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Monday 8 August 2016
Sandwich shop operator sentenced to Federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Milton man who possessed heroin at his Huntington restaurant in 2015 was sentenced today to a year and a day in federal prison, announced United States Attorney Carol Casto. Jumol Wayne Scott, 37, previously pleaded guilty to possession with intent to distribute heroin.
On March 28, 2015, law enforcement executed a search warrant at The Sandwich Joint, which was operated by Scott in Huntington. During the search, agents located Scott in the restaurant and also seized approximately 280 grams of heroin, along with materials used to prepare heroin for distribution. Scott admitted that he distributed heroin to a confidential informant at his restaurant on multiple occasions in 2015 and intended to distribute the heroin seized by agents.
This case was investigated by the Drug Enforcement Administration Task Force. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
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 opiate painkillers and heroin in communities across the Southern District.
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Ohio Woman Convicted of Conspiring to Exploit Foreign Workers at Minnesota FarmRead the Press Release
United States Attorney Andrew M. Luger today announced the trial conviction of SANDRA LEE BART, 68, for requiring foreign workers on temporary H-2A work visas to pay illegal fees and kickbacks. BART was found guilty by a jury of conspiring with others to commit fraud.
Co-defendant WILIAN SOCRATE CABRERA pleaded guilty on July 14, 2016, to conspiracy to commit fraud in foreign labor contracting, and co-defendant JOHN JAMES SVIHEL pleaded guilty on June 16, 2016, to conspiracy to commit fraud in foreign labor contracting.
“Today’s verdict should serve as a warning to those who seek to exploit foreign workers through the U.S. guest worker visa programs,” said Assistant United States Attorney Manda Sertich. “We commend the investigating agencies for their collaboration and thank the jury for its service.”
As proven at trial, from 2008 to May of 2015 BART and CABRERA operated an unregistered business called “Labor Listo,” which they used to recruit employers like SVIHEL, who ran Svihel Vegetable Farm in Foley, Minn., to hire seasonal workers from the Dominican Republic on temporary work visas. The visa programs require employers to pay for workers’ housing and travel expenses to and from their home country, and forbid employers from collecting recruitment fees or wage kickbacks. BART and CABRERA violated all of these rules.
As proven at trial, CABRERA charged the workers a one-time recruitment fee of between $420 and $2,385, as well as an annual fee of $374, which he split with BART. The workers were told that if they didn’t pay the fees they would not be allowed to return for the following growing season. BART and CABRERA also collected full reimbursement from the workers for their flights. SVIHEL kept a percentage of the workers’ wages. BART and CABRERA were clearly using the program to profit from the workers. “Costs – pass on to applicant,” was written on a business plan from a 2008 Labor Listo meeting between BART and CABRERA.
As proven at trial, BART and CABRERA recruited SVIHEL in 2010 to hire four Dominican workers using the H-2A visa program, which provides temporary visas to agriculture workers, falsely telling him that a church in the Dominican Republic would pay for workers’ airfares. When the wage Svihel was required to pay the workers was increase from $9.75 per hour to $10.62 per hour in 2011, SVIHEL expressed hesitation in continuing to use the program. BART told SVIHEL that the workers would be willing to pay wage and airfare kickbacks to make up the difference. SVIHEL kept a total of $90,000 in kickbacks and spent it on travel and leisure expenses.
As proven at trial, when BART learned there was an investigation into the working conditions at Svihel Farm, she tried to have CABRERA talk the workers into signing a document retracting any statements they made to the Department of Labor about illegal fees. SVIHEL and BART exchanged a list of workers, labeling the workers “G” for good or “B” for bad, based on which workers they thought had spoken to the Department of Labor. The workers labeled “bad” were sent back to the Dominican Republic first in the 2014 season and were not invited back in 2015.
This case is the result of an investigation conducted by the U.S. Department of State Diplomatic Security Service, U.S. Department of Labor Office of the Inspector General, and the Homeland Security Investigations Document and Benefit Fraud Task Force.
This case is being prosecuted by Assistant United States Attorneys and Manda Sertich and David Maria.
Defendant Information:SANDRA LEE BART, 68
Seven Hills, OhioConvicted:
• Conspiracy to commit false swearing in an immigration matter, 1 count
• Conspiracy to commit fraud in foreign labor contracting, 1 count
• Conspiracy to commit wire and mail fraud, 1 count
WILIAN SOCRATE CABRERA, 43
Dominican RepublicConvicted:
• Conspiracy to commit fraud in foreign labor contracting, 1 count
JOHN JAMES SVIHEL, 54
Foley, Minn.Convicted:
• Conspiracy to commit fraud in foreign labor contracting, 1 countNorth-Central Iowa Man Pleads Guilty to Unlawfully Storing Hazardous WasteRead the Press Release
Richard Delp, 62, from Cedar Falls, Iowa, pled guilty August 3, 2016, in federal court in Cedar Rapids, to a charge of unlawfully storing hazardous waste.
Evidence presented at the change of plea hearing revealed Delp, from about January 1, 2004, and continuing to on or about October 23, 2012, knowingly stored, or caused the storage of, hazardous waste by storing drums, tanks, totes, and vats containing corrosive and toxic hazardous waste at his now defunct Cedar Valley Electroplating facility in Cedar Falls, Iowa, without a permit authorizing the storage. Delp continued to unlawfully store the hazardous waste despite being alerted to the problem in 2005 and, again, in 2010 by civil inspections conducted by the United States Environmental Protection Agency (“EPA”). Instead of addressing the problem, he abandoned the hazardous wastes when he closed the business in September 2011. This resulted in the public paying more than $789,138.03 in clean-up costs.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Delp remains free on bond previously set. Delp faces a possible maximum sentence of 5 years’ imprisonment, a fine of not more than $50,000 for each day of violation, a $100 in special assessments, and up to five years of supervised release following any imprisonment.
The case was investigated by the Environmental Protection Agency Criminal investigation Division and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR16-2022.
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North Carolina Man Sentenced on Methamphetamine ChargeRead the Press Release
ROANOKE, VIRGINIA – A North Carolina man, who previously pled guilty to federal drug conspiracy charges, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Bradley Scott Kennedy, 38, of Jonesville, North Carolina, previously pled guilty to one count of conspiring to distribute methamphetamine. Today in District Court, Kennedy was sentenced to 90 months in prison.
“Investigating and prosecuting cases involving methamphetamine trafficking takes the work of multi-agency coalitions working together, on the local, state and federal levels,” United States Attorney Fishwick said today. “While there is still work to be done in the fight against methamphetamine abuse, we are proud to partner with our partners in law enforcement to continue to bring strong cases, like this one, against those who traffic in this deadly substance.”
The investigation of the case was conducted the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Nigerian Pleads Guilty to Bank Fraud ChargeRead the Press Release
ERIE, Pa. - A citizen of Nigeria pleaded guilty in federal court to a charge of bank fraud, United States Attorney David J. Hickton announced today.
Ayisat Enitan Yekinni, 30, pleaded guilty to one charge before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Yekinni, using multiple aliases and corresponding false identification documents, engaged in a scheme to defraud various financial institutions by funneling multiple fraudulently issued or stolen checks through fraudulently opened bank accounts at banks across the United States.
Judge Cercone scheduled sentencing for December 8, 2016. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Yekinni.
New York Man Pleads Guilty in Identity Theft SchemeRead the Press Release
ERIE, Pa. – A former resident of Ozone Park, New York pleaded guilty in federal court to charges of conspiracy to commit wire fraud and aggravated identity theft, United States Attorney David J. Hickton announced today.
Abiodun Bakre, 51, pleaded guilty to nine counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Bakre opened numerous bank accounts using stolen identities for the purpose of using those bank accounts as repositories for fraudulently obtained federal tax refunds. In the course of the investigation, a search of Bakre’s residence uncovered multiple ledgers containing hundreds of stolen identities and numerous false identification documents which were used in furtherance of the conspiracy.
Judge Cercone scheduled sentencing for December 8, 2016. The law provides for a maximum total sentence of 36 years in prison, a maximum fine of $2,250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Bakre.
Mount Jackson Man Sentenced on Cocaine ChargeRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Mount Jackson man on a federal cocaine charge.
Victor Enrique Velez-Sellas, 31, of Mount Jackson, Va., who previously pled guilty to one count of conspiring to distribute 500 grams or more of cocaine, was sentenced last week in the United States District court for the Western District of Virginia in Harrisonburg to 66 months in federal prison.
“It is a priority of the United States Attorney’s Office to prosecute those individuals who distribute illegal drugs in our communities,” United States Attorney John P. Fishwick Jr. said today. “Keeping our neighborhoods safe from drug traffickers, while also providing those struggling with addiction the support they need is a priority for Department of Justice.”
According to evidence presented at previous hearings by Assistant United States Attorney Jeb Terrien, between 2013 and February 2015 Velez-Sellas participated in a conspiracy to distribute cocaine and traffic in firearms. The defendant often obtained drugs from sources in Puerto Rico, North Carolina and West Virginia. He then sold the drugs, or provided them on consignment, to other drug dealers located in and around Winchester, Virginia. Additionally, the defendant is known to have sold two additional firearms.
Velez-Sellas was arrested on February 18, 2015 by law enforcement officers on Interstate 81 in Frederick County, Virginia while the defendant was in the process of traveling to make a sale of cocaine. At the time of his arrest, the defendant was in possession of a digital scale, a Ruger P89 9mm pistol and 568.2 grams of cocaine.
The investigation of the case was conducted by the Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force. Assistant United States Attorney Jeb Terrien prosecuted for the case for the United States.
Mexican citizen sentenced to 15 months in prison for illegally reentering the countryRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a man from Mexico was sentenced last week to 15 months in prison for returning to the United States illegally after being deported.
Elior Daniel Sifuentes, 34, of Monterrey, Nuevo Leon, Mexico, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of aggravated illegal re-entry of a removed alien. According to the April 14, 2016 guilty plea, Bossier City Police arrested Sifuentes on October 26, 2015 for failure to appear for various traffic violations. After his arrest, police discovered that Sifuentes was an illegal alien who had been deported in April of 2009 for a prior felony of illegal use of a weapon in state court and had not received permission to reenter the country.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Lewiston Woman Sentenced to Probation for Embezzling Postal FundsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jayme L. Temoke, 29, of Lewiston, Maine was sentenced today in U.S. District Court by Judge Jon D. Levy to two years of probation for misappropriation of postal funds. She was also ordered to pay $4,367 in restitution. Temoke pleaded guilty on February 23, 2016.
According to court documents, in June and July 2014, Temoke used her position as postmaster relief for the West Poland post office to embezzle $4,367 in postal funds by cashing money orders and not reporting their sale until she was able to cover the shortage with the proceeds of later embezzled money orders. When confronted, she told investigators that she was a single mother of three children who got into financial difficulty, started taking money intending to pay it back, but was unable to do so.
The investigation was conducted by the U.S. Postal Service, Office of Inspector General.
Kingsmen Motorcycle Club Member Pleads Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Emmett Green, 45, of Delevan, N.Y., pleaded guilty to RICO conspiracy before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
“For the first time in this prosecution, a member of the Kingsmen Motorcycle Club has acknowledged that his former group is nothing other than a criminal front, engaging in such crimes as drug distribution, firearms sales, committing violence, and promoting prostitution,” said U.S. Attorney Hochul. “Any member of this or any other criminal organization who engages in similar criminal conduct should expect that they too will be brought to justice in the near future.”
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant admitted being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such unlawful purposes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Green further admitted that the Kingsmen operated by a strict chain of command and, at one point, the defendant was the Regional President of New York State serving under the direction of Kingsmen National President, David Pirk. Green also admitted that the Kingsmen disciplined non-compliant members. On December 2014, the defendant and co-defendant Robert Osborne, Jr., and others, assaulted a former Kingsmen for breaking club rules by punching the victim repeatedly in the body and chest and knocking him to the ground.
Green is one of 17 defendants arrested in this case and the first to be convicted. Other acts of alleged violence by the Kingsmen include the murders of KMC members Paul Maue and Daniel "DJ" Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on September 6, 2014.
The plea is the culmination of the an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. Assisting in the investigation: the FBI Knoxville, TN, and Jacksonville, FL Field Offices, Immigration and Customs Enforcement, Homeland Security Investigations, the Erie County Sheriff’s Office, the Buffalo Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, the Olean Police Department, the Lancaster Police Department, the Amherst Police Department, the Town of Tonawanda Police Department, the Niagara Frontier Transportation Authority Police, the Cattaraugus County Sheriff’s Department, and the Hamburg Police Department.
Sentencing will be scheduled at a later date before Judge Wolford.
KCK Woman Pleads Guilty in Robbery at Stilwell, Kan., BankRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., woman pleaded guilty Monday to federal charges that she took part in an armed robbery at a Stillwell bank before the robbers led police on a high speed chase with a child in the car, Acting U.S. Attorney Tom Beall said.
Danille Morris, 26, Kansas City, Kan., pleaded guilty to one count of bank robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. She admitted she cased the bank, provided the getaway car and was in the car when the robbers fled the bank.
Two co-defendants already have entered pleas. Gary Jordan, 39, Kansas City, Kan., pleaded guilty to one count of bank robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction. Co-defendant Jacob L. Smith, 18, Kansas City, Kan., pleaded guilty to one count of bank robbery and one count of brandishing a firearm during a robbery.
In their pleas, Jordan and Smith admitted they were armed with handguns when they entered the First National Bank at 7460 W. 199th Street in Stilwell, Kan. They held tellers at gunpoint before fleeing with cash stuffed in a backpack. Jordan took the wheel of the getaway car.
During the next 25 minutes, the robbers were pursued by the Kansas Highway Patrol, the Leawood Police Department and other law enforcement agencies as they fled across the Kansas/Missouri state line. During the chase, Smith fired at officers six times from the car. After the car overturned on a sharp turn, the defendants were arrested. Throughout the chase, co-defendant Morris and her 19-month-old child were in the car. She was seated in the front passenger seat at the time the vehicle crashed. The child was fastened in a car seat in the back seat.
Morris is set for sentencing Dec. 20. The crimes carry the following penalties: Up to 25 years in federal prison and a fine up to $250,000 for robbery, not less than 10 years and a fine up to $250,000 for discharging firearms in a robbery, and up to 10 years and a fine up to $250,000 for unlawful possession a firearm by a felon.
Beall commended all the agencies that assisted in the investigation including the FBI, the Johnson County Sheriff’s Office, the Kansas Highway Patrol, the Leawood Police Department, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department, as well as the prosecutor, Assistant U.S. Attorney Chris Oakley.
Justice Department Reaches Settlement to Resolve Allegations Against HSBC for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department announced today that HSBC Finance Corporation, as successor to HSBC Auto Finance Inc., has agreed to pay $434,500 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing 75 cars owned by protected servicemembers without obtaining the necessary court orders. The settlement is subject to approval by the U.S. District Court of the Northern District of Illinois.
During the investigation, the department learned that HSBC conducted repossessions without court orders even when it had evidence in its own records suggesting that a borrower could be a protected servicemember. In one such case, HSBC continued with a repossession after learning that an initial attempt was unsuccessful because guards would not allow the “repo truck” to enter a “secured military post” in Indiana, where the car was located.
“HSBC repossessed cars without taking into account their owners’ ongoing service to our country,” said Principal Deputy Associate Attorney General Bill Baer. “This settlement rights this wrong, compensates the affected servicemembers and honors our commitment to making sure military members are treated fairly at all times.”
“Servicemembers should never have to worry that they will lose their cars while they answer our nation’s call to duty,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “HSBC should have heeded these concerns before repossessing vehicles. I commend the company for working cooperatively to reach an appropriate resolution once the department raised the issue.”
The settlement covers repossessions that occurred between 2008 and 2010. HSBC Auto Finance Inc. originated and serviced car loans until 2010, when HSBC sold its car lending operations and assets to Santander Consumer USA Inc. In February 2015, the department entered a settlement with Santander that provides servicemembers with more than $10.5 million in compensation for repossessions that violated the SCRA. As part of the investigation of Santander’s repossession practices, the department learned that HSBC sold to Santander the right to collect debts owed by servicemembers after their cars had been repossessed by HSBC without court orders.
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, HSBC prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
Most of the servicemembers compensated through this settlement received partial compensation through the settlement with Santander, and this agreement requires HSBC to pay $5,500 to each of these servicemembers. HSBC must pay $11,000 to affected servicemembers who did not receive payments from the Santander settlement. HSBC also must repair the credit of all affected servicemembers. An independent settlement administrator will contact servicemembers to be compensated through this settlement in the upcoming months. The independent administrator will locate victims and distribute payments at no cost to the servicemembers.
The department’s enforcement of the SCRA and other fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the division has provided over $1.4 billion in monetary relief for individual borrowers and affected communities through its enforcement of the Fair Housing Act, the Equal Credit Opportunity Act and the SCRA.
The SCRA provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov. Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
HSBC Complaint
HSBC Proposed Consent Order
Jury Convicts Joseph E. Armstrong of Filing A False Tax ReturnRead the Press Release
KNOXVILLE, Tenn. - Following a four-day trial in U.S. District Court, Knoxville, Tenn., on Aug. 8, 2016, a jury convicted Joseph E. Armstrong, 59, of Knoxville, Tenn., of filing a false tax return.
Sentencing is set for 10:00 a.m., on Nov. 30, 2016, in U.S. District Court in Knoxville, Tenn. Armstrong faces a possible sentence of up three years in prison, a term of supervised release of not more than one year, a fine of up to $250,000, a special assessment of $100, and restitution.
According to evidence presented at trial Mr. Armstrong filed his federal income tax returns for the year 2008 and failed to disclose in those returns that he engaged in an investment activity from which he derived over $300,000 in income. Although Armstrong knew that he was required by law to disclose the income of this investment activity, he willfully failed to do so.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Armstrong included the IRS-Criminal Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorneys Charles E. Atchley, Jr. and Frank M. Dale, Jr. represented the United States.
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Illinois Woman Pleads Guilty to Stealing Government FundsRead the Press Release
Stolen Federal Tax Refunds Obtained from Fraudulent Income Tax Returns
A River Grove, Illinois, woman pleaded guilty today to stealing more than $93,000 from the United States, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the plea agreement, Rosa Alverio, 38, admitted that from March 2012 to December 2014, she participated in a scheme to steal money from the United States through the filing of false income tax returns. Alverio deposited into her bank account income tax refunds that she knew were the proceeds of fraudulent tax returns. According to the plea agreement, the fraudulent tax returns were filed in people’s names without their knowledge or consent. Alverio admitted that as part of the scheme she caused 32 fraudulent tax refunds to be deposited into an account that she controlled.
Alverio, along with three codefendants, were charged on June 23, in a 24-count indictment with conspiracy to defraud the Internal Revenue Service (IRS) and theft of public money. Sentencing is scheduled for Nov. 10. Alverio faces a statutory maximum sentence of 10 years in prison, along with a fine of up to $250,000, and three years of supervised release.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of the IRS-Criminal Investigation, who investigated the case and Tax Division Trial Attorneys Ryan R. Raybould and Timothy M. Russo, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Idaho Man Pleads Guilty to Distribution of Meth Resulting in DeathRead the Press Release
GREAT FALLS – Thomas Joseph Wehner Jr., 40, of Moyie Springs, Idaho, pleaded guilty today to one count of distribution of methamphetamine resulting in death. The charges stemmed from a six-count indictment in February of this year. Wehner appeared before U.S. District Court Judge Brian Morris to enter the guilty plea.
Had the case proceeded to trial, the United States was prepared to prove that on September 22, 2015, deputies in Boundary County, Idaho, responded to a report of a business burglary. The business owner told authorities that chainsaws, gold, numerous firearms, and his truck had been stolen during the preceding night. The business owner told authorities two days later that he had visited Wehner’s home to discuss a business issue and observed a chainsaw he believed to be one of the ones stolen in the partially opened trunk of a car.
On September 30, 2015, Meagher and Broadwater County deputies, along with Montana Highway Patrol Officers, responded to a high speed pursuit between White Sulphur Springs and Townsend. The driver eventually stopped and law enforcement identified the vehicle as belonging to Wehner, although he was not in the vehicle when it was stopped. Through communication with Boundary County deputies, Montana law enforcement determined that the vehicle contained one of the firearms that had been reported stolen, and that Wehner had at one point been in the vehicle.
The morning of October 1, Great Falls police officers were dispatched to a report of a dead male. The deceased victim’s wife told law enforcement that Wehner had shown up at her house the previous evening with several water bottles of what he said was “pure dope.” The defendant and the victim proceeded to drink out of one of the bottles and the victim became agitated and died sometime during the early morning. One of the recovered water bottles was sent to the DEA lab for testing and was determined to contain a half gram of methamphetamine with a purity of 100%. An autopsy revealed that the victim had died after ingesting a lethal amount of methamphetamine.
Almost simultaneously, Judith Basin County deputies responded to a call from a woman in Hobson, Montana. She said that the defendant had shown up at her home that morning driving a rental vehicle. He was behaving erratically and stated that there was a dead body lying on the ground in Great Falls. She later called the authorities again to inform them that Wehner was at a nearby bank. Detectives found him at the bank, and Wehner agreed to accompany them to the police station to be interviewed. In Wehner’s rented vehicle, detectives found hydrocodone pills, a black suitcase with two water bottles and a ziplock bag that contained methamphetamine. Wehner admitted that he had provided the methamphetamine to the victim and had intended to provide him with some of the drug to sell. He also admitted to the Idaho burglary.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Great Falls Police Departments, along with the Drug Enforcement Agency, The Montana Highway Patrol, the Meagher, Broadwater, Judith Basin, and Cascade County Sheriff’s Offices, and the Boundary County, Idaho Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jessica Betley.
Huntington woman and Columbus man plead guilty to Federal heroin chargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman and a Columbus man pleaded guilty today to federal drug charges, announced United States Attorney Carol Casto. Rhonda Gail Akers, 52, and Tyshawn Desmeon Davis, 28, each entered guilty pleas to possession with intent to distribute heroin.
On June 29, 2015, law enforcement executed a search warrant at 1751 Buffington Avenue in Huntington after a confidential informant purchased heroin at the residence. Akers and Davis were both located inside the residence during the search. Davis was found in possession of approximately 30 grams of heroin. Agents also seized approximately 35 additional grams of heroin from various locations in the residence. Akers and Davis admitted to law enforcement that they had been involved in distributing heroin from the residence.
Akers and Davis both face up to 20 years in federal prison when they are sentenced on November 7, 2016.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
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 opiate painkillers and heroin in communities across the Southern District.
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Huntington man sentenced to four years and nine months in Federal prison for heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who possessed and distributed heroin was sentenced today to four years and nine months in prison for a federal drug charge, announced United States Attorney Carol Casto. Jeremiah Eugene Caldwell, 33, previously pleaded guilty to possession with intent to distribute heroin.
On September 9, 2015, deputies with the Cabell County Sheriff’s Department executed a search warrant at Caldwell’s residence located at 1400 Cedar Crest Drive in Huntington. Deputies recovered approximately 30 grams of heroin, a set of digital scales, and four firearms during the search. Caldwell was present in the residence and was arrested at that time. Caldwell admitted to possessing the drugs and the guns. He further admitted that he had been distributing heroin for a period of approximately six months.
The case was investigated by the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
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 opiate painkillers and heroin in communities across the Southern District.
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Heyburn Man Arrested for Drug TraffickingRead the Press Release
POCATELLO – Jesus R. Perez-Martinez, 59, of Heyburn, Idaho, was arrested August 3, 2016, on charges of drug trafficking, U.S. Attorney Wendy J. Olson announced. Perez-Martinez was arraigned on the charges this morning in federal court. A federal indictment was filed in United States District Court on July 26, 2016.
The indictment alleges that three times between June 2015 and February 2016 Perez-Martinez possessed with intent to distribute and did distribute methamphetamine to another person. The indictment also alleges that Perez-Martinez possessed with intent to distribute and did distribute cocaine to another person.
The case is being investigated by the Idaho State Police and the Minidoka-Cassia Counties Drug Task Force.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Healthcare Settlement Announced with Easton HospitalRead the Press Release
PHILADELPHIA - Northampton Hospital Company, LLC d/b/a Easton Hospital (“Easton Hospital”) has agreed to resolve allegations relating to improper billing for inpatient procedures performed at Easton Hospital. Easton Hospital provides inpatient and outpatient healthcare services in Easton, Pennsylvania. The hospital’s services include cardiovascular, orthopedic, oncology, maternal, child health, pediatric, physical therapy rehabilitation, and mental health services. In addition, it offers surgical care, emergency care, occupational and speech therapy, wound healing management, imaging, radiology, home health, hospice, and laboratory services.
According to the United States, from January 1, 2008 through June 27, 2014 Easton Hospital billed inpatient Medicare Part A claims using particular primary diagnosis codes that did not justify admission to an acute care hospital because the codes correspond primarily to long-term, stable conditions. According to the United States, these primary diagnosis codes were used to justify inpatient admissions for routine procedures that should have instead been performed on an outpatient basis. Had these procedures been performed on an outpatient basis, the procedures would have been billed at a lower rate. Easton Hospital has agreed to pay $325,000 to settle the matter.
The matter was investigated by the Department of Health Office of the Inspector General and Human Services and Healthcare Analyst George Niedzwicki of the U.S. Attorney’s Office. The matter was handled by Assistant U.S. Attorney Veronica J. Finkelstein.
The settled civil claims are allegations only. There has been no determination of civil liability, and Easton Hospital denies any such liability.
Fort Hall Man Sentenced for Drug TraffickingRead the Press Release
POCATELLO – Duncan Tendoy, 52, of Fort Hall, Idaho, was sentenced today in United States District Court to 24 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Tendoy to serve three years of supervised release. Tendoy pleaded guilty to the charge on April 26, 2016.
On August 9, 2015, an officer with the Fort Hall Police Department was checking a vehicle when he noticed Tendoy leaving the residence of a known drug offender on the Fort Hall Indian Reservation. Officers talked to Tendoy and noticed that he was touching his pockets repeatedly in a suspicious manner. Officers then saw a clear plastic bag in Tendoy’s hand. The bag contained a crystallized substance which Tendoy admitted was methamphetamine. Tendoy admitted that he had just bought the methamphetamine from a person in a nearby residence. He admitted that he possessed the controlled substance intending to later sell and distribute it to someone else. He also admitted that he was in the drug business.
The case was investigated by the Fort Hall Police Department and the Bingham County Sheriff’s Office.
Former President and CEO of Montgomery-Based Steel Company Sentenced to Six Years in Prison for Bankruptcy FraudRead the Press Release
Montgomery, Alabama – Kennon W. Whaley, 51, from Auburn, was sentenced to 72 months in federal prison on August 3, 2016. In May, Whaley was convicted by a federal jury of two counts of concealment of bankruptcy assets while his company, Southeastern Stud & Components, was in Chapter 11 bankruptcy proceedings.
The evidence at trial showed that during the bankruptcy process Whaley redirected a $260,000 insurance payment intended for the company in 2010 to pay off a personal gambling debt. In January of 2010, Mr. Whaley traveled to the Wynn Las Vegas Casino where he incurred a $100,000 gambling debt during a trip of just four days. The evidence also showed that Wynn Las Vegas began to put pressure on Whaley to pay the debt beginning in February of 2010. Casino records from Wynn Las Vegas, and the bank records of the account where the insurance proceeds were deposited, showed that Whaley used the company’s insurance money pay off his gambling debt and to pay himself over $30,000 in cash. None of these transactions were ever disclosed by Whaley to the Bankruptcy Court as required.
The casino records also showed that once his debt was paid off in October of 2010, Whaley made a return trip to Wynn Las Vegas during which he spent over $20,000 at the casino and sent a limousine to pick up his wife at the airport. At that time, Southeastern Stud was still in bankruptcy and approximately 70% of its employees had lost their jobs.
Evidence presented by the U.S. Attorney’s Office at sentencing demonstrated that during the investigation of Whaley’s crimes by the FBI, he obstructed justice by asking his former Chief Financial Officer (CFO) to falsify an affidavit to be submitted to the FBI. The sentencing judge also found that Whaley had directed this same employee to falsify documents that were submitted to the bankruptcy court in order to conceal the diverted insurance proceeds used for his gambling debts.
The case was investigated by the FBI and was prosecuted by Assistant United States Attorneys Brandon Essig and John Geer.
Former Boston Police Officer Charged with Access Device FraudRead the Press Release
BOSTON – A former Boston Police officer pleaded guilty today in connection with purchasing and using gift cards obtained from the return of stolen merchandise.
Eddie Odney, 38, pleaded guilty to one count of access device fraud. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Nov. 3, 2016. Odney has agreed to resign his position as a Boston Police Officer, effective today.
Over the course of over a year and a half, Odney purchased approximately $5,000 worth of gift cards that he believed were obtained from the return of stolen merchandise at stores including T.J. Maxx, Macy’s, and HomeGoods. Odney paid cash for these cards and used them to make over $1,600 in purchases.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation; and Superintendent Frank Mancini of the Boston Police Department’s Anti-Corruption Division; made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Firms That Formerly Owned and Managed Sherman Hills Apartments in Wilkes-Barre Agree to Pay $125,000 to Settle Federal False Claims Act Civil AllegationsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sherman Hills Realty LLC and Park Management LLC (collectively referred to as “Sherman Hills Realty”), have agreed to pay $125,000 to resolve allegations that Sherman Hills Realty violated the False Claims Act.
The United States alleges that Sherman Hills Realty failed to provide qualifying tenants with utility reimbursement funds and instead kept the funds. The funds were provided by the United States Department of Housing and Urban Development (HUD) to Sherman Hills Realty to be disbursed to low and no income tenants at the Sherman Hills Apartments in Wilkes-Barre, Pennsylvania.
According to United States Attorney Peter Smith, this settlement agreement resolves allegations that Sherman Hills Realty, which has its headquarters in Brooklyn, New York, was an owner and manager of a multifamily property located at 300 Parkview Circle, Wilkes-Barre, PA (Sherman Hills Apartments) and failed to provide some of the qualifying low and no income tenants at the facility with utility reimbursement funds during the period April 1, 2011 through April 30, 2014.
Pursuant to a Housing Assistance Payments (HAP) contract, Sherman Hills Realty was required to submit to HUD accurate utility reimbursement requests for qualifying low and no income tenants on each of the monthly vouchers submitted to HUD. Pursuant to the HAP contract and HUD policies and regulations, Sherman Hills Realty had an obligation to provide Sherman Hills Apartment tenants with utility assistance payments or credit the funds back to HUD. Sherman Hills Realty was not permitted to retain funds for utility assistance payments if the funds were not provided to the tenants. The purpose of the funds is to assist very low or no income tenants with the provision of basic necessities.
Sherman Hills Apartments was taken over by another company in April 2014.
According to Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General, “This settlement is the latest example of our continued effort to collaborate with the Department of Justice as a means to protect HUD subsidized residents with the greatest financial needs. This agreement could not have occurred without the selfless efforts of prosecutors and investigators, who ensured HUD's program was not compromised at the expense of its tenants."
The case is the result of an investigation by the United States Attorney’s Office for the Middle District of Pennsylvania and the United States Department of Housing and Urban Development, Office of Inspector General. The case was litigated by Assistant United States Attorney Timothy S. Judge.
Tenants and former tenants of Sherman Hills Apartments seeking information concerning utility reimbursement funds that may have been wrongfully withheld by Sherman Hills Realty LLC and/or Park Management LLC should contact the Philadelphia Regional Office of the U.S. Department of Housing and Urban Development, 100 Penn Square East, Philadelphia, PA 19107 at (215) 656-0500.
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Federal Law Enforcement Leaders to Hold Community Open House August 9 and 10 at Boise City LibraryRead the Press Release
BOISE – U.S. Marshal Brian Underwood and U.S. Attorney Wendy Olson will hold two community open house meetings this week at the Boise City Library. Underwood and Olson will be at the Boise City Library, 715 South Capitol Blvd., on Tuesday, August 9 from 1 – 3 p.m. and again on Wednesday, August 10 from 4 – 6 p.m. to meet and visit with persons interested in learning more about federal law enforcement in Idaho.
“We will be available for any question, concern or issue community members would like to talk about,” said Olson. “Frankly, we simply want members of the public, whom we serve, to have a chance to personally visit with their federal law enforcement leaders in Idaho. We recognize that it is not always practical for people to come to our offices.”
“Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people,” said Underwood. “In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Like our local law enforcement partners, we want to ensure that we are doing our part in community policing and relationship building.”
Underwood and Olson were both appointed to their positions in 2010 by the President. They serve the entire state of Idaho, which is a single federal judicial district.
Federal Jury Convicts Fort Worth Woman Who Ran House Cleaning Service on Forced Labor and Harboring Illegal Alien ChargesRead the Press Release
FORT WORTH, Texas — Following a one-week trial in Fort Worth, Texas, before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Olga Sandra Murra, 64, of Fort Worth, on all four counts of an indictment charging federal felony offenses related to her harboring two women she illegally brought into the U.S. from Mexico and forcing them, with threat of serious harm and physical restraint, to work for her without pay. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Specifically, late Friday afternoon, the jury convicted Murra, a/k/a “Olga Sandra Capon-Meneses,” on two counts of forced labor and two counts of harboring an illegal alien. Each forced labor count carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. Each harboring count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Following the verdict, Judge O’Connor remanded Murra into custody. Sentencing is set for November 28, 2016.
The government presented evidence at trial that from her birth in 1952 to 1997, Murra lived in Mexico. In 1997, Murra, her immediate family, and several other individuals she brought with her, including V.R., an adult female in her 30’s, moved to El Paso, Texas, and then later to Fort Worth. In 1998, Murra arranged for I.G., an adult female in her 20’s, to be transported into the U.S. Both V.R. and I.G. are Mexican citizens and both entered and remained in the U.S. illegally.
From September 1997 to April 29, 2011, Murra kept one or both of the women at her various residences in El Paso and Fort Worth and maintained possession of their identification documents.
In both El Paso and Fort Worth, Murra operated a house-cleaning business. She directed both V.R. and I.G. to work for her business, and both cleaned three to four homes per day up to seven days per week. In addition, the women cleaned Murra’s residence and prepared meals for her. Murra, however, did not pay either woman for this work. In fact, Murra required the two women give her all of the money they earned cleaning houses.
Murra represented herself to the women as the voice of God on earth, and required them to listen to religious recordings of Murra reading Bible verses and discussing their meaning while they cleaned homes. She caused both women to believe they would go to hell if they did not obey her. Murra threatened at least one of the women that if she disobeyed her, she would contact immigration and the woman would be buried in a field with other illegal aliens. Murra also struck at least one of the women.
Murra also restricted the women’s freedom within her house, requiring at times they ask for permission to go to the bathroom. Murra also prohibited them from talking to other individuals living at the residence. Generally, the women slept on the floor of a bedroom in the residence, but when she punished them, Murra required them to sleep in the garage, laundry room or backyard and restricted their food to bread and water.
In 2001, Murra provided I.G. with false identification documents and directed I.G. to work at McDonald’s and Walmart, in addition to working for her house-cleaning business. I.G. worked for approximately one year at McDonald’s in 2001 and at Walmart for approximately six months in 2003. Murra required I.G. to give all the checks she received to her, not allowing I.G. to keep any of the money she earned.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI). Special Assistant U.S. Attorney Michelle Allen-McCoy and Assistant U.S. Attorney Andrew Wirmani are in charge of the prosecution.
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Department of Justice Expands Services for Crime VictimsRead the Press Release
New Federal Rule Helps States Plan for Historic Funding Increases
The Department of Justice today published a final rule expanding the ability of victim serving agencies and organizations across the nation to reach and serve more crime victims at a time of substantial increases in victim assistance funding. Victims of Crime Act (VOCA) funding directed to the states for victim assistance has more than quadrupled in the last two fiscal years.
“Supporting the victims of crime is as essential to the pursuit of justice as making arrests and prosecuting cases,” said Attorney General Loretta E. Lynch. “This new rule significantly expands state and local agencies’ ability to reach survivors of a wide range of crimes, to help them recover from their ordeals, and to empower them to secure a brighter future for themselves and their loved ones. I want to thank Congress for their outstanding commitment to the rights and well-being of victims, and I pledge that the Department of Justice will continue to do everything in our power to promote healing, restore lives, and secure meaningful justice for every American affected by crime.”
Federal funding for state victim assistance programs comes from the Crime Victims Fund, a repository of federal criminal fines, forfeitures and special assessments. This fund does not include tax dollars. The states, in turn, provide sub-grants to local public agencies and community service providers that help individuals, families and communities recover from both the initial trauma and the long-term effects of victimization.
Congress raised the appropriations level of the Crime Victims Fund from $745 million in fiscal year 2014 to more than $2.3 billion in fiscal year 2015, effectively quadrupling the amount available for crime victim assistance programs. Congress raised the cap again to more than $3 billion in fiscal year 2016.
The Victim of Crime Act (VOCA) Formula Victim Assistance Grant Program rule—clarifies and expands support for a continuum of services to crime victims, including:
- comprehensive legal assistance, including victims’ rights enforcement and civil legal assistance related to the victimization;
- transitional housing for victims of domestic violence, human trafficking and other crimes and expanded coverage of relocation expenses;
- forensic interviewing and some medical expenses;
- volunteer trainings, including support for Court Appointed Special Advocates; and
- victim-centered restorative justice.
The rule also emphasizes that programs that serve victims of elder abuse, human trafficking, financial fraud and other crimes are eligible for VOCA funding, and removes language that prevented VOCA funding from supporting services to victims in detention and correctional facilities. The rule defines the statutory term victim of child abuse, to make clear that the term covers a broad array of harm inflicted on children and includes children who witness violence or who are victims of pornography.
The rule, which replaces the VOCA Victim Assistance Final Program Guidelines, is effective today following a 30 day period for public notice and comment after publication in the Federal Register. Recipients of VOCA Assistance grant funds from the Office for Victims of Crime must comply with the rule after the effective date. For more information, click here.
Defendant Pleads Guilty to Involuntary Manslaughter in Shooting Death at Fort RileyRead the Press Release
TOPEKA, KAN. – A 19-year-old defendant pleaded guilty Monday to a charge of involuntary manslaughter in the shooting death of a 16-year-old boy on Fort Riley, Acting U.S. Attorney Tom Beall said.
Juwuan D. Jackson, 19, who lived on the Fort Riley base at the time, pleaded guilty to one count of involuntary manslaughter. He admitted that on Sept. 11, 2015, he handled a firearm in a reckless manner, resulting in the shooting death of 16-year-old Kenyon Givens, Jr., who also lived on Fort Riley.
At Monday’s hearing, prosecutors said when military police responded to the shooting Jackson told them an unknown intruder wearing a mask had forced his way into the home and shot Givens. Paramedics were not allowed to enter and treat Givens until military police had searched the house for an intruder. At the same time, police began searching the neighborhood to find the weapon and the masked shooter.
Investigators eventually learned that Jackson had been playing with a loaded .22 caliber handgun before the shooting. Jackson spun the chamber while holding the trigger. The revolver discharged and a bullet struck Givens in the chest.
Sentencing is set for Jan. 11. Jackson faces a maximum penalty of eight years in federal prison. Beall commended the Army Criminal Investigations Division and the FBI, Special Assistant U.S. Attorney Robin Graham and Assistant U.S. Attorney Tony Mattivi for their work on the case.
Dallas Armed Carjackers Sentenced to Lengthy Federal Prison TermsRead the Press Release
DALLAS — Two Dallas residents who pleaded guilty to federal felony offenses stemming from their armed carjacking of two victims in Dallas in January 2015 have been sentenced to lengthy prison sentences, announced U.S. Attorney John Parker of the Northern District of Texas.
Monica Renee Metcalf, 24, was sentenced today by U.S. District Judge Sam A. Lindsay to serve a total of 176 months in federal prison. She pleaded guilty in November 2015 to one count of carjacking and aiding and abetting and one count of using, carrying, and brandishing a firearm in furtherance of a crime of violence and aiding and abetting.
Her then-boyfriend, co-defendant Felipe Pinon, 28, who pleaded guilty to the same offenses, was sentenced by Judge Lindsay in April 2016 to serve 360 months in federal prison.
According to documents filed in the case, on January 18, 2015, Metcalf approached an individual (Victim 1) at a gas station near the 3300 block of Webb Chapel Extension in Dallas and asked Victim 1 for a ride. Metcalf directed Victim 1 to drive her to an apartment complex across the street, and when they arrived there, Pinon approached the vehicle and spoke with Metcalf. Metcalf then asked Victim 1 to give Pinon a ride as well, but Victim 1 refused. Pinon then brandished a handgun and pointed it at Victim 1 and demanded that Victim 1 give him everything he had. Pinon and Metcalf ordered Victim 1 out of the vehicle and drove away in it.
The next day, Metcalf approached and briefly spoke with an individual (Victim 2) who was seated in his vehicle near the 300 block of S. Seagoville Road in Dallas. As Metcalf walked away from Victim 2, Pinon approached Victim 2. Pinon brandished a handgun and ordered Victim 2 to get out of the vehicle. Then, Pinon, Metcalf, and another individual drove away in Victim 2’s vehicle.
The Dallas Police Department and the Federal Bureau of Investigation conducted the investigation. Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay and Assistant U.S. Attorney Brian Poe prosecuted the case.
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Craigslist Seller Sentenced for Five Armed RobberiesRead the Press Release
ATLANTA - Lavunte Collins has been sentenced on five counts of armed robbery and one count of brandishing a firearm in furtherance of a crime of violence in connection with his robbery of a string of victims that he lured through Craigslist.
“This case highlights the dangers of meeting strangers for commercial transactions of any kind,” said U.S. Attorney John A. Horn. “The victims only expected to purchase electronic devices, but may now suffer from the trauma of these encounters for years. To avoid becoming a victim of these crimes, we urge members of the public to arrange meetings with online vendors in public places, such as local police departments.”
“Today’s sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court: Between May 6, 2013, and May 20, 2013, Collins robbed five sets of victims of their phones, wallets, and cash after arranging to meet the victims through Craigslist. In each case the victims arranged to meet Collins to buy an iPhone and recounted a similar story to law enforcement. Specifically, they contacted a Craigslist vendor offering iPhones and other devices for sale. The vendor directed the victims to meet at a residence and upon their arrival at the agreed upon location, Collins entered, or attempted to enter, the victims’ car. Collins then robbed the victims at gunpoint and fled on foot.
All five robberies also occurred within a two-mile radius of Collins’ residence in Stone Mountain, Georgia. During one of the incidents, the buyer-victim’s wife and young child were inside the car as the robbery happened, increasing the victims’ trauma.
Lavunte Collins, 23, of Stone Mountain, Georgia, was sentenced by U.S. District Chief Judge Thomas W. Thrash Jr., to 13 years and six months in prison to be followed by five years of supervised release, and ordered him to pay restitution to the victims. The defendant was convicted on these charges on May 25, 2016, after he pleaded guilty. Collins is currently serving a five-year state sentence for an unrelated robbery.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance of the DeKalb County Police Department.
Assistant U.S. Attorneys Jessica C. Morris and Kim Dammers prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Charleston man caught with over a kilogram of meth pleads guilty to Federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Charleston man caught with a significant amount of methamphetamine pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Craig Jason Hundley, 40, entered his guilty plea to possession with intent to distribute methamphetamine.
Hundley admitted that on April 4, 2016, he was stopped on Interstate 64 in Cabell County by a member of the West Virginia State Police. A K-9 named Feera utilized by the West Virginia State Police performed an exterior sniff of Hundley’s car and indicated that drugs were present. When law enforcement searched the car, they found approximately 1,065 grams of methamphetamine concealed in the trunk.
Hundley faces up to 20 years in federal prison when he is sentenced on November 7, 2016.
The case against Hundley was investigated by the West Virginia State Police and the United States Drug Enforcement Administration. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Chambers County Woman Sentenced for Federal Income Tax ViolationsRead the Press Release
BEAUMONT, Texas – A 43-year-old Hankamer, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Holly D. Kirkwood pleaded guilty on Feb. 11, 2016 to filing a false income tax return and was sentenced to 30 months in federal prison today by U.S. District Judge Marcia A. Crone. Kirkwood was also ordered to pay restitution in the amount of $474,532 in back taxes.
According to information presented in court, beginning around January 2008 and continuing to 2011, Kirkwood was the office manager and bookkeeper for Rustbusters, a painting and sandblasting corporation, based in Humble, Texas. As part of her job responsibilities Kirkwood submitted forms to Employers One Source Group (EOSG), an employee staff leasing and payroll company, for reimbursement of expenses incurred by employees of Rustbusters. EOSG prepared and issued reimbursement checks to employees for expenses incurred by the employees of Rustbusters. In 2008, Kirkwood began submitting reimbursement forms to EOSG for the purchase of sand and grit purportedly made by her and used by the company in its operations, when in fact no such purchases had been made. This fraudulent reimbursement scheme continued through early 2011during which she received numerous reimbursement checks totaling $567,332.00 in 2008, $713,474.00 in 2009, and $671,014.00 in 2010. Because of the large increase in Rustbuster’s business during peak oil drilling years the excess reimbursements were not discovered until a forensic audit was conducted by a CPA firm. Kirkwood failed to report on her individual income tax returns for 2008 -2010 the additional unauthorized reimbursements monies received during those years instead reporting only her normal W-2 wages. Her tax returns were prepared in Orange, Texas. The additional tax due and owing is $249,766 in 2009, $219,971 in 2010, and $4,796 in 2011, totaling $474,532.
“The defendant stole hundreds of thousands of dollars from her employer and failed to report the proceeds on her tax return and she is now going to pay the price,” said Rick Goss, Special Agent in Charge, IRS-Criminal Investigation-Houston Field Office. “Even stolen money is taxable and greed of this nature can’t go unpunished.”
This case was investigated by the Internal Revenue Service, Criminal Investigations Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Caddo Parish man sentenced to 65 months in prison for distributing methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Belcher man was sentenced to five years and five months in prison for distributing methamphetamine in northwest Louisiana.
Norman Phillip Mitchell, 43, of Belcher, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of distribution of methamphetamine. He was also sentenced to four years of supervised release. According to the April 14, 2016 guilty plea, during the course of the investigation, methamphetamine was purchased from the defendant in April and May of 2015 in Caddo and Bossier parishes. Approximately 27.4 grams of methamphetamine on April 15, 2015 and 26.5 grams on May 7, 2015 was purchased from Mitchell.
The DEA and the Tri-Parish Drug Task Force conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Buffalo Woman Sentenced for Conspiracy to Distribute FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Sherylrica Quisenberry, 34, of Buffalo, NY, who was convicted of conspiracy to distribute fentanyl, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between May 7, 2013 and September 26, 2013, the defendant conspired with co-defendant Fannie Long to distribute controlled substances. Specifically, while Long was incarcerated on other charges, Quisenberry filled a fentanyl prescription for Long and then sold the fentanyl patches at Long’s direction to a third party. Subsequently, while Long was still in custody, Quisenberry made a medical appointment for Long so that upon Long’s release she would be able to obtain more fentanyl patches to sell.
On other occasions Quisenberry sold hydrocodone pills, alprazolam pills, methodone pills, and crack cocaine to other individuals.
Long was previously convicted and sentenced to 96 months in prison for her role in the conspiracy.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.Brooke County man sentenced for failing to register as a sex offenderRead the Press Release
WHEELING, WEST VIRGINIA – Christopher Barker, 27, of Follansbee, West Virginia was sentenced to 15 months in prison for failure to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Barker, who is required to register under the Sex Offender Registration and Notification Act, traveled in interstate commerce from Pennsylvania to West Virginia to take up residence in West Virginia in November 2015. He knowingly failed to register and update his sex offender registration.
Assistant United States Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Baltimore Felon Sentenced to over Six Years in Federal Prison for Illegal Possession of a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced John Gilmore, age 41 of Baltimore, today to 77 months in federal prison, followed by three years of supervised release for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore Police Commissioner Kevin Davis.
“Shortly after serving five years in federal prison for a gun conviction, and while still being supervised by a federal probation officer, John Gilmore returned to the streets of Baltimore with a loaded gun,” said U.S. Attorney Rod J. Rosenstein. “Other criminals should be on notice about the prospect of spending six more years in federal prison for possessing a gun.”
According to his plea agreement, on September 17, 2015, a Baltimore Police officer was in a covert location watching the 1800 block of Edmondson Avenue when he received information that there was a possible armed person in the area. According to the information, the individual was a male carrying a black and red book bag and was armed with a handgun. Shortly after receiving the information, the officer saw a man matching the description and notified officers who were in an unmarked car close by. The individual, later identified as Gilmore, became noticeably nervous and tense when he saw the officers. The officers got out of the car and asked Gilmore what was in the bag. Gilmore stated, “a .38 snub nose.” Officers recovered a black .38 caliber revolver, four live cartridges, and a stun gun from the book bag. Gilmore was arrested.
At the time of his arrest on September 17, 2015, Gilmore was on federal supervised release for a 2011 case in which he was also convicted of being a felon in possession of a firearm. The possession of the gun on September 17, 2015 violated his conditions of release. Judge Bennett today also sentenced Gilmore to two years in federal prison for violating his supervised release. That sentence is to be served concurrent to the 77 months sentence imposed for the 2016 federal gun conviction.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Another New York Man Pleads Guilty to Participating in Fraud SchemeRead the Press Release
ERIE, Pa. – A resident of Brooklyn, New York pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Olayinka Olurinde, 47, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Olurinde allowed bank accounts in his name and under his control to be used as repositories for fraudulently obtained federal tax refunds. Olurinde would then withdraw the fraudulently obtained refunds, keep a portion for himself and give the remainder of the money to another co-defendant. Olurinde also allowed his address to be used on other bank accounts which were fraudulently opened during the course of the conspiracy. Olurinde further agreed, as part of his guilty plea, to forfeit to the United States $81,000 found in his bedroom during the investigation, which was proceeds of his illegal activity.
Judge Cercone scheduled sentencing for December 8, 2016. The law provides for a maximum total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Olurinde.
Albuquerque Man Agrees to 12 Year Prison Sentence for Discharging Firearm During Attempted Robbery of RestaurantRead the Press Release
ALBUQUERQUE – Peter Pagan, 23, of Albuquerque, N.M., pled guilty today in federal court to violating the Hobbs Act by attempting to rob an Albuquerque-area fast food restaurant and to discharging a firearm during the attempted robbery. Under the terms of his plea agreement, Pagan will be sentenced to 147 months in federal prison followed by a term of supervised release to be determined by the court.
Pagan was charged by criminal complaint in Oct. 2015, with discharging a firearm while attempting to rob the Blake’s Lotaburger located at 6215 San Antonio Dr. NE in Albuquerque on Jan. 27, 2015. According to the complaint, Pagan entered the restaurant, pointed a firearm at employees, and demanded money. When the employees were unable to open the cash register, Pagan shot a round of ammunition into the ceiling before running out of the restaurant. When a customer attempted to chase him down, Pagan allegedly fired nine rounds into the customer’s vehicle.
Pagan subsequently was indicted on Nov. 17, 2015, and charged with violating the Hobbs Act and discharging a firearm during a crime of violence. According to the indictment, Pagan committed the crimes on Jan. 27, 2015, in Bernalillo County, N.M.
During today’s proceedings, Pagan pled guilty to the indictment. In entering the guilty plea, Pagan admitted that on Jan. 27, 2015, he entered a Blake’s Lotaburger armed with a loaded handgun and demanded money. Pagan further admitted firing a round into the ceiling of the restaurant when employees were unable to open the cash register.
State charges against Pagan were dismissed in favor of federal prosecution. Pagan has been in federal custody since his arrest on the federal complaint and remains detained, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul H. Spiers and Rumaldo R. Armijo are prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Friday 5 August 2016
Yakama Man Sentenced to 7 Years Imprisonment for Assualting Law Enforcement OfficersRead the Press Release
Yakima – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Israel Garcia, age 27, of Yakima, Washington, was sentenced today after previously pleading guilty to Assault on Federal Officers. Senior United States District Judge Lonny R. Suko sentenced Garcia to a 84 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison. Garcia will likely be deported to Mexico upon his release from Federal prison.
The following was disclosed during the court proceedings. On September 3, 2015, law enforcement officers attempted to arrest a known gang member. The gang member was a convicted felon and associated with the My Crew Kills (MCK) street gang. During a subsequent stand-off, the gang member fired a shot at a law enforcement officer. The gang member was subsequently arrested.
The Eastern Washington Violent Gangs Safe Streets Task Force/Yakima conducted an investigation which targeted members and associates of known violent street gangs. The investigation resulted in the issuance of three federal search warrants. On October 16, 2015, law enforcement officers executed simultaneous search warrants at separate residences. Officers approached the residence of Israel Garcia (aka Lil Gato). Garcia was known to be a convicted felon. Officers knocked on the door of the residence and announced their presence. The officers attempted to enter the residence and heard the sound of a firearm being locked and loaded. During a lengthy stand-off, Garcia threatened to shoot police officers. Garcia later attempted to flee on foot and was apprehended. During the search of his residence, officers discovered two firearms. A special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF&E”) discovered that the Jesus Arturo Lopez (“Lopez”) had legally purchased both of the firearms found in the residence. Furthermore, law enforcement determined that Lopez had also lawfully purchased the firearm found during the September 3, 2015 incident.
On October 16, 2015, special agents with the ATF&E and Federal Bureau of Investigation (“FBI”) contacted Lopez at his residence. During the interview, Lopez acknowledged that he had legally purchased several firearms for known convicted felons. Lopez advised that he knew that some of his customers had been involved in gang related shootings in the Yakima area. Lopez was charged and pled guilty to Transfer of Firearm to a Felon. On June 9, 2016, Senior United States District Judge Lonny R. Suko sentenced Lopez to a 36 month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison.
Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, “law enforcement officers continually put their lives on the line to protect the public. The United States Attorney’s Office is committed to aggressively prosecuting individuals who assault law enforcement officers. Furthermore, the United States Attorneys’ Office and our law enforcement partners are committed to combating gang violence and prosecuting those who knowingly arm convicted felons.”
The investigation was completed by the Eastern Washington Violent Gangs Safe Streets Task Force/Yakima, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Yakima Police Department. This case was prosecuted by Tom Hanlon, an Assistant U.S. Attorney for the Eastern District of Washington.
Winter Haven Man Convicted of Assaulting Federal Officers and Drug OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal yesterday today found Altius Willix (47, Winter Haven) guilty of conspiracy, attempted possession of methamphetamine, and assaulting federal officers, inflicting bodily injury. He faces a mandatory minimum penalty of life imprisonment. A sentencing hearing is scheduled for October 28, 2016.
Willix was indicted on May 11, 2016.
According to evidence presented at trial, Willix arranged for four pounds of pure methamphetamine to be mailed from Tempe, Arizona to Winter Haven, Florida. After Willix attempted to retrieve the parcel, three federal agents approached him. Willix fled and ultimately collided with one of the agents, causing him to fall to the ground. Willix continued to resist arrest, as agents attempted to detain him, resulting in their injury. During the struggle, Willix tried to remove holstered firearms from two of those agents. When told to let go, Willix responded, “You’re gonna have to kill me.” Willix was ultimately handcuffed and taken into custody.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Winter Haven Police Department. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Two Individuals Arrested for Firearm ViolationsRead the Press Release
SAN JUAN, Puerto Rico – On August 5, 2016, Julio Rodríguez-Marquez and Josué Méndez-Rivera were charged by way of a criminal complaint with conspiring to engage in the business of dealing in firearms without a license, and with dealing in firearms without a license, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
Throughout the course of the investigation, ATF agents seized four AR-15-variant rifles and a handgun.
Between May and August of 2016, Julio Rodríguez-Marquez arranged various firearms transactions with the assistance of co-conspirator Josué Méndez-Rivera who delivered a rifle to a buyer on two separate occasions. Méndez-Rivera intended to sell another rifle today when he was arrested. ATF agents also arrested Rodríguez-Marquez at his residence, where they executed a search warrant. During the execution of the search warrant, agents found a firearm which Rodríguez-Marquez was not licensed to possess, and materials used to manufacture home-made firearms.
If convicted, the defendants face up to five years in prison and a fine of up to $250,000. A criminal complaint contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Twin Falls Man Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
BOISE – Stephen Roy Walker, 43, of Twin Falls, Idaho pleaded guilty yesterday in United States District Court to transportation and possession of child pornography, U.S. Attorney Wendy J. Olson announced. Walker was indicted by a federal grand jury on September 9, 2015.
According to the plea agreement, agents with the Department of Homeland Security served a search warrant at the Old Towne Lodge in Twin Falls, where Walker was living with three minor children, in February of 2014. Agents seized computers and electronic devices pursuant to the warrant, and a subsequent forensic examination of the devices revealed images of child pornography on the devices. In his plea agreement, Walker admitted that he transported 462 digital images and 42 digital videos containing child pornography from Texas to Idaho, and that he possessed the images while living in Idaho. Walker also admitted that 78 of the images containing child pornography, and 4 of the videos, depicted one of the children who was living with him at the Old Towne Lodge. Walker further admitted he took the images while living in Texas. Sentencing is set for November 1, 2016, before Chief U.S. District Judge B. Lynn Winmill.
Transportation of child pornography is punishable by not less than five, and up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Walker also agreed to forfeit two laptop computers, an external hard drive, and a digital camera used in the commission of the charged offenses.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Twin Falls Police Department, with assistance from the Buhl Police Department, the Idaho State Police, and the Twin Falls County Prosecuting Attorney’s Office. The 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.”
Tax Return Preparer Sentenced for Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer was sentenced to 30 months in prison, to be followed by one year of supervised release, and was ordered to pay restitution in the amount of $163,865 for filing false tax returns with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Erica Antoinette Hollingsworth, 37, of Opa Locka, previously pled guilty to one count of aiding and assisting tax fraud, in violation of Title 26, United States Code, Sections 7206(2) and 2.
According to court documents, the IRS received information that Hollingsworth prepared a false tax return for an unemployed student claiming a $4,000 refund. Based on this information, an undercover agent (UC) met with Hollingsworth in an office at her house to discuss the filing of a tax return. The UC provided identification and a Form W-2 to Hollingsworth. In exchange, the defendant explained the tax filing process and advised that a refund in the “thousands” was possible.
IRS agents then executed a search warrant at Hollingsworth’s residence, where agents recovered tax returns and a computer. During the investigation, Hollingsworth stated that she was a self-employed tax return preparer and had compiled returns through her current company, EH&S Professional Services, LLC, and previous company, A&E Professional Services. Hollingsworth advised that she learned how to prepare tax returns from another individual, who taught her how to get clients inflated refunds even if they were not entitled to such refunds.
Hollingsworth ultimately admitted to entering false amounts on some of her clients' Form W-2s. Hollingsworth made $60 to $500 for each return that she prepared. Hollingsworth filed approximately thirty-five fraudulent returns that falsely represented that the taxpayer worked for a company, earned wages, and had federal taxes withheld from those wages, even though the taxpayer never actually worked for the company.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorneys Brooke Watson and John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Sweet Dreams Nurse Anesthesia Group Pays More Than $1 Million to Resolve Kickback AllegationsRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, and Georgia Attorney General Sam Olens announced today a civil settlement with a series of anesthesia businesses, collectively known as Sweet Dreams Nurse Anesthesia (Sweet Dreams). Sweet Dreams agreed to pay to the United States $1,034,416 and the State of Georgia $12,078.79 to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by paying unlawful kickbacks to health care providers with the intent to induce referrals of Medicare and Medicaid patients.
The settlement marks the end of a 22-month investigation into a number of alleged violations of the Federal Anti-Kickback Statute and Medicaid policies by Sweet Dreams. One alleged scheme resolved by the settlement concerns Sweet Dreams’ provision of free anesthesia drugs to ambulatory surgery centers (ASCs) in exchange for the ASCs granting Sweet Dreams an exclusive contract to provide anesthesia services at those ASCs. A second alleged scheme resolved by the settlement concerns the agreement of an affiliate of Sweet Dreams to fund the construction of an ASC in Marietta, Georgia, in exchange for contracts for Sweet Dreams’ selection as the exclusive anesthesia provider at that facility and a number of other podiatry-based ASCs affiliated with the Marietta ASC.
This investigation began with a lawsuit filed by Adam Nauss under the whistleblower provisions of the False Claims Act and the False Medicaid Claims Act, which allow private citizens to bring civil actions on behalf of the Government and share in any recovery obtained. The case is captioned United States and State of Georgia ex rel. Adam Nauss v. Sweet Dreams Nurse Anesthesia, et al., 5:14-CV-330. Mr. Nauss will receive a share of the settlement payment pursuant to the whistleblower provisions.
Sweet Dreams fully cooperated in the investigation, after which the parties agreed to resolve the allegations made by the United States and certain allegations raised by Relator Nauss on behalf of the State of Georgia. The claims covered by the settlement are allegations only, and there has been no determination of liability.
“The giving of a kickback by one provider to induce referrals from another negatively impacts patient choice and fair competition among providers. For that reason, Medicare and Medicaid prohibit taxpayer money being used to pay for services that arise out of arrangements that violate the Anti-Kickback Statute,” said U.S. Attorney G.F. “Pete” Peterman. “By diligently enforcing the Anti-Kickback Statute in this district, our office protects the integrity of many federal programs and ensures that when a health care provider in Middle Georgia refers a patient to another provider, the referral is based on what is best for the patient rather than the provider’s own self-interest.”
Attorney General Olens said, “Medical decisions, such as the selection of an anesthesia provider, should not be influenced by the payment or receipt of a kickback. My office is committed to protecting the Medicaid program from fraud and abuse and holding Medicaid providers accountable for failing to comply with Medicaid policies and related criminal laws.”
The case was investigated by Special Agent Shawn McAleer of the Department of Health & Human Services, Office of Inspector General and Investigators Enedelia Bostrup and Shaketia Morgan of the United States Attorney’s Office for the Middle District of Georgia.
The United States’ civil settlement was reached by Assistant United States Attorney Todd P. Swanson and Assistant United States Attorney W. Taylor McNeill. The State of Georgia’s civil settlement was reached by Assistant Attorney General Elizabeth White of the Medicaid Fraud Control Unit (MFCU) after an investigation by former employees of the MFCU.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney’s Office at 478-621-2603.
Statement on McDonnell Case from U.S. Attorney Dana J. BoenteRead the Press Release
ALEXANDRIA, Va. – “Although the United States acknowledges that the Supreme Court’s opinion in McDonnell v. United States is equally applicable to Maureen McDonnell’s convictions, Mrs. McDonnell’s convictions have not been vacated. Her defense counsel filed a motion requesting that her case be held in abeyance until August 29, 2016. The United States did not oppose that request, and the United States Court of Appeals for Fourth Circuit granted the unopposed motion to hold the appeal in abeyance. At this time we are thoughtfully determining next steps in both cases.”
State of Connecticut Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached an agreement with Connecticut and state officials to resolve claims that the state failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
The department’s investigation, conducted by the Civil Rights Division’s Voting Section, found that the state of Connecticut failed to comply with the requirements of Section 5 of the NVRA. Applications and renewals for Connecticut driver’s licenses and identification cards did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. In addition, the procedures by which citizens notify motor vehicle authorities that their address changed did not consistently serve as notification of a change of address for voter registration purposes, as the NVRA requires.
Under the terms of the settlement, Connecticut will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications. Connecticut will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. During the course of negotiations, Connecticut has taken significant steps to achieve this compliance by integrating a voter registration application into its electronic driver licensing system. In order to provide a voter registration opportunity for Connecticut residents who did not have one when last applying for or renewing a driver’s license or other identification document, Connecticut will contact eligible voters who are not currently registered to vote at the address associated with the driver’s license or other identification document.
“A robust, inclusive democracy requires ensuring that eligible voters can easily and conveniently register to vote,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “State officials worked cooperatively with the Justice Department to quickly provide eligible Connecticut voters an integrated one-stop opportunity to register through the DMV, as the law requires.”
“The motor voter provision of the NVRA critically supports and enhances our citizens’ access to the democratic process,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut. “Compliance with those requirements plays an important role in ensuring that all Connecticut citizens can more easily exercise their right to vote. I commend our many state officials from the Department of Motor Vehicles, the Office of the Secretary of the State and the Attorney General’s Office for their hard work in reaching this agreement and for their commitment to the expansion of voting rights in Connecticut. We also thank the Civil Rights Division of the Department of Justice for their partnership and invaluable assistance.”
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or renew driver’s licenses or other identification documents through state motor vehicle offices. The motor voter provision also requires that changes of address for driver’s license or identification document purposes update voter registration information unless the applicant opts out of the update.
More information about the NVRA and other federal voting laws is available on the division’s website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
State of Connecticut Agrees to Resolve Claims of National Voter Registration Act ViolationsRead the Press Release
The Justice Department announced today that it has reached an agreement with Connecticut and state officials to resolve claims that the state failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
The department’s investigation, conducted by the Civil Rights Division’s Voting Section, found that the state of Connecticut failed to comply with the requirements of Section 5 of the NVRA. Applications and renewals for Connecticut driver’s licenses and identification cards did not serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. In addition, the procedures by which citizens notify motor vehicle authorities that their address changed did not consistently serve as notification of a change of address for voter registration purposes, as the NVRA requires.
Under the terms of the settlement, Connecticut will fully integrate a voter registration opportunity into all applications for driver’s licenses and other identification documents, including renewal applications. Connecticut will also ensure that change of address information submitted for driver’s license purposes will be used to update voters’ address information unless the voter declines to update her voter registration. During the course of negotiations, Connecticut has taken significant steps to achieve this compliance by integrating a voter registration application into its electronic driver licensing system. In order to provide a voter registration opportunity for Connecticut residents who did not have one when last applying for or renewing a driver’s license or other identification document, Connecticut will contact eligible voters who are not currently registered to vote at the address associated with the driver’s license or other identification document.
“A robust, inclusive democracy requires ensuring that eligible voters can easily and conveniently register to vote,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “State officials worked cooperatively with the Justice Department to quickly provide eligible Connecticut voters an integrated one-stop opportunity to register through the DMV, as the law requires.”
“The motor voter provision of the NVRA critically supports and enhances our citizens’ access to the democratic process,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut. “Compliance with those requirements plays an important role in ensuring that all Connecticut citizens can more easily exercise their right to vote. I commend our many state officials from the Department of Motor Vehicles, the Office of the Secretary of the State and the Attorney General’s Office for their hard work in reaching this agreement and for their commitment to the expansion of voting rights in Connecticut. We also thank the Civil Rights Division of the Department of Justice for their partnership and invaluable assistance.”
Section 5 of the NVRA, also known as the “motor voter” provision, requires states to provide voter registration opportunities for federal elections when people apply for or renew driver’s licenses or other identification documents through state motor vehicle offices. The motor voter provision also requires that changes of address for driver’s license or identification document purposes update voter registration information unless the applicant opts out of the update.
More information about the NVRA and other federal voting laws is available on the division’s website at www.justice.gov/crt/about/vot/. Complaints about voter registration practices may be reported to the Civil Rights Division’s Voting Section at 1-800-253-3931.
Connecticut NVRA MOU
St. Joseph Man Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Michael Robinson, 35, of St. Joseph, was sentenced by U.S. District Judge Howard F. Sachs to nine years in federal prison without parole.
On May 22, 2014, Robinson pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing a firearm during and in relation to a drug-trafficking crime. Robinson is among 20 co-defendants who have pleaded guilty in this case and the 16th co-defendant to be sentenced.
Robinson was arrested by St. Joseph, Mo., police detectives on May 8, 2013, in reference to a shooting investigation. Robinson was in possession of approximately eight grams of methamphetamine, which was recovered from his vehicle. Detectives also found images of what appeared to be large chunks of methamphetamine on Robinson’s cell phone.
According to court documents, detectives interviewed several confidential sources, who stated they had accompanied Robinson to the Argosy Casino in Riverside, Mo., the Legends shopping center and residences in the Kansas City area to pick up multiple-ounce or pound quantities of methamphetamine, which he brought back to St. Joseph for distribution. Some of the sources stated those trips were made on a daily basis.
One confidential source told investigators that Robinson would meet co-defendant Charles Blazer, 46, of St. Joseph, on a daily basis during the summer of 2013; Robinson collected $1,900 for the ounce of methamphetamine previously sold “on front” and provided Blazer with an additional ounce for sale. Blazer was sentenced to six years in federal prison without parole after pleading guilty to his role in the conspiracy.
Also among those to whom Robinson provided methamphetamine for distribution was his brother, Roy Owens, 45, of St. Joseph. Owens was sentenced to 10 years in federal prison without parole after pleading guilty to his role in the conspiracy.
One confidential source told investigators that Robinson had been in a fight with a man over money. The source saw Robinson with a handgun and knew that the man Robinson had been fighting with had been shot.
On July 29, 2013, investigators executed a search warrant at Robinson’s residence and seized digital scales covered in a residue of methamphetamine, multiple plastic bags that contained the same residue, two handguns and ammunition and surveillance cameras that had been installed on the house.
This case is being prosecuted by Assistant U.S. Attorney Bruce A. Rhoades. It was investigated by the Buchanan County Drug Task Force and the Drug Enforcement Administration.
St. Croix Man Sentenced for Robbery and Related OffensesRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis on August 4, 2016, sentenced Daniel Ramos, 41, to seven years in prison for using and carrying a firearm during and in relation to a crime of violence and 33 months in prison for interference with commerce by robbery, United States Attorney Ronald W. Sharpe announced. The sentences are to be served consecutively. Judge Lewis also sentenced Ramos to two terms of supervised release to be served concurrently, and a special monetary assessment of $200.
Ramos pleaded guilty on January 14, 2016. According to the plea agreement filed with the court, on June 21, 2014, Ramos and his co-defendant, Edigberto Diaz, armed with handguns, entered Quality Foods located at Estate Castle Coakley in St. Croix. They went into an office area, pointed their handguns at two individuals, and demanded that they open the safe. The defendant and co-defendant removed deposit bags containing $24,289.17 in cash and checks from the safe. They also took cellular telephones, a music player, a laptop computer, a checkbook, and backpacks from the victims. Diaz, who carried a loaded Smith & Wesson .40 caliber semiautomatic handgun with an obliterated serial number, was shot at the scene by police. Ramos carried a toy gun and fled the scene. He was recognized on a surveillance video and arrested.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Croix Man Pleads Guilty to Unlawful Drug User in Possession of FirearmRead the Press Release
St. Croix, USVI – Dwayne Wesselhoft, 29, pleaded guilty yesterday in federal court on St. Croix to possession of a firearm by an unlawful user of a controlled substance, United States Attorney Ronald W. Sharpe announced.
According to court records, on October 1, 2015, agents from the U.S. Drug Enforcement Administration (DEA) conducted a consent search at Wesselhoft’s residence located at 141 Clifton Hill, St. Croix. The search uncovered a 9mm Luger pistol in the master bedroom which Wesselhoft admitted was his. The agents also found a container with marijuana. Wesselhoft admitted to smoking two marijuana “joints” per day for the past five-six years.
Wesselhoft faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for December 7, 2016.
The case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
St. Croix, USVI – Winston Curtis Venner, 34, pleaded guilty on August 4, 2016, in federal court on St. Croix to felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, police officers stopped Venner’s vehicle on Rattan Road, St. Croix, Virgin Islands. He was the sole occupant of the vehicle. Officers observed and seized a pistol from inside the vehicle. Venner was previously convicted of assault third degree in 2005 in the Virgin Islands Superior Court.
Venner faces a maximum of 10 years of incarceration and a maximum fine of $250,000. A sentencing date has been set for December 7, 2016.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.