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9 September 2016
Sulphur Springs Restaurant Owner Guilty of Child Exploitation ViolationsRead the Press Release
PLANO, Texas — A 53-year-old Sulphur Springs, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Fernando Sosa-Pintor was found guilty by a jury of two counts of distributing and one count of possessing child pornography. The verdict was reached on Sep. 8, 2016 following a three-day trial before U.S. District Judge Marcia A. Crone.
According to the indictment, detectives from the Garland Police Department and the Longview Police Department conducted undercover investigations into peer-to-peer file sharing networks in August 2014. Detectives testified at trial that they downloaded videos of child pornography from an IP address that was traced back to Tradicion Mexicana, a restaurant owned by Sosa-Pintor in Sulphur Springs. Members of the Hopkins County Sheriff’s Office executed a search warrant at Tradicion Mexicana on Sep. 23, 2014, at which time they recovered a desktop computer that contained other child pornography videos. Officers testified at trial that Sosa-Pintor spoke with them and admitted to using the peer-to-peer file sharing program to obtain child pornography. During the trial, prosecutors introduced evidence from the undercover operations, Sosa-Pintor’s interview with law enforcement, and the contents of his desktop computer.
Under federal statutes, Sosa-Pintor faces up to 20 years in federal prison on each charge. This is the maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Hopkins County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
Statement of the United States Attorney for the Central District of California after the release of the Critical Incident Review of the San Bernardino Public Safety Response to the December, 2015 Terrorist Shooting IncidentRead the Press Release
LOS ANGELES – Today United States Attorney for the Central District of California Eileen M. Decker issued the following statement regarding the Critical Incident Review of the San Bernardino Public Safety Response to the Terrorist Shooting on December 2, 2015:
“This report highlights the extraordinary bravery of all of the first responders who put their lives on the line in the midst of a terrorist rampage. The report also underscores the horror and suffering of the many victims during this calculated and vicious attack. These victims had no chance to protect themselves as a result of the callous perpetration of violence, while others heroically sacrificed themselves in an attempt to stop the shooting. In the face of this unfathomable suffering, the law enforcement personnel and citizens who put themselves in harm’s way to help others exemplifies the very best that our country has to offer. This report records the lessons learned from the tragic events of December 2, 2015, and also stands as a testament to the bravery and skills of our first responders.”
South Florida Man Sentenced for Manufacturing and Passing Counterfeit Federal Reserve NotesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Ralph Darel Lipsey (28, Miramar) to 30 months in federal prison for manufacturing and passing counterfeit Federal Reserve notes. As part of the sentence, the Court ordered Lipsey to pay restitution to the various businesses he defrauded. The Court also ordered Lipsey to forfeit the monetary proceeds he obtained by passing the notes, as well as the computer media he used to manufacture them.
According to court documents, in January 2015, Lipsey and his co-defendants, Marcos Rogelio Blake and Leon White, passed or attempted to pass counterfeit Federal Reserve notes at multiple businesses in Nassau County. Law enforcement officers subsequently issued an alert for the three men. On January 17, 2015, a deputy from the Nassau County Sheriff’s Office stopped a vehicle with the three men inside. Blake, who was driving the vehicle, was detained due to a suspended license. During a search, the deputy found genuine and counterfeit bills on Blake. An inventory search of the vehicle yielded $1,600 in additional counterfeit notes and a lock box. The lock box contained computer media and supplies used to manufacture counterfeit bills.
Marcos Rogelio Blake (25, New York) and Leon White (30, Orlando) previously pleaded guilty for their roles in this case. Blake was sentenced to 18 months in federal prison and White was sentenced to time served, followed by three years of probation.
This case was investigated by the Nassau County Sheriff’s Office and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
South Carolina Man Pleads Guilty to Using Fake Facebook Profiles to Meet and Then Attempt to Coerce Six Colorado Girls into Taking and Sending Him Explicit PhotographsRead the Press Release
DENVER – Christopher George White, age 37, of McCormick, South Carolina, pled guilty yesterday before U.S. District Court Judge R. Brooke Jackson to six counts of coercion and enticement of a minor, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. White, who is in custody, is scheduled to be sentenced by Judge Jackson on December 14, 2016. White’s crimes included using social media, text, and telephone calls to meet, entice, and then threaten minors into taking off clothing or committing sex acts for his own personal pleasure.
According to the stipulated facts contained in the plea agreement, between June 30, 2014 and August 4, 2014 White, targeted child victims ranging from 13 to 14 years of age by using Facebook profiles “Kent Noelle” and “Glenn Black.” White claimed to be a teenage boy while he was truly a 35-year-old man and previously convicted sex offender. He used those profiles and the telephone number 864-602-1614 to correspond with minor girls, including the six minor girls from Colorado. After first befriending them online, and then texting and even talking with the minors by phone, the defendant then began to use harassment, threats of physical harm, and threats to post sexually-explicit photographs of the children or their friends on social media, coercing and attempting to coerce minors to produce and send him child pornography of themselves.
White faces not less than 10 years, and up to life in federal prison, as well as up to a $250,000 fine for each of the six counts of coercion and enticement of a minor. He will also be required to register as a sex offender once released from prison.
It is possible that there are more minor victims of White. If you believe you or your child has been victimized by White via Facebook profiles of “Kent Noelle” and “Glenn Black” please call HSI toll free at 866-347-2423.
This case was investigated by HSI and the Larimer County Sheriff’s Office.
White is being prosecuted by Assistant U.S. Attorneys David Tonini and Gregory Holloway.
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 and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Six Individuals Face 47-Count Second Superseding Indictment for Health Care Services FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a Federal Grand Jury has returned a 46-count superseding indictment against six individuals charging approximately $13,655,094 in Medicare fraud.
Specifically, HENRY EVANS, age 71; MICHAEL JONES, age 47; PAULA JONES, age 45; SHELTON BARNES, age 62; GREGORY MOLDEN, age 60, all of New Orleans and JONATHON NORA, age 29, of River Ridge, were indicted yesterday for conspiracy to commit health care fraud, conspiracy to defraud the United States and to receive and pay health care kickbacks, and health care fraud. BARNES was also charged with obstruction of a federal audit.
The Indictment is the third one involving many of the same parties who were originally indicted in March of 2015. Nineteen individuals and/or companies have already pled guilty to charges associated with the original Indictment.
This Second Superseding Indictment is related to the Indictment returned in March 2015 charging Lisa Crinel and others, some of whom have entered guilty pleas. According to the Second Superseding Indictment, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicare for medically unnecessary home health services for patients who were not homebound. DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES, known as “House Doctors,” ordered home health services for Medicare beneficiaries who had no legitimate medical necessity. The House Doctors falsely signed home health orders regardless of the beneficiary’s needs, homebound status, or diagnoses. In return, DRS. BARNES, EVANS, and MOLDEN received monthly payments fraudulently characterized as medical consultant or director fees for which they provided no services other than fraudulently certifying Medicare beneficiaries for unnecessary home health services. Instead of receiving monthly payments from the home health agency, Abide hired PAULA JONES, DR. MICHAEL JONES’ wife and, thereafter, inflated salary payments to PAULA JONES represented MICHAEL JONES’ fees for fraudulently certifying home health for ineligible Medicare beneficiaries.
Marketers contacted JONATHON NORA and others to confirm that the person fraudulently referred for home health was a Medicare beneficiary. Once NORA determined the referred individual was a Medicare beneficiary, NORA scheduled a physician visit, usually with an Abide House Doctor, well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
Abide generated plans of care reflecting the falsely created assessments. The plans of care were given to DRS. BARNES, EVANS, MOLDEN and MICHAEL JONES to falsely certify and recertify medically unnecessary episodes of home health. PAULA JONES fraudulently billed Medicare, on behalf of Abide, for the medically unnecessary home health services.
The Superseding Indictment also charges SHELTON BARNES with obstruction of a federal audit in connection with his billing to Medicare Part B of services related to the medically unnecessary home health services.
If convicted, DR. SHELTON BARNES faces a possible maximum sentence of 170 years imprisonment; DR. HENRY EVANS faces a possible maximum sentence of 95 years imprisonment; DR. GREGORY MOLDEN faces a possible maximum sentence of 115 years imprisonment; and DR. MICHAEL JONES faces a possible maximum sentence of 125 years imprisonment. If convicted, JONATHAN NORA faces a possible maximum sentence of 25 years imprisonment and PAULA JONES faces a possible maximum sentence of 15 years imprisonment. For each count for which any defendant is convicted, they are subject to a maximum $250,000 fine.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman are in charge of the prosecution.
Sioux Falls Man Indicted for Attempted Enticement of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Transfer of Obscene Material to a Minor and Attempted Enticement of a Minor Using the Internet.
Kevin Dolejsi, age 30, was indicted on September 7, 2016. He appeared before U.S. Magistrate Veronica L. Duffy on September 8, 2016, and pled not guilty to the Indictment.
The penalty upon conviction is a minimum term of 10 years in custody or a lifetime maximum, and/or a $250,000 fine, 5 years of supervised release, and $5,000 to the Federal Crime Victims Fund. Restitution may also be ordered.
The events leading to the charge occurred between August 9 and August 17, 2016, in Sioux Falls.
The charge is merely an accusation and Dolejsi is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Dolejsi was released on conditions pending trial. A trial date has not been set.
Serial Fraudster Pleads Guilty to Investment Advisor Fraud and Money LaunderingRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of RANDY MILAND, 62, for operating a Ponzi scheme through which he stole or attempted to steal more than $500,000 from purported investors. MILAND pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
“Randy Miland is a serial scam artist who has had a long career of defrauding his victims with false claims that he would use their money for legitimate investments,” said Minnesota Commerce Commissioner Mike Rothman. “He may once have worked as a chiropractor, but his real profession has been operating Ponzi schemes to steal people’s money. The Commerce Fraud Bureau worked with federal authorities to stop Miland’s criminal activities and prevent even more Minnesotans from being ripped off by him.”
“Today's guilty plea of Randy Miland demonstrates how law enforcement cooperatively works together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain,” said Special Agent in Charge Shea Jones of St. Paul Field Office IRS Criminal Investigation. “IRS Special Agents will continue to use their financial expertise to identify and trace laundered funds in these types of investor fraud schemes.”
“Despite two prior convictions, Randy Miland continued to steal from friends and acquaintances through lies and misrepresentations,” said Assistant United States Attorney Joseph H. Thompson. “The Minnesota Department of Commerce and Criminal Investigation Division of the IRS worked together to investigate this case and put an end to Miland’s fraudulent conduct.”
According to the defendant’s guilty plea, between 2010 and 2014, MILAND fraudulently solicited approximately $575,000 from investors, telling them that he would use their money to invest in futures and other legitimate investments. Instead, he used their money to pay personal expenses, including court-ordered restitution to victims of his prior scams, and to make Ponzi-type payments to other purported investors.
MILAND concealed from the new victims that he had been twice convicted of fraudulent conduct, that he was forbidden by the Minnesota Department of Commerce from offering or selling securities, and that he still owed more than $1.5 million in restitution to victims of prior schemes.
MILAND was convicted in 1999 in state court of theft by swindle and ordered to pay more than $1.5 million in restitution to the victims of his scheme. As of May 2016, MILAND still owed to the victims nearly the entire amount.
MILAND was convicted in 2006 in federal court of fraud and ordered to pay more than $250,000 in restitution to the victims. As of May 2016, MILAND owed approximately $124,000 in restitution.
The case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Commerce Fraud Bureau.
Defendant Information:RANDY MILAND, 62
White Bear Lake, Minn.Convicted: • Mail fraud, 1 count
• Money laundering, 1 countSacramento Man Sentenced to over 12 Years in Prison for Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Michael Bailey, 61, of Sacramento, to 12 years and seven months in prison for receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2014 and July 2014, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, they found a computer containing numerous images and videos depicting the sexual exploitation of children and making those files available to others over the internet. On May 20, 2016, Bailey pleaded guilty and has been in custody since his arrest on July 22, 2014.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force (ICAC), a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Matthew G. Morris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Rutgers Organics Corporation Agrees to $18.75 Million Cleanup and $500,000 Restoration of Injured Natural Resources at Nease Superfund Site in OhioRead the Press Release
The Department of Justice, U.S. Environmental Protection Agency (EPA), U.S. Department of Interior and the state of Ohio announced today that Rutgers Organics Corporation (Rutgers) has agreed to complete the cleanup of the Nease Chemical Superfund Site (site) near Salem, Ohio, estimated to cost $18.75 million. The agreement is memorialized in a consent decree lodged in federal court today in Youngstown, Ohio. Under the consent decree, Rutgers also agrees to restore injured natural resources at the site and nearby areas, at a cost of approximately $500,000. Further, Rutgers will reimburse federal and state agencies their past response and assessment costs of about $1 million.
“Today’s consent decree is a significant milestone in our efforts to make the environment cleaner and safer for the citizens of Salem and to protect and restore our valuable natural resources in that region” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “I want to thank our state partners, as well as recognize the cooperation of defendant Rutgers, for joining us on a path forward to clean up the contaminated Nease Site while preserving undeveloped land and protecting local drinking water sources.”
“This agreement will undo the damage done in the past while preserving creeks and the watershed for future generations,” said U.S. Attorney Carole S. Rendon for the Northern District of Ohio.
“This settlement will protect human health and the environment in northeast Ohio by reducing the risk of exposure to potentially harmful chemicals,” said U.S. EPA Acting Regional Administrator Robert Kaplan. “EPA looks forward to working with our federal and state partners to clean up the site and restore the Little Beaver Creek watershed.”
“The U.S. Fish and Wildlife Service is looking forward to continuing the cleanup and restoration of injured natural resources at the Nease Chemical Site,” said Service Deputy Midwest Regional Director Charlie Wooley. “This settlement enables the Service and other trustees to work together to restore lost resources and protect valuable habitat in the Little Beaver Creek watershed.”
In a complaint filed today simultaneously with the lodging of the consent decree, the federal and state agencies allege that, between 1961 and 1973, portions of the site were owned and operated by a chemical manufacturing plant known as the Nease Chemical Company (Nease Chemical). Nease Chemical produced specialty products including pesticides such as Mirex, a probable human carcinogen no longer produced in the United States. Hazardous substances derived from these specialty products were detected in the soil, ground water, sediments and flood plains/wetlands in the area, as well as in the fish in the nearby main surface water body, the Middle Fork Little Beaver Creek. Rutgers acquired the assets of Nease Chemical, which ceased operations in 1973. Since 1988, Rutgers has cooperated with EPA to investigate and clean up the site.
Under the consent decree, Rutgers will complete EPA’s Operable Unit 2 remedy at the site by, among other things, capping soil and treating the ponds and ground water. Rutgers will also complete EPA’s Operable Unit 3 remedy at the site, by, among other things, removing contaminated sediment and floodplain soil and replacing with clean material. The total cleanup, including long term operations and maintenance, is estimated to cost $18.75 million.
The contamination released from the chemical plant over time has injured natural resources in and around the site, including the underlying groundwater aquifers which have become unusable as a source of potable water. As part of the settlement, Rutgers will remove a low-head dam, known as the Lisbon Dam on the Middle Fork Little Beaver Creek and restore adjacent streamside habitat. Those projects, estimated to cost up to $150,000, are expected to help establish a free-flowing stream with a healthy and diverse fish population.
Rutgers will also fund a $366,000 trust to conserve a variety of lands in the Little Beaver Creek watershed, especially lands that are subject to pressures from new development in the area, to help provide valuable habitat. The trust will also seek to conserve property to protect local drinking water source areas from further contamination.
Further, Rutgers will reimburse the federal and state agencies for their past response and assessment costs, totaling approximately $1 million and agrees to fund all future oversight and assessment costs.
“This settlement will help protect the environment and Ohio families,” said Ohio Attorney General Mike DeWine. “It requires the cleanup of a long-contaminated site and the restoration and preservation of natural resources.”
“About 280-acres of habitat were contaminated by hazardous substances injuring surface and ground waters at the former Nease Chemical site,” said Ohio EPA Director Craig W. Butler. “Healthy streams and waterways are critical to Ohio’s citizens and our economy. This consent decree is a welcome step forward after many years of work to bring the area stream habitats back to healthy, functioning waterways and protecting drinking water resources into the future.“
Today’s settlement, lodged with the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the Nease Site: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0504619]
Rutgers Organics Corp. agrees to $18 million cleanup and $500,000 restoration of injured natual resources at Nease Superfund site near SalemRead the Press Release
The Department of Justice, U.S. Environmental Protection Agency (EPA), U.S. Department of Interior and the state of Ohio announced today that Rutgers Organics Corporation (Rutgers) has agreed to complete the cleanup of the Nease Chemical Superfund Site (site) near Salem, Ohio, estimated to cost $18.75 million. The agreement is memorialized in a consent decree lodged in federal court today in Youngstown, Ohio. Under the consent decree, Rutgers also agrees to restore injured natural resources at the site and nearby areas, at a cost of approximately $500,000. Further, Rutgers will reimburse federal and state agencies their past response and assessment costs of about $1 million.
“Today’s consent decree is a significant milestone in our efforts to make the environment cleaner and safer for the citizens of Salem and to protect and restore our valuable natural resources in that region” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “I want to thank our state partners, as well as recognize the cooperation of defendant Rutgers, for joining us on a path forward to clean up the contaminated Nease Site while preserving undeveloped land and protecting local drinking water sources.”
"This agreement will undo the damage done in the past while preserving creeks and the watershed for future generations," U.S. Attorney Carole S. Rendon said.
“This settlement will protect human health and the environment in northeast Ohio by reducing the risk of exposure to potentially harmful chemicals,” U.S. EPA Acting Regional Administrator Robert Kaplan said. “EPA looks forward to working with our federal and state partners to clean up the site and restore the Little Beaver Creek watershed.”
“The US Fish and Wildlife Service is looking forward to continuing the cleanup and restoration of injured natural resources at the Nease Chemical Site,” said Service Deputy Midwest Regional Director Charlie Wooley. “This settlement enables the Service and other trustees to work together to restore lost resources and protect valuable habitat in the Little Beaver Creek watershed.”
In a complaint filed today simultaneously with the lodging of the consent decree, the federal and state agencies allege that, between 1961 and 1973, portions of the site were owned and operated by a chemical manufacturing plant known as the Nease Chemical Company (Nease Chemical). Nease Chemical produced specialty products including pesticides such as Mirex, a probable human carcinogen no longer produced in the United States. Hazardous substances derived from these specialty products were detected in the soil, ground water, sediments and flood plains/wetlands in the area, as well as in the fish in the nearby main surface water body, the Middle Fork Little Beaver Creek. Rutgers acquired the assets of Nease Chemical, which ceased operations in 1973. Since 1988, Rutgers has cooperated with EPA to investigate and clean up the site.
Under the consent decree, Rutgers will complete EPA’s Operable Unit 2 remedy at the site by, among other things, capping soil and treating the ponds and ground water. Rutgers will also complete EPA’s Operable Unit 3 remedy at the Site, by, among other things, removing contaminated sediment and floodplain soil and replacing with clean material. The total cleanup, including long term operations and maintenance, is estimated to cost $18.75 million.
The contamination released from the chemical plant over time has injured natural resources in and around the site, including the underlying groundwater aquifers which have become unusable as a source of potable water. As part of the settlement, Rutgers will remove a low-head dam, known as the Lisbon Dam on the Middle Fork Little Beaver Creek, and restore adjacent streamside habitat. Those projects, estimated to cost up to $150,000, are expected to help establish a free-flowing stream with a healthy and diverse fish population.
Rutgers will also fund a $366,000 trust to conserve a variety of lands in the Little Beaver Creek watershed, especially lands that are subject to pressures from new development in the area, to help provide valuable habitat. The trust will also seek to conserve property to protect local drinking water source areas from further contamination.
Further, Rutgers will reimburse the federal and state agencies for their past response and assessment costs, totaling approximately $1 million, and agrees to fund all future oversight and assessment costs.
“This settlement will help protect the environment and Ohio families,” Ohio Attorney General Mike DeWine said. “It requires the cleanup of a long-contaminated site and the restoration and preservation of natural resources.”
“About 280-acres of habitat were contaminated by hazardous substances injuring surface and ground waters at the former Nease Chemical site,” according to Ohio EPA Director Craig W. Butler. “Healthy streams and waterways are critical to Ohio’s citizens and our economy. This consent decree is a welcome step forward after many years of work to bring the area stream habitats back to healthy, functioning waterways and protecting drinking water resources into the future.“
Today’s settlement, lodged with the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period following notification in the Federal Register and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website: www.justice.gov/enrd/Consent_Decrees.html.
For more information about the Nease Site: https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0504619]
Romanian Man Indicted in Capital Region ATM Skimming ConspiracyRead the Press Release
ALBANY, NEW YORK – Ilie Sitariu, age 36, a Romanian national, was indicted yesterday for conspiring to steal account information and personal identification numbers (PINs) by using skimming devices that he secretly installed on bank ATMs in the Capital Region and the Berkshires.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Sitariu was arrested in October 2015 on a criminal complaint and has been in custody since then.
According to the indictment, from August 30, 2015 through October 24, 2015, Sitariu and a co-conspirator used skimming devices and pinhole cameras to secretly capture the account numbers and PINs of customers who used ATMs at First Niagara Bank, Trustco Bank, and Berkshire Bank branches in Chatham, New York, Delmar, New York, and Great Barrington, Massachusetts, respectively. The skimming devices captured the information encoded on the magnetic strips of customers’ bank debit cards, while the pinhole cameras allowed Sitariu and a co-conspirator to record the PINs used by the customers. Sitariu and a co-conspirator then used the information to steal money from the customers’ accounts by making withdrawals at ATMs in New York City.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Sitariu is accused of conspiring to commit bank fraud, access device fraud, and aggravated identity theft. If convicted on all charges, Sitariu faces at least 2 years and up to 30 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 5 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
Rhode Island Tax Return Preparer Pleads Guilty to Preparing Fraudulent Returns and Aggravated Identity TheftRead the Press Release
A Cranston, Rhode Island, resident pleaded guilty yesterday to aiding and assisting in the preparation of false tax returns, wire fraud, theft of government funds and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Peter F. Neronha for the District of Rhode Island.
According to documents filed with the court, Belkis M. Guzman, 48, a tax return preparer who worked at El Centro Multiservicios LLC in Providence, Rhode Island, admitted to preparing false individual income tax returns for clients for tax years 2009 through 2011, which included false dependents, exemptions, tax credits, deductions or expenses. She also admitted to depositing more than 100 fraudulently obtained U.S. Treasury checks totaling more than $800,700 into her personal bank account, which were generated by the filing of false tax returns prepared by others. Guzman distributed a portion of these ill-gotten proceeds to others and received a percentage of the negotiated checks as payment for depositing the checks into her account.
U.S. District Judge William E. Smith for the District of Rhode Island scheduled sentencing for Dec. 2. Guzman faces a statutory maximum sentence of 20 years in prison for the wire fraud count, 10 years in prison for each count of theft of government funds, three years in prison for each count of assisting in the preparation of false tax returns for clients and a mandatory two years in prison for each count of aggravated identity theft, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Neronha commended the hard work of special agents of Internal Revenue Service’s Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Richard Rose and Tax Division Trial Attorney Christopher O’Donnell, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Rapid City Man Indicted for Illegal Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession and Sale of a Stolen Firearm.
Joseph Huddelston, age 43, was indicted on June 21, 2016. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 8, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is ten years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Huddelston illegally possessing a Glock 9mm pistol at Rapid City. The charge is merely an accusation and Huddleston is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Pennington County Sheriff’s Office, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Huddleston was remanded to the custody of the U.S. Marshals Service pending trial.
Pasco County Men Charged in Cross BurningRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging William A. Dennis (55, Spring Hill) and Thomas Herris Sigler, III (45, Land O’ Lakes) with conspiracy to interfere with an interracial couple’s enjoyment of their constitutionally protected housing rights. Dennis is also charged with making false statements to federal law enforcement officers. If convicted on all counts, Dennis faces a maximum penalty of 15 years in federal prison, and Sigler faces a maximum penalty of 10 years in federal prison.
According to the indictment, in 2012, Dennis and Sigler were living on Seward Drive in Port Richey. After an interracial couple moved next door to the house where Sigler was residing, the men repeatedly made racial slurs and racially derogatory statements to the African-American neighbor, which escalated to verbal and physical threats.
On Halloween night, Dennis and Sigler attended a party at a neighbor’s house, where the they and several other Seward Drive residents conspired to burn a cross in the African-American man’s yard to intimidate him. The conspirators constructed a wooden cross and obtained a flammable liquid to pour on the cross. They then carried the cross to the victims’ front yard, leaned it against the victims’ mailbox, and lit the cross on fire.
“Hate-motivated crimes will not be tolerated in our community,” said U.S. Attorney Bentley. “This case underscores our commitment to prosecute those who commit crimes driven by hatred or intolerance.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Josephine W. Thomas and Simon A. Gaugush, with assistance from the Department of Justice’s Civil Rights Division.
Owner of Major Online Colored Contact Lens Business Pleads Guilty in Largest-Ever Investigation of Counterfeit and Misbranded Contact Lenses in the United StatesRead the Press Release
The owner and operator of Candy Color Lenses, a major online retailer of colored contact lenses in the United States, pleaded guilty yesterday to running an international operation importing counterfeit and misbranded contact lenses from suppliers in Asia and then selling them over the internet without a prescription to tens of thousands of customers around the country.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations made the announcement.
Dmitriy V. Melnik, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan of the District of Nevada to one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices.
According to the plea agreement, Melnik imported large quantities of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit and/or unauthorized by the FDA for sale in the United States. Many of these contact lenses bore labels with counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia, he admitted.
As noted in the plea agreement, all contact lenses are medical devices that must receive FDA authorization to enter the United States and be further distributed. Melnik sold “authentic” contact lenses to tens of thousands of customers around the United States without a prescription, adequate directions for use and adequate warnings. After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved, according to the plea agreement. Melnik admitted that some of the contact lenses he sold were tested and found to be contaminated with potentially hazardous bacteria.
As stated in the plea agreement, a substantial part of the fraudulent scheme was committed from outside the United States, and Melnik received at least $1.2 million in gross revenue from this illegal enterprise, including approximately $200,000 alone from the sale of counterfeit Ciba Vision FreshLook COLORBLENDS.
Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.
The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision. The FDA’s Office of Criminal Investigations led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Daniel J. Cowhig of the District of Nevada are prosecuting the case.
The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Northern Kentucky Woman Arraigned on Charges of Communicating a Threat and Making False Statements to Law EnforcementRead the Press Release
COVINGTON, Ky. — On September 8, 2016, the FBI arrested Marie A. Castelli, 55, of Maysville, Kentucky, pursuant to a federal indictment and arrest warrant. The indictment alleges that Castelli knowingly transmitted communications intended to be a threat to injure the person of another in violation of 18 U.S.C. §§ 875(c) and (2). The indictment further alleges that Castelli willfully and knowingly made materially false statements to the FBI in violation of 18 U.S.C. § 1001(a)(2). Today, September 9, 2016, Castelli appeared before a federal judge for an arraignment. The court ordered Castelli detained pending any further orders of the court.
There is no current threat to public safety related to this arrest, and it is not related to the upcoming anniversary of the terrorist attacks of September 11, 2001. The FBI and its federal, state, and local partners remain vigilant in keeping the public from harm.
An indictment is an allegation only. All defendants are presumed innocent and are entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
North Tonawanda Man Pleads Guity to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Abimael Mercado, 35, of North Tonawanda, NY, pleaded guilty to unlawfully possessing a firearm as a convicted felon before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on May 11, 2016, law enforcement officers executed a search warrant at Mercado’s home found a shotgun and eleven shells in his bedroom. The defendant has a prior federal felony conviction involving distribution of a controlled substance and was prohibited from possession of firearms and ammunition.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Charlie J. Patterson, the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the Erie County Sheriff’s Office, under the direction of Timothy Howard.
Sentencing is scheduled for December 2, 2016, at 1:30 p.m. before Chief Judge Geraci.
New York Pharmacist Sentenced to 43 Months for Medicare and Tax FraudRead the Press Release
Earlier today, Andrew Barrett, a New York pharmacist who operated pharmacies in Bronx, Queens, and Rockland counties, was sentenced to 43 months’ imprisonment to be followed by three years of supervised release. As part of the sentence, he was ordered to forfeit $2.7 million in criminal proceeds, pay $2.7 million in restitution to Medicare and Medicaid, and pay $736,000 in restitution to the Internal Revenue Service.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the agencies that led the government’s investigation: the Federal Bureau of Investigation, New York Field Office; the Department of Health and Human Services, Office of the Inspector General, New York Office (HHS-OIG); and the Internal Revenue Service, Criminal Investigation, New York (IRS-CI). Mr. Capers also thanked the New York Office of the Medicaid Inspector General (OMIG) for its cooperation and assistance in the case.
On May 25, 2016, Barrett pleaded guilty to committing a health care fraud scheme and filing false tax returns. From January 2011 to December 2012, he fraudulently billed Medicare and Medicaid approximately $2.7 million for prescription medications that he never dispensed to patients. Barrett used some of these proceeds to buy pharmaceutical products for his pharmacies. He also falsely claimed over $2 million in personal expenses as business expenses on his tax returns. Through this scheme, he caused a tax loss of $736,192.80.
The sentencing proceeding was held before United States District Judge Kiyo A. Matsumoto.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys William P. Campos and Erin E. Argo are in charge of the prosecution, with assistance from Assistant United States Attorney Karin Orenstein of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
ANDREW BARRETT
Age: 57E.D.N.Y. Docket No. 15-CR-103
Nampa Man Sentenced to 46 Months in Federal Prison for Gun CrimeRead the Press Release
BOISE – Andrew Joshua Munkel, 27, of Nampa, Idaho, was sentenced today to 46 months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Dee V. Benson from the District of Utah, sitting in Idaho by special designation, sentenced Munkel. Judge Benson also ordered Munkel to serve three years of supervised release following his release from prison. Munkel pleaded guilty on June 20, 2016.
According to court documents, members of the United States Marshals Service Greater Idaho Fugitive Task Force arrested Munkel on December 1, 2015 on a parole violation. When arrested, Munkel possessed a loaded .45 handgun, a digital scale, and baggies containing methamphetamine. Munkel is prohibited from possessing firearms because of his prior felony conviction in 2009 for battery with intent to commit rape and convictions for possession of controlled substances in 2008 and 2014. As part of his plea agreement, Munkel admitted he possessed the .45 handgun in connection with another felony offense, which was the distribution of controlled substances.
The case was investigated by the United States Marshals Greater Idaho Fugitive Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Medical Device Saleswoman Convicted on Charges of Conspiring to Transport Stolen Medical Devices in Interstate Commerce, Money Laundering and Other ChargesRead the Press Release
A medical device saleswoman was convicted yesterday on charges of conspiring to transport stolen medical devices in interstate commerce, money laundering and other charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert J. West, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, made the announcement.
Kerri L. Kaley, 50, of Cold Spring Harbor, New York, was convicted by a jury in Miami on seven felony counts in a criminal case arising out of a Miami-based FDA investigation. Operation Miami Device has led to convictions in over twenty cases of medical device theft and has resulted in forfeitures, fines, and restitution totaling more than $5 million.
Kaley was adjudicated guilty by the U.S. District Judge Darrin P. Gayles for her role in a conspiracy to transport and sell in interstate commerce various stolen prescription medical devices, the actual transport and sale of stolen medical devices, and money laundering associated with that activity. Kaley is scheduled for sentencing on December 2, 2016 at 9:30 a.m. She faces a term of imprisonment of up to 5 years on the conspiracy charge, a maximum sentence of up to 10 years on each of the 5 substantive counts of transporting stolen property, and up to 20 years on the money laundering conviction. In addition to the period of incarceration, Kaley is also subject to fines on each of the 7 counts of up to $250,000 per count, or twice the intended gain or loss caused by the relevant conduct. In lieu of facing a forfeiture hearing before the same jury, Kaley agreed to forfeit $500,000 to the United States, payable before her sentencing date. Kaley also faces sentencing based on a November 2014 conviction arising in the same matter for obstruction of justice, which carries a potential sentence of 10 years’ imprisonment and a fine of $250,000.
According to court records and testimony presented at trial, from approximately 1995 through February 2005, Kaley participated in a conspiracy with a group of individuals based in Long Island, New York. The entire group, including Kaley, were medical device sales representatives for subsidiaries of Johnson & Johnson. The Miami-based conspirator solicited sales representatives and other employees of medical device manufacturers, seeking to purchase medical devices for re-sale. According to evidence presented in court, it was part of the conspiracy for Kaley and others working with her, to secure possession of significant quantities of prescription medical devices from hospitals they serviced for their employer, which were then forwarded to a conspirator in Delray Beach, Florida. These devices were often state-of-the-art equipment used for minimally invasive surgery and the suture materials used throughout hospitals. According to three of Kaley’s co-conspirators who testified at trial, the devices were acquired by theft and fraud from their customer medical facilities, which were all New York non-profit hospitals. In the course of the illegal activity, Kaley laundered over $2.2 million in payments through two sham construction corporations and used the funds to pay the coconspirators, a home mortgage, home-renovation expenses, and child care.
Charges remain pending against Brian K. Kaley, but no trial date has been set.
Mr. Ferrer commended the investigative efforts of FDA- Office of Criminal Investigations. The current case is being prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald, Brooke Watson, and Alison Lehr. At the November 2014 trial, the United States was represented by Assistant United States Attorneys Thomas Watts-FitzGerald, Jerrob Duffy, and Alison Lehr.
In the lengthy period between the Superseding Indictment and the most recent trial, this matter was taken to the Eleventh Circuit Court of Appeals twice and later to the Supreme Court of the United States over issues relating to the pre-trial restraint of assets that the Grand Jury had included in the forfeiture allegation of the Indictment. The government prevailed in that case by a 6 – 3 margin. The United States was represented before the Eleventh Circuit by Assistant U. S. Attorney Madeleine Shirley of the Appellate Division of the U.S. Attorney’s Office.
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
Man Sentenced to 19 years for Attempted Armed RobberyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that James G. Wheeler (age 30) of Milwaukee, Wisconsin, was sentenced by the Honorable Judge Pamela Pepper to 228 months’ imprisonment for his involvement in the November 18, 2014 attempted armed robbery of Bouchards in Milwaukee, Wisconsin. The attempted armed robbery was committed by two masked men, both of whom were armed with handguns.
Wheeler pled guilty to attempted armed Hobbs Act robbery and discharging a firearm during a crime of violence. During the attempted armed robbery of the store, Wheeler shot the co-owner of the store in his chest, causing life-threatening injuries. Wheeler’s co-actor, Deangelo Garcia, pled guilty to attempted armed Hobbs Act robbery and discharging a firearm during a crime of violence and was sentenced by the Honorable Judge J.P. Stadtmueller to 150 months’ imprisonment. The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent criminals who commit armed robbery of businesses involved in interstate commerce.
Wheeler was previously convicted of being a felon in possession of a firearm in federal court and was sentenced by the Honorable Judge J.P. Stadtmueller to 4 years’ imprisonment for that conduct.
According to United States Attorney Gregory J. Haanstad: “The United States Attorney’s Office is committed to addressing violent crime in this district and will continue to prosecute and seek substantial prison sentences for those who use firearms in the commission of crimes.” Haanstad also emphasized that “the successful prosecution of this important case was the result of a collaborative law enforcement effort by the Milwaukee Area Violent Crime Task Force, the Federal Bureau of Investigation, and the Milwaukee Police Department.”
Acting Special Agent in Charge of the FBI Milwaukee Division, Vadim Thomas said: “The FBI prioritizes these types of investigations and works collaboratively with MPD to identify the offenders and bring them to justice. We all work together to make our community a safe place.”
These cases were prosecuted by Assistant United States Attorney Laura S. Kwaterski.
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Long Island Attorney Is Sentenced to 28 Months in Prison for Stealing $1.3 Million from Trust Fund ClientsRead the Press Release
CENTRAL ISLIP, NY – Earlier today, David Bodian, a Long Island attorney, was sentenced at the federal courthouse in Central Islip, New York, to 28 months in prison following his March 2016 guilty plea to wire fraud for stealing more than $1.3 million from a trust fund for which he was the trustee. The sentencing proceeding was held before United States District Judge Arthur D. Spatt. As part of the sentence, Bodian was ordered to pay restitution in the amount of $1.3 million to the Lou Bacon Trust.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
According to court filings and facts presented at the guilty plea and sentencing proceedings, in approximately 2000, Bodian was appointed trustee of the Lou Bacon Trust, a trust fund that benefitted a number of individuals and charities. At the time of his appointment, the trust held over $1 million in total assets. In approximately 2005, Bodian began looting the fund of its assets to pay for his personal expenses, including a car, high-end audio equipment, home renovations, and international vacations. From approximately 2005 to 2015, he stole almost the entirety of the trust’s funds, leaving the trust with only $10,000 in cash. To perpetuate the scheme, Bodian lied to the beneficiaries about the amount of money in the trust bank accounts. For example, when a beneficiary asked for a copy of a trust bank statement, Bodian borrowed $150,000 from a friend to deposit in the trust’s account to inflate the trust’s assets. After providing a bank statement to the beneficiary that reflected the $150,000 Bodian had borrowed, he transferred the money back to his friend.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Tyler Smith is in charge of the prosecution.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
David Bodian
Age: 59
Dix Hills, New YorkE.D.N.Y. Docket No. 16-CR-91 (ADS)
Latham Man Sentenced for Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan, age 53, of Latham, New York, was sentenced today to serve weekends in jail for 3 months, and to serve 3 years of probation, for aiding and assisting in the preparation of false tax returns.
The announcement was made by U.S. Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
U.S. District Judge Mae A. D’Agostino also ordered Kablan to pay $12,971 in restitution to the IRS, to pay a $1,600 assessment to the Court, and to perform 50 hours of community service. With Kablan’s consent, Judge D’Agostino also permanently enjoined him from preparing and filing federal tax returns and forms for anyone other than himself or his spouse.
As part of his January 22, 2016 guilty plea, Kablan admitted that he prepared 16 tax returns that contained false information. These returns, which Kablan prepared for clients for the tax years 2008 through 2011, contained false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property and energy efficiency credits. These false deductions and credits gave refunds to his taxpayer clients that they were not entitled to. At sentencing, Kablan admitted to preparing for clients an additional 31 tax returns that contained the same types of false deductions and credits as the tax returns for which he was indicted.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Lackawanna Man Pleads Guilty to Drug ChargesRead 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 Jerry Rolon-Alvarez, 37, of Lackawanna, NY, pleaded guilty to possession with intent to distribute cocaine and heroin before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that in November 2014, a confidential source made a controlled purchase of heroin from Rolon-Alvarez. Prior to the controlled purchase, the defendant was observed departing 47 Colton Avenue in Lackawanna, and immediately after the controlled purchase, Rolon-Alvarez was observed returning to the Colton Avenue residence.
On November 29, 2014, members of the Lackawanna and Buffalo Police Departments executed a search warrant at 47 Colton Avenue and found Rolon-Alvarez on a bed in the living room. During the search of a cabinet in the kitchen, officers found a large plastic bag containing suspected cocaine, and two plastic wraps containing suspected heroin. There was also a digital scale with heroin residue and a box containing green glassine envelopes located in Rolon-Alvarez’s jacket. Additionally, $2,280 in U.S. currency was seized from the defendant’s pocket. Rolon-Alvarez was arrested by the Lackawanna Police Department.
The defendant will be arraigned on September 3, 2015 before U.S. Magistrate Judge H. Kenneth Schroeder.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Lackawanna Police Department, under the direction of Chief James L. Michel.
Sentencing is scheduled for December 2, 2016 at 10:30 a.m. before Judge Geraci.
LRGP Leader Sentenced on Rico ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Dewayne Gray, 32, aka Whip, of Buffalo, NY, who was convicted of RICO conspiracy, was sentenced to 188 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, stated that between 2009 and January 23, 2012, Dewayne Gray was the leader of the LRGP gang, which operates primarily in the area of Lombard, Rother, Playter and Gibson Streets in the City of Buffalo. LRGP was an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms.
As leader of the LRGP Gang, Dewayne Gray organized and managed gang members, and the narcotics distribution and sales. Dewayne Gray maintained various houses including 381 Sobieski Street, 42 Memorial Drive and 29 Meyers Street in Buffalo for the purpose of manufacturing and distributing crack cocaine.
Gray was one of 19 LRGP Gang members and associates charged and convicted in this case.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
L.A. Nursing Home, Two Physicians Pay over $3.5 Million to Resolve Allegations They Participated in Illegal Patient-Transfer SchemeRead the Press Release
LOS ANGELES – A Los Angeles nursing home and two physicians who worked at the facility have paid $3,563,140 to resolve civil allegations that they participated in a scheme to improperly transfer patients recruited from the “Skid Row” district to a hospital for medically unnecessary services, and then transfer the patients from the hospital to the nursing home for medically unnecessary stays.
Westlake Convalescent Hospital; Dr. Jasvant Modi, who worked at Westlake; and Jasvant Modi’s wife, Dr. Meera Modi, paid the settlement on August 3 to resolve a federal “whistleblower” lawsuit. The settlement was announced today after United States District Judge Beverly Reid O’Connell dismissed the action.
Between 2008 and 2010, AJIT Healthcare, Inc., doing business as Westlake Convalescent Hospital, allegedly paid illegal kickbacks to a “care consortium” on Skid Row in exchange for patient referrals to Westlake. During that period and after, Jasvant Modi allegedly readmitted patients from Westlake to the now-closed Temple Community Hospital and then back to Westlake to extend the patients’ Medicare-covered stays at Westlake, knowing the patients did not require further services at either facility. Meera Modi allegedly signed medical orders for non-payable services for these same patients. Westlake allegedly billed Medicare and Medi-Cal for medically unnecessary services provided to these patients.
“Patient-transfer schemes such as this victimize vulnerable members of our society as well as taxpayer-funded programs designed to aid them,” said United States Attorney Eileen Decker. “Such schemes are a clear abuse of the physician/patient trust and a fraud on American taxpayers.”
Westlake and the Modis were named in a lawsuit that alleged the nursing home and the Modis knowingly submitted false claims to Medicare and Medi-Cal for services to patients for medically unnecessary services.
“This round-robin system of moving mostly homeless and vulnerable people from the hospital to a nursing home and back, purely for profit not patient care is unacceptable. As this case illustrates, we will work diligently to investigate providers who abuse the system and take advantage of the elderly and disabled,” said Chris Schrank, Special Agent in Charge for the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “These were medically unnecessary services which placed the ‘patients’ and federal health care systems at risk and this type of conduct will not be tolerated.”
This case is related to a large-scale scheme to defraud Medicare and Medi-Cal through the illegal recruitment of Skid Row residents for medically unnecessary medical procedures at area hospitals and medically unnecessary stays at nursing homes. In December 2013, Dr. Ovid Mercene pleaded guilty to a tax offense related to his admission of patients, most of whom where homeless, to Temple Community after they had been referred from a purported “care consortium.” After a short hospital stay, Mercene discharged the “patients” to skilled nursing facilities, even though they did not require such care.
The settlement announced today resolves a lawsuit brought by a former Westlake employee under the qui tam – or whistleblower – provisions of the False Claims Act, which allows private citizens to bring suit on behalf of the government and share in any recovery. The whistleblower, Ricardo Gonzales, has received $534,471 from the settlement in the lawsuit, United States of America and the State of California ex rel. Gonzales v. Dr. Jasvant Modi, et al., CV 11-02987-BRO.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
HHS-OIG and former Assistant United States Attorney and current Justice Department Trial Attorney Shana T. Mintz, of the Civil Division’s Fraud Section, investigated this case.
Kirkwood Area Financial Advisor Convicted of Fraud ChargesRead the Press Release
St. Louis, MO – Robert S. Beyer, II, was convicted of wire fraud and money laundering charges involving a scheme to lure investors into investing money with Heroic Life Assurance Company, LLC, a fraudulent enterprise that Beyer created in order to steal money from his clients.
According to testimony presented at trial, starting in 2011, Beyer, who had previously sold life insurance annuities and other investment products to the victims, solicited his clients to place their money with Heroic Life Assurance Company, which Beyer assured them was a safe investment. Some victims were promised returns between 8 and 18 percent per year, and others were told that they would be able to withdraw their money from the investment at any time. What Beyer did not tell his victims was that he had no intention of keeping their money safe, but instead intended to spend it to support his own lifestyle. Evidence at trial established that Beyer spent his clients’ money on personal bills such as car repairs, child support and dating services. Beyer also used money from his victims to pay the expenses of Heroic Life Assurance Foundation, a non-profit entity that Beyer planned to use to recruit new victims by offering businesspeople free entrepreneurship classes. To conceal the true source of the Foundation’s funding, Beyer created a fictional persona named Jesus Cristobal, a wealthy South American financier who was supposedly bankrolling the Foundation’s operations. In total, Beyer’s victims lost nearly $300,000.
Beyer, Kirkwood, MO, was convicted of one felony count of wire fraud and one felony count of money laundering. The three-day trial was held before United States District Judge Ronnie L. White. Sentencing has been set for December 7, 2016.
Wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Each of the money laundering charges carry a maximum penalty of 10 years and/or $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation. Assistant United States Attorneys Richard Finneran and Amanda Wick are handling the case for the U.S. Attorney’s Office.
KC Man Charged with Kidnapping Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Kansas City, Mo., man was charged in federal court today with the kidnapping resulting in death of a man whose body was discovered alongside the road earlier this week.
Raynal King, 25, of Kansas City, was charged with kidnapping resulting in death in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. King remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the criminal complaint, King participated in the kidnapping resulting in death of a man identified in court documents as J.P. on Tuesday, Sept. 6, 2016. J.P.'s body was found along the roadway at 13705 Holmes Road in Kansas City, Mo. An examination of the victim determined that he had been shot and he was pronounced dead at the scene.
Investigators determined that J.P. was last known to be driving his black Jeep Patriot from a hospital, where he had been caring for a family member, towards his home sometime between 5 a.m. and 6 a.m. that day. Shortly after leaving the hospital, J.P. called his wife and asked her for the PIN to their debit card.
There were several failed attempts to use J.P.'s debit card at different ATMs that morning. Investigators obtained surveillance video from one of the ATMs that allegedly showed King driving J.P.'s vehicle shortly after 6 a.m. J.P. was in the passenger seat of the vehicle, according to the affidavit, with his arms straight out and palms on the dashboard. An unidentified person was in the back seat. King was also seen (driving a different vehicle) in surveillance video at the 7-Eleven at 8901 Wornall Road, Kansas City, Mo., the affidavit says, where three more failed attempts had been made to use the debit card at an ATM inside the about an hour later.
King was identified and located on Thursday, Sept. 8, 2016. A Kansas City, Mo., police officer conducted a traffic stop and detained King.
King told investigators that a man identified in court documents as "Suspect #2" was driving the victim's vehicle when he arrived at King's house earlier that morning. King, who was sitting on his front porch, walked up to the vehicle and saw J.P. sitting in the front passenger seat with his hands on the dashboard. King told investigators that Suspect #2 was holding a handgun in his hand near his lap, and that it was pointed towards King. He allegedly told King he needed his help, and King got into the driver's seat while Suspect #2 got into the back seat. King drove the vehicle to various locations, the affidavit says, where he tried to use J.P.'s debit card to access an ATM.
At one point, according to the affidavit, King attempted to withdraw money from the ATM at Mazuma Credit Union at 9300 Troost Avenue, Kansas City, Mo., using the victim's debit card. King attempted more than once to obtain money from the ATM and at some point, King told investigators, Suspect #2 shot J.P.
According to the affidavit, King told investigators that Suspect #2 began talking about where they should drop off J.P., who remained conscious after having been shot. King told investigators that J.P. attempted to jump out of the vehicle, at which time, King said, Suspect #2 fired the handgun at J.P.
King slowed down the vehicle after J.P. jumped out; he looked in the rear view mirror and saw J.P. lying in the street. Suspect #2 told King to keep driving and not to stop, the affidavit says, and King continued driving back to his residence.
When King and Suspect #2 arrived back at King's residence, they got into King's silver Pontiac Grand Prix and drove to the 7-11 at 89th and Wornall, parked at a gas pump, and King went in to the store and attempted again to use the victim's debit card at the ATM without success.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Reaches Settlement with California to Ensure Equal Educational Opportunities for English LearnersRead the Press Release
The Justice Department reached a comprehensive settlement agreement today with the California Department of Education (CDE) and the California State Board of Education to improve their compliance monitoring systems and ensure language instruction services to the approximately 1.4 million English Learner (EL) students in the state’s public schools.
The settlement resolves the department’s May 2015 findings that California’s system for monitoring its public schools’ provision of language services to EL students did not satisfy the state’s obligations under the Equal Educational Opportunities Act (EEOA) of 1974. The state cooperated fully during the review.
The department concluded that the state had failed to respond appropriately to schools’ certified reports showing that over 20,000 EL students were not receiving instructional language services each school year since 2007 to 2008. The two-year agreement requires the state to undertake several actions, including:
- respond in a timely and effective manner to credible evidence that schools are failing to serve EL students, including notifying them of violations and providing a protocol by which they must submit to CDE documented evidence that resolves the violations;
- when selecting schools for monitoring reviews, consider their reports of unserved EL students and include charter schools in the selection process for such reviews each year;
- improve CDE’s online monitoring tool and require that schools found to be out of compliance with specific requirements in this online tool receive onsite monitoring if they fail to provide adequate evidence that the noncompliance has been resolved; and
- develop and implement policies and training on the monitoring, review and corrective action processes of CDE’s monitoring of schools for EL service violations, and ensure that all EL monitoring consultants receive such training.
“We applaud the state of California for working cooperatively with the Justice Department to ensure that all English Learner students can access the language services they need to learn,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with state officials to implement this important agreement and ensure full compliance in the months ahead.”
The agreement addresses many of the legal principles discussed in the United States’ statement of interest filed in July 2014 in a related private EEOA case in state court, D.J. v. State of California. The state case resulted in a private settlement whose obligations are unaffected by the agreement reached today between the department and the state.
The EEOA requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs. Enforcement of the EEOA is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
California EL Settlement Agreement
Joint Statement from the Department of Justice, the Department of the Army and the Department of the Interior Regarding Standing Rock Sioux Tribe v. U.S. Army Corps of EngineersRead the Press Release
The Department of Justice, the Department of the Army and the Department of the Interior issued the following statement regarding Standing Rock Sioux Tribe v. U.S. Army Corps of Engineers:
“We appreciate the District Court’s opinion on the U.S. Army Corps of Engineers’ compliance with the National Historic Preservation Act. However, important issues raised by the Standing Rock Sioux Tribe and other tribal nations and their members regarding the Dakota Access pipeline specifically, and pipeline-related decision-making generally, remain. Therefore, the Department of the Army, the Department of Justice, and the Department of the Interior will take the following steps.
The Army will not authorize constructing the Dakota Access pipeline on Corps land bordering or under Lake Oahe until it can determine whether it will need to reconsider any of its previous decisions regarding the Lake Oahe site under the National Environmental Policy Act (NEPA) or other federal laws. Therefore, construction of the pipeline on Army Corps land bordering or under Lake Oahe will not go forward at this time. The Army will move expeditiously to make this determination, as everyone involved — including the pipeline company and its workers — deserves a clear and timely resolution. In the interim, we request that the pipeline company voluntarily pause all construction activity within 20 miles east or west of Lake Oahe.
“Furthermore, this case has highlighted the need for a serious discussion on whether there should be nationwide reform with respect to considering tribes’ views on these types of infrastructure projects. Therefore, this fall, we will invite tribes to formal, government-to-government consultations on two questions: (1) within the existing statutory framework, what should the federal government do to better ensure meaningful tribal input into infrastructure-related reviews and decisions and the protection of tribal lands, resources, and treaty rights; and (2) should new legislation be proposed to Congress to alter that statutory framework and promote those goals.
“Finally, we fully support the rights of all Americans to assemble and speak freely. We urge everyone involved in protest or pipeline activities to adhere to the principles of nonviolence. Of course, anyone who commits violent or destructive acts may face criminal sanctions from federal, tribal, state, or local authorities. The Departments of Justice and the Interior will continue to deploy resources to North Dakota to help state, local, and tribal authorities, and the communities they serve, better communicate, defuse tensions, support peaceful protest, and maintain public safety.
“In recent days, we have seen thousands of demonstrators come together peacefully, with support from scores of sovereign tribal governments, to exercise their First Amendment rights and to voice heartfelt concerns about the environment and historic, sacred sites. It is now incumbent on all of us to develop a path forward that serves the broadest public interest.”
Jamestown Man Pleads Guity to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Raymond VanBuskirk, 44, of Jamestown, NY, pleaded guilty to unlawfully possessing firearms and ammunition as a convicted felon, before Chief U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that in May 2016, the defendant moved two rifles, one shotgun, and over one thousand rounds of .223 caliber ammunition from his home to another location for safekeeping. VanBuskirk retained a third rifle at his home, which was recovered by federal agents on June 29, 2016. The defendant has a prior New York State felony conviction for sale of a controlled substance and was prohibited from legally possessing of firearms and ammunition.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Special Agent in Charge Charlie J. Patterson, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
Sentencing is scheduled for December 2, 2016, at 2:00 p.m. before Chief Judge Geraci.
Jackson Men Plead Guilty to CarjackingRead the Press Release
Jackson, Miss – Demario Webster, 20, and Ira McGruder, 24, both from Jackson, entered guilty pleas today before U.S. District Judge Carlton W. Reeves to carjacking, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Don Alway.
The carjacking occurred at a residence in Clinton, Mississippi on September 30, 2014. When the victim arrived home from work, he was robbed of his wristwatch and cash and then forced inside his house at gunpoint by four individuals. Once inside the house, the victim was tied up and ordered at gunpoint to reveal the location of any other cash located in his home. Among other items, the four individuals stole the victim’s handguns, television, jewelry and BMW. The BMW was recovered about one hour later near the intersection of TV and Maddox Roads in Jackson.
Sentencing in this case has been set for December 1, 2016. The defendants each face a maximum penalty of fifteen years in federal prison and a $250,000 fine.
The case is being prosecuted by Deputy Criminal Chief Darren J. LaMarca and Assistant United States Attorney Patrick Lemon. It was investigated by the Clinton Police Department, Jackson Police Department and the Federal Bureau of Investigation.Indiana Man Arrested on Federal Kidnapping Charge for Allegedly Sexually Assaulting a Woman He Met OnlineRead the Press Release
CHICAGO — An Indiana man was charged today with kidnapping for allegedly beating and sexually assaulting a woman he met online.
KEITH DEWITT DAVIS, 25, of South Bend, Ind., is charged with one count of kidnapping in connection with a sexual assault on June 27, 2016, in Calumet City, according to a criminal complaint filed in U.S. District Court in Chicago. The complaint describes three other similar assaults or attempted assaults in Calumet City that occurred over the summer within four blocks of the June 27 attack. Davis is suspected of committing all of them, the complaint states.
Davis was arrested last weekend on a state of Indiana warrant. He was taken into federal custody this afternoon. He is scheduled to make an initial appearance on the kidnapping charge at 3:00 p.m. today before U.S. Magistrate Judge M. David Weisman in Chicago.
According to the complaint, the four incidents took place in vacant or abandoned homes in the vicinity of Pulaski Road and Burnham Avenue in Calumet City. Davis allegedly met the women online and arranged the meeting place. He displayed a weapon in at least one of the episodes, the complaint states.
The sexual assaults occurred on June 27, July 10 and Aug. 12, according to the complaint. On July 2, a woman met Davis but was able to flee after noticing the house was vacant, the complaint states. Davis grabbed her shirt and attempted to punch her, but she escaped on foot, according to the complaint.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation.
The case was investigated by the Will County Safe Streets Task Force, which is comprised of officers from the Bolingbrook Police Department, Cook County Sheriff's Police Department, Evergreen Park Police Department, Joliet Police Department and Orland Park Police Department. Substantial investigative assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
Kidnapping carries a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Katherine Welsh.
Complaint
Husband and Wife Sentenced in Heroin Smuggling Conspiracy at Attica Correctional FacilityRead 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 U.S. District Court Judge Lawrence J. Vilardo sentenced Andres Martinez, 30, a citizen of the Dominican Republic and an inmate at Attica Correctional Facility, to 45 months in prison for his role in a conspiracy to possess with intent to distribute, and to distribute, heroin and marijuana. The defendant’s wife, Elizabeth Camue Martinez, was sentenced to 34 months in prison for her role in the conspiracy.
“Heroin laced with fentanyl is a deadly cocktail that is killing literally hundreds of people a year in our community,” said U.S. Attorney Hochul. “These defendants knew that an inmate at the Attica Correctional Facility had died of an overdose and still continued to distribute this dangerous drug. As WNY battles to bring an end to this tragic epidemic, law enforcement will continue to do its part to rid our streets - and our jails - of these drug dealers.”
According to Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, between April, 2013 and December 6, 2013, Elizabeth Camue-Martinez purchased heroin and smuggled it into the Attica Correctional Facility to give to her husband. Andres Martinez then sold the drugs to other prisoners while serving a sentence for another crime.
Though not directly attributable to the defendants, during the time of the conspiracy, there were three prisoner overdose deaths involving heroin and fentanyl in Attica. During their sentencings, Judge Vilardo stated that the defendants knew that a prisoner in Attica died of an overdose on September 16, 2013 yet continued to sell drugs until December 5, 2013. Martinez will be deported from the United States after he serves his sentence.
Co-defendant Jerome Tallington, who supplied the heroin to the couple, was convicted and will be sentenced on October 14, 2016.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Steven Nigrelli, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, the Erie County District Attorney’s Office, under the direction of Michael Flaherty, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony Annucci.
Havre de Grace Sex Offender Sentenced to 20 Years in Federal Prison for Transporting Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced registered sex offender Gary Scott Conway, age 45, of Havre de Grace, Maryland, today to 20 years in prison, followed by lifetime supervised release. Conway pleaded guilty to transporting child pornography, and admitted a 20 year history of sexually abusing at least eight minor victims, including infants and a severely autistic, non-verbal child. Judge Motz ordered that upon his release from prison Conway must continue to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; the Federal Bureau of Investigation, Idaho Office; Ada County (Idaho) Sheriff Stephen Bartlett; Harford County Sheriff Jeffrey R. Gahler and the Harford County Child Advocacy Center; and U.S. Marshal Johnny Hughes.
According to court documents and testimony at today’s sentencing hearing, Conway has 10 previous criminal convictions, including sexual abuse of a minor and failing to register as a sex offender. Conway’s collection of child pornography numbered over 3,100 images and 319 videos, which Conway collected on the internet. According to the statement of facts in his plea agreement, from October 2014 to July 2015, Conway used an internet chat website to communicate with adults and minor children. Conway admitted that during live video chats on the website, Conway directed teenage boys to masturbate or display their genitalia, and also broadcast videos of himself masturbating to the teenage boys. Beginning on March 30, 2015, he uploaded child pornography to an internet-based file storage service (the service).
On May 29, 2015, representatives from the service notified the National Center for Missing and Exploited Children that Conway’s account contained at least 35 videos of child pornography. After an investigation determined that the files were uploaded from Conway’s residence, on July 8, 2015, the Harford County Sheriff’s Office executed a search warrant at the residence. Investigators seized a desktop computer and other digital media. Forensic analysis of the computer revealed at least 350 images of child pornography, including depictions of prepubescent children engaged in sexual acts.
Conway’s internet file storage service account was examined pursuant to a search warrant, and was found to contain approximately 3,174 unique images and 319 unique videos of child pornography. The graphic and disturbing videos and images depicted prepubescent boys and girls, engaged in sexual acts with adult men, including oral sex and anal sex, and other images of sadistic conduct against children.
On July 14, 2015, Conway fled Maryland. Conway was a registered sex offender having been convicted in 2004 in the Circuit Court for Harford County, Maryland of a sexual offense involving 15 year old victim, and was sentenced to 10 years in prison, all of which was initially suspended. When he left Maryland, Conway failed to notify the Maryland Sex Offender Registration authorities, as required by law. He travelled to Virginia, Tennessee, New Mexico, Arkansas, Oklahoma, Texas, California, Arizona and Idaho.
Conway stayed at a resort in Sedona, Arizona for 12 days, never notifying state authorities of his sex offender status. During that time, two families at the resort complained to the local authorities that Conway made inappropriate sexual advances toward their teenage sons. After being questioned by Sedona Police, Conway left Sedona before his resort reservation was completed. Conway went to an amusement park in California, then to Idaho, where he stayed for more than three weeks, never notifying the state authorities of his sex offender status. He was arrested in Idaho on August 26, 2015.
After his arrest, Conway told law enforcement that on a previous visit to the amusement park he discovered a peephole in a men’s bathroom stall, which allowed him to see the genitalia of children using the nearby stall. He had hoped the peephole still existed, but it did not. Conway admitted that as a medical professional in the Navy, he once performed oral sex on a male patient while the patient was sedated. He also admitted to sexually molesting a severely autistic, non-verbal boy while the victim was 11 to 13 years old; having sexual contact on multiple occasions with an eight year old girl; sexually molesting two infants, one of which was the child of a Navy colleague whom he was babysitting; fondling two boys between the ages of nine and 10 years old while playing with them in and around a pool; and engaging in sex acts with two different 15 year old boys who he met online.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Harford County Child Advocacy Center (HCCAC), Ada County (Idaho) Sheriff’s Office; and U.S. Marshal Service for their work in the investigation. The HCCAC is a task force comprised of the Harford County Sheriff’s Office, Maryland State Police – Bel Air Barrack, Aberdeen, Bel Air, and Havre de Grace Police Departments, Harford County State’s Attorney’s Office, Harford County Department of Social Services – Child Protective Services, and Family and Children’s Services of Central Maryland, which investigates allegations of child maltreatment while also providing services and resources for the abused child and his/her family. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Hanover Businessman Indicted on $150,000 Bank Fraud and Money Laundering ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on September 7, a federal grand jury in Harrisburg indicted Matthew S. Norris, age 34, a Hanover, PA businessman on bank fraud and money laundering charges.
The Indictment was unsealed today following Norris’ arrest. Norris today was brought before United States Chief Magistrate Judge Martin C. Carlson for his initial appearance. Norris entered a plea of not guilty and was released on bail pending trial, which is scheduled for November 14, 2016 before U.S. District Court Judge Sylvia H. Rambo.
According to United States Attorney Peter Smith, the Indictment alleges Norris is the owner and operator of Norris Enterprises, d/b/a Aerus Electrolux, Hanover. Norris allegedly devised and executed a scheme in 2011 that defrauded GE Bank out of approximately $157,000. Norris, as the owner/operator of Aerus Electrolux, was an authorized independent franchisee of Electrolux International, which was then located on York Street, in Hanover.
According to the Indictment, Norris allegedly submitted approximately 27 credit applications under the names and identifiers of his customers to GE Bank without the customers’ knowledge or consent. By inflating the customers’ income on electronic credit applications, Norris succeeded in obtaining lines of credit for the customers to purchase Electrolux products. Norris then charged the approved accounts for fictional merchandise sales and, as a result, GE Bank deposited the loan proceeds into Norris’ business account.
When the customers’ monthly credit card payments became due, Norris allegedly made the payments on their behalf without their knowledge from the proceeds of the scam. Monthly statements were never sent to the customers; Norris listed his business address as their home address on the customers’ electronic credit applications.
The scheme was discovered in October of 2011 when an Electrolux executive initiated an onsite audit of Norris’ business. When GE Bank learned what Norris had done, it immediately credited all amounts owed by the customers. The overall net loss to the bank was approximately $150,000.
The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service, Criminal Investigations. The case was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a $1,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Gang Members Convicted of Gas Station Robbery SpreeRead the Press Release
Montgomery, Alabama – Three individuals with links to the Crip street gang in Montgomery have been convicted in federal court for a series of armed robberies, announced George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. Tremane Darnell Carthen (37), Kevin Levarius Martin (27), and Scottie Jeroma Groce (26), all of Montgomery, were either members of or associated with the gang and took part in robberies occurring in in North Elmore County, Wetumpka, and Autauga County in July 2014.
The three were indicted for conspiracy, robbery, and firearms charges in November 2015. Following the indictment, Martin pleaded guilty to conspiracy, robbery of a convenience store, and brandishing a firearm during the robbery.
Following a trial, the jury returned guilty verdicts Thursday against Groce and Carthen after finding that they conspired with Martin to rob the three convenience stores. Evidence presented at trial also showed that Carthen and Groce pointed firearms at the cashiers while committing the robberies.
The defendants face a sentence of up to life imprisonment and are expected to be sentenced in December 2016.
“These three went into a convenience store, stuck a gun in the cashier’s face, and robbed the store. They did this three times,” stated U.S. Attorney Beck. “These illegal gun-toters need to be taken off the streets in order to keep our communities safe and I commend law enforcement for their hard work in this case.”
“This focused investigation will have a lasting impact on reducing firearms related violence spanning multiple counties,” stated ATF Special Agent in Charge Steve Gerido. “This result demonstrates the continued collaboration by ATF, the U.S. Attorney’s Office, and our law enforcement partners to identify the violent criminals who lessen the quality of life in our neighborhoods.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Elmore County Sheriff’s Department, the Wetumpka Police Department, the Autauga County Sheriff’s Department, with assistance from the U.S. Marshals Fugitive Task Force.
The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Steven Lee.
Gameday Entertainment Chairman of the Board Charged with Defrauding San Antonio Victim of MillionsRead the Press Release
This morning in San Antonio, Federal Bureau of Investigation special agents arrested Charles Augustus Banks, IV, an executive with Gameday Entertainment, LLC (Gameday), on federal wire fraud charges alleging that he defrauded a San Antonio victim of millions of dollars announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment unsealed today in San Antonio charges the 49–year-old investment counselor and venture capitalist with two counts of wire fraud. According to the indictment, Banks encouraged the victim to loan $7.5 million to Gameday in 2012. Subsequently, Banks encouraged the victim to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013. During this time frame, Banks was Chairman of the Board of Gameday and personally benefitted, in the form of millions of dollars in loans and commissions, from the proceeds of these loans made to Gameday. Banks manipulated the victim into guaranteeing Gameday’s $6 million debt by misrepresenting the true nature of the transaction. Further, Banks failed to fully disclose the commissions, payments and loans he was receiving from Gameday that were specifically tied to these transactions.
In carrying out his scheme to defraud, the indictment specifically alleges that on June 7, 2013, Banks caused two unsigned signature pages to be faxed from California to the victim in Florida relating to a $6M loan guarantee and subordination agreements, then caused the signed signature pages to be faxed from San Antonio back to Banks’ employees and Comerica bank employees on June 26, 2013.
Banks faces up to 20 years in federal prison upon conviction of each wire fraud charge. Banks was released on bond following his initial appearance before U.S. Magistrate Judge John Primomo in San Antonio today.
This investigation is being conducted by the FBI. Assistant United States Attorney Gregory J. Surovic is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Supervisory Customs and Border Protection Officer Sentenced to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
In El Paso today, Lawrence Madrid, a 54–year-old former Supervisory Customs and Border Protection Officer, was sentenced to 90 months in federal prison followed by three years of supervised release for alien smuggling and accepting a bribe announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Assistant Special Agent in Charge Stephen C. Adaway, (ASAC) Las Cruces; and, Department of Homeland Security-Office of Inspector General Investigations Special Agent in Charge Javy Pedroza.
On May 26, 2016, a federal jury in El Paso found Madrid guilty of conspiracy to commit alien smuggling for financial gain, aiding and abetting alien smuggling for financial gain, and two substantive counts of accepting a bribe.
According to court records, from August 2010 to September 2011, Madrid conspired with others to encourage/induce undocumented aliens to come to, enter, and reside in the United States without proper authorization. As his part of the conspiracy, Lawrence Madrid accepted money for using his official position to allow undocumented aliens to be smuggled through the ports of entry in El Paso. In addition, the federal jury found that on two separate occasions Madrid accepted money to allow an undocumented alien to enter the United States without proper authorization through the pedestrian lanes of a port of entry.
An arrest warrant is in effect for Madrid’s 39-year-old wife, Odet. She failed to appear for trial and is considered a fugitive. Her $10,000 appearance bond has been forfeited to the Government. Odet Madrid-Corchado is charged with conspiracy to commit alien smuggling for financial gain, one substantive count of alien smuggling for financial gain and one count of bribery of a public official. Upon conviction, Odet Madrid-Corchado faces not more than ten years imprisonment on the conspiracy charge, between three and ten years imprisonment for the substantive alien smuggling charge, and not more than 15 years imprisonment for the bribery charge.
A third defendant in this case, 46-year-old undocumented alien Maria Guadalupe Jaime-Hernandez, is also considered a fugitive after failing to appear for sentencing earlier this month. On May 5, 2016, Jaime-Hernandez pleaded guilty to one count of conspiracy to commit alien smuggling for financial gain. Her $10,000 appearance bond has been forfeited to the Government and a warrant has been issued for her arrest.
This case was investigated by the Homeland Security Investigations (HSI) Las Cruces Office together with the Department of Homeland Security-Office of Inspector General Investigations. Assistant United States Attorneys Greg McDonald and Robert Almonte prosecuted this case on behalf of the Government.
Former Police Officer Sentenced to 33 Months in Prison for Civil Rights Violations, Federal Program TheftRead the Press Release
COLUMBUS, Ohio – Former Reynoldsburg Police Officer Shane M. Mauger, 42, of Columbus, was sentenced in U.S. District Court today to 33 months in prison for using his position as a police officer to deprive people of their civil rights by falsifying search warrant affidavits and unlawfully seizing money and property during drug trafficking investigations.
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, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Judge Marbley also fined Mauger $40,000 and ordered him to remain under court supervision for two years after he completes his prison term. Mauger’s sentence includes a requirement that he perform four hours of community service per week while under court supervision.
According to a government document submitted to the court prior to today’s sentencing, Mauger engaged in systematic corruption in his roles as a police officer and as a supervisor. Mauger conspired with another police officer, Tye L. Downard, as far back as 2006 in a conspiracy that was both long-lasting and lucrative. Downard is deceased.
Mauger lied to judges in search warrant affidavits in support of drug trafficking investigations and admitted to stealing cash during and after police searches. The conspirators stole between $150,000 and $250,000 during the course of the conspiracy. Mauger removed some of the stolen cash from a safe when he found out that federal law enforcement agencies were investigating him.
On May 27, 2016, the court accepted Mauger’s guilty pleas to one count of conspiracy to deprive persons of civil rights and one count of federal program theft.
“Citizens rely on the truthfulness and integrity of law-enforcement officers,” Acting U.S. Attorney Glassman said. “The overwhelming majority of the time, this faith is well-earned. But when someone breaks the laws he or she has sworn to uphold, the public trust is severely damaged.”
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA and Assistant United States Attorneys Peter K. Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who represented the United States in this case.
Former IT Executive Sentenced for Stealing $1.3 Million from CharityRead the Press Release
ALEXANDRIA, Va. – Demetrius Arnold Washington, Jr., 51, of Louisa, was sentenced today to 45 months in prison for a mail fraud and money laundering scheme in which he stole more than $1.3 million from his former employer, a charitable foundation in Virginia. Washington was also sentenced to three years of supervised release and ordered to pay full restitution in the amount of $1,341,755.
Washington pleaded guilty on May 13. According to court documents, from April 2011 to June 2015, Washington was the Chief of Information Systems for the foundation, a private non-profit entity dedicated to supporting promising students who exhibit financial need by providing financial assistance through scholarships and grants. Washington was responsible for selecting outside IT vendors to perform work for the foundation. One such vendor was DAJX-IT Consulting. Washington was, in fact, the owner of DAJX, a company he created around the time he began working for the Foundation. Washington concealed his relationship with DAJX from the Foundation and used DAJX to submit fraudulent invoices to the Foundation for work which was never completed, using names of friends, relatives, and acquaintances who had never heard of DAJX or completed any IT work. Washington also doctored invoices of an outside vendor by doubling the vendor’s rates, paying the vendor for her original invoice, and then pocketing the difference. To further conceal his scheme, Washington created a fake identity who claimed was the President of DAJX and corresponded with the Foundation using an email address bearing the fictitious persona’s name. In total, Washington embezzled $1,341,755 from the Foundation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Jamar K. Walker and Michael S. Dry prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-105.
Former Deschutes County Sheriff Captain Sentenced to Five Years in Prison for Theft of Public Funds and Money LaunderingRead the Press Release
EUGENE, Ore. – On Thursday, September 8, 2016, Scott Raymond Beard, 46, a former Deschutes County Sheriff Captain and resident of Deschutes County, Oregon, was sentenced to five years in prison by U.S. District Judge Michael J. McShane for stealing over $200,000 in public funds he was entrusted to manage. At least sixty-three times over a two-year period, Beard falsified records to steal money designated for use in combating drug crimes.
At the sentencing hearing, Deschutes County Sheriff Shane Nelson attested to the damage Beard’s abuse of trust caused to the community, and to the men and women working in law enforcement. Sheriff Nelson explained that Beard “betrayed the ideals of the law enforcement profession. He was in a position of absolute trust, and he abused this trust for his own gain.”
Judge McShane acknowledged the importance of citizens being able to have complete trust in those called to serve their communities as police officers. When imposing the sentence, he admonished Beard that the community has to know that this conduct will not be tolerated. Judge McShane pointed to Beard’s pervasive violation of the public trust placed in him by Sheriff Nelson, fellow law enforcement officers, state prosecutors, and his own community. Judge McShane further ordered Beard to serve three years of supervised release after he completes his prison term.
During the investigation, Beard told federal agents that he donated $10,000 of the stolen money to a South African orphanage. Orphanage records show that his actual donation was less than $92. In reality, Beard laundered the money through the bank account of his mistress, Krista Jean Mudrick, showering her with cash to support a lifestyle that included vacations and multiple cosmetic surgeries for Mudrick.
The sentencing followed Beard’s May 2016 guilty plea to two counts of theft concerning programs receiving federal funds and two counts of money laundering. An audit ordered by newly appointed Sheriff Nelson uncovered Beard’s crimes. After a federal grand jury returned an indictment against Beard and Mudrick, the Sheriff’s office fired him. Mudrick has also been federally charged with making materially false statements to federal agents investigating Beard’s crimes.
U.S. Attorney Billy J. Williams said “Law enforcement officers who steal public funds harm the entire community. We rely on the honesty and integrity of every law enforcement officer to do the right thing. Beard’s greed undermined the good work done by his fellow officers and this sentence sends a clear signal that crimes committed by law enforcement officers will be prosecuted to the full extent of the law.” Special Agent in Charge Darrell Waldon of IRS Criminal Investigation commented that “Criminals are sentenced to prison every day for actions driven by greed, but the level of greed that Beard sunk to is really beyond belief. This is an individual who, as a member of the law enforcement community, took an oath to uphold the law.”
The FBI and IRS-CI jointly investigated this case and it was prosecuted by Assistant U.S. Attorneys Christopher Cardani and Frank R Papagni, Jr.
Former CEO of Virginia Regional Transit Sentenced for BriberyRead the Press Release
ALEXANDRIA, Va. – Mark W. McGregor, 63, of Charles Town, West Virginia, was sentenced today to 18 months in prison for bribery concerning programs receiving federal funds. In addition, McGregor was ordered to pay $380,000 in restitution, $380,000 in forfeiture, and a $50,000 fine.
McGregor pleaded guilty on May 16 for his role in a bribery scheme that caused $380,000 in losses to the U.S. government. According to court documents, McGregor served as the chief executive officer of Virginia Regional Transit (VRT), a not for profit 501(c)(3) organization that provides transportation services throughout Northern Virginia. VRT is funded by a combination of federal, state and local grants, including from the U.S. Department of Transportation. McGregor engaged in a bribe scheme with co-conspirator Thomas Ahalt, then President of Mobile Auto Truck Repair (Mobile Auto), an automotive repair business in Purcellville, since 2007. Mobile Auto provided automotive repair services to VRT.
According to plea papers, from January 2007 through December 2015, Mobile Auto submitted—and McGregor caused to be approved—false invoices for additional weekly labor charges. McGregor approved and VRT paid to Mobile Auto approximately $380,000 in fraudulent additional weekly labor charges. A portion of the monies VRT paid to Mobile Auto were federal program funds originating from the Federal Transit Administration, an agency within the U.S. Department of Transportation. In exchange, McGregor received regular kickback payments from Ahalt and others associated with Mobile Auto totaling half of the additional weekly labor charges. In total, McGregor received approximately $190,000 in kickback payments.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Floyd Sherman, Regional Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-113.
Federal Indictment Charges 21 Defendants for Violent Drug Distribution Conspiracy Operating in the Cherry Hill Area of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has returned an indictment charging 21 defendants for being part of the Hillside Enterprise, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore. The indictment alleges that member of the Hillside Enterprise committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with the enterprise. The indictment was returned on September 8, 2016 and unsealed today. Thirteen defendants are in custody. Law enforcement is still searching for eight of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“The most important thing law enforcement officers can do to stop violence is to make clear that killers will be held accountable,” said U.S. Attorney Rod J. Rosenstein. “Although the only crime charged in this indictment is a drug conspiracy, the allegations include 13 murders and 21 non-fatal shootings. Conspiracy cases are a valuable tool to put violent gangs out of business.”
According to the indictment, beginning in at least early 2002, the Hillside Enterprise distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The indictment alleges that members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members allegedly used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, members used colored topped vials or colored the drugs with food coloring.
The indictment alleges that members of the Hillside Enterprise routinely carried firearms, and committed home invasion and street robberies, and other acts of violence in furtherance of the organization’s activities, including shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy. According to the indictment, members of the Hillside Enterprise used gang signs to communicate and some had tattoos reflecting their allegiance to the conspiracy.
The indictment charges the following defendants:
*Travis Alewine, a/k/a Sticks, age 24; *Jerryan Burrell, a/k/a Rhino, age 31; *Leonard Chase, a/k/a Nard, age 22; *Deaven Cherry, a/k/a Gotti, age 29; Delonte Conley, a/k/a Tay, Ziggy, age 24; *Christopher Dukes, a/k/a Scarface, age 24; Michael Evans, a/k/a Pee Wee, age 22; *Marshon Floyd, a/k/a Killer, age 25; *Kevin Horsey, a/k/a What What, age 24; Marcus Johnson, a/k/a Black, age 25; *Keenan Lawson, a/k/a Blackface, age 24; Stevie Lawson, a/k/a GB, age 26; *Terrell Luster, a/k/a Relly, age 28; Cintront Lynn, a/k/a Stitch, Lil Cuz, age 20; Van McNutt, a/k/a Butt Butt, age 38; *Caesar Rice, a/k/a Stinky, age 24; Devin Rodgers, a/k/a Donkey, Dick Butkus, age 21; Daniel Seawell, a/k/a June Bug, age 20; Michael Truehart, a/k/a Papers, age 20; Robert White, a/k/a Beanhead, age 29; and
*Lemar Williams, a/k/a Mar; Tutta, age 25.Eleven defendants (denoted by *) also face enhanced sentences for murder. The indictment specifically alleges that: Burrell was involved in the murder of three persons; Floyd was involved in the murder of three persons; Williams was involved in the murder of three persons, Dukes, Horsey, Cherry, and Keenan Lawson were each involved in the murder of two persons; and Chase, Luster, Rice and Alewine were each involved in a single murder. Incidents of attempted murders and aggravated assaults are also alleged against these defendants and others named in the indictment. Rodgers, Seawell, Stevie Lawson, and Lynn are alleged to have been involved in drug distribution but face no allegations of violent activities.
All 21 defendants face a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The defendants arrested today are expected to have initial appearances in U.S. District Court in Baltimore. The defendants already in custody will be scheduled for an initial appearance at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman” and “Coppin Court.”
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the September 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Brandon Lee Amend and Cory Dean Blanchard. Conspiracy to Commit Bank Fraud, Bank Fraud, Possession of Device Making Equipment, Theft of Receipt of Stolen Mail Matter, and Keys or Locks Stolen or Reproduced. Amend, 30, and Blanchard, 32, both of Wichita, Kansas, are each charged with, six counts of bank fraud, one count each of conspiracy to commit bank fraud, possession of device-making equipment, mail theft, and possessing and counterfeiting mail keys. Amend and Blanchard are accused of possessing equipment to make counterfeit checks, driver’s licenses and United States Postal Service collection box keys. The defendants are accused of stealing checks from collection boxes then making and using false identification documents to fraudulently obtain money from a local bank. The defendants fraudulently obtained over $10,000. If convicted, the statutory maximum penalty is 30 years in prison and a $1,000,000 fine. The United States Postal Inspection Service is the investigating agency.
Octavio Gaytan-Veles. Reentry of Removed Alien. Gaytan-Veles, 39, is charged with having returned to the United States unlawfully after being deported in June 2013 from Brownsville, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Rigoberto Gomez-Mendez. Reentry of Removed Alien. Gomez-Mendez, 29, is charged with having returned to the United States unlawfully after being deported in November 2012 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Ethan Joseph Hernandez. Aiming a Laser Pointer at an Aircraft. Hernandez, 24, of Sapulpa, is charged with aiming the beam of a laser pointer at a Tulsa Police Department helicopter. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Department of Transportation is the investigating agency.
Reuben Joe Mercado. False Statements or Representations and Concealing a Person From Arrest. Mercado, 37, of Tulsa, is charged with making false statements to a Deputy United States Marshal regarding the whereabouts of a fugitive and for the offense of harboring and concealing the fugitive from arrest. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine for both offenses. The United States Marshals Service is the investigating agency.
Daniel Vasquez-Garcia. Reentry of Removed Alien. Vasquez-Garcia, 50, is charged with having returned to the United States unlawfully after being deported in July 2009 from Laredo, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
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Fargo Man Sentenced in Connection with Shooting during Taco John’s RobberyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on September 8, 2016, Carl Eugene Smith, 24, Fargo, ND, was sentenced before US District Judge Ralph R. Erickson to serve 12 years in federal prison for two-count Indictment charging him with Interference with Commerce by Threats or Violence- Hobbs Act Robbery, as well as Use of a Firearm in Furtherance of a Crime of Violence. Judge Erickson also ordered that Smith serve 3 years supervised release and to pay a $200 special assessment to the crime victims fund
On or about September 3, 2015, Smith and other co-conspirators were involved in robbing the Taco John’s restaurant located at 2601 32nd Ave. S., Fargo, as the restaurant was beginning to close. During the robbery Smith fired two shots, with one of the shots hitting an employee in the leg, causing injury that required medical treatment.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as well as the Fargo Police Department.
U. S. Attorney Christopher C. Myers is prosecuting the case.
Fall River Woman Pleads Guilty to Identity Theft and Theft of Social Security BenefitsRead the Press Release
BOSTON – A Jamaican citizen living in Fall River pleaded guilty today in U.S. District Court in Boston in connection with using her sister’s identity to enter the United States and collect over $140,000 in Social Security benefits.
Sandra McDonald, 51, a Jamaican citizen living in Fall River, pleaded guilty to passport fraud, two counts of theft of public money and misrepresenting a Social Security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 20, 2016. McDonald has been held in custody since her arrest in May 2016.
McDonald was born in Jamaica. In 1990, McDonald obtained a U.S. resident alien card under her sister’s name, but with her own photograph and fingerprint on the card. Shortly after entering the United States under her sister’s identity, McDonald obtained a Social Security card, also in her sister’s name. In 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity, and to date she has received more than $140,000 in benefits illegally. McDonald also illegally received nearly $30,000 in MassHealth benefits under her sister’s identity.
In addition, McDonald used a second woman’s identity to apply for a passport in 2008, and a third woman’s identity to obtain a driver’s license in 2012.
The charges of passport fraud and theft of public money each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of misrepresenting a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
District Man Sentenced to 16 Years in Prison for Murder of Man in Northeast WashingtonRead the Press Release
WASHINGTON – Dion X. Martin, 24, of Washington, D.C., was sentenced today to 16 years in prison for the shooting death of a man last year in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Martin pled guilty in June 2016, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. He was sentenced by the Honorable Robert E. Morin. Following his prison term, Martin will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 6, 2015, at approximately 11:20 a.m., Martin shot and killed Muhammad “Mo” Washington, 20, in the 4200 block of Edson Street NE. Shortly before the shooting, Martin was heard walking around asking for “Mo” and loudly stating that he was going to shoot him because he had told people where his mother lived. The victim, an acquaintance of the defendant, approached Martin soon afterwards at the corner, where they engaged in a heated argument. Martin walked away, only to return minutes later with his hand tucked in his pocket. Mr. Washington reached for Martin with both arms as Martin approached, and after a brief struggle, Martin pulled a gun out of his pocket and fired a single shot into Mr. Washington’s chest. Martin ran away and Mr. Washington ran around the corner where he quickly died from his injuries.
Officers with the Metropolitan Police Department (MPD) identified Martin by locating eyewitnesses to the defendant’s actions, and by locating an additional eyewitness to whom the defendant confessed his crime. Martin was arrested on Dec. 11, 2015.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case for the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Jennifer Allen; Paralegal Specialists Karen Hansen and Stephanie Siegerist; Investigative Analyst Zachary McMenamin; Witness Security Specialist Wanda Queen, and Assistant U.S. Attorney Gilead Light, who investigated and prosecuted the matter.
District Man Pleads Guilty to Sexual Attack Against Woman in Northwest WashingtonRead the Press Release
WASHINGTON – Juwaun Evans, 21, of Washington, D.C., pled guilty today to charges involving a home invasion and sexual assault at an apartment building in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Evans pled guilty in the Superior Court of the District of Columbia to one count each of attempted first-degree sexual abuse and first-degree burglary. The plea, which is contingent upon the Court’s approval, calls for a prison term of eight years. The Honorable Michael Ryan scheduled sentencing for Nov. 18, 2016.
During today’s proceedings, Evans admitted that on the afternoon of Aug. 17, 2014, he encountered the victim near her apartment building in the 3900 block of Georgia Avenue NW. Evans, whom the victim did not know and had never met, followed her into the building and to her floor. There, he forced his way into her apartment against her will, overcoming her as she attempted to stop him from entering. Evans admitted that he threatened the victim, sexually assaulted her, and then fled the apartment.
Officers with the Metropolitan Police Department (MPD) identified Evans as the suspect and an arrest warrant was issued on Feb. 23, 2016. As part of his plea, Evans admitted to sexually assaulting the victim and forcing his way into her apartment against her will.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialist D’Yvonne Key. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Jason Park and John Timmer, who investigated and prosecuted the case.
D.C. Man Sentenced for Assaulting Officer and Fleeing in Stolen Police CruiserRead the Press Release
ALEXANDRIA, Va. – Wilson Alfonso Overton, 27, of Washington, D.C., was sentenced today to 24 months in prison for assault on a federal officer and unauthorized use of a vehicle. Overton was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $32,157.00.
Overton pleaded guilty on May 27. According to court documents, on March 16, Overton was pulled over for speeding on the George Washington Memorial Parkway by two officers of the U.S. Park Police. Officers approached Overton’s vehicle and smelled the odor of marijuana. Suspecting the driver to be impaired, officers asked Overton to exit the vehicle. Overton refused, rolled up his car window, and sped off on the George Washington Memorial Parkway, striking one of the officers with his car as he fled. Overton then led officers on a chase at speeds as high as 115 mph that ended when Overton crashed his vehicle. Overton then continued to flee on foot, later stole a police cruiser, and drove it into Washington, D.C., before finally crashing that vehicle as well.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Robert MacLean, Chief of U.S. Park Police, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Sean M. Welsh and Assistant U.S. Attorney Matthew Burke prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-120.