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Friday 29 July 2016
Three Miami Residents Sentenced in Largest Medicare Fraud Scheme Loss in 2015Read the Press Release
Three Miami residents were sentenced for their role in the largest Medicare fraud scheme loss prosecuted in the Southern District of Florida in 2015.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, made the announcement.
Jorge Lorenzo, 36, Yahima Pardo, 33 and Roberto De Jesus Alonso, 48, all of Miami, Florida were sentenced by U.S. District Judge William Dimitrouleas to 188 months, 41 months, and 37 months in prison, respectively. The defendants were also ordered to pay $40,388,943.00 in restitution to the Medicare program. In addition, forfeiture money judgments were entered against each defendant and the government has seized assets and cash in excess of $2 million. On May 10, 2016, Lorenzo and Pardo pled guilty to conspiracy to commit health care and wire fraud, and Alonso pled guilty to conspiracy to commit money laundering.
According to the court record Lorenzo, Pardo, and De Jesus Alonso participated in massive health care fraud, money laundering and kickback schemes, that over the course of approximately four years, resulted in more than $40 million in losses to the Medicare program. During the course of the criminal conduct, Lorenzo owned and/or controlled eight home health agencies across Miami-Dade County that collectively received more than $40 million in fraudulent claim payments from Medicare. Lorenzo installed shell owners at his home health agencies whose primary role was to authorize millions of dollars in Medicare claim payments through corporate checks made out to fictitious companies staffed by other co-conspirators. The co-conspirators then laundered the fraudulently obtained money to Lorenzo. More than $40 million in Medicare payments were made in response to fraudulent claims for services that were not medically necessary, never rendered and in some instances were linked to prescriptions that Lorenzo counterfeited. Collectively, these eight home health agencies were operational for an average of only 8 months before being closed at Lorenzo’s direction at the first hint of a Medicare fraud investigation. Conspirators Pardo and Alonso, were shell owners of two of the eight home health agencies and laundered millions of dollars in Medicare claim payments to Lorenzo.
Lorenzo also directed co-conspirators to incorporate more than fifteen fictitious shell companies. The shell companies were used to disguise the flow of more than $25 million in fraudulently-obtained Medicare proceeds for Lorenzo’s personal benefit, including the purchase of real estate, luxury vehicles, artwork and jewelry. Coconspirator Alonso incorporated at least two of the fictitious companies to launder proceeds which were intended to benefit elderly, blind and disabled patients.
An additional co-conspirator, Sonmy Rodriguez, 45, of Miami, Florida, was sentenced on July 27, 2016 to 22 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant United States Attorneys Kevin J. Larsen and Evelyn B. Sheehan.
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.
Three Men Collectively Sentenced to 180 Months for Stealing Multiple Rifles from Pawn ShopRead the Press Release
Memphis, TN – Three men responsible for stealing eight rifles from a West Tennessee pawn shop have been collectively sentenced to 180 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The three defendants include:
• Dameion Cain, 36, of Memphis, Tennessee
• George McGhee, 25, of Memphis, Tennessee
• Denzel Jones, 21, of Memphis, Tennessee
According to information presented in court, in July 2014, the three defendants rode from Memphis to Mr. Cash Pawn Shop in Oakland, Tennessee. Upon arrival, the defendants broke into the establishment and stole eight .22 caliber rifles.
In August 2014, law enforcement officials were able to identify the three defendants as the culprits responsible for burglarizing the establishment.
In addition to participating in the aforementioned burglary, officials were also able to identify Cain as the person who unlawfully took a 5.56 caliber rifle and .223 caliber rifle from Big Daddy’s Pawn on Hickory Hill Road in July 2014.
In February 2015, Cain pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of unlawfully taking a 5.56 caliber rifle and a .223 caliber rifle from a business; and one count of unlawfully possessing a 5.56 caliber rifle and a .223 caliber rifle.
In July 2015, Judge Fowlkes sentenced Cain to 120 months in federal prison.
In March 2015, Jones pleaded guilty to unlawfully taking eight .22 caliber rifles from a business.
In August 2015, Jones received time served and three years of supervised release.
In April 2016, McGhee pleaded guilty to unlawfully possessing multiple .22 caliber rifles.
On Friday, July 29, 2016, Judge Fowlkes sentenced McGhee to 60 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Bayonle Osundare prosecuted this case on the government’s behalf.
Tensed Man Pleads Guilty to False Statement in Passport Application and Aggravated Identity TheftRead the Press Release
COEUR D'ALENE – Kevin John Weinreis, 50, of Tensed, Idaho, pleaded guilty yesterday to false statement in a passport application, and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Weinreis was indicted by a federal grand jury in Coeur d’Alene on February 17, 2016.
According to the plea agreement, in August 2002, Weinreis obtained a United States passport using his real photo, but another individual’s name and identifying information. In November 2014, Weinreis renewed this passport, again using the identifying information of another.
In January 2016, a Deputy United States Marshal and a Benewah County Sheriff’s Deputy opened an investigation into the false passport. During an interview occurring on January 8, 2016, Weinreis gave false statements about his identity and was arrested. Officers located and seized a state identification card, social security card, and a U.S. passport, belonging to another individual, on Weinreis. Later, while incarcerated, Weinreis admitted his true identity.
The charge of false statement in a passport application is punishable by up to ten years in prison and a fine up to $250,000. The charge of aggravated identity theft carries a mandatory two-year consecutive sentence to the false statement in a passport application charge, and a fine up to $250,000. Weinreis also faces up to a three-year term of supervised release following his prison sentence.
Sentencing is set for October 11, 2016, at 2:30 p.m. in Coeur d’Alene, before Chief United States Judge B. Lynn Winmill.
The case was investigated by the U.S. Department of State – Diplomatic Security Service, the U.S. Marshals Service, and the Benewah County Sheriff’s Office.
Sulphur man pleads guilty to submitting false information to contractor regulated by nuclear commissionRead the Press Release
LAKE CHARLES, La. – U.S. Attorney Stephanie A. Finley announced that a Sulphur man pleaded guilty Thursday to submitting a false certification to perform inspections on a nuclear module being constructed at a Lake Charles construction yard.
Joseph B. Burnworth, 35, of Sulphur, La., pleaded guilty before U.S. District Judge Patricia Minladi to one count of submission of false information. According to the guilty plea, from April to August of 2013, Burnworth performed quality control visual inspections of welds on a nuclear module being constructed by a company in Lake Charles. The defendant did not possess the certification required to perform such work and instead used a false certificate to secure the job. He performed 150 such inspections, which had to be re-inspected by a properly certified inspector. Additionally, Burnworth assisted two other individuals with obtaining and presenting false certifications to gain similar employment.
Burnworth faces up to two years in prison, one year of supervised release and a $5,000 fine. A sentencing date of November 3, 2016 was set.
The U.S. Nuclear Regulatory Commission conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and Dominic Rossetti are prosecuting the case.
Statement by U.S. Attorney General Loretta E. Lynch on the Departure of John Walsh from the U.S. Attorney's Office for the District of ColoradoRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney John Walsh of the District of Colorado, effective Aug. 10, 2016:
“U.S. Attorney John Walsh has served the people of the District of Colorado and the entire nation with extraordinary distinction,” said Attorney General Lynch. “For the past six years, John has protected our civil liberties, defended our national security and aggressively and successfully prosecuted organized crime, drug cartels and gang violence. He played a key leadership role on the team that won a landmark $7 billion settlement against Citibank, securing millions for defrauded consumers in the largest settlement in the history of the Colorado U.S. Attorney’s office and one of the largest settlements in the Justice Department’s history. He served as a co-chair of the department’s Residential Mortgage-Backed Securities Working Group, where he led efforts to root out fraud and abuse and hold institutions accountable for the kinds of misleading lending practices that helped cause the 2008 financial crisis. And he has been an outstanding leader of the Attorney General’s Advisory Committee – lending valuable insight and advice to the Justice Department as a whole. The people of Colorado, and the country, are safer thanks to John’s keen judgment, deep empathy and unwavering fidelity to justice. I want to thank John for his exemplary service and I look forward to all that he will accomplish in the years to come.”
Statement by Attorney General Loretta E. Lynch on the Departure of John Walsh from the U.S. Attorney’s Office for the District of ColoradoRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney John Walsh of the District of Colorado, effective Aug. 10, 2016:
“U.S. Attorney John Walsh has served the people of the District of Colorado and the entire nation with extraordinary distinction,” said Attorney General Lynch. “For the past six years, John has protected our civil liberties, defended our national security and aggressively and successfully prosecuted organized crime, drug cartels and gang violence. He played a key leadership role on the team that won a landmark $7 billion settlement against Citibank, securing millions for defrauded consumers in the largest settlement in the history of the Colorado U.S. Attorney’s office and one of the largest settlements in the Justice Department’s history. He served as a co-chair of the department’s Residential Mortgage-Backed Securities Working Group, where he led efforts to root out fraud and abuse and hold institutions accountable for the kinds of misleading lending practices that helped cause the 2008 financial crisis. And he has been an outstanding leader of the Attorney General’s Advisory Committee – lending valuable insight and advice to the Justice Department as a whole. The people of Colorado, and the country, are safer thanks to John’s keen judgment, deep empathy and unwavering fidelity to justice. I want to thank John for his exemplary service and I look forward to all that he will accomplish in the years to come.”
Skagway Man Sentenced to 12 Months and One Day in Prison for Failure to Pay TaxesRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that DANIEL HENRY, 61, of Skagway, was sentenced by Chief U.S. District Judge Timothy M. Burgess on Monday, August 1, 2016, to serve 12 months and one day in prison for his convictions on four counts of willful failure to file income tax returns, Judge Burgess also ordered HENRY to pay $600,064 in restitution.
HENRY is the owner and operator of the Skagway Fish Company, a restaurant in Skagway, Alaska, HENRY is also an elected member of the Municipal Assembly in Skagway. For the years 2004-2012, HENRY did not file a federal income tax return. The amount of accumulated taxes Henry would have had to pay during that time period was $600,064.
In his comments prior to imposing the sentence, Judge Burgess described this as a serious offense given the amount of money involved and the time period that HENRY did not file income tax returns.
This matter was prosecuted by Assistant United States Attorney Jack Schmidt out of the U.S. Attorney's Office in Juneau, Alaska.
“The vast majority of citizens of our great country file a timely and accurate tax return. When someone does not, they not only cheat themselves and their government, but all honest taxpayers. Failing to file and pay a just tax shifts the burden to the rest of us by robbing us all of the funds needed for essential services, infrastructure, and the defense of our homeland. IRS CI and the Department of Justice are committed to fighting for the honest taxpayers by prosecuting tax cheats, thus maintaining a level playing field,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation.
U.S. Attorney Loeffler commends the Internal Revenue Service Criminal Investigations, for the successful investigation and prosecution of this case.
Rosebud Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Abigail Marie Garneaux, a/k/a Abigail Marie Garcia, age 27, was indicted on July 19, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 28, 2016, Garneaux forcibly assaulted, resisted, opposed, impeded, intimidated, or interfered with an officer from the Rosebud Sioux Tribe, while said officer was engaged in his official duties. The offense included bodily injury and use of a pepper spray on the officer.
The charge is merely an accusation and Garneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Garneaux was released on bond pending trial. A trial date has not been set.
Rome Man Indicted for Unlawful Possession of a FirearmRead the Press Release
SYRACUSE, NEW YORK – Michael Dyer, age 32, of Rome, New York, was arraigned today on a charge of being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Dyer is charged with being a felon in possession of a 12 gauge shotgun. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Dyer faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Dyer was arraigned today in Syracuse, before United States Magistrate Judge Andrew T. Baxter, and detained pending a trial scheduled for September 26, 2016 before Chief United States District Court Judge Glenn T. Suddaby.
This case is being investigated by the Oneida County Drug Enforcement Task Force and the ATF, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on July 25, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Laun McCloskey, age 22, was sentenced to 24 months of imprisonment, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McCloskey was charged on August 18, 2015, and pleaded guilty on April 22, 2016. The charge relates to McCloskey leaving Community Alternatives of the Black Hills, where he was serving part of a federal sentence, without permission and not returning.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Rancho Cordova Man Sentenced for Passport FraudRead the Press Release
SACRAMENTO, Calif. — Satnam Singh, 56, of Rancho Cordova, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six months in prison, to be followed by three years of supervised release, and a $2,000 fine for making a false statement in an application for a United States passport, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh immigrated to the United States from India in the 1980s and ultimately naturalized as a United States citizen in that identity in 1996. Meanwhile, in 1993, Singh filed a fraudulent application for asylum in the entirely fake identity of “Rupinder Singh,” and in 2012, he naturalized in that second, fake identity. He successfully applied for a U.S. passport for the false identity and traveled internationally using the Rupinder Singh passport at least twice in 2013. In his plea agreement, Singh admitted that he created the Rupinder Singh identity in order to avoid child support obligations.
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service (DSS). Assistant U.S. Attorney Nirav Desai prosecuted the case.
“DSS will continue to aggressively protect our borders by safeguarding the integrity of our travel documents,” said David Zebley, Special Agent In-Charge of U.S. State Department’s Diplomatic Security Service, San Francisco Field Office. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office and other law enforcement agencies around the world to investigative allegations of passport and visa fraud and bring those who committed these crimes to justice.”
At today’s sentencing hearing, Judge Burrell said that this was a serious crime and the sentence was needed to promote respect for the law and provide a deterrent. Judge Burrell ordered Singh to surrender to serve his sentence on October 14, 2016.
Quincy Man Pleads Guilty to Defrauding Charities and Law FirmsRead the Press Release
BOSTON – A Quincy man pleaded guilty today in U.S. District Court in Boston to using counterfeit cashier’s checks to defraud victims, including charities and law firms, of at least $1 million.
Manuel Ponce Vazquez, 59, pleaded guilty to an Information charging him with one count of mail fraud. Ponce Vazquez was charged and arrested in April 2016. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 4, 2016.
Beginning around August 2013, Ponce Vazquez and his co-conspirators defrauded law firms and other victims by sending them counterfeit cashier’s checks, then convincing them to forward a portion of the checks’ supposed value to bank accounts Ponce Vazquez opened, generally using an alias. Once the checks were discovered to be fraudulent, the victims’ bank accounts were debited, and the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to Ponce Vazquez.
On several occasions, Ponce Vazquez and his co-conspirators targeted charities and other non-profits. Posing as a philanthropist, a conspirator would tell a charity that he wished to make a large donation of a specified amount. Soon after, the charity would receive a cashier’s check, ostensibly from the supposed donor, but in excess of the expected amount. The conspirator would explain that the excess money had been sent by mistake and ask for it to be returned, claiming in several instances that it was needed urgently to help a child suffering from an acute illness who required surgery within the week. Only after the charity had sent Ponce Vazquez thousands of dollars would it learn that the cashier’s check was a fake.
More frequently, the targets of Ponce Vazquez’s scam were law firms who believed they were being hired to help collect a debt. Before the firms took any action to collect the supposed debt, they received counterfeit cashier’s checks, ostensibly from the debtors, fully repaying the debt. At the direction of one of Ponce Vazquez’s co-conspirators, the firms forwarded the majority of the checks’ purported value to a bank account that Ponce Vazquez controlled, unwittingly paying Ponce Vazquez using the firms’ own money.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by Braintree Police Department and the Norfolk District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Portland Man Found Guilty of Committing Two Armed Bank RobberiesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Neil West, Sr., 65, was found guilty yesterday in U.S. District Court of armed bank robbery and conspiracy to commit bank robbery, following a jury trial. The charges arose from the September 4, 2015 robbery of the University Credit Union in Portland and the September 12, 2015 robbery of TD Bank in Lewiston. West was found not guilty of robbing or conspiring to rob Norway Savings Bank on August 23, 2015.
According to evidence at trial and court records, co-conspirators Joseph Richards and Crystal Default robbed the two financial institutions and West was their getaway driver. The TD Bank robbery resulted in a high-speed chase which terminated in Saco and resulted in the arrests of West and Richards.
At the time of both robberies, West was on federal supervised release stemming from a June 2013 conviction for Accessory After the Fact (Bank Robbery) for which he received a 41-month prison sentence.
West faces up to 25 years in prison and a $250,000 fine on the robbery charges and up to five years in prison and a $250,000 fine on the conspiracy charges. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
On January 20, 2016, Richards and Default pleaded guilty to armed bank robbery and conspiracy to commit bank robbery and await sentencing.
The joint investigation was conducted by the Franklin (New Hampshire), Manchester (New Hampshire), Freeport, Portland, Lewiston, Old Orchard Beach and Saco (Maine) Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments.
Plattsmouth Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that on July 26, 2016, Jose Jaime Hernandez Badillo, 27, of Plattsmouth, was sentenced to six and one-half years (78 months) in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing cocaine between November of 2013 and September 4, 2014. Following the prison term, Lewis will serve five years on supervised release.
Information provided to law enforcement indicated that Hernandez Badillo was responsible for the distribution of at least 5 kilograms (11 pounds) of cocaine. On September 3, 2014 Lincoln/Lancaster County Drug Task Force officers were told by an informant that a Lincoln man would be returning from a trip to Omaha to obtain cocaine. The man was stopped when he returned to Lincoln, and during a search of his vehicle, officers found 478 grams (approximately 17 ounces) of cocaine. An additional 1 ½ ounces were found during a search of his Lincoln residence. A second Lincoln man was contacted by officers at his apartment on September 5, 2014 which resulted in the finding of an additional 2/3 ounce of cocaine. All of this cocaine was believed to have been obtained from Hernandez Badillo.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Pharmacist Pleads Guilty to Distributing and Possessing OxycodoneRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of distribution of, and possession with intent to distribute, oxycodone, United States Attorney David J. Hickton announced today.
George Norkus, 68, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Norkus was a pharmacist at all times relevant to the charged offense. From on or about Oct. 1, 2015, to on or about Feb. 16, 2016, Norkus knowingly, intentionally, and unlawfully distributed, and possessed with intent to distribute, a quantity of oxycodone, a Schedule II controlled substance. In addition, Norkus, unlawfully, knowingly, and intentionally omitted material information from reports, records, and other documents required to be made, kept, or filed under Title 21 of the United States Code.
Judge Schwab scheduled sentencing for Dec. 1, 2016 at 11 a.m. The law provides for a total sentence of not more than 24 years in prison, a fine of $1,250,000, a term of supervised release of at least three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of George Norkus.
Peekskill Man Sentenced to 15½ Years in Prison for Heroin Trafficking and Distributing Heroin and Fentanyl That Resulted in DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LAKUAN RHYNE was sentenced yesterday to 186 months in prison for conspiring to distribute more than a kilogram of heroin in and around Westchester County during 2014, and distributing the heroin and fentanyl that resulted in the overdose death of an individual. RHYNE pled guilty to a felony Information in White Plains federal court on April 21, 2016, before U.S. District Judge Nelson S. Román, who imposed sentence.
U.S. Attorney Bharara stated: “Overdose deaths from opioid use have taken their toll in cities, small towns, and rural America. The fentanyl-laced heroin sold by Lakuan Rhyne resulted in one of those tragic deaths, but Rhyne continued peddling this poison even after that. For his callous crime, he has received an appropriately heavy sentence.”
According to the Information, statements made in open court, and other documents in the public record:
LAKUAN RHYNE, a/k/a “Rico,” was the central participant in a drug trafficking ring based in Westchester County, New York. From early 2014 through the fall of 2014, RHYNE and his associates conspired to distribute significant quantities of heroin, as well as crack and powder cocaine, throughout Westchester County. RHYNE and his associates sold their drugs out of cars, residences, and on the streets. Some of the heroin distributed by RHYNE was laced with fentanyl, a synthetic opioid that is significantly stronger than both ordinary heroin and morphine. Between February and July 2014, confidential informants acting at the direction of the FBI purchased over 100 grams of heroin from RHYNE during the course of approximately 20 controlled transactions. In total, during the course of the conspiracy, RHYNE was responsible for distributing over a kilogram of heroin.
On the evening of January 26, 2014, in the parking lot of a restaurant in Peekskill, New York, RHYNE supplied a mixture containing heroin and fentanyl to an associate for the purpose of selling that mixture to a customer. That customer was Thomas Coogan, a 23-year-old from Buchanan, New York. Later that night, Coogan used the fentanyl-laced heroin supplied by RHYNE, and died as a result. Following Coogan’s death, of which RHYNE was aware, RHYNE continued to sell heroin.
* * *
In addition to the prison sentence, Judge Román ordered RHYNE to forfeit $15,000, to pay $17,676.88 in restitution to the family of Thomas Coogan, and to pay a $100 special assessment fee. RHYNE also was sentenced to five years of supervised release.
Mr. Bharara praised the outstanding work of the FBI, the Westchester County Northern Narcotics Initiative, which includes the Westchester County Department of Public Safety and the police departments of Peekskill, Croton-on-Hudson, Buchanan, Bedford, Yorktown, Mount Kisco, and Ossining, as well as the FBI Violent Crimes Task Force.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Michael Gerber are in charge of the prosecution.
Participant in Prison Tax Fraud Ring Sentenced to 21 Months in PrisonRead the Press Release
SACRAMENTO, Calif. — Judy Ruth Mullin, 27, of Nevada City, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 months in prison and ordered to pay $219,984 in restitution for her role in a conspiracy to defraud the United States with false claims for federal tax refunds, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Mullin and six co-defendants operated a tax fraud scheme out of the California Correctional Center in Susanville. Four co‑defendants incarcerated at the correctional center obtained personal identification information of other inmates. This information was then provided to Mullin and other co‑defendants located outside the prison, who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds that they knew to be false and to which the inmates were not entitled. Mullin opened a bank account in which to deposit the fraudulently obtained refunds and transferred the wrongfully obtained refunds to the prison accounts of the incarcerated co-defendants. Mullin also personally received money in return for her participation in the scheme.
In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
“Ms. Mullin and her co-defendants attempted to steal hundreds of thousands of dollars from the government by filing income tax returns claiming refunds to which the inmates were not entitled,” said Special Agent in Charge Michael T. Batdorf, IRS Criminal Investigation. “Ms. Mullin then transferred the false refunds to the prison accounts of the incarcerated co-defendants. The object of these schemes is to defraud the government and the American taxpaying public. IRS-CI will continue to identify and investigate those involved in these types of schemes.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
On July 8, 2015, Edwin Ludwig the IV was sentenced to seven years in prison for his role in the scheme. Two other co-defendants have pleaded guilty and are set for sentencing in August 2016. The charges against the remaining three co-defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
New York man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyler M. Purvis-Mitchell, 22, of Albany, New York, pled guilty to unlawfully possessing a firearm in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Purvis-Mitchell pled guilty to one count of “Conspiracy to Provide a False Statement During the Purchase of a Firearm.” He admitted to selecting a firearm from Cashland II Pawn Shop and coordinating to have another individual purchase the firearm for him. That individual falsely represented that she was the actual buyer of the firearm and used money from Purvis-Mitchell to buy the 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 investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Doctor Convicted of Multimillion-Dollar Health Care FraudRead the Press Release
A New York surgeon who practiced at hospitals in Brooklyn and Long Island, New York, was convicted last night for submitting millions of dollars in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Division and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) New York Regional Office made the announcement.
Syed Imran Ahmed, 51, of Long Island, New York, was convicted of one count of health care fraud, three counts of making false statements related to health care matters and two counts of money laundering.
According to evidence presented at trial, Ahmed submitted millions of dollars in false claims to the Medicare program for incision-and-drainage and wound debridement surgeries that he did not perform. Trial evidence showed that many of the claims also falsely stated that the surgeries were performed in an operating room, even though Ahmed never performed the surgeries. The evidence introduced at trial showed Ahmed submitted over $25 million in false claims to the Medicare program for surgeries he never performed and he received over $3 million from Medicare as payment for the false claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. Fraud Section Trial Attorneys Turner Buford and Debra Jaroslawicz and Senior Litigation Counsel Patricia Notopoulos of the Eastern District of New York are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New York Doctor Convicted of Multi-Million Health Care FraudRead the Press Release
BROOKLYN, NY – Late yesterday, a New York surgeon who practiced at hospitals in Brooklyn and Long Island was convicted for submitting millions of dollars in false and fraudulent claims to Medicare after a three-week jury trial.
The conviction was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Division and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services - Office of Inspector General (“HHS-OIG”), New York Regional Office, made the announcement.
Syed Imran Ahmed, 51, of Long Island, was convicted after trial of one count of health care fraud, three counts of making false statements related to Medicare claims and two counts of money laundering.
According to evidence presented at trial, Dr. Ahmed, a surgeon, submitted millions of dollars in false claims to the Medicare program for incision-and-drainage and wound debridement surgeries that he did not perform. Many of the claims also falsely stated that the surgeries were performed in an operating room, even though Dr. Ahmed never performed the surgeries in an operating room or anywhere else. The evidence introduced at trial showed Dr. Ahmed submitted over $25 million in false claims to the Medicare program for surgeries he never performed. Dr. Ahmed received over $3 million from Medicare as payment for the false claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. Fraud Section Trial Attorneys Turner Buford and Debra Jaroslawicz and Senior Litigation Counsel Patricia Notopoulos of the U.S. Attorney’s Office of the Eastern District of New York are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mexican Nationals Indicted for Cultivating Marijuana in the Sierra National Forest and the Sequoia National ParkRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury in Fresno returned two indictments, charging five Mexican nationals with separate conspiracies to grow marijuana in national forest land, Acting United States Attorney Phillip A. Talbert announced.
In the first indictment, a federal grand jury charged Merced County residents David Villa Corrales, 34; Teodoro Anaya Garcia, 30; and Gerardo Anaya Garcia, 34, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants were linked to the cultivation sites after a six-month investigation into a large‑scale cultivation operation in the Carter Creek and Chowchilla Mountain areas of the Sierra National Forest in Madera and Mariposa Counties. The defendants were supplying material, equipment, and personnel to the grow sites, which consisted of approximately 10,000 plants. The marijuana cultivation operation caused extensive damage to the land and natural resources.
This case is the product of an investigation by the United States Forest Service, the Bureau of Land Management, the California Highway Patrol, the California Department of Fish and Wildlife, the California Department of Justice’s CAMP, the California Air National Guard, the Mariposa County Sheriff’s Department, the Madera County Sheriff’s Department, the Merced County Sheriff’s Department, and the Merced County Narcotics Task Force.
In the second indictment, a federal grand jury charged Cutler residents Domingo Aquino Altamirano, 27, and Isis Ali Maldonado-Salinas, 23, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants participate in growing over 1,700 marijuana plants within Sequoia National Park on the eastern slopes of Shepherd Peak. They were arrested on Sunday July 17, 2016. This case is the product of an investigation by the Sequoia National Park.
Assistant United States Attorneys Kevin P. Rooney and Daniel J. Griffin are prosecuting the cases.
If convicted of the most serious drug offenses, David Corrales and Teodoro Anaya Garcia face a mandatory minimum statutory penalty of five years, a maximum of 40 years in prison and a $5 million fine, and Gerardo Anaya Garcia faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of the drug offenses, Altamirano and Maldonado-Salinas face a maximum statutory penalty of 20 years in prison and a $1 million fine. The environmental crime carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Meth Cook Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Ronald Shane Chestang, 31, of Axis, Alabama, was sentenced in federal court this morning for his participation in two conspiracies—to manufacture methamphetamine, and to purchase pseudoephedrine, a List I chemical, to be used in methamphetamine manufacturing. Chestang pled guilty to the two charges in 2013.
United States District Court Judge Kristi K. Dubose imposed a sentence of time served, which amounted to approximately 64 months that Chestang has been in custody. Chestang was also credited with time served in related state charges from Texas. The judge ordered that Chestang will commence a six-year term of supervised release immediately, which will include 90 days inpatient drug treatment. As conditions of his supervision, Chestang will be subject to testing and treatment for drug abuse. Judge Dubose also ordered that Chestang pay $200 in special mandatory assessments.
The case was investigated by the Drug Enforcement Administration and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Massachusetts Resident Admits to Enticement of a Minor for Illicit Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – Christopher Chassey, 49, of Plymouth, Mass., pleaded guilty in federal court in Providence, R.I., today to one count of enticement to travel in interstate to engage in illicit sexual activity. Appearing before U.S. District Court Chief Judge William E. Smith, Chassey admitted to the court that he sent hundreds of emails and mailed cash to a person he believed to be a 14 year-old male in Rhode Island in an effort to entice him to travel to Massachusetts to engage in illicit sexual activity.
Chassey’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents, in April 2015, a member of the Rhode Island Internet Crimes Against Children (ICAC) Task Force observed an online advertisement from a person seeking a young male to engage with in illicit sexual activity in exchange for a cash payment. An ICAC law enforcement agent posing as a 14 year-old male from Rhode Island answered the ad, and, over the next eight months, engaged in an exchange of hundreds of emails, many of which were sexually explicit.
According to court documents, on at least three occasions Chassey mailed cash to the supposed 14 year-old. The third mailing, $100 in cash which arrived on December 4, 2015, was to be used to purchase a bus ticket to Plymouth, Mass., so the two could meet. Chassey was arrested on December 17, 2015, charged in a federal criminal complaint with enticement to travel in interstate to engage in illicit sexual activity.
Chassey is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit, along with detectives from the Coventry, Warwick, North Smithfield, Cranston, East Providence, North Kingstown, Portsmouth and Woonsocket Police Departments, and agents from the Federal Bureau of Investigation, Homeland Security Investigations and United States Postal Inspection Services.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Majority Owner of NECC and Husband Plead Guilty to Illegal Cash Withdrawals Following OutbreakRead the Press Release
BOSTON – The majority owner of New England Compounding Center (NECC) and her husband pleaded guilty today in connection with illegally withdrawing cash following the fungal meningitis outbreak.
Carla Conigliaro, 53, the majority owner of NECC and her husband, Douglas Conigliaro, 55, both of Dedham, Mass., each pleaded guilty to withdrawing cash from their bank accounts in a manner intended to defeat financial reporting requirements. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 1, 2016.
In September 2012, a nationwide outbreak of fungal meningitis was traced back to contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, a compounding pharmacy located in Framingham, Mass. Beginning on Oct. 31, 2012, the day a search warrant was executed at NECC, Carla and Douglas Conigliaro began withdrawing unusual sums of cash from their personal bank accounts. The cash transactions were structured by the Conigliaros in a manner so as to evade the $10,000 reporting requirement for the filing of a currency transaction report. The Conigliaros admitted to withdrawing $124,000 in cash in this manner.
In December 2014, following a two-year investigation, the Conigliaros and 12 other employees and associates of NECC were charged in a federal indictment. The indictment did not charge the Conigliaros with having an active role in the operations or management of NECC, but did charge them with transferring assets following the fungal meningitis outbreak.
NECC’s owner and head pharmacist Barry J. Cadden and supervisory pharmacist Glenn A. Chin, were charged with 25 racketeering acts of second-degree murder in seven states. Ten other defendants, including six pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, and another owner, were charged with additional crimes including racketeering, mail fraud, conspiracy, and violations of the Food, Drug and Cosmetic Act. Cadden and Chin are scheduled to stand trial on Jan. 5, 2017.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Special agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jeffrey Hughtes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit and John W.M. Claud of the Justice Department’s Consumer Protection Branch.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mail Theft and Bank Fraud Scheme Results in Federal Prison SentenceRead the Press Release
MEDFORD, Ore. – Christopher Alan Page, 32, of Talent, Oregon was sentenced Thursday to 36 months in federal prison by U.S. District Judge Michael J. McShane after his convictions for bank fraud, aggravated identity theft and unlawful possession of ammunition by a felon. The sentence included a mandatory consecutive term of two years’ imprisonment required by federal law because a victim’s identification was possessed or used in committing bank fraud. Page was also ordered to pay over $50,000 in restitution.
In February 2015, Page stole mail from more than 100 mailboxes in rural Josephine County, Oregon. Page was identified when a citizen confronted Page while he was in the process of stealing mail and took video of the confrontation with his cell phone. When Page was arrested, the police seized multiple credit cards and checks in the names of numerous mail theft victims. Authorities also seized large quantities of stolen mail, fraudulent debit/credit cards, stolen identity profiles, a credit card embossing machine, a credit card reader and several boxes of ammunition. Authorities also found a victim profile list, containing personal identifying information, that Page had created
The investigation determined that Page attempted to steal more than $275,000 in 54 separate fraudulent credit card transactions made using his Square, Inc. account, although most of those transactions were identified as fraudulent before Page was able to obtain the funds. Page has prior criminal convictions for burglaries, unauthorized use of a vehicle, recklessly endangering another person, possession of heroin and attempting to elude police on several occasions.
This case was investigated by the Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Byron Chatfield.
Lexington Man and His Medical Device Company Sued for Grant FraudRead the Press Release
LEXINGTON, Ky. – The United States Government has sued a Lexington man, and the Lexington-based medical device company he owns, for violations of the False Claims Act, a federal law that prohibits people from submitting false or fraudulent claims for payment to the federal government.
On Tuesday, July 26, 2016, the United States filed a civil suit against Jerome Hahn and Telehealth Holdings, LLC, alleging that they defrauded the government by submitting false claims in connection with federal grants. According to the Complaint, filed in U.S. District Court, Telehealth received three grants from the federal government, worth over $600,000, to support the development of a sleep apnea monitoring system and the development of electronic pillboxes customized for specific patient populations, including cancer patients.
The Complaint alleges that Hahn and Telehealth committed fraud in connection with these grants, including by making false statements in the grant applications about Telehealth’s personnel, facilities, and accounting systems.
The Complaint also alleges that Hahn and Telehealth falsely stated in grant reports that they had spent the grant funds for purposes of the grants and in compliance with grant regulations. Instead, Hahn and Telehealth allegedly spent the grant money on personal expenses, such as meals at restaurants, a trip to Keeneland Racecourse, and interest payments on personal credit cards. Hahn and Telehealth also allegedly used grant money on business expenses not allowed under the grant regulations, including costs associated with marketing and promoting their products. Additionally, Hahn and Telehealth allegedly spent over $100,000 in grant funds purchasing foreign goods and services, even though grant regulations require grant recipients to use American goods and workers.
According to the Complaint, Telehealth also falsified entries in its accounting ledgers and created false invoices in order to conceal from the government that the federal grant funds had been misspent.
The Government contends that the false statements made in the grant applications, the grant reports, and the accounting ledgers constitute violations of the False Claims Act. If the defendants are found liable at trial, they would be responsible for paying three times the amount of loss proven at trial, plus additional penalties for each false claim.
In a related criminal case, Mr. Hahn pleaded guilty to conspiring to defraud the United States by making false claims in connection with grants that were awarded to Telehealth. On June 13, 2016, U.S. District Judge Danny C. Reeves sentenced Hahn to four months in prison and an additional six months on home detention. Hahn was also ordered to pay $222,037 in restitution to the National Institutes of Health.
The investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky; the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Kate K. Smith represented the United States in the related criminal case. Assistant United States Attorneys Christine Corndorf and Carrie B. Pond are litigating the False Claims Act case on behalf of the Government.
Lexington Man and His Medical Device Company Sued for Grant FraudRead the Press Release
LEXINGTON, Ky. – The United States Government has sued a Lexington man, and the Lexington-based medical device company he owns, for violations of the False Claims Act, a federal law that prohibits people from submitting false or fraudulent claims for payment to the federal government.
On Tuesday, July 26, 2016, the United States filed a civil suit against Jerome Hahn and Telehealth Holdings, LLC, alleging that they defrauded the government by submitting false claims in connection with federal grants. According to the Complaint, filed in U.S. District Court, Telehealth received three grants from the federal government, worth over $600,000, to support the development of a sleep apnea monitoring system and the development of electronic pillboxes customized for specific patient populations, including cancer patients.
The Complaint alleges that Hahn and Telehealth committed fraud in connection with these grants, including by making false statements in the grant applications about Telehealth’s personnel, facilities, and accounting systems.
The Complaint also alleges that Hahn and Telehealth falsely stated in grant reports that they had spent the grant funds for purposes of the grants and in compliance with grant regulations. Instead, Hahn and Telehealth allegedly spent the grant money on personal expenses, such as meals at restaurants, a trip to Keeneland Racecourse, and interest payments on personal credit cards. Hahn and Telehealth also allegedly used grant money on business expenses not allowed under the grant regulations, including costs associated with marketing and promoting their products. Additionally, Hahn and Telehealth allegedly spent over $100,000 in grant funds purchasing foreign goods and services, even though grant regulations require grant recipients to use American goods and workers.
According to the Complaint, Telehealth also falsified entries in its accounting ledgers and created false invoices in order to conceal from the government that the federal grant funds had been misspent.
The Government contends that the false statements made in the grant applications, the grant reports, and the accounting ledgers constitute violations of the False Claims Act. If the defendants are found liable at trial, they would be responsible for paying three times the amount of loss proven at trial, plus additional penalties for each false claim.
In a related criminal case, Mr. Hahn pleaded guilty to conspiring to defraud the United States by making false claims in connection with grants that were awarded to Telehealth. On June 13, 2016, U.S. District Judge Danny C. Reeves sentenced Hahn to four months in prison and an additional six months on home detention. Hahn was also ordered to pay $222,037 in restitution to the National Institutes of Health.
The investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky; the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Kate K. Smith represented the United States in the related criminal case. Assistant United States Attorneys Christine Corndorf and Carrie B. Pond are litigating the False Claims Act case on behalf of the Government.
Lehigh Acres Resident Charged with Firearms Offenses Related to Investigation of Club Blu Mass ShootingRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charging by criminal complaint of Jazmin Challana Barron (33, Lehigh Acres) with making false statements during the purchase of a firearm and making false statements in records kept by a Federal Firearms Licensee (FFL). If convicted on all counts, she faces a maximum penalty of 10 years in federal prison for making the false statement during the purchase of a firearm and 5 years’ imprisonment for making a false statement in records kept by a FFL. Barron made her initial appearance in federal court today and was released on a $25,000 bond.
According to the complaint affidavit, on February 20, 2015, Barron purchased a MasterPiece Arms pistol (Model: MPA57SST; 5.7 caliber; SN: V9101) from Gunsmoke and Lead, a licensed federal firearms dealer, in Lehigh Acres, Florida. Barron completed an ATF Form 4473 as required to purchase the firearm; however, she provided a false address where she had not, and was not, residing at the time of the purchase. The firearm was recovered by the Fort Myers Police Department near the scene of the mass shooting at the Club Blu Bar and Grill on July 25, 2016.
A complaint is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Laurel Man Pleads Guilty to Federal Charges Related to a Bank Fraud Scheme and a Conspiracy to Transport Stolen Vehicles to AfricaRead the Press Release
Baltimore, Maryland – Issah Mohammed, a/k/a Yissa and Ali, age 28, a citizen of Ghana residing in Laurel, Maryland, pleaded guilty today to federal bank fraud and wire fraud conspiracy charges related to a scheme in which Mohammed and his co-conspirators impersonated individual victims to remove funds from the victims’ investment accounts. Mohammed also pleaded guilty to conspiracy to transport stolen motor vehicles in connection with his participation in a conspiracy to transport stolen vehicles to Africa.
The guilty plea 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); U.S. Customs and Border Protection Baltimore Port Director Dianna Bowman; Chief James W. Johnson of the Baltimore County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement from at least January 31, 2013, through May 12, 2014, Mohammed were part of a conspiracy that acquired stolen vehicles, some of which were stolen from other states and transported to Maryland, and then shipped to Africa for sale. Members of the conspiracy in the United States would hire other to steal vehicles – with the keys – so that the vehicles could be more easily sold. Mohammed and other members of the conspiracy: purchased the stolen vehicles from the thieves or an intermediary; arranged to store the vehicles at parking lots and other locations, known as “cooling spots”; loaded the vehicles into a shipping container; and transported the containers to a port, including the Port of Baltimore, for export to destinations including Lagos, Nigeria and Accra, Ghana.
In order to ship vehicles overseas, shipping companies are required to have valid titles for the vehicles. As part of the scheme, Mohammed and other members of conspiracy used fraudulent title information in an effort to conceal that the cars they sought to ship had been stolen. Mohammed and other conspirators: acquired false Vehicle Identification Numbers (VINs) and replaced the true VINs on the stolen vehicles; and registered businesses with the state of Maryland, then used these businesses to create registration paperwork for the vehicles, including false bills of sale utilizing the false VINs. In that manner, the conspirators were able to acquire or forge title(s), registration(s), and proof of insurance for the vehicles to fill out the necessary paperwork in order to be able to ship the cars overseas. The loss for the cars, both recovered and not recovered, was over $200,000.
Further, Mohammed admitted that from March through November 2104, he and his conspirators stole money from the accounts of individual victims. The conspirators obtained the email addresses of victims, then purporting to be the victims, sent emails to investment account managers requesting that funds be wired into a business account controlled by Mohammed or a co-conspirator. They also obtained victims’ account information at various investment account firms and took over the online accounts of the victims. Mohammed and others also created fraudulent checks and cashier’s checks drawn on the victims’ accounts. Conspirators recruited by Mohammed deposited those checks into bank accounts they controlled. Mohammed and others then withdrew or transferred the funds from the business account they maintained to receive the victims’ funds to other accounts controlled by the conspirators before the bank discovered the fraud. The total intended loss was approximately $1,022,183.10. The actual loss, that is funds successfully withdrawn, was $292,463.19.
The proceeds from the bank and wire fraud conspiracy were pooled with the funds used and generated from the purchase and sale of the stolen vehicles.
Mohammed faces a maximum sentence of 30 years in prison for the bank and wire fraud conspiracy, and a maximum of five in prison for conspiracy to transport stolen motor vehicles. U.S. District Judge J. Frederick Motz scheduled sentencing for October 7, 2016 at 2:15 p.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’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, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, U.S. Customs and Border Protection and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Lakeland Man Pleads Guilty to Distributing Fentanyl, Causing Two DeathsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Angelo Graham, Jr., a/k/a “Noony” (34, Lakeland) pleaded guilty yesterday to conspiracy to distribute fentanyl and cocaine, resulting in two deaths. He faces a minimum penalty of 20 years, up to life, in federal prison. A sentencing date has not yet been set.
Fentanyl is a Schedule II controlled substance that is used in the same manner as heroin. Because of its potency, a small amount of fentanyl is potentially lethal.
According to the plea agreement, from at least October 3, 2015, through his arrest on October 28, 2015, Graham distributed fentanyl and cocaine in Lakeland. Beginning on October 3rd, Graham sent messages to “D.G.” about fentanyl that Graham had available to sell. Graham also advised “D.G.” that the fentanyl was too strong to use more than half a baggie at once. Between October 3rd and October 16, 2015, “D.G.” made multiple trips to Graham’s residence.
On the evening of October 16, 2015, the body of “B.S.,” the girlfriend of “D.G.,” was found slumped over a coffee table in her parents’ guest cottage in Lakeland. During a search of the guest cottage, detectives with the Polk County Sheriff’s Office (PCSO) located syringes, spoons with burned residue, and an empty package with drug residue. The empty package was light blue; stamped on the package were the words “Face to Face” and a silhouette of two heads facing each other. Laboratory testing of the residues from the spoons and package revealed the presence of fentanyl. A lethal amount of fentanyl was found in “B.S.’s” body.
On the morning of October 22, 2015, the Lakeland Police Department’s Violent Crimes Unit responded to an apartment in Lakeland, where they found the body of “D.G.” on the kitchen floor. Near the body, detectives located numerous pieces of drug paraphernalia, including spoons with burned residue and an empty package with drug residue resembling the empty package found near the body of “B.S.” Light blue wax paper, with the words “Face to Face,” and a silhouette of two heads facing each other, were also found. Laboratory testing of the spoon and package residues revealed the presence of fentanyl and one of the spoons revealed the presence of cocaine. A lethal amount of fentanyl was found in “D.G.’s” body and evidence revealed that “D.G.” was at Graham’s residence the night before he died.
On October 28, 2015, PCSO detectives executed a search warrant at Graham’s residence. During the search, detectives found eight baggies containing fentanyl. At least one of the baggies resembled the baggies found near the bodies of “B.S.” and “D.G.”
This case was investigated by the Polk County Sheriff’s Office, the Lakeland Police Department, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Kern County Man Arrested for Methamphetamine TraffickingRead the Press Release
BAKERSFIELD, Calif. — A federal grand jury returned a one-count indictment Thursday against Jose Soto, 35, of Lamont, charging him with possession with intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced. Soto was arrested today at his home on those charges.
According to court documents, on May 5, 2016, Soto possessed over 50 grams of actual methamphetamine and over 500 grams of a mixture and substance containing a detectable amount of methamphetamine, which he possessed for sale at his residence in Lamont.
This case was the product of an investigation by the Drug Enforcement Administration and the Kern County Probation Department. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Soto faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jury Convicts Mother, Two Sons in Drug Trafficking Case; Sons Also Convicted of MurderRead 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 a federal jury has convicted James Kendrick, his brother, Pablo "Paul" Plaza, and their mother Janine Plaza-Pierce of conspiracy to possess with intent to distribute and to distribute large quantities of illegal narcotics. In addition, Kendrick was found guilty of the murders of Francisco Santos and Ryan Cooper. Plaza was also found guilty of the murder of Santos. Pierce was acquitted in the murder of Santos.
“Regardless of how violent the criminals - and these defendants were among the worst - federal law provides effective tools by which to remove predators and protect the public,” said U.S. Attorney Hochul. “At the same time, solving crimes in which the victims were dismembered and years had elapsed requires extraordinary professional skill and dedication. The entire community is rightly proud of the work of our federal ATF agents and local police departments, including RPD, and from this Office, Assistant United States Attorneys Everardo Rodriquez and Melissa Marangola.”
When sentenced, defendants Kendrick and Plaza face life in prison, Pierce faces a maximum of 20 years in prison.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that Kendrick and his brother Plaza spearheaded a long term, violent narcotics trafficking ring in the City of Rochester between 1993, through and including March 2011. To protect the conspiracy and its members from other drug dealers and those deemed to be disloyal workers, Kendrick, Plaza and others in the conspiracy resorted to violence including beatings and murder.
Specifically, Francisco Santos, a/k/a “Cisco,” was murdered in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County. Santos was a worker for Kendrick and Plaza and was murdered because the defendants believed he betrayed the organization by stealing drugs, cash and guns. Kendrick and Plaza initially retaliated by conducting a drive by shooting at the residence of Santos’ father, step-mother and sisters, who were four and six years old at the time.
Ryan Cooper, a/k/a “Chewey,” was murdered in late May 1999. Cooper was a cousin of the defendants. Kendrick murdered Cooper because he feared Cooper would go to police about what he knew about the murder of Francisco Santos. Rather than bury the body of Cooper as they buried Santos, Kendrick chose to dismember Cooper’s body and spread the parts around the Rochester area. While none of Cooper’s remains have ever been found, three trained cadaver dogs from the Rhode Island State Police independently alerted to a location behind the athletic field of a school in Rochester next to railroad tracks. Government witnesses testified that this was the same location where parts of Cooper’s body had been disposed.
During the trial, the Government also presented evidence of additional acts of violence including shootings the murder of Jose Troche on January 14, 2010. The Government’s proof established that Kendrick and Plaza planned and executed the murder of Troche because they feared that Troche, also a member of the conspiracy, was planning to cooperate in the prosecution of the defendants. In connection with the Troche murder, Kendrick and Plaza decided that Kendrick would go to a local supermarket and be seen on camera at the time of Troche’s.
ATF Special Agent in Charge Delano A. Reid said, “These violent drug dealers spread fear, intimidation, mayhem, and in the Rochester area for almost two decades, leaving death in their wake. Their conviction for trafficking in narcotics, using firearms, and committing homicide means that they will enjoy lengthy prison sentences in a Federal penitentiary as a just reward for their crimes. We hope that these convictions help to make the community safer and bring some solace to the families of their victims. To those gang members out there who think that crime and violence are the path forward, consider this a warning that we in law enforcement are ready for you, and you may be the next target for investigation and prosecution. We would like to extend our gratitude to the United States Attorney’s Office for their dedication to this investigation and their perseverance during a lengthy trial. I would like to extend a special thanks to our law enforcement partners, and the members of ATF and the Rochester Police Department who serve on our Rochester Violent Crime Task Force, who work hard every day to make Rochester a safer place to live.”
Nine other defendants involved in the drug conspiracy were charged and convicted.
The verdict is based on a joint investigation consisting of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Delano A. Reid, Special Agent in Charge, New York Field Division, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli.
Sentencing will be scheduled at a later date before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
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UPDATE:
Chief U.S. District Judge Frank P. Geraci, Jr. this afternoon granted a request by the attorney for defendant Janine Plaza Pierce to set aside the jury’s guilty verdict on the charge of conspiracy to possess with intent to distribute and to distribute large quantities of illegal narcotics. The judge also set aside the jury’s guilty verdict involving a charge of possession with intent to distribute heroin at 87 Thomas St. in Rochester against Pablo Plaza.
Jefferson County Schools HR Director and Former Hueytown Middle School Principal Indicted on Federal Child Enticement and Child Pornography ChargesRead the Press Release
BIRMINGHAM – Jefferson County Schools’ human resources director and former Hueytown Middle School principal now faces federal charges of enticing a minor and receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger Stanton, Tuscaloosa Police Chief Steven D. Anderson and Hueytown Police Chief Chuck Hagler.
A federal grand jury on Tuesday returned a four-count indictment charging BRETT WILLIAM KIRKHAM, 40, of Tuscaloosa, with child enticement and receipt and possession of child pornography between 2008 and 2016. The indictment was unsealed Thursday. Kirkham is schedule for arraignment in federal court on Aug. 11.
The maximum penalty for child enticement is life imprisonment and a fine of $250,000; the maximum penalty for each count of receiving and possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI, Tuscaloosa Police Department and Hueytown Police Department investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell and John B. Ward are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Jefferson County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
St. Louis, MO – James Bowen, Pevely, MO, pled guilty to charges involving his production, receipt and possession of child pornography between January 1, 2014, and February 29, 2016.
According to court documents, Bowen had illegal sexual contact with a minor under the age of twelve in 2014, and took approximately 30 to 40 photographs of her in various stages of undress. During the investigation of Bowen’s computers, law enforcement found over 5,288 images of child pornography and 810 videos of child pornography. Many of these images and videos of child pornography were of minor children under the age of twelve.
Bowen pled guilty to one felony count each of production, receipt and possession of child pornography before United States District Judge Ronnie L. White, in St. Louis. Sentencing has been set for October 26, 2016.
Production of child pornography carries a penalty range of 15-30 years in prison, receipt of child pornography carries a range of 5-20 years in prison and possession carries a maximum penalty of 20 years in prison. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated the Federal Bureau of Investigation, the St. Louis County Police Internet Crimes Against Children Task Force and the Pevely Police Department. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney's Office.
Holley English Teacher Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Steven Choi, 41, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The receipt of child pornography charge carries a minimum sentence of five years in prison and a maximum of 20 years, while the possession of child pornography charge carries a maximum sentence of 10 years in prison.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the FBI Child Exploitation Task Force identified the defendant accessing child pornography online. A forensic examination of that computer recovered sexually explicit photographs of prepubescent girls. Choi is an English teacher with the Holley Central School District.
The defendant made an initial appearance today before U.S. Magistrate Judge Jonathan Feldman. He is due back in federal court for a status hearing on August 12, 2016 at 10:30 a.m.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, U.S. Immigration and Customs Enforcement-Homeland Security Investigations, and the Greece Police Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Gibsonton Couple Sentenced to More That Five Years on Stolen Identity Refund Fraud ChargesRead the Press Release
Tampa, Florida – United States District Judge Elizabeth A. Kovachevich today sentenced Ynessa Brown and Thelonius Robertson, both of Gibsonton, to 61 months in federal prison for conspiring to commit tax fraud and aggravated identity theft. At sentencing, Robertson and Brown were ordered to make restitution to the IRS in the amount of $673,398. In addition, a forfeiture money judgment in the amount of $767,398 was entered, representing the total proceeds of their fraud conspiracy.
According to court documents, from January 2012 through June 2013, Brown and Robertson possessed and used stolen identities, including those of deceased persons, to electronically file fraudulent tax returns with the IRS through an Internet service provider in Brown’s name. Many of the false tax returns were filed jointly, and in many cases, one or both of the victims were deceased. Items related to these false returns and refunds, including $94,000 in cash, was seized during a search of Brown’s residence in June 2013.
From these fraudulently filed tax returns, Brown and Robertson directed the tax refunds onto unauthorized debit cards, many in other people’s names, and often to H & R Block Emerald cards, which were sent to either their address, the addresses of friends and family, and/or to vacant addresses. Brown and Robertson used these refunds to purchase merchandise or to make cash withdrawals, mostly from Fifth Third bank ATMs.
This case was brought as part of an initiative dedicated to combating the growing problem of identity theft and the fraudulent filing of electronic tax claims. It was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Utz Quality Foods Vendor Pleads Guilty to $1.4 Million False Invoice & Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the owner/operator of a former Utz Quality Foods, Inc. supplier has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.
Jonathan Haas, age 45, of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to wire fraud.
Haas and Kevin Myers, age 38, formerly of Abbottstown, PA, and the former Director of Purchasing for Utz, were charged in June of this year with the one count wire fraud Information. The Information was filed against Myers and Haas pursuant to plea agreements they executed with the government. Myers entered his guilty plea to the wire fraud count before Magistrate Judge Schwab on Tuesday.
Between 2007 and 2014 Haas Packaging & Design supplied Utz with shelving and packaging products. During the guilty plea proceeding Haas admitted he and Myers defrauded Utz between 2010 and 2014 by Myers’ preparation of bogus purchase orders and Haas’ submission of false invoices against the phony purchase orders for packaging product Utz never received. After Myers approved Haas’ false invoices for payment, Haas would kick back a portion of Utz’s payment to Myers.
The Information alleges Haas received approximately $1,474,765 from Utz and from that amount Haas paid Myers approximately $651,000. Haas’ plea agreement requires the court to determine the actual loss amount and the amount of restitution to be paid Utz.
Haas also admitted he and Myers attempted to conceal some of the kickbacks Haas paid Myers as payments for fictional consulting services. To facilitate the ruse Myers opened up a bank account under the name of “Myers Packaging Consulting,” a non-existent, paper entity.
The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 Haas check into a Myers Packaging Consulting bank account in January 2014.
The government is seeking forfeiture of approximately $1.4 million from the defendants as illegal proceeds of the scheme.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former President of Guatemalan Soccer Federation Pleads Guilty to Racketeering and Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Brayan Jiménez, the president of the Guatemalan soccer federation (FENAFUTG) from 2009 to 2015, pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his receipt of bribes in exchange for the awarding of contracts for the media and marketing rights to FIFA World Cup qualifier matches, and for authorizing certain “friendly” matches played by the Guatemalan national soccer team. Jimenez also agreed to forfeit $350,000. At sentencing, Jiménez faces a maximum sentence of 20 years for each count. Today’s plea proceeding took place before United States Magistrate Judge Robert M. Levy.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
According to court filings and facts presented during the plea proceeding, Jiménez negotiated and accepted bribes totaling hundreds of thousands of dollars in exchange for his agreement to exercise his influence as the president of FENAFUTG to award contracts to Media World, a Florida sports marketing company, for the media and marketing rights to the Guatemalan national soccer team’s home World Cup qualifier matches for the 2018 and 2022 editions of the World Cup. Over a period of years, Media World transmitted these bribes from its U.S. bank accounts to the defendant and a co-conspirator, often using intermediaries in the United States and Guatemala.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
BRAYAN JIMÉNEZ
Age: 62
Nationality: GuatemalaE.D.N.Y. Docket No. 15 CR 252 (S-1)
Former Park Tudor coach sentenced in sexual coercion caseRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a former Park Tudor School coach and teacher after his conviction for coercion and enticement of a minor to engage in illegal sexual activity. Kyle M. Cox, 31, Fishers, was sentenced to 168 months (14 years) imprisonment by U.S. District Judge Larry J. McKinney.
"Mr. Cox held a position of trust and authority over our young victim," said Minkler. "He gradually groomed her over time to trust him and then exploited her for his own sexual gratification. Protecting our youth from predators is a priority and a responsibility we hold in high regard. Schools should be places of safety for children where they can grow, learn, and make mistakes without falling prey to teachers or coaches who turn their innocence into illegal sexual opportunity. "
Cox was a teacher of child victim 1 (CV1) beginning in the fall of 2015. The two began talking regularly through text messaging and other social media outlets. Their conversations began innocently enough discussing basketball, classroom subjects, and school. Cox soon gave her a role on the basketball team he coached and soon the messaging became inappropriately sexual in nature.
Cox began conversing with CV1 via texts and Instagram, describing sexually explicit conduct. Cox persuaded CV1 to send him sexually explicit images of herself and he would comment favorably about them. He told CV1 that he masturbated to the images and videos she sent him. He also sent her a picture of his genitalia. Cox continued his illegal communications with CV1 through social media on Snapchat where Cox's user name was "Bigsilkysmooth."
Over the months that Cox enticed and coerced CV1, he devised a plan to bring CV1 to his family’s home in Fishers so that he could have sexual contact with her while his wife and daughters were out of town. The meeting never took place because Cox’s intentions were discovered by CV1’s parents in the days before the planned sexual misconduct.
Once Cox realized that his criminal behavior had come to light, on December 15, 2015, Cox tried to persuade CV1 to lie about their communications so that he could avoid criminal responsibility for his actions. Cox wanted CV1 to falsely claim that she created both sides of the text message conversation, when he knew that was not true. Cox told CV1 we would be in "a lot of trouble" if she told the truth about what had occurred. CV1 responded she could not lie. Cox implored CV1 to make sure that he didn't go to jail.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated "the FBI will continue to partner with other law enforcement agencies to protect children from individuals that prey upon them".
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Cox,” said IMPD Chief Troy Riggs. “This case serves as a wake-up call for all parents to monitor their child’s social media activity to prevent further victimization of our youth. Those that use their position to exploit our children can expect to be vigorously investigated.”
Cox was remanded to the custody of the United States Marshal Service. He will begin serving his sentence at the Bureau of Prisons in the very near future.
This case was investigated by the Marion County Prosecutors Office, Federal Bureau of Investigation and Indianapolis Metropolitan Police Department.
According to Assistant United States Attorneys Steven D. DeBrota and Kristina M. Korobov, Cox must serve fifteen years of supervised release following his term of imprisonment.
Former Kearney Probation Officer Convicted of Civil Rights ViolationsRead the Press Release
United States Attorney Deborah R. Gilg announced that Thomas Peterson, age 57 of Kearney, Nebraska, was convicted by a federal jury of four counts of violating the civil rights of female probationers under his supervision and one count of lying to the FBI when he submitted to an interview about the matter. Peterson is facing up to nine years in prison. The case was heard before Senior United States District Judge Richard Kopf.
Evidence introduced at trial established that Peterson was a state probation officer with the District 9 probation office in Kearney. He supervised a caseload made up of offenders in need of intensive supervision. The jury heard evidence that from approximately 2010 through January of 2014, Mr. Peterson subjected four female probationers to unsolicited and non-consensual sexual contact. The jury also heard from three other women who had been supervised by Mr. Peterson who reported sexually charged advances or comments from Mr. Peterson but which did not progress to the level of sexual contact. The jury found that Peterson had violated the civil rights of the four probationers by intruding into their constitutional rights to bodily integrity. Sentencing is set for October 20, 2016.
This matter was investigated by the Federal Bureau of Investigation.
Former Head of Foundation Sentenced to 20 Months in Prison for Bribing Then-Ambassador and President of United Nations General AssemblyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SHIWEI YAN, a/k/a “Sheri Yan,” the co-founder and former chief executive officer of the Global Sustainability Foundation, was sentenced in Manhattan federal court today to 20 months in prison for paying more than $800,000 in bribes to John W. Ashe (“Ashe”), the late former Permanent Representative of Antigua and Barbuda (“Antigua”) to the United Nations (“UN”) and 68th President of the UN General Assembly. Yan pled guilty in January 2016, and was sentenced today by U.S. District Judge Vernon S. Broderick.
U.S. Attorney Bharara stated: “As she admitted in court at her guilty plea, Shiwei Yan bribed the President of the UN General Assembly with hundreds of thousands of dollars to further private business interests. For her role in corrupting the United Nations, Yan will serve time in a federal prison.”
According to the Complaint, Superseding Information, information presented in connection with sentencing, and other publicly available materials:
Starting in approximately April 2012, YAN, along with co-defendant Heidi Hong Piao, a/k/a “Heidi Park” (“Piao”), agreed to and did arrange for more than $800,000 in bribe payments to Ashe in exchange for official actions by Ashe and one or more other Antiguan officials to benefit several Chinese businessmen. Piao also pled guilty for her participation in the scheme, but has not yet been sentenced.
The initial bribe payment arranged by YAN and Piao was a $300,000 payment on behalf of a Chinese media executive referred to as “CC-1” in the Complaint. In exchange for this payment, Ashe agreed to “start the conversations” with Antiguan officials, including the then-Prime Minister, concerning CC-1’s interests. With YAN’s knowledge, Ashe shared a portion of the bribe payment with one or more Antiguan officials. YAN also requested and received an official appointment from Ashe as an adviser.
In August 2013, YAN and Piao began paying Ashe approximately $20,000 per month, purportedly for his forthcoming service as the “Honorary Chairman” of a non-governmental organization, the Global Sustainable Development Foundation, later known as the Global Sustainability Foundation (“GSF”). GSF was founded by YAN and Piao and purported to promote the UN’s sustainable development goals. YAN sent these monthly payments from a Chinese company she operated to personal accounts of Ashe.
In September 2013, Ashe formally began his one-year term as President of the UN General Assembly. YAN and Piao thereafter arranged for another Chinese businessman, referred to as “CC-2” in the Complaint, to send Ashe $100,000. Approximately one month after this payment, YAN arranged for Piao to travel with Ashe and CC-2 to meet with Antiguan officials about a business deal for a Chinese security company (the “Chinese Security Company”) affiliated with CC-2. After YAN sent Ashe another $100,000, the government of Antigua signed a “memorandum of understanding” with the Chinese Security Company.
YAN and Piao also arranged for ASHE to be paid $200,000 in exchange for attending a private conference in China in Ashe’s official capacity, hosted by a Chinese real estate developer identified as “CC-3” in the Complaint.
During the scheme, YAN and Piao also arranged for Ashe to receive tens of thousands of dollars in custom suits and clothes.
In imposing sentence, Judge Broderick said, “To those bent on perverting decision-making” through bribery, “this simply will not be tolerated…there are consequences to these actions.”
* * *
YAN, 60, a naturalized United States citizen who resided principally in China prior to her arrest, was charged in October 2015 along with Piao, Francis Lorenzo (then-Deputy Permanent Representative of the Dominican Republic to the UN), Ashe, Ng Lap Seng, and Jeff C. Yin. Piao and Lorenzo subsequently pled guilty to bribery, money laundering, and other charges. Charges against Ng Lap Seng and Jeff C. Yin, who are scheduled to proceed to trial on January 23, 2017, remain pending, and they are presumed innocent unless and until proven guilty.[1]
In addition to her prison term, YAN was sentenced to two years of supervised release, was fined $12,500, and was ordered to forfeit $300,000.
U.S. Attorney Bharara praised the work of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, which jointly conducted this investigation, and noted that the investigation is ongoing.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Janis M. Echenberg, and Douglas S. Zolkind are in charge of the prosecution.
[1] Charges against Ashe were dismissed following his death in June 2016.
Former Daycare Owner Sentenced for Failing to Pay $891,000 in TaxesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of two daycare businesses in Parkville, Mo., and Platte City, Mo., was sentenced in federal court today for failing to pay $891,572 in payroll and other taxes to the Internal Revenue Service.
Lynn Jordan, 47, of Parkville, Mo., was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Jordan to pay $891,572 in restitution.
On Feb. 22, 2016, Jordan pleaded guilty to failing to pay over taxes to the IRS. Jordan operated daycare businesses at two locations. The first daycare business, Growing Places, Inc., in Parkville, opened in 1999 and closed in 2011, after which Jordan opened South Platte Early Educational Center, LLC, using the same business location, clients, assets, employees, etc. Jordan closed this business in 2012. The second daycare business, Growing Places Platte City, Inc., in Platte City, opened in 2006 and closed in 2009, after which Jordan opened GPPC, Inc., using the same business location, clients, assets and employees, but with a different employer identification number. She did this because she was having problems paying business expenses, owed a lot of money to the IRS and needed a fresh start. Jordan closed this business in 2010.
Jordan failed to pay over to the IRS approximately $891,572 in employment taxes withheld from her employees paychecks from 2009-2012. Instead, she used the money to pay for her own personal expenses and expenses of her family.
From 2009 to 2012, Jordan withheld employment taxes from her employees’ paychecks totaling $211,704. But Jordan failed to pay over the trust fund taxes she collected from her employees to the IRS. Jordan also failed to pay over the employer’s portion of Social Security tax and Medicare tax from 2009 to 2012, totaling $123,906. Additionally, Jordan failed to pay over employment taxes from 2004 to 2008 totaling $506,588. She also failed to pay over federal unemployment taxes from 2004 to 2012 totaling $22,294. In addition to the payroll taxes, Jordan failed to file tax returns for three years from 2009 to 2012. The balance due on those tax returns totals $27,079.
During this time, Jordan spent a total of $320,738 on a large number of personal expenses from the business bank accounts. Jordan withdrew more than $150,000 in cash and paid more than $50,000 on the mortgage of her personal residence from the business bank accounts. She made large ATM withdrawals and personal charges, including for lunches, salons, manicures, pedicures, travel, credit card and loan payments, checks and transfers to her personal bank accounts (in addition to her paychecks), retail stores, vehicle expenses, gas station purchases, clothing stores, medical and health expenses, restaurants, travel, expenses related to her children and credit score companies.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Federal Grand Jury Indicts Former Midland Bookkeeper in Connection with Embezzlement and Tax Evasion SchemeRead the Press Release
In Midland, a former bookkeeper faces federal charges in connection with an alleged scheme to steal over $2 Million from a local businessman announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
A twelve-count federal grand jury indictment returned today charges 51–year-old Kimberley Dale Boyce of Midland with three counts of mail fraud; three counts of wire fraud; three counts of engaging in monetary transactions with criminally derived funds; and, three counts of tax evasion.
The indictment alleges that over a two-year period beginning in February 2012, Boyce implemented a scheme involving mailed documentation and wire transfers to syphon money from a Midland County business owner’s bank accounts and place it into bank accounts which she controlled. In addition, the indictment alleges that Boyce failed to accurately report to the Internal Revenue Service her actual taxable income—totaling more than $2.5 million--for tax years 2012, 2013, and 2014
This morning, Boyce surrendered to federal authorities. Her bond was set at $50,000 unsecured. Upon conviction, Boyce faces up to 20 years imprisonment for each wire and mail fraud count; up to ten years imprisonment for each money laundering count; and up to five years imprisonment for each tax evasion count.
This case was investigated by the FBI and IRS-Criminal Investigation. Assistant United States Attorney William F. Lewis is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Elk Grove Man Sentenced to Federal Prison for Identity TheftRead the Press Release
SACRAMENTO, Calif. —Joseph Daniel Ryan, 21, of Elk Grove, was sentenced today to two years and eight months in prison for bank fraud and aggravated identity theft in the execution of a fraud scheme, Acting United States Attorney Phillip A. Talbert announced.
Ryan is the last of three defendants to be sentenced for this scheme that used stolen identities of Elk Grove postal customers to apply for debit and credit cards and obtain cash, goods, and services. Ryan pleaded guilty to the charges on March 11, 2016.
According to court documents, between October 1, 2014, and February 12, 2015, Ryan and Elk Grove residents Leonard A. Velasco, 24, and Keri Southwood, 22, were involved in a scheme to steal U.S. mail by damaging or destroying U.S. letter boxes and neighborhood cluster boxes. The defendants used the stolen mail to gather financial and personal identification information for purposes of fraud.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”
Robert M. Lehner, Chief of Police for the City of Elk Grove stated: “We would like to thank the US Postal Inspectors’ Office, and the US Attorney's Office, for vigorously prosecuting the individuals involved in the mail theft cases from Elk Grove. Hopefully, the arrests and sentencing of these three suspects will send a clear message to others that these types of crimes will not be tolerated in our community.”
According to court documents, Ryan and his co-defendants possessed stolen U.S. mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered loss as well.
All three defendants pleaded guilty. On March 18, 2016, Velasco was sentenced to two years and six months in prison. On August 25, 2015, Southwood was also sentenced to two years and six months in prison. Each defendant was ordered to pay full restitution to all victims, including $6,526 to the U.S. Postal Service for repairs to U.S. Postal Service receptacles.
This case was the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department with assistance from the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI). NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Eagle Butte Man Charged with Multiple CountsRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for two counts of Assault with a Dangerous Weapon, Assault by Strangulation and Suffocation, Assault Resulting in Substantial Bodily Injury to an Intimate Partner, Child Abuse, and Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Allen Garreau, age 32, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 27, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 58 years in custody and/or a $1,500,000 fine, 18 years of supervised release, and $600 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 11, 2016, Garreau unlawfully assaulted his intimate partner with shod feet, as well as assaulted her by strangling and suffocating her. Garreau is charged with unlawfully assaulting an adult male and several officers while they were trying to arrest him. Finally, Garreau is charged with child abuse regarding two young children who were present on July 11, 2016.
The charges are merely accusations and Garreau is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Garreau was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting SpouseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Substantial Injury to an Intimate Partner.
Dion Blue Earth, Sr., age 30, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 20, 2015, Blue Earth unlawfully assaulted his spouse with shod feet, resulting in serious bodily injury.
The charges are merely an accusation and Blue Earth is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Blue Earth was released on bond pending trial. A trial date has not been set.
Dupree Man Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Ptan Clown, a/k/a P’tan Hoksila Clown, age 36, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 60 years in custody and/or a $3,000,000 fine, up to life of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 29, 2016, and June 8, 2016, Clown knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and Clown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Clown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Department of Justice and EPA Announce $29 Million Settlement for Cleanup Work at Coastal Georgia Superfund SiteRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Honeywell International Inc. and Georgia Power Company have agreed to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia. The settlement requires the companies to spend an estimated $28.6 million to remove and isolate contaminated sediments in the marsh and to monitor the long-term effectiveness of the work.
“We appreciate that these companies have stepped forward to remedy the contamination to which they and others have contributed,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “This settlement makes critical progress toward the remediation of the LCP Chemicals Superfund Site and will minimize risks to people and the environment posed by contamination in the marsh.”
“Back in the 1990s, this U.S. Attorney’s Office secured criminal convictions against six officers and employees of LCP Chemicals-Georgia Inc. who were responsible for dumping mercury and other hazardous chemicals into the waters of the United States,” said U.S. Attorney Edward J. Tarver for the Southern District of Georgia. “The combined sentences totaled over 21 years in prison. The cleanup of this Superfund Site is now in its third decade. I am pleased that Honeywell and Georgia Power have stepped forward to continue cleanup as we work towards fixing the environmental mess caused by other companies’ greed many years ago.”
“EPA is very pleased to reach a settlement ensuring funding for future cleanup costs to address the contamination of the site’s tidal marsh and creeks,” said Regional Administrator Heather McTeer Toney of EPA’s Southeast Region. “We are looking forward to ensuring that cleanup work at this site continues.”
Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations, including a mercury cell chlor-alkali plant. These industrial activities led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances. The site was placed on the federal Superfund list in 1996.
The cleanup work required by the settlement includes dredging and installing protective caps on portions of four tidal creeks, placing a layer of clean sediment on eleven acres of marsh and restoring areas disturbed by construction. The work is expected to reduce concentrations of mercury, PCBs, lead and polycyclic aromatic hydrocarbons in the marsh’s sediments.
Additionally, capping the contaminants in place will prevent them from moving throughout the marsh and contaminating its animal life. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
EPA and potentially responsible parties, including Honeywell International Inc. and Georgia Power Company, began response work at the site in 1994. Since then, EPA has overseen the demolition of contaminated buildings, the dredging and excavation of 13 acres of marsh and the removal of contaminated soil and waste from the site’s upland areas. This settlement marks an important step in the remediation of the site’s tidal marsh and creeks, which comprise one of the three areas into which the site has been divided. EPA will address the site’s groundwater and upland areas in future actions.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees. The Justice Department also concurrently filed a complaint initiating the case that the consent decree resolves.
Department of Justice and EPA Announce $29 Million Settlement for Cleanup Work at Coastal Georgia Superfund SiteRead the Press Release
WASHINGTON—The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced that Honeywell International Inc. and Georgia Power Company have agreed to clean up the 760-acre saltwater marsh at the LCP Chemicals Superfund Site in Brunswick, Georgia. The settlement requires the companies to spend an estimated $28.6 million to remove and isolate contaminated sediments in the marsh and to monitor the long-term effectiveness of the work.
“We appreciate that these companies have stepped forward to remedy the contamination to which they and others have contributed,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “This settlement makes critical progress toward the remediation of the LCP Chemicals Superfund Site and will minimize risks to people and the environment posed by contamination in the marsh.”
“Back in the 1990s, this U.S. Attorney’s Office secured criminal convictions against six officers and employees of LCP Chemicals-Georgia Inc. who were responsible for dumping mercury and other hazardous chemicals into the waters of the United States,” said U.S. Attorney Edward J. Tarver for the Southern District of Georgia. “The combined sentences totaled over 21 years in prison. The cleanup of this Superfund Site is now in its third decade. I am pleased that Honeywell and Georgia Power have stepped forward to continue cleanup as we work towards fixing the environmental mess caused by other companies’ greed many years ago.”
“EPA is very pleased to reach a settlement ensuring funding for future cleanup costs to address the contamination of the site’s tidal marsh and creeks,” said Regional Administrator Heather McTeer Toney of EPA’s Southeast Region. “We are looking forward to ensuring that cleanup work at this site continues.”
Between 1919 and 1994, the LCP Chemicals site hosted a petroleum refinery, an electric power generation facility and various manufacturing operations, including a mercury cell chlor-alkali plant. These industrial activities led to widespread contamination of the site’s soil, groundwater, surface water and sediment with mercury, polychlorinated biphenyls (PCBs) and other hazardous substances. The site was placed on the federal Superfund list in 1996.
The cleanup work required by the settlement includes dredging and installing protective caps on portions of four tidal creeks, placing a layer of clean sediment on eleven acres of marsh and restoring areas disturbed by construction. The work is expected to reduce concentrations of mercury, PCBs, lead and polycyclic aromatic hydrocarbons in the marsh’s sediments.
Additionally, capping the contaminants in place will prevent them from moving throughout the marsh and contaminating its animal life. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
EPA and potentially responsible parties, including Honeywell International Inc. and Georgia Power Company, began response work at the site in 1994. Since then, EPA has overseen the demolition of contaminated buildings, the dredging and excavation of 13 acres of marsh and the removal of contaminated soil and waste from the site’s upland areas. This settlement marks an important step in the remediation of the site’s tidal marsh and creeks, which comprise one of the three areas into which the site has been divided. EPA will address the site’s groundwater and upland areas in future actions.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees. The Justice Department also concurrently filed a complaint initiating the case that the consent decree resolves.
Cuban National Residing in Louisville on A Visa Found Guilty of Conspiring to Possess and Distribute Ten Kilograms of CocaineRead the Press Release
LOUISVILLE, Ky. – A Cuban National residing in Louisville, Kentucky on a Visa was convicted by a federal jury late yesterday, in United States District Court, on all charges including conspiring with others to possess with the intent to distribute cocaine, announced United States Attorney John E. Kuhn, Jr.
Following a three-day trial, a federal jury deliberated approximately three hours before finding Manuel Sile-Perez, 54, guilty of conspiring to possess with intent to distribute cocaine and aiding and abetting an attempt to possess with intent to distribute cocaine.
Sile-Perez was charged individually by federal Complaint on November 5, 2014, and charged by grand jury indictment with three co-defendants on December 2, 2014.
During the trial, the United States provided evidence of Sile-Perez’s role in the attempted purchase of cocaine for approximately $100,000 from an alleged California based supplier. The “supplier” was an FBI Inland Crackdown Allied Task Force Confidential Human Source (INCA CHS).
The CHS met with Sile-Perez and co-defendants Walter Elliot, Nathaniel Barbour and Roberto Remedios Faguagua (Remedios) at a storage business located on Preston Highway in Louisville, the agreed upon location where the supposed cocaine was stored. The meeting was captured on video tape.
Sile-Perez is scheduled to be sentenced by Chief District Judge Joseph H. McKinley JR., on October 27, 2016 in Louisville.He faces a sentence from five to forty years in prison for each count.
Assistant United States Attorney Larry Fentress prosecuted the case. The Federal Bureau of Investigation (FBI), with assistance from the California Department of Justice, conducted the investigation.