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12 October 2016
Former American Senior Communities executives indictedRead the Press Release
Former CEO and COO of major nursing home chain charged in over $16 million fraud and kickback scheme
PRESS RELEASE
INDIANAPOLIS - United States Attorney Josh J. Minkler announced the indictment of four individuals for their roles in a vast fraud, kickback, and money laundering scheme involving Indiana nursing home chain American Senior Communities (ASC). Those charged include James Burkhart, 51, of Carmel, who formerly served as ASC’s Chief Executive Officer, and Daniel Benson, 51, of Fishers, who served as Chief Operating Officer. The four men charged are alleged to have personally pocketed millions in kickbacks and fraudulent overcharges, which they spent on vacation homes, private plane flights, golf trips, expensive jewelry, gold bullion, and casino chips.
The thirty-two count indictment charges Burkhart and Benson, along with Burkhart friend and associate Steven Ganote, 42, of North Salem, and Burkhart’s brother Joshua Burkhart, 42, of Fishers, with one count of conspiracy to commit mail, wire, and health care fraud, along with multiple other counts of mail fraud, wire fraud, and money laundering. Additionally, the indictment charges James Burkhart, Benson, and Ganote with one count of conspiracy to violate the federal Anti-Kickback Statute.
“These men are alleged to have stolen from the most vulnerable in our society,” said Minkler. “They took advantage of a system entrusted with the care of this state’s elderly, sick and mentally challenged allowing them to live a lifestyle of gratuitous luxury, fraught with unbridled greed.”
ASC is one of Indiana’s largest nursing home chains. It manages the daily operations of approximately 70 senior care facilities throughout Indiana on behalf of the Health & Hospital Corporation of Marion County (Health & Hospital), a public health organization that administers hospitals, like Eskenazi Health, as well as nursing homes. To manage the facilities, ASC purchases and refers patients to a wide variety of products and services provided by outside companies. Nearly all of these products and services are paid for with money from Medicare and Medicaid.
According to the indictment, between 2009 and 2015, James Burkhart and his co-conspirators engaged in side deals with many of these outside vendors for their own personal benefit – unbeknownst to, and at the expense of Health & Hospital and ASC’s owners. These side deals often involved intentionally overcharging ASC and Health & Hospital for the products and services the vendors provided and then funneling the overcharged amounts back to themselves through a web of shell companies. For example, the indictment alleges that James Burkhart directed a landscaping vendor to artificially inflate its invoices to ASC by 45%. After James Burkhart had ASC pay the invoices, the landscaping vendor paid the 45% overcharge back to one of James Burkhart’s shell companies, which he then split with the landscaping vendor’s shell company. False and inflated invoices through the landscaping vendor allegedly defrauded ASC and Health & Hospital out of over $2.3 million.
In other instances, the vendors simply paid kickbacks to James Burkhart, Benson, and Ganote in exchange for doing business with ASC. For example, the indictment alleges that the vendor who provided pharmacy services at ASC-managed facilities paid three of Ganote’s shell companies over $5.5 million in two years for purported “marketing” services. Ganote regularly split this money among James Burkhart, Benson, and himself.
Furthermore, according to the indictment, vendors that questioned the overcharges and kickbacks were turned down. For example, James Burkhart, Benson, and Ganote approached a company about installing new nurse call systems in all ASC facilities. They told the company to mark up their prices by 30% and pay the overcharged amount back to a shell company. The company declined to inflate its prices. James Burkhart immediately terminated negotiations and moved on to a second company, which agreed to the inflated-invoice deal. After the nurse call systems were installed, this second company was used again and again for big-ticket electrical contracting, such as generators at ASC facilities. In total, these overcharges allegedly came to over $3.7 million.
The defendants’ scheme allegedly capitalized on much more than ASC’s need for landscaping, pharmacy, and nurse call systems. The indictment contains allegations concerning food supplies, medical supplies, patient lifts, patient therapies, interior decorations furniture, office supplies, scent products, American flags, patient discharge packages, uniforms, and Alzheimer’s Memory Walk t-shirts.
The indictment alleges that the fraudulent proceeds and kickbacks were laundered through over 20 shell companies and bank accounts, and then divided among the four men for their personal use and benefit. Some of the illegal proceeds, for example, were allegedly used to pay for real estate on Lake Wawasee, Indiana, and Marco Island, Florida, elaborate diamond jewelry, Rolex watches, multiple gold bars, dozens of gold coins, gambling chips at Caesars Palace Las Vegas, extensive use of a private plane, and political contributions. In total, the indictment alleges that the defendants received over $16 million from their fraud and kickback scheme.
This case was jointly investigated by the Federal Bureau of Investigation, the Department of Health and Human Services, Office of Inspector General, the Internal Revenue Service-Criminal Investigation and the Indiana Attorney General’s Medicaid Control Fraud Unit.
“Today’s arrests are the culmination of a detailed and thorough investigation which uncovered excessive fraud,” said Special Agent in Charge W. Jay Abbott. “Over the course of the past year, the FBI Indianapolis Office, in partnership with IRS and HHS-OIG, diligently investigated kickback schemes, inflated bills and overbilled invoices. Together, we held these American Senior Communities executives arrested today accountable for funneling illicit profits and passing these costs along to Indiana Medicaid. I want to commend the hard work and diligence by Special Agents Victoria Madtson and Joe Weston of the FBI, who worked in close collaboration with our Forensic Accountants Ron Winings and Chris Knight. Their investigation illuminated the greed exhibited by these individuals who lined their own pockets at the expense of Hoosiers around the state. The individuals arrested today violated the trust of those they were meant to serve. These illegal actions, and the levels of greed uncovered by this investigation, are not to be tolerated. Working with our colleagues, the FBI is committed to investigate complex financial crimes in Indiana as a priority today and in the future.”
“The payment of kickbacks in exchange for the referral of patients covered by federal health care programs is illegal,” said Lamont Pugh III, Special Agent in Charge – Chicago Region, U.S. Department of Health & Human Services, Office of Inspector General. “These improper arrangements exploit our healthcare system and increase the costs for obtaining services for all program participants. The OIG will continue to work with our federal, state and local law enforcement partners to uncover these types of schemes and hold those who execute them accountable.”
“IRS Criminal Investigation follows the money from the crime to the culprit,” said Special Agent James Robnett. “In this case, we followed the money to these men who stole from the elderly and others in need of care, all to fund their gratuitous lifestyles. They were indicted today and we will continue to work with the United States Attorney’s Office and our federal and state partners to follow the evidence.”
“Today’s actions show a strong collaboration between agencies to seek justice against the defendants,” added Indiana Attorney General Greg Zoeller.
According to Assistant United States Attorneys Nick Linder and Cindy Cho, who are prosecuting the case for the government, each defendant faces multiple federal felony charges. James Burkhart, Benson, Ganote, and Joshua Burkhart, if convicted, each face up to 20 years in prison for conspiracy to commit mail, wire, and health care fraud, 20 years in prison for each mail or wire fraud count, 20 years in prison for certain money laundering counts, and 10 years in prison for other money laundering counts. Additionally, James Burkhart, Benson, and Ganote, if convicted, each face up to 5 years in prison for conspiracy to violate the Anti-Kickback Statute. All four have an initial appearance at 3:30 p.m. today before Magistrate Judge Tim Baker.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Five Plead Guilty to Trafficking Heroin in South TampaRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that five individuals have pleaded guilty to conspiring to distribute heroin. Edward McKenzie (40, Tampa), George Perdigon, A/K/A “Lee,” (48, Tampa), and Jesse Greer, A/K/A “Alex,” (40, Tampa) each face a mandatory minimum sentence of 5, up to 40 years, in federal prison. Michael Regan (40, Sun City Center) faces a maximum penalty of 20 years’ imprisonment. Gregory Phelps (61, Tampa) faces a mandatory minimum penalty of 10 years, up to life, in federal prison, and has agreed to forfeit the property located at 3608 West Oklahoma Avenue in Tampa that had been used by the defendants to facilitate and further the conspiracy.
According to the plea agreements, the individuals were part of a drug trafficking organization operating in South Tampa that transported heroin from New York City. The co-conspirators used the residence on West Oklahoma Avenue to store and distribute the heroin. Purchasers also used heroin at the home.
During the investigation, undercover detectives from the Tampa Police Department purchased heroin from the co-conspirators. Controlled purchases were also arranged through a confidential source. The investigation culminated during a traffic stop of McKenzie and Perdigon on April 22, 2016, during which solid heroin and hundreds of baggies of heroin packaged for distribution were seized.
This case was investigated by the Tampa Police Department and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Felon Sentenced for Possessing Firearm and Transporting an Individual for the Purpose of ProstitutionRead the Press Release
EUGENE, Ore. – On Wednesday, October 12, 2016, U.S. District Judge Ann Aiken sentenced Barry Phillip Armstrong, 34, of Los Angeles, to 84 months in prison for felon in possession of a firearm and interstate transportation for prostitution. Following his prison sentence, Armstrong will be on supervised release for three years.
Armstrong was contacted by the Eugene Police Department on May 4, 2015, at a hotel in Eugene. Officers determined that Armstrong was acting as a pimp to a female who was engaging in commercial sex, and that Armstrong had transported her from California to Oregon for prostitution. A firearm was later located in a hidden compartment in Armstrong’s vehicle.
Based on Armstrong’s multiple prior felony convictions, he was charged with felon in possession of a firearm. Armstrong was on probation for a similar prostitution conviction in California at the time of his most recent offense. Other prior felony convictions include assault by means likely to produce great bodily injury.
The investigation of this case was a collaborative effort between the Eugene Police Department and the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
Federal Jury Finds Prior Felon from Albuquerque Guilty of Unlawfully Possessing a FirearmRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict this afternoon finding Joshua Metts, 35, of Albuquerque, guilty of unlawfully possessing a firearm after a two-day trial. The verdict was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
Metts originally was federally charged with violating the Hobbs Act and federal firearms laws in an indictment filed in April 2015. In June 2016, a superseding indictment was filed that charged Metts with violating the Hobbs Act on Sept. 12, 2014, and being a felon in possession of a firearm on Oct. 2, 2014. According to the indictment, Metts was prohibited from possessing firearms or ammunition because of his prior felony convictions for aggravated fleeing of a law enforcement officer and trafficking a controlled substance.
Metts was arrested on the federal charges in June 2015, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges were dismissed in favor of federal prosecution. In July 2016, the court granted Metts’ motion to try the Hobbs Act charge separate from the felon in possession charge.
Metts’ trial on the felon in possession charge began yesterday and concluded this afternoon when the jury returned a guilty verdict. The evidence at trial established that APD officers arrested Metts on an outstanding state warrant on Oct. 2, 2014. After arresting Metts, the officers found a firearm in Metts’ vehicle; the firearm was wedged between the driver’s door and the driver’s seat. Because of his status as a convicted felon, Metts was charged with being a felon in possession of a firearm.
At sentencing for his conviction on the felon in possession charge, Metts faces a statutory maximum penalty of ten years in federal prison.
Metts has entered a not guilty plea to the Hobbs Act charge and a trial date on that charge has yet to be set. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque office of ATF and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Samuel A. Hurtado and Paul Mysliwiec are prosecuting the case.
Edwardsville Man Nets Nine Years in Federal Prison for Meth, HeroinRead the Press Release
Jackie H. Townsend, Jr., 38, was sentenced this morning to serve 108 months in federal prison for knowingly possessing with the intent to distribute significant quantities of methamphetamine and heroin, U.S. Attorney Donald S. Boyce announced. Townsend, an Edwardsville native, pled guilty to the charge in June of this year. In handing down the nine-year sentence, Chief United States District Judge Michael J. Reagan noted that heroin has become more mainstream in recent years, while meth continues to ruin families. "These are serious drugs," he observed, "and assisting in their distribution is a serious offense." As part of his sentence, Townsend was also ordered to pay a $500 fine and to serve three years on supervised release.
The case against Townsend began on January 13, 2016, when inspectors from the U.S. Postal Inspection Service observed a suspicious Express Mail package at the USPS distribution center in Hazelwood, Missouri. After a narcotics-trained dog alerted on the package, inspectors obtained a federal search warrant for the box and found that it contained over two kilograms of 96% pure methamphetamine (ice) and over 500 grams of heroin. Roughly two pounds of marijuana were also inside. Agents repackaged the box and delivered it to the addressee at a hotel in Caseyville, Illinois. The woman who received the package told investigators she had agreed to accept it on behalf of someone named "Paris" – a person later determined to be Townsend. After being advised that the package had arrived, Townsend drove to the hotel, took possession of the box, and was promptly arrested.
This case was investigated by the United States Postal Inspection Service, working with agents from the Illinois State Police – Metropolitan Enforcement Group Southern Illinois (MEGSI). Assistant United States Attorney Nathan D. Stump prosecuted the case at sentencing.
East Hartford Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN THOMAS MINTER, also known as “Louch” and “Louch Ramsey,” 28, of East Hartford, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to distributing crack cocaine.
This matter stems from a long-term investigation being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department into narcotics trafficking by members and associates of the Westhell and Team Grease groups and group-related violent activity.
According to court documents and statements made in court, MINTER was a member of Team Grease, which was originally called “Wall Street.” In April 2015, investigators conducted two controlled purchases of crack cocaine from MINTER. On April 14, MINTER sold approximately 105 grams of crack in exchange for $2,600 and, on April 24, he sold approximately 248 grams of crack in exchange for $5,200.
MINTER was arrested on April 30, 2015. On that date, a search of MINTER’s East Hartford residence revealed approximately 62 grams of crack cocaine, approximately 93 grams of powder cocaine and approximately $16,000 in cash.
MINTER pleaded guilty to one count of possession with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack cocaine”), an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. A sentencing date has not been scheduled.
MINTER has been detained since his arrest.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division and Hartford Police Department. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force, and the Capitol Region Emergency Response Team (CREST) have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Detroit heroin dealer sentenced to over six years in federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit drug dealer was sentenced today to six and a half years in federal prison for a heroin crime, announced United States Attorney Carol Casto. Jason Matthew Brown, 35, previously pleaded guilty to possession with intent to distribute heroin.
Brown admitted that on January 24, 2015, he was traveling from Detroit to Charleston with a codefendant and approximately 100 grams of heroin that Brown and his codefendant intended to sell. The Kanawha County Sheriff’s Department stopped the vehicle and located the heroin, which was hidden in a spare tire in the trunk and wrapped in black tape. Brown further admitted that he had been responsible for bringing up to 1,000 grams of heroin from Detroit for distribution in the Rand area of Kanawha County.
The Kanawha County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, and the West Virginia State Police conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Colombian National Charged for Unlawfully Injecting Silicone into Victims BodiesRead the Press Release
A Colombian national pled guilty to unlawfully injecting silicone into victim’s bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, Miami Field Office, and U.S. Food & Drug Administration, Office of Criminal Investigations (FDA-OCI), made the announcement.
Juan David Acosta, 44, of Hallandale Beach, pled guilty today to two counts of receipt in interstate commerce of a misbranded device and delivery for pay with intent to defraud or mislead, in violation of Title 21, United States Code, Sections 331(c) and 333(a)(2). Acosta faces a maximum statutory sentence of three years in prison as to each count.
According to court record, Acosta engaged in the business of administering injections of polydimethylsiloxane, commonly referred to as silicone, into the bodies of other individuals. Acosta was paid thousands of dollars for this service. Specifically, on July 29, 2015 and again on August 9, 2015, Acosta, at his residence in the Southern District of Florida, injected silicone into the buttocks of two victims in order to affect the size, contour, and structure of that portion of the human body for aesthetic purposes. The injection of silicone into the human body in this manner, regardless of whether such injection was dispensed and administered by a licensed practitioner, requires an FDA-approved application. Acosta did not advise the victims that silicone was being injected into their bodies. Acosta is not a licensed medical practitioner and he had not received FDA approval to administer the injections.
Mr. Ferrer commended the investigative efforts of the FDA-OCI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Palm Beach County Sherriff’s Office Narcotics Unit, and Miami-Dade Police Department’s Medical Crimes Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
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.
Chilean Woman Sentenced to 36 Months for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Gloria Oliva Gallardo, age 61, a Chilean citizen, was sentenced yesterday to 36 months in prison for illegally re-entering the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector. Senior U.S. District Judge Thomas J. McAvoy imposed the sentence.
In May, Gallardo pled guilty to re-entering and being found in the United States after she was previously removed from the country.
Gallardo was found by the St. Regis Mohawk Tribal Police and Border Patrol agents in Hogansburg, New York, on January 25, 2016. Gallardo had previously been deported and removed from the United States to Chile in 2001, 2004, 2012 and 2014.
Following Gallardo’s completion of her term of imprisonment, the Department of Homeland Security will process her for removal from the United States.
Gallardo was found in the United States along with Victor Manuel Fuentes-Gomez, age 68, also a Chilean citizen. Fuentes-Gomez also pled guilty to illegal re-entry, and he was sentenced, last month, to 30 months in prison. Fuentes-Gomez had previously been deported and removed from the United States to Chile in 1975 and again in 2015.
This case was investigated by the U.S. Border Patrol, with the assistance of the St. Regis Mohawk Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Centre County Couple Pleads Guilty to Explosives and Firearms OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Woodring, age 50, and Christina Woodring, age 34, a Centre Hall, Pennsylvania couple, pleaded guilty today before United States District Court Judge Malachy E. Mannion to firearms and explosives charges.
According to United States Attorney Bruce D. Brandler, James Woodring was arrested on May 20, 2016, shortly after an explosion at the couple’s Centre Hall residence, and charged by criminal complaint with similar offenses premised on the same conduct. Both Woodrings were indicted on May 24, 2016 by a federal grand jury in Scranton, with conspiring to manufacture and deal explosives from May 1 through 18, 2016, and associated offenses.
The Woodrings conspired to purchase and transport commercial grade fireworks, to increase the fireworks’ power and volatility, and to sell them, all without a license to do so. James Woodring also was charged with possessing a stolen semi-automatic pistol, a shotgun, a semiautomatic, large-capacity rifle and a rifle. As a previously convicted felon, Woodring is prohibited from possessing the firearms.
James Woodring, pleaded guilty to one count of manufacturing explosives, and to one count of being a felon in possession of firearms. In his plea agreement, James agreed that his offense involved 250 to 500 pounds of explosives and to forfeit the firearms seized from the residence.
Christina Woodring, pleaded guilty to one count of conspiring to manufacture and deal in explosives.
The investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms Enforcement, the Pennsylvania State Police, the Centre Hall Police Department, and the Springettsbury Township Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for each charge to which James Woodring has pleaded guilty are ten years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalties under federal law for the charge to which Christina Woodring has pleaded guilty are five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Cedar Rapids Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Michael Bordman, age 22, of Cedar Rapids, Iowa, has been charged with sexual exploitation of a child and distribution, receipt, and possession of child pornography. The charges are contained in an Indictment unsealed on October 7, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, between August 2015 and July 2016, Bordman sexually exploited a child and distributed, received, and possessed child pornography.
If convicted, Bordman faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 90 years’ imprisonment, a $1,000,000 fine, a $400 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Bordman appeared for a detention hearing on October 11, 2016, in federal court in Cedar Rapids and was held without bond. Bordman’s next appearance for trial is set for December 12, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Iowa Division of Criminal Investigation, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-81.
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Carlsbad Man Sentenced to Five Years in Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
ALBUQUERQUE – Justin E. Thompson, 35, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison followed by three years of supervised release for violating the federal firearms laws.
Thompson was arrested on Sept. 18, 2015, on a criminal complaint charging him with being a felon in possession of a firearm on Dec. 3, 2014, in Eddy County, N.M. According to the criminal complaint, law enforcement authorities executed a search warrant on Thompson’s residence as a special condition of his supervised probation on a prior felony conviction. During the search, the officers found two gun safes, which contained 34 firearms and many rounds of ammunition. At the time, Thompson was prohibited from possessing firearms or ammunition because he previously had been convicted of distribution of a controlled substance and being a felon in possession of a firearm.
On Nov. 20, 2015, Thompson pled guilty to a felony information charging him with being a felon in possession of firearms and ammunition. In entering the guilty plea, Thompson admitted that on Dec. 3, 2014, the U.S. Probation Office executed a search of his residence and found 34 firearms and numerous rounds of ammunition in his garage. Thompson further acknowledged that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Ammunition, the U.S. Probation Office and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
California Man Sentenced for Illegal Transportation of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Eureka, California, man convicted of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity was sentenced on September 23, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Thomas Lee Richard, age 50, was sentenced to 293 months in custody, lifetime supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Richard was indicted on June 16, 2015, and pleaded guilty on May 26, 2016.
The conviction stems from Richard picking up a minor female in Minnesota, intending to take her to California through South Dakota, for the purpose of illegal sexual activity. The minor received help from passerby’s while stopped at the 1880 Town in Midland.
This case was investigated by the Jackson County Sheriff’s Office and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Richard was immediately turned over to the custody of the U.S. Marshals Service.
Braddock Man Charged with Robbing Two Pittsburgh BanksRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of bank robbery, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on Oct. 11, named Wallace Banks, age 34, of Braddock, Pennsylvania, as the sole defendant.
According to the indictment, on August 15, 2016, Banks robbed WesBanco Bank, located at 807 Middle Street, Pittsburgh, PA. The following day, on August 16, 2016, Banks robbed Huntington Bank located at 650 Smithfield Street, Pittsburgh, PA. Both banks are insured by the Federal Deposit Insurance Corporation.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rachael L. Dizard is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Berrien County, Georgia, Sheriff Sentenced for Using Excessive Force Against Handcuffed, Non-Resistant ArresteesRead the Press Release
Former Berrien County, Georgia, Sheriff, Anthony Heath, 45, was sentenced to 30 months in prison and three years of supervised relief, for using excessive force against two non-resistant arrestees. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia made the announcement.
On June 29, 2016, Heath pleaded guilty to two counts of violating an individual’s civil rights. He was sentenced today by Senior U.S. District Court Judge Hugh Lawson of the Middle District of Georgia.
According to Heath’s guilty plea, on Jan. 12, 2012, Sheriff Heath and several deputies from the Berrien County Sheriff’s Office (BCSO) engaged in an extended foot chase of an individual identified only as M.V., who they were attempting to arrest. A BCSO deputy eventually saw M.V. in the woods and arrested him without incident. When a deputy reported to Heath that M.V. was in custody, the sheriff ordered deputies to hold M.V. in the woods until he could get there. When Heath arrived, M.V. was lying face-down on the ground, with his hands cuffed behind his back, and was not resisting arrest. Nevertheless, Heath kicked M.V. in the ribs, punched him in the head with a closed fist multiple times and forcefully kneed him in the ribs multiple times, causing M.V. to suffer pain and have difficulty breathing. Heath bruised his hand punching M.V. in the head.
During a separate incident, on Oct. 14, 2014, Heath repeatedly punched and kicked another arrestee identified only as J.H., even though J.H. surrendered, lay down on the ground and did not attempt to flee or threaten anyone at any point after his arrest. Heath punched J.H. with sufficient force to cause his own hand to become swollen and bruised. Heath’s punches caused J.H. to bleed from his mouth and to feel pain. As a result of his conviction, Heath was removed from his position as sheriff.
“When Heath beat compliant, handcuffed arrestees, he abused the public’s trust and did a disservice to his fellow colleagues in law enforcement, the vast majority of whom do their jobs with honor and integrity,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to ensure that law enforcement officers protect the rights of all individuals in their custody.”
“The Sheriff is the chief law enforcement officer in his county,” said U.S. Attorney Peterman. “His duty to ‘serve and protect’ extends to the arrestees just as much as it does to the rest of the community. His victims are not just those he assaulted in this case, but include the legions of good, decent law enforcement officers who will have to live under the shadow of mistrust his actions have created, as well as the good citizens who have had their faith in law enforcement challenged by those actions.”
The FBI conducted the investigation. Trial Attorneys Stephen Curran and Mary J. Hahn of the Civil Rights Division’s Criminal Section prosecuted the case.
BISD Employee Sentenced to Federal Prison for Stealing More Than $300,000 in Cafeteria FundsRead the Press Release
BROWNSVILLE, Texas – An accounting clerk in the Food and Nutrition Services Division of the Brownsville Independent School District (BISD) has been ordered to prison for stealing cash proceeds from concessions sales at four schools for nearly six years, announced U.S. Attorney Kenneth Magidson. Leticia Arreola, 39, of Los Fresnos, entered a guilty plea Wednesday, June 1, 2016.
Today, U.S. District Judge Rolando Olvera followed the government’s recommendation and ordered Arreola to serve a 24-month prison sentence. She was further ordered to pay $332,571.41 in restitution. In handing down the sentence, Judge Olvera indicated that Arreola abused a position of public trust in embezzling school funds. In denying Arreola’s request for a reduced sentence, Judge Olvera noted that public corruption is a matter of great concern and believed her sentence needed to reflect that concern. Arreola must also serve three years of supervised release following completion of the prison term.
From at least 2010 until January 2016, Arreola used her position to embezzle approximately $332,571.46. The embezzled money represented cash proceeds from the concessions sales at Faulk Elementary, Brownsville Early College High School (BECHS), Brownsville Learning Academy (BLA) and the Brownsville Academic Center (BAC).
BISD utilizes substantial federal funding each year to help provide cafeteria lunches for its’ students. This funding is well in excess of $10,000 yearly. Besides providing cafeteria lunches, BISD also receives cash payments from students for concession style food, such as ice cream and cookies.
Schools that perform concession services are required to send their cash proceeds to the BISD affiliated bank for proper accounting and deposit. The cash deposits are supposed to be placed in a deposit bag and then delivered on a daily or weekly basis via armored car to the BISD affiliated bank. At times, however, schools would miss their scheduled time to provide the deposits to the armored car. In those instances, the deposit bags were delivered to Arreola who would then steal the money for her own purposes.
Eventually, Arreola was able to arrange for cash deposits from Faulk, BECHS, BLA and the BAC to be delivered directly to her. When money came in from these schools, she would simply take the money out of the deposit bags and place them in her purse until she left at the end of her work-day. Ultimately, Arreola was asked to provide documentation about the receipt of money from these schools over time and she was unable to do so.
A review of the Arreola’s bank records from 2010 to 2016 demonstrated the extent of the embezzling scheme. While her legitimate salary with BISD was approximately $20,000 annually, records reflect that she embezzled more than $48,000 in 2010, $46,538 in 2011, $35,561 in 2012, more than $63,000 in both 2013 and 2014, another $71,532 in 2015 and a final $4,712 in 2016.
Arreola would spend proceeds from the $332,571.46 she stole on living expenses, vacations, entertainment and shopping.
Arreola was permitted to remain on bond and voluntarily surrender to the U.S. Marshals Service on Nov. 10, 2016.
The BISD Police Department and the FBI investigated with assistance from the Cameron County District Attorney’s Office and cooperation of BISD. Assistant U.S. Attorneys Jody Young and Israel Cano III prosecuted the case.
Attorney Found Guilty of Concealing A Fugitive from Arrest, Obstruction of Justice and Tampering with Judicial ProceedingsRead the Press Release
SAN JUAN, Puerto Rico– Today, after a 20-day trial and two hours of deliberations before U.S. District Court Senior Judge Daniel R. Domínguez, state criminal defense attorney Lemuel Velilla-Reyes was found guilty of one count of concealing a fugitive from arrest, and two counts of mail fraud, one count of endeavoring to obstruct, influence and impede the due administration of justice, and one count of tampering with official proceedings, announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The investigation was led by the Federal Bureau of Investigation (FBI) Public Corruption Squad.
Velilla-Reyes was indicted on September 16, 2014, for harboring and concealing from detection a person for whose arrest a warrant had been issued under the provisions of a law of the United States on a charge of felony. He was later indicted, along with Wilfredo Rodríguez-Rodríguez on July 9, 2015, on charges of mail fraud, endeavoring to obstruct, influence and impede the due administration of justice, and tampering with official proceedings.
The facts proven at trial showed that on July 14, 2011, Velilla-Reyes represented federal fugitive Wilfredo Rodríguez- Rodríguez, aka “Fredo”, aka “Cape”, aka “Capellán”, under the false name of “Felix Otero-Torres” on local drug and weapon charges in state court. At that time, Wilfredo Rodríguez-Rodríguez had an outstanding arrest warrant since July 14, 2010, in federal case U.S. v. José Colón-de Jesus, et. al. Crim. No. 10-251 (JAF), where he was listed as the fifth individual in the 110-defendant indictment for participating as a leader in a drug trafficking conspiracy to distribute controlled substances at the Virgilio Dávila, Las Gardenias, Brisas de Bayamón, and Falin Torrech housing projects, and other areas within the Bayamón Municipality. Velilla-Reyes was the attorney for many of the members of the drug trafficking organization which Rodríguez-Rodríguez was a part of, and had legally represented him in a prior criminal state case in 2006.
In the early morning hours of July 14, 2011, Police of Puerto Rico officers arrested Rodríguez-Rodríguez in Toa Baja while they were executing state arrest warrants. Upon his arrest, he provided the false name of Felix Otero-Torres, and did not provide or have on his person any identification documents.
Attorney Velilla-Reyes arrived at the police station to provide legal representation for Rodríguez-Rodríguez under the false name he had provided. Velilla-Reyes stood by while the charges against his client where filed under the false name. He then appeared in court during the probable cause proceedings and falsely represented to the court that his client Felix Otero-Torres could not recall his social security number or his full address. Velilla-Reyes requested that bail be set without electronic monitoring and told the court he would continue to represent his client throughout all the proceedings. He also vouched for his client’s fulfillment of pre-trial release conditions and his appearance in court. Rodríguez-Rodríguez, who was affirmatively identified during the days that followed, did not show up at the police station for booking and did not return to any court proceeding. Velilla-Reyes continued as the attorney of record, but failed to appear in any of the subsequent court hearings. As a consequence of the above actions, the bond was ordered confiscated and the bond company had to pay $24,000.
“Our efforts to eradicate corruption in Puerto Rico’s judicial system will include investigations and prosecutions such as this one. The actions committed by this attorney and his effort to conceal a federal fugitive from arrest through illegal conduct, undermined the public’s trust in the judicial system, which is a cornerstone of our democracy,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“As the evidence in this case demonstrated, this defendant abused his status as a trusted officer of the court to corrupt the judicial system, and in doing so, endangered the public by setting a fugitive free,” said Douglas Leff, Special Agent in Charge of the FBI. “The FBI thanks its partners at the US Attorney's Office for their diligence in obtaining this conviction.”
Assistant U.S. Attorney Jenifer Y. Hernández, Senior Litigation Counsel José Ruiz Santiago and Victor O. Acevedo-Hernández were in charge of the prosecution of the case. The sentencing was scheduled for February 9, 2017; and the defendant faces a sentence of up to 20 years’ imprisonment.
Anne Arundel County Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Robert P. Kramer, age 51, of Arnold, Maryland, today to five years in federal prison, followed by five years of supervised release, for distribution of child pornography. Judge Motz also ordered that upon his release from prison Kramer must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement and other court documents, Kramer was a VIP member of “The Website,” an online community dedicated to the advertisement and distribution of child pornography. The Website required its users to continually share child pornography in order to gain and keep membership. The Website operated on a network specifically designed to facilitate anonymous communication over the internet. In order to join and access the Website, Kramer had to install specialized computer software designed to mask the identity and location of the user. Website members were required to contribute postings to the site at least once every 30 days. These posts must either distribute and advertise child pornography depicting prepubescent children, from infancy to approximately ages 12-13, to other users, or provide assistance to other users in advertising or distributing child pornography. Members who went above and beyond the Website’s requirements could become “VIP” members of the website with the approval of Website administrators. VIP members are granted access to a “private” area of the child pornography forum, that was said to contain material that was “rare” and “new.”
Kramer admitted that between April 29, 2013 and December 9, 2014, he made a total of 69 postings to the Website and that many of those posts shared images of prepubescent girls engaged in sexually explicit conduct.
A search warrant was executed at Kramer’s home on June 16, 2015. Kramer had digital devices and storage media capable of storing over 3TB of data. Some of the data stored by Kramer on these devices were secured by a variety of means, including sophisticated encryption and use of “virtual machines,” or “shadow drives,” to conceal the existence of date. Kramer admitted that he had over 600 videos and images of minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, and Maryland State Police Internet Crimes Against Children Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Albuquerque Man Pleads Guilty to Robbing Pharmacy to Obtain Prescription DrugsRead the Press Release
ALBUQUERQUE – Matthew Romero, 40, of Albuquerque, N.M., pled guilty yesterday in federal court to robbing a retail pharmacy to obtain prescription controlled substances. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Will R. Glaspy, Special Agent in Charge of DEA’s El Paso Division, and Chief Gorden E. Eden of the Albuquerque Police Department.
Romero was arrested on Dec. 30, 2015, on a criminal complaint charging him with violating the Hobbs Act by robbing a business engaged in interstate commerce and robbery involving controlled substances. The charges against Romero arose out of the armed robberies of the Walgreens Pharmacy located at 3501 Lomas Blvd. and the Walgreens Pharmacy located at 5201 Central Ave. in Albuquerque.
Romero was subsequently charged in a four-count indictment on Jan. 14, 2016, with two counts of violating the Hobbs Act and two counts of theft of medical products. The indictment alleges that Romero committed the crimes on Dec. 6, 2015 and Dec. 7, 2015, in Bernalillo County, N.M.
During yesterday’s proceedings, Romero pled guilty to the indictment. In his plea agreement, Romero admitted entering the Walgreens Pharmacy located at 3501 Lomas Blvd. NE, on Dec. 6, 2015, where gave a pharmacy employee a note demanding Xanax and Diazepam, and let the employee know that he was armed. Romero also admitted that on Dec. 7, 2015, he entered the Walgreens Pharmacy located at 5201 Central Ave., where he gave a pharmacy employee a note demanding Xanax, Diazepam, and Oxycodone, and let the employee know that he was armed. The plea agreement states that Dec. 8, 2015, Romero again entered the Walgreens Pharmacy located at 3501 Lomas Blvd. NE, with a note demanding Xanax and Valium, and stating that Romero was armed, but Romero was arrested while he was waiting for the pharmacy to open.
According to the plea agreement, on Dec. 6, 2015, Romero stole 107 doses of 2 milligram Alprazolam and 346 doses of 10 milligram Diazepam, and on Dec. 7, 2015, Romero stole 873 doses of 2 milligram Alprazolam, 471 doses of 10 milligram Diazepam and nine doses of 5 milligram Oxycodone. At the time of his arrest on Dec. 8, 2015, officers recovered several bottles of Alprazolam from his backpack, and did not locate any firearms, ammunition or other weapons.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque and the Albuquerque Police Department. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
Assistant U.S. Attorneys Joel R. Meyers and Shaheen P. Torgoley are prosecuting 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.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
Defendant was One of the 104 Individuals Federally Charged as a Result of ATF-Led Investigation Pursued in Support of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Dominic Baca, 27, of Albuquerque, N.M., pled guilty today in federal court to a heroin trafficking charge.
Baca was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Baca was arrested on an indictment charging him with distribution of heroin on July 19, 2016. During today’s change of plea hearing, Baca pled guilty to the indictment and admitted selling heroin to an undercover agent on July 19, 2016. At sentencing, Baca faces a statutory maximum penalty of 20 years in prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, four of the 104 defendants charged as a result of the ATF investigation have entered guilty pleas. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case against Baca was investigated by the Albuquerque offices of ATF and DEA and is being prosecuted by Assistant U.S. Attorney Presiliano Torrez 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.
Accountant for Non-profit Government Contractor Pleads to Theft and Tax EvasionRead the Press Release
BIRMINGHAM – A former accountant with a Huntsville non-profit corporation that contracted with the government to place people with disabilities into government jobs pleaded guilty today in federal court to defrauding the organization and the Internal Revenue Service, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Roger C. Stanton.
REGGIOUS SANCHESTER BELL, 30, of Madison, pleaded guilty before U.S. District Judge Karon O. Bowdre to one count of federal program theft for stealing more than $1 million from the non-profit government contractor, and to two counts of federal income tax evasion for underreporting his income and underpaying his taxes for 2011 and 2012. As part of a plea agreement with the government, Bell must pay restitution of about $1.3 million to Huntsville Rehabilitation Foundation, which does business as Phoenix, and $81,768 to the IRS. He is scheduled for sentencing Feb. 21.
“This defendant acknowledges he stole from American taxpayers and that he stole more than $1 million from an organization dedicated to helping people with disabilities find jobs. Those actions are deplorable as well as criminal, and I applaud the work of the IRS and the FBI in bringing this case forward for prosecution,” Vance said.
Phoenix, which provides counseling for and places people with disabilities in administrative, manufacturing and custodial jobs, received more than $20 million a year from 2011 through 2013 under contracts to perform custodial work at Redstone Arsenal.
According to information presented by the government at today’s hearing, Bell went to work for Phoenix in 2008 in its accounting department. He worked in accounts payable, accounts receivable and fixed assets management. As it did with other staff members, Phoenix provided Bell a credit card to use for business expenses only. Bell, however, began using his Phoenix credit card for personal expenses in at least 2009, and continued to do so until he was caught in the summer of 2013, according to his plea.
Bell’s personal charges during that time including $95,228 to Best Buy, $21,969 to Louis Vuitton, $18,945 to American Airlines, $23,823 to Southwest Airlines, $46,345 to Marriott Hotels, $19,268 to Renaissance Hotels and $20,706 to Dillard’s Department Store, according to his plea. Bell also had Phoenix issue a credit card in a fictitious name with a fictitious Social Security number, which he also used for personal expenses.
Bell deleted unauthorized purchases from the credit card monthly statements and manipulated Phoenix’s account ledgers so that they would balance with the bank’s spreadsheet that showed what Phoenix owed for its staff credit cards, according to the plea.
Bell also established an accounting firm, called Bell-Pete Associates. Although Phoenix never did any business with the firm, Bell invoiced Phoenix for $58,133 in accounting services in 2011, and for $235,740 in 2012, according to his plea. Bell did not report the fraudulent income to the IRS, resulting in an underpayment of taxes of $15,132 in 2011, and $66,636 in 2012.
The maximum penalty for federal program theft is 10 years in prison and a $250,000 fine. The maximum penalty for tax evasion is five years in prison and a $100,000 fine.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
66 Year-Old Manistee County Man Sentenced to 20 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN –William Alan Schock, age 66, of Manistee, Michigan, received a 20-year sentence in federal prison today for producing child pornography of two young girls between the ages of 6 and 8. The judge ordered him to pay $25,000 in victim restitution for counseling costs and also ordered him to reimburse the Bureau of Prisons the cost of his confinement to avoid expense to the tax payers.
For almost four years, between 2011 and 2015, Schock took nude and pornographic photographs of two young girls at his home in Manistee and his second home in Tucson, Arizona. In August 2015, one of the young girls disclosed that Schock was taking pictures of her while she "modeled" naked and that Schock rewarded her with candy. The Michigan State Police (MSP) immediately obtained a search warrant for Schock’s Manistee residence. During the execution of the search warrant, Schock admitted to taking "inappropriate" nude photographs of the child who disclosed the incidents. MSP seized computers, cameras, and CDs and found evidence that Schock victimized a second child as well. Investigators also discovered other child pornography Schock downloaded from the internet. The Manistee County Prosecutor’s Office charged Schock and later turned the case over to the U.S. Attorney’s Office and Homeland Security Investigations for federal investigation and prosecution. In June 2016, Schock pled guilty in federal court to one count of producing child pornography.
At the sentencing hearing today, the Assistant U.S. Attorney read a letter written by the mother of one of the victims. The child’s mother described her fears of the pictures ever surfacing, of people finding out what happened to her daughter, of her child’s mental and emotional quality of life, and of the lifelong trust issues her daughter could face. She wrote how her family has been torn apart and their world turned upside down. In imposing the sentence, U.S. District Judge Robert Holmes Bell discussed the importance of sending a message to other people involved in child pornography that this behavior has significant and serious consequences.
"It is tragic and all too common for a child predator to prey on children over a period of years and manipulate them into keeping a secret out of a misplaced sense of trust and loyalty to the perpetrator," stated U.S. Attorney PatrickMiles in announcing the sentence. "The urgency with which the Michigan State Police reacted to the child’s disclosure led to the immediate recovery of evidence and justice being served."
"The tragic reality of many cases like this one is that survivors of child exploitation are most often victimized by a trusted adult," said Marlon Miller of HSI Detroit. "And while this lengthy prison sentence cannot undo the immeasurable harm that Schock inflicted on his young victims, it does prevent him from exploiting any other children and essentially ensures that he will spend the remainder of his life in prison."
The MSP Internet Crimes Against Children Task Force, who conducted the forensic examination on the seized devices alongside Homeland Security Investigations, announced, "We are pleased with the outcome of this case. It is our hope that the victims and their families can take comfort in knowing that this predator will no longer be a threat to society. With that, hopefully their healing can begin."
Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the federal case as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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11 October 2016
“Chief” Sentenced for Selling Membership in Fake Indian TribeRead the Press Release
BROWNSVILLE, Texas – A former Brownsville man, now living in Waco, has been ordered to federal prison following his convictions of selling membership in a non-recognized Indian tribe, announced U.S. Attorney Kenneth Magidson. Humberto Reveles, 61, pleaded guilty in March 2015.
Today, U.S. District Judge U.S. District Judge Andrew S. Hanen handed Reveles a 33-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay restitution of $198,795 to 144 victims of the scheme. In handing down the sentence, Judge Hanen noted that this scheme was just as bad as coyotes smuggling people past the checkpoint. He also noted that this crime was victimizing the individuals who could least afford it (undocumented aliens).
At the time of his plea, Reveles admitted to selling membership in the Yamassee tribe as part of a scheme to defraud. Reveles was the chief, and later grand chief, of the tribe. He claimed the tribal identification documents that came with membership would allow tribe members to remain in the United States, prevent them from being deported, allow them to travel within and work in the country, despite not having immigration status.
Reveles opened an office where he would meet with prospective tribe members in addition to holding informational meetings. Prospective tribe members would pay Reveles or his employees and were to receive tribal naturalization certificates, tribal identification cards and tribal drivers’ licenses. The documents were to be presented in support of the false immigration claims underlying the scheme.
The Yamassee tribe not a federally-recognized Indian tribe nor recognized by the U.S. Department of State.
Previously released on bond, Reveles was permitted to remain on bond and voluntarily surrender in December 2016.
The case was investigated by Homeland Security Investigations and U.S Department of State - Diplomatic Security Service with assistance from Border Patrol, FBI and the Brownsville Police Department. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
West Haven Woman Sentenced to Federal Prison for Distributing Heroin Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on October 7, ALYSSA JELLIFFE, 23, of West Haven, was sentenced by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing heroin that was involved in an overdose death in Milford in January 2015.
According to court documents and statements made in court, on January 12, 2015, a 39-year-old male died from an apparent heroin overdose at a residence in Milford. The investigation, which included analysis of text messages captured from the decedent’s cellular telephone, revealed that JELLIFFE and Christopher Fogler sold the decedent $170 worth of heroin on the evening of January 11, 2015.
On January 16, 2015, a court-authorized search of JELLIFFE and Fogler’s residence revealed approximately 10 bags of heroin and assorted drug paraphernalia, including a digital scale, razor blades and cut straws.
JELLIFFE and Fogler were arrested on January 16, 2015. JELLIFFE has been detained since February 26, 2016, when her bond was revoked.
On July 15, 2016, JELLIFFE pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Fogler pleaded guilty to the same charge and, July 19, 2016, was sentenced to 12 months and one day of imprisonment.
U.S. Attorney Daly noted that the U.S. Attorney’s Office, DEA and police departments across Connecticut are working together to investigate and prosecute narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This investigation was conducted by the DEA’s Bridgeport Task Force and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
Verona Man Sentenced to 15 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Verona, Mo., man was sentenced in federal court today for producing and receiving child pornography.
Allen S. Worley, 42, of Verona, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On May 16, 2016, Worley pleaded guilty to attempting to use a minor, identified as Jane Doe #1, to produce child pornography between Dec. 9, 2014, and April 16, 2015. Worley also pleaded guilty to receiving child pornography over the Internet.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Aurora, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
United States Attorney Provides Update Regarding Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today that his office continues to diligently and thoroughly investigate the July 5, 2016 shooting of Alton Sterling.
U.S. Attorney Green stated: “The U.S. Attorney’s Office for the Middle District of Louisiana, working closely with the U.S. Department of Justice’s Civil Rights Division and the Federal Bureau of Investigation, continues to make this investigation a top priority. To date, a team of career federal prosecutors, FBI agents and support personnel have devoted hundreds of hours to the investigation. Due to the breadth, scope and seriousness of the investigation, all three participating agencies have dedicated significant resources to the case. The investigation remains ongoing, and will conclude only when we have gathered, reviewed and evaluated all available evidence. There is no timetable for when this will be finished. My office, the Civil Rights Division, and the FBI all stand committed to taking all necessary steps to reach a just result based solely on the facts and the law.”
Union County Man Charged with Methamphetamine OffenseRead the Press Release
Marshall W. Duty, 58, of Jonesboro, 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 2013 and October 3, 2016, in Union, Jackson and Williamson Counties. Duty made his initial appearance in federal court on October 5, 2016. His jury trial is scheduled for December 12, 2016, in Benton.
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 Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
USP Lee Inmate Pleads Guilty to Conspiracy ChargeRead the Press Release
ABINGDON, VIRGINIA – An inmate at the United States Federal Penitentiary in Lee County, Virginia, USP Lee, admitted today in United States District Court for the Western District of Virginia in Abingdon to conspiring with others to bring illegal narcotics into the prison, United States Attorney John P. Fishwick Jr. announced.
Jermaine Calvin Jeffries, 44, waived his right to be indicted and pled guilty today in District Court in Abingdon to a one count Information charging him with one count of conspiring with others to provide a prohibited object, methamphetamine, to other inmates. Jeffries will be sentenced on January 11, 2017 at 10:30 a.m. in Abingdon.
“We must do all we can to maintain law and order, both inside and outside the walls of a federal penitentiary,” United States Attorney Fishwick said. “The individuals involved in this criminal behavior attempted to bring illegal drugs into USP Lee and, thanks to the hard work of those men and women working inside the prison, their efforts were thwarted.”
Jeffries conspired with others to provide inmates inside USP Lee with methamphetamine, Suboxone and marijuana. They did this through the use of phone calls to arrange transportation of the methamphetamine and the attempted transportation of the drug from outside the prison to prisoners incarcerated at USP Lee.
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
US Attorney Warns IRS Impersonation Scam May Continue Despite ArrestsRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha and Treasury Inspector General for Tax Administration J. Russell George today warned Rhode Island taxpayers that, despite reports from Mumbia, India, that numerous individuals were recently arrested at a call center where aggressive IRS impersonation scam telephone calls were allegedly originating from, they should continue to be vigilant and simply hang up the telephone if they receive a telephone call purported to be from the IRS demanding money or personal identifying information.
The reported arrests do not eliminate the possibility that others may still be perpetrating or impersonating the telephone scam.
Since October 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees. The Treasury Inspector General for Tax Administration (TIGTA) has received reports of over 1.8 million impersonation related calls with nearly 9,400 victims reporting losses of nearly $50 million.
“Seemingly everyone, including me, has received a call, or multiple calls, from a person purporting to be from the IRS threatening arrest or legal action in court unless money is immediately paid,” said United States Attorney Peter F. Neronha. “While it is good news that some are being held accountable for repeatedly seeking to victimize people in Rhode Island and across the country, we can expect similar calls going forward, because unfortunately this scam has proven to be successful in some instances. The right response when getting such a call is simple: don’t talk, just hang up.”
“TIGTA is concerned that the recent arrests in India will not bring a total halt to the IRS telephone impersonation scams,” said J. Russell George, Treasury Inspector General for Tax Administration.
“Members of the public cannot and must not let their guard down. As TIGTA continues to investigate the many IRS impersonation complaints we have received, our warning to the public remains the same: just hang up the phone if you receive a call purporting to be from the IRS where the caller states that to avoid arrest or a lawsuit, payment must be made immediately.”
If you believe you may have fallen victim to an IRS impersonation scam, you may file a report with the TIGTA at https://www.treasury.gov/tigta/contact_report_scam.shtml
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U.S. Attorney’s Office for the Middle District of Pennsylvania Joins Law Enforcement Partners to Support National Community Policing WeekRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that as part of “National Community Policing Week” a “neighborhood walk” in Wilkes-Barre, Pennsylvania, took place today. One of the top priorities of the Department of Justice is strengthening relationships between law enforcement officers and the communities we serve and protect. Community policing – public safety efforts built on resilient bonds of mutual trust and respect between law enforcement officers and neighborhood residents – is an essential component of law enforcement work. One way to build trust and legitimacy is for law enforcement officers to engage and collaborate with local residents and community organizations to identify areas of concern and coordinate solutions to community problems.
Participants in today’s “neighborhood walk” in Wilkes-Barre were representatives from various federal, state and local law enforcement agencies, along with members of the NAACP. Included were representatives from the U.S. Attorney’s Office for the Middle District of Pennsylvania, the Luzerne County District Attorney’s Office, the Wilkes-Barre Mayor’s Office, the Wilkes-Barre Police Department, the Pennsylvania State Police, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosive, and the United States Marshals Service.
“Events such as today’s neighborhood walk demonstrate that all levels of law enforcement and community members can come together to address crime in our neighborhoods,” said Gary Tuggle, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Strengthening bonds with the community is an important part of the DEA’s mission to raise awareness about the current prescription opioid and heroin epidemic that is ravishing our communities.”
“United with the community we serve, through trust and confidence, we can work as one to root out those who oppose peaceful and safe neighborhoods. The community should know that ATF’s highest priority is reducing and preventing gun violence on our streets. Together, with open dialogue and citizen contributions, we can have stronger bonds with a shared purpose of fighting violent crime and to make certain that where we live and work is a safe place.” Said ATF Special Agent in Charge Sam Rabadi.
“To keep our communities safe, we need everyone on board,” said FBI Special Agent in Charge Michael Harpster. “The FBI is committed to our productive partnerships with law enforcement at every level, and to promoting strong relationships with the citizens we all serve. Events like this support our common cause.”
On November 2015, the U.S. Attorney’s Office, along with federal, state and local partners announced a renewed strategy for reducing and preventing violent crime and drug activity in the Middle District of Pennsylvania, focusing on the Harrisburg, York, Wilkes-Barre and Williamsport areas. The program, known as “Violent Crime Reduction Partnership,” identifies communities which are most in need of anti-violence and anti-drug solutions and targets high-priority offenders in those communities for aggressive prosecution. Today’s event in Wilkes-Barre is meant to demonstrate to the community our awareness of the problems they face, to demonstrate that law enforcement is working together to fight crime in these areas, and most important, to solicit and encourage input from local residents and community organizations for solutions to these problems.
As part of the promoting the dialogue between law enforcement and the community, each federal, state and local law enforcement agency has a “tipline” where local residents can report suspicious activity to the police:
U.S. Marshal Service - tips for fugitives call 1-800-336-0102 or [email protected]
FBI – call 215-418-4000 or https://tips.fbi.gov/
ATF - call 1-888-ATF-TIPS (283-8477) or anonymous tips can be reported to ATF via the Reportit® App (download at Google Play or the Apple App Store)
DEA - “Submit A Tip” at https://www.dea.gov/ops/submit.php
Pennsylvania State Police - PA Crime Stoppers - 1-800-4PA-TIPS; Drug Trafficking Tip Line - 1-877-PA-NODRUGS; Terrorism/Fugitive Tip Line - 1-888-292-1919
Wilkes-Barre Police Department - http://wbcrimeline.com
In addition, prosecutors and police officers are available to meet with the public in schools, township meetings and other appropriate venues to discuss topics of mutual concern. For example, on September 19, 2016, the U.S. Attorney’s Office in conjunction with the Drug Enforcement Administration and the Pennsylvania Department of Drug and Alcohol Programs held a well-attended symposium on heroin and prescription drug abuse at Central Penn College in Summerdale, Pennsylvania. Events such as this serve not only to educate the public on public health and safety matters but also to promote a strong relationship between law enforcement and the community.
On October 6, 2016, the U.S. Attorney’s Office, in conjunction with our federal, state and local partners, held a similar “neighborhood walk” in Harrisburg, Pennsylvania. Our offices are committed to continuing the process of building strong bonds of trust and respect between law enforcement and the public they serve.
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U.S. Attorney Polite Announces October 19th as the District-Wide Student Pledge Against Gun Violence DayRead the Press Release
United States Attorney Kenneth A. Polite announced that on Wednesday, October 19, 2016, members of the U.S. Attorney's Office for the Eastern District of Louisiana (the “Office”) and their law enforcement partners will meet with students across Southeast Louisiana as part of his Office’s third district-wide Student Pledge Against Gun Violence (“SPAGV”) Day.
Middle and high school students will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult.
In coordination with the Department of Justice’s Project Safe Neighborhoods program, the Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a Day of National Concern about Young People and Gun Violence. Students from around the country will join together in pledging to do their part to end gun violence. Over 10 million students nationwide have signed the pledge since its inception in 1996.
Last year, over 27,000 students at approximately 60 schools participated in the Office’s second SPGV Day. This year’s event already includes schools from 9 of the 13 parishes in the Eastern District of Louisiana, namely Assumption, Jefferson, Lafourche, Orleans, Plaquemines, St. John the Baptist, St. Tammany, Terrebonne, and Washington.
In addition to providing the pledges, the U.S. Attorney’s Office will coordinate with other state, local, and federal law enforcement agencies to provide speakers at several schools to talk to students about what they can do to reduce gun violence in their communities.
If your school is interested in participating in the SPAGV Day, please contact Shane M. Jones at 504-680-3000 or [email protected], or visit our website at www.justice.gov/usao-edla.
Three Men Arrested in Utica Drug RaidRead the Press Release
SYRACUSE, NEW YORK – Three men were arrested and five (5) kilograms of cocaine were seized on Saturday in Utica, New York when U.S. Drug Enforcement Agents, New York State Police, and local law enforcement agencies ended a long term investigation of drug trafficking in Oneida County, announced United States Attorney Richard S. Hartunian, Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt, and New York State Police Superintendent George P. Beach, II.
According to a criminal complaint filed in federal court, law enforcement officers from the DEA, the New York State Police, and several local police agencies arrested Gilbert Rosa-Sanchez, 42, of Utica, Nicolas Peralta, 40, of Utica and Ramon Gomez, 46, of Lawrence, Massachusetts, on Saturday October 8, 2016, following a multi-agency drug investigation that began in January 2016. The complaint alleges that a total of four (4) kilograms of cocaine were seized during the execution of search warrants at two locations in Utica, and one (1) kilogram of cocaine was seized in Rosa Sanchez’ vehicle at the time he was stopped and arrested, announced United States Attorney Richard S. Hartunian.
The criminal complaint charges all three defendants with conspiracy to possess with intent to distribute and distribution of cocaine, in an amount exceeding five (5) kilograms. If convicted of this offense, the defendants face a minimum sentence of ten years and a maximum sentence of up to life imprisonment, a fine of up to ten million dollars, and a term of supervised release of at least 5 years and up to life. 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. The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
The defendants appeared before United States Magistrate Judge Andrew T. Baxter on Sunday October 9, 2016 for their initial appearance. They appeared in court today for further proceedings with their attorneys.
This case is being investigated by the United States Drug Enforcement Administration, the New York State Police-Community Narcotics Enforcement Team, The Oneida County Sheriff’s Department, the City of Rome Police Department and the City of Utica Police Department, and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Three Defendants Sentenced for Marijuana Trafficking ConspiracyRead the Press Release
St. Thomas, USVI – On October 6, 2016, District Court Judge Curtis V. Gomez sentenced three defendants on their convictions for conspiracy to distribute marijuana from Los Angeles, CA, to St. Thomas, VI, United States Attorney Ronald W. Sharpe announced. Clarence Griffin, 44, of Los Angeles, was sentenced to 87 months’ imprisonment, five years of supervised release and a $100 special assessment. Robert Brown, 29, of St. Croix, was sentenced to 63 months’ imprisonment, five years of supervised release and a $100 special assessment. Jamila Felix, 29, of St. Thomas, was sentenced to 27 months’ imprisonment, three years of supervised release and a $100 special assessment. All three defendants were ordered to forfeit $351,000 to the United States, jointly and severally, which represents the proceeds from the sale of the marijuana.
On May 16, 2016, Griffin, Brown and Felix pleaded guilty in federal court to count one of the indictment which charged conspiracy to possession with intent to distribute up to 1,000 kilograms of marijuana. According to the plea agreements filed with the court, between July 2012 and December 2013, Griffin and Brown shipped barrels containing at least 700 kilograms but less than 1,000 kilograms of marijuana concealed in "Chow Mein" cans from Los Angeles to St. Thomas utilizing a trucking service. Felix later deposited the proceeds from the marijuana sales into her bank accounts in St. Thomas, and subsequently wired the proceeds electronically to Griffin and other members of the conspiracy in the mainland United States.
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration and the U.S. Internal Revenue Service. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Three Defendants Indicted for Their Involvement in Identity Theft RingRead the Press Release
Montgomery, Alabama – Three suspects have been indicted in federal court for their involvement in an identity theft ring where the personal identities of various victims were used to open fraudulent credit card accounts without their knowledge, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama.
Patrick Rashaud Thomas (24), from Georgia, Patience Denise Minor (51), from Phenix City, Alabama, and Shameka Lashey Thomas (27), from Sylvester, Georgia, were all a part of this scheme. Patrick Thomas assisted his fellow conspirators while serving jail time with the Georgia Department of Corrections for unrelated convictions.
According to court documents, the identity theft scheme was carried out by obtaining stolen personal identifying information and then using that information to apply for Capitol One credit cards under false pretenses. They would then direct those credit cards to be sent to addresses used by other conspirators. The method used to obtain the personal information of their victims is still under investigation. The fraudulent credit cards were ultimately used for the personal benefit of the three. Patrick Thomas would sometimes have proceeds from the credit cards placed on his prison commissary account.
If convicted, each face up to thirty years in prison, as well as significant fines and restitution.
An indictment is merely a method of charging an individual and each defendant is presumed innocent until proven guilty at trial.
U.S. Attorney Beck would like to thank the following entities for their assistance with this case: the United States Postal Inspector’s Service, and the Capitol One Bank, N.A. Fraud Department. The case is being prosecuted by Assistant United States Attorney Bradley Bodiford.
Texas man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Texas man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Mason Earl Gonzales, 27, of Pasadena, entered his guilty plea to attempting to possess with intent to distribute 50 grams or more of methamphetamine.
Gonzales admitted that on June 13, 2016, he traveled with a confidential source working with the Metropolitan Drug Enforcement Network Team (MDENT) to the Boone Motor Inn in Boone County and searched behind the motel for methamphetamine. Gonzales further admitted that he was unable to locate the methamphetamine and that he planned to return the next day to find the drugs. MDENT went to the same area the following day, located the methamphetamine buried under a rock, and replaced the drugs with a substance resembling methamphetamine. MDENT also set up a surveillance camera in the area. Gonzales admitted that he returned to the area of the motel later that evening and found the bag containing the substance resembling methamphetamine. MDENT then conducted a traffic stop of his vehicle and Gonzales admitted that he went to the area of the motel to get what he believed was methamphetamine and that he intended to distribute the drugs. Lab testing of the methamphetamine seized by MDENT confirmed a weight of over 270 grams and a purity level greater than 97%.
Gonzales faces at least five and up to 40 years in federal prison when he is sentenced on January 4, 2017.
MDENT conducted the investigation. Assistant United States Attorney Monica D. Coleman is handling the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Taos County Man Arrested on Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – A Taos County, N.M., man has been arrested on a federal indictment charging him with carjacking and firearms and carjacking offenses, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.
Richard Howieson, 56, of Costilla, N.M., was arrested without incident yesterday evening in Taos, N.M., on a three-count indictment charging him with carjacking, carrying a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm. According to the indictment, Howieson committed the three crimes on Feb. 19, 2013, in Taos County, N.M. At the time, Howieson was prohibited from possessing firearms or ammunition because of his felony conviction for leaving the scene of an accident resulting in death and great bodily injury.
Howieson will make his initial appearance in federal court in Albuquerque, N.M., on Oct. 11, 2016. He remains in federal custody pending a detention hearing, which has yet to be scheduled.
If convicted on the carjacking charge, Howieson faces a statutory maximum penalty of 15 years in prison. If convicted of being a felon in possession of a firearm, he faces a statutory maximum penalty of ten years in prison. Howieson also faces a statutory mandatory minimum sentence of ten years in prison for discharging a firearm during a crime of violence, which must be served consecutive to any sentence imposed on the other two charges. Charges in indictments are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Santa Fe office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney George Kraehe.
Tampa Man Sentenced for Attempted Sex Trafficking of A ChildRead the Press Release
Tampa, FL – Chief United States District Court judge Steven D. Merryday today sentenced James Patrick Manning (25, Tampa) to 10 years in federal prison for the attempted sex trafficking of a child. Manning was indicted on March 29, 2016.
According to court documents, Manning responded to an advertisement that had been posted on Backpage.com by Homeland Security Investigations and sent several text messages to an undercover law enforcement officer stating that he wanted to have sex with a 14-year-old girl. After negotiating the price, Manning drove to the designated location, met with an undercover agent, and paid to have sex with the 14-year-old girl.
“This sentencing sets a new precedence aimed at the demand for child sex trafficking, or ‘johns,’” said Susan L. McCormick, special agent in charge of HSI Tampa. “These criminals will be investigated and prosecuted to the fullest extent of the law.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Stamford Man Sentenced to 40 Months in Federal Prison for Selling Sawed-Off Shotgun, CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID JEUNE, also known as “Junie” and “June Bug,” 30, of Stamford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 40 months of imprisonment, followed by three years of supervised release, for selling a sawed-off shotgun and cocaine.
This matter stems from “Operation Samson,” an investigation headed by the ATF and the Bridgeport and New Haven Police Departments that targeted violent criminals, illegal firearm possession and firearm trafficking. In the spring of 2014, approximately 40 ATF special agents and personnel from Connecticut and across the country were deployed with New Haven and Bridgeport Police to conduct numerous covert operations.
According to court documents and statements made in court, on March 3, 2014, JEUNE sold a sawed-off Mossberg model Regal 500 shotgun to an undercover agent in exchange for $350. The following day, JEUNE and another individual sold approximately one ounce of cocaine to the undercover agent in exchange for $1,250.
Prior to March 2014, JEUNE had been convicted of felony robbery and larceny offenses.
JEUNE has been detained since his arrest on April 2, 2014. On March 12, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon and one count of possession with intent to distribute, and distribution of, cocaine.
This case was prosecuted by Assistant U.S. Attorney H. Gordon Hall.
St. Louis Man Sentenced to Prison in Tax King ScamRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Mason Richmond, 31, of St. Louis, MO, was sentenced to 18 months in federal prison for defrauding the United States Treasury. Richmond’s conviction and sentence arise from his employment at a fraudulent tax return preparation business known as Tax King, LLC.
Tax King had several facilities located in St. Louis, MO, and one located at 212 Collinsville Avenue in East St. Louis. Richmond worked as a return preparer for three years at Tax King’s facility located at 900 N. Grand in St. Louis. On April 29, 2016, Richmond pled guilty in Federal Court in East St. Louis to a charge of conspiring to submit false claims for tax refunds. As part of his guilty plea, Richmond admitted that he routinely placed false information on his customers’ tax returns, including: (1) false Business Income and Schedules Cs which caused the clients to qualify for larger Earned Income Credits ("EICs"); (2) false wages, which again caused the clients to qualify for larger EICs; and (3) false education expenses which enabled the clients to qualify for American opportunity education credits.
Tax King profited from the scheme by charging the customers fees which ranged from approximately $400 to $650. Richmond admitted that he also profited from the scheme by requesting cash "tips" from his customers in return for increasing their refunds.
In addition to the 18 month prison sentence, Richmond was ordered to pay restitution to the United States Treasury of $126,015. After he completes his prison sentence, Richmond will also be required to serve a term of 3 years of supervised release.
The owner of Tax King, Eyob Tilahun, and two employees of the East St. Louis Tax King were previously sentenced on September 9, 2016. Tilahun, 30, of St. Louis, MO, was sentenced to 38 months in federal prison. Tanesa L. Beverly, 32, of East St. Louis, IL, and Melissa L. Wiley, 35, of Granite City, IL, were both sentenced to two years of probation. Beverly and Wiley both worked as return preparers at the East St. Louis Tax King for a couple of months during 2013. In addition to Richmond, Tilahun, Beverly, and Wiley, three other defendants in the case have previously pled guilty. Those defendants are: Lakesha R. Wilson, 28, of East St. Louis, IL; Edric A. Russell, 35, of East St. Louis, IL, and Pierre J. Carter, 34, of East St. Louis, IL. Wilson, Russell, and Carter all worked as return preparers at the East St. Louis Tax King. Russell and Carter will be sentenced on January 27, 2017. Wilson’s sentencing hearing is scheduled for February 3, 2017.
The investigation is being conducted by agents from both the Fairview Heights, Illinois, and St. Louis, Missouri Offices of the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman. The United States Attorney’s Office for the Eastern District of Missouri has also prosecuted several return preparers who worked at Tax King locations in St. Louis, MO.
Schenectady Man Sentenced to 33 Months for Identity TheftRead the Press Release
ALBANY, NEW YORK – Fernando A. Lugo, age 55, a citizen of the Dominican Republic residing in Schenectady, New York, was sentenced today to serve 33 months in prison for stealing another person’s identity and using it to apply for a U.S. passport and government-administered benefits.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent-in-Charge David Schnorbus of the Department of State Diplomatic Security Service, and John F. Grasso, Special Agent-In-Charge of the Social Security Administration Office of the Inspector General.
As part of his March 11 guilty plea, Lugo admitted that in April 2010, he submitted an application for a U.S. passport to the U.S. Post Office in Schenectady. In February 2015, he applied to receive Medicaid benefits with the Schenectady County Department of Social Services. On both applications, he used the name, Social Security Number and date of birth of a U.S. citizen whom he knew.
This case was investigated by Department of State Diplomatic Security Service and the Social Security Office of the Inspector General, and was prosecuted by Special Assistant U.S. Attorney Jason W. White.
Robbers of Brink's Truck, Armored Car and Circle K IndictedRead the Press Release
Memphis, TN – Two men have been indicted on federal charges for allegedly robbing a gas station and a Brink’s armored truck guard at gunpoint. A man who allegedly robbed an armored car guard has been charged in a separate indictment. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictments today.
According to the indictment, Cornelius Richmond, 48, and Roderick Herron, 50; both of Memphis, Tennessee; robbed a Circle K on North Germantown Parkway in Cordova on April 26, 2016.
Three days later, on April 29, 2016, Richmond and Herron robbed a Brink’s armored truck guard at gunpoint. At the time of the robbery, the victim was in the process of loading cash into the ATM machine at a Regions Bank on Austin Peay Highway.
Both defendants have been charged with two counts of robbery affecting interstate commerce, and one count of brandishing a weapon during a crime of violence. Richmond was also charged with one count of felony possession of a firearm.
Additionally, James Edward Lacey Jr., 31, of Memphis, Tennessee, has been indicted federally for his involvement in a separate robbery.
According to his indictment, Lacey unlawfully possessed a firearm on August 13, 2016.
Five days later, on August 18, 2016, Lacey robbed a Dunbar Armored Service guard. The guard was performing services at the Memphis, Light, Gas and Water (MLGW) office on Summer Avenue at the time of the robbery.
Lacey has been charged with one count of robbery affecting interstate commerce and one count of felony possession of a firearm.
If convicted, all three of the aforementioned defendants face up to 20 years in federal prison for their individual robbery counts. Richmond and Herron face a mandatory minimum sentence of five years for the count of brandishing a weapon during a crime of violence. Lacey and Richmond also face up to 10 years for felony firearm possession. All charges carry individual fines of up to $250,000.
These cases are being investigated by the Federal Bureau of Investigation’s West Tennessee Violent Crime Task Force.
Assistant U.S. Attorney Kevin Whitmore is prosecuting these cases on the government’s behalf.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Richmond man admits to transporting a minor to engage in sexual activityRead the Press Release
CHARLESTON, W.Va. – A Richmond man pleaded guilty today to transporting a minor from West Virginia to Virginia for the purpose of engaging in sexual activity, announced United States Attorney Carol Casto. Ian Michael Cramer, 27, entered his guilty plea to transportation of a minor with intent to engage in criminal sexual activity.
Cramer admitted that in September 2015, he used an app on his cell phone to persuade a 15-year-old from Cross Lanes to engage in sexual activity. During the evening hours of September 18, 2015, Cramer drove from Richmond to Cross Lanes and picked up the minor. He then drove the minor back to his apartment in Richmond, where the two of them engaged in sexual activity. Law enforcement arrived at Cramer’s apartment on September 20, 2015, and rescued the minor.
Cramer faces a federal prison sentence of 10 years to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Cramer will also be required to register as a sex offender. Sentencing is scheduled for January 11, 2017.
“The United States Attorney’s Office will continue working with our law enforcement partners to keep children safe from dangerous predators like this defendant,” stated United States Attorney Carol Casto. “The consequences of these crimes should send a clear message - if you endanger the children of our community, we will use all of our resources to make sure that you face serious prison time.”
The FBI, the Kanawha County Sheriff’s Department, the Virginia State Police, and the New York State Police conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Parkersburg heroin dealers plead guilty to federal drug crimesRead the Press Release
CHARLESTON, W.Va. – A man and woman from Parkersburg who were caught transporting heroin pleaded guilty today, announced United States Attorney Carol Casto. David J. Kerns, 27, and Katie M. Kerns, 26 (no relation), entered their guilty pleas to possession with intent to distribute heroin.
On February 19, 2015, members of the West Virginia State Police stopped the vehicle in which David Kerns and Katie Kerns were driving in Parkersburg. Law enforcement had observed them cross into West Virginia from Ohio over the U.S. Route 50 Dupont Bridge. Troopers searched the vehicle and recovered approximately 10 ounces of heroin concealed in tubes of grease. At the plea hearing, the defendants admitted that David Kerns purchased the heroin for $20,000 from a source Katie Kerns introduced him to in Cincinnati.
The defendants each face up to 20 years in federal prison. Katie Kerns is scheduled to be sentenced on January 18, 2017. David Kerns is scheduled to be sentenced on January 19, 2017.
This case was investigated by the West Virginia State Police. Assistant United States Attorney Joshua Hanks is handling the prosecution. The plea hearings were held before United States District Judge Thomas E. Johnston.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Nitro woman pleads guilty for failing to report to prisonRead the Press Release
CHARLESTON, W.Va. – A Nitro woman pleaded guilty today for failing to report to serve her prison sentence, announced United States Attorney Carol Casto. Kelli Engler, also known as Kelli Reed and Kelli Reed-Engler, 39, faces up to five years in federal prison when she is sentenced on December 14, 2016.
Engler admitted that she was ordered by the United States District Court for the Southern District of West Virginia to serve 90 days of incarceration for a violation of her supervised release. Engler was ordered to report to prison by March 25, 2016, and was permitted by the Court to voluntarily self-report. She did not report to prison as required, and on June 28, 2016, law enforcement apprehended her in Tennessee.
Engler was on supervised release as part of her sentence for a 2011 federal conviction for access device fraud. The violations of her supervised release included not paying restitution and not reporting to the United States Probation Office as required.
The United States Marshals Service and the Rutherford County Sheriff’s Office in Tennessee conducted the apprehension and investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., conducted the plea hearing.
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New York Man Sentenced to 51 Months’ Imprisonment for Robbing Two BanksRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert Meader, age 31, of Liverpool, New York, was sentenced by United States District Court Judge Robert D. Mariani in Scranton on October 7, 2016 to 51 months’ imprisonment for robbing two banks.
According to United States Attorney Bruce D. Brandler, on May 16, 2016, Meader pleaded guilty to the crimes before Judge Mariani. During the guilty plea hearing, Meader admitted to committing the following two bank robberies:
- the robbery of $14,147 from the NBT Bank, Great Bend, Pennsylvania, on October 13, 2015; and
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the robbery of $5,721 NBT Bank, Albany, New York, on January 6, 2016.
Special Agents of the Federal Bureau of Investigation and Pennsylvania State Police arrested Meader without incident in Liverpool, New York, on January 12, 2016. Since his arrest, he has been held at the Lackawanna County Jail in Scranton, Pennsylvania. In addition to the 51 months’ imprisonment sentence, Judge Mariani ordered Meader to make full restitution to the banks in the amount of $19,988, and to serve a three year term of supervised release following his imprisonment.
The case was jointly investigated by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Onondaga County Sheriff’s Office, New York. Assistant United States Attorney John Gurganus prosecuted the case.
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Navy Sailor Pleads Guilty in Murder-for-Hire Plot to Kill his WifeRead the Press Release
NORFOLK, Va. – Chadwick Stanley Ghesquiere, 38, of Virginia Beach, pleaded guilty today to charges related to his role in an attempted murder-for-hire plot to kill his wife.
According to the statement of facts filed with the plea agreement, in August 2016, Ghesquiere hired an undercover federal special agent to murder his estranged wife. Ghesquiere provided the undercover with $1,000 in cash, 80 Adderall pills, and a firearm to commit the murder. Ghesquiere also promised to pay the undercover $50,000 of his $100,000 life insurance policy for conducting the murder.
After his arrest, Ghesquiere admitted that he tried to distance himself during the investigation by using a pre-paid burner phone to coordinate a meeting with the undercover agent. He also admitted to receiving Adderall from the military and then distributing the pills to another individual who resides in his neighborhood.
Ghesquiere will be sentenced on Jan. 23, 2017, and faces a maximum statutory penalty of 14 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Tim Quick, Special Agent in Charge of NCIS Norfolk Field Office, made the announcement after the plea was accepted by Senior Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Kevin M. Comstock is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-128.
Moscow Man Sentenced for Possession of Child PornographyRead the Press Release
COEUR D’ALENE – James Dale Pressnall, 50, of Moscow, Idaho, was sentenced today for possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Pressnall to 63 months in prison followed by ten years of supervised release. Pressnall pleaded guilty on June 21, 2016.
According to the plea agreement, between August and October 2015, a Department of Homeland Security agent downloaded child pornography image files from a computer using an online peer to peer network open to the general public. This agent later learned, by subpoena, that the computer possessing these files was within Pressnall’s Moscow home.
In November 2015, a federal search warrant was served at Pressnall’s residence. Although Pressnall was not there, agents were able to track him to another location and seize his computer. This computer was analyzed and found to contain numerous sexually explicit images of minors. Pressnall’s child pornography collection included images of minors from 24 states and 18 foreign countries.
As a result of his conviction, Pressnall will be required to register as a sex offender. Pressnall was also ordered to complete sex offender treatment following his prison sentence and will be restricted from access to minors.
The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with the assistance of the Moscow Police Department. These are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icactaskforce.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Modesto Man Pleads Guilty to Staging Car Accidents in a Scheme to Defraud Insurance CompaniesRead the Press Release
FRESNO, Calif. — Victor Hugo Soriano-Villafan, 26, of Modesto, pleaded guilty today to conspiracy to commit mail fraud in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October 2011 until August 2014, Soriano-Villafan conspired with at least six other individuals to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. As part of the scheme, the defendants would often offer to repair the recruited individual’s vehicle at automobile repair shops that Soriano-Villafan or a co-defendant owned, usually with less-than-complete repair work, and for a fee that was less than the payment from the insurance company. In all, Soriano-Villafan caused at least $750,000 in false insurance claims to be paid as a result of the conspiracy to defraud.
In each staged accident, Soriano-Villafan and other defendants used two or three vehicles and caused about $5,000 to $10,000 in damage to each vehicle. After each staged collision, the defendants submitted cover stories to the insurer that concealed the true cause of the accident. The cover story would commonly use aliases, false identities, and false addresses when describing the defendants. The defendants also used different vehicles in the staged collisions. They were able to do this by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles. The defendants did this to avoid scrutiny by the insurer that reviewed the false claims. The defendants repeated the scheme in dozens of crashes by recruiting other individuals to participate in the staged collisions. These individuals would allow their vehicles to be damaged and would submit their own claim for damages. In many instances, false claims were submitted to the recruited individual’s insurance company.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
Soriano-Villafan is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on January 30, 2017. Soriano-Villafan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Liobigildo Vargas, 46, of Turlock; and, Juan Marquez Cadenas, 30, of Patterson. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Pleads Guilty to Federal Meth Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Oscar Garcia, 46, a Mexican national illegally in the United States, pled guilty Friday, Oct. 7, 2016, in federal court in Las Cruces, N.M. to methamphetamine trafficking and money laundering charges. At the time he committed the crimes to which he pleaded guilty, Oscar Garcia was in Oklahoma state custody serving a prison sentence on an unrelated-drug trafficking conviction. Under the terms of his plea agreement, Oscar Garcia will be sentenced to 180 months in prison. He will be deported after completing his prison sentence.
Oscar Garcia was charged together with co-defendants Leslie Frank Williams, 52, Andy Garcia, 43, and Domingo Rodriguez, 46, all of Deming, and Estella Aguilar, 44, of Tucson, Ariz., in a nine-count indictment filed in April 2016. The indictment alleged that the five co-defendants conspired to distribute methamphetamine from July 2015 through April 2016. It also charged Williams with distributing methamphetamine on four occasions between Jan 2015 and Sept. 2015; Williams and Rodriguez with distributing methamphetamine in Nov. 2015; and Rodriguez, Oscar Garcia and Andy Garcia with possessing methamphetamine with intent to distribute in Jan. 2016. The indictment also charged Rodriguez, Oscar Garcia and Aguilar with conspiring to commit money laundering offenses in Feb. 10, 2016; and Aguilar with committing a money laundering offense on Feb. 10, 2016. According to the indictment, the crimes took place in Luna County, N.M. The indictment included forfeiture allegations seeking forfeiture of $1,000,000 in drug proceeds to the United States.
On Oct. 7, 2016, Oscar Garcia pled guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute and money laundering. In entering the guilty plea, Oscar Garcia admitted that from June 2015 through May 2016, he used a cell phone from his prison cell in Okla., to facilitate the distribution of approximately 4.5 kilograms of methamphetamine. Oscar Garcia further admitted that from Feb. 8, 2016 to Feb. 10, 2016, he arranged for a person to travel from Ariz., to Deming to pick up drug proceeds and to deliver the money to a co-conspirator. Oscar Garcia remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, three other defendants have entered guilty pleas. Andy Garcia pled guilty on Oct. 5, 2016. Under the terms of his plea agreement, Andy Garcia will be sentenced to ten years in prison. Rodriguez entered a guilty plea on Sept. 13, 2016, and Williams entered a guilty plea on Sept. 20, 2016. Sentencing hearings for these three defendants have yet to be scheduled.
Aguilar has entered a plea of not guilty to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Deming office of Homeland Security Investigations and the Luna County Sheriff’s Office. Assistant U.S. Attorneys Mark A. Saltman and Dustin C. Segovia of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Mexican Citizen Pleads Guilty to Possessing Firearm Connected to HomicideRead the Press Release
WICHITA, KAN. - A Mexican woman pleaded guilty Tuesday to unlawful possession of a firearm connected to a homicide case in Salina, Acting U.S. Attorney Tom Beall said.
The woman, Azucena Garcia-Ferniza, 22, a citizen of Mexico, pleaded guilty to one count of possession of a firearm while unlawfully in the United States. In her plea, she admitted that on May 7, 2015, she unlawfully possessed a Glock model 30 .45 caliber pistol. Her visitor’s visa had expired in February 1998.
In July 2016, Garcia-Ferniza was sentenced in Saline County District Court to18 months on probation for attempting to hide the gun that killed 17-year-old Allie Saum. The gun belonged to her boyfriend, Macio D. Palicio, Jr. Saum was killed by gunfire when Palicio fired at a pickup he mistakenly believed was driven by rival gang members.
Palicio was convicted in Saline County District Court and sentenced to more than 50 years for the killing.
Garcia-Ferniza’s sentencing is set for Jan. 4. She has been in custody since August 2015.
Beall commended Immigration and Customs Enforcement’s Enforcement and Removal Operations and Assistant U.S. Attorney Brent Anderson for their work on the case.