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8 September 2016
Baltimore Man Pleads Guilty in Federal Court to a Series of Commercial RobberiesRead the Press Release
Baltimore, Maryland – Taft Redd, age 45, of Baltimore, Maryland, pleaded guilty today to six commercial robberies committed between July 22 and August 18, 2015.
The guilty plea 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; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, in each robbery Redd entered the store, approached the register, displayed what appeared to be a black handgun, and demanded money. Redd stole cash from each store and occasionally took merchandise as well. Specifically, on July 22 and August 18, 2015 Redd robbed the same convenience store located in the 5200 block of Harford Road in Baltimore; on July 22 Redd robbed a shoe store located in the 3200 block of Greenmount Avenue in Baltimore; July 29 and August 12, 2015 Redd robbed the same shoe store located in the 3900 block of Erdman Avenue in Baltimore; and on August 16, 2015 Redd robbed a fast food restaurant in the 2000 block of N. Broadway in Baltimore.
When Redd was arrested on August 19, 2015, he was in possession of a black BB gun that was the same weapon seen by witnesses in the six robberies.
Redd and the government have agreed that if the Court accepts the plea agreement Redd will be sentenced to 10 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for November 9, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew C. Sullivan, who is prosecuting the case.
Attorney General Lynch to Participate in Memorial Events to Mark the 15th Anniversary of September 11Read the Press Release
Attorney General Lynch to hold a 9/11 commemoration event at the Department of Justice and Travel to New York to attend Memorial Services
Attorney General Loretta E. Lynch will lead a moment of silence as part of a commemoration ceremony with Department of Justice employees on FRIDAY, SEPT., 9, at 9:00 a.m. EDT to recognize the 15th anniversary of the 9/11 terrorist attack. Following the moment of silence, the Attorney General will deliver remarks and dedicate a commemorative plaque for the “Survivor Tree” seedling that was planted in the Department of Justice’s courtyard on the anniversary last year.
On SATURDAY, SEPT. 10, at 3:00 p.m. EDT, the Attorney General will attend the New York City Fire Department’s (FDNY) 15th Anniversary Memorial Mass at St. Patrick’s Cathedral. The memorial mass is closed to press but livestreamed on the St. Patrick’s Cathedral website. On SUNDAY, SEPT. 11, AT 8:46 A.M. EDT Attorney General Lynch will attend the 15th anniversary ceremony at the National September 11 Memorial Plaza, and will tour the 9/11 Memorial Museum. Attorney General Lynch will then deliver remarks at a memorial service hosted by the First Presbyterian Church of Brooklyn on SUNDAY, SEPT. 11 AT 11:00 A.M. EDT, which she attended as a member during the years she lived in Brooklyn.
DEPARTMENT OF JUSTICE MOMENT OF SILENCE AND SURVIVOR TREE PLAQUE UNVEILING
WHO: Attorney General Loretta E. Lynch
Deputy Attorney General Sally Q. Yates,
Principal Deputy Associate Attorney General Bill Baer
FBI Director James Comey
Assistant Attorney General John P. Carlin of the National Security Division
Assistant Attorney General Leslie R. Caldwell of the Criminal Division
WHEN: FRIDAY, SEPTEMBER 9, 2016
9:00 a.m. EDT
WHERE: U.S. Department of Justice
Courtyard
950 Pennsylvania Ave., N.W.
Washington, D.C.
OPEN PRESS (Media Gather Time: 7:50 a.m. EDT; Final Access: 8:40 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected] or [email protected].
FDNY 15th ANNIVERSARY MEMORIAL MASS AT ST. PATRICK’S CATHEDRAL
WHEN: SATURDAY, SEPTEMBER 10, 2016
3:00 p.m. EDT
WHERE: St. Patrick’s Cathedral
5th Ave and 51st Street
New York, NY 10022
OPEN TO PRINT MEDIA
LIVESTREAMED AT: http://saintpatrickscathedral.org/live.
Note: NYCTV will also provide a livestream for media cameras outside the cathedral.
9/11 COMMEMORATION CEREMONY
WHEN: SUNDAY, SEPTEMBER 11, 2016
8:46 a.m. EDT
WHERE: 9/11 Memorial Plaza
180 Greenwich Street
New York, NY 10007
OPEN TO REGISTERED PRINT MEDIA & BROADCAST POOL CAMERA
LIVESTREAMED AT: www.911memorial.org.
NOTE: Print media should register here. Space is limited and not guaranteed. Please note that registration for this event closes today, Thursday, Sept. 8, at 11:30 a.m. EDT. Press inquiries regarding logistics should be directed to Michael Frazier or Kate Monaghan at [email protected] or (212) 312-8800; or the 9/11 Memorial Media Center.
9/11 MEMORIAL SERVICE AT FIRST PRESBYTERIAN CHURCH OF BROOKLYN
WHO: Attorney General Loretta E. Lynch
WHEN: SUNDAY, SEPTEMBER 11, 2016
11:00 a.m. EDT
WHERE: First Presbyterian Church of Brooklyn
124 Henry Street
Brooklyn, NY 11201
OPEN TO REGISTERED MEDIA (Media Gather Time: 9:30 a.m. EDT; Final Access: 10:30 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Members of the media must RSVP to [email protected] and [email protected] by FRIDAY, SEPTEMBER 9, 2016, at 5:00 p.m. EDT. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to [email protected] or [email protected].
Background on the Survivor Tree:
Hundreds of trees grace the plaza of the 9/11 Memorial, but one is unlike the rest. It’s a Callery pear tree that once stood on the original World Trade Center Plaza. The collapse of the Twin Towers on Sept. 11, 2001 nearly destroyed it, but it was nursed back to health, and today it stands strong again at the Memorial, where it is often adorned with tributes from the Memorial’s millions of visitors. It is known around the world as the “Survivor Tree.”
Fruit from the Survivor Tree was harvested in the fall of 2011 by Bartlett Tree Experts. In the summer of 2013, the students of John Bowne High School in Flushing, Queens, New York, took custody of the seedlings and have continued to care for them. The project is a learning experience for the students, teaching about the agriculture of the trees and the history of 9/11.
Each year the 9/11 Memorial donates a Survivor Tree Seedling to a community who has overcome tragedy. These communities represent the spirit of the Survivor Tree and their tree will serve as an inspirational landmark conveying resiliency and hope within the community, just as the Survivor Tree does at the 9/11 Memorial. In 2015, the 9/11 Memorial graciously donated one of these unique seedlings to DOJ, and today, it continues to flourish in the courtyard of Main Justice.
Area Man Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – Kenneth Edwards, St. Louis City, was indicted on wire fraud and identity theft charges involving a scheme to use counterfeit checks to make purchases at local Walmart and Sam’s stores.
According to the indictment, from August to December 2015, Edwards used a stolen account number and routing number to purchase valuable goods from retail stores using forged or counterfeit checks. Edwards allegedly obtained a checkbook, identification and other information after it was stolen from a victim on August 2015.
Edwards was indicted by a federal grand jury August 17th on three felony counts of wire fraud and one felony count of aggravated identity theft. He appeared in federal court Thursday afternoon, September 8th.
If convicted, wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Aggravated identity theft carries two years in prison and/or fines up to $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 Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Amsterdam Man Sentenced to 105 Months for Unlawfully Possessing 5 Guns and Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Shawn Taft, age 45, of Amsterdam, New York, was sentenced yesterday to 105 months in prison for possessing 5 firearms as a felon and distributing heroin.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
U.S. District Judge Mae A. D’Agostino also sentenced Taft to 3 years of post-imprisonment supervised release.
In May 2014, Taft sold heroin to another person on two separate occasions in the city of Schenectady.
On July 8, 2015, the U.S. Marshals Service, with assistance from the Amsterdam Police Department, went to arrest Taft at his home on heroin distribution charges. While arresting him, an officer observed a .22 caliber rifle in a closet in the front bedroom of Taft’s residence. Officers went on to find additional firearms in the residence, including three rifles and a High Standard, model 88, .22 caliber revolver. The revolver was found in a bag of dog food on the back porch. The other guns were found in his bedroom closet. Taft had previously been convicted of a felony and could not possess a firearm.
This case was investigated by the DEA, the Bureau of Alcohol Tobacco, Firearms & Explosives, and the U.S. Marshals Service, in conjunction with the Schenectady Police Department and the Amsterdam Police Department. The case was prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Albuquerque Man Sentenced to Prison for Participating in the Armed Robbery of a Convenience StoreRead the Press Release
ALBUQUERQUE – Frank Gallegos, 31, of Albuquerque, N.M., was sentenced today in federal court to 71 months in prison for violating the Hobbs Act. Gallegos will be on supervised release for three years following his prison sentence.
Gallegos and five other Albuquerque residents were charged in Jan. 2015, with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Gallegos, Raymond Castillo, 27, Reyes Lujan, 27, Daniel Maestas, 36, Johnny Ramirez, 31, and Henry Lujan, 23, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
A seven-count superseding indictment was filed on May 28, 2015, charging the original six defendants and adding Reynaldo Marquez, 26, as a new defendant and two new counts. The two new charges in the superseding indictment charged Marquez and Castillo with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County, N.M., on Dec. 7, 2014, and Marquez with discharging a firearm during the robbery of the 7-11 convenience store on Dec. 7, 2015.
On March 30, 2016, Gallegos pled guilty to Count 2 of the superseding indictment charging him with aiding and abetting an interference with interstate commerce. In entering the guilty plea, Gallegos admitted that on Oct. 28 and 29, 2014, he acted as a lookout for the armed robbery of the Walmart located at 400 Eubank NE in Albuquerque.
Gallegos’ six co-defendants previously have entered guilty pleas. Reyes Lujan was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release. The five remaining co-defendants are in custody pending their sentencing hearings.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Christopher Craig, 26, of Albuquerque, N.M., pled guilty today in federal court to a federal heroin trafficking charge.
Craig was arrested in Feb. 2016, on a criminal complaint charging that he possessed heroin with intention of distributing it on Feb. 17, 2016, in Sandoval County, N.M. According to the complaint, Craig attempted to sell approximately 205.8 grams of heroin to law enforcement officers. At the time of his arrest, Craig was on supervised release for a prior conviction for possession of a firearm in furtherance of a drug trafficking crime from 2010. Craig was subsequently indicted on March 8, 2016, on the same charge.
During today’s proceedings, Craig pled guilty to the indictment and admitted that on Feb. 17, 2016, he arranged to sell a half pound of heroin in exchange for $5,000. Craig further admitted that when he met with the purchaser he was arrested and found to be in possession of 205.8 grams of heroin.
At sentencing, Craig faces a minimum penalty of five years and a maximum of 40 years in prison. According to the plea agreement, Craig’s sentence will run concurrent to the sentence he will receive on the supervised release violation for his prior conviction. Craig remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated the Albuquerque office of the FBI and the New Mexico State Police. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
2016 Strom Thurmond Awards for Excellence in Law EnforcementRead the Press Release
Columbia, South Carolina – Acting United States Attorney Beth Drake’s Law Enforcement Coordinating Committee, the South Carolina Law Enforcement Officers’ Association (SCLEOA), and the Strom Thurmond Foundation will host a luncheon on Friday, September 9, 2016, for the presentation of the 2016 Strom Thurmond Awards for Excellence in Law Enforcement. These awards, established in 1983 by Senator Strom Thurmond, are presented annually to a city, county, state, and federal law enforcement officer who have demonstrated the highest ideals of excellence in professional law enforcement. The awards ceremony will be attended by law enforcement officers from throughout the state.
The 2016 awards luncheon will be held at the Fort Jackson Officers’ Club at Fort Jackson. Lunch will begin at 12:00 Noon and the awards program will begin at approximately 12:30 p.m. The names of award recipients will be announced during the luncheon.
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7 September 2016
Youngstown man sentenced to 21 years in prison for sexually abusing minorRead the Press Release
A Youngstown man was sentenced to more than 21 years in prison for traveling across state lines to engage in illegal sexual activity, law enforcement officials said.
David Guevara, Sr., 35, was sentenced to 262 months in prison by U.S. District Judge Christopher Boyko.
Guevara met a 15-year old girl in July 2015 and began a sexual relationship with her. Initially, Guevara would have sex with the minor in a tent under a Youngstown bridge. On July 31, 2015, Guevara purchased travel arrangements to move them to Philadelphia. During their trip and once they arrived in Philadelphia, Guevara Sr. continued to engage in sexual intercourse with the minor, according to court documents.
Guevara was originally interviewed by local law enforcement on December 14, 2015. He admitted to engaging in a sexual relationship with the minor and traveling with her to Philadelphia, even though he knew that she was just 15 years old. Guevara also stated that it was his intent to have a child with the minor and to move her and the baby to Mexico, according to court documents.
This case was investigated by the Federal Bureau of Investigation Youngstown Resident Agency, the Mahoning County Sheriff’s Office, and the Youngstown Police Department. It was prosecuted by Assistant U.S. Attorney Benedict S. Gullo.
West Charlton Woman Sentenced on Narcotics ConvictionRead the Press Release
ALBANY, NEW YORK – Kelly Burgess, age 26, of West Charlton, New York, was sentenced today to serve 3 years of probation and to pay a $3,000 fine for possessing and intending to sell hundreds of Oxycodone pills that she stole from the Ballston Spa pharmacy that employed her.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
The sentence was imposed by U.S. District Judge Mae A. D’Agostino following Burgess’s May 10, 2016 plea to possessing and intending to distribute 400 pills of Oxycodone, a controlled substance. In her plea, Burgess admitted that she stole the pills from a Ballston Spa pharmacy where she worked.
This case was investigated by the DEA and was prosecuted by Assistant U.S. Attorney Solomon Shinerock.
Virginia Beach Man Pleads Guilty to Assault on a Federal OfficerRead the Press Release
NORFOLK, Va. – Marcus D. Wilkins, 27, of Virginia Beach, pleaded guilty today to assault on a federal officer with a dangerous weapon.
According to the statement of facts filed with the plea agreement, on May 1, Wilkins removed a shopping cart full of unpaid merchandise from the Navy Exchange at Naval Air Station Oceana in Virginia Beach. A loss prevention officer saw him remove the merchandise and ordered him to stop. Instead, Wilkins walked away from the shopping cart and toward his car. An officer with the Naval Air Station Oceana base police observed Wilkins walking toward his vehicle and approached the vehicle, identified himself as base police and positioned himself in front of the vehicle and twice ordered Wilkins to stop. Wilkins started his car and accelerated into the police officer, lifting him off the ground with the hood of the car and pushing him backward in the air and to the ground. Wilkins then fled the Navy Exchange parking lot and was apprehended by members of the Virginia Beach Police Department shortly thereafter.
Wilkins was indicted by a federal grand jury on June 8, and faces a maximum penalty of 20 years in prison on December 14. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Tim Quick, Special Agent in Charge, Naval Criminal Investigative Service, Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Special Assistant U.S. Attorney Alyssa K. Nichol is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-84.
U.S. Attorney’s Office and U.S. Marshals Service Warn of Jury Duty Phone Scam in Chattanooga AreaRead the Press Release
CHATTANOOGA, Tenn. – Chattanooga area residents are being targeted by phone calls regarding failure to report for jury duty from a person claiming to be from the U.S. Marshal Service. The scam involves an individual contacting the victim, telling him/her that he/she has missed federal jury duty, and demanding the victim pay a fine to avoid being arrested.
Often, to make the scheme believable, victims are provided with factual information such as the title and badge number of a law enforcement officer or court official, the name of a federal judge, and the courthouse address. They are also using technology to mask their phone number on caller ID and make it appear as if the call is actually coming from the court or a government agency. This tactic is called “spoofing” and has become very common with scammers nationwide. In some cases, the scammer may carry the scheme out via email with an official looking email address.
If you receive a jury duty related call or email, do not provide any personal information or send money. The U.S. Marshal Service does not call or email prospective jurors or ask for money or personal information and they never serve an arrest warrant by phone. Real, valid arrest warrants are always served in person. They also do not demand the payment of money in lieu of arrest, nor accept payment via prepaid card.
Anyone receiving one of these calls or emails should report it report it immediately to their local U.S. Marshals Service, 423-752-5115 or the FBI, https://tips.fbi.gov. If available, please have the caller ID or email address information of the scammer when you call.
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Two Psychologists Plead Guilty in $25 Million Nursing Home-Testing SchemeRead the Press Release
WASHINGTON – Two clinical psychologists pleaded guilty today for their involvement in a fraudulent psychological testing scheme that preyed upon Medicare recipients living in nursing homes throughout the Southeastern United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office made the announcement.
Beverly Stubblefield, Ph.D., 62, of Slidell, Louisiana, and John Teal, Ph.D., 46, of Jackson, Mississippi, each pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Carl Barbier of the Eastern District of Louisiana. They were charged in a superseding indictment on Oct. 22, 2015, along with co-defendants Rodney Hesson, Psy.D., 46, and Gertrude Parker, 62, both of Slidell, who were originally charged in June 2015 in connection with a large-scale Medicare Fraud takedown.
According to admissions made in connection with their plea agreements, Stubblefield and Teal practiced as clinical psychologists at Nursing Home Psychological Services, Inc. (NHPS) and Psychological Care Services, Inc. (PCS). Stubblefield and Teal admitted that NHPS and PCS were owned and operated by Hesson and Parker, who is Hesson’s mother. NHPS and PCS billed Medicare claiming that NHPS and PCS psychologists, including Stubblefield and Teal, administered psychological tests to nursing home residents throughout Mississippi, Louisiana, Florida and Alabama. In addition, Teal and Stubblefield admitted that a large number of these tests were not medically necessary and many testing services were not provided. According to the plea agreements, Teal and Stubblefield repeatedly tested the same nursing home residents even though some were incapacitated and could not meaningfully participate in testing.
From 2010 through 2015, Stubblefield and Teal were responsible for more than $5.6 million in fraudulent claims submitted to Medicare, according to the plea agreements.
Hesson and Parker are scheduled to begin trial on Oct. 11, 2016. An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorneys William Kanellis, Katherine Payerle and Katherine Raut of the Criminal Division’s Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
Two Psychologists Plead Guilty in $25 Million Nursing Home-Testing SchemeRead the Press Release
Two clinical psychologists pleaded guilty today for their involvement in a fraudulent psychological testing scheme that preyed upon Medicare recipients living in nursing homes throughout the Southeastern United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Regional Office and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office made the announcement.
Beverly Stubblefield, Ph.D., 62, of Slidell, Louisiana, and John Teal, Ph.D., 46, of Jackson, Mississippi, each pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Carl Barbier of the Eastern District of Louisiana. They were charged in a superseding indictment on Oct. 22, 2015, along with co-defendants Rodney Hesson, Psy.D., 46, and Gertrude Parker, 62, both of Slidell, who were originally charged in June 2015 in connection with a large-scale Medicare Fraud takedown.
According to admissions made in connection with their plea agreements, Stubblefield and Teal practiced as clinical psychologists at Nursing Home Psychological Services, Inc. (NHPS) and Psychological Care Services, Inc. (PCS). Stubblefield and Teal admitted that NHPS and PCS were owned and operated by Hesson and Parker, who is Hesson’s mother. NHPS and PCS billed Medicare claiming that NHPS and PCS psychologists, including Stubblefield and Teal, administered psychological tests to nursing home residents throughout Mississippi, Louisiana, Florida and Alabama. In addition, Teal and Stubblefield admitted that a large number of these tests were not medically necessary and many testing services were not provided. According to the plea agreements, Teal and Stubblefield repeatedly tested the same nursing home residents even though some were incapacitated and could not meaningfully participate in testing.
From 2010 through 2015, Stubblefield and Teal were responsible for more than $5.6 million in fraudulent claims submitted to Medicare, according to the plea agreements.
Hesson and Parker are scheduled to begin trial on Oct. 11, 2016. According to the superseding indictment, from 2009 through 2015, NHPS and PCS submitted more than $25.2 million in claims to Medicare. An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorneys William Kanellis, Katherine Payerle and Katherine Raut of the Criminal Division’s Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Two Mexican nationals charged in federal court after seizure of 200 pounds of cocaineRead the Press Release
Two men from Mexico were charged in U.S. District Court after law enforcement personnel seized more than 200 pounds of cocaine in Cleveland.
Antonio Navarro-Gaytan and Alejandro Cota-Luna are scheduled to appear in federal court Wednesday afternoon. They have been charged with conspiracy to possess with intent to distribute cocaine.
“Taking more than 200 pounds of cocaine off the streets helps make our community safer and stronger,” U.S. Attorney Carole S. Rendon said. “The DEA, Cleveland Police and all the law enforcement agencies that worked on this case did an outstanding job.”
DEA Special Agent in Charge Timothy J. Plancon said: “This is one of the largest cocaine seizures in Ohio in the past decade. Disrupting the flow of illegal drugs into our communities, and stopping the distribution of those drugs continues to be DEA and our partners’ top priority. A seizure of cocaine this large, should also serve as a reminder that cocaine is dangerous and deadly, and continues to be a major drug of abuse in our society.”
“The hard work and dedication of many officers and agents from multiple law enforcement agencies can be seen in the outcome of this thorough investigation,” said Cleveland Police Chief Calvin Williams. “This large-scale seizure means less drugs on our streets and makes our community safer. I am proud of the partnership that the Cleveland Division of Police shares with our law enforcement partners.”
“I am extremely proud of this task force, specifically the work of our assigned deputy,” said Cuyahoga County Sheriff Clifford Pinkney. “Large busts such as this underscore the importance of collaboration between federal, state, and local law enforcement agencies, and demonstrates the strong relationships we have in here Northeast Ohio.”
According to an affidavit filed today in federal court:
DEA agents received information on Sept. 2 that a semi tractor-trailer with California license plates was expected to come to the Cleveland area from the Baltimore area to deliver drugs or pick up money associated with drug dealing. They located the tractor in a fenced lot at a large commercial building at 17877 St. Clair Ave.
Investigators observed a Nissan sedan occupied by the defendants pull into the parking lot of the building. The defendants then appeared to work on the trailer and then take items from the trunk of the Nissan and put them in the trailer.
Navarro-Gaytan and Cota-Luna then went to a nearby gas station, then headed westbound on Interstate 90, where they were pulled over for speeding and eventually arrested. A subsequent search of the trailer 92 rectangular bricks, each containing approximately one kilogram of cocaine.
This case is being prosecuted by Assistant U.S. Attorney Duncan Brown following an investigation by the Drug Enforcement Administration, Cleveland Division of Police, Ohio State Highway Patrol, Cuyahoga County Sheriff’s Department, Cleveland Heights Police Department, Ashtabula County Sheriff’s Office, Summit County Drug Unit, Lake County Narcotics Agency, Lorain County Drug Task Force and Homeland Security Investigations.
If convicted, the defendants’ sentences will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charges is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Prison Inmates Sentenced for Filing False Tax Refund ClaimsRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Schroder announced today that Jesse Scott Wilson, 41, was sentenced by U.S. District Judge Sharon Gleason to a total of 92 months in prison, followed by three years’ supervised release. Wilson had pled guilty to conspiracy to defraud the government with respect to tax refund claims on Feb. 26, 2016. In addition to his prison sentence, Wilson was ordered to pay restitution in the amount of $384,892.
Wilson was convicted of participating in a conspiracy to obtain tax refunds by filing fraudulent income tax returns. Between September 2008 and June 2012, Wilson and his co-conspirators prepared and submitted approximately 428 false tax returns claiming refunds of approximately $681,258.
At the sentencing hearing, U.S. District Judge Sharon Gleason pointed out the need for the sentence to address the severity of the crime and deter others in prison from committing similar crimes. Court documents revealed that Wilson conspired with his co-defendants and fellow prison inmates William Wesley Hines, aka Speedy, 54, Jason Donald Schmidlkofer, 34, and Nick Lewis Thurmond, 30, to obtain the names and social security numbers (SSNs) of individuals, many of whom were also inmates at correctional facilities. Wilson, Hines, Schmidlkofer, and Thurmond were State of Alaska prisoners who were incarcerated together at Red Rock Correctional Center in Eloy, Arizona, at the beginning of the conspiracy. Wilson and his co-conspirators prepared and filed false individual income tax returns using the names and SSNs of approximately 210 individuals. Wilson and his co-conspirators prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. The conspirators forged the individuals’ signatures on the tax returns and used their own personal addresses and fake addresses on the tax returns. The conspirators mailed the false income tax returns to the IRS. Wilson and his co-conspirators retained a portion of the money from the refunds, and then wired or mailed the remainder of the refunds to other co-conspirators.
Wilson, Hines, and Schmidlkofer are residents of Alaska. Thurmond is currently a resident of Colorado. Wilson, Hines, Schmidlkofer, and Thurmond were indicted by a federal grand jury in December 2015 for conspiracy to defraud the government with respect to false claims. Their current status is as follows:
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Hines pled guilty to conspiracy to defraud the government with respect to claims in May 2016 and was sentenced to 51 months in prison on Aug. 2, 2016;
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Schmidlkofer pled guilty to conspiracy to defraud the government with respect to claims in March 2016 and was sentenced to 56 months in prison on July 8, 2016; and
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Thurmond pled guilty to conspiracy to defraud the government with respect to claims in July 2016 and is scheduled to be sentenced on Oct. 5, 2016.
This investigation was an expansion of another prisoner tax refund scheme investigation involving Steven McComb, Michael Sexton, Paulando Williams, and Helen Maloney. Those defendants all pled guilty and were sentenced as follows:
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McComb pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to nine years in prison on Aug. 22, 2013;
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Sexton pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in December 2013 and was sentenced to 80 months in prison on Feb. 18, 2014;
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Williams pled guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft in June 2013 and was sentenced to 66 months in prison on Nov. 6, 2013; and
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Maloney pled guilty to conspiracy to defraud the government with respect to claims and mail fraud in April 2013 and was sentenced to 28 months in prison on July 2, 2013.
“The vast majority of Americans work hard and pay their taxes. A scheme to defraud the IRS like this takes money from all legitimate taxpayers,” stated Acting U.S. Attorney Bryan Schroder. “Plus, this scheme used identity theft as its vehicle. In the modern electronic age, identity theft rightly concerns all citizens. The U.S. Attorney’s Office in the District of Alaska, along with our law enforcement partners, is dedicated to protecting the earnings of hard-working Alaskans from fraud and theft.”
“For IRS Criminal Investigation, identity theft is a top priority which we will diligently pursue no matter where it hides. This investigation shows that this particular crime knows no boundaries as the victims of this fraud scheme were inmates in a correctional facility, a fact that makes this scheme especially troublesome,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation. “We warn all people everywhere to safeguard their private information and beware that would-be identity thieves are constantly lurking and looking for victims.”
Mr. Schroder commends the Internal Revenue Service, Criminal Investigation, State of Alaska Department of Corrections, and the Colorado Department of Corrections Office of the Inspector General for the successful investigation and prosecution of this case.
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Three Men Sentenced to Federal Prison for Cold Case MurderRead the Press Release
The three men responsible for Tony “T-Bone” Canfield’s death were sentenced to Federal Prison.
Devery Hibbler, age 26, from Dumas, Arkansas, Robert Beaver, age 35, from Sioux City, Iowa, and Courtland Clark, age 30, from Flowery Branch, Georgia, received their prison terms after June 10, 2016, guilty pleas. Hibbler, Beaver, and Clark each pled guilty to interference with commerce by robbery. In addition Clark and Hibbler also pled guilty to use of a firearm during and in relation to a crime of violence causing death.
Evidence at the change of plea hearings revealed: at about 11:00 pm on May 1, 2011, in Sioux City, Iowa, Beaver, Clark, and Hibbler, armed with a single loaded handgun, entered Tony Canfield's home to rob him of his marijuana and his marijuana proceeds. Beaver beat and held Canfield's wife while Clark and Hibbler struggled with, and physically robbed Canfield. Canfield resisted his attackers and attempted to escape the robbery by fleeing from his home. Canfield did not make it to safety; he was shot to death on his front porch by Hibbler.
The three defendants escaped the crime scene and successfully avoided detection for nearly five years. They were charged in a Superseding Indictment on April, 19, 2016.
Hibbler and Beaver were sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Devery Hibbler was sentenced to 420 months’
imprisonment, Robert Beaver was sentenced to 240 months’ imprisonment, and Courtland Clark was sentenced to 252 months’ imprisonment. Hibbler must serve a five-year term of supervised release after prison. Beaver must serve a three-year term of supervised release after prison, and Clark must serve a five-year term of supervised release after prison. There is no parole in the federal system. Hibbler and Clark were each ordered to pay a $200 special assessment, and Beaver was ordered to pay a $100 special assessment.
United States Attorney Kevin Techau stated:
“I would like to commend the hard work and perseverance of the law enforcement officers and agents that investigated this case. The FBI and Sioux City Police department spent hundreds of hours collecting evidence and tracking down witnesses from numerous states. Because of their hard work and cooperation, a difficult murder case has been solved, and the perpetrators brought to justice.”
All three are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated by the United States Department of Justice – Federal Bureau of Investigation, Sioux City Iowa Police Department, and the Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4009.
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Third Defendant Sentenced in High-Grade Meth Distribution RingRead the Press Release
RICHMOND, Va. – Jose Alfonso Romero-Ramirez, aka “El Tio” and aka “Oscar Romero,” age 51, of Los Angeles, California, and formerly of Richmond, was sentenced today to 85 months in prison for conspiracy to distribute methamphetamine and for distribution of methamphetamine.
Romero-Ramirez was found guilty by a federal jury on February 4. According to court documents and evidence presented at trial, an investigation was initiated by federal and state law enforcement agencies into a methamphetamine drug trafficking organization that was involved in the distribution of super-meth lab grade methamphetamine, with purity levels well in excess of 90 percent. The methamphetamine was being sent from California to Richmond for distribution. Co-conspirators Luis Mendez and Darlin Efren Arias-Dias previously pleaded guilty and were sentenced in this case.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS); and Gordon B. Johnson, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer. Assistant U.S. Attorney Angela Mastandrea-Miller 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. 3:15cr043.
The United States Files False Claims Act Complaint Against Six Vanguard Nursing Facilities and Related Entities, as Well as Vanguard’s Director of OperationsRead the Press Release
The United States has filed a False Claims Act case against Vanguard Healthcare LLC, Vanguard Healthcare Services LLC, Boulevard Terrace LLC, Vanguard of Crestview LLC, Glen Oaks LLC, Imperial Gardens Healthcare and Rehabilitation LLC, Vanguard of Memphis LLC, Vanguard of Manchester LLC and Vanguard’s Director of Operations, Mark Miller, the Department of Justice announced today. The lawsuit alleges that the defendants were responsible for the submission of false claims to Medicare and Medicaid for skilled nursing home services that were either non-existent or grossly substandard. The lawsuit also alleges that the defendants submitted required nursing facility Pre-Admission forms with forged physician and nurse signatures. Vanguard Healthcare LLC is headquartered in Brentwood, Tennessee, and has 14 long-term care nursing home providers operating around the United States.
“Our seniors rely on the Medicare and Medicaid programs to help care for them with dignity and respect,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice's Civil Division. “It is critically important that we confront nursing home operators who put their own economic gain over the needs of their residents. Operators who bill Medicare and Medicaid while failing to provide essential services will be held accountable.”
The United States’ complaint alleges that between Jan. 1, 2010, and Dec. 31, 2015, the six Vanguard facilities failed to provide the most basic and essential skilled nursing services to their residents. The lack of adequate care at the Vanguard facilities included chronic staffing and critical medical supplies shortages, failure to provide standard infection control, failure to administer medication to residents as prescribed by their physicians, failure to provide wound care as ordered by physicians, failure to adequately manage residents’ pain and providing unnecessary and excessive psychotropic medications to residents and using unnecessary physical restraints on residents. As a result, Vanguard residents suffered pressure ulcers, falls, dehydration and malnutrition, among other harms. The United States’ complaint further alleges that Miller, who served as the Director of Operations for Vanguard from September 2011 through August 2014, knew that resident care at the Vanguard facilities was non-existent or grossly substandard but failed to correct these problems.
The United States’ Complaint also alleges that from September 2012 through April 2014, Boulevard Terrace LLC, Glen Oaks LLC, Vanguard of Memphis LLC and Vanguard of Manchester LLC fraudulently submitted falsified Pre-Admission forms to Tennessee Medicaid.
On May 6, the Vanguard corporate entities named in the government's complaint filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, which were administratively consolidated in the Middle District of Tennessee.
“We are committed to combating elderly abuse, neglect and financial exploitation,” said U.S. Attorney David Rivera for the Middle District of Tennessee. “We will continue to hold accountable those who profit from the care of elderly Medicare and Medicaid beneficiaries, including nursing home operators, while providing non-existent or grossly substandard care.”
This case illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.6 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal health care programs. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Commercial Litigation Branch of the Justice
Department’s Civil Division, the U.S. Attorney’s Office for Middle District of Tennessee, the Department of Health and Human Services’ Office of Inspector General, and the Tennessee Attorney General’s Office and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. This action is supported by the Elder Justice and Nursing Home Initiative, which coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs. For more information about the Department’s Elder Justice Initiative, see https://www.justice.gov/elderjustice/.
The claims asserted against the defendants are allegations only and there has been no determination of liability.
The lawsuit is captioned United States vs. Vanguard, et al., CA 3:16 -cv-02380 (M.D.Tenn 2016).
The United States Files False Claims Act Complaint Against Brentwood, Tennessee – Based Vanguard Healthcare, LLCRead the Press Release
The United States has filed a False Claims Act lawsuit against Vanguard Healthcare LLC, and six of its nursing homes and related entities, as well as Vanguard’s Director of Operations, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice Civil Division.
The six Vanguard facilities include Boulevard Terrace, LLC operating as Boulevard Terrace Rehabilitation and Nursing Center in Murfreesboro, Tennessee; Vanguard of Crestview operating as Crestview Health and Rehabilitation in Nashville, Tennessee; Glen Oaks, LLC operating as Glen Oaks Health and Rehabilitation in Shelbyville, Tennessee; Imperial Gardens Health and Rehabilitation, LLC, which previously operated Imperial Gardens Health and Rehabilitation, LLC in Madison, Tennessee and has ceased operations; Manchester Health Care Center, in Manchester, Tennessee, which is operated by Vanguard of Manchester, LLC; and Vanguard of Memphis, LLC, operating as Poplar Point Health and Rehabilitation in Memphis, Tennessee. The lawsuit also names Vanguard’s former Director of Operations, Mark Miller.
“We are committed to combating elderly abuse, neglect and financial exploitation. We will continue to hold accountable those who profit from the care of elderly Medicare and Medicaid beneficiaries, including nursing home operators, while providing non-existent or grossly substandard care.” said U.S. Attorney David Rivera.”“Our seniors rely on the Medicare and Medicaid programs to help care for them with dignity and respect,” said Benjamin C. Mizer, Principal Deputy Assistant Attorney General. “It is critically important that we confront nursing home operators who put their own economic gain over the needs of their residents. Operators who bill Medicare and Medicaid while failing to provide essential services will be held accountable."
The lawsuit alleges that the defendants were responsible for the submission of false claims to Medicare and TennCare for skilled nursing home services that were either non-existent or grossly substandard. The lawsuit also alleges that the defendants submitted required nursing facility Pre-Admission forms with forged physician and nurse signatures. Vanguard Healthcare, LLC is headquartered in Brentwood, Tennessee and has 14 long-term care nursing home providers operating around the United States.
The United States' complaint alleges that between January 1, 2010 and December 31, 2015, five of the Vanguard facilities failed to provide the most basic and essential skilled nursing services to their residents. These facilities include Boulevard, Crestview, Imperial, Glen Oaks and Poplar Point. The lack of adequate care at the Vanguard facilities included chronic staffing shortages and shortages of critical medical supplies, failure to provide standard infection control, failure to administer medication to residents as prescribed by their physicians, failure to provide wound care as ordered by physicians, failure to adequately manage residents’ pain, and providing unnecessary and excessive psychotropic medications to residents and using unnecessary physical restraints on residents. As a result, Vanguard residents suffered pressure ulcers, falls, dehydration, and malnutrition, among other harms.
The United States' complaint further alleges that Mark Miller, who served as the Director of Operations for Vanguard from September 2011 through August 2014, knew that resident care at the Vanguard facilities was non-existent or grossly substandard but failed to correct these problems.
The United States’ complaint also alleges that from September 2012 through April 2014, the Boulevard Terrace, Glen Oaks, Imperial, Manchester and Poplar Point facilities fraudulently submitted falsified pre-admission forms to TennCare, in order to receive payments from TennCare, which the company was ineligible to receive.
On May 6, 2016, the Vanguard corporate entities named in the government's complaint filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code, which were administratively consolidated in the Middle District of Tennessee.
This matter was investigated by the U.S. Attorney’s Office for Middle District of Tennessee, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Department of Health and Human Services’ Office of Inspector General, the Tennessee Attorney General’s Office and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. This action is supported by the Elder Justice and Nursing Home Initiative, which coordinates the Department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs. For more information about the Department’s Elder Justice Initiative, see https://www.justice.gov/elderjustice/.
The claims asserted against the defendants are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States vs. Vanguard, et al., case no. 3:16-cv-2380 (M.D.Tenn 2016).
Terrebonne Parish Man Sentenced to 12½ Years Incarceration for Receipt and Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION VEAL, age 21, of Gray, Louisiana, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Sarah S. Vance sentenced VEAL to 150 months incarceration, to be followed by 20 years of supervised release. In addition, VEAL will be required to register as a sex offender upon his release.
VEAL was indicted by a federal grand jury as a result of a child exploitation investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”) and the Louisiana Bureau of Investigations’ Cyber Crime Unit (“LBICCU”). According to court records, on January 7, 2015, HSI and LBICCU agents executed a search warrant at VEAL’s residence after determining he received and distributed images depicting the sexual victimization of children. On March 3, 2015, VEAL was taken into federal custody pursuant to a federal criminal complaint.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney praised the work of the U.S. Department of Homeland Security-HSI and the Louisiana Bureau of Investigations’ Cyber Crime Unit in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
Tampa Man Sentenced for Conspiracy to Steal and Cash Rent Checks Throughout the State of FloridaRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Alfredo Castaneda-Pozo (30, Tampa) to five years and three months in federal prison for conspiracy to commit bank fraud and bank fraud. The Court also entered a restitution order in the amount of $429,044.96, to be paid to the victims of the offenses. Castaneda pleaded guilty on May 9, 2016.
According to court documents, from approximately May 2013 through 2015, Castaneda was a leader of a group of conspirators who stole rent payments from rent collection boxes at more than 90 apartment complexes across Florida and in Georgia. The conspirators staked out the drop boxes, burglarized them, and kept the money orders that the victim renters had purchased to pay their rent. The conspirators then washed or altered the original money orders, replacing the original names with their own names, and deposited the stolen money orders into accounts under their control at several banks located throughout Hillsborough and Pinellas Counties. They shared in the proceeds of the thefts, which totaled more than $429,000.
Six of Castaneda’s coconspirators were charged in a related case. Each previously pleaded guilty and has been sentenced as follows:
Juan Carlos Miranda-Noda was sentenced on September 8, 2015, to eight years and one month in federal prison.
Yensy Guevara was sentenced on January 11, 2016, to 15 months’ imprisonment.
Heysy Puente-Lopez was sentenced on January 12, 2016, to time served.
Yamileysi Martell-Guillen was sentenced on January 14, 2016, to 12 months’ imprisonment.
Isnelis Torres-Limonta was sentenced on January 15, 2016, to 15 months’ imprisonment.
Lazaro Velazques was sentenced on February 19, 2016, to 21 months’ imprisonment.
This case was investigated by the United States Secret Service, the Clearwater Police Department, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Pasco County Sheriff’s Office, the Temple Terrace Police Department, the St. Petersburg Police Department, the Largo Police Department, the Bradenton Police Department, the Sarasota Police Department, the Sarasota County Sheriff’s Office, the Manatee County Sheriff’s Office, and the Palmetto Police Department. It was prosecuted by Assistant United States Attorneys Amanda Riedel and Megan Kistler.
Sumter Couple Accused of Running Chop Shop and Witness TamperingRead the Press Release
Contact Person: DeWayne Pearson (803) 929-3000
Columbia, South Carolina – Acting United States Attorney Beth Drake announced today that Frederick Deon Galloway, 40, and his wife, Tawania Moneik Galloway, 41, both of Sumter, South Carolina, were indicted by a federal grand jury in a four count indictment. Frederick Galloway was indicted for one count of tampering and removing a vehicle identification number (VIN), in violation of Title 18 United States Code, Sections 511 and 2, and one count of operating a chop shop in violation of Title 18 United States Code, Sections 2322(a)(1) and 2. Tawania Galloway and Frederick Galloway were also indicted for one count of federal witness tampering, in violation of Title 18 United States Code, Section 1512(c)(2), and one count of making a false entry in a sworn affidavit with the intent to impede, obstruct, and influence a federal investigation, in violation of Title 18 United States Code, section 1519. If convicted on all counts, Frederick Galloway is facing up to 5 years for removing a VIN, and up to 15 years for the chop shop violation. Frederick Galloway and Tawania Galloway are also facing up to 20 years for the witness tampering charge and up to 20 years for providing a false sworn statement.
The investigation was conducted by the United States Postal Inspection Service, the Sumter Police Department, and the Sumter County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney T. DeWayne Pearson of the U.S. Attorney’s Office in Columbia, SC.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Statement by Acting U.S. Attorney Bob Troyer regarding ransom kidnapping incident that concluded this past weekendRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer released the following statement regarding the alleged ransom kidnapping incident that concluded this past weekend:
“Thanks to the hard work of law enforcement, a man who was kidnapped and held for ransom was safely recovered, and three men allegedly responsible for this crime were arrested. The way law enforcement agencies responded to this rapidly evolving crime shows that collaboration leads to success. Special recognition should go to the Jefferson County District Attorney’s Office, the FBI, the Jefferson County Sheriff’s Office and the Lakewood Police Department, and others, who worked selflessly for the good of the public.
“The U.S. Attorney’s Office has been actively involved in this investigation since the beginning of this crime and is assessing federal charges at this time.”
St. Joseph Man Pleads Guilty to Meth Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man who was struck by a vehicle as he fled on foot from law enforcement officers across a highway, pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine and to illegally possessing firearms.
Jeremy D. Marshall, 35, of St. Joseph, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to distribute methamphetamine, two counts of possessing methamphetamine with the intent to distribute and two counts of being a felon in possession of a firearm.
Marshall was arrested on Feb. 7, 2016, when an investigator with the Buchanan County Drug Strike Force saw him driving a black Harley Davidson motorcycle. Marshall turned off Riverside Road in St. Joseph into the entrance of Chapel Ridge Apartments. The investigator knew that Marshall had a revoked driver’s license, and so followed him until he parked the motorcycle.
As soon as Marshall stopped, the investigator activated his emergency lights and pulled his vehicle in front of Marshall. As the investigator got out of his vehicle, Marshall put the motorcycle in gear and accelerated rapidly over the curb to get around the investigator’s vehicle. Marshall drove the motorcycle over a curb and into a cornfield on the east side of the Chapel Ridge Apartments. Marshall headed north through the field toward U.S. 36 Highway, but as he drove down an embankment his motorcycle got stuck in the mud. The motorcycle fell over and Marshall fell off of it.
Marshall jumped up and took off running as the investigator approached in his vehicle. The investigator got out of his vehicle and began pursuing Marshall on foot. Marshall ran onto the highway and a truck struck him. Marshall hit the front right passenger side of the vehicle, which knocked him to the ground. The investigator grabbed him by the jacket and pulled him across the highway to the shoulder so he would not be struck by oncoming vehicles. Marshall was conscious and complained of pain on the right side of his body. The investigator called an ambulance then searched Marshall; he found a Browning Arms Company .22-caliber pistol in a holster in the small of Marshall’s back. Marshall was also in possession of a small baggie that contained 1.47 grams of methamphetamine and a plastic baggie that contained 52 rounds of ammunition, $175 and drug paraphernalia.
Marshall had been arrested approximately two years earlier, on Feb. 13, 2014, when investigators with the Buchanan County Drug Strike Force stopped his vehicle, a gold Ford Expedition, for a traffic violation. Investigators smelled an odor of burnt marijuana and searched Marshall and his vehicle. Investigators found four unused syringes in Marshall’s left sock and a loaded Smith and Wesson .45-caliber handgun under the driver’s seat of his vehicle. They also found an eyeglass case in the center console of the vehicle, which contained a Ziploc bag with 2.6 grams of methamphetamine. Next to the eyeglass case were digital scales with methamphetamine residue.
Marshall told investigators he purchased methamphetamine for $700 per ounce and distributed it to others. Marshall said he had been dealing for approximately two and a half years; when business was good he purchased a half-ounce of methamphetamine three times per day.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Marshall has prior felony convictions for possession of a controlled substance, forgery, and theft/stealing.
Under federal statutes, Marshall is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Buchanan County Drug Strike Force, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Spirit Lake Man Sentenced for Second Degree MurderRead the Press Release
FARGO, ND – United States Attorney Christopher C. Myers announced that on September 7, 2016, Lance Alan Robertson, 28, Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson to 14 years’ imprisonment for intentionally inflicting death on eighteen-year-old Larse Weylin Azure, Jr.
On the evening of December 19, 2015, Robertson, an enrolled member of the Spirit Lake Nation — a federally recognized Indian tribe — was consuming alcohol with family and friends while driving his vehicle on the Spirit Lake Indian Reservation. When Robertson began to drive erratically, his passengers protested, asking Robertson to let someone else drive. Robertson parked the vehicle straddling the center line of the highway, turned off the ignition, and placed the keys to the vehicle in his pants. The occupants pleaded with Robertson to give the keys over and to start the vehicle, but Robertson refused. A struggle ensued between Robertson and his brother for control of the car keys, at which point Robertson told the passengers to get out of his vehicle. As the passengers were walking along the side of the road, Robertson started his vehicle, revved the engine, backed up, crossed over the center line, and drove at three of the individuals, striking Larse Weylin Azure, Jr. Azure died as a result of the injuries sustained from the vehicle.
Robertson was ordered to pay $14,560.94 in restitution, and $100 in special assessments. Upon his release from imprisonment, Robertson will be on supervised release for three years. This case was investigated by the Bureau of Indian Affairs and prosecuted by Assistant United States Attorney Janice M. Morley.
Sheriff's Deputy Arrested for Extorting Alleged Drug DealerRead the Press Release
Memphis, TN – A Shelby County Sheriff's Office deputy has been arrested for attempting to extort thousands of dollars from an alleged drug dealer. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the criminal complaint today.
According to court documents, Jeremy Drewery, 41, of Arlington, Tennessee, demanded money from a confidential source after the source was arrested on drug charges. In exchange for the money, Drewery promised the source exemption from criminal charges. The source reported the extortion attempt to the Federal Bureau of Investigation (FBI). And the source subsequently made a series of payments to Drewery, all recorded by the FBI.
Drewery was assigned to the Shelby County Sheriff's Office’s Narcotics Task Force.
On Wednesday, September 7th, Drewery had his initial appearance in federal court before U.S. Magistrate Judge Diane K. Vescovo.
Drewery is charged with one count of Hobbs Act Extortion.
If convicted, he faces up to 20 years in federal prison and a fine of up to $250,000.
This case is being investigated by the Tarnished Badge Task Force, which is comprised of investigators from the FBI, Memphis Police Department and the Shelby County Sheriff's Office.
Assistant U.S. Attorney Reagan M. Taylor is prosecuting this case on the government's behalf.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Seven Individuals Sentenced to Prison for Online Fraud ScamsRead the Press Release
Seven defendants were sentenced for their roles in online fraud schemes involving counterfeit checks, “mystery shopper” websites and work-from-home scams, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Gulfport, Mississippi, Office.
Funso Hassan, 27, of Ibadan, Nigeria, and Anthony Shane Jeffers, 44, of Maryville, Tennessee, each pleaded guilty on April 12, 2016, to one count of conspiracy to commit identity theft and theft of government property and one count of use of mail and an interstate facility to distribute proceeds of a racketeering activity. Hassan and Jeffers were each sentenced to 120 months in prison. Ann Louise Franzen, 70, of Kiln, Mississippi; Gary Melvin Barnard, 64, of Palestine, Texas; Michele Gayle Fee, 55, of Stockton, California; Tanya Lynn Thomas, 52, of Turlock, California; and Shawn Ann White, 44, of Manteca, California, previously pleaded guilty to conspiracy to commit identity theft and theft of government property. Franzen, Barnard, Fee, Thomas, and White were each sentenced to 60 months in prison. The defendants were sentenced yesterday by Chief U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi and restitution for all defendants will be determined at a later date.
According to admissions made in connection with their plea agreements, all seven defendants were members of a large-scale international financial fraud conspiracy that included romance scams through on-line dating sites, check fraud, secret shopper schemes, and personal assistant work-from-home schemes. Some of the defendants started as romance scam victims before later becoming knowing participants in the counterfeit check fraud. Victims were sent checks with mystery shopper and personal assistant instructions. The checks, which were counterfeit, would bounce after the victims transmited proceeds to various locations in the United States which were then laundered for transmission to Nigeria. Victims were then liable to their banks for the amount of checks and often hundreds of dollars in bank fees.
HSI investigated the case. Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi, Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, and Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Serial Armed Robbers Known as “Bulls Cap Bandits” Sentenced to Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Two Dallas men, Cedric Ray Jones, 27, and his brother, Damien Antoine Jones, 31, were sentenced this morning by U.S. District Judge Jane J. Boyle to lengthy federal prison sentences for committing several violent armed robberies in Dallas in 2014, announced U.S. Attorney John Parker of the Northern District of Texas.
Cedric Jones was sentenced to 573 months, and Damien Jones was sentenced to 708 months in federal prison. Each pleaded guilty late last year to one count of conspiracy to interfere with commerce by robbery, two counts of using, carry, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, and three counts of interference with commerce by robbery.
Co-conspirator, Savalas Christopher Love, 32, pleaded guilty to the conspiracy count and one firearm count. He is scheduled to be sentenced later this month.
The FBI dubbed the robbers the “Bulls Cap Bandits,” as Cedric and Damien Jones wore Chicago Bulls caps during the robberies.
According to documents filed in the case, from approximately March 7, 2014, through June 17, 2014, the defendants conspired together to commit these armed robberies:
March 7, 2014 and June 12, 2014 Cash Plus Pawn, 9103 East R.L. Thornton Freeway, Dallas
May 28, 2014 AutoZone, 10418 Garland Road, Dallas
June 2, 2014 AutoZone 2842 South Buckner Blvd., Dallas
June 17, 2014 AutoZone 9711 Plano Road, Dallas
During each of the robberies, Cedric and Damien Jones wore disguises and brandished firearms. In the March 7, 2014, robbery of Cash Plus Pawn, they stole cash and two semi-automatic rifles, and then fled on foot.
In the May 28, 2014, and June 2, 2014, AutoZone robberies, Cedric and Damien Jones entered the store, brandishing the semi-automatic rifles, while Love remained in the vehicle as the “getaway driver.” The three fled in Love’s vehicle.
On June 12, 2014, Cedric and Damien Jones, Love, and another individual traveled to the Cash Plus Pawn store on East R.L. Thornton Freeway in Dallas, in Love’s vehicle, with the specific intent to commit robbery. Upon arriving in the parking lot, Damien Jones and the other individual exited the vehicle and approached the store’s entrance with firearms, but abandoned the robbery when confronted by a store employee. They fled in Love’s vehicle.
In the June 17, 2014, AutoZone robbery, Cedric and Damien Jones traveled together in Love’s vehicle to the store with the intent to commit robbery. Love traveled separately to the location. Love “cased” the store and reported the absence of security personnel to Damien Jones. Cedric and Damien Jones then entered the store, brandishing semi-automatic rifles, and then fled the robbery in their vehicle. During a subsequent chase with law enforcement, Cedric Jones operated the vehicle in a manner to avoid apprehension and created a substantial risk to other motorists on the roads. During the pursuit, shots were fired in the direction of the pursuing officers to further avoid apprehension.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
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Second Kingsmen Motorcycle Club Member Pleads Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thomas Koszuta, 53, pleaded guilty to RICO conspiracy and possession of a firearm in furtherance of a drug trafficking crime before U.S. District Judge Elizabeth A. Wolford. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $250,000 fine.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant admitted to being a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence.
Koszuta further admitted that the Kingsmen operated by a strict chain of command serving under the direction of Kingsmen National President, David Pirk. On June 7, 2013, KMC forcibly shut down the Springville Chapter and strip members of their colors because they were non-compliant members. While others possessed firearms, the defendant struck a victim in the head with a blunt object and stole items from the Springville clubhouse. They then used bleach to clean areas where the victim bled and cut and removed portions of the rug which contained blood. Also, on August 3, 2013, the defendant and other Kingsmen members conducted a drive-by shooting targeting former Springville Kingsmen members. Two shots were fired from a shotgun, one of which struck a vehicle parked near one of the targeted victims.
Other acts of alleged violence by the Kingsmen include the murders of KMC members Paul Maue and Daniel "DJ" Szymanski who were murdered behind the North Tonawanda KMC Chapter clubhouse on September 6, 2014.
Koszuta is one of 17 defendants arrested in this case and the second to be convicted. Charges are pending against the remaining 15 defendants. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s plea is the culmination of an investigation led by the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. Assisting in the investigation: the FBI Knoxville, TN, and Jacksonville, FL Field Offices, Immigration and Customs Enforcement, Homeland Security Investigations, the Erie County Sheriff’s Office, the Buffalo Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New York State Police, the Olean Police Department, the Lancaster Police Department, the Amherst Police Department, the Town of Tonawanda Police Department, the Niagara Frontier Transportation Authority Police, the Cattaraugus County Sheriff’s Department, and the Hamburg Police Department.
Sentencing will be scheduled for at a later date.
Rufus Phelps Pleads Guilty to Federal Firearms ChargesRead the Press Release
ALBUQUERQUE –Rufus Phelps, 26, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
The U.S. Marshals Service arrested Phelps on Feb. 5, 2016, on a federal criminal complaint charging him with unlawfully possessing a firearm and ammunition on Feb. 4, 2016, in Bernalillo County, N.M. According to the complaint, Albuquerque Police Department (APD) officers arrested Phelps on state charges on Feb. 4, 2016, after observing Phelps in a parked car, recognizing him from prior encounters, and learning that there was an outstanding warrant for his arrest.
Phelps was indicted on Feb. 24, 2016, and charged with being a felon in possession of a firearm and ammunition on Feb. 4, 2016. The indictment was subsequently superseded on March 9, 2016, to add an additional charge against Phelps for unlawfully possessing a firearm and ammunition on Sept. 11, 2015. Phelps was prohibited from possessing firearms or ammunition because he previously had been convicted of unlawful taking of a motor vehicle.
During today’s proceedings, Phelps entered a guilty plea to the superseding indictment. At sentencing, Phelps faces a maximum penalty of ten years in prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Eva M. Fontanez is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Puerto Rico Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
A seven-count indictment was unsealed today charging four current and former Police of Puerto Rico (POPR) Carolina Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted on Nov. 15, 2014. The indictment alleges that during the police operation, POPR officers Jose Cartagena, Carlos Nieves, Jimmy Davis and former POPR officer Shylene Lopez used excessive force against an arrestee, identified in the indictment as C.C., and that they unlawfully concealed evidence of their misconduct.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico.
The indictment alleges that Cartagena struck C.C. in the head with his gun, resulting in bodily injury; that Nieves shot C.C. as he was fleeing, resulting in bodily injury; that Davis physically choked and slapped C.C., resulting in bodily injury and that Lopez physically slapped C.C., resulting in bodily injury. Cartagena then allegedly obstructed justice by covering up the conduct.
Cartagena is charged with two counts of obstruction of justice and two counts of deprivation of rights under color of law. Nieves, Davis and Lopez are each charged with one count of deprivation of rights under color of law.
If convicted, the defendants face a maximum sentence of 20 years in prison for each of the obstruction of justice charges and a maximum sentence of 10 years in prison for each of the civil rights violations. The defendants also face a potential $250,000 fine for each count.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorneys José Contreras and Victor Acevedo of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Nicholas Murphy of the Civil Rights Division’s Criminal Section.
Cartagena et al Indictment
President of Army Depot Union Local Charged with Mail FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Harrisburg charging John Kauffman, Jr., age 36, with mail fraud in connection with the theft of approximately $22,000 from a union local at the Letterkenny Army Depot in Chambersburg, PA.
According to United States Attorney Peter Smith, Kauffman, a resident of Morgansville, MD, allegedly took the funds between September 2013 and July 2014 from the National Federation of Federal Employees (NFFE) Local Lodge 1442.
Local 1442 has approximately 47 members who work at the Letterkenny Army Depot. Kaufman was President of Local 1442 from September 2013 to January 2015
The Information alleges that Kauffman embezzled the $22,062 by writing 24 checks drawn against a union bank account that were payable to himself and by disguising the checks as payments for legitimate Local 1442 expenses. The fraud was discovered in January 2015 following an audit of the union’s finances. Kauffman is no longer employed at Letterkenny Army Depot.
The government also filed a plea agreement in the case which is subject to the approval of the court.
The mail fraud charge has a maximum penalty of 20 years’ imprisonment and $250,000 fine.
The case was investigated by the U.S. Department of Labor’s Office of Labor Management in Philadelphia and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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.
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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Pharmacist and Others Charged in Pill Mill Case Plead GuiltyRead the Press Release
DALLAS — A licensed pharmacist, Kumi Frimpong, who owned and operated the Cornerstone Pharmacy, located on Bolton Boone Drive in Desoto, Texas, has pleaded guilty to a conspiracy charge stemming from his involvement in a “pill mill” operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Frimpong, 56, of Dallas, who was the pharmacist in charge at Cornerstone Pharmacy, pleaded guilty before U.S. District Judge Sidney A. Fitzwater to one count of conspiracy to illegally distribute oxycodone. Frimpong also agreed to surrender $41,112 to the United States that constitute proceeds from dispensing oxycodone during the conspiracy. He faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Sentencing is set for mid-December.
Frimpong admitted that during the conspiracy, which began in January 2013 and continued through July 2014, he and his co-conspirators distributed and caused to be distributed at least 40,000 30mg oxycodone pills in Dallas, and elsewhere that he dispensed based on prescriptions issued in the name and DEA registration number of co-conspirator, Dr. Richard Andrews of McAllen Medical Clinic.
After their arrests in January 2016, Dr. Andrews and co-defendant pharmacists Frimpong and Ndufola Kigham were ordered to surrender their DEA registration numbers, preventing Dr. Andrews from issuing prescriptions for controlled substances and Frimpong and Kigham from dispensing controlled substances. Frimpong and Kigham also surrendered their stock of controlled substances that they had at their pharmacies to DEA.
A co-conspirator in the case, Muhammad Faridi, 40, who is not a physician but who was also a part owner of the McAllen Medical Clinic, pleaded guilty last month to the conspiracy. He is scheduled to be sentenced on November 18, 2016.
Twenty-four individuals were indicted by a federal grand jury in Dallas in February 2015 on offenses related to their participation in the prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic, to obtain prescriptions to fill those prescriptions at designated pharmacies.
Superseding indictments were returned in December 2015 and in January 2016, and a total of 31 individuals have now been charged. Many of those defendants have pleaded guilty, and several have been sentenced to prison terms ranging from 30 months to 48 months in federal prison.
For instance, Earl Cain, 52, who pleaded guilty to unlawful use of a communication device, was sentenced last Friday to the statutory maximum of 48 months in federal prison. The same day, Glenda Cane, 47, pleaded guilty to the same offense, and Ivery Meyers, 64, pleaded guilty to the conspiracy. The prior week, on August 26, 2016, four defendants, Fahim Ahmed Khan, 55, Taneisha Nicole Nickerson, 29, Brandon Dunbar, 33 and Candis O’Shaea Lewis, 30, also pleaded guilty.
There may be additional guilty pleas in the coming weeks. While a trial date of October 24, 2016, is currently set, Dr. Andrews filed a motion to continue trial yesterday.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation is being conducted by the Drug Enforcement Administration, with assistance from Internal Revenue Service Criminal Investigation, the Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service.
Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Pasco County Man Pleads Guilty to Impersonating United States SenatorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Sidney C. Hines (67, New Port Richey) has pleaded guilty to false impersonation of a federal officer or employee of the United States. He faces a maximum penalty of three years in federal prison.
According to court documents, Hines received a mortgage loan secured by his home in New Port Richey and subsequently fell behind on his mortgage payments. In an effort to help delinquent borrowers such as Hines, the Federal National Mortgage Association (“Fannie Mae”) created the HomeSaver Advance (“HSA”) loan program to help delinquent borrowers remain in their homes. On October 8, 2008, Hines obtained a HSA loan, funded by Fannie Mae, for $5,863.73.
Hines failed to make the required payments on his HSA loan and the loan was turned over to ClearSpring Loan Services, a debt collection agency. Beginning in March 2013 and continuing through the end of 2014, Hines impersonated United States Senator Richard Durbin on multiple occasions in telephone calls he made to ClearSpring. During those calls, acting as Senator Durbin, he stated that Hines’s HSA loan had been paid in full and that the loan should be removed from his credit report.
This case was investigated by United States Capitol Police and the Federal Housing Finance Agency – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Parker CPA Indicted for Wire Fraud, Mail Fraud and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Donald Iley, age 52, of Parker, Colorado, was indicted by a federal grand jury in Denver on August 24, 2016 on charges of wire fraud, mail fraud, and aiding and assisting in the preparation of false tax returns, the United States Attorney’s office and IRS – Criminal Investigation announced. The indictment remained under seal until Iley made his initial appearance on September 7, 2016 in U.S. District Court before U.S. Magistrate Judge Kathleen M. Tafoya.
According to the indictment, from January 2011 through November 2015, Donald Iley was the owner and operator of Iley and Associates (I&A), an accounting and tax preparation firm which provided services to more than 140 businesses in Colorado. For some of I&A’s clients, payroll accounting and payroll tax services were provided, including the preparation of Forms 941, Employer’s Quarterly Federal Tax Returns. An “ACH Deduction Report” was also prepared listing the amount of payroll taxes to be withdrawn from the client’s bank account and paid forward to the Internal Revenue Service. Iley initiated or caused others to initiate an ACH electronic fund transfer from the client’s bank account to a bank account controlled by I&A.
Then Iley caused the Form 941 tax return to be mailed to the client with a cover letter stating the enclosed tax return is a copy for their records and Iley pays the taxes for the client. As part of the scheme, instead of forwarding the funds I&A received from the clients via electronic ACH fund transfers to the IRS, Iley used the money for his own purposes.
In certain instances, Iley prepared and submitted payroll tax returns to the IRS on behalf of some clients showing no payroll taxes due and owing for a given tax period. Iley knew when he submitted these payroll tax returns that the clients did in fact owe payroll taxes.
“Knowingly falsifying documents which are filed with the IRS is a crime,” said Kareem Carter, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government and their own clients. Individuals who engage in this type of financial fraud should know they will not go undetected and will have to answer for their actions.”
Iley was charged with 12 counts of wire fraud and 2 counts of mail fraud, each of which carries a penalty of up to 20 years in prison. He is also charged with 18 counts of aiding and assisting in the preparation of false tax returns, which each carries a penalty of up to 3 years in prison. Each charge also carries with it a fine of up to $250,000 or twice the amount of gain or loss, whichever is greater.
This case is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney J. Chris Larson.
The charges contained in this indictment are allegations, and the defendant is presumed innocent until proven guilty.
Owner and Chief Executive Officer of Beauty Products Company Sentenced in Manhattan Federal Court for Multimillion-Dollar Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EMANUEL COHEN, the former chief executive officer of a Florida-based wholesaler and distributor of beauty products (the “Company”), was sentenced today to 27 months in prison for orchestrating a fraudulent scheme to obtain millions of dollars in loans by making false statements and providing fraudulent documents to two commercial banks based in New York (the “Banks”). COHEN pled guilty on June 23, 2015, before U.S. Magistrate Judge Sarah Netburn. Today’s sentence was imposed by U.S. District Judge Lewis A. Kaplan.
Manhattan U.S. Attorney Preet Bharara said: “Emanuel Cohen and his co-conspirators blatantly lied about their company’s financial condition to obtain millions of dollars in loans, which the company later defaulted on. I want to thank the FBI for their excellent investigative work on this case.”
According to the allegations contained in the information to which COHEN pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
From 2007 through March 2014, COHEN and others engaged in a scheme to fraudulently induce the Banks to lend millions of dollars to the Company. Among other things, COHEN knowingly made false representations to the Banks, concealed material facts from the Banks, and submitted false and fraudulent documents to the Banks, including fabricated borrowing base certificates. Specifically, COHEN falsely inflated the Company’s sales and accounts receivable on borrowing base certificates that were provided to the Banks pursuant to loan agreements between the Banks and the Company. COHEN used those falsely inflated sales and accounts receivable to mislead the Banks about the Company’s true financial performance so that the Company could secure and draw down millions of dollars in loans from the Banks that the Company would not otherwise have been entitled to receive.
In March 2014, the Company defaulted on the loans at issue. At that time, the outstanding balance on the loans was more than $4.8 million.
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In addition to his prison term, COHEN, 73, of Boca Raton, Florida, was sentenced to three years of supervised release, and ordered to pay forfeiture and restitution, both in the amount of $4,888,460.35.
Three other defendants in this matter, Jay Sosonko, the chief financial officer of the Company, Thomas Thompson, the sales manager of the Company, and Marc Wieselthier, the Company’s outside accountant, pled guilty for their roles in the fraudulent scheme. Sosonko, Thompson, and Wieselthier were sentenced to 16 months, 21 days, and 27 months in prison, respectively.
Mr. Bharara praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
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Ohio man sentenced to 10 years in federal prison for attempted enticement of minorsRead the Press Release
CHARLESTON, W.Va. – An Ohio man was sentenced to 10 years in federal prison for a sex crime involving minors, announced United States Attorney Carol Casto. Robert N. Bray, III, 39, of Logan, Ohio, previously pleaded guilty to enticing minors to engage in sexual activity. After Bray is released from prison, he will be on supervised release for 20 years, and will also be required to register as a sex offender.
Bray admitted that in July 2015, he used a computer and cell phone to communicate with an individual he believed to be the mother of a 10-year-old female and a 5-year-old male in Parkersburg. In reality, Bray was communicating with an undercover law enforcement officer. Bray continued communicating with the undercover officer, thinking he was arranging to engage in sexual activity with the minors. Bray arranged a meeting on July 22, 2015, and when he arrived in West Virginia, he was arrested. That same day, law enforcement executed a search warrant on Bray’s Ohio residence and seized a computer containing almost 300 images of minors engaged in sexually explicit conduct.
This prosecution is the culmination of a comprehensive investigation conducted by the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the West Virginia State Police Bureau of Criminal Investigation, the Parkersburg Police Department, the Parkersburg Narcotics Task Force, the Wood County Sheriff’s Department, the Hocking County, Ohio, Sheriff’s Office, the Ohio Bureau of Criminal Investigation, and the FBI.
Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Northland Man Sentenced for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to distribute child pornography over the Internet.
Steven H. Taylor, 26, of Kansas City-North, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. Taylor pleaded guilty on Dec. 30, 2015.
An undercover federal agent identified Taylor’s computer as sharing images of child pornography over the Internet through a peer-to-peer file-sharing network. The agent downloaded a video file of child pornography from Taylor’s computer.
The agent executed a search warrant at Taylor’s residence and seized his electronic media. Taylor admitted that he had been downloading child pornography for the past two years. Investigators identified more than 30 images and 39 videos of child pornography on Taylor’s computers. A number of the videos depicted graphic, violent sexual abuse of children. In particular, one video lasted 33 minutes and depicted an adult male sodomizing a young female approximately 12 years of age.
Taylor has paid $3,000 in restitution to one of the victims portrayed in the child pornography collection. Taylor must forfeit two desktop computers, which were used to commit the offense, to the government.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
News AdvisoryRead the Press Release
MASSENA, NEW YORK – On Thursday, September 8, the United States Attorney’s Office is joining the City of Massena in hosting a community-wide, anti-drug event starting at 5:30 p.m. at Massena High School (flyer attached). The purpose of the event is to discuss recent efforts to reduce the flow of drugs into the Massena area and to increase awareness of the heroin epidemic, with the intention of generating greater community involvement in the response to opioid addiction.
U.S. Attorney Richard S. Hartunian said: “Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes and firearms. We will continue to work with our law enforcement partners to prosecute heroin dealers and to collaborate with community leaders to help addicts receive treatment.”
September 8 from 5:30 to 8 p.m.
Massena High School Auditorium
84 Nightengale Avenue, Massena, NY 13662
- The event starts at 5:30 p.m. with a resource and information fair, with law enforcement agencies, and treatment and service providers offering information on drug abuse, addiction and recovery.
- From 6:30 to 7:30 p.m., “Chasing the Dragon,” a 45-minute documentary film produced by the Department of Justice, will be shown. The film profiles the stories of several people who either abused opiates or had family members become addicts. This film aims to teach teens, college students, and parents about the cycle of addiction and the tragic consequences associated with opioid abuse. During the resource and information fair, school professionals can register to receive a free resource packet that includes a DVD copy of “Chasing the Dragon,” along with discussion guides and other materials to use in classes, parent-teacher meetings, etc.
- From 7:30 to 8:30 p.m. a panel of Massena residents will describe what they do to address opioid abuse, addiction, and recovery.
Massena Mayor Timmy Currier said: “I urge every citizen to attend this unique event. If you have yet to be impacted by heroin, it is very likely that you will be in some manner. Many members of this community have joined our drug-free community coalition and are working hard to deal with this issue from every angle. However, real success will only be achieved when every citizen does their part and when we all work together, I am confident we will make great progress and save lives.”
Massena Police Chief Adam Love said: “This heroin epidemic cannot be solved by any one agency. We cannot arrest our way out of this. It is critical to have community involvement on the part of young people, parents, schools, treatment facilities, religious institutions, the media and others. Being involved means knowing what this addiction is, being aware of warning signs, knowing what to do, who to call when you need help, and taking action when it is needed.”
- The event starts at 5:30 p.m. with a resource and information fair, with law enforcement agencies, and treatment and service providers offering information on drug abuse, addiction and recovery.
News AdvisoryRead the Press Release
MASSENA, NEW YORK – On Thursday, September 8, First Assistant U.S. Attorney Grant C. Jaquith will be joined by law enforcement and community leaders to discuss the sentencing of Patrick “Problem” Lloyd and the related dismantling of 2 criminal organizations that operated in the Massena area.
News Conference – Sentencing of Patrick “Problem” Lloyd
September 8 at 2 p.m.
Massena Town Hall, Room 30, 2nd Floor
60 Main Street, Massena, NY 13662Lloyd’s sentencing is scheduled to take place in Albany on September 8 at 9 a.m., before Senior U.S. District Judge Gary L. Sharpe.
New York Woman Gets over 13 Years in Prison for Glen Rock, New Jersey, Bank Robbery, Defrauding Elderly Victim of $198,750Read the Press Release
NEWARK, N.J. – A White Plains, New York, woman was sentenced today to 162 months in prison for robbing a Glen Rock Savings Bank and fraudulently using an elderly victim’s checks to steal $198,750, U.S. Attorney Paul J. Fishman announced.
Michelle Cantatore, 53, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of bank robbery and one count of wire fraud. Cantatore had also previously admitted robbing two other banks in Connecticut. These robberies were taken into consideration at today’s sentencing.
According to documents filed in this case and statements made in court:
Cantatore admitted fashioning a paintball gun to look like an actual firearm and using it to rob the Glen Rock Savings Bank on Feb. 15, 2015. Cantatore entered the bank wearing a wig and sunglasses and, while brandishing the paintball gun, shouted to everyone in the bank: “Put your hands up. This is for real. This is a robbery. I have a gun.”
Cantatore fled the bank after taking money from the vault and a teller station. Law enforcement later tracked her to a hotel room in Atlantic City, New Jersey.
At her plea hearing, Cantatore also admitted robbing a Greenwich Bank and Trust in Riverside, Connecticut, and a JP Morgan Chase Bank in Darien, Connecticut, on Jan. 30, 2015 and Feb. 24, 2015, respectively. In both instances she used an altered paintball gun to threaten the victims.
Cantatore also admitted stealing $198,750 from a sick an elderly man by taking his checks, writing them out to accounts she controlled, and cashing them without his knowledge.
In addition to the prison term, Judge Salas sentenced Cantatore to three years of supervised release and ordered her to pay restitution of $406,703.13.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Glen Rock Police Department, under the direction of Lt. Daniel Dour; the N.J. State Police, under the direction of Col. Rick Fuentes, the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the New York office of the FBI with the investigation. He also thanked the Paramus, Paterson, Roxbury and Wayne police departments for their roles.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S Attorney’s Office Criminal Division of in Newark.
Defense counsel: Kathleen Theurer Esq.
New Orleans Man Pleads Guilty in Conspiracy to Traffick HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WILBERT CLARK, age 30, of New Orleans, pled guilty today to conspiracy to distribute and to possess with intent to distribute heroin.
According to court records, CLARK was one of eight defendants charged in a 21-count Superseding Indictment on September 18, 2015. This Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City. The sources of heroin for this organization traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution in the New Orleans area.
CLARK, who has a prior felony drug offense, is facing a maximum sentence of 30 years’ imprisonment, as well as a possible fine of up to $2,000,000. U.S. District Judge Carl J. Barbier will sentence CLARK on December 15, 2016.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), Saint Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorney Brandon S. Long is in charge of the prosecution.
New Jersey Man Charged with Possessing Dogs for Dog FightingRead the Press Release
A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, announced Assistant Attorney General John C. Cruden, head of the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
Robert A. Elliott Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere. He is expected to appear before U.S. District Judge Joel Schneider for the District of New Jersey in Camden, New Jersey, federal court.
According to documents filed in this case and statements made in court: the federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting.
On June 1, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting. That day law enforcement officers executed a search warrant of a residence on a multi-acre property in Millville where Nichols lived. Elliott, also lived at the residence.
During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs. Seven of the dogs were housed on heavy chains in a wooded area behind the house. The dogs were spaced so that they could not reach one another. Two additional dogs were housed individually in pens in the wooded area near the chained dogs. Law enforcement officers found three more dogs in shipping crates in the unfinished basement. One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.
Several of the dogs had scars and other signs of injury and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:
- Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;
- A stand often called a “rape rack,” or “breeder stand” as referred to by defendant Elliott, designed to hold a female dog off the ground and immobilize her while a male dog mounts her. The device is used where the female dog is too dog-aggressive to mate otherwise;
- A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures and suture removing tools;
- Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;
- Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence.
Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.
The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
The charges and allegations in the complaint are merely accusations and the defendant is considered innocent unless proven guilty.
Mexican national is latest to plead guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Mexican national pleaded guilty today for his role in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. Miguel Tafolla-Montoya, 31, entered his guilty plea to conspiracy to distribute 50 grams or more of methamphetamine.
Tafolla-Montoya admitted that on March 19, 2016, he arrived in Huntington after traveling from California to pick up money for a delivery of crystal methamphetamine. Cara Linn Monasmith and Kelly Newcomb, codefendants of Tafolla-Montoya, had previously driven approximately 10 pounds of crystal methamphetamine from California to Huntington for delivery. Tafolla-Montoya further admitted that he had helped conceal the drugs in the spare tire of the car that Monasmith and Newcomb used to transport the methamphetamine. Tafolla-Montoya was arrested prior to collecting any money for that drug delivery.
Tafolla-Montoya additionally admitted that near the end of February 2016, he had helped conceal 10 pounds of crystal methamphetamine in a vehicle that transported drugs from California to Louisville. Furthermore, Tafolla-Montoya admitted his involvement in a drug deal for crystal methamphetamine that took place in late December 2015 in the parking garage of the Embassy Suites in Charleston.
Tafolla-Montoya faces at least five and up to 40 years in federal prison when he is sentenced on December 8, 2016.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating 14 defendants, including Tafolla-Montoya. All of Tafolla-Montoya’s codefendants are presumed innocent unless and until proven guilty in a court of law. As part of this conspiracy, Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Daniel Ortiz-Rivera, a Mexican national, and Velarian Sylvester Carter, of Beckley, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine. Serrato and Garcia are scheduled to be sentenced on December 6, 2016. Ortiz-Rivera is scheduled to be sentenced on October 11, 2016. Carter is scheduled to be sentenced on October 13, 2016. Also, as part of this conspiracy, Marco Antonio Bojorquez-Rojas, a Mexican national, pleaded guilty to interstate travel in furtherance of a drug crime, and is scheduled to be sentenced on December 7, 2016. Additionally, three women who were used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, Kelly Newcomb, of Nevada, and Cara Linn Monasmith, also of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Estrada and Newcomb are scheduled to be sentenced on October 6, 2016. Monasmith is scheduled to be sentenced on November 8, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mexican Man Pleads Guilty to Illegally Reentering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Jose Guerrero-Contreras, of Mexico, pleaded guilty on September 6, 2016, to reentering the United States after having been deported previously.
Guerrero-Contreras pleaded guilty before United States District Court Judge Steven McAuliffe to an indictment that had been returned by a federal grand jury on July 13, 2016.
According to court filings and statements in Court, a Deportation Officer had a chance encounter with the defendant on June 30, 2016 in a common hallway area of a residence in Manchester, New Hampshire, at a time when the Deportation Officer was seeking someone else. During the encounter, the defendant voluntarily admitted to the Deportation Officer that he is a Mexican national and that he was not in possession of any immigration documents that allowed him to be present in the United States. He was then taken into custody. Records checks revealed that the defendant had been deported six times previously.
Guerrero-Contreras will be sentenced on December 21, 2016 and likely faces deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
Metairie Woman Pleads Guilty to Defrauding Local BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACY NICHELSON, age 42, of Metairie pled guilty today to one count of bank fraud.
According to court records, NICHELSON worked as an assistant of rental management for a New Orleans real estate business. From June 2012 until July 2013, NICHELSON embezzled $16,418 from her employer. NICHELSON issued approximately 13 unauthorized checks to herself and others by forging the signature of the business’s owner.
NICHELSON faces up to thirty years imprisonment and/or a fine of not more than $1,000,000, a period of supervised release after imprisonment of up to three years, plus a mandatory special assessment of $100.00. U.S. District Judge Carl J. Barbier set sentencing for December 15, 2016.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service in investigating this matter. Assistant United States Attorney Julia K. Evans was in charge of the prosecution.
Meriden Man Charged with Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging TRAYQUAN FORD, 20, of Meriden, with possession of a firearm by a convicted felon.
As alleged in the complaint that was previously filed in this case, the ATF and Meriden Police Department have been investigating gang-related violence in Meriden between the “Mack Balla Brim Bloods,” which is affiliated with the national “Bloods” gang, and members and associates of the “Crips.”
It is alleged that on July 18, 2016, FORD possessed a Taurus, model PT738 TCP, .380 caliber semi-automatic pistol that contained a magazine loaded with six rounds of ammunition and one round in the chamber.
Prior to that date, it is alleged that FORD had sustained a felony conviction for carrying a pistol without a permit. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, FORD faces a maximum term of imprisonment of 10 years. He has been detained since his arrest on July 18.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Medical Equipment Company and Two Executives Pay More Than $12 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – U.S. Healthcare Supply LLC and two executives have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment.
U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division announced the settlement today.
U.S. Healthcare Supply, based in Milford, New Jersey, has agreed to pay $5 million plus interest and Jon P. Letko, its owner and president, has agreed to pay $1 million plus interest. His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest.
“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” U.S. Attorney Fishman said.
The settlement announced today resolves allegations that U.S. Healthcare Supply and Oxford Diabetic Supply set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to suspected Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls, in violation of the Medicare Anti-Solicitation statute.
“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Mizer credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorney John Henebery of the Justice Department’s Civil Division.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.31 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only and there has been no determination of liability.
Defense counsel: Joseph F. Savage Jr. Esq., Boston, and Jura C. Zibas Esq., New York
Manhattan U.S. Attorney Announces Charges Against Two in Connection with Seven-Kilogram Fentanyl SeizureRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced today that a federal grand jury has returned an Indictment charging ALDINTON VALERIO and ALEXIS OVALLE-LOPEZ with trafficking heroin and fentanyl in and around the Bronx, New York. VALERIO was also charged with possessing a firearm in furtherance of the narcotics distribution conspiracy. The defendants were arrested in August 2016 on the same charges. The case has been assigned to United States District Judge Katherine B. Forrest.
Manhattan U.S. Attorney Preet Bharara said: “Fentanyl and heroin are incredibly dangerous substances that have wreaked havoc in our communities. The sale of heroin laced with fentanyl is particularly alarming, since fentanyl is many times more powerful than heroin. We will continue to work tirelessly to prosecute anyone who seeks to profit from these dangerous drugs.”
DEA Special Agent in Charge James J. Hunt said: “The combination of heroin and fentanyl has elevated the opioid threat to the most dangerous level yet. Drug traffickers have hijacked fentanyl’s legitimate medical purpose resulting in unprecedented numbers of fentanyl-related overdoses and deaths. It is imperative to warn our communities that these bathtub chemists are selling this deadly combination to unsuspecting users, as well as to those seeking the ultimate fatal high.”
According to allegations contained in the Indictment, the underlying criminal Complaint filed on August 12, 2016, and statements made in court proceedings[1]:
From at least in or about July 2016 up to and including in or about August 2016, the defendants sold narcotics to a confidential source on multiple occasions. During each of those transactions, VALERIO represented to the source that he was selling heroin. However, when the narcotics were submitted to a DEA laboratory for testing, a chemical analysis revealed that, for at least two of the transactions, the narcotics were actually fentanyl – a drug that can be 50 times more powerful than heroin.
The defendants were arrested on August 11, 2016. Following their arrest, DEA agents searched an apartment used by VALERIO and OVALLE-LOPEZ. DEA agents seized approximately seven kilograms of fentanyl, as well as approximately two kilograms of heroin laced with fentanyl, from the apartment. In addition, DEA agents seized two firearms from that apartment and approximately $100,000 in cash found in another apartment used by VALERIO.
Mr. Bharara praised the outstanding investigative work of the DEA.
This prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Gina Castellano, Jordan Estes, and Jason A. Richman are in charge of the prosecution.
The charges contained in the Complaint and Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] The charges contained in the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney Announces Arrest of Rabbi and Member of Satmar Community for Conspiring to Kidnap and MurderRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced the filing of a federal criminal complaint charging SHIMEN LIEBOWITZ and AHARON GOLDBERG with conspiring to kidnap and murder an individual in order to obtain a religious divorce for that individual’s wife. LIEBOWITZ and GOLDBERG were arrested yesterday in Central Valley, New York, while meeting to plan the kidnapping and murder. They will be presented later today before Magistrate Judge Debra Freeman in federal court in Manhattan.
Manhattan U.S. Attorney Preet Bharara said: “The defendants are charged with a chilling plot to kidnap and murder the intended victim. Over a period of months, the Complaint alleges, they met repeatedly to plan the kidnapping and to pay more than $55,000 to an individual they believed would carry it out. Thanks to the exemplary work of our partners at the FBI and NYPD, Liebowitz and Goldberg are now in custody.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “As if the plan to kidnap the victim and force him to divorce his wife in this alleged conspiracy wasn’t bad enough, the plotters allegedly decided halfway through the arrangement to go a step further and add murder to the list of their planned crimes. Our country protects freedom of religious beliefs and practices, but no one is allowed to plot a kidnapping and murder regardless of their motivation.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
According to Jewish religious law as observed in certain communities, in order to effect a divorce, a husband must provide his wife with a document known as a “get.” A woman whose husband will not consent to a divorce is known as an “agunah.” In the absence of the husband’s issuing a get, an agunah may be released from her marriage only through the husband’s death.
In early July, an individual (the “CS”) contacted the FBI and reported that the CS had been recruited by LIEBOWITZ and GOLDBERG to kidnap a particular individual (the “Intended Victim”) in order to force the Intended Victim to issue a get to his wife. Like the CS, GOLDBERG and LIEBOWITZ are orthodox Jews. LIEBOWITZ is a member of the Satmar community in Kiryas Joel, New York (a village in Orange County, New York), and GOLDBERG is an Israel-based rabbi who also maintains a position of prominence in Kiryas Joel.
The CS provided the FBI with information about a conversation he had with LIEBOWITZ and GOLDBERG on or about July 6 or July 7. During the meeting, which was recorded, the CS feigned interest in participating in the kidnapping. He, GOLDBERG, and LIEBOWITZ discussed how such a kidnapping might be carried out, including the possibility of luring the Intended Victim to Pennsylvania in order to kidnap him, torture him, and force him to give the get. The CS, GOLDBERG, and LIEBOWITZ also discussed the possibility of kidnapping the Intended Victim in Ukraine, where the Intended Victim planned to travel in late September to celebrate the Jewish New Year. GOLDBERG and LIEBOWITZ agreed to advance the CS $25,000 to assist in efforts to plan the kidnapping. According to the CS, within days of this initial meeting, an envelope containing approximately $25,000 cash was delivered to the CS.
On or about August 9, 2016, the CS met with LIEBOWITZ and GOLDBERG in Kiryas Joel, New York. During this meeting, the CS, GOLDBERG, and LIEBOWITZ discussed additional details of the kidnapping plan, including logistics and the cost associated with a plan to kidnap the Intended Victim overseas. This conversation was also recorded.
On August 12, 2016, the CS again met with LIEBOWITZ and GOLDBERG, at which time they provided the CS with an additional payment of over $20,000 for use in making arrangements for the kidnapping. In this meeting, which was also recorded, the CS, GOLDBERG and LIEBOWITZ further discussed their plan to kidnap the Intended Victim in the United States and to obtain the get from him in this country.
Subsequent to the August 12, 2016, meeting, the CS had additional conversations with GOLDBERG, in which GOLDBERG discussed his desire not merely to kidnap the Intended Victim, but also to kill him.
On August 25, 2016, the CS met LIEBOWITZ in Central Valley, New York. During the meeting, LIEBOWITZ paid the CS an additional sum of about $12,000 to carry out the kidnapping. Also during the meeting, the CS spoke by phone with GOLDBERG, who was still in Israel, about the kidnapping plan, which the CS and GOLDBERG referred to in code as a “wedding,” as well as GOLDBERG’s desire that the CS kill the Intended Victim. This conversation was also recorded.
On or about September 2, 2016, the CS had another recorded conversation with LIEBOWITZ, during which LIEBOWITZ indicated his understanding that the Intended Victim would be murdered as part of the plan.
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LIEBOWITZ, 25, of Monroe, New York, and GOLDBERG, 55, of Bnei Brak, Israel, are charged with one count each of conspiracy to commit kidnapping, which carries a maximum potential sentence of life in prison, and one count each of conspiracy to commit murder for hire, which carries a maximum potential sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Police Department, working through the Joint Organized Crime Task Force.
This case is being handled by the Office’s Violent and Organized Crime Unit and Public Corruption Unit. Assistant United States Attorneys Scott Hartman and Paul M. Monteleoni are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.