of stolen property, brokering deals for the sale of stolen merchandise, recruiting drivers to transport the stolen goods, threatening drivers who stole money or merchandise from the conspiracy, and wire transferring funds to Parmeley in Mexico. During his plea hearing, Gutierrez admitted that, for a period of two years, he received shipments of stolen goods in California, stored those goods, assisted in the sales of the merchandise, and wire transferred funds to Parmeley in Mexico. Witt worked as a driver for the conspiracy for one year.
Early this year, two additional defendants in the case were also sent to prison. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, was sentenced to 3 years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to 1 year in prison. Both of the brothers had admitted to receiving large quantities of the stolen property. Two more defendants, Nicholas A. Brockman, 20, of Wentzville, MO, and Benedict G. Pellerito, 56, of Troy, MO, received sentences of probation. Both Brockman and Pellerito worked as drivers for the conspiracy for less than two months.
In late August of this year, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley is currently in federal custody and is awaiting trial. The trial of Parmeley and
three remaining defendants (Angel Speed, 25, formerly of O’Fallon, MO; Steven J. Belcher, 44, of Wentzville, MO; and Jesse S. Urias, 36, of Los Angeles, CA) is scheduled to begin on November 21, 2016.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Stilwell Man Pleads Guilty to Drug Conspiracy, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DUSTY ALLEN DRYWATER, age 33, of Stilwell, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than Life imprisonment, up to a $10,000,000.00 fine or both and FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 2, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The Superseding Indictment filed in March, 2016, alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, who at the time was an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. DRYWATER was a methamphetamine distributor as well as a drug and money courier for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Staten Island Man Charged with Defrauding over 100 Investors of More Than $2 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest and unsealing of a complaint charging EDWARD J. SERVIDER, a/k/a “Nick Halden,” with commodities fraud, mail fraud, and wire fraud in connection with a scheme to defraud over 100 investors out of more than $2.4 million. From March 2013 through July 2014, SERVIDER, through his firm EJS Capital Management, LLC, fraudulently solicited investments for trading in off-exchange foreign currency (“Forex”) transactions. In fact, none of the money was used for such transactions, and SERVIDER converted the funds to his own use, and the use of others, without the authorization of his investors. Rather than invest his victims’ funds as promised, SERVIDER misappropriated a major portion of investors’ funds and used them to pay personal and business expenses. SERVIDER will be presented today before Magistrate Judge Barbara Moses.
In a separate action in May 2014, the Commodity Futures Trading Commission (“CFTC”) filed civil charges against SERVIDER, EJS Capital Management, LLC and others.
U.S. Attorney Preet Bharara said: “As alleged, Edward Servider not only lied to his investors about his past performance in the Forex markets, but actually did not even engage in any trades for his investors. Instead, Servider allegedly used investor money to fund his own extravagant lifestyle, including to pay for an engagement ring, a BMW lease, hotel rooms and parking tickets.”
FBI Assistant Director in Charge William F. Sweeney said: “When people decide to invest their money, those investors understand it may take time before they see a return on their investments. The subject in this case allegedly believed his clients weren’t ever going to ask where their money went, and chose to spend it. Traders hoping to live the high life should view this case as a cautionary tale. There is no pot of gold at the end of the rainbow, only investors and the FBI and our law enforcement partners demanding you explain where the money went.”
According to the allegations in the Complaint unsealed in Manhattan federal court:[1]
In March 2013, SERVIDER set up a retail foreign currency exchange trading firm, called EJS Capital Management, LLC (“EJS”) in Brooklyn. SERVIDER and his business partner (“CC-1”) ran EJS from March 2013 through July 2014. EJS employed salespeople who made unsolicited telephone calls to prospective investors. SERVIDER and the EJS salespeople told prospective investors that their funds would be used to trade in Forex transactions, and provided them with a “performance report” that falsely claimed that between 2010 and 2013, EJS had achieved gross annual returns for its investors of approximately 18 percent, 22 percent, 49 percent, and 77 percent (the “EJS Performance Report”). The EJS Performance Report contained false and fraudulent representations, as EJS had never conducted any trading nor achieved any returns for its investors. According to the terms of the contracts into which EJS entered with its investors, EJS was authorized only to engage in Forex transactions on behalf of its investors; EJS was not authorized to withdraw any investor money funds; and the only fee that EJS investors agreed to pay to EJS was a commission based on the success of their investments. SERVIDER directed EJS employees to send account statements to the EJS investors, falsely showing positive returns on their investments.
In fact, instead of being used to execute Forex trading, the majority of the investor funds was misappropriated and used to pay SERVIDER and CC-1’s personal expenses and purported business expenses for EJS. For example, SERVIDER used investor funds to purchase an engagement ring, to lease a BMW vehicle for his girlfriend, and to pay for hotel rooms, rental cars, and parking tickets.
* * *
SERVIDER, 28, of Staten Island, New York, is charged with six counts, which are listed below with their respective maximum prison sentences and fines.
Count
Offense
Maximum prison sentence
Maximum fine
One
Conspiracy to Commit Commodities Fraud
5 years
The greatest of $250,000, twice the gross gain or twice the gross loss
Two
Commodities Fraud by Misappropriation and Omission
10 years
$1 million
Three
Fraud by a Commodity Trading Advisor
10 years
$1 million
Four
Conspiracy to Commit Mail Fraud and Wire Fraud
20 years
The greatest of $250,000, twice the gross gain or twice the gross loss
Five
Wire Fraud
20 years
The greatest of $250,000, twice the gross gain or twice the gross loss
Six
Mail Fraud
20 years
The greatest of $250,000, twice the gross gain or twice the gross loss
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI, and thanked the CFTC for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Sentencings for October 5 - October 12, 2016Read the Press Release
Linda Patricia Thompson, 59, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 12, 2016, for bank robbery. Thompson was arrested in Cheyenne, Wyoming. She received 72 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100 special assessment. This case was investigated by the Cheyenne Police Department and the Federal Bureau of Investigation.
Michael David Consiglio, 57, of Henderson, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on October 11, 2016, for conspiracy to distribute methamphetamine. Consiglio was arrested in Denver, Colorado. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Alexander Brian Kennedy, 21, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 7, 2016, for possession of a firearm not registered in the National Firearms Registration and Transfer Record and for being a felon in possession of a firearm. Kennedy was arrested in Cheyenne, Wyoming. He received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jacob Allen Webb, 28, of Randolph, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 7, 2016, for being a felon in possession of a firearm. Webb was arrested in Evanston, Wyoming. He received 12 months and one day of imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael Richard Parsons, Jr., 24, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 7, 2016, for possession of child pornography. Parsons was arrested in Casper, Wyoming. He received time served, to be followed by ten years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Douglas Alan Bemus, 26, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 5, 2016, for distribution of methamphetamine. Bemus was arrested in Florida. He received 30 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and $250.00 in restitution. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Indian Affairs.
Sacramento Woman Sentenced for a Health Care Fraud Scheme that Billed for Unnecessary or Unperformed Dental WorkRead the Press Release
SACRAMENTO, Calif. — Nichol Lomack, aka Nichol Ramirez, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 21 months in prison for health care fraud, Acting United States Attorney Phillip A. Talbert announced. Additionally, Judge England ordered Lomack to pay $726,300 in restitution.
According to court documents, from 2001 until November 12, 2010, Lomack worked for a dental practice in Sacramento owned and operated by Dr. David M. Lewis. Lomack was responsible for processing and submitting claims to insurance carriers for reimbursement for dental services provided by Lewis. Beginning in late 2008 or early 2009, Lewis began targeting United Parcel Service Inc. employees for dental treatment because their health care plan under the Northern California General Teamsters Security Fund provided 100 percent dental coverage without any annual limits. Lewis offered cash and other incentives to UPS employees for receiving dental treatment or for recruiting other UPS employees to receive such treatment.
According to the plea agreement, upon Lewis’s instruction, Lomack submitted claims to Delta Health Systems, which administered the UPS health care plan, that billed the plan for work that was never performed or for dental work that was unnecessary. Lomack knew that the claims contained false statements relating to services rendered when she submitted them to Delta.
In furtherance of the scheme, Lewis and Lomack created false narratives for dental work that was not performed or created false statements about purported pre-existing dental conditions to justify the work performed. In some instances, Lewis drilled into healthy teeth to install temporary fillings and instructed his assistants to take X-rays of the temporary fillings. Thereafter, Lomack submitted claims to Delta with the X-rays falsely claiming that the X-rays depicted tooth decay that justified further restorative procedures.
“This defendant assisted in a fraud scheme that not only plundered funds meant to provide essential services, but inflicted pain and suffering on patients by performing unnecessary dental procedures, all in the name of additional profit,” said Acting U.S. Attorney Talbert. “We are gratified by today’s sentence and thankful for the critical work done by our partners in the Department of Labor and the State of California.”
Lewis was sentenced to three years and 10 months in prison and was fined $75,000 for his role in the health care fraud scheme and ordered to pay $726,300 in restitution. (2:14-cr-045 MCE)
These cases were the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the U.S. Department of Labor, Employee Benefits Security Administration with assistance from the California Dental Board and the California Attorney General’s Office. Assistant United States Attorney Todd A. Pickles prosecuted the cases.
Roanoke Man Sentenced on Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who was involved with the interstate transport and sale of heroin, was sentenced yesterday in federal court on related drug charges, United States Attorney John P. Fishwick Jr. announced.
Shawn St. Clair Cadogan, 30, of Roanoke, Virginia, previously pled guilty to one count of possession with intent to distribute heroin. Yesterday in District Court, Cadogan was sentenced to 84 months in federal prison.
“As we have seen in communities throughout the Commonwealth, heroin continues to be a destructive force that destroys lives,” Unites States Attorney Fishwick said today. “We will continue to use all federal resources available to enforce our laws while supporting appropriate prevention and treatment programs for those addicted to this deadly drug.”
The investigation of the case was conducted by the Drug Enforcement Administration (DEA) in partnership with the Bedford County Sheriff’s Office, Roanoke City Police Department, and DEA units based out of Paterson, New Jersey. Assistant United States Attorney Andrew Bassford and Special Assistant United States Attorney Kari K. Munro prosecuted the case for the United States.
Queen City Bank Robber Sentenced to Federal TimeRead the Press Release
CONCORD, N.H. – Ricardo Mejia, a 25-year-old resident of Manchester, N.H. was sentenced today to 54 months in federal prison for robbing a Manchester bank branch last year, announced United States Attorney Emily Gray Rice. Mejia previously had pleaded guilty to one count of the federal crime of Bank Robbery.
In connection with his earlier guilty plea, Mejia acknowledged that, on September 4, 2015, he entered a branch of Northway Bank at 29 Cilley Road in Manchester and whispered to a bank teller, “Give me all 100s, 50s, 20s. I have a gun.” While he did not brandish a firearm during the incident, Mejia further admitted that he cautioned the teller, “Don’t give me any tainted money or I’ll come back and shoot you.” Mejia also acknowledged that, after the teller handed him a substantial amount of cash from her teller drawer, he fled.
United States Chief District Judge Joseph N. LaPlante imposed today’s sentence. In addition to ordering the term of incarceration, Chief Judge LaPlante ordered Mejia to serve three years of supervised release upon completion of his prison term.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Bill Morse.
###
Plaza Construction Charged with FraudRead the Press Release
Projects Included the Empire State Building, Brooklyn Navy Yard, Bronx Terminal Market, Federal Reserve Bank of New York, and New York University
Earlier today, the U.S. Attorney’s Office for the Eastern District of New York (the Office) filed fraud charges in Brooklyn federal court against Plaza Construction LLC, successor to Plaza Construction Corp. (Plaza Construction), one of the largest construction firms in New York City. Plaza Construction is charged with mail and wire fraud conspiracy for improperly billing its clients more than $2.2 million over a thirteen-year period for hours not worked and for inserting a hidden surcharge into its bills for the purpose of obtaining payments to offset administrative costs. As a result, Plaza Construction has entered into a deferred prosecution agreement with the Office in which it admitted to fraudulently overbilling clients and agreed to pay more than $9 million in restitution to victims, and forfeiture and penalties to the federal government. The company has additionally instituted far-reaching corporate reforms designed to eliminate future problems and enforce best industry practices.
Today’s deferred prosecution agreement marks the fourth resolution by the Office aimed at rooting out fraud in the construction industry. In April 2012, Lend Lease (US) Construction LMB Inc. (formerly Bovis Lend Lease LMB Inc.) was charged with defrauding its clients, entered into a deferred prosecution agreement, and paid $56 million in restitution and penalties for engaging in a ten-year overbilling scheme. In May 2015, Hunter Roberts Construction Group, LLC entered into a non-prosecution agreement and agreed to pay more than $7 million in restitution and penalties for engaging in an eight-year fraudulent overbilling scheme. In December 2015, Tishman Construction Corporation was charged with defrauding its clients, entered into a deferred prosecution agreement, and paid more than $20 million in restitution and penalties for engaging in a ten-year overbilling scheme.
The charges and disposition were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Michael Nestor, Inspector General, Port Authority of New York and New Jersey (PANYNJ); William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Office of Inspector General; Scott S. Dahl, Inspector General, U.S. Department of Labor (DOL), Office of Inspector General; and Mark G. Peters, Commissioner, New York City Department of Investigation (DOI).
“For more than a decade, Plaza Construction overbilled its clients by charging them for unworked time and by fraudulently inserting a hidden surcharge to help offset its administrative costs. By doing so, the company defrauded its clients and abused the trust placed in it to provide construction services at some of New York’s most storied sites. Today’s criminal charges and resolution, the fourth resolution in this area, demonstrate our steadfast efforts in combating and eliminating fraud in New York City’s construction industry,” stated U.S. Attorney Capers. Mr. Capers thanked the investigative agencies for their outstanding commitment and dedication over the course of this multi-year industry investigation.
“Plaza’s conduct that perpetuated an industry-wide fraud for more than a decade has come to an end. Government contracting agencies, and private clients alike, deserve to be billed strictly for what they bargained for, not duped into overpaying for gratuitous or phantom services. Responsible for overseeing one of the largest government contracting agencies in the region, the Port Authority Office of Inspector General will continue to uproot fraud and corruption within the area’s construction industry,” stated PANYNJ Inspector General Nestor. Mr. Nestor thanked his law enforcement partners for their dedication and professionalism in investigating these practices.
“Fraudulent business practices put consumers, employees, and other industry competitors at a significant disadvantage. Trust, once broken, is difficult to restore. Companies, no matter how large or small, are reminded to exercise due diligence in alerting authorities about crimes of this nature. We, along with our partners, take crimes of fraud seriously, and we will continue to seek justice to the full extent of the law,” stated FBI Assistant Director-in-Charge Sweeney.
“Plaza Construction used deceitful practices to bilk the American taxpayers. The GSA OIG is committed to working with our law enforcement partners to hold accountable contractors who defraud the United States,” said GSA Inspector General Ochoa.
“Plaza Construction defrauded their clients by charging them for work that was not performed and by charging them prohibited fees. Today’s resolution holds Plaza accountable for their actions and deters those who would contemplate similar misconduct in the future. We will continue to work with our law enforcement partners to vigorously pursue fraud in the construction industry that has a negative impact on the American workforce,” stated DOL Inspector General Dahl.
DOI Commissioner Peters said, “These fraudulent overbilling schemes involved some of the highest profile construction projects in New York City, driving up costs, exploiting overtime, and siphoning millions of dollars in unearned, ill-gotten gains. DOI will continue to work with its law enforcement partners to expose and stop this type of corruption, and ensure construction sites and companies are following the rules and operating lawfully.”
The Overbilling Scheme
As alleged in the felony information, Plaza Construction engaged in a fraudulent overbilling scheme that impacted a number of its projects for at least a thirteen-year period. These projects included the Brooklyn Navy Yard, Bronx Terminal Market, Federal Reserve Bank of New York, New York University, and Empire State Building.
Plaza Construction’s role on construction projects was typically that of a construction manager, which often required it to supply workers from certain trade unions and to supervise the work done by subcontractors or trade contractors. From at least 1999 through approximately February 2012, Plaza Construction submitted bills to clients, including government contracting and funding agencies, that contained numerous false statements and material misrepresentations and omissions. From August 2004 through February 2012, Plaza Construction systemically inserted a hidden surcharge in its bills to clients that was specifically prohibited and secretly generated additional revenue to offset certain administrative costs.
Additionally, from at least 1999 until 2009, Plaza Construction also billed its clients for hours not worked by labor foremen from Local 79 Mason Tenders’ District Council of Greater New York and carried out this fraudulent overbilling by: (a) allowing labor foremen to be absent from work for major holidays and certain vacation days; (b) providing between five and seven hours of guaranteed overtime per day, whether worked or not, for a particular senior labor foreman; and (c) adding one to two hours of unworked or unnecessary “guaranteed” overtime per day to the time sheets for certain labor foremen. In furtherance of this overbilling scheme, Plaza Construction completed and submitted time sheets to its clients as though the labor foremen had actually worked.
The Deferred Prosecution Agreement
Pursuant to the deferred prosecution agreement filed today, Plaza Construction accepted responsibility for its fraudulent billing practices and agreed to offer restitution to its clients in the amount of $2,226,270.19 and pay a penalty of $5,619,269.92 and forfeit $1,350,317.43 to the government over a two-year period. In consideration of Plaza Construction’s remedial actions to date and its commitment to, among other actions: (a) accept and acknowledge responsibility for its conduct; (b) continue its cooperation; (c) make restitution available to victims; and (d) make the payment of forfeiture and a financial penalty to the government; the government agreed to defer the prosecution for a period of 24 months and to obtain an exclusion of time to allow Plaza Construction to demonstrate good conduct and compliance with the terms of this agreement.[1] Plaza Construction’s remedial measures include the creation of the positions of General Counsel, Associate General Counsel and Compliance Director at the company; establishing a Compliance Committee; instituting annual training for all officers and non-union employees regarding its Code of Business Ethics; establishing an ethics hotline for employees to report ethics violations or concerns; and the revision of time sheet recording and client billing policies.
* * *
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Whitman Knapp and Jonathan P. Lax are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
PLAZA CONSTRUCTION LLC
New York, New YorkEDNY Docket No.: 16-CR-532 (NGG)
[1] The request for the exclusion of time is pending before the Court.
Pittsburgh Man Facing Charges Relating to the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of production, attempted production, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The seven-count Superseding Indictment, returned on Oct. 11, named George Orbin, 61, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Superseding Indictment, on or about Dec. 10, 2011, April 8, 2013, June 10, 2013, and June 11, 2013, Orbin employed, used, persuaded, induced, enticed, and coerced minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. The Superseding Indictment further alleges that on or about August 11, 2012, and June 3, 2013, Orbin attempted to employ, use, persuade, induce, entice, and coerce minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors. Also, on or about Sept. 10, 2013, Orbin knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 190 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County District Attorney’s Office conducted the investigation leading to the Superseding Indictment in this case.
A Superseding Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.justice.gov/psc.
Pair Sentenced on Methamphetamine Conspiracy ChargesRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencings of a pair of individuals charged with conspiring to distribute methamphetamine.
Rebel Steiner Akers, 60, of Cana, Virginia, previously pled guilty in the United States District Court for the Western District of Virginia in Roanoke to one count of conspiring to distribute 500 grams or more of methamphetamine. Yesterday in District Court, Akers was sentenced to 127 months in federal prison.
Sharon Denise Gallimore, 38, also of Cana, previously pled guilty to one count of conspiracy to distribute 50 grams or more of methamphetamine. Yesterday in District Court, Gallimore was sentenced to 127 months in federal prison. A third conspirator, Lindsey Berrier, was sentenced last week to 84 months on similar charges.
The investigation of the case was conducted by the Drug Enforcement Administration, the Carroll County Sheriff’s Office and the Surry County, North Carolina Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Owner and Operator of Asbestos Removal Training Course Pleads Guilty to Providing False CertificationsRead the Press Release
The former owner of a company that provided federally-mandated training for construction firms working with asbestos pleaded guilty today to falsifying documents as part of a scheme to violate the Asbestos Hazard Emergency Response Act, announced U.S. Attorney Annette L. Hayes. ISAAC COLE, 54, of Kent, Washington, owned and operated Cole and Associates, Inc., a business licensed by Washington State to provide asbestos training courses for asbestos workers and supervisors in exchange for a course enrollment fee. COLE admitted in his plea agreement that he took additional fees to provide falsified certifications to people he knew had not actually taken the course. Sentencing before U.S. District Judge John C. Coughenour is scheduled for January 13, 2017.
“Asbestos is a dangerous substance, which is why state and federal authorities require those who work with it to receive annual training on how to safely handle it,” said U.S. Attorney Annette L. Hayes. “This defendant put workers and the public at risk by selling false certifications for asbestos training. Like this defendant, those who flout our environmental laws will be held to account.”
Cole and Associates, Inc. was licensed from 1998 to the present to provide asbestos training courses. According to the plea agreement, between 2013 and 2016, ISAAC COLE caused the company to certify that various asbestos workers had successfully completed required safety courses when they had not done so. COLE required workers seeking these fraudulent course certifications to pay an additional fee beyond the fee Cole and Associates charged students who actually attended the classes. After receiving these payments, COLE directed his employees to certify to L&I that the asbestos worker had attended the federally-mandated training program, when in fact COLE knew the asbestos worker had not undergone any of the training. COLE encouraged the participants to claim they had attended training on dates when they were on vacation (rather than on dates when they were working) so that L&I could not compare work records to class attendance records and determine that the participants were making false reports. At least four Cole and Associates employees participated in this scheme at COLE’s instruction. COLE is no longer associated with the business.
“The health threats posed by asbestos exposure are well-known and real, and any business that issues asbestos abatement training certificates without providing legitimate training puts both workers and the public at risk,” said Jeanne Proctor, Special Agent-in-Charge of EPA’s Criminal Investigation Division in the Pacific Northwest. “EPA will continue to hold accountable any firm that illegally pursues financial gain without regard for people’s health.”
“I will not tolerate people who flout environmental laws to make a quick buck,” said Attorney General Bob Ferguson. “My office, working with our state and federal partners, will hold accountable those who threaten the environment and public health.”
“Asbestos is extremely hazardous to workers and the public. That’s why training on the proper ways for workers to safely handle it is critical and required,” said Anne Soiza, head of L&I’s Division of Occupational Safety and Health. “This sham training put people at risk. Our hope now is that nobody affected will develop asbestos-related cancer or another fatal disease because of this criminal carelessness.”
Under the terms of the plea agreement the government will recommend a sentence of probation, and may seek fines or other penalties. COLE has agreed that as a condition of his probation he will have no further participation in the asbestos training business.
The case was investigated by the Environmental Protection Agency (EPA) and the Washington State Department of Labor and Industries. The Washington State Attorney General’s Office assisted with the investigation.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
One Pleads Guilty, Two Sentenced in Conspiracy to Traffic Heroin Using MegabusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEVIN GONZALES, age 25, of Houston, pled guilty today to conspiracy to distribute and to possess with intent to distribute over one kilogram of heroin. GONZALES is facing not less than 10 years and a maximum of life imprisonment, as well as a possible fine of up to $10,000,000. U.S. District Judge Carl J. Barbier will sentence GONZALES on January 12, 2017.
Also today, MARTHA QUINONES, age 51, of Houston, and REGINALD WASHINGTON, age 33, of New Orleans, were sentenced after having previously pled guilty to the same heroin conspiracy. Judge Barbier sentenced QUINONES to 120 months of incarceration, to be followed by 5 years of supervised release. Judge Barbier sentenced WASHINGTON to 120 months of incarceration, to be followed by 8 years of supervised release.
These three defendants were charged in a 21-count Superseding Indictment on September 18, 2015. According to court documents, the Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central Citys. During the timeframe of this conspiracy, GONZALES and QUINONES traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution by WASHINGTON and others in the New Orleans area.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), St. Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution
Oklahoma Man Sentenced to Six Years in Federal Prison for Child PornographyRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Patrick Kellam, age 43, of Broken Bow, Oklahoma, was sentenced to 72 months in federal prison and fifteen (15) years of supervised release on one count of Transportation of Child Pornography. The sentencing hearing took place before the Honorable Susan O. Hickey in the United States District Court in Texarkana.
According to the Plea Agreement, in March of 2013, the National Center for Missing and Exploited Children (NCMEC) had been notified that a cell phone and email address confirmed to belong to customer Patrick Kellam accessed and attempted to upload images of minors engaged in sexually explicit conduct. NCMEC notified the Arkansas State Police who turned the investigation over to Homeland Security Investigations (HSI) who were able to locate Kellam in Broken Bow after he had moved there from Arkansas. Agents contacted him at his home, and he acknowledged that he did access images of minors engaged in sexually explicit conduct and knew it as wrong. He admitted that child pornography was on his cell phone and that he had been downloading the images from different websites for some time. The devices that he had been using since 2013 were turned over to the Arkansas State Police who conducted a forensic analysis where they found child pornography on all of the devices. When Kellam moved from Arkansas to Oklahoma he transported in interstate commerce 67 images of child pornography, one of which depicted a child between the age of 6 – 9 years old being sexually assaulted by an adult male.
Kellam was indicted by a federal grand jury in March, 2016 and pleaded guilty to the charge in May, 2016.
“HSI works everyday with our state and local law enforcement partners to ensure the perpetrators of these despicable crimes are brought to justice”, said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “We will continue to aggressively investigate any allegations of child exploitation and seek justice for the victims.”
The investigation was led by Homeland Security Investigations and the Arkansas State Police. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Nursing Home Operator and Director of Long Term Care to Pay $2.5 Million to Settle False Claims for Rehabilitation TherapyRead the Press Release
BOSTON –Haverhill-based skilled nursing facility operator Whittier Health Network, Inc., and its Director of Long Term Care, Leo Curtin, have agreed to pay $2.5 million to resolve allegations concerning inflated Medicare claims.
The agreement announced today concerns rehabilitation therapy that Massachusetts-based Therapy Resources Management (TRM) purportedly provided at Whittier facilities in Massachusetts and New York. The settlement resolves allegations that Whittier and Mr. Curtin failed to take sufficient steps to prevent TRM from engaging in a pattern and practice of fraudulently inflating the reported amounts of therapy provided to Medicare Part A patients in Whittier facilities. Specifically, the facilities submitted bills for therapy that allegedly did not occur as reported, because the therapists were actually conducting initial evaluations when they claimed to be providing therapy. In addition, the therapists reported therapy time using estimates that often were rounded up from the actual minutes of therapy provided, despite Medicare rules specifically prohibiting the reporting of estimated or rounded numbers of minutes.
“This settlement and last week’s settlement with another TRM-served nursing home chain, Health Concepts, are the latest in a series of resolutions involving inflated Medicare billing at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz. “We will continue our efforts to ensure that the provision of care in nursing facilities is based on patients’ clinical needs rather than the financial interests of the companies providing care.”
“Whittier Health Network put its financial gain ahead of the care of their patients,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to aggressively investigate skilled nursing facilities that inflate their billing and exploit the nation’s healthcare system.”
“Patients and taxpayers rightly expect nothing less than suitable, high-quality health care,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “Providers more concerned with increasing Medicare profits, though, can expect my agency working with law enforcement partners to aggressively investigate and prosecute.”
HHS Hotline. The government encourages anyone with information about the practices described above, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services Office of Inspector General Hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://forms.oig.hhs.gov/hotlineoperations/.
This matter was investigated by the Department of Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; and the Department of Veterans Affairs, Office of Inspector General. The case was handled by Assistant U.S. Attorney Gregg Shapiro of Ortiz’s Affirmative Civil Enforcement Unit.
New York Man and Springfield Relative Sentenced for Cashing Fraudulent Tax Refund ChecksRead the Press Release
BOSTON – A New York man and his sister-in-law were sentenced in U.S. District Court in Springfield in connection with a scheme to cash fraudulent tax refund checks.
Robert Evans, 54, of Wallkill, NY, was sentenced today by U.S. District Court Judge Mark G. Mastroianni to two years of probation including three months of home confinement and ordered to pay $517,714 in restitution. In January 2016, Evans pleaded guilty to one count of theft of government money. Evelyn Manzueta, 52, of Springfield, was sentenced on Oct. 6, 2016, by U.S. District Judge Timothy S. Hillman to one year in prison, three years of supervised released and ordered to pay $1,377,376 in restitution. In June 2016, she pleaded guilty to theft of government property.
From January 2012 to May 2013, Manzueta orchestrated the cashing of 236 fraudulent tax refund checks. She cashed nearly $500,000 through her own accounts and enlisted friends and family members, including her brother-in-law Evans, to cash the remaining checks. Evans cashed $517,714 through his accounts. In total, $1,377,376 in fraudulent tax returns were cashed through the scheme.
The U.S. Department of Treasury issued the checks based on tax returns, submitted by unknown individuals, which were later determined to be fraudulent. Although the tax returns used the names and Social Security numbers of real people living in Puerto Rico, their addresses were falsely listed as Massachusetts and New York. The tax returns also contained false employment information. Both Evans and Manzueta, knowing the tax return checks were fraudulent, cashed them through their bank accounts.
This case is part of an ongoing effort to prosecute perpetrators of Stolen Identity Refund Fraud (SIRF) schemes. In these schemes, individuals use stolen identities to steal money from the U.S. Treasury by filing fake tax returns that claim tax refunds. SIRF crimes are often perpetrated by large criminal enterprises with individuals at all stages of the scheme: those who steal the Social Security Numbers and other personal identifying information, those who file false returns with the IRS, and those who facilitate obtaining the refunds. These criminal enterprises exploit the speed and relative anonymity of highly automated systems that store personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly. The IRS estimated that, in 2013, the government lost $5.8 billion to SIRF schemes.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office prosecuted the case.
New York Man Played Role in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Jamaica, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Adetunji Gbadegeshi, 59, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Gbadegeshi used the hundreds of stolen identities found in his house to open bank accounts that were used as repositories for fraudulently obtained federal tax refunds. The money would then be removed from the accounts and distributed to the co-conspirators.
Judge Cercone scheduled sentencing for March 3, 2017. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Gbadegeshi.
New Jersey Man Charged with Stealing Employer’s ‘As Seen on TV’ Trade Secrets and Attempting to Sell Them to CompetitionRead the Press Release
NEWARK, N.J. – An employee of a privately-held corporation that distributes “As Seen On TV” products was arrested today and charged with theft of trade secrets and wire fraud, U.S. Attorney Paul J. Fishman announced.
Ralph Mandil, 37, of West Long Branch, New Jersey, was arrested by special agents of the FBI following a two-month sting operation in which he offered to sell to undercover agents inside information about his employer’s business. He is charged by complaint with one count of theft of trade secrets and one count of wire fraud. He will appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to documents filed in this case and statements made in court:
The products sold by Mandil’s employer (Victim 1) include electrical and non-electrical appliances, beauty and personal care, pet care, fitness, auto and outdoor products, which are frequently marketed via television ads and are commonly sold at large retailers such as Walmart, generating substantial annual revenues.
Between Aug. 1, 2016, and Oct. 12, 2016, Mandil allegedly exchanged emails, phone calls and held meetings with people he believed were representatives of a New Jersey-based competitor of Victim 1. The individuals he was communicating with were, in fact, government agents outfitted with audio/video recording devices.
Throughout those communications, Mandil allegedly offered to provide the agents with proprietary trade secrets belonging to Victim 1, including unreleased product names, specifications, artwork, advertising, market data, manufacturing and other information, in addition to providing them with access to Victim 1’s “drop box,” or cloud storage account, in exchange for $197,500.
Mandil also allegedly provided the government agents with samples of the merchandise and trade secrets he could steal from Victim 1. During those exchanges Mandil confirmed that the proprietary information he was selling was worth “millions.” In exchange for these samples, Mandil was paid $10,000.
Law enforcement confirmed that if a competitor was able to preview this information before Victim 1 could release a product to the public, the competitor could use the market data and other proprietary information to obtain a tactical advantage over Victim 1 in the marketplace. A competitor could steal Victim 1’s product designs, undercut its prices and push competing products to retailers before Victim 1. Victim 1’s representatives estimated that the proprietary information Mandil was offering to sell was worth tens of millions of dollars in revenue to Victim 1 and its competitors.
The theft of trade secrets count with which Mandil is charged carries a maximum potential penalty of 10 years in prison. The wire fraud count with which Mandil is charged carries a maximum potential penalty of 20 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Navajo Man from Nageezi, N.M., Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Henderson Castillo, 27, an enrolled member of the Navajo Nation who resides in Nageezi, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year and a day in prison for his conviction on federal assault charges. Castillo will be on supervised release for one year after he completes his prison sentence.
Castillo was arrested on Dec. 28, 2015, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. According to the complaint, on Dec. 4, 2015, on the Navajo Indian Reservation in Sandoval County, N.M., Castillo and another man attacked the victim, hitting the victim in the face, kicking his body and face, and hitting the victim in the left arm and back with an ax. The victim sustained an open fracture to the bone between his elbow and shoulder that required two surgeries. Castillo subsequently was indicted and charged with assault with a dangerous weapon and assault resulting in serious bodily injury.
On June 24, 2016, Castillo pled guilty to both counts of the indictment. In entering the guilty plea, Castillo admitted that on Dec. 4, 2015, he and another man got into a verbal altercation with the victim, and Castillo began to physically assault the victim. Castillo struck and kicked the victim several times, and then struck the victim with an ax, causing the victim to suffer an open fracture on his arm that required surgery to repair.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Sarah Mease.
Muskogee Man Sentenced to 120 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that DERRICK DEJUAN WOOTEN, age 24, of Muskogee, Oklahoma, was sentenced to 120 months of imprisonment, followed by 36 months of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about November 17, 2015, within the Eastern District of Oklahoma, the defendant, DERRICK DEJUAN WOOTEN, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm. WOOTEN was convicted by a federal jury in March, 2016.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
The charges are a result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation, Eastern District Violent Crimes Task Force. WOOTEN was remanded into the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
More Than 30 Indicted in Operation Targeting Kingston Drug Trafficking OrganizationRead the Press Release
ALBANY, NEW YORK – A federal grand jury yesterday indicted 25 members of a Kingston-based drug trafficking organization that distributed large quantities of cocaine throughout the Hudson Valley. In addition, 6 defendants face firearms charges, 5 defendants are charged with possessing cocaine with the intent to distribute it, and 5 defendants are charged with possessing heroin with the intent to distribute it.
The announcement was made by U.S. Attorney Richard S. Hartunian; Angel M. Melendez, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Paul J. Van Blarcum, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); and New York State Police Superintendent George P. Beach II.
Law enforcement officers arrested defendants this morning in Ulster and Dutchess Counties, and elsewhere in the Hudson Valley, and the defendants are being arraigned today in Albany before U.S. Magistrate Judge Daniel J. Stewart. The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.
U.S. Attorney Richard S. Hartunian stated: “Today’s arrests are the result of a major, multi-agency effort to dismantle a sophisticated drug trafficking organization that was based in Kingston, distributed drugs throughout the Hudson Valley, and had sources of supply in New York City and California. Our goal is not only to arrest drug dealers, but also to improve the quality of life in the places where they operated. The teamwork on display in this operation is integral to our efforts to preserve public safety and low-crime communities. We thank HSI, the Ulster County Sheriff’s Office, the New York State Police, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshal, and the U.S. Attorney’s Office for the Southern District of New York.”
HSI-NY Special Agent in Charge Angel M. Melendez stated: “These gang members have operated openly with a brazen disregard for law enforcement. Today’s arrests show our collective resolve to dismantle the street gangs that are threatening our neighborhoods and return public spaces to the residents who should be free to enjoy them. HSI’s collaboration with federal, state and local partners has resulted in fewer gang members menacing the streets of Kingston and Poughkeepsie.”
Ulster County Sheriff Paul J. Van Blarcum stated: “I am very proud of the cooperation among all agencies involved in this operation. Teamwork is the only way to get things accomplished. Organized criminal activity, especially that involving illegal weapons, presents the public and law enforcement with additional challenges and concerns, and it simply cannot be tolerated. We in law enforcement will continue to use every tool at our disposal to combat the illicit narcotics trade and all types of organized criminal activity.”
New York State Police Superintendent George P. Beach II said: “This case speaks to the tremendous inter-agency coordination and cooperation necessary to get illegal drugs off our streets. As a result of this effort, a major Hudson Valley drug trafficking operation has been shut down, and drugs and weapons have been seized. I want to thank our State Police members, and our federal and local partners, for their hard work on this case. These arrests send a clear message that we will not tolerate this activity in our communities.”
In connection with this investigation, law enforcement officers have seized 20 firearms, as well as approximately 5 kilograms of cocaine, 153 grams of heroin, 90 grams of crack cocaine, 1.5 kilograms of marijuana, and 75 oxycodone pills. The following defendants are charged in a cocaine distribution conspiracy:
Name Age Residence Minimum and Maximum Penalties Marcus Fisher 39 Poughkeepsie 10 years (minimum); life (maximum) Romell Hearn 37 Poughkeepsie 10 years (minimum); life (maximum) Recardo Langston 31 Kingston 10 years (minimum); life (maximum) Jalen Allen 23 Kingston 20 years (maximum) Jonathon Jones 46 Port Ewen 10 years (minimum); life (maximum) Eunice Allen 57 Kingston 20 years (maximum) Emiliano Alonso 39 Miami Beach, FL 20 years (maximum) Guy Cain 34 New Windsor 20 years (maximum) Jamal Clinton 39 Lake Katrine 20 years (maximum) Marc Douglas 37 Highland 20 years (maximum) Kevin Drake 44 Kingston 20 years (maximum) Jose Francisquini 41 Connelly 20 years (maximum) Greg Hardy 42 Kingston 20 years (maximum) Mark Howard 43 Poughkeepsie 20 years (maximum) Cordal Johnson 39 Beacon 20 years (maximum) Phillip Keith 31 Lake Katrine 20 years (maximum) Kareem McFarlane 31 Highland 20 years (maximum) Robert Medley 38 Kingston 20 years (maximum) Michael Monsanto 28 Kingston 20 years (maximum) Ryan Rios 34 Kingston 20 years (maximum) Dwan Scafe 28 Poughkeepsie 20 years (maximum) Dionn Spencer 28 Poughkeepsie 20 years (maximum) Leonard Vandyke 41 Kingston 20 years (maximum) Daniel Williams 32 Hyde Park 20 years (maximum) Keshia Williams 28 Poughkeepsie 20 years (maximum)In this same indictment, Jalen Allen faces additional charges of possession with the intent to distribute heroin, possession of a firearm with an obliterated serial number, and possession with the intent to distribute cocaine. Recardo Langston is additionally charged with 2 counts of possession with intent to distribute controlled substances (crack and cocaine), as well as 5 counts of possession with the intent to distribute cocaine.
Additionally, four separate indictments charge the following defendants and crimes:
Name Age Residence Charges Maximum Penalties Robert Curry 36 Poughkeepsie Unlawful possession of firearm; possession of cocaine with intent to distribute 20 years Jadon Douglas 28 Poughkeepsie Unlawful possession of firearm; possession of cocaine with intent to distribute 20 years Jeffrey Keith 25 Kingston Unlawful possession of firearm; possession of cocaine with intent to distribute 20 years Kashawn Watson 23 Kingston Unlawful possession of firearm; possession of heroin with intent to distribute 20 years Jahkeem Ryan 22 Port Ewen Possession of heroin with intent to distribute 20 years Maurice Wood 31 Kingston Unlawful possession of firearm; possession of heroin with intent to distribute 20 yearsA defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
These arrests were coordinated with an investigation in the Southern District of New York that targeted cocaine distributors operating in and around Poughkeepsie. As a result of that investigation, 15 defendants were indicted for cocaine trafficking and other crimes in an indictment also unsealed today in federal court in White Plains.
This case is being investigated by Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); the Ulster County Sheriff’s Office in conjunction with URGENT; an inter-agency taskforce targeting drug dealers and gang members in Ulster County; the New York State Police; and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the U.S. Marshal for the Northern District of New York and the Ulster County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Robert A. Sharpe and Solomon B. Shinerock. Related cases are being prosecuted by the U.S. Attorney’s Office for the Southern District of New York and the District Attorney’s Offices for Ulster and Dutchess Counties.
Monroe County Firearms Dealers Sentenced to Prison for National Firearms Act ViolationsRead the Press Release
Former firearms and ammunition dealers were sentenced today to prison for violating the National Firearms Act.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rick Ramsay, Sheriff, Monroe County Sheriff’s Office, made the announcement.
Jarvis Nelson Osorio, 37, of Miami Lakes, Thomas Joseph Willi, 52, of Key West, and Outbreak Ordnance, LLC, a federally licensed firearms dealer located in Big Pine Key, each previously pled guilty to one count of knowingly receiving and possessing an unregistered .38 caliber firearm (a “cane gun”), a weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
On October 13, 2016, U.S. District Court Judge Jose E. Martinez sentenced Osorio and Willi to 30 months’ imprisonment, to be followed by 3 years of supervised release and imposed a $500,000 fine on Outbreak Ordnance, LLC. The Court also ordered that Willi and Outbreak Ordnance, LLC must surrender their federal firearms licenses, which are required in order to engage in the business of dealing in firearms
According to court documents, Osorio and Willi owned and operated co-defendant Outbreak Ordnance, LLC, a firearms and ammunition retail store. Outbreak Ordnance, LLC was licensed to deal in National Firearms Act (“NFA”) weapons. The National Firearms Act of 1934 regulates the manufacture, sale, and transfer of certain specially dangerous and concealable weapons, including short-barreled shotguns, short-barreled rifles, any weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, machineguns, silencers, and destructive devices.
According to court documents and information disclosed during court proceedings, on July 16, 2015, ATF agents executed a search warrant at Outbreak Ordnance, LLC’s retail store, after Willi and Osorio sold firearms to a convicted felon and a minor. ATF agents discovered records showing that the defendants unlawfully acquired fifteen unregistered NFA weapons, including a .38 caliber “cane gun.” ATF agents subsequently recovered the unregistered weapons, several of which had been advertised for sale on Outbreak Ordnance, LLC’s publicly accessible Facebook page.
Mr. Ferrer commended the investigative efforts of the ATF, ICE-HSI, and the Monroe County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Christopher Browne and Adam Fels.
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
Missouri Man Sentenced to Life in Prison for Sex TraffickingRead the Press Release
On October 12, 2016, Marcus DeWayne Thompson, 29, of Park Hills, Missouri, was sentenced for sex trafficking of a minor, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Thompson was sentenced by Chief District Court Judge Michael J. Reagan to life imprisonment and ordered to pay a mandatory $200 special assessment, as well as a $250 fine. Facts presented in court revealed that during a six-week period in June and July 2015, Thompson recruited, transported, and advertised a minor female from Illinois for commercial sex acts in Florida, Georgia and Louisiana. Marcus Thompson, along with his wife, Robin Thompson took and posted sexually explicit pictures of the minor on an internet site as part of an advertisement for sex with the minor. Thompson also arranged prices, services, and meet locations with customers to engage in sex with the minor. Thompson also engaged in sex with the minor on at least five occasions himself. During the sentencing, Judge Reagan characterized Thompson as a "predator" who "sold the minor victim as a commodity." Judge Reagan also stated that Thompson was responsible for both repeatedly raping and facilitating the rape of the minor victim by others.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Daniel T. Kapsak and Monica A. Stump.
Middletown Man Sentenced to 18 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL HUBBARD, 27, of Middletown, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 18 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, this matter stems from “Operation Pacifier,” an FBI investigation into Playpen, a global online forum through which registered users advertised, distributed and accessed child pornography. On February 20, 2015, the FBI seized a computer server hosting Playpen from a webhosting facility in North Carolina. Pursuant to a federal court order in the Eastern District of Virginia, the website operated under FBI supervision February 20 to March 4, 2015. During that time, the FBI collected information to identify members of Playpen.
Playpen had more than 150,000 members who created and viewed tens of thousands of postings related to child pornography. Images and videos shared through the site were highly categorized according to victim age and gender, as well as the type of sexual activity. The site also included discussion forums that included tips for grooming victims and avoiding detection.
The FBI determined that a user name connected to an IP address operating at HUBBARD’s Middletown residence had accessed Playpen for approximately 13 hours during the monitoring period. On July 16, 2015, the FBI searched HUBBARD’s residence and seized two laptop computers and two external hard drives. Forensic analysis of the computers and hard drives revealed approximately 354 videos and 6,851 images of child pornography, including images and videos of prepubescent minors and images and videos that portrayed sadistic or masochistic conduct.
HUBBARD was arrested on July 16, 2015. On July 5, 2016, he pleaded guilty to one count of possession of child pornography.
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.
The case is being prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
To report cases of child exploitation, please visit www.cybertipline.com.
Meridian Man Sentenced to 26 Years in Prison for Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug CrimeRead the Press Release
BOISE – Brian Weaver Cluff, 44, of Meridian, Idaho, was sentenced yesterday in United States District Court to 322 months in prison for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug crime, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Stanley A. Bastian from the District of Eastern Washington, sitting by special designation, also ordered that Cluff serve five years of supervised release and forfeit $420,000 in drug proceeds and several firearms. Cluff pleaded guilty on July 6, 2016.
According to evidence presented in court, Cluff conspired with others to distribute large quantities of methamphetamine in the state of Idaho between August of 2015 and February 11, 2016. Cluff held a leadership role within the conspiracy and arranged with co-conspirators for deliveries of methamphetamine in Ada and Canyon Counties. Investigating officers discovered the conspiracy and were able to make several controlled purchases of methamphetamine from Cluff. During a search of Cluff’s business on February 11, 2016, officers located 10.764 kilograms of methamphetamine, 3.449 kilograms of marijuana, 44 grams of cocaine, 1.3 grams of heroin, and 13 firearms. One of the firearms recovered from Cluff’s shop was a sawed-off shotgun.
The case was investigated by the Ada County Sheriff’s Office, the Drug Enforcement Administration, the City County Narcotics Unit of Canyon County, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.