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20 September 2016
Former Executive Director of Military Charity Indicted for Fraud and Tax EvasionRead the Press Release
WASHINGTON – Patricia Pauline Driscoll, the former executive director of the Armed Forces Foundation, was indicted today on federal charges stemming from a scheme in which she allegedly stole from the non-profit charity, defrauded donors, and lied to the Internal Revenue Service and the public about her salary and benefits.
The indictment was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Driscoll, 38, of Ellicott City, Maryland, will be arraigned at a later date in the U.S. District Court for the District of Columbia. She was named in an indictment charging her with two counts each of wire fraud, mail fraud, and tax evasion, and one count of attempts to interfere with administration of Internal Revenue laws, all federal offenses. She also was charged with first-degree fraud, a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the alleged fraud scheme.
According to the indictment, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission is to protect and promote the physical, mental, and emotional wellness of military service members, veterans, and their families.
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 94 - 96% of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on forms (called “Form 990”) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
The indictment alleges that Driscoll caused false reports to be filed on the Form 990s in a number of ways. She is accused, for example, of failing to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising, and the other benefits that she received. Driscoll also is accused of falsely categorizing and causing others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops, and their families, when, in fact, they were for her own private benefit. Driscoll also is accused of concealing from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned. Additionally, she is accused of falsely reporting and causing others to falsely report the amount of donations received by the foundation on Form 990s, by inflating the amounts of donations, incorrectly listing the types of donations, and including donors who did not, in fact, actually donate. The indictment further alleges that Driscoll sent false and fraudulent Form 990s to members of the foundation’s Board of Directors and to the IRS, and caused to be published Form 990s, containing false and fraudulent information, on the foundation’s website, knowing that they would be available and viewed by charity watch groups, potential donors, and others.
The indictment also alleges that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. Finally, the indictment charges tax evasion for tax years 2012 and 2013.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work performed by Special Agents from the FBI and the IRS. They also acknowledged the efforts of those working at the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman; Paralegal Specialist Kaitlyn Kruger; Information Technology Specialist Leif Hickling; Litigation Technology Supervisor Josh Ellen, and Assistant U.S. Attorney Diane Lucas, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Executive Director of Military Charity Indicted for Fraud and Tax EvasionRead the Press Release
Defendant Accused of Stealing from Charity, Defrauding Donors, Lying to IRS
The former executive director of the Armed Forces Foundation was indicted today on federal charges stemming from a scheme in which she allegedly stole from the non-profit charity, defrauded donors, and lied to the Internal Revenue Service (IRS) and the public about her salary and benefits.
The indictment was announced by U.S. Attorney Channing D. Phillips for the District of Columbia, Assistant Director Paul M. Abbate in Charge of the FBI’s Washington Field Office and Special Agent in Charge Thomas Jankowski of the Washington Field Office of the IRS-Criminal Investigation.
Patricia Pauline Driscoll, 38, of Ellicott City, Maryland, will be arraigned at a later date in the U.S. District Court for the District of Columbia. She was named in an indictment charging her with two counts each of wire fraud, mail fraud and tax evasion and one count of attempts to interfere with administration of Internal Revenue laws, all federal offenses. She also was charged with first-degree fraud, a District of Columbia offense. The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the alleged fraud scheme.
According to the indictment, until July 2015, Driscoll was the executive director of the Armed Forces Foundation, a tax-exempt non-profit charity based in Washington, D.C. The foundation’s stated mission is to protect and promote the physical, mental and emotional wellness of military service members, veterans and their families.
While Driscoll was the executive director, in its promotions and requests for money, the Armed Forces Foundation claimed that 94 - 96 percent of all donations went directly to military members and their families through the charity’s programs. As a “highly compensated individual,” Driscoll’s salary and benefits were required to be disclosed on forms (Form 990) to be filed each year with the IRS. These publicly available documents are often used by charity watch groups and donors to judge worthiness of the charity and by the IRS to determine whether the organization was operating with IRS law and regulations.
The indictment alleges that Driscoll caused false reports to be filed on the Form 990s in a number of ways. She is accused, for example, of failing to include the fact that she received commissions from fundraising, the amounts of commissions that she received from fundraising and the other benefits that she received. Driscoll also is accused of falsely categorizing and causing others to falsely categorize expenses in the Armed Forces Foundation’s books and records as being for the benefit of the veterans, troops and their families, when, in fact, they were for her own private benefit. Driscoll also is accused of concealing from the foundation’s accountants the money she took from the charity, such as rent that was paid for the use of office space in a building that she co-owned. Additionally, she is accused of falsely reporting and causing others to falsely report the amount of donations received by the foundation on Form 990s, by inflating the amounts of donations, incorrectly listing the types of donations and including donors who did not, in fact, actually donate. The indictment further alleges that Driscoll sent false and fraudulent Form 990s to members of the foundation’s Board of Directors and to the IRS and caused to be published Form 990s, containing false and fraudulent information, on the foundation’s website, knowing that they would be available and viewed by charity watch groups, potential donors and others.
The indictment also alleges that Driscoll took the foundation’s money for her own personal use and to pay her for-profit business expenses. Finally, the indictment charges tax evasion for tax years 2012 and 2013.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Phillips, Assistant Director in Charge Abbate and Special Agent in Charge Jankowski commended the work performed by Special Agents from the FBI and the IRS. They also acknowledged the efforts of those working at the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman; Paralegal Specialist Kaitlyn Kruger; Information Technology Specialist Leif Hickling; Litigation Technology Supervisor Josh Ellen and Assistant U.S. Attorney Diane Lucas, of the Asset Forfeiture and Money Laundering Section. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
Former Employee of Sporting Goods Distributor Sentenced to over 3 Years for Embezzling nearly $370,000 from Orange County CompanyRead the Press Release
SANTA ANA, California – A former office manager for an independent sporting goods distributor has been sentenced to 37 months in federal prison for embezzling nearly $370,000 from her Los Alamitos-based employer.
Julianna James England, 51, of Cedar Rapids, Iowa, was sentenced yesterday by United States District Judge James V. Selna. In addition to the prison term, Judge Selna ordered England to pay $368,152 in restitution.
Following a trial in February, England was found guilty of three wire fraud charges for using company checks and credit cards to embezzle money from her former employer, Callan Western Sales Company (CWS).
The evidence at trial showed that England used company credit cards and wrote company checks to herself to obtain the company’s funds. As part of her scheme, she altered company records and created false bank stubs to give to the company’s accountant.
“This defendant’s embezzlement required the owners to use personal funds in an attempt to keep the company afloat, but the business was forced to close,” said United States Attorney Eileen M. Decker. “This crime had a devastating impact on the company, its owners and its employees.”
England was hired by CWS in 2000 to be a part-time secretary and office manager in charge of office administration, which included preparing checks for the signature of Michael Callan, the company’s founder. England was also in charge of maintaining the company’s check ledger, coding the payments, and providing monthly bank statements to the company’s accountant.
From March 2003 until July 2007, England wrote at least 55 checks payable to either herself or her creditors totaling more than $33,000. To cover her tracks, England wrote false notations on the check stubs to indicate payment to a legitimate company vendor. After using these checks for her personal use, she altered the company’s bank statements and provided these altered statements to the CPA.
England also used company credit cards for unauthorized expenses which totaled nearly $280,000. She used Visa and American Express credit cards issued to CWS for personal expenses and made unauthorized online payments from the company’s bank account in an attempt to conceal the unauthorized purchases.
“Ms. England used her position of trust to take advantage of a small business whose owners employed her for several years and which, ultimately, was rendered insolvent due to her criminal actions,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Agents and detectives at the FBI and the Los Alamitos Police Department should be commended for their investigation of this fraud, and for building a case for prosecutors to deliver justice to the victim company.”
England has been in custody since her conviction earlier this year.
England is also facing federal charges in the Eastern District of Arkansas for making false statements to the Social Security Administration to obtain disability benefits. She is scheduled to go on trial in that case in January.
This case was the product of an investigation by Federal Bureau of Investigation and the Los Alamitos Police Department. This case was prosecuted by Assistant United States Attorney Gregory W. Staples.
Former Corrections Officer Pleads Guilty to Distribution of MarijuanaRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces James Royal, age 43, of Cuthbert, Georgia pled guilty September 20, 2016 to distribution of marijuana in front of the Honorable Clay D. Land, United States District Court Judge, in Columbus, Georgia.
Mr. Royal was a corrections officer at the Immigration and Customs Enforcement facility in Lumpkin, Georgia. Between November 2015 and January 2016, Mr. Royal smuggled marijuana into the prison and sold it to the inmates. He received payment from inmates, and/or friends of inmates, via Western Union. The money was sent to a convenience store in Cuthbert, Georgia, where Mr. Royal would pick it up.
Sentencing has been set for January 17, 2017. Mr. Royal faces up to five years in prison.
The case was investigated by Department of Homeland Security. United States Attorney Mel Hyde is prosecuting the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Florida Man Who Admitted Defrauding Multiple Factoring Businesses for over $800,000 Gets More Than Four Years in PrisonRead the Press Release
NEWARK, N.J. - A Seminole, Florida, man was sentenced today to 51 months in prison for using phony invoices to defraud multiple factoring businesses, including one based in Bergen County, New Jersey, U.S. Attorney Paul Fishman announced.
Karl Stehlin, a/k/a “Mark Sawyer,” 61, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stehlin admitted that from June 2014 through September 2014, he defrauded a Bergen County factoring business that purchased accounts receivable in return for short term financing. Stehlin created a bogus Idaho-based company, Sawyer Express Transportation Inc., and emailed accounts receivable invoices to the factoring company for transportation services that were never provided. As a result, Stehlin was able to defraud the factoring company out of $220,000 in advance payment on those invoices.
During his plea hearing, Stehlin also admitted using the same methods to defraud a Glendale, California, factoring business out of $127, 953.34 and a Las Vegas factoring business out of $524,025.28.
In addition to the prison term, Judge Martini ordered Stehlin to serve three years of supervised release and pay restitution of $837,618.29.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI Tampa Division, under the direction of Special Agent in Charge Paul Wysopal, for their assistance.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Final Defendants in Multi-Million Dollar Health Care Fraud and Money Laundering Case Sentenced to Federal Prison TermsRead the Press Release
LOS ANGELES – With the final defendant receiving a prison term yesterday, six defendants who participated in a multi-million dollar health care fraud scheme or helped launder the illicit proceeds have now been sentenced to federal prison.
Edgar Pogosian, also known as “Edgar Hakobyan,” 32, of Glendale, was sentenced yesterday to 18 months in prison. Pogosian was found guilty earlier this year of conspiring to commit money laundering and one count of money laundering.
“Over the course of nearly seven years, this defendant engaged in a wide-ranging money laundering conspiracy in which he received 150 checks and personally laundered over $700,000 in health care fraud proceeds,” said United States Attorney Eileen M. Decker. “All of the defendants in this case played a vital role in a scheme that bilked the taxpayers who finance Medicare and utilized sophisticated money laundering techniques to hide their crimes.”
Over the past month, United States District Judge Philip S. Gutierrez sentenced two other defendants involved in the scheme:
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Karen “Gary” Sarkissian, 44, also of Glendale was sentenced on September 12 to 57 months in federal prison after the same jury that convicted Pogosian found him guilty of conspiring to commit money laundering, six counts of money laundering and five counts of health care fraud; and
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L’Tanya Smith, 58, of Ladera Heights, was sentenced on August 22 to 57 months imprisonment after she pleaded guilty to five counts of health care fraud.
Pogosian and Sarkissian were found guilty in February by a federal jury following a four-week trial before Judge Gutierrez. Smith pleaded guilty on the eve of trial.
Sarkissian operated a clinic on Sunset Boulevard in Echo Park and worked there with Smith, a physician’s assistant. Between July 2009 and March 2010, Smith prescribed or ordered medically unnecessary tests and services, some of which were never provided to the patients. Those prescriptions and orders led to more than $1.2 million in fraudulent claims to Medicare from the Sunset clinic. Other providers that received referrals from the Sunset clinic submitted another $10 million in fraudulent claims to Medicare.
“Laundering money does not make the criminals clean,” said Chris Schrank, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General. “Dirty money will be tracked down, reclaimed and those responsible will pay the price. We will work to protect Medicare from illicit drains on the resources it needs to care for the nation’s most vulnerable population.”
Sarkissian also participated in a scheme that laundered the fraudulent proceeds generated through the Sunset Clinic through five bogus corporations set up by two other men, Khachatour Hakobyan (Pogosian’s uncle) and Aram Aramyan, who were previously convicted and sentenced in this case.
Hakobyan, 48, of Glendale, who prosecutors argued was the overall leader of the scheme, was sentenced in January 2016 to 57 months in prison and was ordered to pay $606,681 in restitution after he pleaded guilty to conspiring to launder health care fraud proceeds through the five sham corporations and underreporting his income from the conspiracy on his federal income tax returns. Aramyan, 60, of Glendale, was sentenced in November 2015 to 51 months in prison on similar charges and was ordered to pay $353,669 in restitution.
Hakobyan and Aramyan deposited millions of dollars in fraudulent proceeds into bank accounts for the five sham companies and then wrote checks from these corporations to themselves and their relatives, including Pogosian, who was found guilty based on evidence that he received more than $700,000 in checks from the sham corporations that he either cashed or deposited in his own bank accounts.
“Federal benefit programs such as Medicare are for the benefit of the American taxpayer, not the benefit of the common criminal,” said Anthony J. Orlando, the Acting Special Agent in Charge of IRS Criminal Investigation. “The sentences handed down to the defendants in this case demonstrates that crime costs criminals their freedom. IRS Criminal Investigation, in conjunction with our law enforcement partners, will continue to pursue and prosecute those who take advantage of programs meant for the public good.”
With these most recent sentences, six defendants have now been sentenced in relation to a health care fraud scheme related to multiple medical clinics, a durable medical equipment supplier and an independent diagnostic testing facility.
The sixth defendant, a doctor associated with one of those clinics – Claude R. Cahen, 74, of Santa Monica – pleaded guilty to conspiring to commit health care fraud and was sentenced to 12 months and one day of imprisonment in March 2016.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation.
The case was prosecuted by Assistant United States Attorneys Cathy J. Ostiller, Kristen A. Williams and Cassie D. Palmer.
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Federal Jury Finds a Serial Bank Robber Guilty of Three Counts of Bank RobberyRead the Press Release
TULSA, Okla.—A jury in the United States District Court found Jesse Bud Leaverton, 58, guilty of three counts of Bank Robbery, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. The trial was presided over by United States District Court Chief Judge Gregory K. Frizzell and he will sentence Leaverton on December 20, 2016.
According to the evidence at trial, Leaverton went on a bank robbery spree that begun on June 18, 2016, with the robbery of the Arvest Bank at 218 South Memorial Drive in Tulsa when Leaverton handed a teller a threatening note demanding money and stating that he had a gun and would use it if necessary.
On June 23, 2016, Leaverton robbed Bank of America at 5950 East Admiral in Tulsa with another threatening note to a teller that demanded money and stated that he had a gun and would be “watching her.”
The next day, June 24, 2016, Leaverton robbed Security State Bank in Fairfax, Oklahoma, by again handing a teller a threatening note that stated that he had a gun and a knife and would kill her. After taking the money, Leaverton reminded the teller that he would kill her.
Leaverton was located by the United States Marshals Violent Crimes Task Force in Missouri on June 30, 2016. The Federal Bureau of Investigation recovered cash receipts, camping equipment, and a new car title from Leaverton’s car. Additionally, FBI agents also found clothing and eyeglasses similar to the ones Leaverton wore during the bank robberies.
This case was investigated by the Federal Bureau of Investigation, the Tulsa Police Department, the Osage County Sherriff’s Office, the Talala Police Department, and the United States Marshals Violent Crimes Task Force. Assistant United States Attorney Neal C. Hong prosecuted the case.
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El Departamento De Justicia Y El Tribunal Superior Del Condado De Los Ángeles Llegan A Un Acuerdo Para Garantizar La Igualdad De Acceso A La Justicia Para Personas Con Conocimientos Limitados Del InglésRead the Press Release
El Departamento de Justicia anunció hoy que llegó a un acuerdo con el Tribunal Superior de California, Condado de Los Ángeles (LASC, por sus siglas en inglés) para garantizar que los usuarios del tribunal con dominio limitado del inglés [limited English proficient (LEP)] tengan acceso a servicios oportunos y precisos de asistencia idiomática.
El acuerdo resuelve una investigación del Departamento de Justicia sobre una demanda entablada por la Legal Aid Foundation of Los Angeles. La demanda alegaba que el LASC no les brindaba a las personas con LEP un acceso significativo a sus servicios judiciales, entre ellos procedimientos civiles y operaciones judiciales, en violación del Título VI de la Ley de Derechos Civiles de 1964 y sus regulaciones de implementación, que prohíben la discriminación por motivo de origen nacional.
“Felicitamos al Tribunal Superior del Condado de Los Ángeles por comprometerse a proteger los derechos de todas las personas, sin importar su origen nacional ni su nivel de conocimientos del inglés, para que participen de manera significativa, plena y justa en los procedimientos judiciales del estado,” declaró La Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, Jefa de la División de Derechos Civiles del Departamento de Justicia. “Ofrecer servicios idiomáticos eficaces es esencial para reivindicar los derechos civiles de los usuarios de los tribunales y resguardar la integridad de nuestro sistema judicial.”
“El Tribunal Superior del Condado de Los Ángeles ha aceptado el desafío de satisfacer las necesidades de personas con conocimientos limitados del inglés en una de las áreas más pobladas y con mayor diversidad lingüística del país,” declaró la Fiscal Federal Eileen Decker del Distrito Central de California. “Proteger los derechos civiles de todas las personas dentro del Distrito Central de California es una de mis prioridades principales como Fiscal Federal, y el acuerdo de hoy contribuye a ese objetivo al darles mayor acceso al sistema judicial a las personas para que puedan proteger sus propios derechos.”
Durante la investigación, el LASC expandió constantemente su oferta de servicios de intérpretes, que actualmente incluye todos los procesos penales y la gran mayoría de los procesos civiles, así como también asistencia idiomática oral y escrita en los servicios del tribunal. El LASC aceptó expandir los servicios de intérpretes gratuitos a asuntos civiles ilimitados – el último tipo de caso restante en el que actualmente no se garantizan los servicios idiomáticos – antes del 1 de diciembre de 2017. Entre otros compromisos asumidos, el tribunal traducirá documentos adicionales, ofrecerá avisos más amplios sobre la disponibilidad de servicios de interpretación gratuitos para los procedimientos judiciales y hará que sea más fácil solicitar un intérprete. El LASC también seguirá pidiendo la opinión de asociados comunitarios que brindan servicios a poblaciones con LEP. Bajo los términos del acuerdo, el LASC actualizará periódicamente al Departamento de Justicia hasta el final del 2017.
Si bien la investigación del departamento se enfocó en el LASC, la estructura del sistema judicial de California exigió que el departamento revisara políticas circuladas e implementadas a nivel estatal a través del Consejo Judicial de California y su personal. En una carta de 2013 al LASC, el juez principal de la Corte Suprema de California y el brazo administrativo de los tribunales, el departamento identificó inquietudes respecto del cumplimiento del Título VI, hizo recomendaciones para mejorar el cumplimiento y se ofreció a trabajar de manera colaborativa para asegurar el cumplimiento. Representantes del LASC ayudaron al Consejo Judicial de California a desarrollar e implementar el Plan Estratégico para el Acceso Lingüístico en los Tribunales de California para garantizar un acceso significativo a los procedimientos judiciales y otras operaciones de los tribunales en todo el sistema unificado de tribunales del estado. El departamento está trabajando por separado con el consejo judicial para resolver la parte de la investigación enfocada en el cumplimiento en todo el estado.
El caso fue investigado de manera conjunta por la abogada Anna Medina de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles y el Fiscal Federal Auxiliar Richard Park del Distrito Central de California.
Para obtener más información sobre la Iniciativa de Acceso Lingüístico a los Tribunales Estatales de la FCS, una iniciativa múltiple enfocada en la coacción, la asistencia técnica, la extensión pública, el desarrollo de recursos y los esfuerzos a nivel de políticas para garantizar un acceso significativo a los tribunales estatales que reciben asistencia financiera federal, visite www.lep.gov o consulte la publicación recién divulgada del Departamento de Justicia, “Language Access in State Courts” [Acceso Lingüístico en los Tribunales Estatales]. Para obtener más información sobre los idiomas hablados en California y otras partes de los Estados Unidos, haga clic en la aplicación de mapa de idiomas disponible aquí: https://www.lep.gov/maps/.
Detroit Doctor Sentenced for Unlawful Opioid PrescriptionsRead the Press Release
A physician who practiced in Detroit, Michigan, was sentenced to 12 months and one day in prison today for writing prescriptions for oxycodone and other controlled medications without medical justification, announced U.S. Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent Timothy Plancon, Drug Enforcement Administration, Detroit Division.
Lauran Bryan, 57, a plastic surgeon living in Farmington Hills, Michigan, was sentenced by U.S. District Judge Matthew Leitman in Detroit, Michigan.
From 2011 through 2015, Bryan wrote prescriptions for tens of thousands of oxycodone and other controlled medications for patients, some of whom she knew to be addicted to the drugs, for no legitimate medical reason. She also wrote prescriptions in the names of associates of her patients, knowing that the associates would provide the pills to the addicted patients.
Bryan’s unlawful prescribing was somewhat unusual, in that her motive appears to have been to keep traffic coming to her struggling plastic surgery practice, rather than simply to sell opioid prescriptions for cash profit.
United States Attorney McQuade said, “Doctors who divert drugs to the street market are contributing to the overdose epidemic that kills 44 people every day in the United States. We are focusing our efforts on bringing corrupt doctors and pharmacists to justice.”
Defendants Plead Guilty to Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – Four Southwest Virginia residents pled guilty in recent weeks in Federal Court to charges related to the manufacturing of methamphetamine, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
Dana Lynn Vanmeter, 44, of Glade Spring, Virginia, pled guilty on August 4, 2016, to one count of conspiring to manufacture methamphetamine, one count of using or maintaining a place for the purpose of manufacturing, distributing, and using methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
April Darlene Fields, 37, of Glade Spring, Virginia, pled guilty on September 19, 2016, to one count of conspiring to manufacture methamphetamine and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
John Steven Fields, 40, of Abingdon, Virginia, and Shauna Danielle Davie, 25, of Meadowview, Virginia, both plead guilty in July 2016 to one count each of conspiring to manufacture methamphetamine.
“Manufacturing methamphetamine is an inherently dangerous process and creates a significant risk of harm to our communities. Our office takes these cases very seriously, particularly where children are present or reside, and will continue to vigorously prosecute these offenses,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to slow the spread of this deadly drug throughout Virginia.”
“Methamphetamine is a highly dangerous, addictive drug that can and has caused tremendous destruction in families across Virginia,” stated Virginia Attorney General Mark R. Herring. “We are doing everything in our power to educate the public about the dangers of this drug and prosecute those that manufacture and bring it into our state, endangering the safety of our children and communities. Public safety is our number one priority.”
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Town of Damascus Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, is prosecuting the case for the United States.
Davenport Man Sentenced to Prison for Felon in Possession of Stolen Firearms ChargeRead the Press Release
DAVENPORT, IA – On September 15, 2016, Xavier Elfonsto Buckner, 27, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 96 months in prison for felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Buckner was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Buckner was found guilty of felon in possession of a firearm after a three day jury trial ending on May 11, 2016.
At trial, evidence was presented that on August 3, 2015, there was a shooting in the 700 block of West 14th Street, Davenport, Iowa. Witnesses identified Buckner as the shooter. Officers collected spent casings from the scene and a warrant was issued for Buckner’s arrest. On August 11, 2015, officers in the area of 700 West 14th Street saw Buckner in the passenger seat of a vehicle and attempted to stop the vehicle. The vehicle fled from officers, exceeding the speed limit by 25 miles per hour in residential neighborhoods and disobeying many traffic devices. The chase ended when multiple police cars blocked in the vehicle. A stolen, loaded .380 caliber handgun was found on the back passenger floorboard and identified as belonging to Buckner.
A DCI criminalist compared the four casings collected from the scene on August 3, 2015, to the weapon found in the vehicle on August 11, 2015, and concluded that the casings were fired from that weapon.
Buckner has prior felony convictions for reckless use of a firearm in 2006 and third degree burglary in 2008.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
- Criminal Complaint in U.S. v. Ahmad Khan Rahami
Correction Officer Pleads Guilty in Cover-Up of Beating and Death of Inmate at Rikers IslandRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the guilty plea of New York City Correction Officer BYRON TAYLOR in connection with efforts to cover up the cause of the death of Ronald Spear, a pre-trial detainee at Rikers Island. TAYLOR pled guilty to perjury and conspiracy to obstruct justice in connection with his actions following Spear’s death, after lying repeatedly about his actions and those of other correction officers to a federal grand jury investigating Spear’s death. TAYLOR pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted today, New York City Correction Officer Byron Taylor conspired to cover up the beating and death of Ronald Spear, a detainee at Rikers Island. Taylor lied to a federal grand jury and together with others concocted a story that blamed the victim – who had serious physical ailments – for starting an altercation with correction officers. This Office is committed to ensuring that incarcerated people are treated fairly and protected from abuse by the correction officers sworn to both guard and protect them.”
According to the Indictment, Superseding Indictment, and Complaint[1] filed in this case, and statements made during the plea proceeding:
Rikers Island is a jail complex located in the Bronx, New York, and is maintained by the New York City Department of Correction. At the time of his death, Ronald Spear was a pretrial detainee incarcerated on Rikers Island in the North Infirmary Command, a facility housing detainees who have serious physical ailments or conditions requiring medical supervision and intervention. Spear was suffering from end-stage renal disease, which required him to receive dialysis treatments, and wore a bracelet indicating that he was at “Risk of Fall.” Spear typically walked with a cane.
In the early morning hours of December 19, 2012, Spear left the housing area in the infirmity unit in an attempt to see the on-duty doctor. Spear was stopped outside the doctor’s office by a correction officer. When Spear was told the doctor was not available to see him at that time, an altercation between officers and Spear ensued, and Spear was pronounced dead at the scene shortly afterward.
After Spear’s death, TAYLOR and others covered up the true cause of Spear’s death by concocting a false story that portrayed Spear as the aggressor. Consistent with their agreement, correction officers filed false Use of Force reports with the Department of Correction and lied repeatedly to Department of Correction investigators, to the Bronx District Attorney and, in TAYLOR’S case, to a federal grand jury.
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BYRON TAYLOR, 32, of Brentwood, New York, pled guilty to one count of perjury, which carries a maximum sentence of five years in prison, and one count of conspiracy to obstruct justice, which carries a maximum sentence of 20 years in prison.
TAYLOR is scheduled to be sentenced by Judge Preska on December 20, 2016.
ANTHONY TORRES, 60, of New Rochelle, New York, previously pled guilty to one count of conspiracy to obstruct justice and file false reports, which carries a maximum penalty of five years in prison, and one count of filing a false report, which carries a maximum sentence of 20 years in prison.
The trial of a third defendant, BRIAN COLL, is scheduled to commence on October 18, 2016, in front of Judge Preska. The charges against Brian Coll are merely accusations, and Coll is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI and the Criminal Investigators at the United States Attorney’s Office. Mr. Bharara also thanked the New York City Department of Correction, Investigative Division, and the Bronx District Attorney’s Office for their assistance in the investigation.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Brooke E. Cucinella, Jeannette A. Vargas, and Martin S. Bell are in charge of the prosecution.
[1] As to Brian Coll, as the introductory phrase signifies, the text of the Complaint, Indictment, and Superseding Indictment constitute only allegations and every fact described should be treated as an allegation.
Convicted Sex Offender Sentenced to Ten Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Monday, September 19, 2016, U.S. District Judge Marco H. Hernandez sentenced Samuel Ira Dowell to 10 years in federal prison and 15 years’ supervised release after the defendant pleaded guilty to possession of child pornography. Dowell, 31, was on post-prison supervision following an Oregon state conviction for attempted first-degree sexual abuse when he committed the offense for which he was sentenced.
In the federal case, Dowell met a 13-year-old girl on an Internet website and exchanged sexually explicit correspondence with her online and by telephone for a period of time. They spoke of meeting in person, engaging in various sexual activities, and having children together. Dowell’s activities came to light after the victim’s mother discovered their communications and reported them to her local police department. Investigators identified Dowell and learned that he was a convicted sex offender living in Oregon. During a home visit, Dowell’s probation officer discovered evidence of his communications with the victim. A forensic examination of the defendant’s computer equipment revealed sexually explicit images and videos of the victim and other children. Dowell and the victim, who lives in another state, never met in person.
Judge Hernandez described the nature and circumstances of the offense as “horrible,” and Dowell’s history and character as “deeply disturbing.” Seeing Dowell as a danger to the community, particularly to children, Judge Hernandez imposed a lengthy and stringent list of conditions with which Dowell must comply while on supervised release. These include prohibitions on contact with minors (including the victim and her family), a requirement to undergo mental health and sex offender treatment, restrictions on where Dowell may work and reside, and restrictions on computer usage and access to the Internet. Dowell, who told Judge Hernandez that he was prepared to accept the consequences of his actions, will also be required to register as a sex offender.
“The defendant’s conduct in this case is alarming,” said Billy J. Williams, United States Attorney for the District of Oregon. “Dowell is a convicted sex offender who took advantage of a vulnerable adolescent girl he met online and continued to exploit her, even after her mother attempted to intervene. This sentence,” continued U.S. Attorney Williams, “is a significant sanction for very troubling behavior that we, as a society, are simply not willing to tolerate.”
The investigation was a collaborative effort on the part of the local police department in the victim’s hometown, the Multnomah County Department of Community Justice, the Multnomah County Sheriff’s Office, and the U.S. Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Cleaning Company Owner Pleads Guilty to Federal Charge Stemming from Employee Kickback SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that ANTHONY DIAZ, 62, of Monroe, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill to one count of making a false statement to federal agents during an investigation of an employee kickback scheme.
According to court documents and statements made in court, DIAZ is a co-owner of Advantage Cleaning, LLC, which provides custodial services and final cleaning for construction job sites, and he is a manager at Advantage Maintenance, Inc., a janitorial cleaning and maintenance service company. An investigation revealed that undocumented employees of Advantage Cleaning and Advantage Maintenance were required to kick back a large portion of the pay they received for work they performed on prevailing wage jobs to DIAZ. Employees who were paid between $37 and $41 per hour would cash their paychecks and would return approximately $25 for each our worked to DIAZ.
On September 26, 2014, DIAZ was interviewed by special agents from the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division. During the interview, DIAZ was questioned about cash kickbacks he had allegedly received and whether Advantage Cleaning or Advantage Maintenance had employed any undocumented workers. DIAZ denied all of the allegations against him and made several false statements.
In pleading guilty, DIAZ admitted that he had received cash kickbacks from his employees.
Judge Underhill scheduled sentencing for January 10, 2017, at which time DIAZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
California Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Raymond Carter, 72, of Rancho Cordova, Calif., pled guilty today to a charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Carter pled guilty in the U.S. District Court for the District of Columbia. He is to be sentenced Dec. 7, 2016, by the Honorable Tanya S. Chutkan. Carter faces a statutory maximum of 30 years in prison and a potential fine of up to $250,000. Under federal sentencing guidelines, he faces a likely range of 210 to 262 months in prison and a fine of up to $200,000. He also will be required to register as a sex offender for 25 years upon his release from prison.
According to the government's evidence, on May 6, 2016, Carter began communicating with an undercover officer with the FBI's Child Exploitation Task Force who purported to have access to a juvenile. Carter then began a series of text message conversations with the undercover officer in which he indicated that he would be traveling to Washington, D.C. As their conversations continued, he arranged to meet on May 10, 2016. When he arrived at a pre-arranged meeting place in Washington, D.C., he was arrested. He has been in custody ever since.
During his conversations with the undercover officer, according to the government’s evidence, Carter made reference to a previous arrest that led to his conviction in another federal child exploitation case. In that case, which was filed in the Eastern District of California, Carter was sentenced in 2005 to a three-year prison term and ordered to register as a sex offender.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Interim Chief Newsham praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Buffalo Woman Pleads Guilty to Access Device Fraud and Aggravated Identity TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Teria Baker, aka Tiara Baker, 24, of Buffalo, NY, pleaded guilty to conspiring to commit access device fraud and aggravated identity theft before U.S. District Judge Lawrence J. Vilardo. The access device fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory consecutive term of two years in prison.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that from October 2013 to December 2013, the defendant and others traveled to Walmart stores and other retail establishments in Western New York where they used unauthorized credit cards. The cards were obtained without the true account holder’s knowledge or authority. Baker and others purchased $500 store gift cards and other merchandise totaling in excess of $160,000.
The plea is the culmination of an investigation on the part of the United States Postal Inspection Service under the direction of Boston Division Inspector in Charge Shelly A. Binkowski, and the United States Secret Service, under the direction of Assistant Special Agent in Charge Thomas Braun.
Sentencing is scheduled for January 12, 2017 at 10:00 a.m. before Judge Vilardo.
Buffalo Man Convicted Following A Jury Trial of Threatening A Woman at the VARead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Carl Randle, 58, of Buffalo, NY, was convicted following a jury trial of menacing. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorneys Stephanie O. Lamarque and Mary Catherine Baumgarten, who handled the prosecution the case, stated that the defendant was at the Veterans Affairs Medical Center in Buffalo, NY on May 16, 2016 receiving medical services. While waiting in a service line for at a coffee kiosk, Randle attempted to engage a woman who was also purchasing coffee. The woman declined to engage the defendant at which time Randle pulled out a gun, waved it around and threatened the victim.
Subsequently, the defendant walked away from the coffee kiosk area and proceeded to the third floor the VA and hid the gun in the medical center’s chapel. Randle was apprehended a short time later by VA police officers, who also recovered the weapon brandished by Randle. The gun upon inspection proved to be a BB gun.
The verdict is the culmination of an investigation on the part of the Veterans Affairs Police Department, under the direction of Chief Acting Stephen Coville and Special Agents of the United States Veterans Affairs, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jeffrey G. Hughes.
Sentencing will be scheduled at a later date before U.S. Magistrate Judge Jeremiah J. McCarthy who presided over the trial of the case.
Brooklyn, New York, Man Sentenced to One Year in Prison for Role in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to one year and one day in prison on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Anthony “T.J.” Hanks, 37, was convicted in November 2015 of one count of conspiracy to transport stolen property in interstate commerce and three counts of interstate transportation of stolen property; his cousin, Daniel “Tokyo” Gatson, 44, was also convicted of conspiracy to transport stolen property in interstate commerce and 11 counts of interstate transportation of stolen property. They were convicted following a three-week trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
The conspiracy, led by Gatson, was responsible for 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
Typically, Hanks, Gatson and others would identify homes in affluent residential neighborhoods and conduct surveillance of the target residences, looking for indications that no one was home.
Before robbing a target residence, they would cut wires running to and from the residence, including phone, cable, and alarm connections. Then, while wearing masks and gloves, they would forcibly break in to the target residence, usually by smashing through the front door, while a getaway driver remained nearby in a rented minivan, often maintaining contact with one of the burglars inside the target residence by cell phone.
In addition to the prison term, Judge Martini sentenced Hanks to three years of supervised release and ordered to pay $2.1 million in restitution. Gatson was sentenced in June 2016 to 25 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark.
Defense counsel:
Hanks: Peter S. Gordon Esq., Forest Hills, New York
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Bangor Man Sentenced to Three Years for Distributing CrackRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Antonio Gordon, 32, of Bangor, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to three years in prison and three years of supervised release for distributing cocaine base, commonly known as “crack.”
According to Court records, on three occasions between December 2014 and January 2015, Gordon distributed a total of 19 grams of crack to a person cooperating with federal and state law enforcement authorities. The transactions took place in Bangor.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.
Aurora Cousins Sentenced to Lengthy Prison Terms for Conspiring to Provide Material Support to ISILRead the Press Release
CHICAGO — A federal judge in Chicago today imposed prison sentences of 30 years and 21 years for Aurora cousins who conspired to provide material support to a foreign terrorist organization.
U.S. District Judge John Z. Lee sentenced HASAN R. EDMONDS to 30 years, and JONAS M. EDMONDS to 21 years. The defendants are United States citizens and cousins from southwest suburban Aurora.
The sentencings were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John P. Carlin, Assistant Attorney General for National Security; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
The cases were investigated by the Chicago Joint Terrorism Task Force, which is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. Significant assistance was provided by U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Illinois State Police, the Aurora Police Department and the Illinois National Guard.
The pair pleaded guilty in December 2015 to conspiring to provide material support to the Islamic State of Iraq and the Levant, a foreign terrorist organization commonly referred to as ISIL, ISIS, or the Islamic State. Hasan Edmonds, 24, also pleaded guilty to one count of attempting to provide material support to a foreign terrorist organization, while Jonas Edmonds, 31, pleaded guilty to an additional count of making a materially false statement to a law enforcement officer regarding an offense of international terrorism.
The cousins admitted in their plea agreements that they devised a plan for Jonas Edmonds to carry out an armed attack at the U.S. Army National Guard base in Joliet. At the time the attack was planned, Hasan Edmonds was a member of the Army National Guard and had been training at the Joliet installation. The plot called for Hasan Edmonds to provide military uniforms for Jonas Edmonds to wear during the attack, and to give Jonas Edmonds a list of officers to kill.
Members of the Task Force arrested the cousins in March 2015 before an attack could be carried out.
“Had law enforcement not interceded, defendant’s attack could potentially have rivaled other ISIL-inspired attacks in Paris and California,” Mr. Jonas argued in the government’s sentencing memorandum in Jonas Edmonds’ case. “The impact of the attack – on National Guard members, their families, and this nation’s psyche – would have been devastating.”
In addition to the proposed attack on the National Guard base, the conspiracy also called for Hasan Edmonds to travel to the Middle East for the purpose of waging violence on behalf of ISIL. Jonas Edmonds expressed his support and excitement for Hasan Edmonds’ travel, believing that anyone who supported a mujahid (a fighter) was a mujahid himself, according to Jonas Edmonds’ plea agreement.
Ashburn Man Pleads Guilty to International Identity Theft and Money Laundering ConspiracyRead the Press Release
ALEXANDRIA, Va. –Amit Chaudhry, 44, of Ashburn, pleaded guilty today to two counts of conspiracy to commit money laundering, one count of aggravated identity theft, and one count of conspiracy to commit visa fraud for his role and participation in a sophisticated and large-scale identity theft and credit card fraud conspiracy.
According to the court documents, Chaudhry is an Indian national who became a naturalized U.S. citizen in 2005. Beginning in 2011, the defendant was part of a large, international wire fraud and money laundering conspiracy that involved processing stolen credit card numbers and laundering the proceeds through hundreds of bank accounts. Some of these bank accounts were set up in the name of shell companies, which did no real business. This fraud and money laundering conspiracy was carried out in part by teams of individuals working together in India, the United States, Europe and elsewhere. Some members would obtain the personal identifying information of real people; other members would obtain the credit card information from actual credit card customers, such as of American Express, and yet others would be responsible for electronically processing the stolen credit card transactions. Chaudhry helped laundering the proceeds of the credit card fraud and assisting co-conspirators who would come to the United States from India to open bank accounts used to hold and receive fraud proceeds.
Chaudhry also helped conceal and launder proceeds from a fraud scheme that targeted customers seeking cheap travel, including airline tickets and hotel reservations. Chaudhry helped to promote the fraudulent travel websites, including through mass mailings to prospective customers. Other members of the conspiracy would hold themselves out as prospective travel agents to customers. Customers’ travel itineraries would be purchased with stolen credit cards, which often resulted in those reservations being canceled. The customer’s money would be held and transferred among bank accounts controlled by members of the conspiracy, including Chaudhry. There were more than 1,000 victims from this fraud, which used various sophisticated means to conceal the identities of the conspirators.
The amount of the fraudulent proceeds generated by the money laundering conspiracy was more than $25 million.
Chaudhry was also involved in a separate money laundering conspiracy with Jacqueline Green-Morris, who previously pleaded guilty to money laundering conspiracy. Chaudhry and Green-Morris came up with a fraudulent billing scheme, whereby Chaudhry would submit inflated and fraudulent invoices for IT training to ActioNet, a contractor based in Virginia. Green-Morris used her position as an ActioNet employee to pay these fraudulent invoices. Chaudhry and Green-Morris split the fraud proceeds, which totaled approximately $4.1 million between 2012 and June 2016.
From at least 2001 and through at least June 2016, Chaudhry and others conspired to commit visa fraud by submitting false and fraudulent H-1B visa applications by and through various entities that the Chaudhry and others owned and controlled, including Networkxchange, Technologyxchange, Secure Networks, and the Knowledge Center. The conspiracy involved the submission of false and fraudulent applications and supporting documentation to the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS). Some of these documents were signed using the name John King, a journalist who is CNN’s chief national correspondent.
Chaudhry faces a maximum penalty of 20 years in prison when sentenced on Jan. 19, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service (USPIS); and Bill A. Miller, Director of the Diplomatic Security Service (DSS) for the U.S. Department of State, made the announcement after the plea was accepted by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Katherine L. Wong and Kimberly R. Pedersen are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-211.
Another meth mule pleads guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A California woman caught transporting a significant amount of crystal methamphetamine from California to West Virginia pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Rachel Arlene Garay, 18, of Indio, entered her guilty plea to interstate travel in furtherance of a drug crime.
Garay admitted that in March 2016, she and Danielle Dessaray Estrada, a codefendant, drove from Los Angeles to West Virginia with approximately five pounds of crystal methamphetamine. Garay also admitted that she maintained contact with codefendants Cesar Garcia and Rafael Garcia Serrato to find out instructions on where to deliver the drugs. Garay additionally admitted that on March 26, 2016, she and Estrada arrived in West Virginia and Garay removed the drugs from a hiding place in the vehicle and placed the drugs into a bag for delivery. Shortly after Garay moved the drugs, law enforcement officers in South Charleston stopped the vehicle and arrested Garay and Estrada. During the course of the arrest, law enforcement seized over 2,200 grams of methamphetamine which was later analyzed and had a substance purity level of 98%.
Garay faces up to five years in federal prison when she is sentenced on December 15, 2016.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating 14 defendants, including Garay. All of Garay’s codefendants are presumed innocent unless and until proven guilty in a court of law. Three other women who were used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, Kelly Newcomb, of Nevada, and Cara Linn Monasmith, also of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Estrada and Newcomb are scheduled to be sentenced on October 6, 2016. Monasmith is scheduled to be sentenced on November 8, 2016. Additionally, as part of this conspiracy, Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Daniel Ortiz-Rivera, a Mexican national, Velarian Sylvester Carter, of Beckley, Miguel Tafolla-Montoya, a Mexican national, and Brian Ashby, of Kanawha County, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine. Serrato and Garcia are scheduled to be sentenced on December 6, 2016. Ortiz-Rivera is scheduled to be sentenced on October 11, 2016. Carter is scheduled to be sentenced on October 13, 2016. Tafolla-Montoya is scheduled to be sentenced on December 8, 2016. Ashby is scheduled to be sentenced on December 13, 2016. Also, as part of this conspiracy, Marco Antonio Bojorquez-Rojas, a Mexican national, pleaded guilty to interstate travel in furtherance of a drug crime, and is scheduled to be sentenced on December 7, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Akron man indicted by federal grand jury in connection with Huntington overdosesRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio, man was indicted today in connection with a rash of overdoses in Huntington in August, announced United States Attorney Carol Casto. A federal grand jury sitting in Huntington indicted Bruce Lamar Griggs, 21, on one count of conspiracy to distribute heroin and fentanyl.
The indictment alleges that on or about August 15, 2016, at or near Huntington, Griggs, also known as “Benz,” conspired with others to distribute heroin and fentanyl. The indictment further alleges that serious injury resulted from the use of those drugs. A copy of the indictment, which is publicly available, is attached to this release.
Griggs has been in federal custody since his arrest in Ohio in late August on a federal criminal complaint. According to an affidavit submitted in support of the criminal complaint by Huntington Police Department (“HPD”) Sgt. Paul Hunter, the investigation of Griggs began August 15, 2016, when the HPD responded to a large number of overdoses in a short period of time in the area of St. Louis Avenue and Marcum Terrace. The affidavit states that one of the overdose victims identified the seller of the heroin as Griggs and that numerous others provided corroborating information linking the heroin to Griggs. The affidavit also states that surveillance video shows a person matching Griggs’ description engaging in activity indicative of hand-to-hand drug distribution in the Marcum Terrace area shortly before the overdoses began.
The investigation is being conducted by the HPD and the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
NOTE: The criminal complaint and the indictment in this case are only accusations. The defendant is presumed innocent unless and until proven guilty in a court proceeding.
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Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, FBI Director James B. Comey, U.S. Attorney Preet Bharara of the Southern District of New York, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director-in-Charge William Sweeney of the FBI's New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI's Newark Field Office and Commissioner James O’Neill of the New York Police Department (NYPD) announced that Ahmad Khan Rahami, aka Ahmad Rahimi, has been charged in the U.S. District Court for the Southern District of New York and the U.S. District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on Sept. 17, 2016, and Sept. 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the U.S. Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the U.S. District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Assistant Attorney General Carlin and U.S. Attorneys Bharara and Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force.
The prosecution in the Southern District of New York is being handled by Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney and James M. Donnelly, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rahami Ahmad Khan NY Complaint
Rahami Ahmad Khan NJ Complaint
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman for the District of New Jersey, U.S. Attorney Preet Bharara for the Southern District of New York, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force. Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit. Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara for the Southern District of New York, U.S. Attorney Paul J. Fishman for the District of New Jersey, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.
Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force. Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit. Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
19 September 2016
Wichita Massage Parlor Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor pleaded guilty Monday in federal court to harboring a Chinese woman who worked as a prostitute, Acting U.S. Attorney Tom Beall said.
Samir F. Elias, 60, Wichita, Kan., pleaded guilty to one count of harboring an alien for financial gain and one count of importation of an alien for prostitution. In his plea, he admitted the crimes occurred while he was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central.
Elias employed a Chinese woman with the initials F.Y. He was aware that the woman, who was not lawfully in the United States, engaged in the sale of sexual relations at the massage parlor. He personally reviewed online forums discussing the sale of sexual relations at his business. He harbored her at his residence near Maple and 119th West in Wichita, driving her to work and home again. He collected money from her he knew to be the proceeds of prostitution.
An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Sentencing is set for Dec. 12. Both parties have agreed to recommend a sentence of time served followed by two years of supervised release.
Beall commended the Wichita Police Department, Homeland Security Investigations (HSI) and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Resident Pleads Guilty to Engaging in the Sale of American Black Bear PartsRead the Press Release
Vu Johnnie Nguyen of Virginia Beach, Virginia, pleaded guilty today in U.S. District Court in Asheville, North Carolina, to federal charges for unlawfully trafficking in American black bear gall bladders and other American black bear parts, the Justice Department announced. The conviction arose from a year-long investigation into Nguyen’s unlawful purchase, sale and transportation of American black bear parts from the Western District of North Carolina. Bear gall bladders and paws are often used in Asian traditional medicine markets.
“The American Black Bear is a beautiful sight to behold by hikers and campers in the Blue Ridge Mountains and elsewhere in North America, and we will not allow their parts, such as gall bladders, to be taken and sold,” said Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division. “Black bears are a protected species under both U.S. and North Carolina laws and we will prosecute those who attempt to deal illegally in their parts."
“Nguyen repeatedly engaged in the illegal trafficking of American black bear gall bladders and other parts, a crime that is both reprehensible and a violation of federal and state laws,” said U.S. Attorney for the Western District of North Carolina Jill Westmoreland Rose. “The abundance of American black bears in western North Carolina mountains often attracts the attention of traffickers looking for a steady source of supply of bear parts to satisfy the ever growing demand in domestic and foreign black markets. Nguyen’s prosecution speaks to our commitment to protect our wildlife resources and to apply stringent punishment to those who ignore the law for profit.”
“When we think of the victims of wildlife trafficking, it’s elephants and rhinos in Africa, tigers in India and parrots in South America that usually come to mind; but there are many animals and plants here in the United States that are also repeatedly subjected to poaching for illegal international trade, including black bear,” said U.S. Fish and Wildlife Service Director Dan Ashe. “This case shows our continued commitment to bringing criminals who deprive our children of the chance to see these magnificent creatures to justice.”
Nguyen entered his guilty plea before U.S. District Court Judge Dennis Howell for the Western District of North Carolina —specifically, a felony charge under the Lacey Act. The Lacey Act is the federal law that makes it illegal to transport or sell wildlife taken, possessed, transported or sold in violation of state law. Animal parts, like American black bear gall bladders, paws, claws and meat are considered wildlife under both the Lacey Act and North Carolina law and under North Carolina law, it is illegal for anyone to possess for sale or buy any bear or bear parts.
According to the documents filed with the court, Nguyen illegally engaged in conduct that involved the sale and purchase and intent to sell 18 American black bear gall bladders, 16 American black bear claws, two American black bear paws and approximately 50 pounds of American black bear meat in 2014. Nguyen further admitted that on three separate occasions—Jan. 6, 2014, March 5, 2014, and Dec. 17, 2014—he knowingly transported or caused to be transported American black bear parts when he knew that they were sold in violation of North Carolina law.
Nguyen faces a maximum sentence of five years in prison and a $250,000 fine. As part of the agreement, he has agreed to publish a statement apologizing for his illegal conduct.
The case is prosecuted by the Justice Department’s Environmental Crimes Section Trial Attorney Shennie Patel and the U.S. Attorney’s Office for the Western District of North Carolina in Asheville. The case was investigated by the U. S. Fish and Wildlife Service’s Office of Law Enforcement and the North Carolina Wildlife Resources Commission Division of Law Enforcement.
United States Attorney Leaving OfficeRead the Press Release
HARRISBURG-United States Attorney Peter J. Smith, 75, of Camp Hill, Pennsylvania, has submitted his resignation and announced his retirement, effective October 1, 2016.
Mr. Smith is retiring after serving for more than six years as the chief federal law enforcement officer for the Middle District of Pennsylvania, which consists of 33 counties in central Pennsylvania and has offices in Harrisburg, Scranton and Williamsport. Mr. Smith was appointed United States Attorney for the Middle District of Pennsylvania by President Barack Obama in June 2010.
Born in Wilkes-Barre and a graduate of King’s College and Georgetown University Law School. Mr. Smith previously served as an Assistant United States Attorney in the Eastern District of Pennsylvania from 1976 to 1987, as Pennsylvania’s first Inspector General from 1987-1991 under Governor Robert P. Casey, Sr., and in the Pennsylvania Auditor General’s Office and Treasury Department under Senator Robert P. Casey, Jr. from 1997 to 2009. Mr. Smith served in the U.S. Navy between 1962-1966 and was honorably discharged with the rank of Lieutenant (J.G.).
As United States Attorney, Mr. Smith has directed major federal criminal and civil litigation: He oversaw the successful completion of significant public corruption cases, including two Luzerne County judges convicted in the “Kids for Cash” investigation, two Lackawanna County commissioners convicted in a “pay to play” scheme, a State Senator convicted for conspiracy to commit mail fraud and tax evasion, the Marketing Director of the State Liquor Control Board, convicted for taking bribes from vendors doing business with the LCB, and the continuing pay-to-play investigation related to Pennsylvania’s Treasury Department.
During Mr. Smith’s term, the office’s Criminal Division designed and implemented programs in furtherance of the Department of Justice “Smart on Crime” initiative. For example, the office has emphasized the prosecution of violent crime, gun crimes, and drug crimes by recidivists in high-crime areas within the district. Last year, 21 members of the violent “Southside” street gang based in York, Pennsylvania were convicted in a landmark RICO prosecution which culminated in a 7-week jury trial involving 12 gang members. Another “Smart on Crime” initiative initiated by the office under Mr. Smith is focused on the heroin and opioid abuse epidemic plaguing the nation and the district. The office has adopted a zero tolerance policy for prosecuting these cases but has also conducted various community outreach programs, including a Heroin and Opioid Abuse Symposium scheduled for today at the Central Penn College in Enola, Pennsylvania. These initiatives have been undertaken in close coordination with federal, state and local agencies including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Pennsylvania State Police, local police departments and District Attorneys.
In the area of white-collar crimes, the office continued its nationally recognized work as a leader in prosecuting cross-border advance fee/mass marketing fraud cases in coordination with the United States Postal Inspection Service. This decade-long project has been highlighted by the prosecution of approximately 40 Western Union and MoneyGram agents and the creation of a $100 million fund as part of a settlement agreement between the United States Department of Justice and MoneyGram. The fund is being used to reimburse hundreds of victims of fraud schemes in the District and throughout the country.
Smith’s term also saw the office’s successful prosecution of owners and operators of Schuylkill Products, who were convicted in the largest disadvantaged business enterprise fraud in the history of the U.S. Department of Transportation. The Penn National Race Track investigation has resulted in the conviction of trainers, veterinarians and track officials involved in the rigging of horse races. The office, working with the Internal Revenue Service, the U.S. Department of Housing and Urban Development, the Federal Bureau of Investigation and local law enforcement, completed the prosecution of the developer in the multi-million dollar Harrisburg Capital View fraud case.
The office’s Civil Division played the lead role in the effort by the Department of Justice to settle a long-term dispute between federal agencies and the Commonwealth of Pennsylvania related to Medicaid funds and managed care and nutrition assistance for aliens. As a result, the State agreed to a settlement which included a $48 million reimbursement to the federal government.
The office expanded its efforts and resources to address criminal and civil health care fraud and is working closely with the Drug Enforcement Administration and Pennsylvania state agencies to prosecute and penalize illegal diversion of prescription drugs.
Mr. Smith’s retirement plans include family time, travel and armchair oversight of the major league baseball post-season.
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U.S. Attorney’s Office for the Eastern District of Tennessee Supports National Heroin and Opioid Awareness WeekRead the Press Release
KNOXVILLE, Tenn. - Attorney General Loretta Lynch has designated the week of September 19, 2016, as National Heroin and Opioid Awareness Week. Accordingly, a large number of U.S. Attorney’s offices, including the Eastern District of Tennessee, are joining with federal law enforcement, engaging local community partners, and collaborating with medical professionals and public health officials, to help combat this growing epidemic.
On August 2, 2016, the U.S. Attorney’s Office sponsored an Education and Prevention Summit to Combat Opioid Addiction in East Tennessee at the Bijou Theater in downtown Knoxville. Participants included representatives from the Appalachia High Intensity Drug Trafficking Area, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Knoxville City Mayor’s Office, Knox County Medical Examiner, Knoxville Police Department, Knox County District Attorney’s Office, Metro Drug Coalition, Tennessee Bureau of Investigation (TBI), and TBI Tennessee Dangerous Drug Task Force. The diverse group of attendees included medical professionals, pharmacists, health insurance providers, local, state and federal law enforcement and prosecutors, service providers, educational professionals and other local, state and federal officials.
In addition to panel discussions on the opioid addiction problems in east Tennessee and the law enforcement legislative and prosecutorial efforts to combat this growing problem, the summit highlighted the recent documentary Chasing the Dragon: The Life of an Opiate Addict, which was produced by the FBI and DEA to help educate students and young adults about the dangers of opioid addiction. The 45-minute film, whose title refers to the never-ending pursuit of the original or ultimate high, features stark first-person accounts told by individuals who have abused opioids or whose children have abused opioids, with tragic consequences.
By viewing the documentary and participating in the after-discussions, attendees of the east Tennessee summit now have the knowledge and ability to act as messengers within the entire district to promote the documentary to school officials and suggest joint events for students, parents and educators at which it is featured and discussed.
To further encourage this effort, the documentary was also shared with local, state and federal law enforcement at the recent 2016 Intelligence Analysis Sharing: A Candid Look at Community Policing and DOJ Smart on Crime Initiative for the Eastern District of Tennessee, held in Gatlinburg, August 8-9, 2016. Additionally, staff members of the U.S. Attorney’s Office were invited to bring their families for an airing and discussion of the documentary during an upcoming district-wide office training event.
The video, Chasing the Dragon: The Life of an Opiate Addict, can be found on either the FBI or DEA websites using the following links: https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction or https://www.dea.gov/media/chasing-dragon.shtml.
During recently held discussions, law enforcement representatives across the district agreed that the rise of heroin use and the abuse of prescription opioids in the United States is currently our biggest challenge to public health and safety. It threatens communities, families, and children. Talking points provided by the Department of Justice, which are attached to this release, provide additional confirmation of the heroin, fentanyl, and prescription drug problems in the United States.
Now is the time for the public, law enforcement, medical professionals, law enforcement and service providers and other community leaders to work together to halt this growing epidemic. Only through action can awareness of the dangers posed by the consumption of prescription opioids, and a growing trend of heroin and fentanyl use be raised.
U.S. Attorney Nancy Stallard Harr is committed to holding those responsible who are poisoning our communities with these highly addictive drugs. “The U.S. Attorney’s Office will continue to work together with law enforcement to prosecute federal offenses relating to the unlawful distribution of heroin, fentanyl, and prescription opioids,” stated U.S. Attorney Harr. She further added, “We will also work with local, state and federal leaders to help educate the public regarding he dangers involved with the improper use and abuse of these powerful substances.”
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U.S. Attorney Polite Announces Training to Enhance Security in Local SchoolsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that the U.S. Attorney’s Office for the Eastern District of Louisiana – in collaboration with the U.S. Department of Homeland Security and the University of Findlay – will be co-hosting a free training session entitled “Crisis Management for School-Based Incidents” on Tuesday, September 20, 2016, from 8:00 am – 5:00 pm. Topics include:
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Introduction to Incident Planning and Preparedness
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Proactive Threat Mitigation
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Incident Response
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Incident Recovery
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Vulnerability Assessments
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Threat Assessment Management
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Incident Defusing and Debriefing
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Parent Reunification
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Anniversaries, Memorials, “Copy-Cats”
WHO: Rural Police and Sheriff Departments, School Administrators, School Resource Officers,
Counselors, and others involved in school safety and security
WHEN: Tuesday, September 20, 2016 from 8:00 am – 5:00 pm
WHERE: U.S. Attorney’s Office for the Eastern District of Louisiana, 650 Poydras Street, Suite 1600,
Winters Conference Room
There is no registration fee for this event.
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U.S. Attorney Parker to Participate in Prescription Town Hall in Keller, TexasRead the Press Release
DALLAS – U.S. Attorney John Parker, of the Northern District of Texas, will participate in a Prescription Town Hall meeting tomorrow evening, Tuesday, September 20, 2016, in Keller, Texas, concerning prescription drug abuse. Entitled, “When the Prescription Becomes the Problem,” the presentation will be facilitated by Dr. Don Teater, the Former Medical Advisor for the National Safety Council. The meeting is sponsored by Stay on Track Challenge of Tarrant County and the Keller Independent School District, and it is intended for all members of the Keller community. It will be held at the Keller Education Center, located at 350 Keller Parkway.
Dr. Teater will begin the Town Hall with an overview of the prescription opiate epidemic. U.S. Attorney Parker will then introduce a public service announcement (PSA) his office released earlier this year concerning the dangers of prescription drug abuse and ways parents can keep their children safe. Next, there will be a panel presentation by experts from the law enforcement community, including the Drug Enforcement Administration and the Keller Police Department, as well as representatives from various health and social services field.
Prescription drug abuse has long been a priority of the administration, and last week, President Obama proclaimed September 18-24, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. Throughout the week, officials with the Department of Justice throughout the country will participate in hundreds of events highlighting the importance of prevention, enforcement and treatment.
U.S. Attorney Parker will also participate in a symposium on Thursday, September 22, 2016, also designed to raise awareness of the opiate epidemic. The day-long symposium, “When the Prescription Becomes the Problem: A Community Response to the Opiate Epidemic,” is intended to help mobilize community leaders and stakeholders to reduce opiate misuse and abuse in North Texas. It is being hosted by the Keller Stay on Track Coalition and is being held at the Hurst Conference Center, 1601 Campus Drive, from 7:30 a.m. to 4:30 p.m.
In addition to U.S. Attorney Parker, the Thursday’s symposium will feature national experts including Dr. Teater and award-winning journalist Sam Quinones, author of Dreamland: The True Tale of America’s Opiate Epidemic. Others participating in the symposium will include federal and state representatives who will discuss medical, prevention, and treatment perspectives.
Both events are being sponsored by the Keller Stay on Track Coalition, a program of Challenge of Tarrant County. It brings Keller community leaders and stakeholders together to address substance abuse prevention priorities, including prescription drug misuse and abuse in adolescents and young adults, underage drinking and binge drinking.
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U.S. Attorney Invited to Speak at AGA’s Guam Professional Development ConferenceRead the Press Release
Alicia A.G. Limtiaco, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), was invited to be speak at the Association of Government (AGA) 8th Biennial Guam Professional Development Conference held on September 12-14, 2016, at the Westin Resort Guam. The theme of the conference was “Tools, Trends, and Techniques in Today’s Financial Environment.”
U.S. Attorney Limtiaco’s presentation was on Cybersecurity Awareness. U.S. Attorney Limtiaco shared that cybersecurity is a top priority for the U.S. Government and that securing the nation’s networks and information from exploitation and damage requires improved information-sharing and enhanced coordination between the private and public sectors. To that end, the U.S. Department of Justice (DOJ) meets with companies like those in attendance at the conference to discuss the potential cybersecurity threats they face and what DOJ and its federal partners can do to help defend, respond, enforce, prevent and protect our community and our country. U.S. Attorney Limtiaco also discussed cybercrimes such as identity theft and other online fraud schemes and the importance of protecting one’s privacy on social media.
The training was attended by over 130 participants from Guam and our neighboring islands of Saipan, Northern Mariana Islands, Pohnpei, Federated States of Micronesia, the Republic of Palau and the Republic of the Marshall Islands.
Shown here are AGA Guam President-Elect Clariza Mae Roque, AGA National President Douglas A. Glenn, U.S. Attorney Alicia Limtiaco and AGA Guam President Yukari B. Hechanova U.S. Attorney Alicia Limtiaco addressing participants at the AGA 8th Bieenial Guam Professional Development ConferenceU.S. Attorney Deirdre M. Daly on the Opioid EpidemicRead the Press Release
The Perfect Storm
Twenty-three-year-old Louis Ahearn was not a heroin addict. Until shortly before his death earlier this year, the Derby resident had never used the drug. A dental procedure and a short search for relief from his pain led him to a local drug dealer who convinced him that heroin was a far cheaper alternative to prescription pills. Two weeks later, the same dealer gave Louis a free bag as payment for a ride. That bag turned out to contain pure fentanyl. Louis died. He was a gentle soul and the light of many lives. The young dealer who gave him the fentanyl is now serving a six-year term in federal prison, while Louis’s family still searches for answers, like so many other families across Connecticut who have experienced similar tragedies.
In 2012, 357 Connecticut residents died from accidental drug overdoses. Fentanyl played a part in only 14 of those deaths; heroin contributed to 195 of the overdose deaths. In 2016, the dynamics have radically changed for the worse. The Connecticut Office of the Chief Medical Examiner estimates that this year 888 people will die from overdoses, pure heroin will cause only 80 of those deaths, and fentanyl will play a role in a staggering 446 of them. In Connecticut, fentanyl is the largest single contributor to the dramatic rise in opioid-related overdose deaths. This potent and lethal chemical is present in much of the heroin sold on our streets.
This dramatic rise in the use of fentanyl as an additive -- and even replacement for heroin -- comes at a time when opioids are prescribed at high rates for everything from school sports injuries to dental procedures. High school students have easy access to legally prescribed opiates. A sibling is injured in a football game. A friend has his wisdom teeth pulled. A parent is recovering from surgery. A neighbor has chronic back pain. There is no question this medicine can be an excellent tool for pain management, but it is also highly addictive. Four out of five new heroin users started with prescription opioids. As young people abuse opiates, their source of legally prescribed pills inevitably disappears, and they are left to scramble for alternatives. The street price for a 40 milligram oxycodone pill is $40, whereas a street-level heroin dealer distributes individual bags for as little as $5. The teenager who began experimenting with his father’s prescribed Vicodin has now developed a heroin habit. And more and more often, this heroin is mixed with, or replaced by, fentanyl.
In February 2016, the U.S. Attorney’s Office and the Drug Enforcement Administration developed a statewide initiative to combat this epidemic. Together with local police departments, we are investigating overdose deaths across the state and targeting dealers who sell heroin and fentanyl. We have developed a statewide protocol for handling evidence in overdose cases. In the past six months, the DEA has investigated more than 70 overdose deaths in Bridgeport, Danbury, Derby, East Haddam, Greenwich, Groton, Manchester, Middlebury, Middlefield, Monroe, New Haven, New London, Newtown, North Haven, Norwalk, Norwich, Old Saybrook, Shelton, Stamford, Stonington, Torrington, Vernon, Waterford, West Hartford, West Haven, Weston, and Woodbridge. These investigations have resulted in the federal prosecution of over 40 dealers.
But prosecutions alone will never adequately address the underlying problem that increasing numbers of young people quietly are becoming addicted to opioids. Our Office has dedicated significant resources to awareness and prevention, focusing our efforts on high school students and their parents. Across the state, we have encouraged superintendents and principals to incorporate into their curricula the recently-created FBI/DEA documentary entitled Chasing the Dragon, which chronicles the experiences of individuals impacted by the opioid crisis.
President Obama has designated this week Prescription Opioid and Heroin Epidemic Awareness Week in recognition of those we have lost and those struggling with addiction, and in the hope of creating greater awareness throughout our nation of this devastating epidemic. This week and in the weeks to come, our prosecutors will present at schools throughout the state as part of our awareness campaign. This Wednesday, September 21 at 5:30 p.m. at Kennedy High School in Waterbury, we will hold an opioid awareness conference that will include a panel of doctors, and a panel of parents who have lost children to overdoses. Our goal is to educate parents, teachers and students about the consequences of opioid abuse. All are welcome to attend.
Deirdre M. Daly
U.S. Attorney, District of Connecticut
September 19, 2016Two Mexican Nationals Plead Guilty in Fraudulent Identification Document ConspiracyRead the Press Release
FRESNO, Calif. — Two Fresno residents pleaded guilty today to a scheme that involved the manufacture and sale of fraudulent identification documents, including fraudulent alien registration receipt cards and social security cards, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Francisco Javier Hidalgo-Flores, 25, pleaded guilty to conspiring to produce, transfer, possess, and sell false identification documents, and co‑defendant Lizet Amairani Ramirez-Zazueta, 26, pleaded guilty to transferring false identification documents.
According to the plea agreements, between June 2015 and June 17, 2016, Hidalgo-Flores manufactured fraudulent identification documents, including social security cards and alien registration receipt cards, for customers who placed orders and paid as much as $150 for a set of the fraudulent documents. Hidalgo-Flores and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators in Fresno and Madera Counties.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Motor Vehicles, Investigations Division. Assistant United States Attorney Christopher D. Baker is prosecuting the case.
On June 16, 2016, Hidalgo-Flores and Ramirez-Zazueta and four co-defendants were indicted for the scheme. Charges are pending against the remaining co-defendants. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Hidalgo-Flores and Ramirez-Zazueta are scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O'Neill on December 12, 2016. Hidalgo-Flores faces a maximum statutory penalty of five years in prison and a $250,000 fine; Ramirez-Zazueta faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The United States Settles False Claims Act Case with Nursing Home Company to Settle Allegations of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
SAN FRANCISCO- North American Health Care, Inc. (NAHC), its chairman of the board, John Sorenson, and its senior vice president of Reimbursement Analysis, Margaret Gelvezon, have agreed to pay a total of $30 million to resolve allegations that they violated the False Claims Act by causing the submission of false claims to government health care programs for medically unnecessary rehabilitation therapy services provided to residents at NAHC’s skilled nursing facilities (SNFs), announced United States Attorney Brian J. Stretch. Under the settlement agreement, NAHC will pay $28.5 million. Mr. Sorensen has agreed to pay $1 million and Ms. Gelvezon has agreed to pay $500,000.
NAHC is a private, for-profit company headquartered in Orange County, California, that has service agreements to operate 35 SNFs, most of them in California, that provide inpatient rehabilitation services, including physical, occupational, and speech therapy. The United States contends that NAHC caused false claims to be submitted to Medicare and TRICARE for medically unnecessary rehabilitation therapy services provided to residents of the NAHC nursing homes, including keeping the residents at the SNFs longer than necessary. The United States alleged that this conduct occurred during the period from January 21, 2005 to October 31, 2009 for the 35 SNFs, and continued during the period of November 1, 2009 to December 3, 2011, for three of the SNFs located in the Northern District of California: Apple Valley Convalescent, Petaluma Care and Rehab, and Linda Mar Care Center.
The United States also contends that Mrs. Gelvezon, in her capacity as an officer of NAHC, contributed to this conduct by creating the improper billing scheme, and that Mr. Sorensen, in his capacity as a Chairman of the Board of NAHC, reinforced this scheme at the NSFs.
In addition to the monetary settlement, NAHC has also entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) which applies to all facilities managed by NAHC and requires an independent review organization to annually review therapy services billed to Medicare.
“This office is committed to safeguarding the federal health care programs and the patients who are enrolled in them. Skilled nursing facilities such as NAHC treat some of the most vulnerable patients in the health care system. These facilities, and the individuals who run them, must be held accountable when they provide treatment based on financial motivations instead of the patients’ needs,” said Brian J. Stretch, United States Attorney for the Northern District of California.
“Medicare patients and those insured by TRICARE are entitled to receive care necessary for their clinical needs and not the financial needs of their health providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Health care providers will be held accountable if they bill for unnecessary services or treatment.”
“Providing medically unnecessary services to this fragile population can be taxing both for the patient and the program,” said Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven Ryan. “Today’s settlement should send a message to others engaging in these schemes that we will pursue justice for our beneficiaries and the programs.”
Special Agent in Charge Chris Hendrickson, of the Defense Criminal Investigative Service (DCIS) Western Field Office, commented for TRICARE, “DCIS and our law enforcement partners will steadfastly pursue those who violate the public’s trust by corrupting the federal health care system, to include the Department of Defense TRICARE program. Health care fraud compromises the well-being of the general public and undermines the efforts of the Department of Defense to support our men and women in uniform.” TRICARE is a United States health benefit plan for uniformed personnel, retirees, their dependents and reserve components.
FBI Special Agent in Charge John F. Bennett said, “this settlement reinforces the FBI San Francisco Division’s commitment to working with our law enforcement partners to pursue those who seek to harm the integrity of our federal health care programs for personal gain. Programs such as TRICARE and Medicare are in place to treat and take care of members of our community including our servicemen, servicewomen and their loved ones and the elderly. We will not tolerate such a gross violation of public trust,” said Special Agent in Charge John F. Bennett.
Assistant United States Attorney Gioconda Molinari handled the case with the assistance of Paralegal Lucille Yee. This case is the result of an investigation by the U.S. Attorney’s Office, the Civil Division’s Commercial Litigation Branch of the U.S. Department of Justice, the Federal Bureau of Investigation, and HHS-OIG, and DCIS.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Taylor County Man Sentenced to 135 Months in Federal Prison for Enticing a Minor to engage in Sexual Activity with HimRead the Press Release
ABILENE, Texas — William David Harden, 65, formerly of Tye, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 135 months in federal prison, following his guilty plea in May 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Harden has been in custody since his arrest on a federal indictment in August 2015.
According to documents filed in the case, from approximately May to July 2015, Harden engaged in a cell phone texting relationship with a female minor, under age 17, in which he knowingly persuaded, induced, and enticed her to engage in sexual activity with him. Specifically, in early July 2015, Harden knowingly persuaded, induced, and enticed, and attempted to persuade, induce and entice this minor female to engage in sexual activity with him, suggesting to the minor female that by doing so, she could repay him for arranging to get a motel room where she could meet up with a friend.
At today’s sentencing hearing, Judge O’Connor also ordered that Harden forfeit his 2008 pickup truck that he used to transport this minor female and another minor to that motel.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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Taylor County Man Sentenced to 135 Months in Federal Prison for Enticing a Minor to Engage in Sexual Activity with HimRead the Press Release
ABILENE, Texas — William David Harden, 65, formerly of Tye, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 135 months in federal prison, following his guilty plea in May 2016 to one count of enticement of a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Harden has been in custody since his arrest on a federal indictment in August 2015.
According to documents filed in the case, from approximately May to July 2015, Harden engaged in a cell phone texting relationship with a female minor, under age 17, in which he knowingly persuaded, induced, and enticed her to engage in sexual activity with him. Specifically, in early July 2015, Harden knowingly persuaded, induced, and enticed, and attempted to persuade, induce and entice this minor female to engage in sexual activity with him, suggesting to the minor female that by doing so, she could repay him for arranging to get a motel room where she could meet up with a friend.
At today’s sentencing hearing, Judge O’Connor also ordered that Harden forfeit his 2008 pickup truck that he used to transport this minor female and another minor to that motel.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Abilene Police Department, and the Taylor County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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Tahlequah Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that ASHLEY NOEL STEELE, age 30, of Tahlequah, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Information alleged that on or about December 12, 2015, within the Eastern District of Oklahoma, the defendant, ASHLEY NOEL STEELE, did knowingly and intentionally conspire, confederate and agree with others known and unknown to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 5 years or more than 40 years imprisonment, up to a $5,000,000 fine or both.
Assistant United States Attorney Christopher Wilson represented the United States.
Social Security Fraudster ConvictedRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that MITCHELL STERLING HOLMES, age 43, of Port Allen, Louisiana, pled guilty before U.S. District Judge Shelly D. Dick to making false statements to a Federal agency, in violation of Title 18, United States Code, Section 1001. The sentencing date has not yet been set.
During the guilty plea hearing, HOLMES admitted that, after being appointed as an authorized payee for Social Security Administration (SSA) benefits on behalf of his minor child, he submitted a required report to the SSA that falsely stated, among other things, that he used benefit payments paid to him on behalf of his minor child when, in fact, he did not use the payments for the care and support of said child. HOLMES admitted that, as a result of his false statements, he caused a loss to the SSA of almost $90,000.00.
U.S. Attorney Green stated: “Federal benefit programs are often critical to ensuring that children in need, the elderly, and those struck by disaster are afforded a safety net – a fact that the Baton Rouge region knows all too well after the recent flooding. Defrauding these programs, and by extension the taxpayers who pay for them, is outrageous and will not be tolerated. Fraudsters not only take money from the programs, but their actions threaten to distract from the programs’ positive results. My office will continue to work with the Social Security Administration’s Office of Inspector General and our other federal, state, and local law enforcement partners, to aggressively pursue such matters.”
Special Agent-in-Charge Robert G. Feldt of the Social Security Administration, Office of Inspector General, stated: “The Social Security Administration, Office of Inspector General, will continue to tirelessly investigate and bring to justice those that commit benefit fraud and misuse their position of trust to victimize children.”
This ongoing investigation is being conducted by the Dallas Field Division of the Social Security Administration’s Office of Inspector General and the United States Attorney’s Office for the Middle District of Louisiana. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Shiprock Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Matthew Yazzie, 27, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today in federal court in Albuquerque, N.M., to 78 months in prison followed by three years of supervised release for his conviction on assault charges.
Yazzie was arrested on Sept. 21, 2015, on a federal indictment charging him with assaulting two women and a man on June 13, 2015, in Indian Country in San Juan County, N.M. According to the indictment, the victims suffered serious bodily injuries as a result of the assaults.
On March 4, 2016, Yazzie pled guilty to the indictment without the benefit of a plea agreement. In its proffer of evidence, the United States indicated that Yazzie assaulted the victims by crashing the vehicle he was driving while under the influence of alcohol.
This case was investigated by the Farmington office of the FBI, the New Mexico State Police and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez prosecuted the case.
Saco Woman Pleads Guilty to EmbezzlementRead the Press Release
Contact: Rick Murphy
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced Ann Marie Williams, 52, of Saco, Maine, pleaded guilty today in U.S. District Court to embezzling funds from the City of Westbrook.
According to court records, between July of 2015 and April of this year, Williams embezzled $118,000 of cash tax receipts while employed as the City’s tax collector.
Williams faces up to ten years in prison, three years of supervised release and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Federal Bureau of Investigation.
Rusk County Man Sentenced for Longview Bank RobberyRead the Press Release
TYLER, Texas – A 54-year-old Mt. Enterprise, Texas man has been sentenced to federal prison for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Patrick Terry Gilbert pleaded guilty on May 27, 2016 to armed bank robbery and was sentenced to 180 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 15, 2016. Gilbert was also ordered to pay restitution in the amount of $16,134.00.
According to information presented in court, on Oct. 23, 2015, Gilbert entered the Capital One Bank in Longview, Texas, dressed in dark clothing, wearing a “Scream” mask and armed with a short-barreled shotgun. Gilbert approached two bank tellers, pointed the shotgun at them and demanded all of their money. Gilbert took more than $15,000 from the tellers and left the bank. Several weeks later, Gilbert was arrested in Nacogdoches County, Texas. He was indicted by a federal grand jury in November 2015.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Longview Police Department, and the Nacogdoches County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Frank Coan.
Redding Woman Admits Stealing More Than $250K from EmployerRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that LISA LANDMAN, 48, of Redding, waived her right to indictment and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, LANDMAN was the bookkeeper for a Connecticut company. Between November 2010 and November 2013, LANDMAN defrauded her employer by authorizing and initiating at least 33 wire transfers from the company’s business bank account into her own personal credit card account. In total, LANDMAN transferred more than $250,000 from the company’s account to her personal credit card account and used the funds for personal purchases including jewelry, clothing, vacations, spa treatments, fitness equipment and entertainment tickets.
When she is sentenced, LANDMAN faces a maximum term of imprisonment of 20 years and a fine of up to $250,000. A sentencing date has not been scheduled.
This matter is being investigated by the U.S. Secret Service, the Stamford Police Department and the Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Prescription Opioid and Heroin Epidemic Awareness Week September 18-24, 2016Read the Press Release
In recognition of Prescription Opioid and Heroin Epidemic Awareness Week, the United States Attorney’s Office is hosting events across South Dakota. The community forums are designed to highlight a unique, realistic perspective on the impact of prescription drug and opioid abuse.
Each event will feature a screening of “Chasing the Dragon: The Life of an Opiate Addict” - a documentary film collaboratively produced by the Federal Bureau of Investigation and the Drug Enforcement Administration, in response to increasing prescription painkiller and opioid drug abuse across the nation.
Following each movie screening will be an interactive panel discussion. The movie is approximately 50 minutes in length. The events are as follows:
Sioux Falls:
Tuesday, September 20, 2016, at 6:30 PM
Kresge Recital Hall, Augustana University, located at 2120 S. Grange Avenue
Rapid City:
Wednesday, September 21, 2016, at 6 PM
Elks Theatre, located at 512 6th Street
Pierre:
Thursday, September 22, 2016, at 7:00 PM
T.F. Riggs High School Theater, located at 1010 E. Broadway Avenue
The film, which is designed to better educate students and young adults about the dangers of these drugs and the tragic consequences that often accompany addiction, debuted nationally in February 2016. According to data in the film, nearly 46,000 people die from drug use annually in the United States, and about half of those deaths are related to opiate drug abuse. At least 78 Americans die every day from an opioid overdose – it affects all ages, all socio-economic groups, all over the country, including South Dakota.
Individuals and community groups are encouraged to attend. The event is free and open to the public.
The President has officially proclaimed September 18-24 as Prescription Opioid and Heroin Epidemic Awareness Week. The Presidential Proclamation is attached.
For further information and resources on this topic, visit DEA’s website: https://getsmartaboutdrugs.com
Prescription Opioid and Heroin Epidemic Awareness Week EventsRead the Press Release
RALEIGH/GREENSBORO/CHARLOTTE – The United States Attorney’s Offices for the Eastern, Middle, and Western Districts of North Carolina, in partnership with the Drug Enforcement Administration and the Federal Bureau of Investigation, announce the formation of the Federal Opioid Reduction Alliance for North Carolina, a coordinated state-wide effort to address the increasing dangers posed to the residents of North Carolina by heroin and opiate distribution, abuse, and overdose. The Alliance will work together with State and local partners to increase awareness, prevention efforts, and prosecutions related to heroin and other opioids in North Carolina. By implementing the attached Strategic Initiative, the United States Attorneys’ Offices hope to complement existing efforts across the state and enhance the ability of law enforcement to keep our communities safe.
In conjunction with the announcement of the Alliance, the United States Attorneys’ Offices will hold several events in observance of Prescription Opioid and Heroin Epidemic Awareness Week, September 18-24, 2016.
Within the Eastern District:
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September 20, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, and Federal Law Enforcement Agency heads within the Eastern District of North Carolina are welcome to attend.
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September 22, 2016 - A Community Town Hall at the Pullen Park Community Center in Raleigh from 6:00 – 8:00 p.m. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
Within the Middle District:
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September 20, 2016 - A Opiate Awareness Meeting at the Wesleyan Academy, Performing Arts Center, 1915 N. Centennial Ave., High Point, NC. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
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September 22, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, State and Federal Law Enforcement Agency heads within the Middle District of North Carolina are welcome to attend.
Within the Western District:
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September 19, 2016 – “We Are a Community United Against Heroin,” is a daylong heroin and opiate addiction awareness summit hosted by the U.S. Attorney’s Office in partnership with the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department, on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
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Prescription Opioid and Heroin Epidemic Awareness Week EventsRead the Press Release
CHARLOTTE/RALEIGH/GREENSBORO – The United States Attorney’s Offices for the Western, Middle, and Eastern Districts of North Carolina, in partnership with the Drug Enforcement Administration and the Federal Bureau of Investigation, announce the formation of the Federal Opioid Reduction Alliance for North Carolina, a coordinated state-wide effort to address the increasing dangers posed to the residents of North Carolina by heroin and opiate distribution, abuse, and overdose. The Alliance will work together with State and local partners to increase awareness, prevention efforts, and prosecutions related to heroin and other opioids in North Carolina. By implementing the attached Strategic Initiative, the United States Attorneys’ Offices hope to complement existing efforts across the state and enhance the ability of law enforcement to keep our communities safe.
In conjunction with the announcement of the Alliance, the United States Attorneys’ Offices will hold several events in observance of Prescription Opioid and Heroin Epidemic Awareness Week, September 18-24, 2016.
Within the Western District:
-
September 19, 2016 – “We Are a Community United Against Heroin,” is a daylong heroin and opiate addiction awareness summit hosted by the U.S. Attorney’s Office in partnership with the DEA, the Eastern Band of Cherokee Indians and the Cherokee Indian Police Department, on the rising of prescription opiates and heroin abuse and the epidemic of heroin related overdose deaths on the reservation and surrounding areas in western North Carolina. This summit will educate community members, law enforcement and service providers about opiate and heroin distribution, the physiological effects of the drugs and introduce the community to interventions and best practices that are available within the boundaries of the EBCI and the western North Carolina region.
Within the Eastern District:
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September 20, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, and Federal Law Enforcement Agency heads within the Eastern District of North Carolina are welcome to attend.
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September 22, 2016 - A Community Town Hall at the Pullen Park Community Center in Raleigh from 6:00 – 8:00 p.m. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
Within the Middle District:
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September 20, 2016 - A Opiate Awareness Meeting at the Wesleyan Academy, Performing Arts Center, 1915 N. Centennial Ave., High Point, NC. The opiate crisis we face is not just a crime problem, it is a community public health problem, and we hope you will join us for this important event.
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September 22, 2016 - An Executive Session for Law Enforcement to discuss heroin & opioid abuse, distribution, and overdose issues. All Police Chiefs, Sheriffs, State and Federal Law Enforcement Agency heads within the Middle District of North Carolina are welcome to attend.
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Port Sulphur Oysterman Charged in $300,000 B.P. FraudRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that STEVE COLLINS TURNER, SR., age 73, of Port Sulphur, was charged Friday with mail fraud in connection with a false claim of $300,000 related to the BP Oil Spill.
The Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. According to the Bill of Information, TURNER applied for an Emergency Advance Payment seeking $300,000 in damages for lost money because of the Deepwater Horizon Disaster by submitting false documentation. TURNER submitted false documents regarding oyster buying businesses showing he sold oysters to the businesses when he really did not.
If convicted, TURNER faces a possible maximum sentence of twenty years imprisonment, followed by 3 years of supervised release, and a $100 special assessment. Additionally, TURNER may be ordered to pay restitution.
The U.S. Attorney’s Office reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office praised the work of the Special Agents of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Pittsburgh Man Pleads Guilty to Fraud ChargesRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy and wire fraud, United States Attorney David J. Hickton announced today.
Michael F. Schoedel, 26, Pittsburgh, PA pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from on or about March 1, 2014 to March 17, 2014, Schoedel falsely represented that he had tickets to entertainment events to potential purchasers on Craigslists. He would then have potential purchasers wire money for these tickets, but Schoedel did not provide any tickets.
Judge Fischer scheduled sentencing for February, 3, 2017 at 11:30 a.m. The law provides for a total sentence of 40 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Schoedel.