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13 October 2016
Member of the Pagans Outlaw Motorcycle Club Sentenced to 9 Years in Prison for Role in Prescription Pill MillRead the Press Release
PHILADELPHIA – Today, a federal judge sentenced Joseph Mitchell, Sr., 40 to 9 years in prison for his role in a prescription pill mill that trafficked oxycodone and other dangerous and addictive opioids. United States District Court Judge Nitza I. Quiñones Alejandro also ordered the defendant to serve 3 years of supervised release upon release from prison, and pay a special assessment of $100. The court also entered a judgment of forfeiture.
On July 14, 2015, a grand jury in Philadelphia charged Mitchell, along William O’Brien, a former doctor of osteopathic medicine, and eight codefendants with conspiring to distribute controlled substances. Mitchell was a member of the Pagans Motorcycle Club (“Pagans”), an outlaw biker gang known for violence and drug dealing. O’Brien worked together with Pagans, and their associates, to operate a “pill mill” out of his medical offices. O’Brien wrote fraudulent prescriptions for oxycodone and other drugs, while the Pagans and their associates recruited “pseudo-patients” to buy the fraudulent prescriptions. O’Brien charged $250 cash for the first appointment to obtain prescriptions for controlled substances and $200 cash for each subsequent visit. Oxycodone (30 mg) was in high demand by drug dealers who could sell each pill on the street for $25 to $30. O’Brien sold prescriptions for these dangerous and addictive drugs to hundreds of “pseudo-patients.” After filling the prescriptions, the Pagans and their associates resold the pills on the street. The investigation showed that from March 2012 to January 2015, more than 700,000 pills containing oxycodone and other Schedule II controlled substances were distributed by members of the conspiracy.
On October 5, 2016, O’Brien, who was convicted by a jury in summer 2016, was sentenced to 30 years in prison. The remaining codefendants in the case have pleaded guilty and await sentencing.
The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary Beth Leahy and David E. Troyer.
Martin County Resident Convicted of Bail Bond ViolationRead the Press Release
Yesterday, a Martin County resident was convicted of violating the conditions of his bail bond, after he failed to appear for sentencing on federal charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On March 22, 2016, Mark Alan Yoder, 55, of Hobe Sound, was convicted by a federal trial jury on charges related to his participation in bank and mail fraud schemes. Following his conviction, Yoder was released on bail pending sentencing. Yoder failed to appear for sentencing and was subsequently convicted of the sole count of the indictment, failure to appear in court, in violation of Title 18, United States Code, Section 3146. Yoder faces a statutory maximum sentence of up to 10 years in prison for the bond jumping conviction, to run consecutive to the sentence imposed for the underlying crimes. Senior United States District Judge Paul C. Huck has not yet scheduled a sentencing date for Yoder in the two pending cases.
According to trial testimony and court documents, Yoder was permitted to remain free on bail pending sentencing, following his trial conviction on charges of bank and mail fraud schemes. Yoder filed with the court a personal declaration that he refused to recognize the Court’s authority over him and would not be attending any future hearings or comply with any reporting requirements. After multiple notices from the Court and a personal visit from the United States Probation Office, Yoder failed to appear as required at the scheduled hearing in the Fort Pierce Courthouse, for sentencing on the original criminal conviction. An arrest warrant issued, and the United States Marshals Service took Yoder into custody.
According to testimony in the original fraud trial, on October 18, 2010, Yoder received a traffic citation, for driving without a seat belt, from a Tequesta Police Department Officer. Yoder objected to the ticket, demanded to speak to a supervisor and denied the officer had any authority for the stop. The officer’s supervisor arrived on the scene to provide assistance. Beginning in the months following the traffic stop and into early 2011, Yoder sent, by mail, a succession of fraudulent formal demands and notices, claiming the two police officers and the Tequesta Police Department each owed him $150,000 in damages. Yoder also sent similar demands for large damage payments to officers and executives of the bank that was foreclosing upon his home. Not long after the final judgment of foreclosure was entered in the state court, Yoder filed a fraudulent mechanic’s lien against the bank’s property, falsely claiming that he was owed thousands of dollars for his maintenance of the home prior to the foreclosure. Yoder renewed the fraudulent mechanic’s lien, with successive filings, in 2014 and 2015.
Mr. Ferrer commended the investigative efforts of the FBI and the United States Marshals Service. Mr. Ferrer also thanked the Martin County Sheriff’s Office, the Tequesta Police Department, and the Office of the Clerk of the Circuit Court for Martin County, Florida, for their assistance with this investigation. The case was prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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.
Manager of Orlando-Area Heroin Trafficking Organization Pleads GuiltyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ernesto Cabanas-Torres (41, Orlando) today pleaded guilty to conspiracy to distribute and possess with the intent to distribute heroin. He faces a minimum mandatory sentence of 10 years, up to life, in federal prison.
Cabanas-Torres was indicted on March 23, 2016, along with co-conspirators Angel Manuel Fontanez, Alexis Fontanez Nieves, Zuleyka Jeanette Colon-Rivera, Pedro Juan Rivera-Aviles, Wilbert Joel Alequin-Pagan, Robert Sautner, and Emmanuel Verges. To date, five of the eight defendants have been convicted of a federal drug offense. A trial date for the remaining individuals is currently set for October 24, 2016.
According to court documents, a drug trafficking organization whose members referred to themselves as “La Compania” or “the Company” used a telephone number (“the heroin line”) that frequently changed to sell heroin to customers primarily in the Orlando tourist district, near International Drive. Customers would call the heroin line and arrange to purchase heroin from a member of the organization. The heroin line changed hands from one member of the organization to the next, as heroin was sold during two 12-hour shifts, seven days a week.
On February 6, 2015, the leader of the organization, Angel Manuel Fontanez, was arrested by officers from the Orlando Police Department for trafficking heroin in the parking lot of a business located on Major Boulevard in Orlando. After Fontanez’s arrest, Cabanas-Torres and other co-conspirators assumed leadership roles in the conspiracy. Cabanas-Torres controlled the heroin line at times, and directed the activities of other co-conspirators. He also used his Orlando business, the Majestik Tattoo and Barbershop, to supply heroin to sellers and for meetings between the co-conspirators. Cabanas-Torres also personally sold heroin to undercover agents and informants on seven separate occasions between January and August 2015.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
Man Charged with Robbing Two Philadelphia BanksRead the Press Release
An Indictment1 was returned today charging Charles Richard Boehm, 46, formerly of Erie, Pennsylvania, with two counts of bank robbery, announced United States Attorney Zane David Memeger.
The indictment alleges that Boehm robbed a TD Bank branch in Philadelphia on August 12, 2016, and later robbed a PNC Bank branch in Philadelphia on September 16, 2016.
Boehm faces a maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Las Vegas Man Convicted of Murdering Drug Supplier During 2013 Marijuana TransactionRead the Press Release
LAS VEGAS, Nev. – Following a seven-day trial, a federal jury convicted a Las Vegas man on Oct. 12 of drug and firearm crimes that resulted in the death of a man during a drug deal at a North Las Vegas apartment in November 2013, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Louis Matthews, 35, was convicted by the jury of one count of conspiracy to possess marijuana with intent to distribute and one count of using a firearm during and in relation to a drug trafficking crime resulting in death.
“We are working diligently with our local police departments to help prosecute and convict the criminals who are committing violent crime in Las Vegas,” said U.S. Attorney Bogden. “We will identify those violent criminals who prey on others and ensure that justice is served.”
Matthews faces up to 10 years in prison on the conspiracy charge, and up to life in prison on the firearm charge. He is scheduled to be sentenced by U.S. District Judge James C. Mahan on Jan. 12, 2017.
Three co-defendants were also charged in the scheme. John Thomas, 25, of Las Vegas, pleaded guilty to conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death, and is awaiting sentencing. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and is awaiting sentencing. Angel Juarez, 29, of North Las Vegas, is awaiting trial.
According to the court records and information submitted to the jury, on Nov. 30, 2013, at about 7:00 p.m., defendants Matthews and Thomas arrived at an apartment on East Cheyenne Avenue in North Las Vegas to participate in a deal to purchase 20 pounds of marijuana from the deceased victim, Luciano Madrigal-Herrera. Also present at the apartment were the two other co-defendants, Nunez and Juarez. The victim showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money for the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns and repeatedly shot the victim during an attempt to rob him of the marijuana, causing his death. The defendants took the marijuana and attempted to flee with it. Nunez, in an attempt to prevent Matthews and Thomas from fleeing with the marijuana, shot at both of them with a sawed-off shotgun, striking both Thomas and his vehicle. Thomas and Matthews were ultimately able to escape the scene. Thomas was apprehended later the same night by the North Las Vegas Police Department after officers discovered that his gunshot-riddled vehicle had been left behind at the scene parked in front of the apartment where Madrigal-Herrera had been killed. Matthews was charged after the ensuing investigation led to his identity as the second suspect.
This case was investigated by ATF, the Las Vegas Metropolitan Police Department, and North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Alexandra M. Michael.
Justice Department Outlines Plan to Enable Nationwide Collection of Use of Force DataRead the Press Release
Today, Attorney General Loretta E. Lynch announced several steps by the Department of Justice to enable the nationwide collection of data on law enforcement interactions with civilians, including data related to the use of force by law enforcement officers.
“Accurate and comprehensive data on the use of force by law enforcement is essential to an informed and productive discussion about community-police relations,” said Attorney General Lynch. “The initiatives we are announcing today are vital efforts toward increasing transparency and building trust between law enforcement and the communities we serve. In the days ahead, the Department of Justice will continue to work alongside our local, state, tribal and federal partners to ensure that we put in place a system to collect data that is comprehensive, useful and responsive to the needs of the communities we serve.”
The President’s Task Force on 21st Century Policing called on law enforcement to “collect, maintain and report data . . . on all officer involved shootings, whether fatal or nonfatal, as well as any in-custody death,” and the department is committed to heeding this call. In 2014, Congress passed the Death in Custody Reporting Act (DCRA), which required states and federal law enforcement agencies to submit data to the department about civilians who died during interactions with law enforcement or in their custody (whether resulting from use or force or some other manner of death, such as suicide or natural causes) and authorized the Attorney General to impose a financial penalty on non-compliant states. However, Congress did not impose a similar reporting requirement for non-lethal uses of force by law enforcement. In the absence of a statutory mandate, and in an effort to close this gap, the department is partnering with local, state, tribal and federal law enforcement to provide a means for national data collection. In 2015, and in collaboration with local, state, tribal and federal law enforcement the Federal Bureau of Investigation (FBI) began work on a “National Use of Force Data Collection,” an online portal to collect use-of-force data from law enforcement agencies across the country.
The Attorney General announced additional details regarding these efforts:
- National Use-of-Force Data Collection. At the request of local, state, tribal and federal law enforcement agencies, the FBI has been working with such agencies to develop a National Use of Force Data Collection program. The FBI announced the proposed pilot program last week in the Federal Register. The pilot study will evaluate the effectiveness of the methodology used to collect the data and the quality of the information collected. The FBI is seeking comment from all interested parties, including local, state, tribal and federal law enforcement, civil rights organizations and other community stakeholders. After reviewing and addressing these comments, the FBI will issue a final proposal and plans to begin the pilot data collection program in early 2017. The pilot study participants are expected to include the largest law enforcement agencies, as well as the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and U.S. Marshals Service.
- DCRA Compliance. Earlier this summer, the department’s Bureau of Justice Statistics (BJS) issued a draft proposal outlining its plan for collecting death-in-custody data from state and local law enforcement agencies. Last week, the first public comment period closed, with several thousand comments received. The department is currently reviewing those comments and it plans to issue an updated proposal in the near future.
- Federal Reporting under DCRA. The DCRA requires federal law enforcement agencies to report information on deaths that occur during interactions with federal law enforcement agencies or in their custody, beginning with Fiscal Year 2016 (FY2016) data. FY2016 ended September 30. The Attorney General has issued a memorandum to federal law enforcement agencies formally notifying them of their reporting obligations under the DCRA and directing them to BJS for further coordination.
- Police Data Initiative (PDI). The department’s Community Oriented Policing Services (COPS) Office announced today that it has assumed leadership of the Police Data Initiative (PDI), a data transparency project initiated by the White House in 2015. Through PDI, participating law enforcement agencies commit to publicly releasing at least three policing datasets, which can include data on stops and searches, uses of force, officer-involved shootings, and other police actions. Numerous foundations, organizations and companies have stepped up to help. The PDI currently includes 129 law enforcement agencies, covering more than 44 million people across the country. To assist with this effort, the COPS Office recently awarded the Police Foundation a $750,000 cooperative agreement through FY2016 funding to support PDI. Over the next two years, the Police Foundation will work with a cohort of approximately 100 law enforcement agencies to develop promising practices for police open data usage, support community engagement regarding policing data and provide technical assistance to law enforcement agencies to collect and publish open data sets.
These initiatives demonstrate once again the department’s deep commitment to the ideals of the President’s Task Force. The department will continue to work with local, state, tribal and federal agencies to encourage and support data collection and transparency beyond these projects.
Inmate art for charity auction to benefit West Virginia youth now on display at United States Courthouse in CharlestonRead the Press Release
CHARLESTON, W.Va. - A variety of inmate art is currently on display at the Robert C. Byrd United States Courthouse in Charleston in preparation for a charity auction to benefit West Virginia youth, announced United States Attorney Carol Casto. Federal and state inmates, as well as young people in the custody of the West Virginia Division of Juvenile Services, created the art for “Giving Back with HeART,” a charity art auction. The event is put together by Mission West Virginia, a non-profit organization, in partnership with the West Virginia Division of Corrections, the West Virginia Division of Juvenile Services, Highland Hospital, and some of West Virginia’s federal correctional facilities.
The art on display at the United States Courthouse is entirely provided by inmates and includes handcrafted musical instruments, paintings, pencil drawings, dioramas, leatherwork, and many more examples of unique artistic creations. The charity auction that will feature this art provides a way for inmates serving time in West Virginia to give back to the community and be an integral part of helping others. Proceeds from the auction provide scholarships for youth in West Virginia who experienced foster care or had a parent incarcerated for a year or more during childhood. Research shows that nearly half of former foster youth will end up homeless or incarcerated within the first two years on their own because they lack the skills to live independently. Organizers of this event have found that many of the inmates who contribute art were a part of the foster system themselves at one time.
“I encourage everyone to visit the United States Courthouse to see this impressive art showcase,” said United States Attorney Carol Casto. “This program taps the incredible creativity of these inmates, and provides them the opportunity to give back to children who have been negatively impacted by crime. These folks have value and talent and are sharing it in a positive and productive way to provide opportunities for kids that most of them did not have growing up.”
This year’s charity auction will be held at the Culture Center at the Capitol Complex in Charleston on October 20 at 6:00 p.m., where the art currently on display in the United States Courthouse, as well as additional art created by West Virginia inmates, will be made available for bidding. The art will remain on display at the United States Courthouse until the day before the charity auction. This is the third annual charity auction to feature inmate art. With proceeds from last year’s event, and additional assistance from private donors, Mission West Virginia was able to award $20,000 in scholarships to youth starting college this fall. As the event grows, the eventual goal is to make an award to every scholarship applicant. As a result of the auction, Mission West Virginia was also able to launch “The Bridge,” a program of comprehensive support for children from kindergarten through high school that includes providing academic mentoring and working with foster families on how to best advocate for their children.
Mission West Virginia is a non-profit organization that collaborates with public, private, and faith communities by equipping them to utilize existing resources to form new partnerships, encouraging innovative social change, and building stronger communities in West Virginia. More information about the charity art auction and this art program can be found at http://missionwv.org/giving-back-with-heart/.
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Inland Empire Man Linked to O.C. Gas Station Robberies ArrestedRead the Press Release
SANTA ANA, California – After conducting surveillance on a suspect in a series of armed robberies that targeted Orange County gas stations, federal agents and local authorities last night arrested a Fontana man on federal charges after he allegedly used what appeared to be a handgun to rob a Chevron station in Stanton.
Cyril Wallace, 49, was arrested in Stanton immediately after the robbery by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF) and officers with the Brea Police Department.
After being held in custody overnight, Wallace was charged today in federal court with one count of interference with commerce by robbery (Hobbs Act robbery). At his initial appearance in United States District Court this afternoon, Wallace was ordered held without bond and was ordered to appear for an arraignment on October 31.
The criminal complaint charges Wallace with using an “airsoft” pistol last night to rob a Chevron gas station on Beach Boulevard in Stanton. The clerk behind the counter – who was forced to open the cash register after being threatened with a realistic-looking gun – identified Wallace as the robber minutes after he fled with approximately $111 in cash, according to the affidavit in support of the complaint.
A search warrant attached to the complaint shows that Wallace is the suspect in eight other gas station robberies that took place between August 25 and October 6 in the cities of Fullerton, La Habra, Anaheim, Placentia, Westminster and Buena Park. Authorities linked Wallace to the string of robberies after an investigator with the California Lottery identified Wallace in a “wanted” notice issued by the La Habra Police Department.
“Armed robberies victimize businesses, terrorize employees, and create fear in the community,” said United States Attorney Eileen M. Decker. “The case filed today is the result of excellent work by the ATF and local law enforcement agencies partnering to identify and apprehend a suspect believed to be responsible for a string of robberies which heightened anxiety in the community.”
“ATF prioritizes working with our state and local partners to investigate firearms and violent crimes that victimize businesses and endanger the public,” said ATF Special Agent in Charge Eric D. Harden. “Offenders cannot hide behind shifting geographic jurisdictions when agencies work in concert.”
According to documents filed in the federal case, Wallace has three prior robbery convictions, each of which led to state prison sentences.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of interference with commerce by robbery carries a statutory maximum sentence of 20 years in federal prison.
The case against Wallace is being prosecuted by Assistant United States Attorney Scott D. Tenley.
Idaho Woman Pleads Guilty to Theft of Postal Service PropertyRead the Press Release
BOISE – Tana Stimpson, 51, of Paul, Idaho, pleaded guilty yesterday to misdemeanor theft of postal service property, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Stimpson admitted that on November 27, 2015, she sold a money order in the amount of $360 in her capacity as a U.S. Postal Service employee. Stimpson appropriated the proceeds from this sale, without authorization, for her personal use. From on or about September 29, 2015 through April 8, 2016, Stimpson delayed reporting the sale of approximately 18 money orders by the U.S. Postal Service.
The charge of theft of postal service property is punishable by up to one year in prison, a maximum fine of $100,000, and up to one year of supervised release.
Sentencing is set for January 9, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the United States Postal Service Office of Inspector General.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OSCAR JEOVANY TORRES-LOPEZ, a/k/a OSCAR GEOVANY, age 31, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Indictment for illegal reentry of removed alien previously convicted of an aggravated felony.
U.S. District Judge Carl J. Barbier sentenced TORRES-LOPEZ to 24 months’ imprisonment followed by 3 years of supervised release, and a $100 special assessment. Following his term of imprisonment, TORRES-LOPEZ will be surrendered to the custody of U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, on or about March 24, 2016, TORRES-LOPEZ was found in the United States after having been officially deported and removed on or about November 23, 2009.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement, in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Gretna Man Sentenced to 20 Years Following Mail Fraud ConvictionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELVIN LEWIS II, age 53, of Gretna, was sentenced today after previously being convicted of thirty counts of mail fraud.
U.S. District Judge Carl J. Barbier sentenced LEWIS to served 240 months of imprisonment followed by 3 years of supervised release. Additionally, restitution will be determined in a restitution hearing scheduled for December 1, 2016.
According court records, during the course of and subsequent to his employment by an off-shore services company located in Harvey, LEWIS devised a scheme to defraud various employees of that company and other public servants and officials. As part of his mail fraud scheme, LEWIS caused “demand for payment” letters to be mailed to victims. When his demands were ignored, LEWIS filed fraudulent liens against personal real property of the victims and sent additional demands for payment stating that the liens would not be removed until payment was received.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Gregory M. Kennedy and Jonathan L. Shih were in charge of the prosecution.
Georgia Accountant Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Austell, Georgia pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Olanrewaju Ajetunmobi, 45, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Ajetunmobi, an accountant, used stolen identities supplied by co-defendants to file fraudulent federal tax returns, which falsely claimed farm income and a fuel tax credit in order to generate a tax refund on taxes that were never paid. The fraudulently obtained refunds were then deposited, via wire, into bank accounts which were opened using stolen identities.
Judge Cercone scheduled sentencing for February 6, 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 Ajetunmobi.
Former Prison Guard in Del Rio Sentenced to Federal Prison for Sexual Abuse of a WardRead the Press Release
In Del Rio this afternoon, a federal judge sentenced 59–year-old former prison guard Leticia Martinez Garza of Del Rio to 13 months in federal prison followed by three years of supervised release for having sexual intercourse with an inmate announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On May 4, 2016, the defendant pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, the defendant admitted that between May 15, 2014, and September 18, 2014, while employed as a Laundry, Property and Supply Supervisor at GEO Corrections Val Verde Correction facility in Del Rio, she had sexual intercourse on multiple occasions with an inmate who was under her custodial, supervisory or disciplinary authority.
The case resulted from a joint investigation by the Federal Bureau of Investigation together with the United States Marshals Service and Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Watters and Goran Krnaich prosecuted this case on behalf of the Government.
Former Nebraska Woman Sentenced in Social Security FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on October 13, 2016, United States District Judge John M. Gerrard sentenced Susan Hacker to eight months’ imprisonment, three years of supervised release and ordered her to pay $52,025.82 in restitution following her conviction for Social Security Fraud.
Hacker is the sister of a man who was eligible to receive social security disability payments since 1971. The defendant was the representative payee for her brother’s SSA disability payments. As the representative payee, the defendant had the obligation to receive the payments and use them solely for the benefit of her brother.
Investigation by the Social Security Administration found that Hacker, was using much of the money from her brother’s bank account for her own benefit. More specifically, between December 2001 and January 2013 she used a total of $52,025.82 from her brother’s bank account for her own benefit. State and federal investigation and prosecution authorities have determined that $26,692.48 of the money used was from her brother’s earnings from odd jobs, and $25,333.34 was from the Social Security disability payments.
This case was investigated by the Social Security Administration – Office of Inspector General.
Former Monmouth County, New Jersey, Resident, Admits Collecting Dead Wife’s Monthly Benefit Checks for over Four YearsRead the Press Release
TRENTON, N.J. – A former Monmouth County, New Jersey, resident today admitted collecting Social Security disability checks paid to his wife for more than four years after she died, U.S. Attorney Paul J. Fishman announced.
Brian Unger, 64, formerly of Long Branch, New Jersey, and now a resident of Rincon, Puerto Rico, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court, to an information charging him with one count of theft of government money.
According to documents filed in this case and statements made in court:
In 2008, Unger’s wife applied to the Social Security Administration (SSA) for Disability Insurance Benefits due to illness which prevented her from working. The SSA maintains the program so eligible individuals who have serious physical or mental impairments are able to replace part of their lost earnings. In March 2008, the SSA determined that Unger’s wife was eligible for the program and began to electronically deposit money her bank account. She died in June 2009, but Unger failed to notify the SSA.
The SSA continued to issue direct deposits of benefit payments into Unger’s wife’s bank account through September 2013. Between June 2009 and October 2013, Unger accessed his deceased wife’s bank account on multiple occasions and used the funds deposited by the SSA on her behalf for his own personal expenses. He admitted that he took $82,854 in SSA benefits that had been improperly distributed to his deceased wife. He also admitted that he did not inform the SSA of his wife’s death because he wanted to continue to collect her disability benefits, which had been converted to Retirement Insurance Benefits in approximately May of 2013, when she would have turned 65, because he knew that informing the SSA of her death would have stopped the flow of those benefits.
The charge to which Unger pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000. Sentencing is scheduled for Jan. 18, 2017.
U.S. Attorney Fishman credited special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John F. Grasso, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Charles J. Uliano Esq., West Long Branch, New JerseyFormer Labor & Training Employee to Plead Guilty to Fraud, Theft of FundsRead the Press Release
PROVIDENCE, R.I. – According to documents filed in federal court in Providence today, Ambulai R. Sheku, 37, of Providence, a former Senior Employment Interviewer with the Rhode Island Department of Labor and Training (DLT), has agreed to plead guilty to an information charging him with conspiracy to commit mail fraud, theft of government funds and accessing a protected computer to commit fraud.
It is alleged in the information that between June 2009 and February 2015, Sheku used his position at DLT and his authorized access to DLT computer files to participate in a scheme to make unauthorized changes to benefit recipients’ files which resulted in the fraudulent disbursement of more than $508,000 of unemployment insurance benefits.
Charges filed in this matter are announced by United States Attorney Peter F. Neronha; Lieutenant Colonel Kevin M. Barry, Acting Superintendent of the Rhode Island State Police; and Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations.
According to court documents, it is alleged that Sheku used his authorized access to DLT computers and computer files to obtain unemployment benefits for himself and others to which they were not entitled. It is alleged that as part of the scheme Sheku changed the mailing addresses of legitimate unemployment insurance beneficiaries, thus causing banks to mail unemployment insurance benefits to individuals not entitled to receive them; without authorization, extended the expiration of benefits for members of the conspiracy; caused fraudulent claims, including claims by individuals who were employed and thus ineligible for unemployment benefits, to be approved and dispersed; increased the balance of unemployment insurance benefits; and fraudulently removed blocks or “stops” on benefit payments, thus allowing coconspirators to continue receiving benefits to which they were not entitled.
It is alleged in court documents that the scheme resulted in a loss to the Rhode Island Department of Labor and Training of approximately $508,691, of which approximately $350,606 were federal funds.
Sheku made an initial appearance in U.S. District Court today before U.S. District Court Magistrate Judge Lincoln D. Almond. An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter continues to be investigated by the United States Attorney’s Office, Rhode Island State Police and the U.S. Department of Labor, with the assistance of the Rhode Island Department of Labor and Training, and the U.S. Postal Inspection Service.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Former Cay Clubs Chief Financial Officer Charged with Bank Fraud and Tax OffensesRead the Press Release
The former Chief Financial Officer of Cay Clubs Resorts and Marinas (Cay Clubs) was arrested earlier today in Orlando, Florida, on federal bank fraud and criminal tax offense charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
David W. Schwarz, 60, of Orlando, was charged by indictment with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, three counts of bank fraud, in violation of Title 18, United States Code, Section 1344, three counts of false statements to a financial institution, in violation of Title 18, United States Code, Section 1014, and one count of interference with the administration of the IRS, in violation of Title 26, United States Code, Section 7212(a) (Case No. 16-10039-CR-Moore). If convicted, Schwarz faces a statutory maximum of 30 years in prison for each of the conspiracy and bank fraud offenses, and 3 years in prison for the tax offense. The matter is assigned to Chief United States District Judge K. Michael Moore in Key West.
According to the indictment, Schwarz was the Vice President and Chief Financial Officer of Cay Clubs, which operated purported luxury resorts in the Florida Keys, Clearwater, Orlando, Las Vegas, and elsewhere. The indictment alleges that Schwarz and co-conspirator Fred Davis Clark, Jr., a/k/a Dave Clark, who was the two-thirds owner, began Cay Clubs in late 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs’s bank accounts to fund the cash to close for purchases while obtaining mortgage financing from lending institutions. These fraudulent sales were used in marketing materials to falsely show demand for Cay Clubs units and to inflate prices, as Cay Clubs was in reality purchasing units from itself. Proceeds of these sales were diverted to Schwarz and Clark.
The indictment further alleges that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. The indictment alleges that the loan documents used to obtain these mortgages included falsified signatures and false notary attestations, and had Clark acting as the seller while Schwarz provided the cash to close so that mortgage loans could be obtained to fund the sales.
Furthermore, according to the indictment, during 2004 through 2008, the years Cay Clubs operated, Clark and Schwarz obtained more than $28 million in proceeds from the business. However, Schwarz and Clark did not file any corporate tax returns for the Cay Clubs entities. In addition, they did not file any individual tax returns until after an investigation of Cay Clubs by the U.S. Securities and Exchange Commission (SEC). In 2010 and 2011, Schwarz filed false individual tax returns for tax years 2004, 2005 and 2006, in which he substantially underreported his income and concealed his receipt of millions of dollars in proceeds.
On December 11, 2015, Dave Clark, 59, formerly a resident of Tavernier, was convicted by a federal jury in connection with related bank fraud charges and obstruction of the SEC. Former Cay Clubs sales executives Barry Graham, 59, and Ricky Lynn Stokes, 54, both formerly of Ft. Myers, previously pled guilty to conspiracy to commit bank fraud, in related cases.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance provided by the SEC’s Miami Regional Office. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr.
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.
Former Bank President Mark Warne Sentenced to 78 Months ImprisonmentRead the Press Release
HAMMOND- United States Attorney David A. Capp announced that Mark Warne, 46, of Brook, Indiana was sentenced before Chief Judge Philip Simon following his guilty plea to Bank Fraud.
Warne was sentenced to 78 months’ imprisonment, 2 years supervised release and ordered to pay $3, 410,223 in restitution.
According to document in this case, Warne, a former President of Community State Bank, devised a scheme to defraud the bank. Warne caused Community State Bank to issue over six million dollars in fraudulent loans. Warne obtained loans using the identities of four known individuals, three of whom were related to Warne and none of whom received any of the proceeds of the loans.
Warne concealed the loans from bank board members by creating two sets of minutes for the meetings of the board of directors, one for the bank’s board of directors to read and approve and second for the Federal Deposit Insurance Corporation (FDIC) examiners to review. While the minutes shown to the FDIC examiners made it appear as if the bank’s board of directors was aware of the loans, the actual board minutes made no mention of the loans. Warne served as President of Community State Bank from on or about September of 2010 to September of 2015. Warne’s employment with Community State Bank ended after his scheme to defraud the bank was uncovered.
This case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Joshua P. Kolar and Abizer Zanzi.
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Florida Man Pleads Guilty to Transporting an AlienRead the Press Release
ALBANY, NEW YORK – Samar Kassim Amin, age 31, of Deltona, Florida, pled guilty today to transporting an alien unlawfully present in the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
Amin admitted that on November 8, 2015, in Champlain, New York, he picked up a Canadian citizen who had just run into the United States from Canada, and drove him until they reached Interstate 87, where Amin was stopped by U.S. Border Patrol agents. Amin admitted that he intended to transport the Canadian citizen, whom he had met at a wedding in Canada the night before, to Florida.
Amin faces up to 5 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on February 8, 2016 by Chief U.S. District Judge Glenn T. Suddaby. A 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.
This case was investigated by the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Five Southern Illinois Residents Charged with Methamphetamine OffenseRead the Press Release
Five southern Illinois residents were indicted on October 4, 2016, for a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Amber L. Williams, 23, of Percy, Justin M. Rice, 26, of Willisville, Taylor C. Robertson, 20, of Campbell Hill, Bradley M.D. Miller, 28, of Cutler, Brandon A. Rice-Edwards, a/k/a "Brandon Rice," 22, of Zeigler, and Robert J. Smith, Jr., 48, of Tilden, were charged in a one-count superseding indictment, charging conspiracy to distribute methamphetamine. The superseding indictment alleges that the methamphetamine offense occurred between 2014 and September 2016, in Perry, Randolph, St. Clair, and Franklin Counties. Miller and Smith made their initial appearances in federal court on October 13, 2016. The other co-defendants have previously made court appearances on the federal charge. The co-defendants are currently being held without bond pending a December 12, 2016, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the methamphetamine offense carries a maximum penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Steeleville Police Department, Illinois State Police, Sparta Police Department and Southern Illinois Drug Task Force. The Randolph County States Attorney’s Offices also assisted in the investigation.
Fifteen Charged in White Plains Federal Court with Using Front Music Company to Engage in Cocaine TraffickingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), Adrian H. Anderson, Sheriff of Dutchess County, and Thomas Pape,
Acting Chief of City of Poughkeepsie Police Department, today announced the unsealing of an indictment and a complaint charging 15 defendants with allegedly engaging in the distribution of cocaine throughout southern and central New York. Twelve defendants were taken into custody today, and will be presented in White Plains federal court this afternoon before U.S. Magistrate Judge Paul E. Davison. MALCOLM KINYON was previously arrested on the complaint, and DAVION McADAMS and ANTON MILLER remain at large.
U.S. Attorney Preet Bharara said: “The defendants charged today allegedly used a music company, ‘Outta They League,’ as a front to run their drug trafficking business. These arrests take ‘Outta They League’ out of the business of drugs and violence. We thank the FBI, the New York State Police, the U.S. Attorney’s Office for the Northern District of New York, and our many local law enforcement partners for their extraordinary partnership on this case.”
FBI Assistant Director-in-Charge William F. Sweeney said: “The average drug dealer can’t peddle his wares on the street anymore without someone seeing it, so they’ve found ways to hide their drugs and money using legitimate businesses. The one thing this group of defendants allegedly didn’t take into consideration, bank accounts don’t lie. The bad guys may think they’re being smarter than law enforcement, but our Hudson Valley Safe Streets Task Force is made up of investigators and detectives who are skilled at finding all methods of criminals hiding their crimes.”
NYSP Superintendent George P. Beach II said: “This investigation and the charges brought today against these 15 individuals are evidence of the commitment we share with our law enforcement partners in keeping dangerous drugs off our streets. I commend the members of our Special Investigations Unit, the FBI and the U.S. Attorney’s Office for their outstanding efforts to shut down this dangerous drug trafficking operation.”
Dutchess County Sheriff Adrian H. Anderson said: “Today was a great victory for law enforcement in Dutchess County and elsewhere by the taking of these allegedly dangerous individuals off of our streets. This country faces an ongoing drug epidemic, and being able to contribute towards ending that epidemic by helping remove some of those allegedly responsible is very gratifying. This is a perfect example of what can be achieved when Federal, State, and local law enforcement work together and I look forward to doing so again in the future.”
City of Poughkeepsie Acting Police Chief Thomas Pape said: “We are grateful for the coordinated efforts of our partners in law enforcement in bringing a successful indictment against these individuals. Mr. Bharara has once again shown that criminal activity will not be tolerated and that he will successfully coordinate efforts between federal, State and local law enforcement agencies to arrest and prosecute those responsible for crimes committed in our communities.”
As alleged in the Indictment and Complaint unsealed today in White Plains federal court[1]:
“Outta They League,” or “OTL,” is a registered corporation that has engaged in the production of music, but in recent years has served primarily as a front used by its owner, MALCOLM KINYON, a/k/a “M.A.,” to facilitate wholesale cocaine transactions, and help launder the proceeds of those drug sales.
Those drug sales were made by KINYON and his associates, members of a criminal drug-trafficking organization that also called itself OTL. Each month, OTL distributed multiple kilograms of cocaine in and around Poughkeepsie, New York, and to other locations in southern and central New York. Individual OTL members and associates, including BRIAN BOWMAN, a/k/a “Pony,” AARON HARDY, ANDREW HARDY, NICHOLAS LEYVA, a/k/a “Stay High,” a/k/a “Stay,” DAVION McADAM, a/k/a “Goat,” DANTE McNAIR, a/k/a “Tay,” JAQUAN McNAIR, a/k/a “Quannie,” a/k/a “Drugs,” ANTON MILLER, a/k/a “Anton Singleton,” a/k/a “Nord,” DANIEL SPOTARDS, a/k/a “D,” VAUGHN STOKES, a/k/a “Qua,” and BRYAN WHITTLE, a/k/a “B,” a/k/a “Tall B,” obtained wholesale quantities of this cocaine typically on a consignment basis from OTL’s leader, KINYON. These cocaine distributors would resell the cocaine they obtained from KINYON, and use the bulk of the proceeds from those sales to pay KINYON for the cocaine KINYON provided. KINYON would then reinvest those proceeds in further supplies of cocaine, which he would again provide to the other OTL members and associates.
Despite the negligible amounts of income derived from music, a bank account maintained by OTL received in excess of one million dollars from between in or around June 2013 through in or around January 2016. Most of the funds that passed through that account represented proceeds of narcotics transactions that were ultimately used to facilitate the purchase of additional quantities of cocaine for additional narcotics transactions. Numerous OTL members and associates, including MALCOLM KINYON, a/k/a “M.A.,” ERIC ANTONMARCHI, a/k/a “Powerful,” a/k/a “P,” STAR BERMUDEZ, DERRICK ENSLEY, a/k/a “Dirk,” ANTON MILLER, a/k/a “Anton Singleton,” a/k/a “Nord,” and DANIEL SPOTARDS, a/k/a “D,” have made large cash deposits to the OTL Account.
In addition to trafficking narcotics, the OTL organization maintained discipline through the threatened use of violence. OTL members and associates have been recorded discussing the use of violence, including the use of firearms and physical assaults, to ensure repayment for drug debts and to deter co-conspirators from providing information to law enforcement, among other purposes. OTL’s leader, KINYON, is further charged with trafficking firearms purchased in Virginia and trafficked to New York for resale to OTL members and associates.
* * *
These arrests were coordinated with an investigation in the Northern District of New York, targeting Bloods gang members operating in and around Kingston, New York. As a result of that investigation, 31 defendants were indicted for narcotics and other charges in five indictments also unsealed today in Albany federal court. Many of these defendants were trafficking in cocaine and other drugs obtained from OTL.
A chart containing the names of the defendants who were arrested today, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the New York State Police, the Dutchess County Sheriff’s Office, and the City of Poughkeepsie Police Department. He further thanked the United States Attorney’s Office for the Northern District of New York, the Department of Homeland Security, and the Ulster Regional Gang Enforcement Narcotics Team for their cooperation and assistance in this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Hagan Scotten, and Christopher Clore are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.)
MALCOLM KINYON
ERIC ANTONMARCHI
STAR BERMUDEZ
BRIAN BOWMAN
DERRICK ENSLEY
AARON HARDY
ANDREW HARDY
NICHOLAS LEYVA
DAVION McADAM
DANTE McNAIR
JAQUAN McNAIR
ANTON MILLER,
DANIEL SPOTARDS
VAUGHN STOKES
BRYAN WHITTLE
Life in prison
Mandatory minimum: 10 years in prison
Conspiracy to Commit Money Laundering
MALCOLM KINYON
ERIC ANTONMARCHI
STAR BERMUDEZ
BRIAN BOWMAN
DERRICK ENSLEY
AARON HARDY
ANDREW HARDY
NICHOLAS LEYVA
DAVION McADAM
DANTE McNAIR
ANTON MILLER
DANIEL SPOTARDS
VAUGHN STOKES
BRYAN WHITTLE
20 years in prison
Firearms Trafficking
MALCOLM KINYON
10 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaint, and the description of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Euclid man charged with distributing heroinRead the Press Release
A Euclid man was indicted in federal court for distributing heroin, said U.S. Attorney Carole S. Rendon.
Mario Mattox, 38, had more than 123 grams of heroin on Sept. 13, according to the indictment
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Euclid Police Department.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clinton Township Trustee Arrested and Charged for Demanding and Taking BribesRead the Press Release
An elected Trustee of Clinton Township was arrested by the agents of the Federal Bureau of Investigation (FBI) today based on a criminal complaint charging him with demanding and taking bribes in exchange for his vote on municipal contracts, United States Attorney Barbara McQuade announced.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Dean Reynolds, 49, of Clinton Township, is charged with engaging in a pattern of corrupt activity, including demanding and accepting money and other things of value, in exchange for official acts as a Trustee. Reynolds’ arrest is part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County. The investigation has employed telephone wiretaps, consensual audio and video recordings by cooperative individuals, undercover operations, physical surveillance, telephone tracking warrants, and subpoenas of financial records and other documents.
The complaint charges that since approximately 2012, Reynolds accepted multiple bribes from the representative of a company that was seeking and that secured a significant contract with Clinton Township. In total, Reynolds accepted between $50,000 to $70,000 in cash from the company’s representative. In addition, Reynolds accepted an additional $17,000 in cash payments from an undercover agent of the FBI, with the payments being video recorded. In exchange for the money from the company representative, Reynolds sold his vote on the Board of Trustees in favor of the company’s contract, and Reynolds provided information about the votes of other Trustees.
“Corruption undermines the very nature of representative government, said U.S. Attorney McQuade. “Law enforcement is committed to seeking out and prosecuting corrupt public officials in all areas of the Eastern District, including suburban communities.”
“Today’s arrest should serve as a reminder to the public of the FBI's longstanding record of successful public corruption investigations in the Detroit Metropolitan area”, said, David P. Gelios, Special Agent in Charge, Federal Bureau of Investigation. “Betrayal of the public trust for personal gain will always be an investigative priority of the FBI and our partners in Michigan”.
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Reynolds faces a maximum of ten years in prison and a fine of up to $250,000.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
Reynolds will be in federal court this afternoon at 1pm for his initial appearance on the criminal complaint.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222.
Cleveland man faces firearms chargesRead the Press Release
A Cleveland man was indicted for being a felon in possession of two firearms and ammunition, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
Lenelle Gray, 36, possessed an Imbel, .45 caliber pistol, a Mauser .32 caliber pistol, and ammunition on Sept. 8, after having been previously convicted of three felony drug trafficking offenses in the U.S. District Court, Northern District of Ohio, in 2005, according to the indictment.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. The case is being prosecuted by Assistant United States Attorney Ranya Elzein.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chinese nationals sent to prison for two years for stealing $1.5 million from GoodyearRead the Press Release
Two Chinese nationals were each sentenced to more than two years in prison for defrauding Goodyear Tire & Rubber Company out of $1.5 million, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Xin Franco Fan and Rex Xu Yu both pleaded guilty earlier this year to conspiracy to commit wire fraud and honest services wire fraud. Both were sentenced to 27 months in prison and ordered to pay $1.5 million in restitution.
Fan and Yu will be deported upon their release.
Both men were employees of Goodyear Orient Company (Private) Limited, or GOCPL, a subsidiary of Goodyear, located in Singapore and with offices in China. GOCPL manages all of the natural rubber purchasing, delivery, financing and quality certifications for Goodyear’s global operations. Goodyear, through GOCPL, spends approximately $1 billion annually to acquire natural rubber for its operations. Fan was Yu’s manager, according to court documents.
Fan, Yu and others incorporated or caused to be incorporated overseas shell companies in which they held a financial interest. Fan, Yu and others caused Goodyear to purchase natural rubber from these shell companies. They also required Goodyear suppliers to use loading companies in which they had a financial interest. This took place between 2013 and 2016, according to court documents
“These two defendants deserve their prison sentences after stealing $1.5 million,” Rendon said. “Goodyear is to be commended for promptly reaching out to law enforcement when they uncovered this scheme. Because of the company’s quick action, these men were brought to justice.”
“The FBI is responsible for protecting the public’s interest in American companies by aggressively pursuing and bringing to justice those who unjustly profit from American ingenuity by stealing secrets,” said Stephen D. Anthony, Special Agent in Charge, FBI, Northern District of Ohio.
As a condition of their employment, Fan and Yu were obligated to act in the best interests of Goodyear when purchasing natural rubber. In 2015, Goodyear received an anonymous tip that Fan and Yu were receiving kickback payments in connection with GOCPL’s raw materials purchases. With the cooperation of Goodyear executives, an investigation into the matter led to Fan and Yu being arrested earlier this year and criminal charges being filed in federal court.
This case was prosecuted by Assistant U.S. Attorneys Rebecca Lutzko, Henry F. DeBaggis and James Morford following an investigation by the FBI.
Charleston felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun crime, announced United States Attorney Carol Casto. Miguel Quinones, 38, entered his guilty plea to being a felon in possession of a firearm.
On October 19, 2013, law enforcement executed a search warrant at a unit in a storage facility in Dunbar. Quinones admitted that he had rented the storage unit, and that law enforcement discovered a number of his belongings within the storage unit. Quinones also admitted that among the items law enforcement found were two firearms that belonged to him, a Harrington & Richardson 20 gauge shotgun and a Marlin, Model 120 Revelation Western Auto Supply Company .22 caliber rifle. Quinones was prohibited from possessing any firearm under federal law because of a 2000 felony conviction in Fayette County Circuit Court for second degree murder.
Quinones faces up to 10 years in federal prison when he is sentenced on January 5, 2017.
The Kanawha County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Marshals Service conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Chalmette Man Sentenced to 14 Years in Prison for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, of Chalmette, was sentenced today after previously pleading guilty to violations of the Federal Controlled Substances Act.
U.S. District Judge Carl J. Barbier sentenced WILSON to serve 168 months incarceration, to be followed by 10 years of supervised release, and a $ 100 special assessment.
According to court records, WILSON conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance. WILSON was caught on video during two heroin transactions with a confidential source. The government also developed evidence that WILSON was laundering his drug proceeds by purchasing dilapidated houses, renovating them, and selling them for a profit. The government is seizing the houses and/or proceeds from their sale, as well as two vehicles that contained secret compartments used to transport narcotics.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
Caroline County Couple Pleads Guilty to Stealing over $265,700 in Social Security Disability BenefitsRead the Press Release
Baltimore, Maryland – Josephine D. Wright, and her husband, James B. Wright, both age 55, of Greensboro, Maryland, pleaded guilty to theft of government property arising from a scheme to steal over $265,700 in social security benefits. Josephine Wright pleaded guilty today and James Wright pleaded guilty on September 13, 2016.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to their guilty pleas, in 1993, James Wright applied for and began receiving Social Security Administration’s (SSA) disability benefits for himself and his children based on his inability to work due to a mental impairment and head injury. Josephine Wright was designated as his representative payee. As the representative payee Josephine Wright was responsible for everything related to benefits that her husband would do for himself, including reporting any changes which could affect his eligibility for benefits. As of 2014, Wright was receiving $1,202 per month, which was direct deposited into a bank account in Josephine Wright’s name. In yearly mailings from SSA the Wrights were notified of the requirement that they report any return to work by James, regardless of the amount of earnings.
No later than January 1998, James Wright began working as a commercial truck driver, hauling freight for various companies. Between January 1998 and October 2014, Wright worked approximately 40 to 60 hours per week, owned his own truck, and maintained a commercial driver’s license. In order to maintain his commercial driver’s license, Wright regularly submitted medical documents verifying that he was in good health and capable of working. The Wrights did not report James Wright’s work to SSA.
In order to prevent SSA from discovering James Wright’s work activity, the Wrights formed a company in Josephine Wright’s name. James Wright’s paychecks were issued to the company and deposited in the company bank account. In 2011, SSA attempted to assess an overpayment to Wright’s record based on the company’s earnings, but Josephine Wright falsely reported that the earnings were not James Wright’s, but were paid solely to the company for other services. On several occasions, including in March 2014, SSA received a work activity report from Wright requesting updated information about his work activity. The form was completed by James Wright, and had hand written across the page “DID NOT FIND A JOB. NOT WORKING AT THIS TIME.” At the bottom of the page, Wright wrote, “NOT ABLE TO WORK!” and “NOT ABLE TO DRIVE, TAKE CARE OF MONEY, COOK, CLEAN, OTHER DAY TO DAY LIFE.” The form was signed by Josephine Wright.
Had SSA been aware of James Wright’s work activity and earnings, he would not have been qualified to receive the $265,746.60, in disability benefits SSA paid to Josephine Wright between January 1998 and October 2014.
As part of their plea agreements, the Wrights have agreed to the entry of a restitution order of $265,746.40.
Josephine Wright faces a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 21, 2016 at 9:30 a.m.
James Wright and the government have agreed that if the Court accepts the plea agreement he will be sentenced to 18 months in prison. Judge Motz has scheduled James Wright’s sentencing for December 2, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
California Man Sentenced for Role in Drug and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Robert Craggs was sentenced yesterday to 57 months in prison, followed by three years of supervised release. Craggs pleaded guilty on May 27, 2016, to conspiracy to distribute methamphetamine and heroin and conspiracy to launder money. Craggs’ co-conspirators were previously sentenced.
According to court documents, Craggs has a long history of violating the laws related to illegal drug possession, trafficking, and money laundering. Sometime between January 2013 and July 2014, Craggs entered into an agreement with Joseph Cecil to distribute methamphetamine and heroin throughout Alaska. Cecil, a long time drug trafficker, orchestrated a system wherein drugs were sent to Alaska from California. Craggs himself then took possession of these drugs with the intent to distribute them in Alaska communities.
Furthermore, Craggs conspired with Cecil to launder the proceeds of the drug sales in an attempt to conceal and disguise the nature, source, ownership, and control of the funds. Craggs and Stacy Johnson laundered money for Cecil knowing that the money represented the proceeds of drug sales. Craggs agreed with Cecil to use a series of bank accounts to move money made from the sale of heroin and methamphetamine. Proceeds were deposited in Alaska and withdrawn in California. In other instances, Cecil instructed Craggs and Johnson to send drug sale proceeds via Western Union and Money Gram wire transfers. This money laundering activity further supported the distribution of heroin and methamphetamine in Alaska.
Documents presented to the court noted, in part, “that methamphetamine and heroin trafficking is the latest form of the scourge that is drug trafficking. Both substances destroy lives. The social and moral condemnation associated with this crime is readily apparent. Drug trafficking has no socially redeeming quality. It is a crime that deserves the most severe form of social condemnation.”
The following co-conspirators have been sentenced as part of these efforts:
- Joseph Cecil, aka “Kevin Dupree,” previously sentenced to 10 years in prison for conspiracy to distribute methamphetamine and heroin, and conspiracy to launder money;
- Stacy Johnson, previously sentenced to 30 months in prison for conspiracy to launder money;
- Paul Robson, previously sentenced to 63 months in prison for distribution of methamphetamine;
- Jennifer Henry, previously sentenced to 60 months in prison for distribution of methamphetamine; and
- Shawn Seaman, previously sentenced to 57 months in prison for being a felon in possession of a firearm.
The case was prosecuted by Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska. The case was investigated by the Organized Crime Drug Enforcement Task Force which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service Criminal Investigation (IRS-CI), and Homeland Security Investigations (HSI).
California Man Pleads Guilty to Obtaining Prescription Drugs by FraudRead the Press Release
BOISE – Jalin Russell-Halfacre, 22, of Sacramento, California, entered a guilty plea yesterday to the charge of obtaining controlled substances by fraud, U.S. Attorney Wendy J. Olson announced. Russell-Halfacre was indicted by a federal grand jury on April 12, 2016.
According to information presented in court, Russell-Halfacre traveled to Boise, Idaho in February 2015 and used fraudulent prescriptions to illegally obtain Phenergan with codeine, a schedule V controlled substance. Police officers followed Russell-Halfacre and another co-defendant, Breya Green, as they traveled to multiple pharmacies to obtain the controlled substances. When police officers contacted the doctor that purportedly authorized the prescriptions, the doctor confirmed that he did not authorize the prescriptions and they were fraudulent. Officers also found blank prescription paper and communications showing the codeine cough syrup was being sold to others.
The charge of obtaining controlled substances by fraud is punishable by up to four years in prison, a maximum fine of $250,000, and one year of supervised release. Russell-Halfacre is scheduled for sentencing on January 10, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The three other codefendants charged with committing this crime with Russell-Halfacre are set for trial on October 31, 2016: Breya Green, 22, from Sacramento, California, Torrie Garrett, 23, and Jazmine Lockhart, 22, both from Las Vegas, Nevada.
The case was investigated by the Ada County Sheriff’s Office and the Drug Enforcement Administration.
CFO of Berlin, New Hampshire Business Sentenced in Multi-Million Dollar Bank Fraud CaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Steven D. Griffin, 59, of Berlin, New Hampshire, was sentenced by Chief Judge Christina Reiss yesterday based on his conviction for making a false statement to a financial institution. Chief Judge Reiss sentenced Griffin to 24 months of home confinement as part of a five-year term of supervised release. The court also sentenced Griffin to pay $500,000 in restitution.
As part of the sentencing, Griffin admitted to submitting or causing to be submitted inflated figures for assets of Isaacson Structural Steel, Inc., including inventory, to Passumpsic Savings Bank, and other banks participating in loans totaling over $12 million, including a $2 million loan guaranteed by the Small Business Administration in late 2010. Griffin was part owner and Vice President and CFO of ISSI, which before its bankruptcy was one of the largest businesses in the North Country. ISSI fabricated steel used in commercial construction. It entered into construction contracts to provide not only the steel for commercial buildings but also to provide subcontractor services, principally the erection of the steel. ISSI purchased steel and fabricated the various pieces of steel needed for each contract at its Berlin, New Hampshire location and then shipped the steel to building sites. Early last year, ISSI’s CEO Arnold Hanson pleaded guilty to conspiring to submit false financial statements. Sentencing for Hanson is scheduled for November 23, 2016.
According to court records, between August 2007 and April 2011, ISSI officers regularly submitted false and inflated figures to the banks regarding the value of ISSI’s assets. ISSI submitted these false statements about assets in borrowing base certificates and financial statements. ISSI regularly inflated its assets by a million dollars or more. For example, in August 2007, ISSI officers discussed, and then submitted to the bank, inflated figures for the amount of money owed to ISSI for work done in connection with 303 Third St., a construction project in Boston. In early 2011, officers participated in the submission of ISSI’s draft financial statement for the financial year 2010, which contained significant overstatements about ISSI’s inventory. That financial statement had an inventory representation of approximately $12 million dollars. In fact, the value of the inventory was less than $2 million. Inventory was thus inflated by over $10 million. In April 2011, the banks learned about issues with ISSI’s inventory figures. By June 2011, ISSI was in bankruptcy, and its assets were later liquidated. In the end, the banks lost millions of dollars as a result of the fraud.
At the sentencing hearing, Griffin asked the Court to sentence him below the advisory sentencing guideline range of 51 to 63 months in jail in light of his community service and severe physical illnesses. Chief Judge Reiss agreed that in light of a variety of factors, including Griffin’s health, a jail sentence should not be imposed. The Court imposed a limit on Griffin’s freedom by imposing a lengthy period of home confinement.
The United States is represented in this matter by Assistant U.S. Attorneys Paul Van de Graaf and Timothy Doherty. Hanson is represented by George Ostler, Esq. The investigation, which is ongoing, is being conducted by the Federal Bureau of Investigation, the Office of Inspector General for the Federal Deposit Insurance Corp., and the Office of Inspector for the Small Business Administration.
Brothers indicted for selling heroin and fentanyl; sales continued after overdose deathRead the Press Release
Two brothers were indicted for conspiring to bring large amounts of heroin and fentanyl to Northeast Ohio from Connecticut, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
The six-count indictment charges Mizraim Vega, 27, of South Euclid, and Abimelec Vega, 25, of Cleveland, with conspiracy to possess with intent to distribute heroin, acetylfentanyl and fentanyl. It charges them with additional substantive counts of distribution of heroin, fentanyl and acetylfentanyl in August and September.
According to court documents, Abimelec Vega identified himself as a member of the Latin Kings gang and could obtain large shipments of heroin and fentanyl from another Latin King member.
According to court documents, the Vegas sold 80 grams of heroin for $8,000 on Aug. 26. Mizraim Vega said: “The one thing I’ll tell is to make sure to cut it (dilute the heroin). That stuff…you can’t send it to the street like that, it’s too strong. That stuff could kill someone, bro!”
On Sept. 3, Abimelec Vega informed a source that he was changing phones because someone had died from heroin or fentanyl he had sold, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the FBI.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Brooklyn Man Admits Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Brooklyn, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Festus Owusu, 44, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Owusu allowed his bank accounts to be used as repositories for fraudulently obtained federal tax refunds. Owusu would then withdraw the refunds in cash, keep a portion for himself and provide the remainder of the funds to his co-conspirators.
Judge Cercone scheduled sentencing for February 6, 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 Owusu.
Breinigsville Man Charged with Transportation and Possession of Child PornographyRead the Press Release
Keith Tostevin, 52, of Breinigsville, Pennslyvania was charged today by Information1 with the transportation and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of forty years imprisonment, a mandatory minimum five years imprisonment, a mandatory minimum five years supervised release up to lifetime supervised release, a $500,000 fine, a $200 special assessment, and an additional $5,000 special assessment.
The case was investigated by the Pennsylvania State Police and the Department of Homeland Security, Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Boise Drug Dealer Sentenced to Federal PrisonRead the Press Release
BOISE – Quentin Craig Padilla, 32, of Boise, Idaho, was sentenced yesterday to 105 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Padilla’s sentence will run concurrent with a state sentence he is currently serving. Following his prison sentence, Padilla will be placed on five years of supervised release. Padilla was indicted by a federal grand jury on January 12, 2016 and entered his guilty plea on July 6, 2016.
On April 7, 2015, Padilla sold 31.9 grams of actual methamphetamine to a confidential human source. Three days later, Padilla was involved in a high speed chase with officers at speeds estimated at over 100 miles per hour after being pulled over for a traffic violation. Shortly after officers ended the pursuit, members of the public began contacting the police about abandoned firearms and ammunition around the community and in the vicinity of where Padilla had been driving. Several firearms including an AK-47 were recovered.
Padilla has had six prior felony convictions for crimes which include aggravated assault, possession of methamphetamine, eluding officers, and unlawfully possessing a weapon. He is a member of the South Side Clica gang and associated with other Sureno gangs including Brown Magic Clica, East Side Locos and Southside 13.
This case was investigated by the Treasure Valley Metro Violent Crime Task Force, Boise Police Department and Ada County Sheriff’s Office. The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Beatrice Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on October 13, 2016, Quirstin Marie Gross, 25, of Beatrice, was sentenced to nine years and two months (110 months) in prison for her role in a conspiracy to distribute and possess with the intent to distribute 50 grams or more of a substance containing methamphetamine between December of 2013 and October of 2015. Information provided to law enforcement indicated that Gross was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time-period. Following the prison term, Gross will serve four years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Bangor Man Charged with Enticement of A Minor and Related ChargesRead the Press Release
Matthew Simineri, age 21 of Bangor, Pennsylvania, was charged today by Indictment1 with one count of Enticement of a Minor to Engage in Illicit Sexual Conduct, four counts of Manufacturing Child Pornography, four counts of Receipt of Child Pornography, and one count of Transfer of Obscene Material to a Minor, announced United States Attorney Zane David Memeger. The charges arose out of the defendant’s online communications with a 9-year old autistic girl.
If convicted the defendant faces a maximum possible sentence of life imprisonment with a 15-year minimum mandatory term of incarceration, a $2,000,000 fine, 5 years up to a lifetime of supervised release, and a $2,000 special assessment.
The case was investigated by the Spokane County Sheriff’s Department in Washington, the Berks County District Attorney’s Office in Pennsylvania, and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
1An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Austin Man Sentenced to Federal Prison for Role in Fentanyl Related DeathsRead the Press Release
In Austin today, 27-year-old Austin resident Sylvester Orlowski was sentenced to 168 months in federal prison for his role in two deaths resulting from a fentanyl overdose in May of this year announced United States Attorney Richard L. Durbin, Jr., and Austin Police Chief Art Acevedo.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Orlowski pay restitutions to the families of both victims to cover funeral expenses; and, be placed on supervised release for a period of five years after completing his prison term.
On August 10, 2016, Orlowski pleaded guilty to one count of possession with intent to distribute fentanyl causing death. By pleading guilty, Orlowski admitted that in May 2016, he sold Fentanyl in powder form to Zane Paduano. Paduano and Clayton Wimberley, subsequently overdosed after ingesting that Fentanyl. Fentanyl, a Schedule II Controlled Substance, is a narcotic analgesic used for pain control and anesthesia. In large or concentrated doses it suppresses the respiratory system and causes death.
On September 1, 2016, Orlowski’s Fentanyl source and co-defendant, 29–year-old Austin resident Albert C. Picazo, III, pleaded guilty to the same charge and is awaiting sentencing scheduled for 9:00am on November 17, 2016, before Judge Yeakel. Picazo, who has remained in custody since both defendants were arrested on May 18, 2016, faces up to life in federal prison.
This case was investigated by the Organized Crime Unit of the Austin Police Department. Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the Government.
Arizona Man Sentenced to Prison for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Rodolfo Rene Ley, 25, of Phoenix, Ariz., was sentenced this afternoon in federal court in Albuquerque, N.M., to 70 months in prison for his heroin trafficking conviction in New Mexico. Ley will be on supervised release for four years after he completes his prison sentence.
Ley was arrested at the Amtrak Train Station in Albuquerque on May 13, 2016, after the DEA found approximately one kilogram of heroin in three clear plastic wrapped bundles under Ley’s clothing during an interdiction investigation.
Ley was subsequently indicted on May 25, 2016, and charged with possession of heroin with intent to distribute on May 13, 2016, in Bernalillo County, N.M. On June 30, 2016, Ley pled guilty to the indictment. In his plea agreement, Ley admitted that he voluntarily consented to have a DEA agent search him at the Amtrak Train Station in Albuquerque on May 13, 2016. During the search, the agent discovered oblong bundles containing heroin in Ley’s jeans.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Eva Fontanez prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Another Navy Officer Pleads Guilty in Expanding Bribery and Fraud InvestigationRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – October 13, 2016
SAN DIEGO – U.S. Navy Lieutenant Commander Gentry Debord pleaded guilty to a bribery charge in federal court today, admitting that he accepted cash, luxury hotels and prostitutes from foreign defense contractor Leonard Glenn Francis in exchange for proprietary Navy information that benefitted Francis’ company, Glenn Defense Marine Asia.
Debord was so happy to receive lavish gifts that GDMA executives described him as “over the moon” and joked that Debord swallowed their bribes, “hook, line and sinker,” according to instant messages quoted in the plea agreement.
Debord also admitted that he instructed GDMA executives to inflate their invoices to the Navy to cover the cost of various illicit gifts provided to him.
“This conduct is a disgrace to the U.S. Navy and an affront to U.S. taxpayers who were left to foot the bill for parties and prostitutes,” said U.S. Attorney Laura Duffy. “We are pressing forward in this investigation until we are certain that all involved have been held accountable.”
The guilty plea was entered before U.S. Magistrate Judge Bernard G. Skomal, who set sentencing for January 13, 2017 at 9 a.m. before U.S. District Judge Janis L. Sammartino.
According to his plea agreement, from November 2007 to January 2013, Debord provided Francis and others with internal, proprietary U.S. Navy information; directed Francis and GDMA to inflate invoices to reflect services not rendered; advocated for the U.S. Navy to procure items from GDMA under its husbanding contracts; and otherwise used his position and influence in the U.S. Navy to advocate for and advance GDMA’s interests, as opportunities arose.
As part of this conspiracy, Debord, Francis and others attempted to conceal the nature and extent of their relationship, by, among other things, using fictitious email accounts to communicate and using coded language and other means designed to obfuscate the true nature of their corrupt relationship, including referring to prostitutes as “cheesecakes” and “bodyguards.”
For example, on or about February 26, 2008, Debord emailed a GDMA executive to ask him to provide the services of prostitutes during the U.S.S. Essex’s upcoming port visit to Manila, Philippines: “[D]ouble checking to see if I will have my security for the 2nd and the 4th. I however do not want anyone to know I have a bodyguard.” The executive responded: “Bodyguards are standing by.”
About eight months later, around October 30, 2008, Debord emailed GDMA executives advising them that the U.S. Navy’s ship husbanding contract in the Philippines was “coming up for renew[al],” and asking that GDMA provide him with an apartment in conjunction with an upcoming port visit by the U.S.S. Essex to Hong Kong. Debord noted that he and another GDMA employee “had fun up [near Clark Air Force Base,] ate lots of cheesecake, even ate some in a group session.”
On or about February 22, 2010, Debord asked a GDMA executive to provide him with three hotel rooms, two cell phones, a van and $2,000 Singapore dollars and 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 from February 22-25, 2009.
Francis approved the payment to Debord, and as instructed by Debord, GDMA fraudulently inflated its invoice to the U.S. Navy to account for the things of value given to Debord.
So far, a total of 16 named individual defendants 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, believed to be the first active-duty U.S. Navy flag officer charged in a federal criminal case; 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.
Debord, 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; 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 and Neil Peterson and Linda Raja. Three have pleaded guilty; Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing; Peterson’s and Raja’s cases are pending.
The Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section 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.
DEFENDANT Case Number: 16cr1457
Lieutenant Commander Gentry Debord Age 41 San Diego
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine,
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Albuquerque Man Pleads Guilty to Federal Fraud and Theft ChargesRead the Press Release
ALBUQUERQUE – Jeremy L. Lara, 36, of Albuquerque, N.M., pled guilty today in federal court to federal fraud and theft charges under a plea agreement with the U.S. Attorney’s Office.
Lara was arrested in May 2016, on a criminal complaint charging him with theft of mail on May 19, 2016, in Sandoval County, N.M., after law enforcement officers allegedly found Lara in the process of stealing mail from a community mail box. According to the complaint, officers recovered a counterfeited USPS arrow key as well as stolen mail from inside Lara’s vehicle.
Lara was subsequently charged in a ten-count indictment on June 14, 2016. Lara was charged with the following: three counts of bank fraud and three counts of aggravated identity theft on Nov. 11, 2015, Nov. 13, 2015, and Nov. 15, 2015; two counts of possession of a counterfeit postal key on Dec. 19, 2015 and May 19, 2016; and three counts of theft or receipt of stolen mail on Dec. 21, 2015 and May 19, 2016. The indictment alleges that the crimes took place in Bernalillo and Sandoval Counties, N.M. The indictment includes forfeiture provisions requiring Lara to forfeit $4,870.28 to the United States.
During today’s proceedings, Lara pled guilty to all counts of the indictment. In entering the guilty plea, Lara admitted that he stole mail by using a counterfeit USPS arrow key that he created. Lara further admitted that he specifically sought out driver’s licenses, bank cards and other personal identifying information to access the bank accounts of legitimate card holders, and impersonated the account holders by using their bank cards and PIN numbers to withdraw cash from ATMs.
At sentencing, Lara faces a statutory maximum penalty of 30 years in prison as well as a mandatory penalty of two years in prison for the aggravated identity theft charge which must be served consecutive to any sentence imposed on the bank fraud charges. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and the Rio Rancho Police Department. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.
Akron men indicted for distributing fentanylRead the Press Release
Two Akron men were indicted on charges of possession with intent to distribute fentanyl, said U.S. Attorney Carole S. Rendon.
Indicted are Brian L. Williams, 54, and Terrance L. Ford, 50
Akron Police Department Narcotics Unit Detectives along with Drug Enforcement Administration Task Force Officers executed a state search warrant at Williams and Ford’s residence in Akron on July 27, 2016 and recovered over 100 grams of a substance containing fentanyl along with several fentanyl patches, according to court documents.
The case is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Akron Police Department and the Drug Enforcement Administration.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man indicted for selling fentanyl that caused fatal overdoseRead the Press Release
An Akron man was indicted in federal court for selling fentanyl that caused a fatal overdose earlier this year, law enforcement officials said.
Steven D. Daniels, 31, was indicted on one count each of possession with intent to distribute fentanyl and distribution of fentanyl. The latter carries a sentencing enhancement because Daniels allegedly sold fentanyl that caused the fatal overdose of a person identified in the indictment as T.B. That took place on April 2 in Akron, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the Akron Police Department and Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Additional Individuals Charged for Their Roles in Operating “Pill Mills” in Knox and Loudon CountiesRead the Press Release
KNOXVILLE, Tenn. – On Oct. 4, 2016, a federal grand jury in Knoxville returned a 13-count superseding indictment against Sylvia Hofstetter, 52, of Knoxville, Tenn.; Richard Larson, 80, of Dandridge, Tenn.; Alan Pecorella, 67, of West Orange, N.J.; Theodore McCrary, 69, of Oak Ridge, Tenn.; Courtney Newman, 41, of Knoxville, Tenn.; and Cynthia Clemons, 44, of Knoxville, Tenn., for their roles in a conspiracy to distribute and dispense oxycodone, oxymorphone, and morphine outside the scope of professional practice and not for a legitimate medical purpose, maintenance of drug-involved premises, distribution of oxycodone resulting in death, and money laundering. Pecorella’s medical license was revoked in 2014 by the Tennessee Department of Health.
The superseding indictment on file with the U.S. District Court details the charges against each of the individuals referenced above. All are accused of being responsible for the distribution of a quantity of oxycodone, oxymorphone, and morphine sufficient to generate clinic revenue of at least $17.5M.
If convicted, those charged in the indictment could be imprisoned from 20 years to life and ordered to pay fines up to $1,000,000.
This superseding indictment is the result of an investigation by the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. The Tennessee Department of Health and the Drug Enforcement Administration’s Knoxville Diversion Group also assisted in the investigation.
Assistant U.S. Attorneys Tracy L. Stone, Caryn Hebets, and Anne-Marie Svolto represent the United States in the prosecution of these cases.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. In the Eastern District of Tennessee, HIDTA funds DEA and FBI led drug task forces in Johnson City, Knoxville, and Chattanooga, as well other initiatives to reduce drug crime in the HIDTA. For more information please visit www.whitehouse.gov/ondcp/high-intensity-drug-trafficking-areas-program .
The investigation is also part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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12 October 2016
Wounded Knee Woman Sentenced for Dispensing Alcohol on the Pine Ridge Indian ReservationRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, woman convicted of Dispensing of Intoxicants in Indian Country was sentenced on October 5, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Leslie Little Moon-Boltz, age 22, was sentenced to 3 years of probation and ordered to pay a $25 special assessment to the Federal Crime Victims Fund.
Little Moon-Boltz was charged on June 17, 2014, and pleaded guilty on July 29, 2016. The conviction stems from Little Moon-Boltz having whiskey near Manderson on the Pine Ridge Indian Reservation.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Williamson County Man Charged with Methamphetamine OffenseRead the Press Release
Marshall D. Rosenberger, 36, of Marion, was indicted on October 4, 2016, in a one-count indictment charging conspiracy to manufacture and distribute methamphetamine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges that the offense occurred between October 2015 and July 13, 2016, in Jackson and Williamson Counties. Rosenberger made his initial appearance in federal court on October 7, 2016. He was ordered held without bond pending a December 12, 2016, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a maximum penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office. The Carbondale Police Department and Southern Illinois Enforcement Group also assisted in the investigation.
West Haven Woman Sentenced to 6 Years in Prison for Distributing NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEBORAH MILLER, 60, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 72 months of imprisonment, followed by five years of supervised release, for distributing narcotics.
According to court documents and statements made in court, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven.
After West Haven Police informed investigators that Brooks had been residing at 59 Front Avenue in West Haven, and that the residents of 59 Front Avenue, including MILLER, were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of cocaine base (“crack cocaine), approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
The investigation revealed that between September 2014 and July 2015, MILLER and others conspired to distribute at least 1.6 kilograms of crack cocaine.
MILLER has been detained since her arrest on July 13, 2015. On April 25, 2016, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”).
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards, Stephen Reynolds and Jacabed Rodriguez-Coss. This investigation and prosecution is being coordinated with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Wellsville Man Pleads Guilty to Meth 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 Lionel C. Carter, a/k/a Skip, 60, of Wellsville, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine. The charge carries a minimum penalty of five years in prison and a maximum penalty of 20 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and October of 2014, the defendant engaged in the practice of “smurfing” (buying small quantities) at local pharmacies to get around restrictions on purchasing products containing pseudoephedrine, an important chemical necessary in the process of manufacturing methamphetamine.
Carter is one of 12 defendants charged in a methamphetamine manufacturing conspiracy in Allegany County. He is the fourth defendant to be convicted. Charges are pending against the remaining eight defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Division, the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, U.S. Border Patrol, under the direction of Patrol Agent in Charge Steven Oldman, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for February 10, 2016, before Judge Arcara.Washington State CPA Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Understated Gross Receipts by Approximately $1.8 Million
A Spokane, Washington certified public accountant was sentenced yesterday to 15 months in prison for making and subscribing false corporate income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael C. Ormsby for the Eastern District of Washington.
According to documents filed with the court, Roger Stadtmueller owned and operated Stadtmueller & Associates P.S., an accounting firm that offered accounting and consulting services, including income tax preparation, bookkeeping and financial auditing. Stadtmueller also owned Zazz, Inc., the corporate entity under which Stadtmueller & Associates P.S. conducted business. Stadtmueller willfully made and subscribed false and fraudulent corporate income tax returns for Zazz, Inc. for 2006, 2007 and 2008, which understated gross receipts by approximately $1.8 million.
“As a tax professional, Roger Stadtmueller was clearly aware of his legal obligation to honestly and accurately report corporate income, and willfully disregarded this obligation when he filed false corporate income tax returns,” said Principal Deputy Assistant Attorney General Ciraolo. “With yesterday’s sentence, Mr. Stadtmueller pays a substantial price for his criminal conduct. The department, together with its colleagues in the Internal Revenue Service (IRS) and other law enforcement partners, will continue to pursue and prosecute those who violate our nation’s tax laws.”
Stadtmueller pleaded guilty on July 26. In addition to the prison term, Stadtmueller was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $400,000.
“It really is inconceivable that a CPA would cheat on his own corporate returns, but that is exactly what Roger Stadtmueller did,” said Special Agent in Charge Darrell Waldon of IRS-Criminal Investigation (CI). “Now the accountant is being held accountable. Accountants are known for their trustworthiness and integrity and IRS-CI exists to ensure that those qualities permeate our tax system. When someone violates those principles, and in so doing breaks the law, they will be brought to justice.”
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended special agents of IRS-CI, who conducted the investigation and Senior Litigation Counsel Corey J. Smith and Trial Attorneys Lisa L. Bellamy and Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Resolves Dispute with Doylestown Nursing Home over Access to Sign Language InterpretersRead the Press Release
PHILADELPHIA – Briarleaf Nursing and Convalescent, Inc., a skilled nursing facility in Doylestown, Pennsylvania, has entered into a settlement agreement with the United States to resolve an allegation that the facility violated the Americans with Disabilities Act.
The settlement arises out of a complaint that the United States received from the son of a deaf prospective resident who communicated using sign language. The complainant allegedly informed Briarleaf that his mother would need a sign language interpreter 24 hours per day, 7 days per week. The admissions representative allegedly responded that a sign language interpreter was not in the facility’s budget.
According to Briarleaf, a nursing home administrator told the complainant during a subsequent call that Briarleaf did not have the current capability to provide sign language interpreter services, but would research their availability. The complainant’s mother died at a hospital before she transitioned to Briarleaf or any other skilled nursing facility.
To resolve the matter, Briarleaf has agreed to provide residents who are deaf or hard of hearing with appropriate auxiliary aids and services, including qualified interpreters, when necessary to ensure effective communication. In addition, the settlement agreement requires Briarleaf to assess residents’ communications needs during the admission process, maintain records of interpreter requests, contract with a third-party interpreter service, post signs at the facility, provide training to personnel, and publish a policy statement about effective communication. After the United States requested information from Briarleaf during its investigation, Briarleaf voluntarily took steps to train the facility’s personnel, contract with an interpreter service, and establish a communication policy.
The settlement agreement also requires Briarleaf to provide an annual written report to the U.S. Attorney’s office regarding the status of its compliance during the agreement’s two-year term, and to notify the U.S. Attorney’s Office of any complaints that the facility failed to provide auxiliary aids and services to residents or companions who are deaf or hard of hearing. Briarleaf did not admit liability, and the settled civil claims are allegations only.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is committed to investigating alleged violations of the Americans with Disabilities Act. Those interested in learning more about effective communication obligations under the Americans with Disabilities Act may access www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at www.ada.gov/filing_complaint.htm.
The case was handled by Assistant U.S. Attorney Michael S. Macko.