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23 September 2016
Three Top Corporate Executives Convicted by Federal Jury in Conspiracy to Bribe Dekalb County and Georgia World Congress Center Public OfficialRead the Press Release
ATLANTA - Anthony Lepore, John Rife, and Brian Domalik, the former President, Regional Vice President, and Division Manager for Rite Way Service, Inc., were convicted by a federal jury yesterday on conspiracy, bribery and honest services fraud charges after a nearly two-week jury trial. The charges were brought in connection with a multi-year scheme to bribe a public official who was employed with DeKalb County government and the Georgia World Congress Center Authority.
“This case highlights how public corruption offenses harm our communities —you have greedy company executives who seek an unfair advantage over their competitors, and a crooked public official who is willing to sell their power for personal gain,” said U.S. Attorney John Horn. “The victims are spread throughout the community, from the citizens who often end up paying more for government services provided by the corrupt company and suffer the loss of honest government, as well as other companies that try to make their living ethically. The people of DeKalb County and the State of Georgia deserved better.”
“This case and the resulting convictions of these three corporate executives not only illustrates the problems regarding public corruption, but also law enforcement’s very focused and deliberate efforts in addressing it. The FBI, along with its law enforcement partners and federal prosecutors, will not tolerate those who interfere with or unduly influence the established and proper procedures of our public officials and the offices that they represent. We ask anyone with information regarding public corruption matters to immediately contact their nearest FBI field office,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Lepore was the President and CEO of Rite Way Service, Inc., an Alabama-based company that sought to do business with both DeKalb County and the Georgia World Congress Center Authority (GWCCA), a state government entity that manages the Georgia World Congress Center, the Georgia Dome, Atlanta’s Centennial Olympic Park, and other properties. Rife was the Rite Way Regional Vice President who oversaw the company’s Georgia Division, based in Norcross, Georgia. Domalik was the Division Manager in charge of Rite Way’s Georgia Division between 2010 and 2014.
Beginning in the summer of 2005, Lepore, Rife, and Domalik’s predecessor as Division Manager of Rite Way’s Georgia Division, Cecil Clark, conspired to bribe Patrick Jackson, a public official who was simultaneously working full time as a contracting official for DeKalb County and the GWCCA, in connection with janitorial services contracts with those government entities. The government contracts were worth millions of dollars. The bribes amounted to over $100,000 in payments for Jackson’s rent, utilities, and a garage lease for a luxury apartment over a 6-year period in downtown Atlanta, as well as cash payments, over $24,000 in furniture for the apartment, a $5,100 deposit for event space for a party that that Jackson threw at the Waverly Renaissance Hotel, and other benefits. Domalik joined the conspiracy in late 2010, when Clark resigned from Rite Way, and continued the scheme with Lepore and Rife through 2012.
In exchange for the payments and other benefits from Rite Way, Jackson used his official position as a public official to help Rite Way win, maintain and increase profits from multi-year janitorial services contracts with DeKalb County and the GWCCA worth millions of dollars.
Jackson, 55, of Loganville, Georgia, was indicted by a federal grand jury on September 9, 2014 on one count of conspiracy to commit honest services fraud, and nine counts of honest services fraud. Jackson pleaded guilty to one count of conspiracy, and on August 12, 2015, he was sentenced to four years, three months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Clark, 55, of Jonesboro, Georgia, agreed to waive indictment and pleaded guilty to a Criminal Information charging him with conspiracy to commit bribery on May 26, 2015. Clark was sentenced on September 30, 2015 to serve one year, five months in federal prison, ordered to pay restitution to DeKalb County and GWCCA, and fined $20,000.
Lepore, 64, of Birmingham, Alabama, Rife, 66, of Cumming, Georgia, and Domalik 49, of Kennesaw, Georgia, were each convicted on one count of conspiracy, ten counts of honest services fraud, and five counts of bribery.
A sentencing date has not yet been scheduled.
This case is being investigated by Special Agents of the Federal Bureau of Investigation. Valuable assistance was also provided by Special Agents of the Georgia Bureau of Investigation.
Assistant United States Attorneys Kamal Ghali and David M. Chaiken are prosecuting the case. Former Assistant United States Attorney Jamie L. Mickelson previously 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.
Three Charged with Trafficking CocaineRead the Press Release
McALLEN, Texas – Two men have been arrested and authorities are seeking a third for their alleged involvement in a cocaine trafficking conspiracy, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned a sealed three-count indictment Aug. 16, 2016, against Jesus A. Villarreal, 56, of Sullivan City, Juan Cristobal Hernandez, 37, of Reynosa, Tamaulipas, Mexico, and Rolando Martinez, Jr., 31, of Rio Grande City. The court unsealed the indictment in its entirety just moments ago.
Villarreal and Hernandez were taken into custody yesterday and they are expected to make an initial appearance before U.S. Magistrate Judge Dorina Ramos this morning.
Martinez is considered a fugitive and a warrant remains outstanding for his arrest. Anyone with information about his whereabouts is asked to contact the Drug Enforcement Administration (DEA) at 956-992-8400 or Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) at 866-347-2423.
The indictment alleges the three conspired to possess with the intent to distribute in excess of five kilograms of cocaine from March 1, 2015, to May 1, 2015. As part of the indictment, Hernandez and Villarreal allegedly possessed with intent to distribute 22 kilograms of cocaine in March 2015 and 108 kilograms in April 2015.
If convicted, each faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The arrests were the result of an investigation dubbed Operation Killing Time that began in 2015 and lead by DEA and HSI with assistance of the Texas Department of Public Safety and task force officers from police departments in San Juan, McAllen, Palmview, Weslaco, Mission and Pharr. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
The Departments of the Army, the Interior and Justice Invite Tribal Leaders to Participate in Formal Government-to-Government Consultations on Infrastructure Decision MakingRead the Press Release
The U.S. Departments of Justice, of the Army, and of the Interior today invited representatives from all 567 federally recognized tribes to participate in formal, government-to-government consultations on how federal decision-making on infrastructure projects can better allow for timely and meaningful tribal input. Starting with a listening session on Oct. 11, formal tribal consultations are scheduled in six regions of the country, from Oct. 25 through Nov. 21. The deadline for written input will be Nov. 30.
The three departments previously announced on Sept. 9, the intention to hold these consultation sessions after important issues were raised by the Standing Rock Sioux Tribe and other tribal nations and their members regarding the Dakota Access pipeline specifically and pipeline-related decision-making more generally.
The consultations will focus on how the federal government can better ensure meaningful tribal input into infrastructure-related decisions and the protection of tribal lands, resources and treaty rights and will also explore with tribes whether new legislation should be proposed to Congress to alter the current statutory framework to promote those goals.
For a copy of the invitation letter that was sent to all tribal leaders today, please click here.
Tampa Area Woman Sentenced to Federal Prison for Theft of Tax Refund ChecksRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth Kovakevich today sentenced Tiana Lise to 28 months in federal prison for theft of government funds and aggravated identity theft. The Court also entered a forfeiture money judgment in the amount of $8,000, representing the proceeds of the offense.
Lise pleaded guilty on March 2, 2016.
According to court documents, a confidential informant engaged in two undercover transactions with Lise, in which Lise sold the confidential informant stolen tax refund checks totaling over $50,000. In some cases, these checks were fraudulently endorsed and were transferred with social security numbers so that they could be easily cashed. The checks originated from three victims, none of whom gave Lise or any other person authority to take or cash their tax refund checks.
This case was investigated by the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Rachel K. Jones.
Stetson Woman Sentenced to 14 Months for Cocaine and Oxycodone Trafficking ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Cynthia “Cindy” Williams, 43, of Stetson, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 months in prison and three years of supervised release (including six months of community confinement) for conspiring to distribute and to possess with intent to distribute five or more kilograms of cocaine and oxycodone. She pled guilty to the charge on January 25, 2016.
According to court records, between about 2012 and November 2014, the defendant conspired with nine other people to distribute oxycodone and cocaine in the Dexter, Maine area. The drugs were acquired in Rhode Island and were distributed from her Stetson residence.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance from the Dexter Police Department and the Penobscot and Piscataquis County Sheriff’s Offices.
Stafford Man Sentenced for Attempting to Arrange Sex with 10 Year-OldRead the Press Release
ALEXANDRIA, Va. – Justin Frank Clark, 28, formerly of Stafford, was sentenced today to 10 years in prison for attempting to coerce and entice a minor. Clark was also sentenced to 10 years of supervised release and ordered to register as a sex offender upon release from prison.
Clark pleaded guilty on June 29. According to court documents, from April through May, Clark began communicating with an undercover agent who was purportedly advertising a 10-year-old girl for sex. Through a series of emails and messages, Clark arranged to travel from Stafford to Washington, D.C., to have sex with the minor. While arranging the meeting, Clark also sent multiple videos containing child pornography to the undercover agent.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and David P. Decatur, Stafford County Sheriff, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Whitney Dougherty Russell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-157.
Shooter in Murder-For-Hire Exiled to 30 Years in Federal PrisonRead the Press Release
Baltimore, Maryland –Chief U.S. District Judge Catherine C. Blake sentenced Davon Sanford, a/k/a “Chronic,” age 33, of Baltimore, to 30 years in prison, followed by five years of supervised release, after Sanford pleaded guilty today to discharging a firearm during a crime of violence, resulting in death.
The plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his guilty plea, in March of 2012 a physical altercation took place in the vicinity of West Patterson Park Avenue and Chase Street in Baltimore, Maryland. One of the participants to this altercation was Gregory Parker. In the days following the altercation, an individual arranged with Tavon Slowe to kill Gregory Parker. The agreed price for the murder was $5,000.
On March 16, 2012, at approximately 2:30 p.m., Slowe drove his silver Honda Accord to meet the individual. Davon Sanford was seated in the front passenger seat. The individual told Slowe where Parker could be found and described Parker as wearing a blue floppy (“Gilligan-style”) hat. Less than 90 minutes later, Gregory Parker was shot multiple times by Davon Sanford with a 9mm semi-automatic pistol in the 2300 block of East Chase Street in Baltimore City. Fourteen shell casings were found at the scene. Parker was wearing a blue floppy “Gilligan” hat when he was shot and killed.
According to witnesses, the “shooter” fled northbound on Bradford Street and got into a silver vehicle. Video surveillance shows Sanford, wearing a green hooded sweatshirt with white lettering across the front, running from the murder scene and getting into the silver Honda Accord driven by Slowe. Law enforcement recovered photographs from the cell phone of an associate that show Davon Sanford wearing the same green hooded sweatshirt with white lettering across the front, as he wore during the murder.
Tavon Slowe, age 24, of Baltimore, previously pleaded guilty to charges related to two murder for hire contracts. If the Court accepts the plea agreement, Slow will be sentenced to between 23 and 27 years in prison. Chief Judge Blake has scheduled Slowe’s sentencing for October 4, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department, Safe Streets Task Force and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.
Rochester Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Edwin Murray, 52 of Rochester, NY, who was convicted of possession with intent to distribute cocaine and possession of a firearm in the furtherance of a drug trafficking crime, was sentenced to 75 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated on August 20, 2014, members of Rochester Police Department executed a search warrant in the downstairs apartment at 54 Miller Street in Rochester. During the execution of the search warrant, an investigator encountered Murray, who was the only person in the house at the time, in a bedroom. Under a bed, investigators found a black shoe box. Inside they found a clear plastic bag that contained 84 smaller ziplock baggies. Each baggie contained a white rocky material which was later identified as crack cocaine. Officers also located a wallet which contained $346.00 in United States Currency and marijuana. Officers also found a Ruko-Armscor Model M14 .22 caliber long rifle and a magazine for the rifle, which contained six rounds of .22 caliber ammunition.
The sentencing is the culmination of an investigation on the part of Rochester Police Department, under the direction of Rochester Police Department Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson.
Preston County man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scott Alan Thomas, 53, of Masontown, West Virginia, pled guilty to unlawfully possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Thomas, who had previously been convicted of felony offenses in Ohio and Florida, was discovered in possession of a .22 caliber revolver in December 2015. He pled guilty to one count of “Felon in Possession of a Firearm.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Masontown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Philadelphia Man Pleads Guilty to Trio of Bank RobberiesRead the Press Release
PHILADELPHIA - Reuben Jackson, 52, of Philadelphia, Pennsylvania, pleaded guilty to three counts of bank robbery, for three bank robberies that occurred in Center City Philadelphia in April and May 2016, announced United States Attorney Zane David Memeger and FBI Special Agent-in-Charge Michael Harpster.
According to the indictment, on April 29, 2016, Jackson robbed the Citizens Bank at 1515 Market Street in Philadelphia; on May 3, 2016, he robbed the Polonia Bank at 2133 Spring Garden Street in Philadelphia; and on May 9, 2016, he robbed the PNC Bank at 400 Market Street in Philadelphia.
Pharmacy Technician from Carlsbad Facing Federal Charge for Stealing Prescription Opioid PainkillersRead the Press Release
ALBUQUERQUE – The DEA has arrested a pharmacy technician on a federal theft of medical products charge arising out of the theft of more than 20,000 prescription opioid tablets from the pharmacy that previously employed the technician, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Amber Otero, 30, of Carlsbad, N.M., was arrested this morning on a criminal complaint charging her with theft of medical products. According to the criminal complaint, the DEA initiated the investigation leading to Otero’s arrest in Aug. 2016, after receiving a report of theft of loss of controlled substances from a pharmacy in Carlsbad. The pharmacy’s report alleged that 20,344 oxycodone tablets of various strengths had been stolen from the pharmacy. Otero, who had been employed as a pharmacy technician by the pharmacy, was identified as the suspected thief.
Otero is scheduled for an initial appearance in federal court in Roswell, N.M., on Sept. 27, 2016.
If convicted on the charge in the criminal complaint, Otero faces a statutory maximum penalty of 20 years in federal prison. Charges in criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Tactical Diversion Squad of the DEA in El Paso, Texas investigated this case. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorney Matthew Beck is prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Pensacola Man Pleads Guilty to Making False StatementsRead the Press Release
PENSACOLA, FLORIDA – Robert Blake Jackson, 31, of Pensacola, pled guilty today to making materially false statements in a federal investigation. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In October 2014, Jackson’s Facebook profile contained comments, photos, and videos expressing support for extremist terrorist groups such as the Islamic State of Iraq and the Levant (ISIL, also known as ISIS). In January 2015, a Pensacola telemarketing corporation reported they recently fired Jackson for viewing ISIL-related and other terrorist-related websites and videos on his work computer.
In June 2015, during an interview with the FBI, Jackson stated that he never posted any pro-ISIL or violent content and that he only used the internet at work to search news sites. At his plea hearing, Jackson admitted that these statements were false.
Jackson faces a maximum of five years in prison. Jackson is currently in federal custody at the Santa Rosa County Jail. The sentencing hearing is scheduled for December 12, 2016, at 12:30 p.m. at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the other members of the FBI Joint Terrorism Task Force. Assistant United States Attorney David L. Goldberg is prosecuting the case, with the assistance of David Cora of the National Security Division.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pensacola Attorney/CPA Indicted for Federal Tax CrimesRead the Press Release
PENSACOLA, FLORIDA – James R.J. Scheltema, 56, of Pensacola, made an initial appearance today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with filing false tax returns and tax evasion. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that Scheltema filed false tax returns, claiming a total tax of $18 for 2011 and $1,369 for 2012, when he knew his total tax exceeded that amount. The indictment further alleges that Scheltema attempted to evade paying tax on his taxable income of $598,291 for the calendar year 2013 by failing to file a timely income tax return and later filing a false tax return. The arraignment is scheduled for September 28, 2016, at 2:00 p.m.
This case resulted from an investigation by the Internal Revenue Service—Criminal Investigation. Assistant United States Attorney David L. Goldberg is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Passenger Remains in Federal Custody on Federal Charge of Interfering with a Flight CrewRead the Press Release
LUBBOCK, Texas — A Las Vegas man, Jerry Ba Nguyen, who was a passenger on American Airlines flight 2542 early yesterday morning in route from Ontario, California, to Dallas/Fort Worth International Airport, which was diverted to Lubbock Preston Smith International Airport, has been charged in a federal criminal complaint with interference with a flight crew, announced U.S Attorney John Parker of the Northern District of Texas.
Nguyen made his initial appearance this morning in the 364th Judicial District Court before the Honorable William R. Eichman, II, in Lubbock and was detained pending a detention hearing to be set by U.S. Magistrate Judge D. Gordon Bryant, Jr.
According to the complaint, Nguyen, 24, knowingly interfered and attempted to interfere with the performance of the duties of a flight crew member and flight attendant, lessening their ability to perform their duties, by assaulting and intimidating the flight attendant and flight crew member by refusing to comply with instructions from flight attendants and attempting to forcibly enter the cockpit.
Nguyen came to the attention of the flight attendants as the plane was leaving the gate in Ontario, appearing agitated and walking toward the front of the aircraft as it prepared to take off. Flight attendants were able to calm him down, and the plane departed. After takeoff, however, Nguyen’s erratic behavior continued; he mumbled that the SIM card had been stolen from his phone and he made suicidal statements. He also stated that the police were not his friends, and the U.S. government was responsible for the September 11, 2001, terrorist attacks.
Nguyen was asked to remain in his seat by the flight crew on multiple occasions, but refused. Flight attendants were so concerned about his behavior that they recruited several passengers to assist with physically restraining Nguyen if it became necessary.
Upon final approach, Nguyen walked to the front of the aircraft and began banging on and kicking the cockpit door. He was subdued by passengers at the request of the flight crew and then restrained with flex cuffs provided by the flight attendants,
The Captain declared an emergency and diverted the flight to Lubbock Preston Smith International Airport, where it landed safely. Nguyen was removed from the plane and taken into custody
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty.
The maximum statutory penalty, however, upon conviction, for the offense of interfering with a flight crew is 20 years in federal prison and a $250,000 fine.
The Federal Bureau of Investigation, the Transportation Security Administration, the Lubbock Police Department and the Lubbock International Airport Police Department are investigating the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Out of state men sentenced for distributing heroin, oxycodoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two men, one from Philadelphia, Pennsylvania, and one from Detroit, Michigan, were sentenced today for distributing heroin and oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Keevus Weeks, 33, of Philadelphia, Pennsylvania, was sentenced to 135 months for his role in a drug trafficking operation in which heroin and oxycodone were transported across state lines from Philadelphia to Morgantown, West Virginia for redistribution and sale throughout the region. Weeks was found guilty of one count of “Conspiracy to Distribute Oxycodone and Heroin,” two counts of “Distribution of Oxycodone within 1000 feet of a Protected Location,” and one count of “Distribution of Oxycodone” in June 2016.
Draylon Eric Beecham, 41, of Detroit, Michigan, was sentenced to 46 months for distributing heroin near North Elementary School in Monongalia County, West Virginia. Beecham pled guilty to “Distribution of Heroin within 1000’ of a Protected Location” in May 2016.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police Bureau of Criminal Investigation, and the Mon Metro Drug and Violent Crime Task Force investigated the Weeks case. The Mon Metro Drug and Violent Crime Task Force also investigation the Beecham case.
U.S. District Judge Irene M. Keeley presided.
Ohio man pleads guilty to unlawful possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – Donaven J. White, 20, of Coshocton, Ohio, pled guilty to unlawfully possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
White, who had previously been convicted of felony offenses in Belmont County, Ohio, was discovered in possession of a .22 caliber revolver in April 2016. He pled guilty to one count of “Prohibited Person in Possession of a Firearm.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Office of Justice Programs Announces Grant Awards of More Than $8.8 Million to Help Reduce Prescription Drug Abuse, Misuse, DiversionRead the Press Release
The Office of Justice Programs’ Bureau of Justice Assistance (BJA) today announced funding of more than $8.8 million in 20 separate awards to 19 state health and pharmacy boards and departments to better track and share prescription drug information to help reduce drug abuse, misuse, and diversion.
The awards, funded under the BJA’s Harold Rogers Prescription Drug Monitoring Program FY 2016 Competitive Grant Program, enable awardees to create, implement, and enhance Prescription Drug Monitoring Programs (PDMPs). PDMPs are state-run databases that collect data about controlled substance prescriptions dispensed by pharmacies and doctors. Authorized users, including prescribers and dispensers, are permitted to monitor dispensing activity through these programs. Checking a PDMP before prescribing helps to improve appropriate pain management care, prevent diversion of drugs, and identify patients who may have an opioid use disorder and need treatment. In certain states, law enforcement officers may also obtain authorization to access PDMP data. Evidence suggests that PDMPs improve patient care while preventing abuse and overdose deaths.
“Misuse of prescription drugs is a national problem, that requires the cooperative efforts of all medical, health, pharmaceutical, law enforcement agencies, and other partners to solve,” said Assistant Attorney General Karol V. Mason of the Office of Justice Programs. “These awards provide a foundation of resources for enabling data collection, sharing, and collaboration to help prevent prescription medication misuse and abuse.”
These awards support collaboration between law enforcement, prosecutors, public health, treatment professionals, pharmacies, and the medical community to promote strategies that inform effective policies, support investigations, and offer treatment intervention and prevention efforts for at-risk individuals and communities. The awards are administered by BJA in coordination with a myriad of partners, including the U.S. Drug Enforcement Administration’s Office of Diversion Control, the Office of National Drug Control Policy, the U.S. Centers for Disease Control and Prevention, the U.S. Food and Drug Administration, and the Substance Abuse and Mental Health Service Administration.
Today’s awardees include:
- Alabama Dept. of Public Health
- Arkansas Dept. of Health
- Arizona State Board of Pharmacy
- Connecticut Dept. of Consumer Protection
- Dept. of Public Health Social Services
- Kentucky Cabinet for Health and Human Services
- Illinois Dept. of Human Services
- City of Lowell, Massachusetts
- Maryland Dept. of Health and Mental Hygiene
- State of Michigan Dept. of Licensing and Regulatory Affairs
- Minnesota Board of Pharmacy
- Mississippi Board of Pharmacy
- Multnomah County Health Dept., Oregon
- Ohio Office of Criminal Justice Services
- Ohio Board of Pharmacy
- South Dakota Dept. of Health
- Tennessee Dept. of Health
- University of Florida
- Utah Dept. of Health
Today’s awards were announced as part of Prescription Opioid and Heroin Epidemic Awareness Week, which President Obama established by proclamation Sept. 16. Departments across the federal government are continuing to use all available tools to combat this epidemic by expanding evidence-based prevention and treatment programs, increasing access to the overdose-reversal medicine naloxone, improving opioid prescribing practices, and supporting targeted enforcement activities.
For additional information about this grant program, visit http://go.usa.gov/xKW3Q.
National Heroin and Opioid Awareness WeekRead the Press Release
Contact Person: Beth Drake (803) 929-3000
The United States is in midst of a prescription opioid and heroin epidemic that threatens our communities, families, and children. Heroin use, and the abuse of prescription opioids, has impacted the smallest as well as largest communities in our country. In 2014, over 27,000 lives were lost due to heroin and opioids, representing over half of the drug-related deaths reported in 2014. Also at issue is the recent rise in deaths caused by fentanyl, which is a synthetic opioid much stronger than heroin. Recognizing the heartbreaking impact that the prescription opioid and heroin epidemic has had on our country, the Attorney General has designated the week of September 19 as National Heroin and Opioid Awareness Week.
The number of heroin-related overdose deaths increased 244% between 2007 and 2013. The increase in new heroin users and overdose deaths is linked to the overwhelming abuse of prescription opioids. Acting U.S. Attorney Beth Drake commented, “When the source of supply dries up, or when the money runs out, in order to feed their addiction, our kids, our cousins and our neighbors are turning from opioid prescription medicines to the cheaper heroin. And quite literally, they are looking death in the face on that first needle or unsourced pill, because increasingly, what is on the streets and available through the internet is laced with the much stronger fentanyl, a drug used to tranquilize zoo animals.” Prescription opioids and heroin are highly addictive and are themselves responsible for the majority of overdose deaths in this country. Four out of five new heroin users previously abused prescription drugs, which is feeding the heroin crisis we are experiencing. Fentanyl, a synthetic opioid that is anywhere from 25 to 50 times more potent than heroin, is here in South Carolina and is responsible for an increasing number of deaths. Fentanyl is so strong that the equivalent of a few grains of sugar can kill someone. Given that it is stronger and more readily accessed because it is synthetic, unscrupulous drug dealers mix fentanyl with heroin or sell it as heroin. Also, these drug dealers are using fentanyl to manufacture counterfeit tablets, pills, and capsules that mimic prescription drugs.
The President has made clear that addressing the prescription opioid and heroin epidemic is a priority for his Administration. The Department of Justice has responded to the growing trend in heroin and prescription opioid abuse with a three-pronged approach consisting of prevention, enforcement, and treatment.
In light of the heroin and opioid crises, the U.S. Attorney’s Office for the District of South Carolina is committed to reducing the illegal supply of these deadly drugs by working closely with our federal, state and local partners to prosecute the dealers up and down the chain of supply, be they street dealers, corrupt doctors or pharmacists, or internet operations. Because of the staggering increase in the abuse and diversion of prescription opioids, the U.S. Drug Enforcement Administration (DEA) has stood up a new enforcement group, called the Tactical Diversion Squad, specifically to investigate and remove illegal pharmaceutical traffickers in the state of South Carolina.
The heroin and opioid health care crisis is national in scope, but it is here South Carolina. The United States Attorney’s Office is diligently working with federal and state law enforcement colleagues in an effort to address the real dangers posed by the significant rise in heroin and prescription opioid abuse. Below are a few illustrative examples of how heroin, prescription opioids, and fentanyl are directly impacting our state and how the United States Attorney’s Office, in a joint effort with law enforcement, is working to disrupt and dismantle the criminal organizations that are putting these opiates on our streets.
- In 2013, the DEA’s Charleston Office began an investigation after a significant increase in heroin overdoses, including three deaths, in the Charleston tri-county area. Edward Singleton was identified as a large-scale heroin distributor in Charleston. The DEA conducted several controlled purchases of heroin from Singleton, and through further investigation, learned that Singleton’s major heroin source of supply was Kenneth Shannon. The investigation ultimately culminated in the execution of a search warrant of Shannon’s residence and the seizure of over 130 grams of heroin. As a result of the investigation, federal charges were brought against eleven individuals for their roles in a large-scale conspiracy to distribute heroin. Singleton pled guilty to multiple counts of conspiring to distribute and distributing heroin. On July 29, 2016, following a three-day jury trial, Shannon was convicted of seven counts of unlawfully distributing heroin. Both Singleton and Shannon are awaiting sentencing.
- On January 19, 2016, the United States Attorney’s Office for the District of South Carolina announced an indictment charging multiple individuals, including Dr. Mackie James Walker, Jr., a podiatrist of Aiken, South Carolina, with their roles in a conspiracy to illegally distribute oxycodone, a powerful opioid based painkiller. The investigation began due to the large amounts of oxycodone being illegally distributed in and around Aiken. Throughout the investigation, agents learned that Dr. Walker was selling prescriptions to addicts and drug traffickers for up to $1,000 per prescription, and that one of the individuals who received a prescription for oxycodone from Dr. Walker died of an overdose. Evidence obtained throughout the investigation showed that Dr. Walker relied upon others to recruit dozens of individuals to come to his practice and purchase prescriptions of oxycodone. After analyzing text messages, prescription data, and statements from Dr. Walker’s coconspirators, agents determined that, from 2013 to 2015, Dr. Walker wrote illegal prescriptions for 51,580 oxycodone pills. In total, thirteen individuals were indicted for conspiring to illegally distribute oxycodone. On August 17, 2016, Dr. Walker pled guilty to federal drug charges and is awaiting sentencing.
- In January 2016, the DEA and FBI, in conjunction with local law enforcement agencies, began investigating the escalation of heroin distribution plaguing Myrtle Beach and surrounding areas following more than twenty heroin overdose deaths. Initial lab results related to the deaths suggested that pure fentanyl had been substituted for, or mixed with, heroin and sold to drug addicts. The investigation led agents to a significant drug trafficking organization that, at times, would conduct up to forty drug transactions in a five hour period. In March 2016, federal and local law enforcement initiated various enforcement actions, including arrest and search warrants on various targets associated with the drug trafficking organization. Agents seized pure fentanyl, heroin, multiple firearms, and approximately $80,000 in cash from storage units associated with the drug trafficking organization. In the weeks and months following the investigation and dismantlement of the drug network operating out of the Myrtle Beach area, the number of heroin-related overdose deaths in the Myrtle Beach area significantly declined. To increase coordination and cooperation between the United States Attorney’s Office and state prosecutors, the United States Attorney’s Office designated two state prosecutors as Special United States Attorneys.
- Federal prosecutors and agents currently are working with state and local law enforcement in Greenville, South Carolina following the significant rise in overdoses and deaths related to heroin and fentanyl users. Field reports reveal that, in 2015, there were a total of forty-one heroin/fentanyl related overdose deaths in Greenville County, compared to eleven homicides.
The Greenville Police Department and the Greenville County Sheriff’s Office solicited the assistance of the DEA in an effort to identify and dismantle organizations associated with the distribution of heroin and fentanyl within Greenville. In response, the DEA has opened multiple different investigations that target mid-level heroin dealers in Greenville.“In order to short-circuit the problem, we are all going to have to work together. Parents, when a physician lawfully prescribes your child an opiate after a football injury or dental surgery, supervise your child’s taking the medicine, and if there are any dosage units remaining, dispose of them at a take-back center. Also, to all parents, youth groups and mentors, review the movie “Chasing the Dragon,” available on the DEA and FBI web sites, to see if it is age-appropriate for your children. The short film is a compelling, true-life rendition of how opiate abuse cuts across the lines of age, race, gender and wealth. Physicians, prescribe the minimum number of opiate pills appropriate in your judgment, even if it means that the patient is going to have to refill. That bathroom medicine cabinet is in many cases the first introduction to abuse of opiates. Pharmacists, if you suspect a prescription is fraudulent, call law enforcement. We as ordinary Americans can make a difference. In the meantime, you can be assured that your Federal and State officials, from the legislator to the agency administrator to the law enforcement officer, are working to tighten the noose on the illegal source of supply and provide greater treatment options for those who have succumbed to the addiction,” said Acting USA Beth Drake.
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- In 2013, the DEA’s Charleston Office began an investigation after a significant increase in heroin overdoses, including three deaths, in the Charleston tri-county area. Edward Singleton was identified as a large-scale heroin distributor in Charleston. The DEA conducted several controlled purchases of heroin from Singleton, and through further investigation, learned that Singleton’s major heroin source of supply was Kenneth Shannon. The investigation ultimately culminated in the execution of a search warrant of Shannon’s residence and the seizure of over 130 grams of heroin. As a result of the investigation, federal charges were brought against eleven individuals for their roles in a large-scale conspiracy to distribute heroin. Singleton pled guilty to multiple counts of conspiring to distribute and distributing heroin. On July 29, 2016, following a three-day jury trial, Shannon was convicted of seven counts of unlawfully distributing heroin. Both Singleton and Shannon are awaiting sentencing.
Miami-Dade County Aviation Department Division Director and Four Others Charged in $5,000,000 Fraud and Kickback SchemeRead the Press Release
The Miami-Dade County Aviation Department Division Director and four others were charged in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ivan Valdes, 46, of Miami, the Division Director for the Aviation Terminal Building Maintenance for the Miami-Dade County Aviation Department, was charged in an Information with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. A separate Information charges Roy Jesus Bustillo, 37, Rolando Perez, 57, and Jose Barroso, 51, all of Miami, with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371. Another Information charges Ygnacio Valdez, 45, of Miami, an employee in the Procurement Section of the Miami-Dade County Aviation Department, with misprision of a felony, in violation of Title 18, United States Code, Section 4.
“Taxpayers deserve to have their hard-earned monies fund local government, not the pockets of individuals who deprive South Florida residents of the benefit of honest services,” stated U.S. Attorney Ferrer. “Corruption by those who hold the public’s trust corrodes the practice of fair business dealings. The U.S. Attorney’s Office, the FBI and our partners at the State Attorney’s Office will continue to target for prosecution all corrupt officials, regardless of their position.”
“To most people, Ivan Valdes would have been a “Great American Success Story” as he rose from a simple worker to an upper level manager of one of America’s most dynamic airports,” commented Miami-Dade State Attorney Katherine Fernandez Rundle. “Instead, pure greed and a misplaced sense of self-entitlement led him to believe that he had a right to pocket taxpayer’s money. He was wrong. My public corruption prosecutors, federal prosecutors from the U.S. Attorney’s Office, the Miami-Dade Police department and the FBI are constantly working to arrest and convict any public official who steals from the public.”
“When corrupt officials put self-interest and personal enrichment ahead of their obligation to be good stewards of taxpayer dollars, they breach the public's trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI will continue to investigate and hold accountable any public official who utilizes their position for personal gain. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
As set forth in the charging documents, Bustillo was the exclusive area representative in South Florida for the sale of certain LED light fixtures. In or about 2010, Ivan Valdes told Barroso that he would request that the Miami-Dade County Aviation Department purchase the light fixtures represented by Bustillo, if he was paid a share of the proceeds. Valdes and Barroso agreed and during the period of 2010 through and including 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of millions of dollars of LED light fixtures. Bustillo provided a quote to each of the vendors interested in competing for the Invitation to Quote. Global Electrical & Lighting Supplies, Inc., owned by Rolando Perez, submitted bids and was awarded the contracts for each and every Invitation to Quote issued. Perez and Bustillo had a secret agreement wherein Perez would be the only vendor who knew the actual price that Bustillo had agreed upon with the lighting manufacturer for the light fixtures and that a fake mounting accessory was included in the Invitations to Quote. Knowing the additional profit that was to be received from each of the contracts, Bustillo and Perez were able to win the Invitation to Quote by keeping Perez’ bid price low. In order to help ensure that Perez was awarded each of the contracts, Ivan Valdes paid thousands of dollars in cash to Ygnacio Valdez, whose duties in the procurement section in the Miami-Dade County Aviation Department, included collecting and tallying the bids and declaring the lowest responsive bidder on the Invitations to Quote.
On two occasions, Ivan Valdes instructed Barroso to direct Perez to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. Instead, on one occasion the conspirators used light fixtures already in stock at the Miami-Dade County Aviation Department to satisfy the purchase. On the other occasion, no light fixtures were ever provided, not even from those already in stock. Perez bid and won the contracts and he and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to Miami-Dade County Aviation Department.
During the course of the conspiracy, the co-conspirators defrauded the Miami-Dade County Aviation Department of approximately $5,250,000. Barroso and Ivan Valdes split fraudulent proceeds of approximately $2.2 million. Bustillo, through his companies, received fraudulent proceeds of approximately $764,000. Perez received fraudulent proceeds of approximately $1.8 million.
If convicted, the defendants face a range of statutory penalties. Ivan Valdes faces a statutory maximum term of imprisonment of 10 years and fines of up to $250,000. Bustillo, Perez, and Barroso face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000. Ygnacio Valdez face a statutory maximum term of imprisonment of 3 years and a fine of $250,000.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Member of Sinaloa Cartel Sentenced to Eight Years for Distributing Cocaine and Laundering Drug Proceeds from Chicago to MexicoRead the Press Release
CHICAGO — A high-ranking member of the Sinaloa Cartel was sentenced today to eight years in federal prison for his role in importing cocaine from Mexico and laundering millions of dollars in drug proceeds through textile, gold and other transactions.
EDGAR MANUEL VALENCIA-ORTEGA, 29, of Mexico, pleaded guilty earlier this year to one count of conspiracy to commit money laundering. He admitted in a plea agreement that he helped broker multi-kilogram cocaine transactions and laundered narcotics proceeds to Mexico.
U.S. District Chief Judge Ruben Castillo imposed the 96-month sentence in federal court in Chicago.
“This case is about drug trafficking at the highest levels,” Assistant U.S. Attorney Michael Ferrara argued in the government’s sentencing memorandum. “The damage that those drugs, and the violence resulting from the drug trade, have caused to communities in Chicago and elsewhere is immeasurable.”
The U.S. Attorney’s Office in Chicago has worked closely with federal and local law enforcement agencies to target senior leadership of the Mexican-based Sinaloa Cartel. Valencia-Ortega is one of more than 20 alleged members of the cartel to be indicted in federal court in Chicago. The indictments include charges against the cartel’s alleged leader, JOAQUIN “CHAPO” GUZMAN, who is in custody in Mexico. The Chicago-based investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamine and 78 kilograms of heroin.
Valencia-Ortega frequently contacted associates of the Sinaloa Cartel regarding narcotics proceeds that needed to be laundered to Mexico from Chicago and Los Angeles. The drug money was made clean through commodities-based laundering involving textiles, electronics and gold, with Valencia-Ortega receiving a commission on each transaction, according to his plea agreement. In connection with one such transaction, federal authorities in May 2013 seized approximately $149,050 from a courier in Chicago.
Valencia-Ortega acknowledged in the plea agreement that he was directly involved in the laundering of drug proceeds totaling between $1.5 million and $3.5 million.
Valencia-Ortega also admitted brokering multi-kilogram cocaine transactions that resulted in deliveries from Mexico to customers in the Los Angeles area. Federal authorities intercepted one such transaction in June 2013, seizing approximately 41 kilograms of cocaine and $325,000 from a courier. Another federal confiscation in September 2013 resulted in the seizure of approximately 93 kilograms of cocaine from two stash-house operators who were responsible for maintaining and delivering the drugs within the United States.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Chicago Police Superintendent Eddie Johnson.
The government is represented by Mr. Ferrara and Assistant U.S. Attorneys Erika Csicsila, Georgia Alexakis, Kathryn Malizia, and Sean Franzblau.
Manhattan U.S. Attorney Sues Garment Wholesaler, Garment Importers, and Executive for Scheme to Avoid Paying Millions in Import Duties on GarmentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert E. Perez, Director, Field Operations New York, U.S. Customs and Border Protection (CBP), and Angel M. Melendez, Special Agent in Charge of New York, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), announced today that the United States has filed a civil complaint (the “Complaint”) alleging violations of the False Claims Act by YINGSHUN GARMENTS, INC. (“YINGHSUN”), an importer of women’s apparel manufactured in China; MARIE ROGERS (“ROGERS”), former Managing Director of YINGSHUN; IMPORT GLOBAL DESIGNS INC. (“IMPORT GLOBAL”) and OLGREM LLC (“OLGREM”), successor entities to YINGSHUN; and NOTATIONS, INC. (“NOTATIONS”), a wholesaler of women’s apparel and YINGSHUN’s biggest customer. The Complaint alleges that defendants conspired to defraud and did defraud CBP by engaging in a double-invoice scheme whereby YINGSHUN (and later IMPORT GLOBAL and OLGREM), presented false and fraudulent invoices to CBP for the purpose of avoiding import duties on garments sold to NOTATIONS. The Complaint further alleges that NOTATIONS took actions to aid YINGSHUN in perpetrating and concealing the fraud.
As set forth in the Complaint, filed yesterday in Manhattan federal court, import duties for merchandise imported into the United States are calculated by multiplying the value of the merchandise by the applicable duty rate. An importer or its agent must therefore disclose to CBP the value of all imported merchandise and furnish an invoice to justify that value. The Complaint alleges that YINGSHUN created false and fraudulent commercial invoices for garments purchased by NOTATIONS, which undervalued the garments by 75% or more. YINGSHUN then submitted these false invoices to CBP and, based upon the gross undervaluations, paid significantly less in import duties than it actually owed. NOTATIONS was aware of YINGSHUN’s fraudulent scheme and benefited from it, as YINGSHUN’s underpaying of import duties resulted in NOTATIONS paying lower prices for the garments it was purchasing from YINGSHUN, among other benefits. Rather than taking steps to prevent the fraud, NOTATIONS agreed to create and accept false and misleading documents in order to perpetuate the false impression that YINGSHUN’s fraudulent invoices reflected actual prices paid for the garments. ROGERS managed all aspects of YINGSHUN’s business and facilitated the double-invoice scheme, including by utilizing a “formula” that generated garment prices for NOTATIONS that incorporated the underpayment of import duties. ROGERS also created IMPORT GLOBAL and OLGREM and continued YINGSHUN’s fraudulent scheme through these entities, in order to avoid detection by CBP.
This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. §§ 3729 et seq.
According to the Complaint, the defendants have subjected CBP to millions of dollars in losses from unpaid import duties as a result of the double-invoice scheme.
* * *
Mr. Bharara thanked CBP and HSI for their efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Cristy Irvin Phillips is in charge of the case.
Manhattan Federal Court Permanently Bars Tax Preparer Who Orchestrated Tax Fraud Scheme and Four of His Associates from Engaging in Tax Preparation BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that U.S. District Judge Alison J. Nathan has permanently enjoined LESTER MORRISON, a tax preparer who pled guilty in 2010 to orchestrating a large-scale tax fraud scheme, from working as a federal income tax return preparer or engaging in any conduct that interferes with the administration and enforcement of federal tax laws. Judge Nathan previously issued permanent injunctions against four of Morrison’s associates who also had pled guilty to tax fraud, Paulette Bullock, Gary Hanna, Joy David, and Kevin Vaden, to bar them from engaging in the tax preparation business.
Manhattan U.S. Attorney Preet Bharara said: “The injunctions against Lester Morrison and his cohorts make clear that tax preparers who defraud the IRS will not only face criminal charges, but will also be barred from working in the tax return preparation business. This Office is committed to using all the enforcement tools at its disposal to protect the integrity of the federal tax system and public funds.”
As alleged in the Complaint and the United States’ filings:
Between 2000 and 2008, MORRISON and his associates orchestrated a tax fraud scheme involving the preparation of thousands of false and fraudulent tax returns through a tax preparation business located in the Bronx and Englewood, New Jersey. The fraudulent tax returns prepared by MORRISON and his associates sought improper deductions by, among other things, using stolen identities of deceased children to claim dependent deductions, and claiming phony business losses for non-existent businesses. In 2010, MORRISON and his four associates pled guilty to tax fraud in federal court. As of April 2016, MORRISON and his associates have all been released from prison.
In connection with entering the injunction against MORRISON, the Court found, among other things, that:
- Morrison was the organizer and leader of a tax preparation fraud scheme;
- Morrison caused loss of tax receipts to the United States in excess of $17 million;
- Morrison lied to the IRS during the course of the IRS’s investigation into his conduct; and
- Enjoining Morrison from acting as a tax return preparer is needed to protect the integrity of the federal tax system.
Based on those findings, the Court permanently enjoined MORRISON, either personally or by acting in concert with others, from acting as a federal income tax preparer for compensation, providing tax advice or services for compensation, or representing any person or entity before the IRS for compensation. The Court also permanently enjoined MORRISON from engaging in conduct that interferes with the administration or enforcement of federal tax laws. The Court further empowered the Government to take appropriate steps to monitor MORRISON’s compliance.
The Court previously made similar findings and imposed similar injunctions against each of MORRISON’s four associates.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Li Yu is in charge of the case.
MS-13 Gangster Convicted of 2014 Murder in Holmes Run ParkRead the Press Release
ALEXANDRIA, Va. – Douglas Duran Cerritos, 20, of Falls Church, was convicted yesterday by a federal jury for his role in a gang murder in Northern Virginia.
According to court records and evidence presented at trial, on March 29, 2014, Cerritos and six other gang members murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. The gang members lured the victim to Holmes Run Park and brutally killed him by stabbing him repeatedly in the back and the neck, ultimately severing his head. When they were done they buried him in a shallow grave in the park. Cerritos was their leader, and he both planned and directed the murder.
A total of 13 defendants were charged in this case for a series of three murders and one attempted murder that took place in Northern Virginia between October 2013 and June 2014. Of those, six defendants pleaded guilty prior to trial. The remaining six went to trial and were convicted of all charges on May 9. Each defendant convicted at trial faces a mandatory sentence of life in prison. Please see the table at the end of this press release for additional information on each defendant.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police Department; Earl L. Cook, Chief of Alexandria City Police Department; and Barry M. Barnard, Chief of Prince William County Police Department, made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Pedro Anthony Romero Cruz
30, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
30 years
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
Life sentence plus 20 years
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
22 years and 8 months
Juan Carlos Marquez Ayala
23, Falls Church
Murder in Aid of Racketeering
Life sentence
Omar Dejesus Castillo
27, Arlington
Two Counts of Murder in Aid of Racketeering
Two life sentences
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
Facing mandatory life sentence plus additional time
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
Facing mandatory life sentence
Araely Santiago Villanueva
20, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
Facing mandatory life sentence
Jose Del Cid
20, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
26, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
Two life sentences plus 10 years
Genaro Sen Garcia
21, unknown
Murder in Aid of Racketeering
Life sentence
MEDIA ADVISORY-- U.S. Attorney Damon P. Martinez to Deliver Luncheon Address During 2nd Annual NAACP Albuquerque Civil Rights & Diversity ConferenceRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will deliver the luncheon address during today’s session of the 2nd Annual NAACP Albuquerque Civil Rights & Diversity Conference. The U.S. Attorney will deliver his remarks, entitled “Civil Rights in New Mexico: No One is Above the Law, and No One is Below It,” at 12:00 p.m. today, Friday, September 23, 2016, at the Alvarado E Ballroom of the Hotel Albuquerque at Old Town at 800 Rio Grande Blvd. NW in Albuquerque, NM.
WHO:
U.S. Attorney Damon P. Martinez
WHEN:
Friday, September 23, 2016 at 12:00 p.m.
WHERE:
Alvarado E Ballroom
Hotel Albuquerque at Old Town
800 Rio Grande Blvd. NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (cellphone) or [email protected].
Local Events Educate Students on Dangers of Opiate AbuseRead the Press Release
TALLAHASSEE, FLORIDA – As designated by Presidential proclamation, September 18 through 24 is National Prescription Opioid and Heroin Epidemic Awareness Week. In observance, the United States Attorney’s Office for the Northern District of Florida is participating in several events throughout October to educate students on the rising public health crisis of opiate abuse.
Recently, the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) co-produced a 45-minute documentary titled Chasing the Dragon: The Life of an Opiate Addict. The film features several stark, first-hand accounts of the dangers of opiate addiction.
Beginning this week and continuing through October, the United States Attorney’s Office, the FBI, DEA, the United States Probation Office, and other agencies will host several screenings of Chasing the Dragon at local colleges to educate students on the dangers of opiate abuse and to discuss how the issue could impact their lives and future careers. Events took place this week at Florida State University, the University of West Florida, and Pensacola State College, with additional events to be announced as scheduled.
“The Northern District of Florida is joining United States Attorney’s Offices throughout the nation, as well as law enforcement, health professionals, and concerned citizens in our communities to bring awareness to this important issue,” said United States Attorney Christopher P. Canova. “The heroin and opioid epidemic requires a coordinated response to address prevention, drug enforcement, and treatment.”
In 2014, more than 27,000 lives were lost to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. During this week and beyond, Americans can learn more about the disease of addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those who are suffering or recovering from a substance use disorder to let them know they are not alone.
As part of this initiative, more than 70 U.S. Attorneys around the country have already committed to doing more than 160 different events, and more than 90 events are planned at Bureau of Prison facilities.
For more information and resources about heroin and opioid awareness, visit www.justice.gov/opioidawareness. More information about Chasing the Dragon: The Life of an Opiate Addict can be found at the following link, including a free download of the film and teacher discussion guide: www.fbi.gov/chasingthedragon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Last “Bulls Cap Bandit” SentencedRead the Press Release
DALLAS — A Dallas man who admitted to his role in a conspiracy to commit several violent armed robberies in Dallas in 2014, Savalas Christopher Love, 32, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 147 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Love pleaded guilty in November 2015 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence.
Love’s coconspirators, Cedric Ray Jones, 27, and his brother, Damien Antoine Jones, 31, were sentenced earlier this month. Judge Boyle sentenced Cedric Jones to 573 months and Damien Jones to 708 months in federal prison. Each pleaded guilty late last year to one count of conspiracy to interfere with commerce by robbery, two counts of using, carry, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, and three counts of interference with commerce by robbery.
The FBI dubbed the robbers the “Bulls Cap Bandits,” as Cedric and Damien Jones wore Chicago Bulls caps during the robberies.
According to documents filed in the case, from approximately May 28, 2014, through June 17, 2014, the three defendants conspired together to commit these armed robberies:
May 28, 2014 AutoZone
10418 Garland Road, DallasJune 2, 2014 AutoZone
2842 South Buckner Blvd., DallasJune 12, 2014 Cash Plus Pawn
9103 East R.L. Thornton Freeway, Dallas
June 17, 2014 AutoZone
9711 Plano Road, DallasDuring each of the robberies, Cedric and Damien Jones wore disguises and brandished firearms. In a March 7, 2014, robbery of Cash Plus Pawn, Cedric and Damien Jones stole cash and two semi-automatic rifles, and then fled on foot.
In the May 28, 2014, and June 2, 2014, AutoZone robberies, Cedric and Damien Jones entered the store, brandishing the semi-automatic rifles, while Love remained in the vehicle as the “getaway driver.” The three fled in Love’s vehicle. Love knew they brandished firearms during the robbery.
On June 12, 2014, Cedric and Damien Jones, Love, and another individual traveled to the Cash Plus Pawn store on East R.L. Thornton Freeway in Dallas, in Love’s vehicle, with the specific intent to commit robbery. Upon arriving in the parking lot, Damien Jones and the other individual exited the vehicle and approached the store’s entrance with firearms, but abandoned the robbery when confronted by a store employee. They fled in Love’s vehicle. Love knew they brandished firearms during the robbery.
In the June 17, 2014, AutoZone robbery, Cedric and Damien Jones traveled together in Love’s vehicle to the store with the intent to commit robbery. Love traveled separately to the location with the specific intent to facilitating the commission of the robbery. Love “cased” the store and reported the absence of security personnel to Damien Jones, knowing any information he provided would be used to facilitate the robbery and avoid detection and apprehension by police. Cedric and Damien Jones then entered the store, brandishing semi-automatic rifles, and then fled the robbery in their vehicle. Love knew they brandished firearms during the robbery. During a subsequent chase with law enforcement, Cedric Jones operated the vehicle in a manner to avoid apprehension and created a substantial risk to other motorists on the roads. During the pursuit, shots were fired in the direction of the pursuing officers to further avoid apprehension.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorneys Keith Robinson and Brian Poe were in charge of the prosecution.
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Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Sam Ames Sent to Prison for Role in Mortgage Fraud Conspiracy
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Sam Ames, 33, of Charlotte, Michigan was sentenced to eight months in prison for his role in a conspiracy to commit mortgage fraud in connection with his dealings with CDC Investments and Hometowne Financial. He was also ordered to pay a fine of $7,500 and restitution in the amount of $285,000 to the financial institutions defrauded. The sentence was imposed by Chief U.S. District Judge Robert J. Jonker.
On March 15, 2016, Ames pled guilty to conspiring with others to commit bank fraud in connection with real estate in and around Lansing, Michigan, from in or about 2006 to 2007. The conspiracy, which resulted in losses to mortgage lenders exceeding $550,000, enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions.
Judge Jonker decided to sentence Ames below the recommended range of 30-37 months because he felt Ames had turned his life around since committing his crimes. But the Judge rebuffed a defense request for a probationary sentence. While the Judge declared himself persuaded that Ames was a different person than the one who defrauded banks and mortgage companies, the Judge stated that it was important for the public to see that a prison term awaits anyone who engages in mortgage fraud as rampant as the Ames conspiracy was.
Ames’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, eighteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. The prosecution was handled by Assistant U.S. Attorney Timothy VerHey.
END
Jury Convicts Shiloh Man of Robbing Gas Station TwiceRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that late Wednesday morning, a federal jury in Benton found Michael L. Jackson, III, 21, of Shiloh, Illinois, guilty of two counts of Interference with Commerce by Robbery and one count of Use of a Firearm in Relation to a Crime of Violence.
Evidence at trial showed that on December 21, 2011, Jackson entered Midwest Petroleum located at 1551 Hartman Lane wielding a knife and demanded money from the clerk. He was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in a field adjacent to Midwest Petroleum. On March 13, 2014, Jackson again entered Midwest Petroleum, brandished a firearm, and demanded money and Newport cigarettes from the clerk. He again was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in the same field adjacent to Midwest Petroleum. Investigators from the Shiloh Police Department found the clothing after each robbery and collected it as evidence.
In listening to the surveillance videos, Shiloh investigators believed the robber was Jackson based upon the voice. The clothes worn and discarded in the field from both robberies were submitted to the Illinois State Police Crime Laboratory for DNA testing, and Jackson’s DNA was found on all of the clothing tested.
Sentencing has been scheduled for January 24, 2017, in front of the Honorable Stacy Yandle. The investigation was conducted by the Shiloh Police Department. The case was prosecuted by Assistant United States Attorney Laura V. Reppert and Special Assistant United States Attorney Emily Wasserman.
Jamestown Woman Sentenced on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Alicia Wilson, 37, of Jamestown, NY, who was convicted of access device fraud, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $28,508.44.
Assistant U.S. Attorney Marie Grisanti, who handled the case, stated that Wilson, an in-home health care aid, applied for credit cards in the names of the elderly couple she cared for. The defendant used the credit cards online and at local retail establishments in Jamestown and Erie, Pennsylvania, and withdrew cash from local banks. Losses suffered by Bank of America, Capital One and Citizen’s Bank totaled more than $25,000.
The sentencing is the result of an investigation by the United States Postal Inspection Service under the direction of Inspector in Charge Shelly Binkowski.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on September 22, 2016 and entering pleas of Not Guilty were:
- TERRY LYNN STURDEVANT, JR., a 29-year-old resident of Butte, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, STURDEVANT faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2016 and entering pleas of Not Guilty were:
- LEON BOYD MESSERLY, a 55-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, MESSERLY faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-62
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Independence Woman Pleads Guilty to Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., woman pleaded guilty in federal court today to using a telephone in the commission of a murder-for-hire scheme.
Teresa Owen, 62, of Independence, pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a July 7, 2015, federal indictment. Owen has been in federal custody without bail since her arrest on June 18, 2015.
By pleading guilty today, Owen admitted that she had contact with two separate individuals via telephone and offered them money to kill a person identified in court documents as “B.H.” Owen spoke with an acquaintance and later with an undercover police officer to discuss (or arrange to meet to discuss) the murder of B.H.
Owen also admitted that she met with an undercover officer in Independence on June 10 and 11, 2015. During the meetings, Owen asked the undercover officer to kill B.H. and agreed to pay the undercover officer $700 for the murder of B.H. Owen used her phone to access Facebook photos of B.H. in order to identify B.H. to the undercover officer. She also provided written identification and location information for B.H., and made a payment of $200 to the undercover officer on June 11, 2015.
Under the terms of today’s plea agreement, Owen will be sentenced to at least three years in federal prison without parole, up to four years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Independence, Mo., Police Department and the FBI.
Importing Company’s Founder Sentenced to 124 Months’ for His Role in $26 Million Ponzi SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Eric Aronson, the founder and head of Permapave Industries LLC and Permapave USA Corporation (Permapave), was sentenced to 124 months’ imprisonment to be followed by three years’ supervised release, and ordered to forfeit $26 million in criminal proceeds. Restitution amount to be determined. Aronson pleaded guilty to securities fraud on September 12, 2014.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, which led the government’s investigation in this case.
Aronson was charged with securities fraud for orchestrating a multi-million dollar Ponzi scheme which, from approximately August 2006 to December 2010, defrauded more than 200 investors out of approximately $26 million. He and his coconspirators issued promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. In reality, they operated a Ponzi scheme whereby some investors were paid returns on their investment from the funds Aronson obtained from other defrauded investors. Aronson converted millions of dollars of investor funds for personal expenditures, including vacations, watches, jewelry, and automobiles.
Today’s sentencing took place before Senior United States District Judge Arthur D. Spatt.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
ERIC ARONSON
Age: 48
Syosset, New YorkE.D.N.Y. Docket No. 12 - CR - 245 (ADS)
Illegal Alien Pleads Guilty to Possession of a HandgunRead the Press Release
Gulfport, Miss – Pablo Mendoza-Sanchez pled guilty before Chief U.S. District Judge Louis Guirola, on September 20, 2016, to possession of a firearm by an illegal alien, U. S. Attorney Gregory K. Davis announced today.
Mendoza-Sanchez, 26, a native of Mexico, was discovered with the handgun during a traffic stop by Harrison County Deputies. Fingerprints confirmed that Mendoza-Sanchez had been removed three times from the United States. He will be sentenced on December 14, 2016 and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations and the Harrison County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Annette Williams.
ISIL-Linked Kosovo Hacker Sentenced to 20 Years in PrisonRead the Press Release
WASHINGTON – Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, was sentenced today to 20 years in prison for providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and accessing a protected computer without authorization and obtaining information in order to provide material support to ISIL.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville Field Office made the announcement after the defendant was sentenced by U.S. District Judge Leonie M. Brinkema.
"This case represents the first time we have seen the very real and dangerous national security cyber threat that results from the combination of terrorism and hacking,” said Assistant Attorney General Carlin. “This was a wake-up call not only to those of us in law enforcement, but also to those in private industry. This successful prosecution also sends a message to those around the world that, if you provide material support to designated foreign terrorist organizations and assist them with their deadly attack planning, you will have nowhere to hide. As this case shows, we will reach half-way around the world if necessary to hold accountable those who engage in this type of activity. I want to thank the corporation that worked with law enforcement to solve this crime, and the agents, analysts and prosecutors who worked on this groundbreaking case."
Ferizi, who was detained by Malaysian authorities on a provisional arrest warrant on behalf of the U.S., was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015. Ferizi subsequently consented to extradition.
Ferizi pleaded guilty on June 15. According to court documents, Ferizi admitted that on or about June 13, 2015, he gained system administrator-level access to a server that hosted the website of a U.S. victim company. The website contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers, including members of the military and other government personnel. Ferizi subsequently culled the PII belonging to U.S. military members and other government personnel, which totaled approximately 1,300 individuals. That same day, on June 13, Ferizi provided the PII belonging to the 1,300 U.S. military members and government personnel to Junaid Hussain, a now-deceased ISIL recruiter and attack facilitator. Ferizi and Hussain discussed publishing the PII of those 1,300 victims in a hit list.
According to court documents, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of the approximately 1,300 U.S. military and other government personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
This case is being prosecuted by Special Assistant U.S. Attorney Brandon Van Grack of the Eastern District of Virginia and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section. The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
ISIL-Linked Hacker Sentenced to 20 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, was sentenced today to 20 years in prison for providing material support to the Islamic State of Iraq and the Levant (ISIL) and accessing a protected computer without authorization and obtaining information in order to provide material support to ISIL.
According to court documents, Ferizi admitted that on or about June 13, 2015, he gained system administrator-level access to a server that maintained the website of a victim company located in the United States, which also contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers, including members of the military and other government personnel. He subsequently culled the PII belonging to United States military members and other government personnel, which totaled approximately 1,300 individuals. That same day, on June 13, 2015, Ferizi admitted that he provided the PII belonging to the 1,300 United States military members and government personnel to Junaid Hussain, aka Abu Hussain al-Britani, a now-deceased member of ISIL.
According to the statement of facts, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of the approximately 1,300 U.S. military and other government personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
Ferizi was detained by Malaysian authorities on a provisional arrest warrant on behalf of the United States and was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015, and Ferizi subsequently waived consent to extradition. Ferizi pleaded guilty on June 15, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Charles P. Spencer, Special Agent in Charge of the FBI’s Jacksonville, Florida, Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was prosecuted by Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorney Gregory Gonzalez of the National Security Division’s (NSD) Counterterrorism Section. The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-42.
INTERPOL Washington Provides Support to ICE OperationsRead the Press Release
WASHINGTON – U.S. Immigration and Customs Enforcement (ICE) arrested 36 fugitives during concurrent nationwide operations this week – Operation Safe Nation and Operation No Safe Haven III. Of those arrested, 17 were sought because they may pose a threat to public safety or national security, including individuals suspected of providing material support to a terrorist organization and 19 were sought for their known or suspected roles in human rights violations overseas.
During the operations that concluded Wednesday, the ICE National Fugitive Operations Program arrested the fugitives in coordination with the ICE Human Rights Violators and War Crimes Center, the ICE Counterterrorism Section and ICE field offices around the country.
ICE credits the success of this operation to the combined efforts of the U.S. National Central Bureau-Interpol Washington which provided critical support with deconfliction, foreign criminal history, and identity confirmation information.
“Interpol’s investigative tools provide U.S. law enforcement with a suite of databases that provide real-time biometric, travel document, and criminal background information,” according to Interpol Washington Director Geoffrey S. Shank. “These operations exemplify what can be achieved when U.S. and international law enforcement agencies have immediate access to information."
Read full article here: https://www.ice.gov/news/releases/ice-arrests-36-fugitives-across-us-during-operation-safe-nation-and-operation-no-safe
Husband of Former United States Tax Court Judge Pleads Guilty to Obstructing an IRS AuditRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ROBERT E. FACKLER, 63, with obstructing an IRS audit. FACKLER, who was indicted on April 4, 2016, pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER was married to Diane Kroupa, a former judge who was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years. During the same period, FACKLER was a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, FACKLER and Kroupa owned a home in Minnesota. From 2007 to 2013, they also leased a second residence in Maryland, where Kroupa lived while fulfilling her duties as a Tax Court Judge in Washington DC.
According to the plea agreement and FACKLER’s testimony at the plea hearing, between 2002 and 2012, FACKLER and Kroupa conspired to obstruct the Internal Revenue Service (IRS) from accurately determining their joint income taxes. As part of the conspiracy, FACKLER and Kroupa worked together each year to compile numerous personal expenses for inclusion as supposed “business expenses” for Grassroots Consulting in their joint tax return. Those expenses included: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand. In total, from 2004 through 2010, the defendants fraudulently deducted at least $500,000 of personal expenses as purported Schedule C business expenses. At times, Kroupa prepared and provided to FACKLER handwritten summaries of personal expenses falsely described according to business expense categories. On other occasions, Kroupa herself compiled and provided to their tax preparer the fraudulent personal expense.
According to the plea agreement and FACKLER’s testimony at the plea hearing, as part of the conspiracy, FACKLER also caused Grassroots Consulting business receipts to be understated by approximately $450,000 by fraudulently deducting purported business expenses which had previously been reimbursed. As a result, the defendants caused the amount of adjusted gross income, taxable income, and total tax shown on their income tax returns to be falsely understated.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER and Kroupa made a series of other false claims on their tax returns, including failing to report approximately $44,520 that Kroupa received from a 2010 land sale in South Dakota. The defendants falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER and Kroupa purposely concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit for their 2004 and 2005 tax returns.
According to the plea agreement and FACKLER’s testimony at the plea hearing, during a second audit in 2012, FACKLER and Kroupa caused false and misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting. After the IRS requested documents pertaining to their tax returns, Kroupa removed certain items from their personal tax files before FACKLER gave them to their tax preparer because the documents could reveal they had illegally deducted numerous personal expenses. FACKLER and Kroupa together concocted “false explanations” justifying payments questioned by the IRS. Later, when they learned the 2012 audit might progress into a criminal investigation, Kroupa instructed FACKLER to lie to the IRS about her involvement in preparing the portion of their tax returns related to Grassroots Consulting.
According to the plea agreement and FACKLER’s testimony at the plea hearing, between 2004 and 2010, FACKLER and Kroupa purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $450,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank are prosecuting the case.
Defendant Information:
ROBERT E. FACKLER, 63
Minnetonka, Minn.
Convicted:
- Obstruction of an IRS audit, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Huntsville Pill Mill Doctor Charged with Illegal Prescribing and Health Care FraudRead the Press Release
BIRMINGHAM – Federal prosecutors on Thursday charged a former Huntsville physician, who was the nation’s highest Medicare prescriber of opioid painkillers at the height of his practice, with illegally prescribing controlled substances and with a health care fraud involving $9.5 million in unneeded and unused urine tests, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
In a two-count information filed in U.S. District Court, the U.S. Attorney’s Office charged SHELINDER AGGARWAL, 48, of Huntsville, with one count of distributing a controlled substance outside the scope of professional practice and not for a legitimate medical purpose in July 2012, and with one count of conspiring to execute a health care fraud scheme against Medicare and Blue Cross Blue Shield of Alabama between Jan. 1, 2011, and March 31, 2013.
Prosecutors also filed a plea agreement with Aggarwal in which he agrees that he will plead guilty to the charges and forfeit his former clinic on Turner Street Southwest in Huntsville, along with $6.7 million. Aggarwal earlier repaid $2.8 million to Medicare and $45,843 to Blue Cross following audits, according to his plea agreement. The agreement stipulates a 15-year prison sentence. A federal judge must accept the terms of the agreement before it is final.
Aggarwal surrendered his Alabama medical license in 2013, along with his Alabama and federal Drug Enforcement Administration certificates to prescribe controlled substances, after the Alabama Board of Medical Examiners initiated an investigation.
“Shelinder Aggarwal treated his medical license like a license to deal opiate drugs,” Vance said. “He also defrauded Medicare and Blue Cross Blue Shield of more than $9 million dollars by performing drug tests he never used to treat his patients. Thanks to this prosecution, Aggarwal is no longer a drug dealer masquerading as a doctor. His pill mill is closed, he must repay the money he stole from health insurers, and he will serve time for his crimes,” she said. “I am grateful to our prosecutors and the investigators who brought this individual to justice.”
“Aggarwal was trusted with resources to care for others and used that access to defraud the health care system, thus costing tax payers millions of dollars,” Stanton said. “In addition, he directly contributed to the opioid drug epidemic which is plaguing our nation, and potentially endangered the lives of his patients. I applaud the work of my agents and our partners to shut down Aggarwal’s pill mill and hold him accountable for his actions.”
Aggarwal was a pain management doctor who operated Chronic Pain Care Services in Huntsville. His medical practice was a pill mill, according to the charges and plea agreement. The documents state that in 2012, about 80 to 145 patients a day visited Aggarwal’s clinic, with him seeing the majority of patients and writing all prescriptions. Initial patient visits typically lasted five minutes or less, and follow-ups two minutes or less. The documents state that Aggarwal did not obtain prior medical records for his patients, did not treat patients with anything other than controlled substances, often asked patients what medications they wanted and filled their requests, prescribed controlled substances to patients who he knew were using illegal drugs, and did not take appropriate measures to ensure that patients did not divert or abuse controlled substances. The plea agreement summarizes an interaction with a patient, which was captured on video. In it, Aggarwal notes that the DEA viewed him as the “biggest pill-pusher in North Alabama” and that many of his patients were “dropping like flies, they are all dying.”
The documents cite the Prescription Drug Monitoring Program for Alabama, which tracks the dispensing of controlled substances, as well as Medicare data, to document Aggarwal’s prescribing practices.
According to the PDMP, Alabama pharmacies filled about 110,013 of Aggarwal’s prescriptions for controlled substances in 2012. That would equal about 423 prescriptions per day if he worked five days a week, and resulted in about 12.3 million pills. The PDMP rated Aggarwal as the highest prescriber of controlled substances filled in Alabama in 2012, with the next highest prescriber writing a third as many prescriptions.
Medicare data shows Aggarwal was the highest prescriber in the United States of Schedule II controlled substances under Medicare in 2012. Schedule II substances include the opioid painkillers oxycodone, oxymorphone, hydromorphone and morphine.
As to Aggarwal’s health care fraud scheme, he is charged with requiring patients to undergo unreasonable and unnecessary urine drug tests that he did not need or use in their treatment. According to the documents, the tests he ran depended not on patients’ treatment, but on how much he could bill for tests. Aggarwal often ignored urine test results showing patients were using illegal drugs, the documents state.
Between January 2011 and March 2013, urine drug tests accounted for about 80 percent of paid claims Aggarwal submitted to Medicare and Blue Cross, for a total reimbursement of $9.5 million. According to his charges and plea agreement, “Aggarwal’s primary motivation for testing patients’ urine specimens, and submitting those claims for payment, was financial gain.”
The FBI investigated the case, based partly on an investigation conducted by the ABME. Assistant U.S. Attorneys Chinelo Dike-Minor and Russell Penfield are prosecuting.
Harford County Man Sentenced to Five Years in Federal Prison for Distribution and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Francis Chaney, age 72, of Whiteford, Maryland, today to five years in federal prison, followed by five years of supervised release, for possession and distribution of child pornography. Judge Motz also ordered that upon his release from prison Chaney must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, over the course of several years Chaney used several email addresses to both send and receive images of child pornography. On February 6, 2015, a search warrant was executed at Chaney’s residence and his laptop, external hard drive, and other digital media were seized. Forensic analysis of the items revealed that all had images depicting minors engaged in sexually explicit conduct, including prepubescent minors, and minors engaged in sadistic and/or masochistic conduct or other depictions of violence. There were approximately 1,941 videos and 23,381 image of child pornography which had been downloaded from internet websites. Chaney admitted that he sought child pornography on the internet and actively traded the images and videos with others, distributing them via the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the federal case.
Government Intervenes in Suit Against Energy & Process Corporation Alleging Use of Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (E&P), of Tucker, Georgia, alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility, the Justice Department announced today.
“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.”
The lawsuit alleges that although the DOE paid E&P a premium to supply rebar that met stringent regulatory standards for the Mixed Oxide Fuel Fabrication and Reactor Irradiation Services facility in the DOE’s Savannah River site near Aiken, South Carolina, E&P failed to perform most of the necessary quality assurance measures, while falsely certifying that those requirements had been met. The lawsuit further alleges that one-third of the rebar supplied by E&P and used in the construction was found to be defective.
“To ensure that the nuclear facility would be safe, the government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the government are identified and held responsible.”
The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina and the DOE’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only and there has been no determination of liability.
Government Intervenes in Suit Against Energy & Process Corporation Alleging Use of Defective Steel Rebar and Quality Control Failures in Connection with Construction of Nuclear Processing FacilityRead the Press Release
ATLANTA – The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (“E&P”), of Tucker, Georgia, alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (“rebar”) in connection with a contract to construct a Department of Energy (“DOE”) nuclear processing facility, the Justice Department announced today.
“To ensure that the nuclear facility would be safe, the Government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the Government are identified and held responsible.”
“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.”
The lawsuit alleges that, although the DOE – in connection with the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE’s Savannah River Site near Aiken, South Carolina – paid E&P a premium to supply rebar meeting the stringent quality assurance standards promulgated by the United States Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed this failing by falsely certifying that the quality assurance requirements had been met. As a result, one-third of the rebar supplied by E&P and used in the construction was found to be defective.
The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the DOE’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only, and there has been no determination of liability.
This matter is being handled by Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Gervais Man Sentenced to Seven Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Thursday, September 22, 2016, U.S. District Judge Michael H. Simon sentenced Adam Michael Groat, 28, of Gervais to seven years in federal prison and a life term of supervised release after Groat’s previous pleas of guilty to three counts of distributing child pornography, three counts of receiving child pornography, and one count of possession of child pornography.
Separate investigations by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) revealed that Groat repeatedly traded numerous images of child pornography with various people online. The HSI investigation revealed that Groat traded child pornography with an offender in Arizona who was the subject of another investigation. The FBI investigation revealed that Groat traded child pornography with a woman in Texas who was also the subject of another investigation. Forensic examinations of Groat’s computer equipment revealed hundreds of child pornography images and videos, including materials depicting prepubescent minors engaged in bestiality and sadomasochistic conduct.
At the sentencing hearing, Judge Simon noted that trading in child pornography has the effect of normalizing the sexual abuse of children. He recognized the continuing harm to the children depicted in the images and video, and noted that the proliferation of child pornography assures that child sexual abuse will continue. Judge Simon also stated that a civilized society must protect its most vulnerable members – its children.
Judge Simon imposed a lengthy and stringent list of conditions with which Groat must comply while on supervised release. These include limitations on contact with minors, a requirement to undergo mental health and sex offender treatment, restrictions on where Groat may work and reside, and restrictions on computer usage and access to the Internet. Groat will also be required to register as a sex offender. Groat said he was “truly sorry and regretful” for his conduct.
“Trading in images of the sexual abuse of children is criminal, despicable, and cannot be tolerated in a civil society,” said Billy J. Williams, United States Attorney for the District of Oregon. “The children shown in the images are victimized anew each time images of their abuse are uploaded, downloaded, traded, or viewed,” he added. “By actively trading in those images, Adam Groat prolonged the harm each of the victims suffered,” Williams noted. Groat’s sentence “should serve as a stern warning to anyone inclined to trade in child pornography that such actions cause serious harm and will result in serious consequences.”
The investigation was conducted by HSI and the FBI. This case was prosecuted by Special Assistant U.S. Attorney Bumjoon Park and Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Franklin woman sentenced to 24 months in prison for stealing more than $61,000 from her employerRead the Press Release
LAKE CHARLES – United States Attorney Stephanie A. Finley announced that a Franklin woman was sentenced Thursday to 24 months in prison for stealing more than $61,500 from the company where she worked.
Michelle Leann Berry-Ortemond, 41, of Franklin, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of wire fraud. She was also sentenced to three years of supervised release and ordered to pay $55,346.66 restitution. According to the May 25, 2016 guilty plea, Berry-Ortemond stole $61,696.41 from a Lafayette construction company from February 2010 to April 2011 while employed there. She forged and cashed forged checks, initiated wire transfers and accessed a line of credit in the corporation’s name without consent.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Former New York City Public School Teacher Pleads Guilty to Receiving Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JON CRUZ, a former teacher and debate coach at the Bronx High School for Science, pled guilty today to one count of receiving child pornography. CRUZ, who was arrested on March 5, 2015, entered his plea before United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “Crimes that sexually exploit and victimize children are some of the most disturbing and harmful. It is particularly so when those entrusted to teach and guide our children in our schools, instead lure and then sexually exploit them. Jon Cruz, a public school teacher and well-known debate coach, has admitted to doing just that, having now pled guilty to receiving child pornography.”
According to the Complaint, the Indictment, and other documents filed in the case, as well as statements made during the plea proceedings:
From July 2014 through December 2015, JON CRUZ, while employed as a teacher and debate coach at Bronx High School for Science, engaged in multiple chats over a mobile communication application and social media service with at least five minor victims from different states. In those chats, CRUZ, who was aware of the ages of the victims, provided payments to the victims in exchange for sexually explicit photographs of themselves.
* * *
CRUZ, 33, of New York, New York, pled guilty to one count of receiving child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Shawn G. Crowley is in charge of the prosecution.
Former Joplin Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Joplin, Mo., police officer has pleaded guilty in federal court to violating the civil rights of a woman he arrested by attempting to get her case dismissed in exchange for a sexual relationship.
Brian Rogers, 30, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, Sept. 19, 2016, to the deprivation of rights under color of law.
According to his plea agreement, Rogers – who was a Joplin police officer at the time – arrested a woman identified in court documents as Jane Doe for driving under the influence in October 2015. She was subsequently charged with DUI by the Joplin Prosecuting Attorney’s Office.
Rogers admitted that he communicated with Jane Doe via texts and Facebook Messenger in December 2015 and offered to get the charge dismissed. Rogers said he would like to see Jane Doe’s body and asked her to send him pictures, which she refused to do. Rogers asked Jane Doe what she was offering and said he wanted her to “show me one hell of a time!” Rogers also asked her to come by his office, which she also refused to do.
On Dec. 28, 2015, Rogers approached city prosecutor Becky Seidl and suggested she dismiss the case. Rogers stated that he had experienced a maintenance issue with the breathalyzer that he had used to take the sample from Jane Doe. Rogers told Seidl they would have a hard time of making the case stick and he was inclined to give Jane Doe the benefit of the doubt.
Seidl told Rogers she agreed and the case would need to be dismissed. After speaking with Rogers, Seidl spoke to police officials, who contacted the FBI. When federal agents interviewed Jane Doe, she agreed to place a recorded phone call to Rogers. During the call Rogers stated he had spoken with the city prosecutor and he believed the charges would be dropped. Rogers also stated he would check up on the status of the case the following day.
On Jan. 25, 2016, federal agents interviewed Rogers. Rogers admitted that he had hoped his actions in helping to dismiss Jane Doe’s case would lead to him and Jane Doe developing a friendship and then a sexual relationship. Rogers had hoped that after getting the charges dropped Jane Doe would meet with him.
Under federal statutes, Rogers is subject to a sentence of up to one year in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Joplin, Mo., Police Department.
Former Emergency Room Nurse Sentenced to 45 Months in Prison for Sexually Abusing Three PatientsRead the Press Release
WASHINGTON –Jared Kline a former emergency room staff nurse, was sentenced today to 45 months in prison for sexually abusing three patients in separate incidents at area hospitals, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Kline, 39, of Springfield, Va., was found guilty by a jury in June 2016 of three counts of second-degree sexual abuse of a patient, including two with aggravating circumstances. The verdicts followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael Ryan. The judge sentenced Kline to a total of 86 months in prison, but suspended all but 45 months of that time on the condition he successfully complete five years of probation. Judge Ryan also imposed a period of 10 years of supervised release. During his supervised release, he may not work in any field involving contact with patients. Additionally, he must register as a sex offender for the rest of his life. Kline was taken into custody today.
“This defendant sexually abused victims at especially vulnerable times, when they were turning to him for treatment in hospital emergency rooms,” said U.S. Attorney Phillips. “Hopefully today’s sentence will deter this defendant and others from engaging in similar conduct and bring some relief to the women who were traumatized by his reprehensible acts.”
According to the government’s evidence, between 2013 and 2014, Kline was a traveling nurse in the Washington, D.C. area, taking shifts in the emergency departments at various hospitals. In three separate instances, he intentionally thrust his penis against the victims’ hands while purporting to provide them with medical care. Two came forward soon after their release from the hospitals, while one reported while she was still at the hospital. All were interviewed by the Metropolitan Police Department.
One incident took place early May 12, 2013, at the George Washington University Hospital. Another occurred on the evening of Dec. 28, 2013 at the Washington Hospital Center. The third incident took place late Aug. 23, 2014 at United Medical Center. According to the government’s evidence, each victim was very ill, alone, and extremely vulnerable in the emergency room. Each was under the medical care of the defendant. Kline was responsible for taking the victims’ vital signs, inserting their IV’s, and administering their medications. On each occasion, he began flirting with the victim. While it may have seemed inappropriate, the victims believed the flirting was meant to calm them and reduce their anxiety. Then, while inserting an IV or affixing a blood pressure cuff, Kline sexually assaulted the victim.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and its Sexual Assault Unit. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jodi Lazarus, Christopher Macchiaroli, Chrisellen Kolb, Katherine Kelly, and Deborah Sines; Elizabeth Trosman, Chief of the Appellate Division; Victim/Witness Advocate Tracey Hawkins; Paralegal Specialists D’Yvonne Key and Tiffany Jones, and Litigation Technology Specialist Leif Hickling. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Jason Park and John B. Timmer, who investigated and prosecuted the case.
Federal Jury Convicts Drug TraffickerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that the eighth and final defendant arising from Operation Road Block, an extensive investigation into a drug trafficking network operation in the Baton Rouge region, has been convicted following a federal jury trial. The other seven defendants had already been convicted.
Yesterday evening, a federal jury unanimously convicted WILBERT MATHES, age 41, of Baton Rouge, Louisiana, on seven counts of conspiracy to distribute and possess with the intent to distribute 500 grams ore more of cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute 500 grams or more of cocaine; and unlawful use of a communications facility. The verdict followed a four day jury trial before U.S. District Judge Shelly Dick. MATHES was remanded into custody following his conviction and awaits sentencing.
The evidence at trial established that, between August 2010 and July 2011, MATHES had mult-kilogram shipments of cocaine transported from Houston, Texas to Baton Rouge and sold that cocaine for profit throughout the Baton Rouge area and elsewhere. This drug enterprise included MATHES, Joell Leggins, Marcus Thornton, Damond Reynard Lockett, Lamont Jackson, and Broderick Mathes.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
DEA Assistant Special Agent in Charge Brad L. Byerley stated, “This guilty verdict signifies that law enforcement will not tolerate drug dealing in our communities. The DEA and our law enforcement partners are committed to identifying every individual within a drug trafficking organization who is responsible for purveying our city with illegal narcotics.”
This matter was investigated by the United States Drug Enforcement Administration, with valuable assistance from Baton Rouge Police Departmant, West Baton Rouge Parish Sheriff’s Office, East Baton Rouge Parish Sheriff’s Office and Federal Bureau of Alchol, Tobacco and Firearms. It is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Jessica Thornhill.
Federal Grand Jury in Austin Indicts Three on Racketeering and Fraud Charges in Connection with the Attempted Capital Murder of State District Court Judge Julie KocurekRead the Press Release
A federal grand jury in Austin has indicted three individuals, including 28-year-old Chimene Hamilton Onyeri of Houston, for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year.
That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; Austin Police Chief Art Acevedo; Travis County Criminal District Attorney Rosemary Lehmberg; United States Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; and, U.S. Secret Service Special Agent in Charge Cynthia Marble, Houston Division.
An 11-count indictment, unsealed in Austin today, charges Onyeri, 26-year-old Marcellus Antoine Burgin of Cypress, TX and 24-year-old Rasul Kareem Scott of Marrera, LA, with one count of conspiracy to participate in an enterprise engaged in a pattern of racketeering activity; one count of conspiracy to commit wire fraud; and, one count of aggravated identity theft. Onyeri is also charged with conspiracy to commit mail fraud; an additional count of conspiracy to commit wire fraud; and, six additional counts of aggravated identity theft.
The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder.
According to the indictment, the defendants carried out a wire fraud scheme whereby they used debit card readers, or “skimmers,” and cameras placed on ATMs to steal personal identification information (PII) from, and identify PIN #’s used by, unsuspecting individuals. The defendants then used the stolen PII and debit card PIN #’s to “cash out,” or deplete, those bank accounts.
The indictment also alleges that from December 2011 to November 2013, Onyeri and others carried out a credit card skimming scheme whereby they captured unsuspecting individuals’ credit card information at various restaurants and retail stores. They would then transfer the stolen information onto gift cards and subsequently use those gift cards to purchase retail items or money orders which could then be sold or converted to cash.
The indictment further alleges that Onyeri and others were involved in a Stolen Identity Refund Fraud (SIRF) scheme. Onyeri and others used stolen PII to create and file fraudulent income tax returns seeking refunds. Once the refund checks were mailed, Onyeri and others would use the checks to open up bank accounts and then access the fraudulently obtained funds through cash or ATM withdrawals. The indictment also alleges that Onyeri bribed bank employees to create false bank accounts to facilitate access to the funds and agreed to pay $1,500 to an individual who he believed was a U.S. Postal Letter Carrier in exchange for intercepting mailed income tax refund checks.
According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence. The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.
“This multi-agency investigation uncovered a diabolical scheme that went from multi-faceted fraud to an attempt on the life of a State judicial officer,” stated United States Attorney Richard L. Durbin, Jr. “I commend the extraordinary efforts of Assistant U.S. Attorney Gregg N. Sofer, Special Assistant U.S. Attorney Dayna Blazey, and the agents of the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, U.S. Postal Inspection Service, Austin Police Department and the U.S. Secret Service who brought this case to indictment.”
“A violent attack against a judge doesn't just threaten our justice system; it's an assault to the bedrock of our democracy which upholds the laws protecting our freedom. This case should send a strong message to those who threaten or harm members of our judiciary; the FBI will work day and night, with our law enforcement partners, to ensure they are held accountable for their actions,” stated FBI Special Agent in Charge Christopher Combs.
“Once again, this investigation proves that greed knows no bounds,” said William J. Cotter, IRS-CI Special Agent in Charge for the San Antonio Field Office. “What began as a seemingly small financial crime grew into an organization willing to use violent acts to shield their financial fraud schemes from discovery. IRS-CI Special Agents used financial tracing techniques to assist in unraveling the complex web of violence and fraud."
“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” said U. S. Postal Inspection Service Inspector in Charge Adrian Gonzalez. “This investigation was an excellent example of a partnership between law enforcement agencies working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth which resulted in bringing these individuals to justice.”
Upon conviction, the defendants face up to life in federal prison for the RICO conspiracy charge; up to 20 years in federal prison for conspiracy to commit mail or wire fraud charge; and, a mandatory two years in federal prison for each aggravated identity theft charge.
Yesterday, authorities arrested Scott in New Orleans. Scott remains in federal custody pending transfer to the Western District of Texas. Burgin remains a fugitive and should be considered armed and dangerous. Crime Stoppers of Houston is offering up to $5,000 for information leading to the arrest of Burgin. If you have information about him or his whereabouts, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI San Antonio Field Office at 210-225-6741. Tips may also be submitted to the FBI online at https://tips.fbi.gov/. Onyeri has remained in custody since his arrest on May 18, 2016, on unrelated state charges.
“In coordination with federal authorities, and as a result of the overlapping issues presented in these prosecutions, Dayna Blazey, a Travis County Assistant District Attorney, has been cross-designated as a Special Assistant United States Attorney in order to assist with the federal prosecution of this important case. This office will continue to work with federal authorities until all prosecutions are concluded,” stated Travis County District Attorney Rosemary Lehmberg.
This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County Criminal District Attorney’s Office. The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation. Assistant United States Attorney Gregg N. Sofer and Special Assistant United States Attorney Dayna Blazey are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Falls Church Man Sentenced for Smuggling Fake Apple and Samsung ProductsRead the Press Release
ALEXANDRIA, Va. – Bao Doan, 32, Falls Church, was sentenced today to one year and one day in prison for conspiring to traffic in counterfeit Apple and Samsung products and smuggling. Doan was also ordered to forfeit over $115,000 in proceeds and to pay Apple and Samsung over $20,000 in restitution.
Doan was found guilty by a federal jury on June 16, after a three-day trial. According to evidence presented at trial and sentencing, Doan operated the conspiracy from his store, called iFaifo, in Falls Church. Over the course of approximately two years, Doan received hundreds of shipments containing counterfeit Apple and Samsung products from co-conspirators in China and Hong Kong, and then distributed these items wholesale to stores in the area. Since October 2014, Doan received several warnings to cease and desist from both U.S. Customs and Border Protection and representatives from Apple and Samsung. Rather than heed these warnings, Doan developed new ways to evade customs, such as by having counterfeit goods sent to his home address under his mother’s name.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of the Department of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section of the Department of Justice prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-56.
El Paso, Texas, Man Pleads Guilty to Federal Drug Trafficking Charge Arising Out of 41 Pound Cocaine Seizure in New MexicoRead the Press Release
ALBUQUERQUE – Gerry Billy Olivas, 39, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Olivas was arrested on Aug. 3, 2016, on a criminal complaint alleging that he possessed approximately 18.8 kilograms (41.44 pounds) of cocaine in Otero County, N.M. According to the complaint, Olivas was arrested on Aug. 3, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint south of Alamogordo, N.M., allegedly seized approximately 16.2 kilograms (35.71 pounds) of cocaine from Olivas’ vehicle. The agents also seized approximately 2.6 kilograms (5.73 pounds) of cocaine from a storage unit located in El Paso that was allegedly owned by Olivas.
During today’s proceedings, Olivas pled guilty to a felony information charging him with possession of cocaine with intent to distribute. In entering the guilty, Olivas admitted that on Aug. 3, 2016, he transported approximately 16.2 kilograms of cocaine with the intention of delivering the cocaine to another person. Olivas further admitted that he also possessed 2.6 kilograms of cocaine in a storage unit which he intended to deliver to another person.
At sentencing, Olivas faces a maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Alamogordo station of the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.