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15 September 2016
Former West Haven Housing Authority Employee Admits Unlawful Receipt of FundsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN SANDELLA, 54, of Orange, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to receiving unlawful compensation while serving as an employee of the West Haven Housing Authority.
According to court documents and statements made in court, SANDELLA was employed as the Clerk of the Works for the West Haven Housing Authority (“WHHA”), a federally-funded program through the U.S. Department of Housing and Urban Development. (“HUD”). HUD’s rules and regulations prohibited the WHHA from entering into any contract in which an officer or employee of the WHHA who influenced decisions with respect to the underlying project had an interest.
From March 2009 through January 2012, SANDELLA used his position as Clerk of the Works to influence the WHHA to enter into a plumbing contract and award plumbing jobs to a plumbing company that was owned and operated by a longtime friend and associate of SANDELLA. Specifically, SANDELLA assisted the plumbing company’s owner in preparing applications and bids for these jobs and promoted the company to the WHHA as a qualified plumbing service. In addition, SANDELLA reviewed the work performed by the company at WHHA properties, submitted the company’s invoices to the WHHA for payment, and delivered WHHA payment checks to the company’s owner or deposited those checks himself into the company’s checking account.
Unbeknownst to HUD and the WHHA, the plumbing company’s owner owed private debts to SANDELLA and lacked the means to repay SANDELLA other than with the money paid to the company by the WHHA.
Following the deposit of the WHHA checks into the plumbing company’s checking account, SANDELLA and the company’s owner worked together to direct certain payments out of that same checking account for the benefit of SANDELLA. Payments included checks written to CJM Construction, which was a plumbing contracting business owned and operated by SANDELLA; checks written to an insurance company for insurance policies for SANDELLA and his family, and checks written to the Regional Water Authority for accounts in the name of SANDELLA and his family.
SANDELLA failed to disclose the existence of his financial interest in the contract between the WHHA and the plumbing company.
Pursuant to the contract in which SANDELLA had an undisclosed interest, the WHHA paid $137,004 to the plumbing company. In turn, the plumbing company paid $26,687.26 to and for the benefit of SANDELLA.
SANDELLA pleaded guilty to one count of receipt of compensation with the unlawful intent to defeat the purposes of the U.S. Department of Housing and Urban Development, a charge that carries a maximum term of imprisonment of one year. Judge Underhill scheduled sentencing for December 8, 2016.
SANDELLA has agreed to pay restitution to the WHHA in the amount of $137,004.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Former Truck Driver Sentenced to More Than 15 Years for Using Internet to Exchange Child PornographyRead the Press Release
Jackson, TN – A former truck driver has been sentenced to 190 months in federal prison for using an Internet messaging app to distribute and receive child pornography. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Seferino Saldivar, 42, of McKenzie, Tennessee, used Kik, an Internet messaging app, to moderate a chat room where sexually explicit images of female minors were shared. Saldivar also used social networking service Mocospace to find individuals with similar interests and motivate them to join the Kik chat room.
In June 2015, an undercover officer in Arizona using Kik entered the aforementioned chat room and observed several users exchange child pornography. Law enforcement submitted an administrative subpoena to Kik for the Internet Protocol (IP) address being used by one of the user’s in the chat room. They were notified that the user used a Samsung Galaxy phone to access the Internet through IP 70.194.100.255. The email address listed for the user was also provided to law enforcement.
After linking Saldivar to the particular user name, agents obtained his McKenzie, Tennessee address. A search warrant was subsequently executed on his residence. Saldivar admitted to law enforcement that he used Kik and moderated the chat room being investigated.
A forensic examination of Saldivar’s phone revealed approximately 50 images of child pornography and Kik chat messages.
Saldivar was employed as a truck driver during his criminal activity.
In May 2016, Saldivar pleaded guilty to one count of knowingly distributing child pornography before Chief U.S. District Judge J. Daniel Breen.
On Tuesday, September 14, Judge Breen sentenced Saldivar to 190 months in federal prison.
This case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who believes they may have information about similar cases or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the
Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Former Securities Lawyer Pleads Guilty to Securites FraudRead the Press Release
SAN JOSE – James Seltzer, a former attorney and resident of Marin County, pleaded guilty to securities fraud, announced United States Attorney Brian Stretch, FBI Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The guilty plea was accepted yesterday by U.S. District Judge Lucy H. Koh.
According to the plea agreement, beginning no later than October of 2007 through at least May of 2011, Seltzer, 67, formerly of Belvedere, defrauded and deceived multiple individuals in connection with the purchase and sale of securities. Seltzer admitted he misrepresented to the investors that he would use their money to make certain investments for their exclusive benefit but instead diverted the funds to other uses. Seltzer acknowledged that in many cases, he diverted all or virtually all of the monies he had obtained from his investors and spent the monies on his own personal and business expenses after depositing the funds into his own personal bank accounts. Seltzer further admitted that he had more than ten victims resulting in losses of more than $2,500,000.
Seltzer was indicted by a federal grand jury on June 18, 2015. He was charged with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957. Pursuant to the plea agreement, Seltzer admitted his guilt to one count of securities fraud and the remaining counts were dismissed. After being apprehended in Hawaii in September 2015, Seltzer was ordered to appear in San Jose to face the charges presented in the indictment.
The maximum term of imprisonment for securities fraud is 20 years. Additional periods of supervised release, fines, and special assessments also could be imposed. Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Seltzer remains free on a bond and is scheduled to appear before Judge Koh on February 15, 2017, for sentencing.
Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation.
Former Orange County Resident Sentenced to 4 Years in Prison for Engaging in A $2.5 Million Fraud Involving Dozens of Fraudulent Loans to Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BALDEV TAL, a/k/a “David Tal,” was sentenced today by the U.S. District Judge Vincent Briccetti to four years in prison for conspiring to commit bank fraud.
Manhattan U.S. Attorney Bharara stated: “Banks, credit unions, and small businesses in our community lost millions of dollars because of the fraud perpetrated by Baldev Tal and his co-conspirators. Today, Tal has been sentenced to federal prison for his crime.”
According to the Information previously filed in White Plains federal court and public information:
From at least in or about 2007 through in or about August 2015, Binder Tal, BALDEV TAL, a/k/a “David Tal,” a/k/a “Ashok Kumar,” Shariful Mintu, and their co-conspirators fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including, but not limited to, false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of the scheme to defraud, the defendants used the proceeds to personally enrich themselves and their families. Fraudulently obtained proceeds from the loans and lines of credit were used toward, among other things, (i) credit card debts for personal expenses of the defendants, (ii) debts arising from business expenses, and (iii) debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included, but were not limited to, multiple members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles, when in fact many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
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Previously, the Judge Briccetti sentenced Binder Tal to 30 months in prison and Shariful Mintu to one year and one day in prison.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Auto Crimes Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins Jr. is in charge of the prosecution.
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Former Letter Carrier Sentenced for Worker’s Compensation FraudRead the Press Release
BOSTON – A former U.S. Postal Service employee was sentenced yesterday for fraudulently obtaining worker’s compensation for medical travel.
Joseph Bouchard, 67, of Georgetown, Mass. was sentenced by U.S. District Court Magistrate Judge Marianne B. Bowler to six months’ probation and ordered to pay a fine of $5,000 and restitution of $50,000. In June 2016, Bouchard pleaded guilty to one count of fraud in obtaining federal employee compensation.
From January 1986 to December 2009, Bouchard was employed as a letter carrier in Reading, Mass. As a civilian employee of the federal government, Bouchard was entitled to obtain reimbursement for medical travel after sustaining an injury while working in his official capacity. From 2008 to 2014, while Bouchard was on medical leave, he submitted dozens of travel vouchers to fitness centers in Lexington, Lynnfield and Bedford for dates when he did not actually use those gyms or used a different gym of closer proximity. During an interview with federal agents in April 2016, Bouchard admitted that he submitted the false claims intentionally and that he was upset with the Postal Service because of the hassles he encountered while seeking accommodations for his injury. Bouchard’s fraudulent submissions totaled approximately $50,000.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of the Inspector General in Boston, made the announcement. This case was prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Five Indicted for Fraud Against the U.S. Government and Other Purchasers in “Made in the USA” Marketing SchemeRead the Press Release
GREENEVILLE, Tenn. – On Sept. 13, 2016, a federal grand jury in Greeneville returned an indictment against Vincent Lee Ferguson, 65, of Knoxville, Tenn.; Matthew Lee Ferguson, 40, of Lenoir City, Tenn.; Kerry Joseph Ferguson, 35, of Houston, Texas; Matthew Harrison Martland, 32, of Knoxville, Tenn.; and Stephanie Lynn Kaemmerer, 44, of Knoxville, Tenn., for wire fraud, conspiracy to commit wire fraud, major fraud against the United States, and smuggling goods into the United States.
These individuals appeared in court on Sept. 15, 2016 before U.S. Magistrate Judge Clifton Corker and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 1, 2016, in U.S. District Court, in Greeneville.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and smuggling charge, and up to 10 years in prison for the charge of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeiture of approximately $8.1 million.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that these individuals, all of whom were executives and management at Wellco Enterprises, Inc., conspired from December 2008 through August 2012 to defraud the United States government and other purchasers through a scheme to fraudulently import military-style boots that were made in China into the United States and then deceptively market and sell those boots to the United States Armed Forces, government contractors, and the general public as “Made in the USA,” and as compliant with certain domestic content preference laws, including the Trade Agreements Act and the Berry Amendment.
This indictment is the result of an investigation by Homeland Security Investigations, the Defense Criminal Investigative Service, Air Force Office of Special Investigation, General Services Administration Office of Inspector General, and the Defense Contracts Audit Agency. Assistant U.S. Attorney David L. Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his/her guilt has been proven beyond a reasonable doubt.
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Final Defendant Sentenced to 14 Years in Prison for Nationwide Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — On Wednesday, September 14, 2016, Domonic McCarns, 41, of Irvine, was sentenced to 14 years in prison by U.S. District Judge Kimberly J. Mueller for conspiracy to commit mail fraud for his participation in a nationwide foreclosure-rescue scam, Acting U.S. Attorney Phillip A. Talbert announced.
McCarns is the final defendant to be sentenced for a pair of schemes that lured homeowners with the promise to help them avoid foreclosure and repair their credit. Two indictments were brought in 2008. Four defendants were convicted after two jury trials, 13 defendants pleaded guilty, and now, all 17 defendants have been sentenced. On September 9, 2013, Charles Head was sentenced to 35 years in prison, and on October 29, 2014, his brother and fellow leader in the scheme Jeremy Michael Head was sentenced to 10 years in prison.
Acting U.S. Attorney Talbert said: ‘This scheme purposely targeted the financially vulnerable during their time of greatest distress with promises of help. The defendants tricked the victims into handing over their most valuable assets, their homes. Few economic crimes are more reprehensible. This final sentence in this case will bring some measure of justice for their victims.”
“In large fraud schemes like the one devised by Charles Head, we can’t forget about the individual homeowners who comprised the millions of dollars in losses,” said Monica M. Miller, Special Agent in Charge of the Sacramento division of the FBI. “Today’s sentencing ends an investigation that has been ongoing for more than 10 years and brings some closure to the innocent people who were victimized by Head’s callous scheme.”
“Dominic McCarns and his co-conspirators assured innocent homeowners across the country facing foreclosure that they could turnaround their misfortunes and keep their homes,” said Michael T. Batdorf, Special Agent in Charge, IRS-Criminal Investigation. “However the defendants had other plans which resulted in one of the most harmful mortgage fraud schemes in the country. The sentence handed down today by the court is befitting of this defendant and his actions.”
According to court documents, the defendants solicited homeowners facing foreclosure, and through misrepresentations, fraud, and forgery, substituted straw buyers for the victim homeowners on the titles of properties without the homeowners’ knowledge. These straw buyers were often friends and family members of the defendants, or were solicited on the internet. Once the straw buyers were on title to the homes, the defendants applied for mortgages to extract the maximum available equity from the homes. The defendants then shared the proceeds of the ill-gotten equity and the “rent” that the victim homeowners paid them. Ultimately, the victim homeowners were left with no home, no equity, and with damaged credit ratings.
Initially, the scam focused on distressed homeowners in California before expanding throughout the United States. In the course of the schemes, between January 2004 and June 2006, the defendants obtained over $90 million in fraudulent loans, caused estimated losses of over $50 million, and stole title to over 300 homes.
On December 2, 2013, McCarns was convicted after a five-week trial along with Charles Head, 36, of Pittsburgh, Pennsylvania, (formerly of Los Angeles); and Benjamin Budoff, 46, of Colorado Springs, Colorado. Head had been previously convicted in a trial in a nearly four-week trial in May 2013 with his brother Jeremy Michael Head, 34, of Huntington Beach.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew Morris prosecuted the case.
Fourteen other defendants have been sentenced:
Elham Assadi, 39, of Irvine, sentenced to 5 years’ probation with 6 months of home detention;
Leonard Bernot, 50, of Laguna Hills, sentenced to 18 months in prison;
Akemi Bottari, 36, of Los Angeles, sentenced to 3 years’ probation with 6 months of home detention;
Keith Brotemarkle, 51, of Johnstown, Penn., sentenced to 5 years, 10 months in prison;
Benjamin Budoff, 49, Colorado Springs, Colo. sentenced to 4 years in prison;
Joshua Coffman, 37, of North Hollywood, sentenced to 20 months in prison;
John Corcoran, 61, of Anaheim, sentenced to 4.5 years in prison;
Sarah Mattson, 33, of Phoenix, Ariz., sentenced to 3 years’ probation with 3 months of home detention;
Omar Sandoval, 36, of Rancho Cucamonga, sentenced to 4 years and 10 months in prison;
Xochitl Sandoval, 37, of Rancho Cucamonga, sentenced to 8 months in prison;
Lisa Vang, 31, of Westminster, sentenced to 3 years’ probation;
Andrew Vu, 38, of Santa Ana, sentenced to 6 months in prison with 6 months of home detention;
Justin Wiley, 37, of Irvine, sentenced to 18 months in prison, and
Kou Yang, 40, of Corona, sentenced to 4 years in prison.
This case was part of the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.
Final Defendant Sentenced in Aggravated Identity Theft and Wire Fraud SchemeRead the Press Release
HOUSTON – A Houston woman has been ordered to federal prison following her conviction of wire fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Alicia Myles, 32, pleaded guilty Oct. 9, 2015.
Today, U.S. District Judge David Hittner ordered Myles to serve a total of 42 months – 18 months for the wire fraud and a consecutive 24 months for the identity theft. She was also ordered to serve three years of supervised release following her sentence and must pay restitution in the amount of $$77,064.86.
Myles, along with Chloe McClendon and Domonique Thomas, were able to engage in this scheme through the theft of personal identifying information (PII) of individuals from the Department of State Passport Agency where McClendon had worked. They used the stolen and unlawfully obtained PII of true persons to create counterfeit identification documents. The defendants then recruited other individuals to assume the stolen identities and use the counterfeit documents to obtain commercial lines of credit and purchase iPhones, iPads and other electronics merchandise.
McClendon and Thomas were previously sentenced to 65 and 96 months in federal prison, respectively.
Previously released on bond, Myles was ordered into custody following the hearing today.
The investigation leading up to the arrest was conducted by the Department of State, Diplomatic Security Service, Houston Field Office and Criminal Fraud Investigations Division and the Houston Police Department. Assistant U.S. Attorneys Ted Imperato and Alamdar Hamdani are prosecuting this case.
Federal Jury Finds Zephyrhills Felon Guilty of Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Robert William Barton (43, Zephyrhills) guilty of possessing a firearm and ammunition as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for January 20, 2017.
According to evidence presented at trial, on August 5, 2014, law enforcement officers pulled Barton and two passengers over after identifying the license plate on the vehicle as stolen. A search of the car revealed a loaded .22 caliber revolver under the passenger seat. Barton initially confessed to possessing the gun, but later claimed it belonged to someone else. Subsequent DNA testing linked the firearm to Barton.
Barton has prior felony convictions for aggravated battery and burglary, as well as three prior felony convictions for robbery, and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Federal Judge Sentences Last of National Drug Trafficking Ring Members in CustodyRead the Press Release
Federal Authorities Continue to Search for Remaining Charged Defendant
GRAND RAPIDS, MICHIGAN —Today, Hon. Robert Holmes Bell, District Court Judge of the Federal District Court for the Western District of Michigan, sentenced Carlos Ramirez-Zuniga to 70 months’ imprisonment. Ramirez-Zuniga was the final in-custody defendant out of five total to be charged in this case which arose from allegations that the defendant conspired to distribute cocaine and marijuana obtained first in Texas, near the Mexican border, into Lansing, Michigan.
The filed indictment indicated that the leader of the conspiracy, Merced Alvarado, aka "Hector," aka "Machine," began distributing drugs into Michigan in 2001 and continued doing so until June of 2014, when members of Homeland Security Investigations and the Lansing Police Department conducted a search of the conspiracy’s Lansing stash house and discovered over 800 grams of cocaine and over $39,000. Information developed in the investigation indicated that the conspiracy obtained marijuana and later cocaine near Alvarado’s Mission, Texas home, and transported the drugs throughout the country in hallowed out drink coolers. The Indictment indicated that more than five kilograms of cocaine and more than 50 kilograms of marijuana were involved. In total, nvestigators recovered over $150,000 in drug proceeds and over two kilograms of cocaine in the course of the investigation.
"We will continue to work with our federal and state partners to detect and bring to justice those drug traffickers seeking to move wholesale quantities of drugs into our state," stated U.S. Attorney Patrick Miles, "This case presents an excellent example of state and local cooperation in an investigation which ended a multistate drug conspiracy."
For his crime, the Court sentenced Alvarado, the recognized leader of the conspiracy, to 130 months’ imprisonment. Jonathan Galvan, a courier working for Alvarado delivering the drugs to Michigan and other states, received 48 months’ imprisonment. Elva Medrano, the Michigan resident who distributed drugs on Alvarado’s behalf, collected proceeds and maintained a home for the storage of the drugs in Michigan, received a sentence of 36 months’ imprisonment. Ramirez-Zuniga was Alvarado’s largest Lansing-based drug customer.
"These prison sentences are a testament to HSI’s commitment to aggressively investigating drug smuggling organizations and ending the violence they bring to our communities," said Marlon Miller, special agent in charge of HSI Detroit. "We are committed to making our communities safer, and we will continue close collaboration with our law enforcement partners at every level to further that objective."
City of Lansing Police Chief Michael Yankowski added: "The results of this investigation is confirmation of the dedication of Law Enforcement to stop illegal narcotic distribution in our neighborhoods. The long term effects of this investigation will have a positive influence for the reduction of violent crime and quality of life in our local communities."
Investigators continue to seek information about the location of the final defendant, Raymundo Perea, another of Alvarado’s couriers who remains a fugitive, who is pictured below. Perea was last known to law enforcement to be in the area of Mission, Texas. Anyone with information about the whereabouts of Perea should contact Homeland Security Investigations at (313) 226-0533. Of course, the charges in an indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law.
Raymundo PereaEND
Douglas Allen Pleads Not Guilty to Merchants Bank RobberyRead the Press Release
The United States Attorney for the District of Vermont announced that Douglas Allen, 58, of Burlington, pleaded not guilty today in United States District Court in Burlington to a charge of bank robbery. U.S. Magistrate Judge John M. Conroy ordered that Allen be detained pending trial, which has not been scheduled.
According to court records, on May 21, 2016, a man wearing a hat and sunglasses entered the College Street branch of Merchants Bank in Burlington and presented the teller with a note which asked for $6000. The teller gave the robber approximately $1780. Burlington Police officers arrested Allen five days later, on May 26, after receiving several tips from persons who were able to identify Allen from bank surveillance pictures. Allen was originally charged in state court with grand larceny, but that charge was dismissed after a federal grand jury indicted Allen for robbery last week.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Allen faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
Allen is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
District Man Sentenced to Seven Years in Prison for Shooting That Wounded 7-Year-Old GirlRead the Press Release
WASHINGTON – Michael Wiggins, 27, of Washington, D.C., was sentenced today to a seven-year prison term on charges stemming from a shooting last spring that injured a 7-year-old bystander, U.S. Attorney Channing D. Phillips announced.
Wiggins pled guilty on Aug. 19, 2016, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed and one count of possession of a firearm during a crime of violence. The plea, which was contingent upon the Court’s approval, called for a seven-year prison term. The Honorable Zoe Bush accepted the plea and sentenced Wiggins accordingly. After his prison term, Wiggins will be placed on five years of supervised release.
In his plea, Wiggins admitted that on April 8, 2016, at about 9:30 p.m., he was in the 2900 block of Knox Place SE, and had been fighting with his cousin. As his cousin was leaving Knox Place by car, Wiggins fired four shots at the vehicle, shattering its back windshield. Meanwhile, the victim, a 7-year-old girl, was arriving home with her family after an outing to Chuck E. Cheese. One of the shots hit her in the chest and she fell to the ground. The victim was immediately transported to Children’s National Medical Center and has made a full recovery.
Officers with the Metropolitan Police Department (MPD) were swift to identify Wiggins as the shooter and he was arrested on April 11, 2016. Wiggins admitted that he was shooting at his cousin that night.
In announcing the sentence, U.S. Attorney Phillips commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the work of those handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Margaret E. Barr, who prosecuted the matter.
Department of Justice and U.S. Attorney’s Office Seek Forfeiture of Six Dogs Seized in Connection with Interstate Dog Fighting VentureRead the Press Release
The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
According to the complaint filed yesterday in Newark, New Jersey, federal court:
The six pit bull-type dogs were seized on June 1, from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.
The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.
Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as flirt poles, which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.
Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.
Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.
Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.
The charges and allegations against Love are merely accusations and he is presumed innocent unless and until proven guilty.
Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
Defendant Pleads Guilty to Providing Material Support to Islamic Movement of UzbekistanRead the Press Release
WASHINGTON – Irfan Demirtas, 58, a dual Dutch-Turkish citizen, pleaded guilty today to providing material support to the Islamic Movement of Uzbekistan (IMU), a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
Demirtas pleaded guilty in the U.S. District Court for the District of Columbia and is to be sentenced on Nov. 30, 2016 by the Honorable Randolph D. Moss. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. The plea agreement calls for Demirtas to be removed from the United States upon completion of his prison term.
On Dec. 8, 2011, Demirtas was charged in a sealed four-count indictment for conduct occurring from at least Jan. 2006 through May 2008, when Demirtas was a resident of the Netherlands and acted as an IMU fundraiser and facilitator. In Jan. 2015, Demirtas was arrested in Germany based on an Interpol red notice that had been issued on these charges. He was detained and then extradited to the United States on July 17, 2015.
According to the government’s evidence, the IMU is a militant Islamic group which was formed in 1991 with the stated purpose to overthrow the government of Uzbekistan and to create an Islamic state under Sharia law. Since its inception, the IMU has been conducting military operations in Uzbekistan and Pakistan and participated in combat operations against coalition forces in Afghanistan. The IMU was designated by the U.S. Department of State as a Foreign Terrorist Organization on Sept. 25, 2001.
Between January 2006 and May 2008, according to the government’s evidence, Demirtas acted on the IMU’s behalf in Pakistan, Afghanistan, Turkey, Jordan, the Netherlands, France and elsewhere outside the United States. During this period, he provided, attempted to provide, and conspired to provide personnel and funding to the IMU, knowing that it is a designated terrorist organization that has engaged and engages in terrorism. Specifically, Demirtas admitted in his plea to providing funds to the leader of the IMU.
The case is being investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Michael C. DiLorenzo and Ari B. Redbord of the District of Columbia and Trial Attorney Brian K. Morgan of the National Security Division’s Counterterrorism Section. Assistance was provided by the Department of Justice’s Office of International Affairs.
DeLand Man Convicted of Possessing Ethylone with Intent to DistributeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Jason Alexander Phifer (33, DeLand) guilty of possession with intent to distribute ethylone, commonly marketed as the street drug “Molly.” He faces a maximum penalty of 20 years in federal prison. His sentencing hearing is scheduled for December 5, 2016. Phifer was indicted on February 10, 2016.
According to evidence presented at trial, between January and May 2015, Phifer ordered four shipments of ethylone, totaling approximately 5.25 kilograms, from a supplier in China. In May 2015, agents discovered a shipment of 1.5 kilograms of ethylone that was destined for Phifer’s residence. On May 20, 2015, undercover agents made a controlled delivery of the ethylone to Phifer at his home. Immediately after the delivery, they executed a search warrant at the home and recovered the 1.5 kilograms of ethylone, and found additional quantities in Phifer’s bedroom. Phifer admitted to agents that he had received the ethylone so he could distribute it to customers throughout the United States.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorneys Vincent S. Chiu and Sean P. Shecter.
Corapeake Woman Pleads Guilty to Virginia Unemployment Fraud SchemeRead the Press Release
NORFOLK, Va. – Paula Lane, a.k.a. Paula Hipps, 47, formerly of Corapeake, North Carolina, pleaded guilty today to charges of mail fraud and aggravated identity theft.
According to the statement of facts filed with the plea agreement, Lane created fake companies and reported employees and wages to the Virginia Employment Commission (VEC). The employees’ identifications were stolen or otherwise used without authorization. She then filed unemployment claims under the names of these individuals as if they had been laid off. She received payment from the VEC through EPPICards (debit cards issued to claimants) and direct deposits into her bank account. A search warrant of her home led to the discovery of handwritten documents with personal identifying information, including dates of birth and social security numbers. There were approximately 30 victims of identity theft, and in one-year Lane collected approximately $130,000.
Lane was indicted by a federal grand jury on June 9 and faces a maximum penalty of 20 years in prison for the mail fraud count and a mandatory consecutive two years in prison for the aggravated identity theft count when sentenced on Jan. 17, 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 Robin Blake, Special Agent in Charge of the Washington, D.C. Regional Office, U.S. Department of Labor, Office of Inspector General, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-089.
Clark County Man Pleads Guilty to Producing, Distributing Child PornographyRead the Press Release
DAYTON – James Edward Risner III, 34, of New Carlisle, Ohio pleaded guilty in U.S. District Court to producing and distributing child pornography involving a seven-year old victim.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Clark County Sheriff Gene Kelly and Clark County Prosecuting Attorney D. Andrew Wilson announced the pleas entered Wednesday, September 14 before Chief U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, Risner engaged in various sexual activities with the victim at his home and business between July 2015 and November 2015, took pictures of the activities then shared the photos on various websites.
FBI agents and Clark County Sheriff’s deputies patrolling the Internet found the photos, traced them to Risner and arrested him in November 2015. He has been in custody since his arrest.
Risner’s plea agreement includes a sentencing range between 360 and 480 months in prison and a life term of supervised release following his prison term. U.S. District Judge Timothy S. Black will determine whether or not to accept the terms of the plea agreement and if he does, will schedule a date for sentencing.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Sheriff Kelly’s Office, Assistant United States Attorneys Dwight Keller and Sheila Lafferty, and Special Assistant U.S. Attorney Amy Smith from the Clark County Prosecutor’s Office, who are representing the United States in this case.
California methamphetamine trafficker pleads guilty to federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A California man who traveled to West Virginia to facilitate methamphetamine trafficking pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Gary Liberty, 52, entered his guilty plea to attempted possession with intent to distribute methamphetamine.
Liberty admitted that in January 2012, he made arrangements with a confidential informant working with law enforcement to ship crystal methamphetamine from California to West Virginia. On January 5, 2012, Liberty traveled from California to West Virginia by airplane. The next day, Liberty provided the confidential informant with a U.S. Postal Service tracking number for a package containing crystal methamphetamine that Liberty had arranged to be sent from California to the informant’s residence in Sissonville. On January 7, 2012, officers intercepted the package and seized over 80 grams of methamphetamine. Officers then conducted a controlled delivery of the package to the confidential informant’s residence with a fake substance in the package. After the informant took delivery of the package, officers entered the informant’s home and found Liberty standing over the package with the package open and several items from inside the package on the table. Liberty then gave a statement to law enforcement and admitted his involvement with methamphetamine trafficking.
Liberty faces at least five and up to 40 years in federal prison when he is sentenced on December 7, 2016.
The Metropolitan Drug Enforcement Network Team and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat 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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Biloxi Businessman Sentenced for Kickback Scheme with Mississippi Department of Corrections CommissionerRead the Press Release
Gulfport, Miss - Robert Simmons, 60, of Biloxi, was sentenced by U.S. District Judge Sul Ozerden to 87 months in prison followed by three years of supervised release for carrying out a complicated kickback scheme in which he paid money to the commissioner of the Mississippi Department of Corrections (MDOC) and to a Harrison County Supervisor in exchange for lucrative contracts with the state and county, announced Acting U.S. Attorney Harold Brittain and FBI Special Agent in Charge Donald Alway. Simmons was also ordered to pay a $10,000 fine.
By virtue of Simmons’ relationship with the commissioner and supervisor and the kickbacks which he paid to both, he was successful in securing and keeping contracts with both governmental entities. Specifically, from 2012 through August 2014, Simmons was paid $4,000 a month as a consultant for Sentinel Offender Services, L.L.C. (Sentinel). Since 2012, Sentinel was under contract with the Mississippi Department of Corrections (MDOC) to provide services to aid in the monitoring and managing of offenders sentenced to probation or parole. Simmons deposited a portion of his monthly pay, a kickback of $1400, directly into the bank account of Christopher Epps, the Commissioner of the MDOC, at bank branch locations along the Mississippi Gulf Coast.
AJA Management and Technical Services (AJA) provided construction management services to the MDOC for the construction of the $40,000,000 expansion to the East Mississippi Correctional Facility and a $40,000,000 expansion to the Walnut Grove Youth Correctional Facility. Throughout the eighteen month period of construction, Simmons received a monthly consulting fee from AJA of $10,000. Every month, a portion of Simmons’ consulting fee was paid to the Commissioner of the MDOC.
From approximately 2005 through 2011, Health Assurance L.L.C. contracted with the Harrison County Jail to provide inmate medical services. The owner of Health Assurance L.L.C. paid Simmons a consulting fee which, at the end of the contract, was as high as $10,000 a month. Throughout this period of time, Simmons made payments in the amount of $2,000 a month to a Harrison County Supervisor for assistance provided in securing the contract at the Harrison County Jail for inmate medical services.
Throughout the relevant time period, the Commissioner of the MDOC exercised influence in the awarding of contracts with the MDOC. In return for these contracts and in order to secure future contracts and favors, Simmons began paying Commissioner Epps.
In summary, Simmons paid bribes and kickbacks to a Harrison county supervisor and to the commissioner of the Mississippi Department of Corrections, and both Harrison County and the Mississippi Department of Corrections received more than $10,000 during each one year period beginning in 2008 and continuing through 2014.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jay Golden.
Beggs Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JACKIE LEON PARKER, JR., age 42, of Beggs, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1).
The charges arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The defendant was indicted in July, 2016.
The Indictment alleged that on or about May 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
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 more than 10 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Bank Employee Sentenced for $213,000 TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for embezzling more than $213,000 from Bank of America.
Elisha Nicole Araiza, 36, of Kansas City, was sentenced by U.S. District Judge Dean Whipple to 21 months in federal prison without parole. The court also ordered Araiza to pay $213,090 in restitution to Bank of America.
On April 5, 2016, Araiza pleaded guilty to embezzlement by a bank employee.
Araiza was employed by Bank of America on May 17, 2004, and worked as a portfolio officer in the Special Assets Group on the Small Business Accounts Team. Her duties included contacting small business borrowers to arrange payments on past due loans, and in that regard she had authority to negotiate settlements, create payment plans, and forgive portions of the debts owed.
Araiza admitted that she had been experiencing overdrafts in her personal bank account for about a year when, in July 2011, she deposited a bank customer’s money order into her own account. Thereafter, the diversion of client checks to Araiza’s personal accounts continued until March 19, 2015, at which point the embezzlement was detected by Bank of America.
Bank of America found 121 diverted loan payment checks totaling $213,090 deposited into Araiza’s personal account over a period of approximately four years.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Secret Service.
Alpha Corporation Agrees to Plead Guilty in Price-Fixing and Bid-Rigging ConspiracyRead the Press Release
Alpha Corporation (Alpha) has agreed to plead guilty and to pay a $9 million criminal fine for its role in a price-fixing and bid-rigging conspiracy involving automotive access mechanisms for installation in cars manufactured and sold in the United States and elsewhere, the Justice Department announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Japan-based Alpha conspired from at least as early as 2002 until at least September 2011 to fix prices and rig bids for automotive access mechanisms sold to Nissan Motor Co. Ltd. and certain of its subsidiaries, including Nissan North America Inc. Access mechanisms consist of inside and outside door handles, tailgate or trunk handles, keys, lock sets (also called key sets), door locks and electrical and mechanical steering column locks.
“Alpha is the 46th corporation to be charged with participating in an anticompetitive scheme involving auto parts,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “The Antitrust Division is committed to uncovering each and every conspiracy to fix prices in the auto parts industry.”
“Crimes of this nature weaken the integrity of the bidding process and deny consumers the benefit of free and open competition in the marketplace,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “The FBI will continue to work with the Antitrust Division to ensure fair bidding practices are employed across all sectors of our economy.”
The Antitrust Division charges that Alpha and its co-conspirator engaged in meetings and conversations to discuss and agree upon the bids and price quotations to be submitted to Nissan for the sale of access mechanisms. As part of its plea, Alpha has agreed to cooperate in the Division’s ongoing investigation. The plea agreement is subject to court approval.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Alpha, 46 companies and 64 executives have been charged in the division’s investigation and have agreed to pay a total of more than $2.8 billion in criminal fines.
Alpha is being prosecuted by the Antitrust Division’s New York Office and the FBI’s New York Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s New York Field Office at 212-384-1000.
Alpha Corporation Information
Accountant Convicted of Embezzling More than $3 Million from Houston CompanyRead the Press Release
HOUSTON – An accountant from Georgia has admitted he committed wire fraud and stole more than $3 million from Houston company Airis International Holdings, announced U.S. Attorney Kenneth Magidson.
Daniel Nathan West, 50, of Duluth, Georgia, was previously employed as the treasurer and chief financial officer for Airis International Holdings. In this role, he was to manage Airis finances during construction projects, control the company’s monetary assets, administer payments and payroll, among other things.
In 2005, West resigned from Airis to start his accounting firm - Westtree Financial. Shortly thereafter, Airis contracted with Westtree Financial to provide accounting services to Airis. Although West no longer worked directly for Airis, through his company he continued to have signature authority on Airis’ bank accounts and authority to transfer funds on behalf of Airis.
From 2005 to 2012, West embezzled $3,616,563.45 from Airis, admitting he used the monies to purchase a luxury home in Georgia, a beach house in Florida, an office building in Georgia and luxury vehicles.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for Dec. 5, 2016. At that time, he faces up to 20 years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
7th Street Gang Associate Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 7th Street Gang associate Joseph Whitely, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy, was sentenced to 72 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the 7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and 2012. Defendant Whitely, as a 7th Street Gang associate, sold heroin on behalf of the gang.
Regarding violence, Whitely served as the getaway driver for 7th Street Gang member Efrain Hidalgo, who had moments earlier participated with others in the murder of rival 10th Street Gang member Eric Morrow on August 11, 2009. In doing so, Whitely assisted Hidalgo to avoid capture by the Buffalo Police Department.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted. The prosecution of the 10th Street gang, meanwhile, involved 44 defendants, all of whom were convicted.The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie Patterson.
14 September 2016
Wilkes-Barre Man Charged with Federal Crack Cocaine Trafficking Offense in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton for crack cocaine trafficking.
According to United States Attorney Peter Smith, the Indictment charges Jahkel Lamar, age 29, of Wilkes-Barre, with possession with intent to distribute crack cocaine.
The charges stem from an investigation in which the Scranton Police Department allegedly found Lamar to be in possession of approximately 127 grams of crack cocaine at a bus terminal in Scranton.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Scranton Police Department, Special Investigations Division. Prosecution is assigned to Assistant United States Attorney Robert J. O’Hara.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wilkes Barre Man Indicted on Marijuana Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on September 13, by a federal grand jury in Scranton on marijuana trafficking and firearms offenses.
According to United States Attorney Peter Smith, the Indictment charges Christian Rosado, age 26, with charges that stemmed from a joint investigation of the Federal Bureau of Investigation (FBI) and the Hazelton Police Department in connection with a shooting incident in Hazleton in July 2016.
The investigation was conducted by the FBI, working in conjunction with the Hazelton Police Department. The prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
Rosado faces a minimum of 10 years and up to a lifetime term of incarceration as well as fines totaling $1,750,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Venezuelan Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – Alejandro Marva-Romero, 32, of Venezuela, pleaded guilty today in federal court on St. Croix to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On November 13, 2015, Marva-Romero and other co-defendants, who were on a boat, retrieved a load of cocaine mid-sea from another boat. They transported the drugs to St. Croix and offloaded them at a beach called Knight’s Bay. Law enforcement tracked the boat returning to St. Croix and apprehended Marva-Romero and two co-defendants on the beach in close proximity to the suitcases. The suitcases contained 87 kilograms of cocaine.
Marva-Romero faces up to life imprisonment for the offense and a fine of up to $10,000,000. A sentencing date has been set for January 13, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
United States Settles False Claims Act Allegations Against Compound Pharmacy Owners for $7.75 MillionRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces today that Andy Miller, Tracy Miller, and the Healthmark Investment Trust have agreed to pay to the government $7.75 million to resolve allegations that they violated the False Claims Act.
The United States contends that QMedRx, a compound pharmacy in Maitland, Florida, knowingly billed federal healthcare programs for services that were not reimbursable. Specifically, the government contends that from January 1, 2013, until January 22, 2014, QMedRx submitted to federal healthcare programs, compounded prescriptions that were tainted within the meaning of the Anti-Kickback Statute. Because Healthmark Investment Trust was a partial owner of QMedRx, the government sought penalties and fines from the owners who participated in the fraud. The government is still pursuing penalties and fines from other owners and participants within QMedRx.
“The United States Attorney’s Office is committed to protecting TRICARE and other federal health care programs from fraud,” said U.S. Attorney Bentley. “Those who violate the Anti-Kickback Statute to generate business will be held accountable.”
This case was developed through an initiative to track and prosecute compound pharmacies that submitted millions of dollars in improper claims to the TRICARE program. The government estimates that up to $2 billion of tainted and unnecessary compound prescriptions were submitted and paid by the government. In the Middle District of Florida, the government has recovered almost $60 million in fines and penalties over the past 18 months.
“We appreciate the support from the Department of Justice in protecting the TRICARE benefit from fraud and helping to ensure the benefit continues to exist for our service members, families, and retirees,” said Vice Admiral R. Bono, Director, Defense Health Agency.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.5 billion through False Claims Act cases, with more than $18.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was investigated by the Defense Criminal Investigative Service (DCIS) and the Federal Bureau of Investigation (FBI). It was prosecuted by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
USP Canaan Inmates Charged in Assault of Prisoner with A Dangerous WeaponRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Indictment was returned by a federal grand jury in Scranton on September 13, charging federal prison inmates, Miguel Grado, age 26 and Rafael Torres-Villanueva, age 43.
According to United States Attorney Peter Smith, Grado and Torres-Villanueva were charged with assaulting a third inmate on June 4, 2016, with a dangerous weapon, a “shank,” at the U.S. Bureau of Prisons Canaan facility in Waymart, PA.
If convicted, Grado and Torres-Villanueva could be imprisoned for a maximum sentence of up to ten years and a fine in the amount of $250,000.
The investigation was conducted by the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney’s Office to Host September 20th Event for National Heroin and Opioid Awareness WeekRead the Press Release
In recognition of National Heroin and Opioid Awareness Week (September 19-23, 2016), the United States Attorney’s Office in the District of South Dakota is hosting a screening of the film, “Chasing the Dragon: The Life of an Opiate Addict,” to be followed by a panel discussion, at 6:30 p.m. on Tuesday, September 20, 2016. The event will be held at Augustana University’s Kresge Recital Hall, located at 2120 S. Grange Avenue in Sioux Falls.
The film runs for approximately 60 minutes. The panel will feature Ron Deist, Resident Agent in Charge of the Sioux Falls Drug Enforcement Administration field office, an individual in recovery from opiate addiction, as well as staff from Face It TOGETHER and Keystone Treatment Center.
The event is free and open to the public. For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
Two Men Plead Guilty for Their Roles in Identity Trafficking SchemeRead the Press Release
Two individuals each pleaded guilty today to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain in relation to their respective roles in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS), Director Bill A. Miller of the U.S. State Department’s Diplomatic Security Service (DSS) and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
Francisco Matos-Beltre, 42, a U.S. citizen formerly of Philadelphia, and Alejandro Tello-Rojas, aka Joel Ocasio-Cancel, aka William Davila, 36, a Mexican citizen formerly of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Juan M. Perez-Gimenez of the District of Puerto Rico. On Aug. 6, 2015, Matos-Beltre, an identity document supplier, and Tello-Rojas, an identity document broker, were charged in an indictment returned by a federal grand jury in Puerto Rico. To date, 14 individuals have been charged for their roles in the identity trafficking scheme, eight defendants have pleaded guilty and six individuals remain fugitives.
According to admissions made in connection with today’s pleas, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators, identified as identity document suppliers and brokers, were located in various cities throughout the United States and allegedly solicited customers for the sale of social security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set, the defendants admitted. The defendants acknowledged that the conspirators used text messages, money transfer services and U.S. mail to complete their illicit transactions.
The defendants also admitted that they sold Puerto Rican identity documents to customers, who generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers obtained the documents to commit financial fraud and attempted to obtain a U.S. passport, according to the plea agreements. At the time of his arrest, Tello-Rojas had assumed the identity of Ocasio-Cancel, a Puerto Rican U.S. citizen.
The Chicago offices of ICE’s Homeland Security Investigations (HSI), USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from the HSI San Juan Office and the DSS Resident Office in Puerto Rico. The HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center provided invaluable support with assistance from ICE, USPIS, DSS and IRS-CI offices around the country.
Trial Attorneys Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The U.S. Attorney’s Office of the District of Puerto Rico is providing assistance in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html; www.ssa.gov/pubs/10064.html; and www.irs.gov/privacy/article/0,,id=186436,00.html.
Tulsa Teacher Sentenced to 13 Years for Receiving Child PornographyRead the Press Release
TULSA, Okla.—A Union Public Schools teacher was sentenced today to serve 13 years in federal prison for receiving child pornography followed by 20 years of supervised release, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
James Russell Wilson, 32, of Tulsa, was indicted by a grand jury in April 2016, and pleaded guilty on June 14, 2016.
According to court documents, from October 2014 to about December 2014, Wilson found the public profile of a 12 year-old girl on Instagram and began sending messages to her username on Kik, an online-messaging program. In the course of “chatting” with the child over several months, Wilson requested increasingly more revealing and ultimately sexual photos of her and enticed the child to expose herself and perform sexual acts on herself. Wilson sent her pictures in which he exposed himself and engaged in masturbation. Wilson convinced the 12 year-old girl to send, and Wilson received, photos of her engaging in sexually explicit conduct, including the lascivious exhibition of her genitalia through her underwear or other clothing, and both simulated and actual masturbation.
United States Immigration Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and the Royal Canadian Mounted Police were the investigating agencies. Assistant United States Attorneys Andrew J. Hofland and Allen J. Litchfield prosecuted the case.
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 Department of Justice. Led by U.S. Attorneys’ 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 to identify and rescue victims. For more information about Project Safe Childhood and internet safety education, please visit www.justice.gov/psc.
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Three Hartford Men Charged with Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RONALD PEREZ, 28, BYRON RIVERA, 26, and MARCUS TYSON, 30, all of Hartford, have been arrested and charged by criminal complaints with possession with intent to distribute, and distribution of, one kilogram or more of heroin.
As alleged is court documents and statements made in court, on September 13, 2016, members of the FBI’s Northern Connecticut Violent Crimes Task Force, including the Hartford and East Hartford Police Departments, executed a state search warrant at an apartment at 50 Forest Street in Hartford. PEREZ, RIVERA and TYSON were encountered in living room of the apartment. A search of the apartment revealed approximately 50,000 bags of heroin, approximately 300 grams of unpackaged heroin, three fentanyl patches, scales and other items used in the processing and packaging of heroin, and two handguns.
PEREZ, RIVERA and TYSON appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and were ordered detained.
The charge of possession with intent to distribute, and distribution of, one kilogram or more of heroin carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department. The FBI Task Force includes members of the U.S. Marshals Service, Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Texas Syndicate Gang Member Ordered to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – A member of the Texas-based prison and street gang known as the Texas Syndicate has been ordered to federal prison for narcotics trafficking, announced U.S. Attorney Kenneth Magidson. Juan Matias Trevino, 29, of Brownsville, pleaded guilty Feb. 2, 2016, to possession with intent to distribute one kilogram of methamphetamine.
Today, U.S. District Judge Rolando Olvera handed Trevino a 262-month prison sentence to be immediately followed by five years of supervised release. As part of the sentence, Judge Olvera found Trevino was a career-offender and a leader-organizer in the drug trafficking scheme.
Trevino was arrested Oct. 25, 2015, after organizing the shipment of one kilogram of methamphetamine from a Brownsville bus station to the Philadelphia, Pennsylvania, metropolitan area. The narcotics were to be distributed thereafter in the northeast. Law enforcement had been conducting surveillance on Trevino for weeks and observed activities consistent with narcotics trafficking. He was arrested and the narcotics were seized prior to departure from Brownsville.
Trevino will remain in custody.
The Drug Enforcement Administration and the Cameron County Sheriff’s Department Special Investigations Unit conducted the joint investigation. Assistant U.S. Attorney Jason Corley prosecuted the case.
Terry Resident Pleads Guilty to Bankruptcy FraudRead the Press Release
Jackson, Miss - Kenneth Bowman, Jr., 63, of Terry, Mississippi, pled guilty on September 13, 2016, before U.S. District Judge Tom S. Lee, to one count of bankruptcy fraud, announced U. S. Attorney Gregory K. Davis, Acting U. S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Donald Alway.
Bowman, as the officer and representative of Piggly Wiggly of Crystal Springs, Inc., a debtor in Chapter 11 bankruptcy in the Southern District of Mississippi, embezzled approximately $101,733.55 from the bankruptcy estate. Bowman appropriated to his own use estate funds belonging to the debtor, specifically making checks payable to cash and using the cash to satisfy his personal debts, and reducing assets available to creditors.
Bowman will be sentenced on December 15, 2016 at 9:00 a.m. by U.S. District Judge Tom S. Lee and faces a maximum penalty of five years in prison and a $250,000 fine.
The Office of the U. S. Trustee and the U.S. Bankruptcy Court for the Southern District of Mississippi referred the matter to the U. S. Attorney for prosecution. The case was investigated by the FBI and the U.S. Trustee. It was prosecuted by Assistant U.S. Attorney Mary Helen Wall and Trial Attorney Sammye S. Tharp with the Office of the U.S. Trustee.
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 TERESA CHAGOLLA, age 54, 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)(C) and a DRUG FORFEITURE.
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 beginning in or about the end of 2013 and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma, the defendant, TERESA CHAGOLLA, 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 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 more than 20 years imprisonment, up to a $1,000,000 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
Tahlequah Man Pleads Guilty to Drug Conspiracy, ForfeitureRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that GARY WAYNE WILDER, age 36, 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)(C) and a DRUG FORFEITURE.
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 October, 2015, within the Eastern District of Oklahoma, the defendant, GARY WAYNE WILDER, 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 $10,000,000 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
SunTrust Bank Manager Pleads Guilty to Counterfeit SchemeRead the Press Release
RICHMOND, Va. – Patrice A. Callaham, 42, of Richmond, pleaded guilty today to charges of bank fraud related to cashing counterfeit or otherwise fraudulent checks totaling over $55,000 while a Branch Manager at SunTrust Bank on Azalea Avenue in Richmond.
According to the statement of facts filed with the plea agreement, beginning in April 2016, Callaham agreed to funnel forged or counterfeited checks through her Azalea Avenue branch in exchange for a share of the proceeds. Check cashers would arrive at Callaham’s branch, and request to speak with her. Callaham, alerted to their arrival by a co-conspirator, would then open a SunTrust account for the check casher, cash the counterfeit check they offered, and keep $500 of the proceeds for herself. Callaham’s status as Bank Manager allowed her to personally open the accounts and cash the checks for their entire face value without running standard validation protocols. Callaham cashed counterfeit or otherwise fraudulent checks for 15 separate check cashers over the space of approximately four weeks before her activities were discovered. Callaham’s actions resulted in a loss to SunTrust Bank of over $55,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. Magistrate Judge David J. Novak. Assistant U.S. Attorney Thomas A. Garnett is prosecuting the case. This case was investigated by the Richmond Police Department and the United States Secret Service as members of the Metro-Richmond Identity Theft Task Force.
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. 3:16-cr-109.
St. Lucie County Resident Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
A St. Lucie County resident pled guilty yesterday to distributing and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Michael Joseph Roth, 46, of Port St. Lucie, Florida, pled guilty before Chief U.S. Magistrate Judge Frank J. Lynch Jr., in Fort Pierce, Florida to the charges of distribution and possession of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1) and 2252 (a)(4)(B) and (b)(2). Roth faces a mandatory minimum of five years’ up to a twenty-year maximum term of imprisonment and a lifetime of supervised release. In addition, Roth will be required to register as a sex offender.
According to Court records, including a stipulated factual basis in support of Roth’s guilty plea, on March 7, 2016, an undercover investigator (UC) with the Swiss Federal Police, utilizing a peer to peer file (P2P) sharing network established contact with user “Lindamom76”. “Lindamom76” shared material in four encrypted folders with the Swiss UC, by providing his password during a chat conversation. As a result, the Swiss UC was able to download picture and video files depicting child pornography. Law enforcement traced the internet protocol (IP) address of “Lindamom76” to Roth in Port Saint Lucie, Florida.
On May 20, 2016, law enforcement officers executed a federal search warrant at Roth’s residence and seized a laptop computer and a tower PC, containing the P2P software. During an interview, Roth admitted that he used the P2P software and user name “Lindamom76.”
A forensic examination of the computer revealed Roth’s communications with the Swiss UC on March 7, 2016. Additional chats were found wherein Roth, using an assumed identify of a mother of two teenage daughters, requested child pornography depicting incest, young girls, and pregnant teens. In discovered chats with other P2P users, Roth discussed password requests in order to distribute, receive and trade images of child pornography.
Mr. Ferrer commended the investigative efforts of the FBI, MCSO and the Swiss Federal Police for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Portland Man Sentenced to 3 Years for Ecstacy and Firearms OffensesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Isaac Allen, 23, of South Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 3 years in prison and 3 years of supervised release for possessing with intent to distribute ecstacy (3,4 methylenedioxymethamphetamine (MDMA)) and for illegally possessing firearms. Allen pled guilty to these offenses on March 17, 2016.
According to court records and evidence introduced at the plea hearing, Allen bought ecstasy from European suppliers, paid for it with “Bitcoin,” and had it shipped to the United States where he sold it to customers, one of whom was cooperating with federal investigators. Bitcoin is a digital currency that is not backed by any country’s central bank. On December 2, 2015, Allen’s residence was searched and agents seized, among other things, distributable quantities of ecstasy, a handgun and four loaded magazines. While the search was ongoing, Allen was arrested after being stopped in a vehicle a short distance from his residence. Agents seized a loaded handgun from the vehicle’s glove compartment.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the South Portland Police Department.
Smith County Man Sentenced for Drug ViolationsRead the Press Release
TYLER, Texas – A 23-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Maldonado Barragan was found guilty by a jury on Feb. 10, 2016, of conspiracy to possess with intent to distribute methamphetamine, aiding and abetting, possession with intent to distribute methamphetamine, possession of a firearm while illegally in the United States, and possession of a firearm during a drug trafficking crime. Barragan was sentenced to 248 months in federal prison by U.S. District Judge Michael H. Schneider on Sep. 13, 2016.
According to information presented in court, the Defendant supplied methamphetamine for several months in the spring of 2014. An eight-ounce seizure occurred in Palestine, Texas on Mar. 31, 2014 which was later tied to the Defendant. Additionally, a four-pound seizure occurred on May 12, 2014 in Tyler, Texas. The Defendant’s fingerprints were later found on the packaging. Barragan was indicted by a federal grand jury on Oct. 28, 2015.
Barragan was also ordered to forfeit $50,000 cash and a vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety and the Anderson County Sheriff’s Office and was prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Ryan Locker.
Sex Offender Sentenced to 10-Year Prison TermRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on August 29, 2016, Michael E. Fisher was sentenced to 10 years in federal prison by Chief United States District Court Judge Christina Reiss.
In February and March, 2015, Fisher contacted several Burlington area middle school girls, aged 12-14, through Facebook. The girls reported the contacts to their parents and to the Burlington Police Department. Fisher was a registered sex offender at the time, based upon a prior Vermont felony conviction. In response, Vermont’s Internet Crimes Against Children Task Force (“ICAC”) initiated an investigation. ICAC official and South Burlington Police Sergeant Andrew Chaulk made undercover contact with Fisher on Facebook, posing as a 13-year-old middle school student. Over the course of three days, Fisher sent a multitude of Facebook messages to the purported student, pressing her to have sex with him. He urged her to meet him at Dorset Street Park in South Burlington at Noon on April 3, 3015, to have sex in a public restroom. Upon arrival at the park on April 3 at Noon, he was arrested by a U.S. Secret Service agent assisting in the investigation, and Sgt. Chaulk.
In March, 2016, Fisher was convicted after a jury trial in Burlington of attempting to persuade, induce, entice or coerce a minor to engage in illegal sex, using a facility of interstate commerce.
Under the U.S. Sentencing Guidelines, based upon the offense and his recidivism, Fisher’s imprisonment range was 151-188 months. The federal statute under which he was convicted provided for a mandatory minimum 10 years of imprisonment. At a sentencing hearing on August 29, Chief Judge Reiss imposed the 10-year term, to be followed by 10 years of supervised release.
Fisher has been in custody since his 2015 arrest. The United States Attorney thanked the Burlington Police Department, the South Burlington Police Department, ICAC, and the U.S. Secret Service for their work on the case. Fisher was represented by Federal Public Defender Michael Desautels. The United States was represented by Assistant U.S. Attorneys William Darrow and Kunal Pasricha.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Gerald Sentell, 45, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Sentell is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 35, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sentell, Mendiola and 14 co-defendants were charged in a 24-count indictment filed on Sept. 22, 2015. Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles.
During today’s proceedings, Sentell pled guilty to conspiracy, possession of methamphetamine with intent to distribute and use of a communication device to facilitate a drug trafficking crime. In entering the guilty plea, Sentell admitted to conspiring with his co-defendants to distribute methamphetamine in Chaves County and using a communication device, a telephone, to further commission that crime from June 2015 through July 31, 2015. Sentell further admitted that on July 17, 2015, he possessed 58.5 grams of methamphetamine and distributed it to a co-defendant.
At sentencing, Sentell faces a statutory minimum penalty of ten years and a maximum of life in prison. Sentell remains in federal custody pending a sentencing hearing which has yet to be scheduled.
To date, six other defendants charged in the federal indictment have entered guilty pleas. The remaining defendants have entered not guilty pleas to the indictment. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Riverside ‘Prepper’ Who Stockpiled Arsenal near College Campus Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
LOS ANGELES – A Riverside man and self-proclaimed “Doomsday Prepper” who possessed an arsenal of weapons and thousands of rounds of ammunition has pleaded guilty in federal court to being a felon in possession of firearms and ammunition.
Hector Mariscal, 41, pleaded guilty Monday in United States District Court and admitted that he unlawfully possessed semi-automatic firearms, shotguns, rifles, a receiver for an AR-15 machine gun, and various types of ammunition. Mariscal also admitted in court that he was not legally allowed to possess these items because he previously sustained felony convictions for burglary – and being a felon in possession of a firearm.
According to court documents, law enforcement officers executed a federal search warrant at Mariscal’s residence near Riverside City College in June. During the search, law enforcement seized firearms, thousands of rounds of ammunition, tasers, silencers, body armor and a flare launcher.
According to an affidavit filed in the case, on the date of the search, Mariscal admitted that he was a convicted felon who illegally possessed multiple firearms and thousands of rounds of ammunition. Mariscal repeatedly described himself as a “Doomsday Prepper,” who in connection with his preparation also collected knives and other dangerous items, including a flare launcher. According to the affidavit, Mariscal told investigators that he regularly goes to the swap meet to obtain firearms and other dangerous weapons, stating, “You’d be surprised what you can find at a swap meet.”
“This defendant’s continued affinity for guns has earned him a second felony conviction, this time for illegally possessing firearms,” said United States Attorney Eileen M. Decker. “The defendant flagrantly violated laws designed to protect the public by keeping firearms away from convicted felons, and now he faces a substantial period of time in a federal prison.”
The case against Mariscal is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Mr. Mariscal previously admitted to a felony conviction for the same conduct,” said ATF Special Agent in Charge Eric D. Harden. “ATF works with our partner agencies to identify and prosecute those that choose to repeatedly circumvent regulations designed to protect our communities from gun violence.”
Mariscal pleaded guilty before United States District Judge Manuel Real, who is scheduled to sentence the defendant on November 21. At the time of sentencing, Mariscal faces a statutory maximum sentence of 10 years in federal prison.
The Riverside Police Department and the Los Angeles Police Department provided substantial assistance in the investigation.
This case is being prosecuted by Assistant United States Attorney Reema El-Amamy.
Repeat Federal Offender Sentenced for Decade Long Embezzlement Scheme that Netted over $1.3 Million DollarsRead the Press Release
BOSTON – A former officer of a Woburn company was sentenced today in U.S. District Court in Boston for embezzling over $1.3 million dollars from her employer over a ten-year period.
Dawnmarie Prince, 47, of Fitchburg, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution of $1,381,664. In June 2016, Prince pleaded guilty to eight counts of bank fraud and one count of aggravated identity theft.
Between 2000 and 2015, Prince worked as an office manager of a small, life science technology firm. As office manager, Prince had access to the firm’s electronic accounting program, which the company relied on to track purchase orders and vendor invoices, as well as to print company checks. From at least 2005 to May 2015, Prince used her position as office manager to create and steal hundreds of the company’s checks, which she made payable to herself or to her son. Prince then forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts.
To conceal her criminal conduct and avoid detection, Prince intercepted bank statements and removed all copies of the negotiated checks. She also falsified entries into the accounting program to make it appear as if the checks had been used to satisfy legitimate vendors payments, when in fact, no such invoices were due and Prince had deposited the checks into her personal bank accounts. Over the course of the fraud, Prince embezzled over $1.3 million dollars, which she used to fund trips to casinos, annual vacations, car purchases, and other personal and entertainment expenses such as trips to car shows across the country.
In 2001, Prince was convicted in federal court in Boston of mail fraud for defrauding a previous employer and sentenced to three years of probation and ordered to pay restitution. Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan. Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan. As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account. Prince’s recent fraud came to light after Prince provided false and incomplete financial information to the U.S. Attorney’s Office’s Financial Litigation Unit, which was responsible for collecting the outstanding restitution payments on the 2001 case.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. The case was prosecuted by Assistant United States Attorney Jordi de Llano of Ortiz’s Economic Crimes Unit.
Providence Felon Sentenced on Drug, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 40, of Providence, was sentenced today to 72 months in federal prison for trafficking crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Duopu to serve 4 years supervised release upon completion of his prison term. Duopu pleaded guilty on June 24, 2016, to one count of possession with the intent to distribute 28 grams or more of crack cocaine, one count of distribution of 28 grams or more of crack cocaine, three counts of distribution of crack cocaine, and one count of being a felon in possession of a firearm.
According to court records and information presented to the court, in October and November 2015, an ATF Task Force investigation of Duopu’s drug trafficking activities included at least four purchases of crack cocaine by an ATF undercover Task Force agent. The purchases ranged in amounts of between 8 and 52 grams, for between $375 and $3,200.
On November 12, 2015, Duopu was arrested by ATF Task Force agents as he left his Providence residence to meet with an undercover agent for a previously arranged delivery of crack cocaine. Agents seized nearly 54 grams of crack cocaine and $538 in cash from Duopu. A court authorized search of Duopu’s residence which immediately followed his arrest resulted in the seizure of more than 67 grams of crack cocaine, nearly $20,300 dollars in cash and a loaded semi-automatic firearm.
During the course of the investigation, law enforcement seized from Duopu more than 200 grams of crack cocaine and nearly $21,000 in cash.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah, with the assistance of Assistant U.S. Attorney Paul F. Daly, Jr.
The Pawtucket Police Department and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force is comprised of agents and officers from ATF; the Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Previously Convicted Felon Sentenced for Gun PossessionRead the Press Release
DAYTON – Chase A. Crump, 27, of Dayton, was sentenced in U.S. District Court to 48 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Dayton Police Chief Richard Biehl, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, who are all members of the Community Initiative to Reduce Gun Violence (CIRGV) announced the sentence handed down September 13 by U.S. District Judge Walter H. Rice.
According to court documents, Dayton Police officers approached Crump as he was sitting in a parked car at 1819 West Third Street on March 2, 2016. The officers saw Crump holding a plastic bag containing illegal drugs. One of the officers saw a pistol protruding from between the driver’s seat and the middle console and told Crump he was under arrest. Crump fought with the officers, who subdued and arrested him. Officers seized a 9mm handgun, 53 grams of a heroin/fentanyl mixture, five grams of cocaine, a scale, multiple cell phones and cash.
Crump’s criminal history includes prior felony convictions in Montgomery County Common Pleas court for trafficking in heroin, possession of heroin, and possession of cocaine. Crump was released from prison just a month before this offense.
Crump has been in custody since his arrest. He pleaded guilty on June 9, 2016 to a Bill of Information charging him with one count of possession of a firearm by a convicted felon.
Acting U.S. Attorney Glassman commended the cooperative investigation by those involved in the Community Initiative to Reduce Gun Violence, as well as Assistant United States Attorney Andrew Hunt, who is representing the United States in this case.
Peabody Man Sentenced to Prison on Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man was sentenced today in U.S. District Court in Boston for receipt and possession of child pornography.
Patrick Lynch, 24, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and 10 years of supervised release. Upon release, Lynch must register as a sex offender. In June 2016, Lynch pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography.
Beginning in May 2013, Lynch began receiving emails containing images and videos of children as young as one-year-old being sexually exploited. On Dec. 12, 2014, during the execution of a search warrant at his residence, Lynch admitted to law enforcement officers that he received emails containing pictures of elementary school-aged children naked, posing, and engaging in sexual acts. He admitted to viewing images of child pornography on a website and to viewing child pornography on his laptop while at a Boy Scout camp in New Mexico. Lynch also communicated online with children and exchanged sexually explicit images. Prior to law enforcement executing the search warrant, Lynch deleted the application and cleared his phone’s Internet history.
A further investigation revealed that Lynch had been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case was prosecuted by Assistant U.S. Attorney Suzanne Jacobus of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Panama City Man Charged with Committing Federal Child Pornography CrimesRead the Press Release
PANAMA CITY, FLORIDA – David Michael Hobby Rossner, 35, of Panama City, was arraigned today in the U.S. District Court in Panama City after a federal grand jury returned an indictment charging him with production, receipt, distribution, and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, in December 2015, Rossner persuaded a minor to engage in sexually explicit conduct for the purpose of producing child pornography. The indictment further alleges that, during various dates in 2015 and 2016, Rossner received, distributed, and possessed child pornography. The trial is scheduled for November 21, 2016, at 8:15 a.m.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Bay County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Christopher J. Thielemann.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Owner of Illinois Home Health Company Admits Paying Illegal Kickbacks to 20 Medical Directors for Referrals of Medicare PatientsRead the Press Release
CHICAGO — The owner of a home health care company headquartered in Lemont admitted in federal court today that he paid illegal kickbacks to procure referrals of elderly patients on Medicare.
ROMY MACASAET JR. paid kickbacks to medical directors to obtain referrals of Medicare beneficiaries to his company, Home Bound Healthcare Inc., which was one of the largest home health care and hospice companies in Illinois. Macasaet acknowledged in a plea agreement that he retained and paid Medical Directors a monthly fee solely for the purpose of obtaining patient referrals, and not for medical services. Macasaet also acknowledged that he used Medical Director agreements as a way to conceal the payment of kickbacks.
Between approximately December 2006 and September 2014, Macasaet paid $789,327 in bribe payments to approximately 20 medical directors, according to the plea agreement. As a result of the payments, Home Bound improperly sought and received Medicare reimbursements totaling several million dollars.
Macasaet, 47, of Homewood, pleaded guilty to one count of violating the Anti-Kickback Statute. The conviction is punishable by up to five years in prison. U.S. District Judge Samuel Der-Yeghiayan set sentencing for Feb. 15, 2017, at 10:30 a.m.
Macasaet and Home Bound also agreed to pay the United States $6.8 million to resolve civil false claim and anti-kickback allegations, per the terms of a settlement agreement announced today. The agreement settles claims that Home Bound and its subsidiaries violated the federal False Claims Act and Anti-Kickback Statute by obtaining referrals through illegal kickbacks that served as financial inducements for false certifications of eligibility for home health services, and by improperly submitting those false claims to Medicare for reimbursement.
As part of the civil settlement, Macasaet agreed to immediately resign his employment with Home Bound and refrain from seeking future employment with the company. Macasaet further agreed to divest his ownership interest in Home Bound within 120 days of formal entry of the agreement. The settlement was reached by the Justice Department on behalf of the Office of the Inspector General of the U.S. Department of Health and Human Services.
Contemporaneous to the settlement agreement, Home Bound and the HHS Inspector General’s Office entered into a corporate integrity agreement to promote compliance with the directives of Medicare, Medicaid and other federal health care programs. As part of the integrity agreement, Home Bound must establish a compliance program to develop and implement policies, procedures and practices designed to ensure compliance with the requirements of federal health care programs.
The plea agreement and civil settlement were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Substantial investigative assistance was provided by the U.S. Department of Labor Office of Inspector General, and the Chicago Field Office of the U.S. Department of State Diplomatic Security Service.
The government is represented in the criminal case by Assistant U.S. Attorney Sunil Harjani, and in the civil case by Assistant U.S. Attorney David R. Lidow.
Plea Agreement